Wednesday, an educational service provider Career Education Corp. (CECO), reported a swing to profit in the third quarter, as revenues increased 14% helped by higher levels of new student starts and student population. The company said third quarter results reflect the progress on transformation initiatives. The company currently expects to achieve adjusted operating income within the low end of the 2010 milestone range a year ahead of schedule.
The Hoffman Estates, Illinois-based company posted net income for the third quarter of $20.79 million or $0.25 per share, compared to a loss of $0.15 million or breakeven per share in the same period last year.
Income from continuing operations for the quarter were $22.97 million or $0.27 per share, up from $1.55 million or $0.02 per share in the previous year period.
Reported operating income for the quarter was $32.3 million or $0.25 per share, compared to a loss of $6.2 million or breakeven per share last year. Excluding significant items and transitional schools, adjusted operating income was $61.0 million or $0.47 per share, up from $18.3 million or $0.18 per share in the prior year period.
On average, fourteen analysts surveyed by Thomson Reuters expected the company to report earnings of $0.14 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenue from continuing operations increased 14.1% to $459.91 million from $402.96 million in the corresponding period last year. Thirteen analysts had a consensus revenues estimate of $437.25 million for the quarter.
Excluding the transitional schools, revenue for the quarter rose 16.5% to $457.5 million from $392.7 million in the preceding year period.
Segment-wise, University revenue rose 20% to $206.8 million from a year ago, while health education revenue was $78.0 million, up 31% from last year. Culinary Arts revenue was $91.6 million, up 7%, while Art & Design revenues edged up 7% to $65.9 million from last year. Revenue from International rose 22% to $15.3 million from a year earlier.
As of October 31, 2009, total student population increased 16% to 114,200 from 98,400 in the previous year period. Total online student population rose 24% to 43,800 from 35,200 in the prior year period.
Total net student starts for the quarter rose 19% to 37,670 from 31,600 a year ago. Total online student starts was 13,550, up 15% from 11,800 in the preceding year period.
Operating expenses for the quarter was $427.64 million, compared to $409.20 million in the comparable quarter last year.
For the nine months ended 2009, the company's net income was $50.54 million or $0.58 per share, compared to $28.93 million or $0.32 per share in the previous year period. Income from continuing operations for the period rose to $57.85 million or $0.66 per share from $37.22 million or $0.41 per share in the prior year period.
Reported operating income for the nine months was $86.3 million or $0.58 per share, compared to $37.1 million or $0.32 per share in the preceding year period. Adjusted operating income increased to $160.1 million or $1.13 per share from $85.8 million or $0.64 per share a year ago.
Total revenues for the period rose 5.7% to $1.34 billion from $1.27 billion in the comparable period previous year. Excluding transitional schools, revenue was $1.33 billion, up 8.4% from $1.22 billion a year earlier.
Based upon the financial performance through the first nine months, and the record level of student population as of October 31, 2009, the company is on track to achieve operating income, excluding transitional schools and other significant items, within the low end of the 2010 milestone objective range of $225 million to $270 million in 2009, a year ahead of schedule.
Among competitors, Apollo Group Inc. (APOL) reported net income of $91.5 million or $0.59 per share for the fourth quarter, compared to $229.6 million or $1.43 per share in the year-ago quarter. Excluding special items, net income was $165.6 million or $1.06 per share. Consolidated net revenue rose 29.4% to $1.08 billion from $831.4 million a year ago.
DeVry, Inc. (DV) reported net income attributable to common shareholders for the first quarter of $54.73 million or $0.76 per share, compared to $34.83 million or $0.48 per share in the year-ago quarter. Total revenues for the quarter increased to $431.11 million from $303.72 million in the prior-year quarter.
ITT Educational Services Inc.'s (ESI) third-quarter net income rose to $75.36 million or $2.00 per share from $50.19 million or $1.28 per share in the prior year quarter. Revenue increased 33.6% to $339.60 million from $254.30 million in the comparable period.
CECO closed Wednesday's regular trading at $20.78, down $0.47 or 2.21%, on a volume of 1.45 million shares. However, in after-hours, the stock rose $2.52 or 12.13% to trade at $23.30. The stock traded for the 52-week period in range of $13.26 to $26.53 on an average volume of 0.989 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.