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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




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