Looking to sell options after the move up...

PR NewswireAll PR Newswire news

Student Population Up 25.9%
New Student Starts Up 22.2%

SANTA ANA, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Corinthian Colleges, Inc. COCO reported financial results today for the first quarter ended September 30, 2009. The results exceeded our previous guidance for start growth, revenue and diluted earnings per share.


"During the balance of fiscal 2010 we expect our student population growth to continue to be derived from several sources, including implementation of new programs at existing campuses, online enrollment, facility expansions, new branch campuses, and the high school recruiting program," Waller said.



Comparing the first quarter of fiscal 2010 with the same quarter of the prior year:
(Note: Data is for continuing operations only.)

* Net revenue was $388.5 million versus $289.6 million, up 34.2%.
* Total student population at September 30, 2009 was 93,493 versus 74,265 at September 30, 2008, an increase of 25.9%.
* Total student starts were 36,737 versus 30,075, an increase of 22.2%.
* Operating income was $53.9 million, compared with $10.1 million.
* Income from continuing operations was $32.9 million, compared with $5.7 million.
* Diluted earnings per share were $0.37 versus $0.07.

Q1 10 Financial Review

Educational services expenses were 55.3% of revenue in Q1 10 versus 61.1% in Q1 09. The improvement was mainly the result of a higher student population and the resulting leverage of facilities costs and a decrease in bad debt expense. Bad debt expense was 6.4% of revenue in Q1 10, lower than our previous guidance of 6.7% - 7.1%, and down substantially from 8.9% in Q1 09.



General and administrative expenses were 10.2% of revenue in Q1 10 versus 10.1% in Q1 09.

Operating margin - As a result of the factors outlined above, our operating margin from continuing operations was 13.9% in Q1 10 versus 3.5% in Q1 09.

Cash and cash equivalents totaled $225.3 million at September 30, 2009, compared with $160.3 million at June 30, 2009.

Cash flow from operations, including discontinued operations, was $80.7 million in Q1 10 versus $27.7 million in Q1 09. The increase in cash flow is primarily due to an increase in net income, and the timing of cash receipts and payments related to working capital, primarily prepaid tuition and taxes payable.

Capital expenditures were $14.3 million in Q1 10 compared with $10.9 million in Q1 09.



In the second quarter ending December 31, 2009, we expect start growth of 10% - 12% compared with the second quarter of the prior year; revenue to range from $395 - $405 million; and diluted earnings per share to be approximately $0.37 - $0.40.

We are increasing guidance for fiscal 2010. We now expect start growth of 11% - 13% in fiscal 2010 compared with fiscal 2009, versus previous guidance of 10% - 12%. We expect revenue to range from $1.62 - $1.64 billion, versus previous guidance of $1.58 -$1.60 billion; and diluted earnings per share to range from $1.55 to $1.60 versus $1.30 - $1.36 previously.