~~Table~~SECURITIES AND ofEXCHANGE ~~Contents~~COMMISSION

~~SECURITIES~~Washington, D. ~~AND~~C. ~~EXCHANGE COMMISSION~~ 20549

~~Washington, D. C. 20549~~ Form 10-Q

~~Form~~QUARTERLY REPORT ~~10-Q~~UNDER SECTION 13 OR 15(d)

~~QUARTERLY~~OF THE ~~REPORT~~SECURITIES ~~UNDER~~EXCHANGE ~~SECTION~~ACT 13OF ~~OR 15(d)~~ 1934

OFFor the Quarter ~~THE~~ended ~~SECURITIES~~June 30, ~~EXCHANGE ACT OF~~2005 Commission ~~1934~~ File No. 0-16992

~~For~~CONCORDE CAREER ~~the Quarter ended March 31~~COLLEGES, ~~2004 Commission File No~~INC. ~~0-16992~~

~~CONCORDE~~(exact name ~~CAREER~~of ~~COLLEGES,~~registrant ~~INC.~~as specified in its charter)

~~(exact name of registrant as specified in its charter)~~ Delaware 43-1440321

Delaware		43-1440321
(State of other jurisdiction of Incorporation or Organization)		(I. R. S. Employer Identification Number)
5800 Foxridge, Suite 500 Mission, Kansas		66202
(Address of Principal Executive Office)		(Zip Code)

(State of other jurisdiction of (I. R. S. Employer Identification

~~Registrant’s~~Incorporation ~~telephone number, including area code: (913~~ or Organization) ~~831-9977~~ Number)

~~Securities~~5800 Foxridge, ~~registered~~Suite ~~pursuant to Section 12(g) of the Act:~~ 500

Mission, Kansas 66202

(Address of Principal Executive Office) (Zip Code)

~~Common~~Registrant’s telephone ~~Stock~~number, ~~$.10~~including ~~Par~~area ~~Value~~ code: (913) 831-9977

~~Indicate~~Securities registered bypursuant ~~check mark whether the registrant (1) has filed all reports required~~ to ~~be filed by~~ Section ~~13 or 15~~12(dg) of the ~~Securities Exchange~~ Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. (1) Yes x No ¨ (2) Yes x No ¨ :

~~Indicate by check mark whether the registrant is an~~Common ~~accelerated~~ Stock ~~filer (as defined in Rule 12b-2 of the Exchange Act)~~$. ~~Yes x No ¨~~10 Par Value

AsIndicate by ofcheck ~~April~~mark ~~19,~~whether ~~2004~~the ~~Concorde~~registrant ~~Career~~(1) ~~Colleges,~~has ~~Inc.~~filed ~~had~~all ~~5,989,659~~reports ~~shares~~required to be filed by Section 13 or 15(d) of ~~Common~~the ~~Stock~~Securities ~~outstanding~~Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

~~Table of Contents~~(1) Yes X No _____ (2) Yes X No _____

Indicate ~~CONCORDE~~ by ~~CAREER~~check ~~COLLEGES,~~mark ~~INC.~~whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes X No _____

~~FORM~~As ~~10-Q~~ of July 16, 2005 Concorde Career Colleges, Inc. had 6,000,093 shares of Common Stock outstanding.

~~THREE~~CONCORDE CAREER ~~MONTHS ENDED MARCH 31~~COLLEGES, ~~2004~~ INC.

~~INDEX~~ FORM 10-Q

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements
	Notes to Condensed Consolidated Financial Statements
	Note 1, 2, and 3	2
	Note 4	3
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Operations	6
	Condensed Consolidated Statements of Cash Flows	7
	Consolidated Statement of Changes in Stockholders’ Equity	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	9
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	14
Item 4.	Controls and Procedures	14
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	14
Item 2.	Change in Securities	15
Item 3.	Defaults Upon Senior Securities	15
Item 4.	Submission of Matters to a Vote of Security Holders	15
Item 5.	Other Information	15
Item 6.	Exhibits and Reports on Form 8-K	15
Signatures		16
Exhibit 11		17
Exhibit 31-1		18
Exhibit 31-2		19
Exhibit 32-1		20
Exhibit 32-2		21

SIX MONTHS ENDED JUNE 30, 2005

1 INDEX

~~Table~~PART I of- ~~Contents~~FINANCIAL INFORMATION

~~PART I — FINANCIAL INFORMATION~~ Page

Item 1. Financial Statements

Notes ~~CONCORDE~~ to Condensed ~~CAREER~~Consolidated ~~COLLEGES,~~Financial ~~INC., AND SUBSIDIARIES~~ Statements

~~NOTES~~ Note 1, ~~TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~2, and 3........................................................................................................................................................................... 2

~~FOR THE THREE MONTHS ENDED MARCH 31, 2004~~ Note 4........................................................................................................................................................................................... 3

~~Overview~~Condensed Consolidated Balance Sheets.......................................................................................................................................... 4

~~The discussion set forth below, as well as other portions of this Form 10-Q, may contain forward-looking comments. Such comments are based upon~~Condensed ~~information~~ Consolidated ~~currently~~Statements ~~available to management and management’s perception thereof as~~ of ~~the date of this Form 10-Q~~ Operations. ~~Actual results of Concorde Career Colleges, Inc~~. ~~(“the Company’s”) operations could materially differ from those forward-looking comments~~. The differences could be caused by a number of factors or combination of factors including, but not limited to, potential adverse effects of regulations; impairment of federal funding; adverse legislative action; student loan default rates; changes in federal or state authorization or accreditation; changes in market needs and technology; changes in competition and the effects of such changes; changes in the economic, political or regulatory environments; litigation involving the Company; changes in the availability of a stable labor force; changes in management strategies and the ability of management to implement those strategies. ~~Readers should take these factors into account in evaluating any such forward-looking comments~~. ................................................................................................................... 6

~~Notes~~Condensed Consolidated ~~to Financial~~ Statements of Cash Flows....................................................................................................................... 7

Consolidated ~~Note~~ Statement 1:of Changes in Stockholders’ Equity......................................................................................................... 8

~~The condensed interim~~Item ~~consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”)~~ 2. ~~Certain information and footnote disclosures~~ ~~normally~~ Management’s ~~included~~Discussion ~~in financial statements prepared according to generally accepted accounting principles have been condensed or omitted pursuant to such rules~~ and ~~regulations~~Analysis ~~although the Company believes that the disclosures are adequate to make the information presented not misleading. The condensed consolidated balance sheet~~ of ~~the~~Financial ~~Company~~Condition as of December 31, 2003 has been derived from the audited consolidated balance sheet of the Company as of that date. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in the Company’s 2003 Annual Report on Form 10-K that was filed by the Company with the Commission on March 15, 2004 (the “2003 Form 10-K”) incorporated herein by reference.

The information included in these interim financial statements reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly state the results of the periods presented. Annualization of amounts inand ~~these~~ Results ~~interim financial statements may not necessarily be indicative~~ of ~~the actual operating results for the full year~~ Operations. .................................................................................................................................................................... 9

~~The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions~~Item ~~that~~ 3. Quantitative ~~affect the reported amounts of assets~~ and ~~liabilities~~Qualitative ~~and~~Disclosures ~~disclosure~~about ~~of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results~~Market ~~could differ from those estimates~~ Risk. ~~The Company has litigation pending which arose in the normal course of business~~. ~~See further discussion in Part II, Item 1 - “Legal Proceedings”~~. .......................................................................................................... 16

~~Note 2:~~ Item 4. Controls and Procedures........................................................................................................................................................................... 16

~~Diluted earnings per share is computed by deducting interest from convertible debt, net of tax and imputed preferred~~PART ~~dividends~~ II ~~from~~- ~~net~~OTHER income (loss) if dilutive. This amount is then divided by the weighted average number of common shares outstanding during the year after giving effect for common stock equivalents (if dilutive) arising from stock options and for warrants and preferred stock assumed converted to common stock. INFORMATION

~~Note 3:~~Item 1. Legal Proceedings....................................................................................................................................................................................... 16

~~On February 27, 2003 the Board of Directors unanimously~~Item ~~adopted the Concorde Career Colleges, Inc~~ 2. ~~2003 Long-term Executive Compensation Plan (the “Compensation Plan”). The Company’s shareholders approved the Compensation Plan at the Annual Meeting held on May 22, 2003. The Compensation~~ ~~Plan~~ Unregistered ~~provides~~Sales anof ~~aggregate~~Equity ~~200,000~~Securities ~~incentive~~and ~~stock~~Use ~~options to be issued to certain employees as authorized by the Compensation Committee~~ of ~~the Board of Directors~~ Proceeds. ............................................................................................................ 16

2Item 3. Defaults Upon Senior Securities............................................................................................................................................................... 17

~~Table~~Item 4. Submission of ~~Contents~~Matters to a Vote of Security Holders........................................................................................................................... 17

~~The Company has additional incentive stock option plans (the “2002 Option Plan,” “2000~~Item Option Plan” and the “1998 Option Plan”) which authorized the Company to issue 300,000, 125,000 and 250,000 shares, respectively of its common stock to certain officers and employees of the Company 5. ~~Options for all plans, including~~ the 2003 Compensation Plan, are granted at fair market value or greater on the date of grant for a term of not more than ten years unless options are canceled due to terms of the option plan. As of March 31, 2004, an aggregate 159,800 shares remain Other ~~available to be granted pursuant to the 1998, 2000, 2002 and 2003 option plans~~ Information. ....................................................................................................................................................................................... 17

~~On February 27, 2003 the Board of Directors unanimously adopted the Concorde Career Colleges, Inc~~Item 6. ~~Restated Employee Stock Purchase Plan (“Employee Plan”). The Plan was approved by the Company’s~~ ~~shareholders at its Annual Meeting held on May 22, 2003~~ Exhibits. ~~The Employee Plan is similar to the previous Employee Stock Purchase Plan that expired September 30, 2003~~. ~~An aggregate of 75,000 shares of Common Stock of the Company are subject to the Employee Plan and are reserved for issuance under such Plan~~. Options to purchase 15,000 shares of Common Stock of the Company are to be offered to participants for purchase in the first year (commencing October 1, 2003 and ending September 30, 2004) and each of the four succeeding plan years. ~~The option price of Common Stock purchased with payroll deductions made during such annual, semi-annual or calendar-quarterly offering for participant therein shall be the lower of:~~ ...................................................................................................................................................................................................... 17

~~(a) 95% of the closing price of the Common Stock on the Offering Commencement Date or the nearest prior business day on which trading occurred on the NASDAQ Stock Market; or~~Signatures.................................................................................................................................................................................................................. 18

~~(b) 95% of the closing price of the Common Stock on the Offering Termination Date or the nearest prior business day on which trading occurred on the NASDAQ Stock Market.~~1

PART ~~Note~~ I 4:-- FINANCIAL INFORMATION

~~The Company has~~Item ~~stock-based employee compensation plans~~ 1. The Company accounts for these plans under the recognition and measurement principles of APB Opinion No. 25, Accounting for Stock Issued to Employees, and related interpretations. Stock-based employee compensation cost is not reflected in the results of operations, as all options granted under those plans had an exercise price equal to or exceeding the market value of the underlying common stock on the grant date. The following table illustrates the effect on net income and income per share if the Company had applied the fair value provisions of Statement of Financial ~~Accounting Standard (SFAS) No. 123, Accounting for Stock-Based Compensation, to stock-based employee compensation.~~ Statements

	Three Months Ended March 31,
	2004		2003
Net income as reported	$	1,304,000	$	1,535,000
Total stock-based employee compensation cost determined under the fair value based method, net of income taxes		197,000		137,000
Pro forma net income	$	1,107,000	$	1,398,000
Income per share
Basic – as reported	$	.22	$	.26
Basic – pro forma	$	.19	$	.24
Diluted – as reported	$	.20	$	.25
Diluted – pro forma	$	.17	$	.22

CONCORDE CAREER COLLEGES, INC., AND SUBSIDIARIES

~~(The remainder of this~~NOTES ~~page~~ TO ~~was~~CONDENSED ~~left~~CONSOLIDATED ~~intentionally~~FINANCIAL ~~blank.)~~ STATEMENTS

3FOR THE SIX MONTHS ENDED JUNE 30, 2005

~~Table of Contents~~Overview

The ~~CONCORDE~~ discussion ~~CAREER~~set ~~COLLEGES~~forth below, ~~INC~~as well as other portions of this Form 10-Q, may contain forward-looking comments. Such comments are based upon information currently available to management and management’s perception thereof as of the date of this Form 10-Q. Actual results of Concorde Career Colleges, Inc. (“the Company’s”) operations could materially differ from those forward-looking comments. The differences could be caused by a number of factors or combination of factors including, but not limited to, potential adverse effects of regulations; impairment of federal funding; adverse legislative action; student loan default rates; changes in federal or state authorization or accreditation; changes in market needs and technology; changes in competition and the effects of such changes; changes in the economic, political or regulatory environments; litigation involving the Company; changes in the availability of a stable labor force; changes in management strategies and the ability of management to implement those strategies. Readers should take these factors into account in evaluating any such forward-looking comments.

