Exhibit 99.1

CAREER EDUCATION CORPORATION REPORTS

RESULTS FOR FOURTH QUARTER AND FULL YEAR 2012

Schaumburg, Ill. (February 27, 2013) – Career Education Corporation (NASDAQ: CECO) today reported total revenue of $354.7 million, and a net loss of $61.5 million, or -$0.93 per diluted share, for the fourth quarter of 2012 compared to total revenue of $438.3 million and net loss of $120.4 million, or -$1.64 per diluted share, for the fourth quarter of 2011. For the full year 2012, total revenue of $1.49 billion, and net loss of $142.8 million, or -$2.15 per diluted share decreased from total revenue of $1.87 billion and net income of $18.6 million, or $0.25 per diluted share, for the full year 2011.

“While our financial results were unacceptable and unsustainable, 2012 was a year of renewal for Career Education,” said Steven H. Lesnik, chairman, president and chief executive officer. “We made significant progress on the regulatory and accreditation fronts, reinforced our leadership team, reorganized and reduced the footprint of our institutions, adopted a long-term strategy and continued our investment in cutting-edge education technology.”

“Looking to 2013, we will sustain our sharp focus on student outcomes, continue to re-engineer and right-size the organization and leverage our investment in ground-breaking learning technology. The Company’s return to growth and profitability will be rooted in exceptional educational experiences and strong outcomes for our students.”

The Company believes it is useful to present non-GAAP financial measures, which exclude certain significant items, as a means to understand the performance of its core business. On a non-GAAP basis, the loss per diluted share from continuing operations was -$0.35 for the fourth quarter 2012 as compared to earnings per diluted share of $0.32 for the fourth quarter 2011. For the year ended December 31, 2012, on a non-GAAP basis, the loss per diluted share from continuing operations was -$0.44 as compared to earnings per diluted share of $2.14 for the year ended December 31, 2011. (See tables below and the GAAP to non-GAAP reconciliation attached to this press release for further details.)

CONSOLIDATED RESULTS

Quarter Ended December 31, 2012

• Total revenue was $354.7 million for the fourth quarter of 2012, a 19.1 percent decrease from $438.3 million for the fourth quarter of 2011.

• Operating losses of $77.2 million and $167.9 million were reported for the fourth quarters of 2012 and 2011, respectively. The operating margin was -21.8 percent for the fourth quarter of 2012 versus -38.3 percent for the fourth quarter of 2011.

• The loss from continuing operations for the quarter ended December 31, 2012 was $58.7 million, or -$0.89 per diluted share compared to the loss from continuing operations of $141.6 million, or -$1.93 per diluted share, for the quarter ended December 31, 2011.

CEC ANNOUNCES 4Q12 RESULTS …PG 2

• The operating results for the quarters ended December 31, 2012 and 2011 include the following significant items:

	Significant Items (In Millions)		(Loss) Earnings per Diluted Share Impact
Quarter Ended December 31, 2012
Goodwill and Intangible Asset Impairments	$	12.1	$	0.12
Asset Impairments		29.3		0.29
Severance and Related Costs		13.1		0.13
TOTAL	$	54.5	$	0.54
Quarter Ended December 31, 2011
Goodwill and Intangible Asset Impairments	$	188.8	$	2.25
TOTAL	$	188.8	$	2.25

• During the fourth quarter of 2012, the Company recorded non-cash trade name impairment charges of $12.1 million, primarily attributable to Culinary Arts ($8.1) and Health Education ($3.5). In addition, the Company recorded $29.3 million of non-cash asset impairments and $13.1 million of severance and related costs primarily in connection with both our campus closure and reduction in force actions. During the fourth quarter of 2011, the Company recorded $168.4 million of non-cash goodwill impairment applicable to Culinary Arts ($73.7), Health Education ($64.6), and Transitional Schools ($30.1), and a $20.4 million non-cash trade name impairment within Culinary Arts.

• Excluding the significant items in the table above, the operating loss was $22.7 million in the fourth quarter of 2012 compared to operating income of $20.9 million in the fourth quarter of 2011. The operating margin was -6.4 percent during the fourth quarter of 2012 as compared to 4.8 percent during the fourth quarter of 2011.

Year to Date Ended December 31, 2012

• Total revenue was $1.49 billion for the year ended December 31, 2012, compared to $1.87 billion for the year ended December 31, 2011.

