2013 Q2 Form 10-Q Financial Statement

#000119312513201698 Filed on May 06, 2013

View on sec.gov

Income Statement

Concept 2013 Q2 2013 Q1 2012 Q1
Revenue $212.6M $228.7M $383.7M
YoY Change -38.03% -40.41% -27.27%
Cost Of Revenue $89.50M $96.60M $150.7M
YoY Change -16.36% -35.9% -9.0%
Gross Profit $166.7M $180.7M $280.6M
YoY Change -13.72% -35.6% -23.35%
Gross Profit Margin 78.42% 79.03% 73.13%
Selling, General & Admin $194.0M $183.9M $213.0M
YoY Change -6.01% -13.66% -10.16%
% of Gross Profit 116.38% 101.77% 75.91%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $18.90M $19.30M $20.11M
YoY Change -5.5% -4.03% -1.44%
% of Gross Profit 11.34% 10.68% 7.17%
Operating Expenses $209.6M $200.3M $232.7M
YoY Change -6.22% -13.92% -9.53%
Operating Profit -$30.28M -$5.570M $34.95M
YoY Change -69.98% -115.94% -67.95%
Interest Expense $212.0K $706.0K $37.00K
YoY Change 657.14% 1808.11% -81.5%
% of Operating Profit 0.11%
Other Income/Expense, Net $360.0K -$7.166M $233.0K
YoY Change -1.37% -3175.54% -87.06%
Pretax Income -$49.36M -$27.64M $35.84M
YoY Change -51.33% -177.12% -67.69%
Income Tax -$26.53M -$12.40M $6.430M
% Of Pretax Income 17.94%
Net Earnings -$31.39M -$15.20M $52.08M
YoY Change -68.68% -129.19% -28.7%
Net Earnings / Revenue -14.77% -6.65% 13.57%
Basic Earnings Per Share -$0.23 $0.78
Diluted Earnings Per Share -$464.5K -$0.23 $0.78
COMMON SHARES
Basic Shares Outstanding 67.05M shares 66.43M shares 66.84M shares
Diluted Shares Outstanding 66.43M shares 66.96M shares

Balance Sheet

Concept 2013 Q2 2013 Q1 2012 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $229.9M $287.8M $389.9M
YoY Change -37.85% -26.19% -2.31%
Cash & Equivalents $63.73M $109.4M $125.9M
Short-Term Investments $63.90M $64.00M $160.5M
Other Short-Term Assets $7.245M $6.845M $99.60M
YoY Change 17.25% -93.13% 6.87%
Inventory $7.690M $7.500M $9.800M
Prepaid Expenses $96.44M $57.71M
Receivables $53.52M $50.42M $62.00M
Other Receivables $40.50M $4.400M $19.70M
Total Short-Term Assets $458.0M $436.9M $581.0M
YoY Change -13.79% -24.8% 1.7%
LONG-TERM ASSETS
Property, Plant & Equipment $246.0M $259.1M $341.8M
YoY Change -24.83% -24.19% -4.98%
Goodwill $132.4M $131.7M
YoY Change 1.15%
Intangibles $56.90M $61.13M
YoY Change -23.77%
Long-Term Investments
YoY Change
Other Assets $28.15M $32.32M $57.30M
YoY Change -30.05% -43.59% 2.87%
Total Long-Term Assets $536.2M $557.7M $698.3M
YoY Change -11.79% -20.13% -24.75%
TOTAL ASSETS
Total Short-Term Assets $458.0M $436.9M $581.0M
Total Long-Term Assets $536.2M $557.7M $698.3M
Total Assets $994.2M $994.6M $1.279B
YoY Change -12.72% -22.25% -14.67%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $31.86M $42.60M $34.20M
YoY Change -16.98% 24.56% -17.59%
Accrued Expenses $129.9M $87.30M $100.5M
YoY Change 41.04% -13.13% -14.76%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $100.0K $400.0K
YoY Change -100.0% -75.0% -55.56%
Total Short-Term Liabilities $278.9M $246.7M $293.3M
YoY Change 3.22% -15.9% -25.06%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $100.0K
YoY Change -100.0% -83.33%
Other Long-Term Liabilities $29.33M $30.06M $176.8M
YoY Change -20.4% -83.0% -2.32%
Total Long-Term Liabilities $145.6M $151.5M $176.9M
YoY Change -12.55% -14.36% -2.59%
TOTAL LIABILITIES
Total Short-Term Liabilities $278.9M $246.7M $293.3M
Total Long-Term Liabilities $145.6M $151.5M $176.9M
Total Liabilities $424.4M $398.2M $470.2M
YoY Change -2.8% -15.32% -17.94%
SHAREHOLDERS EQUITY
Retained Earnings $186.3M $217.7M
YoY Change -43.1%
Common Stock $818.0K $818.0K
YoY Change 0.12%
Preferred Stock
YoY Change
Treasury Stock (at cost) $214.5M $214.4M
YoY Change 0.24%
Treasury Stock Shares 14.72M shares 14.70M shares
Shareholders Equity $569.7M $596.5M $809.1M
YoY Change
Total Liabilities & Shareholders Equity $994.2M $994.6M $1.279B
YoY Change -12.72% -22.25% -14.67%

