Strayer Education, Inc. Reports Fourth Quarter And Full Year 2011 Revenues And Earnings; And Winter Term 2012 Enrollments

For more information on Strayer Education, Inc. visit www.strayereducation.com and for Strayer University visit www.strayer.edu.

Forward-Looking Statements

This press release contains statements that are forward looking and are made pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). Such statements may be identified by the use of words such as “expect,” “estimate,” “assume,” “believe,” “anticipate,” “will,” “forecast,” “plan,” “project,” or similar words. The statements are based on the Company’s current expectations and are subject to a number of assumptions, uncertainties and risks. In connection with the safe-harbor provisions of the Reform Act, the Company has identified important factors that could cause the Company’s actual results to differ materially from those expressed in or implied by such statements. The assumptions, uncertainties and risks include the pace of growth of student enrollment, our continued compliance with Title IV of the Higher Education Act, and the regulations thereunder, as well as regional accreditation standards and state regulatory requirements, rulemaking by the Department of Education and increased focus by the U. S. Congress on for-profit education institutions, competitive factors, risks associated with the opening of new campuses, risks associated with the offering of new educational programs and adapting to other changes, risks relating to the timing of regulatory approvals, our ability to implement our growth strategy, risks associated with the ability of our students to finance their education in a timely manner, and general economic and market conditions. Further information about these and other relevant risks and uncertainties may be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and in its subsequent filings with the Securities and Exchange Commission, all of which are incorporated herein by reference and which are available from the Commission. We undertake no obligation to update or revise forward looking statements.

STRAYER EDUCATION, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except per share data)
		For the three months						For the year
		ended December 31,						ended December 31,
		2010			2011			2010			2011
Revenues		$	171,951		$	155,824		$	636,732		$	627,434
Costs and expenses:
Instruction and educational support			74,153			72,483			269,557			292,003
Marketing			18,337			18,659			70,270			74,293
Admissions advisory			6,584			6,357			25,277			26,531
General and administration			13,972			12,956			55,857			55,464
Income from operations			58,905			45,369			215,771			179,143
Investment income			406			1			1,228			152
Interest expense			--			1,213			--			3,773
Income before income taxes			59,311			44,157			216,999			175,522
Provision for income taxes			23,428			17,486			85,739			69,478
Net income		$	35,883		$	26,671		$	131,260		$	106,044
Earnings per share:
Basic		$	2.74		$	2.31		$	9.78		$	8.91
Diluted		$	2.73		$	2.30		$	9.70		$	8.88
Weighted average shares outstanding:
Basic			13,083			11,564			13,426			11,906
Diluted			13,156			11,592			13,535			11,943
Shares outstanding at end of quarter			13,317			11,792			13,317			11,792
Dividends per share (paid)		$	1.00		$	1.00		$	3.25		$	4.00

STRAYER EDUCATION, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share and per share data)
		December 31,			December 31,
		2010			2011
ASSETS
Current assets:
Cash and cash equivalents		$	64,107		$	57,137
Marketable securities available for sale, at fair value			12,386			--
Tuition receivable, net of allowances for doubtful accounts of $7,935 and $7,279 at December 31, 2010 and 2011, respectively			22,011			25,006
Income taxes receivable			--			394
Other current assets			10,231			12,131
Total current assets			108,735			94,668
Property and equipment, net			116,063			121,149
Deferred income taxes			8,374			3,326
Goodwill			--			6,800
Other assets			2,006			5,190
Total assets		$	235,178		$	231,133
LIABILITIES & STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses		$	41,792		$	34,039
Income taxes payable			934			--
Unearned tuition			3,523			15,364
Other current liabilities			281			281
Current portion of term loan			--			27,500
Total current liabilities			46,530			77,184
Revolving credit facility			--			20,000
Term loan, less current portion			--			70,000
Other long-term liabilities			12,644			21,656
Total liabilities			59,174			188,840
Commitments and contingencies
Stockholders’ equity:
Common stock, par value $0.01; 20,000,000 shares authorized; 13,316,822 and 11,792,456 shares issued and outstanding at December 31, 2010 and 2011, respectively			133			118
Additional paid-in capital			1,206			295
Retained earnings			174,625			42,491
Accumulated other comprehensive income (loss)			40			(611	)
Total stockholders’ equity			176,004			42,293
Total liabilities and stockholders’ equity		$	235,178		$	231,133

STRAYER EDUCATION, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amount in thousands)
		For the year ended December 31,
		2010				2011
Cash flows from operating activities:
Net income		$	131,260			$	106,044
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of gain on sale of assets			(281	)			(281	)
Amortization of deferred rent			275				1,177
Gain on sale of marketable securities			(406	)			(66	)
Amortization of deferred financing costs			--				663
Depreciation and amortization			17,309				21,525
Deferred income taxes			353				3,722
Stock-based compensation			11,987				13,234
Changes in assets and liabilities:
Tuition receivable, net			(4,233	)			(2,995	)
Other current assets			(1,153	)			(768	)
Other assets			(258	)			102
Accounts payable and accrued expenses			10,146				(3,360	)
Income taxes payable and income taxes receivable			(1,358	)			(1,279	)
Excess tax benefits from stock-based payment arrangements			(2,808	)			--
Unearned tuition			1,083				11,841
Other long-term liabilities			905				4,804
Net cash provided by operating activities			162,821				154,363
Cash flows from investing activities:
Purchases of property and equipment			(46,015	)			(29,991	)
Purchases of marketable securities			(559	)			(2	)
Proceeds from the sale of marketable securities			40,700				12,388
Acquisition of assets			--				(7,000	)
Net cash used in investing activities			(5,874	)			(24,605	)
Cash flows from financing activities:
Common dividends paid			(44,541	)			(49,105	)
Proceeds from exercise of stock options			452				--
Excess tax benefits from stock-based payment arrangements			2,808				--
Repurchase of common stock			(115,517	)			(202,664	)
Proceeds from revolving credit facility			--				120,000
Payments on revolving credit facility			--				(100,000	)
Proceeds from term loan			--				100,000
Payments on term loan			--				(2,500	)
Payment of deferred financing costs			--				(2,459	)
Net cash used in financing activities			(156,798	)			(136,728	)
Net increase (decrease) in cash and cash equivalents			149				(6,970	)
Cash and cash equivalents – beginning of period			63,958				64,107
Cash and cash equivalents – end of period		$	64,107			$	57,137
Non-cash transactions:
Purchases of property and equipment included in accounts payable		$	5,508			$	1,115

« First ‹ Previous 1 2 3 4 5 Next › Last »