Lower Enrollment Hurts Capella
Posted: February 15, 2012 at 4:28 pm
Capella Education Company (NasdaqGS:CPLA - News), the provider of online education, recently delivered fourth-quarter 2011 earnings of 91 cents a share that dropped 16.5% from $1.09 earned in the prior-year quarter due to fall in students’ enrollment. On a reported basis, including one time items, earnings came in at 85 cents, down 22% from the year-ago quarter. The Zacks Consensus Estimate for the quarter was 91 cents.
Behind the Headline
Total active enrollment dropped 4.5% to 37,704 during the quarter. Management had earlier guided enrollment to fall by 4% to 6% in the quarter. New enrollment tumbled 9.4%, reflecting tough market conditions, changes with respect to program accreditation, and stringent admissions criteria.
The quarterly revenue of $110 million came in line with the Zacks Consensus Estimate but fell 4.1% from $114.7 million in the year-ago quarter. The decline in the top line dovetails with management’s guidance range of 3% to 4.5% fall. Capella now expects revenue to drop by 1% to 2% in the first quarter of 2012.
Operating income, adjusted for charges related to workforce reduction, plummeted 28.7% to $20.2 million, whereas operating margin contracted 640 basis points to 18.3%.
Capella now expects operating margin in the range of 15% to 16% in the first quarter of 2012, down from 20.2% in the first quarter of 2011, reflecting planned investments in learner success initiatives, rise in depreciation charges and expenses related to Resource Development International, acquired in July 2011.Management’s target is to attain operating margins between 15% and 17% for 2012.
Enrollment Falls, Forecasts Softer Declines
We observe that Capella is witnessing a fall in enrollment. After falling 7.5% in third quarter of 2011, total active enrollment dropped 4.5% in the fourth quarter. However, Capella now projects total enrollment to decline between 5% and 6% in the first quarter of 2012. Management expects that the rate of decline in total enrollment will decelerate as the year progresses due to improvement in new enrollment.
The potential risk looming over the education sector is the regulation proposed by the Department of Education that is weighing upon students’ enrollments and the company’s profits. The Department of Education proposed that an educational program could only qualify for Title IV funds, if it helps in achieving gainful employment, which includes the criteria of loan repayment rate and debt-to-income ratios.
The institutions are under the scanner due to the rise in the default rate of student loans, and are now being asked to submit information relating to recruitment procedures and use of student’s grant.
Capella hinted that new enrollment in the first quarter of 2012 is expected to decline marginally, following a drop of 9.4% in the fourth quarter and a fall of 36% in the first quarter of 2011, as it expects re-registration of existing apprentices to remain robust.
Capella generally focuses on working adults, and in order to draw students it is also ramping its marketing and promotional expenditures. To counter sluggishness in students’ enrollment, education companies are also resorting to restructuring their cost base. The company lowered its headcount by about 63 non-faculty workforces, and for this it incurred a charge of about $1.3 million in the quarter. Management hinted that the eliminations will result in cost savings of approximately $5.2 million per year.
Other Financial Details
Capella boasts a healthy balance sheet with no debt. It ended the quarter with cash and cash equivalents of $62 million and shareholders’ equity of $162.6 million. Cash flow from operations for fiscal 2011 period was $80.3 million.
During the quarter under review, the company repurchased 775,000 shares, aggregating $25.2 million. In fiscal 2011, it bought back 2.5 million shares for a total amount of $103.4 million. Capella indicated that it has $59.6 million at its disposal under its share repurchase authorization.
Currently, we have a long-term ‘Neutral’ rating on the stock. However, Capella, which competes with Apollo Group Inc. (NasdaqGS:APOL - News) and Strayer Education Inc. (NasdaqGS:STRA - News), holds a Zacks #2 Rank that translates into a short-term ‘Buy’ recommendation, and it well defines the company’s initiatives to improve students’ enrollment; its diversification strategy as evident from the acquisitions of Sophia, a social teaching and learning platform and Resource Development International, an online provider of UK University qualifications by distance learning; and introduction of new products offerings and new program accreditations.
