SANTA ANA, Calif., Nov. 5, 2013 (GLOBE NEWSWIRE) -- Corinthian Colleges, Inc. (Nasdaq:COCO) reported financial results today for the first quarter ended September 30, 2013. The results for the quarter were within the Company's previous guidance range for diluted earnings per share, and fell below guidance for new student enrollment and revenue. (Guidance is for continuing operations only and excludes all one-time charges. In the first quarter the Company recorded a $3.7 million impairment, facility closing and severance charge, and put four schools up for sale.) "During the first quarter we continued to focus on student outcomes and initiatives to increase our student population and improve operational efficiency," said Jack Massimino, Corinthian's chairman and chief executive officer. "In addition, we made further expense reductions to help offset the impact of a lower student population." "As expected, total new student enrollments declined quarter-over-quarter, the result of a decline in new online students," Massimino said. "To help increase our online student population, we recently implemented new workforce management technology for the service centers and improved the alignment of staffing and call volume. In addition, we are in the process of implementing a new academic model to create greater student engagement and retention. We believe these and other initiatives will help position Online for improved performance over time." "Our ground school new enrollments were up slightly quarter-over-quarter," Massimino said. "Our growth initiatives for the ground schools include introducing new promotional programs in certain service areas, implementing new programs, and offering free GED programs at most Everest campuses. In addition, we continue to see higher new student enrollments in service areas where competitor school closures have occurred." "In the second quarter we expect a decline in new enrollments, owing to Online's on-going operational initiatives and regulatory delays in approving new ground school programs," Massimino said. "In addition, we are transitioning to an in-house system for certain lead-management functions, which has temporarily reduced the quality and speed of prospective student inquiries delivered to our schools and online service centers. When fully implemented, we believe the new system will be more efficient and effective than the outside vendor used previously."
Comparing the first quarter of fiscal 2014 with the same quarter of the prior year : (Note: results are for continuing operations only, and exclude impairment, facility closing and severance charges unless otherwise stated.)
- Net revenue was $365.0 million versus $402.0 million, a decrease of 9.2%.
- Total student population at September 30, 2013 was 80,032 versus 90,469 at September 30, 2012, a decrease of 11.5%.
- New student enrollments totaled 28,551 versus 31,058, a decrease of 8.1%.
- Operating loss was ($5.7) million, compared with operating income of $18.0 million, which excludes $3.7 million and $0.8 million in impairment and severance charges in Q1 14 and Q1 13, respectively.
- Loss from continuing operations (after tax) was ($7.9) million, compared with income from continuing operations of $7.8 million, excluding impairment, facility closing and severance charges in both periods.
- Net loss was $15.0 million, which includes a $2.2 million impairment, facility closing and severance charge, and a loss from discontinued operations of $4.9 million, compared with net income of $1.6 million, which included a $0.5 million impairment, facility closing and severance charge, and a loss from discontinued operations of $5.7 million.
- Diluted loss per share from continuing operations were $(0.09), versus diluted earnings per share of $0.09, excluding impairment, facility closing and severance charges of $0.03 per share in Q1 14 and $0.01 per share in Q1 13.
GuidanceThe following guidance is for continuing operations and excludes any one-time charges.
|Time Period||Revenue||Diluted EPS||Total New Student Growth|
|Q2 14||$375 -- $385 million||$0.02 -- $0.04||(7)% - (9)%|
|FY 14||n/a||$0.10 -- $0.15||n/a|
|Corinthian Colleges, Inc.|
|(In thousands, except per share data)|
|Consolidated Statements of Operations|
|For the three months ended|
|Net revenues||$ 364,958||$ 402,037|
|General and administrative||42,371||42,949|
|Marketing and admissions||101,200||97,706|
|Impairment, facility closing, and severance charges||3,654||761|
|Total operating expenses||374,323||384,807|
|Income (loss) from operations||(9,365)||17,230|
|Other expense, net||(6,037)||(4,245)|
|Pre-tax income (loss) from continuing operations||(17,098)||11,891|
|Provision (benefit) for income taxes||(6,995)||4,584|
|Income (loss) from continuing operations||(10,103)||7,307|
|Loss from discontinued operations, net of tax||(4,851)||(5,729)|
|Net income (loss)||$ (14,954)||$ 1,578|
|Income (loss) per common share --- Basic:|
|Income (loss) from continuing operations||$ (0.12)||$ 0.09|
|Loss from discontinued operations||(0.05)||(0.07)|
|Net (loss) income||$ (0.17)||$ 0.02|
|Income (loss) per common share --- Diluted:|
|Income (loss) from continuing operations||$ (0.12)||$ 0.08|
|Loss from discontinued operations||(0.05)||(0.06)|
|Net (loss) income||$ (0.17)||$ 0.02|
|Weighted average number of common shares outstanding:|
|Selected Consolidated Balance Sheet Data|
|September 30,||June 30,|
|Cash and cash equivalents||$ 37,190||$ 46,596|
|Receivables, net (including long term notes receivable)||$ 185,852||$ 167,141|
|Current assets||$ 299,052||$ 286,068|
|Total assets||$ 1,060,644||$ 1,028,745|
|Current liabilities||$ 335,111||$ 251,246|
|Debt and capital leases (including current portion)||$ 101,110||$ 139,085|
|Total liabilities||$ 503,828||$ 457,903|
|Total stockholders' equity||$ 556,816||$ 570,842|
CONTACT: Investors: Anna Marie Dunlap SVP Investor Relations 714-424-2678 Media: Kent Jenkins VP Public Affairs Communications 202-682-9494