Colleges, Universities and Other Higher Degree Granting Institutions

Colleges, Universities and Other Higher Degree Granting Institutions Industry (U.S.) Analytics, Extensive Financial Benchmarks, Metrics and Revenue Forecasts to 2023, NAIC 611300 Published October 17, 2016

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I. Introduction 1 A. Core Benefits to Customer: • Comprehensive overview of an industry's financial results, ratios, and vital metrics in one package (U.S. data) • Benchmarking of: 1. Deep financials of each of the leading companies in the industry 2. Multi-year financial averages for all companies in the industry 3. This industry’s financial ratios compared to all other industries • Historical revenues • Enterprise population • Multi-year employee count and sales per employee • Current and forecast revenues and CAGR to 2023 • Profiles of the industry's leading firms, with multi- year financial histories II. Industry Description for this NAIC Code 2 • Types of business activities III. Industry Summary, Current Year (U.S. data) 3 • Revenues and CAGR 2015 • Revenue forecast to 2023 with CAGR • Historical revenues • Historical CAGR • Top U.S. companies, by revenues • Employment within the industry, 2015 and historic IV. Employment and Establishment Count (U.S. data) 5 • Number of firms and establishments, 2008-2015 • Employees, 2008-2015, with growth rates • Average annual sales per firm and per establishment, 2008-2015 • Annual sales per employee, 2008-2015 V. This Industry's Financial Data, U.S., With Revenue 8 Projections to 2023 A. Revenues, Historical and Projected 9 • Historical revenues & CAGR growth rates, 2008-2015 • Projected revenues & CAGR growth rates, 2016-2023 B. Average Annual Operating Ratio Estimates and 10 Benchmarks for Current Year • Income items, expenses, profits and taxes as a percent of total revenues for this industry C. This Industry Compared to All Industries, 13 Benchmarks for Current Year • Comparison of revenues for this industry to total revenues for all industries • Comparison of EBITDA, profits and income taxes for this industry to the same items in total for all industries D. Table of Companies Used in Creating Industry 15 Averages • Detailed, alphabetical listing of companies, with revenues, location, ticker symbol and exchange E. Industry Results and Benchmarks for Publicly-Held 16 Companies • Income statement averages, 2010-2015 • All income statement items, including, cost of sales, SGA, R&D, salaries and wages, and EBITDA, with ratios • Chart showing key expenses as a percent of revenues • Balance sheet averages, 2010-2015 • All items, including property plant and equipment, accumulated depreciation, goodwill, and long term debt, including ratios • Cash flow averages, 2010-2015 • All cash flow items VI. Top Companies Profiled & Ranked 23 • In-depth profiles, financial reports, ranks & executive lists for up to 10 top U.S.-based corporations A. Top Companies Ranked for Key Items: 24 • Approximate market capitalization • Employees • Revenues • Net income • 3-Year revenue growth (%) • 3-Year income growth (%) • Return on assets (%) • Return on equity (%) • Return on invested capital (%) B. Benchmarking of the Industry's Top Companies, to 25 Each Other and to their Industry's Averages for All Metrics • Income statements, balance sheets and cash flow statements for each of the top companies compared to the industry’s overall average C. Corporate Profiles (Descriptions of the Top 31 Companies Within the Industry, Including Executive Listings and Multi-Year Financial Results) • Contact information, executive lists • Business descriptions • Key financial data for 6 years • Brands and divisions • Top salaries • Corporate culture • Charts comparing revenues vs. net income VII. Appendix: Assumptions 61 • Tables of assumptions used in revenue projections VII. Data Description and Sources 62 Copyright, Terms of Use, Limited Warranty 63 © Plunkett Research, Ltd. All Rights Reserved. www.plunkettresearch.com

Introduction

This report is published by the Plunkett Analytics unit of Plunkett Research, Ltd.,

Copyright ©, Plunkett Research, Ltd., All Rights Reserved. www.plunkettresearch.com P. O. Drawer 541737, Houston, Texas, 77254-1737, USA voice: 713.932.0000, fax: 713.932.7080, email: [email protected]

The purpose of this report is to provide estimates of vital industry-specific data, within the United States, on a per-industry basis. Further comments are provided at the beginning of each section. A description of data sources can be found in the back of this report.

