(RTTNews) - Wednesday, an educational service provider Career Education Corp. (CECO), reported a swing to profit in the third quarter, as revenues increased 14% helped by higher levels of new student starts and student population. The company said third quarter results reflect the progress on transformation initiatives. The company currently expects to achieve adjusted operating income within the low end of the 2010 milestone range a year ahead of schedule.

The Hoffman Estates, Illinois-based company posted net income for the third quarter of $20.79 million or $0.25 per share, compared to a loss of $0.15 million or breakeven per share in the same period last year.

Income from continuing operations for the quarter were $22.97 million or $0.27 per share, up from $1.55 million or $0.02 per share in the previous year period.

Reported operating income for the quarter was $32.3 million or $0.25 per share, compared to a loss of $6.2 million or breakeven per share last year. Excluding significant items and transitional schools, adjusted operating income was $61.0 million or $0.47 per share, up from $18.3 million or $0.18 per share in the prior year period.

On average, fourteen analysts surveyed by Thomson Reuters expected the company to report earnings of $0.14 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue from continuing operations increased 14.1% to $459.91 million from $402.96 million in the corresponding period last year. Thirteen analysts had a consensus revenues estimate of $437.25 million for the quarter.

Excluding the transitional schools, revenue for the quarter rose 16.5% to $457.5 million from $392.7 million in the preceding year period.

Segment-wise, University revenue rose 20% to $206.8 million from a year ago, while health education revenue was $78.0 million, up 31% from last year. Culinary Arts revenue was $91.6 million, up 7%, while Art & Design revenues edged up 7% to $65.9 million from last year. Revenue from International rose 22% to $15.3 million from a year earlier.

As of October 31, 2009, total student population increased 16% to 114,200 from 98,400 in the previous year period. Total online student population rose 24% to 43,800 from 35,200 in the prior year period.

Total net student starts for the quarter rose 19% to 37,670 from 31,600 a year ago. Total online student starts was 13,550, up 15% from 11,800 in the preceding year period.

Operating expenses for the quarter was $427.64 million, compared to $409.20 million in the comparable quarter last year.

For the nine months ended 2009, the company's net income was $50.54 million or $0.58 per share, compared to $28.93 million or $0.32 per share in the previous year period. Income from continuing operations for the period rose to $57.85 million or $0.66 per share from $37.22 million or $0.41 per share in the prior year period.

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