- --------------------------------------------------------------------------------
EXHIBIT 99.01
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FOR IMMEDIATE RELEASE
FOR MORE INFORMATION CONTACT:
Mark C. Brown, Senior Vice President and
Chief Financial Officer
(703) 247-2514
Sonya Udler, Vice President,
Corporate Communications
(703) 247-2517
sonya.udler@strayer.edu
STRAYER EDUCATION, INC. REPORTS RECORD
FOURTH QUARTER 2003 AND FULL YEAR ENROLLMENT,
REVENUES AND EARNINGS
-- STRAYER FOURTH QUARTER REVENUES UP 25% (BEFORE GAIN ON LOAN SALE) --
-- STRAYER FOURTH QUARTER DILUTED EPS OF $0.72 (BEFORE GAIN ON LOAN SALE) -
-- STRAYER FULL YEAR DILUTED EPS OF $2.17 (BEFORE GAIN ON LOAN
AND BUILDING SALES) -- -- STRAYER WINTER 2004 TOTAL
ENROLLMENTS UP 21%/NEW STUDENTS UP 25%/ONLINE UP 74% --
--GREENVILLE, SC AND SECOND MEMPHIS CAMPUSES ON TRACK FOR SPRING TERM OPENING--
ARLINGTON, Va., February 12, 2004 - Strayer Education, Inc. (Nasdaq: STRA) today
announced financial results for the three and twelve months ended December 31,
2003. Financial highlights are as follows:
THREE MONTHS ENDED DECEMBER 31
The Company's financial results for the three months ended December 31, 2003 are
set forth in the financial statements below and presented in accordance with
GAAP. As required by GAAP, these results include the positive impact of the
previously announced sale of the Company's $10 million student loan portfolio
which increased revenue and operating income by $0.6 million, net income by $0.4
million and earnings per diluted share by $0.02. Since the Company believes that
the gain on the sale of the student loan portfolio is not necessarily recurring
nor indicative of the Company's underlying performance, the following financial
highlights exclude this transaction (i.e., are non-GAAP measures). Secondary
offering costs of $0.5 million incurred in the fourth quarter of 2002 are also
excluded for the same reason.
o Revenues for the three months ended December 31, 2003 increased 25%
(excluding the gain on the sale of the student loan portfolio) to $42.8
million, compared to $34.2 million for the same period in 2002, due to
increased enrollment and a 5% tuition increase which commenced in January
2003.
5
o Operating income (EBIT) rose 23% (excluding the gain on the sale of the
student loan portfolio) to $16.8 million from $13.7 million for the same
period in 2002. Excluding the gain on the sale of the student loan
portfolio, operating income margin was 39.4%, compared to 40.2% for the
same period in 2002. The decrease in operating income margin was primarily
due to the increased expense associated with opening two new campuses in
the fourth quarter 2003 compared to no new campuses for the same period in
2002.
o Net income rose 24% (excluding the gain on the sale of the student loan
portfolio in 2003 and secondary offering expenses incurred in the fourth
quarter of 2002) to $10.8 million compared to $8.7 million for the same
period in 2002. Earnings per diluted share rose 20% (excluding the gain on
the sale of the student loan portfolio in 2003 and secondary offering
expenses incurred in the fourth quarter of 2002) to $0.72 compared to $0.60
for the same period in 2002. Diluted weighted average shares outstanding
increased to 15,036,000 from 14,609,000 for the same period in 2002.
YEAR ENDED DECEMBER 31
The Company's financial results for the year ended December 31, 2003 are set
forth in the financial statements below and presented in accordance with GAAP.
