"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.