Video: How to Use Plunkett Analytics

Core Benefits to Customer: 1) Comprehensive overview of an industry's financial results, ratios, vital statistics and metrics in one package 2) Comparisons of a) deep financials of the leading companies within an industry, b) all companies (public and private) to publicly-held companies, and c) one industry’s ratios to all other industries. 3) Historical industry data going back eight years for key figures including revenues, enterprises and sales per employee. 4) Current and projected revenues, including forecasts for seven years into the future.

The primary sources are as follows:

Plunkett Research database of company fundamentals on over 30,000 leading corporations Plunkett Research database of industry statistics Industry associations and professional societies Forecasts, primary research and secondary research by the Plunkett Research staff U.S. Government Agency databases—multiple sources, including the IRS, the Bureau of the Census and the Bureau of Labor Statistics.

While many other research firms mine U.S. government data in order to publish industry-specific information, we believe that such efforts produce limited and often inaccurate results.

Plunkett Research has unique capabilities for creating industry information, due to the industry databases and research that our firm has been conducting for more than 20 years. Our access to hundreds of industry tables from our own databases, along with our databases of public and private company information, industry trends analysis and other resources, have been utilized fully in preparing this report.

The following types of data will be found in this report:

Revenues—current, historical and projected Revenues—CAGR (compound annual growth rate) Employee count—current and historical Leading companies—profiles, financial results, and operating ratios for up to 10 top corporations per industry Top Companies Ranked—companies ranked in order to list top 10 by revenues, net income, employees, market capitalization, return on assets, return on equity, return on invested capital, 3-year profit growth and 3-year revenues growth Benchmarks—comparison of this industry to the total for all industries Employment and establishment counts, current and historical Income and balance sheet ratios

Similar reports are available from Plunkett Research for nearly all U.S. industries, by subscription or by individual report. [email protected]. 713.932.0000 (USA)

Industry Description

611300 Colleges, Universities and Other Higher Degree Granting Institutions

This industry comprises establishments primarily engaged in furnishing academic courses and granting degrees at baccalaureate or graduate levels. The requirement for admission is at least a high school diploma or equivalent general academic training. Instruction may be provided in diverse settings, such as the establishment's or client's training facilities, educational institutions, the workplace or the home, and through diverse means, such as correspondence, television, the Internet or other electronic and distance-learning methods. The training provided by these establishments may include the use of simulators and simulation methods.

Note: the fact that public (government-funded) schools, private nonprofit schools and for profit schools are all in the same industry codes skews the numbers to some extent. For example, public schools may report low levels of revenues, but they do report high levels of employment as well as large numbers of establishments. This means that revenues per establishment and per employee (on average for the entire sector) may appear to be very low.

The education industry is also evolving rapidly due to the application of advanced technologies. One result has been a rapidly growing number of education organizations, both for-profit and nonprofit, that primarily provide courses and college degree programs online. These firms are also classified under industry 611.

Related subsectors include:

· 611110 Elementary and Secondary Schools

· 611210 Junior Colleges

· 611420 Computer Training

· 611610 Fine Arts Schools

Industry Summary

NAIC 611300 Title Colleges, Universities and Other Higher Degree Granting Institutions Industry (U.S.)

