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Strayer Education, Inc. Reports First Quarter 2012 Revenues And Earnings; And Spring 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.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
 
 
    For the three months
ended March 31,
2011     2012
 
Revenues $ 171,956 $ 149,532
Costs and expenses:
Instruction and educational support 74,976 73,764
Marketing 16,042 15,469
Admissions advisory 7,191 6,793
General and administration   14,522   12,648
Income from operations 59,225 40,858
Investment income 118 1
Interest expense   183   1,208
Income before income taxes 59,160 39,651
Provision for income taxes   23,369   15,662
Net income $ 35,791 $ 23,989
Earnings per share:
Basic $ 2.81 $ 2.10
Diluted $ 2.80 $ 2.09
Weighted average shares outstanding:
Basic 12,744 11,419
Diluted 12,794 11,477
Shares outstanding at end of quarter 12,446 11,864
Dividends per share $ 1.00 $ 1.00
 

 
STRAYER EDUCATION, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
 
 
    December 31,     March 31,
2011 2012
ASSETS
Current assets:
Cash and cash equivalents $ 57,137 $ 52,704

Tuition receivable, net of allowances for doubtful accounts of $7,279 and $8,108 at December 31, 2011 and March 31, 2012, respectively

25,006 23,320
Income taxes receivable 394 -
Other current assets   12,131     13,365  
Total current assets 94,668 89,389
Property and equipment, net 121,149 119,542
Deferred income taxes 3,326 3,388
Goodwill 6,800 6,800
Other assets   5,190     5,115  
Total assets $ 231,133   $ 224,234  
 
LIABILITIES & STOCKHOLDERS' EQUITY
 
Current liabilities:
Accounts payable and accrued expenses $ 34,039 $ 36,517
Income taxes payable -- 15,789
Unearned tuition 15,364 1,303
Other current liabilities 281 281
Current portion of term loan   27,500     30,000  
Total current liabilities 77,184 83,890
Revolving credit facility 20,000 -
Term loan, less current portion 70,000 62,500
Other long-term liabilities   21,656     21,818  
Total liabilities   188,840     168,208  
Commitments and contingencies
Stockholders’ equity:

Common stock, par value $.01; 20,000,000 shares authorized; 11,792,456 and 11,863,940 shares issued and outstanding at December 31, 2011 and March 31, 2012, respectively

118 119
Additional paid-in capital 295 1,944
Retained earnings 42,491 54,615

Accumulated other comprehensive income (loss)

  (611 )   (652 )
Total stockholders' equity   42,293     56,026  
Total liabilities and stockholders’ equity $ 231,133   $ 224,234  
 

 
STRAYER EDUCATION, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
 
   

For the three months ended

March 31,

2011     2012
Cash flows from operating activities:
Net income $ 35,791 $ 23,989
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of gain on sale of assets (70 ) (70 )
Amortization of deferred rent 378 147
Gain on sale of marketable securities (66 ) --
Amortization of deferred financing costs 65 200
Depreciation and amortization 4,904 5,817
Deferred income taxes 818 (317 )
Stock-based compensation 2,892 2,390
Changes in assets and liabilities:
Tuition receivable, net (3,700 ) 1,686
Other current assets (1,989 ) (957 )
Other assets 17 (154 )
Accounts payable and accrued expenses (5,339 ) 2,369
Income taxes payable and income taxes receivable 21,467 15,443
Unearned tuition 11,808 (14,061 )
Other long-term liabilities   196     --  
Net cash provided by operating activities   67,172     36,482  
Cash flows from investing activities:
Purchases of property and equipment (11,384 ) (4,050 )
Purchases of marketable securities (2 ) --
Proceeds from the sale of marketable securities   12,388     --  
Net cash provided by (used in) investing activities   1,002     (4,050 )
Cash flows from financing activities:
Common dividends paid (13,174 ) (11,865 )
Repurchase of common stock (127,237 ) --
Proceeds from revolving credit facility 80,000 --
Payments on revolving credit facility -- (20,000 )
Payments on term loan -- (5,000 )
Payment of deferred financing costs   (776 )   --  
Net cash used in financing activities   (61,187 )   (36,865 )
Net increase (decrease) in cash and cash equivalents 6,987 (4,433 )
Cash and cash equivalents — beginning of period   64,107     57,137  
Cash and cash equivalents — end of period $ 71,094   $ 52,704  
Non-cash transactions:
Purchases of property and equipment included in accounts payable $ 1,894 $ 1,225
 




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