Quarterly days sales outstanding (DSO) were 15 days as of September
30, 2007, an increase of three days from a DSO of 12 days as of
September 30, 2006.
Stock Repurchase Program
Since July of 2005, CEC's Board of Directors has authorized the
use of a total of $800.2 million to repurchase outstanding shares of
the company's 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 factors including market conditions
and corporate and regulatory requirements. The stock repurchase
program does not have an expiration date and may be suspended or
discontinued at any time.
During the third quarter of 2007, the company repurchased 0.9
million shares of its common stock for approximately $24.3 million at
an average price of $26.86 per share. Since the inception of the
program, the company has repurchased 15.6 million shares of its common
stock for approximately $515.6 million.
As of September 30, 2007, approximately $284.5 million was
available under the stock repurchase program to repurchase outstanding
shares of the company's common stock.
POPULATION AND NEW STUDENT START DATA
Student Population
Total student population by reportable segment as of October 31,
2007 and 2006, were as follows:
Population Population
October 31, October 31, Percentage
2007 (1) 2006 (1) Difference
----------------------------------------------------------------------
Academy (2) 10,000 9,500 5%
----------------------------------------------------------------------
Colleges 8,100 9,200 (12%)
----------------------------------------------------------------------
Culinary Arts 12,100 11,700 3%
----------------------------------------------------------------------
Health Education 13,500 11,600 16%
----------------------------------------------------------------------
International 8,600 6,000 43%
----------------------------------------------------------------------
University (3) 43,900 41,400 6%
----------------------------------------------------------------------
CEC Consolidated 96,200 89,400 8%
----------------------------------------------------------------------
(1) Segment and CEC consolidated student population data does not
include the student population of schools held for sale or schools in
the process of a teach-out.
(2) As of October 31, 2007, the Academy segment population
included approximately 300 students who were taking classes at such
date in fully-online academic programs offered by Academy segment
schools. There were no Academy segment fully-online students as of
October 31, 2006.
(3) As of October 31, 2007 and 2006, the University segment
population included approximately 31,900 students and 28,700 students,
respectively, who were taking classes at such dates in fully-online
academic programs offered by University segment schools.
New Student Starts
New student starts by reportable segment during the third quarter
of 2007 and 2006, were as follows:
Third quarter Third quarter Percentage
2007 (1) 2006 (1) Difference
----------------------------------------------------------------------
Academy (2) 2,200 1,730 27%
----------------------------------------------------------------------
Colleges 2,320 2,540 (9%)
----------------------------------------------------------------------
Culinary Arts 4,450 4,320 3%
----------------------------------------------------------------------
Health Education 4,460 4,020 11%
----------------------------------------------------------------------
International 3,550 2,680 32%
----------------------------------------------------------------------
University (3) 13,070 11,730 11%
----------------------------------------------------------------------
CEC Consolidated 30,050 27,020 11%
----------------------------------------------------------------------
(1) Segment and CEC consolidated student starts data does not
include student starts of schools held for sale or schools in the
process of a teach-out.
(2) Academy segment new student starts include approximately 200
students who began taking classes in fully-online academic programs
offered by the Academy segment schools during the third quarter of
2007. There were no Academy segment fully-online student starts during
the third quarter of 2006.
(3) University segment new student starts includes approximately
10,520 students and 9,170 students, respectively, who began taking
classes in fully-online academic programs offered by the University
segment schools during the third quarter of 2007 and 2006.
CONFERENCE CALL INFORMATION
Career Education Corporation will host a conference call on
November 6, 2007, 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
866-831-5605 (domestic) or 617-213-8851 (international) and citing
code 86867065. Please log-in or dial-in at least ten minutes prior to
the conference call start time to ensure a connection. An archived
version of the conference call webcast will be accessible for 90 days
at www.careered.com. A replay of the conference call will also be
available for seven days by calling 888-286-8010 (domestic) or
617-801-6888 (international) and citing code 73482744.
About Career Education Corporation
The colleges, schools, and universities that are part of the
Career Education Corporation (CEC) family offer high quality education
to 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 Canada, 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 Online and
Colorado Technical University Online.
