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 p.m. Eastern through Thursday, May 3. The replay is available at (855) 859-2056, conference ID, 39822016. 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 is 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. I'll then ask Mark to report on our first quarter financial results and Karl to comment on our operational results, including our enrollment statistics for the spring academic term, which we have just started. Finally, I'll provide an update on our growth strategy and the company's earnings outlook for Q2.
Strayer Education is an education service company whose primary asset is Strayer University, a 50,000-student, 94-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 further their careers and 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 University's 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, do you want to run them through financials?Mark C. Brown Sure. Revenues for the 3 months ended March 31, 2012, decreased 13% to $149.5 million compared to $172 million for the same period in 2011, principally due to lower enrollments. Income from operations was $40.9 million compared to $59.2 million for the same period in 2011, a decrease of 31%. Operating income margin was 27.3% compared to 34.4% for the same period in 2011. Net income was $24 million compared to $35.8 million for the same period in 2011, a decrease of 33%. Diluted earnings per share was $2.09 compared to $2.80 for the same period in 2011, a decrease of 25%. Diluted weighted average shares outstanding decreased 10% to $11,477,000 from $12,794,000 for the same period in 2011. At March 31, 2012, the company had cash and cash equivalents of $52.7 million. The company generated $36.5 million from operating activities in the first quarter of 2012 compared to $67.2 million during the same period in 2011. Capital expenditures were $4.1 million for the 3 months ended March 31, 2012, compared to $11.4 million for the same period in 2011. Read the rest of this transcript for free on seekingalpha.com