Career Education 1Q profit falls on charges, severance costs

HOFFMAN ESTATES, Ill.—For-profit education company Career Education Corp. said Monday its first-quarter profit declined on goodwill, asset impairment and other charges as revenue was nearly flat.

For the three months ended March 31, the company earned $16.4 million, or 18 cents per share, down 46 percent from $30 million, or 31 cents per share, in the same period a year earlier.

The latest quarter's results included $11.4 million in severance costs and $6.6 million in goodwill and asset impairment charges and other expenses, the company said.

Revenue was $460.2 million, compared with $460.4 million in the year-ago period.

Analysts, on average, expected a profit of 21 cents per share on sales of $424.7 million, according to a poll by Thomson Financial.

Career Education said the quarter's results met its expectations.

The company reported 27,460 new students in the first quarter compared with 25,500 in the year-ago period. Total enrollment grew to 95,100 students from 93,300 students.

Shares rose 48 cents, or 2.5 percent, to $20 in after-hours electronic trading. The stock earlier closed down 74 cents, or 3.7 percent, at $19.52.

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