Strayer Education is an education service company, whose primary asset is Strayer University, a 50,000-student, 100-campus, post-secondary education institution founded in 1892, which offers bachelors, masters and associates degrees in Business Administration, Accounting, Computer Science, Public Administration and Education. Unlike traditional universities, Strayer University students are working adults, who are returning to college and graduate school to improve their lives.
Our revenue comes from tuition payments and associated fees. Approximately 75% of that revenue comes to us from Federal Title IV loans issued to our students. Our expenses at Strayer Education include the cost of our professors, our admissions and administrative staff, marketing expenses and facilities and supplies costs. We serve students in 23 states through physical campuses, as well as in all 50 states and over 30 foreign countries through our online courses. Strayer University is accredited by the Middle States Commission on Higher Education. Mark, will you run through the financials?
Mark C. Brown
Sure. Revenues for the 3 months ended June 30, 2012, decreased 11% to $146.3 million compared to $163.8 million for the same period in 2011, principally due to lower enrollment. Income from operations was $36.2 million compared to $50.1 million for the same period in 2011, a decrease of 28%. Operating income margin was 24.7% compared to 30.6% for the same period in 2011. Net income was $21.2 million compared to $29.6 million for the same period in 2011, a decrease of 28%.Diluted earnings per share was $1.85 compared to $2.53 for the same period in 2011, a decrease of 27%. Diluted weighted average shares outstanding decreased 2% to $11,483,000 from $11,737,000 for the same period in 2011. Revenues for the 6 months ended June 30, 2012, decreased 12% to $295.8 million compared to $335.7 million for the same period in 2011, principally due to lower average enrollment. Read the rest of this transcript for free on seekingalpha.com