Perdoceo Education (PRDO) 8-K Career Education Corporation Reports

Exhibit 99.1

CAREER EDUCATION CORPORATION REPORTS

RESULTS FOR THIRD QUARTER 2009

Revenue increased 17% and operating income increased 233% excluding Transitional Schools

and other significant items

Company on track to exceed previously stated 2010 milestones

Hoffman Estates, Ill. (November 4, 2009) – Career Education Corporation (NASDAQ: CECO) today reported total revenue of $459.9 million, and net income of $20.8 million, or $0.25 per diluted share, for the third quarter of 2009 compared to total revenue of $403.0 million and a net loss of $0.1 million, or $0.00 per diluted share, for the third quarter of 2008.

The financial and operating results for the third quarter 2009 and 2008 include revenue and operating losses associated with schools currently being taught out (Transitional Schools) as well as other significant items as itemized in the tables within this press release.

On a non-GAAP basis, which excludes the Transitional Schools and other significant items, revenue was $457.5 million in the third quarter, a 16.5 percent increase from $392.7 million in the third quarter of 2008 and earnings per diluted share were $0.47 in the third quarter as compared to $0.18 in the third quarter of 2008, an increase of over 160%. (See segment tables below and the GAAP to non-GAAP reconciliation attached to this press release.)

“We are pleased with our third-quarter results, as they reflect the progress we have made across the organization on our transformation initiatives,” said Gary E. McCullough, President and Chief Executive Officer. “Revenue growth accelerated in the third quarter, as we achieved the highest levels of new student starts and student population in our company’s history. We also delivered another meaningful increase in operating margins, positioning us well ahead of our 2009 internal plan.”

CEC ANNOUNCES 3Q09 RESULTS …PG 2

Outlook

In March 2008, the company established milestone objectives for 2010 of between $225 and $270 million in operating income. Based upon the financial performance through the first nine months, and the record level of student population as of October 31, 2009, the company is on track to achieve operating income, excluding Transitional Schools and other significant items, within the low end of the 2010 milestone objective range in 2009, a year ahead of schedule.

Three Months Ended September 30, 2009

• Total revenue from continuing operations was $459.9 million during the third quarter of 2009, a 14.1 percent increase from $403.0 million during the third quarter of 2008. Excluding the Transitional Schools, revenue was $457.5 million in the third quarter, a 16.5 percent increase from $392.7 million in the third quarter of 2008.

• The financial and operating results for the third quarter 2009 and 2008 include operating losses associated with Transitional Schools as well as other significant items as summarized below:

	Reconciling Items (In Millions)			Diluted Earnings per Share Impact
Three Months Ended September 30, 2009
Performance-based Compensation Related To Plan Outperformance	$	(18.8	)	$	(0.14	)
Transitional Schools Operating Losses		(7.4	)		(0.06	)
Asset Impairment Charges		(2.5	)		(0.02	)
TOTAL	$	(28.7	)	$	(0.22	)
Three Months Ended September 30, 2008
Lease Exit Charges	$	(9.7	)	$	(0.07	)
Transitional Schools Operating Losses		(8.0	)		(0.06	)
Asset Impairment Charges		(6.8	)		(0.05	)
TOTAL	$	(24.5	)	$	(0.18	)

• The company believes it is useful to present non-GAAP financial measures excluding these impacts as a means to understand the performance of its core business.

• Operating income was $32.3 million during the third quarter of 2009, versus an operating loss of $6.2 million during the third quarter of 2008. Operating margin was 7.0 percent during the third

CEC ANNOUNCES 3Q09 RESULTS …PG 3

quarter of 2009, as compared to an operating margin loss of 1.5 percent during the third quarter of 2008.

• Excluding the reconciling items listed in the table above, operating income was $61.0 million in the third quarter of 2009, up 233.3 percent from $18.3 million in the third quarter of 2008 and operating margin was 13.3 percent during the third quarter of 2009, an 8.6 percentage point increase compared to an operating margin percentage of 4.7 percent during the third quarter of 2008.

Nine Months Ended September 30, 2009

• Total revenue from continuing operations was $1.34 billion during the nine months ended September 30, 2009, a 5.7 percent increase from $1.27 billion during the nine months ended September 30, 2008. Excluding the Transitional Schools, revenue was $1.33 billion during the nine months ended September 30, 2009, an 8.4 percent increase from $1.22 billion during the nine months ended September 30, 2008.

