Career Education Corporation Reports Record Second Quarter Revenues and Earnings.HOFFMAN ESTATES Hoffman Estates A village of northeast Illinois, a suburb of Chicago. Population: 49,700. , Ill.--(BUSINESS WIRE)--Aug. 3, 1998-- Second Quarter, First Half Net Revenues Up 25% Career Education Corporation (Nasdaq:CECO CECO Council of Engineering Companies of Oregon CECO Cost Estimate Change Order CECO Center for Economic and Community Outreach CECO CENTCOM Engineer Contingency Organization CECO Concrete Engineering Company of Omaha (Ceco Concrete Construction LLC) ) today reported for the second quarter ended June June: see month. 30, 1998 record net revenues of $32.3 million and record net income of $209,000 compared to pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net revenues of $25.9 million and a pro forma net loss of $1.1 million during the same quarter last year. The actual net loss in the second quarter of 1997 was $901,000. Pro forma information reflects the results of school operations acquired by the Company during 1997 and the initial public offering as if it had occurred at January January: see month. 1, 1997. For the six-month period ended June 30,1998, net revenues were $64.9 million, up 25 percent from pro forma net revenues of $51.7 million for the same period last year. For the first half of 1998, Career Education Corporation recorded a net loss of $506,000, which includes a non-recurring, non-cash compensation charge in the first quarter of $1.2 million, net of tax, recorded in connection with the company's initial public offering. Excluding this charge, the company had net income of $631,000 for the first half of 1998. This compares to a pro forma net loss of $1.4 million, and an actual loss of $102,000 during the first half of 1997. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
a. 1. Mentioned or named before; aforesaid; mentioned or named earlier in the same text (in written documents). Adj. 1. non- non- word element [L.]not . non- pref. Not: noninvasive. recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. charge, EBITDA was $8.0 million during the first half of 1998, an increase of 23 percent over pro forma 1997 results. "Our performance during the second quarter and through the first half of the year demonstrates the success of our strategy to acquire schools of choice and invest in their growth by expanding curricula and marketing programs," said John M. Larson Larson may refer to: People with the surname Larson:
adj. Of or relating to a kitchen or to cookery. [Latin cul  n arts.
"We are pleased to report that our new student enrollment (starting class) in the second quarter was extremely strong, and rose 54%, on a same school basis, to 2,833 students, up from 1,844 students for the same period a year ago," Larson said. The Company's student population was up 26% at the end of June, totaling 10,415 students compared to 8,246 students on a same school basis at the end of June 1997. "This robust growth reflects our aggressive marketing and advertising initiatives," he said. The strong results also reflect new programs that were introduced into several schools in 1997. Larson pointed to the Company's recent investments in culinary arts and Katharine Katharine or Katherine. For some persons thus named, use Catherine. Gibbs Gibbs , Josiah Willard 1839-1903. American mathematician and physicist who formulated the theoretical foundation of physical chemistry, developed vector analysis, and conducted optical and thermodynamic research. Noun 1. Schools' new program offerings as examples of the company's growth strategy in action. "In the year since we acquired Katharine Gibbs, we have expanded its core curricula from a singular SINGULAR, construction. In grammar the singular is used to express only one, not plural. Johnson. 2. In law, the singular frequently includes the plural. focus on business studies to include computer technologies and design. Since we simultaneously increased investments in advertising and marketing, student enrollment at the Katharine Gibbs Schools at June 30, 1998 is up nearly 50 percent over last year," he said. "We also have strengthened our culinary arts division by both selectively acquiring top schools in key U.S. markets such as Pasadena, California Pasadena is a city in Los Angeles County, California, United States. As of the 2000 census, the city population was 133,936 and the 160th largest city in the United States. The California Finance Department estimates the Pasadena population to be 146,166 in 2005. and Scottsdale, Arizona Scottsdale (O'odham Vaṣai S-vaṣonĭ) is a city in Maricopa County, Arizona, United States, adjacent to Phoenix. Scottsdale has become internationally recognized as a premier and posh tourist destination, while maintaining