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HERNDON, Va.--(BUSINESS WIRE)--Nov 3, 2022--
Strategic Education, Inc. (Strategic Education) (NASDAQ: STRA) today announced financial results for the period ended September 30, 2022.
“We are pleased with the continued strengthening of demand in our U.S. Higher Education segment during the third quarter of 2022,” said Karl McDonnell, Chief Executive Officer of Strategic Education. “Our Education Technology Services segment also produced strong results during the quarter, and notwithstanding continued delays in a return to pre-pandemic student immigration conditions in Australia and New Zealand, we remain confident in the long-term growth potential of the Australia/New Zealand segment.”
STRATEGIC EDUCATION CONSOLIDATED RESULTS
Three Months Ended September 30
U.S. Higher Education Segment Highlights
Education Technology Services Segment Highlights
Australia/New Zealand Segment Highlights
Balance Sheet and Cash Flow
At September 30, 2022, Strategic Education had cash, cash equivalents, and marketable securities of $288.8 million, and $141.2 million outstanding under its revolving credit facility. For the first nine months of 2022, cash provided by operations was $124.7 million compared to $161.2 million for the same period in 2021. Capital expenditures for the first nine months of 2022 were $32.5 million compared to $33.6 million for the same period in 2021. Capital expenditures for 2022 are expected to be approximately $45 million.
For the third quarter of 2022, consolidated bad debt expense as a percentage of revenue was 4.5%, compared to 3.8% of revenue for the same period in 2021.
COMMON STOCK CASH DIVIDEND
Strategic Education announced today that it declared a regular, quarterly cash dividend of $0.60 per share of common stock. This dividend will be paid on December 5, 2022 to shareholders of record as of November 28, 2022.
CONFERENCE CALL WITH MANAGEMENT
Strategic Education will host a conference call to discuss its third quarter 2022 results at 10:00 a.m. (ET) today. This call will be available via webcast. To access the live webcast of the conference call, please go to www.strategiceducation.com in the Investor Relations section 15 minutes prior to the start time of the call to register. An earnings release presentation will also be posted to www.strategiceducation.com in the Investor Relations section. Following the call, the webcast will be archived and available at www.strategiceducation.com in the Investor Relations section. To participate in the live call, investors should register here prior to the call to receive dial-in information and a PIN.
About Strategic Education, Inc.
Strategic Education, Inc. (NASDAQ: STRA) ( www.strategiceducation.com ) is dedicated to helping advance economic mobility through higher education. We primarily serve working adult students globally through our core focus areas: 1) U.S. Higher Education, including Strayer University and Capella University, each institutionally accredited, and collectively offer flexible and affordable associate, bachelor’s, master’s, and doctoral programs including the Jack Welch Management Institute at Strayer University, and non-degree web and mobile application development courses through Strayer University’s Hackbright Academy and Devmountain; 2) Education Technology Services, developing and maintaining relationships with employers to build education benefits programs providing employees access to affordable and industry-relevant training, certificate, and degree programs, including through Workforce Edge, a full-service education benefits administration solution for employers, and Sophia Learning, enabling education benefits programs through low-cost online general education-level courses that are ACE-recommended for college credit; and 3) Australia/New Zealand, comprised of Torrens University, Think Education, and Media Design School that collectively offer certificate and degree programs in Australia and New Zealand. This portfolio of high quality, innovative, relevant, and affordable programs and institutions helps our students prepare for success in today’s workforce and find a path to bettering their lives.
Forward-Looking Statements
This communication contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as “expect,” “estimate,” “assume,” “believe,” “anticipate,” “may,” “will,” “forecast,” “outlook,” “plan,” “project,” “potential” and other similar words, and include all statements that are not historical facts, including with respect to, among other things, the future financial performance and growth opportunities of Strategic Education; Strategic Education’s plans, strategies and prospects; and future events and expectations. The statements are based on Strategic Education’s current expectations and are subject to a number of assumptions, uncertainties and risks, including but not limited to:
Many of these risks, uncertainties and assumptions are beyond Strategic Education’s ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, these forward-looking statements speak only as of the information currently available to Strategic Education on the date they are made, and Strategic Education undertakes no obligation to update or revise forward-looking statements, except as required by law. Actual results may differ materially from those projected in the forward-looking statements.