• Operating income increased to $86.3 million during the nine months ended September 30, 2009, from $37.1 million during the nine months ended September 30, 2008. Operating margin increased to 6.5 percent during the nine months ended September 30, 2009, from 2.9 percent during the nine months ended September 30, 2008.

• Income from continuing operations during the nine months ended September 30, 2009, was $57.9 million, or $0.66 per diluted share, relative to $37.2 million, or $0.41 per diluted share, during the nine months ended September 30, 2008.

• The financial and operating results for the nine months ended September 30, 2009 and 2008 include operating losses associated with Transitional Schools as well as other significant items as summarized below:

	Reconciling Items (In Millions)			Diluted Earnings per Share Impact
Nine Months Ended September 30, 2009
Transitional Schools Operating Losses	$	(44.5	)	$	(0.33	)
Performance-based Compensation Related To Plan Outperformance		(25.3	)		(0.19	)
Asset Impairment Charges		(2.5	)		(0.02	)

CEC ANNOUNCES 3Q09 RESULTS …PG 4

Severance and Stay Bonus Charges		(1.5	)		(0.01	)
TOTAL	$	(73.8	)	$	(0.55	)
Nine Months Ended September 30, 2008
Transitional Schools Operating Losses	$	(27.9	)	$	(0.20	)
Lease Exit Charges		(9.7	)		(0.07	)
Asset Impairment Charges		(6.8	)		(0.05	)
Severance and Stay Bonus Charges		(4.3	)		(0.03	)
Gain from Termination of Affiliate Relationship		—			0.03
TOTAL	$	(48.7	)	$	(0.32	)

• Excluding the reconciling items listed in the table above, operating income was $160.1 million during the nine months ended September 30, 2009, up 86.6 percent from $85.8 million during the nine months ended September 30, 2008 and operating margin was 12.0 percent during the nine months ended September 30, 2009, a 5.0 percentage point increase relative to an operating margin of 7.0 percent during the nine months ended September 30, 2008.

CONSOLIDATED CASH FLOWS AND FINANCIAL POSITION

Cash Flows

• Cash provided by operating activities was $217.4 million during the nine months ended September 30, 2009, compared to cash provided by operating activities of $158.9 million during the nine months ended September 30, 2008.

• Capital expenditures increased to $50.3 million during the nine months ended September 30, 2009, from $39.9 million during the nine months ended September 30, 2008. Capital expenditures represented 3.8 percent of total revenue during the nine months ended September 30, 2009.

Financial Position

• As of September 30, 2009 and December 31, 2008, cash and cash equivalents and investments totaled $473.8 million and $508.7 million, respectively.

• Days sales outstanding (DSO) were 14 days as of September 30, 2009, compared to 13 days as of September 30, 2008.

CEC ANNOUNCES 3Q09 RESULTS …PG 5

Stock Repurchase Program

During the three months ended September 30, 2009, the company repurchased approximately 1.7 million shares of its common stock for approximately $40.0 million at an average price of $24.15 per share. During the nine months ended September 30, 2009, the company repurchased 8.2 million shares of its common stock for approximately $180.0 million at an average price of $21.84 per share.

As of September 30, 2009, approximately $215.5 million was available under the Company’s previously authorized repurchase program. This amount includes an additional $200.0 million authorized by our Board of Directors on August 4, 2009. Stock repurchases under this program may be made on the open market or in privately negotiated transactions from time to time, depending on various 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.

Revenue

	For the three months ended September 30,						% Change
	2009			2008			2009 vs. 2008
Revenue (in millions)
University	$	206.8		$	172.8		20	%
Culinary Arts		91.6			86.0		7	%
Health Education		78.0			59.5		31	%
Art & Design		65.9			61.8		7	%
International		15.3			12.6		22	%
Corporate and other		(0.1	)		(0.0	)	NM
Subtotal	$	457.5		$	392.7		17	%
Transitional Schools		2.4			10.3		(77	)%
Total Revenue	$	459.9		$	403.0		14	%

