EX-99.1 2 ceco-ex991_6.htm EX-99.1 ceco-ex991_6.htm

CEC ANNOUNCES 4Q18 RESULTS …PG 1

 

 

Exhibit 99.1

CAREER EDUCATION CORPORATION REPORTS FOURTH QUARTER AND FULL YEAR 2018 RESULTS

 

Full year operating income increased by 109% versus the prior year driven by completion of teach-outs and revenue growth within the University Group

Schaumburg, Ill. (February 20, 2019) – Career Education Corporation (NASDAQ: CECO) today reported operating and financial results for the fourth quarter and year ended December 31, 2018.

FOURTH QUARTER 2018 RESULTS AS COMPARED TO THE PRIOR YEAR QUARTER

Total 

Company

  •   

Revenue grew to $145.5 million compared to $143.1 million

  •   

Operating income of $20.2 million compared to $10.7 million

  •   

Earnings per diluted share of $0.20 compared to a loss per diluted share of ($0.64)

  •   

Adjusted earnings per diluted share* of $0.30 compared to $0.19

  •   

Ended the quarter with $229.2 million in cash, cash equivalents, restricted cash and available-for-sale short-term investments

  •   

Cash flow provided by operations was $38.7 million, the highest quarterly result in seven years, primarily driven by cash generated from University Group operations partially offset by teach-out related obligations

 

 

 

 

 

 

 

 

University Group Key Metrics

  •   

CTU’s new and total student enrollments increased 7.1 percent and 2.3 percent, respectively

  •   

AIU’s new and total student enrollments decreased, as expected, primarily driven by the timing impact of the academic calendar redesign. The Company expects AIU’s new student enrollments to experience significant growth in the first quarter of 2019 which will more than offset this fourth quarter decline and is further expected to contribute to growth for the full year 2019.

 

 

 

 

 

 

 

FULL YEAR 2018 RESULTS AS COMPARED TO THE PRIOR YEAR

 

University Group revenue of $580.7 million increased 2.0 percent or $11.1 million

 

Total company operating income of  $71.3 million compared to $34.1 million

 

Earnings per diluted share of $0.77 compared to a loss per diluted share of ($0.46)

 

Adjusted earnings per diluted share* of $1.05 compared to $0.47

 

 

*See GAAP to non-GAAP reconciliation attached to this press release

 

“2018 was a watershed year for our company, with operating income the highest it has been in almost a decade,” said Todd Nelson, President and Chief Executive Officer. “Our Universities are executing well against their objective of sustainable and responsible growth and are strategically investing in student-serving processes and technology initiatives. Our balance sheet is expected to further improve in 2019 and we will continue to pursue optimal capital allocation strategies that are in the best interests of our students and other stakeholders.”

 

 

 

 

 

 


CEC ANNOUNCES 4Q18 RESULTS …PG 2

 

 

REVENUE

For the quarter ended December 31, 2018, total revenue was $145.5 million as compared to total revenue of $143.1 million for the prior year quarter. The increase for the current quarter was driven by revenue growth within AIU.

For the year ended December 31, 2018, total revenue was $581.3 million as compared to $596.4 million for the prior year. While University Group revenue increased by 2.0 percent, this was more than offset by the Company’s teach-out strategy, which is now complete.

 

 

 

For the Quarter Ended December 31,

 

 

For the Year Ended December 31,

 

Revenue ($ in thousands)

 

2018

 

 

2017

 

 

Increase (Decrease)

 

 

2018

 

 

2017

 

 

Increase (Decrease)

 

CTU

 

$

94,782

 

 

$

94,767

 

 

 

0.0

%

 

$

375,770

 

 

$

371,325

 

 

 

1.2

%

AIU

 

 

50,716

 

 

 

47,633

 

 

 

6.5

%

 

 

204,920

 

 

 

198,251

 

 

 

3.4

%

Total University Group

 

 

145,498

 

 

 

142,400

 

 

 

2.2

%

 

 

580,690

 

 

 

569,576

 

 

 

2.0

%

Corporate and Other

 

 