As required by GAAP, these results include the positive impact of the previously
announced sale of the Company's student loan portfolio in the fourth quarter as
well as the gain on the sale of the Washington, D.C. campus building in the
third quarter of 2003. These transactions increased revenue by $0.6 million,
operating income by $2.4 million, net income by $1.4 million and earnings per
diluted share by $0.10. Since the Company believes that the impact of these
transactions is not necessarily recurring nor indicative of the Company's
underlying performance, the following financial highlights exclude them (i.e.,
are non-GAAP measures). Secondary offering costs of $0.5 million incurred in the
fourth quarter of 2002 are also excluded for the same reason.
o Revenues for the year ended December 31, 2003 increased 25% (excluding the
gain on the sale of the student loan portfolio) to $146.4 million, compared
to $116.7 million for the same period in 2002, due to increased enrollment
and a 5% tuition increase effective for 2003.
o Operating income (EBIT) rose 23% (excluding the gain on the sale of the
student loan portfolio and the gain on the sale of the Washington, D.C.
campus building) to $50.5 million from $41.2 million for the same period in
2002. Excluding these gains, operating income margin was 34.5% compared to
35.3% for the same period in 2002. The decrease in operating income margin
is primarily attributable to the earlier timing of two new campus openings
in 2003 as compared to 2002, as well as the increase of the total new
campus openings to five in 2003 compared to three in 2002.
o Net income rose 23% (excluding the gain on the sale of the student loan
portfolio, the gain on the sale of the Washington, D.C. campus building,
and secondary offering expenses incurred in the fourth quarter of 2002) to
$32.3 million compared to $26.2 million for the same period in 2002.
Earnings per diluted share rose 20% (excluding the gain on the sale of the
student loan portfolio, the gain on the sale of the Washington, D.C. campus
building, and secondary offering expenses incurred in the fourth quarter of
2002) to $2.17 compared to $1.81 for the same period in 2002. Diluted
weighted average shares outstanding increased to 14,857,000 from 14,516,000
for the same period in 2002.
(A table reconciling our financial statements under GAAP to the non-GAAP
measures highlighted above is provided at the end of this release.)
6
"We are pleased with Strayer's financial performance for the fourth quarter as
well as our enrollment results for the winter term," said Robert Silberman,
Chairman and Chief Executive Officer of Strayer Education, Inc. "Our yearly
results reflect the positive contribution of the five new campuses, including
two new markets, and the continued growth of Strayer University Online. We look
forward to the successful opening of our first South Carolina campus and the
second Memphis campus in time for the spring term. In 2004 we will continue to
execute on our expansion strategy including five new campuses."
BALANCE SHEET AND CASH FLOW
At December 31, 2003, the Company had cash, cash equivalents and marketable
securities (a diversified, no load, short-term tax-exempt bond fund) of $108.0
million and no debt. The Company generated $49.3 million from operating
activities in 2003, of which $10.5 million is attributable to the sale of the
Company's student loan portfolio. Capital expenditures were $6.8 million for the
same period.
In the fourth quarter, as part of a previously announced common stock repurchase
authorization, the Company repurchased 32,350 shares of common stock at an
average price per share of $99.54. The amount available for repurchases after
December 31, 2003 under this program is $11.8 million.
In the fourth quarter 2003, bad debt expense as a percentage of revenue was 2.0%
compared to 1.9% for the same period in 2002. Days sales outstanding, adjusted
to exclude tuition receivable related to future quarters, was eight days at the
end of the fourth quarter 2003, compared to seven days for the same period in
2002.
STUDENT ENROLLMENT
Total enrollment at Strayer University for the 2004 winter term increased 21% to
20,110 students compared to 16,558 for the same term in 2003. Across the Strayer
University campus network, new student enrollments increased 25% and continuing
student enrollments increased 21%. Students taking 100% of their classes at
Strayer University Online increased 56% to 9,068 students from 5,810. The total
number of students taking any courses online (including students at brick and
mortar campuses taking at least one online course) in the 2004 winter term was
11,173.
