SCHAUMBURG, Ill.--(BUSINESS WIRE)--Aug 1, 2018--Career Education Corporation (NASDAQ: CECO) today reported operating and financial results for the second quarter and year to date ended June 30, 2018.
“We finished the first half with good momentum in key operating metrics, driven by organic investments aimed at improving student onboarding and learning experiences,” said Todd Nelson, President and Chief Executive Officer. “Given our positive momentum we will continue to pursue further investments in technology and student-serving processes and initiatives. Overall, we are taking a measured approach to balance our objectives of responsible and sustainable growth with our commitments to improve student experiences, retention and academic outcomes and we remain confident in the long-term academic value proposition of our Universities.”
For the quarter and year to date ended June 30, 2018, total revenue was $142.0 million and $290.1 million representing a decrease of 2.9 percent and 5.9 percent, respectively, compared to total revenue of $146.2 million and $308.3 million for the prior 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 $141.8 million and $289.6 million representing an increase of 3.2 percent and 1.4 percent, respectively, for the quarter and year to date ended June 30, 2018 as compared to the prior year periods.
TOTAL AND NEW STUDENT ENROLLMENTS
For the second quarter of 2018, new student enrollments for the University Group increased 7.0 percent as compared to the prior year quarter . The increase in new student enrollments was positively impacted 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 $11.3 million and $31.8 million, respectively, compared to operating income of $9.1 million and $18.9 million for the quarter and year to date ended June 30, 2017, respectively. The University Group and Corporate recorded operating income of $23.5 million and $50.3 million for the quarter and year to date ended June 30, 2018, respectively, an increase of 1.0 percent and 8.4 percent as compared to the respective prior year periods.
ADJUSTED OPERATING INCOME (LOSS)
The Company believes it is useful to present non-GAAP financial measures, which exclude certain significant 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 $26.8 million and $56.1 million for the quarter and year to date ended June 30, 2018, respectively. Adjusted operating loss for All Other Campuses was $3.0 million and $6.4 million for the quarter and year to date ended June 30, 2018, respectively.
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