 

 

 

 

 

NM

 

 

 

 

 

 

 

 

NM

 

Subtotal

 

 

145,498

 

 

 

142,400

 

 

 

2.2

%

 

 

580,690

 

 

 

569,576

 

 

 

2.0

%

All Other Campuses (1)

 

 

7

 

 

 

718

 

 

NM

 

 

 

606

 

 

 

26,859

 

 

NM

 

Total

 

$

145,505

 

 

$

143,118

 

 

 

1.7

%

 

$

581,296

 

 

$

596,435

 

 

 

-2.5

%

 

(1)

Campuses included in All Other Campuses were in the process of completing their teach-out with the final teach-out occurring in December 2018.



CEC ANNOUNCES 4Q18 RESULTS …PG 3

 

 

TOTAL AND NEW STUDENT ENROLLMENTS

 

For the quarter ended December 31, 2018, CTU’s new student enrollments increased 7.1 percent as compared to the prior year quarter, partially driving the total enrollment increase of 2.3 percent as compared to the prior year.

 

As expected, AIU’s new and total student enrollments for the quarter experienced a decline, primarily driven by the timing impact of the academic calendar redesign. New student enrollments decreased 30.8 percent for the quarter as compared to the prior year quarter, while total student enrollments were 6.3% lower as compared to the prior year.

 

For the year ended December 31, 2018, CTU’s new student enrollments increased 6.7 percent as compared to the prior year. AIU’s new student enrollments decreased 4.7 percent for the year as compared to the prior year.

 

 

 

As of December 31,

 

Total Student Enrollments

 

2018

 

 

2017

 

 

Increase (Decrease)

 

CTU

 

 

22,600

 

 

 

22,100

 

 

 

2.3

%

AIU

 

 

11,800

 

 

 

12,600

 

 

 

-6.3

%

Total University Group

 

 

34,400

 

 

 

34,700

 

 

 

-0.9

%

All Other Campuses (1)

 

 

 

 

 

100

 

 

NM

 

Total

 

 

34,400

 

 

 

34,800

 

 

 

-1.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended December 31,

 

 

For the Year Ended December 31,

 

New Student Enrollments

 

2018

 

 

2017

 

 

Increase (Decrease)

 

 

2018

 

 

2017

 

 

Increase (Decrease)

 

CTU

 

 

6,360

 

 

 

5,940

 

 

 

7.1

%

 

 

23,600

 

 

 

22,110

 

 

 

6.7

%

AIU

 

 

3,300

 

 

 

4,770

 

 

 

-30.8

%

 

 

15,050

 

 

 

15,790

 

 

 

-4.7

%

Total University Group

 

 

9,660

 

 

 

10,710

 

 

 

-9.8

%

 

 

38,650

 

 

 

37,900

 

 

 

2.0

%

(1)

All Other Campuses no longer enroll new students.



CEC ANNOUNCES 4Q18 RESULTS …PG 4

 

 

OPERATING INCOME (LOSS)

For the quarter ended December 31, 2018, the Company recorded operating income of $20.2 million, compared to operating income of $10.7 million in the prior year quarter. The improvement in operating income performance was driven by reduced operating losses within the Company’s teach-out campuses and increased operating leverage at AIU.

For the year ended December 31, 2018, the Company recorded operating income of $71.3 million, compared to operating income of $34.1 million in the prior year. The improvement in operating income performance for the full year was driven by the completion of the teach-out strategy and revenue growth at both universities.

