Market Overview

Career Education Corporation Reports Results for Second Quarter and Year to Date 2019

Share:

Second quarter revenue increased 10.1% while University Group total student enrollments grew 5.4%

Career Education Corporation (NASDAQ:CECO) today reported operating and financial results for the quarter and year to date ended June 30, 2019.

SECOND QUARTER 2019 RESULTS AS COMPARED TO THE PRIOR YEAR QUARTER

   

Financial Results

 

Revenue increased by 10.1 percent to $156.4 million as compared to $142.0 million with both universities contributing to this growth

 

Operating income was $0.2 million as compared to $11.3 million; the current year quarter operating income includes a $30.0 million reserve related to the Federal Trade Commission ("FTC") settlement

 

Adjusted operating income increased 37.9 percent to $32.8 million as compared to $23.8 million*

 

Loss per diluted share of ($0.01) as compared to earnings per diluted share of $0.12

 

Adjusted earnings per diluted share of $0.39 as compared to $0.23*

 

Ended the quarter with $280.2 million in cash, cash equivalents, restricted cash and available-for-sale short-term investments

 

 

 

 

Key Metrics

 

 

CTU's total student enrollments increased by 3.2 percent supported by new student enrollment growth of 7.0 percent for the quarter

 

AIU's total student enrollments increased 10.0 percent supported by year to date new student enrollment growth of 52.6 percent; positively impacting these trends was the academic calendar redesign

 

Ongoing operating initiatives and investments in student-serving operations continue to support positive enrollment trends

YEAR TO DATE 2019 HIGHLIGHTS AS COMPARED TO THE PRIOR YEAR TO DATE

 

Revenue increased 8.3 percent to $314.3 million as compared $290.1 million supported by total student enrollment growth at both universities

Operating income of $30.2 million as compared to $31.8 million; the current year operating income includes a $30.0 million reserve related to the FTC settlement

Adjusted operating income increased 32.5 percent to $65.8 million as compared to $49.6 million*

University Group new student enrollments increased 25.0 percent contributing to total enrollment growth of 5.4 percent; positively impacting these trends was the academic calendar redesign at AIU

 

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

"We are pleased with the overall financial and operating progress made thus far," said Todd Nelson, President and Chief Executive Officer. "Our year to date results have been supported, in part, by our continued focus on student outreach and engagement while maintaining our investments in technology and student-serving operations. Looking ahead, we will continue to leverage data and analytics to support student learning and engagement while executing against our strategic priority of sustainable and responsible growth and pursuing investments that support long term value creation for all stakeholders."

REVENUE

  • For the quarter ended June 30, 2019, total revenue of $156.4 million increased 10.1 percent compared to total revenue of $142.0 million for the prior year quarter.
  • For the year to date ended June 30, 2019, total revenue of $314.3 million increased 8.3 percent compared to total revenue of $290.1 million for the prior year to date.
  • Both universities contributed to the revenue growth for the second quarter and year to date primarily as a result of underlying enrollment trends as well more revenue-earning days at AIU.

 

 

For the Quarter Ended June 30,

 

 

For the Year to Date Ended June 30,

 

Revenue ($ in thousands)

 

2019

 

 

2018

 

 

%

Change

 

 

2019

 

 

2018

 

 

%

Change

 

CTU

 

$

96,555

 

 

$

93,266

 

 

 

3.5

%

 

$

193,612

 

 

$

187,873

 

 

 

3.1

%

AIU

 

 

59,873

 

 

 

48,579

 

 

 

23.2

%

 

 

120,652

 

 

 

101,700

 

 

 

18.6

%

Total University Group

 

 

156,428

 

 

 

141,845

 

 

 

10.3

%

 

 

314,264

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com