Perdoceo Education Corporation · NASDAQ:PRDO
Perdoceo Education — Career Education — Q4 2014 Earnings Presentation
17 slides from Perdoceo Education's earnings presentation, Mar 3, 2015
Slide 1: Fourth Quarter 2014 Investor Conference Call
CAREER EDUCATION CORPORATION FOURTH QUARTER 2014 INVESTOR CONFERENCE CALL MARCH 3, 2015 Reid Simpson Senior Vice President & Chief Financial Officer Ron McCray Chairman & Interim Chief Executive Officer Jason T. Friesen Senior Vice President and Chief University Education Officer Lysa Hlavinka Cleme
Slide 2: Background
Background Strong belief in education Board member since late 2012, Chairman since mid-2014 Roughly 50% students are minorities; average age 32 years old Adults looking for more out of their careers Mission to Enroll, Educate and Place these students Award winning University Group – Approximately 90
Slide 3: Strategic Update
Strategic Update CEO Search is Under Way • • Strengthening Academic Outcomes Remains Top Priority • • – Investment provides access to valuable technology that will be implemented across our offerings to improve students’ academic outcomes Company is in the process of retaining an executive search fi
Slide 4: Strategic Update
Strategic Update Enhance Regulatory Compliance • • • Simplify Business Model • – Sale will help further strengthen our financial position and enable us to focus on and grow other parts of our business Preliminary Financial Responsibility Ratio (FRR) of 1.5 achieved at year end 2014 We believe all of
Slide 5: Total Student Enrollments - University
Total Student Enrollments - University 31,300 32,000 32,400 33,900 30,600 10,800 (1) (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 and a corresponding decrease in 2Q 2014. All other periods each had two AIU star
Slide 6: Total Student Enrollments – University (Online Only)
Total Student Enrollments – University (Online Only) 28,900 28,300 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 and a corresponding decrease in 2Q 2014. All other periods each had two AIU s
Slide 7: Total Student Enrollments – Career Colleges
Total Student Enrollments – Career Colleges (1) Career Colleges excludes the Culinary Arts campuses. 10,000 10,700 8,600 10,000 8,500 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 Career Colleges (1)
Slide 8: Reduce Organizational Cost Structure – Progress Under Way
Reduce Organizational Cost Structure – Progress Under Way $817 $743 $189 $166 $473 $350 $126 $76 $1,290 $1,093 Reduced by $74 million Operating Expenses ($ millions) $315 $242 Reduced by $23 million FY 2013 FY 2014 Q4'13 Q4'14 Ongoing Transitional / Discontinued Operations (excludes International)
Slide 9: Phase Down of Transitional Campuses
Phase Down of Transitional Campuses # of Transitional Campuses
Slide 10: 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 items (including the Transitional Group and Discontinued Operations) as disclosed in the non-GAAP reconciliation at the end of these slides. $3 $8 $6 $12 $
Slide 11: Adjusted EBITDA – Transitional & Discontinued Operations
Adjusted EBITDA – Transitional & Discontinued Operations Q1 ‘14 Q2 ‘14 Q3 ‘14 Q4 ’14 FY ‘15 ACTUALS PROJECTED Trailing Twelve Months Adjusted EBITDA Numbers exclude items (including International segment) as disclosed in the non-GAAP reconciliation at the end of these slides. ($131) ($123) ($112) ($
Slide 12: Strong Cash Position
Strong Cash Position (1) Balances presented above are quarter end balances and include both Continuing and Discontinued Operations. (2) The 4Q cash balance includes proceeds from the sale of the Company’s International segment. $316 $363 $275 $251 $240 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 (2) Cas
Slide 13: Cash Bridge 2014 to 2015
Cash Bridge 2014 to 2015 $190 million $240 Cash as of 12/31/14 2015 Cash Burn from Trans / Disc. Ops 2015 Capex 2015 Tax Refund 2015 EBITDA from Ongoing Operations (covenant)
Slide 14: Future Lease Obligations are Declining
Future Lease Obligations are Declining (1) Lease obligations are inclusive of rent payments but exclude operating expenses and excludes lease obligations post 2019. $79 $70 $59 $55 $39 $32 $31 $29 $28 $22 $21 $20 $14 $14 $11 $26 $19 $16 $13 $6 Future Lease Obligations (1) Ongoing LCB Transitional /
Slide 15: Reconciliation of GAAP to Non-GAAP Items
Reconciliation of GAAP to Non-GAAP Items Adjusted EBITDA Q4 2014 Q3 2014 Q2 2014 Q1 2014 Q4 2013 Ongoing Operations: Pre-tax loss from continuing operations (7,747) $ (31,651) $ (11,664) $ (21,442) $ (14,230) $ Transitional Group operating loss 10,138 10,856 9,091 7,789 12,126 Interest (income) expe
Slide 16: Reconciliation of GAAP to Non-GAAP Items – con’t
Reconciliation of GAAP to Non-GAAP Items – con’t (1) (2) (3) Quarterly amounts relate to ongoing operations, which excludes the Transitional Group. (4) The Company announced the Culinary Arts segment as held for sale during the fourth quarter of 2014 and it is therefore now reported within discontin
Slide 17: End of Presentation
End of Presentation