# EDGAR Filing Document

**Accession Number:** 0001046568
**File Stem:** 0000950170-23-004118
**Filing Date:** 2023-2
**Character Count:** 49201
**Document Hash:** 5d6d10d60a4f063fd03061160f70019d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-23-004118.hdr.sgml**: 20230223

**ACCESSION NUMBER**: 0000950170-23-004118

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230223

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230223

**DATE AS OF CHANGE**: 20230223

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PERDOCEO EDUCATION Corp
- **CENTRAL INDEX KEY:** 0001046568
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-EDUCATIONAL SERVICES [8200]
- **IRS NUMBER:** 363932190
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-23245
- **FILM NUMBER:** 23659846

**BUSINESS ADDRESS:**
- **STREET 1:** 1750 E. GOLF ROAD
- **CITY:** SCHAUMBURG
- **STATE:** IL
- **ZIP:** 60173
- **BUSINESS PHONE:** 847-781-3600

**MAIL ADDRESS:**
- **STREET 1:** 1750 E. GOLF ROAD
- **CITY:** SCHAUMBURG
- **STATE:** IL
- **ZIP:** 60173

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CAREER EDUCATION CORP
- **DATE OF NAME CHANGE:** 19970923

?xml version="1.0" encoding="ASCII"? 8-K

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

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**FORM** 8-K

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

**Date of Report (Date of Earliest Event Reported):** February 23, 2023

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Perdoceo Education Corporation

**(Exact Name of Registrant as Specified in Charter)**

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| | | |
|:---|:---|:---|
| Delaware | 0-23245 | 36-3932190 |
| **(State or Other Jurisdiction**<br>**of Incorporation)** | **(Commission File Number)** | **(IRS Employer**<br>**Identification No.)** |

---

---

| | |
|:---|:---|
| 1750 E. Golf Road**,** Schaumburg**,** IL | 60173 |
| **(Address of Principal Executive Offices)** | **(Zip Code)** |

---

**Registrant's telephone number, including area code:** (847) 781-3600

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Title of each class | &nbsp;&nbsp;Trading symbol(s) | &nbsp;&nbsp;Name of each exchange on which registered |
| &nbsp;&nbsp;Common Stock, $0.01 par value | &nbsp;&nbsp;PRDO | &nbsp;&nbsp;Nasdaq Global Select Market |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02. Results of Operations and Financial Condition.**

On February 23, 2023, Perdoceo Education Corporation (the "Company") issued a press release describing the Company's financial results for the quarter and year ended December 31, 2022 and providing the Company's 2023 outlook. A copy of the press release is being furnished as Exhibit 99.1, and the information contained therein is incorporated herein by reference. Following the issuance of the press release, the Company will host a conference call and webcast on which its financial results for the quarter and year ended December 31, 2022 and 2023 outlook will be discussed.

The information contained in Item 2.02 of this Form 8-K, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall the information be deemed incorporated by reference into any filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except as shall be expressly set forth by specific reference in such a filing.

**Item 9.01. Financial Statements and Exhibits.**

(d) Exhibits.

The exhibits required by Item 601 of Regulation S-K are listed in the "Exhibit Index" which is contained in this Current Report on Form 8-K and are incorporated by reference herein.

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**<u>Exhibit Index</u>**

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| | |
|:---|:---|
| **Exhibit**<br>**Number** | **Description of Exhibits** |
| 99.1 | [<u>Press release of the Company dated February 23, 2023 reporting the Company's financial results for the quarter and year ended December 31, 2022</u>](prdo-ex99_1.htm)<br>|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document)<br>|

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | |
|:---|:---|
| PERDOCEO EDUCATION CORPORATION | PERDOCEO EDUCATION CORPORATION |
| By: | /s/ Ashish R. Ghia |
|  | Ashish R. Ghia |
|  | Senior Vice President and Chief Financial Officer |

---

Date: February 23, 2023

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## Ex-99

**PRDO ANNOUNCES 4Q22 RESULTS …PG 1**

**Exhibit 99.1**

![img8661304_0.jpg](img8661304_0.jpg)

**PERDOCEO EDUCATION CORPORATION REPORTS FOURTH QUARTER AND**

**FULL YEAR 2022 RESULTS**

Schaumburg, Ill. (February 23, 2023) – Perdoceo Education Corporation (NASDAQ: PRDO) today reported operating and financial results for the quarter and year ended December 31, 2022.

**<u>Full Year 2022 Results as Compared to Prior Year</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Revenue increased 0.3% to $695.2 million, with a 2.7% increase at CTU mostly offset by a 3.1% decline at AIUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Operating income decreased 13.0% to $129.6 million, while adjusted operating income decreased 6.6% to $164.0 million.\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Earnings per diluted share was $1.39 as compared to $1.55, while adjusted earnings per diluted share was $1.63 as compared to $1.70.\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Total student enrollments at December 31, 2022 decreased by 3.0%. AIUS experienced a 10.8% decrease in total student enrollments that was partially offset by a 2.0% increase at CTU.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Ended the year with $518.2 million in cash, cash equivalents, restricted cash and available-for-sale-short-term investments.

