About Corinthian Colleges, Inc.

Corinthian Colleges, Inc. 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. Through its Everest, WyoTech and Heald campuses, Corinthian offers diploma and associate degree programs in a variety of high-demand occupational areas, including healthcare, business, criminal justice, transportation technology and maintenance, construction trades and information technology.

More information can be found on Corinthian's website at http://www.cci.edu.

    Contacts:
    Investors:   Anna Marie Dunlap
                 SVP Investor Relations/Corporate Communications
                 Corinthian Colleges, Inc.
                 714-424-2678

    Media:       Robert Jaffe
                 PondelWilkinson Inc.
                 310-279-5969

SOURCE Corinthian Colleges, Inc.

About Corinthian Colleges, Inc.

Corinthian Colleges, Inc. 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. Through its Everest, WyoTech and Heald campuses, Corinthian offers diploma and associate degree programs in a variety of high-demand occupational areas, including healthcare, business, criminal justice, transportation technology and maintenance, construction trades and information technology.

More information can be found on Corinthian's website at http://www.cci.edu.

    Contacts:
    Investors:       Anna Marie Dunlap
                     SVP Investor Relations/Corporate Communications
                     Corinthian Colleges, Inc.
                     714-424-2678

    Media:           Robert Jaffe
                     PondelWilkinson Inc.
                     310-279-5969

SOURCE Corinthian Colleges, Inc.

"Our strong second quarter results reflect the continued success of our initiatives to enhance the student experience and generate sustainable growth," said Peter Waller, Corinthian's chief executive officer. "Our growth in the quarter was driven by several sources, including implementation of new programs at existing campuses, continued robust growth in the online division, and the expansion of our high school recruiting program."

"The continued growth in student population has resulted in improved leverage of facility expenses and other fixed costs," Waller continued. "In addition, marketing and bad debt expenses continued to decline as a percent of revenue. Given all of these factors, our operating margin and cash flow from operations improved substantially compared with the prior year. We achieved these results while continuing to make substantial investments in graduate employment services and student loan default management."

"As previously reported, on January 4th we completed the acquisition of Heald College, which is expected to contribute to growth and earnings in the second half of fiscal 2010 and beyond," Waller said. "Heald is a regionally-accredited institution that has been delivering quality career-focused academic programs since 1863. This acquisition is consistent with our strategy of increasing our presence in markets with growth potential and expanding our ability to offer regionally accredited programs."

Comparing the second quarter of fiscal 2010 with the same quarter of the prior year (Note: Data is for continuing operations only.):

• Net revenue was $414.3 million versus $318.3 million, up 30.2%.
• Total student population at December 31, 2009 was 93,152 versus 76,165, an increase of 22.3%.
• Total student starts were 29,156 versus 26,334, an increase of 10.7%.
• Operating income was $64.8 million, compared with $27.6 million.
• Income from continuing operations was $39.4 million, compared with $15.5 million.
• Diluted earnings per share were $0.44 versus $0.18.

Q2 10 Financial Review

Educational services expenses were 53.6% of revenue in Q2 10 versus 58.1% in Q2 09. The improvement was mainly the result of a higher student population and the resulting leverage of facilities costs, as well as a decrease in bad debt expense as a percent of revenue. Bad debt expense was 5.8% of revenue in Q2 10, lower than our previous guidance of 6.7% - 7.1% and down substantially from 8.7% in Q2 09.

Marketing and admissions expenses were 19.4% of revenue in Q2 10 versus 23.1% in Q2 09. Advertising costs declined as a percent of revenue, partially offset by increased admissions representative staffing for the Everest high school recruiting program.

General and administrative expenses were 11.4% of revenue in Q2 10 versus 10.1% in Q2 09. The increase is primarily due to earlier timing of variable compensation accruals for management personnel throughout the company.

Operating margin - As a result of the factors outlined above, our operating margin from continuing operations was 15.6% in Q2 10 versus 8.7% in Q2 09.

Cash and cash equivalents totaled $251.2 million at December 31, 2009, compared with $160.3 million at June 30, 2009.

