Perdoceo Education Corporation · NASDAQ:PRDO
Perdoceo Education — Career Education — Q4 2016 Earnings Presentation
15 slides from Perdoceo Education's earnings presentation, Feb 23, 2017
Slide 1: Fourth Quarter 2016 Investor Conference Call
CAREER EDUCATION CORPORATION FOURTH quarter 2016 investor conference call FEBRUARY 23, 2017 A.J. Cederoth Chief Financial Officer Ashish Ghia Vice President, Finance Todd Nelson President & Chief Executive Officer Exhibit 99.2
Slide 2: Cautionary Statements
This presentation contains “forward-looking statements,” as defined in Section 21E of the Securities Exchange Act of 1934, as amended, that reflect our current expectations regarding our future growth, results of operations, cash flows, performance and business prospects and opportunities, as well a
Slide 3: Agenda
Agenda The Year in Review Fourth Quarter Highlights Detailed Financial Results Balance Sheet and Liquidity Review Outlook CEO Closing Remarks
Slide 4: Financial Results – Consolidated CEC
Financial Results – Consolidated CEC Charges of $10.0 million and $22.0 million were recorded within AIU during the fourth quarter of 2016 related to a legal settlement and associated third party legal fees, respectively. Please refer to slides 11 - 13 at the end of this presentation for a GAAP to n
Slide 5: Financial Results – University Group
Financial Results – University Group Charges of $10.0 million and $22.0 million were recorded within AIU during the fourth quarter of 2016 related to a legal settlement and associated third party legal fees, respectively. New student enrollments were positively impacted by a change to how the Compan
Slide 6: Financial Results - Culinary Arts & Transitional
Financial Results - Culinary Arts & Transitional PHASE DOWN OF CAMPUSES IN TEACH-OUT Total enrollments are disclosed as of the end of each period presented. Teach-out dates are estimated based on current student enrollment and are subject to change. Campuses at Beginning of each Quarter(2) Q4 2015 Q
Slide 7: 2017 Outlook – Operating Income and Adjusted Operating Income
2017 Outlook – Operating Income and Adjusted Operating Income 2017 Outlook will transition from adjusted EBITDA to operating income and adjusted operating income Adjusted EBITDA was a useful measure while we still had significant teach-out operations, as it eliminates certain items that we do not co
Slide 8: Outlook Update – Analysis of Adjusted Operating Income
Outlook Update – Analysis of Adjusted Operating Income Estimated outlook is based on assumptions listed on slide 10 See slides 14 -15 for a GAAP to non-GAAP reconciliation of adjusted operating income (loss) Unused space charges represent the net present value of remaining lease obligations for vaca
Slide 9: Outlook Update – Analysis of Adjusted Operating Income and Cash
2017 outlook of $150M-$160M includes payments for a settlement and third party legal fees recorded during 2016, excluding which, the 2017 cash outlook would be ahead of our previously provided outlook Cash balances are expected to increase in 2018 as lease obligations start to ramp down and working
Slide 10: Outlook Assumptions
Outlook Assumptions Achievement of the outlook included within these slides are based on the following key assumptions and factors, among others: Modest total enrollment growth within the University Group while achieving the intended University Group efficiencies Teach-outs to progress as expected a
Slide 11: Reconciliation of GAAP to Non-GAAP Items – Adjusted EBITDA
Reconciliation of GAAP to Non-GAAP Items – Adjusted EBITDA CAREER EDUCATION CORPORATION AND SUBSIDIARIES UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1) (In thousands) For the Quarter Ended December 31, For the Year Ended December 31, Adjusted EBITDA 2016 2015 2016 2015 University Group and C
Slide 12: Reconciliation of GAAP to Non-GAAP Items – Adjusted EBITDA cont’d
Reconciliation of GAAP to Non-GAAP Items – Adjusted EBITDA cont’d (1) The Company believes it is useful to present non-GAAP financial measures which exclude certain significant items as a means to understand the performance of its operations. As a general matter, the Company uses non-GAAP financial
Slide 13: Reconciliation of GAAP to Non-GAAP Items – Adjusted EBITDA cont’d
Reconciliation of GAAP to Non-GAAP Items – Adjusted EBITDA cont’d (2) (Loss) income from continuing operations and (loss) income from discontinued operations make up the components of net (loss) income. A reconciliation of these components for the quarters and years ended December 31, 2016 and Decem
Slide 14: Reconciliation of GAAP to Non-GAAP Items – Adjusted Operating Income (Loss)
Reconciliation of GAAP to Non-GAAP Items – Adjusted Operating Income (Loss) CAREER EDUCATION CORPORATION AND SUBSIDIARIES UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1) (In thousands) ACTUAL RESULTS OUTLOOK For the Year Ended December 31, For the Year Ended December 31, Adjusted Operating In
Slide 15: Reconciliation of GAAP to Non-GAAP Items – Adjusted Operating Income (Loss) cont’d
Reconciliation of GAAP to Non-GAAP Items – Adjusted Operating Income (Loss) cont’d CAREER EDUCATION CORPORATION AND SUBSIDIARIES UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1) (In thousands) ACTUAL RESULTS OUTLOOK For the Year Ended December 31, For the Year Ended December 31, Adjusted Opera