**<u>Fourth Quarter 2022 Results as Compared to Prior Year Quarter</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Revenue increased 10.2% to $176.1 million, with a 13.1% increase at CTU and a 5.9% increase at AIUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Operating income decreased 34.4% to $22.7 million, while adjusted operating income decreased 22.9% to $32.4 million, primarily due to certain one-time investments within our academic institutions.\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Earnings per diluted share was $0.23 as compared to $0.35, while adjusted earnings per diluted share was $0.31 as compared to $0.40.\*

**\***See GAAP (U.S. generally accepted accounting principles) to non-GAAP reconciliation attached to this press release

"Overall, we ended 2022 on a positive note as we experienced further improvement in student retention and engagement during the second half of 2022," said Andrew Hurst, President and Chief Executive Officer. "As we look to 2023, we will continue to optimize investments in technology that will drive operational efficiencies across our academic institutions, while remaining committed to further enhancing student experiences and academic outcomes."

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**PRDO ANNOUNCES 4Q22 RESULTS …PG 2**

**REVENUE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•For the quarter ended December 31, 2022, revenue of $176.1 million increased 10.2% compared to revenue of $159.9 million for the prior year quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•For the year ended December 31, 2022, revenue of $695.2 million increased 0.3% compared to revenue of $693.0 million for the prior year.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Quarter Ended December 31,** | **For the Quarter Ended December 31,** | **For the Quarter Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| **<u>Revenue ($ in thousands)</u>** | **2022 (1)** | **2021** | **% Change** | **2022 (1)** | **2021** | **% Change** |
| &nbsp;&nbsp;&nbsp;CTU | $108446 | $95904 | 13.1% | $419617 | $408549 | 2.7% |
| &nbsp;&nbsp;&nbsp;AIUS | 67445 | 63712 | 5.9% | 274479 | 283360 | -3.1% |
| &nbsp;&nbsp;&nbsp;Corporate and Other | 254 | 243 | NM | 1112 | 1125 | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $176145 | $159859 | 10.2% | $695208 | $693034 | 0.3% |

---

(1)Results of operations include an acquisition completed on December 1, 2022 within CTU and an acquisition completed on July 1, 2022 within AIUS.

**TOTAL STUDENT ENROLLMENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•As of December 31, 2022, CTU's total student enrollments increased 2.0%, while AIUS' total student enrollments decreased 10.8% as compared to the prior year end.

---

| | | | |
|:---|:---|:---|:---|
|  | **At December 31,** | **At December 31,** | **At December 31,** |
| **<u>Total Student Enrollments</u>(1)** | **2022** | **2021** | **% Change** |
| &nbsp;&nbsp;&nbsp;CTU | 25200 | 24700 | 2.0% |
| &nbsp;&nbsp;&nbsp;AIUS | 14000 | 15700 | -10.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 39200 | 40400 | -3.0% |

---

(1)Total student enrollments do not include learners participating in: a) non-degree seeking and professional development programs, and b) degree seeking, non-Title IV, self-paced programs at our universities.

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**PRDO ANNOUNCES 4Q22 RESULTS …PG 3**

**OPERATING INCOME**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•For the quarter ended December 31, 2022, operating income decreased by 34.4% to $22.7 million as compared to the prior year quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•For the year ended December 31, 2022, operating income decreased by 13.0% to $129.6 million as compared to the prior year.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Quarter Ended December 31,** | **For the Quarter Ended December 31,** | **For the Quarter Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| **<u>Operating Income ($ in thousands)</u>** | **2022 (1)** | **2021** | **% Change** | **2022 (1)** | **2021** | **% Change** |
| &nbsp;&nbsp;&nbsp;CTU | $34082 | $35723 | -4.6% | $141622 | $148481 | -4.6% |
| &nbsp;&nbsp;&nbsp;AIUS | 3469 | 10255 | -66.2% | 33315 | 39130 | -14.9% |
| &nbsp;&nbsp;&nbsp;Corporate and Other | (14877) | (11402) | NM | (45300) | (38595) | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $22674 | $34576 | -34.4% | $129637 | $149016 | -13.0% |

---

(1)Results of operations include an acquisition completed on December 1, 2022 within CTU and an acquisition completed on July 1, 2022 within AIUS.

