Capella Education Company (NASDAQ: CPLA), a provider of online post-secondary education, primarily through its wholly owned subsidiary Capella University, today announced financial results for the three months and year ended Dec. 31, 2012.
“We are encouraged by our progress in stabilizing new enrollment growth, improving learner persistence and strengthening Capella’s competitive position,” said Kevin Gilligan, chairman and chief executive officer. “Most importantly, we are gaining traction as we execute our strategy to drive affordability, speed-to-competency and certainty of outcomes for our learners to differentiate Capella. While the overall market environment remains challenging, our improving position heading into 2013 gives us confidence that we are on the right path to return to total enrollment and revenue growth.”
For the three months ended Dec. 31, 2012:
- Revenues were $107.0 million, compared to $110.0 million in the fourth quarter of 2011, a decrease of 2.7 percent.
- Capella University total active enrollment decreased 3.6 percent to 36,329 and new enrollment increased by 0.6 percent from fourth quarter 2011.
- Operating income was $15.1 million, compared to $18.9 million for the same period in 2011. Operating margin was 14.1 percent, compared to 17.2 percent for the fourth quarter 2011.
- Net income attributable to Capella Education Company for the fourth quarter of 2012 was $8.6 million, compared to $12.1 million for the same period in 2011.
- Diluted net income per share was $0.68, compared to $0.85 for the same period in 2011. The Company recorded a valuation allowance on foreign deferred income taxes that reduced diluted net income per share by $0.05 for the fourth quarter of 2012.
For the fiscal year ended Dec. 31, 2012:
- Revenues decreased by 1.9 percent to $421.9 million, compared to $430.0 million for the same period in 2011.
- Operating income for 2012 was $59.4 million, or 14.1 percent of revenue, compared to $80.1 million, or 18.6 percent of revenue during 2011.
- Net income was $36.5 million or $2.76 per diluted share outstanding, compared to $52.1 million or $3.40 per diluted share for 2011.
- Capella University average quarterly total enrollment growth decreased by 4.1 percent compared to 2011.
- Total Capella University new enrollment for 2012 increased 0.5 percent, compared to a 32.0 percent decrease in 2011.