Cash flow from operations, including discontinued operations, was $126.9 million in the six months ended December 31, 2009, versus $79.4 million in the six months ended December 31, 2008. The increase in cash flow is 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.

Capital expenditures were $30.9 million in the first six months of fiscal 2010 compared with $22.1 million in the same period of the prior fiscal year.

Guidance

Please note that the following guidance pertains to continuing operations and excludes any one-time charges. In addition, it includes the impact of the Heald College acquisition. The attached table provides detailed guidance with and without Heald.

In Q3 10, we expect revenue to range from $470 - $480 million; and diluted earnings per share to be approximately $0.45 - $0.47. We expect new student growth in Q3 10 of 6% - 8% compared with the third quarter of the prior year. This expected growth rate includes Heald on a pro forma basis. Excluding Heald from the Q3 09 base, but adding Heald students for Q3 10, the projected growth rate would be 18% - 20%.

For the full fiscal year 2010, we expect revenue to range from $1.74 - $1.76 billion, versus previous guidance of $1.62 -$1.64 billion; and diluted earnings per share to range from $1.63 to $1.68 versus $1.55 - $1.60 previously. We continue to expect new student growth in fiscal 2010 of 11% - 13% in fiscal 2010 compared with fiscal 2009. This expected growth rate includes Heald on a pro forma basis. Excluding Heald from the fiscal 2009 base, but adding Heald students for fiscal 2010, the projected growth rate would be 17% - 19%.

Conference Call Today

We will host a conference call today at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time), for the purpose of discussing second quarter results. The call will be open to all interested investors through a live audio web cast at www.cci.edu (Investor Relations/Webcasts & Presentations) and www.streetevents.com. The call will be archived on www.cci.edu after the call. A telephonic playback of the conference call will also be available through 5:00 p.m. ET, Tuesday, February 9, 2010. To hear the replay, dial (888) 286-8010 (domestic) or (617) 801-6888 (international) and enter passcode 68469249.

About Corinthian Colleges, Inc.

Corinthian Colleges, Inc. 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 high-demand occupational areas, including healthcare, business, criminal justice, transportation technology and maintenance, construction trades and information technology. For more information, go to www.cci.edu.

Certain statements in this press release may be deemed to be forward-looking statements under the Private Securities Litigation Reform Act of 1995. The company intends that all such statements be subject to the "safe-harbor" provisions of that Act. Such statements include, but are not limited to, those regarding our expectations for the Heald acquisition and the statements under the heading "Guidance" above. Many factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements or elsewhere, including risks associated with variability in the expense and effectiveness of the company's advertising and promotional efforts; the uncertain future impact of the company's new student information system; potential increased competition; the company's effectiveness in its regulatory compliance efforts; the outcome of pending litigation against the company; the outcome of ongoing reviews and inquiries by accrediting, state and federal agencies; bad debt expense or reduced revenue associated with requesting students to pay more of their educational expenses while in school; the potential inability or failure of the company to employ underwriting guidelines that will limit the risk of higher student loan defaults and higher bad debt expense; changes in general macroeconomic and market conditions (including credit and labor market conditions, the unemployment rate and the rates of change of each such item); potential difficulty in integrating the Heald acquisition, and other risks and uncertainties described in the company's filings with the U.S. Securities and Exchange Commission. The historical results achieved by the company are not necessarily indicative of its future prospects. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

                               Corinthian Colleges, Inc.
                       (In thousands, except per share data)

    Consolidated Statements of Operations

                         For the three months ended  For the six months ended
                                   December 31,              December 31,
                                2009         2008         2009         2008
                                ----         ----         ----         ----
                            (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)

    Net revenues              $414,308     $318,288     $802,779     $607,869
    Operating expenses:
      Educational services     221,874      184,802      436,887      361,639
      General and
       administrative           47,341       32,287       86,805       61,625
      Marketing and
       admissions               80,295       73,555      160,399      146,894
                                ------       ------      -------      -------
    Total operating
     expenses                  349,510      290,644      684,091      570,158
                               -------      -------      -------      -------

    Income  from
     operations                 64,798       27,644      118,688       37,711

