Corinthian Colleges Posts Record-Setting Third Fiscal Quarter Results

- Revenues increase 49%

- Operating profits up 53%

- Student population grows 38%

- Net income increases 54%



Apr 26, 2001, 01:00 ET from Corinthian Colleges, Inc.

    SANTA ANA, Calif., April 26 /PRNewswire/ -- Corinthian Colleges, Inc.
 (Nasdaq:   COCO) today reported new highs for revenues, net income, operating
 profits, starts and earnings per share for its third fiscal quarter and nine
 months ended March 31, 2001.
     Revenues for the third quarter of fiscal 2001 increased 48.6% to
 $65.2 million, up from $43.9 million for the third quarter of last year.  For
 the nine months year-to-date, revenues increased 42.5% to $177.8 million, up
 from the $124.7 million reported in the first nine months of fiscal 2000.  The
 record revenues reflect increases in both student population and average
 tuition rates.  As of March 31, 2001, total student population increased
 38.1% over the prior year.  The average tuition rate per student rose 8.9% in
 the third quarter and 10.0% for the nine months year-to-date period.
     Income from operations for the third quarter of fiscal 2001 increased
 53.2% to $11.6 million, or 17.7% of revenues, compared with $7.5 million, or
 17.2% of revenues, for the third quarter of fiscal 2000.  For the nine months
 year-to-date in fiscal 2001, income from operations increased 66.0% to
 $29.0 million, or 16.3% of revenues, compared with $17.5 million, or 14.0% of
 revenues, for the same period last year.
     Net income for the third quarter of fiscal 2001 increased 53.7% to
 $7.2 million, compared with $4.7 million in the third quarter of last year.
 For the nine months year-to-date in fiscal 2001, net income increased 66.7% to
 $18.2 million, compared with $10.9 million for the nine-month period last
 year.
     Diluted earnings per common share for the third quarter of fiscal 2001
 increased 50.0% to $0.33, compared with $0.22 for the third quarter of last
 year.  For the nine months year-to-date period, diluted earnings per common
 share increased 61.5% to $0.84, compared with $0.52 for the same period a year
 ago.  In December 2000, Corinthian completed a two-for-one split of all
 outstanding shares of its common stock.  Accordingly, all shares and earnings
 per common share amounts have been restated as if the common stock split had
 occurred at the beginning of each year presented.
     At March 31, 2001, total student population increased 38.1% to 26,085 from
 18,886 students at March 31, 2000 and same school student population increased
 12.9% to 21,257.  Total starts, or new student enrollments, for the third
 quarter of fiscal 2001 increased 41.1% to 9,132, and same school starts
 increased 8.3% over the third quarter of last year.  For the first nine months
 in fiscal 2001, total starts increased 32.0% to 24,625 and same school starts
 increased 9.1% over starts for the same period of last year.
     The weighted average number of shares outstanding in the third quarter and
 year-to-date period of fiscal 2001 increased, primarily reflecting the impact
 of 400,000 shares (200,000 shares on a pre-split basis) sold by the company in
 its secondary stock offering completed in October 2000.  On a split-adjusted
 basis, the weighted average number of diluted common shares outstanding was
 21,964,000 and 20,871,000 for the third quarters of fiscal 2001 and 2000,
 respectively.  For the nine months year-to-date period, the weighted average
 number of diluted common shares outstanding was 21,647,000 and 20,832,000 for
 fiscal 2001 and 2000, respectively.
     David G. Moore, Corinthian's president and chief executive officer, said,
 "We are pleased with the results of operations for the third quarter and the
 first nine months in fiscal 2001, especially when we review the significant
 growth from January through March 2001.  During the third quarter, we opened
 two branch campuses, one in Rancho Cucamonga in January and the second in
 Dearborn, Michigan in March.  These represent the second and third branch
 campuses opened this fiscal year and we are currently on track to open our
 fourth fiscal 2001 branch campus in Skokie, Illinois this June.
     "In February, we completed the acquisition of Grand Rapids Education
 Center, Inc. and integrated its three campuses into the Corinthian family.
 Grand Rapids was our third acquisition this fiscal year and, when coupled with
 the second quarter acquisitions of Educorp and Computer Training Academy,
 added nine campuses during the fiscal year.  We believe these acquisitions and
 our new branch campuses will provide operating and marketing synergies with
 our existing locations and will increase our capacity to grow revenue and
 income.  Most importantly, these new campuses further strengthen and enhance
 our ability to provide the highest quality education and career preparation to
 a greater number of students.
     "During the third quarter and the first nine months of fiscal 2001, our
 valued employees have diligently implemented our fiscal 2001 operating plan
 and we have already achieved a substantial number of our fiscal 2001
 initiatives.  Corinthian's continued success, and the success of our students
 and graduates is a reflection of our commitment to the quality of our programs
 and the dedication of our instructors and staff."
 
