Career Education Corporation Reports Results for 2008 Fourth Quarter and Full Year.HOFFMAN ESTATES Hoffman Estates A village of northeast Illinois, a suburb of Chicago. Population: 49,700. , Ill. -- 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 fourth quarter 2008 consolidated revenue from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $431.8 million and consolidated income from continuing operations of $34.3 million, or $0.38 per diluted share. For the full year of 2008, consolidated revenue from continuing operations was $1.705 billion and consolidated income from continuing operations was $69.6 million, or $0.77 per diluted share. "2008 was a year of progress for our organization and I am proud of our results," said Gary E. McCullough, president and chief executive officer. "We exceeded our 2008 earnings and cash flow objectives while executing on our fundamental strategy of positioning the company to deliver our previously communicated 2010 milestones. We entered 2009 in a very strong financial position and will continue to invest in and improve our operating model Operating Model is a term that is used in many contexts. In essence an operating model describes how an organization operates across both business and technology domains. The Operating Model describes what is important for the organization. with a heightened emphasis on generating greater revenue growth." RESULTS OF CONTINUING OPERATIONS During the fourth quarter, we ceased operations for Brooks College Brooks College is a system of two for-profit colleges in Long Beach and Sunnyvale, California. They offer career college programs in a variety of areas. The school in Long Beach is best known for its fashion design and fashion marketing programs (and their ads on late-night - Long Beach, CA, 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). (IADT IADT International Academy of Design and Technology IADT Institute of Art, Design and Technology (Dún Laoghaire, Ireland) IADT Initial Active Duty Training IADT Integrated Automatic Detection & Tracking ) - Pittsburgh, PA and Gibbs College Katharine Gibbs College is a private for-profit institution of higher learning based in the United States of America, founded by Katharine Gibbs. As the Providence School in Rhode Island, it was originally founded by Katharine Gibbs in 1911 as a selective institution to - Piscataway, NJ. As a result, the results of operations for these three campuses are now included within discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Except as otherwise noted, financial data and non-financial metrics reflected in this release exclude discontinued operations. Quarterly income statements for 2007 and 2008 reflecting this change have been provided in the exhibits section of this release. Three Months Ended December 31, 2008 * Total revenue from continuing operations was $431.8 million during the fourth quarter of 2008, a 5.2 percent decrease from $455.3 million during the fourth quarter of 2007. * Included in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the three months ended December 31, 2008 and the three months ended December 31, 2007 are the following significant items: [TABLE OMITTED] * Operating income was $43.5 million during the fourth quarter of 2008, an increase from $16.1 million of operating income during the fourth quarter of 2007. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: percentage was 10.1 percent during the fourth quarter of 2008, a 6.6 percentage point increase relative to an operating profit margin Operating profit margin The ratio of operating profit to net sales. percentage of 3.5 percent during the fourth quarter of 2007. * Income from continuing operations was $34.3 million, or $0.38 per diluted share, during the fourth quarter of 2008, compared to income from continuing operations of $19.1 million, or $0.21 per diluted share, during the fourth quarter of 2007. The fourth quarter of 2008 results from continuing operations include a $3.0 million, or $0.02 per diluted share, foreign currency transaction gain. Twelve Months Ended December 31, 2008 * Total revenue from continuing operations was $1.705 billion during the twelve months ended December 31, 2008, relative to $1.747 billion during the twelve months ended December 31, 2007. * Included in operating income for the twelve months ended December 31, 2008 and the twelve months ended December 31, 2007 are the following significant items: [TABLE OMITTED] * Operating income declined to $77.7 million during the twelve months ended December 31, 2008, from $89.4 million during the twelve months ended December 31, 2007. Operating margin percentage decreased to 4.6 percent during the twelve months ended December 31, 2008, from 5.1 percent during the twelve months ended December 31, 2007. * Income from continuing operations during the twelve months ended December 31, 2008, was $69.6 million, or $0.77 per diluted share, relative to $77.5 million, or $0.82 per diluted share, during the twelve months ended December 31, 2007. The 2008 results from continuing operations include a $3.0 million, or $0.02 per diluted share, foreign currency transaction gain. CONSOLIDATED CASH FLOWS AND FINANCIAL POSITION Cash Flows * Cash provided by operating activities was $186.7 million during 2008, compared to cash provided by operating activities of $222.1 million during 2007. * Capital expenditures decreased to $53.9 million