    Interest (income)             (351)        (483)        (651)        (932)
    Interest expense               832          797        1,336        1,541
    Other (income)
     expense                    (1,351)       1,343       (2,510)       1,558
                                ------        -----       ------        -----
    Income from
     continuing operations
     before provision
     for income taxes           65,668       25,987      120,513       35,544
    Provision for
     income taxes               26,267       10,533       48,198       14,384
                                ------       ------       ------       ------
    Income from
     continuing operations      39,401       15,454       72,315       21,160
    Loss from discontinued
     operations, net of tax          -         (374)           -         (594)
                                   ---         ----          ---         ----
    Net income                 $39,401      $15,080      $72,315      $20,566
                               =======      =======      =======      =======

    Income per share
     - Basic:
      Income from
       continuing
       operations                $0.45        $0.18        $0.83        $0.24
      Loss from
       discontinued
       operations                    -            -            -            -
                                   ---          ---          ---          ---
      Net income                 $0.45        $0.18        $0.83        $0.24
                                 =====        =====        =====        =====

    Income per share -
     Diluted:
      Income from
       continuing
       operations                $0.44        $0.18        $0.82        $0.24
      Loss from
       discontinued
       operations                    -        (0.01)           -            -
                                   ---        -----          ---          ---
      Net income                 $0.44        $0.17        $0.82        $0.24
                                 =====        =====        =====        =====

    Weighted average
     number of common
     shares outstanding:
      Basic                     87,625       85,627       87,444       85,513
      Diluted                   88,624       86,905       88,617       86,835



    Selected Consolidated Balance Sheet Data

                           December 31,   June 30,
                               2009         2009
                            (Unaudited)

    Cash and cash
     equivalents              $251,163     $160,276
    Receivables, net
     (including long term
     notes receivable)        $115,750     $107,446
    Current assets            $384,570     $308,531
    Total assets              $898,459     $798,871
    Current liabilities       $221,884     $200,583
    Long-term debt and
     capital leases
     (including current
     portion)                  $18,228      $28,558
    Total liabilities         $294,018     $281,203
    Total stockholders'
     equity                   $604,441     $517,668



                        Corinthian Colleges, Inc.  (Nasdaq: COCO)
                                        Guidance
                                Third Quarter & Full Year
                                      Fiscal 2010

                        Excluding Heald                Including Heald*
               -----------------------------------    -----------------------
                Previous           Updated                    Updated
                Guidance           Guidance                   Guidance
               -----------  ----------------------    -----------------------
                              Third                     Third
                              Quarter                   Quarter
                              Ending                    Ending
                Full Year    March 31,   Full Year     March 31,    Full Year
                  2010         2010        2010          2010         2010
               ----------   ----------   ---------     ---------    ---------
    New
     Students

      Pro forma
       basis    11% - 13%     6% - 8%     11% - 13%     6% - 8%     11% - 13%
                ---------     -------     ---------     -------     ---------
      Reported
       basis    11% - 13%     6% - 8%     11% - 13%    18% - 20%    17% - 19%
                ---------     -------     ---------    ---------    ---------

    Revenue
     ($$
     billions) $1.62-$1.64  $.417-$.427  $1.63-$1.65  $.470-$.480  $1.74-$1.76
               -----------  -----------  -----------  -----------  -----------

    Fully
     diluted
     EPS       $1.55-$1.60    $.44-$.46  $1.60-$1.65    $.45-$.47  $1.63-$1.68
               -----------    ---------  -----------    ---------  -----------

    - - - - -
    * Excludes Heald transaction one-time costs, estimated to be $4 million in
      Q3 10


    Contacts:
                 Investors:                     Media:
                 Anna Marie Dunlap              Robert Jaffe
                 SVP Investor Relations         Pondel Wilkinson, Inc.
                 Corinthian Colleges, Inc.      310-279-5969
                 714-424-2678

SOURCE Corinthian Colleges, Inc.

The conference call will be open to all interested investors through a live audio webcast via the internet at http://www.cci.edu/ (Investor Relations/Webcasts & Presentations) and www.streetevents.com. The call will be archived on http://www.cci.edu/. A telephonic playback of the conference call will also be available through 5:00 p.m. EST. The playback can be reached by dialing (888) 286-8010 (domestic) or (617) 801-6888 (international) and entering passcode 68469249.

