EXHIBIT 99.1
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Career Education Corporation Reports Record First Quarter Revenues, Net Income,
and Enrollments
Quarterly Net Revenues Up 55%; Quarterly Starts Up 36%; April Student Population
Up 30%
HOFFMAN ESTATES, Ill.--(BUSINESS WIRE)--April 25, 2000-- Career Education
Corporation (NASDAQ:CECO - news) today reported record net revenues, net income
and enrollment for the first quarter ended March 31, 2000.
First quarter 2000 net revenues were $70.3 million, up 55 percent from $45.4
million for the same period last year. First quarter 2000 net income excluding
the cumulative effect of change in accounting principle was $3.5 million, or
$0.42 per diluted share, nearly 126 percent higher than last year's net income
of $1.5 million, or $0.20 per diluted share. After including the after-tax
cumulative effect of change in accounting principle of $0.8 million, first
quarter net income was $2.7 million, or $0.33 per diluted share, up 75 percent
over last year's net income.
The cumulative effect of the change in accounting principle is pursuant to Staff
Accounting Bulletin (SAB) No. 101, Revenue Recognition, which requires one-time
fees such as application and registration fees to be recognized over the student
benefit period rather than as revenue upon receipt. The adoption of this
pronouncement has no cash impact and will have nominal impact to the future
earnings.
First quarter 2000 student starts rose 36 percent to approximately 5,580
students, up from 4,110 for the same period last year. Total student population
on April 24, 2000 was approximately 22,900, up 30 percent compared to 17,640 on
April 30, 1999. On a same school basis, student population was up 19 percent.
First quarter 2000 earnings before interest, taxes, depreciation and
amortization (EBITDA) was $10.8 million, up 80 percent from $6.0 million for the
same period last year. EBITDA has been included as the Company believes it
provides a more complete analysis of the results of its operations.
"These first quarter results, following our record performance in 1999,
demonstrate the soundness of CEC's growth strategy, the strength of our
marketing programs and the quality of education our schools provide," said John
M. Larson, chairman, president and chief executive officer. "We exceeded
performance goals in every area of our operation."
"Our marketing programs produced record numbers of high quality leads,
resulting in record enrollments. Our schools continue to expand their curricular
offerings to meet the educational and training needs of the 21st century job
market. CEC's retention rate is among the best in our industry. These factors
were key to our record first quarter performance," Mr. Larson said.
He noted that CEC also has completed two acquisitions thus far in 2000: The
Cooking and Hospitality Institute of Chicago and California Culinary Academy,
Inc. "These acquisitions have made Career Education Corporation - with eight
culinary arts schools in the United States - one of the world's largest
providers of culinary arts instruction," Mr. Larson said.
Career Education Corporation is one of the largest providers of private, for-
profit postsecondary education in North America. The Company currently operates
28 campuses in 15 states and two Canadian provinces. CEC schools enjoy long
operating histories and offer a wide variety of bachelor's degree, associate
degree and diploma programs in career-oriented disciplines within the Company's
core curricula of visual communication and design technologies, information
technology, business studies and culinary arts.
The forward-looking statements contained in this release are based upon various
assumptions, and certain risks and uncertainties could cause actual results to
differ materially from those stated. Factors that could cause such differences
include those matters disclosed in the Company's filings with the Securities and
Exchange Commission (SEC). Career Education Corporation assumes no obligation to
update its forward-looking statements.
Career Education Corporation
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended March 31, 2000 and 1999 (Amounts in thousands, except EPS)
2000 1999
ACTUAL ACTUAL
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Revenue:
Tuition and registration fees, net $ 64,680 $ 42,121
Other, net 5,635 3,314
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Net school revenue 70,315 45,435
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Operating Expenses:
Educational services and facilities 27,739 18,521
General & administration 31,798 20,928
Depreciation & amortization 4,562 3,074
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Total operating expenses 64,099 42,523
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Income from operations 6,216 2,912
Interest expense, net (125) (212)
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Income before provision for
income taxes 6,091 2,700
Provision for income taxes 2,619 1,161
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Net income before cumulative
effect of change in
accounting principle 3,472 1,539
Cumulative effect of change accounting
principle, net of taxes of $587 (778) -
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Net Income $ 2,694 $ 1,539
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Diluted net income per share attributable to common
stockholders before cumulative effect of
change in accounting principle $0.42 $0.20
Diluted net income per share
attributable to common stockholders $0.33 $0.20
Diluted weighted average number
of shares outstanding 8,197 7,552
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SELECTED BALANCE SHEET DATA
As of March 31, 2000 and 1999
(Amounts in thousands)
2000 1999
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Cash $ 42,343 $ 31,272
Receivables, net 15,645 10,486
Current assets 70,128 48,953
Total assets 217,513 151,675
Current liabilities 46,065 28,383
Long-term liabilities 54,523 20,568
Stockholders' investment 116,925 102,724
Contact:
Career Education Corp.
Patrick K. Pesch, 847/585-3815
www.careered.com
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