Strayer Education Inc. (STRA, Financial) filed Quarterly Report for the period ended 2010-03-31.
Strayer Education Inc. has a market cap of $3.41 billion; its shares were traded at around $244.59 with a P/E ratio of 32.1 and P/S ratio of 6.6. The dividend yield of Strayer Education Inc. stocks is 1.2%. 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, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Instruction and educational support expenses. Instruction and educational support expenses increased $9.9 million, or 25%, to $49.0 million in the first quarter of 2010 from $39.1 million in the first 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 $3.6 million, $2.5 million, and $1.9 million, respectively. Instruction and educational support expenses as a percentage of revenues decreased to 31.0% in the first quarter of 2010 from 31.4% in the first 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 $6.4 million, or 35%, to $24.3 million in the first quarter of 2010 from $17.9 million in the first 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, travel, relocation, etc.), which increased $1.2 million, $1.1 million, and $2.7 million, respectively, over the prior year. General and administration expenses as a percentage of revenues increased to 15.4% in the first quarter of 2010 from 14.4% in the first quarter of 2009 primarily due to the increase in other administrative expenses.
Provision for income taxes. Income tax expense increased $4.8 million, or 25%, to $23.8 million in the first quarter of 2010 from $19.0 million in the first quarter of 2009, primarily due to the increase in income before taxes attributable to the factors discussed above. Our effective tax rate decreased slightly to 39.5% for the first quarter of 2010, compared to 39.6% for the first quarter of 2009.
At March 31, 2010, we had cash, cash equivalents and marketable securities of $144.0 million compared to $116.5 million at December 31, 2009 and $84.0 million at March 31, 2009. At March 31, 2010, most of our excess cash was invested in bank overnight deposits, money market funds, and a diversified, short-term, investment grade, tax-exempt bond fund to minimize our principal risk and to benefit from the tax efficiency of the funds underlying securities. As of March 31, 2010, we had a total of $52.7 million invested in the short-term, tax-exempt bond fund. At March 31, 2010, the 1,184 issues in this fund had an average credit rating of AA, an average maturity of 1.5 years, an average duration of 1.3 years, as well as an average yield to maturity of 0.9%. We had no debt as of December 31, 2009 or March 31, 2010.
For the three months ended March 31, 2010, we reported $63.1 million net cash from operating activities compared to $47.1 million for the same period in 2009. Capital expenditures were $12.2 million for the quarter ended March 31, 2010 compared to $6.6 million for the same period in 2009. During the quarter ended March 31, 2010, we paid a regular, quarterly common stock dividend of $10.5 million ($0.75 per share), and we received $0.5 million upon the exercise of 6,667 stock options. During the three months ended March 31, 2010, we invested $15.0 million to repurchase 66,900 shares of common stock at an average price of $224.23 per share as part of a previously announced common stock repurchase authorization. Our remaining authorization for common stock repurchases was approximately $75.0 million at March 31, 2010.
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Strayer Education Inc. has a market cap of $3.41 billion; its shares were traded at around $244.59 with a P/E ratio of 32.1 and P/S ratio of 6.6. The dividend yield of Strayer Education Inc. stocks is 1.2%. 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, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
In the first quarter of 2010, we generated $157.9 million in revenue, an increase of 27% compared to the same period in 2009, as a result of enrollment growth of 21% and a 5% tuition increase at the beginning of 2010. Income from operations was $59.9 million for the first quarter of 2010, an increase of 26% compared to the same period in 2009. Net income was $36.4 million in the first quarter of 2010, an increase of 25% compared to the same period in 2009. Diluted earnings per share was $2.65 in the first quarter of 2010 compared to $2.07 in the same period in 2009, an increase of 28%.Instruction and educational support expenses. Instruction and educational support expenses increased $9.9 million, or 25%, to $49.0 million in the first quarter of 2010 from $39.1 million in the first 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 $3.6 million, $2.5 million, and $1.9 million, respectively. Instruction and educational support expenses as a percentage of revenues decreased to 31.0% in the first quarter of 2010 from 31.4% in the first 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 $6.4 million, or 35%, to $24.3 million in the first quarter of 2010 from $17.9 million in the first 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, travel, relocation, etc.), which increased $1.2 million, $1.1 million, and $2.7 million, respectively, over the prior year. General and administration expenses as a percentage of revenues increased to 15.4% in the first quarter of 2010 from 14.4% in the first quarter of 2009 primarily due to the increase in other administrative expenses.
Provision for income taxes. Income tax expense increased $4.8 million, or 25%, to $23.8 million in the first quarter of 2010 from $19.0 million in the first quarter of 2009, primarily due to the increase in income before taxes attributable to the factors discussed above. Our effective tax rate decreased slightly to 39.5% for the first quarter of 2010, compared to 39.6% for the first quarter of 2009.
At March 31, 2010, we had cash, cash equivalents and marketable securities of $144.0 million compared to $116.5 million at December 31, 2009 and $84.0 million at March 31, 2009. At March 31, 2010, most of our excess cash was invested in bank overnight deposits, money market funds, and a diversified, short-term, investment grade, tax-exempt bond fund to minimize our principal risk and to benefit from the tax efficiency of the funds underlying securities. As of March 31, 2010, we had a total of $52.7 million invested in the short-term, tax-exempt bond fund. At March 31, 2010, the 1,184 issues in this fund had an average credit rating of AA, an average maturity of 1.5 years, an average duration of 1.3 years, as well as an average yield to maturity of 0.9%. We had no debt as of December 31, 2009 or March 31, 2010.
For the three months ended March 31, 2010, we reported $63.1 million net cash from operating activities compared to $47.1 million for the same period in 2009. Capital expenditures were $12.2 million for the quarter ended March 31, 2010 compared to $6.6 million for the same period in 2009. During the quarter ended March 31, 2010, we paid a regular, quarterly common stock dividend of $10.5 million ($0.75 per share), and we received $0.5 million upon the exercise of 6,667 stock options. During the three months ended March 31, 2010, we invested $15.0 million to repurchase 66,900 shares of common stock at an average price of $224.23 per share as part of a previously announced common stock repurchase authorization. Our remaining authorization for common stock repurchases was approximately $75.0 million at March 31, 2010.
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