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

Exhibit 99.1

CAREER EDUCATION CORPORATION REPORTS

RESULTS FOR FIRST QUARTER 2012

Schaumburg, Ill. (May 10, 2012) – Career Education Corporation (NASDAQ: CECO) today reported total revenue of $434.1 million, and net income of $52.1 million, or $0.78 per diluted share, for the first quarter of 2012 compared to total revenue of $531.7 million and net income of $73.0 million, or $0.95 per diluted share, for the first quarter of 2011.

“I am proud of the progress we made in the first quarter. In addition, the recent decision by the Accrediting Council for Independent Colleges and Schools to remove our institutions from ‘show cause’ is another important step forward. It enables us to advance key elements of our long range strategic plan,” said Steven H. Lesnik, Chairman, President and CEO of Career Education Corporation.

CONSOLIDATED RESULTS

Quarter Ended March 31, 2012

• Total revenue was $434.1 million for the first quarter of 2012, an 18.3 percent decrease from $531.7 million for the first quarter of 2011.

• Operating income was $46.6 million for the first quarter of 2012, versus operating income of $108.9 million for the first quarter of 2011. The operating margin was 10.7 percent for the first quarter of 2012, as compared to an operating margin of 20.5 percent for the first quarter of 2011.

• Income from continuing operations for the quarter ended March 31, 2012 was $46.4 million, or $0.69 per diluted share, compared to $70.6 million, or $0.92 per diluted share, for the quarter ended March 31, 2011. The effective tax rate was 0.9 percent and 36.3 percent for the quarters ended March 31, 2012 and 2011, respectively. The effective tax rate for the first quarter of 2012 reflects the higher relative level of operating income from non-U.S. institutions as part of anticipated annual consolidated results of operations.

• Operating income for the first quarter of 2012 included a $19.0 million ($0.18 per diluted share) insurance recovery related to the settlement of claims under certain insurance policies. Operating income for the first quarter of 2011 included a $7.0 million ($0.06 per diluted share) insurance recovery related to previously settled legal matters.

CONSOLIDATED CASH FLOWS AND FINANCIAL POSITION

Cash Flows

• Net cash flows provided by operating activities totaled $17.4 million for the quarter ended March 31, 2012, compared to $59.7 million for the quarter ended March 31, 2011.

• Capital expenditures decreased to $12.3 million during the quarter ended March 31, 2012, from $23.8 million during the quarter ended March 31, 2011. Capital expenditures represented 2.8 percent and 4.4 percent of total revenue during the quarters ended March 31, 2012 and 2011, respectively.

Financial Position

• As of March 31, 2012 and December 31, 2011, cash and cash equivalents and short-term investments totaled $389.9 million and $441.2 million, respectively.

CEC ANNOUNCES 1Q12 RESULTS …PG 2

Stock Repurchase Program

During the quarter ended March 31, 2012, the Company repurchased 6.1 million shares of its common stock for approximately $56.4 million at an average price of $9.29 per share.

As of March 31, 2012, approximately $183.3 million was available under the Company’s authorized stock repurchase program to repurchase outstanding shares of its 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 various factors, including market conditions and corporate and regulatory requirements.

STUDENT POPULATION AND NEW STUDENT STARTS

Student Population

Total student population by reportable segment as of March 31, 2012 and 2011 was as follows:

	As of March 31,				% Change 2012 vs. 2011
	2012		2011
Student Population
CTU		24,500		29,100	-16%
AIU		18,900		22,500	-16%
Health Education		22,900		31,300	-27%
Culinary Arts		12,600		13,500	-7%
Art & Design		9,000		11,900	-24%
International		8,000		8,900	-10%
Total Student Population		95,900		117,200	-18%

New Student Starts

New student starts by reportable segment for the quarters ended March 31, 2012 and 2011 were as follows:

	For the Quarters Ended March 31,				% Change 2012 vs. 2011
	2012		2011
New Student Starts
CTU(1)		5,820		7,440	-22%
AIU(1)		6,640		8,660	-23%
Health Education		5,490		9,140	-40%
Culinary Arts		3,160		3,560	-11%
Art & Design		1,240		2,240	-45%
International		740		790	-6%
Total New Student Starts		23,090		31,830	-27%

(1) In 2011, CTU and AIU implemented the Student Orientation and Academic Readiness ("SOAR") program which identifies students who may not be prepared for the rigor of college studies. A student is not included as a new student start until successful completion of SOAR. New student start data will be comparable in the third quarter 2012.

