News Release

Grand Canyon Education, Inc. Reports Fourth Quarter 2023 Results

February 13, 2024 at 4:05 PM EST

PHOENIX, Feb. 13, 2024 /PRNewswire/ -- Grand Canyon Education, Inc. (NASDAQ: LOPE), ("GCE" or the "Company"), is a publicly traded education services company that currently provides services to 25 university partners.  GCE provides a full array of support services in the post-secondary education sector and has developed significant technological solutions, infrastructure and operational processes to provide superior services in these areas on a large scale.  GCE today announced financial results for the quarter ended December 31, 2023

For the three months ended December 31, 2023:

  • Service revenue for the three months ended December 31, 2023 was $278.3 million, an increase of $19.6 million, or 7.6%, as compared to service revenue of $258.7 million for the three months ended December 31, 2022. The increase year over year in service revenue was primarily due to an increase in GCU enrollments to 117,279 at December 31, 2023, an increase of 8.0% over enrollments at December 31, 2022 and an increase in revenue per student year over year. The increase in revenue per student between years is primarily due to the service revenue impact of the increased room, board and other ancillary revenues at GCU in the fourth quarter of 2023 as compared to the prior year period. In addition, service revenue per student for Accelerated Bachelor of Science in Nursing students at off-campus classroom and laboratory sites generates a significantly higher revenue per student than we earn under our agreement with GCU, as these agreements generally provide us with a higher revenue share percentage, the partners have higher tuition rates than GCU and the majority of their students take more credits on average per semester. The increase in revenue per student in the three months ended December 31, 2023 was negatively impacted by the timing of the Fall semester for the ground traditional campus. The Fall semester started one day earlier in 2023 than in 2022, which had the effect of shifting $1.2 million in service revenue from the fourth quarter of 2023 to the third quarter of 2023 in comparison to the prior year.
  • Partner enrollments totaled 121,250 at December 31, 2023 as compared to 112,955 at December 31, 2022. University partner enrollments at our off-campus classroom and laboratory sites were 4,481, a decrease of 3.3% over enrollments at December 31, 2022, which includes 510 and 320 GCU students at December 31, 2023 and 2022, respectively. We opened six new off-campus classroom and laboratory sites in the year ended December 31, 2022 and five sites in the year ended December 31, 2023 increasing the total number of these sites to 40 at December 31, 2023. Enrollments for GCU ground students were 25,209 at December 31, 2023 up from 24,943 at December 31, 2022. GCU online enrollments were 92,070 at December 31, 2023, up from 83,696 at December 31, 2022, an increase of 10.0% between years.
  • Operating income for the three months ended December 31, 2023 was $97.8 million, an increase of $7.1 million as compared to $90.7 million for the same period in 2022. The operating margin for each of the three months ended December 31, 2023 and 2022 was 35.1%. The fourth quarter operating margin was negatively impacted on a year over year basis by the timing difference between years in the start of the Fall semester for GCU's ground traditional campus.
  • Income tax expense for the three months ended December 31, 2023 was $20.1 million, a decrease of $0.9 million, or 4.4%, as compared to income tax expense of $21.0 million for the three months ended December 31, 2022. Our effective tax rate was 19.9% during the fourth quarter of 2023 compared to 22.8% during the fourth quarter of 2022. The decrease in our effective tax rate between periods was primarily driven by other discrete tax items recorded in the respective periods.
  • Net income increased 13.6% to $80.7 million for the fourth quarter of 2023, compared to $71.0 million for the same period in 2022. As adjusted net income was $82.5 million and $72.7 million for the fourth quarters of 2023 and 2022, respectively.
  • Diluted net income per share was $2.71 and $2.30 for the fourth quarters of 2023 and 2022, respectively. As adjusted diluted net income per share was $2.77 and $2.36 for the fourth quarters of 2023 and 2022, respectively.
  • Adjusted EBITDA increased 8.5% to $110.9 million for the fourth quarter of 2023, compared to $102.2 million for the same period in 2022.

