Strayer Education, Inc. Reports Record Second Quarter 2009 Revenues and Earnings; and Record Summer Term 2009 Enrollments

-- Strayer Second Quarter Revenues Up 29% --

-- Strayer Second Quarter Diluted EPS $2.00, Up 33% --

-- Strayer Summer 2009 Total Enrollments Up 24% / New Students up 28% --

--Four New Campuses Opening for 2009 Fall Term --
ARLINGTON, Va.--(Business Wire)--
Strayer Education, Inc. (Nasdaq:STRA) today announced financial results for the
three months ended June 30, 2009. Financial highlights are as follows:

Three Months Ended June 30

* Revenues for the three months ended June 30, 2009 increased 29% to $125.9
million, compared to $97.9 million for the same period in 2008, due to increased
enrollment and a 5% tuition increase which commenced in January 2009.
* Income from operations was $45.1 million compared to $33.6 million for the
same period in 2008, an increase of 34%. Operating income margin was 35.8%
compared to 34.3% for the same period in 2008.
* Net income was $27.5 million compared to $21.3 million for the same period in
2008, an increase of 29%. Diluted earnings per share was $2.00 compared to $1.50
for the same period in 2008, an increase of 33%. Diluted weighted average shares
outstanding decreased to 13,771,000 from 14,248,000 for the same period in
2008.

Six Months Ended June 30

* Revenues for the six months ended June 30, 2009 increased 28% to $250.4
million, compared to $195.0 million for the same period in 2008, due to
increased enrollment and a 5% tuition increase which commenced in January 2009.
* Income from operations was $92.7 million compared to $69.2 million for the
same period in 2008, an increase of 34%. Operating income margin was 37.0%
compared to 35.5% for the same period in 2008.
* Net income was $56.6 million compared to $44.8 million for the same period in
2008, an increase of 26%. Diluted earnings per share was $4.07 compared to $3.14
for the same period in 2008, an increase of 30%. Diluted weighted average shares
outstanding decreased to 13,886,000 from 14,294,000 for the same period in
2008.

"We are pleased with our solid financial results for the second quarter and our
strong student enrollment for the summer term," said Robert S. Silberman,
Chairman and CEO of Strayer Education, Inc. "We look forward to the opening of
our four new campuses and our expansion in the states of Florida and Ohio for
the 2009 fall term."

Balance Sheet and Cash Flow

At June 30, 2009, the Company had cash, cash equivalents and marketable
securities of $90.4 million and no debt. The Company generated $71.9 million
from operating activities in the first six months of 2009 compared to $43.5
million during the same period in 2008. Capital expenditures were $13.0 million
for the six months ended June 30, 2009 compared to $10.0 million for the same
period in 2008.

During the three months ended June 30, 2009, the Company used $5.1 million to
repurchase 27,800 shares of stock at an average price of $181.95 as part of a
previously announced stock repurchase authorization. The Company`s remaining
authorization for stock repurchases was $5.0 million at June 30, 2009, having
invested approximately $65.1 million during the six months ended June 30, 2009
for this purpose. During the six months ended June 30, 2009, the Company paid
regular, quarterly dividends of $14.1 million ($0.50 per share for each
quarterly dividend).

For the second quarter 2009, bad debt expense as a percentage of revenues was
4.2% compared to 2.8% for the same period in 2008. Days sales outstanding,
adjusted to exclude tuition receivable related to future quarters, was 15 days
at the end of the second quarter of 2009, compared to 12 days at the end of the
second quarter of 2008.

Student Enrollment

Enrollment at Strayer University for the 2009 summer term increased 24% to
42,516 students compared to 34,176 students for the same term in 2008. Across
the Strayer University campus and online system, continuing student enrollments
increased 23%, while new student enrollments increased 28%. Global online
students increased 43%. Students taking 100% of their classes online (including
campus based students) increased 25%. The total number of students taking at
least one class online increased 25% to 31,338.

