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

Exhibit 99.1

CAREER EDUCATION CORPORATION REPORTS

RESULTS FOR FIRST QUARTER 2013

Schaumburg, Ill. (May 6, 2013) – Career Education Corporation (NASDAQ: CECO) today reported total revenue of $340.5 million, and a net loss of $15.2 million, or -$0.23 per diluted share, for the first quarter of 2013 compared to total revenue of $431.4 million and net income of $52.1 million, or $0.78 per diluted share, for the first quarter of 2012.

“Since joining Career Education a month ago, I believe even more strongly that this organization has the right tools to achieve high levels of academic and financial success,” said Scott W. Steffey, president and chief executive officer. “We are taking the necessary steps to right-size and re-engineer our organization to become more efficient and effective, better reflecting the support structure needed at our current enrollment levels.”

“While we implement these changes, we must continue to retool and expand our academic programs for our domestic schools, foster continued educational innovation like our new adaptive learning technology, and improve our efforts and success in attracting, enrolling and retaining students. As we right-size and re-engineer the domestic schools we will also continue fostering growth in our highly successful International schools, and ensure that our Transitional Schools segment serves students with quality and integrity while teaching out those schools,” Steffey said. “We’re moving in the right direction and I look forward to leading this organization.”

CONSOLIDATED RESULTS

Quarter Ended March 31, 2013

• Total revenue was $340.5 million for the first quarter of 2013, a 21.1 percent decrease from $431.4 million for the first quarter of 2012.

• An operating loss of $18.1 million was reported for the first quarter of 2013 versus operating income of $47.9 million for the first quarter of 2012. The operating margin was -5.3 percent for the first quarter of 2013 versus 11.1 percent for the first quarter of 2012. 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.

• The loss from continuing operations for the first quarter of 2013 was $14.5 million, or -$0.22 per diluted share compared to the income from continuing operations of $41.7 million, or $0.62 per diluted share, for the first quarter of 2012.

• The net loss for the first quarter of 2013 included a $6.7 million ($0.10 per diluted share) loss related to the pending sale of the American InterContinental University campus in London, England which is reported in other (expense) income. The sale closed on April 1, 2013.

CEC ANNOUNCES 1Q13 RESULTS …PG 2

CONSOLIDATED CASH FLOWS AND FINANCIAL POSITION

Cash Flows

Net cash flows used in operating activities totaled $14.2 million for the quarter ended March 31, 2013, compared to net cash flows provided by operating activities of $17.4 million for the quarter ended March 31, 2012.

Capital expenditures decreased to $4.1 million for the quarter ended March 31, 2013, from $12.3 million for the quarter ended March 31, 2012. Capital expenditures represented 1.2 percent and 2.8 percent of total revenue of continuing and discontinued operations during the quarters ended March 31, 2013 and 2012, respectively.

Financial Position

As of March 31, 2013 and December 31, 2012, cash and cash equivalents and short-term investments totaled $299.2 million and $402.3 million, respectively. During the first quarter of 2013, the Company repaid the $80 million of outstanding borrowings under its Credit Agreement. Accordingly, restricted cash balances decreased to $11.4 million at March 31, 2013 from $97.9 million at December 31, 2012.

STUDENT POPULATION AND NEW STUDENT STARTS

Student Population

Total student population by reportable segment as of March 31, 2013 and 2012, was as follows:

	As of March 31,				% Change 2013  vs. 2012
	2013		2012
Student Population
CTU		21,500		23,500		-9%
AIU		15,500		18,900		-18%
Total University Schools		37,000		42,400		-13%
Health Education		9,500		13,600		-30%
Culinary Arts		8,600		12,500		-31%
Design & Technology		5,600		7,800		-28%
Total Career Schools		23,700		33,900		-30%
International(1)		10,000		8,000		25%
Subtotal		70,700		84,300		-16%
Transitional Schools		4,300		11,100		-61%
Total Student Population		75,000		95,400		-21%

(1) Student population as of March 31, 2013 includes approximately 900 students enrolled in the International schools acquired the second and fourth quarters of 2012. Excluding the impact of these acquisitions, student population increased 14%.

CEC ANNOUNCES 1Q13 RESULTS …PG 3

New Student Starts

New student starts by reportable segment for the quarters ended March 31, 2013 and 2012, were as follows:

	For the Quarter Ended March 31,				% Change 2013  vs. 2012
	2013		2012
New Student Starts
CTU(1)		4,520		5,670		-20%
AIU(1)		4,610		6,640		-31%
Total University Schools		9,130		12,310		-26%
Health Education		2,780		3,160		-12%
Culinary Arts		2,810		3,160		-11%
Design & Technology		980		1,080		-  9%
Total Career Schools		6,570		7,400		-11%
International(2)		1,080		740		46%
Subtotal		16,780		20,450		-18%
Transitional Schools(3)		70		2,630		NM
Total New Student Starts		16,850		23,080		-27%

(1) During 2012 and 2013, CTU and AIU had established certain programs to enable students to assess their readiness to commit to enrolling in college-level courses. Excluding the impact of these readiness programs, the change in new student starts for CTU and AIU is -10% and -22%, respectively.

