Loading...
Docoh

Grand Canyon Education (LOPE)

Grand Canyon Education (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 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 service 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, curriculum development, faculty recruitment and training, among others.

Company profile

Ticker
LOPE
Exchange
Website
CEO
Brian Mueller
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Orbis Education Services, LLC • Orbis Education Management Company, LLC • Orbis Education II, LLC • GC Education, Inc. • Tierra Vista Inversiones, LLC • Nueva Ventura, LLC • Casa de Amistad, LLC • Amigos de Torrejon, LLC • Piedras Bonitas Inversiones, LLC • La Sonrisa de Siena, LLC ...
IRS number
203356009

LOPE stock data

Calendar

4 Aug 22
29 Sep 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 139.4M 139.4M 139.4M 139.4M 139.4M 139.4M
Cash burn (monthly) 20.84M (no burn) (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 62.41M n/a n/a n/a n/a n/a
Cash remaining 76.99M n/a n/a n/a n/a n/a
Runway (months of cash) 3.7 n/a n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
14 Jun 22 Lori Browning Common Stock Gift Dispose G No No 0 300 0 15,069
9 Jun 22 Dial Sara R. Common Stock Grant Acquire A No No 0 834 0 5,586
9 Jun 22 Henry Jack A Common Stock Grant Acquire A No No 0 834 0 17,993
9 Jun 22 Keegan Lisa Graham Common Stock Grant Acquire A No No 0 834 0 2,706
9 Jun 22 Humphrey Chevy Common Stock Grant Acquire A No No 0 834 0 2,606
92.9% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 294 271 +8.5%
Opened positions 60 41 +46.3%
Closed positions 37 46 -19.6%
Increased positions 82 82
Reduced positions 120 110 +9.1%
13F shares Current Prev Q Change
Total value 2.8B 3.04B -8.0%
Total shares 29.69M 31.27M -5.0%
Total puts 32.3K 41.9K -22.9%
Total calls 45.2K 80.5K -43.9%
Total put/call ratio 0.7 0.5 +37.3%
Largest owners Shares Value Change
Vanguard 2.95M $278.04M -10.5%
BLK Blackrock 2.92M $275.19M -13.4%
Riverbridge Partners 2.11M $198.31M -29.1%
FIL 1.12M $105.09M +0.8%
Massachusetts Financial Services 1.08M $101.81M -40.4%
ArrowMark Colorado 1.07M $100.56M -28.6%
Burgundy Asset Management 960.68K $90.49M +0.8%
STT State Street 905.95K $85.33M -16.9%
GW&K Investment Management 863.33K $81.32M +0.4%
Van Berkom & Associates 857.14K $80.73M -16.8%
Largest transactions Shares Bought/sold Change
Riverbridge Partners 2.11M -865.91K -29.1%
Massachusetts Financial Services 1.08M -734.21K -40.4%
FMR 613.23K +610.06K +19263.1%
BLK Blackrock 2.92M -452.31K -13.4%
ArrowMark Colorado 1.07M -427.84K -28.6%
Vanguard 2.95M -347.07K -10.5%
IVZ Invesco 447.83K +312.81K +231.7%
Jacobs Levy Equity Management 542.72K +279.09K +105.9%
Stadium Capital Management 31.14K -278.08K -89.9%
First Trust Advisors 90.1K -196.3K -68.5%

