High Demand Fuels Positive Growth Outlook for 2024
TEMECULA, Calif., Oct. 7, 2024 /PRNewswire/ -- Legacy Education Inc. (NYSE American: LGCY), an award-winning, nationally accredited, for-profit post-secondary education company founded in 2009, today announced financial and operating results for the fourth quarter and full year ended June 30, 2024.
Fourth Quarter 2024 Financial Highlights
- Revenue grew 34.1% to $12.8 million
- New student starts increased 27.1%
- EBITDA of $0.9 million and adjusted EBITDA of $2.7 million
- Net income of $1.0 million
- Earnings per share of $0.10
Full Year 2024 Financial Highlights
- Revenue grew 29.7% to $46.0 million
- New student starts increased 21.8%
- EBITDA of $6.5 million and adjusted EBITDA of $8.4 million
- Net income of $5.1 million
- Earnings per share of $0.55
- Ended year with student population of 2,187, 28.3% higher than 2023
"We are pleased to report results in our annual earnings report, underscoring Legacy Education Inc.'s commitment to delivering high-quality educational experiences," said LeeAnn Rohmann, Chief Executive Officer. "This year's performance reflects our strategic growth initiatives and dedication to empowering individuals through transformative learning. We remain focused on expanding our reach and enhancing the value we provide to our students, partners and shareholders."
YEAR END FINANCIAL RESULTS
(Year ended June 30, 2024 compared to June 30, 2023)
- Revenue was approximately $46.0 million in fiscal 2024 compared to approximately $35.5 million in fiscal 2023, an increase of approximately $10.5 million, or approximately 29.7%. The increase was primarily due to increased student enrollment and the increase in pricing of certain programs.
- Educational services was approximately $26.4 million in fiscal 2024 compared to approximately $20.8 million in fiscal 2023, an increase of approximately $5.6 million, or approximately 26.8%. The increase is primarily a result of increased instructional and staffing required to support the increase in enrollments as well as a non-cash compensation charge of approximately $1.9 million related to stock option grants, of which, approximately $1.8 million pertain to options that vested immediately upon the granting of the awards.
- General and administrative expense was approximately $13.0 million in fiscal 2024, compared to approximately $10.7 million in fiscal 2023, an increase of approximately $2.3 million, or approximately 22.0%. The increase was primarily related increased marketing and bad debt expense. We anticipate general and administrative expense will continue to increase as our business continues to move towards decentralization, reflecting (i) that we are now more corporate and campus-based, with additional management overseeing various campuses, and (ii) additional professional fees as we pursue potential acquisitions of new institutions. Of the total general and administrative expense, $4.1 million and $3.5 million related to sales and marketing expense for fiscal 2024 and 2023, respectively
(Table to Follow | |||||
Three Months Ended | Year Ended | ||||
June 30 | June 30 | ||||
2024 | 2023 | 2024 | 2023 | ||
Unaudited | Unaudited | ||||
REVENUE | |||||
Tuition and related income, net | $ 12,752,420 | $ 9,509,864 | $ 46,000,316 | $ 35,455,948 | |
OPERATING EXPENSES | |||||
Educational services | 8,548,697 | 5,600,550 | 26,351,326 | 20,785,421 | |
General and administrative | 3,253,367 | 2,722,619 | 12,999,164 | 10,651,402 | |
General and administrative - related party | 42,000 | 47,000 | 168,000 | 173,000 | |
Depreciation and amortization | 75,865 | 55,306 | 265,036 | 224,488 | |
Total costs and expenses | 11,919,929 | 8,425,475 | 39,783,526 | 31,834,311 | |
OPERATING INCOME | 832,491 | 1,084,389 | 6,216,790 | 3,621,637 | |
Interest expense | (14,864) | (16,943) | (118,162) | (96,259) | |
Interest income | 359,814 | 190,438 | 886,834 | 339,102 | |
Total other income | 344,950 | 173,495 | 768,672 | 242,843 | |
INCOME BEFORE INCOME TAXES | $ 1,177,441 | $ 1,257,884 | $ 6,985,462 | $ 3,864,480 | |
Income tax expense | (216,099) | (463,121) | (1,870,610) | (1,197,741) | |
Net income (loss) | 961,342 | 794,763 | $ 5,114,852 | 2,666,739 | |
Net income per share | |||||
Basic net income per share | $ 0.10 | $ 0.09 | $ 0.55 | $ 0.29 | |
Diluted net income per share | $ 0.10 | $ 0.08 | $ 0.53 | $ 0.28 | |
Basic weighted average shares outstanding | 9,291,149 | 9,254,881 | 9,291,149 | 9,216,949 | |
Diluted weighted average shares outstanding | 9,691,149 | 9,654,881 | 9,691,149 | 9,616,949 | |
(1) Shares outstanding and per share amounts have been retroactively adjusted to reflect the 2-for-1 reverse split of our common stock effected on September 9, 2024. |
Selected Consolidated Balance Sheet Data: | June 30, 2024 | |
Cash and cash equivalents | $ 10,376,149 | |
Current assets | 24,587,609 | |
Total assets | 35,173,050 | |
Current liabilities | 10,466,242 | |
Total stockholders' equity | 22,419,012 | |
Important Information Regarding Non-GAAP Financial Information
