Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Our common stock is traded on the NASDAQ Global Select Market under the symbol “STRA.” As of January 29, 2021, there were 24,408,808 shares of common stock outstanding, and approximately 104 holders of record.
In 2019 and 2020, our Board of Directors approved the following dividend payments per common shares:
2019 2020
First Quarter $0.50 $0.60
Second Quarter $0.50 $0.60
Third Quarter $0.50 $0.60
Fourth Quarter $0.60 $0.60
Whether to declare dividends and the amount of dividends to be paid in the future will be reviewed periodically by our Board of Directors in light of our earnings, cash flow, financial condition, capital needs, investment opportunities, and regulatory considerations. There is no requirement or assurance that common dividends will be paid in the future.
Peer Group Performance Graph
The following performance graph compares the cumulative stockholder return on our common stock since December 31, 2015 with The NASDAQ Stock Market (U.S.) Index and a self-determined peer group consisting of Adtalem Global Education, Inc. (ATGE), Chegg, Inc. (CHGG), Graham Holdings Company (GHC), Grand Canyon Education, Inc. (LOPE), Houghton Mifflin Harcourt Company (HMHC), Stride Inc. (LRN), Laureate Education, Inc. (LAUR), Pearson PLC (PSO), Perdoceo Education Corporation (PRDO), and Zovio, Inc. (ZVO). The peer group no longer includes American Public Education, Inc. K12, Inc. is still included in the peer group but under its new name Stride, Inc. At present, there is no comparative index for the education industry. This graph is not deemed to be “soliciting material” or to be filed with the SEC or subject to the SEC’s proxy rules or to the liabilities of Section 18 of the Securities Exchange Act, and the graph shall not be deemed to be incorporated by reference into any of our prior or subsequent filings under the Securities Act or the Securities Exchange Act.
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Comparison of 60 Month Cumulative Total Return*
Among Strategic Education, Inc.
The NASDAQ Stock Market (U.S.) Index and a Peer Group
Name 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20
Strategic Education, Inc. 100 134 149 189 264 159
NASDAQ Stock Market (U.S.) 100 108 138 133 179 257
Peer Group 100 141 170 205 221 290
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* The comparison assumes $100 was invested on December 31, 2015 in our common stock, the NASDAQ Stock Market (U.S.) Index, and the peer companies selected by us.
There were no sales by us of unregistered securities during the year ended December 31, 2020.
Stock Repurchase Program
In November 2003, our Board of Directors authorized us to repurchase shares of common stock in open market purchases from time to time at the discretion of our management, depending on market conditions and other corporate considerations. Our Board of Directors amended the program on various dates, increasing the repurchase amount authorized and extending the expiration date. At December 31, 2020, $250 million of the Company’s share repurchase authorization was remaining for repurchases through December 31, 2021. All of our share repurchases have been effected in compliance with Rule 10b-18 under the Exchange Act. Some repurchases have been made in accordance with a share repurchase plan adopted by us under Rule 10b5-1 under the Exchange Act. Our share repurchase program may be modified, suspended, or terminated at any time by us without notice.
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A summary of our open market share repurchases since the inception of the plan is as follows:
Total number of shares repurchased Average dollar price paid per share Cost of share repurchases
(millions)
2003 32,350 $ 99.57 $ 3.2
2004 346,444 106.13 36.8
2005 410,071 92.59 38.0
2006 349,066 100.39 35.0
2007 260,818 146.05 38.1
2008 603,382 180.86 109.1
2009 451,613 177.34 80.1
2010 687,340 168.06 115.5
2011 1,581,444 128.15 202.7
2012 484,841 51.56 25.0
2013 495,085 50.49 25.0
2014 — — —
2015 — — —
2016 — — —
2017 — — —
2018 — — —
2019 — — —
2020 1,769 139.78 0.2
Total 5,704,223 $ 124.25 $ 708.7
During the three months ended March 31, 2020, we invested $0.2 million to repurchase shares of common stock under
our repurchase program. We did not make any open market share repurchases in 2014 through 2019 or in the remainder of 2020. In 2020, we withheld 39,323 shares of restricted stock, at an average price per share of $161.88 and in 2019, we withheld 37,596 shares of restricted stock, at an average price per share of $154.06, to satisfy tax obligations related to restricted stock awards.