• The operating loss for the year ended December 31, 2012 was $183.8 million, versus operating income of $40.7 million for the year ended December 31, 2011. The operating margin decreased to -12.3 percent for the year ended December 31, 2012, from 2.2 percent for the year ended December 31, 2011.

• The loss from continuing operations for the year ended December 31, 2012, was $134.9 million, or -$2.03 per diluted share, compared to the loss from continuing operations of $3.3 million, or -$0.04 per diluted share, for the year ended December 31, 2011.

CEC ANNOUNCES 4Q12 RESULTS …PG 3

• The operating results for the years ended December 31, 2012 and 2011 include the following significant items:

	Significant Items (In Millions)			(Loss) Earnings per Diluted Share Impact
Year Ended December 31, 2012
Goodwill and Intangible Asset Impairments	$	96.5		$	1.33
Asset Impairments		30.5			0.30
Severance and Related Costs		14.9			0.15
Insurance Recoveries		(19.0	)		(0.19	)
TOTAL	$	122.9		$	1.59
Year Ended December 31, 2011
Goodwill and Intangible Asset Impairments	$	191.5		$	2.24
Insurance Recoveries		(7.0	)		(0.06	)
TOTAL	$	184.5		$	2.18

• During the year ended December 31, 2012, the Company recorded non-cash goodwill impairment charges of $83.4 million, primarily related to $41.9 million within Health Education and $40.8 million within Design & Technology, as well as non-cash trade name impairments of $13.1 million, primarily within Culinary Arts ($8.1), Health Education ($3.5), and Transitional Schools ($1.0). In addition, the Company recorded $30.5 million of non-cash asset impairments and $14.9 million of severance and related costs primarily related to both our campus closure and reduction in force actions. The operating results for the year ended December 31, 2011 primarily included the $188.8 million of non-cash goodwill and intangible asset impairment charges recorded in the fourth quarter of 2011 as well as $2.5 million of non-cash accreditation rights impairment.

• During the year ended December 31, 2012, the Company recorded a $19.0 million insurance recovery related to the settlement of claims under certain insurance policies. During the year ended December 31, 2011, the Company recorded a $7.0 million insurance recovery related to previously settled legal matters.

• Excluding the significant items in the table above, the operating loss was $60.9 million for the year ended December 31, 2012 and the operating income was $225.2 million for the year ended December 31, 2011. Operating margin was -4.1 percent and 12.0 percent for the years ended December 31, 2012 and 2011, respectively.

CONSOLIDATED CASH FLOWS AND FINANCIAL POSITION

Cash Flows

Net cash flows used in operating activities totaled $16.8 million for the year ended December 31, 2012, compared to net cash flows provided by operating activities of $230.5 million for the year ended December 31, 2011.

Capital expenditures decreased to $37.9 million during the year ended December 31, 2012, from $78.3 million for the year ended December 31, 2011. Capital expenditures represented 2.5 percent and 4.1 percent of total revenue of continuing and discontinued operations during the years ended December 31, 2012 and 2011, respectively.

CEC ANNOUNCES 4Q12 RESULTS …PG 4

Financial Position

As of December 31, 2012 and December 31, 2011, cash and cash equivalents and short-term investments totaled $402.3 million and $441.2 million, respectively. Included in the 2012 amount is $97.9 million of restricted cash, the majority of which is for amounts collateralized under our Credit Agreement as of December 31, 2012.

Credit Agreements

During the fourth quarter of 2012, the Company entered into a revolving credit facility pursuant to a Credit Agreement with BMO Harris Bank N.A. The revolving credit facility under the Credit Agreement is scheduled to mature on January 31, 2014. This Credit Agreement replaced our previous U.S. Credit Agreement, which expired on October 31, 2012. As of December 31, 2012, we have borrowed the maximum amount of $80.0 million under the Credit Agreement.

Stock Repurchase Program

During the fourth quarter of 2012, the Company did not repurchase any shares of its common stock. During the year ended December 31, 2012, the Company repurchased approximately 6.1 million shares of its common stock for approximately $56.4 million at an average price of $9.29 per share.

As of December 31, 2012, approximately $183.3 million was available under the Company’s authorized stock repurchase program to repurchase outstanding shares of our common stock. Stock repurchases under this program may be made on the open market or in privately negotiated transactions from time to time, depending on various factors, including market conditions and corporate and regulatory requirements.