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Military Spouses Discover How MIlitary-Friendly an Online School Can Be
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As more and more military spouses discover the many advantages of an online education, choosing an online military-friendly school that fits the student’s personal and educational needs is key. Online schools like Ashworth College can provide them with accredited programs that can be funded by their education benefit programs, like MyCAA.
Peachtree Corners, Georgia (PRWEB) February 15, 2012
It’s a fact -- over 6.1 million students enrolled in at least one online course during the fall 2010 term, an increase of 560,000 students over the previous year (Sloan Consortium).So it’s no surprise that military spouses seek out like Ashworth College (http://www.ashworthcollege.edu/) to provide them with accredited online schools programs that can be funded by education benefit programs like MyCAA.
As more and more military spouses discover the many advantages of an online education, choosing an online military-friendly school that fits the student’s personal and educational needs is key.
"We always recommend spouses look for a school that offers exactly what they need by matching their goals and how they fit into their lifestyle,” said Rodney Butler, U.S. Army First Sergeant, Retired and Ashworth College Military Education Coordinator. "There are many fine schools out there and taking the time to find one that meets most of a spouse’s needs will pay off in the long run.”
If a spouse does their homework before enrolling, they will find that online schools can offer flexibility, convenience and tuition prices that fit well within military education benefit guidelines. An online school can allow you to:
"At Ashworth, it’s our mission to ensure that our programs meet the needs of all those with military affiliations, particularly military spouses,” Butler added. “Our accredited degree programs are under $100 dollars per credit hour, compared to similar schools that push theirs as high as $250 per credit hour. With zero out of pocket costs, it’s common for a military spouse to earn an Ashworth career diploma, certificate or degree using only MyCAA benefits.”
So, which online school is right for you?
The military advisors at Ashworth College recommend that prospective student do some homework by researching schools and asking the following questions in these important areas:
Affordability
How does tuition and fees compare with other schools? Are there extra student fees such as enrollment, application, registration, processing, withdrawal/transfer, or lab fees? Is there a textbook allowance? If not, find out the added cost. Can the school help you secure military education benefits? Can they help you claim up to $4,000 in MyCAA benefits or help you take advantage of Post 9/11 dependent’s benefits? How generous is their credit transfer policy? Do they offer credit for work/life experience? Transferring credits means that you could be closer to your degree than you think, saving you plenty of time and money! Do they offer special financing and/or low, interest-free monthly payment plans? How much student debt will you have at graduation?
Programs
Are their programs nationally accredited? Would they be classified as a “diploma mills”? To meet your career goals, do they offer the programs you’re looking for? How many credits are required for a degree? Can you transfer in credits earned at other schools?
Convenience and Support
Do they offer flexible scheduling? Is there frequent class starts and 24/7 online access? Are they Military-friendly? Do they have Military Advisors who understand all your available military education benefits? Do they have the ability to guide you one-on-one, all the way from enrollment to graduation? What type of tutoring and instructor assistance do they offer? Do they have their own social network? How do students connect with student services, other students, instructors, tutors and alumni?
An Advocate for Military Education
For nearly 25 years, Ashworth has made it possible for military personnel, veterans and military spouses to further their careers by earning accredited, affordable career diplomas and college degrees. As an online school, Ashworth programs can be completed anywhere in the world.
A Servicemember Opportunity Colleges Consortium (SOC) member school, Ashworth accepts ACE credits and is approved for a range of other military benefits including Post 9/11 GI Bill, Montgomery GI Bill, GoArmyEd, and MyCAA.
A Yellow Ribbon School, Ashworth has been further recognized as a military friendly school by both G.I. Jobs and Military Advanced Education magazines. The online school also supports a campus chapter of the Student Veteran’s Association and was a sponsor of Military Spouse magazine’s 2010 and 2011 Military Spouse of the Year Award programs.
About Ashworth College
As leading online school, Ashworth College has built a tradition of excellence spanning 25 years, offering students worldwide more than 115 online college degrees, online certificate programs and online high school diploma options that are affordable and fit the busy schedules of working adults. Ashworth offers military education as well as specialized programs for corporate partners and homeschoolers.
