Strayer Education Reports Second Quarter Revenues and Earnings

7/27/16

HERNDON, Va.--(BUSINESS WIRE)--Strayer Education, Inc. (NASDAQ: STRA) today announced financial results for the period ended June 30, 2016. Financial highlights are as follows:

For Three Months Ended June 30:

  • Revenues decreased 1% to $108.5 million compared to $109.8 million for the same period in 2015, principally due to lower revenue per student.
  • Income from operations was $12.9 million compared to $20.9 million for the same period in 2015, a decrease of 38%. Operating margin was 11.9% compared to 19.1% for the same period in 2015.
  • Net income was $7.8 million compared to $11.9 million for the same period in 2015, a decrease of 34%.
  • Diluted earnings per share were $0.72 compared to $1.11 for the same period in 2015, a decrease of 35%. Diluted weighted average shares outstanding increased 1% to 10,799,000 from 10,705,000 for the same period in 2015.

Six Months Ended June 30:

  • Revenues decreased 1% to $219.7 million compared to $221.6 million for the same period in 2015, principally due to lower revenue per student.
  • Income from operations was $33.0 million compared to $40.8 million for the same period in 2015, a decrease of 19%. Income from operations in the six months ended June 30, 2016 includes non-cash adjustments to the Company’s liability for losses on facilities no longer in use. Excluding these items, income from operations was $31.3 million. Operating income margin was 15.0% compared to 18.4% for the same period in 2015. Excluding non-cash adjustments, operating income margin for the first half of 2016 was 14.2%.
  • Net income was $20.2 million compared to $23.3 million for the same period in 2015, a decrease of 13%. Excluding non-cash adjustments to the Company’s liability for losses on facilities no longer in use, net income was $19.1 million compared to $23.2 million for the same period in 2015. Diluted earnings per share were $1.87 compared to $2.17 for the same period in 2015. Excluding non-cash adjustments to the Company’s liability for losses on facilities no longer in use, diluted earnings per share were $1.77 for the first half of 2016. Diluted weighted average shares outstanding increased 1% to 10,790,000 from 10,721,000 for the same period in 2015.

Balance Sheet and Cash Flow

At June 30, 2016, the Company had cash and cash equivalents of $117.4 million. The Company generated $22.4 million in cash from operating activities in the first six months of 2016 compared to $43.8 million during the same period in 2015. Capital expenditures were $3.9 million for the six months ended June 30, 2016 compared to $7.1 million for the same period in 2015.

The Company had $70.0 million of share repurchase authorization remaining at June 30, 2016. No shares were repurchased in the second quarter of 2016.

For the second quarter of 2016, bad debt expense as a percentage of revenues was 3.8% compared to 3.2% for the same period in 2015.

Student Enrollment for Summer Term

Total enrollments at Strayer University for the summer term that started July 5, 2016 increased 4% to 38,813 students compared to 37,221 students for the summer term in 2015. New student enrollments increased 6% and continuing student enrollments increased 4%.

Stock-based Compensation Activity

In May 2016, the Company awarded 11,365 shares of restricted stock to various non-employee members of the Company’s Board of Directors, as part of the Company’s annual director compensation. The Company’s stock price closed at $49.27 on the date of these restricted stock grants.

About Strayer Education, Inc.

Strayer Education, Inc. (NASDAQ: STRA) is an education services holding company that owns Strayer University and the New York Code and Design Academy. For more information on Strayer Education, Inc. visit www.strayereducation.com.

About Strayer University

Founded in 1892, Strayer University is a proprietary institution of higher learning that offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, health services administration, nursing, public administration, and criminal justice, to working adult students. The University includes Strayer@Work, which serves corporate clients by delivering the next generation of performance improvement and workforce development. Strayer University also offers an executive MBA online and corporate training program through its Jack Welch Management Institute. Strayer University is accredited by the Middle States Commission on Higher Education, 3624 Market Street, Philadelphia, PA 19104 (267-284-5000). The Middle States Commission on Higher Education is an institutional accrediting agency recognized by the U.S. Secretary of Education and the Council for Higher Education Accreditation.

For more information on Strayer University visit www.strayer.edu.

About New York Code and Design Academy

New York Code and Design Academy (NYCDA) is a New York City-based provider of non-degree web and mobile app development courses. NYCDA courses are delivered primarily on-ground to students seeking to further their career in software application development. NYCDA does not participate in the Federal Title IV lending program.

For more information on NYCDA visit www.nycda.com.