Perdoceo Education, Corp. (NASDAQ:PRDO) Q4 2021 Earnings Conference Call February 24, 2022 5:30 PM ET Corporate Participants Davis Snyder - Alpha IR Group Todd Nelson - Executive Chairman Andrew Hurst - Chief Executive Officer Ashish Ghia - Chief Financial Officer Conference Call Participants Alex Paris - Barrington Research Operator Good evening, and thank you for attending today’s Perdoceo Education Corporation Fourth Quarter 2021 Earnings Conference Call. My name Selina and I will be your moderator. [Ope ...

(Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FORM 10-K For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-23245 PERDOCEO EDUCATION CORPORATION (Exact name of Registrant as specified in its charter) | Delaware | 36-3932190 | | --- | --- | | ( ...

Financial Data and Key Metrics Changes - For Q3 2021, the company reported net income of $27.8 million or $0.39 per diluted share, while adjusted earnings per diluted share was $0.45, an increase from $0.35 in the prior year [9][23] - Revenue for the quarter increased to $174 million compared to $169.1 million, driven by growth at CTU, partially offset by a decline at AIU [24] - Adjusted operating income increased by 28.4% to $46.3 million for the quarter versus $36.1 million in the prior year [22] Business Line Data and Key Metrics Changes - Total student enrollments at CTU increased by 7.5%, while revenue increased by 5.9% to $104.8 million [24] - At AIU, total student enrollments decreased by 11.6%, and revenue decreased by 1.6% to $68.9 million, although operating income increased by 51.2% to $8.3 million due to lower marketing and admission expenses [25] Market Data and Key Metrics Changes - Total student enrollments across the company decreased by 0.9% compared to the previous year, with CTU's growth offsetting declines at AIU [15] - Triton University continued to be impacted by technical challenges related to the Army education and registration portal, affecting its military-affiliated student population [16] Company Strategy and Development Direction - The company is focusing on enhancing student experiences through investments in technology and marketing adjustments aimed at improving student retention and academic outcomes [8][13] - Recent acquisitions of DigitalCrafts and Hippo Education are expected to expand the company's non-degree portfolio and provide growth opportunities [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that the prolonged pandemic has impacted student engagement, with some students pausing their academic programs [12] - There is cautious optimism regarding enrollment trends, with positive signs observed in September and October sessions [12] Other Important Information - The company ended the quarter with $481 million in cash and equivalents, an increase of approximately $70.6 million over year-end 2020 [30] - Capital expenditures for Q3 were approximately $3.2 million, with expectations to maintain around 2% of revenues for full-year 2021 [33] Q&A Session Summary Question: Adjustments to marketing and admissions - Management explained that adjustments were made to marketing expenses to better target prospective students, with a focus on those likely to succeed [44][46] Question: Enrollment softness and its causes - Management acknowledged that external factors, including financing and pandemic-related issues, have led to delays in students' decisions to start classes [49] Question: Impact of academic calendar redesign - The positive enrollment growth at CTU was significantly attributed to the academic calendar redesign, although exact impacts without the redesign were not calculated [52][53] Question: Profitability of recent acquisitions - The recent acquisitions are expected to be cash flow neutral or slightly positive, but specific EBITDA information was not disclosed [54][55] Question: Fourth-quarter guidance and revenue timing - Management indicated that the fourth-quarter guidance reflects potential timing differences in revenue recognition, particularly influenced by the academic calendar [57][59]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION FOR THE TRANSITION PERIOD FROM TO Commission File Number: 0-23245 PERDOCEO EDUCATION CORPORATION Washington, D.C. 20549 (Exact name of registrant as specified in its charter) FORM 10-Q Delaware 36-3932190 (State or other jurisdiction of incorporation or organization) (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 1 ...