 

 

 

 

For the Quarter Ended December 31,

 

 

For the Year Ended December 31,

 

Operating Income ($ in thousands)

 

2018

 

 

2017

 

 

Increase (Decrease)

 

 

2018

 

 

2017

 

 

Increase (Decrease)

 

CTU

 

$

31,061

 

 

$

30,553

 

 

 

1.7

%

 

$

111,623

 

 

$

109,202

 

 

 

2.2

%

AIU

 

 

4,555

 

 

 

414

 

 

 

1000.2

%

 

 

8,176

 

 

 

8,401

 

 

 

-2.7

%

Total University Group

 

 

35,616

 

 

 

30,967

 

 

 

15.0

%

 

 

119,799

 

 

 

117,603

 

 

 

1.9

%

Corporate and Other

 

 

(5,694

)

 

 

(5,472

)

 

 

-4.1

%

 

 

(16,598

)

 

 

(22,067

)

 

 

24.8

%

Subtotal

 

 

29,922

 

 

 

25,495

 

 

 

17.4

%

 

 

103,201

 

 

 

95,536

 

 

 

8.0

%

All Other Campuses

 

 

(9,739

)

 

 

(14,783

)

 

 

34.1

%

 

 

(31,903

)

 

 

(61,400

)

 

 

48.0

%

Total

 

$

20,183

 

 

$

10,712

 

 

 

88.4

%

 

$

71,298

 

 

$

34,136

 

 

 

108.9

%

 

 



CEC ANNOUNCES 4Q18 RESULTS …PG 5

 

 

ADJUSTED OPERATING INCOME

The Company believes it is useful to present non-GAAP financial measures, which exclude certain significant and non-cash items, as a means to understand the performance of its operations. (See table below and the GAAP to non-GAAP reconciliation attached to this press release for further details.)

As shown in the table below, adjusted operating income for the total company was $29.7 million for the quarter ended December 31, 2018, as compared to $20.9 million in the prior year quarter. Adjusted operating income for the total company was $105.2 million for the year ended December 31, 2018, as compared to $66.8 million in the prior year.

 

 

 

 

 

 

 

 

For the Quarter Ended December 31,

 

 

For the Year Ended December 31,

 

Adjusted Operating Income

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Total Company:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

20,183

 

 

$

10,712

 

 

$

71,298

 

 

$

34,136

 

Depreciation and amortization

 

 

2,345

 

 

 

2,622

 

 

 

9,394

 

 

 

13,990

 

Unused space charges (1)

 

 

2,642

 

 

 

1,009

 

 

 

8,416

 

 

 

12,167

 

Severance and related costs, net of cancellations (2)

 

 

(443

)

 

 

-

 

 

 

1,455

 

 

 

-

 

Significant legal settlements

 

 

5,000

 

 

 

6,543

 

 

 

14,595

 

 

 

6,543

 

Adjusted Operating Income --

Total Company

 

$

29,727

 

 

$

20,886

 

 

$

105,158

 

 

$

66,836

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease)

 

 

42.3

%

 

 

 

 

 

 

57.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Unused space charges include initial charges representing the net present value of remaining lease obligations for vacated space less an estimated amount for sublease income. Subsequently, as early lease terminations or subleases occur, or as assumptions are otherwise adjusted, these unused space charges are increased or decreased. These subsequent adjustments are also included in the amounts presented.

 

(2)

Severance and related costs, net of cancellations, include charges related to significant restructuring actions. These restructuring charges do not regularly occur and are not considered part of ongoing operating results.



CEC ANNOUNCES 4Q18 RESULTS …PG 6

 

 

NET INCOME (LOSS) AND EARNINGS (LOSS) PER DILUTED SHARE

For the quarter ended December 31, 2018, the Company recorded net income of $14.1 million, compared to net loss of $44.4 million for the prior year quarter. Earnings per diluted share were $0.20 for the quarter ended December 31, 2018, as compared to loss per diluted share of ($0.64) for the prior year quarter. Adjusted earnings per diluted share were $0.30 for the quarter ended December 31, 2018, as compared to $0.19 for the prior year quarter. (See table below and the GAAP to non-GAAP reconciliation attached to this press release for further details.)

For the year ended December 31, 2018, the Company recorded net income of $55.2 million, compared to net loss of $31.9 million for the year ended December 31, 2017. Earnings per diluted share were $0.77 for the year ended December 31, 2018, as compared to loss per diluted share of ($0.46) for the prior year. Adjusted earnings per diluted share were $1.05 for the year ended December 31, 2018, as compared to $0.47 for the prior year.

