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Todd Nelson | executive |
Ashish Ghia | executive |
Thank you for standing by. My name is Kathleen, and I will be your conference operator today. At this time, I would like to welcome everyone to the Perdoceo Education Corporation First Quarter 2024 Earnings Conference Call. [Operator Instructions]. Thank you. to call like Gibbons, to now Relations. Investor would turn over the Sam I ahead. go Please
on contact Kathleen. Chief you, joining quarter With Officer; Todd our for everyone, Chief and us first today Executive me Nelson, call. be Relations the President you earnings Ashish A Thank XXXX webcast perdoceoed.com. Officer. This afternoon, is webcast for being at for Good Ghia, and Group conference IR site, and and live will Alpha call is Financial the section available also Investor call can our always within thank the Investor you support. on replay Relations
Let risks or the as circumstances obligation laws, or developments other uncertainties Commission. Except expressly reflect or required statements. factors the statements Act These by for on expressed These recent statements XX-K the me and and forward-looking as opportunities report release no limited filings by in Perdoceo's update defined changed and earnings factors that are based uncertainties in business cause Exchange these of made XXXX. Education to Perdoceo include, to most annual not but Form on of currently differ to that could risks remind reason. events, materially Exchange or securities this future subsequent those in assumptions prospects Section company afternoon's undertakes information any and Securities results, and include to, involve remarks statements Securities by any those made actual and today those in performance, XXE with you and forward-looking implied future could available the are from identified
company's not to the call be website. reconciliation contains remarks the to measures, the well non-GAAP financial to to like Relations substitute With as the GAAP turn as the Nelson. earnings directly financial available release which within today's comparable today's that, to call of Investor Todd? are supplement, intended and addition, page other measures and GAAP is information accompanies I'd of The today the measures. to quantitative for over discussed that refer non-GAAP Todd most In but
Sam. some provide call. thank key the then afternoon, for the first an joining highlights outlook for earnings discuss in first our and I'll quarter performance our everyone, Ashish Good Thank updated XXXX of quarter, operating you, from you review us more will and financial the year. and detail and for
support ended educating ongoing as hard before for However, begin, trends and thank XXXX staff and We I'd these first to employees and we the our student in student have persisted our a all students. commitment strong quarter. on like engagement, and retention serving and their other relates to note faculty and work it
operating came better-than-expected primarily earnings a engagement in to As the result, trends. results quarter due our ahead on call, last discussed expectations first of student
results, first the discuss some are the and following we key quarter. Before of observations quarter highlights for
focused and experience of and at outreach. We improve and on remain lower institutions remainder staff continue we students. Marketing student that levels and to data an make engagement programs serving CTU will manner. remain operate in identifying at generation one to adjust these well our on the focused first who inquiry expect as and our mission priority necessary during to prospective strategies effective to from in a student support corporate efficient and prospective to spend our in to remain investments was marketing improving continue educating while the further and processes student programs. AIUS, by agencies of analytics, compared We various engagement strong support student we both and on as and focus to These commensurately Aided likely XXXX. quarter further to technology universities the and both updated and our through XXXX comply faculty at our with are programs succeed levels retention more grow continue investing federal teams around students of focus and prospective as expectations of and
place technology on our functions. We utilizing to of technology quick as education investing to a academic and and the student learners. selective experiences to committed our note institutions for and a and of that our emphasis on the and an us relevant continue catalyst evaluate improve differentiator efficiency our academic in and students results. A for We view deliver meaningful effectiveness operating investments support experience making remain more and
net approximately results excludes $X.XX diluted came certain quarter $XX.X while was or and $X.XX. From income share, to grew of XX.X% items, compared adjusted calendar. primarily at diluted First year driven quarter, ahead million a perspective, impact academic in enrollments earnings positive the student quarter CTU from timing noncash We as significant quarter first prior per of first per by which reported expectations. total our share, the an ending enrollment
quarter's call, Total experienced system a lower enrollments. the earnings decline enrollments, were last total in As compared which XX.X% by as year student expected on quarter. AIU and to discussed prior
operations quarter approximate reverted As in total increase XX% XXXX of to had experienced and for enrollments expectations fourth the quarter of consistent low AIUS as previously point. first to shared, during fourth the our XXXX compared the an normalized quarter mostly with
and of later. In first are hard proud on we Ashish quarter enrollment pleased whose are will us summary, the are team details operating our provide work drive dedication results helping more and with for that I'd time while student now across academic the performance. to With of said, financial turn academic Ashish enhancing our like to operating stronger and engagement deeper review experiences over institutions. a our trends
Ashish?
