Enrollments up, revenues down for Career Education in 2016

SCHAUMBURG - Despite an increase in student enrollment in 2016, Career Education Corp. reported a revenue decline of 16.9 percent for the year, the for-profit college group reported.

Total revenue was $704.4 million for the year, compared to $847.3 million for 2015.l The company said the decrease was driven mainly by its declines in its teach-out segments. revenue for the fourth quarter of 2016 was $155.3 million, down from $199.9 million for the same period of 2015.

Total revenue for the University Group up 2.3 percent for the year, at $562.4 million.

Total student enrollments for the University Group were reported at 33,600, compared to 31,900 as of the prior year, primarily driven by improved student retention at Colorado Technical University and new enrollment growth at American International University. New student enrollments for the University Group were 9,280 and 35,120 for the quarter and year ended December 31, 2016, respectively, compared to new student enrollments of 8,760 and 35,290 for the quarter and year ended December 31, 2015, respectively.

"Our commitment to improving student retention and outcomes while investing in technology and resources resulted in total enrollment growth at our University Group, with year-end total enrollments at the highest level since 2012," said Todd Nelson, President and Chief Executive Officer. "The results of our teach-out operations were ahead of our expectations, and our overall operating costs decreased by more than $200 million compared to last year, resulting in a year end cash balance that was higher than our outlook."

Nelson added the company will continue to invest in technology and resources in 2017 "which we believe will further enhance student retention and outcomes and pursue sustainable and responsible growth opportunities within our University Group."