 

 

 

 

 

 

 

 

For the Quarter Ended December 31,

 

 

For the Year Ended December 31,

 

Adjusted Earnings Per Diluted Share

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) Per Diluted Share

 

$

0.20

 

 

$

(0.64

)

 

$

0.77

 

 

$

(0.46

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-GAAP DILUTED EPS ADJUSTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unused space charges (1)

 

 

0.03

 

 

 

0.01

 

 

 

0.09

 

 

 

0.11

 

Severance and related costs, net of cancellations (1)

 

 

-

 

 

 

-

 

 

 

0.02

 

 

 

-

 

Significant legal settlements (1)(2)

 

 

0.07

 

 

 

0.06

 

 

 

0.17

 

 

 

0.06

 

TCJA impact (3)

 

 

-

 

 

 

0.76

 

 

 

-

 

 

 

0.76

 

Total Adjustments

 

$

0.10

 

 

$

0.83

 

 

$

0.28

 

 

$

0.93

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Earnings Per Diluted Share

 

$

0.30

 

 

$

0.19

 

 

$

1.05

 

 

$

0.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Adjustments include a tax effect of 25% and 39% for each of the periods ending in 2018 and 2017, respectively, based on a normalized federal and state income tax rate.

 

(2)

The fourth quarter and full year 2018 include a $5.0 million legal settlement that is not deductible for tax purposes and therefore does not include a tax effect.

 

(3)

The fourth quarter and full year 2017 include a $52.7 million charge related to the revaluation of net deferred tax assets and net state unrecognized tax positions to reflect the new tax rate for future periods upon enactment of the Tax Cuts and Jobs Act (“TCJA”).

 

BALANCE SHEET AND CASH FLOW

Net cash provided by operating activities was $38.7 million for the quarter ended December 31, 2018, compared to $7.3 million for the prior year quarter. For the year ended December 31, 2018, net cash provided by operating activities was $57.0 million as compared to net cash used of $21.8 million for the year ended December 31, 2017.  

 

 

 

For the Quarter Ended December 31,

 

 

For the Year Ended December 31,

 

Selected Cash Flow Items

 

2018

 

 

2017

 

 

Increase (Decrease)

 

 

2018

 

 

2017

 

 

Increase (Decrease)

 

Net cash provided by (used in) operating activities

 

$

38,692

 

 

$

7,308

 

 

 

429.4

%

 

$

56,987

 

 

$

(21,789

)

 

 

361.5

%

Capital expenditures

 

$

2,780

 

 

$

2,906

 

 

 

-4.3

%

 

$

6,732

 

 

$

6,332

 

 

 

6.3

%

As of December 31, 2018 and December 31, 2017, cash, cash equivalents, restricted cash and available-for-sale short-term investments totaled $229.2 million and $180.1 million, respectively.

 



CEC ANNOUNCES 4Q18 RESULTS …PG 7

 

 

OUTLOOK                                                                                                   

The Company provided the following outlook, subject to the key assumptions identified below (see the GAAP to non-GAAP reconciliation for adjusted operating income and adjusted earnings per diluted share attached to this press release for further details):

Financial Outlook:

 

 

Full year 2019 - total company:

 

o

Operating income in the range of $102.0 million to $107.0 million

 

o

Adjusted operating income in the range of $114.0 million to $119.0 million

 

o

Earnings per diluted share in the range of $1.08 to $1.12

 

o

Adjusted earnings per diluted share in the range of $1.11 to $1.15

 

First quarter 2019 - total company:

 

o

Operating income in the range of $27.5 million to $29.0 million

 

o

Adjusted operating income in the range of $30.5 million to $32.0 million

 

o

Earnings per diluted share in the range of $0.29 to $0.31

 

o

Adjusted earnings per diluted share in the range of $0.30 to $0.32

University Group Enrollment Outlook:

 

 

CTU:

 

o

New student enrollments for the full year 2019 are expected to grow as compared to the prior year. 

 

 

AIU:

 

o

AIU’s new student enrollments are expected to experience significant growth in the first quarter of 2019 primarily driven by the academic calendar redesign, which will more than offset the decline in new student enrollments during the fourth quarter of 2018 and also contribute to new enrollment growth for the full year 2019.

