SANTA ANA, Calif., Jan. 31, 2013 (GLOBE NEWSWIRE) -- Corinthian Colleges, Inc. (Nasdaq:COCO) reported financial results today for the second quarter ended December 31, 2012. Results for the quarter met the company's previous guidance ranges for revenue and earnings per share and fell below guidance for new student enrollment growth.
"During the second quarter we continued to focus on student completion and graduate placement, as well as several initiatives to strengthen and diversify operations and restore growth," said Jack Massimino, Corinthian's chairman and chief executive officer. "We maintained fiscal discipline and held margins steady while continuing to absorb the loss of Ability-to-Benefit (ATB) students in the ground schools."
"Our non-ATB student population has been stabilizing over the past several quarters, and non-ATB new student growth was 5.6% in the first half of the fiscal year compared with the same period last year," Massimino said. "In the second quarter total new student growth was lower than expected, as we experienced a decline in new Online Learning students. The decrease was primarily the result of a challenging prior-year comparable and execution issues in admissions and student finance. We expect Online Learning to return to growth in the third quarter.""We are pursuing a number of initiatives to achieve more consistent growth while improving the student value proposition," Massimino said. "We have reduced tuition for several programs, and our third-party lender substantially reduced interest rates on gap financing for our students. We believe these efforts helped us achieve higher-than-expected new student enrollments at most Everest ground schools in the second quarter. In addition, we are in the process of rolling out several new diploma programs across our schools and began offering free GED preparation programs at most Everest U.S. ground campuses last October. We believe the GED program will benefit the communities we serve and has the potential to help increase our campus enrollments over time."
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