Strayer Education, Inc. Reports Third Quarter 2012 Revenues And Earnings; And Fall Term 2012 Enrollments

Strayer Education, Inc. (Nasdaq: STRA) today announced financial results for the three months ended September 30, 2012. Financial highlights are as follows:

Three Months Ended September 30
  • Revenues for the three months ended September 30, 2012 decreased 9% to $124.3 million, compared to $135.9 million for the same period in 2011, principally due to lower enrollment.
  • Income from operations was $7.8 million compared to $24.4 million for the same period in 2011, a decrease of 68%. Operating income margin was 6.3% compared to 18.0% for the same period in 2011.
  • Net income was $4.1 million compared to $13.9 million for the same period in 2011, a decrease of 71%. Diluted earnings per share was $0.36 compared to $1.20 for the same period in 2011, a decrease of 70%. Diluted weighted average shares outstanding decreased 1% to 11,487,000 from 11,647,000 for the same period in 2011.

Nine Months Ended September 30
  • Revenues for the nine months ended September 30, 2012 decreased 11% to $420.0 million, compared to $471.6 million for the same period in 2011, principally due to lower average enrollments.
  • Income from operations was $84.9 million compared to $133.8 million for the same period in 2011, a decrease of 37%. Operating income margin was 20.2% compared to 28.4% for the same period in 2011.
  • Net income was $49.3 million compared to $79.4 million for the same period in 2011, a decrease of 38%. Diluted earnings per share was $4.29 compared to $6.58 for the same period in 2011, a decrease of 35%. Diluted weighted average shares outstanding decreased 5% to 11,482,000 from 12,055,000 for the same period in 2011.

Balance Sheet and Cash Flow

At September 30, 2012, the Company had cash and cash equivalents of $45.6 million. The Company generated $57.2 million from operating activities in the first nine months of 2012 compared to $122.7 million during the same period in 2011. Capital expenditures were $18.2 million for the nine months ended September 30, 2012 compared to $24.9 million for the same period in 2011. At September 30, 2012, the Company had $77.5 million outstanding under its term loan and $25 million outstanding under its revolving credit facility.

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