Exhibit 99.1
( BW)(CQN-IL-CAREER-EDUCATION)(CECO) CORRECTING and REPLACING Career Education Corporation Reports Results for 2006 Fourth Quarter and Full Year
Company Also Announces Operational Realignment
To Increase Efficiency and Market Responsiveness
Business Editors
CORRECTION...by Career Education Corporation
HOFFMAN ESTATES, Ill.—(BUSINESS WIRE)—Feb. 15, 2007—In BW6062 issued Feb. 15, 2007: The unaudited consolidated statements of cash flows for the three and twelve months ended December 31, 2006, included as exhibits to the press release have been replaced in order to correct certain clerical errors to the cash flow statements included as exhibits to the original press release. The remainder of the original release, including disclosures regarding cash flows, is unaffected by the corrections.
The corrected release reads:
CAREER EDUCATION CORPORATION REPORTS RESULTS FOR 2006 FOURTH QUARTER AND FULL YEAR
Company Also Announces Operational Realignment To Increase Efficiency and Market Responsiveness
Career Education Corporation (NASDAQ: CECO) today reported consolidated revenue from continuing operations of $429.1 million and net income from continuing operations of $39.9 million for the quarter ended December 31, 2006. For the full year 2006, consolidated revenue from continuing operations was $1.79 billion and net income from continuing operations was $94.8 million. The company also reported that is has undertaken a business realignment designed to capitalize on the company’s online expertise across the organization, streamline decision making, and reduce redundancies.
“Our quarterly results continued to be negatively affected by a number of near-term factors. The board and management of Career Education Corporation took steps during the quarter to address these issues, and help better position the company to achieve its long-term potential” said Bob Dowdell, Career Education’s Interim President and Chief Executive Officer. “Career Education will move forward with a more efficient and functional infrastructure, and a strong cash position and balance sheet. We are confident that the operational initiatives we implemented during the past several months will allow us to cost-effectively leverage our assets to build long-term value.”
As previously reported, in November 2006, the company announced its decision to sell 13 of its schools and campuses, including the nine campuses that comprise the Gibbs division, McIntosh College, the two campuses of Brooks College (Long Beach and Sunnyvale), and Lehigh Valley College. The results of these 13 schools and campuses are noted in all presentations as discontinued operations. Except as otherwise noted, financial data and non-financial metrics reflected in this release exclude discontinued operations.
RESULTS OF CONTINUING OPERATIONS
Three Months Ended December 31, 2006
· Consolidated revenue was $429.1 million during the fourth quarter of 2006, a 10.5 percent decrease from consolidated revenue of $479.6 million during the fourth quarter of 2005. Revenue generated by the University segment’s fully-online platforms decreased 22.9 percent during the fourth quarter of 2006, to $130.5 million, from $169.2 million during the fourth quarter of 2005.
· Consolidated income from operations declined to $46.6 million during the fourth quarter of 2006, from $109.4 million during the fourth quarter of 2005. Operating profit margin percentage was 10.8 percent during the fourth quarter of 2006, compared to an operating profit margin percentage of 22.8 percent during the fourth quarter of 2005. The decrease in operating profit margin percentage was primarily due to:
(1) an unfavorable mix change resulting in disproportionately larger revenue declines in our University segment, which produced the highest operating profit margins in 2005,
(2) a decrease in operating profit margin percentage generated by our University segment, driven by lower revenue, increased administrative expenses, and the disproportionate growth of CTU Online, which operates at a lower operating profit margin percentage than that of AIU Online,
(3) price decreases in our AIU Online associate degree programs,
(4) severance costs,
(5) equity compensation costs associated with the 2006 adoption of SFAS 123R, and
(6) increased occupancy expense and other fixed costs as a percentage of revenue due to declines in revenue.
The decrease in operating profit margin percentage was offset, in part, by a decrease in bad debt expense as a percentage of revenue.
The University segment’s fully-online platforms’ income from operations declined to $28.8 million during the fourth quarter of 2006, from $61.4 million during the fourth quarter of 2005.
