Perdoceo Education Corporation (NASDAQ:PRDO) Q2 2022 Earnings Conference Call August 8, 2022 5:30 PM ET Company Participants Davis Snyder - Alpha IR Group Andrew Hurst - President and Chief Executive Officer Ashish Ghia - Chief Financial Officer Todd Nelson - Executive Chairman Conference Call Participants Alex Paris - Barrington Research Operator Good afternoon, everyone. Thank you for joining today's Perdoceo Education Corporation Second Quarter Earnings Conference Call. My name is Dante and I'll be your ...

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 JUNE 30, 2022 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 ju ...

Perdoceo Education Corporation (NASDAQ:PRDO) Q1 2022 Earnings Conference Call May 5, 2022 5:30 PM ET Company Participants Davis Snyder – Alpha IR Group Todd Nelson – Executive Chairman Andrew Hurst – President and Chief Executive Officer Ashish Ghia – Chief Financial Officer Conference Call Participants Alex Paris – Barrington Research Operator Good afternoon. Thank you for attending today’s Perdoceo First Quarter Fiscal 2022 Conference Call. My name is Tania, and I will be your moderator for today’s call. ...

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, 2022 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, 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)