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Strategic Education, Inc. Reports First Quarter 2024 Results
"As we begin a new year, we are pleased with strength across our business and proud of the organization's ongoing commitment to the success of our students," said Karl McDonnell, Chief Executive Officer of Strategic Education. "The U.S. Higher Education segment delivered another quarter of strong growth driven by employer affiliated enrollment; the Education Technology Services segment continued to see strength, including from Sophia subscriptions; and the Australia/New Zealand segment returned to total enrollment growth."
STRATEGIC EDUCATION CONSOLIDATED RESULTS
Three Months Ended March 31
Revenue increased 13.1% to $290.3 million compared to $256.6 million for the same period in 2023. Revenue on a constant currency basis, which is a non-GAAP financial measure, increased 13.9% to $292.3 million in the first quarter of 2024 compared to $256.6 million for the same period in 2023. For more details on non-GAAP financial measures used in this press release, refer to the information in the Non-GAAP Financial Measures section of this press release. Income from operations was $41.4 million or 14.2% of revenue, compared to loss from operations of $1.3 million for the same period in 2023. Adjusted income from operations, which is a non-GAAP financial measure, was $35.8 million compared to $8.2 million for the same period in 2023. The adjusted operating income margin, which is a non-GAAP financial measure, was 12.4% compared to 3.2% for the same period in 2023. Net income was $29.7 million compared to net loss of $2.0 million for the same period in 2023. Adjusted net income, which is a non-GAAP financial measure, was $26.7 million compared to $5.8 million for the same period in 2023. Adjusted EBITDA, which is a non-GAAP financial measure, was $54.3 million compared to $27.2 million for the same period in 2023. Diluted earnings per share was $1.23 compared to diluted loss per share of $0.09 for the same period in 2023. Adjusted diluted earnings per share, which is a non-GAAP financial measure, increased to $1.11 from $0.24 for the same period in 2023. Adjusted diluted earnings per share on a constant currency basis, which is a non-GAAP financial measure, was $1.11. Diluted weighted average shares outstanding increased slightly to 24,060,000 from 24,023,000 adjusted diluted weighted average shares outstanding, which is a non-GAAP financial measure, for the same period in 2023.
U.S. Higher Education Segment Highlights
The U.S. Higher Education segment (USHE) is comprised of Capella University and Strayer University. For the first quarter, student enrollment within USHE increased 9.8% to 87,731 compared to 79,935 for the same period in 2023. For the first quarter, FlexPath enrollment was 23% of USHE enrollment compared to 21% for the same period in 2023. Revenue increased 11.3% to $219.2 million in the first quarter of 2024 compared to $196.9 million for the same period in 2023, driven by higher first quarter enrollment. Income from operations was $28.0 million in the first quarter of 2024 compared to $9.6 million for the same period in 2023. The operating income margin was 12.8%, compared to 4.9% for the same period in 2023.
Education Technology Services Segment Highlights
The Education Technology Services segment (ETS) is comprised primarily of Enterprise Partnerships, Sophia Learning, and Workforce Edge. For the first quarter, employer affiliated enrollment was 29.2% of USHE enrollment compared to 26.3% for the same period in 2023. For the first quarter, average total subscribers at Sophia Learning increased approximately 42% from the same period in 2023. As of March 31, 2024, Workforce Edge had a total of 68 corporate agreements, collectively employing approximately 1,470,000 employees. Revenue increased 29.8% to $23.6 million in the first quarter of 2024 compared to $18.2 million for the same period in 2023, driven by growth in Sophia Learning subscriptions and employer affiliated enrollment. Income from operations was $10.1 million in the first quarter of 2024 compared to $5.8 million for the same period in 2023. The operating income margin was 42.7%, compared to 31.8% for the same period in 2023.