About Corinthian Colleges, Inc.

Corinthian Colleges, Inc. is one of the largest post-secondary education companies in North America. Our mission is to prepare students for careers in demand or for advancement in their chosen field. We offer diploma programs and associate's, bachelor's, and master's degrees in a variety of high-demand occupational areas, including healthcare, transportation technology and maintenance, criminal justice, business, information technology, and construction trades.

SOURCE Corinthian Colleges, Inc.

SANTA ANA, Calif., Jan 05, 2010 /PRNewswire-FirstCall via COMTEX/ -- Corinthian Colleges, Inc. (Nasdaq: COCO) has completed the acquisition of Heald Capital LLC, the parent company of Heald College. Heald is a regionally accredited institution that has been delivering quality, career-focused academic programs since 1863. Heald prepares students for careers in healthcare, business, legal, information technology and other growing fields, primarily through associate degree programs. Headquartered in San Francisco, California, Heald operates 11 campuses and had approximately 12,900 students as of December 31, 2009.

"We are pleased to welcome Heald and its capable management team, instructors and staff to Corinthian," said Peter Waller, Corinthian's chief executive officer. "Both Heald and Corinthian share a common commitment to student success through quality, career-oriented education. Heald brings Corinthian an increased presence in Northern California, Oregon and Hawaii, a growth platform for campus-based and online regionally accredited programs, and a third strong brand."

Transaction Terms

Under the terms of the acquisition, Corinthian paid $395 million in exchange for all outstanding membership interests of Heald Capital LLC, including the assumption of approximately $23.4 million in debt related to a Heald subsidiary. Corinthian also paid an estimated working capital adjustment of $22.2 million that is subject to revision once the closing balance sheet is finalized.

By virtue of Heald's limited liability ownership structure, Corinthian will receive a tax "step up" in the assets of Heald Capital LLC and its subsidiaries that is expected to provide substantial future tax benefits to Corinthian. Assuming a discount rate of 8% and an effective tax rate of 40%, these benefits have a net present value to Corinthian of approximately $70 million, implying an effective net purchase price of $325 million, or 8.5 times Heald's projected fiscal 2009 adjusted EBITDA.

Corinthian financed the acquisition through a combination of cash and debt, including borrowings under its $280 million credit facility and available cash.

Note: For more detailed information about the transaction, see the Form 8-K filed by the company today with the U.S. Securities and Exchange Commission.

Financial Impact

Excluding transaction-related expenses, the company expects the acquisition to be slightly accretive to earnings in the second half of fiscal 2010, and to add approximately $0.15 - $0.20 to diluted earnings per share in fiscal 2011. These projections, which will be finalized after closing, are based upon estimates of the allocation of purchase price among Heald's intangible assets.

About Corinthian Colleges

Corinthian Colleges 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, bachelor, and master's degrees in a variety of high-demand occupational areas, including healthcare, business, criminal justice, transportation technology and maintenance, construction trades and information technology. More information can be found on Corinthian's web site at http://www.cci.edu/.

Certain statements in this press release may be deemed to be forward-looking statements under the Private Securities Litigation Reform Act of 1995. The company intends that all such statements be subject to the "safe-harbor" provisions of that Act. Such statements include, but are not limited to, those pertaining to our expectations regarding (i) Corinthian's expected earnings per share accretion associated with the acquisition; and (ii) the potential tax benefits associated with the acquisition. Many factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements, including potential integration risks with a newly acquired operation, the potential failure to identify risks or liabilities associated with the acquired schools during the company's due diligence investigation, risks associated with the additional debt incurred to finance the acquisition, and the other risks and uncertainties described in the company's filings with the U.S. Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    Contacts:
                        Investors:                  Media:
                        Anna Marie Dunlap           Robert Jaffe
                        SVP Investor Relations      PondelWilkinson Inc.
                        Corinthian Colleges, Inc.   310-279-5969
                        714-424-2678

SOURCE Corinthian Colleges, Inc.