CEC is an industry leader whose gold-standard brands are
recognized globally. Those brands include, among others, the Le Cordon
Bleu Schools North America; Harrington College of Design; Brooks
Institute; International Academy of Design; 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
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: future financial and operational
results, including the impact of the impairment of goodwill and other
intangible assets; risks related to our ability to comply with
accrediting agency requirements or obtain accrediting agency
approvals, including the adverse impact of negative publicity
concerning the continued probation status of American InterContinental
University and ongoing review by its accrediting body; risks related
to our ability to comply with, and the impact of changes in,
legislation and regulations that affect our ability to participate in
student financial aid programs; costs, risks, and effects of legal and
administrative proceedings and investigations and governmental
regulations, including the pending Securities and Exchange Commission
investigation, and class action and other lawsuits; costs and
difficulties related to the integration of acquired businesses; risks
related to our ability to manage and continue growth; risks related to
the sale of any campuses; risks related to competition, general
economic conditions, and other risk factors relating to our industry
and business and the factors discussed in our Annual Report on Form
10-K for the year ended December 31, 2006, and from time to time in
our other reports filed with the Securities and Exchange Commission.
CAREER EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2007 2006
------------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $199,631 $187,853
Investments 243,136 259,766
------------- ------------
Total cash and cash equivalents and
investments 442,767 447,619
Receivables:
Students, net of allowance for
doubtful accounts
of $30,495 and $28,709 as of
September 30, 2007,
and December 31, 2006,
respectively 58,414 48,564
Other, net 7,028 8,094
Prepaid expenses 35,755 29,621
Inventories 16,409 16,853
Deferred income tax assets 7,159 11,357
Assets held for sale 59,887 63,156
Other current assets 12,995 32,064
------------- ------------
Total current assets 640,414 657,328
------------- ------------
PROPERTY AND EQUIPMENT, net 339,275 352,270
GOODWILL 382,914 349,760
INTANGIBLE ASSETS, net 45,792 33,984
OTHER ASSETS 21,799 32,321
------------- ------------
TOTAL ASSETS $1,430,194 $1,425,663
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $11,596 $12,098
Accounts payable 33,606 30,095
Accrued expenses:
Payroll and related benefits 28,576 27,012
Income taxes 5,344 -
Other 85,887 78,885
Deferred tuition revenue 179,303 132,186
Liabilities held for sale 30,806 31,879
------------- ------------
Total current liabilities 375,118 312,155
------------- ------------
LONG-TERM LIABILITIES:
Long-term debt, net of current
maturities 3,484 2,763
Deferred rent obligations 92,143 90,360
Deferred income tax liabilities 16,607 16,527
Other 7,093 7,980
------------- ------------
Total long-term liabilities 119,327 117,630
------------- ------------
SHARE-BASED AWARDS SUBJECT TO REDEMPTION 13,949 13,477
STOCKHOLDERS' EQUITY:
Common stock 1,077 1,069
Additional paid-in capital 696,070 666,780
Accumulated other comprehensive income 14,773 5,683
Retained earnings 725,440 675,188
Cost of shares in treasury (515,560) (366,319)
------------- ------------
Total stockholders' equity 921,800 982,401
------------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,430,194 $1,425,663
============= ============
CAREER EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended September 30, 2007 and 2006
(In thousands, except per share amounts and percentages)
% of % of
2007 Revenue 2006 Revenue
--------- ------- --------- -------
REVENUE:
Tuition and registration fees $380,523 94.1% $405,866 94.7%
Other 23,882 5.9% 22,698 5.3%
--------- ---------
Total revenue 404,405 100.0% 428,564 100.0%
--------- ---------
OPERATING EXPENSES:
Educational services and
facilities 149,514 37.0% 139,811 32.6%
General and administrative 211,642 52.3% 230,180 53.7%
