Strayer Education Inc. (STRA, Financial) filed Quarterly Report for the period ended 2010-06-30.
Strayer Education Inc. has a market cap of $3.27 billion; its shares were traded at around $235.22 with a P/E ratio of 28.7 and P/S ratio of 6.5. The dividend yield of Strayer Education Inc. stocks is 1.3%. Strayer Education Inc. had an annual average earning growth of 16% over the past 10 years. GuruFocus rated Strayer Education Inc. the business predictability rank of 3.5-star.STRA is in the portfolios of Steve Mandel of Lone Pine Capital, Ron Baron of Baron Funds, Wallace Weitz of Weitz Wallace R & Co, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Pioneer Investments, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC.
Instruction and educational support expenses. Instruction and educational support expenses increased $9.2 million, or 22%, to $50.1 million in the second quarter of 2010 from $40.9 million in the second quarter of 2009. This increase was principally due to direct costs necessary to support the increase in student enrollments, including faculty compensation, related academic staff salaries, and campus facility costs, which increased $3.5 million, $1.9 million, and $1.7 million, respectively. Instruction and educational support expenses as a percentage of revenues decreased to 31.5% in the second quarter of 2010 from 32.5% in the second quarter of 2009, largely due to faculty costs growing at a lower rate than tuition revenue.
General and administration expenses. General and administration expenses increased $5.7 million, or 29%, to $25.6 million in the second quarter of 2010 from $19.9 million in the second quarter of 2009. This increase was principally due to increased employee salaries and related costs, higher bad debt expense, and other administrative expenses (e.g., professional services and travel), which increased $2.8 million, $0.4 million, and $1.0 million, respectively, over the prior year. General and administration expenses as a percentage of revenues increased to 16.1% in the second quarter of 2010 from 15.8% in the second quarter of 2009 primarily due to the increase in other administrative expenses.
Instruction and educational support expenses. Instruction and educational support expenses increased $19.1 million, or 24%, to $99.1 million in the six months ended June 30, 2010 from $80.0 million in the six months ended June 30, 2009. This increase was principally due to direct costs necessary to support the increase in student enrollments, including faculty compensation, related academic staff salaries, and campus facility costs, which increased $7.1 million, $4.4 million, and $3.7 million, respectively. These expenses as a percentage of revenues decreased to 31.2% for the six months ended June 30, 2010 from 32.0% in the six months ended June 30, 2009.
General and administration expenses. General and administration expenses increased $12.1 million, or 32%, to $49.9 million in the six months ended June 30, 2010 from $37.8 million in the six months ended June 30, 2009. This increase was principally due to increased employee salaries and related costs, higher bad debt expense, and other administrative expenses (e.g., professional services, travel, etc.), which increased $4.4 million, $1.5 million and $3.1 million, respectively. General and administration expenses as a percentage of revenues increased to 15.7% for the six months ended June 30, 2010 from 15.1% for the six months ended June 30, 2009.
For the six months ended June 30, 2010, we reported $87.9 million of net cash from operating activities compared to $71.9 million for the same period in 2009. Capital expenditures were $22.6 million for the six months ended June 30, 2010 compared to $13.0 million for the same period in 2009. During the six months ended June 30, 2010, we paid regular, quarterly common stock dividends of $20.9 million ($0.75 per share for each quarterly dividend) and we received $0.5 million upon the exercise of 6,667 stock options. During the three months ended June 30, 2010, we invested $7.0 million to repurchase 29,200 shares of common stock at an average price of $239.77 per share as part of a previously announced common stock repurchase authorization. Our remaining authorization for stock repurchases was $68.0 million at June 30, 2010, having spent $22.0 million for repurchases in the six months ended June 30, 2010.
