SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of report: March 25, 2013
CORINTHIAN COLLEGES, INC.
(Exact Name of Registrant as Specified in Charter)
|
Delaware |
|
0-25283 |
|
33-0717312 |
|
(State or other jurisdiction of |
|
Commission file number |
|
(I.R.S. Employer |
|
Incorporation or organization) |
|
|
|
Identification No.) |
|
6 Hutton Centre Drive, Suite 400, Santa Ana, California |
|
92707 |
|
(Address of principal executive offices) |
|
(Zip Code) |
(714) 427-3000
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 7.01 Regulation FD Disclosure.
On March 25, 2013, the Company received draft Cohort Default Rates from the federal Department of Education (“ED”) for students of the Company’s institutions who entered repayment during the federal fiscal year ending September 30, 2010 (the “2010 Cohort”), measured over three federal fiscal years of borrower repayment. (This is a new measurement period. Previously, defaults were calculated over a two-year repayment period.) The weighted average of the Company’s institutions was 19.0%, a 9.2 percentage point decrease from the 28.2% weighted average for the three-year measurement of the 2009 Cohort. For the 2010 Cohort, none of our institutions exceeded the 30% default threshold.
The Company’s institutions also continue to be measured under the prior two-year measurement period through the cohort of students who entered repayment during the federal fiscal year ending September 30, 2011 (the “2011 Cohort”). However, since none of the Company’s institutions exceeded the applicable 25% default threshold for the 2010 Cohort or the 2011 Cohort (the draft results of which the Company received in February 2013), the Company will no longer report on these two-year repayment results.
If any of our institutions, depending on its size, were to lose eligibility to participate in federal student financial aid programs because of high student loan default rates, it could have a material adverse effect on our business.
Preliminary 2010 Cohort Default Rates by OPEID (under the three-year measurement method):
The following table sets forth the draft Cohort Default Rates for our institutions as of March 25, 2013 for the 2010 Cohort:
|
Institution |
|
2010 Draft |
|
|
|
|
|
|
|
Everest College, Seattle, WA (Fife and Vancouver, WA, and Tigard, OR) (1) |
|
15.5 |
% |
|
|
|
|
|
|
Everest College, Alhambra, CA (Everest Institute, Chelsea, MA) (1) |
|
20.9 |
% |
|
|
|
|
|
|
Everest College, Anaheim, CA |
|
24.6 |
% |
|
|
|
|
|
|
Everest College, Colorado Springs, CO (McLean, VA) (1) |
|
18.0 |
% |
|
|
|
|
|
|
Everest College, Gardena, CA (Everest Institute, Norcross, GA) (1) |
|
18.0 |
% |
|
|
|
|
|
|
Everest College, Henderson, NV |
|
21.2 |
% |
|
|
|
|
|
|
Everest College, Ontario, CA (Columbus, OH and Jonesboro, GA) (1) |
|
19.3 |
% |
|
|
|
|
|
|
Everest College, Phoenix, AZ (Mesa, AZ) (1) |
|
19.5 |
% |
|
|
|
|
|
|
Everest College, Bremerton, WA (Everett, and Tacoma, WA and St. Louis, MO) (1) |
|
17.1 |
% |
|
|
|
|
|
|
Everest College, Portland, OR (Vancouver, WA, and Dallas, TX; Everest Institute, Silver Spring, MD) (1) |
|
18.5 |
% |
|
Everest College, Renton, WA (Lynnwood, WA; Everest Institute, Bissonnet, TX) (1) |
|
20.2 |
% |
|
|
|
|
|
|
Everest College, Reseda, CA (Marietta, GA) |
|
19.2 |
% |
|
|
|
|
|
|
Everest College, Salt Lake City, UT (Fort Worth, TX) |
|
17.1 |
% |
|
|
|
|
|
|
Everest College, San Bernardino, CA |
|
23.1 |
% |
|
|
|
|
|
|
Everest College, Skokie, IL (Burr Ridge, IL) (1) |
|
16.4 |
% |
|
|
|
|
|
|
Everest College, Springfield, MO (Ontario Metro, CA) (1) |
|
18.3 |
% |
|
|
|
|
|
|
Everest College, Thornton, CO (Aurora, CO, and Arlington, VA) (1) |
|
18.6 |
% |
|