~~CONDENSED~~Notes to ~~CONSOLIDATED~~Financial ~~BALANCE SHEETS~~ Statements

~~(unaudited)~~ Note 1:

	March 31, 2004			December 31, 2003
ASSETS
Current Assets:
Cash and cash equivalents	$	16,617,000		$	17,250,000
Short term investments		3,052,000			2,563,000
Receivables
Accounts and notes receivable		27,573,000			24,247,000
Allowance for uncollectible accounts		(1,863,000	)		(1,652,000	)
Net receivables		25,710,000			22,595,000
Deferred income taxes		833,000			833,000
Supplies and prepaid expenses		2,467,000			2,400,000
Total current assets		48,679,000			45,641,000
Fixed Assets, Net		6,779,000			4,928,000
Other Assets:
Long-term notes receivable		1,204,000			1,327,000
Allowance for uncollectible notes		(358,000	)		(348,000	)
Goodwill		954,000			954,000
Intangible, net		184,000			184,000
Total other assets		1,984,000			2,117,000
	$	57,442,000		$	52,686,000

The condensed interim consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared according to generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations although the Company believes that the disclosures are adequate to make the information presented not misleading. The condensed consolidated balance sheet of the Company as of December 31, 2004 has been derived from the audited consolidated balance sheet of the Company as of that date. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in the Company’s 2004 Annual Report on Form 10-K that was filed by the Company with the Commission on March 15, 2005 (the “2004 Form 10-K”).

The information ~~accompanying~~included ~~notes~~in these interim financial statements reflects all normal recurring adjustments that are, anin ~~integral~~the ~~part~~opinion of ~~these~~management, ~~condensed~~necessary ~~consolidated~~to fairly state the financial ~~statements~~position, results of operations and cash flows of the periods presented. Annualization of amounts in these interim financial statements may not necessarily be indicative of the actual operating results for the full year.

(The preparation ~~remainder~~of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of ~~this~~assets ~~page~~and ~~was~~liabilities ~~left~~and ~~intentionally~~disclosure ~~blank~~of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.) Actual results could differ from those estimates. The Company has litigation pending which arose in the normal course of business. See further discussion in Part II, Item 1 - “Legal Proceedings”.

4 Note 2:

~~Table~~Diluted earnings per share is computed by dividing net income (loss) by the weighted average number of ~~Contents~~common shares outstanding during the year after giving effect for common stock equivalents (if dilutive) arising from stock options.

~~CONCORDE CAREER COLLEGES, INC.~~ Note 3:

~~CONDENSED~~On February ~~CONSOLIDATED~~27, ~~BALANCE~~2003 ~~SHEETS~~the Board of Directors unanimously adopted the Concorde Career Colleges, Inc. 2003 Long-term Executive Compensation Plan (the “Compensation Plan”). The Company’s shareholders approved the Compensation Plan at the Annual Meeting held on May 22, 2003. The Compensation Plan provided an aggregate 200,000 incentive stock options to be issued to certain employees as authorized by the Compensation Committee of the Board of Directors. On March 14, 2005, the Board of Directors unanimously approved, subject to shareholder approval, an amendment to the Compensation Plan increasing the common stock available through the Compensation Plan to 450,000 shares, an increase of 250,000 shares. The shareholders approved the amended Plan on May 26, 2005

~~(unaudited)~~ 2

	March 31, 2004			December 31, 2003
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Deferred revenues	$	28,038,000		$	25,540,000
Accrued salaries and wages		2,012,000			1,889,000
Accounts payable		2,720,000			2,883,000
Accrued liabilities		1,542,000			1,279,000
Accrued income taxes payable		665,000			4,000
Total current liabilities		34,977,000			31,595,000
Deferred Income Taxes		428,000			428,000
Stockholders’ Equity
Common stock, ($.10 par value, 19,400,000 shares authorized) 6,279,182 shares issued and 5,988,109 shares outstanding at March 31, 2004 and 6,254,140 shares issued and 5,963,030 shares outstanding at December 31, 2003		628,000			625,000
Capital in excess of par		14,303,000			14,236,000
Retained Earnings		8,258,000			6,954,000
Less treasury stock, 291,073 shares in 2004 and 291,110 in 2003, at cost		(1,152,000	)		(1,152,000	)
Total stockholders’ equity		22,037,000			20,663,000
	$	57,442,000		$	52,686,000

The Company has additional incentive stock option plans (the “2002 Option Plan,”“2000 Option Plan” and the “1998 Option Plan”) which authorized the Company to issue 300,000, 125,000 and 250,000 shares, respectively of its common stock to certain officers and employees of the Company. Options for all plans, including the 2003 Compensation Plan, are granted at fair market value or greater on the date of grant for a term of not more than ten years unless options are canceled due to terms of the option plan. As of June 30, 2005, an aggregate 251,191 shares remain available to be granted pursuant to the 1998, 2000, 2002 and 2003 option plans. As of June 30, 2005, unexercised stock options outstanding were 685,277 compared with 590,018 outstanding as of June 30, 2004.

On February 27, 2003 the Board of Directors unanimously adopted the Concorde Career Colleges, Inc. Restated Employee Stock Purchase Plan (“Employee Plan”). The ~~accompanying~~Plan was ~~notes~~approved by the Company’s shareholders at its Annual Meeting held on May 22, 2003. The Employee Plan is similar to the previous Employee Stock Purchase Plan that expired September 30, 2003. An aggregate of 75,000 shares of Common Stock of the Company are ansubject ~~integral~~to ~~part~~the Employee Plan and are reserved for issuance under such Plan. Options to purchase 15,000 shares of ~~these~~Common ~~condensed~~Stock ~~consolidated~~of ~~financial~~the Company ~~statements~~are to be offered to participants for purchase in the first year (commencing October 1, 2003 and ending September 30, 2004) and each of the four succeeding plan years. The option price of Common Stock purchased with payroll deductions made during such annual, semi-annual or calendar-quarterly offering for participant therein shall be the lower of:

(~~The~~a) ~~remainder~~95% of ~~this~~the ~~page~~closing ~~was~~price ~~left~~of ~~intentionally~~the ~~blank.)~~Common Stock on the Offering Commencement Date or the nearest prior business day on which trading occurred on the NASDAQ Stock Market; or

5(b) 95% of the closing price of the Common Stock on the Offering Termination Date or the nearest prior business day on which trading occurred on the NASDAQ Stock Market.

~~Table of Contents~~Note 4:

The ~~CONCORDE~~ Company ~~CAREER~~has ~~COLLEGES~~stock-based employee compensation plans. The Company accounts for these plans under the recognition and measurement principles of APB Opinion No. 25, ~~INC~~Accounting for Stock Issued to Employees, and related interpretations. Stock-based employee compensation cost is not reflected in the results of operations, as all options granted under those plans had an exercise price equal to or exceeding the market value of the underlying common stock on the grant date. The following table illustrates the effect on net income and income per share if the Company had applied the fair value provisions of Statement of Financial Accounting Standard (SFAS) No. 123, Accounting for Stock-Based Compensation, to stock-based employee compensation.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Six Months Ended June 30,		Three Months Ended June 30,
	2005	2004	2005	2004
Net income as reported	$1,282,000	$2,501,000	$876,000	$1,197,000
Total stock-based employee compensation cost determined under the fair value based method, net of income taxes	563,000	401,000	287,000	200,000
Pro forma net income	$719,000	$2,100,000	$589,000	$997,000

Income per share
Basic - as reported	$ .21	$ .42	$ .15	$ .20
Basic - pro forma	$ .12	$ .35	$ .10	$ .17
Diluted - as reported	$ .21	$ .39	$ .14	$ .19
Diluted - pro forma	$ .12	$ .33	$ .09	$ .16

On December 16, 2004, the Financial Accounting Standards Board (~~unaudited~~FASB) issued Statement of Financial Accounting Standards No. 123 (revised), "Share-Based Payment" ("SFAS 123(R)" or the “standard”). The standard requires expensing of stock options and other share-based payments no later than the first annual reporting period beginning after June 15, 2005. SFAS 123(R) supersedes FASB's earlier rule (the original SFAS 123) that had allowed companies to choose between expensing stock options or showing pro forma disclosure only. Public companies will be required to measure the cost of employee services received in exchange for an award of equity instruments based on a grant-date fair value of the award (with limited exceptions), and that cost must generally be recognized over the vesting period. The FASB does not specify a preference for using a closed form valuation method (such as Black Scholes Merton) or a lattice method (such as a binomial model). The Company is required to implement the standard as of January 1, 2006. Transition provisions set forth by SFAS 123(R) include the “modified prospective” method and “modified retrospective” method. The Company has not estimated the financial impact of this new regulation but believes it will have a material effect on the Company’s financial statements.

	Three Months Ended March, 31
	2004		2003
Net Revenue	$	20,375,000	$	17,359,000
Costs and Expenses:
Instruction costs and services		6,456,000		5,258,000
Selling and promotional		2,653,000		2,122,000
General and administrative		8,395,000		6,984,000
Provision for uncollectible accounts		779,000		515,000
Total Expenses		18,283,000		14,879,000
Operating Income		2,092,000		2,480,000
Interest and Other Non-Operating Income		46,000		44,000
Interest Expense				24,000
Income Before Provision For Income Taxes		2,138,000		2,500,000
Provision For Income Taxes		834,000		965,000
Net Income	$	1,304,000	$	1,535,000
Weighted Average Shares Outstanding:
Basic		5,983,000		5,846,000
Diluted		6,365,000		6,241,000
Net Income Per Share:
Basic	$	.22	$	.26
Diluted	$	.20	$	.25

~~The accompanying notes~~CONCORDE ~~are~~ CAREER anCOLLEGES, ~~integral part of these condensed consolidated financial statements~~INC.

~~(The~~CONDENSED CONSOLIDATED ~~remainder~~BALANCE ~~of this page was left intentionally blank.)~~ SHEETS

6 ASSETS

	June 30, 2005	December 31, 2004
Current Assets:	(unaudited)

Cash and cash equivalents	$13,004,000	$12,676,000
Short-term investments	6,839,000	6,570,000
Receivables
Accounts and notes receivable	30,613,000	24,259,000
Allowance for uncollectible accounts and notes	(1,882,000)	(2,039,000)
Net receivables	28,731,000	22,220,000
Recoverable income taxes		1,197,000
Deferred income taxes	807,000	992,000
Supplies and prepaid expenses	2,989,000	2,803,000
Total current assets	52,370,000	46,458,000

Fixed Assets, Net	9,649,000	9,896,000

Other Assets:
Notes receivable	3,780,000	1,709,000
Allowance for uncollectible notes	(1,059,000)	(586,000)
Net long-term notes receivable	2,721,000	1,123,000
Goodwill	954,000	954,000
Intangible, net	60,000	111,000
Restricted investments	371,000	367,000
Total other assets	4,106,000	2,555,000
	$66,125,000	$58,909,000

The ~~CONCORDE~~ accompanying ~~CAREER~~notes ~~COLLEGES,~~are ~~INC.~~an integral part of these condensed consolidated financial statements.

~~CONDENSED~~(The remainder ~~CONSOLIDATED~~of ~~STATEMENTS~~this OFpage ~~CASH~~was ~~FLOWS~~left intentionally blank.)

~~(unaudited)~~ 4

	Three Months Ended March 31,
	2004			2003
Cash Flows – Operating Activities:
Net Income	$	1,304,000		$	1,535,000
Adjustment to reconcile net income to net cash provided by operating activities —
Depreciation and amortization		451,000			346,000
Provision for uncollectible accounts		779,000			515,000
Change in assets and liabilities —
(Increase) in receivables, net		(3,978,000	)		(4,412,000	)
Increase in deferred revenue		2,498,000			3,603,000
Increase in income taxes payable		661,000			733,000
Increase in accounts payable, accrued expenses and other		127,000			1,038,000
Total adjustments		538,000			1,823,000
Net operating activities		1,842,000			3,358,000
Cash Flows-Investing Activities:
Purchase of short term investments		(489,000	)		(7,000	)
Capital expenditures		(2,056,000	)		(850,000	)
Net investing activities		(2,545,000	)		(857,000	)
Cash Flows-Financing Activities:
Treasury stock purchased					(35,000	)
Dividends paid					(218,000	)
Stock purchase plan		28,000			30,000
Stock options exercised		42,000			6,000
Net financing activities		70,000			(217,000	)
Net Decrease in Cash and Cash Equivalents		(633,000	)		2,284,000
Cash and Cash Equivalents at Beginning of Period		17,250,000			9,777,000
Cash and Cash Equivalents at End of Period	$	16,617,000		$	12,061,000
Supplemental Disclosures of Cash Flow Information
Cash Paid During the Period For:
Interest	$	—		$	39,000
Income taxes		173,000			233,000
Conversion of subordinated debt to common stock through exercise of warrants					3,500,000
Accounts receivable for reimbursement of amounts expended on leasehold improvements		(217,000	)

CONCORDE CAREER COLLEGES, INC.

