Corinthian Colleges Inc. (COCO, Financial) filed Quarterly Report for the period ended 2009-12-31.
Corinthian Colleges Inc. has a market cap of $1.24 billion; its shares were traded at around $14.16 with a P/E ratio of 12.4 and P/S ratio of 1. Corinthian Colleges Inc. had an annual average earning growth of 11% over the past 10 years.COCO is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES, Bruce Kovner of Caxton Associates, Arnold Van Den Berg of Century Management.
Educational Services. Educational services expenses include direct operating expenses of the schools consisting primarily of payroll and payroll related expenses, rents, occupancy costs, supply expenses, bad debt expense and other educational related expenses. Educational services expenses increased $37.1 million, or 20.1%, from $184.8 million in the second quarter of fiscal 2009 to $221.9 million in the second quarter of fiscal 2010. As a percentage of net revenues, educational services expenses decreased from 58.1% of revenues in the second quarter of fiscal 2009 to 53.6% of revenues in the second quarter of fiscal 2010. The decrease was primarily due to a reduction in facility costs and bad debt expense as a percentage of revenue. The reduction in facility costs as a percentage of revenue is primarily due to the amount being fixed in nature. Bad debt expense decreased to $24.2 million or 5.8% of net revenues for the second quarter of fiscal 2010 compared to $27.8 million or 8.7% of net revenues for the second quarter of fiscal 2009. The decrease in bad debt expense was primarily due to more efficient financial aid packaging for students.
Educational Services. Educational services expenses include direct operating expenses of the schools consisting primarily of payroll and payroll related expenses, rents, occupancy costs, supply expenses, bad debt expense and other educational related expenses. Educational services expenses increased $75.3 million, or 20.8%, from $361.6 million in the first six months of fiscal 2009 to $436.9 million in the first six months of fiscal 2010. As a percentage of net revenues, educational services expenses decreased from 59.5% of revenues in the first six months of fiscal 2009 to 54.4% of revenues in the first six months of fiscal 2010. The decrease was primarily due to a reduction in facility costs and bad debt expense as a percentage of revenue. The reduction in facility costs as a percentage of revenue is primarily due to the amount being fixed in nature. Bad debt expense decreased to $49.2 million or 6.1 % of net revenues for the first six months of fiscal 2010 compared to $53.5 million or 8.8% of net revenues for the first six months of fiscal 2009. The decrease in bad debt expense was primarily due to more efficient financial aid packaging for students.
On September 30, 2009, we entered into a Third Amended and Restated Credit Agreement with aggregate borrowing capacity of $280 million, of which $260 million is a domestic facility and $20 million, is a Canadian facility. The Third Amended and Restated Credit Agreement expires on October 1, 2012. The Third Amended and Restated Credit Agreement has been established to provide available funds for acquisitions, to fund general corporate purposes, and to provide for letters of credit issuances of up to $50 million for domestic letters of credit and $15 million for Canadian letters of credit. Borrowings under the agreement bear interest at several pricing alternatives available to us, including Eurodollar and adjusted
Cash flows provided by operating activities amounted to $126.9 million in the first six months of fiscal 2010 compared to $79.4 million provided by operating activities in the same period of fiscal 2009. The increase in cash provided by operating activities for the first six months of fiscal 2010 compared to the first six months of fiscal 2009 was primarily due to an increase in net income partially offset by the timing of cash receipts and payments related to working capital, primarily accounts receivable and prepaid tuition. Included in cash flows from operating activities is $0.0 million and $1.7 million of net cash used in operating activities related to discontinued operations for the first six months of 2010 and 2009, respectively.
Cash flows used in investing activities amounted to $30.9 million in the first six months of fiscal 2010 compared to cash flows used in investing activities of $21.9 million in the same period of fiscal 2009. The increase in cash used in investing activities in the first six months of fiscal 2010 compared to the same period last year was due primarily to an increase in capital expenditures. Capital expenditures of $30.9 million during the first six months of fiscal 2010, compared to capital expenditures of $22.1 million in the same period of fiscal 2009, were incurred primarily for relocations, remodels and enlargements of existing campuses and to fund information systems expenditures. We expect capital expenditures to be approximately $115 million for fiscal 2010.
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Corinthian Colleges Inc. has a market cap of $1.24 billion; its shares were traded at around $14.16 with a P/E ratio of 12.4 and P/S ratio of 1. Corinthian Colleges Inc. had an annual average earning growth of 11% over the past 10 years.COCO is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES, Bruce Kovner of Caxton Associates, Arnold Van Den Berg of Century Management.
