PERDOCEO EDUCATION Corp
For the period ended Jun 30, 2024. Filed Jul 31, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 31, 2024
PRDO$26.88+1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-01.
0000950170-24-051293
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-31.
0000950170-24-088599
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 110 previous paragraphs and 104 current paragraphs.
64 unchanged; 31 reworded; 9 added; 15 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
2024 Second Quarter Overview
Current report
During the second quarter ended June 30, 2024 ("current quarter"), we continued to experience high levels of student retention and engagement at both CTU and AIUS, with student retention at multi-year highs. Our faculty and student support teams remain dedicated to educating and serving our students, and we anticipate that student retention should continue to trend at these levels through the remainder of 2024.
Current report
Non-cash gain associated with the sale of the LCB tradename in exchange for outstanding shares of Perdoceo's stock.
Current report
Institutional Accreditation
Current report
On July 19, 2024, the Higher Learning Commission informed AIUS that it had acted at its meeting on July 16, 2024 to continue AIUS' accreditation, with its next reaffirmation of accreditation scheduled for 2033-2034.
Current report
Current quarter operating income decreased by 4.3% or $2.1 million as compared to the prior year quarter and increased by 0.9% or $0.9 million for the current year to date as compared to the prior year period. The current quarter decrease was driven by lower revenue which was only partially offset with decreases in operating expenses across all categories. The year to date improvement was benefitted by reduced operating expenses across most categories which more than offset the decrease in revenue during the current year period as compared to the prior year period.
Current report
For the quarter and year to date ended June 30, 2024, we recorded a provision for income taxes of $14.6 million reflecting an effective tax rate of 27.5% and $28.0 million reflecting an effective tax rate of 26.4%, respectively, as compared to a provision for income taxes of $19.9 million reflecting an effective tax rate of 26.7% and $32.5 million reflecting an effective tax rate of 26.7% for the respective prior year periods.
Current report
CTU. Current quarter and year to date revenue decreased by 5.4% or $6.5 million and 7.1% or $17.4 million, respectively, as compared to the prior year periods. The decrease was primarily driven by changes within the professional development program offerings at CTU. CTU's total student enrollments increase of 14.7% as compared to the prior year quarter end was primarily driven by a positive timing impact of the academic calendar through the current year to date as well as growth in student enrollments from corporate engagement programs.
Current report
Current quarter and year to date operating income for CTU increased by 6.0% or $2.4 million and 1.1% or $0.9 million, respectively, as compared to the prior year periods, driven by decreases in operating expenses, including decreases related to right-sizing of the cost structure to align with more simplified professional development offerings, which more than offset the declines in revenue.
Removed paragraphs (15)
Previous report
2024 First Quarter Overview
Previous report
During the first quarter ended March 31, 2024 ("current quarter"), we continued to experience strong student retention and engagement at both of our academic institutions as a result of our focus on our key objectives of enhancing student experiences, retention and academic outcomes.
