For those of you that wish to listen to the conference via the Internet, please go to strayereducation.com where the call will be archived for 90 days. If you are unable to listen to the call in real time, a replay will be available beginning today at 1:00 p.m. Eastern Time through Thursday, November 10. The replay is available at (855) 859-2056. Conference ID 94195606. Following Strayer's remarks, we will open the call for questions and answers.I would like to remind everyone that today's press release contains and certain information on this call may contain statements that are forward-looking and are made pursuant to the Safe Harbor Provision of the Private Securities Litigation Reform Act. The statements are based on the company's current expectations and are subject to a number of uncertainties and risks that the company has identified in the paragraph on forward-looking statements at the end of its press release and that could cause the company's actual results to differ materially. Further information about these and other relevant uncertainties may be found in the company's annual report on Form 10-K and its other filings with the Securities and Exchange Commission. Copies of these filings and the full press release are available online and upon request from the company's Corporate Communications department. And now, I'd like to turn the call over to Rob. Rob, please go ahead. Robert S. Silberman Thank you, Sonya, and good morning, ladies and gentlemen. As it's our custom, I'd like to begin this morning with a brief overview of both our company and our business model for any listeners who are new to Strayer. Mark will then report on our third quarter financial results, followed by Karl commenting on our third quarter operational results including our student enrollment for the fall academic term. Finally, I'd like to provide an update on our growth strategy, discuss the company's earnings outlook for both Q4 and full year 2011 and share our thoughts on Strayer's investment plans and resolving business model for 2012.
Strayer Education is an education service company whose primary asset is Strayer University, a 55,000-student, 92 campus, post-secondary education institution founded in 1892 which offers bachelor's, master's and associate's degree in business administration, accounting, computer science, public administration and education. Unlike traditional universities, Strayer students are working adults who are returning to school to further their careers. Our revenue comes from tuition payments and associated fees, approximately 75% of that revenue comes to us from federal-insured Title IV loans. Our expenses include the costs of our professors, our admissions and administrative staff, marketing expenses and facilities and supplies cost. Strayer University is accredited by the Middle States Commission on Higher Education.Mark, you want to run through the financials? Mark C. Brown Sure. Revenues for the 3 months ended September 30, 2011, decreased 8% to $135.9 million compared to $147.6 million for the same period in 2010 due to lower enrollment, partly offset by a 5% tuition increase which commenced in January of this year. Income from operations was $24.4 million compared to $38.2 million for the same period in 2010, a decrease of 36%. Operating income margin was 18% compared to 25.9% for the same period in 2010. Net income was $13.9 million compared to $23.3 million for the same period in 2010, a decrease of 40%. Diluted earnings per share was $1.20 compared to $1.72 for the same period in 2010, a decrease of 30%. Diluted weighted average shares outstanding decreased 14% to $11,647,000 from $13,557,000 for the same period in 2010. Revenues for the 9 months ended September 30, 2011, increased 1% to $471.6 million compared to $464.8 million for the same period in 2010 due to a 5% tuition increase which commenced in January of this year, offset by lower average enrollments. Income from operations was $133.8 million compared to $156.9 million for the same period in 2010, a decrease of 15%. Operating income margin was 28.4% compared to 33.8% for the same period in 2010. Net income was $79.4 million compared to $95.4 million for the same period in 2010, a decrease of 17%. Diluted earnings per share was $6.58 compared to $6.98 for the same period in 2010, a decrease of 6%. Diluted weighted average shares outstanding decreased 12% to 12,055,000 shares from 13,663,000 shares for the same period in 2010. Read the rest of this transcript for free on seekingalpha.com