~~The accompanying notes~~CONDENSED ~~are~~ CONSOLIDATED anBALANCE ~~integral part of these condensed consolidated financial statements.~~ SHEETS

~~(The~~LIABILITIES AND ~~remainder~~STOCKHOLDERS’ ~~of this page was left intentionally blank.)~~ EQUITY

	June 30, 2005	December 31, 2004
Current Liabilities:	(unaudited)

Deferred revenues	$30,660,000	$24,582,000
Accrued salaries and wages	1,685,000	1,830,000
Accounts payable	3,418,000	3,638,000
Accrued liabilities	1,880,000	1,780,000
Accrued income taxes payable	271,000
Total current liabilities	37,914,000	31,830,000

Long-Term Liabilities:
Deferred rent	1,942,000	1,874,000
Deferred Income Taxes	579,000	1,041,000
Total long-term liabilities	2,521,000	2,915,000

Stockholders’ Equity
Common stock, ($.10 par value, 19,400,000 shares authorized) 6,345,701 shares issued and 5,997,942 shares outstanding at June 30, 2005 and 6,318,573 shares issued and 5,970,755 shares outstanding at December 31, 2004	635,000	632,000
Capital in excess of par	14,877,000	14,636,000
Retained earnings	12,158,000	10,876,000
Less treasury stock, 347,759 shares in 2005 and 347,818 shares in 2004, at cost	(1,980,000)	(1,980,000)
Total stockholders’ equity	25,690,000	24,164,000
	$66,125,000	$58,909,000

~~Table~~The accompanying notes are an integral part of ~~Contents~~these condensed consolidated financial statements.

(The ~~CONCORDE~~ remainder ~~CAREER~~of ~~COLLEGES,~~this ~~INC~~page was left intentionally blank.)

~~CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY~~ 5

~~FOR~~CONCORDE CAREER ~~THE THREE MONTHS ENDED MARCH 31~~COLLEGES, ~~2004~~ INC.

~~(unaudited)~~CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	CommonStock		Capital inExcess of Par		RetainedEarnings(Deficit)		TreasuryStock			Total
BALANCE, December 31, 2003	$	625,000	$	14,236,000	$	6,954,000	$	(1,152,000	)	$	20,663,000
Net Income						1,304,000					1,304,000
Stock Options Exercised		3,000		39,000							42,000
Employee Stock Purchase Plan				28,000							28,000
BALANCE, March 31, 2004	$	628,000	$	14,303,000	$	8,258,000	$	(1,152,000	)	$	22,037,000

(unaudited)

The accompanying notes are an integral part of these condensed consolidated financial statements.

	Six Months Ended June 30,		Three Months Ended June 30,
	2005	2004	2005	2004
Net Revenue	$41,606,000	$41,002,000	$21,305,000	$20,627,000
Costs and Expenses:
Instruction costs and services	13,291,000	12,907,000	6,760,000	6,451,000
Selling and promotional	6,901,000	5,456,000	3,403,000	2,803,000
General and administrative	18,067,000	16,894,000	8,898,000	8,499,000
Provision for uncollectible accounts	1,544,000	1,734,000	980,000	955,000
Total Expenses	39,803,000	36,991,000	20,041,000	18,708,000
Operating Income	1,803,000	4,011,000	1,264,000	1,919,000
Interest and Other Non-Operating Income	276,000	90,000	150,000	44,000
Income Before Provision For Income Taxes	2,079,000	4,101,000	1,414,000	1,963,000
Provision For Income Taxes	797,000	1,600,000	538,000	766,000
Net Income	$1,282,000	$2,501,000	$876,000	$1,197,000
Weighted Average Shares Outstanding:
Basic	5,984,000	5,987,000	5,991,000	5,990,000
Diluted	6,252,000	6,349,000	6,230,000	6,330,000
Net Income Per Share:
Basic	$.21	$.42	$.15	$.20
Diluted	$.21	$.39	$.14	$.19

(The accompanying ~~remainder~~notes ofare ~~this~~an ~~page~~integral ~~was~~part ~~left~~of ~~intentionally~~these ~~blank.)~~condensed consolidated financial statements.

8(The remainder of this page was left intentionally blank.)

~~Table of Contents~~6

CONCORDE ~~Item~~ CAREER 2.COLLEGES, ~~Management’s Discussion and Analysis of Financial Condition and Results of Operations~~ INC.

~~The~~CONDENSED CONSOLIDATED ~~following~~STATEMENTS ~~table~~OF ~~presents~~CASH ~~certain consolidated statement of operations items as a percentage of total revenue for periods indicated.~~ FLOWS

	Three Months Ended March 31,
	2004		2003
Revenue	100.0	%	100.0	%
Operating Expenses:
Instruction costs and services	31.7		30.3
Selling and promotional	13.0		12.2
General and administrative	41.2		40.2
Provision for uncollectible accounts	3.8		3.0
Total operating expenses	89.7		85.7
Operating income	10.3		14.3
Other non-operating income	0.2		0.3
Interest expense	—		0.1
Income before provision for income taxes	10.5		14.5
Provision for income taxes	4.1		5.6
Net income	6.4	%	8.9	%

(unaudited)

(The remainder of this page was left intentionally blank.)

	Six Months Ended June 30,
	2005	2004
Cash Flows - Operating Activities:
Net Income	$1,282,000	$2,501,000
Adjustment to reconcile net income to net cash provided by operating activities -
Depreciation and amortization	1,083,000	953,000
Provision for uncollectible accounts	1,544,000	1,734,000
Provision for deferred income taxes	(277,000)	----
Leasehold improvement incentives received	266,000	1,287,000
Change in assets and liabilities --
(Increase) in receivables, net	(9,653,000)	(2,559,000)
Increase (Decrease) in deferred revenue	6,078,000	(130,000)
Increase (Decrease) in income taxes payable/receivable	1,468,000	(414,000)
Increase (Decrease) in accounts payable, accrued expenses and other	(559,000)	(1,716,000)
Total adjustments	(50,000)	(845,000)
Net operating activities	1,232,000	1,656,000
Cash Flows-Investing Activities:
Acquisition of intangible assets	(13,000)	-----
Purchase of short-term investments	(273,000)	(860,000)
Capital expenditures	(862,000)	(2,276,000)
Net investing activities	(1,148,000)	(3,136,000)
Cash Flows-Financing Activities:
Stock purchase plan	53,000	56,000
Stock options exercised, including tax benefit	191,000	54,000
Net financing activities	244,000	110,000
Net Increase (Decrease) in Cash and Cash Equivalents	328,000	(1,370,000)
Cash and Cash Equivalents at Beginning of Period	12,676,000	17,250,000
Cash and Cash Equivalents at End of Period	$13,004,000	$15,880,000

Supplemental Disclosures of Cash Flow Information
Cash Paid During the Period For Income Taxes:	$40,000	$2,015,000

9The accompanying notes are an integral part of these condensed consolidated financial statements.

~~Table~~(The remainder of ~~Contents~~this page was left intentionally blank.)

~~Results of Operations~~ 7

~~General~~CONCORDE CAREER COLLEGES, INC.

The Company owns and operates proprietary, postsecondary institutions that offer career vocational training programs primarily in the allied health field. As of March 31, 2004, the Company operated Campuses at 12CONSOLIDATED ~~locations~~ STATEMENT inOF ~~seven~~CHANGES ~~states~~IN ~~(the “Campuses”). The Company~~STOCKHOLDERS’s revenue is derived almost entirely from tuition, textbook sales, fees and charges paid by, or on behalf of, our students. A large number of the Company’s students paid a substantial portion of tuition and other fees with funds received through student assistance financial aid programs under Title IV of the Higher Education Act of 1965, as amended (the “HEA”). The Company received approximately 81% of cash receipts from such funds for the year ended December 31, 2003. EQUITY

The Company’s strategy over the next two years is to grow revenue primarily by increasing the number of programs offered at each of its twelve campuses. Programs that are currently being offered by the Company will be transplanted toFOR ~~other~~ THE ~~campuses.~~SIX ~~Campuses~~MONTHS ~~currently~~ENDED ~~offer~~JUNE ~~an average of five of the Company’s twelve primary programs. The Company has experience teaching each of the programs targeted for transplant~~30, ~~however~~2005 due to regulatory requirements each transplanted program must receive its own regulatory approvals before being offered at a campus. The Company has not achieved its goal of transplanting new programs in 2003 and ~~early~~ 2004. The Company is generally required to hire staff, purchase equipment and have classroom space available prior to submitting new programs to accreditation bodies for approval. As a result the Company has incurred expenses for new program transplants (occupancy, depreciation and faculty) in advance of student enrollments.

The Company’s revenue varies based on student enrollment and population. The number of students that attend our Campuses, the number of new enrollments during a fiscal period, student retention rates and general economic conditions impacts student population. The introduction of new programs at certain campuses, improved advertising effectiveness and student retention have been significant factors of increased student population in the last three years. (unaudited)

The Company and each of its campuses are subject to extensive regulation. These regulations cover virtually all phases of the Company’s operations, including the Company’s educational programs, facilities, instructional and administrative staff, administrative procedures, financial operations and financial strength. They also affect the Company’s ability to acquire or open additional Campuses or change the Company’s corporate structure. These regulatory agencies periodically revise their requirements and modify their interpretations of existing requirements. Each of the Company’s Campuses must be authorized by the state in which it operates, accredited by an accrediting commission that the U.S. Department of Education (“ED”) recognizes, and certified by the ED to participate in Title IV Programs. Any substantial restrictions on the Campuses ability to participate in Title IV Programs would adversely affect our ability to enroll students, expand programs and student population.

	Common Stock	Capital in Excess of Par	Retained Earnings (Deficit)	Treasury Stock	Total
BALANCE, December 31, 2004	$632,000	$14,636,000	$10,876,000	$(1,980,000)	$24,164,000
Net Income			1,282,000		1,282,000
Stock Options Exercised, Including Tax Benefit	3,000	188,000			191,000
Employee Stock Purchase Plan		53,000			53,000
BALANCE, June 30, 2005	$635,000	$14,877,000	$12,158,000	$(1,980,000)	$25,690,000

BALANCE, December 31, 2003	$625,000	$14,236,000	$6,954,000	$(1,152,000)	$20,663,000
Net Income			2,501,000		2,501,000
Stock Options Exercised	3,000	51,000			54,000
Employee Stock Purchase Plan		56,000			56,000
BALANCE, June 30, 2004	$628,000	$14,343,000	$9,455,000	$(1,152,000)	$23,274,000

The accompanying ~~Company~~notes ~~establishes~~are an ~~accounts~~integral ~~receivable~~part ~~and a corresponding deferred revenue liability for each student upon commencement~~ of athese ~~program~~condensed ~~of study.~~consolidated ~~The~~ financial ~~deferred revenue liability, consisting of tuition and non-refundable registration fees, is recognized into income ratably over the length of the program~~statements. If a student withdraws from a program, the unearned portion of the tuition for which the student has paid is refunded on a pro-rata basis. Textbook and uniform sales are recognized when they occur. Any unpaid balance due when the student withdraws is generally due directly from the student, not from a federal or state agency.

~~Accounts receivable are due from students and are expected to~~(The be remainder ~~paid primarily through the use~~ of ~~federal~~this ~~and~~page ~~state~~was ~~sources~~left ofintentionally ~~funds~~blank.) Students are responsible for amounts not available through federal and state sources and unpaid amounts due when the student withdraws. The Company expects that non-Title IV accounts and notes receivable due from students may continue to increase in the future and that the related provision for uncollectible accounts may also increase dependent upon the Company’s collection effectiveness and student retention.

~~THREE MONTHS ENDED MARCH 31, 2004 COMPARED TO~~ 8

~~THREE~~Item 2. ~~MONTHS~~Management’s Discussion ~~ENDED~~and ~~MARCH~~Analysis ~~31,~~of ~~2003~~Financial Condition and Results of Operations

~~Student~~The following ~~enrollments~~table ~~increased~~presents ~~7.7%~~certain toconsolidated ~~2,675~~statement ~~for the three months ended March 31, 2004 compared to 2,483 in 2003. Higher enrollments were the result~~ of anoperations items ~~increased~~ as demand for the Company’s courses compared to 2003. Student population increased 11.6% to 6,371 at March 31, 2004 compared to 5,709 at March 31, 2003. Average student population for the three months ending March 31, 2004 increaseda ~~11.9%~~ percentage toof ~~6,276~~net ~~compared~~revenue ~~to 5,610~~ for ~~the~~periods ~~same period in 2003~~indicated.

