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Career Education's 3Q loss widens, shares falls

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The Associated Press | November 6, 2013 07:50 PM EST | AP

NEWS: Career Education Corp. said its loss widened in the third quarter from a year ago as enrollments to its schools and colleges fell. Its results missed Wall Street expectations and its stock fell 6 percent in after-hours trading Wednesday.

DETAILS: The company, which is based in Schaumburg, Ill., owns schools across the country, including American InterContinental University and the International Academy of Design & Technology.

It said total enrollments across all its schools fell 22 percent to 56,300 in the quarter and new enrollments fell 18 percent to 15,470.

NUMBERS: Career Education reported a loss of $87.1 million, or $1.30 per share, in the quarter ending Sept. 30. That compares with a loss of $33.1 million, or 50 cents per share, in the same quarter a year ago.

The latest quarter's loss from continuing operations was 65 cents a share, including an 11 cent per share asset-impairment charge, amounting to 54 cents on an adjusted basis.

Revenue fell 21 percent to $251.3 million from $316.2 million.

Analysts expected an adjusted loss of 53 cents per share and revenue of $255.5 million, according FactSet.

THE FUTURE: CEO Scott Steffey said the decline in new enrollments is slowing and the company is reducing expenses. "While much work remains to be done to continue stemming declines and return to growth, I'm pleased with the progress made to date," he said in a statement accompanying Career Education's earnings report.

STOCK: Down 31 cents, or 5.8 percent, to $5.05 in after-hours trading Wednesday following the earnings report. They rose 5 cents, or 1 percent, to $5.36 during regular trading hours.