MINNEAPOLIS--(BUSINESS WIRE)--

Capella Education Company (NASDAQ: CPLA - News), a provider of online post-secondary education, primarily through its wholly owned subsidiary Capella University, today announced financial results for the three months ended March 31, 2012.

While our first quarter financial results were in-line with expectations, these operating results and our near-term outlook reflect that we continue to operate in a very challenging market environment, said Kevin Gilligan, chairman and chief executive officer. Our focus remains on building Capella for long-term sustainable growth through our shift to a brand-driven marketing strategy and investments in innovation to drive differentiation and learner success. Early positive indications give us confidence in this strategy.

For the three months ended March 31, 2012:

Balance Sheet and Cash Flow

As of March 31, 2012, the Company had cash, cash equivalents, and marketable securities of $128.5 million, compared to $127.0 million at Dec. 31, 2011, and no debt for the same periods.

Cash flow from operations for the three months ended March 31, 2012 was $19.9 million compared to $23.5 million in the same period a year ago, a decrease of 15.3 percent.

Share Repurchase

In the first quarter 2012, the Company repurchased approximately 319,000 shares of Capella stock for total consideration of $12.9 million. The remaining authorization as of the end of the first quarter was $46.7 million.

Outlook

Read more:
Capella Education Company Reports First Quarter 2012 Results