Operating Income

	For the three months ended September 30,						% Change
	2009			2008			2009 vs. 2008
Operating Income (in millions)
University	$	40.9		$	27.3		50	%
Culinary Arts		7.4			(10.4	)	171	%
Health Education		12.9			3.1		316	%
Art & Design		7.8			3.8		105	%
International		(4.5	)		(5.2	)	13	%
Corporate and other		(24.8	)		(16.8	)	(48	)%
Subtotal	$	39.7		$	1.8		NM
Transitional Schools		(7.4	)		(8.0	)	8	%
Total Operating Income	$	32.3		$	(6.2	)	621	%

Operating Margin

CEC ANNOUNCES 3Q09 RESULTS …PG 6

	For the three months ended September 30,
	2009		2008
Operating Margin
University	19.8	%	15.8	%
Culinary Arts	8.0	%	-12.1	%
Health Education	16.5	%	5.3	%
Art & Design	11.8	%	6.2	%
International	-29.3	%	-41.6	%
Corporate and other	NM		NM
Subtotal	8.7	%	0.4	%
Transitional Schools	NM		-77.7	%
Total	7.0	%	-1.5	%

STUDENT POPULATION AND NEW STUDENT START DATA

Student Population

Total student population by reportable segment as of October 31, 2009 and 2008, were as follows:

	As of October 31,		% Change
	2009	2008	2009 vs. 2008
STUDENT POPULATION
University	53,700	44,800	20	%
Culinary Arts	12,500	10,300	21	%
Health Education	22,900	17,400	32	%
Art & Design	13,900	14,000	(1	)%
International	10,900	9,700	12	%
Subtotal	113,900	96,200	18	%
Transitional Schools	300	2,200	(86	)%
Total Student Population	114,200	98,400	16	%
ONLINE STUDENT POPULATION
Culinary Arts	100	0	NM
Art & Design	1,400	800	75	%
University	42,300	34,400	23	%
Total Online Student Population	43,800	35,200	24	%

New Student Starts

New student starts by reportable segment during the third quarter of 2009 and 2008, were as follows:

	For the three months ended September 30,		% Change
	2009	2008	2009 vs. 2008
NEW STUDENT STARTS
University	16,010	14,130	13	%
Culinary Arts	7,110	4,710	51	%
Health Education	7,040	5,600	26	%
Art & Design	3,310	3,080	7	%

CEC ANNOUNCES 3Q09 RESULTS …PG 7

International	4,200	4,070	3	%
Subtotal	37,670	31,590	19	%
Transitional Schools	0	10	NM
Total New Student Starts	37,670	31,600	19	%
ONLINE NEW STUDENT STARTS
Culinary Arts	90	0	NM
Art & Design	370	320	16	%
University	13,090	11,480	14	%
Total Online Student Starts	13,550	11,800	15	%

CONFERENCE CALL INFORMATION

Career Education Corporation will host a conference call on November 5, 2009 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 800-471-6718 (domestic) or 630-691-2735 (international) and reference confirmation 25477681. 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. A replay of the call will also be available for seven days by calling 888-843-8996 (domestic) or 630-652-3044 (international) and reference confirmation 25477681.

About Career Education Corporation

The colleges, schools and universities that are part of the Career Education Corporation (CEC) family offer high-quality education to a diverse student population of over 110,000 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 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 CEC’s students attend the web-based virtual campuses of American InterContinental University and Colorado Technical University.

CEC is an industry leader whose gold-standard brands are recognized globally. Those brands include, among others, American InterContinental University; Brooks Institute; Colorado Technical University; Harrington College of Design; INSEEC Schools; International Academy of Design & Technology; Istituto Marangoni; Le Cordon Bleu North America; and Sanford-Brown Institutes and Colleges. CEC is committed to providing quality education, enabling students to graduate and pursue rewarding careers.

For more information, see CEC’s website atwww.careered.com. The website includes a detailed listing of individual campus locations and web links to CEC’s 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,” “potential” 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 the 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

