2013 Q4 Form 10-Q Financial Statement

#000119312513430197 Filed on November 06, 2013

View on sec.gov

Income Statement

Concept 2013 Q4 2013 Q3 2012 Q3
Revenue $199.4M $199.1M $314.9M
YoY Change -34.26% -36.78% -26.08%
Cost Of Revenue $84.60M $90.30M $117.9M
YoY Change -265.23% -23.41% -22.79%
Gross Profit $155.0M $153.9M $198.2M
YoY Change 565.24% -22.35% -28.11%
Gross Profit Margin 77.74% 77.31% 62.94%
Selling, General & Admin $174.7M $181.7M $219.9M
YoY Change -2019.78% -17.37% -5.86%
% of Gross Profit 112.71% 118.06% 110.95%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $16.60M $18.40M $20.50M
YoY Change -21.7% -10.24% -8.48%
% of Gross Profit 10.71% 11.96% 10.34%
Operating Expenses $189.6M $197.2M $238.7M
YoY Change -1263.19% -17.39% -6.68%
Operating Profit -$14.43M -$30.56M -$39.56M
YoY Change -84.24% -22.75% -296.84%
Interest Expense -$100.0K $209.0K $23.00K
YoY Change -150.0% 808.7% -47.73%
% of Operating Profit
Other Income/Expense, Net $200.0K -$117.0K $370.0K
YoY Change -200.0% -131.62% -7.96%
Pretax Income -$40.40M -$55.05M -$39.61M
YoY Change -204.66% 38.99% -253.8%
Income Tax $56.40M -$20.09M -$13.93M
% Of Pretax Income
Net Earnings -$30.61M -$87.06M -$33.15M
YoY Change -50.23% 162.67% -411.7%
Net Earnings / Revenue -15.35% -43.73% -10.53%
Basic Earnings Per Share -$0.50
Diluted Earnings Per Share -$456.7K -$1.304M -$0.50
COMMON SHARES
Basic Shares Outstanding 67.15M shares 67.08M shares 66.10M shares
Diluted Shares Outstanding 66.10M shares

Balance Sheet

Concept 2013 Q4 2013 Q3 2012 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $350.1M $83.10M $373.3M
YoY Change 98.02% -77.74% -16.88%
Cash & Equivalents $318.5M $29.64M $133.1M
Short-Term Investments $31.60M $52.20M $130.5M
Other Short-Term Assets $3.059M $5.885M $5.214M
YoY Change -30.37% 12.87% -94.46%
Inventory $4.593M $7.146M $9.157M
Prepaid Expenses $16.72M $112.8M $75.18M
Receivables $28.00M $41.69M $65.02M
Other Receivables $27.20M $39.80M $2.700M
Total Short-Term Assets $460.0M $557.2M $545.0M
YoY Change -15.37% 2.24% -11.4%
LONG-TERM ASSETS
Property, Plant & Equipment $112.1M $202.1M $317.5M
YoY Change -54.76% -36.34% -12.01%
Goodwill $87.36M $87.36M $131.9M
YoY Change 0.0% -33.75%
Intangibles $12.82M $40.39M $74.03M
YoY Change -77.11% -45.45%
Long-Term Investments
YoY Change
Other Assets $17.13M $25.92M $42.29M
YoY Change -43.41% -38.72% -24.48%
Total Long-Term Assets $345.0M $247.8M $600.1M
YoY Change -40.42% -58.7% -34.58%
TOTAL ASSETS
Total Short-Term Assets $460.0M $557.2M $545.0M
Total Long-Term Assets $345.0M $247.8M $600.1M
Total Assets $805.0M $805.0M $1.145B
YoY Change -28.29% -29.69% -25.28%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $22.83M $33.72M $53.24M
YoY Change -28.82% -36.65% 11.84%
Accrued Expenses $72.00M $98.70M $87.90M
YoY Change -2.44% 12.29% -15.56%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $0.00 $300.0K
YoY Change -100.0% -100.0% -66.67%
Total Short-Term Liabilities $207.4M $355.9M $310.8M
YoY Change -41.19% 14.53% -24.88%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Other Long-Term Liabilities $24.80M $29.79M $35.89M
YoY Change -13.44% -16.99% -79.07%
Total Long-Term Liabilities $142.2M $138.2M $162.5M
YoY Change -10.09% -14.98% -5.41%
TOTAL LIABILITIES
Total Short-Term Liabilities $207.4M $355.9M $310.8M
Total Long-Term Liabilities $142.2M $138.2M $162.5M
Total Liabilities $349.7M $494.1M $473.3M
YoY Change -31.56% 4.39% -19.17%
SHAREHOLDERS EQUITY
Retained Earnings $68.66M $99.26M $294.3M
YoY Change -70.52% -66.27%
Common Stock $819.0K $819.0K $816.0K
YoY Change 0.37% 0.37%
Preferred Stock
YoY Change
Treasury Stock (at cost) $214.5M $214.5M $214.0M
YoY Change 0.24% 0.24%
Treasury Stock Shares 14.72M shares 14.72M shares 14.55M shares
Shareholders Equity $455.4M $491.1M $671.7M
YoY Change
Total Liabilities & Shareholders Equity $805.0M $985.2M $1.145B
YoY Change -28.29% -13.96% -25.27%