(2) The first quarter of 2013 was favorably impacted when compared to the prior year quarter due to the timing of program offerings in the first quarter of 2013 versus the prior year. Excluding the impact of these items, the change in new student starts for International would have been 22%.

(3) Campuses within the Transitional Schools segment no longer enroll new students; students who re-enter after 365 days are reported as new student starts.

CONFERENCE CALL INFORMATION

Career Education Corporation will host a conference call on Tuesday, May 7, 2013 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 34607968. 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 34607968.

CEC ANNOUNCES 1Q13 RESULTS …PG 4

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 75,000 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 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: declines in enrollment; our ability to implement our strategic initiatives and 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 financial responsibility standards prescribed by the U.S. Department of Education), as well as national and regional accreditation standards and state regulatory requirements; our ability 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, 2012 and its subsequent filings with the Securities and Exchange Commission.

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CONTACT

Investors: Matthew Tschanz

Director, Corporate Finance

(847) 585-3899

Media: Mark Spencer

Director, Corporate Communications

(847) 585-3802

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In thousands)

	March 31, 2013(1)			December 31, 2012(1)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents, unrestricted	$	223,816		$	240,559
Restricted cash		11,408			97,878
Short-term investments		63,951			63,876
Total cash and cash equivalents and short-term investments		299,175			402,313
Student receivables, net		50,420			68,885
Receivables, other, net		4,413			3,845
Prepaid expenses		57,710			44,386
Inventories		7,500			8,514
Deferred income tax assets, net		7,125			7,092
Other current assets		6,845			4,422
Assets of discontinued operations		3,716			4,104
Total current assets		436,904			543,561
NON-CURRENT ASSETS:
Property and equipment, net		259,121			277,416
Goodwill		131,725			133,025
Intangible assets, net		61,127			61,670
Student receivables, net		6,652			6,832
Deferred income tax assets, net		48,128			47,900
Other assets, net		32,324			33,331
Assets of discontinued operations		18,643			18,968
TOTAL ASSETS	$	994,624		$	1,122,703
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term borrowings and current maturities of capital lease obligations	$	103		$	80,211
Accounts payable		42,601			38,419
Accrued expenses:
Payroll and related benefits		46,124			46,586
Advertising and production costs		20,634			20,963
Other		41,171			44,630
Deferred tuition revenue		83,718			112,018
Liabilities of discontinued operations		12,306			9,888
Total current liabilities		246,657			352,715
NON-CURRENT LIABILITIES:
Deferred rent obligations		93,260			95,146
Other liabilities		30,057			29,853
Liabilities of discontinued operations		28,178			33,199
Total non-current liabilities		151,495			158,198
STOCKHOLDERS’ EQUITY:
Preferred stock		—			—��
Common stock		818			816
Additional paid-in capital		598,903			596,826
Accumulated other comprehensive loss		(6,527	)		(4,785	)
Retained earnings		217,718			232,921
Cost of shares in treasury		(214,440	)		(213,988	)
Total stockholders’ equity		596,472			611,790
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	994,624		$	1,122,703

(1) During the first quarter of 2013 and the fourth quarter of 2012, the Company completed the teach-out of SBC Hazelwood and LCB Pittsburgh, respectively. As a result, all current and prior period results for these campuses are reflected as components of discontinued operations.

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In thousands, except per share amounts and percentages)

	For the Quarter Ended March 31, (1)
	2013			% of Total Revenue		2012			% of Total Revenue
REVENUE:
Tuition and registration fees	$	335,285			98.5%	$	420,885			97.6%
Other		5,198			1.5%		10,479			2.4%
Total revenue		340,483					431,364
OPERATING EXPENSES:
Educational services and facilities		132,883			39.0%		150,739			34.9%
General and administrative		206,419			60.6%		212,973			49.4%
Depreciation and amortization		19,125			5.6%		19,713			4.6%
Goodwill and asset impairment		157			0.0%		83			0.0%
Total operating expenses		358,584			105.3%		383,508			88.9%
Operating (loss) income		(18,101	)		-5.3%		47,856			11.1%
OTHER (EXPENSE) INCOME:
Interest income		255			0.1%		270			0.1%
Interest expense		(706	)		-0.2%		(37	)		0.0%
Loss on pending sale of business		(6,712	)		-2.0%		—			0.0%
Miscellaneous expense		(466	)		-0.1%		—			0.0%
Total other (expense) income		(7,629	)		-2.2%		233			0.1%
PRETAX (LOSS) INCOME		(25,730	)		-7.6%	��	48,089			11.1%
(Benefit from) provision for income taxes		(11,239	)		-3.3%		6,430			1.5%
(LOSS) INCOME FROM CONTINUING OPERATIONS		(14,491	)		-4.3%		41,659			9.7%
(Loss) income from discontinued operations, net of tax		(712	)		-0.2%		10,417			2.4%
NET (LOSS) INCOME		(15,203	)		-4.5%		52,076			12.1%
OTHER COMPREHENSIVE (LOSS) INCOME, net of tax:
Foreign currency translation adjustments		(1,743	)				5,440
Unrealized gains (losses) on investments		1					(12	)
Total other comprehensive (loss) income		(1,742	)				5,428
COMPREHENSIVE (LOSS) INCOME	$	(16,945	)			$	57,504
NET (LOSS) INCOME PER SHARE - DILUTED:
(Loss) income from continuing operations	$	(0.22	)			$	0.62
(Loss) income from discontinued operations		(0.01	)				0.16
Net (loss) income per share	$	(0.23	)			$	0.78
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING		66,428					66,960