Net income of $1,304,000 was recorded for the three months ended March 31, 2004 compared to $1,535,000 in

	Six Months Ended June 30,		Three Months Ended June 30,
	2005	2004	2005	2004
Net Revenue	100.0%	100.0%	100.0%	100.0%
Operating Expenses:
Instruction costs and services	32.0	31.5	31.7	31.3
Selling and promotional	16.6	13.3	16.0	13.6
General and administrative	43.4	41.2	41.8	41.2
Provision for uncollectible accounts	3.7	4.2	4.6	4.6
Total operating expenses	95.7	90.2	94.1	90.7
Operating income	4.3	9.8	5.9	9.3
Other non-operating income	0.7	0.2	0.7	0.2
Income before provision for income taxes	5.0	10.0	6.6	9.5
Provision for income taxes	1.9	3.9	2.5	3.7
Net income	3.1%	6.1%	4.1%	5.8%

10 Executive Summary

~~Table~~The Company changed its advertising mix beginning with the fourth quarter of ~~Contents~~2003 spending a greater percentage of overall advertising dollars on Internet advertising. Internet advertising was 17.2% of the advertising expense for the six months ended June 30, 2005 compared to 10.1% in 2004.

~~2003.~~The Company’s ~~Profit~~leads ~~decreased~~(inquiries asfor ~~expenses~~enrollment) ~~accelerated~~increased ~~at a faster rate than revenue~~19.1% ~~The~~for ~~quarter~~the ~~included~~six ~~$131,000 of payroll~~months ~~expense~~ ended ~~related~~June to30, ~~one~~2005 ~~additional~~and ~~day~~27.6% offor ~~accrued~~the ~~payroll~~quarter as compared to the ~~prior~~same ~~year quarter~~periods in 2004. ~~There~~Enrollments ~~were~~increased ~~sixty~~due ~~five~~to ~~days~~additional ofleads; ~~payroll~~however, in the ~~first~~Company ~~quarter~~had lower ofoverall ~~2004~~rates ~~compared to sixty four in the first quarter~~ of ~~2003.~~conversion ~~Each~~from ~~subsequent~~lead ~~quarter~~into inenrollment ~~2004~~(“conversion rate”) ~~will~~ during ~~have~~2005 ~~the~~as ~~same~~compared ~~number~~to ~~of payroll days as~~ the ~~comparable~~first ~~prior~~six ~~year~~months ~~quarter~~of 2004.

~~The~~Internet leads ~~Company~~were is42.2% ~~generally~~of ~~required~~the tototal ~~hire~~leads ~~staff,~~for ~~purchase~~the ~~equipment~~six ~~and~~months ~~have~~ended ~~classroom~~June ~~space~~30, ~~available~~2005 compared ~~prior~~ to ~~submitting~~29.1% ~~new~~in ~~programs~~2004. toLeads ~~accreditation~~from ~~bodies~~Internet ~~for~~advertising ~~approval.~~had As a ~~result~~lower conversion ~~the~~rate than other forms of advertising. The Company ~~has~~believes ~~incurred~~conversion ~~expenses~~ rates for ~~new~~Internet ~~program~~leads ~~transplants~~can ~~(occupancy~~be increased with additional training; however, the Company ~~depreciation~~believes Internet leads will not have the same conversion rates as television and ~~faculty)~~newspaper. inTelevision ~~advance~~leads were 12.1% of ~~student~~the ~~enrollments~~total leads for the six months ended June 30, 2005 compared to 16.5% for the same period in 2004.

~~Revenue~~The Company’s ~~increased~~net ~~17.4%~~income ordecreased ~~$3,016,000 to $20,375,000~~ for the ~~three~~six months ended ~~March~~June 3130, 2005 compared to the same period in 2004 due to additional expenses and lower average student population. Payroll and advertising expense represented the largest dollar increases compared to ~~$17,359,000~~2004. Payroll increased as staff was added for new programs during the ~~same~~last ~~period~~six inmonths ~~2003~~of 2004 and first six months of 2005. In ~~Revenue~~ addition new corporate positions were added during the fourth quarter of 2004 as the Company restructured reporting and oversight of its campuses. Advertising expense increased ~~due~~as tothe ~~higher~~Company ~~student~~purchased ~~enrollments~~additional television, newsprint and internet advertising to improve lead flow and increase enrollment. Enrollments increased compared to 2004; however, average population decreased due to lower student population ~~and~~at the beginning of the year compared to the prior year. The beginning student population was 5,148 at January 1, 2005 compared with 5,732 at January 1, 2004. The average population decrease was offset by a tuition increase ofthat ~~approximately~~resulted 5%in increased revenue.

~~Instruction~~The North Hollywood, ~~Costs~~California ~~and~~Campus ~~Services~~Vocational –Nurse ~~increased~~program 22received an extension of its provisional accreditation.8% orThe ~~$1,198,000~~program toreceived ~~$6,456,000~~provisional ~~compared~~accreditation due to ~~$5,258,000~~low inVocational ~~2003~~Nurse License exam pass rates. The ~~increase~~program ~~was~~remains ~~primarily a~~on ~~result~~ provisional ofaccreditation; ~~increased~~however, ~~salary~~the ~~expense~~Board ~~compared~~of toVocational ~~2003.~~Nursing ~~Salaries~~and Psychiatric ~~increased~~Technicians, ~~$879~~the (“BVNPT”),~~000~~ ~~due~~approved toadmission ~~higher~~of ~~wages,~~30 anstudents ~~increase~~for ina June ~~the~~2005 ~~number~~start. ofAll ~~staff,~~future ~~and~~class ~~one~~starts ~~additional~~must ~~day~~be ofpre-approved ~~payroll~~by ~~compared~~the toBVNPT. Approximately ~~2003~~25 students enrolled in the June 2005 class. The Company believes that it has ~~added~~made ~~additional~~appropriate ~~instructional~~changes ~~staff~~to inmaintain pass rates to an acceptable ~~anticipation~~ level ofin ~~program~~the ~~transplants.~~future; ~~Textbooks~~however, ~~uniforms,~~there ~~and~~is ~~classroom~~no ~~supplies~~assurance ~~accounted~~that ~~for~~ the ~~remaining~~BVNPT ~~increase~~will approve additional enrollments in the future.

Selling and Promotional – increased 25.0% or $531,000 to $2,653,000 compared to $2,122,000 in 2003. The increase is primarily a result of additional television, newspaper, and Internet advertising compared to 2003. 9

~~General~~ The ~~and~~Company ~~Administrative~~has –many ~~increased~~students ~~20.2%~~that orare ~~$1,411,000~~unable to ~~$8,395,000~~finance ~~compared~~their toeducation ~~$6,984,000~~through private inloans ~~2003.~~and ~~Rent~~are ~~expense~~unable ~~increased~~to ~~$396,000.~~fully ~~The~~fund ~~increase~~their ~~was~~education ~~the~~with ~~result~~federal ~~of normal rent increases, Campus~~loans ~~expansions~~ and ~~an acceleration of the rent for the old Denver Campus location~~grants. ~~Four~~The ~~Campuses~~Company ~~were~~has ~~moved~~maintained toa ~~new~~policy ~~locations~~of inproviding ~~the~~internal ~~prior~~payment plans 12for ~~months~~students ~~and~~that ~~additional~~need ~~space was leased at several Campuses~~assistance. ~~This~~The ~~has~~Company ~~resulted~~extended inthe anlength ~~additional 48,000 square~~of ~~feet~~ payment ~~being~~plans ~~leased~~for atits ~~March~~students ~~31,~~beginning ~~2004 compared to March 31, 2003 resulting~~ in ~~additional~~the ~~rent~~first ~~expense~~quarter of ~~$293,000 for the quarter~~2005. The payment ~~Denver,~~plans ~~Colorado~~now ~~campus~~allow ~~was~~a ~~moved~~student to adefer ~~new~~some ~~location~~of ~~during~~the ~~March~~cost ~~2004.~~of ~~The~~education ~~lease~~for a longer onperiod ~~the~~after ~~previous~~completion ~~location~~of ~~expires July~~their ~~31,~~program ~~2004~~of study. The Company’s ~~expensed~~prior internal ~~the~~payment ~~remaining~~plans ~~lease~~were ~~liability~~generally oflimited ~~$103,000~~to ~~for~~ the ~~old~~program ~~location~~length inplus ~~the~~six months ~~first~~and ~~quarter~~required ofthe ~~2004.~~student ~~Payroll~~to ~~increased~~make ~~$305,000~~payments ~~compared~~while toin ~~2003~~school. ~~Additional~~The ~~employees due to larger enrollment, higher wages, and one~~Company’s ~~additional~~ new ~~day~~payment ofplan ~~payroll~~structure ~~were~~allows ~~factors in~~ the ~~increase.~~campus ~~Depreciation~~to ~~expense~~offer ~~increased~~payment ~~$100,000~~plans asup ~~capital~~to ~~expenditures~~five years ~~increased~~in ~~during 2004~~length. ~~Capital~~Students ~~expenditures~~are ~~were~~required ~~primarily related~~ to ~~leasehold~~make ~~improvements~~payments ~~and~~while ~~new~~attending ~~equipment for two campus~~school. ~~moves~~ If ~~and~~the ~~leasehold~~new ~~improvements~~payment ~~and~~plans ~~new~~continue ~~equipment~~ for ~~new~~an ~~programs.~~extended ~~The~~period ~~Company~~of ~~has~~time ~~increased capital expenditures in~~ the ~~last~~Company could ~~two~~see ~~years~~its inaccounts ~~preparation~~receivable ~~of transplanting programs~~ and ~~moving~~provision ~~campuses~~for touncollectible ~~new expanded facilities. Professional fees~~accounts ~~increased~~ increase ~~$212,000~~in ~~due~~future ~~to regulatory filings and legal costs~~periods. ~~Insurance expense increased $149,000 due to higher insurance premiums.~~ The Company ~~also~~continues ~~experienced~~to ~~increased~~evaluate ~~expenses~~external insources of ~~several~~private ~~other~~loans ~~categories~~and asfunds ~~average~~for ~~student population increased 11~~students.~~9%.~~

~~Provision for Uncollectible Accounts –~~Results ~~increased $264,000 to $779,000 compared to $515,000 in 2003. Students that dropped from their program~~ of study as a percentage of population increased to 5.0% in 2004 from 4.8% at March 31, 2003. Accounts receivable due from dropped students is generally less collectible than balances due from graduates. Therefore, an increase in the drop percentage in future quarters may lead to an increase in the provision for uncollectible accounts as a percentage of revenue in future periods. Operations

Interest and Other Non-Operating Income – increased to $46,000 for the quarter ended March 31, 2004 compared to $44,000 in 2003. The Company maintains its cash and temporary investments in short term highly liquid accounts including CD’s and money markets. General

~~Interest~~The Company ~~Expense~~owns –and ~~was~~operates ~~$24~~proprietary,~~000~~ ~~for~~postsecondary institutions that offer career vocational training programs in the ~~quarter~~allied ~~ended~~health ~~March~~field. ~~31,~~The Company ~~2003~~ operated campuses at 12 locations in seven states (the “Campuses”) as of June 30, 2005. The Company’s ~~subordinated~~revenue ~~debt~~is ~~was~~derived ~~eliminated~~almost inentirely ~~February~~from ~~2003~~tuition, textbook sales, fees and charges paid by, or on behalf of, our students. A large number of the Company’s ~~was~~students nopaid ~~longer~~a ~~required~~substantial toportion ~~make~~of ~~interest~~tuition ~~payments~~and ~~after~~other fees ~~that~~with ~~date.~~funds ~~See~~received ~~discussion~~through student assistance financial aid programs under Title ~~Liquidity~~IV ~~and~~of ~~Capital~~the ~~Resources~~Higher Education Act of 1965, as amended (the "HEA"). The Company received approximately 79% of cash receipts from such funds for the year ended December 31, 2004.

~~Provision~~The Company’s ~~for~~near ~~Income~~term ~~Taxes~~strategy –is ato ~~tax~~grow ~~provision~~revenue primarily by increasing the number of ~~$834,000~~programs oroffered 39at each of its twelve campuses.0% Programs that are of currently ~~pretax~~being ~~income~~offered ~~was~~by ~~recorded~~the ~~for~~Company will be transplanted to other campuses. Campuses currently offer an average of six of the ~~quarter~~Company’s ~~ended~~twelve ~~March~~primary programs. 31The Company has experience teaching each of the programs targeted for transplant, ~~2004~~however ~~compared~~due to ~~$965~~regulatory requirements each transplanted program must receive its own regulatory approvals before being offered at a campus. The Company is generally required to hire staff,~~000~~ orpurchase 38equipment and have classroom space available prior to submitting new programs to accreditation bodies for approval.6% As a result the Company has incurred expenses for new program transplants (occupancy, depreciation and faculty) in ~~2003~~advance of student enrollments.

