Market Overview

Career Education Corporation Reports Results for Third Quarter and Year to Date 2019 and Announces New Stock Repurchase Program

Share:

Third quarter revenue increased 6.4% while University Group total student enrollments grew 6.1% highlighting the Company's focus on student retention and academic outcomes

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

 

THIRD QUARTER 2019 RESULTS AS COMPARED TO THE PRIOR YEAR QUARTER

Financial

Results

Revenue increased by 6.4 percent to $155.0 million as compared to $145.7 million with both universities contributing to this growth

Operating income increased 26.0 percent to $24.3 million as compared to $19.3 million

Earnings per diluted share of $0.25 as compared to earnings per diluted share of $0.21

Adjusted earnings per diluted share of $0.33 as compared to $0.25*

Ended the quarter with $311.8 million in cash, cash equivalents, restricted cash and available-for-sale short-term investments**

 

 

 

Key Metrics

 

CTU's total student enrollments increased 3.2 percent supported by year to date new student enrollment growth of 6.4 percent and improving student retention while new student enrollments were relatively flat for the quarter

AIU's total student enrollments increased 11.3 percent supported by quarterly new student enrollment growth of 10.0 percent

Leveraging technology and data analytics to support student experiences, retention and academic outcomes continues to be a primary focus

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

Revenue increased 7.7 percent to $469.3 million as compared to $435.8 million, in part, supported by total student enrollment growth at both universities

Operating income increased 6.5 percent to $54.4 million as compared to $51.1 million; current year operating income was impacted by $37.1 million in legal settlements as compared to $9.6 million in the prior year

Adjusted operating income increased 32.2 percent to $99.8 million as compared to $75.4 million*

New student enrollments increased 16.2 percent contributing to total enrollment growth of 6.1 percent; positively impacting these trends was the academic calendar redesign at AIU

Company raises full year 2019 outlook

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

**Includes $30.0 million of restricted funds related to the FTC settlement which was subsequently paid during October 2019.

"We believe our solid year to date results reflect how we have further underscored the value proposition of our academic institutions while emphasizing student retention and academic outcomes," said President and Chief Executive Officer Todd Nelson. "We have progressively built upon our student-serving initiatives and are integrating technology across various student support and learning processes which, we believe, are further enhancing student experiences. Looking ahead, we will continue to make investments that support our strategic priority of sustainable and responsible growth to create long-term value for all our stakeholders."

REVENUE

  • For the quarter ended September 30, 2019, total revenue of $155.0 million increased 6.4 percent compared to total revenue of $145.7 million for the prior year quarter.
  • For the year to date ended September 30, 2019, total revenue of $469.3 million increased 7.7 percent compared to total revenue of $435.8 million for the prior year to date.
  • Both universities contributed to the revenue growth that has been supported by underlying enrollment trends.

 

 

For the Quarter Ended September 30,

 

 

For the Year to Date Ended September 30,

 

Revenue ($ in thousands)

 

2019

 

 

2018

 

 

% Change

 

 

2019

 

 

2018

 

 

% Change

 

CTU

 

$

96,038

 

 

$

93,115

 

 

 

3.1

%

 

$

289,650

 

 

$

280,988

 

 

 

3.1

%

AIU

 

 

58,907

 

 

 

52,504

 

 

 

12.2

%

 

 

179,559

 

 

 

154,204

 

 

 

16.4

%

Total University Group

 

 

154,945

 

 

 

145,619

 

 

 

6.4

%

 

 

469,209

 

 

 

435,192

 

 

 

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