Perdoceo Education Corporation · NASDAQ:PRDO
Perdoceo Education — Career Education — Q2 2015 Earnings Presentation
15 slides from Perdoceo Education's earnings presentation, Aug 6, 2015
Slide 1: Career Education Corporation Second Quarter 2015 Investor Conference Call
Exhibit 99.2 CAREER EDUCATION CORPORATION SECOND QUARTER 2015 INVESTOR CONFERENCE CALL AUGUST 7, 2015 Ron McCray Chairman & Interim Chief Executive Officer Dave Rawden Interim Chief Financial Officer Jason Friesen Senior Vice President, Chief University Education Officer Ashish Ghia Vice President,
Slide 2: Cautionary Statements & Disclosures
Cautionary Statements & Disclosures 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 pr
Slide 3: Agenda
Agenda • Introduction of new CEO • Second Quarter Business Highlights • Review of Strategic Transformation • Financial Impacts of Strategic Transformation • Detailed Second Quarter Financial Results • Q&A Session 3
Slide 4: Second Quarter Highlights
Second Quarter Highlights • Total University Group revenue of $138.2 million, up 2.6% year-over-year – Driven by increase in total student enrollments • University Group operating income $29.4 million, an increase of 50.0% year-over-year – Driven by revenue growth and cost initiatives • Adjusted EBI
Slide 5: Update on Transformation Plan
Update on Transformation Plan Strategy designed to right-size and re-engineer organization to create a profitable and competitive company better positioned to serve and educate our students Path to competitive operating margins Leg 1 Leg 2 Leg 3 Teach out/Divest Corporate University Transitional Re-
Slide 6: Transforming our Cost Structure
Transforming our Cost Structure Our transformation strategy will reduce annualized 2015 operating expenses approximately $375millionbytheendoffiscalyear2018(1) Teach out/Divest Corporate University Transitional Re-engineering* Efficiencies (3)* Group & LCB* $900M Savings of ~$375M Q215 Annualized Le
Slide 7: University Group Performance
University Group Performance 7
Slide 8: Total University Student Enrollments
Total University Student Enrollments 30,600 31,300 +2.3% 10,800 10,700 19,800 20,600 2Q 2014 2Q 2015 CTU AIU 8
Slide 9: Review of Transitional Group
Review of Transitional Group The Company expects all campuses selected for teach-out to be closed by 2018. Phase Down of Transitional Group (1) 30 24 12 3 Represents the number of campuses remaining at the beginning of each period Expected Adjusted EBITDA from Transitional Group & Discontinued (3) O
Slide 10: Cash & Profitability Trends
Cash & Profitability Trends 2015 2016 2017 2018 Cash, cash equivalents, restricted cash $190M and investments Expected Adjusted EBITDAfrom Transitional Group & Discontinued ($100M) ($85M) Operations(1) Mid- Total CEC operating margins single digits (1) Amounts for FY 2015 and FY 2016 exclude the imp
Slide 11: Summary Expectations
Summary Expectations • Remain on plan to complete divestitures and/or teach outs of all remaining Career Colleges • Remain on plan to execute an agreement to sell Le Cordon Bleu by year end • Remain on track to generate flat-to-modest total student enrollment growth within the University Group over
Slide 12: Reconciliation of GAAP to Non-GAAP Items
Reconciliation of GAAP to Non-GAAP Items CAREER EDUCATION CORPORATION AND SUBSIDIARIES (1) UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (In thousands) Adjusted EBITDA Q2 2015 Q1 2015 Q4 2014 Q3 2014 Q2 2014 University Group and Corporate: Pre-tax loss from continuing operations $ (10,218) $ (2
Slide 13: Reconciliation of GAAP to Non-GAAP Items con't
Reconciliation of GAAP to Non-GAAP Items con’t– (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 measures in conjun
Slide 14: Key Transformation Assumptions
Key Transformation Assumptions Achievement of the transformation strategy estimated results included within these slides are based on the following key assumptions and factors, among others: • Flat-to-modest total enrollment growth within the University Group over time • Teach-outs and divestitures
Slide 15: End of Presentation
End of Presentation 15