For the year ended December 31, 2023:

  • Service revenue for the year ended December 31, 2023 was $960.9 million, an increase of $49.6 million, or 5.4%, as compared to service revenue of $911.3 million for the year ended December 31, 2022. The increase year over year in service revenue was primarily due to an increase in GCU enrollments to 117,279 at December 31, 2023, an increase of 8.0% over enrollments at December 31, 2022.
  • Operating income for the year ended December 31, 2023 was $249.3 million, an increase of $11.8 million as compared to $237.5 million for the same period in 2022. The operating margin for the year ended December 31, 2023 was 25.9%, compared to 26.1% for the same period in 2022.
  • Income tax expense for the year ended December 31, 2023 was $54.7 million, a decrease of $0.7 million, or 1.4%, as compared to income tax expense of $55.4 million for the year ended December 31, 2022. Our effective tax rate was 21.1% during the year ended December 31, 2023 compared to 23.1% during the year ended December 31, 2022. The decrease in our effective tax rate between periods is attributable to other discrete tax items recorded in the respective periods and higher excess tax benefits of $0.9 million compared to excess tax benefits of $0.1 million for the year ended December 31, 2022, partially offset by a lower contribution in lieu of state income taxes of $3.5 million in 2023 compared to $5.0 million in 2022.
  • Net income increased 11.0% to $205.0 million for the year ended December 31, 2023, compared to $184.7 million for the same period in 2022. As adjusted net income was $212.2 million and $192.1 million for the years ended December 31, 2023 and 2022, respectively.
  • Diluted net income per share was $6.80 and $5.73 for the years ended December 31, 2023 and 2022, respectively. As adjusted diluted net income per share was $7.04 and $5.96 for the years ended December 31, 2023 and 2022, respectively.
  • Adjusted EBITDA increased 3.8% to $302.3 million for the year ended December 31, 2023, compared to $291.3 million for the same period in 2022.

Liquidity and Capital Resources

Our liquidity position, as measured by cash and cash equivalents and investments increased by $62.8 million between December 31, 2022 and December 31, 2023, which was largely attributable to cash flows from operations exceeding share repurchases, investment purchases, net of proceeds and capital expenditures during the year ended December 31, 2023.  Our unrestricted cash and cash equivalents and investments were $244.5 million and $181.7 million at December 31, 2023 and December 31, 2022, respectively.

2024 Outlook

Q1 2024:

  • Service revenue of between $271.5 million and $273.0 million;
  • Operating margin of between 29.8% and 30.0%;
  • Effective tax rate of 23.4%;
  • Diluted EPS of between $2.15 and $2.18; and
  • 29.7 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $1.6 million, which equates to a $0.05 impact on diluted EPS. Thus, as adjusted, Non-GAAP diluted income per share of between $2.20 and $2.23

Q2 2024:

  • Service revenue of between $221.0 million and $224.0 million;
  • Operating margin of between 16.1% and 17.0%;
  • Effective tax rate of 24.9%;
  • Diluted EPS of between $0.98 and $1.04; and
  • 29.4 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $1.6 million, which equates to a $0.05 impact on diluted EPS. Thus, as adjusted, Non-GAAP diluted income per share of between $1.03 and $1.09.

Q3 2024:

  • Service revenue of between $236.5 million and $244.0 million;
  • Operating margin of between 20.4% and 22.2%;
  • Effective tax rate of 24.9%;
  • Diluted EPS of between $1.30 and $1.46; and
  • 29.1 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $1.6 million, which equates to a $0.05 impact on diluted EPS. Thus, as adjusted, Non-GAAP diluted income per share of between $1.35 and $1.51

Q4 2024:

  • Service revenue of between $287.0 million and $299.0 million;
  • Operating margin of between 34.9% and 37.0%;
  • Effective tax rate of 22.8%;
  • Diluted EPS of between $2.75 and $3.03; and
  • 28.9 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $1.6 million, which equates to a $0.06 impact on diluted EPS. Thus, as adjusted, Non-GAAP diluted income per share of between $2.81 and $3.09

Full Year 2024:

  • Service revenue of between $1,016.0 million and $1,040.0 million;
  • Operating margin of between 26.1% and 27.4%;
  • Effective tax rate of 23.7%;
  • Diluted EPS between $7.17 and $7.69; and
  • 29.3 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $6.5 million, which equates to a $0.22 impact on diluted EPS. Thus, as adjusted, Non-GAAP diluted income per share of between $7.39 and $7.91.

Forward-Looking Statements

This news release contains "forward-looking statements" which include information relating to future events, future financial performance, strategies expectations, competitive environment, regulation, and availability of resources.  These forward-looking statements include, without limitation, statements regarding: proposed new programs; whether regulatory, economic, or business developments or other matters may or may not have a material adverse effect on our financial position, results of operations, or liquidity; projections, predictions, expectations, estimates, and forecasts as to our business, financial and operating results, and future economic performance; and management's goals and objectives and other similar expressions concerning matters that are not historical facts.  Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar expressions, the negative of these expressions, as well as statements in future tense, identify forward-looking statements.

Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved.  Forward-looking statements are based on information available at the time those statements are made or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements.  Important factors that could cause our actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements include, but are not limited to: legal and regulatory actions taken against our university partners that impact their businesses and that directly or indirectly reduce the service revenue we can earn under our master services agreements; the occurrence of any event, change or other circumstance that could give rise to the termination of any of the key university partner agreements; our ability to properly manage risks and challenges associated with strategic initiatives, including potential acquisitions or divestitures of, or investments in, new businesses, acquisitions of new properties and new university partners, and expansion of services provided to our existing university partners; our failure to comply with the extensive regulatory framework applicable to us either directly as a third-party service provider or indirectly through our university partners, including Title IV of the Higher Education Act and the regulations thereunder, state laws and regulatory requirements, and accrediting commission requirements; the harm to our business, results of operations, and financial condition, and harm to our university partners resulting from epidemics, pandemics, or public health crises; the ability of our university partners' students to obtain federal Title IV funds, state financial aid, and private financing; potential damage to our reputation or other adverse effects as a result of negative publicity in the media, in the industry or in connection with governmental reports or investigations or otherwise, affecting us or other companies in the education services sector; risks associated with changes in applicable federal and state laws and regulations and accrediting commission standards, including pending rulemaking by the United States Department of Education applicable to us directly or indirectly through our university partners; competition from other education service companies in our geographic region and market sector, including competition for students, qualified executives and other personnel; our expected tax payments and tax rate; our ability to hire and train new, and develop and train existing employees; the pace of growth of our university partners' enrollment and its effect on the pace of our own growth; fluctuations in our revenues due to seasonality; our ability to, on behalf of our university partners, convert prospective students to enrolled students and to retain active students to graduation; our success in updating and expanding the content of existing programs and developing new programs in a cost-effective manner or on a timely basis for our university partners; risks associated with the competitive environment for marketing the programs of our university partners; failure on our part to keep up with advances in technology that could enhance the experience for our university partners' students; our ability to manage future growth effectively; the impact of any natural disasters or public health emergencies; general adverse economic conditions or other developments that affect the job prospects of our university partners' students; and other factors discussed in reports on file with the Securities and Exchange Commission, including as set forth in Part I, Item 1A of our Annual Report on Form 10-K for period ended December 31, 2023, as updated in our subsequent reports filed with the Securities and Exchange Commission on Form 10-Q or Form 8-K.

Forward-looking statements speak only as of the date the statements are made.  You should not put undue reliance on any forward-looking statements.  We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws.  If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

Conference Call

Grand Canyon Education, Inc. will discuss its fourth quarter 2023 results and full year 2024 outlook during a conference call scheduled for today, February 13, 2024 at 4:30 p.m. Eastern time (ET).  

Live Conference Dial-In:

Those interested in participating in the question-and-answer session should follow the conference dial-in instructions below.  Participants may register for the call here to receive the dial-in numbers and unique PIN to access the call seamlessly. Please dial in at least ten minutes prior to the start of the call.  Journalists are invited to listen only. 

Webcast and Replay:

Investors, journalists and the general public may access a live webcast of this event at: Q4 2023 Grand Canyon Education Inc. Earnings Conference CallA webcast replay will be available approximately two hours following the conclusion of the call at the same link.

About Grand Canyon Education, Inc.

Grand Canyon Education, Inc. ("GCE"), incorporated in 2008, is a publicly traded education services company that currently provides services to 25 university partners.  GCE is uniquely positioned in the education services industry in that its leadership has over 30 years of proven expertise in providing a full array of support services in the post-secondary education sector and has developed significant technological solutions, infrastructure and operational processes to provide superior services in these areas on a large scale.  GCE provides services that support students, faculty and staff of partner institutions such as marketing, strategic enrollment management, counseling services, financial services, technology, technical support, compliance, human resources, classroom operations, content development, faculty recruitment and training, among others.  For more information about GCE visit the Company's website at www.gce.com.

Grand Canyon Education, Inc., 2600 W. Camelback Road, Phoenix, AZ 85017, www.gce.com.

 

GRAND CANYON EDUCATION, INC.