STRATEGIC EDUCATION, INC. | |||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
(in thousands, except per share data) | |||||||||||
| For the three months ended |
| For the nine months ended | ||||||||
|
| 2021 |
|
| 2022 |
|
| 2021 |
|
| 2022 |
Revenues | $ | 270,078 |
| $ | 263,123 |
| $ | 859,587 |
| $ | 795,542 |
Costs and expenses: |
|
|
|
|
|
|
| ||||
Instructional and support costs |
| 153,651 |
|
| 153,162 |
|
| 459,394 |
|
| 445,154 |
General and administration |
| 95,714 |
|
| 97,753 |
|
| 275,954 |
|
| 289,259 |
Amortization of intangible assets |
| 8,932 |
|
| 3,522 |
|
| 47,731 |
|
| 10,954 |
Merger and integration costs |
| 1,111 |
|
| 269 |
|
| 4,060 |
|
| 933 |
Restructuring costs |
| 3,322 |
|
| 610 |
|
| 26,400 |
|
| 6,129 |
Total costs and expenses |
| 262,730 |
|
| 255,316 |
|
| 813,539 |
|
| 752,429 |
Income from operations |
| 7,348 |
|
| 7,807 |
|
| 46,048 |
|
| 43,113 |
Other income (expense) |
| (1,848) |
|
| (262) |
|
| 1,076 |
|
| (1,133) |
Income before income taxes |
| 5,500 |
|
| 7,545 |
|
| 47,124 |
|
| 41,980 |
Provision for income taxes |
| 1,646 |
|
| 1,453 |
|
| 13,717 |
|
| 13,639 |
Net income | $ | 3,854 |
| $ | 6,092 |
| $ | 33,407 |
| $ | 28,341 |
Earnings per share: |
|
|
|
|
|
|
| ||||
Basic | $ | 0.16 |
| $ | 0.26 |
| $ | 1.39 |
| $ | 1.19 |
Diluted | $ | 0.16 |
| $ | 0.25 |
| $ | 1.38 |
| $ | 1.18 |
Weighted average shares outstanding: |
|
|
|
|
|
|
| ||||
Basic |
| 23,948 |
|
| 23,550 |
|
| 23,966 |
|
| 23,765 |
Diluted |
| 24,113 |
|
| 23,902 |
|
| 24,131 |
|
| 24,026 |
STRATEGIC EDUCATION, INC. | |||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(in thousands, except share and per share data) | |||||
| December 31, |
| September 30, | ||
ASSETS |
|
|
| ||
Current assets: |
|
|
| ||
Cash and cash equivalents | $ | 268,918 |
| $ | 262,757 |
Marketable securities |
| 6,501 |
|
| 11,387 |
Tuition receivable, net |
| 51,277 |
|
| 81,676 |
Income taxes receivable |
| 313 |
|
| — |
Other current assets |
| 40,777 |
|
| 46,928 |
Total current assets |
| 367,786 |
|
| 402,748 |
Property and equipment, net |
| 150,589 |
|
| 136,073 |
Right-of-use lease assets |
| 149,587 |
|
| 125,081 |
Marketable securities, non-current |
| 23,377 |
|
| 14,648 |
Intangible assets, net |
| 276,380 |
|
| 259,855 |
Goodwill |
| 1,285,864 |
|
| 1,226,499 |
Other assets |
| 52,297 |
|
| 50,347 |
Total assets | $ | 2,305,880 |
| $ | 2,215,251 |
|
|
|
| ||
LIABILITIES & STOCKHOLDERS’ EQUITY |
|
|
| ||
Current liabilities: |
|
|
| ||
Accounts payable and accrued expenses | $ | 95,518 |
| $ | 101,357 |
Income taxes payable |
| — |
|
| 3,316 |
Contract liabilities |
| 73,232 |
|
| 131,705 |
Lease liabilities |
| 27,005 |
|
| 23,539 |
Total current liabilities |
| 195,755 |
|
| 259,917 |
Long-term debt |
| 141,630 |
|
| 141,234 |
Deferred income tax liabilities |
| 44,595 |
|
| 33,688 |
Lease liabilities, non-current |
| 162,821 |
|
| 136,791 |
Other long-term liabilities |
| 47,089 |
|
| 45,139 |
Total liabilities |
| 591,890 |
|
| 616,769 |
Commitments and contingencies |
|
|
| ||
Stockholders’ equity: |
|
|
| ||
Common stock, par value $0.01; 32,000,000 shares authorized; 24,592,098 |
| 246 |
|
| 245 |
Additional paid-in capital |
| 1,529,969 |
|
| 1,507,902 |
Accumulated other comprehensive income (loss) |
| 9,203 |
|
| (66,369) |
Retained earnings |
| 174,572 |
|
| 156,704 |
Total stockholders’ equity |
| 1,713,990 |
|
| 1,598,482 |
Total liabilities and stockholders’ equity | $ | 2,305,880 |
| $ | 2,215,251 |
STRATEGIC EDUCATION, INC. | |||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
(in thousands) | |||||
| For the nine months ended | ||||
|
| 2021 |
|
| 2022 |