     Business Outlook
     The following statements are based on our current expectations.  These
 statements are forward looking and actual results may differ materially as a
 result of the factors more specifically referenced below.  These statements of
 expected results of operations include the results of the previously announced
 new branch campuses that we expect to open after the date of this news
 release.  Except as otherwise specifically noted, these expectations are for
 the full fiscal year ending June 30, 2001.
 
     -- While we expect to sustain revenue growth over the next several years
 in the 20% to 25% range, we believe that revenues for fiscal 2001 will grow
 approximately 42% over revenues for fiscal 2000; we currently expect that
 revenues for fiscal 2002 will increase between 25% and 30% over fiscal 2001;
 
     -- Growth in quarterly revenues for the remainder of fiscal 2001 and for
 fiscal 2002 will be influenced by the timing of branch openings and
 acquisitions completed in fiscal 2000 and fiscal 2001;
 
     -- We expect to be able to leverage educational services expenses and
 general and administrative expenses against our anticipated revenue increases
 to improve operating margin percentages for fiscal 2001 to between 16.0% and
 17.0% of revenues and between 16.5% and 17.5% of revenues for fiscal 2002;
 
     -- We believe our effective income tax rate will remain relatively
 constant at approximately 41%; and
 
     -- Based on current operating trends, we expect fourth quarter fiscal 2001
 earnings to be between $0.33 and $0.35 per diluted share.
 
     About Corinthian Colleges, Inc.
     Corinthian Colleges, Inc. is one of the largest for-profit post-secondary
 education companies in the United States.  As of April 25, 2001, the company
 operated 55 colleges in 19 states, including 17 in California and nine in
 Florida.  Corinthian serves the large and growing segment of the population
 seeking to acquire career-oriented education to become more qualified and
 marketable in today's increasingly demanding workplace environment.
 
     Certain statements in this press release may be deemed to be
 forward-looking statements under the Private Securities Litigation Reform Act
 of 1995.  The company intends that all such statements be subject to the
 "safe-harbor" provisions of that Act.  Such statements may include, but are
 not limited to, the company's discussion of its plan to open new branch
 campuses in Skokie, Illinois, marketing and operating synergies associated
 with acquired campuses, and the discussion of projections under the heading
 "Business Outlook".  Many important factors may cause the company's actual
 results to differ materially from those discussed in any such forward-looking
 statements, including changes in student perceptions, increased competition,
 the effectiveness of the company's advertising and promotional efforts,
 changes in the regulatory environment, integration risks associated with
 acquisitions and opening branch campuses, general economic and market
 conditions and the other risks and uncertainties described in the Company's
 filings with the Securities and Exchange Commission.  The historical results
 achieved by the Company are not necessarily indicative of its future
 prospects.  The Company undertakes no obligation to publicly update or revise
 any forward-looking statements, whether as a result of new information, future
 events or otherwise.
     A conference call pertaining to the above news is scheduled for 8:00 a.m.
 Pacific Time (11:00 a.m. Eastern Time) on Friday, April 27.   Access to the
 call is available through the Internet at www.cci.edu and
 www.streetfusion.com.   Rebroadcast of the call will also be available for two
 weeks at both Web sites.
 