Highlight of Business Operations:
Allowance for Doubtful Accounts. We maintain an allowance for doubtful accounts for estimated losses resulting from the inability, failure or refusal of our students to make required payments. We determine the adequacy of this allowance by regularly reviewing the accounts receivable aging and applying various expected loss percentages to certain student accounts receivable categories based upon historical bad debt experience. We generally write off accounts receivable balances deemed uncollectible as they are sent to collection agencies. We offer a variety of payment plans to help students pay that portion of their education expense not covered by financial aid programs. These balances are unsecured and not guaranteed. We believe our reserves are adequate; however, losses related to unpaid student balances could exceed the amounts we have reserved for bad debts. The effect of an increase in our accounts receivable allowance of 3% of our outstanding receivables from 31.5% to 34.5% or $27.0 million to $29.5 million would result in a decrease in pre-tax income of $2.6 million for the period ending December 31, 2009. The effect of an increase in our student notes receivable allowance of 3% of our outstanding earned notes receivable from 33.6% to 36.6% or $28.8 million to $31.4 million would result in a decrease in pre-tax income of $2.6 million for the period ending December 31, 2009.Educational Services. Educational services expenses include direct operating expenses of the schools consisting primarily of payroll and payroll related expenses, rents, occupancy costs, supply expenses, bad debt expense and other educational related expenses. Educational services expenses increased $37.1 million, or 20.1%, from $184.8 million in the second quarter of fiscal 2009 to $221.9 million in the second quarter of fiscal 2010. As a percentage of net revenues, educational services expenses decreased from 58.1% of revenues in the second quarter of fiscal 2009 to 53.6% of revenues in the second quarter of fiscal 2010. The decrease was primarily due to a reduction in facility costs and bad debt expense as a percentage of revenue. The reduction in facility costs as a percentage of revenue is primarily due to the amount being fixed in nature. Bad debt expense decreased to $24.2 million or 5.8% of net revenues for the second quarter of fiscal 2010 compared to $27.8 million or 8.7% of net revenues for the second quarter of fiscal 2009. The decrease in bad debt expense was primarily due to more efficient financial aid packaging for students.
Educational Services. Educational services expenses include direct operating expenses of the schools consisting primarily of payroll and payroll related expenses, rents, occupancy costs, supply expenses, bad debt expense and other educational related expenses. Educational services expenses increased $75.3 million, or 20.8%, from $361.6 million in the first six months of fiscal 2009 to $436.9 million in the first six months of fiscal 2010. As a percentage of net revenues, educational services expenses decreased from 59.5% of revenues in the first six months of fiscal 2009 to 54.4% of revenues in the first six months of fiscal 2010. The decrease was primarily due to a reduction in facility costs and bad debt expense as a percentage of revenue. The reduction in facility costs as a percentage of revenue is primarily due to the amount being fixed in nature. Bad debt expense decreased to $49.2 million or 6.1 % of net revenues for the first six months of fiscal 2010 compared to $53.5 million or 8.8% of net revenues for the first six months of fiscal 2009. The decrease in bad debt expense was primarily due to more efficient financial aid packaging for students.
On September 30, 2009, we entered into a Third Amended and Restated Credit Agreement with aggregate borrowing capacity of $280 million, of which $260 million is a domestic facility and $20 million, is a Canadian facility. The Third Amended and Restated Credit Agreement expires on October 1, 2012. The Third Amended and Restated Credit Agreement has been established to provide available funds for acquisitions, to fund general corporate purposes, and to provide for letters of credit issuances of up to $50 million for domestic letters of credit and $15 million for Canadian letters of credit. Borrowings under the agreement bear interest at several pricing alternatives available to us, including Eurodollar and adjusted
Cash flows provided by operating activities amounted to $126.9 million in the first six months of fiscal 2010 compared to $79.4 million provided by operating activities in the same period of fiscal 2009. The increase in cash provided by operating activities for the first six months of fiscal 2010 compared to the first six months of fiscal 2009 was primarily due to an increase in net income partially offset by the timing of cash receipts and payments related to working capital, primarily accounts receivable and prepaid tuition. Included in cash flows from operating activities is $0.0 million and $1.7 million of net cash used in operating activities related to discontinued operations for the first six months of 2010 and 2009, respectively.
Cash flows used in investing activities amounted to $30.9 million in the first six months of fiscal 2010 compared to cash flows used in investing activities of $21.9 million in the same period of fiscal 2009. The increase in cash used in investing activities in the first six months of fiscal 2010 compared to the same period last year was due primarily to an increase in capital expenditures. Capital expenditures of $30.9 million during the first six months of fiscal 2010, compared to capital expenditures of $22.1 million in the same period of fiscal 2009, were incurred primarily for relocations, remodels and enlargements of existing campuses and to fund information systems expenditures. We expect capital expenditures to be approximately $115 million for fiscal 2010.
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