Perdoceo Education Corporation · NASDAQ:PRDO
Perdoceo Education — Career Education — Investor Day (February 2010)
99 slides from Perdoceo Education's investor day presentation, Feb 18, 2010
Slide 1: Career Education Corporation
Exhibit 99.1 Career Education Corporation February 18, 2010 Copyright Career Education Corporation 2010
Slide 2: John Springer, Investor Relations
John Springer Senior Vice President, Finance and Investor Relations Copyright Career Education Corporation 2010 2010 Analyst and Investor Day
Slide 3: Welcome!
Welcome! 1:00 p.m. – 2:30 p.m. Overview and Strategy – Gary E. McCullough, President and Chief Executive Officer 2:30 p.m. – 2:45 p.m. Break Technology Discussion and Demonstration – Manoj Kulkarni, Chief Information Officer 2:45 p.m. – 4:15 p.m. Financial Highlights and Outlook – Mike Graham, Execu
Slide 4: Basis of Presentation
Basis of Presentation Total company financial results presented today are on a Continuing Operations basis and exclude significant items as follows: $20.4 million in 2007, $34.2 million in 2008 and $29.4 million in 2009 Future milestones exclude similar significant items, if any Segment financials a
Slide 5: Safe Harbor
Safe Harbor During this presentation, we will make forward-looking statements subject to known and unknown risks and uncertainties that could cause actual performance to differ materially from that expressed or implied by the statements. These statements are based on information currently available
Slide 6: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company has included some non-GAAP financial measures in this presentation to discuss the Company’s financial results and outlook. As a general matter, the Company uses these non-GAAP measures in addition to and in conjunction with results presented in accordance with
Slide 7: Gary E. McCullough
Gary E. McCullough President and Chief Executive Officer Copyright Career Education Corporation 2010 2010 Analyst and Investor Day
Slide 8: Our Approach to Analyst & Investor Day
Our Approach to Analyst & Investor Day • We have worked to be transparent during the past three years • Messages today are intended to be aligned with expressed investor and analyst needs • Goal is to have you see the company through a different lens Commitment to changing lives through education Co
Slide 9: Summary
Summary • Transformed company and achieved 2010 milestones • Strong momentum entering 2010 • Well positioned in key market segments • Focused strategies to deliver next level of growth
Slide 10: Statement of Purpose
Statement of Purpose To change lives through education.
Slide 11: Vision Statement
Vision Statement Transform the company into a progressive, proprietary education leader that delivers life-changing education for generations of students. “Progressive, Proprietary Education Leader” – We aspire to educate with schools that rapidly evolve our academic offerings to meet both student a
Slide 12: Core Values
Core Values Integrity Respect Diversity Social responsibility Excellence Students Employees
Slide 13: 2009: A Watershed Year
2009: A Watershed Year “Watershed”: “…an important point or transition between two phases, conditions, etc.” 2007-2008 2009 Recognize > Redefine > Reach Strengthen foundation Accelerate growth Revenue +11% 2005 2006 2007 2008 2009
Slide 14: Strengthen Foundation: Organizational Effectiveness
Strengthen Foundation: Organizational Effectiveness Cost Taught out unprofitable schools Rationalized Real Estate $70+ Million Annual savings Efficiency Implemented PEER admissions model in University Expanded Shared Services 28% Reduction in admissions cost per new student start Culture New leaders
Slide 15: Strengthen Foundation: Culture of Quality & Compliance
Strengthen Foundation: Culture of Quality & Compliance • Solutions-oriented business partners • Conduct proactive internal and external assessments to identify and correct risks early • Standardized policies, processes, and forms • Centralized annual reporting to accreditors for accuracy, consistenc