STUDENT POPULATION AND NEW STUDENT STARTS

Student Population

Total student population by reportable segment as of December 31, 2012 and 2011, was as follows:

	As of December 31,				% Change
	2012		2011		2012 vs. 2011
Student Population
CTU		21,600		23,900	-10%
AIU		14,200		17,100	-17%
Total University Schools		35,800		41,000	-13%
Health Education		8,800		14,000	-37%
Culinary Arts		8,500		12,200	-30%
Design & Technology		5,400		8,000	-33%
Total Career Schools		22,700		34,200	-34%
International		11,400		11,100	3%
Subtotal		69,900		86,300	-19%
Transitional Schools		6,100		12,500	-51%
Total Student Population		76,000		98,800	-23%

CEC ANNOUNCES 4Q12 RESULTS …PG 5

New Student Starts

New student starts by reportable segment for the quarters ended December 31, 2012 and 2011, were as follows:

	For the Quarters Ended December 31,				% Change
	2012		2011		2012 vs. 2011
New Student Starts
CTU		5,040		6,620	-24%
AIU		3,370		4,620	-27%
Total University Schools		8,410		11,240	-25%
Health Education		1,180		2,290	-48%
Culinary Arts (1)		2,810		1,320	113%
Design & Technology		490		710	-31%
Total Career Schools		4,480		4,320	4%
International		1,940		2,150	-10%
Subtotal		14,830		17,710	-16%
Transitional Schools		840		2,440	-66%
Total New Student Starts		15,670		20,150	-22%

(1) The fourth quarter 2012 had one additional new student start as compared to the previous year quarter. Excluding this timing impact, the change in new student starts for Culinary Arts would have been -16%.

CEC ANNOUNCES 4Q12 RESULTS …PG 6

CONFERENCE CALL INFORMATION

Career Education Corporation will host a conference call on Thursday, February 28, 2013 at 10:00 a.m. Eastern time. Interested parties can access the live webcast of the conference call at www.careered.com in the Investor Relations section of the website. Participants can also listen to the conference call by dialing 800-580-9478 (domestic) or 630-691-2769 (international) and citing code 34130002. Please log-in or dial-in at least 10 minutes prior to the start time to ensure a connection. An archived version of the webcast will be accessible for 90 days at www.careered.com in the Investor Relations section of the website. A replay of the call will also be available for seven days by calling 888-843-7419 (domestic) or 630-652-3042 (international) and citing code 34130002.

ABOUT CAREER EDUCATION CORPORATION

The colleges, schools and universities that are part of the Career Education Corporation (“CEC”) family offer high-quality education to a diverse student population of more than 75,000 students across the world in a variety of career-oriented disciplines through online, on-ground and hybrid learning program offerings. The more than 90 campuses that serve these students are located throughout the United States and in France, the United Kingdom and Monaco, and offer doctoral, master’s, bachelor’s and associate degrees and diploma and certificate programs.

CEC is an industry leader whose institutions are recognized globally. Those institutions include, among others, American InterContinental University (“AIU”); Brooks Institute; Colorado Technical University (“CTU”); Harrington College of Design; INSEEC Group (“INSEEC”) Schools; International University of Monaco (“IUM”); International Academy of Design & Technology (“IADT”); Le Cordon Bleu North America (“LCB”); and Sanford-Brown Institutes and Colleges. Through its schools, CEC is committed to providing high-quality education, enabling students to graduate and pursue rewarding career opportunities.

For more information, see CEC’s website at www.careered.com. The website includes a detailed listing of individual campus locations and web links to CEC’s colleges, schools, and universities.

Except for the historical and present factual information contained herein, the matters set forth in this release, including statements identified by words such as “anticipate,” “believe,” “plan,” “expect,” “intend,” “project,” “will,” “potential” and similar expressions, are forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on information currently available to us and are subject to various assumptions, risks, uncertainties and other factors that could cause our results of operations, financial condition, cash flows, performance, business prospects and opportunities to differ materially from those expressed in, or implied by, these statements. Except as expressly required by the federal securities laws, we undertake no obligation to update or revise such factors or any of the forward-looking statements contained herein to reflect future events, developments or changed circumstances, or for any other reason. These risks and uncertainties, the outcomes of which could materially and adversely affect our financial condition and operations, include, but are not limited to, the following: declines in enrollment; our ability to implement our strategic initiatives and effective cost reduction strategies; our continued compliance with and eligibility to participate in Title IV Programs under the Higher Education Act of 1965, as amended, and the regulations thereunder (including the “90-10 Rule” and financial responsibility standards prescribed by the U.S. Department of Education), as well as national and regional accreditation standards and state regulatory requirements; our ability to successfully defend litigation and other claims brought against us; rulemaking by the U.S. Department of Education and increased focus by the U.S. Congress and governmental agencies on for-profit education institutions; and changes in the overall U.S. or global economy. Further information about these and other relevant risks and uncertainties may be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and its subsequent filings with the Securities and Exchange Commission.

