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Career Education Corporation Reports Results for Third Quarter 2009.

Article Excerpt
Revenue increased 17% and operating income increased 233% excluding Transitional Schools and other significant items

Company on track to exceed previously stated 2010 milestones

HOFFMAN ESTATES, Ill. -- Career Education Corporation (NASDAQ: CECO) today reported total revenue of $459.9 million, and net income of $20.8 million, or $0.25 per diluted share, for the third quarter of 2009 compared to total revenue of $403.0 million and a net loss of $0.1 million, or $0.00 per diluted share, for the third quarter of 2008.

The financial and operating results for the third quarter 2009 and 2008 include revenue and operating losses associated with schools currently being taught out (Transitional Schools) as well as other significant items as itemized in the tables within this press release.

On a non-GAAP basis, which excludes the Transitional Schools and other significant items, revenue was $457.5 million in the third quarter, a 16.5 percent increase from $392.7 million in the third quarter of 2008 and earnings per diluted share were $0.47 in the third quarter as compared to $0.18 in the third quarter of 2008, an increase of over 160%. (See segment tables below and the GAAP to non-GAAP reconciliation attached to this press release.)

"We are pleased with our third-quarter results, as they reflect the progress we have made across the organization on our transformation initiatives," said Gary E. McCullough, President and Chief Executive Officer. "Revenue growth accelerated in the third quarter, as we achieved the highest levels of new student starts and student population in our company's history. We also delivered another meaningful increase in operating margins, positioning us well ahead of our 2009 internal plan."

Outlook

In March 2008, the company established milestone objectives for 2010 of between $225 and $270 million in operating income. Based upon the financial performance through the first nine months, and the record level of student population as of October 31, 2009, the company is on track to achieve operating income, excluding Transitional Schools and other significant items, within the low end of the 2010 milestone objective range in 2009, a year ahead of schedule.

Three Months Ended September 30, 2009

* Total...

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