CEC ANNOUNCES 3Q09 RESULTS …PG 8

following: the adverse impact and potential impacts on the availability of Title IV and private student loans for our students of (1) the willingness or ability of private lenders to make private student loans in the current U.S. credit markets, (2) new student lending related reporting and disclosure obligations on institutions that participate in Title IV federal student financial aid programs under The Higher Education Opportunity Act (“HEOA”), signed into law on August 14, 2008, in the first full reauthorization of the Higher Education Act of 1965, as amended (together with HEOA, “HEA”) or provide payment plans to students and (3) pending regulations under HEOA, HEA and Congress’ willingness or ability to maintain or increase funding for Title IV programs; potential higher bad debt expense or reduced revenue associated with requiring students to pay more of their educational expenses while in school or with directly providing extended payment plans to our students; increased competition; the effectiveness of our regulatory compliance efforts; impairment of goodwill and other intangible assets as we continue to redefine the company and manage our brands and marketing to improve effectiveness and reduce costs; charges and expenses associated with exiting excess facility space, the impact on our revenues and profitability of our transitional segment; our ability to comply with accrediting agency requirements or obtain accrediting agency approvals for existing or new programs; our dependence on information technology systems; our ownership or use of intellectual property; costs and impacts of regulatory, legal and administrative actions, proceedings and investigations, governmental regulations, and class action and other lawsuits; our ability to manage and continue growth; and other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2008, our Quarterly Reports on Form 10-Q for the most recent fiscal quarters, and from time to time in our current reports filed with the Securities and Exchange Commission.

###

Investors:	John Springer
	847/585-3899
	www.careered.com
Media:	Jeff Leshay
	847/585-2005

CAREER EDUCATION CORPORATION

SELECTED SEGMENT INFORMATION

(Dollars in thousands)

	For the Three Months Ended September 30,
	2009			2008
REVENUE:
University	$	206,810		$	172,856
Culinary Arts		91,654			85,961
Health Education		77,981			59,514
Art & Design		65,879			61,766
International		15,333			12,595
Corporate and other		(147	)		(1	)
Subtotal	$	457,510		$	392,691
Transitional Schools		2,402			10,273
Total revenue	$	459,912		$	402,964
SEGMENT OPERATING INCOME (LOSS):
University	$	40,936		$	27,341
Culinary Arts		7,373			(10,426	)
Health Education		12,863			3,142
Art & Design		7,751			3,835
International		(4,498	)		(5,244	)
Corporate and other		(24,764	)		(16,906	)
Subtotal	$	39,661		$	1,742
Transitional Schools		(7,387	)		(7,978	)
Total operating income	$	32,274		$	(6,236	)
SEGMENT OPERATING INCOME (LOSS) PERCENTAGE:
University		19.8	%		15.8	%
Culinary Arts		8.0	%		-12.1	%
Health Education		16.5	%		5.3	%
Art & Design		11.8	%		6.2	%
International		-29.3	%		-41.6	%
Transitional Schools		NM			NM

CAREER EDUCATION CORPORATION

SELECTED SEGMENT INFORMATION

(Dollars in thousands)

	For the Nine Months Ended September 30,
	2009			2008
REVENUE:
University	$	594,895		$	525,365
Culinary Arts		241,178			251,026
Health Education		219,480			177,669
Art & Design		193,758			196,214
International		76,119			71,872
Corporate and other		(344	)		9
Subtotal	$	1,325,086		$	1,222,155
Transitional Schools		12,555			43,843
Total revenue	$	1,337,641		$	1,265,998
SEGMENT OPERATING INCOME (LOSS):
University	$	121,864		$	79,806
Culinary Arts		5,296			(5,320	)
Health Education		39,160			11,591
Art & Design		21,093			19,005
International		9,951			10,750
Corporate and other		(66,535	)		(50,875	)
Subtotal	$	130,829		$	64,957
Transitional Schools		(44,511	)		(27,881	)
Total operating income	$	86,318		$	37,076
SEGMENT OPERATING INCOME (LOSS) PERCENTAGE:
University		20.5	%		15.2	%
Culinary Arts		2.2	%		-2.1	%
Health Education		17.8	%		6.5	%
Art & Design		10.9	%		9.7	%
International		13.1	%		15.0	%
Transitional Schools		NM			NM

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In thousands)