Operating income, which is the most directly comparable GAAP measure to adjusted operating income, may not follow the same trends stated in the outlook above because of adjustments made for certain significant and non-cash items such as unused space charges that represent the present value of future remaining lease obligations for vacated space less an estimated amount for sublease income and subsequent adjustments as well as depreciation, amortization, asset impairment charges, significant restructuring charges and significant legal settlements. The operating income, adjusted operating income, earnings per share, adjusted earnings per share and enrollment outlook provided above for 2019 are based on the following key assumptions and factors, among others: (i) prospective student interest in the Company’s programs continues to trend in line with recent experiences, (ii) initiatives and investments in student-serving operations continue to positively impact enrollment trends within the University Group, (iii) no material changes in the current legal or regulatory environment, and excludes legal and regulatory liabilities and other related impacts which are not probable and estimable at this time, and any impact of new or proposed regulations, including the “borrower defense to repayment” and gainful employment regulations and any modifications thereto, (iv) no significant impact from ongoing legal or regulatory matters, including legal fees associated therewith, (v) no material changes in the estimated amount of compensation expense that could be impacted by changes in the Company’s stock price or the Company’s assessment of the probable outcome of performance conditions relating to performance-based compensation, and (vi) earnings per diluted share outlook assumes an effective income tax rate of 21.5% for the quarter and 24.5% for the full year. Although these estimates and assumptions are based upon management’s good faith beliefs regarding current and future circumstances and actions that may be undertaken, actual results could differ materially from these estimates. In addition, decisions we make in the future as we continue to evaluate diverse strategies to enhance shareholder value may impact the outlook provided above.

 

 

 

 

 

 


CEC ANNOUNCES 4Q18 RESULTS …PG 8

 

 

 

CONFERENCE CALL INFORMATION

 

Career Education Corporation will host a conference call on Wednesday, February 20, 2019 at 5:30 p.m. Eastern time to discuss its fourth quarter and full year 2018 results and 2019 outlook. Interested parties can access the live webcast of the conference call and the related presentation materials at www.careered.com in the Investor Relations section of the website. Participants can also listen to the conference call by dialing 1-844-378-6484 (domestic) or 1-412-542-4179 (international). 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 in the Investor Relations section of the website.

ABOUT CAREER EDUCATION CORPORATION

Career Education’s academic institutions offer a quality education to a diverse student population in a variety of disciplines through online, campus-based and blended learning programs. The Company’s two regionally-accredited universities – Colorado Technical University (“CTU”) and American InterContinental University (“AIU”) – provide degree programs through the master’s or doctoral level as well as associate and bachelor’s levels. Both universities predominantly serve students online with career-focused degree programs that are designed to meet the educational needs of today’s busy adults. CTU and AIU continue to show innovation in higher education, advancing new personalized learning technologies like their intellipath® learning platform. Career Education is committed to providing quality education that closes the gap between learners who seek to advance their careers and employers needing a qualified workforce.

A listing of University Group campus locations and web links to these institutions can be found at www.careered.com.

Except for the historical and present factual information contained herein, the matters set forth in this release, including statements identified by words such as “believe,” “will,” “expect,” “estimate,” “continue,” “outlook,” “trend” 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 assumptions, risks, uncertainties and other factors that could cause our results of operations, financial condition, cash flows, performance, 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 or revise such factors or 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 outcomes of which could materially and adversely affect our financial condition and operations, include, but are not limited to, the following: declines in enrollment or interest in our programs; our continued compliance with and eligibility to participate in Title IV Programs under the Higher Education Act of 1965, as amended, and the regulations thereunder (including the gainful employment, 90-10, financial responsibility and administrative capability standards prescribed by the U.S. Department of Education), as well as applicable accreditation standards and state regulatory requirements; the impact of recently effective “borrower defense to repayment” regulations and any modifications thereto; rulemaking by the U.S. Department of Education or any state or accreditor and increased focus by Congress and governmental agencies on, or increased negative publicity about, for-profit education institutions; our ability to successfully and cost effectively defend litigation and other claims brought against us; the success of our initiatives to improve student experiences, retention and academic outcomes; the ability of our student admissions and advising centers to achieve anticipated operating performance; increased competition; the impact of management changes; and changes in the overall U.S. economy. Further information about these and other relevant risks and uncertainties may be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and its subsequent filings with the Securities and Exchange Commission.