**ADJUSTED OPERATING INCOME**

The Company believes it is useful to present non-GAAP financial measures, which exclude certain significant and non-cash items, as a means to understand the performance of its operations. (See table below and the GAAP to non-GAAP reconciliation attached to this press release for further details.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•For the quarter ended December 31, 2022, adjusted operating income of $32.4 million decreased 22.9% compared to adjusted operating income of $42.0 million for the prior year quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•For the year ended December 31, 2022, adjusted operating income of $164.0 million decreased 6.6% compared to adjusted operating income of $175.5 million for the prior year.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Quarter Ended December 31,** | **For the Quarter Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| **<u>Adjusted Operating Income ($ in thousands)</u>** | **2022** | **2021** | **2022** | **2021** |
| &nbsp;&nbsp;&nbsp;**Operating income** | $**22674** | $**34576** | $**129637** | $**149016** |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization (1) | 4878 | 4964 | 19734 | 16766 |
| &nbsp;&nbsp;&nbsp;Legal fee expense related to certain matters (2) | 4869 | 2494 | 14597 | 9735 |
| &nbsp;&nbsp;&nbsp;**Adjusted Operating Income** | $**32421** | $**42034** | $**163968** | $**175517** |
| &nbsp;&nbsp;&nbsp;Increase (Decrease) | **-22.9%** |  | **-6.6%** |  |

---

(1)Amortization relates to definite-lived intangible assets associated with acquisitions.

(2)Legal fee expense associated with (i) responses to the Department of Education (the "Department") relating to borrower defense to repayment applications from former students, and (ii) acquisition efforts.

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**PRDO ANNOUNCES 4Q22 RESULTS …PG 4**

**NET INCOME AND EARNINGS PER DILUTED SHARE**

For the quarter ended December 31, 2022, the Company recorded:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Net income of $16.0 million compared to $24.5 million for the prior year quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Earnings per diluted share of $0.23 compared to $0.35 for the prior year quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adjusted earnings per diluted share of $0.31 compared to $0.40 for the prior year quarter. (See table below and the GAAP to non-GAAP reconciliation attached to this press release for further details.)

For the year ended December 31, 2022, the Company recorded:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Net income of $95.9 million compared to $109.6 million for the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Earnings per diluted share of $1.39 compared to $1.55 for the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adjusted earnings per diluted share of $1.63 compared to $1.70 for the prior year. (See table below and the GAAP to non-GAAP reconciliation attached to this press release for further details.)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Quarter Ended December 31,** | **For the Quarter Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Reported Earnings Per Diluted Share** | $0.23 | $0.35 | $1.39 | $1.55 |
| &nbsp;&nbsp;&nbsp;**Pre-tax adjustments included in operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization for acquired intangible assets (1) | 0.03 | 0.03 | 0.11 | 0.06 |
| &nbsp;&nbsp;&nbsp;Legal fee expense related to certain matters (2) | 0.07 | 0.04 | 0.21 | 0.14 |
| &nbsp;&nbsp;&nbsp;Tax effect of adjustments **(3)** | (0.02) | (0.02) | (0.08) | (0.05) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Adjusted Earnings Per Diluted Share** | $0.31 | $0.40 | $1.63 | $1.70 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Amortization relates to definite-lived intangible assets associated with acquisitions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Legal fee expense associated with (i) responses to the Department relating to borrower defense to repayment applications from former students, and (ii) acquisition efforts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)The tax effect of adjustments was calculated by multiplying the pre-tax adjustments with a tax rate of 25.0%. This tax rate is intended to reflect federal and state taxable jurisdictions as well as the nature of the adjustments.

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**PRDO ANNOUNCES 4Q22 RESULTS …PG 5**

**BALANCE SHEET AND CASH FLOW**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•For the quarter ended December 31, 2022, net cash provided by operating activities was $40.5 million, compared to net cash provided by operating activities of $46.9 million for the prior year quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•For the year ended December 31, 2022, net cash provided by operating activities was $148.2 million, compared to net cash provided by operating activities of $191.1 million in the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•At December 31, 2022 and December 31, 2021, cash, cash equivalents, restricted cash and available-for-sale short-term investments totaled $518.2 million and $499.4 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•For the year ended December 31, 2022, the Company repurchased 2.1 million shares for $23.1 million at an average price of $11.02 as compared to 2.3 million shares for $25.3 million at an average price of $10.94 for the year ended December 31, 2021.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Quarter Ended December 31,** | **For the Quarter Ended December 31,** | **For the Quarter Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| **<u>Selected Cash Flow Items ($ in thousands)</u>** | **2022** | **2021** | **% Change** | **2022** | **2021** | **% Change** |
| &nbsp;&nbsp;&nbsp;Net cash provided by operating activities | $40546 | $46910 | -13.6% | $148186 | $191116 | -22.5% |
| &nbsp;&nbsp;&nbsp;Business acquisitions, net of<br>cash acquired | $45271 | $196 | NM | $84308 | $57143 | 47.5% |
| &nbsp;&nbsp;&nbsp;Capital expenditures | $3515 | $4177 | -15.8% | $12620 | $10453 | 20.7% |

---

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**PRDO ANNOUNCES 4Q22 RESULTS …PG 6**