Slide 16: 2009: Accelerate Growth
2009: Accelerate Growth University Introduced 36 new programs Regained admissions efficiency +20% Health • Opened 7 new campuses • Introduced 31 new programs +30% Culinary • Introduced 21-month program • Continued use of internal payment plans • Acquired LCB North America brand rights +31% Internati
Slide 17: Results: Student Perspective
Results: Student Perspective Student Population +19% 82,400 87,900 105,400 2007 2008 2009 Number of Graduates +12% 41,500 42,700 47,700 2007 2008 2009
Slide 18: Results: Financial Perspective
Results: Financial Perspective Revenue In Billions +11% $1.67 $1.66 $1.84 2007 2008 2009 Operating Income In Millions +75% $154 $143 $252 2007 2008 2009 . . . achieved 2010 milestones one year early
Slide 19: Momentum Continues into 2010
Momentum Continues into 2010 Strong beginning to 2010 • Q409 University advertising investment to take advantage of strong lead flow • Health and Culinary maintain momentum New Student Starts Year-Over-Year Growth * 25% 21% 20% Q309 Q409 Q110 Est *Excludes IADT Calendar Shifts
Slide 20: Career Education: Path Forward
Career Education: Path Forward 2007-2008 2009 Recognize > Redefine > Reach Strengthen foundation Accelerate growth
Slide 21: The Postsecondary Market
The Postsecondary Market Postsecondary education: large, growing; proprietary fastest growing •Total postsecondary enrollment will grow 1.9% per year •Proprietary enrollment is projected to grow 9.5% per year •Proprietary market share is projected to grow to 11% Postsecondary Enrollment 1.5M 8% 2008
Slide 22: Student Demographics
Student Demographics Favorable Student Demographics •”Working adult” segment (age 22-34) projected to grow twice as fast as the “traditional” student segment •”Working adult” segment expected to be 45% in 2013; + 3.5 pts Postsecondary Enrollment Students (millions) CAGR 0 5 10 15 20 25 2008 3.2 7.4
Slide 23: Job Demand
Job Demand Largest future growth opportunities in postsecondary education (PSE) • Business • Healthcare • IT • Education *Source: Bureau of Labor Statistics 2010 Analyst and Investor Day
Slide 24: Proprietary Education: Outlook
Proprietary Education: Outlook Online projected to become dominant format in the proprietary postsecondary market •Total proprietary revenue 2008 to 2013 CAGR of 8% •Online revenue CAGR expected to be 15% Proprietary Education Revenue ($ billions) 2008 – 2013 CAGR Total 8% Online 15% Ground -3% $26
Slide 25: Proprietary Education: Landscape
Proprietary Education: Landscape Key 2008 / 2013 Revenue CAGR 2008 2013 Revenue Revenue Certificates Bachelors Associates Masters Doctorate Liberal Arts 6% Education 6% Psychology 3% Business 7% Protective Services 8% Legal 8% Health (Science, Professional, Administration, Nursing) 8% Engineering (A
Slide 26: Proprietary Education: University Landscape
Proprietary Education: University Landscape Key 2008 / 2013 Revenue CAGR 2008 Revenue 2013 Revenue Certificates Associates Bachelors Masters Doctorate University -type Curricula Liberal Arts 6% Protective Services 8% Education 6% Legal 8% Psychology 3% Health (Science, Professional, Administration,
Slide 27: Proprietary Education: Career-focused Landscape
Proprietary Education: Career-focused Landscape Key 2008 / 2013 Revenue CAGR 2008 Revenue 2013 Revenue Certificates Associates Bachelors Masters Doctorate Career-focused segment characteristics: • Certificates and Associates • Ground-based • National Accreditation • Focused offerings • Healthcare is
Slide 28: Career Education Presence
Career Education Presence Key 2008 / 2013 Revenue CAGR 2013 Revenue 2008 Revenue CEC Revenue as % of Total University-type Curricula Protective Services 8% Healthcare (Allied, Specialized, Alternative) 10% Health (Science, Professional, Administration, Nursing) 8% Business 7% Information Technology
Slide 29: Career Education: Diversified Institutions