Australia/New Zealand Segment Highlights
The Australia/New Zealand segment (ANZ) is comprised of Torrens University, Think Education, and Media Design School. For the first quarter, student enrollment within ANZ increased 4.8% to 20,197 compared to 19,269 for the same period in 2023. Revenue increased 14.1% to $47.4 million in the first quarter of 2024 compared to $41.5 million for the same period in 2023, driven by higher first quarter enrollment and revenue-per-student. Revenue on a constant currency basis, which is a non-GAAP financial measure, increased 19.1% to $49.4 million in the first quarter of 2024 compared to $41.5 million for the same period in 2023, driven by higher first quarter enrollment and revenue-per-student. Loss from operations was $2.3 million in the first quarter of 2024 compared to loss from operations of $7.2 million for the same period in 2023. Loss from operations on a constant currency basis, which is a non-GAAP financial measure, was $2.2 million in the first quarter of 2024 compared to loss from operations of $7.2 million for the same period in 2023.
Balance Sheet and Cash Flow
At March 31, 2024, Strategic Education had cash, cash equivalents, and marketable securities of $253.6 million, and $61.3 million outstanding under its revolving credit facility. For the first three months of 2024, cash provided by operations was $77.6 million compared to $35.2 million for the same period in 2023. Capital expenditures for the first three months of 2024 were $9.2 million compared to $8.3 million for the same period in 2023.
For the first quarter of 2024, consolidated bad debt expense as a percentage of revenue was 4.2%, compared to 3.8% of revenue for the same period in 2023.
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 June 3, 2024 to shareholders of record as of May 24, 2024.
CONFERENCE CALL WITH MANAGEMENT
Strategic Education will host a conference call to discuss its first quarter 2024 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 Capella University and Strayer 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:
the pace of student enrollment; Strategic Education's continued compliance with Title IV of the Higher Education Act, and the regulations thereunder, as well as other federal laws and regulations, institutional accreditation standards and state regulatory requirements; rulemaking and other action by the Department of Education or other governmental entities, including without limitation action related to borrower defense to repayment applications, gainful employment, 90/10, and increased focus by the U.S. Congress on for-profit education institutions; competitive factors; risks associated with the opening of new campuses; risks associated with the offering of new educational programs and adapting to other changes; risks associated with the acquisition of existing educational institutions, including Strategic Education's acquisition of Torrens University and associated assets in Australia and New Zealand; the risk that the benefits of the acquisition of Torrens University and associated assets in Australia and New Zealand may not be fully realized or may take longer to realize than expected; the risk that the acquisition of Torrens University and associated assets in Australia and New Zealand may not advance Strategic Education's business strategy and growth strategy; risks relating to the timing of regulatory approvals; Strategic Education's ability to implement its growth strategy; the risk that the combined company may experience difficulty integrating employees or operations; risks associated with the ability of Strategic Education's students to finance their education in a timely manner; general economic and market conditions; and additional factors described in Strategic Education's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
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 (LOSS)
(in thousands, except per share data)
For the three months ended March 31,
-------------------------------------------------------------------------------------------------------------------------
2023 2024
-------------------- ------- -------------------- -------------------- -------------- --------------------
Revenues $ 256,606 $ 290,250
-------------------- ------- -------------------- -------------------- -------------- --------------------
Costs and expenses:
152,938 157,709
Instructional and support costs
95,465 96,695
General and administration
3,532 --
Amortization of intangible assets
425 --
Merger and integration costs
5,595 (5,510 )
Restructuring costs
-------------------- ------- -------------------- -------------------- -------------- --------------------
Total costs and expenses 257,955 248,894
-------------------- ------- -------------------- -------------------- -------------- --------------------
(1,349 ) 41,356
Income (loss) from operations
Other income 398 1,794
-------------------- ------- -------------------- -------------------- -------------- --------------------
(951 ) 43,150
Income (loss) before income taxes
Provision for income taxes 1,077 13,448
-------------------- ------- -------------------- -------------------- -------------- --------------------