Consolidated Income Statements

(Unaudited)

 
   

Three Months Ended

 

Year Ended

   

December 31

 

December 31

   

2023

 

2022

 

2023

 

2022

(In thousands, except per share data)

                       

Service revenue

 

$

278,284

 

$

258,700

 

$

960,899

 

$

911,306

Costs and expenses:

                       

Technology and academic services

   

39,227

   

38,357

   

154,870

   

150,493

Counseling services and support

   

82,754

   

72,540

   

302,319

   

273,313

Marketing and communication

   

46,003

   

44,853

   

202,800

   

196,090

General and administrative

   

10,397

   

10,168

   

43,235

   

45,491

Amortization of intangible assets

   

2,104

   

2,104

   

8,419

   

8,419

Total costs and expenses

   

180,485

   

168,022

   

711,643

   

673,806

Operating income

   

97,799

   

90,678

   

249,256

   

237,500

Interest expense

   

(6)

   

3

   

(33)

   

(2)

Investment interest and other

   

2,970

   

1,327

   

10,452

   

2,621

Income before income taxes

   

100,763

   

92,008

   

259,675

   

240,119

Income tax expense

   

20,054

   

20,981

   

54,690

   

55,444

Net income

 

$

80,709

 

$

71,027

 

$

204,985

 

$

184,675

Earnings per share:

                       

Basic income per share

 

$

2.73

 

$

2.32

 

$

6.83

 

$

5.75

Diluted income per share

 

$

2.71

 

$

2.30

 

$

6.80

 

$

5.73

Basic weighted average shares outstanding

   

29,555

   

30,669

   

29,991

   

32,131

Diluted weighted average shares outstanding

   

29,761

   

30,835

   

30,147

   

32,237

 

GRAND CANYON EDUCATION, INC.

Consolidated Balance Sheets

 
   

As of December 31

 

As of December 31,

(In thousands, except par value)

 

2023

 

2022

ASSETS:

 

(Unaudited)

     

Current assets

           

Cash and cash equivalents

 

$

146,475

 

$

120,409

Investments

   

98,031

   

61,295

Accounts receivable, net

   

78,811

   

77,413

Income taxes receivable

   

1,316

   

2,788

Other current assets

   

12,889

   

11,368

Total current assets

   

337,522

   

273,273

Property and equipment, net

   

169,699

   

147,504

Right-of-use assets

   

92,454

   

72,719

Amortizable intangible assets, net

   

168,381

   

176,800

Goodwill

   

160,766

   

160,766

Other assets

   

1,641

   

1,687

Total assets

 

$

930,463

 

$

832,749

LIABILITIES AND STOCKHOLDERS' EQUITY:

           

Current liabilities

           

Accounts payable

 

$

17,676

 

$

20,006

Accrued compensation and benefits

   

31,358

   

36,412

Accrued liabilities

   

26,725

   

22,473

Income taxes payable

   

10,250

   

12,167

Current portion of lease liability

   

11,024

   

8,648

Total current liabilities

   

97,033

   

99,706

Deferred income taxes, noncurrent

   

26,749

   

26,195

Other long-term liabilities

   

410

   

436

Lease liability, less current portion

   

88,257

   

68,793

Total liabilities

   

212,449

   

195,130

Commitments and contingencies

           

Stockholders' equity

           

Preferred stock, $0.01 par value, 10,000 shares authorized; 0 shares issued and
outstanding at December 31, 2022 and December 31, 2022

   

   

Common stock, $0.01 par value, 100,000 shares authorized; 53,970 and 53,830 shares
issued and 29,953 and 31,058 shares outstanding at December 31, 2023 and December
31, 2022, respectively

   

540

   

538

Treasury stock, at cost, 24,017 and 22,772 shares of common stock at December 31, 2023
and December 31, 2022, respectively

   

(1,849,693)

   

(1,711,423)

Additional paid-in capital

   

322,512

   

309,310

Accumulated other comprehensive loss

   

(57)

   

(533)

Retained earnings

   

2,244,712

   

2,039,727

Total stockholders' equity

   

718,014

   

637,619

Total liabilities and stockholders' equity

 

$

930,463

 

$

832,749

 

GRAND CANYON EDUCATION, INC.