Depreciation and amortization 19,301 4.8% 19,382 4.5%
Goodwill impairment charge - 0.0% 785 0.2%
--------- ---------
Total operating expenses 380,457 94.1% 390,158 91.0%
--------- ---------
Income from operations 23,948 5.9% 38,406 9.0%
--------- ---------
OTHER INCOME (EXPENSE):
Interest income 4,269 1.1% 4,475 1.0%
Interest expense (336) -0.1% (322) -0.1%
Share of affiliate earnings 209 0.1% 510 0.1%
Miscellaneous income 56 0.0% 120 0.0%
--------- ---------
Total other income 4,198 1.1% 4,783 1.0%
--------- ---------
Income before provision for income
taxes 28,146 7.0% 43,189 10.0%
PROVISION FOR INCOME TAXES 8,316 2.1% 16,153 3.7%
--------- ---------
INCOME FROM CONTINUING OPERATIONS $19,830 4.9% $27,036 6.3%
========= =========
DISCONTINUED OPERATIONS:
Loss from discontinued
operations, net of income tax
benefit (4,269) -1.1% (6,321) -1.5%
--------- ---------
NET INCOME $15,561 3.8% $20,715 4.8%
========= =========
NET INCOME PER SHARE - DILUTED:
Income from continuing
operations $0.212 $0.281
Loss from discontinued
operations (0.046) (0.066)
--------- ---------
Net income $0.167 $0.215
========= =========
DILUTED WEIGHTED AVERAGE SHARES
OUTSTANDING: 93,455 96,195
========= =========
CAREER EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Nine Months Ended September 30, 2007 and 2006
(In thousands, except per share amounts and percentages)
% of % of
2007 Revenue 2006 Revenue
----------- ------- ----------- -------
REVENUE:
Tuition and registration
fees $1,178,054 95.2% $1,310,988 95.6%
Other 59,671 4.8% 60,149 4.4%
----------- -----------
Total revenue 1,237,725 100.0% 1,371,137 100.0%
----------- -----------
OPERATING EXPENSES:
Educational services and
facilities 437,777 35.4% 418,273 30.5%
General and administrative 660,182 53.3% 695,634 50.7%
Depreciation and
amortization 57,744 4.7% 57,142 4.2%
Goodwill impairment charge - 0.0% 85,760 6.3%
----------- -----------
Total operating expenses 1,155,703 93.4% 1,256,809 91.7%
----------- -----------
Income from operations 82,022 6.6% 114,328 8.3%
----------- -----------
OTHER INCOME (EXPENSE):
Interest income 13,105 1.0% 13,448 0.9%
Interest expense (899) -0.1% (1,007) -0.1%
Share of affiliate earnings 2,870 0.2% 2,109 0.2%
Miscellaneous income 772 0.1% 25 0.0%
----------- -----------
Total other income 15,848 1.2% 14,575 1.0%
----------- -----------
Income before provision for
income taxes 97,870 7.8% 128,903 9.3%
PROVISION FOR INCOME TAXES 33,765 2.7% 77,548 5.6%
----------- -----------
INCOME FROM CONTINUING
OPERATIONS $64,105 5.1% $51,355 3.7%
=========== ===========
DISCONTINUED OPERATIONS:
Loss from discontinued
operations, net of income
tax benefit (13,381) -1.1% (25,450) -1.9%
----------- -----------
NET INCOME $50,724 4.0% $25,905 1.8%
=========== ===========
NET INCOME PER SHARE -
DILUTED:
Income from continuing
operations $0.674 $0.521
Loss from discontinued
operations (0.141) (0.258)
----------- -----------
Net income $0.535 $0.263
=========== ===========
DILUTED WEIGHTED AVERAGE
SHARES OUTSTANDING: 95,055 98,556
=========== ===========
CAREER EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Three
Months Ended
September 30,
-------------------
2007 2006
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $15,561 $20,715
Adjustments to reconcile net income to net cash
provided by
operating activities:
Goodwill impairment charge - 785
Depreciation and amortization expense 19,301 21,886
Bad debt expense 11,093 18,196
Compensation expense related to share-based
awards 3,475 6,163
(Gain)/loss on disposition of property and
equipment (4) 5
Share of affiliate earnings, net of dividends
received (1,177) 3,633
Changes in operating assets and liabilities,
net of acquisition 56,732 11,843
--------- ---------
Net cash provided by operating activities 104,981 83,226
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition transaction costs (121) -
Purchases of property and equipment (12,755) (16,870)
Purchases of available-for-sale investments (215,496) (249,160)
Sales of available-for-sale investments 236,457 208,241
Other (5) (254)
--------- ---------
Net cash provided by (used in) investing
activities 8,080 (58,043)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of treasury stock (24,320) -
