Strategic Education, Inc. Reports Second Quarter 2019 Results; Continued Strong Performance At Both Strayer University And Capella University One Year Since Merger
HERNDON, Va.– Strategic Education, Inc. (SEI) (NASDAQ: STRA) today announced financial results for the period ended June 30, 2019.
Karl McDonnell, Chief Executive Officer of SEI said, “We are particularly pleased with the strong second quarter results and the organization’s continued ability to execute as we mark the one year anniversary since closing our merger with Capella Education Company. Merger integration and synergies are on track, providing us with a solid foundation as we remain focused on delivering academic success and long-term economic mobility for our students and alumni.”
STRATEGIC EDUCATION, INC. CONSOLIDATED RESULTS
[Note: Strategic Education, Inc.’s financial results for any periods ended prior to August 1, 2018 do not include the financial results of Capella Education Company and are therefore not directly comparable.]
Three Months Ended June 30
- Revenue increased 113.8% to $245.1 million compared to $114.7 million for the same period in 2018.
- Income from operations was $27.6 million or 11.3% of revenue, compared to $4.2 million or 3.6% of revenue for the same period in 2018. Income from operations in 2019 includes $15.4 million of amortization expense related to assets acquired in the merger with Capella Education Company and $3.0 million in costs associated with the merger with Capella Education Company. Income from operations in 2018 included $6.2 million in charges resulting from the impairment of goodwill and intangible assets associated with The New York Code + Design Academy, and $2.8 million in costs associated with the merger with Capella Education Company. Adjusted income from operations, which is a non-GAAP financial measure and excludes the aforementioned expenses, was $46.0 million in 2019 compared to $13.2 million for the same period in 2018. The adjusted operating income margin was 18.8% compared to 11.5% for the same period in 2018. For more details on non-GAAP financial measures, refer to the information in the Non-GAAP Financial Measures section of this press release.
- Net income, which includes the items described above, and also includes income from partnership interests and other investments, and certain discrete tax adjustments, was $24.4 million in 2019 compared to $5.2 million for the same period in 2018. Adjusted net income was $35.2 million compared to $9.9 million for the same period in 2018.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) was $54.1 million in 2019 compared to $9.1 million in 2018. Adjusted EBITDA was $60.3 million compared to $21.7 million for the same period in 2018.
- Diluted earnings per share was $1.10 compared to $0.46 for the same period in 2018. Adjusted diluted earnings per share increased to $1.59 from $0.87 for the same period in 2018. Diluted weighted average shares outstanding increased to 22,109,000 from 11,380,000 for the same period in 2018, due primarily to new shares issued to facilitate the merger with Capella Education Company.