Career Education Corporation Reports Record Third Quarter Results.Business Editors HOFFMAN ESTATES Hoffman Estates A village of northeast Illinois, a suburb of Chicago. Population: 49,700. , Ill.--(BUSINESS WIRE)--Oct. 31, 2000 3Q Net Revenues Up 48%; 3Q Net Income Up 159%; Summer & Fall Starts Up 28%; October October: see month. Student Population Up 29% Career Education Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : 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 net revenues, net income and enrollment for the third quarter ended September September: see month. 30, 2000. Third quarter 2000 net revenues were $82.3 million, up 48 percent from $55.6 million for the same period last year. Third quarter 2000 net income was $4.4 million, or $0.21 per 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. share, more than two and a half times last year's net income of $1.7 million, or $0.10 per diluted share. Net revenues for the first nine months of 2000 totaled $226.2 million, up 51 percent from $149.8 million for the same period last year. Net income for the first nine months of 2000 was $10.3 million, or $0.55 per diluted share, excluding the first quarter adjustment to reflect the cumulative effect of the change in accounting principle. This represents a 164 percent increase over net income during the same period last year of $3.9 million, or $0.25 per diluted share. Summer and fall (July July: see month. through October) 2000 student starts rose 28 percent to approximately 16,500, up from 12,900 starts for the same four-month period last year. Career Education Corporation has included October student starts to provide meaningful comparative data for the fall term. Beginning in 2000, several CEC (Central Electronic Complex) The set of hardware that defines a mainframe, which includes the CPU(s), memory, channels, controllers and power supplies included in the box. Some CECs, such as IBM's Multiprise 2000 and 3000, include data storage devices as well. campuses changed their fall term from a September to October start. This planned change One of the foundational definitions in the field of organizational development (aka OD) is planned change: “Organization Development is an effort planned, organization-wide, and managed from the top, to increase organization effectiveness and health through planned was made to improve the academic calendar. Third quarter 2000 student starts rose 15 percent to approximately 9,700 starts, up from 8,424 for the same period last year. Total student population on October 31, 2000 was approximately 29,000, up 29 percent from 22,500 on October 31, 1999. On a same school basis, student population increased approximately 22 percent. CEC said the growth in student starts was driven by new academic programs and an increase in enrollment from high school graduates and out-of-town out-of-town adj. 1. Of, relating to, or being from another town or city. 2. Happening in another town or city: the out-of-town début of a new musical. Adj. 1. students. Third quarter 2000 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.
"Through strong internal growth and strategic acquisitions, Career Education Corporation has become a growth leader in the private, postsecondary education industry," said John M. Larson, chairman, president and chief executive officer. "Through the first three quarters of 2000, our net revenues and earnings are at record levels and all of the key quarterly performance indicators, including our default, retention and placement rates, continue to be among the best in our industry. "Our marketing programs continue to generate record numbers of quality leads from all of the high growth demographic areas, including recent high school graduates, young adults and older students. Our brand name schools, which are located in major geographic centers throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada, have successfully expanded their market reach to draw a significant number of students from outside their local area," Mr. Larson said. CEC recently announced a merger agreement with EduTrek International, Inc. EduTrek owns and operates American InterContinental University American InterContinental University, commonly called AIU, is an international for-profit university owned by Career Education Corporation (stock symbol CECO). It was founded in 1977 as the American College of Applied Arts. (AIU AIU American Intercontinental University AIU Allegheny Intermediate Unit (Homestead, PA) AIU Atlantic International University AIU Association of Indian Universities AIU Association Internationale des Universités ) and has seven campuses located in Atlanta (Buckhead and Dunwoody), Dubai, Ft. Lauderdale, London, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and Washington D.C., with approximately 4,500 students. The University is accredited accredited recognition by an appropriate authority that the performance of a particular institution has satisfied a prestated set of criteria. accredited herds cattle herds which have achieved a low level of reactors to, e.g. by the Commission on Colleges of the Southern Association of Colleges and Schools The Southern Association of Colleges and Schools (SACS) is a regional educational accreditation agency for over 13,000 public and private educational institutions ranging from preschool to college level in the southern United States. (SACS Sauk also Sac n. pl. Sauk or Sauks also Sac or Sacs 1. a. A Native American people formerly inhabiting parts of Wisconsin, Illinois, and Iowa, with a present-day population mainly in ). The Company also noted that plans for opening CEC's first two start-up Start-up The earliest stage of a new business venture. campuses in 2001 remain on track. The new International Academy of Design and Technology The International Academy of Design and Technology (IADT) is a for-profit private media arts college accredited by a national agency, the Accrediting Council for Independent Colleges and Schools (ACICS). in Orlando has begun marketing and enrolling students for its expected April 2001 opening and the Katharine Gibbs School in Philadelphia is awaiting regulatory approval for its anticipated start in April 2001. "These new avenues to growth build on CEC's fundamental strengths, including our academic excellence in the four core curricula of visual communication and design technologies, information technology, business studies and culinary cu·li·nar·y adj. Of or relating to a kitchen or to cookery. [Latin cul  n arts, as well as our highly effective
approach to marketing," Mr. Larson said.