also total universities. or our any non-degree-seeking year period development non-title I note versus note professional Todd self-paced degree-seeking results our closing the review will Please programs programs exclude remarks. the comparisons I to Please enrollment you, outlook numbers learners refer otherwise unless stated. discuss call and to handing I that before discuss discussed trends all enrollment the for the then for and at back that are and prior that Thank his pursuing quarter sheet balance XXXX Todd. comparative first I
of an begin results. overview with our operating us Let
of income by This than desire AIU norms operating growth have in quality offset was operating to quarter enrollments of most First the $XX across student million driven maintain million $X.X strived in at despite continue system, the income higher AIU was student in well to levels student quarter to to at the decline expectations areas more support enrollments as last we relative historical compared note services. their lower that lower functional revenue. Please that improvement faculty primarily first as million total providing operations Systems' higher and $XX.X the expenses year. than support as our to enrollment due approximately
quarter the following of most summarized lower in for the can result, be expenses the a categories. As
with and made due expectations well student inquiry federal to lower generation agencies to to an First, admissions expenses marketing as prospective to ongoing comply processes as from various updated around outreach. adjustment prospective
focus Second, the upskilling rightsizing we that overall development, and so of can offering institutions. academic expenses professional opportunities of that support portfolio our effectively efficiently of reskilling will programs delivering that our value academic and proposition on programs enhance believe we
offset per while are some while during applications. Adjusted excluded Third, which were more applications related our $X.XX certain current was defense share, $XX.X only we expenses the I $X.XX This ongoing lower operating in that million income. initiatives earnings as more to to income significant due lower student excludes indicative they share expenses, as supported by institutions lower compared noncash or year partially million related income, believe diluted quarter. prior per previously by lower million diluted primarily of $XX.X the academic note revenue the is defense debt of the and underlying and indicative to primarily quarter, the of repayment is quarter to borrower $XX.X loan share. compared operating which that to operating administration. for Net performance expenses borrower or fourth, $X.XX implemented the $XX.X to calculating was per first performance items, compared discussed. Please expenses operating Adjusted legal underlying we was was diluted And legal to $X.XX. at and by was the repayment adjusted believe million lower
first well as This First quarter million CTU's calendar quarter XX% decrease in revenue during million resulting in revenue to prior the quarter comparability, on made expected of the number earning as impact lag revenue changes year. the lower AIU operating of short-term last was for of a academic days in decreased year. system compared due $XXX.X the as to $XXX.X at the current
XXXX, academic will system will half CTU's comparable lag be impact calendar of the the at second revenue relatively and significantly During AIU on moderate.
from prior on total As second revenue fourth the of that would positive the student a in current CTU of XX, primarily increased growth total to in with to of for enrollments we March comparability, the year, enrollments. versus of the days much positive day ignoring CTU. growth impact by note as still XXXX enrollment Total the note Please that for result, quarter. student quarter. A higher the XX.X% enrollment be occurring for show enrollment half number expect due
As discussed were in last and quarter. Marketing levels expected low in the experienced XX% first quarter point. to XXXX quarter enrollment as enrollments, had AIU by on earnings reverted quarter's to system which prior a lower year's call, student to total the normalized student compared decline the and XX.X% activities fourth beginning the of enrollments as of approximately XXXX fourth accordingly, throughout low for XXXX the and quarter quarterly XXXX compared quarter to point. than expected total enrollments show were fourth And higher growth total were
results. segment Now to our
timing impact Lower by X.X% due the $XX.X from million quarter. as partially revenue during earning to to First compared negative quarter admissions, the within expenses bad revenue quarter decreased fewer $XX.X by revenue marketing at was income debt. offset the $XXX.X lower and Operating to CTU million for was days million.
as was from of relatively which calendar we negative AIU year. Operating normalized to operational year income note will the expectations second was the AI to first the during reverse the some disproportionately $X.X lower last quarter decrease maintains of the academic have previously, revenue discussed the million million number was XX.X% lag a of offset in on with more operating or lower mentioned changes in revenue this the first our with $X.X days. At due $XX.X quarter the prior due comparable impact half operating normalized than As prior quarter leverage half lower of year million was revenue system will the System, half year second compared a with as to that line Please most expenses. revenue impact of operations.