                           Corinthian Colleges, Inc.
                     (In thousands, except per share data)
 
 
     Consolidated Statements
      of Income                For the three months      For the nine months
     (Unaudited):                 ended March 31,           ended March 31,
                               2001          2000         2001          2000
 
     Net revenues           $65,197       $43,873     $177,758      $124,701
     Operating expenses
      Educational services   34,903        22,988       94,268        67,569
      General and
       administration         5,257         4,128       15,326        12,269
      Marketing and
       advertising           13,479         9,212       39,139        27,373
     Total operating
      expenses               53,639        36,328      148,733       107,211
     Income from operations  11,558         7,545       29,025        17,490
     Interest expense
      (income), net            (481)         (420)      (1,644)       (1,160)
     Income before provision
      for income taxes       12,039         7,965       30,669        18,650
     Provision for
      income taxes            4,875         3,305       12,515         7,759
     Net income              $7,164        $4,660      $18,154       $10,891
 
     Income per common share:
      Basic                   $0.34         $0.23        $0.86         $0.53
      Diluted                 $0.33         $0.22        $0.84         $0.52
 
     Weighted average number
      of common shares
      outstanding:
      Basic                  21,182        20,693       20,999        20,692
      Diluted                21,964        20,871       21,647        20,832
 
 
     Selected Balance Sheet Data
                                                     March 31,       June 30,
                                                        2001           2000
                                                   (Unaudited)     (Unaudited)
 
     Cash, restricted cash and
      marketable securities                           $28,646        $29,003
     Receivables, net (including long-term
      notes receivable)                                29,063         18,284
     Current assets                                    65,893         50,736
     Total assets                                     131,519         95,233
     Current liabilities                               29,137         21,667
     Long-term liabilities
      (including current portion)                       2,328          2,332
     Total liabilities                                 34,010         26,230
     Total stockholders' equity                       $97,509        $69,003
 