	September 30 2009			December 31, 2008
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	248,064		$	244,726
Investments		225,733			263,953
Total cash and cash equivalents and investments		473,797			508,679
Receivables:
Students, net of allowance for doubtful accounts of $43,284 and $35,068 as of September 30, 2009 and December 31, 2008, respectively		62,084			58,930
Other, net		8,782			9,184
Prepaid expenses		46,902			46,140
Inventories		9,935			12,332
Deferred income tax assets		17,344			17,344
Other current assets		5,965			9,170
Assets of discontinued operations		7,241			7,973
Total current assets		632,050			669,752
NON-CURRENT ASSETS:
Property and equipment, net		299,783			304,722
Goodwill		378,374			376,072
Intangible assets, net		184,151			39,904
Deferred income tax assets		9,268			9,434
Other assets, net		18,262			17,439
TOTAL ASSETS	$	1,521,888		$	1,417,323
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt and capital lease obligations	$	849		$	354
Accounts payable		51,393			28,330
Accrued expenses:
Payroll and related benefits		83,967			63,181
Advertising and production costs		27,840			21,504
Income taxes		12,031			29,224
Royalty payments		20,738			1,476
Other		48,328			47,750
Deferred tuition revenue		206,804			153,595
Liabilities of discontinued operations		13,076			9,884
Total current liabilities		465,026			355,298
NON-CURRENT LIABILITIES:
Long-term debt and capital lease obligations, net of current maturities		3,110			1,889
Deferred rent obligations		97,026			97,641
Royalty payments		29,791			—
Other liabilities, net		16,461			13,983
Total non-current liabilities		146,388			113,513
SHARE-BASED AWARDS SUBJECT TO REDEMPTION		1,524			860
STOCKHOLDERS’ EQUITY:
Preferred stock		—			—
Common stock		954			933
Additional paid-in capital		240,753			222,523
Accumulated other comprehensive income		11,762			5,774
Retained earnings		857,375			807,500
Cost of shares in treasury		(201,894	)		(89,078	)
Total stockholders’ equity		908,950			947,652
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,521,888		$	1,417,323

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts and percentages)

	For the Three Months Ended September 30,
	2009			% of Revenue		2008			% of Revenue
REVENUE:
Tuition and registration fees	$	436,530		94.9	%	$	383,337		95.1	%
Other		23,382		5.1	%		19,627		4.9	%
Total revenue		459,912					402,964
OPERATING EXPENSES:
Educational services and facilities		154,842		33.7	%		166,794		41.4	%
General and administrative		254,018		55.2	%		216,949		53.8	%
Depreciation and amortization		16,278		3.5	%		18,614		4.6	%
Goodwill and asset impairment		2,500		0.5	%		6,843		1.7	%
Total operating expenses		427,638		93.0	%		409,200		101.5	%
Operating income (loss)		32,274		7.0	%		(6,236	)	-1.5	%
OTHER INCOME (EXPENSE):
Interest income		326		0.1	%		2,876		0.7	%
Interest expense		(10	)	0.0	%		(211	)	-0.1	%
Share of affiliate earnings		—		0.0	%		—		0.0	%
Miscellaneous income (expense)		62		0.0	%		(221	)	-0.1	%
Total other income		378		0.1	%		2,444		0.6	%
Pretax income (loss)		32,652		7.1	%		(3,792	)	-0.9	%
Provision (benefit) for income taxes		9,681		2.1	%		(5,341	)	-1.3	%
Income from continuing operations		22,971		5.0	%		1,549		0.4	%
Loss from discontinued operations, net of tax		(2,179	)			$	(1,696	)
NET INCOME (LOSS)	$	20,792				$	(147	)
NET INCOME (LOSS) PER SHARE - DILUTED
Income from continuing operations	$	0.27				$	0.02
Loss from discontinued operations		(0.02	)				(0.02	)
Net income	$	0.25				$	(0.00	)
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING		83,669					89,675

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts and percentages)

	For the Nine Months Ended September 30,
	2009			% of Revenue		2008			% of Revenue
REVENUE:
Tuition and registration fees	$	1,279,919		95.7	%	$	1,213,051		95.8	%
Other		57,722		4.3	%		52,947		4.2	%
Total revenue		1,337,641					1,265,998
OPERATING EXPENSES:
Educational services and facilities		485,624		36.3	%		488,924		38.6	%
General and administrative		713,375		53.3	%		673,708		53.2	%
Depreciation and amortization		49,824		3.7	%		57,365		4.5	%
Goodwill and asset impairment		2,500		0.2	%		8,925		0.7	%
Total operating expenses		1,251,323		93.5	%		1,228,922		97.1	%
Operating income		86,318		6.5	%		37,076		2.9	%
OTHER INCOME (EXPENSE):
Interest income		1,968		0.1	%		9,326		0.7	%
Interest expense		(32	)	0.0	%		(703	)	-0.1	%
Share of affiliate earnings		—		0.0	%		4,665		0.4	%
Miscellaneous expense		(925	)	-0.1	%		(498	)	0.0	%
Total other income		1,011		0.1	%		12,790		1.0	%
Pretax income		87,329		6.5	%		49,866		3.9	%
Provision for income taxes		29,479		2.2	%		12,651		1.0	%
Income from continuing operations		57,850		4.3	%		37,215		2.9	%
Loss from discontinued operations, net of tax		(7,311	)				(8,287	)
NET INCOME	$	50,539				$	28,928
NET INCOME (LOSS) PER SHARE - DILUTED
Income from continuing operations	$	0.66				$	0.41
Loss from discontinued operations		(0.08	)				(0.09	)
Net income	$	0.58				$	0.32
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING		87,071					90,144