**OUTLOOK** 

The Company is providing the following 2023 outlook, subject to the key assumptions identified below. Please see the GAAP to non-GAAP reconciliation for adjusted operating income and adjusted earnings per diluted share attached to this press release for further details.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total Company Outlook** | **Total Company Outlook** | **Total Company Outlook** | **Total Company Outlook** |
|  | **For Quarter Ending March 31,** | **For Quarter Ending March 31,** | **For the Year Ending December 31,** | **For the Year Ending December 31,** |
|  | **OUTLOOK** | **ACTUAL** | **OUTLOOK** | **ACTUAL** |
|  | **2023** | **2022** | **2023** | **2022** |
| **Operating Income** | **$41.3M - $43.3M** | **$43.7M** | **$120.6M - $140.6M** | **$129.6M** |
| &nbsp;&nbsp;Depreciation and amortization | $5.1M | $4.9M | $17.4M | $19.8M |
| &nbsp;&nbsp;Legal fee expense related to certain matters (1) | $4.6M | $2.3M | $12.0M | $14.6M |
| **Adjusted Operating Income** | **$51.0M - $53.0M** | **$50.9M** | **$150.0M - $170.0M** | **$164.0M** |
| **Earnings Per Diluted Share** | **$0.47 - $0.49** | **$0.46** | **$1.41 - $1.63** | **$1.39** |
| &nbsp;&nbsp;Amortization of acquired intangible assets | $0.04 | $0.02 | $0.12 | $0.11 |
| &nbsp;&nbsp;Legal fee expense related to certain matters (1) | $0.07 | $0.03 | $0.17 | $0.21 |
| &nbsp;&nbsp;Tax effect of adjustments | ($0.03) | ($0.01) | ($0.07) | ($0.08) |
| **Adjusted Earnings Per Diluted Share** | **$0.55 - $0.57** | **$0.50** | **$1.63 - $1.85** | **$1.63** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Legal fee expense associated with (i) responses to the Department relating to borrower defense to repayment applications from former students, and (ii) acquisition efforts.

Operating income, which is the most directly comparable GAAP measure to adjusted operating income, and earnings per diluted share, which is the most directly comparable GAAP measure to adjusted earnings per diluted share, may not follow the same trends stated in the outlook above because of adjustments made for certain significant and non-cash items. The operating income, adjusted operating income, earnings per share and adjusted earnings per share outlook provided above for 2023 are based on the following key assumptions and factors, among others: (i) prospective student interest in the Company's programs and trends in student retention and engagement remain consistent with management's estimates, (ii) no significant impact of new or proposed regulations, including recent Department negotiated rulemaking initiatives, or other adverse changes in the legal or regulatory environment, which may require operational changes in the way the Company's academic institutions enroll, support and educate current and prospective students, among other impacts, (iii) no significant operating impacts from the settlements with the U.S. Federal Trade Commission and state attorneys general or other legal or regulatory matters, (iv) the impact from student loan initiatives implemented by the current administration remains consistent with management's estimates, (v) earnings per diluted share outlook assumes an effective income tax rate of approximately 26.0% for both the first quarter and the full year, and (vi) excludes any future impact from the Company's stock repurchase program. Although these estimates and assumptions are based upon management's good faith beliefs regarding current and future circumstances and actions that may be undertaken, actual results could differ materially from these estimates. In addition, decisions the Company makes in the future as it continues to evaluate diverse strategies to enhance stockholder value may impact the outlook provided above.

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**PRDO ANNOUNCES 4Q22 RESULTS …PG 7**

**CONFERENCE CALL INFORMATION**

Perdoceo Education Corporation will host a conference call on Thursday, February 23, 2023 at 5:30 p.m. Eastern time to discuss fourth quarter and full year 2022 results and 2023 outlook. Interested parties can access the live webcast of the conference call at www.perdoceoed.com in the Investor Relations section of the website. Participants can also listen to the conference call by dialing 1-844-200-6205 (domestic) or 1-929-526-1599 (international). Both dial-in numbers will use the access code 690929. Viewers can also access the conference call by following this link https://events.q4inc.com/attendee/456229475. Please log-in or dial-in at least 10 minutes prior to the start time to ensure a connection. An archived version of the webcast will be accessible for 90 days at www.perdoceoed.com in the Investor Relations section of the website.

**ABOUT PERDOCEO EDUCATION CORPORATION**

Perdoceo's accredited academic institutions offer a quality postsecondary education primarily online to a diverse student population, along with campus-based and blended learning programs. The Company's academic institutions – Colorado Technical University ("CTU") and the American InterContinental University System ("AIUS" or "AIU System") – provide degree programs from the associate through doctoral level as well as non-degree seeking and professional development programs. Perdoceo's academic institutions offer students industry-relevant and career-focused academic programs that are designed to meet the educational needs of today's busy adults. CTU and AIUS continue to show innovation in higher education, advancing personalized learning technologies like their intellipath® learning platform and using data analytics and technology to serve and educate students while enhancing overall learning and academic experiences. 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. For more information, please visit www.perdoceoed.com.

