SANTA ANA, Calif., Aug. 29, 2013 (GLOBE NEWSWIRE) -- Corinthian Colleges, Inc. (Nasdaq:COCO) reported financial results today for the fourth quarter and fiscal year ended June 30, 2013. The results for the fourth quarter were within the Company's previous guidance range for diluted earnings per share and below guidance ranges for new student enrollment and revenue. (Guidance excludes all one-time charges; the Company recorded a $1.5 million impairment, facility closing and severance charge in the fourth quarter.) "In fiscal 2013 we continued to make operational improvements while managing through the loss of Ability-to-Benefit students," said Jack Massimino, Corinthian chairman and chief executive officer. "We continued to focus on student completion and achieved a slight increase in our graduate placement rate despite a weak labor market. We reduced operating expenses to align with our lower student population and closed or sold underperforming campuses. We continued to increase the efficiency of our operations through increased automation and standardization in a number of areas, including online service center technology, faculty hiring and on-boarding, career services and compliance. On the regulatory front, we maintained our strong culture of compliance and continued to cooperate with regulators on several inquiries." "Our new student enrollment decline was higher than expected in the fourth quarter, primarily driven by underperformance in new online enrollments," Massimino said. "We have increased staffing in online admissions and student finance, and we are implementing service center technology and a new academic model which we believe will improve performance." "Given the decline in our student population, we expect fiscal year 2014 to be another challenging year," Massimino said. "In the first quarter, we expect our ground schools to post positive new enrollment growth and our online new student enrollment to decline year-over-year, in part due to a challenging comparable in the first quarter last year. For fiscal year 2014, we expect the company's consolidated operations to report positive new enrollment growth.
"To help restore growth in the ground schools, we are introducing several new diploma programs and offering GED preparation programs to the general public at most of our U.S. campuses. In addition, competitor schools have closed in several of our service areas, and we expect our schools to benefit as a result."Comparing the fourth quarter of fiscal 2013 with the same quarter of the prior year : (Note: results are for continuing operations only, unless otherwise stated.)
- Net revenue was $377.5 million versus $387.9 million, a decrease of 2.7%.
- Total student population at June 30, 2013 was 81,284 versus 90,794 at June 30, 2012, a decrease of 10.5%.
- New student enrollments totaled 24,276 versus 25,774, a decrease of 5.8%.
- Non-ATB new student enrollments totaled 23,919 versus 22,833, an increase of 4.8%.
- Operating income was $7.9 million, compared with operating income of $14.5 million, which excludes $1.5 million and $0.5 million in impairment and severance charges in Q4 13 and Q4 12, respectively.
- Net loss was $2.2 million, which includes a $1.5 million impairment, facility closing and severance charge, and a loss from discontinued operations of $5.3 million, compared with a net loss of $6.5 million, which included a $0.5 million impairment, facility closing and severance charge, and a loss from discontinued operations of $13.1 million.
- Income from continuing operations (after tax) was $4.0 million, compared with $6.9 million, excluding impairment, facility closing and severance charges in both periods.
- Diluted earnings per share from continuing operations were $0.05, versus diluted earnings per share of $0.08, excluding impairment, facility closing and severance charges of $0.01 per share in Q4 13 and $0.00 per share in Q4 12.
- Net revenue was $1.60 billion versus $1.58 billion, an increase of 1.2%.
- New student enrollments totaled 106,200 versus 108,841, a decrease of 2.4%.
- Non-ATB new student enrollments totaled 104,796 versus 100,583, an increase of 4.2%.
- Operating income was $55.1 million, compared with operating income of $59.7 million, which excludes $3.6 million and $15.6 million in impairment, facility closing and severance charges in fiscal 2013and fiscal 2012, respectively.
- Net loss was $1.7 million, which includes a $3.6 million impairment, facility closing and severance charge, and a loss from discontinued operations of $20.3 million, compared with a net loss of $10.2 million, which includes a $15.6 million impairment, facility closing and severance charge, and a loss from discontinued operations of $27.7 million.
- Income from continuing operations (after tax) was $20.7 million, compared with $26.8 million, excluding impairment, facility closing and severance charges in both periods.
