Career Education Corporation Reports Results for First Quarter 2013

  Career Education Corporation Reports Results for First Quarter 2013

Business Wire

SCHAUMBURG, Ill. -- May 6, 2013

Career Education Corporation (NASDAQ: CECO) today reported total revenue of
$340.5 million, and a net loss of $15.2 million, or -$0.23 per diluted share,
for the first quarter of 2013 compared to total revenue of $431.4 million and
net income of $52.1 million, or $0.78 per diluted share, for the first quarter
of 2012.

“Since joining Career Education a month ago, I believe even more strongly that
this organization has the right tools to achieve high levels of academic and
financial success,” said Scott W. Steffey, president and chief executive
officer. “We are taking the necessary steps to right-size and re-engineer our
organization to become more efficient and effective, better reflecting the
support structure needed at our current enrollment levels.”

“While we implement these changes, we must continue to retool and expand our
academic programs for our domestic schools, foster continued educational
innovation like our new adaptive learning technology, and improve our efforts
and success in attracting, enrolling and retaining students. As we right-size
and re-engineer the domestic schools we will also continue fostering growth in
our highly successful International schools, and ensure that our Transitional
Schools segment serves students with quality and integrity while teaching out
those schools,” Steffey said. “We’re moving in the right direction and I look
forward to leading this organization.”

CONSOLIDATED RESULTS

Quarter Ended March 31, 2013

  *Total revenue was $340.5 million for the first quarter of 2013, a 21.1
    percent decrease from $431.4 million for the first quarter of 2012.
  *An operating loss of $18.1 million was reported for the first quarter of
    2013 versus operating income of $47.9 million for the first quarter of
    2012. The operating margin was -5.3 percent for the first quarter of 2013
    versus 11.1 percent for the first quarter of 2012. Operating income for
    the first quarter of 2012 included a $19.0 million ($0.18 per diluted
    share) insurance recovery related to the settlement of claims under
    certain insurance policies.
  *The loss from continuing operations for the first quarter of 2013 was
    $14.5 million, or -$0.22 per diluted share compared to the income from
    continuing operations of $41.7 million, or $0.62 per diluted share, for
    the first quarter of 2012.
  *The net loss for the first quarter of 2013 included a $6.7 million ($0.10
    per diluted share) loss related to the pending sale of the American
    InterContinental University campus in London, England which is reported in
    other (expense) income. The sale closed on April 1, 2013.

CONSOLIDATED CASH FLOWS AND FINANCIAL POSITION

Cash Flows

Net cash flows used in operating activities totaled $14.2 million for the
quarter ended March 31, 2013, compared to net cash flows provided by operating
activities of $17.4 million for the quarter ended March 31, 2012.

Capital expenditures decreased to $4.1 million for the quarter ended March 31,
2013, from $12.3 million for the quarter ended March 31, 2012. Capital
expenditures represented 1.2 percent and 2.8 percent of total revenue of
continuing and discontinued operations during the quarters ended March 31,
2013 and 2012, respectively.

Financial Position

As of March 31, 2013 and December 31, 2012, cash and cash equivalents and
short-term investments totaled $299.2 million and $402.3 million,
respectively. During the first quarter of 2013, the Company repaid the $80
million of outstanding borrowings under its Credit Agreement. Accordingly,
restricted cash balances decreased to $11.4 million at March 31, 2013 from
$97.9 million at December 31, 2012.

STUDENT POPULATION AND NEW STUDENT STARTS

Student Population

Total student population by reportable segment as of March 31, 2013 and 2012,
was as follows:

                                    As of March 31,          % Change
                                    2013        2012         2013 vs. 2012
Student Population
    CTU                             21,500       23,500       -9        %
    AIU                             15,500       18,900       -18       %
    Total University Schools        37,000       42,400       -13       %
                                                              
    Health Education                9,500        13,600       -30       %
    Culinary Arts                   8,600        12,500       -31       %
    Design & Technology             5,600        7,800        -28       %
    Total Career Schools            23,700       33,900       -30       %
                                                              
    International ^(1)              10,000       8,000        25        %
    Subtotal                        70,700       84,300       -16       %
                                                              
    Transitional Schools            4,300        11,100       -61       %
    Total Student Population        75,000       95,400       -21       %
                                                              
   
                                                              
    Student population as of March 31, 2013 includes approximately 900
(1) students enrolled in the International schools acquired the second and
    fourth quarters of 2012. Excluding the impact of these acquisitions,
    student population increased 14%.
    

