Concorde Reports 3rd Quarter Results -- Revenue Increase of 6.0%, Earnings Decrease of 35% and Earnings per Share Decrease of 36%.MISSION, Kan Kan, river, China: see Gan. . -- Concorde Concorde First supersonic, passenger-carrying, commercial airplane. Built jointly by British and French manufacturers, it entered regular service in 1976. Its maximum cruising speed is 1,354 mph (2,179 kph), more than twice the speed of sound; the London-New York flight Career Colleges, Inc. (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 : 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 results for the quarter ended September September: see month. 30, 2004. Revenue increased 6.0% from third quarter of 2003 to $21.1 million; enrollments decreased 3.8% from third quarter of 2003; and net income was $1,150,000, or $.18 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 for the quarter compared to $.28 in the 3rd quarter of 2003. Jack Brozman, President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said: "We are lowering our earnings guidance for 2004 but still anticipate revenue to range from $81 to $82 million. We estimate diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of will range from $0.70 to $0.72 for 2004. We have seen less than anticipated enrollments in existing programs; however, the change from our previous guidance is primarily due to additional operational expenses. These expenses include instructional wage increases due to higher salaries for some positions and additional staff, professional fee increases due to additional accounting and legal fees related to Sarbanes-Oxley regulations and other regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. work and a higher 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. due to aging of receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed . We will incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. additional advertising expense due to the higher cost of media and increased Internet advertising Delivering ads to Internet users via Web sites, e-mail, ad-supported software and Internet-enabled cellphones. Also called an "ad network," Internet advertising organizations act as a middleman between the advertiser and the Web sites and software publishers that display the ads. spending. Also, we will have higher expenses for administrative wages and employee procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. as additional corporate staff is added to support and improve campus operations. "We have made substantial progress during 2004 adding new programs and anticipate that we will have ten new programs in place by the end of the year. During 2003 we were able to start only three new programs. Six programs began in the first nine months of 2004. However, we need to continue to execute new program rollouts and improve our advertising and admissions process. We believe our growth in 2005 will come from the addition of these new programs and believe there is room for growth in existing programs." Operating Results Concorde's results for the quarter ended September 30, 2004, included the following: --Revenue grew 6.0% to $21.1 million compared to $19.9 million in 2003. --Diluted earnings per share was $.18 compared to $.28. --Student enrollments decreased 3.8% to 2,859 for the quarter compared to 2,972 in 2003. --Average student population decreased .5% to 6,031 in 2004 compared with 6,061 in 2003. --Net income decreased $615,000 to $1,150,000 for the quarter compared to $1,765,000 in 2003. Concorde's results for the nine months ended September 30, 2004, included the following: --Revenue grew 12.6% to $62.1 million, compared to $55.1 million in 2003. --Diluted earnings per share was $.58, compared to $.76. --Student enrollments increased 0.7% to 7,688, compared to 7,638 in 2003. --Average student population increased 6.1% to 6,101 in 2004, compared with 5,750 in 2003. --Net income decreased $1,134,000 to $3,651,000, compared to $4,785,000 in 2003. 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, and effects of corporate initiatives, future profitability, projections, future revenue opportunities, and their impact on 2004 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 COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , 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 14A, 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. To find out more about Concorde Career Colleges, Inc. (NASDAQ: CCDC), visit our website at www.concordecareercolleges.com.
Concorde Career Colleges, Inc.
Quarter Ended September 30, 2004 and 2003
2004 2003
------------ ------------
Revenue $21,082,000 $19,888,000
Instruction costs and services 6,755,000 6,056,000
Selling and promotional 3,043,000 2,654,000
General and administrative 8,511,000 7,527,000
Provision for uncollectible accounts 939,000 803,000
----------- ------------
Total operating expense 19,248,000 17,040,000
----------- ------------
Operating income 1,834,000 2,848,000
Non-operating income and interest, net 50,000 45,000
Provision for income taxes 734,000 1,128,000
----------- ------------
Net income $1,150,000 $1,765,000
============ ============
Basic income per share $0.19 $0.30
Basic weighted average shares 5,984,000 5,877,000
Diluted income per share $0.18 $0.28
Diluted weighted average shares 6,271,000 6,318,000
Nine Months Ended September 30, 2004 and 2003
2004 2003
------------ ------------
Revenue $62,084,000 $55,138,000
Instruction costs and services 19,662,000 16,653,000
Selling and promotional 8,499,000 7,110,000
General and administrative 25,405,000 21,792,000
Provision for uncollectible accounts 2,673,000 1,884,000
----------- -----------
Total operating expense 56,239,000 47,439,000
----------- -----------
Operating income 5,845,000 7,699,000
Non-operating income and interest, net 140,000 113,000
Provision for income taxes 2,334,000 3,027,000
----------- -----------
Net income $3,651,000 $4,785,000
============ ============
Basic income per share $0.61 $0.82
Basic weighted average shares 5,986,000 5,861,000
Diluted income per share $0.58 $0.76
Diluted weighted average shares 6,343,000 6,275,000
Condensed Balance Sheet September 30, September 30, December 31,
Information 2004 2003 2003
Cash and short term
investments $22,489,000 $18,052,000 $19,813,000
Accounts receivable, net 25,950,000 27,789,000 22,595,000
Other current assets 3,165,000 3,337,000 3,233,000
------------ ------------- --------------
Total current assets 51,604,000 49,178,000 45,641,000
Fixed assets, net 7,560,000 4,748,000 4,928,000
Other long term assets 2,314,000 1,993,000 2,117,000
------------ ------------ -------------
Total assets 61,478,000 55,919,000 52,686,000
============ ============ =============
Deferred revenue 29,867,000 29,994,000 25,540,000
Other current liabilities 7,295,000 7,383,000 6,055,000
------------ ------------ -------------
Total current liabilities 37,162,000 37,377,000 31,195,000
Other long term liabilities 428,000 157,000 428,000
Stockholders' Equity 23,888,000 18,385,000 20,663,000
------------ ------------ -------------
Total liabilities and Stock
holders' Equity 61,478,000 $55,919,000 $52,686,000
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