Issuance of common stock 3,740 1,236
Tax benefit associated with stock option
exercises 302 51
Payments of capital lease obligations and other
long-term debt (9) (3,556)
--------- ---------
Net cash used in financing activities (20,287) (2,269)
--------- ---------
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE
CHANGES ON CASH AND CASH EQUIVALENTS 6,081 2,654
--------- ---------
NET INCREASE IN CASH AND CASH EQUIVALENTS 98,855 25,568
DISCONTINUED OPERATIONS CASH ACTIVITY INCLUDED
ABOVE:
Add: Cash balance of discontinued operations at
beginning of the period 2,457 1,083
Less: Cash balance of discontinued operations at
end of the period 842 2,153
CASH AND CASH EQUIVALENTS, beginning of the period 99,161 89,506
--------- ---------
CASH AND CASH EQUIVALENTS, end of the period $199,631 $114,004
========= =========
CAREER EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Nine Months
Ended
September 30,
-------------------
2007 2006
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $50,724 $25,905
Adjustments to reconcile net income to net cash
provided by
operating activities:
Goodwill impairment charge - 96,149
Depreciation and amortization expense 57,744 64,837
Bad debt expense 32,055 50,459
Compensation expense related to share-based
awards 11,700 14,649
(Gain)/loss on disposition of property and
equipment (220) 260
Share of affiliate earnings, net of dividends
received (927) 2,034
Changes in operating assets and liabilities,
net of acquisition 42,164 (39,606)
--------- ---------
Net cash provided by operating activities 193,240 214,687
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Business acquisition, net of acquired cash (30,324) -
Acquisition transaction costs (1,553) -
Purchases of property and equipment (44,085) (60,021)
Purchases of available-for-sale investments (504,180) (801,610)
Sales of available-for-sale investments 522,789 745,526
Other (196) (364)
--------- ---------
Net cash used in investing activities (57,549) (116,469)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of treasury stock (149,241) (124,845)
Issuance of common stock 14,730 8,647
Tax benefit associated with stock option
exercises 2,868 2,101
Payments of capital lease obligations and other
long-term debt (1,385) (3,740)
--------- ---------
Net cash used in financing activities (133,028) (117,837)
--------- ---------
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE
CHANGES ON CASH AND CASH EQUIVALENTS 7,993 3,468
--------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 10,656 (16,151)
DISCONTINUED OPERATIONS CASH ACTIVITY INCLUDED
ABOVE:
Add: Cash balance of discontinued operations at
beginning of the period 1,964 3,094
Less: Cash balance of discontinued operations at
end of the period 842 2,153
CASH AND CASH EQUIVALENTS, beginning of the period 187,853 129,214
--------- ---------
CASH AND CASH EQUIVALENTS, end of the period $199,631 $114,004
========= =========
CAREER EDUCATION CORPORATION
SELECTED SEGMENT INFORMATION - CONTINUING OPERATIONS
For the Three Months Ended September 30, 2007 and 2006
(Dollars in thousands)
2007 2006
--------- ---------
REVENUE:
Academy segment $40,763 $37,688
Colleges segment 43,867 50,527
Culinary Arts segment 98,472 96,908
Health Education segment 47,551 42,811
International segment 10,891 7,045
University segment 162,858 193,352
Corporate and other (1) 3 233
--------- ---------
$404,405 $428,564
========= =========
SEGMENT PROFIT (LOSS):
Academy segment $1,401 $426
Colleges segment 4,136 5,739
Culinary Arts segment 15,566 19,341
Health Education segment 2,115 340
International segment (3,054) 883
University segment (2) 16,501 33,209
Corporate and other (1) (12,508) (21,022)
--------- ---------
$24,157 $38,916
========= =========
SEGMENT PROFIT (LOSS) PERCENTAGE:
Academy segment 3.4% 1.1%
Colleges segment 9.4% 11.4%
Culinary Arts segment 15.8% 20.0%
Health Education segment 4.4% 0.8%
International segment -28.0% 12.5%
University segment 10.1% 17.2%
----------------------------------------------------------------------
(1) Operating results of Blish.com and Chefs.com are included in
Corporate and other.
(2) University segment profit includes share of affiliate earnings.
CAREER EDUCATION CORPORATION
SELECTED SEGMENT INFORMATION - CONTINUING OPERATIONS
For the Nine Months Ended September 30, 2007 and 2006
(Dollars in thousands)
2007 2006
----------- -----------
REVENUE:
Academy segment $123,462 $120,133
Colleges segment 135,781 159,997
Culinary Arts segment 271,743 270,242
Health Education segment 138,862 124,471
International segment 49,322 32,554
University segment 518,416 663,256
Corporate and other (1) 139 484
----------- -----------
$1,237,725 $1,371,137
=========== ===========
SEGMENT PROFIT (LOSS):
Academy segment $5,653 $6,827
Colleges segment 1,197 22,016
Culinary Arts segment 34,121 41,734
Health Education segment (2) 7,967 (83,672)
International segment 3,577 5,924
University segment (3) 71,819 183,093
Corporate and other (1) (39,442) (59,485)
----------- -----------
$84,892 $116,437
=========== ===========
SEGMENT PROFIT (LOSS) PERCENTAGE:
Academy segment 4.6% 5.7%
Colleges segment 0.9% 13.8%
Culinary Arts segment 12.6% 15.4%
Health Education segment 5.7% -67.2%
International segment 7.3% 18.2%
University segment 13.9% 27.6%
----------------------------------------------------------------------
(1) Operating results of Blish.com and Chefs.com are
included in Corporate and other.
(2) Health Education segment loss for the nine months ended September
30, 2006, includes a goodwill impairment charge of $85.8 million.
(3) University segment profit includes share of affiliate
earnings.
CAREER EDUCATION CORPORATION
SELECTED ACCOUNTS RECEIVABLE AND ALLOWANCE INFORMATION - CONTINUING
OPERATIONS
(Dollars in thousands)
DAYS SALES OUTSTANDING
September 30,
-------------------
2007 2006
--------- ---------
Total revenue during the
quarter ended $404,405 $428,564
Number of days in the quarter
ended 92 92
Total revenue per day $4,396 $4,658
Total receivables, net (1) $65,442 $56,955
Days sales outstanding 15 12
ALLOWANCE AS A PERCENTAGE OF STUDENT
RECEIVABLES
September 30,
-------------------
2007 2006
--------- ---------
Allowance for doubtful
accounts $30,495 $34,044
Gross student receivables (1) $88,909 $83,582
Allowance as a percentage
of student
receivables 34.3% 40.7%
STUDENT RECEIVABLES VALUATION
ALLOWANCE
Balance, Charges Amounts Balance,
Beginning to Written- End of
of Period Expense Off Period
--------- --------- --------- ----------
For the three months ended
September 30, 2007 $29,504 $9,827 $(8,836) $30,495
For the three months ended
September 30, 2006 $34,371 $16,467 $(16,794) $34,044
(1) Total receivables, net and gross student receivables as of
September 30, 2006, have been adjusted from amounts previously
reported to eliminate unearned student receivable balances
attributable to our INSEEC schools. The adjustments were
necessary to conform to our current presentation method.
CAREER EDUCATION CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA REGARDING ASSETS HELD FOR SALE
For the Three Months Ended September 30, 2007 and 2006
(In thousands)
For the Three Months Ended For the Three Months Ended
September 30, 2007 September 30, 2006
-------------------------- --------------------------
Gibbs Colleges Gibbs Colleges
Held for Held for Held for Held for
Sale Sale Total Sale Sale Total
-------- -------- -------- -------- -------- --------
Total revenue $21,655 $7,070 $28,725 $25,921 $7,900 $33,821
Total operating
expenses 27,467 7,556 35,023 34,493 9,440 43,933
Loss from
operations (5,812) (486) (6,298) (8,572) (1,540) (10,112)
Total other
income
(expense) (5) - (5) 15 - 15
Loss before
income tax
benefit (5,817) (486) (6,303) (8,557) (1,540) (10,097)
Income tax
benefit (1,911) (123) (2,034) (3,200) (576) (3,776)
Net loss from
discontinued
operations $(3,906) $(363) $(4,269) $(5,357) $(964) $(6,321)
Student starts 1,547 566 2,113 1,622 488 2,110
Student
population 4,883 1,183 6,066 4,817 1,323 6,140
CAREER EDUCATION CORPORATION
OCTOBER 2007 SEGMENT STUDENT START INFORMATION
For the One Month
Ended October 31,
------------------
2007 2006
--------- --------
STUDENT STARTS:
Academy segment 2,380 2,430
Colleges segment 550 560
Culinary Arts segment 1,520 1,470
Health Education segment 1,690 1,330
International segment 2,230 930
University segment 7,820 7,450
--------- --------
16,190 14,170
========= ========
Gibbs held for sale 1,850 2,070
Colleges held for sale 270 340
CAREER EDUCATION CORPORATION
2007 TEACH-OUT SEGMENT INFORMATION - CONTINUING OPERATIONS
(Dollars in thousands)
For the Three Months Ended
---------------------------------------
March 31, June 30, September 30,
2007 2007 2007
------------ ------------ -------------
REVENUE:
Academy segment $1,854 $1,693 $1,355
College segment 4,040 3,393 2,759
Health Education segment 174 85 12
------------ ------------ -------------
$6,068 $5,171 $4,126
============ ============ =============
SEGMENT LOSS:
Academy segment $(323) $(792) $(34)
College segment (2,068) (6,437) (808)
Health Education segment (1) (300) (281) (357)
------------ ------------ -------------
$(2,691) $(7,510) $(1,199)
============ ============ =============
SEGMENT LOSS PERCENTAGE:
Academy segment -17.4% -46.8% -2.5%
College segment -51.2% -189.7% -29.3%
Health Education segment -172.4% -330.6% -2975.0%
STUDENT STARTS:
Academy segment 74 80 25
College segment 78 68 2
Health Education segment - - -
------------ ------------ -------------
152 148 27
============ ============ =============
STUDENT POPULATION AS OF: April 30, July 31, October 31,
2007 2007 2007
------------ ------------ -------------
Academy segment 456 322 245
College segment 692 495 387
Health Education segment 36 6 -
------------ ------------ -------------
1,184 823 632
============ ============ =============
(1) SBI Springfield teach-out was completed in September of 2007.
CAREER EDUCATION CORPORATION
2006 TEACH-OUT SEGMENT INFORMATION - CONTINUING OPERATIONS
(Dollars in thousands)
For the
Twelve
For the Three Months Ended Months Ended
--------------------------------------------- ------------
March 31, June 30, September 30, December 31, December 31,
2006 2006 2006 2006 2006
--------- -------- ------------- ------------ ------------
REVENUE:
Academy
segment $1,875 $1,673 $1,829 $1,899 $7,276
College
segment 5,348 4,402 4,892 5,557 20,199
Health
Education
segment 716 702 655 401 2,474
--------- -------- ------------- ------------ ------------
$7,939 $6,777 $7,376 $7,857 $29,949
========= ======== ============= ============ ============
SEGMENT
LOSS:
Academy
segment $(436) $(735) $(525) $(279) $(1,975)
College
segment (1,928) (2,142) (1,563) (4,038) (9,671)
Health
Education
segment (117) (289) (322) (166) (894)
--------- -------- ------------- ------------ ------------
$(2,481) $(3,166) $(2,410) $(4,483) $(12,540)
========= ======== ============= ============ ============
SEGMENT LOSS
PERCENTAGE:
Academy
segment -23.3% -43.9% -28.7% -14.7% -27.1%
College
segment -36.1% -48.7% -32.0% -72.7% -47.9%
Health
Education
segment -16.3% -41.2% -49.2% -41.4% -36.1%
STUDENT
STARTS:
Academy
segment 92 87 137 102 418
College
segment 140 126 199 218 683
Health
Education
segment 76 55 47 0 178
--------- -------- ------------- ------------ ------------
308 268 383 320 1,279
========= ======== ============= ============ ============
STUDENT
POPULATION April 30, July 31, October 31, January 31,
AS OF: 2006 2006 2006 2007
--------- -------- ------------- ------------
Academy
segment 470 486 494 460
College
segment 890 865 953 816
Health
Education
segment 199 187 131 67
--------- -------- ------------- ------------
1,559 1,538 1,578 1,343
========= ======== ============= ============
CONTACT:
Career Education Corporation
Investors:
Karen M. King
847/585-3899
www.careered.com
or
Media:
Lynne Baker
847/851-7006
SOURCE: Career Education Corporation
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