Exhibit 99.2
CAPELLA EDUCATION COMPANY
Non-GAAP Pro-Forma Statement of Income and Earnings per Common Share
Non-GAAP Income Statements and Earnings Per Common Share:
The following non-GAAP pro-forma income statements and earnings per common share amounts are non-GAAP financial measures consisting of the consolidated income statements and earnings per common share amounts excluding the impact of Arden University for the three months ended March 31, 2015, June 30, 2015, September 30, 2015, and December 31, 2015 as well as for the year-ended December 31, 2014. The following tables provide a reconciliation of the consolidated income statements and earnings per common share amounts, which are the most directly comparable GAAP to non-GAAP measures.
Three Months Ended March 31, 2015
(In thousands, except per share amounts)
|
| | | | | | | | | | | |
| | Capella Education Company (GAAP) | | Arden University (Non-GAAP) Adjustments | | Capella Education Company (excluding Arden University) |
| | Three Months Ended | | Three Months Ended | | Three Months Ended |
| | March 31, 2015 | | March 31, 2015 | | March 31, 2015 |
| Revenues | $ | 109,074 |
| | $ | (3,373 | ) | | $ | 105,701 |
|
| Costs and expenses: | | | | | |
| Instructional costs and services | 47,061 |
| | (1,819 | ) | | 45,242 |
|
| Marketing and promotional | 27,500 |
| | (1,159 | ) | | 26,341 |
|
| Admissions advisory | 7,204 |
| | (252 | ) | | 6,952 |
|
| General and administrative | 10,529 |
| | (973 | ) | | 9,556 |
|
| Total costs and expenses | 92,294 |
| | (4,203 | ) | | 88,091 |
|
| Operating income | 16,780 |
| | 830 |
| | 17,610 |
|
| Other expense, net | (146 | ) | | 133 |
| | (13 | ) |
| Income before income taxes | 16,634 |
| | 963 |
| | 17,597 |
|
| Income tax expense | 6,597 |
| | — |
| | 6,597 |
|
| Net income | $ | 10,037 |
| | $ | 963 |
| | $ | 11,000 |
|
| Net income per common share: | | | | | |
| Basic | $ | 0.82 |
| | $ | 0.08 |
| | $ | 0.90 |
|
| Diluted | $ | 0.80 |
| | $ | 0.08 |
| | $ | 0.88 |
|
| Weighted average number of common shares outstanding: | | | | | |
| Basic | 12,228 |
| | | | 12,228 |
|
| Diluted | 12,485 |
| | | | 12,485 |
|
CAPELLA EDUCATION COMPANY
Non-GAAP Pro-Forma Statement of Income and Earnings per Common Share
Three Months Ended June 30, 2015
(In thousands, except per share amounts)
|
| | | | | | | | | | | |
| | Capella Education Company (GAAP) | | Arden University (Non-GAAP) Adjustments | | Capella Education Company (excluding Arden University) |
| | Three Months Ended | | Three Months Ended | | Three Months Ended |
| | June 30, 2015 | | June 30, 2015 | | June 30, 2015 |
| Revenues | $ | 108,007 |
| | $ | (3,423 | ) | | $ | 104,584 |
|
| Costs and expenses: | | | | | |
| Instructional costs and services | 47,369 |
| | (1,842 | ) | | 45,527 |
|
| Marketing and promotional | 25,798 |
| | (1,085 | ) | | 24,713 |
|
| Admissions advisory | 7,353 |
| | (236 | ) | | 7,117 |
|
| General and administrative | 10,372 |
| | (1,204 | ) | | 9,168 |
|
| Total costs and expenses | 90,892 |
| | (4,367 | ) | | 86,525 |
|
| Operating income | 17,115 |
| | 944 |
| | 18,059 |
|
| Other income (expense), net | 54 |
| | (64 | ) | | (10 | ) |
| Income before income taxes | 17,169 |
| | 880 |
| | 18,049 |
|
| Income tax expense | 6,838 |
| | — |
| | 6,838 |
|
| Net income | $ | 10,331 |
| | $ | 880 |
| | $ | 11,211 |
|
| Net income per common share: | | | | | |
| Basic | $ | 0.85 |
| | $ | 0.07 |
| | $ | 0.92 |
|
| Diluted | $ | 0.83 |
| | $ | 0.07 |
| | $ | 0.90 |
|
| Weighted average number of common shares outstanding: | | | | | |
| Basic | 12,187 |
| | | | 12,187 |
|
| Diluted | 12,400 |
| | | | 12,400 |
|
CAPELLA EDUCATION COMPANY
Non-GAAP Pro-Forma Statement of Income and Earnings per Common Share
Three Months Ended September 30, 2015
(In thousands, except per share amounts)
|
| | | | | | | | | | | |
| | Capella Education Company (GAAP) | | Arden University (Non-GAAP) Adjustments | | Capella Education Company (excluding Arden University) |
| | Three Months Ended | | Three Months Ended | | Three Months Ended |
| | September 30, 2015 | | September 30, 2015 | | September 30, 2015 |