(1) During the first quarter of 2013 and the fourth quarter of 2012, the Company completed the teach-out of SBC Hazelwood and LCB Pittsburgh, respectively. As a result, all current and prior period results for these campuses are reflected as components of discontinued operations.

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	For the Quarter Ended March 31,
	2013			2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$	(15,203	)	$	52,076
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Goodwill and asset impairment		157			83
Depreciation and amortization expense		19,295			20,106
Bad debt expense		6,702			9,390
Compensation expense related to share-based awards		1,775			2,780
Loss on pending sale of business		6,712			—
Loss on disposition of property and equipment		94			32
Changes in operating assets and liabilities		(33,729	)		(67,115	)
Net cash (used in) provided by operating activities		(14,197	)		17,352
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale investments		(13,540	)		(40,300	)
Sales of available-for-sale investments		13,465			40,438
Purchases of property and equipment		(4,077	)		(12,303	)
Payments of cash upon sale of business		(1,947	)		—
Other		(1	)		(12	)
Net cash used in investing activities		(6,100	)		(12,177	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of treasury stock		—			(56,431	)
Issuance of common stock		304			477
Payments of contingent consideration		—			(3,555	)
Payment on borrowings		(80,000	)		—
Change in restricted cash		86,470			—
Payments of capital lease obligations		(74	)		(547	)
Net cash provided by (used in) financing activities		6,700			(60,056	)
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS:		(3,194	)		3,677
NET DECREASE IN CASH AND CASH EQUIVALENTS		(16,791	)		(51,204	)
DISCONTINUED OPERATIONS CASH ACTIVITY INCLUDED ABOVE:
Add: Cash balance of discontinued operations, beginning of the period		63			—
Less: Cash balance of discontinued operations, end of the period		15			—
CASH AND CASH EQUIVALENTS, beginning of the period		240,559			280,592
CASH AND CASH EQUIVALENTS, end of the period	$	223,816		$	229,388

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED SELECTED SEGMENT INFORMATION

(In thousands, except percentages)

	For the Quarter Ended March 31,
	2013			2012(1)
REVENUE:
CTU	$	90,209		$	96,329
AIU		66,299			88,940
Total University Schools		156,508			185,269
Health Education		38,021			54,092
Culinary Arts(2)		45,938			62,838
Design & Technology		30,289			41,801
Total Career Schools		114,248			158,731
International		49,677			42,829
Corporate and Other		—			14
Subtotal		320,433			386,843
Transitional Schools(2)		20,050			44,521
Total	$	340,483		$	431,364
OPERATING (LOSS) INCOME:
CTU	$	15,912		$	19,079
AIU		3,146			14,661
Total University Schools		19,058			33,740
Health Education		(11,310	)		(1,672	)
Culinary Arts(2)		(12,137	)		1,266
Design & Technology		(7,156	)		334
Total Career Schools		(30,603	)		(72	)
International		13,480			13,125
Corporate and Other		(6,368	)		12,582
Subtotal		(4,433	)		59,375
Transitional Schools(2)		(13,668	)		(11,519	)
Total	$	(18,101	)	$	47,856
OPERATING (LOSS) MARGIN:
CTU		17.6%			19.8%
AIU		4.7%			16.5%
Total University Schools		12.2%			18.2%
Health Education		-29.7%			-3.1%
Culinary Arts		-26.4%			2.0%
Design & Technology		-23.6%			0.8%
Total Career Schools		-26.8%			0.0%
International		27.1%			30.6%
Corporate and Other		NM			NM
Subtotal		-1.4%			15.3%
Transitional Schools		-68.2%			-25.9%
Total		-5.3%			11.1%

(1) Prior period financial results have been recast to report the schools that are currently being taught out within the Transitional Schools segment.