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CEC ANNOUNCES 4Q12 RESULTS …PG 7

CONTACT

Investors: Matthew Tschanz

Director, Corporate Finance

(847) 585-3899

Media: Mark Spencer

Director, Corporate Communications

(847) 585-3802

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In thousands)

	As of December 31, (1)
	2012			2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents, unrestricted	$	240,560		$	280,592
Restricted cash		97,878			—
Short-term investments		63,876			160,607
Total cash and cash equivalents and short-term investments		402,314			441,199
Student receivables, net		68,940			59,960
Receivables, other, net		3,845			2,896
Prepaid expenses		44,440			62,176
Inventories		8,575			11,334
Deferred income tax assets, net		7,092			10,837
Other current assets		4,422			17,871
Assets of discontinued operations		3,933			4,205
Total current assets		543,561			610,478
NON-CURRENT ASSETS:
Property and equipment, net		277,571			349,719
Goodwill		133,025			212,626
Intangible assets, net		61,681			76,286
Student receivables, net		6,832			9,311
Deferred income tax assets, net		48,070			2,673
Other assets, net		33,333			30,122
Assets of discontinued operations		18,630			24,905
TOTAL ASSETS	$	1,122,703		$	1,316,120
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term borrowings and current maturities of capital lease obligations	$	80,211		$	844
Accounts payable		38,440			48,362
Accrued expenses:
Payroll and related benefits		46,586			41,853
Advertising and production costs		20,963			17,717
Other		44,651			67,077
Deferred tuition revenue		112,038			144,696
Liabilities of discontinued operations		9,826			8,894
Total current liabilities		352,715			329,443
NON-CURRENT LIABILITIES:
Capital lease obligations, net of current maturities		—			207
Deferred rent obligations		95,164			102,034
Other liabilities		29,931			40,365
Liabilities of discontinued operations		33,103			37,980
Total non-current liabilities		158,198			180,586
STOCKHOLDERS’ EQUITY:
Preferred stock		—			—
Common stock		816			820
Additional paid-in capital		596,826			590,965
Accumulated other comprehensive loss		(4,785	)		(5,136	)
Retained earnings		232,921			375,717
Cost of shares in treasury		(213,988	)		(156,275	)
Total stockholders’ equity		611,790			806,091
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,122,703		$	1,316,120

(1) In November 2012, the Company completed the teach out activities for LCB Pittsburgh, PA. As a result, all current and prior period results include LCB Pittsburgh as a component of discontinued operations.

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In thousands, except per share amounts and percentages)

	For the Quarter Ended December 31, (1)
	2012			% of Total Revenue		2011			% of Total Revenue
REVENUE:
Tuition and registration fees	$	349,243			98.5%	$	429,392			98.0%
Other		5,448			1.5%		8,866			2.0%
Total revenue		354,691					438,258
OPERATING EXPENSES:
Educational services and facilities		141,654			39.9%		155,018			35.4%
General and administrative		227,836			64.2%		240,831			55.0%
Depreciation and amortization		21,071			5.9%		21,449			4.9%
Goodwill and asset impairment		41,346			11.7%		188,848			43.1%
Total operating expenses		431,907			121.8%		606,146			138.3%
Operating loss		(77,216	)		-21.8%		(167,888	)		-38.3%
OTHER INCOME (EXPENSE):
Interest income		400			0.1%		627			0.1%
Interest expense		(184	)		-0.1%		(443	)		-0.1%
Miscellaneous income		483			0.1%		3			0.0%
Total other income		699			0.2%		187			0.0%
PRETAX LOSS		(76,517	)		-21.6%		(167,701	)		-38.3%
Benefit from income taxes		(17,771	)		-5.0%		(26,063	)		-5.9%
LOSS FROM CONTINUING OPERATIONS		(58,746	)		-16.6%		(141,638	)		-32.3%
(Loss) income from discontinued operations, net of tax		(2,746	)		-0.8%		21,189			4.8%
NET LOSS		(61,492	)		-17.3%		(120,449	)		-27.5%
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
Foreign currency translation adjustments		4,056					(4,746	)
Unrealized gains (losses) on investments		174					(80	)
Total other comprehensive income (loss)		4,230					(4,826	)
COMPREHENSIVE LOSS	$	(57,262	)			$	(125,275	)
NET LOSS PER SHARE - DILUTED:
Loss from continuing operations	$	(0.89	)			$	(1.93	)
(Loss) income from discontinued operations		(0.04	)				0.29
Net loss per share	$	(0.93	)			$	(1.64	)
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING		66,199					73,429