Except for the historical and present factual information contained herein, the matters set forth in this release, including statements identified by words such as "believe," "will," "expect," "continue," "outlook," "remain," "focused on," "should" and similar expressions, are forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on information currently available to us and are subject to various assumptions, risks, uncertainties and other factors that could cause our results of operations, financial condition, cash flows, performance, business prospects and opportunities to differ materially from those expressed in, or implied by, these statements. Except as expressly required by the federal securities laws, we undertake no obligation to update or revise such factors or any of the forward-looking statements contained herein to reflect future events, developments or changed circumstances, or for any other reason. These risks and uncertainties, the outcomes of which could materially and adversely affect our financial condition and operations, include, but are not limited to, the following: declines in enrollment or interest in our programs; our continued compliance with and eligibility to participate in Title IV Programs under the Higher Education Act of 1965, as amended, and the regulations thereunder (including the 90-10, financial responsibility and administrative capability standards prescribed by the U.S. Department of Education), as well as applicable accreditation standards and state regulatory requirements; the impact of various versions of "borrower defense to repayment" regulations; the final outcome of various legal challenges to the Department's loan discharge and forgiveness efforts; rulemaking by the U.S. Department of Education or any state or accreditor and increased focus by Congress and governmental agencies on, or increased negative publicity about, for-profit education institutions; the success of our initiatives to improve student experiences, retention and academic outcomes; our continued eligibility to participate in educational assistance programs for veterans or other military personnel; increased competition; the impact of management changes; and changes in the overall U.S. economy. Further information about these and other relevant risks and uncertainties may be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 and its subsequent filings with the Securities and Exchange Commission.

###

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**PRDO ANNOUNCES 4Q22 RESULTS …PG 8**

**CONTACT**

**Investors:**

Alpha IR Group

Davis Snyder

(312) 445-2870

PRDO@alpha-ir.com

Or

**Media:**

Perdoceo Education Corporation

(847) 585-2600

media@perdoceoed.com

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**PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| **ASSETS** |  |  |
| **CURRENT ASSETS:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents, unrestricted | $109408 | $319982 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 9476 | 5196 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 399315 | 174213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash and cash equivalents, restricted cash and short-term investments | 518199 | 499391 |
| &nbsp;&nbsp;&nbsp;&nbsp;Student receivables, net | 42551 | 43033 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables, other | 3457 | 1692 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 8411 | 6919 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 1904 | 904 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 597 | 2514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 575119 | 554453 |
| **NON-CURRENT ASSETS:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 26038 | 28355 |
| &nbsp;&nbsp;&nbsp;&nbsp;Right of use asset, net | 26156 | 36664 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 243540 | 162579 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible assets, net | 53564 | 32208 |
| &nbsp;&nbsp;&nbsp;&nbsp;Student receivables, net | 1850 | 1372 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax assets, net | 24613 | 25114 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 6488 | 6688 |
| **TOTAL ASSETS** | $**957368** | $**847433** |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **CURRENT LIABILITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liability - operating | $6555 | $9400 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 13518 | 10838 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payroll and related benefits | 40306 | 25312 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advertising and marketing costs | 8977 | 8690 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | 7814 | 211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 14621 | 15180 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 71590 | 70613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 163381 | 140244 |
| **NON-CURRENT LIABILITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liability - operating | 27286 | 35549 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 40856 | 21530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-current liabilities | 68142 | 57079 |
| **STOCKHOLDERS' EQUITY:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock | 894 | 887 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 684183 | 674242 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (5447) | (96) |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 347839 | 251972 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock | (301624) | (276895) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 725845 | 650110 |
| **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | $**957368** | $**847433** |

---

------

**PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES**

**UNAUDITED CONSOLIDATED STATEMENTS OF INCOME** 

(In thousands, except per share amounts and percentages)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Quarter Ended December 31,** | **For the Quarter Ended December 31,** | **For the Quarter Ended December 31,** | **For the Quarter Ended December 31,** |
|  | **2022** | **% of<br>Total<br>Revenue** | **2021** | **% of<br>Total <br>Revenue** |
| **REVENUE:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Tuition and fees, net | $174012 | 98.8% | $158185 | 99.0% |
| &nbsp;&nbsp;&nbsp;Other | 2133 | 1.2% | 1674 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 176145 |  | 159859 |  |
| **OPERATING EXPENSES:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Educational services and facilities | 31217 | 17.7% | 25276 | 15.8% |
| &nbsp;&nbsp;&nbsp;General and administrative | 114610 | 65.1% | 95043 | 59.5% |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 4878 | 2.8% | 4964 | 3.1% |
| &nbsp;&nbsp;&nbsp;Asset impairment | 2766 | 1.6% | - | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 153471 | 87.1% | 125283 | 78.4% |
| Operating income | 22674 | 12.9% | 34576 | 21.6% |
| **OTHER INCOME:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 3169 | 1.8% | 136 | 0.1% |
| &nbsp;&nbsp;&nbsp;Interest expense | (102) | -0.1% | - | 0.0% |
| &nbsp;&nbsp;&nbsp;Miscellaneous (expense) income | (1313) | -0.7% | 63 | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income | 1754 | 1.0% | 199 | 0.1% |
| **PRETAX INCOME** | 24428 | 13.9% | 34775 | 21.8% |
| Provision for income taxes | 8473 | 4.8% | 10309 | 6.4% |
| **NET INCOME** | 15955 | 9.1% | 24466 | 15.3% |
| **NET INCOME PER SHARE - BASIC:** | $0.24 |  | $0.35 |  |
| **NET INCOME PER SHARE - DILUTED:** | $0.23 |  | $0.35 |  |
| **WEIGHTED AVERAGE SHARES OUTSTANDING:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 67165 |  | 69565 |  |
| &nbsp;&nbsp;&nbsp;Diluted | 68423 |  | 70335 |  |
| **UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** | **UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** | **UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** | **UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** | **UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** |
|  | **For the Quarter Ended December 31,** | **For the Quarter Ended December 31,** | **For the Quarter Ended December 31,** |  |
| **(In Thousands)** | **2022** |  | **2021** |  |
| **NET INCOME** | $15955 |  | $24466 |  |
| **OTHER COMPREHENSIVE INCOME (LOSS), net of tax:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustments | 217 |  | (2) |  |
| &nbsp;&nbsp;&nbsp;Unrealized gain (loss) on investments | 653 |  | (91) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss) | 870 |  | (93) |  |
| **COMPREHENSIVE INCOME** | $16825 |  | $24373 |  |