Cash flows from operating activities: |
|
|
| ||
Net income | $ | 33,407 |
| $ | 28,341 |
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
| ||
Loss on sale of marketable securities |
| 781 |
|
| — |
Gain on sale of property and equipment |
| (681) |
|
| — |
Amortization of deferred financing costs |
| 414 |
|
| 414 |
Amortization of investment discount/premium |
| 55 |
|
| 29 |
Depreciation and amortization |
| 88,188 |
|
| 49,193 |
Deferred income taxes |
| (12,197) |
|
| (9,213) |
Stock-based compensation |
| 12,714 |
|
| 16,209 |
Impairment of right-of-use lease assets |
| 18,914 |
|
| 1,185 |
Changes in assets and liabilities: |
|
|
| ||
Tuition receivable, net |
| (38,490) |
|
| (33,320) |
Other assets |
| (6,106) |
|
| 417 |
Accounts payable and accrued expenses |
| (253) |
|
| 6,768 |
Income taxes payable and income taxes receivable |
| 4,050 |
|
| 4,498 |
Contract liabilities |
| 66,022 |
|
| 65,437 |
Other liabilities |
| (5,655) |
|
| (5,226) |
Net cash provided by operating activities |
| 161,163 |
|
| 124,732 |
|
|
|
| ||
Cash flows from investing activities: |
|
|
| ||
Purchases of property and equipment |
| (33,632) |
|
| (32,508) |
Proceeds from marketable securities |
| 9,300 |
|
| 2,600 |
Proceeds from sale of property and equipment |
| 4,328 |
|
| — |
Other investments |
| (589) |
|
| (223) |
Cash paid for acquisition, net of cash acquired |
| — |
|
| (193) |
Net cash used in investing activities |
| (20,593) |
|
| (30,324) |
|
|
|
| ||
Cash flows from financing activities: |
|
|
| ||
Common dividends paid |
| (44,289) |
|
| (44,600) |
Net payments for stock awards |
| (2,283) |
|
| (2,973) |
Repurchase of common stock |
| (5,905) |
|
| (36,916) |
Net cash used in financing activities |
| (52,477) |
|
| (84,489) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
| (3,280) |
|
| (10,729) |
Net increase (decrease) in cash, cash equivalents, and restricted cash |
| 84,813 |
|
| (810) |
Cash, cash equivalents, and restricted cash — beginning of period |
| 202,020 |
|
| 279,212 |
Cash, cash equivalents, and restricted cash — end of period | $ | 286,833 |
| $ | 278,402 |
STRATEGIC EDUCATION, INC. | |||||||||||
UNAUDITED SEGMENT REPORTING | |||||||||||
(in thousands) | |||||||||||
| For the three months ended |
| For the nine months ended | ||||||||
|
| 2021 |
|
| 2022 |
|
| 2021 |
|
| 2022 |
Revenues: |
|
|
|
|
|
|
| ||||
U.S. Higher Education | $ | 191,893 |
| $ | 185,499 |
| $ | 630,647 |
| $ | 571,291 |
Australia/New Zealand |
| 65,224 |
|
| 61,177 |
|
| 190,549 |
|
| 177,232 |
Education Technology Services |
| 12,961 |
|
| 16,447 |
|
| 38,391 |
|
| 47,019 |
Consolidated revenues | $ | 270,078 |
| $ | 263,123 |
| $ | 859,587 |
| $ | 795,542 |
Income (loss) from operations: |
|
|
|
|
|
|
| ||||
U.S. Higher Education | $ | 5,168 |
| $ | (1,948) |
| $ | 84,981 |
| $ | 25,386 |
Australia/New Zealand |
| 10,364 |
|
| 8,934 |
|
| 23,016 |
|
| 20,506 |
Education Technology Services |
| 5,181 |
|
| 5,222 |
|
| 16,242 |
|
| 15,237 |
Amortization of intangible assets |
| (8,932) |
|
| (3,522) |
|
| (47,731) |
|
| (10,954) |
Merger and integration costs |
| (1,111) |
|
| (269) |
|
| (4,060) |
|
| (933) |
Restructuring costs |
| (3,322) |
|
| (610) |
|
| (26,400) |
|
| (6,129) |
Consolidated income from operations | $ | 7,348 |
| $ | 7,807 |
| $ | 46,048 |
| $ | 43,113 |
Non-GAAP Financial Measures
