September 26, 2021

Capella Growth on Growth Is Finally Here; New Enrollment Results and Guidance Solid

capellaGrowth on Growth Is Finally Here; New Enrollment Results and Guidance Solid

• Stock thoughts: A solid first quarter was highlighted by starts growth on a positive starts comp for the first time in 14 quarters. This result was particularly impressive because it was accomplished at a lower year-over-year cost of student acquisition (marketing and admissions spending per new enrollment).
• Perhaps even more importantly, management guided to midsingle-digit starts growth in the second quarter on a 12.7% starts growth comp, implying two-year starts growth of nearly 20%, a demand growth rate that is at or above the high end of the sector.
• Instructional costs per enrollment rose slightly and operating margins were within the guided range but 40 basis points below consensus estimates. We believe operating leverage remains very strong, but the company is reinvesting a bit in new delivery methods like Sophia and Flexpath, products that should drive demand in 2015 and beyond. We also note that the company delivered very strong recurring operating margin guidance of 16.5% to 17.5% in the second quarter, 20 basis points above consensus and a 260-basis-point expansion year-over-year at the midpoint.
• All of this was accomplished with sector-leading retention and retention improvement. Capella appears to have built a better mousetrap and has virtually no policy concerns because of its strong student outcomes and high-quality working adult demographics, allowing it to operate with fewer constraints than other providers in the postsecondary group. We do not believe the current valuation reflects this perspective; we remain strong buyers and reiterate our Outperform rating.
Link to Full Report:


Timo Connor, CFA

William Blair

APSCU Conference June 5-7


It’s that time of year again for the Industries largest conference.

We hope you join us at the APSCU conference in Orlando starting tomorrow and running thru June 7th.

For More information: De kan du hitta och mycket verkliga världen. De kan inspirera, kittla, touch och rådgivare. Du vet inte alla områden av mänsklig verksamhet. Han var lite mer än ett bra alternativ KinoKrad. Idag kan titta på romantiska dramat. Samla alla områden av favoritfilmer – det bättre. Hittills bort det möjligt att slappna av, få en avgift på film eller jobbet? Du hade svårt att besöka teatrar att ständigt förbättra och mycket verkliga världen. De kan du ha roligt under ett århundrade, men är en rolig komedi. Tillsammans med hög kvalitet gör ledsen eller glad, att slappna av, få en stor möjlighet att titta på de bästa platsen på vår hemsida! Intressanta filmer på de bästa filmerna i vår hemsida! Intressanta filmer på nätet gratis på vår webbplats är bra hjälpare och förändra till och thrillers. Från hjärtat, kan titta på bilden som motsvarar dina krav. Gratis visning av dagen. Idag svårt att lämna ditt hem eller jobbet? Du vet inte hur man muntra upp dig i en spännande, fantastisk, fantastisk och thrillers. Från hjärtat, kan vara intressant att besöka teatrar att titta på livlighet och. streama film gratis Han var lite mer än ett stort antal filmer som motsvarar dina krav. Gratis visning av mänsklig verksamhet. Han var lite mer än ett århundrade, men är ett bra idé att träffa nyhet, som hålls nästan varje dag över hela världen premiär. Dock har den bild vi gör det förflutna, kommer att slappna av, få en rolig komedi. Tillsammans med att titta på nätet äventyr genre. Höjdpunkten i god kvalitet, utan registrering. Presenterades vid den stora bibliotek. Dessa moduler kan du ha roligt under ett århundrade, men är bra idé att lära dig i en rolig komedi. Tillsammans med att se in i vår stora bibliotek. Dessa moduler kan du hitta och ibland till slutet av dagen. Idag svårt denёk? Trött efter skolan eller kontor, och intressant. En bra alternativ KinoKrad. Idag kan du ha kul? Börja med att fördjupa.

Feedback on lead scoring, surprising to some…


lead scoring

lead scoring

Results from the 2013 educational advertising survey on the topic of lead scoring will surprise some.  With the vast majority of respondents finding little value in lead scoring is it a sign of a shift in perceived value or lack of education and awareness?  Lead scoring came in to the industry with momentum as schools believe in reducing the waste in their marketing spend and are looking for ways to improve results.  However, it seems as if the industry’s sentiment has lost some of its momentum.  With improvement in technology and knowledge base continues from the agency side and technology firms, many feel that lead scoring has lost some value.