· Consolidated net income from continuing operations during the fourth quarter of 2006 was $39.9 million, or $0.41 per diluted share, compared to consolidated net income from continuing operations of $73.7 million, or $0.73 per diluted share, during the fourth quarter of 2005. Fourth quarter 2006 consolidated net income from continuing operations includes a non-cash charge for share-based compensation expense of $1.5 million, net of tax benefit of $0.8 million, or $0.016 per diluted share and a $2.7 million, net of tax benefit of $1.4 million, or $0.028 per diluted share charge for future cash
payments related to severance payable to the company’s former Chairman, John M. Larson under a previously negotiated employment contract. Share-based compensation expense recorded during the fourth quarter of 2005, prior to our adoption of SFAS 123R, was insignificant.
Twelve Months Ended December 31, 2006
· Consolidated revenue was $1.79 billion during 2006, compared to consolidated revenue of $1.83 billion during 2005. Revenue generated by the University segment’s fully-online platforms decreased 1.1 percent, to $658.6 million during 2006, from $666.1 million during 2005.
· Consolidated income from operations decreased to $166.5 million during 2006, from $385.8 million during 2005. Operating income margin percentage decreased to 9.3 percent during 2006, from 21.1 percent during 2005. Consolidated 2006 income from operations includes goodwill and intangible asset impairment charges of $86.3 million, pre-tax, attributable to our Health Education division, share-based compensation expense, and severance costs (see table below).
The University segment’s fully-online platforms’ income from operations declined to $215.2 million during 2006, from $263.1 million during 2005. The decrease in the University segment’s fully-online platforms’ income from operations is primarily attributable to the adverse impact on student population and revenue of AIU’s probation status, and the cost and effect of changes adopted in response to recommendations made by AIU’s accrediting body.
The University segment’s fully-online platforms’ operating profit margin percentage decreased to 32.7 percent during 2006, from 39.5 percent during 2005. The decrease in the University segment’s operating profit margin percentage is primarily a result of the adverse impact on revenue of AIU’s probation status and the disproportionate growth of CTU Online, which operates at a lower operating profit margin percentage than that of AIU Online.
· Consolidated net income from continuing operations during 2006 was $94.8 million, or $0.97 per diluted share, compared to consolidated net income from continuing operations of $250.4 million, or $2.42 per diluted share, during 2005. Consolidated net income from continuing operations during 2006 includes the following non-cash and unusual items (in millions, except per share data):
| | | | | | | | Impact on | |
| | | | | | | | Earnings | |
| | | | | | | | Per | |
| | | | | | | | Diluted | |
| | Pretax | | Tax Benefit | | Net | | Share | |
Share-based compensation expense | | $ | (16.9 | )(1) | $ | 5.9 | | $ | (11.0 | ) | $ | (0.112 | ) |
Severance expense | | $ | (4.1 | )(2) | $ | 1.4 | | $ | (2.7 | ) | $ | (0.028 | ) |
Goodwill and intangible asset impairment charge - Health Education division | | $ | (86.3 | ) | $ | 2.8 | (3) | $ | (83.5 | ) | $ | (0.851 | ) |
Total | | $ | (107.3 | ) | $ | 10.1 | | $ | (97.2 | ) | $ | (0.991 | ) |
(1) This amount includes share-based compensation expense of approximately $1.7 million attributable to modifications made during the fourth quarter of 2006 to options held by the company’s former Chairman, John M. Larson.
(2) Severance expense represents future cash severance payments payable to the company’s former Chairman, John M. Larson.
(3) The company estimates that only $7.9 million of the Health Education division goodwill and intangible asset impairment charge will be deductible for income tax reporting purposes.
PROVISION FOR INCOME TAXES FOR CONTINUING OPERATIONS
Provision for income taxes during 2006 was $92.7 million, compared to provision for income taxes during 2005 of $149.6 million. This represents an effective income tax rate of 49.5 percent for the twelve months ended December 31, 2006. The unusual relationship between income before provision for income taxes and provision for income taxes for 2006 is attributable to the company’s estimation that only $7.9 million of the total $86.3 million Health Education division goodwill and intangible asset impairment charges recognized during 2006 will be deductible for income tax reporting purposes. Excluding the effect of the Health Education goodwill and intangible asset impairment charges, the company’s effective income tax rate for 2006 was 35.0 percent, compared to an effective income tax rate of 37.4 percent in 2005.
