Perdoceo Education Corporation reported its financial results for the quarter and year-to-date period ending September 30, 2024, revealing a decline in revenue but an increase in operating income. Total revenue for Q3 2024 was $169.8 million, down 5.6% from $179.9 million in Q3 2023. Year-to-date revenue also decreased by 10.2%, totaling $504.8 million compared to $562.1 million in the same period last year. The decline in revenue was attributed to decreased tuition and fees, particularly from the American InterContinental University System (AIUS), which saw a 9.0% drop in revenue.

Despite the revenue decline, Perdoceo's operating income for Q3 2024 increased to $44.8 million, up 4.0% from $43.1 million in Q3 2023. Year-to-date operating income rose by 1.9% to $137.1 million. The increase in operating income was primarily due to a reduction in operating expenses, which fell to $125.0 million in Q3 2024 from $136.9 million in the same quarter of the previous year.

Net income for Q3 2024 was $38.3 million, a decrease of 7.4% from $41.3 million in Q3 2023. Year-to-date net income also declined by 11.0%, totaling $116.1 million compared to $130.5 million in the prior year. The decrease in net income was accompanied by an increase in the provision for income taxes, which rose significantly in Q3 2024 to $14.1 million from $6.8 million in Q3 2023.

Perdoceo's total assets increased to $1.1 billion as of September 30, 2024, up from $1.0 billion at the end of 2023. The company reported a strong cash position, with cash and cash equivalents totaling $238.8 million, significantly higher than $119.0 million at the end of 2023. This robust cash position allowed the company to terminate its credit agreement in July 2024, which was originally set to mature in 2027.

In terms of strategic developments, Perdoceo announced plans to acquire the University of St. Augustine for Health Sciences for approximately $142 million to $144 million, expected to close in December 2024, subject to regulatory approvals. The acquisition will be funded using cash on hand. Additionally, the company has seen a notable increase in student enrollments, with total enrollments rising by 11.0% year-over-year, driven by growth at Colorado Technical University (CTU).

Overall, while Perdoceo faced challenges in revenue generation, it managed to improve its operating income and maintain a strong financial position, positioning itself for future growth through strategic acquisitions and increased student engagement.