Corinthian Colleges Reports Fourth Quarter & Fiscal Year 2009 Results

Fourth Quarter Student Population Up 24.4% and Operating Margin Grew from 1.5%
to 10.8%

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."

Comparing the fourth quarter of fiscal 2009 with the same quarter of the prior
year
(Data is for continuing operations only, unless otherwise noted. More detail
is provided in the "Discontinued operations" section below and in the table
which accompanies this release.):

-- Net revenue was $353.5 million versus $274.0 million, up 29.0%.
-- Total student population at June 30, 2009 was 86,088 versus 69,211 at
June 30, 2008, an increase of 24.4%.
-- Total student starts were 29,188 versus 23,015, an increase of 26.8%.
-- Operating income was $38.0 million, compared with $4.0 million.
Fourth
quarter operating income includes an impairment and severance charge
of
$4.4 million (more detail is provided below, under the heading Q4 09
Financial Review).
-- Income from continuing operations (after tax) was $24.7 million,
compared with $4.8 million. Net loss from discontinued operations was
$1.5 million, versus $5.4 million.

-- Diluted earnings per share from continuing operations were $0.28
versus
$0.06. The diluted loss per share from discontinued operations was
$(0.02) versus $(0.07). Excluding impairment and severance charges,
diluted earnings per share from continuing operations were $0.31 in Q4
09.

Comparing fiscal 2009 versus fiscal 2008:

-- Net revenue was $1.31 billion versus $1.07 billion, up 22.4%.
-- Operating income was $119.3 million compared with $44.8 million, up
166.3%.
-- Income from continuing operations was $71.1 million versus $32.9
million, up 116.1%.

-- Diluted earnings per share from continuing operations were $0.81
versus
$0.39, up 107.7%.

Q4 09 Financial Review

Impairment, facility closing and severance charges - In the fourth quarter of
fiscal 2009, we incurred impairment and severance charges of $4.4 million. Of
that amount, approximately $2.5 million is related to an additional reserve
taken on student loan receivables that we had expected to receive from the
Title IV program. These receivables are associated with the two branch
campuses of the Atlanta, Georgia campus. The Atlanta campus was closed in Q4
08. In addition, the company recorded severance charges of $1.9 million for
the fourth quarter, primarily related to the restructuring of its WyoTech
operations and other personnel changes.

Discontinued operations - This item includes WyoTech Oakland, the assets of
which have been sold and the school closed; and the Everest campuses in
Atlanta, Georgia and Everett and Lynwood, Washington, which have been taught
out.

Educational services expenses were 56.0% of revenue in Q4 09 versus 61.1% in
Q4 08. The decrease was mainly the result of a higher student population and
the resulting leverage of compensation, facilities and other fixed expenses.
Bad debt expense was 7.1% of revenue in Q4 09, below the previous guidance
range of 7.5% - 8% and down from 9.1% in Q4 08.

Marketing and admissions expenses were 21.1% of revenue in Q4 09 versus 23.5%
in Q4 08. The improvement was the result of lower advertising costs per
start, higher lead quality, and increased admissions representative
productivity.

General and administrative expenses were 10.9% of revenue in Q4 09 versus
11.6% in Q4 08.

Operating margin - As a result of the factors outlined above, our operating
margin from continuing operations was 10.8% in Q4 09 versus 1.5% in Q4 08.

Cash flow from operations, including discontinued operations, was $198.7
million in fiscal 2009 versus $13.6 million in fiscal 2008. The increase in
cash flow is primarily due to an increase in net income and the impact of
improved financial aid packaging.

Capital expenditures were $49.5 million in fiscal 2009, compared with $54.9
million in fiscal 2008.

Guidance

Please note that the following guidance pertains solely to continuing
operations, includes stock-based compensation expense and excludes any
one-time charges.

Q1 10 - In Q1 10 we expect student start growth of 15% - 17% compared with Q1
09; revenue to range from $375 - $385 million; and diluted earnings per share
to range from approximately $0.26 - $0.29.

Fiscal 2010 - In FY 10 we expect student start growth of approximately 10% -
12% compared with FY 09; revenue to range from $1.58 - $1.60 billion; and
diluted earnings per share to range from $1.30 - $1.36.

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 our progress and outlook. 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, September 1, 2009. To hear the replay, dial
(888) 286-8010 (domestic) or (617) 801-6888 (international), pass code
56973309.

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'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. More information can be found on Corinthian's website
at 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) our business strategy enabling
us to achieve sustainable growth in both good and bad economic times; (ii) our
growth drivers in fiscal 2010; (iii) continued high unemployment contributing
to growth; and (iv) the statements included 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;
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; potential higher 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); 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 For the twelve
months ended June 30, months ended June 30,
2009 2008 2009 2008
(Unaudited) (Unaudited) (Unaudited)

Net revenues $ 353,513 $ 274,033 $1,307,825 $ 1,068,671
Operating expenses:
Educational services 197,838 167,353 753,707 625,481
General and
administrative 38,670 31,738 135,747 114,938
Marketing and
admissions 74,607 64,358 294,728 276,875
Impairment, facility
closing, and severance
charges 4,378 6,603 4,378 6,603
Total operating expenses 315,493 270,052 1,188,560 1,023,897

Income from operations 38,020 3,981 119,265 44,774

Interest income (383) (538) (1,763) (3,376)
Interest expense 524 281 2,715 1,793
Other (income) expense (1,189) (19) 1,170 (1,387)
Income before provision
for income taxes 39,068 4,257 117,143 47,744
Provision (benefit) for
income taxes 14,406 (507) 46,015 14,879
Income from continuing
operations 24,662 4,764 71,128 32,865
Loss from discontinued
operations, net of tax (1,470) (5,384) (2,368) (11,598)
Net income $ 23,192 $ (620) $ 68,760 $ 21,267

Income per share - Basic:
Income from continuing
operations $ 0.28 $ 0.06 $ 0.82 $ 0.39
Loss from discontinued
operations (0.01) (0.07) (0.02) (0.14)
Net income $ 0.27 $ (0.01) $ 0.80 $ 0.25

Income per share - Diluted:
Income from continuing
operations $ 0.28 $ 0.06 $ 0.81 $ 0.39
Loss from discontinued
operations (0.02) (0.07) (0.02) (0.14)
Net income $ 0.26 $ (0.01) $ 0.79 $ 0.25

Weighted average number
of common shares
outstanding:
Basic 87,021 85,183 86,121 84,954
Diluted 88,257 86,107 87,517 86,013

Selected Consolidated Balance Sheet Data
June 30, June 30,
2009 2008
(Unaudited)

Cash and cash equivalents $ 160,276 $ 32,004
Receivables, net
(including current and
long term notes receivable) 107,446 132,125
Current assets 308,531 216,959
Total assets 798,871 695,966
Current liabilities 200,583 133,645
Long-term debt and capital
leases (including current portion) 28,558 77,608
Total liabilities 281,203 273,944
Total stockholders' equity $ 517,668 $ 422,022

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.

Media, Robert Jaffe of Pondel Wilkinson, Inc., +1-310-279-5969, for Corinthian
Colleges, Inc.; or Investors, Anna Marie Dunlap, SVP Investor Relations of
Corinthian Colleges, Inc., +1-714-424-2678