Career Education’s impressive resultsFor the fiscal fourth quarter of 2013, Career Education Corp. ( CECO) reported revenues of $247.1 million and a net loss of $30.6 million, or -$0.46 per diluted share, a significant improvement on 2012′s fourth quarter result; a net loss of $61.5 million, or -$0.93 per diluted share on revenues of $303.3 million. For the full year 2013, the company reported total revenue of $1.06 billion, a net loss of $164.3 million, or -$2.46 per diluted share. Unfortunately, this was worse than the net loss of $142.8 million, or -$2.15 per diluted share, reported for the full year 2012 on revenue of $1.34 billion. Nevertheless, the company is making important progress in other areas. For example, operating costs continue to decline dropping by $59.0 million in the fourth quarter and by more than $200.0 million for the full year. Additionally, net cash used in operating activities was only $8.0 million during the fourth quarter, versus $10.9 million in the third quarter and $52.8 million in the second quarter — so the company’s cash burn has slowed, giving it more time to restructure and return to profit.
Further, Career Education Corp. ( CECO) reported a slight uptick in the number of students enrolling for some of its courses in the fourth quarter, seemingly putting the brakes on several quarter of consecutive enrollment decline. New student enrollments for Health Education and Design & Technology classes jumped 21% and 12% respectively year-on-year in the fourth quarter. However, overall new student enrollments declined 16% year-on-year. Still, rising student numbers in some classes is a slight improvement.