CAPELLA EDUCATION CO

No Longer Reporting

The company has not filed an annual or quarterly report since its Q2 FY2018 10-Q, filed Aug 1, 2018. Its latest SEC filing is a SC 13G/A from Feb 13, 2019.

The sections below describe the company as of the FY2017 annual report.

What Did They Do?

Sells online college degree programs to working adults and job-skills training to job seekers and employers.

How Did They Make Money?

Learners pay tuition and course resource fees for instruction, which are spread across the instruction period; residency tuition is spread over the residency.

FY2017 revenue by reportable segment revenue

Segment	Share	Revenue
Post-Secondary	98% FY2014: 99%
Job-Ready Skills	2.2% FY2014: 0.9%

Who Were Their Customers?

Capella University serves working adults in online degree programs; its job-skills businesses serve job seekers and partner with employers.

Did Revenues Turn Into Profits?

Yes. It kept 5 cents of every revenue dollar as net income in FY2017 and turned 9 cents into free cash flow.

Operating income, FY2017

10% of revenue

▼ −34% vs FY2016 ($68.2M, 16%)

Net income, FY2017

5% of revenue

▼ −45% vs FY2016 ($43M, 10%)

Free cash flow, FY2017

9% of revenue

▼ −33% vs FY2016 ($62.3M, 15%)

How Were They Changing?

Since the FY2017 annual report

Latest quarter: Q2 FY2018, the three months to Jun 30, 2018

Revenue: ▲ +2%; vs $109.6M in Q2 FY2017
Net income: ▲ +10%; vs $10.8M in Q2 FY2017

Post-Secondary share of revenue vs 97.6% in Q2 FY2017

Aug 1, 2018 Capella's merger with Strayer closed, and its shares converted to SEI stock Each eligible Capella share converted into 0.875 shares of SEI common stock, plus cash for fractional shares.

Held flat. Revenue was $440.4M in FY2017, about the same as the $415.6M of FY2013.

Broader job-skills training The earlier report describes CLS as online training for corporate partners. The later report adds training for individual job seekers, software-development schools, and employer-linked placement services.

More FlexPath subject areas The earlier report describes FlexPath's first offerings as business bachelor's and MBA programs; the later report lists programs in information technology, nursing, education, and health administration as well.

Revenue over time

Post-Secondary Job-Ready Skills

$500M$250M$0

FY2014 FY2015 FY2016 FY2017

Who Did They Compete With?

Competes with Ashford University, Colorado Technical University, Grand Canyon University, Kaplan University, Liberty University, Southern New Hampshire University, Strayer University, University of Phoenix, Walden University, and Western Governors University

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