Capella Education Company (NASDAQ: CPLA), a provider of online post-secondary education, primarily through its wholly owned subsidiary Capella University, today announced financial results for the three months and year ended Dec. 31, 2011.
“2011 was a year marked by a challenging economic environment and increased competition for the high-quality learners Capella serves,” said Kevin Gilligan, chairman and chief executive officer. “We shifted to a brand driven marketing strategy, made difficult decisions to align expenses and stayed focused on delivering a high-quality educational experience to our learners. Capella’s momentum entering 2012 continues in the right direction as we accelerate investments to drive learner success through innovation.”
For the three months ended Dec. 31, 2011:
- Revenues were $110.0 million, compared to $114.7 million in the fourth quarter of 2010, a decrease of 4.1 percent.
- Operating income was $18.9 million, compared to $28.3 million for the same period in 2010. Operating margin was 17.2 percent, compared to 24.7 percent for the fourth quarter 2010.
- An elimination of 63 non-faculty positions resulted in a $1.3 million charge. The workforce reduction is expected to result in annualized cost savings of about $5.2 million.
- Net income attributable to Capella Education Company for the fourth quarter of 2011 was $12.1 million, compared to $18.1 million for the same period in 2010.
- Diluted net income per share was $0.85, compared to $1.09 for the same period in 2010.
- Capella University total active enrollment decreased 4.5 percent to 37,704 and new enrollment decreased by 9.4 percent from fourth quarter 2010.
For the fiscal year ended Dec. 31, 2011:
- Revenues increased by 0.9 percent to $430.0 million, compared to $426.1 million for the same period in 2010.
- Operating income for 2011 was $80.1 million or 18.6 percent of revenue, compared to $95.0 million or 22.3 percent of revenue during 2010. Excluding the impact from two workforce reductions during fiscal year 2011, the operating margin was 19.4 percent.
- Net income attributable to Capella Education Company was $52.1 million or $3.40 per weighted average number of diluted shares outstanding, compared to $61.3 million or $3.64 per share for 2010.
- Capella University average quarterly enrollment growth decreased by 1.5 percent compared to 2010.
- Total Capella University new enrollment for 2011 decreased 32.0 percent, compared to a 24.4 percent increase in 2010.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV