Grand Canyon Education Inc (LOPE, Financial) announced its financial results for the third quarter ended September 30, 2023, on November 2, 2023. The company reported a net income of $35.7 million, an increase from $30 million in the same period last year. The diluted earnings per share were $1.19, up from $0.96 in Q3 2022.
Financial Performance
LOPE's service revenue for the third quarter of 2023 was $221.9 million, up from $208.7 million in the same period last year. The company's total costs and expenses for the quarter were $180.4 million, compared to $173.2 million in Q3 2022. The operating income for the quarter was $41.5 million, up from $35.5 million in the same period last year.
Liquidity and Capital Resources
The company's liquidity position, as measured by cash and cash equivalents and investments, decreased by $27.3 million between December 31, 2022, and September 30, 2023. This decrease was largely attributable to share repurchases and capital expenditures exceeding cash flows from operations during the nine months ended September 30, 2023. The company's unrestricted cash and cash equivalents and investments were $154.4 million and $181.7 million at September 30, 2023, and December 31, 2022, respectively.
Share Repurchase Plan
LOPE announced that on October 25, 2023, the company's Board of Directors increased the authorization under its existing stock repurchase program by $200 million. This reflects an aggregate authorization for share repurchases since the initiation of the program of $2,045 million. As of October 31, 2023, there remained $272.4 million available under the current share repurchase authorization, which includes the increased authorization of $200 million.
Outlook for 2023
For the full year 2023, the company's diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $6.6 million and losses on fixed asset disposals net of taxes of $0.5 million, which equates to a $0.24 impact on diluted EPS. Thus, as adjusted, Non-GAAP diluted income per share is expected to be between $6.98 and $7.01.
Conference Call
Grand Canyon Education Inc will discuss its third quarter 2023 results and full year 2023 outlook during a conference call scheduled for November 2, 2023, at 4:30 p.m. Eastern time (ET).
Explore the complete 8-K earnings release (here) from Grand Canyon Education Inc for further details.
