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.

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