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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.
Balance Sheet and Cash Flow
As of Dec. 31, 2011, the Company had cash, cash equivalents, and marketable securities of $127.0 million, compared to $193.2 million at Dec. 31, 2010, and no debt for the same periods.