###

 

 

 



CEC ANNOUNCES 4Q18 RESULTS …PG 9

 

 

 

CONTACT

 

Investors:

Alpha IR Group

Chris Donovan or Chris Hodges

(312) 445-2870

CECO@alpha-ir.com

Or

 

Media:

Career Education Corporation

(847) 585-2600

media@careered.com

 


 

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents, unrestricted

 

$

32,394

 

 

$

18,110

 

Restricted cash

 

 

337

 

 

 

789

 

Restricted short-term investments

 

 

-

 

 

 

5,070

 

Short-term investments

 

 

196,428

 

 

 

156,178

 

Total cash and cash equivalents, restricted cash and short-term investments

 

 

229,159

 

 

 

180,147

 

 

 

 

 

 

 

 

 

 

Student receivables, net

 

 

28,751

 

 

 

18,875

 

Receivables, other, net

 

 

2,567

 

 

 

1,163

 

Prepaid expenses

 

 

7,771

 

 

 

7,722

 

Inventories

 

 

763

 

 

 

1,112

 

Other current assets

 

 

437

 

 

 

1,319

 

Assets of discontinued operations

 

 

-

 

 

 

382

 

Total current assets

 

 

269,448

 

 

 

210,720

 

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS:

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

30,048

 

 

 

33,230

 

Goodwill

 

 

87,356

 

 

 

87,356

 

Intangible assets, net

 

 

7,900

 

 

 

7,900

 

Student receivables, net

 

 

942

 

 

 

2,548

 

Deferred income tax assets, net

 

 

81,628

 

 

 

98,084

 

Other assets

 

 

4,993

 

 

 

5,673

 

Assets of discontinued operations

 

 

178

 

 

 

1,585

 

TOTAL ASSETS

 

$

482,493

 

 

$

447,096

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable

 

$

9,195

 

 

$

8,515

 

Accrued expenses:

 

 

 

 

 

 

 

 

Payroll and related benefits

 

 

24,530

 

 

 

32,910

 

Advertising and marketing costs

 

 

9,300

 

 

 

9,245

 

Income taxes

 

 

1,472

 

 

 

2,185

 

Other

 

 

19,668

 

 

 

31,233

 

Deferred revenue

 

 

32,351

 

 

 

22,897

 

Liabilities of discontinued operations

 

 

536

 

 

 

5,701

 

Total current liabilities

 

 

97,052

 

 

 

112,686

 

 

 

 

 

 

 

 

 

 

NON-CURRENT  LIABILITIES:

 

 

 

 

 

 

 

 

Deferred rent obligations

 

 

12,745

 

 

 

15,277

 

Other liabilities

 

 

17,493

 

 

 

22,143

 

Liabilities of discontinued operations

 

 

-

 

 

 

785

 

Total non-current liabilities

 

 

30,238

 

 

 

38,205

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

Preferred stock

 

 

-

 

 

 

-

 

Common stock

 

 

852

 

 

 

843

 

Additional paid-in capital

 

 

628,295

 

 

 

621,008

 

Accumulated other comprehensive loss

 

 

(298

)

 

 

(164

)

Accumulated deficit

 

 

(52,946

)

 

 

(108,127

)

Treasury stock

 

 

(220,700

)

 

 

(217,355

)

Total stockholders' equity

 

 

355,203

 

 

 

296,205

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

482,493

 

 

$

447,096

 


 

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND

COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share amounts and percentages)

 

 

 

For the Quarter Ended December 31,

 

 

 

2018

 

 

% of

Total

Revenue

 

 

2017

 

 

% of

Total

Revenue

 

REVENUE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tuition and fees

 

$

144,809

 

 

 

99.5

%

 

$

142,557

 

 

 

99.6

%

Other

 

 

696

 

 

 

0.5

%

 

 

561

 

 

 

0.4

%

Total revenue

 

 

145,505

 

 

 

 

 

 

 

143,118

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Educational services and facilities

 

 

25,460

 

 

 

17.5

%

 

 

28,977

 

 

 

20.2

%

General and administrative

 

 

97,517

 

 

 

67.0

%

 

 

100,807

 

 

 

70.4

%

Depreciation and amortization

 

 

2,345

 

 

 

1.6

%

 

 

2,622

 

 

 

1.8

%

Total operating expenses

 

 

125,322

 

 

 

86.1

%

 

 

132,406

 

 

 

92.5

%

Operating income

 

 

20,183

 

 

 

13.9

%

 

 

10,712

 

 

 

7.5

%

OTHER INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

1,213

 

 

 

0.8

%

 

 

572

 

 

 

0.4

%

Interest expense

 

 

(358

)

 

 

-0.2

%

 

 

(111

)

 

 

-0.1

%

Miscellaneous (expense) income

 

 

(29

)

 

 

0.0

%

 

 

176

 

 

 

0.1

%

Total other income

 

 

826

 

 

 

0.6

%

 

 

637

 

 

 

0.4

%

PRETAX INCOME

 

 

21,009

 

 

 

14.4

%

 

 

11,349

 

 

 

7.9

%

Provision for income taxes

 

 

7,034

 

 

 

4.8

%

 

 

55,982

 

 

 

39.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

 

13,975

 

 

 

9.6

%

 

 

(44,633

)

 

 

-31.2

%

Income from discontinued operations, net of tax

 

 

96

 

 

 

0.1

%

 

 

251

 

 

 

0.2

%

NET INCOME (LOSS)

 

 

14,071

 

 

 

9.7

%

 

 

(44,382

)

 

 

-31.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE LOSS, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

3

 

 

 

 

 

 

 

(80

)

 

 

 

 

Unrealized loss on investments

 

 

(30

)

 

 

 

 

 

 

(228

)

 

 

 

 

Total other comprehensive loss

 

 

(27

)

 

 

 

 

 

 

(308

)

 

 

 

 

COMPREHENSIVE INCOME (LOSS)

 

$

14,044

 

 

 

 

 

 

$

(44,690

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE - BASIC:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

0.20

 

 

 

 

 

 

$

(0.64

)

 

 

 

 

Income from discontinued operations

 

 

-

 

 

 

 

 

 

 

-

 

 

 

 

 

Net income (loss) per share

 

$

0.20

 

 

 

 

 

 

$

(0.64

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE - DILUTED:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

0.20

 

 

 

 

 

 

$

(0.64

)

 

 

 

 

Income from discontinued operations

 

 

-

 

 

 

 

 

 

 

-

 

 

 

 

 

Net income (loss) per share

 

$

0.20

 

 

 

 

 

 

$

(0.64

)

 

 

 

 

WEIGHTED AVERAGE SHARES OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

69,765

 

 

 

 

 

 

 

69,105

 

 

 

 

 

Diluted

 

 

71,583

 

 

 

 

 

 

 

69,105

 

 

 

 

 


 

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND

COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share amounts and percentages)

 

 

 

 

For the Year Ended December 31,

 

 

 

2018

 

 

% of

Total

Revenue

 

 

2017

 

 

% of

Total

Revenue

 

REVENUE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tuition and fees

 

$

578,545

 

 

 

99.5

%

 

$

593,849

 

 

 

99.6

%

Other

 

 

2,751

 

 

 

0.5

%

 

 

2,586

 

 

 

0.4

%

Total revenue

 

 

581,296

 

 

 

 

 

 

 

596,435

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Educational services and facilities

 

 

109,897

 

 

 

18.9

%

 

 

143,344

 

 

 

24.0

%

General and administrative

 

 

390,707

 

 

 

67.2

%