Previous report
Borrower Defense to Repayment
Previous report
On February 28, 2023, the Career Colleges & Schools of Texas (“CCST”) filed a lawsuit in the U.S. District Court for the Northern District of Texas challenging the Department’s most recent versions of the borrower defense to repayment (BDR) and closed school loan discharge (CSLD) regulations that were to be effective July 1, 2023. CCST seeks to set aside these rules on the grounds that they violate the U.S. Constitution and the Administrative Procedure Act. On April 4, 2024, the Fifth Circuit reversed the district court’s denial of CCST’s motion for preliminary injunction and remanded the case back to the district court with instructions to postpone the effective date of these rules pending final judgment, effectively maintaining a nationwide injunction against these latest rules going into effect that had previously been entered by the Fifth Circuit. The Fifth Circuit’s ruling included a detailed analysis of the likelihood of success of CCST’s legal arguments against the Department and identified numerous reasons why, in its opinion, CCST is likely to be successful on the merits. Among other conclusions, the Fifth Circuit determined that the Higher Education Act likely does not grant the Department the authority to draft regulations providing affirmative claims that borrowers can assert against schools, in contrast to “defenses” to a creditor’s effort to collect on student loans. The Fifth Circuit also determined that the new BDR rule raised constitutional questions about the Department’s authority to adjudicate claims outside of the judicial system, and held that the new rule’s standards for actionable misrepresentations or omissions or aggressive or deceptive recruiting tactics most likely do not comply with the specificity requirements of the enabling statute. Finally, the Fifth Circuit held that the new CSLD regulations exceeded the Department’s authority by redefining a school “closure” to mean when the school ceased to provide programs in which most students were enrolled, and in authorizing automatic, full discharges of student loans without proof that the school closure was the reason that students were unable to complete their programs. On remand, the district court will decide the merits of CCST’s legal challenges. We are unable to predict whether and to what extent this legal challenge will have on the newest or prior versions of the BDR regulations and any related effort by the Department to seek recoupment of approved claims from institutions.
Previous report
See Item 1, “Business – Legislative Action and Recent Department Regulatory Initiatives” and “Compliance with Federal Regulatory Standards and Effect of Federal Regulatory Violations” in our Annual Report on Form 10-K for the year ended December 31, 2023 for an overview of BDR.
Previous report
See Item 1A, “Risk Factors – Risks Related to the Highly Regulated Field in Which We Operate – ‘Borrower defense to repayment' regulations, including closed school loan discharges, may subject us to significant repayment liability to the Department for discharged federal student loans and posting of substantial letters of credit that may limit our ability to make investments in our business which could negatively impact our future growth,’” in our Annual Report on Form 10-K for the year ended December 31, 2023 for more information about risks associated with the BDR and closed school loan discharge regulations.
Previous report
Department Information Requests
Previous report
In connection with its administration of Title IV Programs, the Department has broad powers to request information and review records of a participating institution. Since December 2021, the Company has responded to extensive requests for information from the Department's Investigation Group relating to CTU and AIUS and may be asked to respond to further requests in the future. Most recently, this group made an inquiry that questions whether and to what extent the promotion of our flexible mobile app technology is incompatible or inconsistent with how we also inform students of technology equipment and internet access requirements and may violate Title IV regulations. We believe our discussions of these topics are in compliance with the applicable Title IV regulations and are preparing an appropriate response. Significant resources are required to respond to the requests and the Department’s review of information provided could lead to additional requests for information or claims of noncompliance with the extensive regulatory requirements relating to the administration of Title IV Programs.
Previous report
See Item 1A, “Risk Factors – Risks Related to the Highly Regulated Field in Which We Operate – ‘Compliance with the extensive regulatory requirements applicable to our business can be costly and time consuming, and failure to comply could result in substantial financial penalties, severe restrictions on or closure of our operations, loss of federal and state financial aid funding for our students, or loss of our authorization to operate our institutions,’and ‘If the Department denies, or significantly conditions, recertification of either of our institutions to participate in Title IV Programs, that institution could not conduct its business as it is currently conducted,’” and other risk factors in our Annual Report on Form 10-K for additional information about the risks surrounding continued participation in Title IV Programs.
Previous report
Revenue for the first quarter of 2024 ("current quarter") decreased 14.0% or $27.3 million as compared to the prior year quarter. The decline was primarily driven by a timing impact of the academic calendar at CTU and lower total student enrollments at
Previous report
Operating income increased by 6.8% or $2.9 million for the current quarter as compared to the prior year quarter. The current quarter increase was primarily driven by lower operating expenses across all categories which more than offset the decline in revenue for the current quarter.
Previous report
CTU. Current quarter revenue decreased by 8.8% or $10.9 million as compared to the prior year quarter. The decrease was primarily driven by a lower number of revenue earnings days during the current quarter as compared to the prior year quarter.