Consolidated Statements of Cash Flows

(Unaudited)

 
   

Year Ended

   

December 31

(In thousands)

 

2023

 

2022

             

Cash flows provided by operating activities:

           

Net income

 

$

204,985

 

$

184,675

Adjustments to reconcile net income to net cash provided by operating activities:

           

Share-based compensation

   

13,204

   

12,642

Depreciation and amortization

   

23,554

   

22,758

Amortization of intangible assets

   

8,419

   

8,419

Deferred income taxes

   

402

   

401

Other, including fixed asset disposals

   

(442)

   

853

Changes in assets and liabilities:

           

   Accounts receivable from university partners

   

(1,398)

   

(7,350)

   Other assets

   

(1,639)

   

(2,604)

   Right-of-use assets and lease liabilities

   

2,105

   

1,193

   Accounts payable

   

(3,109)

   

(3,894)

   Accrued liabilities

   

(1,974)

   

(1,023)

   Income taxes receivable/payable

   

(445)

   

4,759

   Deferred revenue

   

   

(10)

Net cash provided by operating activities

   

243,662

   

220,819

Cash flows used in investing activities:

           

Capital expenditures

   

(44,537)

   

(35,232)

Additions of amortizable content

   

(897)

   

(397)

Purchases of investments

   

(98,853)

   

(171,549)

Proceeds from sale or maturity of investments

   

63,815

   

110,039

Net cash used in investing activities

   

(80,472)

   

(97,139)

Cash flows used in financing activities:

           

Repurchase of common shares and shares withheld in lieu of income taxes

   

(137,124)

   

(604,212)

Net cash used in financing activities

   

(137,124)

   

(604,212)

Net increase (decrease) in cash and cash equivalents and restricted cash

   

26,066

   

(480,532)

Cash and cash equivalents and restricted cash, beginning of period

   

120,409

   

600,941

Cash and cash equivalents and restricted cash, end of period

 

$

146,475

 

$

120,409

Supplemental disclosure of cash flow information

           

Cash paid for interest

 

$

33

 

$

2

Cash paid for income taxes

 

$

59,026

 

$

48,573

Supplemental disclosure of non-cash investing and financing activities

           

Purchases of property and equipment included in accounts payable

 

$

1,909

 

$

1,131

ROU Asset and Liability recognition

 

$

19,735

 

$

15,067

Excise tax on treasury stock repurchases

 

$

1,146

 

$

 

GRAND CANYON EDUCATION, INC.

Adjusted EBITDA  (Non-GAAP Financial Measure)

Adjusted EBITDA is defined as net income plus interest expense, less interest income and other gain (loss) recognized on investments, plus income tax expense, and plus depreciation and amortization (EBITDA), as adjusted for (i)  contributions to private Arizona school tuition organizations in lieu of the payment of state income taxes; (ii) share-based compensation, and (iii) unusual charges or gains, such as litigation and regulatory reserves, impairment charges and asset write-offs, and exit or lease termination costs.  We present Adjusted EBITDA because we consider it to be an important supplemental measure of our operating performance.  We also make certain compensation decisions based, in part, on our operating performance, as measured by Adjusted EBITDA.  All of the adjustments made in our calculation of Adjusted EBITDA are adjustments to items that management does not consider to be reflective of our core operating performance.  Management considers our core operating performance to be that which can be affected by our managers in any particular period through their management of the resources that affect our underlying revenue and profit generating operations during that period and does not consider the items for which we make adjustments (as listed above) to be reflective of our core performance.

We believe Adjusted EBITDA allows us to compare our current operating results with corresponding historical periods and with the operational performance of other companies in our industry because it does not give effect to potential differences caused by variations in capital structures (affecting relative interest expense, including the impact of write-offs of deferred financing costs when companies refinance their indebtedness), tax positions (such as the impact on periods or companies of changes in effective tax rates or net operating losses), the book amortization of intangibles (affecting relative amortization expense), and other items that we do not consider reflective of underlying operating performance.  We also present Adjusted EBITDA because we believe it is frequently used by securities analysts, investors, and other interested parties as a measure of performance.

In evaluating Adjusted EBITDA, investors should be aware that in the future we may incur expenses similar to the adjustments described above.  Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by expenses that are unusual, non-routine, or non-recurring.  Adjusted EBITDA has limitations as an analytical tool in that, among other things it does not reflect:

  • cash expenditures for capital expenditures or contractual commitments;
  • changes in, or cash requirements for, our working capital requirements;
  • interest expense, or the cash required to replace assets that are being depreciated or amortized; and
  • the impact on our reported results of earnings or charges resulting from the items for which we make adjustments to our EBITDA, as described above and set forth in the table below.