---

------

**PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF INCOME** 

(In thousands, except per share amounts and percentages)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2022** | **% of<br>Total<br>Revenue** | **2021** | **% of<br>Total<br>Revenue** |
| **REVENUE:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Tuition and fees, net | $687672 | 98.9% | $688415 | 99.3% |
| &nbsp;&nbsp;&nbsp;Other | 7536 | 1.1% | 4619 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 695208 |  | 693034 |  |
| **OPERATING EXPENSES:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Educational services and facilities | 116723 | 16.8% | 108743 | 15.7% |
| &nbsp;&nbsp;&nbsp;General and administrative | 426120 | 61.3% | 418509 | 60.4% |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 19734 | 2.8% | 16766 | 2.4% |
| &nbsp;&nbsp;&nbsp;Asset impairment | 2994 | 0.4% | - | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 565571 | 81.4% | 544018 | 78.5% |
| Operating income | 129637 | 18.6% | 149016 | 21.5% |
| **OTHER INCOME:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 6866 | 1.0% | 930 | 0.1% |
| &nbsp;&nbsp;&nbsp;Interest expense | (400) | -0.1% | (920) | -0.1% |
| &nbsp;&nbsp;&nbsp;Miscellaneous (expense) income | (1834) | -0.3% | 41 | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income | 4632 | 0.7% | 51 | 0.0% |
| **PRETAX INCOME** | 134269 | 19.3% | 149067 | 21.5% |
| Provision for income taxes | 38402 | 5.5% | 39430 | 5.7% |
| **NET INCOME** | 95867 | 13.8% | 109637 | 15.8% |
| **NET INCOME PER SHARE - BASIC:** | $1.41 |  | $1.57 |  |
| **NET INCOME PER SHARE - DILUTED:** | $1.39 |  | $1.55 |  |
| **WEIGHTED AVERAGE SHARES OUTSTANDING:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 67934 |  | 70024 |  |
| &nbsp;&nbsp;&nbsp;Diluted | 69031 |  | 70881 |  |
| **CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** | **CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** | **CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** | **CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** | **CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** |
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |  |
| **(In Thousands)** | **2022** |  | **2021** |  |
| **NET INCOME** | $95867 |  | $109637 |  |
| **OTHER COMPREHENSIVE LOSS, net of tax:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustments | (166) |  | (177) |  |
| &nbsp;&nbsp;&nbsp;Unrealized loss on investments | (5185) |  | (283) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive loss | (5351) |  | (460) |  |
| **COMPREHENSIVE INCOME** | $90516 |  | $109177 |  |

---

------

**PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2022** | **2021** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $95867 | $109637 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset impairment | 2994 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 19734 | 16766 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bad debt expense | 41574 | 44344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation expense related to share-based awards | 8751 | 14972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (720) | 15330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Student receivables, gross | 6380 | 6631 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses | (38992) | (47417) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables, other | (1670) | 5396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories, prepaid expenses, and other current assets | 2640 | 3285 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-current assets | 843 | 72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 1922 | (2744) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other non-current liabilities | 22332 | (3404) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (11767) | 30724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right of use asset and lease liability | (1702) | (2476) |
| Net cash provided by operating activities | 148186 | 191116 |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Purchases of available-for-sale investments | (492100) | (269739) |
| &nbsp;&nbsp;&nbsp;Sales of available-for-sale investments | 262277 | 391659 |
| &nbsp;&nbsp;&nbsp;Purchases of property and equipment | (12620) | (10453) |
| &nbsp;&nbsp;&nbsp;Business acquisitions, net of cash acquired | (84308) | (57143) |
| Net cash (used in) provided by investing activities | (326751) | 54324 |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of treasury stock | (23117) | (25296) |
| &nbsp;&nbsp;&nbsp;Issuance of common stock | 1197 | 861 |
| &nbsp;&nbsp;&nbsp;Payments of employee tax associated with stock compensation | (1612) | (5511) |
| &nbsp;&nbsp;&nbsp;Release of cash held in escrow | (4197) | - |
| Net cash used in financing activities | (27729) | (29946) |
| **NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH** | (206294) | 215494 |
| **CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of the period** | 325178 | 109684 |
| **CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of the period** | $118884 | $325178 |