~~EPS~~The Company ~~and~~invested ~~Weighted~~capital ~~Average~~expenditures ~~Common~~to ~~Shares~~improve –and ~~Basic~~expand ~~weighted~~facilities ~~average~~in ~~common~~2003 and ~~shares~~2004. ~~increased~~Additional tospace ~~5,983,000~~was inadded ~~2004~~at ~~from~~all ~~5,846,000~~12 ~~in 2003~~Campuses. ~~Common shares~~Five ~~increased~~Campuses ~~due~~were moved to larger facilities in the ~~Company’s~~past ~~employee~~two ~~stock~~years, ~~purchase~~San ~~plan~~Bernardino, ~~and~~California in February ~~stock~~2003, ~~options~~Arlington, ~~exercised.~~Texas ~~Basic~~in ~~income~~June ~~per~~2003, ~~share~~San ~~was~~Diego, ~~$.22~~California in January 2004, ~~compared~~Denver, ~~with~~Colorado ~~$.26~~ in ~~2003.~~March ~~Diluted~~2004, ~~weighted~~and ~~average~~Portland, ~~common~~Oregon ~~shares~~in ~~outstanding~~September ~~increased~~2004. Capital expenditures to 6improve facilities and equipment were $1,~~365~~842,000 in ~~2004~~ 2002, ~~from 6~~$3,~~241~~731,000 in 2003., ~~The~~$6,147,000 ~~average~~in ~~common~~2004, ~~shares~~and ~~increased~~$862,000 ~~due~~for tothe ~~stock~~first ~~options~~six months ~~not~~of ~~yet exercised~~2005. ~~Diluted~~The ~~income~~Company ~~per~~anticipates ~~share~~that ~~was~~2005 ~~$.20~~capital ~~for~~expenditures ~~the~~will be below ~~quarter~~2002 ~~ended~~amounts ~~March~~as ~~31,~~the ~~2004~~Company ~~compared~~has ~~with~~completed ~~$.25~~most ~~for~~of ~~2003.~~its major projects.

11The addition of classrooms and upgraded facilities has provided the Company the space to expand program offerings at its Campuses. Two programs were added in the first quarter of 2005, and the Company anticipates adding a total of ten programs for the twelve months ending December 31, 2005.

~~Table~~The Company has traditionally relied primarily on television and newspaper advertising to generate leads from prospective students. The Company increased the portion of ~~Contents~~advertising expense dedicated to the Internet beginning in the fourth quarter of 2003. Internet advertising was 17.2% of the advertising expense in 2005 compared to 10.1% in 2004. Internet leads were 42.2% of the total leads in 2005 compared to 29.1% in 2004.

~~Liquidity~~The Company’s revenue varies based on student enrollment and ~~Capital~~population. ~~Resources~~The number of students that attend our Campuses, the number of new enrollments during a fiscal period, student retention rates and general economic conditions impact student population. The introduction of new programs at certain campuses, advertising effectiveness, conversion rates, and student retention are significant factors of student population growth and decline.

~~Credit Facility~~ 10

The Company ~~secured~~and aeach ~~$3,000,000~~of ~~revolving~~its ~~credit~~campuses ~~facility~~are ~~with~~subject ~~Security~~to ~~Bank~~extensive ofregulation. ~~Kansas~~These regulations ~~City~~cover invirtually ~~March~~all ~~31,~~phases ~~1997.~~of ~~The~~the ~~amount~~Company’s ~~available~~operations, ~~under~~ including the ~~facility~~Company’s ~~is offset~~educational byprograms, ~~the~~facilities, ~~letter~~instructional ofand ~~credit~~administrative staff, ~~discussed~~administrative ~~below.~~procedures, Asfinancial aoperations ~~result,~~and ~~$2,882,000~~financial ~~was~~strength. They ~~available~~also ~~under~~affect the ~~facility~~Company’s atability ~~March~~to ~~31,~~acquire ~~2004.~~or ~~This~~open ~~facility~~additional isCampuses ~~due~~or change tothe ~~expire~~Company’s oncorporate ~~April~~structure. ~~30,~~Regulatory ~~2004.~~agencies ~~This~~periodically revise ~~facility~~their ~~has~~requirements aand ~~variable~~modify ~~interest~~their ~~rate~~interpretations of ~~prime plus one percent, and~~existing no requirements. ~~commitment~~Each ~~fee.~~of ~~The~~the ~~credit~~Company’s ~~facility~~Campuses ismust ~~secured~~be authorized by ~~all~~the ~~cash,~~state ~~accounts~~in which ~~and~~it ~~notes receivable~~operates, ~~furniture~~accredited ~~and~~by ~~equipment,~~an ~~and~~accrediting ~~capital~~commission ~~stock~~that of the ~~subsidiaries~~U.S. Department ~~The~~of ~~Company~~Education is("ED") ~~required~~recognizes, toand ~~maintain~~certified aby ~~minimum~~the ~~level~~ED ofto participate ~~subordinated~~in ~~debt~~Title ~~plus~~IV ~~consolidated tangible~~Programs. ~~net~~Any ~~worth~~substantial ofrestrictions ~~not~~on ~~less~~the ~~than~~Campuses ability ~~$7,600,000~~to asparticipate ~~part~~in ofTitle ~~this~~IV ~~agreement.~~Programs ~~The~~would ~~Company~~adversely ~~has~~affect ~~not~~our ~~borrowed~~ability to ~~any~~enroll ~~funds~~students, ~~under~~expand ~~this~~programs ~~facility.~~and student population.

OnThe Company’s ~~March~~North ~~31,~~Hollywood Campus had a reduction in enrollments in nursing due to state board programmatic provisional approval beginning with the second quarter of 2004,. The Company received notification in May 2004 that the program would not be allowed to enroll additional students until yearly average minimum pass rates on the licensure examination for graduates were within acceptable levels as required by the state board. The Company iswas ~~obligated~~notified ~~under~~in athe ~~$118,000~~second ~~letter~~quarter of ~~credit~~2005 asthat ~~security~~it could admit 30 students for a ~~lease~~June on2005 ~~the~~start. ~~Garden~~The ~~Grove,~~Campus ~~California~~enrolled ~~location~~approximately 25 students. The Board has not approved any future admissions. The ~~letter~~Company believes that of it has ~~credit~~made ~~can~~appropriate ~~only~~changes beto ~~drawn~~maintain ~~upon~~pass ifrates above an acceptable level as required by the Board. However, there iscan abe ~~default~~no ~~under~~assurance that the ~~lease~~Board ~~agreement~~will approve additional enrollments in the future and ~~will~~the ~~expire~~Board ~~October~~could 2require the Company to terminate the program. The program restriction reduced potential enrollments approximately 48 in the second quarter of 2004, 48 in the third quarter of 2004, and 48 in the fourth quarter of 2004. It also reduced potential enrollments by approximately 96 students in the first quarter of 2005.

~~Other~~The Company establishes an accounts receivable and a corresponding deferred revenue liability for each student upon commencement of a program of study. The deferred revenue liability, consisting of tuition and non-refundable registration fees, is recognized into income ratably over the length of the program. If a student withdraws from a program, the unearned portion of the tuition for which the student has paid is refunded on a pro-rata basis. Textbook and uniform sales are recognized when they occur. Any unpaid balance due when the student withdraws is generally due directly from the student, not from a federal or state agency. Textbook and uniform sales account for less than 10% of the Company’s revenue.

~~The~~Accounts receivable ~~Company~~are ~~entered~~due ~~into~~from astudents ~~$367,000~~and ~~letter~~are ofexpected ~~credit~~to ~~with~~be ~~Commerce~~paid ~~Bank~~primarily inthrough the ~~March~~use ~~2004.~~of ~~The~~federal ~~letter~~and state sources of ~~credit~~funds. ~~will~~Students beare ~~used~~responsible tofor amounts ~~secure~~not ~~workers~~available ~~compensation~~through ~~claims~~federal ~~for~~and ~~the~~state ~~Company’s~~sources ~~worker’s~~and ~~compensation~~unpaid amounts ~~insurance~~ due when ~~from~~the ~~April~~student 1,withdraws. ~~2004~~The ~~through~~Company ~~March~~began ~~31,~~extending ~~2005.~~student ~~The~~payment ~~letter~~plans in the first quarter of ~~credit~~2005 isand ~~secured~~believes byaccounts ~~certificates~~receivable ofand ~~deposit~~provision infor uncollectible ~~the~~accounts ~~same~~may ~~amount~~increase ~~that~~as ~~expire~~a onresult ~~March~~of ~~31,~~this ~~2005~~change.

The Company ~~changed~~classifies ~~its~~programs ~~workers~~in ~~compensation~~three ~~insurance~~general ~~plan~~categories; ~~from~~clinical, acore ~~guaranteed~~and other. ~~cost~~Clinical ~~plan~~programs to(Surgical aTechnology, ~~high~~Respiratory ~~deductible~~Therapy, ~~plan effective~~Radiologic ~~April 1~~ Technology, ~~2004.~~and ~~The~~Practical/Vocational ~~high~~Nurse) ~~deductible plan requires the Company to pay all workers compensation claims for the plan year as they~~ are ~~incurred~~generally up12 to ~~certain~~15 ~~limits~~months in ~~addition to a premium paid to the insurance carrier for claims processing and~~ ~~administrative costs~~ length. The ~~Company~~weekend ~~will~~Vocational ~~pay~~Nursing ~~individual~~program ~~claims~~and upRadiological ~~to $250~~Technician are longer,~~000~~ ~~with~~18 anand ~~annual~~24 ~~aggregate~~months ~~deductible of $1,250,000~~respectively. ~~The~~Clinical ~~previous~~programs ~~plan~~utilize ~~required~~clinical training ~~the~~that ~~Company~~occurs toin ~~pay~~a ~~premiums~~hospital toor ~~its~~medical ~~insurance~~facility. ~~carrier~~Core ~~for~~programs ~~all estimated costs of the workers~~(Medical ~~compensation~~ Assistant, ~~insurance~~Dental ~~with~~Assistant, ~~the~~Massage ~~carrier~~Therapy, ~~assuming~~Medical ~~all~~Office ~~risk~~Management, ~~for~~and Insurance ~~individual~~Coding ~~claims~~and ~~with~~Billing noSpecialist) ~~deductible.~~are ~~The~~generally ~~Company~~9 ~~believes~~to ~~that~~12 bymonths ~~assuming~~in ~~the~~length and ~~risk~~utilize ~~associated~~an ~~with~~externship ~~the~~immediately ~~new~~prior ~~plan~~to ~~that~~graduation. itExternships ~~will~~occur in medical ~~reduce~~offices, ~~the~~dental ~~overall~~offices, ~~cost~~medical ~~associated~~and ~~with~~dental ~~workers~~clinics, ~~compensation insurance~~medical ~~for current~~ facilities, and ~~future periods~~hospitals. The ~~Company’s~~remaining ~~workers~~programs ~~compensation~~are ~~claims~~similar ~~for~~in ~~any~~nature ofto the ~~prior~~core ~~four~~programs but ~~years~~are ~~has~~ not ~~exceeded~~currently ~~$367,000~~offered ~~and~~ in ~~most~~as ~~years~~many ~~has~~campuses ~~been~~as ~~significantly~~the ~~below this amount~~core programs.

~~Lease~~SIX MONTHS ~~Obligations~~ENDED JUNE 30, 2005 COMPARED TO

~~The Company rents office space and buildings under operating leases generally ranging in terms from 5 to 15 years. The~~SIX ~~leases~~ MONTHS ~~provide~~ENDED ~~renewal~~JUNE options and require the Company to pay utilities, maintenance, insurance and property taxes. The Company also has a lease obligation for the Chief Executive Officer’s automobile. The Company rents equipment under operating leases that are generally cancelable within 30 ~~years. Rent expense for these leases was $1~~,~~489,000~~ ~~and $1,106,000 as of March 31,~~ 2004 ~~and March 31, 2003, respectively. Aggregate minimum future rentals payable under the operating leases at March 31, 2004 were approximately:~~

2004 (remainder of the year)	$	3,214,000
2005	$	4,487,000
2006	$	4,237,000
2008	$	3,857,000
2009 and thereafter	$	18,946,000

Student enrollments increased 3.0% to 4,972 for the six months ended June 30, 2005 compared to 4,829 in 2004. Student population increased 0.7% to 5,794 at June 30, 2005 compared to 5,751 at June 30, 2004. Enrollments for new programs that were started in the last twelve months were 359 for the six months ended June 30, 2005. Enrollments for existing programs decreased 216 for the six months ended June 30, 2005 compared to the same period in 2004. Average student population for the six months ending June 30, 2005 decreased 5.9% to 5,771 compared to 6,136 for the same period in 2004.

~~Cash~~Revenue increased ~~Flows~~1.5% or $604,000 to $41,606,000 for the six months ended June 30, 2005 compared to $41,002,000 for the same period in 2004. Revenue increased due to a 7.9% tuition increase compared to the same period in 2004 and ~~Other~~was offset by lower average student population.

Net income ~~cash flows provided by operating activities~~ was $1,~~842~~282,000 for the ~~quarter~~six months ended ~~March~~June 3130, ~~2004~~2005 compared ~~with $3,358,000 in 2003. Cash flows from operating activities decreased primarily due~~ to ~~an increase in accounts receivables less deferred revenue of~~ $12,~~480~~501,000 ~~compared to an increase of $809,000~~ in ~~2003 and a decrease in accounts payable compared to 2003~~2004.

