Concorde Career Colleges, Inc. Announces Earnings.Business Editors MISSION, Kan.--(BUSINESS WIRE)--May 2, 2001 Concorde Career Colleges, Inc. (Concorde)(OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). Pink Sheets:CCDC CCDC Cambridge Crystallographic Data Centre CCDC Centre City Development Corporation (San Diego, California) CCDC Consultant in Communicable Disease Control CCDC Certified Chemical Dependency Counselor CCDC Colorado Cross-Disability Coalition ), a provider of career training in allied health programs, today reported a net loss of $136,000 for the quarter ended March 31, 2001. This was an improvement over the previous year loss of $198,000, however the 2000 loss included a cumulative effect of accounting change of $86,000. Student enrollments increased 14.2 percent to 1,757 for the quarter ended March 31, 2001, compared to 1,538 in 2000. Student population increased to approximately 4,000 at March 31, 2001, compared to 3,500 at March 31, 2000. Operating Results Revenue increased 14.5 percent, or $1,364,000, to $10,775,000 for the quarter ended March 31, 2001, compared to $9,411,000 for the same period in 2000. The revenue increased due to higher student enrollments, increased average student population and a 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. increase compared to 2000. An average tuition increase of 6.4% was implemented at the Company's campuses in the fourth quarter of 2000. Increased 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. in all categories compared to 2000 offset the increased revenue. Basic and 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. loss per share was $.03 for the quarter ended March 31, 2001 and 2000, respectively. Total operating expenses increased $1,432,000 to $10,988,000, compared to $9,556,000 for the prior year. Instruction costs and services increased $309,000 primarily as a result of increased salaries compared to 2000. Selling and promotional increased $381,000 due to increased wages and advertising expense compared to 2000. General and administrative expenses increased $339,000 primarily as a result of increased rent, health insurance and employee procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. expenses compared to 2000. The provision for uncollectible accounts Uncollectible account An account which cannot be collected by a company because the customer is not able to pay or is unwilling to pay. increased $403,000 to $469,000, compared to $66,000 in 2000. This change was due to a $2,237,000 increase in accounts and notes receivable compared to March 31, 2000. Recent Events In the first quarter of 2001, the Company purchased 104,600 shares of stock at an average price of $0.93 a share pursuant to the $1,000,000 stock buy back authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: by the Board of Directors in 2000. The Company has purchased a total of 224,100 shares at an average price of $0.94 pursuant to the buy back plan. Certain statements in this press release may be deemed to be 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. under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The Company intends that such forward-looking statements be subject to the "safe-harbor" provisions of that act. Forward-looking statements regarding economic conditions, efforts of employees, year-to-year improvements, effects of corporate initiatives, future profitability, projections, future revenue opportunities, and their impact on 2001 are forward-looking statements and not historical facts. These statements are estimates or projections involving numerous risks or uncertainties, including, but not limited to, consumer demand, acceptance of services offered by the Company, the Company's ability to maintain current expense and revenue levels, actions by competitors, impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of federal funding, legislative action, student default rates, changes in federal or state authorization The right or permission to use a system resource; the process of granting access. See access control. or accreditation accreditation, n a process of formal recognition of a school or institution attesting to the required ability and performance in an area of education, training, or practice. changes, changes in market needs and technology, political or regulatory matters, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , general economic conditions, changes in management strategy and the Company's ability to leverage its curriculum and management infrastructure to build its student base. Actual results or events could differ materially from those discussed in the forward-looking statements. See the Company's reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission for further information. The Company disclaims any obligation to publicly update, revise or correct any forward-looking statements, whether as a result of new information, future events or otherwise.
CONCORDE CAREER COLLEGES, INC.
Quarter Ended March 31, 2001 and 2000
2001 2000
---- ----
Revenue $10,775,000 $9,411,000
Total operating expense 10,988,000 9,556,000
Operating loss (213,000) (145,000)
Cumulative effect of change in
accounting principle, net of tax - (86,000)
Net loss (136,000) (198,000)
Loss before cumulative effect of
change in accounting principle $(0.03) $(0.02)
Cumulative effect of change in
accounting principle, net of tax - $(0.01)
Basic loss per share (a) $ (0.03) $ (0.03)
Basic weighted average shares 7,778,000 7,932,000
Loss before cumulative effect of
change in accounting principle $(0.03) $(0.02)
Cumulative effect of change in
accounting principle, net of tax - $(0.01)
Diluted loss per share (a) $(0.03) $(0.03)
Diluted weighted average shares 7,778,000 7,932,000
(a) Basic and diluted loss per share is shown after preferred
stock dividends of $64,000 and $45,000 for the three months ended
March 31, 2001, and March 31, 2000, respectively.
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