Financial Data and Key Metrics Changes - For Q2 2021, the company reported net income of $26.6 million or $0.37 per diluted share, while adjusted earnings per diluted share was $0.41, unchanged from the prior year [7][15] - Total company revenue for the quarter was $175.5 million, slightly lower than the prior year revenue of $176 million [17] - Adjusted operating income totaled $42.3 million for the quarter, reflecting an increase of 1.8% versus the prior year [15] Business Line Data and Key Metrics Changes - At CTU, total student enrollments increased by 14.2% due to an academic calendar redesign, with revenue increasing by 1.8% to $102 million [9][18] - At AIU, total student enrollments decreased by 1.8%, with revenue declining by 3.4% to $73.2 million, primarily due to lower enrollments at Trident [9][18] - Corporate and other segments reported operating losses of $8.7 million, an increase from $6.2 million in the prior year [19] Market Data and Key Metrics Changes - The prolonged pandemic has impacted overall student engagement, with some students deferring their decisions to start classes [6][7] - The company believes the changes in student behavior may be temporary, influenced by the economy's reopening and stimulus packages [7] Company Strategy and Development Direction - The company executed a strategic acquisition of DigitalCrafts to diversify revenue away from federal student financial aid funding and extend academic program offerings [8][24] - Investments in technology and student-serving functions are seen as key drivers for total enrollment goals [11][12] - The company is focusing on expanding corporate partnerships and workforce development training programs [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the academic value proposition resonating with nontraditional students, particularly adult learners [13] - The outlook for full-year adjusted operating income remains unchanged in the range of $165 million to $171 million, with adjusted earnings per diluted share expected between $1.58 and $1.64 [22] Other Important Information - The company ended the quarter with approximately $480.7 million in cash and equivalents, an increase of about $70.3 million over year-end 2020 [21] - The company repurchased approximately 440,000 shares during the quarter [21] Q&A Session Summary Question: Impact of DigitalCrafts acquisition on revenue - Management confirmed that the acquisition will positively impact revenue for the third quarter and full-year, although specific numbers were not disclosed [29] Question: Details on workforce development programs at Trident - Management reported over 100 students enrolled in the seven launched programs, with positive initial responses [31] Question: Relocation of Colorado Springs campus at CTU - The decision to relocate was made to upgrade to a better facility and take advantage of favorable lease rates [34] Question: Clarification on borrower defense to repayment claims - Management indicated that there are numerous claims covering a long time period, and each must be responded to, leading to legal fees [36]

PART I—FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Perdoceo reported $359.2 million in revenue and $57.4 million net income for H1 2021, with total assets at $786.4 million and operating cash flow at $82.7 million [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $786.4 million as of June 30, 2021, driven by a rise in cash and investments to $480.7 million, with equity growing to $613.6 million Condensed Consolidated Balance Sheet Highlights (in thousands USD) | Account | June 30, 2021 (unaudited) | December 31, 2020 | | :--- | :--- | :--- | | **Total cash, cash equivalents, restricted cash and short-term investments** | $480,653 | $410,360 | | **Total current assets** | $549,145 | $467,061 | | **Total assets** | $786,419 | $721,517 | | **Total current liabilities** | $117,772 | $103,815 | | **Total liabilities** | $172,807 | $165,610 | | **Total stockholders' equity** | $613,612 | $555,907 | [Condensed Consolidated Statements of Income (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Unaudited%29) Q2 2021 revenue slightly decreased to $175.5 million, with net income at $26.6 million, while YTD revenue increased to $359.2 million and net income remained stable at $57.4 million Financial Performance Summary (in thousands USD, except per share data) | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $175,539 | $176,035 | $359,177 | $347,029 | | **Operating Income** | $35,962 | $37,368 | $76,579 | $74,671 | | **Net Income** | $26,649 | $28,167 | $57,402 | $57,273 | | **Net Income Per Share - Diluted** | $0.37 | $0.40 | $0.80 | $0.80 | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29) Net cash from operating activities decreased to $82.7 million for H1 2021, with $94.3 million used in investing and $6.8 million in financing, resulting in an $18.3 million net cash decrease Year-to-Date Cash Flow Summary (in thousands USD) | Cash Flow Activity | YTD Ended June 30, 2021 | YTD Ended June 30, 2020 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $82,745 | $105,364 | | **Net cash used in investing activities** | ($94,303) | ($101,531) | | **Net cash used in financing activities** | ($6,783) | ($16,984) | | **Net decrease in cash, cash equivalents and restricted cash** | ($18,341) | ($13,151) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's CTU and AIU segments, Q2 2021 revenue trends, a $5.4 million stock repurchase, and the $16.25 million DigitalCrafts acquisition - The company operates through two main reporting segments: **Colorado Technical University (CTU)** and the **American InterContinental University System (AIU)**[16](index=16&type=chunk)[20](index=20&type=chunk) - On August 2, 2021, the company acquired DigitalCrafts for an initial **$16.25 million** cash consideration, with potential contingent payments of up to **$2.5 million** in 2024[79](index=79&type=chunk)[80](index=80&type=chunk) - During Q2 2021, the company repurchased **0.4 million shares** for approximately **$5.4 million**, with **$22.9 million** remaining available under the stock repurchase program as of June 30, 2021[72](index=72&type=chunk) Q2 2021 Revenue by Segment (in thousands USD) | Segment | Q2 2021 Revenue | Q2 2020 Revenue | | :--- | :--- | :--- | | CTU | $102,035 | $100,193 | | AIU | $73,223 | $75,835 | | Corporate and Other | $281 | $7 | | **Total** | **$175,539** | **$176,035** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a slight Q2 2021 revenue and operating income decrease, attributed to student enrollment behavior changes, despite a 7.5% overall enrollment growth and strong liquidity of $480.7 million - Q2 2021 financial results showed a decrease in revenue and operating income, influenced by student enrollment declines due to deferrals or pauses in academic programs[92](index=92&type=chunk)[93](index=93&type=chunk) - Total student enrollments increased by **7.5%** as of June 30, 2021, with **CTU enrollment growing 14.2%** and **AIU enrollment decreasing 1.8%**[94](index=94&type=chunk)[95](index=95&type=chunk) - The company faces regulatory uncertainty, including potential new Department of Education rules on borrower defense to repayment, the 90-10 rule, and gainful employment[86](index=86&type=chunk)[87](index=87&type=chunk)[107](index=107&type=chunk) Adjusted Operating Income Reconciliation (in thousands USD) | Description | Q2 2021 | Q2 2020 | | :--- | :--- | :--- | | **Operating income (GAAP)** | $35,962 | $37,368 | | Depreciation and amortization | $3,913 | $4,151 | | Legal fee expense related to certain matters | $2,416 | $22 | | **Adjusted Operating Income (Non-GAAP)** | **$42,291** | **$41,541** | [Consolidated Results of Operations](index=23&type=section&id=CONSOLIDATED%20RESULTS%20OF%20OPERATIONS) Q2 2021 consolidated revenue decreased 0.3% to $175.5 million, while YTD revenue grew 3.5% to $359.2 million, with operating income falling 3.8% to $36.0 million Q2 2021 vs Q2 2020 Operating Results (in thousands USD) | Metric | Q2 2021 | Q2 2020 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $175,539 | $176,035 | -0.3% | | **Operating Income** | $35,962 | $37,368 | -3.8% | | **Pretax Income** | $35,969 | $38,461 | -6.5% | | **Net Income** | $26,649 | $28,167 | -5.4% | - General and administrative expenses increased by **1.2%** in Q2 2021, driven by rises in advertising and marketing, admissions costs, and administrative expenses[116](index=116&type=chunk) - Bad debt expense for Q2 2021 was **$12.4 million (7.1% of revenue)**, a slight increase from **$12.3 million (7.0% of revenue)** in Q2 2020[119](index=119&type=chunk) [Segment Results of Operations](index=27&type=section&id=SEGMENT%20RESULTS%20OF%20OPERATIONS) CTU segment revenue grew 1.8% to $102.0 million with a 14.2% enrollment rise, while AIU revenue fell 3.4% to $73.2 million due to a 1.8% enrollment decrease, and Corporate segment loss widened Q2 2021 Segment Performance (in thousands USD) | Segment | Revenue | % Change | Operating Income | % Change | Operating Margin | | :--- | :--- | :--- | :--- | :--- | :--- | | **CTU** | $102,035 | 1.8% | $35,398 | 7.0% | 34.7% | | **AIU** | $73,223 | -3.4% | $9,218 | -12.0% | 12.6% | | **Corporate and other** | $281 | NM | ($8,654) | 39.9% | NM | Total Student Enrollments at June 30 | Segment | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | **CTU** | 26,600 | 23,300 | 14.2% | | **AIU** | 16,500 | 16,800 | -1.8% | | **Total** | **43,100** | **40,100** | **7.5%** | [Liquidity, Financial Position and Capital Resources](index=29&type=section&id=LIQUIDITY%2C%20FINANCIAL%20POSITION%20AND%20CAPITAL%20RESOURCES) The