Strategic Education (NASDAQ: STRA) reported Q1 EPS of $1.66, $0.23 better than the analyst estimate of $1.43. Revenue for the quarter came in at $246.5 million versus the consensus estimate of $240.74 million.

Karl McDonnell, Chief Executive Officer of SEI said, “Our strong first quarter results provide us with a solid foundation to build on for the balance of 2019. We are moving into the tenth month since we closed our merger with Capella Education Company, and are very pleased with progress of the merger integration and the organization’s continued ability to execute. We remain focused on delivering academic success and long-term economic mobility for our students and alumni.”

Three Months Ended March 31

• Revenue increased 111.7% to $246.5 million compared to $116.5 million for the same period in 2018.
• Income from operations was $25.7 million compared to $11.3 million for the same period in 2018. Income from operations in 2019 includes $15.4 million of amortization expense related to assets acquired in the merger with Capella Education Company and $7.2 million in costs associated with the merger with Capella Education Company. Income from operations in 2018 included $5.3 million in costs associated with the merger with Capella Education Company. Adjusted income from operations, which is a non-GAAPfinancial measure and excludes the aforementioned expenses, was $48.3 million in 2019 compared to $16.7 million for the same period in 2018. The adjusted operating income margin was 19.6% compared to 14.3% for the same period in 2018. For more details on non-GAAP financial measures, refer to the information in the Non-GAAP Financial Measures section of this press release.
• Net income, which includes the adjustments described above, income from partnership interests, and certain discrete tax adjustments, was $11.5 million in 2019 compared to $9.5 million for the same period in 2018. Adjusted net income was $36.7 million compared to $13.9 million for the same period in 2018.
• Earnings before interest, taxes, depreciation, and amortization (EBITDA) was $51.7 million in 2019 compared to $16.4 million in 2018. Adjusted EBITDA was $61.0 million compared to $24.8 million for the same period in 2018.
• Diluted earnings per share was $0.52 compared to $0.84 for the same period in 2018. Adjusted diluted earnings per share increased to $1.66 from $1.23 for the same period in 2018. Diluted weighted average shares outstanding increased to 22,050,000 from 11,311,000 for the same period in 2018, due primarily to new shares issued to facilitate the merger with Capella Education Company.

For earnings history and earnings-related data on Strategic Education (STRA) click here.