Perdoceo Education Corporation · NASDAQ:PRDO
Perdoceo Education — Career Education — Investor Presentation (November 2008)
25 slides from Perdoceo Education's investor presentation, Nov 20, 2008
Slide 1: Signal Hill Education Preview
© Career Education Corporation 2008 Career Education Corporation EXHIBIT 99.1 © Career Education Corporation 2008 Career Education Corporation Signal Hill Education Preview Signal Hill Education Preview November 20, 2008 November 20, 2008
Slide 2: Gary E. McCullough, President and Chief Executive Officer
© Career Education Corporation 2008 Gary E. McCullough PRESIDENT AND CHIEF EXECUTIVE OFFICER CAREER EDUCATION CORPORATION © Career Education Corporation 2008 Gary E. McCullough PRESIDENT AND CHIEF EXECUTIVE OFFICER CAREER EDUCATION CORPORATION
Slide 3: 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 available to us currently. Some
Slide 4: Non-GAAP financial measures notice
The Company has included some non-GAAP financial measures in this presentation to discuss the Company's financial results. As a general matter, the Company uses these non-GAAP measures in addition to and in conjunction with results presented in accordance with GAAP. Among other things, the Company m
Slide 5: Career Education Overview: Our Mission
A global educational company committed to quality outcomes and career opportunities for a diverse student population Career Education Overview Career Education Overview Our Mission: A global educational company committed to quality outcomes and career opportunities for a diverse student population O
Slide 6: A Leading For-Profit Post Secondary Education Company
A Leading For-Profit Post Secondary Education Company $1.7 Billion Over 90,000 students *Demographics as of September 30, 2008 Students by Degree Type Associate 46% Certificate 17% Bachelor, Master, Doctorate 37% Students by Delivery Method Online 42% Ground 58% Career Education Overview Career Educ
Slide 7: Growth and challenges 2008 - 2009
+ Growth orientation + Online entry + High cost structure | + Significant real estate investment + Legal/Regulatory Issues * Slowing growth + Margin pressure + Unprofitable businesses 2008 - 2009
Slide 8: -—mEU
-—mEU
Slide 9: -—mEU
-—mEU
Slide 10: An Inflection Point in Our History
Strengthen Foundation Accelerate Growth New Management Team An Inflection Point in Our History An Inflection Point in Our History Transform Transform Strengthen Foundation Accelerate Growth Retrenchment Retrenchment Acquire/ Acquire/ Build Build High High Performance Performance
Slide 11: Competitive Strengths
Strong core institutions… delivering quality outcomes Leading on-line platform Broad geographic presence Strong balance sheet Proven growth capability Competitive Strengths Competitive Strengths Strong core institutions… delivering quality outcomes Leading on-line platform Broad geographic presence
Slide 12: Strong Core Institutions
Strong Core Institutions . . . Strong Core Institutions . . . Leading network of allied health schools Leading network of allied health schools National network of culinary schools National network of culinary schools Multi-national online and on-ground schools Multi-national online and on-ground sc
Slide 13: Delivering Quality Outcomes
“PAE Elite Twenty Program” Council of College and Military Educators 2007 Institution Award Wounded Warrior Scholarship Program Exceeded all benchmarks in the 2007 Noel-Levitz Priorities Survey for Online Learners Brian Williams – Leader of Culinary Arts Business Unit, graduate of AIU First to offer
Slide 14: Student-Centric On-Line Platform
Virtual Campus and full student services Proprietary learning management systems Rich online collaboration tools Access to the Virtual Campus using mobile devices Source: Echo Research AIU Online Brand Research 2008 Student-Centric On-Line Platform Student-Centric On-Line Platform Virtual Campus and
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Slide 16: Strong Balance Sheet
Flexibility to absorb challenges along the way… /1 Free Cash Flow = Operating Cash Flow less Capital Expenditures Strong Balance Sheet Strong Balance Sheet Flexibility to absorb challenges along the way…
Slide 17: Proven Growth Capability
Proven Growth Capability Proven Growth Capability
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Slide 20: Transformation Underway
Unsustainable growth Low margins Sustainable growth Margin expansion . . . Unlocking sustainable growth potential Improve Organizational Effectiveness Targeted Growth Strategies Reputation Overhang Inefficient Brand Structure Independent Institutions/ Operations Performance Variability 2007 and Befo
Slide 21: Strategic Business Units
TM 3 4 2 44,800 17,200 9,700 77% - - 11 24 5 14,000 4% 14 2 10,300 - 16 11 TM Strategic Business Units Strategic Business Units International International Health Education Health Education University University Core Institutions Total Brands Enrollment /1 % Online Ground Locations Art & Design Art
Slide 22: 2008: Nine Months Results
Segment Performance Versus Plan Comment Health + Strong organic start growth International + University = CTU: double digit start and population growth AIU: stabilizing Culinary - Transition to new student loan environment… new process in place Art & Design - Transitional Schools + Accelerated progr
Slide 23: Growth Strategy
Technology Consolidate Strengthen local relationships Retention and placement Align Leverage quality and diversity Longer Programs Consolidate Leverage Brand consolidation Local support Optimize Renewal Optimize Value Proposition Growth Strategies Growth Strategy Growth Strategy Art & Design Art & D
Slide 24: Financial Expectations
($ millions) 2007 Pro Forma 2010 Milestone Revenue $1,635 6% - 8% CAGR $1,950 - $2,050 Operating Income $151 Low to Mid Teens $225 - $270 Transitional Schools Operating Income N/A Total $65 $210 - $255 Est. Free Cash Flow $166 $195 - $235 Financial Expectations Financial Expectations ($ millions) Re
Slide 25: Summary
Leverage-able competitive strengths Transformation well underway Strategies in place to deliver sustainable earnings growth Performance on track in 2008 Summary Summary Leverage-able competitive strengths Transformation well underway Strategies in place to deliver sustainable earnings growth Perform
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