CEC ANNOUNCES 1Q12 RESULTS …PG 3

CONFERENCE CALL INFORMATION

Career Education Corporation will host a conference call on Friday, May 11, 2012 at 10:00 a.m. Eastern time. Interested parties can access the live webcast of the conference call at www.careered.com in the Investor Relations section of the website. Participants can also listen to the conference call by dialing 800-580-9478 (domestic) or 630-691-2769 (international) and citing code 32370546. 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. A replay of the call will also be available for seven days by calling 888-843-7419 (domestic) or 630-652-3042 (international) and citing code 32370546.

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 approximately 95,000 students across the world in a variety of career-oriented disciplines through online, on-ground and hybrid learning program offerings. The more than 90 campuses that serve these students are located throughout the United States and in France, the United Kingdom and Monaco, and offer doctoral, master’s, bachelor’s and associate degrees and diploma and certificate programs.

CEC is an industry leader whose institutions are recognized globally. Those institutions include, among others, American InterContinental University (“AIU”); Brooks Institute; Colorado Technical University (“CTU”); Harrington College of Design; INSEEC Group (“INSEEC”) Schools; International University of Monaco (“IUM”); International Academy of Design & Technology (“IADT”); Le Cordon Bleu North America (“LCB”); and Sanford-Brown Institutes and Colleges. Through its schools, CEC is committed to providing high-quality education, enabling students to graduate and pursue rewarding career opportunities.

For more information, see CEC’s website at www.careered.com. The website includes a detailed listing of individual campus locations and web links to CEC’s 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 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: changes in enrollment, student mix and average registered credits taken by students; our ability to implement effective cost reduction strategies; 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 “90-10 Rule” and gainful employment regulations), as well as regional accreditation standards and state regulatory requirements; our ability to obtain accrediting agency approvals for existing or new programs and to successfully defend litigation and other claims brought against us; rulemaking by the U.S. Department of Education and increased focus by the U.S. Congress and governmental agencies on for-profit education institutions; and changes in the overall U.S. or global 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 fiscal year ended December 31, 2011 and its subsequent filings with the Securities and Exchange Commission.

CEC ANNOUNCES 1Q12 RESULTS …PG 4

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CONTACT

Investors: John Springer

Vice President, Strategy and Investor Relations

(847) 585-3899

Media: Mark Spencer

Director, Corporate Communications

(847) 585-3802

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

	March 31, 2012			December 31, 2011
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	229,388		$	280,592
Short-term investments		160,469			160,607
Total cash and cash equivalents and short-term investments		389,857			441,199
Student receivables, net		61,989			60,573
Receivables, other, net		19,689			2,914
Prepaid expenses		69,199			62,399
Inventories		9,830			11,356
Deferred income tax assets, net		10,940			10,940
Other current assets		16,205			17,769
Assets of discontinued operations		3,267			3,328
Total current assets		580,976			610,478
NON-CURRENT ASSETS:
Property and equipment, net		341,815			349,788
Goodwill		213,862			212,626
Intangible assets, net		76,671			77,186
Student receivables, net		8,677			9,297
Deferred income tax assets, net		9,524			9,522
Other assets, net		30,694			30,122
Assets of discontinued operations		17,041			17,101
TOTAL ASSETS	$	1,279,260		$	1,316,120
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current maturities of capital lease obligations	$	414		$	844
Accounts payable		34,174			48,408
Accrued expenses:
Payroll and related benefits		40,883			41,853
Advertising and production costs		27,441			17,717
Earnout payments		3,887			5,735
Other		55,742			61,536
Deferred tuition revenue		122,496			144,947
Liabilities of discontinued operations		8,250			8,403
Total current liabilities		293,287			329,443
NON-CURRENT LIABILITIES:
Capital lease obligations, net of current maturities		107			207
Deferred rent obligations		101,139			102,079
Other liabilities		39,947			40,365
Liabilities of discontinued operations		35,597			37,935
Total non-current liabilities		176,790			180,586
SHARE-BASED AWARDS SUBJECT TO REDEMPTION		105			110
STOCKHOLDERS’ EQUITY:
Preferred stock		—			—
Common stock		818			820
Additional paid-in capital		594,223			590,965
Accumulated other comprehensive income (loss)		292			(5,136	)
Retained earnings		427,688			375,607
Cost of shares in treasury		(213,943	)		(156,275	)
Total stockholders’ equity		809,078			805,981
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,279,260		$	1,316,120

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In thousands, except per share amounts and percentages)