- Diluted earnings per share from continuing operations were $0.24, versus diluted earnings per share of $0.31, excluding impairment, facility closing and severance charges of $0.03 per share in fiscal 2013 and $0.11 per share in fiscal 2012.
We have provided the ED letter to the lenders in our revolving credit facility and they have waived any non-compliance with our financial covenants that might have occurred as a result of ED's determination that our composite in fiscal 2011 was 0.9.For more information about ED's composite score determination, see the 8-K issued on August 20, 2013, available at www.cci.edu/investorrelations/financialreports/SECfilings. 90/10 Compliance – The 90/10 Rule requires that no more than 90% of the company's revenue be derived from Title IV funds. The 90/10 Rule is applied to each OPEID, of which we have 37 in continuing operations. Each OPEID, or institution, consists of a main campus and its branches. Two of our institutions exceeded the 90% threshold in fiscal 2013. Combined, these two institutions had 521 students at June 30, 2013. However, the two OPEIDs that exceeded the 90% threshold in fiscal 2012 did not do so in fiscal 2013. An OPEID must exceed the 90% threshold for two consecutive years before it loses access to Title IV funding. Guidance The following guidance is for continuing operations and excludes any one-time charges.
|Time Period||Revenue||Diluted EPS||Total New Student Growth|
|Q1 14||$372 - $382 million||$(0.06 - $0.09)||(6%-8%)|
|FY 14||n/a||$0.10 - $0.15||positive growth|
|Corinthian Colleges, Inc.|
|(In thousands, except per share data)|
|Consolidated Statements of Operations|
|For the three months ended||For the twelve months ended|
|June 30,||June 30,|
|Net revenues||$ 377,501||$ 387,898||$ 1,600,205||$ 1,581,933|
|General and administrative||39,298||44,558||165,544||175,572|
|Marketing and admissions||91,406||96,634||396,039||391,007|
|Impairment, facility closing and severance charges||1,525||480||3,565||15,644|
|Total operating expenses||371,139||373,847||1,548,664||1,537,883|
|Income from operations||6,362||14,051||51,541||44,050|
|Other expense, net||(7,042)||(5,057)||(23,803)||(11,631)|
|Income (loss) from continuing operations before provision for income taxes||(1,878)||7,841||23,208||25,063|
|Provision (benefit) for income taxes||(4,979)||1,234||4,596||7,610|
|Income from continuing operations||3,101||6,607||18,612||17,453|
|Loss from discontinued operations, net of tax||(5,252)||(13,099)||(20,272)||(27,698)|
|Income (loss) per share—basic|
|Income from continuing operations||$ 0.04||$ 0.08||$ 0.22||$ 0.21|
|Loss from discontinued operations||$ (0.06)||$ (0.16)||$ (0.24)||$ (0.33)|
|Net loss||$ (0.02)||$ (0.08)||$ (0.02)||$ (0.12)|
|Income (loss) per share—diluted|
|Income from continuing operations||$ 0.04||$ 0.08||$ 0.21||$ 0.20|
|Loss from discontinued operations||$ (0.06)||$ (0.16)||$ (0.23)||$ (0.32)|
|Net loss||$ (0.02)||$ (0.08)||$ (0.02)||$ (0.12)|
|Weighted average number of common shares outstanding|
|Selected Consolidated Balance Sheet Data|
|June 30,||June 30,|
|Cash and cash equivalents||$ 46,596||$ 72,525|
|Receivables, net (including long term notes receivable)||$ 167,861||$ 199,881|
|Current assets||$ 286,067||$ 339,312|
|Total assets||$ 1,028,744||$ 1,073,021|
|Current liabilities||$ 251,244||$ 297,271|
|Total debt and capital leases||$ 139,085||$ 148,974|
|Total liabilities||$ 457,901||$ 508,106|
|Total stockholders' equity||$ 570,843||$ 564,915|
CONTACT: Investors: Anna Marie Dunlap SVP Investor Relations 714-424-2678 Media: Kent Jenkins VP Public Affairs Communications 202-682-9494