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Strayer Education, Inc. Reports Fourth Quarter And Full Year 2012 Revenues And Earnings; And Winter Term 2013 Enrollments; And CEO Succession Plans

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.
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,
  2011     2012   2011     2012
Revenues $ 155,824 $ 141,933 $ 627,434 $ 561,979
Costs and expenses:
Instruction and educational support 72,483 77,685 292,003 300,098
Marketing 18,659 18,171 74,293 71,864
Admissions advisory 6,357 6,641 26,531 26,374
General and administration   12,956   10,711   55,464   50,056
Income from operations 45,369 28,725 179,143 113,587
Investment income 1 1 152 4
Interest expense   1,213   1,244   3,773   4,616
Income before income taxes 44,157 27,482 175,522 108,975
Provision for income taxes   17,486   10,855   69,478   43,045
Net income $ 26,671 $ 16,627 $ 106,044 $ 65,930
Earnings per share:
Basic $ 2.31 $ 1.47 $ 8.91 $ 5.79
Diluted $ 2.30 $ 1.47 $ 8.88 $ 5.76
Weighted average shares outstanding:
Basic 11,564 11,276 11,906 11,390
Diluted 11,592 11,314 11,943 11,440
Shares outstanding at end of quarter 11,792 11,387 11,792 11,387
Dividends per share (paid) $ 1.00 $ 1.00 $ 4.00 $ 4.00
 

 
STRAYER EDUCATION, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
 
  December 31,   December 31,
  2011   2012
ASSETS
Current assets:
Cash and cash equivalents $ 57,137 $ 47,517

Tuition receivable, net of allowances for doubtful accounts of $7,279 and $6,596 at December 31, 2011 and 2012, respectively

25,006 23,262
Income taxes receivable 394 4,454
Other current assets   12,131   14,422
Total current assets 94,668 89,655
Property and equipment, net 121,149 121,520
Deferred income taxes 3,326 3,279
Goodwill 6,800 6,800
Other assets   5,190   6,538
Total assets $ 231,133 $ 227,792
 
 
LIABILITIES & STOCKHOLDERS’ EQUITY
Current liabilities:

 

Accounts payable and accrued expenses $ 34,039 $ 39,124
Unearned tuition 15,364 494
Other current liabilities 281 281
Current portion of term loan   27,500   3,125
Total current liabilities 77,184 43,024
Revolving credit facility 20,000 --
Term loan, less current portion 70,000 121,875
Other long-term liabilities   21,656   21,905
Total liabilities   188,840   186,804
Commitments and contingencies
Stockholders’ equity:

Common stock, par value $0.01; 20,000,000 shares authorized; 11,792,456 and 11,387,299 shares issued and outstanding at December 31, 2011 and 2012, respectively

118 114
Additional paid-in capital 295 299
Retained earnings 42,491 41,311
Accumulated other comprehensive income (loss)   (611)   (736)
Total stockholders’ equity   42,293   40,988
Total liabilities and stockholders’ equity $ 231,133 $ 227,792
 

 
STRAYER EDUCATION, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
 
  For the year ended December 31,
  2011     2012
Cash flows from operating activities:
Net income $ 106,044 $ 65,930
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 1,177 323
Gain on sale of marketable securities (66) --
Amortization of deferred financing costs 663 795
Depreciation and amortization 21,525 23,973
Deferred income taxes 3,722 (38)
Stock-based compensation 13,234 5,464
Changes in assets and liabilities:
Tuition receivable, net (2,995) 1,744
Other current assets (768) (2,130)
Other assets 102 (135)
Accounts payable and accrued expenses (3,360) 5,673
Income taxes payable and income taxes receivable (1,279) (4,306)
Unearned tuition 11,841 (14,870)
Other long-term liabilities   4,804   (80)
Net cash provided by operating activities   154,363   82,062
Cash flows from investing activities:
Purchases of property and equipment (29,991) (24,733)
Purchases of marketable securities (2) --
Proceeds from the sale of marketable securities 12,388 --
Acquisition of assets   (7,000)   --
Net cash used in investing activities   (24,605)   (24,733)
Cash flows from financing activities:
Common dividends paid (49,105) (47,328)
Repurchase of common stock (202,664) (25,001)
Proceeds from revolving credit facility 120,000 63,000
Payments on revolving credit facility (100,000) (83,000)
Proceeds from term loan 100,000 47,500
Payments on term loan (2,500) (20,000)
Payment of deferred financing costs   (2,459)   (2,120)
Net cash used in financing activities   (136,728)   (66,949)
Net decrease in cash and cash equivalents (6,970) (9,620)
Cash and cash equivalents – beginning of period   64,107   57,137
Cash and cash equivalents – end of period $ 57,137 $ 47,517
Non-cash transactions:
Purchases of property and equipment included in accounts payable $ 1,115 $ 529
 




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