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GRAND CANYON EDUCATION GCE Grand Canyon Education , Inc. Reports First Quarter 2021 Results May 5 , 2021 PHOENIX , May 5 , 2021 / PRNewswire / -- Grand Canyon Education , Inc. ( NASDAQ : LOPE ) , ( " GCE " or the " Company " ) , is a publicly traded education services company that currently provides services to 26 university partners . GCE provides 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 services in these areas on a large scale . GCE today announced financial results for the quarter ended March 31 , 2021 . For the three months ended March 31 , 2021 : • Service revenue was $ 236.9 million for the first quarter of 2021 compared to $ 221.7 million for the first quarter of 2020 . The 6.9 % increase year over year in service revenue was primarily due to an increase in university partner enrollments between years of 7.2 % partially offset by a decrease in revenue per student year over year . The decrease in revenue per student is primarily due to the service revenue impact of the lower room , board , fee and ancillary revenues at Grand Canyon University ( " GCU " ) , our largest university partner , in 2021 and 2020 caused by COVID - 19 ( see - Impact of COVID - 19 below ) . In addition , we generated slightly more revenues in 2020 as compared to 2021 due to 2020 being a Leap Year and we did not renew a contract with a university partner with two sites in the first quarter of 2021. This was partially offset by the fact that our service agreements with our other university partners generally generate a higher revenue per student than our agreement with GCU . This higher revenue is due to our service agreements with other partners generally provide us with a higher revenue share percentage , the partners have higher tuition rates than GCU and the majority of their students are studying in the Accelerated Bachelor of Science in Nursing program so these students take more credits on average per semester . • Partner enrollments grew 7.2 % and totaled 115,390 at March 31 , 2021 as compared to 107,591 at March 31 , 2020 . Enrollments at GCU grew to 111,055 at March 31 , 2021 , an increase of 7.2 % over enrollments at March 31 , 2020 , while enrollments at our other university partners were 4,335 , an increase of 8.4 % over enrollments at March 31 , 2020. Excluded from other university partner enrollments at March 31 , 2021 are enrollments from a university partner in which we and the university partner mutually agreed that the service agreement would not be extended upon its expiration . • Operating income for the three months ended March 31 , 2021 was $ 84.2 million , an increase of $ 3.4 million as compared to $ 80.8 million for the same period in 2020. The operating margin for the three months ended March 31 , 2021 was 35.5 % , compared to 36.5 % for the same period in 2020 . • The tax rate in the three months ended March 31 , 2021 was 20.4 % compared to 24.2 % in the same period in 2020. The 2021 effective tax rate was lower due to higher excess tax benefits in the first quarter of 2021 of $ 4.4 million , compared to $ 0.6 million for the same period in 2020 . • Net income increased 9.4 % to $ 78.1 million for the first quarter of 2021 , compared to $ 71.4 million for the same period in 2020. As adjusted net income was $ 79.8 million and $ 73.0 million for the first quarters of 2021 and 2020 , respectively . • Diluted net income per share was $ 1.69 and $ 1.49 for the first quarters of 2021 and 2020 , respectively . As adjusted diluted net income per share was $ 1.72 and $ 1.53 for the first quarters of 2021 and 2020 , respectively . • Adjusted EBITDA increased 5.2 % to $ 95.6 million for the first quarter of 2021 , compared to $ 90.9 million for the same period in 2020 . Balance Sheet and Cash Flow Our unrestricted cash and cash equivalents and investments were $ 262.3 million and $ 256.6 million at March 31 , 2021 and December 31 , 2020 , respectively . Our credit facility had an available line of credit of $ 150.0 million as of March 31 , 2021 . Arrangements with GCU In conjunction with the Asset Purchase Agreement with GCU , we received a secured note ( the " Secured Note " ) as consideration for the transferred assets . The Secured Note contains customary commercial credit terms , including affirmative and negative covenants applicable to GCU , and provides that the Secured Note bears interest at an annual rate of 6 % , has a maturity date of June 30 , 2025 , and is secured by all the assets of GCU . The Secured Note provides for GCU to make interest only payments