Career Education Corporation Reports Results for First Quarter 2009.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 total revenue of $437.4 million and net income of $23.3 million, or $0.26 per diluted share, for the first quarter of 2009 compared to total revenue of $451.9 and net income of $16.4 million, or $0.18 per diluted share, for the first quarter of 2008. Excluding significant items as detailed below in this press release, net income per diluted share was $0.32 for the first quarter of 2009, compared to $0.25 for the first quarter of 2008. "I am encouraged by our overall performance in the first quarter," said Gary E. McCullough, president and chief executive officer. "Our Health Education schools delivered another record quarter with a 24% increase in student population. Our Culinary schools posted a 13% increase in student starts, thanks to our efforts in 2008 to evolve the business to meet the changing needs of our students. However, in our University institutions, while we generated strong improvements 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. and margins, I am not satisfied with the level of our student starts. We will continue to improve in this important area as we move toward our goal of meaningful and consistent revenue growth across the organization." Three Months Ended March 31, 2009 * Total 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 was $437.4 million during the first quarter of 2009, a 3.2 percent decrease from $451.9 million during the first quarter of 2008. * Revenue for the Transitional Schools was $6.7 million in the first quarter of 2009, as compared to $24.4 million for the first quarter of 2008 reflecting the reduction in student population associated with the teach-out of these operations. * Excluding the Transitional Schools, revenue was $430.7 million in the first quarter, a 0.7 percent increase from $427.5 million in the first quarter of 2008. * Operating income was $35.4 million during the first quarter of 2009, a 46 percent increase from $24.2 million of operating income during the first quarter of 2008. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: percentage was 8.1 percent during the first quarter of 2009, a 2.7 percentage point increase relative to an operating profit margin Operating profit margin The ratio of operating profit to net sales. percentage of 5.4 percent during the first quarter of 2008. * Included in pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. for the three months ended March 31, 2009 and the three months ended March 31, 2008 are the following significant items: [TABLE OMITTED] (1) (Reported within other income) * Transitional Schools reported a loss of $17.2 million in the first quarter of 2009, as compared to a loss of $15.6 million for the first quarter of 2008. Included in the operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. in the first quarter of 2009 were charges associated with vacated real estate of $7.8 million. Included in the operating loss in the first quarter of 2008 was $7.2 million of charges related to severance and stay bonuses and a $2.2 million charge related to the impairment of long-lived assets. * Excluding the Transitional Schools, operating income was $52.6 million in the first quarter of 2009, up 32 percent from $39.8 million in the first quarter of 2008. Included in operating income in the first quarter of 2008 was $3.3 million of severance expenses. Operating margin excluding the Transitional Schools was 12.2 percent during the first quarter of 2009, a 2.9 percentage point increase relative to an operating profit margin percentage of 9.3 percent during the first quarter of 2008. CONSOLIDATED CASH FLOWS AND FINANCIAL POSITION Cash Flows * Cash provided by operating activities was $48.7 million during the first quarter of 2009, compared to cash provided by operating activities of $35.5 million during the first quarter of 2008. * Capital expenditures decreased to $14.9 million during the first quarter of 2009, from $18.8 million during the first quarter of 2008. Capital expenditures represented 3.4 percent of total revenue during the first quarter of 2009. Financial Position * As of March 31, 2009 and December 31, 2008, cash and cash equivalents and investments totaled $499.7 million and $508.7 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 13 days as of March 31, 2009, compared to 14 days as of March 31, 2008. Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. Program Our Board of Directors has authorized the use of a total of $800.2 million to repurchase outstanding shares of our common stock. Stock repurchases under this program may be made on the open market or in privately negotiated transactions from time to time, depending on various factors, including market conditions and corporate and regulatory requirements. The stock repurchase program does not have an expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. and may be suspended or discontinued at any time. During the three months ended March 31, 2009, the company repurchased 1.7 million shares of our common stock for approximately $40.0 million at an average price of $22.83 per share. Since the inception of the program, the company has repurchased 20.9 million shares of our common stock for approximately $644.7 million at an average price of $30.80 per share. As of March 31, 2009, approximately $155.5 million is available under the program to repurchase outstanding shares of our common stock. Revenue [TABLE OMITTED] Operating Income [TABLE OMITTED] Operating Margin [TABLE OMITTED] STUDENT POPULATION AND NEW STUDENT START DATA Student Population Total student population by reportable segment as of April 30, 2009 and 2008, were as follows: [TABLE OMITTED] New Student Starts New student starts by reportable segment during the first quarter of 2009 and 2008, were as follows: [TABLE OMITTED] CONFERENCE CALL INFORMATION Career Education Corporation will host a conference call on May 7, 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 800-573-4842 (domestic) or 617-224-4327 (international) and citing code 27904153. 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 52594782. 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 99,000 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.
v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. various functional areas, such as human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. and financial aid, and continuing to align the SBUs and corporate staff to remove layers, overlaps and redundancies; the impact on our revenues and profitability of our transitional segment; our ability to comply with accrediting agency requirements or obtain accrediting agency approvals; our dependence on information technology system; our ownership or use of intellectual property ; costs and impacts of legal and administrative proceedings and investigations, governmental regulations, and class action and other lawsuits; costs and difficulties related to the integration of acquired businesses; our ability to manage and continue growth; and other factors discussed in our Annual Report on Form 10-K Form 10-K 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, 2008, our Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the most recent fiscal quarter, and from time to time in our current reports filed with the Securities and Exchange Commission. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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