In our press release and schedules, we report certain financial measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States of America ("GAAP"). We discuss management's reasons for reporting these non-GAAP measures below, and the press release schedules that follow reconcile the most directly comparable GAAP measure to each non-GAAP measure that we reference. Although management evaluates and presents these non-GAAP measures for the reasons described below, please be aware that these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for revenue, total costs and expenses, income from operations, operating margin, income before income taxes, net income, earnings per share or any other comparable financial measure prescribed by GAAP. In addition, we may calculate and/or present these non-GAAP financial measures differently than measures with the same or similar names that other companies report, and as a result, the non-GAAP measures we report may not be comparable to those reported by others.
Management uses certain non-GAAP measures to evaluate financial performance because those non-GAAP measures allow for period-over-period comparisons of the Company’s ongoing operations before the impact of certain items described below. Management believes this information is useful to investors to compare the Company’s results of operations period-over-period. These measures are Adjusted Revenue, Adjusted Total Costs and Expenses, Adjusted Income from Operations, Adjusted Operating Margin, Adjusted Income Before Income Taxes, Adjusted Net Income, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), Adjusted EBITDA and Adjusted Diluted Earnings Per Share (EPS). We define Adjusted Revenue, Adjusted Total Costs and Expenses, Adjusted Income from Operations, Adjusted Operating Margin, Adjusted Income Before Income Taxes, Adjusted Net Income, and Adjusted Diluted EPS to exclude (1) a purchase accounting adjustment to record acquired contract liabilities at fair value as a result of the Company’s acquisition of Torrens University and associated assets in Australia and New Zealand, and amortization and depreciation expense related to intangible assets and software assets associated with the Company’s merger with Capella Education Company and the Company’s acquisition of Torrens University and associated assets in Australia and New Zealand, (2) integration expenses associated with the Company's merger with Capella Education Company and the Company’s acquisition of Torrens University and associated assets in Australia and New Zealand, (3) severance costs and right-of-use lease asset impairment charges associated with the Company’s restructuring, (4) income/loss recognized from the Company’s investments in partnership interests and other investments, and (5) discrete tax adjustments utilizing adjusted effective income tax rates of 29.7% and 33.0% for the three months ended September 30, 2021 and 2022, respectively. To illustrate currency impacts to operating results, Adjusted Revenue, Adjusted Total Costs and Expenses, Adjusted Income from Operations, Adjusted Operating Margin, Adjusted Income Before Income Taxes, Adjusted Net Income, and Adjusted Diluted EPS for the three months ended September 30, 2022 are also presented on a constant currency basis utilizing an exchange rate of 0.73 Australian Dollars to U.S. Dollars, which was the average exchange rate for the same period in 2021. We define EBITDA as net income before other income (loss), the provision for income taxes, depreciation and amortization, and from this amount in arriving at Adjusted EBITDA we also exclude stock-based compensation expense, amortization expense associated with deferred implementation costs incurred in cloud computing arrangements, and the amounts in (2) and (3) above. These non-GAAP measures are reconciled to the most directly comparable GAAP measures in the sections that follow. Non-GAAP measures should not be viewed as substitutes for GAAP measures.
