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8-K - FORM 8-K - Strategic Education, Inc. | w81032e8vk.htm |
EX-10.1 - EX-10.1 - Strategic Education, Inc. | w81032exv10w1.htm |
FOR IMMEDIATE RELEASE
For more information contact:
Mark C. Brown, Executive Vice President and
Chief Financial Officer
(703) 247-2514
Chief Financial Officer
(703) 247-2514
Sonya Udler, Senior Vice President,
Corporate Communications
(703) 247-2517
sonya.udler@strayer.edu
Corporate Communications
(703) 247-2517
sonya.udler@strayer.edu
STRAYER EDUCATION, INC. REPORTS
WINTER TERM 2011 ENROLLMENTS AND
PROVIDES AN UPDATE TO ITS 2011 BUSINESS MODEL
WINTER TERM 2011 ENROLLMENTS AND
PROVIDES AN UPDATE TO ITS 2011 BUSINESS MODEL
ARLINGTON, Va., January 7, 2011 Strayer Education, Inc. (Nasdaq: STRA) today announced
enrollments at Strayer University for the 2011 winter term and provided additional information
regarding its 2011 business model.
Student Enrollment
Enrollment at Strayer University for the 2011 winter term increased 4% to approximately 57,300
students compared to 55,106 students for the same term in 2010. Across the Strayer University
campus and online system, continuing student enrollments increased by approximately 10%, while new
student enrollments decreased by approximately 20%.
2011 Business Model
In October 2010, the Company announced its business model for 2011, which included a 5% tuition
increase effective January 1, 2011 and the opening of eight new campuses in 2011. At that time the
Company announced that, assuming a 13% increase in annual student enrollment at Strayer University
in 2011, the Company would then expect a 17-18% increase in revenue, roughly stable operating
margins, and diluted earnings per share in the $11.30 to $11.50 range.
Based on Strayer Universitys enrollment growth for the 2011 winter term described above, the
Company today provided the following additional information regarding its 2011 business model:
2011 Business Model
Enrollment Growth |
-5% | 0% | 5% | 13% | ||||
Revenue growth |
-1% to 0% | 4% to 5% | 9% to 10% | 17% to 18% | ||||
Change in operating margin |
-725 to -775 bps | -425 to -475 bps | -125 to -175 bps | 0 bps | ||||
Diluted earnings per share |
$7.50 to $7.70 | $8.80 to $9.00 | $10.10 to $10.30 | $11.30 to $11.50 |
Included in these ranges is the Companys estimate of approximately $0.55 per share of after tax
stock-based compensation expense and an effective tax rate of 39.5%.
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Revolving Credit Facility
The Company also announced today that it has replaced its $15 million Revolving Credit Facility
with a $100 million Revolving Credit Facility. Interest on borrowings under this facility would
accrue initially at an annual rate of 1.75% above the London Interbank Offered Rate. This facility
has a term of three years.
Conference Call with Management
Strayer Education, Inc. will host a conference call to discuss enrollment at Strayer University for
the 2011 winter term and its 2011 business model at 7:30 a.m. (ET) on Monday, January 10, 2011.
To participate on the live call, investors should dial (877) 723-9509 10 minutes prior to the start
time. In addition, the call will be available via live Webcast over the Internet. To access the
live Webcast of the conference call, please go to www.strayereducation.com 15 minutes prior to the
start time of the call to register. An archived replay of the conference call will be available at
(888) 203-1112 (passcode 9545409) starting at 1:00 p.m. (ET) on Monday, January 10 and will be
available through Monday, January 17, and archived at www.strayereducation.com for 90 days.
About Strayer Education, Inc.
Strayer Education, Inc. (Nasdaq: STRA) is an education services holding company that owns Strayer
University and certain other assets. Strayers mission is to make higher education achievable for
working adults in todays economy. 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, public
administration, and criminal justice to approximately 57,000 working adult students at 87 campuses
in 20 states and Washington, D.C. and worldwide via the Internet. Strayer University is committed
to providing an education that prepares working adult students for advancement in their careers and
professional lives. Founded in 1892, Strayer University is accredited by the Middle States
Commission on Higher Education.
For more information on Strayer Education, Inc. visit www.strayereducation.com and for Strayer
University visit www.strayer.edu.
Forward-Looking Statements
This press release contains statements that are forward looking and are made pursuant to the
safe-harbor provisions of the Private Securities Litigation Reform Act of 1995 (the Reform
Act). Such statements may be identified by the use of words such as expect, estimate,
assume, believe, anticipate, will, forecast, plan, project, or similar words. The
statements are based on the Companys current expectations and are subject to a number of
uncertainties and risks. In connection with the safe-harbor provisions of the Reform Act, the
Company has identified important factors that could cause the Companys actual results to differ
materially. The uncertainties and risks include the pace of growth of student enrollment, our continued compliance with Title IV of the Higher
Education Act, and the regulations thereunder, as well as regional accreditation standards and
state regulatory requirements, rulemaking by the Department of Education and increased focus by the
U. S. Congress on for-profit education institutions, competitive factors, risks associated with the
opening of new campuses, risks associated with the offering of new educational programs and
adapting to other changes, risks relating to the timing of regulatory approvals, our ability to
implement our growth strategy, risks associated with the ability of our students to finance their
education in a timely manner, and general economic and market conditions. Further information
about these and other relevant risks and uncertainties may be found in the Companys Annual Report
on Form 10-K for the fiscal year ended December 31, 2009 and in its subsequent filings with the
Securities and Exchange Commission, all of which are incorporated herein by reference and which are
available from the Commission. We undertake no obligation to update or revise forward looking
statements.
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