8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): May 04, 2023

Perdoceo Education Corporation

(Exact Name of Registrant as Specified in Charter)

Delaware	0-23245	36-3932190
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer 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

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:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	PRDO	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. ☐

Item 2.02. Results of Operations and Financial Condition.

On May 4, 2023, Perdoceo Education Corporation (the “Company”) issued a press release describing the Company’s financial results for the quarter ended March 31, 2023 and providing an update on 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 ended March 31, 2023 and 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.

Exhibit Index

Exhibit Number	Description of Exhibits
99.1	Press release of the Company dated May 4, 2023 reporting the Company’s financial results for the quarter ended March 31, 2023
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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.

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

Date: May 4, 2023

EX-99

PRDO ANNOUNCES 1Q23 RESULTS …PG 1

Exhibit 99.1

 

PERDOCEO EDUCATION CORPORATION ANNOUNCES FIRST QUARTER 2023 RESULTS

Schaumburg, Ill. (May 4, 2023) – Perdoceo Education Corporation (NASDAQ: PRDO) today reported operating and financial results for the quarter ended March 31, 2023.

First Quarter 2023 Results as Compared to Prior Year Quarter

•Revenue increased 6.9% to $195.6 million, with a 10.0% increase at CTU and a 1.9% increase at AIUS.

•Operating income decreased 0.8% to $43.3 million, while adjusted operating income increased 4.3% to $53.1 million.*

•Earnings per diluted share was $0.50 as compared to $0.46, while adjusted earnings per diluted share was $0.58 as compared to $0.50.*

•Total student enrollments at March 31, 2023 increased by 0.8%.

•Ended the quarter with $520.3 million in cash, cash equivalents, restricted cash and available-for-sale-short-term investments.

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

"During the quarter, student retention and engagement continued to improve at our academic institutions and our overall operating performance was in line with our expectations,” said Andrew Hurst, President and Chief Executive Officer. “The Perdoceo team remains committed to prioritizing student experiences, retention and academic outcomes and we continue to invest in technology across our student processes to make them more efficient and effective."

PRDO ANNOUNCES 1Q23 RESULTS …PG 2

REVENUE

•For the quarter ended March 31, 2023, revenue of $195.6 million increased 6.9% compared to revenue of $183.0 million for the prior year quarter.

	For the Quarter Ended March 31,
Revenue ($ in thousands)	2023		2022		% Change
CTU	$	124,492	$	113,148		10.0	%
AIUS		70,840		69,532		1.9	%
Corporate and Other		266		279	NM
Total	$	195,598	$	182,959		6.9	%

TOTAL STUDENT ENROLLMENTS

	As of March 31,
Total Student Enrollments(1)	2023		2022		% Change
CTU		23,500		23,500		0.0	%
AIUS		14,400		14,100		2.1	%
Total		37,900		37,600		0.8	%

(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.

PRDO ANNOUNCES 1Q23 RESULTS …PG 3

OPERATING INCOME

•For the quarter ended March 31, 2023, operating income decreased by 0.8% to $43.3 million as compared to the prior year quarter.

	For the Quarter Ended March 31,
Operating Income ($ in thousands)	2023			2022			% Change
CTU	$	43,690		$	43,026			1.5	%
AIUS		12,003			9,523			26.0	%
Corporate and Other		(12,357	)		(8,856	)	NM
Total	$	43,336		$	43,693			-0.8	%

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.)

•For the quarter ended March 31, 2023, adjusted operating income of $53.1 million increase 4.3% compared to adjusted operating income of $50.9 million for the prior year quarter.

	For the Quarter Ended March 31,
Adjusted Operating Income ($ in thousands)	2023			2022
Operating income	$	43,336		$	43,693
Depreciation and amortization (1)		5,155			4,882
Legal fee expense related to certain matters (2)		4,619			2,347
Adjusted Operating Income	$	53,110		$	50,922
Increase (Decrease)		4.3	%

(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.

PRDO ANNOUNCES 1Q23 RESULTS …PG 4

NET INCOME AND EARNINGS PER DILUTED SHARE

For the quarter ended March 31, 2023, the Company recorded:

•Net income of $34.5 million compared to $32.1 million for the prior year quarter.