(1) In November 2012, the Company completed the teach out activities for LCB Pittsburgh, PA. As a result, all current and prior period results include LCB Pittsburgh as a component of discontinued operations.

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In thousands, except per share amounts and percentages)

	For the Year Ended December 31, (1)
	2012			% of Total Revenue		2011			% of Total Revenue
REVENUE:
Tuition and registration fees	$	1,460,959			98.1%	$	1,816,746			97.0%
Other		28,310			1.9%		56,623			3.0%
Total revenue		1,489,269					1,873,369
OPERATING EXPENSES:
Educational services and facilities		571,169			38.4%		626,158			33.4%
General and administrative		894,185			60.0%		932,643			49.8%
Depreciation and amortization		80,658			5.4%		82,350			4.4%
Goodwill and asset impairment		127,007			8.5%		191,524			10.2%
Total operating expenses		1,673,019			112.3%		1,832,675			97.8%
Operating (loss) income		(183,750	)		-12.3%		40,694			2.2%
OTHER INCOME (EXPENSE):
Interest income		1,826			0.1%		1,376			0.1%
Interest expense		(271	)		0.0%		(563	)		0.0%
Miscellaneous income		483			0.0%		1,972			0.1%
Total other income		2,038			0.1%		2,785			0.1%
PRETAX (LOSS) INCOME		(181,712	)		-12.2%		43,479			2.3%
(Benefit from) provision for income taxes		(46,806	)		-3.1%		46,740			2.5%
LOSS FROM CONTINUING OPERATIONS		(134,906	)		-9.1%		(3,261	)		-0.2%
(Loss) income from discontinued operations, net of tax		(7,890	)		-0.5%		21,834			1.2%
NET (LOSS) INCOME		(142,796	)		-9.6%		18,573			1.0%
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
Foreign currency translation adjustments		503					(5,015	)
Unrealized losses on investments		(152	)				(40	)
Total other comprehensive income (loss)		351					(5,055	)
COMPREHENSIVE (LOSS) INCOME	$	(142,445	)			$	13,518
NET (LOSS) INCOME PER SHARE—DILUTED:
Loss from continuing operations	$	(2.03	)			$	(0.04	)
(Loss) income from discontinued operations		(0.12	)				0.29
Net (loss) income per share	$	(2.15	)			$	0.25
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING		66,475					74,498

(1) In November 2012, the Company completed the teach out activities for LCB Pittsburgh, PA. As a result, all current and prior period results include LCB Pittsburgh as a component of discontinued operations.

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATING INCOME (LOSS) BY QUARTER

(In thousands)

	For the 2012 Quarters Ended, (1)
	March 31		June 30			September 30			December 31			Full Year
REVENUE:
Tuition and registration fees	$	422,935	$	362,480		$	326,301		$	349,243		$	1,460,959
Other		10,495		6,080			6,287			5,448			28,310
Total revenue		433,430		368,560			332,588			354,691			1,489,269
OPERATING EXPENSES:
Educational services and facilities		151,625		144,837			133,053			141,654			571,169
General and administrative		214,017		225,265			227,067			227,836			894,185
Depreciation and amortization		19,798		19,659			20,130			21,071			80,658
Goodwill and asset impairment		83		85,578			—			41,346			127,007
Total operating expenses		385,523		475,339			380,250			431,907			1,673,019
OPERATING INCOME (LOSS)	$	47,907	$	(106,779	)	$	(47,662	)	$	(77,216	)	$	(183,750	)