Item 6. Selected Financial Data
The following table sets forth, for the periods and at the dates indicated, selected consolidated financial and operating data. The financial information has been derived from our consolidated financial statements. Our results of operations include the results of ANZ and CEC from November 3, 2020 and August 1, 2018, respectively, and prior periods do not include the financial results of ANZ and CEC prior to November 3, 2020 and August 1, 2018, respectively. The information set forth below is qualified by reference to and should be read in conjunction with our consolidated financial statements and notes thereto and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other information included elsewhere or incorporated by reference in this Annual Report on Form 10-K.
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Year Ended December 31,
2016 2017 2018 2019 2020
(Dollar and share amounts in thousands, except per share data)
Income Statement Data:
Revenues $ 441,088 $ 454,851 $ 634,185 $ 997,137 $ 1,027,653
Costs and expenses:
Instructional and support costs 259,931 268,943 371,542 530,604 532,661
General and administration 126,898 129,332 194,035 272,411 295,231
Amortization of intangible assets — — 25,694 61,667 64,225
Merger and integration costs — 11,879 45,745 21,923 13,770
Restructuring costs — — — — 12,382
Fair value adjustments and impairment of intangible assets (3,213) (7,512) 19,909 — —
Total costs and expenses 383,616 402,642 656,925 886,605 918,269
Income (loss) from operations 57,472 52,209 (22,740) 110,532 109,384
Other income (expense) (180) 437 3,601 13,192 4,573
Income (loss) before income taxes 57,292 52,646 (19,139) 123,724 113,957
Provision (benefit) for income taxes 22,490 32,034 (3,468) 42,586 27,689
Net income (loss) $ 34,802 $ 20,612 $ (15,671) $ 81,138 $ 86,268
Net income (loss) per share:
Basic $ 3.28 $ 1.93 $ (1.03) $ 3.73 $ 3.81
Diluted $ 3.21 $ 1.84 $ (1.03) $ 3.67 $ 3.77
Weighted average shares outstanding:
Basic 10,610 10,678 15,190 21,725 22,633
Diluted (a)
10,845 11,199 15,190 22,097 22,860
Other Data:
Depreciation and amortization $ 17,817 $ 18,733 $ 54,543 $ 104,861 $ 109,154
Stock-based compensation expense $ 10,767 $ 11,627 $ 15,532 $ 12,160 $ 14,610
Capital expenditures $ 13,161 $ 18,051 $ 27,547 $ 38,689 $ 46,812
Cash dividends per common share (paid) $ — $ 1.00 $ 1.50 $ 2.10 $ 2.40
Average enrollment (b)
40,260 42,748 62,196 90,597 95,889
Strayer University Campuses (c)
74 71 72 77 64
Full-time employees (d)
1,542 1,389 3,017 3,076 3,679
At December 31,
2016 2017 2018 2019 2020
(In thousands)
Balance Sheet Data:
Cash, cash equivalents, and marketable securities $ 129,245 $ 155,933 $ 386,531 $ 491,200 $ 225,336
Working capital (e)
100,704 121,282 295,230 367,346 86,070
Total assets 298,696 321,278 1,661,029 1,789,408 2,295,807
Long-term debt — — — — 141,823
Other long-term liabilities 50,483 43,015 110,674 169,950 205,613
Total liabilities 110,322 112,081 235,805 326,698 547,488
Total stockholders’ equity 188,374 209,197 1,425,224 1,462,710 1,748,319
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(a) Diluted weighted average shares outstanding include common shares issued and outstanding, and the dilutive impact of restricted stock, restricted stock units, and outstanding stock options using the Treasury Stock Method.
(b) Reflects average student enrollment for Strayer University for the four academic terms for each year indicated, for Capella University since August 1, 2018, and for ANZ since November 3, 2020.
(c) Reflects number of Strayer University campuses offering classes as of December 31 of each year indicated.
(d) Reflects full-time employees, including full-time faculty, as of December 31 of each year indicated.
(e) Working capital is calculated by subtracting current liabilities from current assets.
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