Corinthian Colleges Reports Fiscal 2010 First Quarter

Student Population Up 25.9%

SANTA ANA, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Corinthian Colleges, Inc.
(Nasdaq: COCO) reported financial results today for the first quarter ended
September 30, 2009. The results exceeded our previous guidance for start
growth, revenue and diluted earnings per share.

"Our strong first quarter results primarily reflect the continued success of
our initiatives to enhance the student experience and improve operational
performance," said Peter Waller, Corinthian's chief executive officer. "We
have increased our student population for more than three consecutive fiscal
years, resulting 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 the first quarter
compared with the prior year."

"During the balance of fiscal 2010 we expect our student population growth to
continue to be derived from several sources, including implementation of new
programs at existing campuses, online enrollment, facility expansions, new
branch campuses, and the high school recruiting program," Waller said.

"In addition, the recession helps drive enrollment growth, but it also creates
challenges in terms of career placement and student loan repayment," Waller
added. "In the first quarter we continued 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."

On October 20, 2009, the company announced a definitive agreement to purchase
Heald Capital, LLC, the parent company of Heald College, for $395.0 million in
cash, subject to certain working capital items. The transaction is expected
to close in the third quarter ending March 31, 2010. "When complete, we
expect Heald College to generate additional growth beginning in the second
half of fiscal 2010," Waller continued. "The acquisition is consistent with
our strategy of increasing our presence in markets with high growth potential
and expanding our ability to offer regionally accredited programs. Heald is a
regionally accredited institution that has been delivering quality
career-focused academic programs since 1863. We believe the Heald acquisition
will give Corinthian increased market presence, particularly in Northern
California; a growth platform for regionally accredited online and
campus-based programs; and a third strong brand."

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

-- Net revenue was $388.5 million versus $289.6 million, up 34.2%.
-- Total student population at September 30, 2009 was 93,493 versus
74,265
at September 30, 2008, an increase of 25.9%.
-- Total student starts were 36,737 versus 30,075, an increase of 22.2%.
-- Operating income was $53.9 million, compared with $10.1 million.
-- Income from continuing operations was $32.9 million, compared with
$5.7
million.

-- Diluted earnings per share were $0.37 versus $0.07.

Q1 10 Financial Review

Educational services expenses were 55.3% of revenue in Q1 10 versus 61.1% in
Q1 09. The improvement was mainly the result of a higher student population
and the resulting leverage of facilities costs and a decrease in bad debt
expense. Bad debt expense was 6.4% of revenue in Q1 10, lower than our
previous guidance of 6.7% - 7.1%, and down substantially from 8.9% in Q1 09.

Marketing and admissions expenses were 20.6% of revenue in Q1 10 versus 25.3%
in Q1 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 10.2% of revenue in Q1 10 versus
10.1% in Q1 09.

Operating margin - As a result of the factors outlined above, our operating
margin from continuing operations was 13.9% in Q1 10 versus 3.5% in Q1 09.

Cash and cash equivalents totaled $225.3 million at September 30, 2009,
compared with $160.3 million at June 30, 2009.

Cash flow from operations, including discontinued operations, was $80.7
million in Q1 10 versus $27.7 million in Q1 09. The increase in cash flow is
primarily due to an increase in net income, and the timing of cash receipts
and payments related to working capital, primarily prepaid tuition and taxes
payable.

Capital expenditures were $14.3 million in Q1 10 compared with $10.9 million
in Q1 09.

Guidance
Please note that the following guidance pertains to continuing operations and
excludes any one-time charges.

In the second quarter ending December 31, 2009, we expect start growth of 10%
- 12% compared with the second quarter of the prior year; revenue to range
from $395 - $405 million; and diluted earnings per share to be approximately
$0.37 - $0.40.

We are increasing guidance for fiscal 2010. We now expect start growth of 11%
- 13% in fiscal 2010 compared with fiscal 2009, versus previous guidance of
10% - 12%. We expect revenue to range from $1.62 - $1.64 billion, versus
previous guidance of $1.58 -$1.60 billion; and diluted earnings per share to
range from $1.55 to $1.60 versus $1.30 - $1.36 previously.

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 first 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
http://www.companyboardroom.com/www.earnings.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, Thursday, November 5, 2009. To hear
the replay, dial (888) 286-8010 (domestic) or (617) 801-6888 (international)
and enter passcode 38131148.

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, 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) continued student
population growth; (ii) sources of growth in fiscal 2010; (iii) continued high
unemployment contributing to growth; (iv) our expectations regarding the Heald
transaction, including the expected closing date; and (v) 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); the potential
inability or failure to achieve regulatory approvals and satisfy the other
conditions to closing for the Heald acquisition; potential integration risks
associated with the Heald acquisition; the potential failure to identify risks
or liabilities associated with Heald during the company's due diligence
investigation; risks associated with the additional debt incurred to finance
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.

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

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

Consolidated Statements of Operations
For the three months ended
September 30,
2009 2008
---- ----
(Unaudited) (Unaudited)

Net revenues $388,471 $289,581
Operating expenses:
Educational services 215,013 176,835
General and administrative 39,464 29,338
Marketing and admissions 80,104 73,340
Total operating expenses 334,581 279,513
------- -------

Income from operations 53,890 10,068

Interest (income) (300) (449)
Interest expense 504 757
Other (income) expense (1,159) 203
------ ---
Income from continuing operations before
provision for income taxes 54,845 9,557
Provision for income taxes 21,931 3,851
------ -----
Income from continuing operations $32,914 $5,706
(Loss) from discontinued operations, net
of tax - (220)
--- ----
Net income 32,914 5,486
====== =====

Income per share - Basic:
Income from continuing operations $0.38 $0.07
(Loss) from discontinued operations $- $(0.01)
--- ------
Net income $0.38 $0.06
===== =====

Income per share - Diluted:
Income from continuing operations $0.37 $0.07
(Loss) from discontinued operations $- $(0.01)
--- ------
Net income $0.37 $0.06
===== =====

Weighted average number of common shares
outstanding:
Basic 87,264 85,399
Diluted 88,634 86,779

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

Cash, restricted cash, and marketable
securities $225,348 $160,276
Receivables, net (including long term
notes receivable) $108,386 107,446
Current assets $358,769 308,531
Total assets $860,706 798,871
Current liabilities $224,988 200,583
Long-term debt and capital leases
(including current portion) $22,931 28,558
Total liabilities $300,917 281,203
Total stockholders' equity $559,789 $517,668

SOURCE Corinthian Colleges, Inc.

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