Career Education: Diversified Institutions University Career-focused Population 20,300 27,300 12,700 21,700 10,900 % Online 83% 82% 10% <1% # of Campuses 5 5 16 32 18 Accreditation Regional Regional National National National Masters Bachelors Focus Associates Certificate Program Emphasis Business B
Slide 30: Strategy Implications: Reposition Art & Design
Strategy Implications: Reposition Art & Design for Future Growth University Population 20,300 27,300 12,700 % Online 83% 82% 10% # of Campuses 5 5 16 Accreditation Regional Regional National Masters Focus Bachelors Associates Certificate Program Emphasis Business Business Health, IT, Protective Desi
Slide 31: Strategy Implications: Well Positioned in Key Segments
Strategy Implications: Well Positioned in Key Segments University Career-focused • Significant online presence • Presence in high-demand programs • Strong position in largest growth programs • Premier brand in niche markets Largest Future Opportunities 2010 Analyst and Investor Day
Slide 32: Career Education: Path Forward
Career Education: Path Forward 2007-2008 2009 Recognize > Redefine > Reach Strengthen foundation Accelerate growth
Slide 33: Enablers for Growth
Enablers for Growth • Quality • Programs • Technology • Geographic Expansion
Slide 34: Continued Focus on Quality Outcomes
Enablers for Growth: Continued Focus on Quality Outcomes A Simplified View of Complicated Metrics University Career-focused 42% Graduation Rate 57% Graduation Rate Based on internal data available of students who graduated within 150% of the program length. University cohort is for new students star
Slide 35: Continued Focus on Quality Outcomes: Graduation and Placement
Enablers for Growth: Continued Focus on Quality Outcomes A Simplified View of Complicated Metrics University Career-focused 42% Graduation Rate /1 73% Placement Rate /2 57% Graduation Rate /1 81% Placement Rate /2 /1: Based on internal data available of students who graduated within 150% of the prog
Slide 36: Enablers for Growth: New Programs
Enablers for Growth: New Programs Program Innovation • Created Centralized Organization • Research/Opportunity Assessment • Company-wide perspective enables “Search and reapply” Research/Collaboration
Slide 37: New Programs: Accelerate Development
New Programs: Accelerate Development • CEC institutions expect to significantly increase 2010 new program introductions Transplant existing programs within institutions Augment current program areas Enter new program areas Expand into higher degrees • Developed 3-year Pipelines Number of New Program
Slide 38: New Programs: University
New Programs: University • Focus on high-demand programs across all institutions • Emphasize Bachelors and Masters to diversify degree mix Education Business Health Technology Art & Design
Slide 39: New Programs: Health Education
New Programs: Health Education Key 2008 / 2013 Revenue CAGR 2008 Revenue 2013 Revenue Certificates Associates Bachelors Masters Doctorate Career-focused Healthcare (Allied, Specialized, Alternative) 10% University-type Curricula Health (Science, Professional, Administration, Nursing) 8% Continue to
Slide 40: Enablers for Growth: Leveraging Leading Technology
Enablers for Growth: Leveraging Leading Technology • Proprietary technology • Integrated platform • Award-winning architecture 2010 Analyst and Investor Day
Slide 41: Technology: Student Platform Principles
Technology: Student Platform Principles Flexible Access Online Sessions Archived Sessions Mobile Access eBooks Virtual Labs Diagnostic Assessment Tutoring Flexible Learning Social Networking Virtual Commons Alumni Sites eMeeting Rooms Facebook Integration Virtual Classroom Financial Aid Tools Integr
Slide 42: Geographic Expansion: Health Education
Geographic Expansion: Health Education • Measured expansion into new markets 6 to 8 new campuses per year • Externship-driven • Disciplined real estate approach Research driven Minimize capital and long-term commitment Optimize footprint Number of Health Campuses 38—40 32 2008 2009 2010 Est.
