Corinthian Colleges believes more in marketable skills than in ivory towers. One of the largest for-profit, post-secondary education companies in North America, Corinthian focuses educating on career-oriented students. It has more than 90,000 students enrolled in about 120 schools in some 25 US states, as well as in Canada. Corinthian's institutions operate under the Everest College, WyoTech (for automotive training), and Heald College brand names. The majority of Corinthian's students are enrolled in associate's degree or diploma programs, but the schools also offer bachelor's and master's degrees. Additionally, Corinthian offers online degrees through Everest College.
The company offers degrees and diplomas in health care, business, technology, hospitality management, criminal justice, medical assisting, and court reporting. Corinthian also operates several training centers that provide ongoing professional education and short-term certificate programs. Federal student financial aid programs account for the majority of the company's revenues.
Corinthian reported a 10% revenue decrease to some $1.6 billion in 2012, which the company attributed to lower enrollment levels related to its decision to limit enrollment of students without high school diplomas. The company also reported net losses that year of some $10 million (an improvement over losses of $111 million in 2011) due to decreased enrollment, increased marketing expenses, and severance and impairment charges.
Corinthian grows by acquiring and establishing new campuses, as well as improving existing campuses. For instance, in 2012 it opened two new branch locations and completed renovation efforts at 33 school locations. The company has also been significantly increasing its online course offerings; in 2012 online learning at the company grew by approximately 35% from the previous year to some 425,000 students and about 320 courses. To further its technology-based courses, Corinthian acquired QuickStart Intelligence, a provider of IT training courses (via eight learning centers and online portals), for some $15 million in 2012.
Newly proposed regulations by the Department of Education requiring that for-profit schools pass certain educational thresholds have the potential to affect Corinthian's financial results if its campuses fail to meet the new, proposed standards. In response to changes in how the government monitors student loans, for instance, the company stopped enrolling non-high school graduates who demonstrate an ability to benefit (ATB) in 2011 (because these students are more likely to default on loans). ATB students accounted for about 15% of Corinthian Colleges' admissions in previous years.
To further control expenses, Corinthian has closed or sold some underperforming campuses over the years. In 2012 it announced plans to sell several US campuses of its WyoTech and Everest schools in California and Florida. The company is also working to cut costs by streamlining some administrative processes. – less