Perdoceo Education (US:PRDO)2025-05-01 20:01Financial Performance - Operating income increased by 11.8% to $51.7 million, while adjusted operating income rose by 28.9% to $63.5 million[4] - Revenue for the quarter ended March 31, 2025, was $213.0 million, reflecting a 26.6% increase from $168.3 million in the prior year quarter[5] - Net income for Q1 2025 was $43.688 million, representing a 10.7% increase compared to $39.442 million in Q1 2024[30] - Total revenue for Q1 2025 was $213.004 million, a 26.6% increase from $168.264 million in Q1 2024[29] - Adjusted Operating Income for Q1 2025 was $63.534 million, up from $49.294 million in Q1 2024, representing a 29% increase[36] - Reported Earnings Per Diluted Share for Q1 2025 was $0.70, compared to $0.60 in Q1 2024, reflecting a 16.67% increase[38] - The full-year 2025 outlook for Adjusted Operating Income is between $220.0 million and $235.0 million, compared to $188.898 million in 2024, indicating a potential growth of 16.5% to 24.5%[36] - Reported Earnings Per Diluted Share for the full year 2025 is projected to be between $2.40 and $2.56, compared to $2.26 in 2024, suggesting a growth of 6.2% to 13.3%[38] Student Enrollment - Total student enrollments increased by 16.7% to 48,200 as of March 31, 2025, compared to 41,300 in the prior year[7] Cash Flow and Liquidity - Net cash provided by operating activities was $65.1 million, a 19.5% increase from $54.5 million in the prior year[19] - Cash and cash equivalents, including restricted cash and short-term investments, totaled $612.176 million as of March 31, 2025, compared to $591.548 million at the end of 2024[27] - As of March 31, 2025, the company had $612.2 million in cash, cash equivalents, restricted cash, and available-for-sale short-term investments[19] Operating Expenses and Capital Expenditures - Operating expenses increased to $161.277 million in Q1 2025, up from $121.986 million in Q1 2024, primarily due to higher educational services and facilities costs[29] - Capital expenditures for the quarter were $1.7 million, a 45.0% increase from $1.2 million in the prior year[17] - Depreciation and amortization for Q1 2025 was $11.807 million, significantly higher than $3.016 million in Q1 2024, indicating increased capital expenditures[36] Acquisitions - The company completed the acquisition of the University of St. Augustine for Health Sciences (USAHS) on December 2, 2024, contributing to revenue growth[6] - Perdoceo completed the acquisition of USAHS on December 2, 2024, contributing to the revenue growth in Q1 2025[34] Future Outlook - The company expects operating income for the second quarter of 2025 to be between $48.8 million and $50.8 million, and adjusted operating income to be between $59.0 million and $61.0 million[21] - Operating income for Q2 2025 is expected to be between $48.8 million and $50.8 million, compared to $46.006 million in Q2 2024, indicating a growth of 6% to 6.1%[36] - The outlook for Q2 2025 projects Adjusted Operating Income between $59.0 million and $61.0 million, compared to $49.075 million in Q2 2024[36] Dividends - The board declared a quarterly dividend of $0.13 per share, payable on June 13, 2025[16] Non-GAAP Financial Measures - The company emphasizes the importance of non-GAAP financial measures to analyze core performance, which excludes certain non-cash items[40] Share Information - The company reported a weighted average diluted shares outstanding of 66,872 for Q1 2025, compared to 66,841 in Q1 2024[29] Operating Margin - The operating margin for Q1 2025 was 24.3%, down from 27.5% in Q1 2024[34] Adjustments - The company reported a total pre-tax adjustment of $0.06 for Q1 2025, up from $0.02 in Q1 2024, highlighting an increase in amortization for acquired intangible assets[38] - The total adjustments after tax for Q1 2025 were $0.05, compared to $0.01 in Q1 2024, reflecting a significant increase in adjusted earnings[38]