•Earnings per diluted share of $0.50 compared to $0.46 for the prior year quarter.

•Adjusted earnings per diluted share of $0.58 compared to $0.50 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 Quarter Ended March 31,
	2023			2022
Reported Earnings Per Diluted Share	$	0.50		$	0.46
Pre-tax adjustments included in operating expenses:
Amortization for acquired intangible assets (1)		0.04			0.02
Legal fee expense related to certain matters (2)		0.07			0.03
Tax effect of adjustments (3)		(0.03	)		(0.01	)
Adjusted Earnings Per Diluted Share	$	0.58		$	0.50

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

(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.

(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.

BALANCE SHEET AND CASH FLOW

•For the quarter ended March 31, 2023, net cash provided by operating activities was $4.6 million, compared to net cash provided by operating activities of $22.2 million for the prior year quarter.

•As of March 31, 2023 and December 31, 2022, cash, cash equivalents, restricted cash and available-for-sale short-term investments totaled $520.3 million and $518.2 million, respectively.

	For the Quarter Ended March 31,
Selected Cash Flow Items ($ in thousands)	2023		2022		% Change
Net cash provided by operating activities	$	4,572	$	22,154		-79.4	%
Capital expenditures	$	1,925	$	4,742		-59.4	%

PRDO ANNOUNCES 1Q23 RESULTS …PG 5

OUTLOOK

The Company is providing the following updated full year outlook, along with its second quarter 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
	For Quarter Ending June 30,		For the Year Ending December 31,
	OUTLOOK	ACTUAL	OUTLOOK	ACTUAL
	2023	2022	2023	2022
Operating Income	$38.9M - $40.9M	$33.9M	$121.1M - $138.1M	$129.6M
Depreciation and amortization	$4.4M	$4.9M	$17.5M	$19.8M
Legal fee expense related to certain matters (1)	$3.7M	$3.1M	$14.4M	$14.6M
Adjusted Operating Income	$47.0M - $49.0M	$41.9M	$153.0M -$170.0M	$164.0M
Earnings Per Diluted Share	$0.45 - $0.47	$0.37	$1.43 - $1.61	$1.39
Amortization of acquired intangible assets	$0.03	$0.02	$0.12	$0.11
Legal fee expense related to certain matters (1)	$0.05	$0.05	$0.21	$0.21
Tax effect of adjustments	($0.02)	($0.02)	($0.08)	($0.08)
Adjusted Earnings Per Diluted Share	$0.51 - $0.53	$0.42	$1.68 - $1.86	$1.63

(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 additional 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 further 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 27.0% for the second quarter and approximately 26.5% for 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.

PRDO ANNOUNCES 1Q23 RESULTS …PG 6

CONFERENCE CALL INFORMATION

Perdoceo Education Corporation will host a conference call on Thursday, May 4, 2023 at 5:30 p.m. Eastern time to discuss first quarter 2023 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 1-833-470-1428 (domestic) or 1-929-526-1599 (international). Both dial-in numbers will use the access code 536811. Viewers can also access the conference call by following this link https://events.q4inc.com/attendee/719481091. 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.