RESULTS OF DISCONTINUED OPERATIONS
A loss from discontinued operations of $48.2 million was recorded during 2006 associated with our 13 schools and campuses currently held for sale. The total $48.2 million loss includes 2006 operating losses of $25.5 million, net of income tax benefit of $13.5 million, an acceleration of rent expense for excess and unused leased space recorded in the fourth quarter of 2006 of $6.0 million, net of income tax benefit of $3.2 million, a goodwill impairment charge related to the Gibbs division of $6.8 million, net of income tax benefit of $3.6 million, recorded during the first quarter of 2006, and a charge of $9.8, net of income tax benefit of $5.2 million, recorded in the fourth quarter of 2006 to reduce the carrying value of net assets held for sale to fair value less costs to sell.
CASH FLOWS AND FINANCIAL POSITION FOR CONTINUING OPERATIONS
Cash Flows
· Net cash provided by operating activities was $240.9 million
during 2006, compared to $371.4 million during 2005. The decrease is primarily attributable to the decrease in net income during 2006.
· Capital expenditures decreased to $69.3 million during 2006, from $112.3 million during 2005. Capital expenditures represented 3.9 percent of consolidated revenue during 2006 and 6.1 percent of consolidated revenue during 2005.
Financial Position
· As of December 31, 2006 and December 31, 2005, cash and cash equivalents and investments totaled $447.8 million and $401.4 million, respectively. This increase is primarily attributable to cash generated by operating activities during 2006, offset by stock repurchases.
· Quarterly days sales outstanding (DSO) were 12 days as of December 31, 2006, which is consistent with DSO as of December 31, 2005, of 12 days.
Stock Repurchase Program
Since July 2005, CEC’s Board of Directors has authorized the use of a total of $500.2 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 fourth quarter of 2006, the company repurchased 1.7 million shares of its common stock for approximately $41.3 million at an average price of $25.01 per share. During 2006, the company repurchased 5.6 million shares of its common stock for approximately $166.1 million at an average price of $30.20 per share.
Since the inception of the program, the company has repurchased 10.8 million shares of its common stock for approximately $366.3 million at an average price of $34.00 per share.
ACQUISITION
On January 25, 2007, the company acquired Istituto Marangoni, a world-renowned post secondary fashion and design school with locations in three prominent international fashion capitals.
POPULATION AND NEW STUDENT START DATA
Student Population
Total student population by reportable segment as of January 31, 2007 and 2006, was as follows (1):
| | Population | | Population | | Percentage | |
Segment | | January 31, 2007 | | January 31, 2006 | | Difference | |
University (2) | | 41,000 | | 46,400 | | (12 | )% |
Culinary Arts | | 10,900 | | 11,500 | | (5 | )% |
Colleges | | 8,700 | | 10,200 | | (15 | )% |
Health Education | | 11,600 | | 10,700 | | 8 | % |
Academy | | 9,500 | | 9,800 | | (3 | )% |
International | | 7,600 | | 5,500 | | 38 | % |
· INSEEC | | 6,100 | | 5,500 | | 11 | % |
· Istituto Marangoni | | 1,500 | | N/A | | N/A | |
CEC Consolidated | | 89,300 | | 94,100 | | (5 | )% |
(1) The company announced plans during the third quarter of 2006 to “teach-out” all of the programs at its Springfield, MA campus of Sanford-Brown Institute (SBI). As a result, student population for SBI Springfield has been excluded in all presentations.
(2) As of January 31, 2007 and 2006, the University segment population included approximately 28,600 students and 32,700 students, respectively, who were taking classes at such dates in fully-online academic programs offered by University segment schools.
Total student population for schools held for sale as of January 31, 2007 and 2006, was as follows:
| | Population | | Population | | Percentage | |
| | January 31, 2007 | | January 31, 2006 | | Difference | |
Gibbs | | 6,800 | | 7,000 | | (3 | )% |
Colleges held for sale | | 2,100 | | 2,900 | | (28 | )% |
Total | | 8,900 | | 9,900 | | (10 | )% |
New Student Starts
New student starts by reportable segment during the fourth quarter of 2006 and 2005, were as follows (1):
| | Fourth quarter | | Fourth quarter | | Percentage | |
Segment | | 2006 | | 2005 | | Difference | |
University (2) | | 11,480 | | 16,600 | | (31 | )% |
Culinary Arts | | 2,370 | | 2,100 | | 13 | % |
Colleges | | 710 | | 1,000 | | (29 | )% |
Health Education | | 2,790 | | 2,510 | | 11 | % |
Academy | | 2,520 | | 2,640 | | (4 | )% |
International | | 1,060 | | 900 | | 18 | % |
CEC Consolidated | | 20,930 | | 25,750 | | (19 | )% |
(1) The company announced plans during the third quarter of 2006 to “teach-out” all of the programs at its Springfield, MA campus of Sanford-Brown Institute (SBI). As a result, student starts for SBI Springfield have been excluded in all presentations.