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SOURCE Corinthian Colleges, Inc.
    SANTA ANA, Calif., April 26 /PRNewswire/ -- Corinthian Colleges, Inc.
 (Nasdaq:   COCO) today reported new highs for revenues, net income, operating
 profits, starts and earnings per share for its third fiscal quarter and nine
 months ended March 31, 2001.
     Revenues for the third quarter of fiscal 2001 increased 48.6% to
 $65.2 million, up from $43.9 million for the third quarter of last year.  For
 the nine months year-to-date, revenues increased 42.5% to $177.8 million, up
 from the $124.7 million reported in the first nine months of fiscal 2000.  The
 record revenues reflect increases in both student population and average
 tuition rates.  As of March 31, 2001, total student population increased
 38.1% over the prior year.  The average tuition rate per student rose 8.9% in
 the third quarter and 10.0% for the nine months year-to-date period.
     Income from operations for the third quarter of fiscal 2001 increased
 53.2% to $11.6 million, or 17.7% of revenues, compared with $7.5 million, or
 17.2% of revenues, for the third quarter of fiscal 2000.  For the nine months
 year-to-date in fiscal 2001, income from operations increased 66.0% to
 $29.0 million, or 16.3% of revenues, compared with $17.5 million, or 14.0% of
 revenues, for the same period last year.
     Net income for the third quarter of fiscal 2001 increased 53.7% to
 $7.2 million, compared with $4.7 million in the third quarter of last year.
 For the nine months year-to-date in fiscal 2001, net income increased 66.7% to
 $18.2 million, compared with $10.9 million for the nine-month period last
 year.
     Diluted earnings per common share for the third quarter of fiscal 2001
 increased 50.0% to $0.33, compared with $0.22 for the third quarter of last
 year.  For the nine months year-to-date period, diluted earnings per common
 share increased 61.5% to $0.84, compared with $0.52 for the same period a year
 ago.  In December 2000, Corinthian completed a two-for-one split of all
 outstanding shares of its common stock.  Accordingly, all shares and earnings
 per common share amounts have been restated as if the common stock split had
 occurred at the beginning of each year presented.
     At March 31, 2001, total student population increased 38.1% to 26,085 from
 18,886 students at March 31, 2000 and same school student population increased
 12.9% to 21,257.  Total starts, or new student enrollments, for the third
 quarter of fiscal 2001 increased 41.1% to 9,132, and same school starts
 increased 8.3% over the third quarter of last year.  For the first nine months
 in fiscal 2001, total starts increased 32.0% to 24,625 and same school starts
 increased 9.1% over starts for the same period of last year.
     The weighted average number of shares outstanding in the third quarter and
 year-to-date period of fiscal 2001 increased, primarily reflecting the impact
 of 400,000 shares (200,000 shares on a pre-split basis) sold by the company in
 its secondary stock offering completed in October 2000.  On a split-adjusted
 basis, the weighted average number of diluted common shares outstanding was
 21,964,000 and 20,871,000 for the third quarters of fiscal 2001 and 2000,
 respectively.  For the nine months year-to-date period, the weighted average
 number of diluted common shares outstanding was 21,647,000 and 20,832,000 for
 fiscal 2001 and 2000, respectively.
     David G. Moore, Corinthian's president and chief executive officer, said,
 "We are pleased with the results of operations for the third quarter and the
 first nine months in fiscal 2001, especially when we review the significant
 growth from January through March 2001.  During the third quarter, we opened
 two branch campuses, one in Rancho Cucamonga in January and the second in
 Dearborn, Michigan in March.  These represent the second and third branch
 campuses opened this fiscal year and we are currently on track to open our
 fourth fiscal 2001 branch campus in Skokie, Illinois this June.
     "In February, we completed the acquisition of Grand Rapids Education
 Center, Inc. and integrated its three campuses into the Corinthian family.
 Grand Rapids was our third acquisition this fiscal year and, when coupled with
 the second quarter acquisitions of Educorp and Computer Training Academy,
 added nine campuses during the fiscal year.  We believe these acquisitions and
 our new branch campuses will provide operating and marketing synergies with
 our existing locations and will increase our capacity to grow revenue and
 income.  Most importantly, these new campuses further strengthen and enhance
 our ability to provide the highest quality education and career preparation to
 a greater number of students.
     "During the third quarter and the first nine months of fiscal 2001, our
 valued employees have diligently implemented our fiscal 2001 operating plan
 and we have already achieved a substantial number of our fiscal 2001
 initiatives.  Corinthian's continued success, and the success of our students
 and graduates is a reflection of our commitment to the quality of our programs
 and the dedication of our instructors and staff."
 
     Business Outlook
     The following statements are based on our current expectations.  These
 statements are forward looking and actual results may differ materially as a
 result of the factors more specifically referenced below.  These statements of
 expected results of operations include the results of the previously announced
 new branch campuses that we expect to open after the date of this news
 release.  Except as otherwise specifically noted, these expectations are for
 the full fiscal year ending June 30, 2001.
 
     -- While we expect to sustain revenue growth over the next several years
 in the 20% to 25% range, we believe that revenues for fiscal 2001 will grow
 approximately 42% over revenues for fiscal 2000; we currently expect that
 revenues for fiscal 2002 will increase between 25% and 30% over fiscal 2001;
 
     -- Growth in quarterly revenues for the remainder of fiscal 2001 and for
 fiscal 2002 will be influenced by the timing of branch openings and
 acquisitions completed in fiscal 2000 and fiscal 2001;
 
     -- We expect to be able to leverage educational services expenses and
 general and administrative expenses against our anticipated revenue increases
 to improve operating margin percentages for fiscal 2001 to between 16.0% and
 17.0% of revenues and between 16.5% and 17.5% of revenues for fiscal 2002;
 
     -- We believe our effective income tax rate will remain relatively
 constant at approximately 41%; and
 
     -- Based on current operating trends, we expect fourth quarter fiscal 2001
 earnings to be between $0.33 and $0.35 per diluted share.
 
