Vocational school operator Corinthian Colleges Inc. of Santa Ana on Thursday reported a drop in net profits for the June quarter and cut its earnings outlook for the next 12 months.
Corinthian reported net quarterly income of $1.8 million. The number was off from $18.7 million a year ago with an $18.2 million charge for asset impairment, facility closing and severance expenses.
Excluding charges, Corinthian earned $13.1 million, in line with what analysts had expected.
Revenue rose 10.6% in the period to $239.3 million.
Corinthian said students at its schools rose 2% in the quarter to 66,114. But new students enrolling fell 5% to 20,168.
For the current quarter, Corinthian said it expects to earn about $9 million, about half of what analysts were expecting. For the year through next June, the company said it expects to earn about $62 million, versus expectations of $77 million.
The company’s shares closed up 0.32% in trading Thursday.
Last month, Corinthian said it was restating revenue for the year ended June 2001 through the quarter ended March 31.
The revision was necessary after it changed its methods for tracking revenue for some diploma programs, the company said.
Corinthian runs schools offering degrees and diploma programs in healthcare, business, criminal justice and technology.
