Career Education Corporation (NASDAQ: CECO) today reported total revenue of $251.3 million, and a net loss of $87.1 million, or -$1.30 per diluted share, for the third quarter of 2013 compared to total revenue of $316.2 million and net loss of $33.1 million, or -$0.50 per diluted share, for the third quarter of 2012.
INTERNATIONAL SCHOOLS HELD FOR SALE
On October 22, 2013, the Company and one of its subsidiaries entered into a Securities Purchase Agreement with Insignis, a company controlled by funds managed by Apax Partners, pursuant to which the Company will sell and transfer control of its Paris-based INSEEC Group and the International University of Monaco. The closing of the transaction is subject to customary closing conditions, including the receipt of anti-trust regulatory approvals in France. The Company expects the closing to occur no later than December 27, 2013. As a result of the decision to sell our International Schools, the assets and liabilities and the results of operations of the entities to be sold are classified as held for sale within discontinued operations as of, and for the periods ending, September 30, 2013. All prior periods have been recast to be comparable to the current period.
“In addition to recapitalizing Career Education through the agreement to sell our International assets, and thus tapping unrecognized value for our investors, we continue to see improved performance as a result of operational changes made to our business,” said Scott W. Steffey, president and CEO of Career Education. “As an example, new enrollments across our continuing operations, excluding Transitional campuses, were down 10 percent from the same quarter last year. That compares to a decline of 19 percent in the second quarter and 20 percent in the first quarter. Additionally, we expect to reduce our expenses by up to $175 million in 2013, with an incremental $75 - $100 million reduction in 2014. While much work remains to be done to continue stemming declines and return to growth, I’m pleased with the progress made to date.”