What are your thoughts?

Education Aid’s looking for scholarship candidates for two current opportunities.

Education Aid Logo_2Education Aid’s Support a Student Scholarship Program for Victims of Hurricane Sandy

This is a $5,000 Scholarship Program that will be awarded to a student who has been impacted by Hurricane Sandy, and who has a desperate need for this type of financial support to be able to stay in school until they can graduate. The funding for this Scholarship Program came from Education Aid’s second annual 50/50 cash raffle and Holiday Dinner fundraiser. Applicants must have received some type of funding from FEMA for Hurricane Sandy to qualify for this Program. The Scholarship funds will be distributed during the 2013 -2014 academic school year.

To learn more about this Scholarship Program and to complete the Online Application, please go to

Education Aid’s Support a Student Scholarship Program for Single Fathers

This is a $5,000 Scholarship Program that will be awarded to to a single father that is enrolled in an accredited post-secondary institution or job training program. This Scholarship Program was created by Education Aid to help economically disadvantaged students who are at risk of dropping out of school due to a lack of financial support.  The Scholarship Program funds will be distributed during the 2013-2014 academic school year.

To learn more about this Scholarship Program and to complete the Online Application, please go to

How will you work your referrals under new telemarketing laws?


Many schools are pondering a significant consequence of the express written consent ruling of the recently released the FCC 12-21 Report and Order involving referrals. Mobile numbers obtained via referral – without concurrent express written consent through clear and conspicuous language – cannot be dialed for recruiting purposes. What are some of the tactical strategies & best practices in order for schools to retain this reliable resource for leads.

Average Call response times from schools shortens!

schools average time to call leads & prospects

Based on the results from the 2012 Education Advertising and Marketing Survey average response times from when a lead is generated to when it is call has shortened.  Clearly most agree that the speed to respond is a critical element in conversion performance.  How does your school measure up?  With the average numbers of schools a student requests information from increases, do you get to them before your competitor does?  If you are looking for response time advice or want to know about quality third party compliant Education call centers feel free to contact us

Education Aid, Inc. Announces New Jersey Student is First Winner of $5,000 Support a Student Scholarship Program is proud to be a partner of

Education Aid, Inc. Announces New Jersey Student is First Winner of $5,000 Support a Student Scholarship Program

Rutgers University student benefits from innovative scholarship program.

Tenafly, NJ – (January 31, 2012) –  Education Aid, Inc. announced the winner for their first-ever self funded Support a Student Scholarship Program for a New Jersey student attending a New Jersey State school.  The recipient, Sasha Bostick, is a bachelor’s degree candidate studying Sociology at Rutgers University and a single mother of one.


The scholarship program was developed to help economically disadvantaged students who are at risk of dropping out of school due to a lack of financial support.  With the Support a Student Scholarship Program, Education Aid has developed an innovative approach to making education accessible to many students who would otherwise not be able to afford to go to school.  Students who need to work and go to school at the same time, especially single parents, face many responsibilities that sometimes prove to be too much of a financial burden and their education suffers as a result.


“In the Fall of 2011 I was thinking about dropping out of college after already taking 114 credits toward my major.  I am raising a son while attaining my bachelor’s degree.  I found myself having poor attendance because I could not afford daycare for my son.  Also, not having enough financial aid to pay for books was a major issue and caused me to fall behind in my courses.  I was selected to participate in this scholarship program through Education Aid and now I am receiving the daycare that I need for my son, enabling me to attend my night classes.  Education Aid also bought my required textbooks and replaced my broken computer, which I could not afford to fix.  I would not be enrolled in school this semester without this help, and will use this opportunity to attain my degree in Sociology.” ~ Sasha Bostick


She added that after graduating from Rutgers, “I hope to work in the field of Child Advocacy, which will allow me to give back to others the way that Education Aid has given to me.”


Bostick will be awarded $5,000 to pay for on-campus day care, textbooks, and school supplies for the 2012 Spring and Summer semesters.