Revenues (2015)* $510,778,002,677

Employees (2015) 1,729,500

Annual Revenue Growth Rate (2015) 3.70 %

CAGR*, Estimated (2008 through 2015) 4.36 %

Revenues (2023) $699,303,401,947

CAGR*, Estimated (2016 through 2023) 4.16 % * Compound Annual Growth Rate

Top U.S. Companies Operating Within This Industy Include:

Company Revenues (Whole Numbers) 2015 or lastest year available *

Apollo Education Group Inc (University of Phoenix) $2,566,277,120

Education Management Corp $2,046,873,088

DeVry Education Group Inc $1,909,943,040

ITT Educational Services Inc $849,825,984

Career Education Corporation $847,273,024

Grand Canyon Education Inc $778,200,000

Bridgepoint Education Inc $561,729,024

Strayer Education Inc $434,436,992

Capella Education Co $430,267,008

American Public Education Inc $327,910,016

*Note: "Summary" data above includes only activities and employees specific to this NAIC industry code, and only activities and employees within the U.S. "Leading Companies" data includes top companies headquartered in the U.S. that are designated with this NAIC as a primary industry code. Consequently, the total revenues of these Leading Companies may be significantly higher than the revenues assigned to the Summary section. In many industries, leading U.S.-based firms generate a significant amount of revenues outside the U.S. or outside of their primary industry code. Likewise, a significant number of their employees may be offshore and therefore not counted here. This will be especially true in a large number of manufacturing-based industries, such as electronics and apparel.

Employment and Establishments

(Where Available)

NAIC 611300 Title Colleges, Universities and Other Higher Degree Granting Institutions Industry (U.S.)

Industry Population Analyzed, U.S.

2008 2009 2010 2011 2012 2013 2014 2015

Firms 2,424 2,448 2,189 2,226 2,282 2,391 2,415 2,439

Establishments (all major business units) 4,153 4,277 4,041 4,183 4,329 4,605 4,663 4,721

Employees 1,622,296 1,674,984 1,719,227 1,767,333 1,805,199 1,827,587 1,713,800 1,729,500

Growth Rate, Employees 9.42 % 3.25 % 2.64 % 2.80 % 2.14 % 1.24 % 6.23 % 0.92 %

` Average Annual U.S. Sales (Whole Number)

Year Per Firm Per Establishment (all major business units)

2008 $156,312,294 $91,235,492

2009 $124,538,399 $71,281,272

2010 $201,680,676 $109,249,938

2011 $225,246,631 $119,865,886

2012 $197,171,341 $103,937,399

2013 $197,357,591 $102,471,661

2014 $203,963,451 $105,640,059

2015 $209,416,001 $108,196,319

Annual Sales Per U.S. Employee (Whole Number)

Year Per Employee

2008 $233,558

2009 $182,014

2010 $256,789

2011 $283,704

2012 $249,250

2013 $258,199

2014 $287,404

2015 $295,333

Industry Financial Data, U.S. Introduction

This section of this report provides estimates and forecasts of revenues, employees and other vital statistics for an industry sector, based on NAIC industry codes.

The historical and projected total revenues stated for an industry are for U.S. business operations (but not foreign subsidiaries of U.S.-based companies). This report used Plunkett Research algorithms and analysis to estimate and forecast revenues, both historical and for the future. Factors used include GDP growth, growth trends within the specific industry, government agency reports, the latest reported results of publicly-held companies, and industry analysis.

In addition, comparisons are provided between the industry sector for total companies and for publicly-held companies that have the same NAIC code as their primary industry code.

Publicly-held company revenues: You may see much higher total revenues for the public companies as a group than for the primary industry sector itself. This is due to the fact that many companies’ financial results include revenues from other industries. (That is, their revenues reflect operations in the primary sector, plus operations in other sectors.) Also, public companies’ results may include revenues generated outside of the U.S., in addition to U.S. revenues.

Publicly-held companies’ average operating metrics: This section provides average income statement, balance sheet and cash flow items, for several years, for publicly-held, U.S.-based companies. It includes companies that have reported at least $200,000 in revenues during recent years. (We have used this criteria in order to better present benchmark data on companies with actual operations, while eliminating “development” companies, “blind pools” and emerging firms with insignificant revenues but high costs.)

Notes:

1) Publicly-held corporate data: Data availability will vary according to the reporting methods and reporting consistency of the companies involved. While publicly held companies are required by regulatory authorities to file financial reports on a continual basis, many companies fail to meet their reporting obligations in a timely manner due to various circumstances, including financial difficulties or disagreements with their auditors.