To supplement Legacy Education's consolidated financial statements presented in accordance with GAAP, Legacy Education furnishes certain adjusted non-GAAP supplemental information to our financial results regarding EBITDA and adjusted EBITDA. This reconciliation adjust the related GAAP financial measures to exclude operating income to adjust the impact of non cash compenation in the periods presented. We use such adjusted non-GAAP financial measures to evaluate our period-over-period operating performance because our management team believes that by excluding the effects of such adjusted GAAP-related items that, in their opinion, do not reflect the ordinary earnings of our operations, it enhances investors' overall understanding of our current financial performance and our prospects for the future by (i) providing a more comparable measure of our continuing business, as well as greater understanding of the results from the primary operations of our business, (ii) affording a view of our operating results that may be more easily compared to our peer companies, and (iii) enabling investors to consider our operating results on both a GAAP and adjusted non-GAAP basis (including following the integration period of our prior and proposed acquisitions). However, this adjusted non-GAAP information is not in accordance with, or an alternative to, generally accepted accounting principles in the United States ("GAAP") and should be considered in conjunction with our GAAP results as the items excluded from the adjusted non-GAAP information may have a material impact on Legacy's financial results. A reconciliation of adjusted non-GAAP adjustments to Legacy's GAAP financial results is included in the tables at the end of this press release.
In the noted fiscal periods, we adjusted net income for the items identified from our GAAP financial results to arrive at our adjusted non-GAAP financial measures:
Stock-based compensation - We exclude stock-based compensation to be consistent with the way management and, in our view, the overall financial community, evaluates our performance and the methods used by analysts to calculate consensus estimates. The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. As such, we do not include these charges in operating plans.
RECONCILIATION OF NET INCOME, EBITDA, AND ADJUSTED EBITDA | ||||||||||
Three Months Ended | Year Ended | |||||||||
June 30 | June 30 | |||||||||
2024 | 2023 | 2024 | 2023 | |||||||
Net income | $ 961,342 | $ 794,763 | $ 5,114,852 | $ 2,666,739 | ||||||
Adjusted to exclude the following: | ||||||||||
Interest expense (income), net | (344,950) | (173,495) | (768,672) | (242,843) | ||||||
Provison for income taxes | 216,099 | 463,121 | 1,870,610 | 1,197,741 | ||||||
Depreciation and amortization | 75,865 | 55,306 | 265,036 | 224,488 | ||||||
EBITDA | 908,356 | 1,139,695 | 6,481,826 | 3,846,125 | ||||||
Non cash compensation | 1,882,064 | 0 | 1,882,064 | 0 | ||||||
Adjusted EBITDA | $ 2,790,420 | $ 1,139,695 | $ 8,363,890 | $ 3,846,125 | ||||||
ABOUT LEGACY EDUCATION
Legacy Education (NYSE: LGCY) is an award-winning, nationally accredited, for-profit post-secondary education company founded in 2009. Legacy Education provides career-focused education primarily in the healthcare field, with certificates and degrees for nursing, medical technicians, dental assisting, business administrative, and several others. The company offers a wide range of educational programs and services to help students achieve their professional goals. Legacy Education's focus is on providing high-quality education that is accessible and affordable. Legacy Education is committed to growing it's education footprint via organic enrollment growth, addition of new programs and accretive acquisitions. For more information, please visit www.legacyed.com or on LinkedIn @legacy-education-inc.
FORWARD-LOOKING STATEMENTS
Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements." These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates, expected use of proceeds, the Company's operations and business strategy and the Company's expected financial results. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The forward-looking statements contained in this press release are based on management's current expectations and are subject to substantial risks, uncertainty and changes in circumstances. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including, without limitation, market conditions and the factors described in the section entitled "Risk Factors" in Legacy's most recent Annual Report on Form 10-K and Legacy's other filings made with the U.S. Securities and Exchange Commission. All such statements speak only as of the date of this press release. Consequently, forward-looking statements should be regarded solely as Legacy's current plans, estimates, and beliefs. Legacy cannot guarantee future results, events, levels of activity, performance or achievements. Legacy does not undertake and specifically declines any obligation to update or revise any forward-looking statements to reflect new information, future events or circumstances or to reflect the occurrences of unanticipated events, except as may be required by applicable law.
Contact Legacy Education Inc.
Investor Relations
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SOURCE Legacy Education Inc.
