Corinthian Colleges Reports Fourth Quarter & Fiscal Year 2009 Results

SANTA ANA, Calif., Aug. 25 /PRNewswire-FirstCall/ -- Corinthian Colleges, Inc. (NASDAQ: COCO) reported financial results today for the fourth quarter and fiscal year ended June 30, 2009. The fourth quarter and fiscal year results exceeded our previous guidance range for start growth, revenue and earnings per share.

"Our strong fourth quarter and fiscal year results reflect the continued progress of our initiatives to improve the student experience and increase top and bottom line growth," said Peter Waller, Corinthian's chief executive officer. "We have successfully increased our student population for three consecutive years, and during fiscal 2009, the recession helped increase our growth momentum. The higher student population has resulted in improved leverage of facility and other fixed costs. Increased advertising effectiveness and lower media costs have improved efficiencies in marketing and admissions. Given all of these factors, our operating margin and cash flow increased substantially in fiscal 2009, and we expect continued improvement in the current fiscal year."

"We believe our business strategy positions us for consistent, sustainable earnings growth," Waller said. "In fiscal 2010 we expect our student population growth to be derived from several sources, including continued implementation of new programs, online enrollment, facility expansions, new branch campuses, and high school enrollment. In addition, we expect continued high unemployment to contribute to overall growth."

"While the recession helps drive enrollment growth, it also creates challenges in terms of career placement and student loan repayment," Waller added. "In fiscal 2010 we will continue to make substantial investments in both of these areas, to help graduates achieve their career goals and meet their financial obligations in a difficult economy."

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Student Loans: How Much Do I Really Owe Each Month?

That Sallie Mae/Gallup poll about student loans is still stirring up dust, with people arguing about whether it accurately reflects how much debt people are taking on for school. The survey found that fewer families borrowed money to send someone to college in 2008-2009 than the year before. I'm still thinking about it too and one section that particularly stands out to me is where they asked students to estimate their monthly loan payment once they graduate. The students were off -- by a lot.

Twenty-three percent of students wouldn't venture a guess at all, which I personally chalk up to fear. Can you blame them for not wanting to put a number to their future debt-filled lives?

The more debt you're staring at, the less likely you are to have a handle on the monthly load. Look at the chart above. Estimates from students who expected to borrow $10,000 or less were pretty close, but as their loans grew, the estimates all over the map. Sallie Mae says the range of estimates was $2 to $80,000 per month (those are the optimists who think they're going to pay it all back at once).

When I graduated, I remember being hounded to consolidate my loans. It was a smart move in the sense that it locked in a good interest rate. On the down side, it sent me straight into repayment with no grace period. I chose a graduated payment option, meaning I agreed to pay more as I made more. For the first three years, I paid a very minimal amount that barely covered interest. Last year, when I was making more but still feeling broke, my payment doubled. I really noticed the increase. Now, after nearly year of paying the new amount, it's starting to seem normal -- that is, until I look at my Sallie Mae statement and realize that at this rate it'll take me until 2020 to pay off my loans!


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