2) Industry Codes: NAIC codes (2012 North American Industry Classification codes) are used as a method of categorizing and organizing data for this report. For additional information regarding NAIC codes, see http://www.census.gov/eos/www/naics/ .

3) Scope of Details Provided: Certain data, such as number of establishments within an industry, or line-item details on expenses for an entire industrial sector, rely heavily on U.S. government agency data. The more the industry is narrowed to a small niche, the less likely it becomes that line-items will be available. Complete details are most often available for higher level NAIC codes, such as 220000 Utilities, than for niche codes, such as 222232 Electric Bulk Power Transmission. Where we believe it will best serve the end user, we have used data from the nearest related NAIC. In such cases, we have noted the NAICs covered.

Revenues, Historical and Projected

NAIC 611300 Title Colleges, Universities and Other Higher Degree Granting Institutions Industry (U.S.)

Revenues Historical (Millions of $)

2008 2009 2010 2011 2012 2013 2014 2015

Revenues $378,901 $304,870 $441,479 $501,399 $449,945 $471,882 $492,553 $510,778

Growth Rate, Revenues 9.41 % 19.54 % 44.81 % 13.57 % 10.26 % 4.88 % 4.38 % 3.70 %

Revenues Projected (Millions of $)

2016 2017 2018 2019 2020 2021 2022 2023

Revenues $525,653 $548,741 $573,481 $597,664 $620,934 $644,730 $671,607 $699,303

Growth Rate, Revenues 2.91 % 4.39 % 4.51 % 4.22 % 3.89 % 3.83 % 4.17 % 4.12 %

Average Annual Operating Ratio Estimates

Calculated on income tax filings for latest 6-year period that has been released by the Internal Revenue Service. If data is not available from IRS for this specific industry sector, then calculations are made using data for the nearest related industry code.

NAIC 611300 Title Colleges, Universities and Other Higher Degree Granting Institutions Industry (U.S.)

(Data is based on the nearest related industry, 61.)

Revenues (%)

This Industry All Industries

Total Revenues 100 % 100 %

Nonoperating Receipts as % of total revenues:

Rents 0.07 % 0.51 %

Interest 0.26 % 5.08 %

Royalties 0.18 % 0.64 %

Net Capital Gain (longterm and shortterm) 0.23 % 0.55 %

Net Gain on Noncapital Assets 0.11 % 0.31 %

Dividends 0.08 % 0.52 %

Other Income 1.08 % 4.15 %

Expenses as a % of Total Revenues

This Industry All Industries

Cost of Goods Sold 12.19 % 55.98 %

Officers Compensation 3.88 % 1.64 %

Other Salaries and Wages 29.38 % 9.45 %

Pensions, Profit Sharing and Stock Plans 0.41 % 0.60 %

Other Employee Benefits and Health Plans 2.30 % 1.23 %

Taxes Paid, General 3.23 % 1.83 %

Repairs 1.16 % 0.64 %

Bad Debts 1.93 % 0.92 %

Rent, Leases 6.74 % 1.72 %

Interest 1.70 % 3.58 %

Charitable Contributions 0.06 % 0.05 %

Advertising 5.65 % 0.95 %

Net Loss on Investments 0.16 % 0.26 %

Other Expenses 20.48 % 12.37 %

Amortization 0.87 % 0.70 %

Depreciation and Depletion 2.62 % 2.78 %

Profits and Income Taxes as a % of Total Revenues

This Industry All Industries

EBIT (Operating Earnings Before Interest and Taxes) 12.85 % 10.49 %

EBITDA (Operating Earnings Before Interest, Taxes, Depreciation & Amortization) 16.53 % 13.89 %

Net Income Before Income Taxes 7.74 % 5.52 %

Income Taxes Paid 1.74 % 1.32 %

Net Income After Tax 6.00 % 4.20 %

Benchmarks

Multiple benchmarking data sets are provided in this section of the report.

