Career Education Corporation Reports Record Third Quarter Results; Third Quarter Net Revenues Up 39%.HOFFMAN ESTATES Hoffman Estates A village of northeast Illinois, a suburb of Chicago. Population: 49,700. , Ill.--(BUSINESS WIRE)--Nov. 2, 1998--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 record third quarter net revenues of $35.0 million and record third quarter net income of $541,000. This compares to actual and 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 $25.1 million and an actual net loss of $1.7 million and a pro forma net loss of $1.5 million during the same quarter last year. 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. New student enrollment (starting class) rose 25% in the third quarter, on a same school basis, to 5,996 students, up from 4,780 for the same period a year ago. Student population was up 20% at the end of September September: see month. , totaling 13,170 students compared to 10,952 on a same school basis at September 30, 1997. The Company said its marketing programs have expanded the market reach of its schools and that high school and out of town students accounted for a significant portion of this growth. For the nine months ended September 30, 1998, net revenues were $99.9 million, up significantly from actual net revenues of $50.8 million and pro forma net revenues of $74.6 million for the same period last year. For the first nine months, Career Education Corporation recorded net income of $35,000, 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. This compares to an actual net loss of $1.8 million and a pro forma net loss of $1.8 million during the first nine months 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-recurring charge, EBITDA was $12.3 million through nine months, an increase of 71 percent over pro forma 1997 EBITDA of $7.2 million. The Company has included EBITDA information because it believes that it provides for a more complete analysis of the Company's results of operations. "These results reflect the strength of our position in the marketplace and the convergence convergence Mathematical property of infinite series, integrals on unbounded regions, and certain sequences of numbers. An infinite series is convergent if the sum of its terms is finite. of several long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. trends that will help drive our continued growth," 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 acquiring and
expanding the curricula of schools that are recognized leaders in their
areas of education. We also are enhancing the marketing programs at
these schools, while working closely with employers to be certain our
students learn the job skills necessary for success in the high growth
service and technology sectors. The result has been a dramatic increase
in enrollment and success in placing a high percentage of our graduates
in good jobs."
Career Education Corporation is one of the largest providers of private, for-profit for-prof·it adj. Established or operated with the intention of making a profit: a for-profit organization. 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. . 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" . The Company's schools enjoy long operating histories and offer a wide variety of bachelor's bach·e·lor's n. A bachelor's degree. 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 dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). in the Company's filings with the Securities and Exchange Commission. Career Education Corporation assumes no obligation to update its forward-looking statements.
Career Education Corporation
CONSOLIDATED STATEMENT OF INCOME -- COMPARISON
For the Quarter Ended September 30
(Amounts in thousands except EPS)
1998 1997 1997
Actual Actual Pro Forma
-------- -------- ----------
Revenue:
Tuition & registration
fee revenue, net $ 31,715 $ 22,542 $ 22,542
Other revenue, net 3,279 2,573 2,573
Net school revenue 34,994 25,115 25,115
Operating Expenses:
Educational services and
facilities 14,584 11,179 11,179
General & administration 16,028 12,910 12,910
Depreciation & amortization 3,203 2,891 2,891
-------- -------- --------
Total operating expenses 33,815 26,980 26,980
-------- -------- --------
% of net school revenue 96.6% 107.4% 107.4%
Income (loss) from
operations 1,179 (1,865) (1,865)
% of net school revenue 3.4% -7.4% -7.4%
Interest expense, net (247) (1,061) (796)
-------- -------- --------
Income (loss) before income
taxes 932 (2,926) (2,661)
% of net school revenue 2.7% -11.7% -10.6%
Provision (benefit) for
income taxes 391 (1,218) (1,118)
-------- -------- --------