Previous report
Current quarter operating income for CTU decreased by 3.5% or $1.5 million as compared to the prior year quarter driven by the decrease in revenue discussed above, which was mostly offset with decreased operating expenses.
Previous report
On September 8, 2021, the Company and the subsidiary guarantors thereunder entered into a credit agreement with Wintrust Bank N.A. (“Wintrust”), in its capacities as the sole lead arranger, sole bookrunner, administrative agent and letter of credit issuer for the lenders from time to time parties thereto (the “Credit Agreement”). The Credit Agreement provides the Company with the benefit of a $125.0 million senior secured revolving credit facility and was originally scheduled to mature on September 8, 2024. On January 23, 2024, after having previously been amended on April 1, 2022, the Company and the subsidiary guarantors thereunder entered into a Second Amendment to the Credit Agreement with Wintrust (the “Second Amendment” and the Credit Agreement, as amended to date, the “Second Amended Credit Agreement”). The Second Amendment, among other things, (i) extends the maturity date of the revolving credit facility to January 31, 2027; (ii) lowers the “Prime Rate” floor from 4% to 3%; (iii) replaces BMO Bank N.A. with Valley National Bancorp as one of the lenders that is party to the revolving credit facility; and (iv) modifies the relative commitments of the lenders that are parties to the revolving credit facility. Under the Second Amended Credit Agreement, the Company continues to have the benefit of a $125.0 million senior secured revolving credit facility, and, so long as no default has occurred and other conditions have been met, the Company may request an increase in the aggregate commitment in an amount not to exceed $50.0 million. The loans and letter of credit obligations under the Second Amended Credit Agreement are secured by substantially all assets of the Company and the subsidiary guarantors.
Previous report
The Second Amended Credit Agreement and the ancillary documents executed in connection therewith contain customary affirmative, negative and financial maintenance covenants. The Company is required to maintain unrestricted cash, cash equivalents and short-term investments in domestic accounts in an amount at least equal to the aggregate loan commitments then in effect. Acquisitions to be undertaken by the Company must meet certain criteria, and the Company’s ability to make restricted payments, including payments in connection with a repurchase of shares of our common stock and quarterly dividend payments, is subject to an aggregate maximum of $100.0 million per fiscal year. Upon the occurrence of certain regulatory events or if the Company’s unrestricted cash, cash equivalents and short term investments are less than 125% of the aggregate amount of the loan commitments then in effect, the Company is required to maintain cash in a segregated, restricted account in an amount not less than the aggregate loan commitments then in effect. The Second Amended Credit Agreement also contains customary representations and warranties, events of default, and rights and remedies upon the occurrence of any event of default thereunder, including rights to accelerate the loans, terminate the commitments and realize upon the collateral securing the obligations under the credit agreement. As of March 31, 2024, there were no amounts outstanding under the revolving credit facility.
Reworded paragraphs (31)
Previous wording
Total student enrollments increased 9.0% at March 31, 2024 as compared to March 31, 2023, with CTU’s increase of 28.5% being partially offset with AIUS’ decrease of 22.9%. CTU's increase in total student enrollments was primarily driven by a positive timing impact from the academic calendar comparability resulting in more enrollment days for the current quarter as compared to the prior year quarter as well as organic student enrollment growth due to strong student retention and engagement. The total student enrollment decrease at AIUS was expected as a result of the operational changes made within prospective student enrollment, marketing and outreach processes by AIUS in the prior year to address regulatory changes which went into effect in July of 2023. AIUS had mostly reverted to normalized levels of operations during the fourth quarter of 2023 and as a result experienced growth in student enrollments for the current quarter when compared to the low point of the fourth quarter of 2023.