$ (2,028 ) $ 29,702
Net income (loss)
==================== ======= ==================== ==================== ============== ====================
Earnings (loss) per share:
$ (0.09 ) $ 1.27
Basic
$ (0.09 ) $ 1.23
Diluted
Weighted average shares outstanding:
23,430 23,391
Basic
STRATEGIC EDUCATION, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
December 31, March 31,
2023 2024
------------------------------------------------- ------------------------------------------------------
ASSETS
Current assets:
$ 168,481 $ 222,116
Cash and cash equivalents
39,728 31,448
Marketable securities
76,102 83,082
Tuition receivable, net
44,758 53,801
Other current assets
-------------------- --------- -------------------- -------------------- -------------- --------------------
329,069 390,447
Total current assets
Property and equipment, net 118,529 116,419
Right-of-use lease assets 119,202 114,653
Marketable securities, non-current 483 --
Intangible assets, net 251,623 248,855
Goodwill 1,251,888 1,229,882
Other assets 54,419 54,980
-------------------- --------- -------------------- -------------------- -------------- --------------------
$ 2,125,213 $ 2,155,236
Total assets
==================== ========= ==================== ==================== ============== ====================
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
$ 90,888 $ 99,245
Accounts payable and accrued expenses
2,200 10,659
Income taxes payable
92,341 128,503
Contract liabilities
24,190 23,316
Lease liabilities
-------------------- --------- -------------------- -------------------- -------------- --------------------
209,619 261,723
Total current liabilities
Long-term debt 61,400 61,256
Deferred income tax liabilities 28,338 30,439
Lease liabilities, non-current 127,735 116,350
Other long-term liabilities 45,603 42,885
-------------------- --------- -------------------- -------------------- -------------- --------------------
472,695 512,653
Total liabilities
==================== ========= ==================== ==================== ============== ====================
Commitments and contingencies
Stockholders' equity:
244 246
Common stock, par value $0.01; 32,000,000 shares authorized; 24,406,816 and 24,607,939 shares issued and outstanding at December 31, 2023 and March 31, 2024, respectively
1,517,650 1,519,291
Additional paid-in capital
(34,247 ) (60,754 )
Accumulated other comprehensive loss
168,871 183,800
Retained earnings
-------------------- --------- -------------------- -------------------- -------------- --------------------
1,652,518 1,642,583
Total stockholders' equity
-------------------- --------- -------------------- -------------------- -------------- --------------------
STRATEGIC EDUCATION, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the three months ended March 31,
--------------------------------------------------------------------------------------------------------------------------------
2023 2024
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Cash flows from operating activities:
$ (2,028 ) $ 29,702
Net income (loss)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
-- (6,166 )
Gain on early termination of operating leases
138 140
Amortization of deferred financing costs
3 (27 )
Amortization of investment discount/premium
14,651 11,069
Depreciation and amortization
1,872 2,406
Deferred income taxes
5,632 5,329
Stock-based compensation
3,649 --
Impairment of right-of-use lease assets
Changes in assets and liabilities:
(8,892 ) (7,183 )
Tuition receivable, net
(10,891 ) (7,950 )
Other assets
1,831 6,218
Accounts payable and accrued expenses
(4,613 ) 8,586
Income taxes payable and income taxes receivable
34,035 36,035
Contract liabilities
(145 ) (529 )
Other liabilities
-------------------- -------------- -------------------- -------------------- -------------- --------------------
35,242 77,630
Net cash provided by operating activities
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Cash flows from investing activities:
(8,270 ) (9,188 )
Purchases of property and equipment
(17,103 ) --
Purchases of marketable securities
1,960 8,220
Proceeds from marketable securities
457 --
Proceeds from other investments
(118 ) (34 )
Other investments
(211 ) --
Cash paid for acquisition, net of cash acquired
-------------------- -------------- -------------------- -------------------- -------------- --------------------
(23,285 ) (1,002 )
Net cash used in investing activities
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Cash flows from financing activities:
(14,755 ) (14,734 )
Common dividends paid
(4,964 ) (3,686 )
Net payments for stock awards
-------------------- -------------- -------------------- -------------------- -------------- --------------------
(19,719 ) (18,420 )
Net cash used in financing activities
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (887 ) (2,305 )
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Net increase (decrease) in cash, cash equivalents, and restricted cash (8,649 ) 55,903
Cash, cash equivalents, and restricted cash -- beginning of period 227,454 181,925
-------------------- -------------- -------------------- -------------------- -------------- --------------------
STRATEGIC EDUCATION, INC.