Slide 43: Domestic Growth Opportunities
Domestic Growth Opportunities Program Development Degree Mix Online Geographic Expansion University Career-focused Focus on high demand programs • Business • Health • IT • Education Continue to innovate within Allied Health and expand into higher degree programs Focus on Bachelors and Masters Pursue
Slide 44: Growth Profile: University and Health
Growth Profile: University and Health 2010+ Next Level •Focus •Growth Health University $1.8 B 2009 Revenue
Slide 45: Targeted Growth Opportunity: Culinary Arts
Targeted Growth Opportunity: Culinary Arts Population 10,900 % Online <1% # of Campuses 18 Accreditation National Masters Bachelors Focus Associates Certificate Program Emphasis Culinary Arts Student Population +30% 2007 2008 2009 Continue to rebuild student population in existing markets • Premier
Slide 46: Targeted Growth Opportunity: International
Targeted Growth Opportunity: International Population 8,900 2,000 # of Campuses 9 3 Masters Bachelors Focus Associates Certificate Program Emphasis Business Design Student Population +13% 2007 2008 2009 European platform of recognized institutions • Leveraging high-quality reputation into new progra
Slide 47: Growth Profile
Growth Profile 2010+ Next Level •Focus •Growth International $3.0 B Culinary Health University $1.8 B 2009 Revenue 2014 Revenue Goal
Slide 48: Milestones
Milestones Annual Growth 2010+ 2010 2011—2014 Next Level •Focus •Growth •Value Student Population Growth 15%+ 8-10% Revenue Growth 15%+ 8-10% Operating Income Growth 40%+ 15-20%
Slide 49: Current Events – AIU Update on HLC
Current Events – AIU Update on HLC • AIU granted accreditation in May 2009 AIU was required to submit a report on curricula design and learning outcomes followed by a focused visit to assess the issue of credit equivalence • In October 2009 AIU was notified that HLC would: defer applications for new
Slide 50: Current Events Update – ED Rule Making Process
Current Events Update – ED Rule Making Process • Negotiated rulemaking process completed without resolution – ED expected to proceed with rulemaking • Proposed rules expected in next 6 months followed by comment period with: Rules expected by November 1 to be effective July 1, 2011 • Studying all 14
Slide 51: Summary
Summary • Transformed company and achieved 2010 milestones • Strong momentum entering 2010 • Well positioned in key market segments • Focused strategies to deliver next level of growth
Slide 52: Career Education
Career , EDUCATION
Slide 53: Manoj Kulkarni
Manoj Kulkarni Chief Information Officer Copyright Career Education Corporation 2010 2010 Analyst and Investor Day
Slide 54: Student Platform Principles
Student Platform Principles Enabling an Online Campus Experience Flexible Access Online Sessions Archived Sessions Mobile Access eBooks Virtual Labs Multi-media Learning Tutoring Flexible Learning Social Networking Virtual Commons Alumni Sites Meeting Rooms Facebook Integration Virtual Classroom Sup
Slide 55: Integrated Experience
Integrated Experience A Single Platform for Student Needs Throughout the Lifecycle • Online Classroom • Learning Resources • Delivering Student Services • Access to Documents • Collaboration Tools • Course Information • Multi-Channel Communication with Staff, Advisors & Faculty • Messages & Announce
Slide 56: Social Networking
Social Networking Online…But Never Alone Faculty Student Alumni
Slide 57: Social Networking
Social Networking Enabling Social Interactions and Community Building Virtual Commons Facebook Integration Alumni Community Meeting Rooms & Clubs
Slide 58: Flexible Access
Flexible Access Access to Learning Content via Different Channels – Web-based and Mobile Online and offline access to classroom Virtual classroom Session capture and retrieval Online and offline access to eBooks Mobile access to courses, resources