Current wording
Total student enrollments increased 4.2% at June 30, 2024 as compared to June 30, 2023, with CTU’s increase of 14.7% being partially offset with AIUS’ decrease of 18.2%. CTU's increase in total student enrollments was driven by a positive timing impact from the academic calendar comparability resulting in more enrollment days for the current year to date as compared to the prior year to date as well as organic student enrollment growth within our corporate engagement programs. The total student enrollment decrease at AIUS was expected and due to the operational changes made within prospective student enrollment, marketing and outreach processes by AIUS in the prior year to address regulatory changes which went into effect in July of 2023.
Previous wording
We view technology as a catalyst and differentiator for us and remain committed to making selective investments that deliver a more meaningful and relevant educational experience for our learners while continuing to improve the efficiency and effectiveness of our academic institutions’ academic and student support functions. Additionally, we remained focused on investing in and improving processes that support our corporate engagement programs. These programs remain a focus and a priority for both academic institutions and we will continue to make necessary investments in staff and technology to further grow their programs in an efficient and effective manner. Lastly, marketing and admissions spend, and commensurately prospective student inquiry generation, was lower during the current quarter as compared to the prior year quarter. Aided by data analytics, we continue to adjust our marketing strategies to further improve our focus on identifying prospective students who are more likely to succeed at one of our universities, as well as comply with updated expectations from various federal agencies around prospective student outreach.
Current wording
We view technology as a catalyst and differentiator for us and remain committed to making selective investments that deliver a more meaningful and relevant educational experience for our learners while continuing to improve the efficiency and effectiveness of our academic institutions’ student support functions. Additionally, we remained focused on investing in and improving processes that support our corporate engagement programs. These programs remain a focus and a priority for both academic institutions and we will continue to make necessary investments in staff and technology to further grow their programs in an efficient and effective manner. Lastly, marketing and admissions spend, and commensurately prospective student inquiry generation, was lower during the current quarter as compared to the prior year quarter. Aided by data analytics, we continue to adjust our marketing strategies to further improve our focus on identifying prospective students who are more likely to succeed at one of our universities, as well as comply with updated expectations from various federal agencies around prospective student outreach.
Previous wording
We expect the strong levels of student retention and engagement that we experienced in 2023 and through the current quarter, to continue through the remainder of 2024. Additionally, as AIUS had mostly reverted to normalized levels of operations in the fourth quarter of 2023, we expect AIUS to experience double digit total student enrollment growth during 2024 as compared to December 31, 2023. Full year revenue is expected to be lower for 2024 primarily as a result of the academic calendar redesign at CTU which will result in lower revenue-earning days in 2024 as well as the lag impact on revenue of lower beginning total student enrollments at AIUS. Management expects to optimize operating expenses throughout 2024 to mostly offset this expected decline in revenue.
Current wording
We expect the strong levels of student retention and engagement experienced through the current year to date, to continue through the remainder of 2024. Additionally, as AIUS had mostly reverted to normalized levels of operations in the fourth quarter of 2023, we expect AIUS to experience total student enrollment growth at December 31, 2024 as compared to the prior year end. Full year revenue is expected to be lower for 2024 primarily due to the lag impact on revenue of lower beginning total student enrollments at AIUS as well as lower revenue due to simplification of our professional development offerings at CTU.
Previous wording
Revenue for the current quarter decreased by 14.0% or $27.3 million as compared to the prior year quarter, resulting from a decrease in revenue for CTU of 8.8% or $10.9 million and a decrease for AIUS of 23.1% or $16.3 million. CTU’s academic calendar may impact the comparability of revenue-earning days and enrollment results in any given quarter, with the impact on revenue and total student enrollments not necessarily having the same magnitude or directional impact. The decrease in revenue at CTU was due to less revenue-earning days during the current quarter as compared to the prior year quarter. The decrease within AIUS was driven by a lag impact on revenue of the operational changes undertaken during 2023.
