Career Education posts third quarter profit

Career Education Corp. reported third-quarter net income of $3 million, after reporting a loss in the same period a year earlier.

On a per-share basis, the Schaumburg - based company said it had profit of 4 cents. Earnings, adjusted to account for discontinued operations, were 5 cents per share.

The for-profit education company posted revenue of $145 million in the period.

Career Education shares have risen slightly more than 6 percent since the beginning of the year.

"We continued to experience better than expected enrollment trends and operating efficiencies during the third quarter, and are on track to close 2017 ahead of our initial expectations for the year," said President and CEO Todd Nelson.

For the quarter and year to date, total revenue was $145.0 million and $453.3 million representing a decrease of 13.5 percent and 17.4 percent, respectively, compared to total revenue of $167.6 million and $549.1 million for the quarter and year to date ended September 30, 2016, respectively. The decrease was primarily driven by declining revenues within the Transitional Group and Culinary Arts segments. The Culinary Arts segment completed its teach-out as of September 30, 2017 and the remaining eight Transitional Group campuses will complete their teach-outs through 2018.

As of the end of the third quarter of 2017, total student enrollments for the University Group were 32,700, compared to 31,900 as of the prior year quarter end representing a 2.5 percent increase.