Perdoceo Education Corporation · NASDAQ:PRDO
Perdoceo Education — Career Education — Barclays Capital Global Services Conference 2011
20 slides from Perdoceo Education's conference presentation, May 12, 2011
Slide 1: Barclays Capital Global Services Conference
Exhibit 99.1 Barclays Capital Global Services Conference May 12, 2011
Slide 2: Gary E. McCullough, President and Chief Executive Officer
Gary E. McCullough President and Chief Executive Officer
Slide 3: 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 4: 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 5: Career Education Overview
Career Education Overview Purpose: To enhance lives through education Over 119,000 Students Over 500,000 Graduates Students by Degree Type Students by Age Associates Certificate 39% 22% Under 21 15% Masters 21 to 30 43% 7% Over 30 42% Bachelors 32% Note: Demographics and student population data as o
Slide 6: Career Education: Diversified Portfolio
Career Education: Diversified Portfolio University Population 29,100 22,500 10,800 % Online 82% 83% N/A # of Campuses 5 5 13 Accreditation Regional Regional Various European Masters Bachelors Associates Certificate Business, IT Business, IT, Health, Program Emphasis Education Business, Design Protec
Slide 7: Career Education: Diversified Portfolio
Career Education: Diversified Portfolio Career-Focused Population 31,300 13,500 11,900 % Online <1% 3% 18% # of Campuses 39 18 14 Accreditation National National National Masters Bachelors Associates Certificate Program Emphasis Health Culinary Design, Photography Note: Demographics and student popu
Slide 8: 2008 – 2010: Key Accomplishments
2008 – 2010: Key Accomplishments Revenue Trend ($B) & Grew Revenue 28% Adjusted Margin (%) (1) Increased Student Population 19% from $2.12 98,000 to nearly 117,000 17.1% $1.83 Expanded Operating Margins 820 basis points to 17.1% $1.66 14.1% EPS growth of 142% Cumulative Free Cash Flow of 8.9% approx
Slide 9: LTM Highlights Ending March 31, 2011
LTM Highlights Ending March 31, 2011 Focus on Student Increased Career Services personnel by 14%; Academics by 12% 2010 placement rates in line with 2009 Success Grew Student Population to approximately 119,000 Growth with Opened four Allied Health schools Disciplined Improved operating margins 390
Slide 10: Regulatory Environment
Regulatory Environment Remain hopeful the Department will make constructive changes to proposed rules Overwhelming response to the DoE on Gainful Employment Await details of new rule pending recent submission and review by OMB Conflicting rules which require institutions to “thread the eye of the ne
Slide 11: Why CEC? Diversified Model, Disciplined Approach
Why CEC? Diversified Model Disciplined Approach University, Health Education, Culinary Arts, “Build” versus “Buy” for expansion Art & Design Select strategic M&A Focus on programs with strong outcomes Shared Services/ proactive cost management Strong European platform Online education remains fastes
Slide 12: Mike Graham, EVP & Chief Financial Officer
Mike Graham EVP & Chief Financial Officer
Slide 13: Operating Margin
Operating Margin Disciplined Approach Adjusted Operating Income Health Start-Ups (Margin %) (1) 17.1% M&A Increase in Career Services & 14.1% +300 bps Academics +520 bps 8.9% Responsive to Market Conditions Shared Services Fixed & Metric based Reductions 2008 2009 2010 Modified Culinary Model Ended
Slide 14: Q1 2011 Performance
Q1 2011 Performance Revenue ($M) & EPS Grew Revenue by 3% Growth (YoY) Operating income of $113M, up 27% $543 versus Q1 2010 20.8% Operating profit margin of 20.8%, 390 basis points above last year $529 Student Population of approximately 16.9% 119,000 Earnings Per Share increased 44% Q1 2010 Q1 201
Slide 15: Culinary Model
Culinary Model 2010 Grew student population by 20% Highlights Increased adjusted operating margin by 560 basis points to 11.5% More Sustainable Leverage strong kitchen curriculum Positioning Competitive tuition between higher priced institutions and tax payer subsidized community colleges Ended stud
Slide 16: Uses of Cash
Uses of Cash High ROI Strategic Investments Strong Balance Sheet • High Return Projects • Maintain appropriate ED ratios • Health Education Start Ups • Limited Future Receivable Growth • Completion of Chicago-area Real Estate from Extended Payment Plans optimization • Disciplined Capital Expenditure
Slide 17: 2011 Milestones
2011 Milestones 2010 Results 2011 Milestones Revenue ($B) $2.12 (2% -5%) Operating Income ($M) $363 Operating Margin: GAAP % 11.6% Normalized % 17.1% 14% -16%
Slide 18: Questions?
® carcie EDUCATION CORPORATION™ QUESTIONS?
Slide 19: Appendix: GAAP to NON GAAP
Appendix: GAAP to NON GAAP (1) UnauditedReconciliation of GAAPto Non-GAAPItems (In millions, except per share amounts) 2008 2009 2010 Operating Earnings per Operating Earnings per Operating Earnings per (2) (2) (2) Income Diluted Share Income Diluted Share Income Diluted Share As Reported $114.8 $1.
Slide 20: 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 outperformanceby segmentwas: Corporate-
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