Current wording
Revenue for the current quarter decreased by 10.6% or $19.8 million as compared to the prior year quarter, resulting from a decrease in revenue for CTU of 5.4% or $6.5 million and a decrease for AIUS of 19.9% or $13.3 million. The decrease in revenue at CTU was driven by changes within our professional development program offerings and the decrease within AIUS was driven by a lag impact on revenue of the operational changes undertaken during 2023.
Previous wording
Operating income for the current quarter increased to $46.3 million as compared to operating income of $43.3 million in the prior year quarter. The increase in operating income for the current quarter was primarily due to lower operating expenses across most functional categories in the current quarter as compared to the prior year quarter which more than offset the decline in revenue.
Current wording
Operating income for the current quarter decreased to $46.0 million as compared to operating income of $48.1 million in the prior year quarter. The decrease in operating income for the current quarter was a result of lower revenue which was only partially offset with lower operating expenses across most functional categories in the current quarter as compared to the prior year quarter.
Previous wording
The Company believes it is useful to present non-GAAP financial measures, which exclude certain significant and non-cash items, as a means to understand the performance of its operations. (See tables below for a GAAP to non-GAAP reconciliation.) Adjusted operating income was $49.5 million for the current quarter as compared to $53.1 million for the prior year quarter.
Current wording
The Company believes it is useful to present non-GAAP financial measures, which exclude certain significant and non-cash items, as a means to understand the performance of its operations. (See tables below for a GAAP to non-GAAP reconciliation.) Adjusted operating income was $50.9 million for the current quarter as compared to $55.2 million for the prior year quarter.
Previous wording
Adjusted operating income and adjusted earnings per diluted share for the quarters ended March 31, 2024 and 2023 is presented below (dollars in thousands, unless otherwise noted):
Current wording
Adjusted operating income and adjusted earnings per diluted share for the quarters and years to date ended June 30, 2024 and 2023 is presented below (dollars in thousands, unless otherwise noted):
Previous wording
The summary of selected financial data table below should be referenced in connection with a review of the following discussion of our results of operations for the quarters ended March 31, 2024 and 2023 (dollars in thousands):
Current wording
The summary of selected financial data table below should be referenced in connection with a review of the following discussion of our results of operations for the quarters and years to date ended June 30, 2024 and 2023 (dollars in thousands):
Previous wording
AIUS over the past few quarters. Typically, total student enrollment balances at the end of any given quarter have a lag impact on revenue in the subsequent quarter.
Current wording
The current quarter and year to date revenue decreased by 10.6% or $19.8 million and 12.3% or $47.2 million, respectively, as compared to the prior year periods, driven by decreases in revenue within both CTU and AIUS. The decline for the current quarter and year to date was driven by the lag impact on revenue due to the operational changes made at AIUS in the prior year as well as changes within our professional development program offerings at CTU. Typically, total student enrollment balances at the end of any given quarter have a lag impact on revenue in the subsequent quarter.
Previous wording
The educational services and facilities expense for the current quarter decreased by 11.8% or $4.0 million as compared to the prior year quarter. Academics and student related costs decreased by 11.3% or $3.5 million for the current quarter as compared to the prior year quarter, primarily driven by operational changes made to align with recent student enrollments trends. Occupancy expenses for the current quarter improved by 17.6% or $0.5 million as compared to the prior year quarter driven by the optimization of leased space.
Current wording
The educational services and facilities expense for the current quarter and year to date decreased by 16.0% or $5.2 million and 13.9% or $9.2 million, respectively, as compared to the prior year periods. Academics and student related costs decreased by 13.8% or $4.2 million and 12.5% or $7.7 million for the current quarter and year to date, respectively, as compared to the prior year periods, primarily driven by operational changes made to align with recent student enrollments trends. Occupancy expenses for the current quarter and year to date improved by 41.9% or $1.1 million and 29.3% or $1.5 million, respectively, as compared to the prior year periods, driven by the optimization of leased space.
Previous wording
The general and administrative expense for the current quarter decreased by 22.4% or $25.2 million as compared to the prior year quarter, driven by decreases within all expense categories for the current comparative period.