Cashflow Statement

Concept 2013 Q2 2013 Q1 2012 Q1
OPERATING ACTIVITIES
Net Income -$31.39M -$15.20M $52.08M
YoY Change -68.68% -129.19% -28.7%
Depreciation, Depletion And Amortization $18.90M $19.30M $20.11M
YoY Change -5.5% -4.03% -1.44%
Cash From Operating Activities -$52.80M -$14.20M $17.35M
YoY Change 6500.0% -181.82% -70.93%
INVESTING ACTIVITIES
Capital Expenditures -$5.900M $4.077M $12.30M
YoY Change -23.38% -66.86% -151.69%
Acquisitions
YoY Change
Other Investing Activities -$600.0K $1.000K $12.00K
YoY Change -80.65% -91.67% -99.37%
Cash From Investing Activities -$6.500M -$6.100M -$12.18M
YoY Change -39.81% -49.91% -44.14%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $304.0K $55.95M
YoY Change -99.46%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -400.0K 6.700M -60.06M
YoY Change -81.82% -111.16% -32.6%
NET CHANGE
Cash From Operating Activities -52.80M -14.20M 17.35M
Cash From Investing Activities -6.500M -6.100M -12.18M
Cash From Financing Activities -400.0K 6.700M -60.06M
Net Change In Cash -59.70M -13.60M -54.88M
YoY Change 332.61% -75.22% 7.19%
FREE CASH FLOW
Cash From Operating Activities -$52.80M -$14.20M $17.35M
Capital Expenditures -$5.900M $4.077M $12.30M
Free Cash Flow -$46.90M -$18.27M $5.049M
YoY Change -779.71% -461.93% -93.95%

Facts In Submission

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<div> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><b>1. DESCRIPTION OF THE COMPANY</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">The colleges, schools and universities that are part of the Career Education Corporation (&#x201C;CEC&#x201D;) family offer high-quality education to a diverse student population of approximately 75,000 students across the world in a variety of career-oriented disciplines through online, on-ground and hybrid learning program offerings. The more than 90 campuses that serve these students are located throughout the United States, and in France and Monaco, and offer doctoral, master&#x2019;s, bachelor&#x2019;s and associate degrees and diploma and certificate programs.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">We are an industry leader whose institutions are recognized globally. Those institutions include, among others, American InterContinental University (&#x201C;AIU&#x201D;); Brooks Institute; Colorado Technical University (&#x201C;CTU&#x201D;); Harrington College of Design; INSEEC Group (&#x201C;INSEEC&#x201D;) Schools; International University of Monaco (&#x201C;IUM&#x201D;); International Academy of Design&#xA0;&amp; Technology (&#x201C;IADT&#x201D;); Le Cordon Bleu North America (&#x201C;LCB&#x201D;); and Sanford-Brown Institutes and Colleges. Through our schools, we are committed to providing high-quality education, enabling students to graduate and pursue rewarding career opportunities.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">For more information, see our website at <i>www.careered.com</i>. The website includes a detailed listing of individual campus locations and web links to our colleges, schools and universities.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">As used in this Quarterly Report on Form 10-Q, the terms &#x201C;we,&#x201D; &#x201C;us,&#x201D; &#x201C;our,&#x201D; &#x201C;the Company&#x201D; and &#x201C;CEC&#x201D; refer to Career Education Corporation and our wholly-owned subsidiaries. The terms &#x201C;school&#x201D; and &#x201C;university&#x201D; refer to an individual, branded, proprietary educational institution, owned by us and includes its campus locations. The term &#x201C;campus&#x201D; refers to an individual main or branch campus operated by one of our schools or universities.</font></p> </div>
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CY2012Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
12303000
CY2012Q1 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
0.62
CY2012Q1 us-gaap Payments To Acquire Available For Sale Securities
PaymentsToAcquireAvailableForSaleSecurities
40300000
CY2012Q1 us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
12000
CY2012Q1 us-gaap Gain Loss On Sale Of Property Plant Equipment
GainLossOnSaleOfPropertyPlantEquipment
-32000
CY2012Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
4200000 shares
CY2012Q1 us-gaap Proceeds From Recoveries Of Loan Previously Charged Off
ProceedsFromRecoveriesOfLoanPreviouslyChargedOff
2800000
CY2012Q1 us-gaap Interest Expense
InterestExpense
37000
CY2012Q1 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
5428000
CY2012Q1 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
477000
CY2012Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
17352000
CY2012Q1 us-gaap Discontinued Operation Tax Effect Of Discontinued Operation
DiscontinuedOperationTaxEffectOfDiscontinuedOperation
-12253000
CY2012Q1 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
0.62
CY2012Q1 us-gaap Income Loss From Discontinued Operations Net Of Tax
IncomeLossFromDiscontinuedOperationsNetOfTax
10417000
CY2012Q1 ceco Educational Services And Facilities Expense
EducationalServicesAndFacilitiesExpense
150739000
CY2012Q1 ceco Provision For Doubtful Accounts Including Discontinued Operations
ProvisionForDoubtfulAccountsIncludingDiscontinuedOperations
9390000
CY2012Q1 ceco Remaining Lease Obligations Incurred
RemainingLeaseObligationsIncurred
295000
CY2012Q1 ceco Remaining Lease Obligations Net Cash Payments
RemainingLeaseObligationsNetCashPayments
2612000
CY2012Q1 ceco Revenue From Tuition And Registration Fees
RevenueFromTuitionAndRegistrationFees
420885000
CY2012Q1 ceco Common Stock Equivalents
CommonStockEquivalents
116000 shares
CY2012Q1 ceco Allowance For Doubtful Accounts Receivable Write Offs
AllowanceForDoubtfulAccountsReceivableWriteOffs
13880000

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