---

------

**PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES**

**UNAUDITED SELECTED SEGMENT INFORMATION**

(In thousands, except percentages)

---

| | | |
|:---|:---|:---|
|  | **For the Quarter Ended December 31,** | **For the Quarter Ended December 31,** |
|  | **2022(1)** | **2021** |
| **REVENUE:** |  |  |
| &nbsp;&nbsp;&nbsp;CTU | $108446 | $95904 |
| &nbsp;&nbsp;&nbsp;AIUS | 67445 | 63712 |
| &nbsp;&nbsp;&nbsp;Corporate and Other | 254 | 243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $176145 | $159859 |
| **OPERATING INCOME (LOSS):** |  |  |
| &nbsp;&nbsp;&nbsp;CTU | $34082 | $35723 |
| &nbsp;&nbsp;&nbsp;AIUS | 3469 | 10255 |
| &nbsp;&nbsp;&nbsp;Corporate and Other | (14877) | (11402) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $22674 | $34576 |
| **OPERATING MARGIN (LOSS):** |  |  |
| &nbsp;&nbsp;&nbsp;CTU | 31.4% | 37.2% |
| &nbsp;&nbsp;&nbsp;AIUS | 5.1% | 16.1% |
| &nbsp;&nbsp;&nbsp;Corporate and Other | NM | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 12.9% | 21.6% |

---

(1)Results of operations include an acquisition completed on December 1, 2022 within CTU and an acquisition completed on July 1, 2022 within AIUS.

------

**PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES**

**UNAUDITED SELECTED SEGMENT INFORMATION**

(In thousands, except percentages)

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2022(1)** | **2021** |
| **REVENUE:** |  |  |
| &nbsp;&nbsp;&nbsp;CTU | $419617 | $408549 |
| &nbsp;&nbsp;&nbsp;AIUS | 274479 | 283360 |
| &nbsp;&nbsp;&nbsp;Corporate and Other | 1112 | 1125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $695208 | $693034 |
| **OPERATING INCOME (LOSS):** |  |  |
| &nbsp;&nbsp;&nbsp;CTU | $141622 | $148481 |
| &nbsp;&nbsp;&nbsp;AIUS | 33315 | 39130 |
| &nbsp;&nbsp;&nbsp;Corporate and Other | (45300) | (38595) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $129637 | $149016 |
| **OPERATING MARGIN (LOSS):** |  |  |
| &nbsp;&nbsp;&nbsp;CTU | 33.8% | 36.3% |
| &nbsp;&nbsp;&nbsp;AIUS | 12.1% | 13.8% |
| &nbsp;&nbsp;&nbsp;Corporate and Other | NM | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 18.6% | 21.5% |

---

(1)Results of operations include an acquisition completed on December 1, 2022 within CTU and an acquisition completed on July 1, 2022 within AIUS.

------

**PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES**

**UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS** <sup>(1)</sup>

(In thousands, unless otherwise noted)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Quarter Ended December 31,** | **For the Quarter Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **ACTUAL** | **ACTUAL** | **ACTUAL** | **ACTUAL** |
| **<u>Adjusted Operating Income</u>** | **2022** | **2021** | **2022** | **2021** |
| &nbsp;&nbsp;&nbsp;**Operating income** | $**22674** | $**34576** | $**129637** | $**149016** |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization (2) | 4878 | 4964 | 19734 | 16766 |
| &nbsp;&nbsp;&nbsp;Legal fee expense related to certain matters (3) | 4869 | 2494 | 14597 | 9735 |
| &nbsp;&nbsp;&nbsp;**Adjusted Operating Income** | $**32421** | $**42034** | $**163968** | $**175517** |
|  | **For the Quarter Ending March 31,** | **For the Quarter Ending March 31,** | **For the Year Ending December 31,** | **For the Year Ending December 31,** |
|  | **OUTLOOK** | **ACTUAL** | **OUTLOOK** | **ACTUAL** |
|  | **2023** | **2022** | **2023** | **2022** |
| &nbsp;&nbsp;&nbsp;**Operating income** | **$41.3M - $43.3M** | $**43693** | **$120.6M - $140.6M** | $**129637** |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization (2) | 5.1M | 4882 | 17.4M | 19734 |
| &nbsp;&nbsp;&nbsp;Legal fee expense related to certain matters (3) | 4.6M | 2347 | 12.0M | 14597 |
| &nbsp;&nbsp;&nbsp;**Adjusted Operating Income** | **$51.0M - $53.0M** | $**50922** | **$150.0M - $170.0M** | $**163968** |