its own identity and culture as " and by adding the culinary curricula to existing schools. For example, in July July: see month. we announced that the Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians Culinary Academy will offer its programs at Brown Institute in Mendota Heights, Minnesota Mendota Heights is a city in Dakota County, Minnesota, United States. The population was 11,434 at the 2000 census. The St. Thomas Academy boys school is located here, as well as Henry Sibley High School. , a curriculum expansion scheduled to begin in early 1999," Larson said. The Company has announced two culinary school acquisitions thus far in 1998. CECO acquired Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, School of Arts in Pasadena Pasadena (păs'ədē`nə). 1 City (1990 pop. 131,591), Los Angeles co., S Calif., at the base of the San Gabriel Mts.; inc. 1866. in March, and Scottsdale Scottsdale, city (1990 pop. 130,069), Maricopa co., central Ariz.; settled in 1895 by Winfield Scott, inc. 1951. It is a resort and retirement center in the Phoenix metropolitan area. Culinary Institute in Scottsdale, Arizona, on July 31. "As we move into the second half of 1998 we expect our momentum to continue to build along with the reputations, curricula and enrollments of our schools," Larson said. July new enrollments (new students starting class) should approximate 3,100 students, a 26% increase compared to 2,468 students for the July start of 1997. "Our plan is to continue to add quality schools and curricula in the four areas we have identified as having high demand and growth potential in the education market," Larson concluded. Career Education Corporation is one of the largest providers of private, for-profit post secondary education in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , with approximately 10,400 students enrolled as of June 30, 1998. The company operates 20 campuses in 13 states and two Canadian provinces Noun 1. Canadian province - Canada is divided into 12 provinces for administrative purposes province, state - the territory occupied by one of the constituent administrative districts of a nation; "his state is in the deep south" . All of the Company's schools enjoy long operating histories and offer a wide variety of bachelor's degree, associate degree and diploma DIPLOMA. An instrument of writing, executed by, a corporation or society, certifying that a certain person therein named is entitled to a certain distinction therein mentioned. 2. programs in career-oriented disciplines within the Company's core curricula of computer technologies, visual communications and design technologies, business studies and culinary arts. The forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. contained in this release are based upon various assumptions, and certain risks and uncertainties could cause actual results to differ materially from those stated. Factors that could cause such differences include those matters disclosed in the Company's filings with the Securities and Exchange Commission. Career Education Corporation assumes no obligation to update its forward-looking statements. T* Career Education Corporation CONSOLIDATED STATEMENT OF INCOME -- COMPARISON For the Quarter Ended June 30, 1998 and 1997 (Amounts in thousands except EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) Unaudited 1998 1997 1997 Actual Actual Pro Forma ------ ------- --------- Revenue: Tuition For tuition fees in the United Kingdom, see . Tuition means instruction, teaching or a fee charged for educational instruction especially at a formal institution of learning or by a private tutor usually in the form of one-to-one tuition. & registration fee revenue, net $29,756 $12,521 $23,979 Other revenue, net 2,569 1,348 1,893 ------- ------- ------- Net school revenue 32,325 13,869 25,872 ------- ------- ------- Operating Expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. : Educational services and facilities 13,661 6,402 11,446 General & administration 15,035 6,247 11,693 Depreciation & amortization 3,073 1,407 2,625 ------ ------- ------- Total operating expenses 31,769 14,056 25,764 ------ ------- ------- % of net school revenue 98.3% 101.3% 99.6% Income (loss) from operations 556 (187) 108 % of net school revenue 1.7% -1.3% 0.4% Interest expense, net (196) (664) (1,270) ------ ------- ------- Income (loss) before income taxes and extraordinary item 360 (851) (1,162) % of net school revenue 1.1% -6.1% -4.5% Provision (benefit) for income taxes 151 (368) (488) ------- ------ ------- Net income (loss) before extraordinary item 209 (483) (674) % of school revenue 0.6% -3.5% -2.6% Extraordinary loss on early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt -- (418) (418) ------ ------ ------- Net income (loss) $209 $(901) $(1,092) ------ ------- ------- ------ ------- ------- % of school revenue 0.6% -6.5% -4.2% Career Education Corporation CONSOLIDATED STATEMENT OF INCOME -- COMPARISON For the Quarter Ended June 30, 1998 and 1997 (Amounts in thousands except EPS) Unaudited 1998 1997 1997 Actual Actual Pro Forma ________ ________ _________ Net income (loss) attributable to common stockholders: Net income (loss) as reported $ 209 $ (901) $(1,092) Dividends on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. -- (439) -- Accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the to redemption value Redemption Value refers to the value that is placed on a party's head after they wrong you in some way. It is seen as the payment you are willing to make to get justice. of preferred stock and warrants -- (240) -- ________ ________ _________ Net income (loss) attributable to common stockholders: $ 209 $(1,580) $(1,092) ________ ________ _________ ________ ________ _________ Net income (loss) per share attributable to common stockholders: Basic -- $ 0.03 $ (2.06) $(1.42) Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. -- $ 0.03 $ (2.06) $(1.42) Weighted average number of shares outstanding: Basic -- 7,120 768 768 Diluted -- 7,336 768 768 Pro forma information: Net income (loss) as reported $ 209 $(1,580) $ (1,092) Dividends on preferred stock -- 439 -- Accretion to redemption value of preferred stock and warrants -- 240 -- ________ ________ _________ Pro forma net income (loss) attributable to common stockholders $ 209 $ (901) $ (1,092) ________ ________ _________ ________ ________ _________ Pro forma net income (loss) per share attributable to common stockholders: Basic -- $ 0.03 $ (0.35) $ (0.42) Diluted -- $ 0.03 $ (0.35) $ (0.42) Pro forma weighted average number of shares outstanding: Basic -- 7,120 2,582 2,582 Diluted -- 7,336 2,582 2,582 Career Education Corporation CONSOLIDATED STATEMENT OF INCOME -- COMPARISON For the Six-Month Period Ended June 30, 1998 and 1997 (Amounts in thousands except EPS) Unaudited 1998 1997 1997 Actual Actual Pro Forma ________ ________ _________ Revenue: Tuition & registration fee revenue, net $ 59,944 $ 23,073 $ 47,794 Other revenue, net 4,978 2,579 3,901 ________ ________ _________ Net school revenue 64,922 25,652 51,695 ________ ________ _________ Operating Expenses: Educational services and facilities 26,835 11,090 21,500 General & administration 30,133 10,942 23,724 Depreciation & amortization 6,125 2,109 5,482 Compensation expense related to offering 1,961 -- -- ________ ________ _________ Total operating expenses 65,054 24,141 50,706 ________ ________ _________ % of net school revenue 100.2% 94.1% 98.1% Income (loss) from operations (132) 1,511 989 % of net school revenue -0.2% 5.9% 1.9% Interest expense, net (740) (985) (2,601) ________ ________ _________ Income (loss) before income taxes and extraordinary item (872) 526 (1,612) % of net school revenue -1.3% 2.1% -3.1% Provision (benefit) for income taxes (366) 210 (677) ________ ________ _________ Net income (loss) before extraordinary item (506) 316 (935) % of school revenue -0.8% 1.2% -1.8% Extraordinary loss on early extinguishment of debt -- (418) (418) ________ ________ _________ Net loss $ (506) $(102) $(1,353) ________ ________ _________ ________ ________ _________ % of school revenue -0.8% -0.4% -2.6% Career Education Corporation CONSOLIDATED STATEMENT OF INCOME -- COMPARISON For the Six-Month Period Ended June 30, 1998 and 1997 (Amounts in thousands except EPS) Unaudited 1998 1997 1997 Actual Actual Pro Forma Net loss attributable to common stockholders: Net loss as reported $ (506) $ (102) $ (1,353) Dividends on preferred stock (274) (739) -- Accretion to redemption value of preferred stock and warrants (2153) (321) -- Net loss attributable to common -------- -------- -------- stockholders $ (2,933) $ (1,162) $ (1,353) -------- -------- -------- -------- -------- -------- Net loss per share attributable to common stockholders: Basic -- $ (0.48) $ (1.51) $ (1.76) Diluted -- $ (0.48) $ (1.51) $ (1.76) Weighted average number of shares outstanding: Basic -- 6,072 768 768 Diluted -- 6,072 768 768 Pro forma information: Net loss as reported $ (2,933) $ (1,162) $ (1,353) Dividends on preferred stock 274 739 -- Accretion to redemption value of preferred stock and warrants 2055 321 -- Pro forma net loss attributable to common stockholders $ (604) $ (102) $ (1,353) Pro forma net loss per share attributable to common stockholders: Basic -- $ (0.09) $ (0.04) $ (0.60) Diluted -- $ (0.09) $ (0.04) $ (0.60) Pro forma weighted average number of shares outstanding: Basic -- 6,660 2,273 2,273 Diluted -- 6,660 2,273 2,273 CONTACT: Career Education Corp. William Klettke, 630/237-3615 |
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