Perdoceo Education (PRDO) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Net income for Q3 2024 was $38.3 million or$ 0.57 per diluted share, compared to $41.3 million or$ 0.62 per diluted share in the prior year [12][15] - Adjusted earnings per diluted share were $0.59, down from$ 0.64 in the prior year [15] - Revenue for the quarter was $169.8 million, a decrease of 5.6% or$ 10.1 million compared to $179.9 million [19] - Operating income increased to$ 44.8 million, up $1.7 million from the prior year [16] Business Line Data and Key Metrics Changes - At CTU, revenue decreased by 4% to$ 115.7 million, while operating income increased to $44.2 million from$ 34.5 million in the prior year [21] - At AIU System, revenue was $53.9 million, down 9% from the prior year, with operating income at$ 9.1 million compared to $15.6 million previously [22] Market Data and Key Metrics Changes - Total enrollments at CTU grew by 13.6%, driven by corporate engagement programs [13][20] - Total enrollments at AIU System increased by 4%, ahead of expectations [20] Company Strategy and Development Direction - The company is focused on enhancing student experiences through technology and data analytics [10][29] - The acquisition of the University of St. Augustine is expected to significantly increase student numbers in health sciences and support growth in academic offerings [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about student retention and engagement trends, expecting continued growth in the fourth quarter [31][32] - The company anticipates adjusted operating income for the full year 2024 to range between$ 188 million and $191 million, an increase from previous estimates [31] Other Important Information - The effective tax rate for Q3 was 26.9%, with expectations for the full year to be between 26% and 27% [24] - The company ended the quarter with$ 722.6 million in cash and equivalents, an increase of approximately $118.4 million since the end of the previous year [25] Q&A Session Summary - No specific questions or answers were recorded in the provided content, indicating the end of the conference call [38]