Career Education Corporation (CECO) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $32.88 million, or $ 0.48 a share in the quarter, against a net profit of $142.72 million, or $2.08 a share in the last year period.
Revenue during the quarter dropped 22.35 percent to $155.26 million from $199.95 million in the previous year period. Operating margin for the quarter stood at negative 36.01 percent as compared to a negative 1.97 percent for the previous year period.
Operating loss for the quarter was $55.91 million, compared with an operating loss of $3.93 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $1.68 million compared with $8.92 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 1.08 percent for the quarter compared to 4.46 percent in the last year period.
"I am pleased with our 2016 results and with the progress our teams have made against our strategic initiatives," said Todd Nelson, president and chief executive officer. "Our commitment to improving student retention and outcomes while investing in technology and resources resulted in total enrollment growth at our University Group, with year-end total enrollments at the highest level since 2012. The results of our teach-out operations were ahead of our expectations, and our overall operating costs decreased by more than $200 million compared to last year, resulting in a year end cash balance that was higher than our outlook. For 2017, we will continue to invest in technology and resources which we believe will further enhance student retention and outcomes and pursue sustainable and responsible growth opportunities within our University Group."
Operating cash flow turns positiveCareer Education Corporation has generated cash of $5.91 million from operating activities during the year as against cash outgo of $21.69 million in the last year. The company has spent $34.35 million cash to meet investing activities during the year as against cash outgo of $7.99 million in the last year. It has incurred net capital expenditure of $0.53 million on net basis during the year, down 94.39 percent or $8.89 million from year ago.
Cash flow from financing activities was $11.22 million for the year, up 345.55 percent or $8.70 million, when compared with the last year.
Cash and cash equivalents stood at $49.51 million as on Dec. 31, 2016, down 26.02 percent or $17.41 million from $66.92 million on Dec. 31, 2015.
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