Financial report summary

?
Competition
Aspen
Risks
  • If we are determined to have paid improper incentive compensation to our covered employees, or tuition sharing arrangements are deemed to violate the incentive compensation regulations, our business will be impaired.
  • Our failure, or our university partners’ failure, to comply with the extensive regulatory requirements governing institutions of higher education could result in financial penalties, restrictions on our operations or growth, or loss of external financial aid funding for our university partners’ students.
  • Rulemaking by the ED could materially and adversely affect our business.
  • If ED does not recertify a university partner institution to continue participating in the Title IV programs, the students we assist would lose their access to Title IV program funds, or a university partner institution could be recertified but required to accept significant limitations as a condition of its continued participation in the Title IV programs.
  • A university partner institution could lose the ability to participate in the Title IV programs if it fails to maintain its institutional accreditation, and our university partners’ student enrollments could decline if a client institution fails to maintain any of its accreditations or approvals.
  • A university partner institution may lose eligibility to participate in the Title IV programs if its student loan default rates are too high.
  • If our university partner institutions do not meet specific financial responsibility standards established by ED, they may be required to post a letter of credit or accept other limitations in order to continue participating in the Title IV programs, or could lose eligibility to participate in the Title IV programs.
  • If our university partner institutions do not comply with ED’s administrative capability standards, we could suffer harm.
  • A finding that our university partner institutions violated ED’s substantial misrepresentation regulation could materially and adversely affect our business.
  • To the extent we are performing return to Title IV calculations for our university partner institutions, we are subject to sanctions if we fail to correctly calculate and timely return Title IV program funds for students who withdraw before completing their educational program.
  • A reduction in funding or new restrictions on eligibility for the Federal Pell Grant Program, or the elimination of subsidized Stafford loans, could make college less affordable for certain students at our university partner institutions, which could negatively impact our university partner institutions’ enrollments, revenue and results of operations.
  • We cannot offer new programs for our university partners or expand university partner operations into certain states if such actions are not timely approved by the applicable regulatory agencies, and our university partners may have to repay Title IV funds disbursed to students enrolled in any such programs, schools, or states if they do not obtain prior approval.
  • If our university partner institutions do not maintain state authorization, they may not operate or participate in the Title IV programs.
  • Government agencies, regulatory agencies, and third parties may conduct compliance reviews, bring claims, or initiate litigation against us or our university partners based on alleged violations of the extensive regulatory requirements applicable to us and our university partners, which could cause the imposition of sanctions against us or our university partners.
  • The regulatory guidance governing third-party servicers imposes a number of requirements on our business and may expose us to liability for certain regulatory violations that are coextensive with our university partner institutions.
  • Proposed legislation, additional rulemaking or additional examinations from U.S. Congress may impact general public perception of the industry in a negative manner resulting in a material and adverse impact on our business.
  • Provisions in our charter documents and the Delaware General Corporation Law could make it more difficult for a third party to acquire us and could discourage a takeover and adversely affect existing stockholders.
  • If securities analysts do not publish research or reports about our business or industry or if they downgrade their evaluations of our stock, the price of our stock could decline.
  • If we fail to maintain proper and effective internal controls, our ability to produce accurate financial statements on a timely basis could be impaired.
  • Because we do not anticipate paying any cash dividends on our common stock in the foreseeable future, capital appreciation, if any, will be your sole source of gains and you may never receive a return on your investment.
Management Discussion
  • Service revenue. Our service revenue for the three months ended June 30, 2022 was $199.8 million, a decrease of $1.7 million, or 0.9%, as compared to service revenue of $201.5 million for the three months ended June 30, 2021. The decrease year over year in service revenue was primarily due to a decrease in online enrollments at GCU of 7.5% (see - Impact of COVID-19 above) and to a lesser extent, students in a university partner’s OTA program of 34% (see - Impact of COVID-19 above) partially offset by increases in GCU traditional campus enrollments, university partners enrollments in ABSN programs and revenue per student year over year. Additionally, GCU’s traditional campus Spring semester moved forward one day and Summer semester moved back six days compared to the second quarter of 2021, which reduced service revenues earned in the second quarter by $1.3 million. 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 second quarter of 2022 as compared to the prior year period (see - Impact of COVID-19 above) although the impact of this growth is not as significant in the 2nd and 3rd quarters of each year as it is in the 1st and 4th quarters as the majority of GCU’s traditional ground university students do not attend courses during the summer months, and the increase in students at off-campus classroom and laboratory sites. Service revenue per student for ABSN 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. Partner enrollments totaled 96,029 at June 30, 2022 as compared to 101,808 at June 30, 2021. University partner enrollments at our off-campus classroom and laboratory sites were 4,120, a decrease of 2.1% over enrollments at June 30, 2021, which includes 324 GCU students at June 30, 2022. This growth rate has slowed over the past year primarily due to the 34.0% decline in OTA students. Year over year ABSN students grew 1.2% at June 30, 2022. As is discussed above in Impact of COVID-19, none of our ABSN partners have stopped admitting new students due to clinical faculty challenges that began during the pandemic, however some locations that were scheduled to open in 2021 and 2022 have been pushed back and some existing partners have reduced incoming cohort sizes which has slowed the growth. In addition, in a joint decision between us and one of our university partners, two ABSN off-campus classroom and laboratory sites were closed at the beginning of this year to allow the university partner to focus its resources closer to its home location. Excluding the prior year enrollments from locations that have been closed in the past twelve months, ABSN students

Content analysis

?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Avg
New words: agreed, beneficiary, CEO, Chairman, charitable, closer, decision, exempt, forward, GCECF, home, joint, lesser, literary, NaN, president, scientific, tenure, upfront
Removed: consolidating, hotel, month, transitioned