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Perdoceo Education (PRDO)

Perdoceo Education Corporation offers a quality postsecondary education primarily online to a diverse student population, along with campus-based and blended learning programs. The Company's accredited institutions - Colorado Technical University ('CTU') and the American InterContinental University System ('AIU') - provide degree programs through the master's or doctoral level as well as associate and bachelor's levels. Perdoceo's universities offer students industry-relevant and career-focused degree programs that are designed to meet the educational needs of today's busy adults. CTU and AIU continue to show innovation in higher education, advancing personalized learning technologies like their intellipath® learning platform and using data analytics and technology to support students and enhance learning. Perdoceo is committed to providing quality education that closes the gap between learners who seek to advance their careers and employers needing a qualified workforce.

Company profile

Ticker
PRDO
Exchange
CEO
Todd Nelson
Employees
Incorporated
Location
Fiscal year end
Former names
CAREER EDUCATION CORP
SEC CIK
Subsidiaries
AIU Online, LLC • American InterContinental University System, Inc. • BIPL, LLC • Career Education Student Finance LLC • CEC Educational Services, LLC • CEC Employee Group, LLC • CEC Europe, LLC • CEC Insurance Agency, LLC • CEC Real Estate Holding, Inc. • Colorado Tech, Inc. ...
IRS number
363932190

PRDO stock data

Calendar

8 Aug 22
19 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 149.94M 149.94M 149.94M 149.94M 149.94M 149.94M
Cash burn (monthly) 13.9M (no burn) (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 23.36M n/a n/a n/a n/a n/a
Cash remaining 126.58M n/a n/a n/a n/a n/a
Runway (months of cash) 9.1 n/a n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
16 Aug 22 Thornton Leslie T Common Stock Sell Dispose S No No 12.38 4,068 50.36K 40,484
7 Jun 22 Lally Thomas B Common Stock Sell Dispose S No No 10.93 21,129 230.94K 59,552
7 Jun 22 Lally Thomas B Common Stock Option exercise Acquire M No No 5.96 21,129 125.93K 80,681
7 Jun 22 Lally Thomas B Non-Qualified Option Common Stock Option exercise Dispose M No No 5.96 21,129 125.93K 0
1 Jun 22 Elise Baskel Common Stock Sell Dispose S No Yes 10.68 6,199 66.21K 62,848
26 May 22 Chookaszian Dennis Common Stock Grant Acquire A No No 0 9,050 0 55,552
26 May 22 Gonzales Kenda B Common Stock Grant Acquire A No No 0 9,050 0 24,933
90.6% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 186 194 -4.1%
Opened positions 31 23 +34.8%
Closed positions 39 20 +95.0%
Increased positions 60 83 -27.7%
Reduced positions 68 60 +13.3%
13F shares Current Prev Q Change
Total value 723.19M 695.04M +4.0%
Total shares 61.39M 60.53M +1.4%
Total puts 557.2K 31.1K +1691.6%
Total calls 80.2K 132.8K -39.6%
Total put/call ratio 6.9 0.2 +2866.7%
Largest owners Shares Value Change
BLK Blackrock 11.69M $137.69M +1.3%
Vanguard 5.97M $70.27M +0.6%
Renaissance Technologies 4.97M $58.5M +6.8%
Dimensional Fund Advisors 3.92M $46.22M +11.8%
STT State Street 2.77M $32.58M +1.7%
Frontier Capital Management 2.53M $29.82M -0.5%
FMR 2.35M $27.71M +0.0%
IVZ Invesco 1.61M $18.96M +187.2%
Private Management 1.43M $16.88M +0.4%
Geode Capital Management 1.39M $16.35M +4.4%
Largest transactions Shares Bought/sold Change
IVZ Invesco 1.61M +1.05M +187.2%
Philosophy Capital Management 0 -865.39K EXIT
Polaris Capital Management 147.6K -627.6K -81.0%
Cannell Capital 0 -560.86K EXIT
Dimensional Fund Advisors 3.92M +414.85K +11.8%
AMP Ameriprise Financial 704.3K +396.03K +128.5%
Allianz Asset Management GmbH 598.74K +373.11K +165.4%
Millennium Management 514.58K +358.36K +229.4%
Fuller & Thaler Asset Management 473.42K -318K -40.2%
Renaissance Technologies 4.97M +315.92K +6.8%

