SOURCE: EVCI Career Colleges Holding Corp.

September 19, 2005 07:00 ET

EVCI Career Colleges Completes Acquisition of TCI

Acquisition Expected to Be Accretive to 2005 Financial Results Conference Call Scheduled for Wednesday, September 21st at 11:00 a.m. EDT

YONKERS, NY -- (MARKET WIRE) -- September 19, 2005 -- EVCI Career Colleges Holding Corp. (NASDAQ: EVCI) today announced that it has completed its acquisition of Technical Career Institutes, Inc. for $16 million subject to adjustment.

Dr. John J. McGrath, President and Chief Executive Officer of EVCI, noted, "We are extremely excited about the acquisition of TCI. We believe TCI's curriculum is highly complementary to that of our existing offerings and provides EVCI with a tremendous opportunity to expand its student population in New York. We have identified a number of operational synergies, cost savings and growth opportunities that we will begin to implement."

Founded in 1909 and headquartered in New York City, TCI offers two-year associate degree and certificate programs. With an emphasis on technology, TCI offers programs within three major divisions: Business and New Media Technology; Computer and Electronics Technology; Climate Control Technology. TCI has a current enrollment of approximately 3,000 students and operates out of two facilities. The main campus is on 31st street diagonally across from Penn Station, and is supported by a nearby annex facility. TCI is accredited by the New York State Board of Regents. In addition, TCI was recently awarded regional accreditation by the Middle States Commission on Higher Education, which must approve TCI's change of control.

Dr. McGrath concluded, "During the past 96 years TCI has established tremendous name recognition and we will continue to build upon its brand equity. TCI will operate as a wholly owned subsidiary of EVCI."

Following is select financial information of TCI for its 2003 and 2004 fiscal years and a projection of its results for the period 10/1/04 through 9/30/05:

                           Audited           Audited         Projected*
                         FY 9/30/03        FY 9/30/04     10/01/04-9/30/05
                       ---------------   ---------------   ---------------

Revenue                $    35,300,000   $    33,400,000   $    34,300,000
                       ===============   ===============   ===============

Net Income                   1,484,000           890,000         1,218,000

Add:

    Interest expense             2,000            30,000            80,000
    Provision for
     taxes                   1,635,000           740,000         1,000,000
    Depreciation &
     amortization              736,000           720,000           650,000
                       ---------------   ---------------   ---------------

EBITDA                 $     3,857,000   $     2,380,000   $     2,948,000
                       ===============   ===============   ===============
* Income taxes are assumed at a 45% rate. TCI's fiscal year is being changed to the calendar year so it coincides with EVCI's fiscal year. The results of TCI for the period 9/16/05-9/30/05 will be included in EVCI's consolidated results for its third quarter. The TCI results for the period 10/1/04 through 9/15/05 will be reported in a Form 8-K to be filed with the SEC.

EBITDA is a non-GAAP financial measure that should not be considered as an alternative to net income, income before taxes, cash flows from operating activities or any other measure of financial performance calculated in accordance with generally accepted accounting principles. Management believes the information is of interest to many investors and analysts as a metric in evaluating acquisition purchase prices.

About EVCI Career Colleges Holding Corp.

In addition to TCI, EVCI is the holding company for Interboro Institute and the Pennsylvania School of Business.

Interboro offers degree programs leading to the Associate in Occupational Studies degree and Associate in Applied Sciences degree. It has a main campus in mid-town Manhattan and an extension center in each of Flushing, New York and in the Washington Heights section of Manhattan, New York. Interboro also has a college site in Yonkers, New York. Each of Interboro's four locations has an annex that became operational for the fall semester 2004. EVCI acquired Interboro in January 2000.

EVCI acquired PSB in January 2005. PSB is authorized to offer two Associate in Specialized Business degree programs and two diploma programs in information technology as well as three recently authorized business diploma programs. As permitted by the Pennsylvania State Education Department, after six months of teaching the three business diploma programs, PSB plans to seek authorization to award the Associate in Special Business degree for those programs. PSB recently relocated to downtown Allentown, Pennsylvania.

About the Conference Call

EVCI will host a conference call Wednesday, September 21, 2005, at 11:00 a.m. EDT to discuss the TCI acquisition.

To join the conference call, please dial in 10 minutes prior to the start of the call. The conference call is expected to last approximately one hour, including a question and answer period. EVCI will also have a recording of the conference call available for replay beginning on September 21, 2005, and continuing through September 28, 2005.

Details are as follows:

To join the conference call:
Dial-in toll free #: 800-922-0755
Local #:  973-935-2406
Conference ID#: 6512181

To listen to a replay of the call:
Dial-in toll free #: 877-519-4471
Local #:  973-341-3080
Digital Pin#: 6512181
Safe Harbor Statement:

The forward-looking statements in this press release that TCI will be accretive to EVCI's earnings in 2005 and that constitute the projection of TCI's results through September 30, 2005 reflect management's views with respect to future events and are subject to certain assumptions, risks and uncertainties. These include: as is often the case with acquisitions, regulators may impose conditions following the closing, which alone, or together with other factors, could have an adverse impact on management's efforts to increase TCI's revenues and improve its operating results; the projection is based upon unaudited information provided by TCI and, while believed by EVCI to be reliable, because the results of the period 9/16/05 through 9/30/05 will be included in EVCI's consolidated results and not reported separately, investors will not be able to confirm the reliability of the projection; and there are business and regulatory risks, many of which are the same for TCI and EVCI, including those set forth in EVCI's 10-KSB for its year ended December 31, 2004 and its latest 10-Q. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated by any forward-looking statement. EVCI undertakes no obligation to update the information in this press release.

Contact Information

  • Dr. John J. McGrath
    EVCI Career Colleges Holding Corp.
    914.623.0700

    Jeffrey Goldberger/Marybeth Csaby
    KCSA Worldwide
    212.896.1249/212.896.1236
    Email Contact/Email Contact