     About Corinthian Colleges, Inc.
     Corinthian Colleges, Inc. is one of the largest for-profit post-secondary
 education companies in the United States.  As of April 25, 2001, the company
 operated 55 colleges in 19 states, including 17 in California and nine in
 Florida.  Corinthian serves the large and growing segment of the population
 seeking to acquire career-oriented education to become more qualified and
 marketable in today's increasingly demanding workplace environment.
 
     Certain statements in this press release may be deemed to be
 forward-looking statements under the Private Securities Litigation Reform Act
 of 1995.  The company intends that all such statements be subject to the
 "safe-harbor" provisions of that Act.  Such statements may include, but are
 not limited to, the company's discussion of its plan to open new branch
 campuses in Skokie, Illinois, marketing and operating synergies associated
 with acquired campuses, and the discussion of projections under the heading
 "Business Outlook".  Many important factors may cause the company's actual
 results to differ materially from those discussed in any such forward-looking
 statements, including changes in student perceptions, increased competition,
 the effectiveness of the company's advertising and promotional efforts,
 changes in the regulatory environment, integration risks associated with
 acquisitions and opening branch campuses, general economic and market
 conditions and the other risks and uncertainties described in the Company's
 filings with the Securities and Exchange Commission.  The historical results
 achieved by the Company are not necessarily indicative of its future
 prospects.  The Company undertakes no obligation to publicly update or revise
 any forward-looking statements, whether as a result of new information, future
 events or otherwise.
     A conference call pertaining to the above news is scheduled for 8:00 a.m.
 Pacific Time (11:00 a.m. Eastern Time) on Friday, April 27.   Access to the
 call is available through the Internet at www.cci.edu and
 www.streetfusion.com.   Rebroadcast of the call will also be available for two
 weeks at both Web sites.
 
                           Corinthian Colleges, Inc.
                     (In thousands, except per share data)
 
 
     Consolidated Statements
      of Income                For the three months      For the nine months
     (Unaudited):                 ended March 31,           ended March 31,
                               2001          2000         2001          2000
 
     Net revenues           $65,197       $43,873     $177,758      $124,701
     Operating expenses
      Educational services   34,903        22,988       94,268        67,569
      General and
       administration         5,257         4,128       15,326        12,269
      Marketing and
       advertising           13,479         9,212       39,139        27,373
     Total operating
      expenses               53,639        36,328      148,733       107,211
     Income from operations  11,558         7,545       29,025        17,490
     Interest expense
      (income), net            (481)         (420)      (1,644)       (1,160)
     Income before provision
      for income taxes       12,039         7,965       30,669        18,650
     Provision for
      income taxes            4,875         3,305       12,515         7,759
     Net income              $7,164        $4,660      $18,154       $10,891
 
     Income per common share:
      Basic                   $0.34         $0.23        $0.86         $0.53
      Diluted                 $0.33         $0.22        $0.84         $0.52
 
     Weighted average number
      of common shares
      outstanding:
      Basic                  21,182        20,693       20,999        20,692
      Diluted                21,964        20,871       21,647        20,832
 
 
     Selected Balance Sheet Data
                                                     March 31,       June 30,
                                                        2001           2000
                                                   (Unaudited)     (Unaudited)
 
     Cash, restricted cash and
      marketable securities                           $28,646        $29,003
     Receivables, net (including long-term
      notes receivable)                                29,063         18,284
     Current assets                                    65,893         50,736
     Total assets                                     131,519         95,233
     Current liabilities                               29,137         21,667
     Long-term liabilities
      (including current portion)                       2,328          2,332
     Total liabilities                                 34,010         26,230
     Total stockholders' equity                       $97,509        $69,003
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X32724201
 
 SOURCE  Corinthian Colleges, Inc.