Net income (loss) $ 541 $ (1,708) $ (1,543)
-------- -------- --------
-------- -------- --------
% of net school revenue 1.5% -6.8% -6.1%
Career Education Corporation
CONSOLIDATED STATEMENT OF INCOME -- COMPARISON
For the Quarter Ended September 30
(Amounts in thousands except EPS)
1998 1997 1997
Actual Actual Pro Forma
-------- -------- ---------
Net income (loss)
attributable to common
stockholders:
Net income (loss) as reported $ 541 $ (1,708) $ (1,543)
Dividends on preferred stock - (705) -
Accretion to redemption value of
preferred stock and warrants - (406) (29)
-------- -------- ---------
Net income (loss) attributable
to common stockholders $ 541 $ (2,819) $ (1,572)
-------- -------- ---------
-------- -------- ---------
Net income (loss) per share
attributable to common
stockholders:
Basic -- $ 0.08 $ (3.67) $ (0.59)
Diluted -- $ 0.07 $ (3.67) $ (0.59)
Weighted average number of
shares outstanding:
Basic -- 7,142 768 2,686
Diluted -- 7,338 768 2,686
Pro forma information:
Net income (loss) attributable
to common stockholders $ 541 $ (2,819) $ (1,572)
Dividends on preferred stock - 705 -
Accretion to redemption value
of preferred stock and warrants - 377 -
-------- -------- ---------
Pro forma net income (loss)
attributable to
common stockholders $ 541 $ (1,737) $ (1,572)
-------- -------- ---------
-------- -------- ---------
Pro forma net income (loss) per
share attributable to common
stockholders:
Basic -- $ 0.08 $ (0.46) $ (0.32)
Diluted -- $ 0.07 $ (0.46) $ (0.32)
Pro forma weighted average
number of shares outstanding:
Basic -- 7,142 3,766 4,893
Diluted -- 7,338 3,766 4,893
Career Education Corporation
CONSOLIDATED STATEMENT OF INCOME -- COMPARISON
For the Nine-Month Period Ended September 30
(Amounts in thousands except EPS)
1998 1997 1997
Actual Actual Pro Forma
---------- ---------- ----------
Revenue:
Tuition & registration
fee revenue, net $ 91,659 $ 45,615 $ 68,172
Other revenue, net 8,257 5,152 6,464
---------- ---------- ----------
Net school revenue 99,916 50,767 74,636
Operating Expenses:
Educational services
and facilities 41,419 22,269 29,849
General & administration 46,161 23,852 37,622
Depreciation & amortization 9,328 5,000 8,199
Compensation expense
related to the offering 1,961 - -
---------- ---------- ----------
Total operating expenses 98,869 51,121 75,670
---------- ---------- ----------
% of net school revenue 99.0% 100.7% 101.4%
Income (loss) from operations 1,047 (354) (1,034)
% of net school revenue 1.0% -0.7% -1.4%
Interest expense, net (987) (2,046) (1,326)
---------- ---------- ----------
Income (loss) before
income taxes and
extraordinary item 60 (2,400) (2,360)
% of net school revenue 0.1% -4.7% -3.2%
Provision (benefit) for
income taxes 25 (1,008) (991)
---------- ---------- ----------
Net income (loss) before
extraordinary item 35 (1,392) (1,369)
% of net school revenue 0.0% -2.7% -1.8%
Extraordinary loss on early
extinguishment of debt - (418) (418)
---------- ---------- ----------
Net income (loss) $ 35 $ (1,810) $ (1,787)
---------- ---------- ----------
---------- ---------- ----------
% of net school revenue 0.0% -3.6% -2.4%
Career Education Corporation
CONSOLIDATED STATEMENT OF INCOME -- COMPARISON
For the Nine Month Period Ended September 30
(Amounts in thousands except EPS)
1998 1997 1997
Actual Actual Pro Forma
-------- -------- ---------
Net loss attributable to common
stockholders:
Net income (loss) as reported $ 35 $ (1,810) $ (1,787)
Dividends on preferred stock (274) (1,444) -
Accretion to redemption value of
preferred stock and warrants (2,153) (727) (29)
-------- -------- ---------
Net loss attributable
to common stockholders $ (2,392) $ (3,981) $ (1,816)
-------- -------- ---------
-------- -------- ---------
Net income (loss) per share
attributable to common
stockholders:
Basic -- $ (0.38) $ (5.18) $ (0.68)
Diluted -- $ (0.38) $ (5.18) $ (0.68)
Weighted average number of
shares outstanding:
Basic -- 6,309 768 2,686
Diluted -- 6,309 768 2,686
Pro forma information:
Net loss attributable
to common stockholders $(2,392) $ (3,981) $ (1,816)
Dividends on preferred stock 274 1,444 -
Accretion to redemption value
of preferred stock and warrants 2,055 698 -
-------- -------- ---------
Pro forma net loss
attributable to
common stockholders $ (63) $ (1,839) $ (1,816)
-------- -------- ---------
-------- -------- ---------
Pro forma net income loss
share attributable to common
stockholders:
Basic -- $ (0.01) $ (0.66) $ (0.37)
Diluted -- $ (0.01) $ (0.66) $ (0.37)
Pro forma weighted average
number of shares outstanding:
Basic -- 6,699 2,788 4,893
Diluted -- 6,699 2,788 4,893
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