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GRAND CANYON EDUCATION GCE Grand Canyon Education , Inc. Reports Second Quarter 2021 Results August 5 , 2021 PHOENIX , Aug. 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 27 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 June 30 , 2021 . Grand Canyon Education , Inc. Reports Second Quarter 2021 Results For the three months ended June 30 , 2021 : • Service revenue was $ 201.5 million for the second quarter 2021 compared to $ 185.8 million for the second quarter of 2020. The increase year over year in service revenue was primarily due to year over year increases in university partner enrollments and in revenue per student . The increase in revenue per student is primarily due to the service revenue impact of the increased room , board , fee and other ancillary revenues at GCU in the second quarter of 2021 as compared to the prior year period ( see - Impact of COVID - 19 below ) and the growth in the enrollment for students at off - campus classroom and laboratory sites . These increases were partially offset by a one - day shift in timing for the Spring campus semester resulting in one day moving into the first quarter of 2021 from the second quarter of 2021. Service revenue per student for off - campus classroom and laboratory sites generates a significantly higher revenue per student than we earn under our agreement with GCU , as these agreements 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 and take more credits on average per semester . • Partner enrollments totaled 101,808 at June 30 , 2021 as compared to 98,326 at June 30 , 2020 , an increase of 3.5 % . University partner enrollments at our off - campus classroom and laboratory sites were 4,210 , an increase of 13.2 % over enrollments at June 30 , 2020 , which includes 176 GCU students at June 30 , 2021. Enrollments at GCU grew to 97,774 at June 30 , 2021 , an increase of 3.3 % over enrollments at June 30 , 2020. GCU enrollment declines between March 31 and June 30 of each year as ground enrollment at GCU at June 30 of each year only includes traditional - aged students taking Summer school classes , which is a small percentage of GCU's traditional - aged student body . The Spring semester for GCU's traditional - aged student body ends near the end of April each year . GCU also had a decline in the year over year growth rate of its online students between March 31 , 2021 and June 30 , 2021 ( see - Impact of COVID - 19 below ) . • Operating income for the three months ended June 30 , 2021 was $ 50.2 million , an increase of $ 1.9 million as compared to $ 48.3 million for the same period in 2020. The operating margin for the three months ended June 30 , 2021 was 24.9 % , compared to 26.0 % for the same period in 2020 . • The tax rate in the three months ended June 30 , 2021 was 23.3 % compared to 24.6 % in the same period in 2020. The lower effective tax rate was primarily due to favorable adjustments as a result of the completion of several state audits . • Net income increased 5.2 % to $ 49.5 million for the second quarter of 2021 , compared to $ 47.0 million for the same period in 2020. As adjusted net income was $ 51.1 million and $ 48.6 million for the second quarters of 2021 and 2020 , respectively . • Diluted net income per share was $ 1.09 and $ 1.00 for the second quarters of 2021 and 2020 , respectively . As adjusted diluted net income per share was $ 1.12 and $ 1.03 for the second quarters of 2021 and 2020 , respectively . • Adjusted EBITDA increased 4.1 % to $ 61.1 million for the second quarter of 2021 , compared to $ 58.7 million for the same period in 2020 . For the six months ended June 30 , 2021 : • Service revenue was $ 438.4 million for the six months ended June 30 , 2021 compared to $ 407.4 million for the same period in 2020. The increase year over year in service revenue was primarily due to year over year increases in university partner enrollments and in revenue per student . The increase in revenue per student is primarily due to the service revenue impact of the increased room , board , fee and other ancillary revenues at GCU in the six months ended June 30 , 2021 as compared to the six months ended June 30 , Q2 2020 ( see - Impact of COVID - 19 below ) and the growth in the enrollment for students at off - campus classroom and laboratory sites . Service revenue per student for off - campus classroom and laboratory sites generates a significantly higher revenue per student than we earn under our agreement with GCU , as these agreements 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