Cash used in investing activities was $2,545,000 for the quarter ended March 31, 2004 compared to $857,000 in 2003. Capital expenditure spending increased $1,206,000 in 2004 compared to 2003. The Company purchased $489,000 in short term investments in 2004 compared to a minimal change in short term investments during 2003. Capital expenditures increased as the Company moved two Campuses during 2004. Capital expenditures for the two Campuses was approximately, $1,783,000. The remaining capital expenditure was for leasehold improvements and computers at current locations. 11

Instruction Costs and Services - increased 3.0% or $384,000 to $13,291,000 compared to $12,907,000 in 2004. The increase was a result of increased salary expense compared to 2004. Salaries increased $735,000 due to higher wages and an increase in the number of staff. The Company added additional instructional staff for program transplants that occurred in 2004 and in anticipation of program transplants for 2005. The Company had 19 additional full time equivalent (“FTE”) employees for the six months ended June 30, 2005 compared to the same period in 2004. Textbooks and classroom materials and supplies accounted for the offsetting decrease.

~~Table~~Selling and Promotional -increased 26.5% or $1,445,000 to $6,901,000 compared to $5,456,000 in 2004. The increase is primarily a result of ~~Contents~~additional television, newspaper, and Internet advertising compared to 2004. Television expense increased $221,000, newspaper expense increased $384,000 and Internet expense increased $457,000 compared to 2004.

~~Cash~~General and ~~provided~~Administrative by- ~~financing~~increased 6.9% ~~activities~~or ~~was~~ $701,173,000 ~~for~~to ~~the~~$18,067,000 ~~quarter~~ compared ~~with~~to ~~cash used of~~ $~~217~~16,894,000 in ~~2003~~ 2004. ~~The~~Payroll increased ~~primary~~$802,000 ~~difference~~compared ~~between~~to ~~the~~2004. ~~quarters~~Additional ~~was~~employees adue ~~result~~to ofthe ~~dividends paid~~ change in the ~~2003.~~management ~~The~~structure ~~Company~~and ~~paid~~higher towages ~~Cahill-Warnock~~in ageneral ~~dividend~~were ~~equal~~factors toin $4the increase.08 ~~per~~Health ~~share~~insurance ofexpense ~~the~~increased ~~Class~~$459,000 Bdue ~~Voting~~to ~~Convertible~~increased ~~Preferred Stock on February 7~~claims, ~~2003. This constituted~~ ~~all~~ administrative ~~dividend~~expenses ~~payments~~and ~~owed~~additional toemployees ~~Cahill-Warnock~~participating ~~including~~in the ~~fourth~~health plan. ~~quarter~~Outside ~~2002~~services ~~dividend~~expense ofincreased $43160,~~500~~000. ~~and~~The aincrease ~~special~~is ~~dividend~~primarily a result toof ~~encourage~~student ~~the~~and ~~conversion~~faculty ofsatisfaction ~~the~~surveys ~~Preferred~~that ~~Stock.~~were Inconducted ~~addition,~~at ~~stock~~the campuses. ~~options~~Several ~~exercised~~categories ~~increased~~accounted infor ~~2004~~the ~~and~~offsetting ~~there~~decrease ~~was~~as nothe ~~treasury~~ Company ~~stock~~continued ~~purchased~~to infocus ~~2004.~~on expense control.

~~The~~Provision for ~~Company’s~~Uncollectible ~~Board~~Accounts of- decreased ~~Directors~~ $190,000 ~~approved~~to a$1,544,000 ~~500~~compared to $1,734,000 ~~shares~~in ~~repurchase~~2004. Students that dropped from their program inof ~~August~~study ~~2000.~~as Asa percentage of ~~March~~average 31population decreased to 5.9% in 2005 from 6.2% at June 30, 2004,. ~~the~~Accounts ~~Company~~receivable ~~purchased~~due afrom ~~total~~dropped students ofis ~~278,935~~generally ~~shares~~less atcollectible anthan ~~average~~balances ~~price~~due offrom $3graduates.92 Therefore, ~~pursuant~~an increase in the drop percentage in future quarters may lead to an increase in the ~~buy~~provision ~~back~~for ~~plan.~~uncollectible ~~The~~accounts ~~Company’s~~as ~~last~~a ~~purchase~~percentage ~~was~~of ~~2,800~~revenue ~~shares~~ in atfuture ~~$12~~periods.52 ~~per~~The ~~share~~Company inbegan financing some students over longer payment periods during the first quarter of ~~2003.~~2005 ~~The~~which ~~share~~may ~~repurchase~~increase ~~plan~~the ~~remains~~provision for uncollectible accounts in ~~effect.~~future quarters.

OnInterest and ~~February~~Other ~~27,~~Non-Operating ~~2003,~~Income ~~the~~- ~~Board~~increased to of$276,000 ~~Director~~for ~~unanimously~~the ~~adopted~~six ~~the~~months ~~Concorde~~ended ~~Career~~June ~~Colleges~~30, ~~Inc.~~2005 ~~2003~~compared ~~Long-term~~to ~~Executive~~$90,000 ~~Compensation~~in ~~Plan (the “Compensation Plan”)~~2004. The Company’s ~~shareholders~~maintains ~~approved~~its ~~the~~cash ~~Compensation~~and ~~Plan~~temporary atinvestments ~~the~~in ~~Annual~~short ~~Meeting~~term ~~held~~highly liquid onaccounts ~~May~~including ~~22,~~certificates ~~2003.~~of ~~The~~deposit ~~Compensation~~and ~~Plan~~money ~~provides~~markets. anThe increase ~~aggregate~~is ~~200,000~~a ~~incentive~~result ~~stock~~of ~~options~~higher tointerest berates ~~issued~~on toinvestments ~~certain~~and ~~employees~~additional as interest ~~authorized~~from bystudent ~~the Compensation Committee of the Board of Directors~~receivables.

~~The~~Provision for ~~Company~~Income ~~has~~Taxes ~~additional~~- ~~incentive~~a tax provision ~~stock~~of ~~option plans (the “2002 Option Plan~~$797,~~” “2000 Option Plan” and the “1998 Option Plan”) which authorized the Company to issue 300,~~000, ~~125,000~~or ~~and~~38.3% ~~250,000 shares, respectively~~ of ~~its~~pretax ~~common~~income ~~stock~~was torecorded ~~certain officers and employees of the Company. Options~~ for ~~all plans, including~~ the ~~2003~~six ~~Compensation Plan, are granted at fair market value or greater on the date of grant for a term of not more than ten years~~months ~~unless~~ ended ~~options~~June ~~are canceled due to employee termination. As of March 31~~30, ~~2004,~~2005 ~~159,800~~compared ~~shares remain available~~ to ~~be granted with the 1998~~$1, ~~2000~~600,000 ~~2002,~~or ~~and~~39.0% ~~2003~~in ~~option plans~~2004.

OnEPS and ~~February~~Weighted ~~27,~~Average ~~2003~~Common ~~the~~Shares ~~Board~~- ofBasic weighted ~~Directors~~average ~~unanimously~~common ~~adopted~~shares ~~the~~decreased ~~Concorde~~to ~~Career Colleges~~5,984,000 ~~Inc.~~in ~~Restated~~2005 ~~Employee~~from ~~Stock~~5,987,000 ~~Purchase Plan (“Employee Plan”)~~ in 2004. ~~The~~Common ~~Plan~~shares ~~was~~decreased ~~approved~~due byto the ~~Company’s~~purchase ~~shareholders~~of attreasury ~~its~~stock ~~Annual~~in ~~Meeting~~2004. Basic ~~held~~income onper ~~May~~share ~~22,~~was ~~2003~~$.21 ~~The~~in ~~Plan~~2005 iscompared ~~similar~~with to$.42 ~~the~~in ~~current Plan which expires September 30, 2003~~2004. AnDiluted weighted ~~aggregate~~average ofcommon ~~75,000~~ shares of ~~Common~~outstanding ~~Stock~~decreased ~~of the Company are subject~~ to ~~the Employee Plan and are reserved for issuance under such Plan. Options to purchase 15~~6,252,000 ~~shares of Common Stock of the Company are to be offered to participants for purchase~~ in ~~the~~2005 ~~first year~~from ~~(commencing October 1~~ 6, ~~2003 and ending September 30~~349,000 in 2004). ~~and~~Diluted ~~each~~income ofper ~~the~~share ~~four~~was ~~succeeding plan years~~$.21 ~~The~~for ~~option~~the ~~price~~six ofmonths ~~Common~~ended June ~~Stock purchased with payroll deductions made during such annual~~30, ~~semi-annual~~2005 orcompared ~~calendar-quarterly~~with ~~offering~~$.39 for ~~participant~~ ~~therein~~2004. ~~shall be the lower of:~~

~~(a)~~THREE MONTHS ~~95%~~ENDED ofJUNE ~~the~~30, ~~closing~~2005 ~~price~~COMPARED ~~of the Common Stock on the Offering Commencement Date or the nearest prior business day on which trading occurred on the Nasdaq Stock Market; or~~TO

~~(b)~~THREE MONTHS ~~95%~~ENDED ofJUNE ~~the~~30, ~~closing price of the Common Stock on the Offering Termination Date or the nearest prior business day on which trading occurred on the Nasdaq Stock Market.~~2004

~~The Company entered into agreements on February~~Student ~~25,~~ enrollments ~~1997~~increased ~~with~~14.7% ~~Cahill,~~to ~~Warnock Strategic Partners Fund~~2,470 ~~LP and Strategic Associates, LP, affiliated Baltimore-based venture capital funds (“Cahill-Warnock”),~~ for the ~~issuance~~three bymonths ~~the~~ended ~~Company~~June ~~and purchase by Cahill-Warnock of 55~~30,~~147~~ ~~shares of~~2005 ~~the~~ compared ~~Company’s~~to ~~new~~2,154 ~~Class~~in B2004. ~~Voting~~Student ~~Convertible~~population ~~Preferred~~increased ~~Stock (“Voting Preferred Stock”) for $1~~0.~~5 million, and 5~~7% ~~Debentures~~to ~~due 2003 (“New Debentures”) for $3.~~5 ~~million (collectively~~,794 ~~the~~at ~~“Cahill Transaction”).~~June ~~Cahill-Warnock~~ 30, ~~subsequently~~2005 ~~assigned~~compared ~~(with the Company’s consent) its rights and obligations~~ to ~~acquire 1~~5,~~838~~751 ~~shares~~at ofJune ~~Voting~~30, ~~Preferred~~2004. ~~Stock~~Enrollments tofor ~~James~~new ~~Seward,~~programs athat were ~~Director~~started ofin the ~~Company.~~last ~~Mr.~~twelve ~~Seward~~months ~~purchased~~were ~~such~~172 ~~shares~~ for ~~their~~the ~~purchase~~quarter ~~price of~~ended ~~approximately $50,000. On September~~ June 30, ~~2001, Mr~~ 2005. ~~Seward~~Enrollments ~~converted~~for ~~his~~existing ~~1,838~~programs ~~shares~~increased of144 ~~Voting~~for ~~Preferred~~the ~~Stock~~quarter ~~into 18~~ended June 30,~~380~~ ~~shares~~2005 ofcompared ~~Common~~to ~~Stock.~~the ~~The~~same ~~New~~quarter ~~Debentures~~in ~~had~~2004. ~~nondetachable~~Average ~~warrants~~student ~~(“Warrants”)~~population for the ~~approximately~~three ~~1,286,765 shares~~months ofending ~~Common~~June ~~Stock~~30, ~~exercisable~~2005 atdecreased $2.727% ~~per~~to ~~share~~5,831 ofcompared ~~Common Stock. The following transactions have occurred with respect~~ to 5,995 for the ~~Voting~~same ~~Preferred~~period ~~Stock~~in ~~and~~2004. ~~New Debentures since December 31, 2001:~~

~~(1)~~Revenue increased ~~The~~3.3% ~~Company~~or ~~entered~~$678,000 ~~into~~to a$21,305,000 ~~Conversion~~for ~~and~~the ~~Exchange~~three ~~Agreement~~months ~~with~~ended ~~Cahill~~June 30, 2005 ~~Warnock~~compared ~~Strategic~~to ~~Partners Fund~~$20,627,000 ~~L.P.~~for ~~and~~the ~~Strategic~~same ~~Association,~~period Lin 2004.P. ~~(collectively~~Revenue ~~“Cahill-Warnock”)~~increased due to onincreased ~~November~~student ~~25,~~enrollments ~~2002.~~and ~~The~~a ~~purpose~~price ofincrease ~~the~~compared ~~agreement~~to ~~was~~2004. toTuition prices ~~convert~~increased 6.2% for the ~~Voting~~quarter ~~Preferred~~compared ~~Stock~~to ~~into~~the ~~Common~~same ~~Stock~~period in 2004.

