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Capella Education Company Reports Operating Results (10-K)

February 25, 2011 | About:

Capella Education Company (NASDAQ:CPLA) filed Annual Report for the period ended 2010-12-31.

Capella Education Company has a market cap of $950.2 million; its shares were traded at around $57.46 with a P/E ratio of 15.8 and P/S ratio of 2.3. Hedge Fund Gurus that owns CPLA: Joel Greenblatt of Gotham Capital, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns CPLA: Ron Baron of Baron Funds, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.

Highlight of Business Operations:

In 2010, our end-of-year enrollment and revenues grew by approximately 16.2% and 27.3%, respectively, as compared to 2009. Our growth has resulted from a combination of: increased demand for our programs; expansion of our program and degree offerings; our ability to obtain specialized accreditations, professional licensures and endorsements for certain programs we offer; and establishment of relationships with large corporate employers, healthcare institutions, the U.S. Armed Forces and various community colleges. We seek to achieve growth in a manner that assures continued improvement in educational quality and learner success while maintaining compliance with regulatory standards. Additionally, we seek to enhance our operational and financial performance by tracking and analyzing quantifiable metrics that provide insight as to the effectiveness of our business and educational processes.

According to the U.S. Census Bureaus 2005-2009 American Community Survey estimates, 65.1% of adults (persons 25 years of age or older) do not possess a postsecondary degree. Of the 18.2 million postsecondary learners enrolled as of the Fall of 2007, the NCES estimated that 7.0 million were adults, representing 39% of total enrollment. We expect that adults will continue to represent a large, growing segment of the postsecondary education market as they seek additional education to secure better jobs, or to remain competitive or advance in their current careers. In June 2010, Eduventures, Inc, an education consulting and research firm, published a report stating that the growth rate in fully-online education will continue to exceed the overall growth rate of the postsecondary market through 2019. Online undergraduate degree programs are expected to grow 94%, while traditional institutions are expected to grow an average of 5% in the same time frame. Online graduate programs are expected to grow 140% versus 10% for traditional institutions. We believe that the higher growth in demand for fully-online education is largely attributable to the flexibility and convenience of this instructional format, as well as the growing recognition of its educational efficacy.

Read the The complete Report

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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