	For the 2011 Quarters Ended, (1)
	March 31		June 30		September 30		December 31			Full Year
REVENUE:
Tuition and registration fees	$	505,656	$	466,588	$	415,110	$	429,392		$	1,816,746
Other		21,903		14,967		10,887		8,866			56,623
Total revenue		527,559		481,555		425,997		438,258			1,873,369
OPERATING EXPENSES:
Educational services and facilities		163,594		156,376		151,170		155,018			626,158
General and administrative		235,348		223,340		233,124		240,831			932,643
Depreciation and amortization		19,576		19,721		21,604		21,449			82,350
Goodwill and asset impairment		—		2,676		—		188,848			191,524
Total operating expenses		418,518		402,113		405,898		606,146			1,832,675
OPERATING INCOME (LOSS)	$	109,041	$	79,442	$	20,099	$	(167,888	)	$	40,694

(1) In November 2012, the Company completed the teach out activities for LCB Pittsburgh, PA. As a result, all current and prior period results include LCB Pittsburgh as a component of discontinued operations.

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	For the Year Ended December 31,
	2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$	(142,796	)	$	18,573
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Goodwill and asset impairment		127,007			191,524
Loss on sale of student receivables		720			—
Depreciation and amortization expense		81,813			85,367
Bad debt expense		40,022			55,721
Compensation expense related to share-based awards		9,687			14,831
Gain on sale of business		—			(27,085	)
Gain on bargain purchase		(669	)		—
Loss (gain) on disposition of property and equipment		301			(1,711	)
Deferred income taxes		(42,014	)		14,226
Changes in operating assets and liabilities
Accrued expenses and deferred rent obligations		(19,473	)		(74,075	)
Deferred tuition revenue		(35,882	)		2,595
Student receivables, net of allowance for doubtful accounts		(39,995	)		(51,749	)
Other operating assets and liabilities		4,481			2,233
Net cash (used in) provided by operating activities		(16,798	)		230,450
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale investments		(147,085	)		(189,258	)
Sales of available-for-sale investments		246,464			188,322
Purchases of property and equipment		(37,944	)		(78,333	)
Proceeds on the sale of assets		—			6,259
Proceeds on the sale of business, net of cash divested		—			16,670
Business acquisitions, net of acquired cash		(1,721	)		(9,851	)
Other		(1,359	)		(40	)
Net cash provided by (used in) investing activities		58,355			(66,231	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of treasury stock		(56,431	)		(150,445	)
Issuance of common stock		1,599			4,370
Tax benefit associated with stock option exercises		—			376
Payments of assumed loans upon business acquisition		(318	)		—
Payments of contingent consideration		(5,818	)		(16,355	)
Borrowings from credit facility		80,000			—
Restricted cash		(97,878	)		—
Payments of capital lease obligations		(844	)		(989	)
Net cash used in financing activities		(79,690	)		(163,043	)
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS:		(1,837	)		(10,066	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(39,970	)		(8,890	)
DISCONTINUED OPERATIONS CASH ACTIVITY INCLUDED ABOVE:
Add: Cash balance of discontinued operations, beginning of the year		—			28,844
Less: Cash balance of discontinued operations, end of the year		62			—
CASH AND CASH EQUIVALENTS, beginning of the year		280,592			260,638
CASH AND CASH EQUIVALENTS, end of the year	$	240,560		$	280,592

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED SELECTED SEGMENT INFORMATION

(In thousands, except percentages)

	For the Quarter Ended December 31,
	2012			2011
REVENUE:
CTU (1)	$	89,283		$	97,161
AIU		65,223			77,111
Total University Schools		154,506			174,272
Health Education (1)		41,559			60,326
Culinary Arts (2)		49,694			64,296
Design & Technology (1)		31,888			41,285
Total Career Schools		123,141			165,907
International		49,934			47,257
Corporate and Other		5			(54	)
Subtotal		327,586			387,382
Transitional Schools (1)		27,105			50,876
Total	$	354,691		$	438,258
OPERATING (LOSS) INCOME:
CTU (1)	$	13,344		$	25,494
AIU		(1,727	)		6,354
Total University Schools		11,617			31,848
Health Education (1) (3)		(13,628	)		(63,382	)
Culinary Arts (2) (4)		(21,863	)		(94,708	)
Design & Technology (1)		(6,715	)		(3,857	)
Total Career Schools		(42,206	)		(161,947	)
International		16,856			16,017
Corporate and Other		(9,425	)		(13,452	)
Subtotal		(23,158	)		(127,534	)
Transitional Schools (1) (5)		(54,058	)		(40,354	)
Total	$	(77,216	)	$	(167,888	)
OPERATING (LOSS) MARGIN:
CTU		14.9%			26.2%
AIU		-2.6%			8.2%
Total University Schools		7.5%			18.3%
Health Education		-32.8%			-105.1%
Culinary Arts		-44.0%			-147.3%
Design & Technology		-21.1%			-9.3%
Total Career Schools		-34.3%			-97.6%
International		33.8%			33.9%
Corporate and Other		NM			NM
Subtotal		-7.1%			-32.9%
Transitional Schools		-199.4%			-79.3%
Total		-21.8%			-38.3%

(1) Prior period financial results have been recast to report the schools that are currently being taught out within the Transitional Schools segment.