STRATEGIC EDUCATION, INC. | |||||||||||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||
ADJUSTED REVENUE, ADJUSTED TOTAL COSTS AND EXPENSES, ADJUSTED INCOME FROM | |||||||||||||||||||||||
OPERATIONS, ADJUSTED OPERATING MARGIN, ADJUSTED INCOME BEFORE INCOME TAXES, | |||||||||||||||||||||||
ADJUSTED NET INCOME, AND ADJUSTED EPS | |||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||
|
|
| For the three months ended September 30, 2021 |
|
| ||||||||||||||||||
| As Reported |
| Purchase |
| Merger and |
| Restructuring |
| Loss from |
| Tax |
| As Adjusted | ||||||||||
Revenues | $ | 270,078 |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | 270,078 | |||
Total costs and expenses | $ | 262,730 |
| $ | (8,932) |
| $ | (1,111) |
| $ | (3,322) |
| $ | — |
| $ | — |
| $ | 249,365 | |||
Income from operations | $ | 7,348 |
| $ | 8,932 |
| $ | 1,111 |
| $ | 3,322 |
| $ | — |
| $ | — |
| $ | 20,713 | |||
Operating margin |
| 2.7% |
|
|
|
|
|
|
|
|
|
|
|
| 7.7% | ||||||||
Income before income taxes | $ | 5,500 |
| $ | 8,932 |
| $ | 1,111 |
| $ | 3,322 |
| $ | 1,211 |
| $ | — |
| $ | 20,076 | |||
Net income | $ | 3,854 |
| $ | 8,932 |
| $ | 1,111 |
| $ | 3,322 |
| $ | 1,211 |
| $ | (4,312) |
| $ | 14,118 | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Diluted | $ | 0.16 |
|
|
|
|
|
|
|
|
|
|
| $ | 0.59 | ||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
| |||||||||||||
Diluted |
| 24,113 |
|
|
|
|
|
|
|
|
|
|
|
| 24,113 |
|
|
| For the three months ended September 30, 2022 |
|
| ||||||||||||||||||
| As Reported |
| Purchase |
| Merger and |
| Restructuring |
| Income from |
| Tax |
| As Adjusted | ||||||||||
Revenues | $ | 263,123 |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | 263,123 | |||
Total costs and expenses | $ | 255,316 |
| $ | (3,522) |
| $ | (269) |
| $ | (610) |
| $ | — |
| $ | — |
| $ | 250,915 | |||
Income from operations | $ | 7,807 |
| $ | 3,522 |
| $ | 269 |
| $ | 610 |
| $ | — |
| $ | — |
| $ | 12,208 | |||
Operating margin |
| 3.0% |
|
|
|
|
|
|
|
|
|
|
|
| 4.6% | ||||||||
Income before income taxes | $ | 7,545 |
| $ | 3,522 |
| $ | 269 |
| $ | 610 |
| $ | (39) |
| $ | — |
| $ | 11,907 | |||
Net income | $ | 6,092 |
| $ | 3,522 |
| $ | 269 |
| $ | 610 |
| $ | (39) |
| $ | (2,478) |
| $ | 7,976 | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Diluted | $ | 0.25 |
|
|
|
|
|
|
|
|
|
|
| $ | 0.33 | ||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
| |||||||||||||
Diluted |
| 23,902 |
|
|
|
|
|
|
|
|
|
|
|
| 23,902 |
(1) | Reflects amortization and depreciation expense of intangible assets and software assets acquired through the Company’s merger with | |
(2) | Reflects integration expenses associated with the Company's merger with Capella Education Company and the Company's acquisition of | |
(3) | Reflects severance costs and right-of-use lease asset impairment charges associated with the Company’s restructuring. | |
(4) | Reflects income/loss recognized from the Company's investments in partnership interests and other investments. | |
(5) | Reflects tax impacts of the adjustments described above and discrete tax adjustments related to stock-based compensation and other adjustments, | |