###

PRDO ANNOUNCES 1Q23 RESULTS …PG 7

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

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	March 31,			December 31,
	2023			2022
	(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents, unrestricted	$	89,845		$	109,408
Restricted cash		9,476			9,476
Short-term investments		420,943			399,315
Total cash and cash equivalents, restricted cash and short-term investments		520,264			518,199
Student receivables, net		44,989			42,551
Receivables, other		4,309			3,457
Prepaid expenses		11,383			8,411
Inventories		3,765			1,904
Other current assets		735			597
Total current assets		585,445			575,119
NON-CURRENT ASSETS:
Property and equipment, net		25,752			26,038
Right of use asset, net		24,277			26,156
Goodwill		243,941			243,540
Intangible assets, net		50,941			53,564
Student receivables, net		1,467			1,850
Deferred income tax assets, net		24,309			24,613
Other assets		6,880			6,488
TOTAL ASSETS	$	963,012		$	957,368
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Lease liability - operating	$	6,043		$	6,555
Accounts payable		15,178			13,518
Accrued expenses:
Payroll and related benefits		22,448			40,306
Advertising and marketing costs		7,654			8,977
Income taxes		20,079			7,814
Other		19,027			14,621
Deferred revenue		44,710			71,590
Total current liabilities		135,139			163,381
NON-CURRENT LIABILITIES:
Lease liability - operating		25,837			27,286
Other liabilities		40,864			40,856
Total non-current liabilities		66,701			68,142
STOCKHOLDERS' EQUITY:
Preferred stock		-			-
Common stock		899			894
Additional paid-in capital		686,719			684,183
Accumulated other comprehensive loss		(4,121	)		(5,447	)
Retained earnings		382,323			347,839
Treasury stock		(304,648	)		(301,624	)
Total stockholders' equity		761,172			725,845
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	963,012		$	957,368

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts and percentages)

	For the Quarter Ended March 31,
	2023			% of Total Revenue			2022			% of Total Revenue
REVENUE:
Tuition and fees, net	$	193,319			98.8	%	$	181,327			99.1	%
Other		2,279			1.2	%		1,632			0.9	%
Total revenue		195,598						182,959
OPERATING EXPENSES:
Educational services and facilities		33,851			17.3	%		28,088			15.4	%
General and administrative		112,686			57.6	%		106,296			58.1	%
Depreciation and amortization		5,155			2.6	%		4,882			2.7	%
Asset impairment		570			0.3	%		-			0.0	%
Total operating expenses		152,262			77.8	%		139,266			76.1	%
Operating income		43,336			22.2	%		43,693			23.9	%
OTHER INCOME:
Interest income		3,818			2.0	%		333			0.2	%
Interest expense		(95	)		0.0	%		(103	)		-0.1	%
Miscellaneous expense		(6	)		0.0	%		(89	)		0.0	%
Total other income		3,717			1.9	%		141			0.1	%
PRETAX INCOME		47,053			24.1	%		43,834			24.0	%
Provision for income taxes		12,569			6.4	%		11,756			6.4	%
NET INCOME		34,484			17.6	%		32,078			17.5	%
NET INCOME PER SHARE - BASIC:	$	0.51					$	0.47
NET INCOME PER SHARE -DILUTED:	$	0.50					$	0.46
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		67,235						68,746
Diluted		68,514						69,567
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
	For the Quarter Ended March 31,
(In Thousands)	2023						2022
NET INCOME	$	34,484					$	32,078
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
Foreign currency translation adjustments		26						(81	)
Unrealized gain (loss) on investments		1,300						(1,364	)
Total other comprehensive income (loss)		1,326						(1,445	)
COMPREHENSIVE INCOME	$	35,810					$	30,633

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	For the Year Ended March 31,
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	34,484		$	32,078
Adjustments to reconcile net income to net cash provided by operating activities:
Asset impairment		570			-
Depreciation and amortization expense		5,155			4,882
Bad debt expense		10,757			13,715
Compensation expense related to share-based awards		2,294			2,416
Deferred income taxes		304			986
Changes in operating assets and liabilities		(48,992	)		(31,923	)
Net cash provided by operating activities		4,572			22,154
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale investments		(83,777	)		(194,997	)
Sales of available-for-sale investments		64,344			59,825
Purchases of property and equipment		(1,925	)		(4,742	)
Business acquisition		-			(7,000	)
Net cash used in investing activities		(21,358	)		(146,914	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock		247			659
Purchase of treasury stock		(815	)		(3,828	)
Payments of employee tax associated with stock compensation		(2,209	)		(1,610	)
Release of cash held in escrow		-			(3,986	)
Net cash used in financing activities		(2,777	)		(8,765	)
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		(19,563	)		(133,525	)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of the period		118,884			325,178
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of the period	$	99,321		$	191,653

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED SELECTED SEGMENT INFORMATION

(In thousands, except percentages)