(2) University segment new student starts includes approximately 9,400 students and 14,000 students, respectively, who were taking classes in fully-online academic programs offered by University segment schools during the fourth quarter of 2006 and 2005.
New student starts for schools held for sale during the fourth quarter of 2006 and 2005, were as follows:
| | Fourth quarter | | Fourth quarter | | Percentage | |
| | 2006 | | 2005 | | Difference | |
Gibbs | | 2,040 | | 1,800 | | 13 | % |
Colleges held for sale | | 560 | | 630 | | (11 | )% |
Total | | 2,600 | | 2,430 | | 7 | % |
RECENT INITIATIVES
During the past several months, the company executed on several measures as part of a strategic plan to better focus the business, increase efficiency and profitability, and ensure that the company’s priorities align with those of its students. These initiatives included the following:
· Career Education has developed an Online Service Center to leverage significant online and on-ground capabilities to provide students at all of its schools with more flexible educational delivery options.
· The company is completing a corporate realignment that will facilitate more consistent customer-focused decision making by reducing redundancies and streamlining the decision- making process.
· The company continues to implement measures that are having a positive impact to admissions productivity, including its
supplemental compensation program for admissions representatives, extended payment plans for students, a process for better qualification of leads, and a greater focus on referrals.
· The company continues to focus on and build its strengths in “careers of passion.” On November 11, 2006, the company announced that it intends to sell 13 schools and campuses, including the entire Gibbs segment and select schools in the Colleges segment. By focusing on areas where Career Education has the greatest competitive advantages and proven success, the company can more effectively prepare students for careers they are passionate about through its high-quality boutique schools, gold-standard brands, and flexible student-centered product offerings.
· Similarly, the company is opening start-up campuses and has made an International acquisition consistent with its focus on premier schools and careers of passion.
“The significant steps we have taken over the last two quarters to realign and focus our business should both position the company in the short term as an innovative leader in the delivery of high-quality post-secondary education and have a significant impact on student population over the long term,” said Dowdell. “We continue to be committed to delivering value over the long term for our students, employees, and stockholders.”
CONFERENCE CALL INFORMATION
Career Education Corporation will host a conference call today, February 15, 2007, at 5:00 PM (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 617-224-4324 (international) or 800-573-4752 (domestic) and citing code 23397974. Please log-in or dial-in at least 10 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 617-801-6888 (international) or 888-286-8010 and citing code 42129535.
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 80-plus 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. Many students attend the fully-online educational platforms offered by American InterContinental University Online and Colorado Technical University Online.
Career Education is an industry leader whose gold-standard brands are recognized globally. Those brands include, among others, Le Cordon
Bleu Schools North America; Harrington College of Design; Brooks Institute of Photography; the Katharine Gibbs Schools; American InterContinental University; Colorado Technical University; and Sanford-Brown Institutes and Colleges. Through its schools, its educators, and its employees, CEC provides quality education that enables its students to graduate and pursue successful and rewarding careers.
For more information, see www.careered.com. The company’s website also has a detailed listing of individual campus locations and web links for its colleges, schools, and universities.
Except for the historical and present factual information contained herein, the matters set forth in this release, including statements under “Recent Initiatives” and 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 and Justice Department investigations and class action, derivative, 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, 2005, and from time to time in our other reports filed with the Securities and Exchange Commission.