---

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**PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES**

**UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS** <sup>(1)</sup> **(cont'd)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Quarter Ended December 31,** | **For the Quarter Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **ACTUAL** | **ACTUAL** | **ACTUAL** | **ACTUAL** |
|  | **2022** | **2021** | **2022** | **2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Reported Earnings Per Diluted Share** | $0.23 | $0.35 | $1.39 | $1.55 |
| &nbsp;&nbsp;&nbsp;**Pre-tax adjustments included in operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization for acquired intangible assets (2) | 0.03 | 0.03 | 0.11 | 0.06 |
| &nbsp;&nbsp;&nbsp;Legal fee expense related to certain matters (3) | 0.07 | 0.04 | 0.21 | 0.14 |
| &nbsp;&nbsp;&nbsp;**Total pre-tax adjustments** | $0.10 | $0.07 | $0.32 | $0.20 |
| &nbsp;&nbsp;&nbsp;**Tax effect of adjustments (4)** | (0.02) | (0.02) | (0.08) | (0.05) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total adjustments after tax** | 0.08 | 0.05 | 0.24 | 0.15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Adjusted Earnings Per Diluted Share** | $0.31 | $0.40 | $1.63 | $1.70 |
|  | **For the Quarter Ending March 31,** | **For the Quarter Ending March 31,** | **For the Year Ending December 31,** | **For the Year Ending December 31,** |
|  | **OUTLOOK** | **ACTUAL** | **OUTLOOK** | **ACTUAL** |
|  | **2023** | **2022** | **2023** | **2022** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Reported Earnings Per Diluted Share** | $0.47 - $0.49 | $0.46 | $1.41 -$1.63 | $1.39 |
| &nbsp;&nbsp;&nbsp;**Pre-tax adjustments included in operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization for acquired intangible assets (2) | 0.04 | 0.02 | 0.12 | 0.11 |
| &nbsp;&nbsp;&nbsp;Legal fee expense related to certain matters (3) | 0.07 | 0.03 | 0.17 | 0.21 |
| &nbsp;&nbsp;&nbsp;**Total pre-tax adjustments** | $0.11 | $0.05 | $0.29 | $0.32 |
| &nbsp;&nbsp;&nbsp;**Tax effect of adjustments (4)** | (0.03) | (0.01) | ($0.07) | (0.08) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total adjustments after tax** | 0.08 | 0.04 | 0.22 | 0.24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Adjusted Earnings Per Diluted Share** | $0.55 - $0.57 | $0.50 | $1.63 - $1.85 | $1.63 |

---

------

**PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES**

**UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS** <sup>(1)</sup> **(cont'd)**

(1)The Company believes it is useful to present non-GAAP financial measures which exclude certain significant and non-cash items as a means to understand the performance of its operations. As a general matter, the Company uses non-GAAP financial measures in conjunction with results presented in accordance with GAAP to help analyze the performance of its operations, assist with preparing the annual operating plan, and measure performance for some forms of compensation. In addition, the Company believes that non-GAAP financial information is used by analysts and others in the investment community to analyze the Company's historical results and to provide estimates of future performance.

The Company believes adjusted operating income and adjusted earnings per diluted share allow it to analyze and assess its operations and compare current operating results with the operational performance of other companies in its industry because it does not give effect to potential differences caused by items it does not consider reflective of underlying operating performance, such as amortization for acquired intangible assets, significant legal settlements and legal fee expense related to certain matters. The Company believes the items it is adjusting for are not normal operating expenses necessary to run its business. In evaluating adjusted operating income and adjusted earnings per diluted share, investors should be aware that in the future the Company may incur expenses similar to the adjustments presented above. The presentation of adjusted operating income and adjusted earnings per diluted share should not be construed as an inference that the Company's future results will be unaffected by expenses that are unusual, non-routine or non-recurring. Adjusted operating income and adjusted earnings per diluted share have limitations as an analytical tool, and should not be considered in isolation, or as a substitute for net income, operating income, earnings per diluted share, or any other performance measure derived in accordance and reported under GAAP or as an alternative to cash flow from operating activities or as a measure of liquidity.

Non-GAAP financial measures, when viewed in a reconciliation to corresponding GAAP financial measures, provide an additional way of viewing the Company's results of operations and the factors and trends affecting the Company's business. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding financial results presented in accordance with GAAP.

Results of operations include the Coding Dojo acquisition as of December 1, 2022, the CalSouthern acquisition as of July 1, 2022, the DigitalCrafts acquisition as of August 2, 2021 and the Hippo acquisition as of September 10, 2021.

(2)Amortization for acquired intangible assets relate to definite-lived intangible assets associated with acquisitions.

(3)Legal fee expense associated with (i) responses to the Department relating to borrower defense to repayment applications from former students, and (ii) acquisition efforts.

(4)The tax effect of adjustments was calculated by multiplying the pre-tax adjustments with a tax rate of 25.0%. This tax rate is intended to reflect federal and state taxable jurisdictions as well as the nature of the adjustments.

------