Career Education Corporation is one of the largest providers of private, for-profit postsecondary 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 currently operates 30 campuses in 15 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" . CEC 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 visual communication and design technologies, information technology, business studies and culinary arts. Career Education Corporation will host a conference call with financial analysts on Wednesday, November 1, 2000 at 10:30 a.m. (Eastern Standard Time) to discuss its third quarter financial performance. Interested parties can listen to the conference call live through the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.careered.com, www.vcall.com, or by calling (913) 981-5574. Following the conference call, a rebroadcast will be available for 90 days at www.vcall.com, or for seven days by calling (719) 457-0820 and citing confirmation code 708849. 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. Such statements include, but are not limited to, plans to open two start-up campuses in 2001 and plans to merge with EduTrek International, Inc. Factors that could cause such differences include costs and difficulties associated with opening new campuses, including regulatory approvals and local business conditions and difficulties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the merger, including failure of the parties to satisfy closing conditions and those other matters disclosed in the Company's filings with the Securities and Exchange Commission (SEC). Career Education Corporation assumes no obligation to update its forward-looking statements.
Career Education Corporation
CONSOLIDATED STATEMENTS OF INCOME
For the Nine Months Ended September 30,
2000 and 1999 (Amounts in thousands,
except EPS)
2000 1999
ACTUAL ACTUAL
------------ ------------
Revenue:
Tuition and registration
fees, net $ 205,566 $ 137,057
Other, net 20,591 12,763
------------ ------------
------------ ------------
Net school revenue 226,157 149,820
------------ ------------
Operating Expenses:
Educational services and
facilities 92,852 63,060
General and administration 99,886 68,565
Depreciation and amortization 14,964 10,366
------------ ------------
Total operating expenses 207,702 141,991
------------ ------------
Income from operations 18,455 7,829
Interest income/(expense) (188) (911)
------------ ------------
Income before provision for
income taxes 18,267 6,918
Provision for income taxes 7,977 2,974
------------ ------------
Net Income before cumulative effect
of change in accounting principle 10,290 3,944
Cumulative effect of change in
accounting principle, net of tax
effect of $587 (778) -
------------ ------------
Net Income $ 9,512 $ 3,944
============ ============
======================================================================
Diluted net income per share
attributable to common stockholders
before cumulative effect of change
in accounting principle $ 0.55 $ 0.25
Diluted net income per share
attributable to common
stockholders $ 0.51 $ 0.25
Diluted weighted average number of
shares outstanding 18,773 15,785
======================================================================
Note: Certain amounts from 1999 have been reclassified to conform
with the current year presentation.
Career Education Corporation
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended September
30, 2000 and 1999 (Amounts in
thousands, except EPS)
2000 1999
ACTUAL ACTUAL
------------ -------------
Revenue:
Tuition and registration
fees, net $ 74,007 $ 50,094
Other, net 8,254 5,511
------------ -------------
------------ -------------
Net school revenue 82,261 55,605
------------ -------------
Operating Expenses:
Educational services and
facilities 34,003 23,379
General and administration 35,246 25,216
Depreciation and amortization 5,278 3,731
------------ -------------
Total operating expenses 74,527 52,326
------------ -------------
Income from operations 7,734 3,279
Interest income/(expense) 108 (366)
------------ -------------
Income before provision for
income taxes 7,842 2,913
Provision for income taxes 3,451 1,252
------------ -------------
Net Income $ 4,391 $ 1,661
============ =============
======================================================================
Diluted net income per share $ 0.21 $ 0.10
Diluted weighted average number
of shares outstanding 21,138 16,104
======================================================================
Note: Certain amounts from 1999 have been reclassified to conform
with the current year presentation.
Career Education Corporation
SELECTED BALANCE SHEET DATA
As of September 30, 2000 and 1999
(Amounts in thousands)
2000 1999
----------- -----------
Cash $ 40,447 $ 39,664
Receivables, net 31,332 15,654
Current assets 89,098 64,410
Total assets 265,904 197,995
Current liabilities 53,802 36,819
Long-term liabilities 23,939 55,664
Stockholders' investment 188,163 105,512
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