UNAUDITED SEGMENT REPORTING
(in thousands)
For the three months ended March 31,
-------------------------------------------------------------------------------------------------------------------------
2023 2024
-------------------- ------- -------------------- -------------------- -------------- --------------------
Revenues:
$ 196,895 $ 219,236
U.S. Higher Education
41,503 47,375
Australia/New Zealand
18,208 23,639
Education Technology Services
-------------------- ------- -------------------- -------------------- -------------- --------------------
Consolidated revenues $ 256,606 $ 290,250
==================== ======= ==================== ==================== ============== ====================
Income (loss) from operations:
$ 9,589 $ 28,013
U.S. Higher Education
(7,182 ) (2,255 )
Australia/New Zealand
5,796 10,088
Education Technology Services
(3,532 ) --
Amortization of intangible assets
(425 ) --
Merger and integration costs
(5,595 ) 5,510
Restructuring costs
-------------------- ------- -------------------- -------------------- -------------- --------------------
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 (loss) from operations, operating margin, income (loss) before income taxes, net income (loss), earnings (loss) 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) amortization and depreciation expense related to intangible assets and software assets associated with 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, lease and fixed asset impairment charges, gains on sale of real estate and early termination of leased facilities, and other costs associated with the Company's restructuring activities, (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 30.0% and 29.5% for the three months ended March 31, 2023 and 2024, 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 March 31, 2024 are also presented on a constant currency basis utilizing an exchange rate of 0.68 Australian Dollars to U.S. Dollars, which was the average exchange rate for the same period in 2023. We define EBITDA as net income (loss) before other income (expense), 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 March 31, 2023
Non-GAAP Adjustments
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
As Reported Amortization of intangible assets(1) Merger and integration costs(2) Restructuring costs(3) Income from other investments(4) Tax As Adjusted
(GAAP) adjustments(5) (Non-GAAP)
----------------------------------------------- ---------------------------------------------- -------------------------------------------- ----------------------------------------- -------------------------------------------- ---------------------------------------- -----------------------------------------------
Revenues $ 256,606 $ -- $ -- $ -- $ -- $ -- $ 256,606
Total costs and expenses $ 257,955 $ (3,532 ) $ (425 ) $ (5,595 ) $ -- $ -- $ 248,403
Income (loss) from operations $ (1,349 ) $ 3,532 $ 425 $ 5,595 $ -- $ -- $ 8,203
-0.5 % 3.2 %
Operating margin
Income (loss) before income taxes $ (951 ) $ 3,532 $ 425 $ 5,595 $ (325 ) $ -- $ 8,276
Net income (loss) $ (2,028 ) $ 3,532 $ 425 $ 5,595 $ (325 ) $ (1,406 ) $ 5,793
Earnings (loss) per share:
$ (0.09 ) $ 0.24
Diluted
Weighted average shares outstanding:
For the three months ended March 31, 2024
Non-GAAP Adjustments
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
As Reported Amortization of intangible assets(1) Merger and integration costs(2) Restructuring costs(3) Loss from other investments(4) Tax As Adjusted
(GAAP) adjustments(5) (Non-GAAP)
----------------------------------------------- ------------------------------------ ------------------------------ ----------------------------------------- ------------------------------ ------------------------ --------------------------------------------------
Revenues $ 290,250 $ -- $ -- $ -- $ -- $ -- $
290,250
Total costs and expenses $ 248,894 $ -- $ -- $ 5,510 $ -- $ -- $
254,404
Income from operations $ 41,356 $ -- $ -- $ (5,510 ) $ -- $ -- $
35,846
14.2 % %
Operating margin 12.4
Income before income taxes $ 43,150 $ -- $ -- $ (5,510 ) $ 212 $ -- $
37,852
Net income $ 29,702 $ -- $ -- $ (5,510 ) $ 212 $ 2,282 $
26,686
Earnings per share:
$ 1.23 $
Diluted 1.11
Weighted average shares outstanding:
(1) Reflects amortization and depreciation expense of intangible assets and software assets acquired through the Company's acquisition of Torrens University and associated assets in Australia and New Zealand. (2) Reflects 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) Reflects severance costs, lease and fixed asset impairment charges, gains on sale of real estate and early termination of leased facilities, and other costs associated with the Company's restructuring activities. (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, utilizing adjusted effective income tax rates of 30.0% and 29.5% for the three months ended March 31, 2023 and 2024, respectively.
