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Career Education Corporation Reports Results For Third Quarter 2012


Cash Flows

Net cash flows provided by operating activities totaled $32.5 million for the year to date ended September 30, 2012, compared to $209.4 million for the year to date ended September 30, 2011.

Capital expenditures decreased to $29.5 million during the year to date ended September 30, 2012, from $67.4 million during the year to date ended September 30, 2011. Capital expenditures represented 2.6 percent and 4.6 percent of total revenue of continuing and discontinued operations during the years to date ended September 30, 2012 and 2011, respectively.

Financial Position

As of September 30, 2012 and December 31, 2011, cash and cash equivalents and short-term investments totaled $373.3 million and $441.2 million, respectively.

U.S. Credit Agreement

The Company’s $185 million U.S. Credit Agreement expired on October 31, 2012. The Company’s discussions surrounding the level and terms of a replacement facility are ongoing.

Stock Repurchase Program

During the third quarter of 2012, the Company did not repurchase any shares of its common stock. Year to date through September 30, 2012, the Company repurchased 6.1 million shares of its common stock for approximately $56.4 million at an average price of $9.29 per share.

As of September 30, 2012, approximately $183.3 million was available under the Company’s authorized stock repurchase program to repurchase outstanding shares of its common stock. Stock repurchases under this program may be made on the open market or in privately negotiated transactions from time to time, depending on various factors, including market conditions and corporate and regulatory requirements.

Student Population

Total student population by reportable segment as of September 30, 2012 and 2011, was as follows:
  As of September 30,   % Change
2012   2011 2012 vs. 2011
Student Population
CTU 22,600 25,100 -10 %
AIU 14,900 17,100 -13 %
Health Education 16,700 28,100 -41 %
Culinary Arts 11,200 15,400 -27 %
Art & Design 7,400 10,300 -28 %
International 8,800 8,400 5 %
Total Student Population 81,600 104,400 -22 %

New Student Starts

New student starts by reportable segment for the quarters ended September 30, 2012 and 2011, were as follows:
For the Quarters Ended September 30,
      % Change
2012 2011 2012 vs. 2011
New Student Starts
CTU 5,250 6,510 -19 %
AIU 3,700 4,590 -19 %
Health Education (1) 4,820 7,710 -37 %
Culinary Arts (1) 3,920 5,480 -28 %
Art & Design 1,200 1,870 -36 %
International 4,750 4,440 7 %
Total New Student Starts 23,640 30,600 -23 %


The third quarter 2012 had one additional new student start as compared to the previous year quarter.

Excluding this timing impact, the change in new student starts for Health Education and Culinary Arts

would have been -53% and -36%, respectively.


Career Education Corporation will host a conference call on Friday, November 9, 2012 at 10:00 a.m. Eastern time. Interested parties can access the live webcast of the conference call at in the Investor Relations section of the website. Participants can also listen to the conference call by dialing 800-580-9478 (domestic) or 630-691-2769 (international) and citing code 33496355. Please log-in or dial-in at least 10 minutes prior to the start time to ensure a connection. An archived version of the webcast will be accessible for 90 days at in the Investor Relations section of the website. A replay of the call will also be available for seven days by calling 888-843-7419 (domestic) or 630-652-3042 (international) and citing code 33496355.


The colleges, schools and universities that are part of the Career Education Corporation (“CEC”) family offer high-quality education to a diverse student population of more than 80,000 students across the world in a variety of career-oriented disciplines through online, on-ground and hybrid learning program offerings. The more than 90 campuses that serve these students are located throughout the United States and in France, the United Kingdom and Monaco, and offer doctoral, master’s, bachelor’s and associate degrees and diploma and certificate programs.

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