Perdoceo Education (PRDO) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported net income of $39.9 million, or $0.60 per diluted share, with adjusted earnings per diluted share at $0.65 compared to $0.59 in the prior year [6][12] - Revenue for the third quarter was $211.9 million, representing a 24.8% increase from $169.8 million in the prior year [12] - Operating income grew by 13.8% to $51 million, while adjusted operating income increased 27.4% to $61 million compared to $47.8 million during the prior year [12][16] Business Line Data and Key Metrics Changes - Total student enrollments grew 15.1% year-over-year, driven by a 6.7% growth at CTU and the acquisition of St. Augustine [6][12] - CTU's total enrollments increased by 6.7%, marking eight consecutive quarters of growth [7][13] - AIU reported a decline in total student enrollments of 2.9%, but is expected to end the year with double-digit growth [7][13] Market Data and Key Metrics Changes - At St. Augustine, new student enrollments increased compared to the prior year, with approximately 4,400 total students enrolled for the fall term [8][15] - The corporate student programs at CTU and AIU continue to see increasing enrollments, which remain a priority for the company [9][12] Company Strategy and Development Direction - The company is focused on enhancing academic outcomes and student experiences through investments in technology and support processes [10][24] - There is a commitment to returning capital to shareholders, with $94.1 million returned through share repurchases and dividends in the first three quarters of 2025 [10][21] - The company plans to continue expanding corporate student program teams to support further growth and engagement [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting continued growth in student retention and engagement [11][22] - The company updated its full-year adjusted operating income outlook to a range between $234 million and $236 million, driven by the St. Augustine acquisition and positive trends at CTU and AIU [22][23] - The effective tax rate for the full year 2025 is expected to be between 26% and 26.5%, benefiting from various tax provisions [18][19] Other Important Information - The company repurchased 660,000 shares for $20.6 million during the quarter, with a total of 2.3 million shares repurchased year-to-date [21] - The Board of Directors declared a quarterly dividend payment of $0.15 per share, reflecting confidence in the long-term outlook [20] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.