Perdoceo Education (US:PRDO)2025-02-18 21:02Enrollment Growth - Total student enrollments increased by 20.0% as of December 31, 2024, compared to the previous year, with CTU and AIUS contributing to this growth [344]. - CTU's total student enrollments increased by 8.1% compared to the prior year, driven by growth in corporate engagement programs [344]. - AIUS experienced an 11.8% increase in total student enrollments, returning to normalized levels of operations [344]. - Total student enrollments increased by 20.0% to 41,400 as of December 31, 2024, compared to 34,500 in 2023 [369]. Revenue and Income - Revenue for the current year decreased by 4.0% or $28.7 million, primarily due to a 2.6% decrease at CTU and an 11.1% decrease at AIUS, offset by $10.0 million from the USAHS acquisition [347]. - Total revenue for the year ended December 31, 2024, decreased by 4.0% or $28.7 million, primarily due to declines in revenue from CTU and AIUS [355]. - CTU revenue for 2024 was $456.9 million, a decrease of 2.6% compared to 2023, while AIUS revenue decreased by 11.1% to $213.5 million [367]. - Operating income increased to $174.3 million in the current year, up from $150.4 million in the prior year, due to decreased operating expenses [348]. - Adjusted operating income for the current year was $192.2 million, compared to $174.9 million in the prior year [349]. - Adjusted earnings per diluted share increased to $2.29 for the current year, up from $2.10 in the prior year [351]. - Operating income increased by 15.8% or $23.8 million compared to the prior year, supported by lower operating expenses across most categories [363]. - Operating income margin improved to 25.6% in 2024 from 21.2% in 2023 [367]. Expenses and Cost Management - Educational services and facilities expense decreased by 7.3% or $9.5 million, driven by improvements in academics and student-related costs [357]. - General and administrative expenses decreased by 7.8% or $31.0 million, primarily due to lower administrative, admissions, and advertising expenses [359]. - Bad debt expense increased slightly by 1.5% or $0.5 million for the current year compared to the prior year [362]. - AIUS's operating income decreased by 20.1% or $9.1 million in 2024, despite reduced operating expenses [374]. - Corporate and Other operating loss improved by 21.4% or $8.3 million in 2024, mainly due to lower legal expenses [375]. Acquisitions and Strategic Initiatives - The acquisition of USAHS on December 2, 2024, allows for diversification and expansion into health sciences, broadening the company's academic offerings [343]. - The acquisition completed on December 2, 2024, contributed to the current year's revenue, which was not included in the full comparative period of the prior year [355]. - USAHS generated approximately $10.0 million in revenue starting from its acquisition date on December 2, 2024 [374]. - The company completed the acquisition of USAHS on December 2, 2024, expanding its educational offerings [370]. Cash Flow and Financial Position - As of December 31, 2024, cash balances totaled $591.5 million, with restricted cash at $22.6 million [401]. - Net cash flows from operating activities increased to $161.6 million in 2024 from $112.0 million in 2023, driven by improved operating performance [406]. - Approximately 77% of cash receipts from tuition payments in 2024 came from Title IV Program funding, slightly up from 76% in 2023 [407]. - Total cash, cash equivalents, restricted cash, and short-term investments decreased by 2% from $604.2 million in 2023 to $591.5 million in 2024 [419]. Shareholder Returns and Future Outlook - The company approved a new stock repurchase program for up to $50.0 million, effective from March 1, 2024, to September 30, 2025 [403]. - Dividend payments increased significantly to $31.7 million in 2024 from $14.4 million in 2023 [414]. - Capital expenditures decreased to $4.6 million in 2024, representing 0.7% of revenue, with expectations to rise to approximately 2.0% of revenue in 2025 [411]. - The company expects revenue growth in 2025, primarily due to the USAHS acquisition and improvements in student retention and engagement [346]. - The company expects an effective tax rate between 25.5% and 26.5% for the full year 2025 [365]. - The effective tax rate for the year ended December 31, 2024, was 26.7%, compared to 23.1% in the prior year [364].