Strategic Education (NASDAQ: STRA) reported Q2 EPS of $2.06, $0.37 better than the analyst estimate of $1.69. Revenue for the quarter came in at $255.8 million versus the consensus estimate of $246.54 million.

Three Months Ended June 30

• Revenue increased 4.4% to $255.8 million compared to $245.1 million for the same period in 2019.
• Income from operations was $46.4 million or 18.1% of revenue, compared to $27.6 million or 11.3% of revenue for the same period in 2019. Income from operations in 2020 includes $15.4 million of amortization expense related to assets acquired in the merger with Capella Education Company and $1.2 million in costs associated with the merger with Capella Education Company, and transaction expenses associated with potential future business combinations. Income from operations in 2019 included $15.4 million of amortization expense related to assets acquired in the merger with Capella Education Company and $3.0 million in costs associated with the merger with Capella Education Company. Adjusted income from operations, which is a non-GAAP financial measure and excludes the aforementioned expenses, was $63.0 million in 2020 compared to $46.0 million for the same period in 2019. The adjusted operating income margin was 24.6% compared to 18.8% for the same period in 2019. 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 items described above, and also includes income from partnership interests and other investments, and certain discrete tax adjustments, was $34.2 million in 2020 compared to $24.4 million for the same period in 2019. Adjusted net income was $45.4 million compared to $35.2 million for the same period in 2019.
• Earnings before interest, taxes, depreciation, and amortization (EBITDA) was $72.6 million in 2020 compared to $54.1 million in 2019. Adjusted EBITDA, which excludes merger costs and stock-based compensation expense, was $77.7 million compared to $60.3 million for the same period in 2019.
• Diluted earnings per share was $1.55 compared to $1.10 for the same period in 2019. Adjusted diluted earnings per share increased to $2.06 from $1.59 for the same period in 2019. Diluted weighted average shares outstanding decreased to 22,012,000 from 22,109,000 for the same period in 2019.

Karl McDonnell, Chief Executive Officer of Strategic Education said, “We are very proud of our staff and faculty’s ongoing commitment to help our students continue their educational journeys during the second quarter of 2020. As our organization continues to adapt to the challenges presented by the COVID-19 pandemic, we remain focused on maintaining the highest level of educational quality and access while investing in strategies and opportunities to support our mission of advancing career and economic mobility for all.”

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