Current wording
The general and administrative expense for the current quarter and year to date decreased by 11.2% or $11.3 million and 17.1% or $36.5 million, respectively, as compared to the prior year periods, driven by decreases within all expense categories for the current comparative period.
Previous wording
Advertising and marketing expense for the current quarter decreased by 22.5% or $7.1 million as compared to the prior year quarter, as a result of adjustments made to our marketing process related to identifying prospective student interest within both CTU and AIUS.
Current wording
Advertising and marketing expense for the current quarter and year to date decreased by 10.5% or $2.7 million and 17.1% or $9.8 million, respectively, as compared to the prior year periods, as a result of adjustments made to our marketing processes related to identifying prospective student interest within both CTU and AIUS.
Previous wording
Admissions expense for the current quarter decreased by 19.6% or $5.1 million as compared to the prior year quarter. The current period improvement was driven by decreased expenses within both CTU and AIUS as a result of operational changes made during the prior year.
Current wording
Admissions expense for the current quarter and year to date decreased by 14.4% or $3.4 million and 17.2% or $8.5 million, respectively, as compared to the prior year periods, primarily driven by decreased expenses within both CTU and AIUS as a result of the operational changes made during the prior year.
Previous wording
The administrative expense decreased by 19.8% or $8.8 million for the current quarter as compared to the prior year quarter, primarily driven by operational efficiencies within our academic institutions and decreased legal fees within Corporate and Other.
Current wording
The administrative expense for the current quarter and year to date decreased by 7.2% or $3.1 million and 13.6% or $12.0 million, respectively, as compared to the prior year periods, primarily driven by operational efficiencies within our academic institutions and decreased legal fees within Corporate and Other.
Previous wording
Bad debt expense incurred by each of our segments during the quarters ended March 31, 2024 and 2023 was as follows (dollars in thousands):
Current wording
Bad debt expense incurred by each of our segments during the quarters and years to date ended June 30, 2024 and 2023 was as follows (dollars in thousands):
Previous wording
Bad debt expense decreased by 39.1% or $4.2 million for the current quarter as compared to the prior year quarter, with improvement experienced at both CTU and AIUS. CTU and AIUS' bad debt expense decreased by 57.5% or $4.1 million and 2.9% or $0.1 million, respectively, for the current quarter as compared to the prior year quarter. Bad debt as a percentage of revenue improved by 1.6% for the current quarter as compared to the prior year quarter.
Current wording
Bad debt expense improved by 25.6% or $2.1 million and 33.3% or $6.3 million for the current quarter and current year to date, respectively, as compared to the prior year periods. Bad debt as a percentage of revenue declined for both current quarter and year to date as compared to the prior year periods.
Previous wording
We regularly evaluate our reserve rates, which includes a quarterly update of our analysis of historical student receivable collectability based on the most recent data available and a review of current known factors which we believe could affect future collectability of our student receivables, such as the number of students that do not complete the financial aid process. We continue to expect quarterly fluctuations in bad debt expense, especially as some of the various federal aid initiatives expire.
Current wording
We regularly evaluate our reserve rates, which includes a quarterly update of our analysis of historical student receivable collectability based on the most recent data available and a review of current known factors which we believe could affect future collectability of our student receivables, such as the number of students that do not complete the financial aid process. We continue to expect quarterly fluctuations in bad debt expense.
Previous wording
For the quarter ended March 31, 2024, we recorded a provision for income taxes of $13.4 million or 25.4% as compared to a provision for income taxes of $12.6 million or 26.7% for the prior year quarter. The effective tax rate for the quarter ended March 31, 2024 was benefitted by the tax effect of stock-based compensation and the release of previously recorded tax reserves, which reduced the effective tax rate by 2.5%. The effective tax rate for the quarter ended March 31, 2023 was impacted by the tax effect of stock-based compensation and the release of previously recorded tax reserves, the net effect of which decreased the effective tax rate by 0.8%. For the full year 2024, we expect our effective tax rate to be between 25.5% and 26.5%.
