Perdoceo Education Corporation · NASDAQ:PRDO
Perdoceo Education — Career Education — Credit Suisse Global Services Conference 2011
19 slides from Perdoceo Education's conference presentation, Mar 15, 2011
Slide 1: Credit Suisse Global Services Conference
Credit Suisse Global Services Conference March 15, 2011 Exhibit 99.1
Slide 2: Gary E. McCullough, President and Chief Executive Officer
Gary E. McCullough President and Chief Executive Officer
Slide 3: 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 4: 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 5: Career Education Overview
Career Education Overview Purpose: To change lives through education Purpose: To change lives through education Nearly 117,000 Students Over 500,000 Graduates 21 to 30 42% Under 21 16% Over 30 42% Students by Age Bachelors 31% Masters 6% Certificate 21% Associates 42% Students by Degree Type Note: D
Slide 6: Career Education: Diversified Portfolio
Career Education: Diversified Portfolio Population 30,900 20,000 12,300 % Online 83% 84% N/A # of Campuses Accreditation Regional Regional Various European Program Emphasis Business, IT, Health, Protective Services Business, IT Education, Protective Services Business, Design Bachelors Masters Certif
Slide 7: Career Education: Diversified Portfolio
Career Education: Diversified Portfolio Population 29,000 13,100 11,500 % Online <1% 2% 16% # of Campuses Accreditation National National National Program Emphasis Health Culinary Design, Photography Bachelors Masters Certificate Associates Career-Focused TM Note: Demographics and student population
Slide 8: 2008 – 2010: Key Accomplishments
2008 – 2010: Key Accomplishments Grew Revenue 28% Increased Student Population 19% from 98,000 to nearly 117,000 Expanded Operating Margins 820 basis points to 17.1% EPS growth of 142% Cumulative Free Cash Flow of approximately $500M since 2008 (2) Transformed Company Culture and Values Revenue Tren
Slide 9: 2010 Performance Highlights
2010 Performance Highlights Focus on Student Success Growth with Disciplined Investment Operational Effectiveness Strong Balance Sheet Required completion of College Prep Course for online students Increased Career Services personnel by 21%; Academics by 17% Placement in line with 2009 Developed mod
Slide 10: Regulatory Environment
Regulatory Environment Remain hopeful the Department will make constructive changes to proposed rules Overwhelming response to the DoE on Gainful Employment Awaiting “Dear Colleague” letter for Incentive Compensation Clarity Conflicting rules which require institutions to “thread the eye of the need
Slide 11: Career Education Corporation
career EDUCATION CORPORATION” CHANGING LIVES TE EDUCATION
Slide 12: Mike Graham, EVP & Chief Financial Officer
Mike Graham EVP & Chief Financial Officer
Slide 13: 2010 Operating Margin
2010 Operating Margin Disciplined Approach Health Start-Ups M&A Increase in Career Services & Academics Responsive to Market Conditions Shared Services Fixed & Metric based reductions Modified Culinary Model Ended Extended Student Payment Programs for New Students Adjusted Operating Income (Margin %
Slide 14: Culinary Model
Culinary Model 2010 Highlights More Sustainable Positioning Key Changes Grew student population by 20% Increased adjusted operating margin by 560 basis points to 11.5% Leverage strong kitchen curriculum Competitive tuition between higher priced institutions and tax payer subsidized community college
Slide 15: Uses of Cash
Uses of Cash • Remain Committed to Returning Cash to Shareholders • As of March 4, 2011, $201M authorization remaining • High Return Projects • Health Education Start Ups • Completion of Chicago-area Real Estate optimization • Critical Student Services – Faculty, Career Services, IT Systems • Mainta
Slide 16: 2011 Milestones
2011 Milestones 2010 Results 2011 Milestones Revenue ($B) $2.12 (2% - 5%) Operating Income ($M) $363 Operating Margin: GAAP % 11.6% Normalized % 17.1% 14% - 16%
Slide 17: IRPORATION™
IRPORATION™ EDUCATI
Slide 18: Appendix: GAAP to NON GAAP
Appendix: GAAP to NON GAAP Unaudited Reconciliation of GAAP to Non-GAAP Items (1) (In millions, except per share amounts) 2008 2009 2010 Operating Earnings per Operating Earnings per Operating Earnings per Income Diluted Share (2) Income Diluted Share (2) Income Diluted Share (2) As Reported $114.8
Slide 19: Appendix: GAAP to NON GAAP
Appendix: GAAP to NON GAAP Footnotes: (4) A $40.8 million charge was recorded in 2010 and $6.3 million, net in 2008 related to the settlements of legal matters within Culinary Arts and Health Education. (5) The 2009 performance-based compensation related to plan outperformance by segment was: Corpor
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