Notable Runner: Career Education Corporation’s (NASDAQ: CECO)

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Career Education Corporation's, NASDAQ: CECO

On 18 Jan 19, Career Education Corporation’s (NASDAQ: CECO) shares price traded between $12.50 and $12.87 during the last trading session upbeat/downbeat with +2.07% at $12.85. The shares recorded trading volume 188,064 shares as compared to its average volume of 309,224 shares. The company has 69.76M shares outstanding and market value of 896.429M.

Career Education Corporation (CECO) recently stated operating and financial results for the third quarter and year to date ended September 30, 2018.

YEAR TO DATE 2018 HIGHLIGHTS

  • Total company operating income of $51.1M as contrast to $23.4M in the previous year to date, with the improvement primarily driven by the substantial completion of teach-outs
  • University Group revenue raised 1.9 percent or $8.0M as contrast to the previous year to date, driven by total enrollment growth at both AIU and CTU
  • University Group new student enrollments raised 6.6 percent as contrast to the previous year to date

“University Group student enrollments continue to experience growth that we believe is primarily driven by organic investments aimed at improving student on boarding and learning experiences and improved execution within our operating processes,” stated Todd Nelson, President and Chief Executive Officer. “Momentum within the student inquiry and application process remains encouraging and our ongoing investments in technology and student-serving operations are working well to serve the demand we are experiencing.”

REVENUE

For the quarter and year to date ended September 30, 2018, total revenue was $145.7M and $435.8M representing an raise of 0.5 percent and a decrease of 3.9 percent, respectively, contrast to total revenue of $145.0M and $453.3M for the previous year quarter and year to date ended September 30, 2017, respectively. The decrease for the current year to date was driven by declining revenues within our teach-out campuses. As of September 30, 2018, there are two campuses remaining which are predictable to complete their teach-outs during the fourth quarter of 2018.

TOTAL AND NEW STUDENT ENROLLMENTS

Total student enrollments grew 5.8 percent for the University Group, on an aggregate basis, as of September 30, 2018 as contrast to the previous year driven by new student enrollment growth. For the third quarter and year to date 2018, new student enrollments for the University Group raised 39.0 percent and 6.6 percent, respectively, as contrast to the previous year periods.

OPERATING INCOME (LOSS)

For the quarter and year to date ended September 30, 2018, the Company recorded operating income of $19.3M and $51.1M, respectively, contrast to operating income of $4.5M and $23.4M for the quarter and year to date ended September 30, 2017, respectively. The improvement in operating income performance is primarily driven by substantial completion of the campus teach-outs.

NET INCOME AND EARNINGS PER SHARE

For the quarter and year to date ended September 30, 2018, the Company recorded net income of $14.9M and $41.1M, respectively, contrast to net income of $3.0M and $12.5M for the quarter and year to date ended September 30, 2017, respectively.

The Company recorded diluted earnings per share (“EPS”) of $0.21 and $0.58 for the quarter and year to date ended September 30, 2018, respectively, as contrast to $0.04 and $0.18 for the previous year quarter and year to date, respectively. Adjusted diluted earnings per share was $0.25 and $0.76 for the quarter and year to date ended September 30, 2018, respectively, as contrast to $0.10 and $0.28 for the previous year quarter and year to date, respectively.

CECO has price-to-cash ratio of 4.66 and price to sale ratio of 1.52. The company net profit margin is -0.60% and gross profit margin is 80.40%. A look on the firm performance, its monthly performance is 0.63% and a quarterly performance of -8.54%.

 

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