~~(2)~~Net income ~~The~~of ~~Company~~$876,000 ~~filed~~was arecorded ~~Registration~~for ~~Statement~~the onquarter ~~Form~~ended ~~S-3~~June to30, ~~register~~2005 compared to $1,~~133~~197,~~090~~000 ~~shares~~in ~~of common stock~~2004. ~~The Company received no funds as a result of the registration or subsequent distribution of common stock. Six hundred thousand~~

13 12

~~Table~~ Instruction Costs and Services - increased 4.8% or $309,000 to $6,760,000 compared to $6,451,000 in 2004. The increase was a result of ~~Contents~~increased salary expense compared to 2004. Salaries increased $374,000 due to higher wages and an increase in the number of staff. The Company added additional instructional staff for program transplants that occurred in 2004 and in anticipation of program transplants for 2005. The Company had 17 additional fte employees for the quarter ended June 30, 2005 compared to the same period in 2004. Classroom materials and supplies accounted for the offsetting decrease.

~~(600,000)~~Selling and ~~shares~~Promotional of-increased 21.4% ~~the~~or ~~common~~$600,000 ~~stock~~to ~~were~~$3,403,000 ~~issued~~compared ~~and~~to ~~outstanding~~$2,803,000 asin ~~of the date of the Registration Statement~~2004. The ~~Robert~~increase is primarily F.a ~~Brozman~~result ~~Trust~~of ~~held~~additional ~~350~~television,~~000~~ ~~shares~~newspaper, ~~Cahill,~~and ~~Warnock~~Internet ~~Strategic~~advertising compared ~~Partners~~to ~~Fund,~~2004. ~~and~~Television ~~L.P.~~expense ~~held~~increased ~~237~~$78,000 ~~shares~~, ~~and~~newspaper ~~Strategic~~expense increased ~~Associates~~$159, ~~L.P. held 13,~~000 ~~shares.~~and ~~The~~Internet ~~remaining~~expense ~~533~~increased $243,~~090~~000 ~~shares~~compared ~~related~~ to ~~common shares issued upon~~ ~~conversion of the preferred stock to common stock~~ 2004.

~~(3)~~General and ~~The~~Administrative ~~Registration~~- ~~Statement~~increased 4.7% ~~became~~or ~~effective~~$399,000 ~~February~~to 5$8,898,000 ~~2003~~compared to $8,499,000 in 2004. Payroll increased $441,000 compared to 2004. Additional employees due to the change in the management structure and higher wages in general were factors in the increase. Health insurance expense increased $170,000 due to increased claims, administrative expenses and additional employees participating in the health plan. Several categories accounted for the offsetting decrease as the Company continued to focus on expense control.

~~(4)~~Provision for ~~Cahill~~Uncollectible Accounts -~~Warnock~~ ~~exchanged~~increased $25,000 ~~their~~to 53$980,~~309~~000 ~~shares~~compared ofto ~~Class~~$955,000 Bin ~~Voting~~2004. ~~Convertible~~Students ~~Preferred~~that ~~Stock~~dropped ~~for~~from their ~~533,090~~program ~~shares~~of study as a percentage of ~~Common~~average ~~Stock~~population ondecreased ~~February~~to 6.2% in 2005 from 6.7% at June 30, ~~2003~~2004. Accounts receivable due from dropped students is generally less collectible than balances due from graduates. Therefore, an increase in the drop percentage in future quarters may lead to an increase in the provision for uncollectible accounts as a percentage of revenue in future periods. The Company ~~has~~began nofinancing ~~remaining~~some ~~Preferred~~students ~~Stock~~over ~~outstanding~~longer payment periods during the first quarter of 2005 which may increase the provision for uncollectible accounts in future quarters.

~~(5)~~Interest and ~~The~~Other ~~Company~~Non-Operating ~~paid~~Income ~~to Cahill~~-~~Warnock~~ ~~a dividend equal~~ increased to $~~4.08~~150,000 ~~per~~for ~~share of~~ the ~~Class~~quarter Bended ~~Voting~~June ~~Convertible Preferred Stock on February 7~~30, ~~2003.~~2005 ~~This~~compared ~~constituted all dividend payments owed~~ to ~~Cahill-Warnock including the fourth quarter 2002 dividend of~~ $4344,~~500~~000 ~~and~~in a2004. The increase ~~special~~is ~~dividend~~a result of ~~$174,000~~higher tointerest ~~encourage~~rates on the ~~conversion~~Company’s ofinvestments ~~the~~and additional ~~Preferred~~interest ~~Stock~~student receivables.

~~(6)~~Provision for ~~Cahill-Warnock~~Income ~~exercised~~Taxes ~~the non~~-~~detachable~~ ~~Warrants~~a tax provision onof ~~February 19~~$538,000 ~~2003~~or ~~and~~38.0% ~~the Company issued 1,286,764 shares~~ of ~~Common~~pretax ~~Stock~~income towas ~~Cahill-Warnock~~recorded ~~pursuant~~for to the ~~exercise~~quarter ended ofJune ~~the~~30, ~~Warrants.~~2005 ~~The~~compared ~~Company filed a Registration Statement on Form S-3~~ to ~~register the 1~~$766,~~286,764~~000 ~~shares~~or of39.0% ~~Common Stock~~ in ~~March~~ 2004. ~~The Company will receive no funds as a result of the Registration and any subsequent distribution of the Common Stock.~~

~~The~~EPS and ~~Company~~Weighted ~~meets~~Average ~~its~~Common ~~working~~Shares ~~capital,~~- ~~capital~~Basic ~~equipment~~ weighted ~~purchases~~average ~~and~~common ~~cash~~shares ~~requirements~~increased ~~with~~to ~~funds~~5,991,000 ~~generated~~in ~~internally.~~2005 ~~Management~~from ~~currently~~5,990,000 in 2004. ~~expects~~Common ~~its~~shares ~~cash~~increased ondue ~~hand,~~to ~~funds~~exercised ~~from~~options ~~operations~~ and ~~borrowings~~the ~~available~~employee ~~under~~stock purchase ~~existing~~plan. ~~credit~~Basic ~~facilities~~income toper beshare ~~sufficient~~was to$.15 ~~cover~~in ~~both~~2005 ~~short-term~~compared ~~and long-term~~with ~~operating~~$.20 ~~requirements~~in 2004. ~~However,~~Diluted ~~cash~~weighted ~~flows~~average ~~are~~common ~~dependent~~shares onoutstanding ~~the~~decreased ~~Company’s ability~~ to ~~maintain~~6,230,000 in ~~Title~~2005 IVfrom ~~eligibility~~6,330,000 ~~maintain~~in ~~demand~~2004. ~~for~~Diluted ~~programs~~income ~~and~~per toshare ~~minimize~~was ~~uncollectible~~$.14 ~~accounts~~for ~~receivable~~the quarter ~~through~~ended ~~effective~~June ~~collections~~30, ~~and improved~~2005 ~~retention~~compared with $.19 for 2004.

~~Safe~~Liquidity and ~~Harbor~~Capital ~~Statement~~ Resources

~~This form 10-Q contains certain forward-looking statements within the~~Credit meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), and the Company intends that such forward-looking statements be subject to the safe harbors created thereby. Statements in this Form 10-Q containing the words “estimate,” “project,” “anticipate,” “expect,” “intend,” “believe,” and similar expressions may be deemed to create forward-looking statements which, if so deemed, speak only as of the date the statement was made. 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. Facility

~~This Form 10-Q may contain~~The ~~forward-looking~~ Company ~~comments.~~secured ~~Such~~a ~~comments~~$3,000,000 ~~are~~revolving ~~based~~credit ~~upon~~facility ~~information~~with ~~currently~~Security ~~available~~Bank toof Kansas ~~management~~City ~~and~~in ~~management’s~~1997. ~~perception~~The ~~thereof~~Company asallowed ~~of the date of~~ this ~~Form~~facility ~~10-Q and may relate~~ to: ~~(i)~~expire ~~the~~on ~~ability~~April ~~of the Company to realize increased~~30, ~~enrollments~~ 2005. ~~from~~The ~~investments~~credit infacility ~~infrastructure~~had ~~made~~not ~~over~~been ~~the~~used ~~past~~due ~~year;~~to ~~(ii) ED’s enforcement or interpretation of existing statutes and regulations affecting~~ the Company’s ~~operations;~~cash ~~and (iii) the sufficiency of the Company’s~~balances ~~working capital, financings~~ and cash flow from ~~operating activities for the Company’s future operating and capital requirements. Actual results of the Company’s~~ operations ~~could materially differ from those forward-looking comments~~. The differences could be caused by a number of factors or combination of factors including, but not limited to, potential adverse effects of regulations; impairment of federal funding; adverse legislative action; student loan defaults; changes in federal or state authorization or accreditation; changes in market needs and technology; changes in competition and the effects of such changes; changes in the economic, political or regulatory environments; litigation involving the Company; changes in the availability of a stable labor force; or changes in management strategies. Readers should take these factors into account in evaluating any such forward-looking comments.

~~Item 3. Quantitative and Qualitative Disclosures about Market Risk~~ Other

The Company’s ~~exposure~~entered tointo ~~market~~a ~~risk~~$371,000 ~~for~~letter ~~changes~~of incredit ~~interest~~with ~~rates~~Commerce ~~relate~~Bank ~~to the increase or decrease~~ in ~~the amount of interest income the Company~~March ~~can~~ 2005. ~~earn~~The onletter ~~short-term investments in certificate~~ of ~~deposits~~credit ~~and cash balances. Because the Company’s investments are in short-term, investment-grade, interest-bearing securities, the Company~~ is ~~exposed~~used to ~~minimum~~secure ~~risk~~workers oncompensation ~~the~~claims ~~principal of~~for ~~those investments. The Company ensures~~ the ~~safety and preservation of its invested principal funds by limiting default risks, market risk and investment risk. The~~ Company’s ~~does not use derivative financial instruments. The Company~~worker’s ~~cash~~compensation ~~is deposited~~insurance ~~into~~from ~~several~~April ~~checking accounts~~1, ~~money~~2005 ~~market~~through ~~accounts~~March ~~and certificates of deposit~~31, 2006. The ~~interest~~letter ~~rates~~of ~~for~~credit ~~the~~is ~~money~~secured ~~market~~by ~~accounts and~~ certificates of deposit ~~ranged~~in ~~from .75% to 2.03% at March 31, 2004. As of~~ the ~~end of the period~~same ~~covered~~ amount bythat ~~this~~expire ~~Quarterly Report~~ on ~~Form~~March ~~10-Q~~31, ~~the Company’s exposure to fluctuations in the interest rates for its’ money market accounts and certificates of deposit are minimal~~2006.

The ~~Item~~ Company 4changed its worker’s compensation insurance plan from a guaranteed cost plan to a high deductible plan effective April 1, 2004. ~~Controls~~The high deductible plan requires the Company to pay all workers’ compensation claims for the plan year as they are incurred up to certain limits in addition to a premium paid to the insurance carrier for claims processing and ~~Procedures~~administrative costs. The Company will pay individual claims up to $250,000 with an annual aggregate deductible of $1,250,000. The previous plan required the Company to pay premiums to its insurance carrier for all estimated costs of the worker’s compensation insurance with the carrier assuming all risk for individual claims with no deductible. The Company believes that by assuming the risk associated with the new plan that it will reduce the overall cost associated with worker’s compensation insurance for current and future periods. The Company’s worker’s compensation claims for any of the prior four years have not exceeded $371,000 and in most years have been significantly below this amount.

We maintain a set of disclosure controls and procedures and internal controls designed to ensure that information required to be disclosed in our filings under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Our principal executive and financial officers have evaluated our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q and have determined that such disclosure controls and procedures are effective to provide reasonable assurance that material information relating to the Company is made known to management, including the CEO & CFO, particularly during the periods when the Company’s periodic reports are being prepared. There were no significant changes in internal controls or other factors that could significantly affect internal controls, including any corrective actions with regard to significant deficiencies and material weaknesses. 13

In ~~PART~~ addition, IIthe —Company ~~OTHER~~increased ~~INFORMATION~~individual stop loss reinsurance for its health insurance plan to $100,000 from $75,000. The Company also eliminated the aggregate stop loss insurance coverage of approximately $3,000,000 because the health insurance claims have been significantly below the aggregate amount. The changes to reinsurance should reduce the health care expense as compared to the prior plan.

The ~~Item~~ Company 1.reduced ~~Legal~~its ~~Proceedings~~overall insurance expense $202,000 for the six months ended June 30, 2005 compared to the same period in 2004 as a result of the new worker’s compensation insurance and reduced worker’s compensation claims.

The Company is sued from time to time by a student or students who claim to be dissatisfied with the results of their program of study. Typically, the claims allege a breach of contract; deceptive advertising and misrepresentation and theContractual ~~student~~ Obligations ~~or students seek reimbursement of tuition. Punitive damages sometimes are also sought. In addition, ED may allege regulatory violations found during routine program reviews. The Company has,~~ and ~~will~~Commercial continue to dispute these findings as appropriate in the normal course of business. In the opinion of the Company’s management, resolution of such pending litigation and disputed findings will not have a material effect on the Company’s financial condition or its results of operation. Commitments

The Company’s iscontractual ~~not~~obligations ~~aware~~and ofother ~~any~~commercial ~~material~~commitments ~~violation~~are by summarized ~~the~~below ~~Company~~as of ~~applicable~~June ~~local~~30, ~~state and federal laws.~~ 2005:

Year Ending December 31,	Facility Operating Leases	Other Operating Lease	Capital Asset Obligations	Purchase Obligations
2005 (remainder of year)	$2,545,000	$7,777	$60,000	$362,000
2006	4,840,000	15,554	---	184,000
2007	4,541,000	15,554	---	82,000
2008	4,515,000	6,481	---	---
2009	4,479,000	---	---	---
Thereafter	24,694,000	---	---	---
Total	$45,614,000	$45,366	$60,000	$628,000

~~Table~~Facility operating leases consist of ~~Contents~~the Company rental agreements for its building and office space rentals.