Current wording
The effective tax rate for the quarter and year to date ended June 30, 2024 was impacted by the tax effect of stock-based compensation and the release of previously recorded tax reserves, which decreased the effective tax rate for the quarter and year to date by 1.4% and 2.0%, respectively. The effective tax rate for the quarter and year to date ended June 30, 2023 was impacted by a $5.3 million unfavorable discrete adjustment related to the $22.1 million gain on the sale of the Le Cordon Bleu trademark, which was taxed at 24.1%. The effective tax rate for the quarter and year to date ended June 30, 2023 also included the tax effect of stock-based compensation and the release of previously recorded tax reserves, which decreased the effective tax rate for the quarter and year to date by 0.6% and 0.7%, respectively. For the full year 2024, we expect our effective tax rate to be between 26.5% and 27.5%.
Previous wording
AIUS. Current quarter revenue decreased by 23.1% or $16.3 million as compared to the prior year quarter. The decrease was primarily driven by a decrease in total student enrollments of 22.9% at March 31, 2024 as compared to the prior year quarter end due to the lag impact from the operational changes made during the latter half of 2023.
Current wording
AIUS. Current quarter and year to date revenue decreased by 19.9% or $13.3 million and 21.5% or $29.7 million, respectively, as compared to the prior year periods. The decreases were driven by a decrease in total student enrollments of 18.2% at June 30, 2024 as compared to the prior year period due to the lag impact from the operational changes made during the latter half of 2023.
Previous wording
Current quarter operating income for AIUS decreased by 22.6% or $2.7 million as compared to the prior year quarter driven by the decrease in revenue discussed above, which was mostly offset with decreased operating expenses.
Current wording
Current quarter and year to date operating income for AIUS decreased by 24.3% or $4.2 million and 23.6% or $6.9 million, respectively, as compared to the prior year periods, driven by the decrease in revenue discussed above, which was only partially offset with decreased operating expenses.
Previous wording
Corporate and Other. This category includes unallocated costs that are incurred on behalf of the entire company. Total Corporate and Other operating loss for the current quarter improved by 58.2% or $7.2 million as compared to the prior year quarter, primarily as a result of decreased legal fee expense.
Current wording
Corporate and Other. This category includes unallocated costs that are incurred on behalf of the entire company. Total Corporate and Other operating loss for the current quarter increased by 4.0% or $0.4 million as compared to the prior year quarter primarily driven by acquisition costs, partially offset with reduced legal fees associated with borrower defense to repayment applications. The year to date operating loss improved by 31.3% or $6.8 million as compared to the prior year period as a result of lower legal expenses.
Previous wording
As of March 31, 2024, cash, cash equivalents, restricted cash and available-for-sale short-term investments(“cash balances”) totaled $642.4 million. Our cash flows from operating activities have historically been adequate to fulfill our liquidity requirements. We have historically financed our operating activities, organic growth and acquisitions primarily through cash generated from operations and existing cash balances. We expect to continue to generate cash during the remainder of 2024. We anticipate that we will be able to satisfy the cash requirements associated with, among other things, our working capital needs, capital expenditures, lease commitments and quarterly dividends payments through at least the next 12 months primarily with cash generated by operations and existing cash balances.
Current wording
As of June 30, 2024, cash, cash equivalents, restricted cash and available-for-sale short-term investments(“cash balances”) totaled $675.2 million. Our cash flows from operating activities have historically been adequate to fulfill our liquidity requirements. We have historically financed our operating activities, organic growth and acquisitions primarily through cash generated from operations and existing cash balances. We expect to continue to generate cash during the remainder of 2024. We anticipate that we will be able to satisfy the cash requirements associated with, among other things, our working capital needs, capital expenditures, lease commitments, quarterly dividends payments and pending acquisition through at least the next 12 months primarily with cash generated by operations and existing cash balances.