Financial report summary

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Risks
  • Compliance with the extensive regulatory requirements applicable to our business can be costly and time consuming, and failure to comply could result in financial penalties, restrictions on our operations, loss of federal and state financial aid funding for our students, or loss of our authorization to operate our institutions.
  • The extensive regulatory requirements applicable to our business may change, in particular as a result of the scrutiny of the for-profit postsecondary education sector and the results of the 2020 Presidential and Congressional elections, which could require us to make substantial changes to our business, reduce our profitability and make compliance more difficult.
  • We are dependent on the renewal and maintenance of Title IV Programs.
  • If our institutions become ineligible to participate in educational assistance programs benefitting military or veteran personnel, it could have a material negative impact on student enrollments and could have other adverse consequences.
  • Our institutions could lose their eligibility to participate in federal student financial aid programs or have other limitations placed upon them if the percentage of their revenues derived from those programs is too high.
  • “Borrower defense to repayment” regulations, including closed school discharges, may subject us to significant repayment liability to the Department for discharged federal student loans and posting of substantial letters of credit that may limit our ability to make investments in our business which could negatively impact our future growth.
  • A failure to demonstrate "financial responsibility" or "administrative capability" would have negative impacts on our operations.
  • Our institutions could lose their eligibility to participate in federal student financial aid programs or have other limitations placed upon them if their student loan cohort default rates are greater than the standards set by the Department.
  • Our agreements with multiple state attorneys general and the FTC may lead to unexpected impacts on our student enrollments or higher than anticipated expenses, a failure to comply may lead to additional enforcement actions and continued scrutiny may result in additional costs or new enforcement actions.
  • If the Department denies, or significantly conditions, recertification of either of our institutions to participate in Title IV Programs, that institution could not conduct its business as it is currently conducted.
  • Our institutions would lose their ability to participate in Title IV Programs if they fail to maintain their institutional accreditation, and our student enrollments could decline if certain of our programs fail to obtain or maintain programmatic accreditation.
  • We need timely approval by applicable regulatory agencies to offer new programs or make substantive changes to existing programs.
  • Our financial performance depends on the level of student enrollments in our institutions.
  • We compete with a variety of educational institutions, especially in the online education market, and if we are unable to compete effectively, our student enrollments and revenue could be adversely impacted.
  • Our financial performance depends on our ability to develop awareness among, and enroll and retain, students in our institutions and programs in a cost-effective manner.
  • We may not be able to retain our key personnel or hire, train and retain the personnel we need to sustain and grow our business.
  • Our financial performance depends, in part, on our ability to keep pace with changing market needs and technology.
  • Our future results of operations could be materially adversely affected if we are required to write down the carrying value of non-financial assets and non-financial liabilities, such as goodwill.
  • We rely on proprietary rights and intellectual property in conducting our business, which may not be adequately protected under current laws, and we may encounter disputes from time to time relating to our use of intellectual property of third parties.
  • We may incur liability for the unauthorized duplication or distribution of class materials posted online for class discussions.
  • The personal information that we collect may be vulnerable to breach, theft or loss which could adversely affect our reputation and operations.
  • System disruptions and vulnerability from security risks to our online technology infrastructure could have a material adverse effect on our ability to attract and retain students.
  • Our remote work environment in response to the COVID-19 pandemic may exacerbate the risks related to our business technology infrastructure.
  • Government regulations relating to the Internet could increase our cost of doing business or otherwise have a material adverse effect on our business.
  • The trading price of our common stock may continue to fluctuate substantially in the future, and as a result returns on an investment in our common stock may be volatile.
Management Discussion
  • During the quarter ended June 30, 2022 (“current quarter”), revenue decreased 4.5% to $167.7 million and operating income decreased 5.6% to $33.9 million as compared to the prior year quarter. We continued to invest in technology upgrades and maintain appropriate levels of academic and student support services that we believe are positively impacting academic outcomes and student experiences. Our current quarter operating results were supported by better than expected improvements in student engagement, as the overall macroeconomic and governmental responses generally wind down from the pandemic. While student engagement showed progress, we continued to experience a lingering impact from the pandemic which impacted the total student enrollments for the end of the second quarter.

Content analysis

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Positive
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Legalese
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Readability
H.S. junior Avg
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