I. The first two pages in this section enable you to:

1) Compare this industry’s metrics to all industries, both in dollar amounts and as a percentage 2) Compare this industry to the total results of publicly-held, U.S.-based companies with the same primary NAIC code as this industry

II. The next portion of this section is comprised of a time series containing average operating results and financial data for publicly-held, U.S.-based firms in this industry. The data includes:

1) Six-year time series of Income Statement averages 2) Six-year time series of Balance Sheet averages 3) Six-year time series of Cash Flow statement averages

This Industry Compared to All Industries

(Latest year available 2015)

NAIC 611300 Title Colleges, Universities and Other Higher Degree Granting Institutions Industry (U.S.)

Revenues (Millions of $)

Publicly-Held, U.S. All Publicly-Held This Industry as a This Industry as a Based Companies NAIC 6113 All U.S. Based Percentage of All All Industries Percentage of All with a Primary NAIC Companies * Companies in All Publicly-Held U.S. Industries Industry Code of Industries based Companies 6113 *

Total Revenues $510,778 $32,680,362 1.56 % $10,214 $14,869,773 0.07 %

*Note: The revenues shown for All Publicly-Held Companies may exceed that shown for All Companies. This is due to the following factors. 1) The All Companies column represents this sector’s U.S. revenues only. 2) The All Publicly-Held Companies column represents total, global revenues. In many industries, publicly-held firms in total generate a significant amount of their revenues outside the U.S. 3) Likewise, a significant portion of their revenues may be generated in various, secondary industry sectors outside of the specific NAIC code discussed in this report.

Profits and Income Taxes (Millions of $)

This Industry as All PubliclyHeld a Percentage of This Industry as PubliclyHeld U.S. Based All NAIC 6113 * All Industries * a Percentage of U.S. Based Companies in PubliclyHeld All Industries * Companies in NAIC 6113 U.S. based All Industries Companies

EBITDA (Operating Earnings Before Interest, Taxes, $84,432 $4,538,793 0.25 % $1,055 $1,914,577 0.06 % Depreciation & Amortization)

Net Income Before $39,534 $1,803,418 0.30 % $567 $1,263,702 0.04 % Income Taxes

Income Taxes Paid $8,888 $432,438 0.28 % $131 $365,543 0.04 %

Net Income After $30,647 $1,370,980 0.30 % $422 $888,916 0.05 % Tax

Profits and Income Taxes (%)

All PubliclyHeld PubliclyHeld U.S. Based NAIC 6113 * All Industries * U.S. Based Companies in Companies in NAIC 6113 All Industries

EBITDA (Operating Earnings Before Interest, Taxes, 16.53 % 13.89 % 10.33 % 12.88 % Depreciation & Amortization)

Net Income Before Income Taxes 7.74 % 5.52 % 5.55 % 8.50 %

Income Taxes Paid 1.74 % 1.32 % 1.28 % 2.46 %

Net Income After Tax 6.00 % 4.20 % 4.13 % 5.98 %

Revenues are estimates. Revenues, profits and income taxes for Publicly-Held companies represent the total for U.S.-based firms that Plunkett Research categorizes as having a primary industry code within this sector. The Plunkett Research database includes approximately 7,000 active, U.S.-based publicly-traded firms.

* Profits, income taxes and EBITDA marked * (asterisk) represent estimates and forecasts based on Average Annual Operating Ratio Estimates. See the table with that name for additional information.

You may see higher total revenues for the Publicly-Held Companies group than for the All Companies group. This is due to the fact that many companies' financial results include revenues from other industry sectors. That is, their revenues reflect operations in the primary industry, plus operations in other industries. In addition, public companies' revenues often include both U.S. and non-U.S. revenues.

Companies Used in Creating This Study

NAIC 611300 Title Colleges, Universities and Other Higher Degree Granting Institutions Industry (U.S.)