New Student Starts

New student starts by reportable segment for the quarters ended March 31, 2013
and 2012, were as follows:

                                  For the Quarter Ended
                                  March 31,                   % Change
                                  2013          2012          2013 vs. 2012
New Student Starts
    CTU ^(1)                      4,520          5,670         -20      %
    AIU ^(1)                      4,610          6,640         -31      %
    Total University Schools      9,130          12,310        -26      %
                                                               
    Health Education              2,780          3,160         -12      %
    Culinary Arts                 2,810          3,160         -11      %
    Design & Technology           980            1,080         -9       %
    Total Career Schools          6,570          7,400         -11      %
                                                               
    International ^(2)            1,080          740           46       %
    Subtotal                      16,780         20,450        -18      %
                                                               
    Transitional Schools          70             2,630         NM
    ^(3)
    Total New Student Starts      16,850         23,080        -27      %
   
                                                 
    During 2012 and 2013, CTU and AIU had established certain programs to
    enable students to assess their readiness to commit to enrolling in
(1) college-level courses. Excluding the impact of these readiness programs,
    the change in new student starts for CTU and AIU is -10% and -22%,
    respectively.
                             
    The first quarter of 2013 was favorably impacted when compared to the
    prior year quarter due to the timing of program offerings in the first
(2) quarter of 2013 versus the prior year. Excluding the impact of these
    items, the change in new student starts for International would have been
    22%.
                                                               
    Campuses within the Transitional Schools segment no longer enroll new
(3) students; students who re-enter after 365 days are reported as new student
    starts.
    

CONFERENCE CALL INFORMATION

Career Education Corporation will host a conference call on Tuesday, May 7,
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 34607968. 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 34607968.

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 approximately 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 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 Section21E 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
December31, 2012 and its subsequent filings with the Securities and Exchange
Commission.

CAREER EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)
                                                      
                                 March 31,                 December 31,
                                 2013 ^(1)                 2012 ^(1)
                                                           
    ASSETS
CURRENT ASSETS:
    Cash and cash
    equivalents,                 $    223,816              $   240,559
    unrestricted
    Restricted cash                   11,408                   97,878
    Short-term investments           63,951                 63,876      
    Total cash and cash
    equivalents and                   299,175                  402,313
    short-term investments
                                                           
    Student receivables,              50,420                   68,885
    net
    Receivables, other, net           4,413                    3,845
    Prepaid expenses                  57,710                   44,386
    Inventories                       7,500                    8,514
    Deferred income tax               7,125                    7,092
    assets, net
    Other current assets              6,845                    4,422
    Assets of discontinued           3,716                  4,104       
    operations
    Total current assets             436,904                543,561     
                                                           
NON-CURRENT ASSETS:
    Property and equipment,           259,121                  277,416
    net
    Goodwill                          131,725                  133,025
    Intangible assets, net            61,127                   61,670
    Student receivables,              6,652                    6,832
    net
    Deferred income tax               48,128                   47,900
    assets, net
    Other assets, net                 32,324                   33,331
    Assets of discontinued           18,643                 18,968      
    operations
TOTAL ASSETS                     $    994,624             $   1,122,703   
                                                           
    LIABILITIES AND
    STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
    Short-term borrowings
    and current maturities       $    103                  $   80,211
    of capital lease
    obligations
    Accounts payable                  42,601                   38,419
    Accrued expenses:
    Payroll and related               46,124                   46,586
    benefits
    Advertising and                   20,634                   20,963
    production costs
    Other                             41,171                   44,630
    Deferred tuition                  83,718                   112,018
    revenue
    Liabilities of                   12,306                 9,888       
    discontinued operations
    Total current                    246,657                352,715     
    liabilities
                                                           
NON-CURRENT LIABILITIES:
    Deferred rent                     93,260                   95,146
    obligations
    Other liabilities                 30,057                   29,853
    Liabilities of                   28,178                 33,199      
    discontinued operations
    Total non-current                151,495                158,198     
    liabilities
                                                           
STOCKHOLDERS' EQUITY:
    Preferred stock                   -                        -
    Common stock                      818                      816
    Additional paid-in                598,903                  596,826
    capital
    Accumulated other                 (6,527      )            (4,785      )
    comprehensive loss
    Retained earnings                 217,718                  232,921
    Cost of shares in                (214,440    )           (213,988    )
    treasury
    Total stockholders'              596,472                611,790     
    equity
TOTAL LIABILITIES AND            $    994,624             $   1,122,703   
STOCKHOLDERS' EQUITY
                                                      
