EX-99.1 2 dex991.htm COMPANY'S CONSOLIDATED STATEMENTS OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2007 Company's consolidated statements of income for the year ended December 31, 2007

Exhibit 99.1

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

(In thousands, except per share amounts)

 

     For the Year Ended December 31, 2007  
     (Audited)     (Unaudited)  
     As Reported     Adjustment (1)     Reclassified  

REVENUE:

       

Tuition and registration fees

    $ 1,595,326     $ 115,829     $ 1,711,155  

Other

      79,556       5,023       84,579  
                        

Total revenue

      1,674,882       120,852       1,795,734  
                        

OPERATING EXPENSES:

       

Educational services and facilities

      593,659       70,032       663,691  

General and administrative

      876,801       75,384       952,185  

Depreciation and amortization

      78,183       —         78,183  

Goodwill and asset impairment

      5,821       30,944       36,765  
                        

Total operating expenses

      1,554,464       176,360       1,730,824  
                        

Operating income

      120,418       (55,508 )     64,910  
                        

OTHER INCOME (EXPENSE):

       

Interest income

      18,948       (1 )     18,947  

Interest expense

      (1,185 )     20       (1,165 )

Share of affiliate earnings

      4,735       —         4,735  

Miscellaneous income (expense)

      761       (19 )     742  
                        

Total other income, net

      23,259       —         23,259  
                        

Income from continuing operations before provision for income taxes

      143,677       (55,508 )     88,169  

PROVISION / (BENEFIT) FOR INCOME TAXES

      48,175       (19,559 )     28,616  
                        

INCOME FROM CONTINUING OPERATIONS

    $ 95,502     $ (35,949 )   $ 59,553  

DISCONTINUED OPERATIONS:

       

Loss from discontinued operations, net of income tax benefit

      (35,949 )     35,949       —    
                        

NET INCOME

    $ 59,553     $ —       $ 59,553  
                        

NET INCOME PER SHARE - DILUTED:

       

Income from continuing operations

    $ 1.01     $ (0.38 )   $ 0.63  

Loss from discontinued operations

      (0.38 )     0.38       —    
                        

Net income

    $ 0.63     $ —       $ 0.63  
                        

DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING:

      94,407       —         94,407  
                        

 

(1) In February 2008, the Company announced plans to teach-out all programs at nine of the eleven campuses previously held for sale. The remaining two campuses will be converted to Sanford-Brown schools. As the eleven campuses are no longer being held for sale, the results of operations will be reflected within continuing operations. This adjustment reclassifies the results of operations of these eleven campuses from discontinued operations into continuing operations.