Market Overview

Career Education Corporation Announces First Quarter 2019 Results

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First quarter revenue increased 6.6% primarily driven by total
University enrollment growth of 8.2%

Career Education Corporation (NASDAQ:CECO) today reported operating and
financial results for the quarter ended March 31, 2019.

 

FIRST QUARTER 2019 RESULTS AS COMPARED TO THE PRIOR YEAR
QUARTER

     
Financial Results Revenue increased by 6.6 percent to $157.9 million as compared to
$148.1 million with both universities contributing to this growth
Operating income increased by 46.0 percent to $30.0 million as
compared to $20.5 million
Earnings per diluted share of $0.35 as compared to $0.25
Adjusted earnings per diluted share of $0.36 as compared to $0.28*
Ended the quarter with $239.9 million in cash, cash equivalents,
restricted cash and available-for-sale short-term investments
 
 
 
 
Key Metrics CTU's total student enrollments increased by 4.1 percent primarily
driven by new enrollment growth of 14.3 percent
AIU's new and total student enrollments increased 124.7 percent and
16.5 percent, respectively; impacting these quarterly increases was
the timing impact of the academic calendar redesign
Ongoing initiatives and incremental investments in student-serving
operations continue to positively impact enrollment trends
 

*See GAAP to non-GAAP reconciliation attached to this press release

"We are pleased to report solid first quarter results with key operating
metrics and trends showing year over year growth," said Todd Nelson,
President and Chief Executive Officer. "Ongoing initiatives and
technology investments are improving student outreach and engagement,
while creating a more efficient and effective enrollment process, which
should support future growth. Looking ahead, we remain committed to
delivering quality academic outcomes by leveraging our technology and
student serving functions while investing in responsible growth
initiatives that will create long term value for our shareholders."

REVENUE

For the quarter ended March 31, 2019, total revenue was $157.9 million
as compared to total revenue of $148.1 million for the prior year
quarter. Both universities contributed to this revenue growth primarily
driven by underlying enrollment trends.

    For The Quarter Ended March 31,
        Increase

Revenue ($ in thousands)

2019 2018 (Decrease)
CTU $ 97,057 $ 94,607   2.6 %
AIU   60,779   53,121 14.4 %
Total University Group 157,836 147,728 6.8 %
Corporate and Other (1)   17   337 -95.0 %
Total $ 157,853 $ 148,065 6.6 %
(1)   Corporate and other includes closed campuses which no longer meet
the criteria to be reported as a separate operating segment.
 

TOTAL AND NEW STUDENT ENROLLMENTS

For the quarter ended March 31, 2019, CTU's and AIU's total student
enrollments increased 4.1 percent and 16.5 percent, respectively,
primarily driven by new student enrollment growth of 14.3 percent and
124.7 percent, respectively, as compared to the prior year quarter.
Growth within both universities was driven by strong student interest
within the industry and ongoing investments in the admissions and
advising centers in Illinois and Arizona. AIU's new enrollments increase
was also positively impacted by the timing effect of the academic
calendar redesign.

    As of March 31,
        Increase

Total Student Enrollments

2019 2018 (Decrease)
CTU   23,100   22,200   4.1 %
AIU   12,700   10,900 16.5 %
Total University Group   35,800   33,100 8.2 %
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