STRATEGIC EDUCATION, INC. | ||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||||
Q3 2022 AS ADJUSTED WITH CONSTANT CURRENCY | ||||||||||
(in thousands, except per share data) | ||||||||||
| As Adjusted |
| Constant |
| As Adjusted | |||||
Revenues | $ | 263,123 |
| $ | 4,496 |
| $ | 267,619 | ||
Total costs and expenses | $ | 250,915 |
| $ | 3,791 |
| $ | 254,706 | ||
Income from operations | $ | 12,208 |
| $ | 705 |
| $ | 12,913 | ||
Operating margin |
| 4.6% |
|
|
|
| 4.8% | |||
Income before income taxes | $ | 11,907 |
| $ | 708 |
| $ | 12,615 | ||
Net income | $ | 7,976 |
| $ | 474 |
| $ | 8,450 | ||
|
|
|
|
|
| |||||
Earnings per share: |
|
|
|
| ||||||
Diluted | $ | 0.33 |
|
|
| $ | 0.35 | |||
Weighted average shares outstanding: |
|
|
|
| ||||||
Diluted |
| 23,902 |
|
|
|
| 23,902 |
| (1) | Reflects an adjustment to translate foreign currency results for the three months | |
STRATEGIC EDUCATION, INC. | |||||||||||
UNAUDITED NON-GAAP SEGMENT REPORTING | |||||||||||
(in thousands) | |||||||||||
| For the three months ended |
| For the nine months ended | ||||||||
|
| 2021 |
|
| 2022 |
|
| 2021 |
|
| 2022 |
Revenues: |
|
|
|
|
|
|
| ||||
U.S. Higher Education | $ | 191,893 |
| $ | 185,499 |
| $ | 630,647 |
| $ | 571,291 |
Australia/New Zealand |
| 65,224 |
|
| 61,177 |
|
| 190,549 |
|
| 177,232 |
Education Technology Services |
| 12,961 |
|
| 16,447 |
|
| 38,391 |
|
| 47,019 |
Consolidated revenues |
| 270,078 |
|
| 263,123 |
|
| 859,587 |
|
| 795,542 |
|
|
|
|
|
|
|
| ||||
Adjustments to consolidated revenues: |
|
|
|
|
|
|
| ||||
U.S. Higher Education |
| — |
|
| — |
|
| — |
|
| — |
Australia/New Zealand (1) |
| — |
|
| — |
|
| 3,646 |
|
| — |
Education Technology Services |
| — |
|
| — |
|
| — |
|
| — |
Total adjustments to consolidated revenues |
| — |
|
| — |
|
| 3,646 |
|
| — |
|
|
|
|
|
|
|
| ||||
Adjusted revenues by segment: |
|
|
|
|
|
|
| ||||
U.S. Higher Education |
| 191,893 |
|
| 185,499 |
|
| 630,647 |
|
| 571,291 |
Australia/New Zealand |
| 65,224 |
|
| 61,177 |
|
| 194,195 |
|
| 177,232 |
Education Technology Services |
| 12,961 |
|
| 16,447 |
|
| 38,391 |
|
| 47,019 |
Adjusted consolidated revenues | $ | 270,078 |
| $ | 263,123 |
| $ | 863,233 |
| $ | 795,542 |
|
|
|
|
|
|
|
| ||||
Income (loss) from operations: |
|
|
|
|
|
|
| ||||
U.S. Higher Education | $ | 5,168 |
| $ | (1,948) |
| $ | 84,981 |
| $ | 25,386 |
Australia/New Zealand |
| 10,364 |
|
| 8,934 |
|
| 23,016 |
|
| 20,506 |
Education Technology Services |
| 5,181 |
|
| 5,222 |
|
| 16,242 |
|
| 15,237 |
Amortization of intangible assets |
| (8,932) |
|
| (3,522) |
|
| (47,731) |
|
| (10,954) |
Merger and integration costs |
| (1,111) |
|
| (269) |
|
| (4,060) |
|
| (933) |
Restructuring costs |
| (3,322) |
|
| (610) |
|
| (26,400) |
|
| (6,129) |
Consolidated income from operations |
| 7,348 |
|
| 7,807 |
|
| 46,048 |
|
| 43,113 |
|
|
|
|
|
|
|
| ||||
Adjustments to consolidated income from operations: |
|
|
|
|
|
|
| ||||
Australia/New Zealand (1) |
| — |
|
| — |
|
| 3,646 |
|
| — |
Amortization of intangible assets |
| 8,932 |
|
| 3,522 |
|
| 47,731 |
|