| Revenues | $ | 103,711 |
| | $ | (3,577 | ) | | $ | 100,134 |
|
| Costs and expenses: | | | | | |
| Instructional costs and services | 48,221 |
| | (1,682 | ) | | 46,539 |
|
| Marketing and promotional | 25,860 |
| | (1,256 | ) | | 24,604 |
|
| Admissions advisory | 7,390 |
| | (249 | ) | | 7,141 |
|
| General and administrative | 8,772 |
| | (1,053 | ) | | 7,719 |
|
| Total costs and expenses | 90,243 |
| | (4,240 | ) | | 86,003 |
|
| Operating income | 13,468 |
| | 663 |
| | 14,131 |
|
| Other income (expense), net | 24 |
| | (29 | ) | | (5 | ) |
| Income before income taxes | 13,492 |
| | 634 |
| | 14,126 |
|
| Income tax expense | 5,320 |
| | (5 | ) | | 5,315 |
|
| Net income | $ | 8,172 |
| | $ | 639 |
| | $ | 8,811 |
|
| Net income per common share: | | | | | |
| Basic | $ | 0.68 |
| | $ | 0.05 |
| | $ | 0.73 |
|
| Diluted | $ | 0.67 |
| | $ | 0.05 |
| | $ | 0.72 |
|
| Weighted average number of common shares outstanding: | | | | | |
| Basic | 12,027 |
| | | | 12,027 |
|
| Diluted | 12,237 |
| | | | 12,237 |
|
CAPELLA EDUCATION COMPANY
Non-GAAP Pro-Forma Statement of Income and Earnings per Common Share
Three Months Ended December 31, 2015
(In thousands, except per share amounts)
|
| | | | | | | | | | | |
| | Capella Education Company (GAAP) | | Arden University (Non-GAAP) Adjustments | | Capella Education Company (excluding Arden University) |
| | Three Months Ended | | Three Months Ended | | Three Months Ended |
| | December 31, 2015 | | December 31, 2015 | | December 31, 2015 |
| Revenues | $ | 109,475 |
| | $ | (3,345 | ) | | $ | 106,130 |
|
| Costs and expenses: | | | | | |
| Instructional costs and services | 47,201 |
| | (1,626 | ) | | 45,575 |
|
| Marketing and promotional | 25,255 |
| | (1,284 | ) | | 23,971 |
|
| Admissions advisory | 7,246 |
| | (250 | ) | | 6,996 |
|
| General and administrative | 10,103 |
| | (1,048 | ) | | 9,055 |
|
| Total costs and expenses | 89,805 |
| | (4,208 | ) | | 85,597 |
|
| Operating income | 19,670 |
| | 863 |
| | 20,533 |
|
| Other expense, net | (150 | ) | | 45 |
| | (105 | ) |
| Income before income taxes | 19,520 |
| | 908 |
| | 20,428 |
|
| Income tax expense | 7,872 |
| | (59 | ) | | 7,813 |
|
| Net income | $ | 11,648 |
| | $ | 967 |
| | $ | 12,615 |
|
| Net income per common share: | | | | | |
| Basic | $ | 0.98 |
| | $ | 0.08 |
| | $ | 1.06 |
|
| Diluted | $ | 0.96 |
| | $ | 0.08 |
| | $ | 1.04 |
|
| Weighted average number of common shares outstanding: | | | | | |
| Basic | 11,881 |
| | | | 11,881 |
|
| Diluted | 12,087 |
| | | | 12,087 |
|
CAPELLA EDUCATION COMPANY
Non-GAAP Pro-Forma Statement of Income and Earnings per Common Share
Year-Ended December 31, 2014
(In thousands, except per share amounts)
|
| | | | | | | | | | | |
| | Capella Education Company (GAAP) | | Arden University (Non-GAAP) Adjustments | | Capella Education Company (excluding Arden University) |
| | Year-Ended | | Year-Ended | | Year-Ended |
| | December 31, 2014 | | December 31, 2014 | | December 31, 2014 |
| Revenues | $ | 421,967 |
| | $ | (13,723 | ) | | $ | 408,244 |
|
| Costs and expenses: | | | | | |
| Instructional costs and services | 185,503 |
| | (7,165 | ) | | 178,338 |
|
| Marketing and promotional | 99,790 |
| | (4,290 | ) | | 95,500 |
|
| Admissions advisory | 28,042 |
| | (982 | ) | | 27,060 |
|
| General and administrative | 41,847 |
| | (4,786 | ) | | 37,061 |
|
| Lease amendment charges | 2,690 |
| | — |
| | 2,690 |
|
| Total costs and expenses | 357,872 |
| | (17,223 | ) | | 340,649 |
|
| Operating income | 64,095 |
| | 3,500 |
| | 67,595 |
|
| Other expense, net | (725 | ) | | 448 |
| | (277 | ) |
| Income before income taxes | 63,370 |
| | 3,948 |
| | 67,318 |
|
| Income tax expense | 25,427 |
| | 43 |
| | 25,470 |
|
| Net income | $ | 37,943 |
| | $ | 3,905 |
| | $ | 41,848 |
|
| Net income per common share: | | | | | |
| Basic | $ | 3.09 |
| | $ | 0.32 |
| | $ | 3.41 |
|
| Diluted | $ | 3.03 |
| | $ | 0.31 |
| | $ | 3.34 |
|
| Weighted average number of common shares outstanding: | | | | | |
| Basic | 12,286 |
| | | | 12,286 |
|
| Diluted | 12,535 |
| | | | 12,535 |
|