Student Enrollment

Summer Summer %
2008 2009 Change
Campus Based Students:
New Campuses (26 in operation 3 years or less)
Classroom Students 1,207 3,014 150 %
Online Students 2,432 4,479 84 %
Total New Campus Based Students 3,639 7,493 106 %
Mature Campuses (41 in operation more than 3 years)
Classroom Students 11,626 12,774 10 %
Online Students 15,854 17,878 13 %
Total Mature Campus Based Students 27,480 30,652 12 %
Total Campus Based Students 31,119 38,145 23 %
Global Online Students 3,057 4,371 43 %
Total University Enrollment 34,176 42,516 24 %

Total Students Taking 100% of Courses Online 21,343 26,728 25 %
Total Students Taking at Least 1 Course Online 25,166 31,338 25 %

New Campus Openings

The Company announced today that Strayer University will open four new campuses
in preparation for the fall academic term. Two campuses will be located in the
state of Ohio serving the Cleveland and Akron markets. The third campus will be
located in Florence, Kentucky, which will serve residents in the Cincinnati,
Ohio market. The fourth new campus will be in Miami, Florida. These four new
campuses, together with the seven campuses opened earlier this year, complete
the Company`s planned 11 campus openings in 2009. In October, the Company
intends to announce the number of new campuses Strayer University plans to open
in 2010.

Shares and Options Outstanding

At June 30, 2009, the Company had 13,992,907 common shares issued and
outstanding, and 147,084 stock options outstanding with a weighted average
exercise price of $105.49 and a remaining weighted average contractual life of
2.5 years.

Common Stock Cash Dividend

The Company announced today that its Board of Directors has declared its
regular, quarterly cash dividend of $0.50 per share. This dividend will be paid
on September 10, 2009 to shareholders of record as of August 27, 2009.

Business Outlook

Based on the strong enrollment growth announced for the 2009 summer term, offset
partly by the costs of investments in new campuses, the Company estimates third
quarter 2009 diluted EPS will be in the range of $1.14 to $1.16.

Conference Call with Management

Strayer Education, Inc. will host a conference call to discuss its second
quarter 2009 earnings at 10:00 a.m. (ET) today. To participate on the live call,
investors should dial (888) 329-8889 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 (pass code 3969514) starting at 1:00 p.m. (ET) today and will be
available through Tuesday, August 4, and archived at www.strayereducation.com
for 90 days.

Strayer Education, Inc. (Nasdaq: STRA) is an education services holding company
that owns Strayer University and certain other assets. Strayer`s mission is to
make higher education achievable and convenient for working adults in today`s
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 care, and public
administration to approximately 46,000 working adult students at 71 campuses in
15 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.

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 ("Reform Act").The statements are based on the Company`s
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 Company`s 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, 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 associated with
the acquisition of existing educational institutions, 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
Company`s annual report on Form 10-K and its other 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.

STRAYER EDUCATION, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)

For the three months For the six months
ended June 30, ended June 30,
2008 2009 2008 2009
Revenues $ 97,928 $ 125,931 $ 195,002 $ 250,409
Costs and expenses:
Instruction and educational support 32,909 40,948 64,551 80,017
Marketing and admissions 16,729 20,029 31,824 39,897
General and administration 14,683 19,875 29,462 37,805
Income from operations 33,607 45,079 69,165 92,690
Investment and other income 785 375 2,821 866
Income before income taxes 34,392 45,454 71,986 93,556
Provision for income taxes 13,069 17,954 27,142 37,003
Net income $ 21,323 $ 27,500 $ 44,844 $ 56,553
Earnings per share:
Basic $ 1.52 $ 2.01 $ 3.19 $ 4.11
Diluted $ 1.50 $ 2.00 $ 3.14 $ 4.07
Weighted average shares outstanding:
Basic 14,001 13,653 14,052 13,764
Diluted 14,248 13,771 14,294 13,886
Common dividends per share:
Regular $ 0.38 $ 0.50 $ 0.75 $ 1.00
Special -- -- $ 2.00 --

The table below sets forth the amount of stock-based compensation expense recorded in each of the expense line items.

