Grand Canyon Education, Inc. Reports Third Quarter 2010 Results
PHOENIX, Nov. 9, 2010 (GLOBE NEWSWIRE) -- Grand Canyon Education, Inc. (Nasdaq:LOPE), a regionally accredited provider of online and campus-based post-secondary education services, today announced financial results for the quarter ended September 30, 2010.
For the three months ended September 30, 2010:
- Net revenue increased 49.7% to $98.9 million for the third quarter of 2010, compared to $66.1 million for the third quarter of 2009.
- At September 30, 2010, our enrollment was approximately 42,300, an increase of 23.6% from our enrollment of approximately 34,200 at September 30, 2009.
- Operating income for the third quarter of 2010 was $22.1 million, an increase of 231% as compared to $6.7 million for the same period in 2009. The operating margin for the third quarter of 2010 was 22.4%, compared to 10.1% for the same period in 2009. Excluding the estimated litigation loss, operating income was $11.9 million and operating margin was 18.0% for the three months ended September 30, 2009.
- During the third quarter of 2009, an estimated litigation loss of $5.2 million was recorded for the settlement of the qui tam lawsuit. In the third quarter of 2010, the settlement was approved by the United States District Court for the District of Arizona, but that decision is currently subject to appeal.
- Adjusted EBITDA increased 76.6% to $26.8 million for the third quarter of 2010, compared to $15.1 million for the same period in 2009.
- The tax rate in the third quarter of 2010 was 41.3% compared to 46.0% in the third quarter of 2009. The higher effective tax rate in the third quarter of 2009 was primarily attributable to the potential impact of the estimated litigation loss for the qui tam settlement, which may not be fully deductible.
- Net income increased 270% to $12.9 million for the third quarter of 2010, compared to $3.5 million for the same period in 2009.
- Diluted net income per share was $0.28 for the third quarter of 2010, compared to $0.08 for the same period in 2009. Excluding the estimated litigation loss of $5.2 million, net of taxes of $1.7 million, diluted net income per share was $0.15 for the third quarter of 2009.
For the nine months ended September 30, 2010:
- Net revenue increased 54.9% to $285.8 million, compared to $184.4 million for the same period in 2009.
- Operating income for the nine months ended September 30, 2010 was $62.2 million, an increase of 117% as compared to $28.7 million for the same period in 2009. The operating margin for the nine months ended September 30, 2010 was 21.8%, compared to 15.6% for the same period in 2009. Excluding the estimated litigation loss, operating income was $33.9 million and operating margin was 18.4% for the nine months ended September 30, 2009.
- During the nine months ended September 30, 2009, an estimated litigation loss of $5.2 million was recorded for the settlement of the qui tam lawsuit. In the third quarter of 2010, the settlement was approved by the United States District Court for the District of Arizona, but that decision is currently subject to appeal.
- Adjusted EBITDA increased 77.3% to $74.7 million for the nine months ended September 30, 2010, compared to $42.1 million for the same period in 2009.
- The tax rate for the nine months ended September 30, 2010 was 40.4% compared to 41.3% for the same period in 2009.
- Net income increased 127% to $36.8 million for the nine months ended September 30, 2010, compared to $16.2 million for the same period in 2009.
- Diluted net income per share was $0.79 for the nine months ended September 30, 2010, compared to $0.36 for the same period in 2009. Excluding the estimated litigation loss, net of taxes, diluted net income per share was $0.43 for the nine months ended September 30, 2009.
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