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] - Adjusted operating income grew by 27.4% to $61 million compared to $47.8 million during the prior year [12] Business Line Data and Key Metrics Changes - Total student enrollments grew 15.1% year-over-year, driven by a 6.7% increase at CTU and the acquisition of St. Augustine [7][12] - CTU's revenue was $117.1 million, a 4.3% increase from the prior year, while operating income increased 6.7% to $47.8 million [15] - AIU system's revenue remained flat at $56.7 million, but operating income increased due to lower operating expenses [15][16] - St. Augustine recorded third quarter revenue of $38 million, with adjusted operating income expected to grow in 2026 [16] Market Data and Key Metrics Changes - The corporate student programs at CTU and AIU continue to see increasing enrollments, which remain a priority for the company [9] - New student enrollments at St. Augustine increased, particularly in nursing and speech-language pathology programs [14] 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 anticipates revenue and total student enrollments to increase in the fourth quarter and for the full year 2025 [15][23] - Adjusted operating income outlook for the full year 2025 is updated to a range between $234 million and $236 million [21][22] Other Important Information - The effective tax rate for the year-to-date period was 26.2%, with expectations for the full year to be between 26% and 26.5% [17] - The company ended the third quarter with $668.6 million in cash and equivalents, an increase of approximately $77.1 million from the year-end position [18] Q&A Session Summary - No specific questions or answers were documented in the provided content, thus this section is not applicable.