The ~~Item~~ other operating 2.lease ~~Change~~is infor ~~Securities~~the ~~and~~Chief ~~Use~~Executive ofOfficer’s ~~Proceeds - None~~ automobile.

Capital ~~Item~~ asset 3.obligations ~~Defaults~~consist ~~upon~~of ~~Senior~~contracts ~~Securities~~for –leasehold ~~None~~improvements at several campuses.

Purchase ~~Item~~ obligations 4.consist ~~Submission~~ of ~~Matters~~outstanding topurchase aorders ~~Vote~~and ofcommitments ~~Security~~for telecommunications ~~Holders~~and –copier ~~None~~ contracts.

Cash ~~Item~~ Flows 5.and Other ~~Information - None~~

Cash ~~Item~~ provided 6by operating activities was $1,232,000 for the six months ended June 30, 2005 compared with $1,656,000 in 2004. ~~Exhibits~~Cash flows from operating activities decreased primarily due to a decrease in net income of $1,219,000 and ~~Reports~~decreased leasehold onimprovement ~~Form~~incentives ~~8-K~~of $1,197,000.

A)	3-1	Restated Certificate of Incorporation of the Corporation, as amended (Incorporated by reference to Exhibit 3(a) of the Annual Report on Form 10-K for the year ended December 31, 1994).
	3-1	Amended and Restated Bylaws of the Corporation (Incorporated by reference to Exhibit 3(b) of the Annual Report on Form 10-K for the year ended December 31, 1991).
	11	Computation of per share earnings.
	31-1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
	31-2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
	32-1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	32-2	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
B)	The Company filed a report on Form 8-K dated January 15, 2004, furnishing under Item 12 a press release reporting its’ estimated revenue, operating margin percentage, diluted earnings per share, student enrollment, average student population and ending population for 2003 and estimated revenue and diluted earnings per share for 2004.
	The Company filed a report on Form 8-K dated February 25, 2004, furnishing under Item 12 a press release reporting the Company’s results of operations for the year ended December 31, 2003.
	The Company filed a Report on Form 8-K dated April 21, 2004, furnishing under Item 12 a press release reporting the Company’s Results of Operations for the Quarter Ended March 31, 2004.

Cash used by investing activities was $1,148,000 for the six months ended June 30, 2005 compared to $3,136,000 in 2004. Capital expenditures decreased $1,414,000 in 2005 compared to 2004. The Company purchased $273,000 in short term investments in 2005 compared to $860,000 in 2004. Capital expenditures decreased as the Company has no scheduled campus moves at this time.

~~(The~~Cash provided ~~remainder~~by offinancing ~~this page~~activities was ~~left~~$244,000 ~~intentionally~~for ~~blank~~the six months ended June 30, 2005 compared with $110,000 in 2004.) The primary difference is that there were a larger number of stock options exercised in 2005 compared to 2004.

15The Company’s Board of Director’s (“Board”) approved a share repurchase program in August 2000 for 500,000 shares of common stock. The Board approved a 500,000 share increase to the repurchase program in November 2004. The authorization increased the total repurchase program to 1,000,000 shares. As of June 30, 2005, the Company had repurchased a total 335,735 shares at an average price of $5.73 pursuant to the plan. The Company purchased 19,900 shares during 2002 at an average price of $11.18, 2,800 shares during 2003 at an average price of $12.52, and 56,800 shares at an average price of $14.57 in 2004. The Company has not purchased any shares in 2005. The share repurchase plan remains in effect.

~~Table of Contents~~14

~~SIGNATURES~~ On February 27, 2003, the Board of Directors unanimously adopted the Concorde Career Colleges, Inc. 2003 Long-term Executive Compensation Plan (the “Compensation Plan”). The Company’s shareholders approved the Compensation Plan at the Annual Meeting held on May 22, 2003. The Compensation Plan provided an aggregate 200,000 incentive stock options to be issued to certain employees as authorized by the Compensation Committee of the Board of Directors. On March 14, 2005 the Board of Directors unanimously approved, subject to shareholder approval, an amendment to the Compensation Plan increasing the common stock available through the Compensation Plan to 450,000 shares, an increase of 250,000 shares.

~~Pursuant~~ The toCompany has additional incentive stock option plans (the “2002 Option ~~requirements~~ Plan,”“2000 ofOption Plan” and the ~~Securities~~“1998 ~~Exchange~~Option ~~Act~~Plan”) which authorize the Company to issue 300,000, 125,000 and 250,000 shares, respectively, of ~~1934~~its common stock to certain officers and employees of the Company. Options for all plans, including the ~~registrant~~2003 ~~has~~Compensation ~~duly~~Plan, ~~caused~~are ~~this~~granted ~~report~~at tofair bemarket ~~signed~~value or greater on ~~its~~the ~~behalf~~date byof grant for a term of not more than ten years unless options are canceled due to employee termination. As of June 30, 2005, 251,191 shares remain available to be granted with the ~~undersigned~~1998, ~~thereunto~~2000, ~~duly~~2002, ~~authorized~~and 2003 option plans.

CONCORDE CAREER COLLEGES, INC.
DATED: April 22, 2004
By:		/s/ Jack L. Brozman
		Jack L. Brozman, Chief Executive Officer
By:		/s/ Paul R. Gardner
		Paul R. Gardner, Chief Financial Officer

On February 27, 2003 the Board of Directors unanimously adopted the Concorde Career Colleges, Inc. Restated Employee Stock Purchase Plan (“Employee Plan”). The Plan was approved by the Company’s shareholders at its Annual Meeting held on May 22, 2003. An aggregate of 75,000 shares of Common Stock of the Company are subject to the Employee Plan and are reserved for issuance under such Plan. Options to purchase 15,000 shares of Common Stock of the Company are to be offered to participants for purchase in the first year (commencing October 1, 2003 and ending September 30, 2004) and each of the four succeeding plan years. The option price of Common Stock purchased with payroll deductions made during such annual, semi-annual or calendar-quarterly offering for participant therein shall be the lower of:

(~~The~~a) 95% ~~remainder~~of the closing price of the Common Stock on the Offering Commencement Date ~~this~~ or ~~page~~the ~~was~~nearest ~~left~~prior ~~intentionally~~business ~~blank.)~~day on which

16 trading occurred on the Nasdaq Stock Market; or

(b)

95% of the closing price of the Common Stock on the Offering Termination Date or the nearest prior business day on which trading occurred on the Nasdaq Stock Market.

The Company meets its working capital, capital equipment purchases and cash requirements with funds generated internally. Management currently expects its cash on hand and funds from operations to be sufficient to cover both short-term and long-term operating requirements. However, cash flows are dependent on the Company’s ability to maintain Title IV eligibility, maintain demand for programs and minimize uncollectible accounts receivable through effective collections and improved retention.

Safe Harbor Statement

This Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), and the Company intends that such forward-looking statements be subject to the safe harbors created thereby. Statements in this Form 10-Q containing the words “estimate,”“project,”“anticipate,”“expect,”“intend,”“believe,” and similar expressions may be deemed to create forward-looking statements which, if so deemed, speak only as of the date the statement was made. 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.

This Form 10-Q may contain forward-looking comments. Such comments are based upon information currently available to management and management’s perception thereof as of the date of this Form 10-Q and may relate to: (i) the ability of the company to realize increased enrollments from investments in infrastructure made over the past years; (ii) ED’s enforcement or interpretation of existing statutes and regulations affecting the Company’s operations; and (iii) the sufficiency of the Company’s working capital, financings and cash flow from operating activities for the Company’s future operating and capital requirements. Actual results of the Company’s operations could materially differ from those forward-looking comments. The differences could be caused by a number of factors or combination of factors including, but not limited to, potential adverse effects of regulations; impairment of federal funding; adverse legislative action; student loan defaults; changes in federal or state authorization or accreditation; changes in market needs and technology; changes in competition and the effects of such changes; changes in the economic, political or regulatory environments; litigation involving the Company; changes in the availability of a stable labor force; or changes in management strategies. Readers should take these factors into account in evaluating any such forward-looking comments.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The Company’s exposure to market risk for changes in interest rates relate to the increase or decrease in the amount of interest income the Company can earn on short-term investments in certificates of deposit and cash balances. Because the Company’s investments

are in short-term, investment-grade, interest-bearing securities, the Company is exposed to minimum risk on the principal of those investments. The Company ensures the safety and preservation of its invested principal funds by limiting default risks, market risk and investment risk. The Company does not use derivative financial instruments. The Company’s cash is deposited into several checking accounts, money market accounts and certificates of deposit. The interest rates for the money market accounts and certificates of deposit ranged from 1.22% to 2.85% at June 30, 2005. As of the end of the period covered by this quarterly report on Form 10-Q, the Company’s exposure to fluctuations in the interest rates for its money market accounts and certificates of deposit is minimal.

Item 4. Controls and Procedures

The Company conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2005; as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act), under the supervision of and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer. Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures, were effective at June 30, 2005. There were no changes in our internal controls over financial reporting during the most recent fiscal quarter that materially affected, or is likely to materially affect, our internal control over financial reporting.

Because of its inherent limitations, our disclosure controls and procedures may not prevent or detect misstatements. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

PART II -- OTHER INFORMATION

Item 1. Legal Proceedings

The Company is sued from time to time by a student or students who claim to be dissatisfied with the results of their program of study. Typically, the claims allege a breach of contract; deceptive advertising and misrepresentation and the student or students seek reimbursement of tuition. Punitive damages sometimes are also sought. In addition, ED may allege regulatory violations found during routine program reviews. The Company has, and will continue to dispute these findings as appropriate in the normal course of business. In the opinion of the Company’s management, resolution of such pending litigation and disputed findings will not have a material effect on the Company’s financial condition or its results of operation.

The Company is not aware of any material violation by the Company of applicable local, state and federal laws.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities:

Period	Total Number of Shares Purchased	Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Program ⁽¹⁾	Maximum Number of Shares That May Yet Be Purchased Under this Program
April 1, 2005 - April 30, 2005	----	----	----	664,265
May 1, 2005 - May 31, 2005	----	----	----	664,265
June 1, 2005 - June 30, 2005	----	----	----	664,265
Total	----		----

(1)

On August 22, 2000, the Company announced that the Board of Directors approved a stock repurchase of up to 500,000 shares of the Company’s stock. On November 2, 2004, the Company announced that the Board of Director’s increased the stock repurchase authorization by an additional 500,000 shares which increased the plan to a total of 1,000,000 shares. As of June 30, 2005, the Company had acquired 335,735 shares at an average price of $5.73.

Item 3. Defaults upon Senior Securities - None

Item 4. Submission of Matters to a Vote of Security Holders

a)	The Company held its 2005 Annual Meeting of Stockholders (“Annual Meeting”) on May 26, 2005. On the Record Date, the Company had 5,753,228 shares of Common Stock issued and outstanding and entitled to vote at the Annual Meeting.

b)	Proxies for the meeting were solicited pursuant to Regulation 14A; there was no solicitation in opposition to management’s nominees for Directors as listed in such Proxy Statement and all such nominees were elected. The voting was as follows:

Election of four Directors:For Withheld

1. Jack L. Brozman5,464,358 288,870

2. Thomas K. Sight5,745,049 8,179

3. Janet M. Stallmeyer5,578,312 174,916

4. David L. Warnock5,298,146 455,082

c)	Ratification of the appointment of the independent auditors for the Company for 2005 was voted as follows:

For Against Withheld

BKD, LLP5,750,794 9091,525

d) Approval of proposed amendment to the 2003 Long-Term Executive Compensation Plan increasing the number of shares

available for issuance pursuant to the plan to 450,000.

For Against Withheld No Vote

3,856,615 768,004 76,948 1,051,661

Item 5. Other Information- None

Item 6. Exhibits

3-1

Restated Certificate of Incorporation of the Corporation, as amended (Incorporated by reference to Exhibit 3(a) of the Annual Report on Form 10-K for the year ended December 31, 1994).

3-1

Amended and Restated Bylaws of the Corporation (Incorporated by reference to Exhibit 3(b) of the Annual Report on Form 10-K for the year ended December 31, 1991).

11 Computation of per share earnings.

31-1 Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31-2 Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32-1

Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32-2

Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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 thereunto duly authorized.

CONCORDE CAREER COLLEGES, INC.

DATED: August 5, 2005

By: /s/ Jack L. Brozman

Jack L. Brozman, Chief Executive Officer

By: /s/ Paul R. Gardner

Paul R. Gardner, Chief Financial Officer

(The remainder of this page was left intentionally blank.)

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