Perdoceo Education (PRDO) - 2023 Q4 - Annual Results

Revenue and Income - Revenue for the full year 2023 increased by 2.1% to $710.0 million, driven by an 11.8% increase at CTU[5] - Operating income for the full year 2023 increased by 16.1% to $150.4 million, while adjusted operating income increased by 6.7% to $174.9 million[12] - Net income for the full year 2023 was $147.7 million, a 54.1% increase compared to $95.9 million for the prior year[17] - Total revenue for 2023 was $710,004,000, a 2.3% increase from $695,208,000 in 2022[37] - Net income for 2023 reached $147,652,000, representing a 54.1% increase compared to $95,867,000 in 2022[37] - Operating income improved to $150,446,000 in 2023, up 16.0% from $129,637,000 in 2022, with an operating margin of 21.2%[37] - Adjusted operating income for 2023 was $174,912,000, compared to $163,968,000 in 2022[45] Student Enrollment - Total student enrollments decreased by 12.0% to 34,500, with CTU increasing by 3.2% and AIUS decreasing by 39.3%[7] Cash and Assets - Cash, cash equivalents, restricted cash, and available-for-sale short-term investments totaled $604.2 million as of December 31, 2023, compared to $518.2 million a year earlier[22] - Total current assets decreased to $575.119 million in 2023 from $654.964 million in 2022[32] - Total assets increased to $1.007 billion in 2023, up from $957.368 million in 2022[32] - Total stockholders' equity rose to $841.421 million in 2023, compared to $725.845 million in 2022[32] Earnings Per Share - Adjusted earnings per diluted share for the full year 2023 increased by 28.8% to $2.10 compared to $1.63 for the prior year[17] - Reported Earnings Per Diluted Share for Q4 2023 was $0.26, up from $0.23 in Q4 2022, and for the full year 2023, it was $2.18 compared to $1.39 in 2022[47] - Adjusted Earnings Per Diluted Share for Q4 2023 was $0.27, down from $0.31 in Q4 2022, while for the full year 2023, it was $2.10 compared to $1.63 in 2022[47] - The outlook for Q1 2024 projects Reported Earnings Per Diluted Share between $0.52 and $0.54, compared to $0.50 in Q1 2023[47] - The full year 2024 outlook for Reported Earnings Per Diluted Share is between $1.96 and $2.18, matching the actual figure of $2.18 for 2023[47] Dividends and Stock Repurchase - The board declared a quarterly dividend of $0.11 per share, payable on March 15, 2024[18] - A new stock repurchase program was approved, allowing the company to repurchase up to $50.0 million of its common stock, effective March 1, 2024[19] Future Outlook - The company expects operating income for Q1 2024 to be between $40.1 million and $42.1 million, and for the full year 2024 to be between $154.6 million and $174.6 million[24] - The company expects an effective income tax rate of approximately 25.5% for Q1 2024 and around 26% for the full year[25] - The outlook for 2024 assumes no significant impact from regulatory changes or legal matters affecting operations[25] Educational Commitment - The company continues to focus on enhancing student experiences and retention through innovative educational technologies[27] - Perdoceo's institutions are committed to providing quality education that meets the needs of today's workforce[27] Other Financial Metrics - Cash flows from operating activities decreased to $112,025,000 in 2023 from $148,186,000 in 2022[39] - The company reported a total other income of $41,675,000 in 2023, significantly up from $4,632,000 in 2022[37] - The CTU segment generated revenue of $468,926,000 in 2023, a 11.7% increase from $419,617,000 in 2022[43] - AIUS segment revenue decreased to $240,300,000 in 2023, down 12.5% from $274,479,000 in 2022[43] Acquisitions and Non-GAAP Measures - The company completed the acquisition of Coding Dojo on December 1, 2022, and CalSouthern on July 1, 2022, impacting the results of operations[51] - The company emphasizes the use of non-GAAP financial measures to provide a clearer view of operational performance, excluding certain non-cash items[49] - Adjusted operating income and adjusted earnings per diluted share are used to compare current results with industry peers, excluding non-routine expenses[49] - The company notes that future results may still be affected by unusual or non-recurring expenses despite the use of adjusted measures[49]