CAREER EDUCATION CORPORATION
SELECTED ACCOUNTS RECEIVABLE AND ALLOWANCE INFORMATION - CONTINUING OPERATIONS
(Dollars in thousands)
DAYS SALES OUTSTANDING
| | December 31, | |
| | 2006 | | 2005 | |
Total revenue during the quarter ended | | $ | 429,124 | | $ | 479,614 | |
Number of days in the quarter ended | | 92 | | 92 | |
Total revenue per day | | $ | 4,664 | | $ | 5,213 | |
Total receivables, net | | $ | 56,244 | | $ | 61,888 | |
Days sales outstanding | | 12 | | 12 | |
ALLOWANCE AS A PERCENTAGE OF STUDENT RECEIVABLES
| | December 31, | |
| | 2006 | | 2005 | |
Allowance for doubtful accounts | | $ | 28,532 | | $ | 37,961 | |
Gross student receivables | | $ | 76,692 | | $ | 95,562 | |
Allowance as a percentage of student receivables | | 37.2 | % | 39.7 | % |
STUDENT RECEIVABLES VALUATION ALLOWANCE
| | Balance, | | Charges | | Amounts | | Balance, | |
| | Beginning | | to | | Written- | | End of | |
| | of Period | | Expense | | Off | | Period | |
For the three months ended December 31, 2006 | | $ | 33,792 | | $ | 9,436 | | $ | (14,696 | ) | $ | 28,532 | |
| | | | | | | | | |
For the three months ended December 31, 2005 | | $ | 41,407 | | $ | 18,320 | | $ | (21,766 | ) | $ | 37,961 | |
| | | | | | | | | |
For the twelve months ended December 31, 2006 | | $ | 37,961 | | $ | 55,759 | | $ | (65,188 | ) | $ | 28,532 | |
| | | | | | | | | |
For the twelve months ended December 31, 2005 | | $ | 44,228 | | $ | 73,911 | | $ | (80,178 | ) | $ | 37,961 | |
CAREER EDUCATION CORPORATION
SELECTED HISTORICAL 2006 SEGMENT INFORMATION - CONTINUING OPERATIONS (1)
(Dollars in thousands)
| | For the Three Months Ended, | | For the Year
Ended | |
| | March 31, | | June 30, | | September 30, | | December 31, | | December 31, | |
REVENUE: | | | | | | | | | | | |
University segment | | $ | 243,582 | | $ | 226,322 | | $ | 193,352 | | $ | 174,320 | | $ | 837,576 | |
Culinary Arts segment | | 90,628 | | 82,706 | | 96,908 | | 93,927 | | 364,169 | |
Colleges segment | | 51,836 | | 47,884 | | 45,635 | | 53,286 | | 198,641 | |
Health Education segment | | 40,578 | | 41,082 | | 42,811 | | 44,425 | | 168,896 | |
Academy segment | | 43,027 | | 39,418 | | 37,688 | | 44,415 | | 164,548 | |
Inter-national segment | | 14,883 | | 10,626 | | 7,045 | | 18,341 | | 50,895 | |
JDV Online segment | | 107 | | 144 | | 233 | | 410 | | 894 | |
| | $ | 484,641 | | $ | 448,182 | | $ | 423,672 | | $ | 429,124 | | $ | 1,785,619 | |
| | | | | | | | | | | |
SEGMENT PROFIT (LOSS): | | | | | | | | | | | |
University segment | | $ | 82,390 | | $ | 67,494 | | $ | 33,208 | | $ | 25,497 | | 208,589 | |
Culinary Arts segment | | 14,009 | | 8,384 | | 19,341 | | 18,912 | | 60,646 | |
Colleges segment | | 11,252 | | 9,094 | | 7,302 | | 14,351 | | 41,999 | |
Health Education segment (2) | | 1,213 | | (85,225 | ) | 339 | | 1,122 | | (82,551 | ) |
Academy segment | | 4,681 | | 1,720 | | 427 | | 6,980 | | 13,808 | |
Inter-national segment | | 3,862 | | 1,179 | | 886 | | 5,529 | | 11,456 | |