7
STUDENT ENROLLMENT
Winter Winter %
2003 2004 Change
------------ ------------ ----------
New Campuses (11 in operation 3 or less years)
Campus Based Students 1,026 2,049 100%
Online Based Students 802 2,113 164%
------------ ------------
Total New Campus Students 1,828 4,162 128%
------------ ------------
Mature Campuses (14 in operation 4 or more years)
Campus Based Students 9,722 8,993 -7%
Online Based Students 3,917 5,061 29%
------------ ------------
Total Mature Campus Students 13,639 14,054 3%
------------ ------------
Out of Area Online Students 1,091 1,894 74%
------------ ------------
Total University Enrollment 16,558 20,110 21%
============ ============
Total Students Taking 100% Courses Online 5,810 9,068 56%
Total Students Taking At Least 1 Course Online 7,356 11,173 52%
NEW CAMPUS/NEW STATE OPENINGS
The Company also reported today that it will open two new campuses for the 2004
spring term. One campus will be in Greenville, South Carolina, the Company's
first campus in this state. The other new campus will be located in Memphis,
Tennessee, the Company's second in this city and third in the state.
SALE OF SHARES BY SERIES A CONVERTIBLE PREFERRED SHAREHOLDERS
The Company previously announced that it has filed a registration statement with
the Securities and Exchange Commission for a proposed secondary offering of 3.0
million shares of common stock. The Company will not receive any of the proceeds
of the offering. In addition to the 3.0 million shares being offered, the
underwriters have an option to purchase 450,000 shares to cover over-allotments,
if any. The common shares proposed to be offered for sale will result from the
conversion of convertible preferred stock and the partial exercise of an option
currently held by New Mountain Partners, L.P., New Mountain Strayer Trust and
MidOcean Capital Investors, L.P. In May 2001, New Mountain and MidOcean
(formerly DB Capital Partners, Inc.) invested $150 million in Strayer to
purchase the Company's Series A Mandatorily Redeemable Convertible Preferred
Stock. After giving effect to the offering excluding the over-allotment option
of 450,000 shares provided to the underwriters, the selling shareholders will
own approximately 13% of Strayer's equity securities.
EXPANDED ONLINE COURSE OFFERINGS
Strayer University Online is offering 631 online classes in the 2004 winter
term, with all academic programs available synchronously and asynchronously.
8
BUSINESS OUTLOOK
Based on strong enrollment growth announced for the 2004 winter term, the
Company estimates first quarter 2004 diluted EPS will be in the range of $0.73
to $0.75.
STOCK OPTION ACTIVITY AND CALCULATION OF TOTAL POTENTIAL SHARE ISSUANCE
The Company uses the intrinsic-value-based method of accounting for its stock
option plan. Under this method, compensation expense is the excess, if any, of
the quoted market price of the stock at grant date over the amount an employee
must pay to acquire the stock. Had compensation expense been determined based on
the fair value of the options at grant dates computed by the Black-Scholes
methodology, the Company estimates net income and diluted net income per share
would have been $9.7 million and $0.65 per share, respectively, for the three
months ended December 31, 2003, and $29.3 million and $1.97 per share,
respectively, for the full year ended December 31, 2003.
The following assumptions were used to estimate fair value as of the date of
grant using The Black-Scholes option pricing model:
2002 2003
---- ----
Dividend yield .................................................... 0.5% 0.5%
Risk-free interest rates .......................................... 4.8% 3.0%
Volatility ........................................................ 43% 40%
Expected option term (years) ...................................... 5.9 5.2
Weighted average fair value of options granted during the year..... $23.65 $21.88
Shares used to compute diluted earnings per share include common shares issued
and outstanding, the assumed conversion of Series A Convertible Redeemable
Preferred Stock outstanding, and the assumed exercise of issued stock options
using the Treasury Stock Method. Our total current and potential common shares
outstanding are as follows:
Shares
----------------
(in thousands)
Current
-------
Weighted average common shares outstanding for the three months ended 12/31/03 ....... 10,727
Convertible Series A Preferred Stock, convertible on a
1:1 basis (outstanding or recorded) at 12/31/03 .................................. 3,900
Issued stock options using Treasury Stock Method ..................................... 409
------
Total current .................................................................. 15,036
------
Potential
---------
Accrual of PIK dividends on Convertible Series A Preferred Stock through May 2006..... 422 (a)
Total issued stock options, less options accounted for using
the Treasury Stock Method above .................................................. 723
Authorized but unissued options ...................................................... 334
------
Total potential ................................................................ 1,479
------
Total current and potential common shares ...................................... 16,515
======
(a) This number may be smaller as it does not reflect the impact of
the previously announced sale of shares by Series A Preferred
Shareholders. Also, it does not reflect that the Company has the
right to cause conversion of any remaining Series A preferred
shares into common shares after May 15, 2004 if the Company's
common stock price trades above $52.00 per share for twenty
consecutive trading days. Of the 422,000 shares, 93,600 would
potentially accrue through May 15, 2004.