	For the Quarters Ended March 31,
	2012			% of Total Revenue		2011(1)		% of Total Revenue
REVENUE:
Tuition and registration fees	$	423,618			97.6%	$	509,454		95.8%
Other		10,519			2.4%		22,246		4.2%
Total revenue		434,137					531,700
OPERATING EXPENSES:
Educational services and facilities		152,685			35.2%		165,631		31.2%
General and administrative		214,632			49.4%		237,061		44.6%
Depreciation and amortization		20,106			4.6%		20,133		3.8%
Goodwill and asset impairment		83			0.0%		—		0.0%
Total operating expenses		387,506			89.3%		422,825		79.5%
Operating income		46,631			10.7%		108,875		20.5%
OTHER INCOME (EXPENSE):
Interest income		270			0.1%		223		0.0%
Interest expense		(37	)		0.0%		(37)		0.0%
Miscellaneous income		—			0.0%		1,816		0.3%
Total other income		233			0.1%		2,002		0.4%
PRETAX INCOME		46,864			10.8%		110,877		20.9%
Provision for income taxes		431			0.1%		40,282		7.6%
INCOME FROM CONTINUING OPERATIONS		46,433			10.7%		70,595		13.3%
Income from discontinued operations, net of tax		5,643			1.3%		2,440		0.5%
NET INCOME		52,076			12.0%		73,035		13.7%
OTHER COMPREHENSIVE INCOME, net of tax:
Foreign currency translation adjustments		5,440			1.3%		8,243		1.6%
Unrealized (losses) gains on investments		(12	)		0.0%		85		0.0%
Total other comprehensive income		5,428			1.3%		8,328		1.6%
COMPREHENSIVE INCOME	$	57,504			13.2%	$	81,363		15.3%
NET INCOME PER SHARE—DILUTED:
Income from continuing operations	$	0.69				$	0.92
Income from discontinued operations		0.09					0.03
Net income per share	$	0.78				$	0.95
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING		66,960					76,753

(1) In November 2011, the Company sold its ownership interest in Istituto Marangoni. As a result, all prior period results have been recast to include Istituto Marangoni as a component of discontinued operations.

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	For the Quarters Ended March 31,
	2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	52,076		$	73,035
Adjustments to reconcile net income to net cash provided by operating activities:
Goodwill and asset impairment		83			—
Depreciation and amortization expense		20,106			20,366
Bad debt expense		9,390			17,151
Compensation expense related to share-based awards		2,780			4,200
Loss (gain) on disposition of property and equipment		32			(1,801	)
Changes in operating assets and liabilities		(67,115	)		(53,295	)
Net cash provided by operating activities		17,352			59,656
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale investments		(40,300	)		(60,934	)
Sales of available-for-sale investments		40,438			60,774
Purchases of property and equipment		(12,303	)		(23,792	)
Earnout payments		(3,555	)		(4,235	)
Proceeds on the sale of assets		—			6,259
Other		(12	)		85
Net cash used in investing activities		(15,732	)		(21,843	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of treasury stock		(56,431	)		(89,915	)
Issuance of common stock		477			1,292
Tax benefit associated with stock option exercises		—			159
Payments of capital lease obligations		(547	)		(641	)
Net cash used in financing activities		(56,501	)		(89,105	)
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS:		3,677			1,071
NET DECREASE IN CASH AND CASH EQUIVALENTS		(51,204	)		(50,221	)
DISCONTINUED OPERATIONS CASH ACTIVITY INCLUDED ABOVE:
Add: Cash balance of discontinued operations, beginning of the period		—			28,838
Less: Cash balance of discontinued operations, end of the period		—			25,136
CASH AND CASH EQUIVALENTS, beginning of the period		280,592			260,644
CASH AND CASH EQUIVALENTS, end of the period	$	229,388		$	214,125

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED SELECTED SEGMENT INFORMATION

(In thousands, except percentages)

	For the Quarters Ended March 31,
	2012			2011(1)
REVENUE:
CTU	$	99,915		$	118,065
AIU		88,940			104,274
Health Education		91,225			116,309
Culinary Arts		63,546			91,773
Art & Design		47,668			64,600
International		42,829			36,815
Corporate and Other		14			(136	)
Total	$	434,137		$	531,700
OPERATING INCOME (LOSS):
CTU	$	19,045		$	36,288
AIU		14,661			27,617
Health Education		(11,844	)		11,630
Culinary Arts		(8	)		13,767
Art & Design		(889	)		10,395
International		13,125			9,755
Corporate and Other(2)		12,541			(577	)
Total	$	46,631		$	108,875
OPERATING MARGIN (LOSS):
CTU		19.1%			30.7%
AIU		16.5%			26.5%
Health Education		-13.0%			10.0%
Culinary Arts		0.0%			15.0%
Art & Design		-1.9%			16.1%
International		30.6%			26.5%
Total		10.7%			20.5%

(1) In November 2011, the Company sold its ownership interest in Istituto Marangoni. As a result, all prior period results have been recast to include Istituto Marangoni as a component of discontinued operations.

(2) The Company recorded a $19.0 million insurance recovery in the first quarter of 2012 related to the settlement of claims under certain insurance policies and recorded a $7.0 million insurance recovery related to previously settled legal matters in the first quarter of 2011.