JDV Online segment | | (1,889 | ) | (2,181 | ) | (1,983 | ) | (889 | ) | (6,942 | ) |
Corporate and other | | (14,935 | ) | (19,458 | ) | (19,045 | ) | (23,093 | ) | (76,531 | ) |
| | 100,583 | | (18,993 | ) | $ | 40,475 | | $ | 48,409 | | $ | 170,474 | |
| | | | | | | | | | | |
SEGMENT PROFIT (LOSS) PERCENTAGE: | | | | | | | | | | | |
University segment | | 33.8 | % | 29.8 | % | 17.2 | % | 14.6 | % | 24.9 | % |
Culinary Arts segment | | 15.5 | % | 10.1 | % | 20.0 | % | 20.1 | % | 16.7 | % |
Colleges segment | | 21.7 | % | 19.0 | % | 16.0 | % | 26.9 | % | 21.1 | % |
Health Education segment (2) | | 3.0 | % | -207.5 | % | 0.8 | % | 2.5 | % | -48.9 | % |
Academy segment | | 10.9 | % | 4.4 | % | 1.1 | % | 15.7 | % | 8.4 | % |
Inter-national segment | | 25.9 | % | 11.1 | % | 12.6 | % | 30.1 | % | 22.5 | % |
JDV Online Segment | | -1765.4 | % | -1514.6 | % | -851.1 | % | -216.8 | % | -776.5 | % |
| | | | | | | | | | | |
STUDENT STARTS: | | | | | | | | | | | |
University segment (3) | | 17,020 | | 10,510 | | 11,730 | | 11,480 | | 50,740 | |
Culinary Arts segment | | 2,510 | | 1,690 | | 4,320 | | 2,370 | | 10,890 | |
Colleges segment | | 1,340 | | 780 | | 2,540 | | 710 | | 5,370 | |
Health Education segment (4) | | 3,710 | | 3,010 | | 4,020 | | 2,790 | | 13,530 | |
Academy segment | | 1,540 | | 1,170 | | 1,860 | | 2,520 | | 7,090 | |
Inter-national segment | | 460 | | 330 | | 2,680 | | 1,060 | | 4,530 | |
| | 26,580 | | 17,490 | | 27,150 | | 20,930 | | 92,150 | |
STUDENT POPULATION AS OF:
| | April 30, | | July 31, | | October 31, | | January 31, | |
| | 2006 | | 2006 | | 2006 | | 2007 | |
University segment (5) | | 44,000 | | 37,700 | | 41,400 | | 41,000 | |
Culinary Arts segment | | 10,600 | | 10,600 | | 11,700 | | 10,900 | |
Colleges segment | | 9,000 | | 7,900 | | 9,200 | | 8,700 | |
Health Education segment (4) | | 10,900 | | 10,400 | | 11,600 | | 11,600 | |
Academy segment | | 9,100 | | 8,600 | | 10,000 | | 9,500 | |
Inter-national segment | | 4,300 | | 700 | | 6,000 | | 7,600 | |
| | 87,900 | | 75,900 | | 89,900 | | 89,300 | |
(1) Effective September 30, 2006, we changed the composition of our reportable segments. The historical segment information reflected in this table is categorized in accordance with our new segment structure.
(2) Health Education segment loss for the quarter ended June 30, 2006, includes a goodwill impairment charge of $84,975.
(3) University segment student starts during the quarters ended March 31, 2006, June 30, 2006, September 30, 2006, and December 31, 2006, included student starts of 14,800, 9,000, 9,200, and 9,400 respectively, for its fully-online platforms.
(4) Student starts and student population exclude SBI Springfield, which is currently being taught out.
(5) University segment student population as of April 30, 2006, July 31, 2006, October 31, 2006, and January 31, 2007, included 31,500, 28,500, 28,800, and 28,600 students, respectively, enrolled in its fully-online platforms.
