High Demand Fuels Positive Growth Outlook for 2024
TEMECULA, Calif., Oct. 7, 2024 /PRNewswire/ -- Legacy Education Inc. (NYSE: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 Followin Thousands)
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)