| 10,954 |
Merger and integration costs |
| 1,111 |
|
| 269 |
|
| 4,060 |
|
| 933 |
Restructuring costs |
| 3,322 |
|
| 610 |
|
| 26,400 |
|
| 6,129 |
Total adjustments to consolidated income from operations |
| 13,365 |
|
| 4,401 |
|
| 81,837 |
|
| 18,016 |
|
|
|
|
|
|
|
| ||||
Adjusted income (loss) from operations by segment: |
|
|
|
|
|
|
| ||||
U.S. Higher Education |
| 5,168 |
|
| (1,948) |
|
| 84,981 |
|
| 25,386 |
Australia/New Zealand |
| 10,364 |
|
| 8,934 |
|
| 26,662 |
|
| 20,506 |
Education Technology Services |
| 5,181 |
|
| 5,222 |
|
| 16,242 |
|
| 15,237 |
Total adjusted income from operations | $ | 20,713 |
| $ | 12,208 |
| $ | 127,885 |
| $ | 61,129 |
| (1) | Adjustments to the Australia/New Zealand segment revenue and income from operations for the nine months ended | |
STRATEGIC EDUCATION, INC. | |||||
UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||
ADJUSTED EBITDA | |||||
(in thousands) | |||||
| For the three months ended | ||||
|
| 2021 |
|
| 2022 |
Net income | $ | 3,854 |
| $ | 6,092 |
Provision for income taxes |
| 1,646 |
|
| 1,453 |
Other loss |
| 1,848 |
|
| 262 |
Gain on sale of property and equipment |
| (681) |
|
| — |
Depreciation and amortization |
| 21,564 |
|
| 15,757 |
EBITDA (1) |
| 28,231 |
|
| 23,564 |
Stock-based compensation |
| 4,868 |
|
| 5,612 |
Merger and integration costs (2) |
| 1,111 |
|
| 269 |
Restructuring costs (3) |
| 3,404 |
|
| 510 |
Cloud computing amortization (4) |
| 1,019 |
|
| 1,644 |
Adjusted EBITDA (1) | $ | 38,633 |
| $ | 31,599 |
(1) | Denotes non-GAAP financial measures. Please see the information in the Non-GAAP Financial Measures section of this press release for more detail regarding these adjustments and management’s reasons for providing this information. | |
(2) | Reflects integration charges associated with the Company's merger with Capella Education Company and the Company’s acquisition of Torrens University and associated assets in Australia and New Zealand. | |
(3) | Reflects severance costs and right-of-use lease asset impairment charges associated with the Company’s restructuring. Includes $0.2 million of stock-based compensation benefit related to forfeitures of stock-based awards for the three months ended September 30, 2021. Excludes $0.7 million of gain on sale of property and equipment for the three months ended September 30, 2021 and $0.6 million and $0.1 million of depreciation and amortization expense for the three months ended September 30, 2021 and 2022, respectively. | |
(4) | Reflects amortization expense associated with deferred implementation costs incurred in cloud computing arrangements. |
View source version on businesswire.com:https://www.businesswire.com/news/home/20221103005401/en/
CONTACT: Terese Wilke
Director of Investor Relations
Strategic Education, Inc.
(612) 977-6331
terese.wilke@strategiced.com
KEYWORD: UNITED STATES NORTH AMERICA VIRGINIA
INDUSTRY KEYWORD: EDUCATION TECHNOLOGY SOFTWARE CONTINUING TRAINING UNIVERSITY
SOURCE: Strategic Education, Inc.
Copyright Business Wire 2022.
PUB: 11/03/2022 06:30 AM/DISC: 11/03/2022 06:32 AM
http://www.businesswire.com/news/home/20221103005401/en