The market for post-secondary education is large and growing. Expenditures on post-secondary education in the United States totaled over $350.8 billion in the 2003-2004 academic year. The number of students in the United States obtaining some form of post-secondary education totaled 17.0 million in fall of 2002, and The National Center for Education Statistics estimates enrollments will grow to approximately 18.2 million by 2013.

The career-oriented, post-secondary education market is a significant component of the post-secondary education market and it is believed that demand is increasing due to, among other factors, a variety of demographic and economic factors, including an increasing demand for skilled workers, an increasing wage premium for skilled workers, a growing number of high school graduates and working adults seeking post-secondary education, and advantages in career prospects associated with post-secondary education. It is believed that for-profit providers will continue to increase the percentage of students served as for-profit providers are able to offer students advantages relative to traditional academic colleges and universities, including convenient course scheduling, career-oriented curricula and strong job placement opportunities. According to the U.S. Department of Education, or DOE, over the last 25 years, enrollments at for-profit post-secondary institutions have experienced a compounded annual growth rate of approximately 10%, serving 2.9% of total students enrolled in post-secondary institutions in 1999, versus enrollments at traditional colleges and universities that have had a compounded annual growth rate of only 1% over the same time period.

Government spending in support of post-secondary education is another significant factor supporting the growth in student enrollment. According to the DOE, total government aid to support this sector is estimated to have grown from $30 billion in the 1990-1991 academic year to over $73 billion in the 2000-2001 academic year, the last year for which data is available. The federal government provides the majority of this assistance in the form of aid or loans to qualified students. The remainder of government aid comes from state and local government sources. Private third-party lenders also provide student financial aid.

Automotive technology represents the Company’s largest area of study, with 47.5% of its enrollments. Graduates of the Company’s programs are qualified to obtain entry level employment ranging from positions as technicians and mechanics to various apprentice level positions. The Company’s graduates are employed by a wide variety of employers, ranging from automotive and diesel dealers, independent auto body paint and repair shops, to trucking and construction companies.

Allied health represented the Company’s second largest area of study, with 31.9% of its total enrollments up from 7.0% in 2002. Graduates of the Company’s programs are qualified to obtain positions such as medical administrative assistant, EKG technician, claims examiner and pharmacy technician. The Company’s graduates are employed by a wide variety of employers, including hospitals, laboratories, insurance companies, doctors' offices and pharmacies.

10.2% of the Company’s students were enrolled in its skilled trades programs. The Company’s skilled trades programs include heating, ventilation and air conditioning repair, drafting and computer-aided design and EST. Graduates of the Company’s programs are qualified to obtain entry level employment positions such as cable, wiring and HVAC installers and servicers and drafting technicians.

10.4% of the Company’s students were enrolled in its business and information technology programs. The Company has focused its current program offerings on those that are most in demand, such as PC systems technician, network systems administrator and business administration specialist programs.

Educational services and facilities expenses for the year ended December 31, 2004 were $104.8 million, representing an increase of $19.6 million, or 23.1%, as compared to educational services and facilities expenses of $85.2 million for the year ended December 31, 2003.

Selling, general and administrative expenses for the year ended December 31, 2004 was $130.9 million, an increase of $33.3 million, or 34.0%, as compared to selling, general and administrative expenses of $97.7 million for the year ended December 31, 2003.

Interest expense for the year ended December 31, 2004 was $3.0 million representing an increase of $0.2 million or 9.0% from $2.8 million at December 31, 2003.

The Company’s provision for income taxes for the year ended December 31, 2004 was $9.3 million, or 41.6% of pretax income, compared to a $5.4 million, or 39.5% of pretax income, for the year ended December 31, 2003.