Strayer reports lower revenues for the fourth quarter
THE TAKE: Strayer Education Inc. reported lower revenues in the fourth quarter as enrollment dropped at the company’s schools. Enrollment for the 2014 winter fell 14 percent to 41,098 students, compared with 47,926 students in 2013.
The company also reported a net loss of nearly $19 million in the fourth quarter related to restructuring, which is estimated to reduce annual operating expenses by $50 million starting in 2014. The restructuring included closing 20 physical locations in the Midwest, affecting 5 percent of Strayer’s students.
Revenue: Revenues in the fourth quarter dropped 12.6 percent to $124.1 million, compared with $141.9 million during the fourth quarter of 2012. Lower revenues mostly were attributed to lower enrollment. For the year, revenues fell 10 percent to $503.6 million, compared with $562 million in 2012.
Profit: Strayer reported an $18.96 million loss, or $1.80 per share, for the fourth quarter, compared with a profit of $16.6 million, or $1.47 per share, during the same period last year. Net income was affected by $33 million in after-tax charges related to restructuring costs.
Full-year net earnings were $16.4 million for 2013, compared with $65.9 million the year before.