company maintained a strong financial position with $480.7 million in cash and investments, $82.7 million in H1 2021 operating cash flow, and an undrawn $50.0 million credit facility - As of June 30, 2021, the company held **$480.7 million** in cash, cash equivalents, restricted cash, and short-term investments[135](index=135&type=chunk) - Net cash from operating activities for YTD 2021 was **$82.7 million**, a decrease from **$105.4 million** in YTD 2020, primarily due to timing of Title IV funding and tax payments[140](index=140&type=chunk) - The capital allocation strategy prioritizes organic growth investments, evaluating acquisitions, and share repurchases to enhance stockholder value[137](index=137&type=chunk) - The company has an undrawn **$50.0 million** revolving credit facility maturing in January 2022[136](index=136&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's market risk exposure to interest rate changes is limited due to a conservative investment policy, with no material impact expected from a 10% rate change and no outstanding variable-rate borrowings - The company's interest rate risk is limited due to its investment policy focused on capital preservation and liquidity[152](index=152&type=chunk) - A hypothetical **10%** change in interest rates would not materially impact future earnings, fair values, or cash flows[153](index=153&type=chunk) - As of June 30, 2021, there were no outstanding borrowings under the company's variable-rate revolving credit facility[154](index=154&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2021, with no material changes to internal control over financial reporting during Q2 2021 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2021[156](index=156&type=chunk) - No material changes occurred during Q2 2021 that affected the company's internal control over financial reporting[157](index=157&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 8, 'Contingencies,' of the financial statements - Information regarding legal proceedings is detailed in Note 8, "Contingencies," of the financial statements[162](index=162&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) Readers are referred to the Annual Report on Form 10-K for a detailed discussion of the company's risk factors - Readers are referred to Part I, Item 1A "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2020, for a discussion of risk factors[163](index=163&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 440,052 shares for approximately $5.4 million in Q2 2021 under its $50.0 million stock repurchase program, with $22.9 million remaining available Issuer Purchases of Equity Securities (Q2 2021) | Period | Total Shares Purchased (Plan) | Average Price Paid per Share | Approx. Value Remaining ($M) | | :--- | :--- | :--- | :--- | | April 1 - April 30, 2021 | - | $- | $28.2 | | May 1 - May 31, 2021 | 273,578 | $12.06 | $24.9 | | June 1 - June 30, 2021 | 166,474 | $12.45 | $22.9 | - The Board of Directors approved a stock repurchase program of up to **$50.0 million**, expiring on December 31, 2021[167](index=167&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including management certifications and XBRL data files - The Exhibit Index lists all documents filed as part of the report, including management certifications and Inline XBRL documents[168](index=168&type=chunk)[171](index=171&type=chunk)

Perdoceo Education Corporation (NASDAQ:PRDO) Q1 2021 Earnings Conference Call May 6, 2021 5:30 PM ET Company Participants Wyatt Turk - IR Todd Nelson - President and CEO Ashish Ghia - SVP and CFO Conference Call Participants Alexander Paris - Barrington Research Brendan Popson - CJS Securities Gregory Pendy - Sidoti & Company Operator Hello, and welcome to the Q1 2021 Perdoceo Education Corporation Earnings Conference Call and Webcast. All participants will be in a listen-only mode. [Operator Instructions] ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number: 0-23245 PERDOCEO EDUCATION CORPORATION (Exact name of registrant as specified in its charter) Delaware 36-3932190 (State or other j ...

Perdoceo Education Corporation (NASDAQ:PRDO) Q4 2020 Results Earnings Conference Call February 24, 2021 5:30 PM ET Company Participants Wyatt Turk - Investor Relations, Analyst at Alpha IR Group Todd Nelson - President, Chief Executive Officer Ashish Ghia - Chief Financial Officer Conference Call Participants Daniel Moore - CJS Securities Alex Paris - Barrington Research Greg Pendy - Sidoti Operator Good day and welcome to the Perdoceo Education Corporation fourth quarter 2020 earnings conference call and w ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-23245 PERDOCEO EDUCATION CORPORATION (Exact name of Registrant as specified in its charter) | Delaware | 36-3932190 | | --- | --- | | ( ...