Headquartered in Peachtree Corners, GA, Ashworth is accredited by the Distance Education and Training Council (DETC). The Accrediting Commission of the DETC is listed by the U.S. Department of Education as a nationally recognized accrediting agency. James Madison High School is further accredited by the Southern Association of Colleges and Schools Council on Accreditation and School Improvement (SACS CASI). For more information, visit http://www.ashworthcollege.edu/.
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Richard Orr
Ashworth College
770-729-8400
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The Center for Professional Innovation & Education, Inc. (CfPIE) And ClearPoint Launch Online Compliance Training …
Posted: at 4:28 pm
The Center for Professional Innovation & Education, Inc. (CfPIE), the global leader in pharmaceutical, medical device and biotech training for life science professionals, in partnership with ClearPoint - the global authority on interactive health education for the life sciences industry - have developed an unrivaled suite of online compliance training courses that combine top-quality content and user convenience.
MALVERN, PA (PRWEB) February 15, 2012
The Center for Professional Innovation & Education, Inc. (CfPIE), the global leader in pharmaceutical, medical device and biotech training for life science professionals, in partnership with ClearPoint - the global authority on interactive health education for the life sciences industry - have developed an unrivaled suite of online compliance training courses that combine top-quality content and user convenience.
CfPIE has launched the following five online course titles initially, and will add several more over the coming months:
Unlike most online training, CfPIE’s on-demand courses combine unparalleled interactivity, knowledge checks and real-life case studies. Expert avatars appear throughout each course to provide timely feedback, and a final assessment allows users to measure what they have learned. Additionally, CfPIE utilizes proprietary DocuLearn™ technology, which produces a printable summary of the course complete with the user’s personalized notes, answers to reflection questions, a glossary of terms, helpful job aids and much more. DocuLearn™ also serves as valuable documentation of training.
Online Training Courses are 21 CFR Part 11 Compliant
Furthermore, all courses reside on a 21 CFR Part 11 compliant Learning Management System (LMS) and are available as individual courses or can be customized and delivered at an enterprise level for groups, sites or entire firms. Each online course is SCORM compliant, allowing them to reside on any internal LMS.
CfPIE’s new online pharmaceutical training courses fit under their new “Total Learning™” model, which allows learners to choose the training method which is right for them. “Total Learning™” includes online courses, classroom courses and “blended learning,” which combines the convenience of online training with the detail of the classroom. The pinnacle of the “Total Learning™” experience is a full industry-recognized professional certification, of which CfPIE offers nine certification programs.
“With the streamlining of the industry, and the increasing stringency of FDA and international regulations, firms are left with difficult choices when training their staff.” says Mark Mazzie, Managing Director of CfPIE. “While traditional classroom training offers robust content and the ability to interact, many firms do not have the budget to send people off-site. Conversely, more affordable online training options have been sorely lacking in quality…often consisting of nothing more than a glorified slide deck presentation. CfPIE’s ‘Total Learning™’ concept has flexible learning options for all needs and budgets, offering the highest quality and the best overall value.”
It was the recognition of these shortcomings in online course quality that led CfPIE to ClearPoint, who, with over 1,000 implementations in ten years, holds a solid track record of learning technology solutions developed specifically for adult learners in highly regulated industries.
As ClearPoint CEO Philip McCrea explains, “Matching our expertise in learning technology solutions with CfPIE’s industry-leading content enables us to keep pace with the needs of today’s learners in order to improve overall business performance, and protect the best interests of life sciences companies. Moreover, through this new breed of online compliance training, organizations can easily, and instantly, add a broad range of much-needed education to their enterprises without incurring any capital investments and with zero conflicts to their existing technology infrastructures.”
For more information, visit http://www.cfpie.com to view a brief online course demo, and read more about training options.
About The Center for Professional Innovation & Education, Inc. (CfPIE):
The Center for Professional Innovation & Education, Inc. (CfPIE) is the global leader in accredited training for Pharmaceutical, Biotech, Medical Device and Skin/Cosmetics personnel. Leading industry experts conduct over 270 public courses and an equal amount of customized on-site training programs annually. Class sizes are limited to ensure individual needs are fully addressed. From discovery through commercialization, CfPIE has the training curriculum to advance your staff, keep your firm compliant and improve your bottom line. For more information about CfPIE’s full suite of training products, please visit http://www.cfpie.com.