                                                           
    During the first quarter of 2013 and the fourth quarter of 2012, the
(1) Company completed the teach-out of SBC Hazelwood and LCB Pittsburgh,
    respectively. As a result, all current and prior period results for these
    campuses are reflected as components 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 March 31, ^ (1)
                                              % of                    % of
                                              Total                   Total
                                2013          Revenue     2012        Revenue
                                                                      
REVENUE:
      Tuition and               $ 335,285     98.5%       $           97.6%
      registration fees                                   420,885
      Other                     5,198         1.5%        10,479      2.4%
          Total revenue         340,483                   431,364
                                                                      
OPERATING EXPENSES:
      Educational services      132,883       39.0%       150,739     34.9%
      and facilities
      General and               206,419       60.6%       212,973     49.4%
      administrative
      Depreciation and          19,125        5.6%        19,713      4.6%
      amortization
      Goodwill and asset        157           0.0%        83          0.0%
      impairment
          Total operating       358,584       105.3%      383,508     88.9%
          expenses
Operating (loss) income         (18,101)      -5.3%       47,856      11.1%
                                                                      
OTHER (EXPENSE) INCOME:
      Interest income           255           0.1%        270         0.1%
      Interest expense          (706)         -0.2%       (37)        0.0%
      Loss on pending sale      (6,712)       -2.0%       -           0.0%
      of business
      Miscellaneous expense     (466)         -0.1%       -           0.0%
          Total other           (7,629)       -2.2%       233         0.1%
          (expense) income
                                                                      
PRETAX (LOSS) INCOME            (25,730)      -7.6%       48,089      11.1%
                                                                      
(Benefit from) provision for    (11,239)      -3.3%       6,430       1.5%
income taxes
                                                                      
(LOSS) INCOME FROM              (14,491)      -4.3%       41,659      9.7%
CONTINUING OPERATIONS
                                                                      
(Loss) income from
discontinued operations, net    (712)         -0.2%       10,417      2.4%
of tax
                                                                      
NET (LOSS) INCOME               (15,203)      -4.5%       52,076      12.1%
                                                                      
OTHER COMPREHENSIVE (LOSS)
INCOME, net of tax:
      Foreign currency
      translation               (1,743)                   5,440
      adjustments
      Unrealized gains
      (losses) on               1                         (12)
      investments
          Total other
          comprehensive         (1,742)                   5,428
          (loss) income
                                                                      
COMPREHENSIVE (LOSS) INCOME     $ (16,945)                $ 57,504
                                                                      
NET (LOSS) INCOME PER SHARE
- DILUTED:
      (Loss) income from        $ (0.22)                  $ 0.62
      continuing operations
      (Loss) income from
      discontinued              (0.01)                    0.16
      operations
      Net (loss) income per     $ (0.23)                  $ 0.78
      share
                                                                      
DILUTED WEIGHTED AVERAGE        66,428                    66,960
SHARES OUTSTANDING
                                                            
                                                                      
      During the first quarter of 2013 and the fourth quarter of 2012, the
(1)   Company completed the teach-out of SBC Hazelwood and LCB Pittsburgh,
      respectively. As a result, all current and prior period results for
      these campuses are reflected as components of discontinued operations.
      

CAREER EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
                                                  
                                                     For the Quarter Ended
                                                     March 31,
                                                     2013         2012
                                                                   
  CASH FLOWS FROM OPERATING ACTIVITIES:
    Net (loss) income                                $ (15,203 )   $ 52,076
    Adjustments to reconcile net (loss) income to
    net cash (used in) provided by operating
    activities:
    Goodwill and asset impairment                      157           83
    Depreciation and amortization expense              19,295        20,106
    Bad debt expense                                   6,702         9,390
    Compensation expense related to share-based        1,775         2,780
    awards
    Loss on pending sale of business                   6,712         -
    Loss on disposition of property and equipment      94            32
    Changes in operating assets and liabilities       (33,729 )    (67,115 )
  Net cash (used in) provided by operating            (14,197 )    17,352  
  activities
                                                                   
  CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchases of available-for-sale investments        (13,540 )     (40,300 )
    Sales of available-for-sale investments            13,465        40,438
    Purchases of property and equipment                (4,077  )     (12,303 )
    Payments of cash upon sale of business             (1,947  )     -
    Other                                             (1      )    (12     )
  Net cash used in investing activities               (6,100  )    (12,177 )
                                                                   
  CASH FLOWS FROM FINANCING ACTIVITIES:
    Purchase of treasury stock                         -             (56,431 )
    Issuance of common stock                           304           477
    Payments of contingent consideration               -             (3,555  )
    Payment on borrowings                              (80,000 )     -
    Change in restricted cash                          86,470        -
    Payments of capital lease obligations             (74     )    (547    )
  Net cash provided by (used in) financing            6,700       (60,056 )
  activities
                                                                   
