Perdoceo Education Corporation · NASDAQ:PRDO
Perdoceo Education — Career Education — Q3 2014 Earnings Presentation
15 slides from Perdoceo Education's earnings presentation, Nov 6, 2014
Slide 1: Third Quarter 2014 Investor Conference Call
CAREER EDUCATION CORPORATION THIRD QUARTER 2014 INVESTOR CONFERENCE CALL NOVEMBER 6, 2014 Reid Simpson Senior Vice President & Chief Financial Officer Scott Steffey President & Chief Executive Officer Exhibit 99.2
Slide 2: Strengthen Academic Outcomes, Enhance Regulatory Compliance and Simplify Business Model
Strengthen Academic Outcomes, Enhance Regulatory Compliance and Simplify Business Model Strengthen Academic Outcomes • Intelli path adaptive learning tool is driving students to engage more in their learning. • Significant increase in student pass rates. Enhance Regulatory Compliance • Higher Learni
Slide 3: Sequential Improvement in Decline of Total Student Enrollments - University
Sequential Improvement in Decline of Total Student Enrollments - University Q3 ‘13 Q4 ‘13 Q1 ‘14 Q2 ’14 Q3 ‘14
Slide 4: Total Student Enrollments - University
Total Student Enrollments - University 31,300 32,500 32,400 33,900 30,600 (1) AIU had three start dates in 1Q 2014 and two start dates in 2Q 2014 which explains why there is a spike in total enrollments in 1Q 2014 and a corresponding decrease in 2Q 2014. All other periods each had two AIU start date
Slide 5: Total Student Enrollments – University (Online Only)
Total Student Enrollments – University (Online Only) 28,300 28,700 28,600 30,200 28,600 (1) AIU had three start dates in 1Q 2014 and two start dates in 2Q 2014 which explains why there is a spike in total enrollments in 1Q 2014 and a corresponding decrease in 2Q 2014. All other periods each had two
Slide 6: Total Student Enrollments – Career Schools
Total Student Enrollments – Career Schools 19,200 17,900 19,100 16,600 20,100 (1) Culinary Arts had a shift in start dates as compared to the prior year, therefore Q3 2014 had an additional start which was reflected in Q4 2013 in the prior year.
Slide 7: Reduce Organizational Cost Structure – Progress Underway
Reduce Organizational Cost Structure – Progress Underway $1,542 $1,272 Reduced by $212 million Operating Expenses ($ millions) FY 2012 & FY 2013 data as reported in the Company’s 2013 10-K and based on schools that were in continuing operations at 12/31/13. YTD 3Q 2013 and YTD 3Q 2014 data as report
Slide 8: Phase Down of Transitional School Campuses
Phase Down of Transitional School Campuses (1) Taught out 3 campuses and announced 3 additional campuses for teach-out during 3Q
Slide 9: Adjusted EBITDA – Ongoing Operations
Adjusted EBITDA – Ongoing Operations Q1 ‘14 Q2 ‘14 Q3 ‘14 Q4 ’14 FY ‘15 ACTUALS PROJECTED Trailing Twelve Months Adjusted EBITDA Numbers exclude significant items (including Transitional Schools) as disclosed in the Non-GAAP reconciliation at the end of these slides.
Slide 10: Adjusted EBITDA – Transitional & Discontinued Operations
Adjusted EBITDA – Transitional & Discontinued Operations Q1 ‘14 Q2 ‘14 Q3 ‘14 Q4 ’14 FY ‘15 ACTUALS PROJECTED Numbers exclude significant items (including International segment) as disclosed in the Non-GAAP reconciliation at the end of these slides.
Slide 11: Future Lease Obligations are Declining
Future Lease Obligations are Declining (1) Lease obligations are inclusive of rent payments but exclude operating expenses. (2) Amounts provided are for the full year of 2014. (3) Amounts provided are for executed sublease agreements. (2) & Thereafter Total Gross operating lease obligations (1) Ongo
Slide 12: Strong Cash Position
Strong Cash Position (1) Balances presented above are quarter end balances and include both Continuing and Discontinued Operations. In (000’s) (2) The increase in 4Q 2013 is attributed to proceeds from the sale of the Company’s International segment. $363,099 (2)
Slide 13: Reconciliation of GAAP to Non-GAAP Items
Reconciliation of GAAP to Non-GAAP Items Adjusted EBITDA Q3 2014 Q2 2014 Q1 2014 Q4 2013 Q3 2013 Ongoing Operations: Pre-tax loss from continuing operations (44,787) $ (31,984) $ (39,930) $ (43,458) $ (54,989) $ Transitional Schools operating loss 11,390 9,642 8,259 12,944 10,099 Interest (income) e
Slide 14: Reconciliation of GAAP to Non-GAAP Items – con't
Reconciliation of GAAP to Non-GAAP Items – con’t (1) (2) (3) (4) Q3 2014 Q2 2014 Q1 2014 Q4 2013 Q3 2013 CTU - $ - $ (900) $ 1,300 $ - $ Career Colleges - - - Culinary Arts - 2,000 3,000 15,500 - Corporate & Other - (400) 3,750 - - Total - $ 1,600 $ 5,850 $ 17,000 $ $ (5) (6) (7) (8) The Company bel
Slide 15: End of Presentation
End of Presentation