MINNEAPOLIS, Feb 24, 2011 (BUSINESS WIRE) -- Capella Education Company (NASDAQ: CPLA), a provider of online post-secondary education through its wholly owned subsidiary Capella University, today announced an increase to its current share repurchase program. The Board of Directors has authorized an increase of the existing share repurchase program by $65 million up to an aggregate of $113 million. This includes the $48 million remaining authorization as of Dec. 31, 2010 under the previous share repurchase program.
"While investing in the infrastructure of our business to meet internal growth objectives, Capella is focused on developing long-term growth opportunities, maintaining appropriate liquidity to satisfy regulatory requirements, and increasing shareholder value," said Steve Polacek, senior vice president and chief financial officer. "We have a solid financial position of $193 million in cash, cash equivalents, and marketable securities and no debt as of Dec. 31, 2010. The increased share repurchase authorization demonstrates our belief in Capella's current value and future prospects."
The share repurchases will be made in the open market at prevailing market prices or in privately negotiated transactions using existing resources and cash generated from operations. The Company may also repurchase shares pursuant to a 10b5-1 plan which allows the Company to purchase shares during corporate black-out periods. While the company expects to take advantage of market conditions, the timing and extent of any repurchases, the trading price of the Company's shares and other factors are subject to restrictions relating to volume, price and timing under applicable law. The repurchase program may be modified, suspended or terminated at any time by the Company without notice.
Forward-Looking Statements
Certain information in this news release does not relate to historical financial information, including statements relating to our future prospects and our expectations regarding our revenues, enrollment, and operating performance, and may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The company cautions investors not to place undue reliance on any such forward-looking statements, which are based on information available at the time those statements are made or management's good faith belief as of that time with regard to future events, and should not be read as a guarantee of future performance or results. Such statements are subject to certain risks and uncertainties that could cause the company's actual results in the future to differ materially from its historical results and those presently anticipated or projected. The company undertakes no obligation to update its forward-looking statements to reflect events or circumstances arising after such date.
Among these risks and uncertainties are any failure to materially comply with the extensive regulatory framework applicable to us, including compliance with Title IV of the Higher Education Act and the regulations thereunder; complying with new U.S. Department of Education rules regarding incentive compensation, state authorization, and gainful employment; maintaining our business in accordance with regional and specialized accreditation standards and state and regional regulatory requirements; changes in the administration, funding and availability for Title IV programs; responding to any additional governmental inquiries into our financial aid practices; attracting and retaining high quality, academically prepared learners; updating and expanding the content of existing programs and developing new programs; the review of our business and financial aid practices by governmental authorities, including action by Federal Student Aid on the final audit report of the Office of Inspector General of the U.S. Department of Education arising out of its ongoing compliance audit of Capella University; changes in applicable federal and state laws and regulations and accrediting agency policies, including as a result of current U.S. Department of Education rulemaking and recent Congressional review of our industry; maintaining and expanding existing commercial relationships with employers and developing new such relationships; effectively instituting changes in our marketing approach and with the use of aggregators; our failure to keep up with advances in technology important to the online learner experience; our ability to manage growth effectively; our use of business technology to accurately store, process and report relevant data; changes in student enrollment including new enrollments and learner persistence; effectively implementing cost reductions in our business; managing increases in our expenses; and risks associated with the overall competitive environment and general economic conditions.
Other factors that could cause the company's results to differ materially from those contained in its forward-looking statements are included under, among others, the heading "Risk Factors" in our most recent Form 10-K and Form 10-Qs on file with the Securities and Exchange Commission and other documents filed by the company with the Securities and Exchange Commission.
About Capella Education Company
Founded in 1991, Capella Education Company is a national leader in online education and parent company of Capella University, a regionally accredited* online university. Capella University offers online graduate degree programs in business, counseling, education, health administration, human services, information technology, nursing, psychology, public administration, public health, public safety, and social work, and bachelor's degree programs in business, information technology, nursing, psychology, public administration, and public safety. These academic programs are designed to meet the needs of working adults, combining high quality, competency-based curricula with the convenience and flexibility of an online learning format. Currently, Capella University offers 44 graduate and undergraduate degree programs with 136 specializations. More than 39,000 learners were enrolled as of Dec. 31, 2010. For more information about Capella Education Company, please visit www.capellaeducation.com . For more information about Capella University, please visit www.capella.edu or call 1.888.CAPELLA (227.3552).
*Capella University is accredited by The Higher Learning Commission and is a member of the North Central Association of Colleges and Schools (NCA), www.ncahlc.org .
Capella University, Capella Tower, 225 South Sixth Street, Ninth Floor, Minneapolis, MN 55402, 1.888.CAPELLA (227.3552), www.capella.edu .
SOURCE: Capella Education Company
Investor Contact: Heide Erickson Capella Education Company 612.977.5172 Heide.Erickson@capella.edu or Media Contact: Mike Buttry Capella Education Company 612.977.5499 Mike.Buttry@capella.edu