(2) In November 2012, the Company completed the teach out activities for LCB Pittsburgh, PA. As a result, all current and prior period results include LCB Pittsburgh as a component of discontinued operations.

(3) Fourth quarter 2012 includes a $3.5 million non-cash trade name impairment charge related to the Sanford-Brown and Missouri College trade names; fourth quarter 2011 includes a $64.6 million non-cash goodwill impairment charge.

(4) Fourth quarters 2012 and 2011 include non-cash trade name impairment charges of $8.1 million and $20.4 million, respectively. In addition, fourth quarter 2011 includes a $73.7 million non-cash goodwill impairment charge.

(5) Fourth quarter 2012 includes a $28.3 million non-cash asset impairment charge; fourth quarter 2011 includes a $30.1 million non-cash goodwill impairment charge.

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED SELECTED SEGMENT INFORMATION

(In thousands, except percentages)

	For the Year Ended December 31,
	2012			2011
REVENUE:
CTU (1)	$	363,935		$	415,411
AIU		304,208			365,203
Total University Schools		668,143			780,614
Health Education (1)		181,577			252,330
Culinary Arts (2)		224,842			303,135
Design & Technology (1)		141,542			186,879
Total Career Schools		547,961			742,344
International		128,568			125,887
Corporate and Other		55			(399	)
Subtotal		1,344,727			1,648,446
Transitional Schools (1)		144,542			224,923
Total	$	1,489,269		$	1,873,369
OPERATING (LOSS) INCOME:
CTU (1)	$	54,928		$	111,119
AIU		20,896			72,738
Total University Schools		75,824			183,857
Health Education (1) (3)		(78,288	)		(47,562	)
Culinary Arts (2) (4)		(33,854	)		(63,452	)
Design & Technology (1) (5)		(57,627	)		14,223
Total Career Schools		(169,769	)		(96,791	)
International		21,131			24,746
Corporate and Other (6)		(7,618	)		(30,132	)
Subtotal		(80,432	)		81,680
Transitional Schools (1) (7)		(103,318	)		(40,986	)
Total	$	(183,750	)	$	40,694
OPERATING (LOSS) MARGIN:
CTU		15.1%			26.7%
AIU		6.9%			19.9%
Total University Schools		11.3%			23.6%
Health Education		-43.1%			-18.8%
Culinary Arts		-15.1%			-20.9%
Design & Technology		-40.7%			7.6%
Total Career Schools		-31.0%			-13.0%
International		16.4%			19.7%
Corporate and Other		NM			NM
Subtotal		-6.0%			5.0%
Transitional Schools		-71.5%			-18.2%
Total		-12.3%			2.2%

(1) Prior period financial results have been recast to report the schools that are currently being taught out within the Transitional Schools segment.

(2) In November 2012, the Company completed the teach out activities for LCB Pittsburgh, PA. As a result, all current and prior period results include LCB Pittsburgh as a component of discontinued operations.

(3) 2012 expenses include non-cash goodwill and trade name impairment charges of $41.9 million and $3.5 million, respectively. 2011 includes non-cash goodwill impairment of $64.6 million and $3.7 million of non-cash impairment and amortization charges related to accreditation rights.

(4) 2012 expenses include a non-cash trade name impairment of $8.1 million. 2011 expenses include $73.7 million and $20.4 million of non-cash goodwill and trade name impairments, respectively.

(5) 2012 expenses include a $40.8 million non-cash goodwill impairment charge.

(6) During 2012, a $19.0 million insurance recovery was recorded related to the settlement of claims under certain insurance policies. In 2011, a $7.0 million insurance recovery, related to previously settled legal matters, was recorded.

(7) 2012 expenses include $29.3 million of non-cash asset impairment charges, $1.0 million impairment related to the Sanford-Brown trade name, and a $0.7 million non-cash goodwill impairment charge. 2011 includes non-cash goodwill impairment of $30.1 million and $1.4 million of non-cash impairment and amortization charges related to accreditation rights.