(Data are in whole numbers) Revenue Revenue Company Symbol Employees City State Country NAICS 2015 2014

United American Public Education Inc NAS:APEI 3,492 $327,910,016 $350,020,000 Charles Town WV 611310 States

Apollo Education Group Inc United NAS:APOL 39,000 $2,566,277,120 $3,024,177,920 Phoenix AZ 611310 (University of Phoenix) States

United Bridgepoint Education Inc NYS:BPI 260 $561,729,024 $638,705,024 San Diego CA 611310 States

United Capella Education Co NAS:CPLA 2,944 $430,267,008 $421,967,008 Minneapolis MN 611310 States

United Career Education Corporation NAS:CECO 8,127 $847,273,024 $741,358,016 Schaumburg IL 611310 States

Downers United DeVry Education Group Inc NYS:DV 13,404 $1,909,943,040 $1,923,371,008 IL 611310 Grove States

United Education Management Corp PINX:EDMC 20,600 $2,046,873,088 $2,272,736,000 Pittsburgh PA 611310 States

United Grand Canyon Education Inc NAS:LOPE 3,600 $778,200,000 $691,054,976 Phoenix AZ 611310 States

Lincoln Educational Services United NAS:LINC 2,572 $193,220,000 $325,022,016 West Orange NJ 611310 Corporation States

National American University United NAS:NAUH 616 $117,891,000 $127,753,000 Rapid SD 611310 Holdings Inc States

United Strayer Education Inc NAS:STRA 1,455 $434,436,992 $446,040,992 Herndon VA 611310 States

Industry Results, Publicly-Held Companies (U.S.) Averages

Average of Companies Reporting $200,000 or More in Recent Revenues

NAIC 611300 Title Colleges, Universities and Other Higher Degree Granting Institutions Industry (U.S.)

Income Statement (Whole $) Note: Delays in reporting may affect latest year.

$USD, In whole 2010 Average 2011 Average 2012 Average 2013 Average 2014 Average 2015 Average numbers, of 11 of 11 of 11 of 11 of 11 of 10 except marked * or % Companies Companies Companies Companies Companies Companies

Total Revenue 1,323,921,273 1,362,264,023 1,262,887,088 1,117,409,443 996,564,178 816,714,722

Cost Of Revenue 535,524,008 551,985,636 568,155,176 532,224,352 477,165,912 377,239,494

% 40.45 40.52 44.99 47.63 47.88 46.19

Gross Profit 788,397,271 810,278,355 694,731,912 585,185,097 519,398,270 439,475,201

% 59.55 59.48 55.01 52.37 52.12 53.81

Operating Expenses

SGA Expense 468,487,000 470,408,264 470,076,465 429,463,545 382,334,815 335,357,898

% 35.39 34.53 37.22 38.43 38.37 41.06

R&D Expense

Other Operating 58,379,551 69,215,276 217,467,389 (12,869,275) 48,690,825 (15,168,433) Expenses

% 5.08 17.22 1.15 4.89 1.86

Restructuring and Merger/Acquisition 22,913,000 22,898,500 112,426,996 59,029,000 64,356,333 Costs

% 1.68 1.81 10.06 5.92 7.88

Amortization

Total Operating 526,866,551 562,536,540 710,442,354 529,021,265 490,054,641 384,545,799 Expenses

% 39.80 41.29 56.26 47.34 49.17 47.08

Operating Income 261,530,724 247,741,822 (15,710,453) 56,163,820 29,343,637 54,929,399

% 19.75 18.19 1.24 5.03 2.94 6.73

Misc Other Special (242,000) 436,000 Charges

% 0.02 0.05

Interest Expense 2,858,571 17,541,500 16,917,750 18,968,375 19,187,750 3,753,714

% 0.22 1.29 1.34 1.70 1.93 0.46

Gain On Sale Of 0 0 Security

% 0.00 0.00

Other Income (4,062,273) (569,455) (131,455) (563,273) 184,273 (177,700) (expense) Data includes estimates and forecasts. See "Data Description and Sources" section for details. 16 © Plunkett Research, Ltd. All Rights Reserved. www.plunkettresearch.com

% 0.31 0.04 0.01 0.05 0.02 0.02

PreTax Income 245,470,733 235,022,547 (27,766,096) 42,646,090 16,132,455 52,774,601