during 2008, from $57.6 million during 2007. Current year capital expenditures represented 3.2 percent of total consolidated revenue. Financial Position * As of December 31, 2008 and December 31, 2007, cash and cash equivalents and investments totaled $508.7 million and $388.6 million, respectively. * Days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). (DSO See CSO. ) were 15 days as of December 31, 2008, relatively consistent with DSO of 14 days as of December 31, 2007. POPULATION AND NEW STUDENT START DATA Student Population Total student population by reportable segment as of January 31, 2009 and 2008, were as follows: [TABLE OMITTED] New Student Starts New student starts by reportable segment during the fourth quarter of 2008 and 2007, were as follows: [TABLE OMITTED] (1) In the fourth quarter 2008, Culinary had one less start period than the fourth quarter of 2007. CONFERENCE CALL INFORMATION Career Education Corporation will host a conference call on February 20, 2009 at 10:00 AM (Eastern Time). Interested parties can access the live webcast of the conference call at www.careered.com. Participants can also listen to the conference call by dialing 866-713-8563 (domestic) or 617-597-5311 (international) and citing code 11731813. 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.careered.com. A replay of the call will also be available for seven days by calling 888-286-8010 (domestic) or 617-801-6888 (international) and citing code 11900406. About Career Education Corporation The colleges, schools, and universities that are part of the Career Education Corporation (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. ) family offer high quality education to a diverse population of approximately 90,000 students across the world in a variety of career-oriented disciplines. The more than 75 campuses that serve these students are located throughout the U.S. and in France, Italy, and the United Kingdom, and offer doctoral, master's, bachelor's, and associate degrees and diploma and certificate programs. Approximately one-third of its students attend the web-based virtual campuses of 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. Online and Colorado Technical University Colorado Technical University (CTU) is a system of proprietary for-profit colleges in the United States providing career training, accredited programs, and college degrees in a variety of areas. CTU grants bachelor's, master's and doctoral degrees. Online. CEC is an industry leader whose gold-standard brands are recognized globally. Those brands include, among others, the Le Cordon Bleu For the Schnitzel variant, see . Le Cordon Bleu (French for "blue ribbon") is an international group of hospitality management and cooking schools teaching French cuisine. Schools 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. ; Harrington College of Design Harrington College of Design is located in the Loop area of Chicago, Illinois. It offers students programs leading to either a bachelor's or associate's degree upon completion of the Interior Design Program, Digital Photography Program, or Communication Design Program. ; Brooks Institute; International Academy of Design & Technology; American InterContinental University; Colorado Technical University and Sanford-Brown Institutes and Colleges. Through its schools, CEC is committed to providing quality education, enabling students to graduate and pursue rewarding careers. For more information, see the company's website at www.careered.com. The company's website includes a detailed listing of individual campus locations and web links to its more than 75 colleges, schools, and universities. Except for the historical and present factual information contained herein, the matters set forth in this release, including statements identified by words such as "anticipate," "believe," "plan," "expect," "intend," "project," "will," 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 risks, uncertainties and other factors that could cause our actual growth, results of operations, performance and 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 such factors or to publicly announce the results of 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 outcome of which could materially and adversely affect our financial condition and operations, include, but are not limited to, the following: the adverse impact and potential impacts on the availability of Title IV and private student loans for our students of (1) the willingness or ability of private lenders to make private student loans in the current U.S. credit markets, (2) new student lending related reporting and disclosure obligations on institutions that participate in Title IV federal student financial aid programs under The Higher Education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. Opportunity Act ("HEOA HEOA Higher Education Opportunity Act "), signed into law on August 14, 2008, in the first full reauthorization of the Higher Education Act The Higher Education Act may refer to an Act of either the Congress of the United States or of the Parliament of the United Kingdom.
A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2007 and December 31, 2008, and from time to time in our quarterly and current reports filed with the Securities and Exchange Commission. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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