CAREER EDUCATION CORPORATION
SELECTED HISTORICAL 2005 SEGMENT INFORMATION - CONTINUING OPERATIONS (1)
(Dollars in thousands)
| | | | For the Year | |
| | For the Three Months Ended, | | Ended | |
| | March 31, | | June 30, | | September 30, | | December 31, | | December 31, | |
REVENUE: | | | | | | | | | | | |
University segment | | $ | 211,719 | | $ | 221,030 | | $ | 215,280 | | $ | 222,095 | | $ | 870,124 | |
Culinary Arts segment | | 92,556 | | 90,908 | | 100,406 | | 99,461 | | 383,331 | |
Colleges segment | | 56,262 | | 50,429 | | 51,169 | | 58,456 | | 216,316 | |
Health Education segment | | 37,921 | | 37,508 | | 38,310 | | 40,135 | | 153,874 | |
Academy segment | | 40,648 | | 37,107 | | 38,160 | | 44,094 | | 160,009 | |
Inter-national segment | | 13,554 | | 10,307 | | 5,610 | | 15,360 | | 44,831 | |
JDV Online segment | | — | | — | | — | | 13 | | 13 | |
| | $ | 452,660 | | $ | 447,289 | | $ | 448,935 | | $ | 479,614 | | $ | 1,828,498 | |
| | | | | | | | | | | |
SEGMENT PROFIT (LOSS): | | | | | | | | | | | |
University segment | | $ | 78,530 | | $ | 75,682 | | $ | 63,925 | | $ | 69,887 | | $ | 288,024 | |
Culinary Arts segment | | 18,336 | | 15,049 | | 25,439 | | 23,847 | | 82,671 | |
Colleges segment | | 14,984 | | 11,336 | | 11,066 | | 16,731 | | 54,117 | |
Health Education segment | | (1,003 | ) | (389 | ) | 683 | | 1,797 | | 1,088 | |
Academy segment | | 2,862 | | 572 | | 2,193 | | 6,031 | | 11,658 | |
Inter-national segment | | 3,462 | | 2,295 | | 297 | | 3,079 | | 9,133 | |
JDV Online segment | | (75 | ) | (372 | ) | (785 | ) | (2,171 | ) | (3,403 | ) |
Corporate and other | | (16,074 | ) | (15,017 | ) | (12,916 | ) | (8,408 | ) | (52,415 | ) |
| | $ | 101,022 | | $ | 89,156 | | $ | 89,902 | | $ | 110,793 | | $ | 390,873 | |
| | | | | | | | | | | |
SEGMENT PROFIT (LOSS) PERCENTAGE: | | | | | | | | | | | |
University segment | | 37.1 | % | 34.2 | % | 29.7 | % | 31.5 | % | 33.1 | % |
Culinary Arts segment | | 19.8 | % | 16.6 | % | 25.3 | % | 24.0 | % | 21.6 | % |
Colleges segment | | 26.6 | % | 22.5 | % | 21.6 | % | 28.6 | % | 25.0 | % |
Health Education segment | | -2.6 | % | -1.0 | % | 1.8 | % | 4.5 | % | 0.7 | % |
Academy segment | | 7.0 | % | 1.5 | % | 5.7 | % | 13.7 | % | 7.3 | % |
Inter-national segment | | 25.5 | % | 22.3 | % | 5.3 | % | 20.0 | % | 20.4 | % |
JDV Online segment | | N/A | | N/A | | N/A | | -16700.0 | % | -26176.9 | % |
STUDENT STARTS: | | | | | | | | | | | |
University segment | | 20,030 | | 13,010 | | 15,250 | | 16,600 | | 64,890 | |
Culinary Arts segment | | 2,710 | | 1,940 | | 4,300 | | 2,100 | | 11,050 | |
Colleges segment | | 1,950 | | 1,020 | | 2,990 | | 1,000 | | 6,960 | |
Health Education segment (2) | | 3,140 | | 2,740 | | 3,970 | | 2,510 | | 12,360 | |
Academy segment | | 1,810 | | 1,380 | | 2,280 | | 2,640 | | 8,110 | |
Inter-national segment | | 480 | | 260 | | 2,400 | | 900 | | 4,040 | |
| | 30,120 | | 23,050 | | 31,190 | | 25,750 | | 107,410 | |
STUDENT POPULATION AS OF:
| | April 30, | | July 31, | | October 31, | | January 31, | |
| | 2005 | | 2005 | | 2005 | | 2006 | |
University segment | | 39,400 | | 41,200 | | 46,400 | | 46,400 | |
Culinary Arts segment | | 11,600 | | 11,500 | | 12,500 | | 11,500 | |
Colleges segment | | 9,900 | | 9,200 | | 10,700 | | 10,200 | |
Health Education segment (2) | | 10,400 | | 9,800 | | 11,000 | | 10,700 | |
Academy segment | | 8,900 | | 8,800 | | 10,100 | | 9,800 | |
Inter-national segment | | 4,500 | | 300 | | 5,500 | | 5,500 | |
| | 84,700 | | 80,800 | | 96,200 | | 94,100 | |
(1) Effective September 30, 2006, we changed the composition of our reportable segments. The historical segment information reflected in this table is categorized in accordance with our new segment structure.
(2) Student starts and student population exclude SBI Springfield, which is currently being taught out.