  EFFECT OF FOREIGN CURRENCY EXCHANGE RATE
    CHANGES ON CASH AND CASH EQUIVALENTS:             (3,194  )    3,677   
                                                                   
  NET DECREASE IN CASH AND CASH EQUIVALENTS            (16,791 )     (51,204 )
  DISCONTINUED OPERATIONS CASH ACTIVITY INCLUDED
  ABOVE:
    Add: Cash balance of discontinued operations,      63            -
    beginning of the period
    Less: Cash balance of discontinued operations,     15            -
    end of the period
  CASH AND CASH EQUIVALENTS, beginning of the         240,559     280,592 
  period
  CASH AND CASH EQUIVALENTS, end of the period       $ 223,816    $ 229,388 

                                                    
CAREER EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED SELECTED SEGMENT INFORMATION
(In thousands, except percentages)
                                                          
                                For the Quarter Ended March 31,
                                2013                      2012 ^(1)
                                                          
REVENUE:
    CTU                         $    90,209               $    96,329
    AIU                             66,299                  88,940     
    Total University                156,508                 185,269    
    Schools
                                                          
    Health Education                 38,021                    54,092
    Culinary Arts ^(2)               45,938                    62,838
    Design & Technology             30,289                  41,801     
    Total Career Schools            114,248                 158,731    
                                                          
    International                    49,677                    42,829
    Corporate and Other             -                       14         
    Subtotal                        320,433                 386,843    
                                                          
    Transitional Schools            20,050                  44,521     
    ^(2)
    Total                       $    340,483             $    431,364    
                                                          
OPERATING (LOSS) INCOME:
    CTU                         $    15,912               $    19,079
    AIU                             3,146                   14,661     
    Total University                19,058                  33,740     
    Schools
                                                          
    Health Education                 (11,310    )              (1,672     )
    Culinary Arts ^(2)               (12,137    )              1,266
    Design & Technology             (7,156     )             334        
    Total Career Schools            (30,603    )             (72        )
                                                          
    International                    13,480                    13,125
    Corporate and Other             (6,368     )             12,582     
    Subtotal                        (4,433     )             59,375     
                                                          
    Transitional Schools            (13,668    )             (11,519    )
    ^(2)
    Total                       $    (18,101    )         $    47,856     
                                                          
OPERATING (LOSS) MARGIN:
    CTU                              17.6       %              19.8       %
    AIU                             4.7        %             16.5       %
    Total University                12.2       %             18.2       %
    Schools
                                                          
    Health Education                 -29.7      %              -3.1       %
    Culinary Arts                    -26.4      %              2.0        %
    Design & Technology             -23.6      %             0.8        %
    Total Career Schools            -26.8      %             0.0        %
                                                          
    International                    27.1       %              30.6       %
    Corporate and Other             NM                      NM         
    Subtotal                        -1.4       %             15.3       %
                                                          
    Transitional Schools            -68.2      %             -25.9      %
    Total                           -5.3       %             11.1       %
                                                     
                                                          
(1) Prior period financial results have been recast to report the schools that
    are currently being taught out within the Transitional Schools segment.
                                                          
    During the first quarter of 2013 and the fourth quarter of 2012, the
(2) Company completed the teach-out of SBC Hazelwood and LCB Pittsburgh,
    respectively. As a result, all current and prior period results for these
    campuses are reflected as components of discontinued operations.
    

CAREER EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED SELECTED SEGMENT INFORMATION BY QUARTER - 2012
(In thousands)
                                                                       
                                                                             
                    For the 2012 Quarters Ended ^(1)
                    March 31      June 30        September     December 31   Full Year
                                                 30
REVENUE:
    CTU             $ 96,329      $ 91,839       $ 86,484      $ 89,283      $ 363,935
    AIU              88,940      78,841       71,204      65,223      304,208   
    Total
    University       185,269    170,680     157,688    154,506     668,143   
    Schools
                                                                             
    Health            54,092        45,457         40,469        41,559        181,577
    Education
    Culinary Arts     62,838        57,895         54,415        49,694        224,842
    ^(2)
    Design &         41,801      34,724       33,129      31,888      141,542   
    Technology
    Total Career     158,731    138,076     128,013    123,141     547,961   
    Schools
                                                                             
    International     42,829        21,140         14,665        49,934        128,568
    Corporate and    14          20           16          5           55        
    Other
    Subtotal         386,843    329,916     300,382    327,586     1,344,727 
                                                                             