loss driven Operating $X.X Other. Moving and expenses. $X.X by the quarter. This on as or improvement was for lower the to prior Corporate compared year quarter lower million million to legal was primarily
taxes. income to Now
income provision X.X%. approximately which For impacted XX.X%. resulting for effective previously and a the decreased discrete The net quarter, tax of reserves recorded the million compensation $XX.X effect first stock-based for quarter corporate federal effective by of tax, the in income tax rate of rate for accruals rate we by state and taxes items effective an which was release of tax tax positively tax the for recorded reflects the
expect year we Finally, to full be and our tax rate between XXXX XX.X%. XX.X% effective
and our liquidity. to sheet Now balance
We flows million academic calendar For operations flows the the million from and end the increase $XX.X million cash the from of prior timing the first session driven and cash equivalents, short-term an in represents year start increase were cash versus cash, primarily since quarter, the of year. of in quarter This approximately $X.X restricted quarter. dates. cash was with ended of The by the last operations investments. $XXX.X net available-for-sale million $XX.X
the during for repurchases. $X.X and X.X% the in share million we to or of form million shareholders dividends quarter, approximately quarter first the quarterly were $XX of Additionally, revenue. expenditures Capital returned
be we XXXX, between As a year reminder, full foresee X% to to revenues. capital X% for expenditures of the
share I updated a discuss outlook, let allocation. to capital Before me minute take the
average stock share, to quarter announce June Board policy, dividend XX, on the our on the of Future XXXX, payable for dividend record cash approval of to be of [indiscernible], the to free payment current Perdoceo's the paid X, share Separately, X, approved pleased total of per purchase the our first of mentioned, strategy with payments common June amount and will factors. Subject XXXX, just we for integral we review quarterly dividend capital $XX.XX fall. quarterly the approximately growing the of an and $X.X an other available repurchased relevant at are holders of out business that are of X.X price Board million. subject to earnings, company's dividend requirements Directors per $X.XX financial on a first retained quarterly consistent to dividend payments balanced and and expect close of Board We the during of at the expected million to XXXX. allocation May expect flow the be quarter part this condition shares
balanced forward, to long-term allocation. of meaningful expect Moving share we remain repurchases a part approach our to capital
a designed strategies initiatives stockholder particular, strategy and to including Our organic capital strong evaluating our allocation in diverse maintaining prioritizes students technology-related balance sheet also to projects, acquisitions. also value, enhance investments benefit in while
student $XXX full to XXXX. quarter, ignore over adjusted is the in share retention note to to operating show of growth Based impact outlook to $X.XX diluted reflects aid million adjusted and me for that and to and expected we million from lower Full discuss lower first XXXX. This to performance XXXX. rates than per of comparability million operating the $X.XX comparability range student engagement federal the as at between of in $XXX due now impact, the $XXX range that million XXXX XXXX initiatives our belief previously let income by would the $XXX remainder between calendar expect earnings is quarters, be on revenue also better-than-expected the if positive continue range of income CTU provided Now versus and year. Please for for will $X.XX compared partly $XXX.X the versus resulting we the CTU to expected to Adjusted were year experienced million. few the levels XXXX past current in this XXXX. our various the supported high to revenue we persist CTU current academic outlook at revenue year
enrollment expect systems, well At lag below engagement from total experience also corporate to lower growth of levels expected to beginning the is of as levels We enrollments. as programs. AIU the growth by total engagement the be CTU high XXXX continued XXXX, retention impact student year-end primarily and due revenue driven to for
for continues retention the In normalized fourth levels during AI double-digit student as quarter the the AIU system post to system fourth And at marketing revenue the with we expect following: AIU expect per to each will the to of of strong we to moderate revenue we enrollment XXXX. while experiencing expect quarter quarter, as and experience XXXX. growth operate levels engagement, also admissions, AI compared compared of to system the quarter, XXXX. each year-end system and growth subsequent As decline enrollment
XXXX. operating between in million second quarter in million prior with expect adjusted the year the and income million For to diluted share compared per to per of adjusted of $XX diluted as to $XX.X $XX in the earnings quarter, we share versus range XXXX, $X.XX quarter $X.XX range the of be $X.XX to second
of and and any the CTU magnitude in revenue CTU's the the XXXX, in comparability same the earning necessarily lag which XXXX first lower a Also, year. AIU year a reminder, year, earning have in days may academic half when of not from a at but calendar impact and direction. On the compared As XXXX. impact total results first will enrollments will revenue to of system prior will larger full on days beginning disproportionately the enrollment impact impact given quarter half basis, have lower
expected lower first half compared to to show is to half compared income be second of a XXXX, we as as XXXX while As the XXXX. result, the expect adjusted to first half from the operating growth
Education new various Department recently continues updating XX-K, gone while and in negotiated most disclosed other the also on Form As processes has additional guidance through of to recent through go topics. and interpretation rule-making providing our
impact While we on have to with and initiatives as updated that and guidance continue operational Any I rule-making department's could the are from these changes an to new compliance necessary presented. interpretations department. as evaluate outlook monitor rules well just coming ensure further or the
key information as experiences. corporate in and from earnings academics and the ongoing the about filed closing underlying discussion factors call continue to engagement support We'll of our and and as for assumes XXXX increase call outcomes in have We believe the Our reconciliations. impacting turn these size analytics, assumptions academic today's processes. Todd to resources this refer outlook will for today to institutions' his Please student important teams. positively non-GAAP Todd? well GAAP I also successful release investments the over With our been also technology, to investments that, data remarks. back certain
the Thank pleased we year. executed I'm new of first bringing progress our of XXXX, company way with I'm you, through Ashish. quarter the the the closing, are into In and proud
remain our educating we staff academic look us, again and students to forward and you for again once hard and serving student institutions on thank will I'd outcomes. like and dedication. prioritize work for ongoing and academic their focused our experiences of continue to investments again and Our students to speaking Thank quarter. joining all next
Ladies concludes today's that and gentlemen, call.
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