9
CONFERENCE CALL WITH MANAGEMENT
Strayer Education, Inc. will host a conference call to discuss its fourth
quarter 2003 earnings on February 12 at 10:00 a.m. ET. To participate on the
live call, investors should dial (800) 289-0468 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.
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, and public administration to more
than 20,000 working adult students at 25 campuses in Maryland, North Carolina,
Pennsylvania, Tennessee, Virginia and Washington, D.C. and worldwide via the
Internet through Strayer University Online. 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 state and regional
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, 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.
10
STRAYER EDUCATION, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
For the three months For the year
ended December 31, ended December 31,
--------------------- --------------------
2002 2003 2002 2003
------- ------- -------- --------
Revenues .................................... $34,163 $43,373 $116,710 $147,025
------- ------- -------- --------
Costs and expenses:
Instructional and educational support ....... 11,834 14,790 41,601 53,116
Selling and promotion ....................... 4,236 5,829 16,773 22,768
General and administration .................. 4,349 5,327 17,107 20,013
------- ------- -------- --------
Total expenses .............................. 20,419 25,946 75,481 95,897
------- ------- -------- --------
Gain on sale of asset ....................... -- -- -- 1,772
------- ------- -------- --------
Income from operations ...................... 13,744 17,427 41,229 52,900
Investment and other income ................. 533 570 1,775 2,420
Secondary offering expenses ................. 490 -- 490 --
------- ------- -------- --------
Income before income taxes .................. 13,787 17,997 42,514 55,320
Provision for income taxes .................. 5,527 6,891 16,730 21,646
------- ------- -------- --------
Net income .................................. 8,260 11,106 25,784 33,674
Preferred stock dividends and accretion ..... 1,268 1,294 7,344 5,136
------- ------- -------- --------
Net income available to common
stockholders ................................ $ 6,992 $ 9,812 $ 18,440 $ 28,538
======= ======= ======== ========
Basic net income per share .................. $ 0.74 $ 0.91 $ 2.14 $ 2.67
======= ======= ======== ========
Diluted net income per share ................ $ 0.57 $ 0.74 $ 1.78 $ 2.27
======= ======= ======== ========
Common dividend per share ................... $ 0.065 $ 0.065 $ 0.26 $ 0.26
Weighted average shares outstanding:
Basic ....................................... 9,402 10,727 8,617 10,694
Diluted ..................................... 14,609 15,036 14,516 14,857
11
STRAYER EDUCATION, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
December 31, December 31,
2002 2003
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents ........................................................ $ 49,135 $ 82,089
Marketable securities available for sale, at fair value .......................... 18,121 25,951
Tuition receivable, net of allowances for doubtful accounts ...................... 25,759 35,997
Student loans receivable - held for sale ......................................... -- 65
Other current assets ............................................................. 773 1,656
--------- ---------
Total current assets ......................................................... 93,788 145,758
Student loans receivable, net of allowances for losses .............................. 9,453 --
Property and equipment, net ......................................................... 36,571 35,930
Restricted cash ..................................................................... -- 500
Other assets ........................................................................ 312 368
--------- ---------
Total assets ................................................................. $ 140,124 $ 182,556
========= =========
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................................................. $ 3,534 $ 5,127
Accrued expenses ................................................................. 1,181 2,329
Income taxes payable ............................................................. 1,812 2,898
Dividends payable ................................................................ 1,507 1,510
Unearned tuition ................................................................. 29,853 39,134
