Concorde Career Colleges, Inc. Reports Corrected First Quarter Results.Business Editors MISSION, Kan Kan, river, China: see Gan. .--(BUSINESS WIRE)--May 11, 2000 Concorde Career Colleges, Inc., (Concorde), 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 announced adjusted quarterly results for the quarter ended March 31, 2000. Financial results for the quarter reflect a net loss of $198,000 compared to a loss of $362,000 in 1999. The improvement reflects an increase in average student population compared to 1999. Concorde previously reported first quarter results on April 28, 2000, and reported a net loss of $81,000. The change in reported net loss is due to a revision of the accounting treatment for the settlement related to the Person Wolinsky sale. Concorde previously reported the $200,000 final payment as revenue for the quarter. Concorde subsequently determined the proper accounting treatment for this transaction is to ratably earn the payment over the life of the non-compete agreement, which expires August 2006. FIRST QUARTER OPERATING RESULTS Concorde's net loss improved $173,000 compared to the 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 loss of $371,000 for 1999. Revenue for the quarter was $9,419,000, an increase of 15.9 percent over 1999 pro forma revenue of $8,129,000. The revenue increase was primarily due to increased average student population. The average student population increased 12.3% to 3,505 compared to 3,121 for the first quarter of 1999. Also, student enrollments in the quarter increased 6.0 percent to 1,521 compared to 1,435 during the same period in 1999. Total 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. increased $864,000 to $9,556,000, compared to $8,692,000 in 1999. Operating expenses increased due to increased average student population. 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 in 2000 compared to $.05 in 1999. As previously announced, Concorde began recognizing registration fees ratably over the life of the program, effective January 1, 2000, in connection with the recently issued SEC Staff Accounting Bulletin (SAB SAB Spontaneous abortion. See Abortion. ) No. 101. Previously, registration fees were recognized the month a student started the program. Concorde reported a charge of $86,000 representing the cumulative effect of a change in accounting principle, net of tax in the first quarter 2000. The pro forma effect of this change for the first quarter of 1999 would have resulted in a reduction of $14,000 in revenue to the previously reported results. 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 2000 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, 2000 and 1999
2000 1999 Pro forma(1)(2) 1999 as Reported(2)
----------- ---------- ----------
Revenue $ 9,419,000 $8,129,000 $8,143,000
Total operating
expense 9,556,000 8,692,000 8,692,000
Operating loss (137,000) (563,000) (549,000)
Cumulative
effect of
change in
accounting
principle, net
of tax (86,000)
Net loss (198,000) (371,000) (362,000)
Basic loss per
share (Note 3) $ (0.03) $ (0.05) $ (0.05)
Basic weighted
average shares 7,932,000 7,632,000 7,632,000
Diluted loss
per share
(Note 3) $( 0.03) $ (0.05) $ (0.05)
Diluted weighted
average shares 7,932,000 7,632,000 7,632,000
(1) Pro forma amounts assume registration fees are recognized ratably over the life of the course. (2) Certain prior year amounts have been reclassified to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the fiscal 2000 presentation. These changes had no effect on the previously reported net loss. (3) Basic and diluted loss per share is shown after a reduction of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends of $45,000 and $38,000 for the three months ended March 31, 2000 and March 31, 1999 respectively. |
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