PERDOCEO EDUCATION Corp Q4 FY2024 earnings call

• Enrollment Trends: CTU total student enrollments increased by 8.1% compared to prior year-end, and AIU System total student enrollments increased by 11.8%. Student retention and engagement were near multi-year highs.
• Acquisition of St. Augustine: Successfully completed acquisition in early December 2024. It is a leader in graduate health science degrees, and the strategic acquisition diversifies and expands academic offerings into health sciences, expected to be accretive to Perdoceo's operating income and adjusted operating income in 2025 and beyond.
• Dividends and Stock Buybacks: Used approximately $38.5 million for dividends and stock buybacks during 2024. Returning cash to shareholders via quarterly dividends is part of the capital allocation strategy.
• Corporate Engagement: AIUS and CTU continue to invest in staff and technology. Monitor myriad rules, orders, and updated expectations from federal and state bodies around prospective student outreach.

CTU: Full-year revenue decreased by 2.6% to $456.9 million. Excluding professional development simplification impact, 2024 had organic revenue growth. Q4 revenue was $114.8 million, 9.7% higher than prior year quarter. Operating income for Q4 was $42 million vs $25.4 million prior year, and full-year operating income increased by 18.9% to $171.3 million. AIU System: Full-year revenue decreased by 11.1% to $213.5 million. Q4 revenue was $51.4 million, 19.1% higher than prior year quarter. Q4 operating income was $4.9 million vs $0.6 million prior year. Full-year operating income decreased by 20.1% to $36.2 million, mostly in the first half of 2024. St. Augustine: Acquired in December 2024, had approximately 3,800 total enrollments at December 31, 2024, and is expected to grow in 2025. It diversifies academic offerings into health sciences. Corporate and Other: Operating losses for the quarter and year were $7.1 million and $30.5 million respectively, which improved compared to prior year periods, primarily due to lower legal expenses in 2024.

• Full-year 2025 adjusted operating income is expected to range between $215 million and $235 million, compared to $192.2 million in 2024. Adjusted earnings per diluted share is expected to range between $2.31 and $2.51 versus $2.29 in 2024.
• First quarter of 2025 adjusted operating income is expected to be in the range of $61 million to $63 million compared to $14.5 million in the prior year quarter, with adjusted earnings per diluted share ranging between $0.64 and $0.67 per diluted share versus $0.60 in the first quarter of 2024.
• Full-year revenue in 2025 will be higher than 2024 primarily due to the acquisition of St. Augustine. Excluding the acquisition, revenue and total enrollments for AIU System and CTU are expected to show growth.

• Changes in the myriad of rules, orders, and updated expectations from various federal and state bodies around prospective student outreach could impact operations.
• With a new presidential administration, the Department of Education may review the organization, issue new regulations, and provide new interpretations and guidance, and it is too early to determine the impact on the outlook.