--------- ---------
Total current liabilities ................................................... 37,887 50,998
Deferred income taxes ............................................................... 70 228
Long-term liabilities ............................................................... 1,985 2,666
--------- ---------
Total liabilities ........................................................... 39,942 53,892
--------- ---------
Commitments and contingencies
Mandatorily redeemable convertible Series A preferred stock,
par value $.01; 6,000,000 shares authorized; 3,758,456 and
3,899,944 shares issued and outstanding at December 31, 2002
and December 31, 2003, respectively ........................................... 93,807 95,686
Stockholders' equity:
Common stock, par value $.01; 20,000,000 shares
authorized; 10,652,412 and 10,703,395 shares issued and outstanding
at December 31, 2002 and December 31, 2003 .................................... 107 107
Additional paid-in capital ....................................................... 58,868 59,838
Retained earnings (accumulated deficit) .......................................... (52,674) (26,918)
Accumulated other comprehensive income ........................................... 74 (49)
--------- ---------
Total stockholders' equity ................................................. 6,375 32,978
--------- ---------
Total liabilities and stockholders' equity ................................. $ 140,124 $ 182,556
========= =========
12
STRAYER EDUCATION, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(AMOUNTS IN THOUSANDS)
For the year ended December 31,
------------------------------
2002 2003
-------- --------
Cash flow from operating activities:
Net income .................................................. $ 25,784 $ 33,674
Adjustments to reconcile net income to net cash
provided by operating activities:
Gain on sale of marketable securities .................. -- (135)
Gain on sale of property and equipment ................. -- (1,772)
Amortization of deferred rent .......................... (91) 337
Depreciation and amortization .......................... 3,642 4,367
Provision for student loan losses ...................... 243 141
Deferred income taxes .................................. 333 (19)
Changes in assets and liabilities:
Tuition receivable, net ................................ (6,747) (10,238)
Other current assets ................................... (67) (706)
Restricted cash ........................................ -- (500)
Other assets ........................................... (50) 7
Accounts payable ....................................... 1,652 1,593
Accrued expenses ....................................... 619 1,148
Income taxes payable ................................... 1,018 2,517
Unearned tuition ....................................... 6,649 9,281
Student loans originated .................................... (8,475) (7,150)
Collections on student loans receivable ..................... 7,171 16,730
-------- --------
Net cash provided by operating activities .......... 31,681 49,275
-------- --------
Cash flows from investing activities:
Proceeds from sale of property and equipment ............... -- 4,823
Proceeds from sale of marketable securities ................ -- 26,135
Purchases of property and equipment ........................ (17,113) (6,840)
Purchases of marketable securities ......................... (18,000) (34,000)
-------- --------
Net cash used in investing activities .............. (35,113) (9,882)
-------- --------
Cash flows from financing activities:
Common dividends paid ...................................... (2,172) (2,776)
Preferred dividends paid ................................... (5,250) (3,260)
Deferred lease incentives .................................. 1,313 11
Proceeds from exercise of stock options .................... -- 2,807
Repurchase of common stock.................................. -- (3,221)
Issuance cost of preferred stock ........................... (29) --
-------- --------
Net cash used in financing activities .............. (6,138) (6,439)
-------- --------
Net increase (decrease) in cash and cash equivalents (9,570) 32,954
Cash and cash equivalents - beginning of period ............... 58,705 49,135
-------- --------
Cash and cash equivalents - end of period ..................... $ 49,135 $ 82,089
======== ========
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STRAYER EDUCATION, INC.