    Transitional     44,521      37,561       31,574      26,922      140,578   
    Schools ^(2)
    Total           $ 431,364   $ 367,477    $ 331,956   $ 354,508    $ 1,485,305 
                                                                             
OPERATING (LOSS)
INCOME:
    CTU             $ 19,079      $ 12,181       $ 10,324      $ 13,344      $ 54,928
    AIU              14,661      6,878        1,084       (1,727  )    20,896    
    Total
    University       33,740     19,059      11,408     11,617      75,824    
    Schools
                                                                             
    Health            (1,672  )     (50,230  )     (12,758 )     (13,628 )     (78,288   )
    Education
    Culinary Arts     1,266         (3,121   )     (10,136 )     (21,863 )     (33,854   )
    ^(2)
    Design &         334         (45,006  )    (6,240  )    (6,715  )    (57,627   )
    Technology
    Total Career     (72     )   (98,357  )   (29,134 )   (42,206 )    (169,769  )
    Schools
                                                                             
    International     13,125        (2,406   )     (6,444  )     16,856        21,131
    Corporate and    12,582      (5,373   )    (5,402  )    (9,425  )    (7,618    )
    Other
    Subtotal         59,375     (87,077  )   (29,572 )   (23,158 )    (80,432   )
                                                                             
    Transitional     (11,519 )    (19,158  )    (17,520 )    (53,251 )    (101,448  )
    Schools ^(2)
    Total           $ 47,856    $ (106,235 )  $ (47,092 )  $ (76,409 )   $ (181,880  )
                                                                  
                                                                             
(1) Prior period financial results have been recast to report the schools that are
    currently being taught out within the Transitional Schools segment.
                    
    During the first quarter of 2013 and the fourth quarter of 2012, the Company completed
(2) the teach-out of SBC Hazelwood and LCB Pittsburgh, respectively. As a result, all
    current and prior period results for these campuses are reflected as components of
    discontinued operations.
    

CAREER EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED SELECTED SEGMENT INFORMATION BY QUARTER - 2012
                                                                
                                                                       
                        As of the 2012 Quarters Ended ^(1)
                        March      June 30    September    December
                        31                    30           31
STUDENT POPULATION:
    CTU                 23,500     22,600     22,000       21,600
    AIU                 18,900     14,500     14,900       14,200
    Total
    University          42,400     37,100     36,900       35,800
    Schools
                                                                       
    Health              13,600     10,200     10,600       8,800
    Education
    Culinary Arts       12,500     12,000     11,200       8,500
    ^(2)
    Design &            7,800      6,600      6,500        5,400
    Technology
    Total Career        33,900     28,800     28,300       22,700
    Schools
                                                                       
    International       8,000      2,700      8,800        11,400
    Subtotal            84,300     68,600     74,000       69,900
                                                                       
    Transitional        11,100     8,700      7,500        6,100
    Schools ^(2)
    Total               95,400     77,300     81,500       76,000
                                                                       
                        For the 2012 Quarters Ended ^(1)
                        March      June 30    September    December    Full
                        31                    30           31          Year
NEW STUDENT STARTS:
    CTU                 5,670      5,800      5,150        5,040       21,660
    AIU                 6,640      3,050      3,700        3,370       16,760
    Total
    University          12,310     8,850      8,850        8,410       38,420
    Schools
                                                                       
    Health              3,160      1,470      3,310        1,180       9,120
    Education
    Culinary Arts       3,160      2,410      3,920        2,810       12,300
    ^(2)
    Design &            1,080      610        1,060        490         3,240
    Technology
    Total Career        7,400      4,490      8,290        4,480       24,660
    Schools
                                                                       
    International       740        510        4,750        1,940       7,940
    Subtotal            20,450     13,850     21,890       14,830      71,020
                                                                       
    Transitional        2,630      1,150      1,720        840         6,340
    Schools ^(2)
    Total               23,080     15,000     23,610       15,670      77,360
                                                            
                                                                       
(1) Prior period financial results have been recast to report the schools that
    are currently being taught out within the Transitional Schools segment.
                                                                       
    During the first quarter of 2013 and the fourth quarter of 2012, the
(2) Company completed the teach-out of SBC Hazelwood and LCB Pittsburgh,
    respectively. As a result, all current and prior period results for these
    campuses are reflected as components of discontinued operations.
    

Contact:

Career Education Corporation
Investors:
Matthew Tschanz
Director, Corporate Finance
(847) 585-3899
or
Media:
Mark Spencer
Director, Corporate Communications
(847) 585-3802
 
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