|
|
|
|
|
Everest College, Torrance, CA |
|
17.8 |
% |
|
|
|
|
|
|
Everest Institute, Brighton, MA (Everest College, North Aurora, IL) (1) |
|
19.1 |
% |
|
|
|
|
|
|
Everest Institute, Cross Lanes, WV (Dekalb, GA and Eagan, MN) (1) |
|
19.0 |
% |
|
|
|
|
|
|
Everest Institute, Grand Rapids, MI, (Kalamazoo, MI, and Everest College, Merrillville, IN) (1) |
|
16.5 |
% |
|
|
|
|
|
|
Everest Institute, Kendall, FL (Ft. Lauderdale, FL) (1) |
|
20.0 |
% |
|
|
|
|
|
|
Everest Institute, Miami, FL (Hialeah, FL) (1) |
|
19.4 |
% |
|
|
|
|
|
|
Everest Institute, Newport News, VA (Chesapeake, VA) (1) |
|
16.5 |
% |
|
|
|
|
|
|
Everest Institute, Pittsburgh, PA |
|
14.1 |
% |
|
|
|
|
|
|
Everest Institute, Rochester, NY (Everest College, Arlington (Mid Cities), TX) (1) |
|
16.9 |
% |
|
|
|
|
|
|
Everest Institute, San Antonio, TX (Greenspoint, and Hobby, TX) (1) |
|
23.6 |
% |
|
|
|
|
|
|
Everest Institute, Southfield, MI (Dearborn and Detroit, MI, Austin, TX, and South Plainfield, NJ) (1) |
|
19.7 |
% |
|
Everest University, Largo, FL (Lakeland and Jacksonville, FL) (1) |
|
21.7 |
% |
|
|
|
|
|
|
Everest University, Orlando (North), FL (Orlando (South), and Melbourne, FL) (1) |
|
22.2 |
% |
|
|
|
|
|
|
Everest University, Pompano Beach, FL (Everest College, Merrionette Park, IL) (1) |
|
19.0 |
% |
|
|
|
|
|
|
Everest University, Tampa, FL (Brandon and Orange Park, FL) (1) |
|
23.2 |
% |
|
|
|
|
|
|
Heald College, San Francisco, CA (Portland, OR and Honolulu, HI) (1) |
|
8.8 |
% |
|
|
|
|
|
|
Heald College, Rancho Cordova, CA |
|
11.5 |
% |
|
|
|
|
|
|
Heald College, Fresno, CA |
|
9.7 |
% |
|
|
|
|
|
|
Heald College, Hayward, CA |
|
8.0 |
% |
|
|
|
|
|
|
Heald College, Concord, CA |
|
9.2 |
% |
|
|
|
|
|
|
Heald College, Roseville, CA |
|
9.0 |
% |
|
|
|
|
|
|
Heald College, Milpitas, CA |
|
8.8 |
% |
|
|
|
|
|
|
Heald College, Stockton, CA |
|
11.5 |
% |
|
|
|
|
|
|
Heald College, Salinas, CA |
|
13.7 |
% |
|
|
|
|
|
|
WyoTech, Daytona Beach, FL |
|
18.5 |
% |
|
|
|
|
|
|
WyoTech, Fremont, CA (Oakland, CA) (1) |
|
21.9 |
% |
|
|
|
|
|
|
WyoTech, Laramie, WY (Sacramento, CA and Blairsville, PA) (1) |
|
14.2 |
% |
|
|
|
|
|
|
WyoTech, Long Beach, CA (Everest College, West Los Angeles and City of Industry, CA) (1) |
|
24.8 |
% |
|
|
|
|
|
|
Consolidated Average Cohort Default Rate |
|
19.0 |
% |
(1) Indicates additional locations wherein the Cohort Default Rates are blended with the main campus.
Certain statements in this Report on Form 8-K 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 the Company’s expectation that its institutions will be able to comply with the limitations on cohort default rates. Many factors may cause the Company’s actual results to differ materially from those discussed in any such forward-looking statements, including risks associated with the uncertain effectiveness of the Company’s default prevention efforts; possible changes in general macroeconomic and market conditions (including unemployment); and other risks and uncertainties described in the Company’s filings with the U.S. Securities and Exchange Commission. If any of the Company’s institutions, depending on its size, were to lose eligibility to participate in federal student financial aid programs because of high student cohort default rates, it could have a material adverse effect on the Company’s business. The historical results achieved are not necessarily indicative of 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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
CORINTHIAN COLLEGES, INC. | |
|
|
|
|
|
|
|
|
|
March 28, 2013 |
/s/ |
Robert Owen |
|
|
|
|
|
|
|
Robert Owen |
|
|
|
Executive Vice President and |
|
|
|
Chief Financial Officer |