Slide 59: Flexible Learning
Flexible Learning Supporting Different Learning Styles and Methods with Rich Media Content and Tools Rich Collection of Learning Tools • Diagnostic assessments • Learning labs • Tutoring help Innovative Learning Options • Flexible learning model to suit learner’s preference • Simpro online simulator
Slide 60: Learning Content Choice Demo
Learning Content Choice Demo Select Content and Method of Choice • Course content design with multiple choices to suit the learner’s preference for content and learning • Choices Watch Read Hear Interact Explore Solve Practice
Slide 61: Simulation: Simpro Virtual Trainer Demo
Simulation: Simpro Virtual Trainer Demo Differentiation Through Virtual Simulation • Enabling the students to practice procedures at their convenience 24/7 Multi-media options Text 3D anatomy Video Simulation
Slide 62: Summary: Enhanced Student Experience
Summary Enhanced Student Experience Throughout Student Lifecycle Differentiators Baseline Technology Capabilities • Audio, Video & Chat-based Classroom • Discussion Boards • Plagiarism Detection • Email Integration • Career Services Online Tools • Financial Aid Online Tools • eSignature • Online lib
Slide 63: Student Technology Platform—Conclusions
Student Technology Platform—Conclusions • Robust, flexible & integrated online learning platform • Market-competitive standard features for all institutions • Differentiated learning experiences to enable student success • Focus on innovative use of online technology and tools • Ability to leverage
Slide 64: Mike Graham
Mike Graham Executive Vice President and Chief Financial Officer Copyright Career Education Corporation 2010 2010 Analyst and Investor Day
Slide 65: 2009: A Watershed Year
2009: A Watershed Year 2007-2008 2009 Recognize > Redefine > Reach Strengthen foundation Accelerate growth Revenue +11% 2005 2006 2007 2008 2009
Slide 66: Operating Margin – 2007 to 2008
Operating Margin – 2007 to 2008 4% Student Population growth –Health and CTU driven -1% Revenue decline –RPS declines offset population growth 1% Operating Expense growth –Investment to support population growth –Investment in sustainability –Peaking occupancy spend –Admissions savings Operating Mar
Slide 67: Operating Margin – 2009
Operating Margin – 2009 20% Student Population growth • Accelerating throughout the year 11% Revenue growth • Mix related RPS declines in 1st half of 2009 4% Operating Expense growth • Investment to support population growth • Occupancy fixed cost leverage • Admissions efficiency Operating Margin 13
Slide 68: Operating Expenses
Operating Expenses (% of Revenue) *Previous 2010 Milestone 2009 Education Services and Facilities 33% 32% Bad Debt 3% 4% Administrative 21% 20% Advertising and Admissions 26% 27% 2010 Analyst and Investor Day * Communicated at Investor Day March 18, 2008
Slide 69: Real Estate Optimization
Real Estate Optimization Square Feet per Student 2007 2008 Continuing Operations Transitional & Discontinued Operations 2009 Released Real Estate ‘000’s of Square Feet
Slide 70: Student Payment Performance
Student Payment Performance Bad Debt Expense—% of Revenue Cohort Default Rate* 3.1% 2.6% 2.6% 2007 2008 2009 20.9% 3-Year 19.6% 18.0% 10.6% 10.0% 2-Year 9.1% 8.4% 2005 2006 2007 2008 * Total Company, includes transitional schools and discontinued operations
Slide 71: Administrative Expenses: Evolving With the Organization
Administrative Expenses: Evolving With the Organization • Centralizing existing resources for scale: Financial Aid IT Human Resources • Investing in new areas to support sustainable growth: Program Innovation Alumni Relations Career Services • Business cost allocation will be changed to reflect usag
