Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has three reportable segments: the APUS Segment, the RU Segment, and the HCN Segment. GSUSA does not meet the quantitative thresholds to qualify as a reportable segment, and does not have other requisite characteristics as a reportable segment, therefore, its operational activities are presented below within “Corporate and Other”. Adjustments to reconcile segment results to the Consolidated Financial Statements, including unallocated corporate activity and eliminations, are also included in “Corporate and Other”.

In accordance with FASB ASC 280, Segment Reporting, the chief operating decision-maker has been identified as the Company’s Chief Executive Officer. The Company’s Chief Executive Officer reviews operating results to make decisions about allocating resources and assessing performance for the APUS, RU, and HCN Segments.

A summary of financial information by reportable segment is as follows (in thousands):    

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(Unaudited)				(Unaudited)
Revenue:
APUS Segment	$	73,557	$	69,904	$	147,535	$	142,994
RU Segment	51,971		63,891		109,438		130,990
HCN Segment	14,266		11,486		27,406		23,027
Corporate and Other	7,420		4,327		12,524		7,344
Total Revenue	$	147,214	$	149,608	$	296,903	$	304,355
Depreciation and amortization:
APUS Segment	$	1,291	$	1,586	$	2,691	$	3,287
RU Segment	6,195		6,160		12,122		12,239
HCN Segment	323		223		613		445
Corporate and Other	144		150		283		296
Total Depreciation and amortization	$	7,953	$	8,119	$	15,709	$	16,267
Income (loss) from operations before interest and income taxes:
APUS Segment	$	18,941	$	13,624	$	36,015	$	26,806
RU Segment (Note 6)	(77,274)		(146,553)		(90,138)		(145,662)
HCN Segment	(235)		(630)		(1,538)		(1,625)
Corporate and Other	(6,700)		(7,701)		(14,977)		$	(15,579)
Total loss from operations before interest and income taxes	$	(65,268)	$	(141,260)	$	(70,638)	$	(136,060)
Interest income (expense):
APUS Segment	$	669	$	38	$	829	$	77
RU Segment	—		5		1		8
HCN Segment	23		3		42		5
Corporate and Other	(1,789)		(3,436)		(3,748)		$	(6,835)
Total Interest expense	$	(1,097)	$	(3,390)	$	(2,876)	$	(6,745)
Income tax expense (benefit):
APUS Segment	$	4,207	$	10,511	$	9,720	$	15,185
RU Segment	(18,224)		(36,687)		(22,178)		(36,381)
HCN Segment	160		(566)		(185)		(882)
Corporate and Other	(1,280)		(8,590)		(3,908)		(12,214)
Total Income tax benefit	$	(15,137)	$	(35,332)	$	(16,551)	$	(34,292)
Capital expenditures:
APUS Segment	$	1,349	$	957	$	1,649	$	1,398
RU Segment	1,279		2,994		3,285		4,918
HCN Segment	205		390		1,032		890
Corporate and Other	514		3		587		103
Total Capital Expenditures	$	3,347	$	4,344	$	6,553	$	7,309

A summary of the Company’s consolidated assets by reportable segment is as follows (in thousands):

	As of June 30, 2023		As of December 31, 2022
	(Unaudited)
Assets:
APUS Segment	$	124,429	$	113,551
RU Segment	241,543		300,625
HCN Segment	63,298		59,820
Corporate and Other	129,537		141,060
Total Assets	$	558,807	$	615,056