Mr. Larson: Career Education is one of the largest global providers in the higher education sector. We are projecting to be over 1.1 billion in revenue in 2003, which puts us number one in our sector for onsite education and number two for online education in terms of revenue. We offer a variety of degrees in five main areas: visual communications and design, business studies, IT, culinary arts and health education. Additionally, the fastest-growing segment of our business is our online education group. They offer 100% online advanced degrees to students who want 'anytime/anyplace' education.
TWST: What has been going on in those markets in this difficult economy?
Mr. Larson: Currently there are around 15 to 16 million people in
postsecondary education. This ranges from the traditional high school
student to the adult learner. We currently have a record number of
leads or people who are interested in advancing their education due to
the strong demographic trends and the slowed economy. At the same time,
you have the state schools faced with a budget crisis due to cuts in
higher education spending. This basically creates more demand for the
for-profit, private colleges like CEC who are not dependent on the
states for their funding. The state schools are trying to make up for
the shortfall by increasing tuition by 20% or 30%, cutting back on
classes, and reducing student services. You have more students then ever
wanting to pursue an advanced degree and there are not enough seats at
the traditional colleges. This just puts the wind to our backs for
sustainable growth for the near future.
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