	For the Quarter Ended March 31,
	2023 (1)			2022
REVENUE:
CTU	$	124,492		$	113,148
AIUS		70,840			69,532
Corporate and Other		266			279
Total	$	195,598		$	182,959
OPERATING INCOME (LOSS):
CTU	$	43,690		$	43,026
AIUS		12,003			9,523
Corporate and Other		(12,357	)		(8,856	)
Total	$	43,336		$	43,693
OPERATING MARGIN (LOSS):
CTU		35.1	%		38.0	%
AIUS		16.9	%		13.7	%
Corporate and Other	NM			NM
Total		22.2	%		23.9	%

(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 (1)

(In thousands, unless otherwise noted)

	For the Quarter Ended March 31,
	ACTUAL
Adjusted Operating Income	2023		2022
Operating income	$	43,336	$	43,693
Depreciation and amortization (2)		5,155		4,882
Legal fee expense related to certain matters (3)		4,619		2,347
Adjusted Operating Income	$	53,110	$	50,922
	For the Quarter Ending June 30,
	OUTLOOK		ACTUAL
	2023		2022
Operating income	$38.9M - $40.9M		$	33,946
Depreciation and amortization (2)	4.4M			4,909
Legal fee expense related to certain matters (3)	3.7M			3,087
Adjusted Operating Income	$47.0M - $49.0M		$	41,942
	For the Year Ending December 31,
	OUTLOOK		ACTUAL
	2023		2022
Operating income	$121.1M - $138.1M		$	129,637
Depreciation and amortization (2)	17.5M			19,734
Legal fee expense related to certain matters (3)	14.4M			14,597
Adjusted Operating Income	$153.0M - $170.0M		$	163,968

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1) (cont’d)

	For the Quarter Ended March 31,
	ACTUAL
	2023			2022
Reported Earnings Per Diluted Share	$	0.50		$	0.46
Pre-tax adjustments included in operating expenses:
Amortization for acquired intangible assets (2)		0.04			0.02
Legal fee expense related to certain matters (3)		0.07			0.03
Total pre-tax adjustments	$	0.11		$	0.05
Tax effect of adjustments (4)		(0.03	)		(0.01	)
Total adjustments after tax		0.08			0.04
Adjusted Earnings Per Diluted Share	$	0.58		$	0.50
	For the Quarter Ending June 30,
	OUTLOOK			ACTUAL
	2023			2022
Reported Earnings Per Diluted Share	$0.45 - $0.47			$	0.37
Pre-tax adjustments included in operating expenses:
Amortization for acquired intangible assets (2)	0.03				0.02
Legal fee expense related to certain matters (3)	0.05				0.05
Total pre-tax adjustments	$	0.08		$	0.07
Tax effect of adjustments (4)		(0.02	)		(0.02	)
Total adjustments after tax	0.06				0.05
Adjusted Earnings Per Diluted Share	$0.51 - $0.53			$	0.42
	For the Year Ending December 31,
	OUTLOOK			ACTUAL
	2023			2022
Reported Earnings Per Diluted Share	$1.43 - $1.61			$	1.39
Pre-tax adjustments included in operating expenses:
Amortization for acquired intangible assets (2)	0.12				0.11
Legal fee expense related to certain matters (3)	0.21				0.21
Total pre-tax adjustments	$	0.33		$	0.32
Tax effect of adjustments (4)		(0.08	)		(0.08	)
Total adjustments after tax	0.25				0.24
Adjusted Earnings Per Diluted Share	$1.68 - $1.86			$	1.63

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1) (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 and the CalSouthern acquisition as of July 1, 2022.

(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.

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Document and Entity Information	May 04, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 04, 2023
Entity Registrant Name	PERDOCEO EDUCATION CORP
Entity Central Index Key	0001046568
Entity Emerging Growth Company	false
Securities Act File Number	0-23245
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-3932190
Entity Address, Address Line One	1750 E. Golf Road
Entity Address, City or Town	Schaumburg
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60173
City Area Code	847
Local Phone Number	781-3600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	PRDO
Security Exchange Name	NASDAQ