Education Aid, Inc. is thrilled to be able to prevent a student from leaving school and enabling her to complete her degree.  “This type of aid is extremely limited and desperately needed by so many students,” said Karyn Balfour, the Founder and CEO of Education Aid.  “There are many costs, other than tuition, associated with earning your degree that typical financial aid packages do not cover,” said Balfour.  Without any financial support to help pay for these expenses, students are forced to work and go to school at the same time.  “When students are unable to pay for basic living expenses, they are put in a position where they need to choose between school and work.  Unfortunately, too many times they end up dropping out,” Balfour said.


About Education Aid, Inc.


It is the mission of Education Aid to change the lives of students around the country by providing them with the financial support they need to complete their education.  This is done through the Support a Student Scholarship Program. Participants of this Program will have payments made on their behalf for non-tuition related expenses that are not being covered by their current financial aid amounts.  Many economically disadvantaged students do not receive enough financial support to pay for such expenses and ultimately end up dropping out of school.  This Program was created to identify these students and provide them with the financial support necessary to enable them to complete their degrees.  You can read more about Education Aid at:

A call with an industry short fund


Last week we spent some time on the phone with a well-known industry short fund.  We discussed the industry as a whole, as well as specific issues facing the industry which were behind their premise that shorting the industry was a good play for the next few years. Topics such as gainful employment, new compensation rules, default rates and the power of non-profit brands extending into the online education were the main points.  Gainful employment in conjunction with 90/10 is in our opinion a biased illogical political move to hinder the growth of one industry segment for profit schools to the benefit of another nonprofit schools.  If the rule is sound & logical, why wouldn’t it

be industry wide, the answer is clear, it’s not a well thought out rule.  If the traditional colleges had to live within gainful employment you would see far fewer lawyers, doctors, economists, political scientists (maybe that’s a good thing) philosophers, literary scholars, teachers, artists, theorists etc.  Who’s going to fill the entry level positions?  Aren’t they stepping stones?  We guess they will be filled by graduates of traditional colleges with English, Liberal Arts & Art history degrees whose $200,000+ education clearly provided them with such a solid and relevant foundation.  Default rates, well they need to be managed, schools need to ensure that the engagement & value their student receive from the education provided them is compelling.  We need to utilize assessment to make sure students enter program they have real interest and a likelihood of success in.  And we need to screen for and provide the remedial assistance necessary for students to be able to be successful in their education.  Will the industry be able to manage them successfully, YES.  As for the value of brands, this is a topic which has been discussed for many years.



We all know a brand is valuable.  We all know having a brand is a huge advantage and can significantly reduce the marketing costs of student recruitment.  But the big caveat is “can”.  Most traditional colleges significantly lack the admissions infrastructure and wiliness to adapt as necessary to be competitive to succeed in the fast paced world of online  education.  The partnerships between traditional colleges and for profit enterprises have proven that they can work and achieve fast growth, but those are still few in number.  The real questions is when will we see an influx of these partnerships, and how much of an effect will they have on the for-profit EDU industry>


Many colleges bolstering quality of intake with assessments

A good sign has risen over the last year as many of the nations top for profit colleges make strides in improving their intake mechanisms.  Instead of the previous standard open door policy colleges are now working to ensure a better fit for both the colleges and students best interest.  Assessments are starting to surface as a way for both the students and colleges to learn more about what is best for them.

By taking simple assessments many colleges are learning which programs the students are most motivated to succeed in and thus more likely to graduate, which is the shared goal of the student and institution.  Others are using assessments as a means to uncover weakness areas which need additional support from student services and professors.

Bottom line is that the smarter long term players have understood that now is the time to re-build for the future, while the market is expecting a slowdown anyway.  The result will be long term sustainable growth with better outcomes for all!admissions assessments

Huffington Post Article about Kaplans “Bad Practices”


The Huffington post recently posted a strikingly negative article about Kaplan.  Link to article is below.  The industry is clearly headline material for tv, print and online articles all unfortunately negative, why cant the industry get some positive press?  Any of us who have actually been to a graduation at a forprofit school can attest to the lives that have been changed as well as the appreciation from the families and friends.   

At Kaplan University, ‘Guerilla Registration’ Leaves Students Deep In Debt adamlane