Previous wording
During the quarters ended March 31, 2024 and 2023, net cash flows provided by operating activities totaled $54.5 million and $4.6 million, respectively. The current quarter increase in net cash flows provided by operating activities was driven by timing of academic terms at CTU and the resulting cash receipts versus the prior year quarter.
Current wording
During the years to date ended June 30, 2024 and 2023, net cash flows provided by operating activities totaled $93.0 million and $66.2 million, respectively. The increase in net cash flows provided by operating activities for the current year to date as compared to the prior year to date was primarily driven by timing differences between the cash inflows related to academic session start dates as compared to revenue earned from those sessions.
Previous wording
During the quarters ended March 31, 2024 and 2023, net cash flows used in investing activities totaled $30.8 million and $21.4 million, respectively.
Current wording
During the years to date ended June 30, 2024 and 2023, net cash flows used in investing activities totaled $60.1 million and $30.5 million, respectively.
Previous wording
Purchases and Sales of Available-for-Sale Investments. Purchases and sales of available-for-sale investments resulted in a net cash outflow of $29.6 million and $19.4 million for the quarters ended March 31, 2024 and 2023, respectively.
Current wording
Purchases and Sales of Available-for-Sale Investments. Purchases and sales of available-for-sale investments resulted in a net cash outflow of $58.1 million and $26.9 million for the years to date ended June 30, 2024 and 2023, respectively.
Previous wording
Capital Expenditures. Capital expenditures decreased to $1.2 million for the quarter ended March 31, 2024 as compared to $1.9 million for the quarter ended March 31, 2023. For the full year 2024, we expect capital expenditures to be between 1% to 2% of revenue.
Current wording
Capital Expenditures. Capital expenditures decreased to $2.0 million for the year to date ended June 30, 2024 as compared to $3.6 million for the year to date ended June 30, 2023. For the full year 2024, we expect capital expenditures to be approximately 1.5% of revenue.
Previous wording
During the quarters ended March 31, 2024 and 2023, net cash flows used in financing activities totaled $15.9 million and $2.8 million, respectively. Payments to repurchase shares of our common stock were $6.8 million for the quarter ended March 31, 2024 and $0.8 million for the quarter ended March 31, 2023.
Current wording
During the years to date ended June 30, 2024 and 2023, net cash flows used in financing activities totaled $23.0 million and $4.6 million, respectively. Payments to repurchase shares of our common stock were $6.8 million for the year to date ended June 30, 2024 and $2.7 million for the year to date ended June 30, 2023.
Previous wording
Payments of employee tax associated with stock compensation. Payments of employee tax associated with stock compensation were $3.4 million and $2.2 million for the quarters ended March 31, 2024 and 2023, respectively.
Current wording
Payments of employee tax associated with stock compensation. Payments of employee tax associated with stock compensation were $3.4 million and $2.2 million for the years to date ended June 30, 2024 and 2023, respectively.
Previous wording
Payments of cash dividends. During the quarter ended March 31, 2024, the Company made dividend payments of $7.2 million.
Current wording
Payments of cash dividends and dividend equivalents. During the year to date ended June 30, 2024, the Company made dividend payments of $14.6 million.
Previous wording
Right of use asset, net: The decrease is driven by impairment charges associated with the decision to exit a portion of certain leased facilities during the quarter along with recurring amortization of remaining ROU assets.
Current wording
Right of use asset, net: The decrease is driven by recurring amortization of remaining ROU assets as well as impairment of certain leased assets which the Company made the decision to vacate during the current year to date.
Previous wording
Payroll and related benefits: The decrease is driven by annual incentive compensation payments made during the current quarter which were accrued as of the prior year end.
Current wording
Payroll and related benefits: The decrease is driven by annual incentive compensation payments made during the current year which were accrued as of the prior year end.