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	For the Nine Months Ending September 30,
	2009			2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	50,539		$	28,928
Adjustments to reconcile net income to net cash provided by operating activities:
Goodwill and asset impairment		2,500			13,600
Depreciation and amortization expense		50,038			60,070
Bad debt expense		38,927			33,350
Compensation expense related to share-based awards		12,313			10,017
Gain on sale of business		—			(1,555	)
Loss on disposition of property and equipment		1,196			573
Share of affiliate earnings, net of cash received		—			939
Deferred income taxes		—			(1,736	)
Changes in operating assets and liabilities		61,883			14,758
Net cash provided by operating activities		217,396			158,944
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale investments		(464,163	)		(470,324	)
Sales of available-for-sale investments		502,383			352,896
Purchases of property and equipment		(50,329	)		(39,874	)
Acquisition of the rights to the Le Cordon Bleu brand		(25,000	)		—
Other		(370	)		944
Net cash used in investing activities		(37,479	)		(156,358	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of treasury stock		(181,126	)		(14,055	)
Issuance of common stock		2,166			3,089
Tax benefit associated with stock option exercises		194			433
Payments on revolving loans		—			(1,492	)
Borrowings (payments) of capital lease obligations and other long-term debt		1,214			(479	)
Net cash used in financing activities		(177,552	)		(12,504	)
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS:		888			(2,815	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		3,253			(12,733	)
Add: Cash balance of discontinued operations, beginning of the year		132			15,922
Less: Cash balance of discontinued operations, end of the year		47			739
CASH AND CASH EQUIVALENTS, beginning of the year		244,726			221,783
CASH AND CASH EQUIVALENTS, end of the year	$	248,064		$	224,233

CAREER EDUCATION CORPORATION

SELECTED UNIVERSITY SEGMENT INFORMATION

(Dollars in thousands)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2009			2008			2009			2008
UNIVERSITY REVENUE:
AIU	$	107,182		$	94,554		$	309,276		$	287,262
Online		90,507			77,767			256,427			229,344
On-ground		16,675			16,787			52,849			57,918
CTU		92,849			71,468			263,100			214,832
Online		77,004			58,925			217,327			175,584
On-ground		15,845			12,543			45,773			39,248
Briarcliffe		6,779			6,834			22,519			23,271
Total University	$	206,810		$	172,856		$	594,895		$	525,365
UNIVERSITY SEGMENT OPERATING INCOME (LOSS):
AIU	$	23,658		$	16,165		$	69,241		$	40,335
Online		28,628			21,549			80,504			52,056
On-ground		(4,970	)		(5,384	)		(11,263	)		(11,721	)
CTU	$	17,076		$	11,640		$	53,740		$	40,134
Online		19,773			12,665			58,421			41,075
On-ground		(2,697	)		(1,025	)		(4,681	)		(941	)
Briarcliffe		202			(464	)		(1,117	)		(663	)
Total University	$	40,936		$	27,341		$	121,864		$	79,806
UNIVERSITY SEGMENT OPERATING INCOME (LOSS) PERCENTAGE:
AIU		22.1	%		17.1	%		22.4	%		14.0	%
Online		31.6	%		27.7	%		31.4	%		22.7	%
On-ground		-29.8	%		-32.1	%		-21.3	%		-20.2	%
CTU		18.4	%		16.3	%		20.4	%		18.7	%
Online		25.7	%		21.5	%		26.9	%		23.4	%
On-ground		-17.0	%		-8.2	%		-10.2	%		-2.4	%
Briarcliffe		3.0	%		-6.8	%		-5.0	%		-2.8	%
Total University		19.8	%		15.8	%		20.5	%		15.2	%
	Student Population as of October 31,
	2009			2008
AIU		22,700			19,900
Online		18,600			16,100
On-ground		4,100			3,800
CTU		29,300			23,100
Online		23,700			18,300
On-ground		5,600			4,800
Briarcliffe		1,700			1,800
Total University		53,700			44,800
	Student Starts for the three months ended September 30,
	2009			2008
AIU		6,530			6,130
Online		5,460			5,200
On-ground		1,070			930
CTU		8,760			7,300
Online		7,630			6,280
On-ground		1,130			1,020
Briarcliffe		720			700
University		16,010			14,130