Slide 72: Advertising and Admissions Expense
Advertising and Admissions Expense Cost Per New Student Start Admissions Cost Per Start Down 28% Transition to Peer model complete in 2009 Advertising Cost Per Start Flat Remain weighted toward lead aggregator spend $2,276 $2,481 2007 $1,937 $2,456 2008 $1,621 $2,461 2009
Slide 73: Stabilizing Revenue Per Student
Stabilizing Revenue Per Student Revenue Per Student (4%) (4%) 2007 2008 2009 Revenue Per Student Year-Over-Year Change (7%) (3%) (2%) 0% Q109 Q209 Q309 Q409
Slide 74: Balanced Growth Exiting 2009
Balanced Growth Exiting 2009 Student Population Growth Revenue Growth Q109 Q209 Q309 Q409 Q109 Q209 Q309 Q409 University 11% 16% 19% 20% 7% 13% 20% 22% Health 18% 28% 30% 31% 11% 23% 29% 29% Culinary -11% 0% 20% 31% -14% -5% 7% 18% Art & Design -6% 8% 13% 4% -10% 1% 7% 3% International * 19% 25% 11%
Slide 75: Accelerating Revenue Growth
Accelerating Revenue Growth Revenue Growth -2% Q408 0% Q109 8% Q209 16% Q309 19% Q409 New Student Starts Year-Over-Year Growth * 20% Q309 21% Q409 25%+ Q110 Est * Excludes IADT calendar shifts
Slide 76: Operating Expense Outlook
Operating Expense Outlook (% of Revenue) 2009 2010 to 2014 Educational Services and Facilities 33% • Invest in academics to support growth • Real estate optimization/fixed-cost leverage Bad Debt 3% • Modest increase with Culinary growth Administrative 21% • Invest in student facing services to suppo
Slide 77: New 2010 Milestones
New 2010 Milestones 2009 Operating Income Reconciliation $223 2009 As Reported $29 Significant Items $252 2009 Pro-Forma (In Millions) Pro-Forma 2009 New 2010 Milestone Revenue $1,836 15%+ Student Population 105,400 15%+ Operating Income $252 $350-$370 Operating Margin 13.7% 17.0% to 17.5%
Slide 78: 2010 Operating Margin
2010 Operating Margin Revenue growth accelerates •Balanced growth Operating Expenses •Efficiency Gains Fixed-cost leverage Advertising efficiency •Investments to 8 additional Health start-ups Chicago area Real Estate Consolidation Operating Margin 13.7% 9.2% 8.6% 17.0% to 17.5% 2007 2008 2009 2010 2
Slide 79: New Financial Reporting Structure
New Financial Reporting Structure 2009 Results University Health
Slide 80: New Financial Reporting Structure: New Segments
New Financial Reporting Structure New Segments University Health
Slide 81: Shared Services Allocation Changes
New Financial Reporting Structure Shared Services Allocation Changes $65 2009 Corporate Expense Previously Reported $17 to Health $12 to University $3 to Culinary $1 to Transitional $32 2009 Corporate Expense New Structure
Slide 82: 2009 Recasted Results
New Financial Reporting Structure 2009 Recasted Results ($ In Millions) University Health Culinary International Corporate Population 59,300 24,200 10,900 10,900 % Online 69% <1% <1% # of Campuses 26 34 18 Revenue $1,018 $363 $332 $121 Operating Income* $206 $46 $20 $19 ($32) Operating Margin 20.2%
Slide 83: University
University ($ in Millions) 2009 Versus 2008 2010 Target Revenue $1,018 +12% High Teens Student Population 59,300 +17% Operating Income $206 +58% Operating Margin 20.2% +5.9pts Low 20’s 2011+ Sustainable Growth 2010 Repositioning Align Art & Design Accelerated program development Brand segementation
Slide 84: University: Advertising Cost Per New Student Start
University Advertising Cost Per New Student Start Process Gains Admissions Efficiency Diversify Lead Mix Branding Lifetime Value Higher Degree Higher Retention University Advertising Mix 2009 Student Inquiries Internet Other
Slide 85: University by Institution
University by Institution Revenue Growth 30% 20% 10% 0% (10%) Mid single digit Flat 2010 2009 1% 12.0% (4%) 2008 10.5% 10% 20% Operating Margin 30% Key 9% Revenue Growth 23.4% Operating Margin Relative size – ‘09 Rev
