Highlights of Hot Stock: Career Education Corporation (NASDAQ:CECO)

On Thursday, shares of Career Education Corporation (NASDAQ:CECO) plunged/surged -1.21% in trading session and finally closed at $-0.17. The company most recent volume stood at 74,377 shares as compared to average volume of 326,067 shares. Over the one year trading period, the stock has a high price of $19.07 and its low price is recorded at $10.40. The company has a market cap of $967.762M.
Career Education Corporation (CECO) recently stated operating and financial results for the second quarter and year to date ended June 30, 2018.

REVENUE

For the quarter and year to date ended June 30, 2018, total revenue was $142.0M and $290.1M representing a decrease of 2.9 percent and 5.9 percent, respectively, contrast to total revenue of $146.2M and $308.3M for the previous year quarter and year to date ended June 30, 2017. The decrease was primarily driven by declining revenues within our teach-out campuses. As of June 30, 2018, there are three campuses remaining to complete their teach-outs during 2018.

Total revenue for the University Group was $141.8M and $289.6M representing an raise of 3.2 percent and 1.4 percent, respectively, for the quarter and year to date ended June 30, 2018 as contrast to the previous year periods.

TOTAL AND NEW STUDENT ENROLLMENTS

For the second quarter of 2018, new student enrollments for the University Group raised 7.0 percent as contrast to the previous year quarter. The raise in new student enrollments was positively influenced by investments in student-serving processes, including our admissions and advising centers in Arizona as well as the academic calendar redesign within AIU.

OPERATING INCOME (LOSS)

For the quarter and year to date ended June 30, 2018, the Company recorded operating income of $11.3M and $31.8M, respectively, contrast to operating income of $9.1M and $18.9M for the quarter and year to date ended June 30, 2017, respectively. The University Group and Corporate recorded operating income of $23.5M and $50.3M for the quarter and year to date ended June 30, 2018, respectively, an raise of 1.0 percent and 8.4 percent as contrast to the respective previous year periods.

ADJUSTED OPERATING INCOME (LOSS)

The Company believes it is useful to present non-GAAP financial measures, which exclude certain important and non-cash items, as a means to understand the performance of its operations. (See tables below and the GAAP to non-GAAP reconciliation attached to this press release for further details.)

As shown in the table below, adjusted operating income for the University Group and Corporate was $26.8M and $56.1M for the quarter and year to date ended June 30, 2018, respectively. Adjusted operating loss for All Other Campuses was $3.0M and $6.4M for the quarter and year to date ended June 30, 2018, respectively.

BALANCE SHEET AND CASH FLOW

Net cash provided by operating activities was $3.7M contrast to net cash provided by operating activities of $4.8M for the quarters ended June 30, 2018 and 2017, respectively. For the year to date ended June 30, 2018, net cash flows provided by operating activities was $14.8M as contrast to net cash used of $34.2M for the year to date ended June 30, 2017.

As of June 30, 2018 and December 31, 2017, cash, cash equivalents, restricted cash and available-for-sale short-term investments totaled $190.1M and $180.1M, respectively.

OUTLOOK

The Company presently expects the following results, subject to the key assumptions identified below (see the GAAP to non-GAAP reconciliation for adjusted operating income (loss) attached to this press release for further details):

Financial Outlook:

• Full year 2018 – total company:

  • Operating income in the range of $74.5M to $81.5M
  • Adjusted operating income in the range of $99.0M to $106.0M in line with before provided outlook

• Third quarter 2018 – total company:

  • Operating income in the range of $21.0M to $22.5M
  • Adjusted operating income in the range of $23.5M to $25.0M

• Year end 2018 cash, cash equivalents, restricted cash and short-term investments (“cash balances”) to be in the range of $215M to $220M, updated to include the impact of legal settlements recorded during the second quarter of 2018.
• Operating income and adjusted operating income for the total company to grow in 2019 as contrast to 2018 and our ending cash balances for 2019 to raise as contrast to 2018.

During the last trading period, the peak price level of the share was $14.10; it means it is top price of day and down price level of the share was $13.81; it means minimum price of the day at which price share traded. The company operates through three sections: Colorado Technical University (CTU), American InterContinental University (AIU), and All Other Campuses. Its colleges and universities include AIU, CTU, Le Cordon Bleu institutions, Briarcliffe College, Harrington College of Design, and Sanford-Brown College.