Career Education Corporation

Reconciliation of GAAP to Non-GAAP Items (1)

(dollars in millions)

	For the Three Months Ended September 30,
	2009						2008
	Operating Income			Earnings per Diluted Share			Operating Income			Earnings per Diluted Share
Reported	$	32.3		$	0.25		$	(6.2	)	$	(0.00	)
Reconciling Items:
Performance Based Compensation Related to Plan Outperformance (2)		18.8			0.14			—			—
Transitional Schools (3)		7.4			0.06			8.0			0.06
Asset Impairment		2.5			0.02			6.8			0.05
Lease Termination Charges		—			—			9.7			0.07
Adjusted to Exclude Significant Items and Transitional Schools	$	61.0		$	0.47		$	18.3		$	0.18
Diluted Weighted Average Shares Outstanding					83,669						89,675
	For the Nine Months Ended September 30,
	2009						2008
	Operating Income			Earnings per Diluted Share			Operating Income			Earnings per Diluted Share
Reported	$	86.3		$	0.58		$	37.1		$	0.32
Reconciling Items:
Transitional Schools (3)		44.5			0.33			27.9			0.20
Performance Based Compensation Related to Plan Outperformance (2)		25.3			0.19			—			—
Asset Impairment		2.5			0.02			6.8			0.05
Severance and Stay		1.5			0.01			4.3			0.03
Lease Termination Charges		—			—			9.7			0.07
Gain from Termination of Affiliate Relationship (4)		—			—			—			(0.03	)
Adjusted to Exclude Significant Items and Transitional Schools	$	160.1		$	1.13		$	85.8		$	0.64
Diluted Weighted Average Shares Outstanding					87,071						90,144
	For the Nine Months Ended September 30,
	2009			2008
Net Cash Flows from Operating Activities	$	217.4		$	158.9
Adjust for:
Capital expenditures, net		(50.3	)		(39.9	)
Free Cash Flows	$	167.1		$	119.0

(1) The Company has included some non-GAAP financial measures in this presentation to discuss the Company's financial results. As a general matter, the Company uses these non-GAAP measures in addition to and in conjunction with results presented in accordance with GAAP. Among other things, the Company may use such non-GAAP financial measures in addition to and in conjunction with corresponding GAAP measures, to help analyze the performance of its core business, in connection with the preparation of annual budgets, and in measuring performance for some forms of compensation. In addition, the Company believes that non-GAAP financial information is used by analysts and others in the investment community to analyze the Company's historical results and in providing estimates of future performance and that failure to report these non-GAAP measures could result in confusion among analysts and others and a misplaced perception that the Company's results have underperformed or exceeded expectations.

These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the Company's results of operations and the factors and trends affecting the Company's business. However, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

(2) Performance Based Compensation Related to Plan Outperformance by segment as follows:

	For the Three Months Ended September 30, 2009	For the Nine Months Ended September 30, 2009
Corporate	7.3	9.7
University	4.0	5.3
Health	3.6	5.0
Culinary	2.0	2.7
Art & Design	1.9	2.6
TOTAL	18.8	25.3

(3) Reported within the Transitional Schools operating loss for the nine-months ended September 30, 2009 was $22.5 million of lease exit charges. Reported within the Transitional Schools operating loss for the nine months ended September 30, 2008 was $6.9 million of severance and stay bonus expense, $2.2 million of asset impairment charges associated with AIU - LA, and Lease Exit Costs for $1.2 million.

(4) Gain from Termination of Affiliate Relationship is recorded within other income (expense) on the unaudited consolidated statement of operations.