(2) During the first quarter of 2013 and the fourth quarter of 2012, the Company completed the teach-out of SBC Hazelwood and LCB Pittsburgh, respectively. As a result, all current and prior period results for these campuses are reflected as components of discontinued operations.

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED SELECTED SEGMENT INFORMATION BY QUARTER - 2012

(In thousands)

	For the 2012 Quarters Ended(1)
	March 31			June 30			September 30			December 31			Full Year
REVENUE:
CTU	$	96,329		$	91,839		$	86,484		$	89,283		$	363,935
AIU		88,940			78,841			71,204			65,223			304,208
Total University Schools		185,269			170,680			157,688			154,506			668,143
Health Education		54,092			45,457			40,469			41,559			181,577
Culinary Arts(2)		62,838			57,895			54,415			49,694			224,842
Design & Technology		41,801			34,724			33,129			31,888			141,542
Total Career Schools		158,731			138,076			128,013			123,141			547,961
International		42,829			21,140			14,665			49,934			128,568
Corporate and Other		14			20			16			5			55
Subtotal		386,843			329,916			300,382			327,586			1,344,727
Transitional Schools(2)		44,521			37,561			31,574			26,922			140,578
Total	$	431,364		$	367,477		$	331,956		$	354,508		$	1,485,305
OPERATING (LOSS) INCOME:
CTU	$	19,079		$	12,181		$	10,324		$	13,344		$	54,928
AIU		14,661			6,878			1,084			(1,727	)		20,896
Total University Schools		33,740			19,059			11,408			11,617			75,824
Health Education		(1,672	)		(50,230	)		(12,758	)		(13,628	)		(78,288	)
Culinary Arts(2)		1,266			(3,121	)		(10,136	)		(21,863	)		(33,854	)
Design & Technology		334			(45,006	)		(6,240	)		(6,715	)		(57,627	)
Total Career Schools		(72	)		(98,357	)		(29,134	)		(42,206	)		(169,769	)
International		13,125			(2,406	)		(6,444	)		16,856			21,131
Corporate and Other		12,582			(5,373	)		(5,402	)		(9,425	)		(7,618	)
Subtotal		59,375			(87,077	)		(29,572	)		(23,158	)		(80,432	)
Transitional Schools(2)		(11,519	)		(19,158	)		(17,520	)		(53,251	)		(101,448	)
Total	$	47,856		$	(106,235	)	$	(47,092	)	$	(76,409	)	$	(181,880	)

(1) Prior period financial results have been recast to report the schools that are currently being taught out within the Transitional Schools segment.

(2) During the first quarter of 2013 and the fourth quarter of 2012, the Company completed the teach-out of SBC Hazelwood and LCB Pittsburgh, respectively. As a result, all current and prior period results for these campuses are reflected as components of discontinued operations.

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED SELECTED SEGMENT INFORMATION BY QUARTER - 2012

	As of the 2012 Quarters Ended(1)
	March 31		June 30		September 30		December 31
STUDENT POPULATION:
CTU		23,500		22,600		22,000		21,600
AIU		18,900		14,500		14,900		14,200
Total University Schools		42,400		37,100		36,900		35,800
Health Education		13,600		10,200		10,600		8,800
Culinary Arts(2)		12,500		12,000		11,200		8,500
Design & Technology		7,800		6,600		6,500		5,400
Total Career Schools		33,900		28,800		28,300		22,700
International		8,000		2,700		8,800		11,400
Subtotal		84,300		68,600		74,000		69,900
Transitional Schools(2)		11,100		8,700		7,500		6,100
Total		95,400		77,300		81,500		76,000
	For the 2012 Quarters Ended(1)
	March 31		June 30		September 30		December 31		Full Year
NEW STUDENT STARTS:
CTU		5,670		5,800		5,150		5,040		21,660
AIU		6,640		3,050		3,700		3,370		16,760
Total University Schools		12,310		8,850		8,850		8,410		38,420
Health Education		3,160		1,470		3,310		1,180		9,120
Culinary Arts(2)		3,160		2,410		3,920		2,810		12,300
Design & Technology		1,080		610		1,060		490		3,240
Total Career Schools		7,400		4,490		8,290		4,480		24,660
International		740		510		4,750		1,940		7,940
Subtotal		20,450		13,850		21,890		14,830		71,020
Transitional Schools(2)		2,630		1,150		1,720		840		6,340
Total		23,080		15,000		23,610		15,670		77,360

(1) Prior period financial results have been recast to report the schools that are currently being taught out within the Transitional Schools segment.

(2) During the first quarter of 2013 and the fourth quarter of 2012, the Company completed the teach-out of SBC Hazelwood and LCB Pittsburgh, respectively. As a result, all current and prior period results for these campuses are reflected as components of discontinued operations.