Strayer Education (STRA) has reported 14.83 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $10.58 million, or $0.95 a share in the quarter, compared with $12.42 million, or $1.15 a share for the same period last year.     

Revenue during the quarter grew 3.37 percent to $114.91 million from $111.17 million in the previous year period. Gross margin for the quarter contracted 118 basis points over the previous year period to 46.55 percent. Total expenses were 83.95 percent of quarterly revenues, up from 81.93 percent for the same period last year. That has resulted in a contraction of 202 basis points in operating margin to 16.05 percent.

Operating income for the quarter was $18.44 million, compared with $20.09 million in the previous year period.

The company has spent $3.84 million cash to meet investing activities during the quarter as against cash outgo of $3.67 million in the last year period.

The company has spent $3.36 million cash to carry out financing activities during the quarter as against cash outgo of $0.40 million in the last year period.

Cash and cash equivalents stood at $147.10 million as on Mar. 31, 2017, up 25.19 percent or $29.60 million from $117.50 million on Mar. 31, 2016.

Working capital increases sharply
Strayer Education has recorded an increase in the working capital over the last year. It stood at $111.17 million as at Mar. 31, 2017, up 35.56 percent or $29.16 million from $82.01 million on Mar. 31, 2016. Current ratio was at 2.68 as on Mar. 31, 2017, up from 2.31 on Mar. 31, 2016.

Days sales outstanding were almost stable at 15 days for the quarter, when compared with the last year period.