About ClearPoint:
ClearPoint, a global authority in interactive health education, provides learning solutions to the world’s leading life sciences companies. With more than 1,000 successful implementations in ten years, the company creates on-demand, multi-channel tools to enable sales, marketing, and compliance professionals to grow their brands, increase clinical competencies, comply with regulations, and enhance relationships with health care providers.
The global ClearPoint team of 175 employees has its headquarters in Hoboken, N.J. and operates from offices in the U.S., Europe and Asia. For more information about ClearPoint, please visit: http://www.clearpointlearning.com
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Bill Beyer
CfPIE
610-688-1708 224
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Episode 86 – Backslide – What You Must Know To Avoid Failure – Joe White – Get Life Coaching – Video
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Adoption affects life, coaching style
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Texas State Softball Head Coach Ricci Woodard knows about tough love. She is a mother, after all.
The woman entering her twelfth season at the helm of the softball program has experienced a lot in her tenure, but nothing has had as big of an impact on her as the adoption of two young boys, Joey and Alex.
“It changed my approach to life,” Woodard said. “It has made this more of a job instead of my life. We’ve won multiple conference championships in a row since I adopted them, so maybe it has helped me learn how to separate my job and my life.”
Since Woodard was named head coach in 2000, the softball team has never placed lower than third place. The Bobcats have appeared in three straight National Collegiate Athletic Association tournaments and won five Southland Conference regular-season titles.
Assistant Coach Patti Brun has been with the Bobcats for six seasons, and noticed a change in Woodard from the time she started with the program and after the adoption.
“Some former players have said they think she is so much softer now,” Brun said. “But it has changed her perspective. It used to be much tougher in the day-to-day operation. Now, the little things don’t matter as much.”
While the little things may matter less, the big picture is still very much in Woodard’s mind.
“What I look back and see is all the second-place finishes we had that could have been first place finishes,” Woodard said. “And that’s not a knock on the players. The only way the team is not successful is if they don’t push themselves to the next level. This year, this team has the ability to do something special.”
Chandler Hall, senior pitcher and outfielder, is a big reason for the team’s recent successes, and has played for Woodard her entire college career.
“To me the greatest thing about Coach Woodard is how much she actually cares about each player,” Hall said. “She constantly checks on me on and off the field to see how I’m doing, and at the end of the season she tells me how much she appreciates me.”
The Bobcats have big expectations for this year as they look to advance past the first round of the NCAA tournament and earn national recognition. Their schedule opened against several national powerhouse programs. Woodard knows that to be the best, you have to beat the best.
“For us to go to the next level, we have to beat (Texas, Baylor, and Texas A&M),” Woodard said. “We break it down. Focus on winning this game, this inning, this pitch.”
Even though her focus remains on the game of softball, Woodard said she likes to keep things in perspective.
“It’s easy to get caught up in the passion of this game, and maybe I was too passionate and forcing things,” Woodard said. “Now that I’m a little more relaxed in my coaching, the players are more relaxed in their play. Maybe I’m not as intimidating anymore. Adding kids to my life changed my life.”
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Adoption affects life, coaching style
Subliminal Health Fitness Diet Solution 5 – Video
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Minnesota's per capita personal income compared to its neighbors
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How is Minnesota doing compared to other states? Are we falling behind? Staying ahead? People ask these questions whenever I give a public talk. Those questions lie behind much of the policy discussion going on in St. Paul about the governor's job plan, right-to-work laws and tax policy.
Over the next few weeks, I'll take you on a guided tour of some data that sheds light on how well Minnesota is doing relative to other states and what these data imply about public policy. This week, I'll focus on one measure: per capita personal income. The take away: As Garrison Keillor says, we're above average, but it hasn't always been that way.
Minnesota in the long run
Per capita personal income equals the total amount of income earned by residents of a state divided by that state's population. (The complete definition is available here. In 2010, per capita income in Minnesota reached $42,847, while the national average hovered at $39,945 in 2010.