STRATEGIC EDUCATION, INC.
UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Q1 2024 AS ADJUSTED WITH CONSTANT CURRENCY
(in thousands, except per share data)
As Adjusted Constant currency adjustment(1) As Adjusted with Constant Currency
(Non-GAAP) (Non-GAAP)
------------------------------------------------- ------------------------------ ---------------------------------------------------
Revenues $ 290,250 $ 2,074 $ 292,324
Total costs and expenses $ 254,404 $ 1,975 $ 256,379
Income from operations $ 35,846 $ 99 $ 35,945
12.4 % 12.3 %
Operating margin
Income before income taxes $ 37,852 $ 123 $ 37,975
Net income $ 26,686 $ 86 $ 26,772
Earnings per share:
$ 1.11 $ 1.11
Diluted
Weighted average shares outstanding:
(1)
Reflects an adjustment to translate foreign currency results for the three months ended March 31, 2024 at a constant exchange rate of 0.68 Australian Dollars to U.S. Dollars, which was the average exchange rate for the same period in 2023.
STRATEGIC EDUCATION, INC.
UNAUDITED NON-GAAP SEGMENT REPORTING
(in thousands)
For the three months ended March 31,
-------------------------------------------------------------------------------------------------------------------------
2023 2024
-------------------- ------- -------------------- -------------------- -------------- --------------------
Revenues:
$ 196,895 $ 219,236
U.S. Higher Education
41,503 47,375
Australia/New Zealand
18,208 23,639
Education Technology Services
-------------------- ------- -------------------- -------------------- -------------- --------------------
Consolidated revenues 256,606 290,250
==================== ======= ==================== ==================== ============== ====================
Income (loss) from operations:
$ 9,589 $ 28,013
U.S. Higher Education
(7,182 ) (2,255 )
Australia/New Zealand
5,796 10,088
Education Technology Services
(3,532 ) --
Amortization of intangible assets
(425 ) --
Merger and integration costs
(5,595 ) 5,510
Restructuring costs
-------------------- ------- -------------------- -------------------- -------------- --------------------
Consolidated income (loss) from operations (1,349 ) 41,356
-------------------- ------- -------------------- -------------------- -------------- --------------------
Adjustments to consolidated income (loss) from operations:
3,532 --
Amortization of intangible assets
425 --
Merger and integration costs
5,595 (5,510 )
Restructuring costs
-------------------- ------- -------------------- -------------------- -------------- --------------------
Total adjustments to consolidated income (loss) from operations 9,552 (5,510 )
-------------------- ------- -------------------- -------------------- -------------- --------------------
Adjusted income (loss) from operations by segment:
9,589 28,013
U.S. Higher Education
(7,182 ) (2,255 )
Australia/New Zealand
5,796 10,088
Education Technology Services
-------------------- ------- -------------------