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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
June 28, 1994
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DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)
National Education Corporation
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(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Delaware 1-6981 95-2774428
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(STATE OR OTHER JURISDICTION (COMMISSION (IRS EMPLOYER
OF INCORPORATION) FILE NUMBER) IDENTIFICATION NO.)
18400 Von Karman Avenue, Irvine, California 92715
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(714) 474-9400
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REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE
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Exhibit Index appears on Page 2
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Item 5. Other Events.
Attached hereto as Exhibit 99.1 is a copy of National Education
Corporation's (the "Company") News Release issued June 28, 1994, announcing the
Company's plans to discontinue the operations of its National Education Centers
subsidiary.
Item 7. Financial Statements and Exhibits.
(a) Financial Statements of Businesses Acquired.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Exhibits.
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Exhibit
Number Description Page
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99.1 National Education Corporation 3
News Release dated June 28, 1994
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NATIONAL EDUCATION CORPORATION
By: /s/ PHILIP C. MAYNARD
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Philip C. Maynard
Vice President, General Counsel
and Secretary
Date: July 7, 1994
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NATIONAL EDUCATION CORPORATION
18400 Von Karman Avenue
Irvine, California 92715-1594 NEWS
Telephone 714/474-9400
Fax 714/474-9495
CONTACT: CONNIE MCCLUSKEY
DIRECTOR, INVESTOR RELATIONS
(714) 474-9483
NATIONAL EDUCATION CORPORATION ANNOUNCES
DISCONTINUANCE OF ITS NATIONAL EDUCATION CENTERS
IRVINE, CALIFORNIA, JUNE 28, 1994 -- National Education Corporation (NYSE:NEC)
announced today plans to discontinue the operations of its National Education
Centers subsidiary which operates 33 post-secondary career training schools
throughout the United States.
Jerome W. Cwiertnia, president and chief executive officer, said that the
company will record a loss on disposal of the Education Centers of
approximately $40 million ($1.35 loss per share). The company has not provided
any tax benefit from the loss. The loss includes a write-down of assets,
estimated gain/loss of the sale of certain schools, and the estimated costs of
closing certain schools. Estimated proceeds from the sale of schools are
expected to offset expenses incurred to teach-out students at the schools to be
closed.
Cwiertnia said that, after an extended period of attempting to restructure the
business to operate in the increasingly restrictive regulatory environment,
management concluded that it was inappropriate to continue to incur financial
losses at this subsidiary in view of the diminished strategic outlook for the
business. Accordingly, the Education Centers will immediately cease
enrollments at 6 schools. A letter of intent to purchase all of the schools,
including schools with teach-out obligations, has been executed with an
interested buyer, Cwiertnia said. All students presently enrolled at those
schools to be phased out will be given the opportunity to complete their
educational programs.
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Exhibit 99.1
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