Corinthian Colleges, Inc. (COCO) is one of the largest post-secondary education companies in North America. The company’s mission is to prepare students for careers in demand or for advancement in their chosen field. Corinthian offers diploma programs and associate’s, bachelor’s, and master’s degrees in a variety of occupational areas such as healthcare, business, criminal justice, transportation technology, maintenance, construction trades and information technology.
Comparing the second quarter of fiscal 2008 with the same quarter of the prior year, net revenue was $272.6M versus $235.1M, an increase of 15.9%. Operating income was $14.7 million, compared with $4.5 million. Second quarter of the previous fiscal year included $2.4M in expenses related to the impairment, facility closing and severance. Income from continuing operations was $9.1M compared with net income of $3.3M.
In December 2007, the company entered into an asset purchase agreement to sell their CDI schools outside of Ontario to a wholly-owned subsidiary of the Eminata Group in a cash transaction valued at CAD $7.4M. As a result of the company’s divestitures of the CDI campuses, as well as the WyoTech Boston campus, these campuses will be accounted for as discontinued operations and are counted as a net loss of $1.0M for second quarter fiscal 2008.
Corinthian recently announced that Timothy Jackson Sullivan was appointed to serve as a Class I member of its board of directors. Sullivan is president emeritus of the College of William and Mary. His career at William and Mary spans more than 35 years and includes serving for 12 years as its president and as dean of its law school, the Marshall-Wythe School of Law. The three year term of all Class I directors expires immediately prior to the annual stockholders’ meeting in November 2008; Mr. Sullivan is expected to be nominated to serve another term at that meeting.
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