CONSOLIDATED STATEMENTS OF INCOME
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
For the three months For the three months
ended December 31, 2002 ended December 31, 2003
------------------------------------------- -------------------------------------------
(in thousands) (in thousands)
% Change 2002
Under Non-GAAP Under Non-GAAP to 2003
GAAP Adjustment Measure GAAP Adjustment Measure (Non-GAAP)
----------- -------------- ------------ ------------ ------------- --------------- -------------
(unaudited) (unaudited) (unaudited)
Total revenues .............. $34,163 $-- $34,163 $43,373 $(580)(b) $42,793 25%
------- ----- ------- ------- ----- -------
Expenses
Instructional & educational . 11,834 -- 11,834 14,790 -- 14,790 25%
Selling & promotion ......... 4,236 -- 4,236 5,829 -- 5,829 38%
General & administrative .... 4,349 -- 4,349 5,327 -- 5,327 22%
------- ----- ------- ------- ----- -------
Total expenses .............. 20,419 -- 20,419 25,946 -- 25,946 27%
------- ----- ------- ------- ----- -------
Gain on sale of assets ...... -- -- -- -- -- --
------- ----- ------- ------- ----- -------
Income from operations ...... 13,744 -- 13,744 17,427 (580) 16,847 23%
Operating income margin ..... 40.2% 40.2% 40.2% 39.4%
Investment and other income . 533 -- 533 570 -- 570 7%
Secondary offering expenses . 490 (490)(a) -- -- -- --
------- ----- ------- ------- ----- -------
Income before tax ........... 13,787 490 14,277 17,997 (580) 17,417 22%
Taxes ....................... 5,527 40 5,567 6,891 (229) 6,662 20%
------- ----- ------- ------- ----- -------
Net income .................. $ 8,260 $ 450 $ 8,710 $11,106 $(351) $10,755 24%
======= ===== ======= ======= ===== =======
Diluted EPS ................. $ 0.57 $0.03 $ 0.60 $ 0.74 $(0.02) $ 0.72 20%
======= ===== ======= ======= ===== =======
For the year For the year
ended December 31, 2002 ended December 31, 2003
------------------------------------------ -------------------------------------------
(in thousands) (in thousands)
% Change 2002
Under Non-GAAP Under Non-GAAP to 2003
GAAP Adjustment Measure GAAP Adjustment Measure (Non-GAAP)
------------ -------------- ------------ ------------ ------------- ------------- -------------
(unaudited) (unaudited) (unaudited)
Total revenues ............... $116,710 $ -- $116,710 $147,025 $ (580)(b) $146,445 25%
-------- ----- -------- -------- ------- --------
Expenses
Instructional & educational . 41,601 -- 41,601 53,116 -- 53,116 28%
Selling & promotion .......... 16,773 -- 16,773 22,768 -- 22,768 36%
General & administrative ..... 17,107 -- 17,107 20,013 -- 20,013 17%
-------- ----- -------- -------- ------- --------
Total expenses ............... 75,481 -- 75,481 95,897 -- 95,897 27%
-------- ----- -------- -------- ------- --------
Gain on sale of assets ....... -- -- -- 1,772 (1,772) (c) --
-------- ----- -------- -------- ------- --------
Income from operations ....... 41,229 -- 41,229 52,900 (2,352) 50,548 23%
Operating income margin ...... 35.3% 35.3% 36.0% 34.5%
Investment and other income .. 1,775 -- 1,775 2,420 -- 2,420 36%
Secondary offering expenses .. 490 (490)(a) -- -- -- --
-------- ----- -------- -------- ------- --------
Income before tax ............ 42,514 490 43,004 55,320 (2,352) 52,968 23%
Taxes ........................ 16,730 40 16,770 21,646 (931) 20,715 24%
-------- ----- -------- -------- ------- --------
Net income ................... $ 25,784 $ 450 $ 26,234 $ 33,674 $(1,421) $ 32,253 23%
======== ===== ======== ======== ======= ========
Diluted EPS .................. $ 1.78 $0.03 $ 1.81 $ 2.27 $ (0.10) $ 2.17 20%
======== ===== ======== ======== ======= ========
(a) Secondary offering expenses in the fourth quarter of 2002
(b) Gain on sale of student loan portfolio in the fourth quarter of 2003
(c) Gain on sale of Washington, D.C. campus building in the third quarter
of 2003
14