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Strayer Education, Inc. Reports Third Quarter 2012 Revenues And Earnings; And Fall Term 2012 Enrollments

Stocks in this article: STRA

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

(Amounts in thousands, except per share data)

 
For the three months For the nine months
ended September 30, ended September 30,
2011   2012 2011   2012
Revenues $ 135,865 $ 124,260 $ 471,610 $ 420,046
Costs and expenses:
Instruction and educational support 68,170 72,997 219,519 222,413
Marketing 23,351 23,171 55,634 53,693
Admissions advisory 6,533 6,487 20,174 19,733
General and administration   13,406   13,769   42,508   39,345
Income from operations 24,405 7,836 133,775 84,862
Investment income 5 1 149 4
Interest expense   1,209   1,055   2,559   3,373
Income before income taxes 23,201 6,782 131,365 81,493
Provision for income taxes   9,266   2,679   51,992   32,190
Net income $ 13,935 $ 4,103 $ 79,373 $ 49,303
Earnings per share:
Basic $ 1.20 $ 0.36 $ 6.61 $ 4.31
Diluted $ 1.20 $ 0.36 $ 6.58 $ 4.29
Weighted average shares outstanding:
Basic 11,623 11,433 12,016 11,428
Diluted 11,647 11,487 12,055 11,482
Shares outstanding at end of quarter 12,006 11,873 12,006 11,873
Dividends per share (paid) $ 1.00 $ 1.00 $ 3.00 $ 3.00
 

   

STRAYER EDUCATION, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share and per share data)

 
December 31, September 30,
2011 2012
ASSETS
Current assets:
Cash and cash equivalents $ 57,137 $ 45,609

Tuition receivable, net of allowances for doubtful accounts of $7,279 and $7,373 at December 31, 2011 and September 30, 2012, respectively

25,006 24,109
Income taxes receivable 394 7,964
Other current assets   12,131     14,255  
Total current assets 94,668 91,937
Property and equipment, net 121,149 122,620
Deferred income taxes 3,326 5,615
Goodwill 6,800 6,800
Other assets   5,190     4,642  
Total assets $ 231,133   $ 231,614  
 
LIABILITIES & STOCKHOLDERS' EQUITY
 
Current liabilities:
Accounts payable and accrued expenses $ 34,039 $ 40,362
Unearned tuition 15,364 1,163
Other current liabilities 281 281
Current portion of term loan   27,500     30,000  
Total current liabilities 77,184 71,806
Revolving credit facility 20,000 25,000
Term loan, less current portion 70,000 47,500
Other long-term liabilities   21,656     22,315  
Total liabilities   188,840     166,621  
Commitments and contingencies
Stockholders’ equity:

Common stock, par value $0.01; 20,000,000 shares authorized; 11,792,456 and 11,873,156 shares issued and outstanding at December 31, 2011 and September 30, 2012, respectively

118 119
Additional paid-in capital 295 9,234
Retained earnings 42,491 56,185
Accumulated other comprehensive income (loss)   (611 )   (545 )
Total stockholders' equity   42,293     64,993  
Total liabilities and stockholders’ equity $ 231,133   $ 231,614  
 

 

STRAYER EDUCATION, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

 
For the nine months ended
September 30,
2011   2012
Cash flows from operating activities:
Net income $ 79,373 $ 49,303
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of gain on sale of assets (211 ) (210 )
Amortization of deferred rent 885 173
Gain on sale of marketable securities (66 ) --
Amortization of deferred financing costs 463 599
Depreciation and amortization 15,779 17,857
Deferred income taxes 941 (2,827 )
Stock-based compensation 9,798 9,358
Changes in assets and liabilities:
Tuition receivable, net 811 897
Other current assets (2,580 ) (1,992 )
Other assets 80 (134 )
Accounts payable and accrued expenses 4,505 5,307
Income taxes payable and income taxes receivable 1,585 (7,630 )
Unearned tuition 11,089 (14,201 )
Other long-term liabilities   297     746  
Net cash provided by operating activities   122,749     57,246  
Cash flows from investing activities:
Purchases of property and equipment (24,887 ) (18,165 )
Purchases of marketable securities (2 ) --
Proceeds from the sale of marketable securities   12,388     --  
Net cash used in investing activities   (12,501 )   (18,165 )
Cash flows from financing activities:
Common dividends paid (37,161 ) (35,609 )
Repurchase of common stock (182,664 ) --
Proceeds from revolving credit facility 100,000 53,000
Payments on revolving credit facility (95,000 ) (48,000 )
Proceeds from term loan 100,000 --
Payments on term loan -- (20,000 )
Payment of deferred financing costs   (2,459 )   --  
Net cash used in financing activities   (117,284 )   (50,609 )
Net decrease in cash and cash equivalents (7,036 ) (11,528 )
Cash and cash equivalents – beginning of period   64,107     57,137  
Cash and cash equivalents – end of period $ 57,071   $ 45,609  
Non-cash transactions:
Purchases of property and equipment included in accounts payable $ 2,087 $ 2,132
 




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