Slide 86: University by Institution
University by Institution Revenue Growth 30% 20% 10% 0% (10%) 2009 25% 22.2% 2010 High 20’s Mid 20’s 2008 10% 17.0% Mid single digit Flat 2010 2009 1% 12.0% (4%) 2008 10.5% 10% 20% Operating Margin 30% Key 9% Revenue Growth 23.4% Operating Margin Relative size – ‘09 Rev 2010 Analyst and Investor Day
Slide 87: University by Institution
University by Institution Revenue Growth 30% 20% 10% 0% (10%) High 20’s Mid 20’s 2010 2009 25% 22.2% 2010 High Teen’s High 20’s 2008 10% 17.0% 9% 23.2% 2009 Mid single digit Flat 2010 2009 1% 12.0% (4%) 2008 10.4% (6%) 14.7% 2008 10% 20% Operating Margin 30% Key 9% Revenue Growth 23.4% Operating Mar
Slide 88: Health Education
Health Education • Existing campus growth flattens in 2010 • 6 to 8 additional start-up campuses Start-Up operating loss peaks in 2010 Drives growth in 2011 and beyond ($ In Millions) 2009 Versus 2008 2010 Target Revenue $363 +18% High Teens Student Population 24,200 +27% Operating Income $46 +171%
Slide 89: Culinary Arts
Culinary Arts • Population growth offset by RPS impact of shift toward 21-month program • $8-9 million of LCB royalty benefit in 2010 • Further real estate optimization in 2010 ($ In Millions) 2009 Versus 2008 2010 Target Revenue $332 +1% High single digit Student Population 10,900 +31% Operating In
Slide 90: International
International • Double-digit population growth expected to continue • Leveraging Real Estate investments in 2010 • INSEEC investing in higher accreditation ($ In Millions) 2009 Versus2008 2010 Revenue $121 +13% High Teens Student Population 10,900 +13% Operating Income $19 -% Operating Margin 15.6%
Slide 91: Long-term Milestones
Long-term Milestones • 8 – 10% Annual Revenue growth • 100 to 200 basis points of margin improvement per year • 2014 target financial milestones $3 Billion in Revenue Low 20’s operating margin Operating Margin +100 to 200 bp Annually 13.7% 17.0% to 17.5% 9.2% 8.6% 2007 2008 2009 2010 2011+ 2010 Anal
Slide 92: Long-term Milestones
Long-term Milestones Annual Revenue Growth International 8-10% Low 20’s% 2014 Target Operating Margin 2010 Analyst and Investor Day
Slide 93: Continue to Generate Strong Cash Flow
Continue to Generate Strong Cash Flow (in millions) 2007 2008 2009 Cumulative Net Cash Provided by Operating Activities $222 $187 $288 $697 Capex—Maintenance (57) (50) (57) (186) Sub Total 165 137 231 533 Capex—Strategic Investments (1) (4) (17) (22) Acquisitions (32) — (26) (61) Share Repurchases (
Slide 94: Uses of Cash
Uses of Cash High ROI Strategic Investments $85 million in 2010 • Health Education Start-Ups • Chicago-area Real Estate consolidation • Culinary Real Estate optimization Share Repurchase • Remain committed to returning excess cash to shareholders • $250 million in new authorization • $405 million to
Slide 95: CEC Strategic Summary
CEC Strategic Summary Growth + Focus = Value Strong Market Trends Enhance Program Development Investment in Leading IT Platform Utilize Scale & Resources Accelerate M & A and Geographic Expansion Continue Culture of Quality and Compliance Intentional Portfolio Choices Improved Marketing Effectivenes
Slide 96: Questions and Answers
Questions and Answers
Slide 97: CEC Strategic Summary
CEC Strategic Summary Growth + Focus = Value Strong Market Trends Enhance Program Development Investment in Leading IT Platform Utilize Scale & Resources Accelerate M & A and Geographic Expansion Continue Culture of Quality and Compliance Intentional Portfolio Choices Improved Marketing Effectivenes
Slide 98: Statement of Purpose
Statement of Purpose To change lives through education.
Slide 99: Thank You!
Thank You! Copyright Career Education Corporation 2010