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Strayer Education Inc. has a market cap of $3.27 billion; its shares were traded at around $235.22 with a P/E ratio of 28.7 and P/S ratio of 6.5. The dividend yield of Strayer Education Inc. stocks is 1.3%. Strayer Education Inc. had an annual average earning growth of 16% over the past 10 years. GuruFocus rated Strayer Education Inc. the business predictability rank of 3.5-star.STRA is in the portfolios of Steve Mandel of Lone Pine Capital, Ron Baron of Baron Funds, Wallace Weitz of Weitz Wallace R & Co, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Pioneer Investments, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
In the second quarter of 2010, we generated $159.3 million in revenue, an increase of 26% compared to the same period in 2009, as a result of enrollment growth of 22% and a 5% tuition increase at the beginning of 2010. Income from operations was $58.7 million for the second quarter of 2010, an increase of 30% compared to the same period in 2009. Net income was $35.7 million in the second quarter of 2010, an increase of 30%, compared to the same period in 2009. Diluted earnings per share was $2.60 for the second quarter of 2010 compared to $2.00 for the same period in 2009, an increase of 30%.Instruction and educational support expenses. Instruction and educational support expenses increased $9.2 million, or 22%, to $50.1 million in the second quarter of 2010 from $40.9 million in the second quarter of 2009. This increase was principally due to direct costs necessary to support the increase in student enrollments, including faculty compensation, related academic staff salaries, and campus facility costs, which increased $3.5 million, $1.9 million, and $1.7 million, respectively. Instruction and educational support expenses as a percentage of revenues decreased to 31.5% in the second quarter of 2010 from 32.5% in the second quarter of 2009, largely due to faculty costs growing at a lower rate than tuition revenue.
General and administration expenses. General and administration expenses increased $5.7 million, or 29%, to $25.6 million in the second quarter of 2010 from $19.9 million in the second quarter of 2009. This increase was principally due to increased employee salaries and related costs, higher bad debt expense, and other administrative expenses (e.g., professional services and travel), which increased $2.8 million, $0.4 million, and $1.0 million, respectively, over the prior year. General and administration expenses as a percentage of revenues increased to 16.1% in the second quarter of 2010 from 15.8% in the second quarter of 2009 primarily due to the increase in other administrative expenses.
Instruction and educational support expenses. Instruction and educational support expenses increased $19.1 million, or 24%, to $99.1 million in the six months ended June 30, 2010 from $80.0 million in the six months ended June 30, 2009. This increase was principally due to direct costs necessary to support the increase in student enrollments, including faculty compensation, related academic staff salaries, and campus facility costs, which increased $7.1 million, $4.4 million, and $3.7 million, respectively. These expenses as a percentage of revenues decreased to 31.2% for the six months ended June 30, 2010 from 32.0% in the six months ended June 30, 2009.
General and administration expenses. General and administration expenses increased $12.1 million, or 32%, to $49.9 million in the six months ended June 30, 2010 from $37.8 million in the six months ended June 30, 2009. This increase was principally due to increased employee salaries and related costs, higher bad debt expense, and other administrative expenses (e.g., professional services, travel, etc.), which increased $4.4 million, $1.5 million and $3.1 million, respectively. General and administration expenses as a percentage of revenues increased to 15.7% for the six months ended June 30, 2010 from 15.1% for the six months ended June 30, 2009.
For the six months ended June 30, 2010, we reported $87.9 million of net cash from operating activities compared to $71.9 million for the same period in 2009. Capital expenditures were $22.6 million for the six months ended June 30, 2010 compared to $13.0 million for the same period in 2009. During the six months ended June 30, 2010, we paid regular, quarterly common stock dividends of $20.9 million ($0.75 per share for each quarterly dividend) and we received $0.5 million upon the exercise of 6,667 stock options. During the three months ended June 30, 2010, we invested $7.0 million to repurchase 29,200 shares of common stock at an average price of $239.77 per share as part of a previously announced common stock repurchase authorization. Our remaining authorization for stock repurchases was $68.0 million at June 30, 2010, having spent $22.0 million for repurchases in the six months ended June 30, 2010.
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