In addition, other companies, including other companies in our industry, may calculate these measures differently than we do, limiting the usefulness of Adjusted EBITDA as a comparative measure.  Because of these limitations, Adjusted EBITDA should not be considered as a substitute for net income, operating income, or any other performance measure derived in accordance with and reported under GAAP, or as an alternative to cash flow from operating activities or as a measure of our liquidity.  We compensate for these limitations by relying primarily on our GAAP results and only use Adjusted EBITDA as a supplemental performance measure.

The following table provides a reconciliation of net income to Adjusted EBITDA, which is a non-GAAP measure for the periods indicated:

                         
   

Three Months Ended

 

Year Ended

   

December 31

 

December 31

   

2023

 

2022

 

2023

 

2022

   

(Unaudited, in thousands)

   

(Unaudited, in thousands)

Net income

 

$

80,709

 

$

71,027

 

$

204,985

 

$

184,675

Plus: interest expense

   

6

   

(3)

   

33

   

2

Less: investment interest and other

   

(2,970)

   

(1,327)

   

(10,452)

   

(2,621)

Plus: income tax expense

   

20,054

   

20,981

   

54,690

   

55,444

Plus: amortization of intangible assets

   

2,104

   

2,104

   

8,419

   

8,419

Plus: depreciation and amortization

   

6,560

   

5,735

   

23,554

   

22,758

EBITDA

   

106,463

   

98,517

   

281,229

   

268,677

Plus: contributions in lieu of state income taxes

   

   

   

3,500

   

5,000

Plus: loss on fixed asset disposal

   

166

   

94

   

741

   

1,249

Plus: litigation and regulatory reserves

   

1,057

   

452

   

3,628

   

3,768

Plus: share-based compensation

   

3,246

   

3,158

   

13,204

   

12,642

Adjusted EBITDA

 

$

110,932

 

$

102,221

 

$

302,302

 

$

291,336

Non-GAAP Net Income and Non-GAAP Diluted Income Per Share

The Company believes the presentation of non-GAAP net income and non-GAAP diluted income per share information that excludes amortization of intangible assets and loss on disposal of fixed assets allows investors to develop a more meaningful understanding of the Company's performance over time.  Accordingly, for the three-months and years ended December 31, 2023 and 2022, the table below provides reconciliations of these non-GAAP items to GAAP net income and GAAP diluted income per share, respectively:

                         
   

Three Months Ended

   

Year Ended

   

December 31

   

December 31

   

2023

 

2022

 

2023

 

2022

   

(Unaudited, in thousands except per share data)

GAAP Net income

 

$

80,709

 

$

71,027

 

$

204,985

 

$

184,675

Amortization of intangible assets

   

2,104

   

2,104

   

8,419

   

8,419

Loss on disposal of fixed assets

   

166

   

94

   

741

   

1,249

Income tax effects of adjustments(1)

   

(452)

   

(501)

   

(1,929)

   

(2,232)

As Adjusted, Non-GAAP Net income

 

$

82,527

 

$

72,724

 

$

212,216

 

$

192,111

                         

GAAP Diluted income per share

 

$

2.71

 

$

2.30

 

$

6.80

 

$

5.73

Amortization of intangible assets (2)

   

0.06

   

0.06

   

0.22

   

0.20

Loss on disposal of fixed assets (3)

   

0.00

   

0.00

   

0.02

   

0.03

As Adjusted, Non-GAAP Diluted income per share

 

$

2.77

 

$

2.36

 

$

7.04

 

$

5.96

                     

(1)

The income tax effects of adjustments are based on the effective income tax rate applicable to adjusted (non-GAAP) results. 

   

(2)

The amortization of acquired intangible assets per diluted share is net of an income tax benefit of $0.01 and $0.02 for the three months ended December 31, 2023 and 2022, respectively, and net of an income tax benefit of $0.06 for each of the years ended December 31, 2023 and 2022.

   

(3)

The loss on disposal of fixed assets per diluted share is net of an income tax benefit of $0.00 for each of the three months ended December 31, 2023 and 2022, and net of an income tax benefit of $0.01 and $0.01 for the years ended December 31, 2023 and 2022, respectively.

Investor Relations Contact:
Daniel E. Bachus
Chief Financial Officer
Grand Canyon Education, Inc.
602-639-6648
[email protected] 

Cision View original content:https://www.prnewswire.com/news-releases/grand-canyon-education-inc-reports-fourth-quarter-2023-results-302061042.html

SOURCE Grand Canyon Education