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS ⁽¹⁾

(In millions, except share and per share amounts)

	For the Quarter Ended December 31,
	2012						2011
	Operating Loss			Loss per Diluted Share (2)			Operating  (Loss) Income			(Loss) Earnings per Diluted Share (2)
As Reported	$	(77.2	)	$	(0.89	)	$	(167.9	)	$	(1.93	)
Reconciling Items:
Goodwill and Intangible Asset Impairments (3)(4)		12.1			0.12			188.8			2.25
Asset Impairments (5)		29.3			0.29			—			—
Severance and Related Costs (6)		13.1			0.13			—			—
Adjusted to Exclude Significant Items	$	(22.7	)	$	(0.35	)	$	20.9		$	0.32
Diluted Weighted Average Shares Outstanding					66,199						73,429
	For the Year Ended December 31,
	2012						2011
	Operating Loss			Loss per Diluted Share (2)			Operating Income			(Loss) Earnings per Diluted Share (2)
As Reported	$	(183.8	)	$	(2.03	)	$	40.7		$	(0.04	)
Reconciling Items:
Goodwill and Intangible Asset Impairments (4)(7)		96.5			1.33			191.5			2.24
Asset Impairments (5)		30.5			0.30			—			—
Severance and Related Costs (6)		14.9			0.15			—			—
Insurance Recoveries (8)		(19.0	)		(0.19	)		(7.0	)		(0.06	)
Adjusted to Exclude Significant Items	$	(60.9	)	$	(0.44	)	$	225.2		$	2.14
Diluted Weighted Average Shares Outstanding					66,475						74,498

(1) The Company believes it is useful to present non-GAAP financial measures which exclude certain significant items as a means to understand the performance of its core business. As a general matter, the Company uses non-GAAP financial measures in conjunction with results presented in accordance with GAAP to help analyze the performance of its core business, assist with preparing the annual operating plan, and measure performance for some forms of compensation. In addition, the Company believes that non-GAAP financial information is used by analysts and others in the investment community to analyze the Company’s historical results and to provide estimates of future performance and that failure to report non-GAAP measures could result in a misplaced perception that the Company’s results have underperformed or exceeded expectations.

Non-GAAP financial measures when viewed in a reconciliation to corresponding GAAP financial measures, provides an additional way of viewing the Company’s results of operations and the factors and trends affecting the Company’s business. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding financial results presented in accordance with GAAP.

(2) (Loss) earnings per diluted share is based on (loss) income from continuing operations and assumes a 35% tax rate for each deductible item.

(3) Fourth quarter 2012 includes non-cash trade name impairment charges of $12.1 million; primarily attributable to Culinary Arts ($8.1) and Health Education ($3.5).

(4) Fourth quarter 2011 primarily includes non-cash goodwill impairment charges totaling $168.4 million, of which $120.6 is non-deductible for income tax purposes, applicable to Culinary Arts ($73.7), Health Education ($64.6) and Transitional Schools ($30.1), as well as a $20.4 million non-cash trade name impairment charge within Culinary Arts. Year to date 2011 also includes a $2.5 million non-cash impairment charge related to accreditation rights.

(5) In 2012, non-cash asset impairment charges of $30.5 million were recorded, primarily within Transitional Schools ($29.3) for schools being taught out, of which $29.3 million was recorded in the fourth quarter.

(6) In 2012, $14.9 million of severance and related costs were recorded in connection with both our reduction in force and campus closure actions, within Transitional Schools ($7.6), AIU ($1.8), Health Education ($1.6), Corporate ($1.6), Design & Technology ($1.4), Culinary Arts ($0.6), and CTU ($0.3). Of the 14.9 million, $13.1 million was recorded in the fourth quarter.

(7) 2012 includes non-cash goodwill impairment charges of $83.4 million, of which $73.6 million is non-deductible for income tax purposes, primarily applicable to Health Education ($41.9) and Design & Technology ($40.8), as well as a non-cash trade name impairment of $13.1 million, primarily within Culinary Arts ($8.1), Health Education ($3.5) and Transitional Schools ($1.0).

(8) 2012 includes a $19.0 million insurance recovery related to the settlement of claims under certain insurance policies. 2011 includes a $7.0 million insurance recovery related to previously settled legal matters.