Segment Information

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(Unaudited)				(Unaudited)
Revenue:
APUS Segment	$	76,406	$	68,735	$	223,941	$	211,729
RU Segment	52,073		61,548		161,511		192,538
HCN Segment	13,741		11,409		41,147		34,436
Corporate and Other	8,618		7,843		21,142		15,187
Total Revenue	$	150,838	$	149,535	$	447,741	$	453,890
Depreciation and amortization:
APUS Segment	$	1,316	$	1,573	$	4,007	$	4,860
RU Segment	5,229		6,015		17,351		18,254
HCN Segment	314		248		927		693
Corporate and Other	167		146		450		442
Total Depreciation and amortization	$	7,026	$	7,982	$	22,735	$	24,249
Income (loss) from operations before interest and income taxes:
APUS Segment	$	21,948	$	12,532	$	57,963	$	39,338
RU Segment	(10,570)		(7,900)		(100,708)		(153,562)
HCN Segment	(641)		(1,392)		(2,179)		(3,017)
Corporate and Other	(4,337)		(4,266)		(19,314)		$	(19,845)
Total income (loss) from operations before interest and income taxes	$	6,400	$	(1,026)	$	(64,238)	$	(137,086)
Interest income (expense):
APUS Segment	$	728	$	69	$	1,557	$	146
RU Segment	10		30		11		38
HCN Segment	26		5		68		10
Corporate and Other	(1,556)		(3,698)		(5,304)		$	(10,533)
Total Interest expense, net	$	(792)	$	(3,594)	$	(3,668)	$	(10,339)
Income tax expense (benefit):
APUS Segment	$	5,969	$	(3,557)	$	15,689	$	11,628
RU Segment	(635)		(2,183)		(22,813)		(38,564)
HCN Segment	(271)		66		(456)		(816)
Corporate and Other	(1,351)		4,814		(5,259)		(7,400)
Total Income tax expense (benefit)	$	3,712	$	(860)	$	(12,839)	$	(35,152)
Capital expenditures:
APUS Segment	$	1,243	$	811	$	2,892	$	2,209
RU Segment	214		1,942		3,499		6,860
HCN Segment	331		776		1,363		1,666
Corporate and Other	1,164		67		1,751		170
Total Capital Expenditures	$	2,952	$	3,596	$	9,505	$	10,905

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

	As of September 30, 2023		As of December 31, 2022
	(Unaudited)
Assets:
APUS Segment	$	93,918	$	113,551
RU Segment	220,819		300,625
HCN Segment	59,491		59,820
Corporate and Other	181,043		141,060
Total Assets	$	555,271	$	615,056