For the three months For the six months
ended June 30, ended June 30,
2008 2009 2008 2009
Instruction and educational support $ 365 $ 447 $ 693 $ 855
Marketing and admissions 229 30 437 67
General and administration 2,217 2,373 4,909 4,296
Total stock-based compensation expense $ 2,811 $ 2,850 $ 6,039 $ 5,218

STRAYER EDUCATION, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)

December 31, June 30,
2008 2009
ASSETS
Current assets:
Cash and cash equivalents $ 56,379 $ 38,598
Marketable securities available for sale, at fair value 50,952 51,842
Tuition receivable, net of allowances for doubtful accounts of $4,776 and $5,400 at December 31, 2008 and June 30, 2009, respectively 131,458 130,912
Income taxes receivable 3,534 --
Other current assets 7,175 6,540
Total current assets 249,498 227,892
Property and equipment, net 66,304 75,051
Deferred income taxes 7,799 9,508
Restricted cash 500 500
Other assets 462 462
Total assets $ 324,563 $ 313,413

LIABILITIES & STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable $ 17,099 $ 18,989
Accrued expenses 4,567 5,123
Income taxes payable -- 1,796
Unearned tuition 114,872 113,574
Other current liabilities 281 281
Total current liabilities 136,819 139,763
Long-term liabilities 11,663 11,584
Total liabilities 148,482 151,347
Commitments and contingencies
Stockholders` equity:
Common stock, par value $0.01; 20,000,000 shares authorized; 14,089,189 and 13,992,907 shares issued and outstanding at December 31, 2008 and June 30, 2009, respectively 141 140
Additional paid-in capital 17,185 877
Retained earnings 158,834 160,903
Accumulated other comprehensive (loss) income (79 ) 146
Total stockholders' equity 176,081 162,066
Total liabilities and stockholders` equity $ 324,563 $ 313,413

STRAYER EDUCATION, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)

For the six months ended June 30,
2008 2009
Cash flows from operating activities:
Net income $ 44,844 $ 56,553
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on disposal of assets -- 155
Amortization of gain on sale of assets (141 ) (141 )
Amortization of deferred rent (217 ) (91 )
Gain on sale of marketable securities (785 ) --
Depreciation and amortization 4,991 6,600
Deferred income taxes (2,059 ) (2,173 )
Stock-based compensation 5,487 5,218
Changes in assets and liabilities:
Tuition receivable, net (1,755 ) 546
Other current assets (1,298 ) 1,066
Other assets (64 ) --
Accounts payable (1,111 ) (589 )
Accrued expenses 1,155 556
Income taxes payable/receivable 5,098 6,884
Excess tax benefits from stock-based payment arrangements (11,498 ) (1,554 )
Unearned tuition 461 (1,298 )
Deferred lease incentives 363 153
Net cash provided by operating activities 43,471 71,885
Cash flows from investing activities:
Purchases of property and equipment (10,032 ) (13,023 )
Purchases of marketable securities (30,180 ) (632 )
Proceeds from the sale of marketable securities 76,785 --
Net cash provided by (used in) investing activities 36,573 (13,655 )
Cash flows from financing activities:
Regular common dividends paid (10,691 ) (14,130 )
Special common dividends paid (28,854 ) --
Proceeds from exercise of stock options 10,325 1,691
Excess tax benefits from stock-based payment arrangements 11,498 1,554
Repurchase of common stock (68,976 ) (65,126 )
Net cash used in financing activities (86,698 ) (76,011 )
Net (decrease) in cash and cash equivalents (6,654 ) (17,781 )
Cash and cash equivalents - beginning of period 95,036 56,379
Cash and cash equivalents - end of period $ 88,382 $ 38,598

Non-cash transactions:
Purchases of property and equipment included in accounts payable $ 843 $ 3,290

Strayer Education, Inc.
Mark C. Brown, Executive Vice President and
Chief Financial Officer
(703) 247-2514
or
Sonya Udler, Senior Vice President,
Corporate Communications
(703) 247-2517
sonya.udler@strayer.edu

Copyright Business Wire 2009

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