Per capita income is not in and of itself a measure of well-being. However, when adjusted properly for changes in prices, per capita income does tend to be positively associated with many things people value, including a high material standard of living, better health and life expectancies, and better education. These are the data I use in the figures below.
The figure below shows the raw data on Minnesota's per capita income relative to the national average. Notice the U-shaped pattern: Minnesota started out at the national average, fell below it, and then steadily climbed above the average.
Source: 1880-1920: Richard A. Easterlin, "Interregional Differences in Per Capita Income, Population, and Total Income, 1840-1950." [PDF] National Bureau of Economic Research, 1960; 1929 to present: Bureau of Economic Analysis
The line is smooth from 1880 to 1920 because we do not have annual data before 1929. Our best estimates are that Minnesota was at the national average in 1880, was slightly above in 1900, then fell to about 85 percent of the national average in 1920. Annual data begin in 1929 and confirm Minnesota's position.
Terry Fitzgerald, an economist at the Federal Reserve Bank of Minneapolis, first presented the data for 1929 onward in a 2003 article which tells an important story: Starting at 85 percent of the national average, Minnesota reached parity in the 1960s and has been above average since the 1970s.
How did Minnesota become above average? We'll explore this question over the coming weeks, but here's the short version: High rates of labor force participation (especially by women), investments in human capital (such as education and health care), and investments in physical capital (both by private funders and public agencies) contributed to Minnesota's strong economic performance.
Minnesota and its neighbors
We often hear of how Minnesota must compete with its neighbors for businesses and jobs. We ultimately care about these things because they help determine our citizens' standard of living. So, how does Minnesota stack up against our neighbors, namely Wisconsin, Iowa, South Dakota and North Dakota?
Let's start by smoothing the data so that we can see the long-run trend. (For those who are interested: I applied a Hodrick-Prescott filter just as Fitzgerald did in his work.) Here is what we get for Minnesota:
Now, let's compare this with Wisconsin over the same period:
Minnesota's per capita income exceeded Wisconsin's starting in the 1960s. Not only that, but Wisconsin fell relative to the national average at the same time as Minnesota rose. Comparing Minnesota and Iowa tells a similar story:
Average income in Minnesota exceeded Iowa's in the early 1960s and never looked back.
How about the Dakotas? We hear quite often how well they are doing, so let's take a look. Here is South Dakota versus Minnesota:
South Dakota certainly grew steadily over the past 25 years, but its average income still hasn't reached the national average. Further, the high points in the late 1940s, the mid-1970s and the late 2000s all correspond to periods of high prices for agricultural commodities, pointing to a potential weakness in South Dakota's economy.
The situation is even starker when we compare Minnesota and North Dakota:
North Dakota exhibits the same patterns as South Dakota; they are exaggerated by the importance of oil and gas extraction in North Dakota and thus make their economy even more subject to booms and busts.
What about some other states?
Two states to which Minnesota is often compared are Indiana and Texas. Indiana, for example, recently passed a right-to-work law and this will no doubt be cited in our Legislature's debates on this issue. Texas is known as a low-tax, small government state that its governor, Rick Perry, cited as an example that the rest of the nation could follow.
Here is Minnesota versus Indiana:
Indiana went in exactly the opposite direction of Minnesota since World War II, with per capita income about 85 percent of the national average.
How about Texas versus Minnesota?
The Lone Star State shows a pattern similar to the Dakotas, with booms and busts in oil and farm prices driving per capita incomes. And, despite low taxes and little regulation, Texas still hasn't reached the national average in per capita income.
Implications for policy
These data are only the first pieces of a larger puzzle we must assemble in order to think about economic policy in Minnesota. However, they paint a very clear picture. First, Minnesota did well since World War II both in absolute terms and relative to our neighbors. Second, Minnesota performed better than states such as Indiana and Texas that are held up as examples of low taxes and minimal government.
Obviously, the past doesn't predict the future. It could be that the factors that made Minnesota above average no longer apply in the early 21st century. But before we enact radical reforms to improve our competitiveness, let's spend some time ensuring that we have the record straight. We'll keep assembling that record in the coming weeks.
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Minnesota's per capita personal income compared to its neighbors