Perdoceo Education Corporation · NASDAQ:PRDO
Perdoceo Education — Career Education — BMO Capital Markets Back to School Education Conference 2010
20 slides from Perdoceo Education's conference presentation, Sep 16, 2010
Slide 1: Career Education Corporation BMO Capital Markets Back to School Education Conference
Career Education Corporation BMO Capital Markets Back to School Education Conference September 16, 2010 Copyright Career Education Corporation 2010 Exhibit 99.1
Slide 2: Gary E. McCullough, President and Chief Executive Officer
Gary E. McCullough President and Chief Executive Officer Copyright Career Education Corporation 2010
Slide 3: Career Education Overview
Career Education Overview Purpose: To change lives through education. Purpose: To change lives through education. Bachelors 28% Masters 4% Certificate 24% Associates 44% 21 to 30 43% Under 21 16% Over 30 41% Students by Degree Type Students by Age *Demographics as of December 31, 2009 *Student Popul
Slide 4: Career Education: Diversified Institutions
Career Education: Diversified Institutions Population 61,000 28,600 12,100 2,800 % Online 75% <1% <1% N/A # of Campuses Accreditation Regional National National Program Emphasis Business, IT Health, Design, Protective Health Culinary Business, Design Bachelors Masters Certificate Associates Universi
Slide 5: Business Results Continue to Improve, Well Positioned for Future
Business Results Continue to Improve, Well Positioned for Future $1.66 $1.84 2008 2009 2010 E Revenue (In Billions) 15%+ Remain on pace to achieve operating performance improvement outlined in February 2010 Analyst and Investor Day Operating Income (In Millions) $350 - $370 $143 $252 2008 2009 2010
Slide 6: CEC Strategy Focus+Growth = Value
CEC Strategy Focus+Growth = Value Focus+Growth = Value
Slide 7: Summary
CEC Strategic Summary Operational Focus Solid Demand Enhance Program Development Investment in Leading IT Platform Utilize Scale & Resources Accelerate M & A and Geographic Expansion Growth Elements Continue Culture of Quality and Compliance Intentional Portfolio Choices Improve Marketing Effectiven
Slide 8: Summary: Focus
CEC Strategic Summary: Focus Focus Continue Culture of Quality and Compliance Intentional Portfolio Choices Improve Marketing Effectiveness Improve Human Capital Management • New Student Orientation Programs • College Preparatory Course • 98% AIU/CTU Faculty have Masters/Doctoral Degrees • Employmen
Slide 9: Summary: Focus
CEC Strategic Summary: Focus Focus Continue Culture of Quality and Compliance Intentional Portfolio Choices Improve Marketing Effectiveness Improve Human Capital Management • Programs aligned with expected job growth • Business • IT • Healthcare
Slide 10: Summary: Focus
CEC Strategic Summary: Focus Focus Continue Culture of Quality and Compliance Intentional Portfolio Choices Improve Marketing Effectiveness Improve Human Capital Management • Compliance • Lifetime Value Model • Student Interest Inquiry Model
Slide 11: Summary: Focus
CEC Strategic Summary: Focus Focus Continue Culture of Quality and Compliance Intentional Portfolio Choices Improve Marketing Effectiveness Improve Human Capital Management • Significant reduction in employee turnover • Increase in employee training and instruction
Slide 12: Summary: Growth
CEC Strategic Summary: Growth Growth Solid Demand Enhance Program Development Investment in Leading IT Platforms Utilize Scale & Resources Accelerate M & A and Geographic Expansion • Unmet student needs • “Working Adult” segment expected to grow twice the rate of traditional • Launched over 90 new p
Slide 13: Summary
CEC Strategic Summary Focus Solid Demand Enhance Program Development Investment in Leading IT Platform Utilize Scale & Resources Accelerate M & A and Geographic Expansion + Growth Continue Culture of Quality and Compliance Intentional Portfolio Choices Improve Marketing Effectiveness Improve Human C
Slide 14: Mike Graham, Executive Vice President and Chief Financial Officer
Mike Graham Executive Vice President and Chief Financial Officer Copyright Career Education Corporation 2010
Slide 15: 2010 First Half Performance
2010 First Half Performance Well positioned to achieve 2010 milestones Well positioned to achieve 2010 milestones established at February Analyst and Investor Day established at February Analyst and Investor Day • Nearly 20,000 Graduates YTD* • 22% Increase in Student Population • 720 Basis Point In
Slide 16: Slide 16
Slide 17: 2010 Operating Margin
2010 Operating Margin Revenue growth accelerates • Balanced growth across key segments with strong student outcome prospects • Spent over $635 million over the last twelve months on Educational Services and Facilities Operating Expenses • Efficiency Gains - Fixed-cost leverage - Advertising efficien
Slide 18: Delivery, Infrastructure, Growth
Career r EDUC Intentional Portfolio Choices Delivery Infrastructure Growth + $250 million to teach-out Transitional Schools since 2008, until last student graduated + $63 million in real estate charges accrued to cover cash outflow over roughly the next 9 years. * $94 million in Capital Expenditures
Slide 19: Gainful Employment
Gainful Employment • Proposed rules are highly complex • Conflicting Regulations • Potentially establishes price controls • Requires “threading the eye of the needle” • Limited institutional control due to over stipending of students limits • Retroactive application • Practical limitations to implem
Slide 20: Thank You!
Thank You! Copyright Career Education Corporation 2010 Thank You!
Career Education — BMO Capital Markets Back to School Education Conference 2010 on 6ix