Cashflow Statement

Concept 2013 Q4 2013 Q3 2012 Q3
OPERATING ACTIVITIES
Net Income -$30.61M -$87.06M -$33.15M
YoY Change -50.23% 162.67% -411.7%
Depreciation, Depletion And Amortization $16.60M $18.40M $20.50M
YoY Change -21.7% -10.24% -8.48%
Cash From Operating Activities -$8.000M -$10.80M $15.90M
YoY Change -83.77% -167.92% -83.19%
INVESTING ACTIVITIES
Capital Expenditures -$3.100M -$9.100M -$9.500M
YoY Change -63.1% -4.21% -51.28%
Acquisitions
YoY Change
Other Investing Activities $177.3M $14.30M $28.10M
YoY Change 149.02% -49.11% 230.59%
Cash From Investing Activities $174.4M $5.100M $18.60M
YoY Change 177.71% -72.58% -269.09%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 200.0K -400.0K 300.0K
YoY Change -101.13% -233.33% -101.58%
NET CHANGE
Cash From Operating Activities -8.000M -10.80M 15.90M
Cash From Investing Activities 174.4M 5.100M 18.60M
Cash From Financing Activities 200.0K -400.0K 300.0K
Net Change In Cash 166.6M -6.100M 34.80M
YoY Change -4066.67% -117.53% -46.13%
FREE CASH FLOW
Cash From Operating Activities -$8.000M -$10.80M $15.90M
Capital Expenditures -$3.100M -$9.100M -$9.500M
Free Cash Flow -$4.900M -$1.700M $25.40M
YoY Change -88.02% -106.69% -77.74%

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<div> <p style="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> <b>1. DESCRIPTION OF THE COMPANY</b></p> <p style="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> 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 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.</p> <p style="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> 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 (&#x201C;SBI&#x201D; and &#x201C;SBC&#x201D;, respectively). Through our schools, we are committed to providing high-quality education, enabling students to graduate and pursue rewarding career opportunities.</p> <p style="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> 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.</p> <p style="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> 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.</p> </div>
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ceco Remaining Lease Obligations Incurred
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CostsAndExpenses
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AllowanceForDoubtfulAccountsReceivableWriteOffs
15180000
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ProvisionForDoubtfulAccounts
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DepreciationAndAmortization
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InterestExpense
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3542000
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IncomeTaxExpenseBenefit
-13925000
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EducationalServicesAndFacilitiesExpense
117929000
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2511000
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0 shares
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RevenueFromTuitionAndRegistrationFees
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IncomeLossFromContinuingOperationsPerBasicAndDilutedShare
-0.65
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CY2013Q3 us-gaap Revenues
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CY2013Q3 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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CostsAndExpenses
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CY2013Q3 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
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CY2013Q3 us-gaap Provision For Doubtful Accounts
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CY2013Q3 us-gaap Depreciation And Amortization
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InterestExpense
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AssetImpairmentCharges
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IncomeTaxExpenseBenefit
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CY2013Q3 ceco Income Tax Reconciliation Valuation Allowances Foreign Rate Differences And Non Profit
IncomeTaxReconciliationValuationAllowancesForeignRateDifferencesAndNonProfit
0.010 pure
CY2013Q3 ceco Educational Services And Facilities Expense
EducationalServicesAndFacilitiesExpense
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2945000
CY2013Q3 ceco Shares That Have Anti Dilutive Effect On Diluted Net Income Per Share
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CY2013Q3 ceco Impairments Of Long Lived Assets Trade Name
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0
CY2013Q3 ceco Revenue From Tuition And Registration Fees
RevenueFromTuitionAndRegistrationFees
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CY2013Q3 ceco Remaining Lease Obligations Incurred
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214000
CY2013Q3 ceco Outstanding Liability On Performance Unit Awards To Be Settled In Cash
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100000
CY2013Q3 ceco Discontinued Operations Income Tax Expense Attributed To Change In Status Of Foreign Earnings
DiscontinuedOperationsIncomeTaxExpenseAttributedToChangeInStatusOfForeignEarnings
39900000

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