% 18.54 17.25 2.20 3.82 1.62 6.46

Income Taxes 97,642,910 95,118,365 45,131,455 33,533,455 32,188,455 11,458,900

% 7.38 6.98 3.57 3.00 3.23 1.40

Net Income from 147,827,818 139,904,183 (72,897,551) 9,106,545 (16,071,090) 41,324,701 Continuous Operations

% 11.17 10.27 5.77 0.81 1.61 5.06

Net Income for 148,481,724 145,540,274 (71,299,186) 9,146,908 (27,734,727) 39,848,701 Common Stockholders

% 11.22 10.68 5.65 0.82 2.78 4.88

Earnings per Share

Basic Earnings per 3.21 2.81 0.45 0.61 0.56 1.37 Share

Diluted Earnings 3.16 2.77 0.42 0.59 0.54 1.35 per Share

Weighted Average Shares

Basic Average 55,948,077 55,723,071 51,836,115 50,437,036 49,654,827 41,980,873 Shares

Diluted Average 56,920,906 56,542,276 52,357,039 50,802,679 50,208,578 42,376,073 Shares

Common Dividend 0.93 1.29 1.18 0.22 0.42 0.41

Other

Depreciation And 43,856,000 51,950,455 58,382,455 58,567,908 53,398,273 40,183,799 Amortization

Promotion And 60,985,000 65,808,000 76,229,000 Advertising

Research And Development

Salaries And Wages

EBITDA 306,171,824 299,304,272 42,613,453 114,693,183 83,256,364 95,385,700

% = Percentage of Total Revenues

$USD, In whole 2012 Average 2013 Average 2014 Average 2015 Average numbers, 2010 Average of 2011 Average of of 12 of 12 of 12 of 11 except marked * or 12 Companies 12 Companies Companies Companies Companies Companies %

Assets

Current Assets

Cash

Cash And Cash 244,916,501 281,423,999 235,203,419 243,288,251 228,995,923 156,554,000 Equivalents

ShortTerm 68,826,779 78,514,431 34,381,573 50,541,000 67,381,000 63,933,000 Investments

Total Cash 313,743,280 359,938,430 269,584,992 293,829,251 296,376,923 220,487,000

Receivables 89,037,082 64,897,500 76,334,249 72,520,082 69,150,583 51,659,274

Inventory 7,318,000 6,264,500 4,910,000 3,720,750 2,395,500 2,198,000

Deferred Income Taxes

Prepaid Expenses 18,926,556 21,346,900 18,295,444 19,634,300 19,189,900 19,167,778

Other Current 24,600,000 26,971,400 17,256,375 19,591,250 43,697,500 26,051,571 Assets

Total Current 477,092,909 486,564,251 444,097,253 455,183,341 448,817,255 329,217,546 Assets

% 40.87 42.44 45.55 49.02 50.02 44.94

NonCurrent Assets

Gross Property, 410,400,089 449,095,584 493,005,081 497,173,750 486,194,325 441,875,914 Plant & Equipment

Accumulated (174,254,337) (200,635,664) (238,073,083) (268,044,001) (274,292,918) (248,222,729) Depreciation

Net Property, 236,145,753 248,459,919 254,932,000 229,129,752 211,901,413 193,653,180 Plant & Equipment

% 20.23 21.67 26.15 24.68 23.62 26.43

Goodwill 651,213,315 446,595,735 230,264,880 166,258,442 144,231,668 120,832,253

Intangible Assets 186,301,400 143,943,335 105,606,124 112,217,432 98,805,857 83,288,835

Other Long Term Assets

Total Non 690,343,084 659,882,342 530,850,499 473,352,834 448,378,505 397,733,366 Current Assets

Total Assets 1,167,436,003 1,146,446,572 974,947,767 928,536,147 897,195,745 732,601,907

Liabilities and stockholders' equity

Current Liabilities

ShortTerm 86,097,998 134,908,254 192,922,508 155,456,832 137,447,139 36,184,400 Debt

Accounts 39,388,500 35,637,909 32,244,455 28,498,727 27,490,818 27,640,100 Payable

Deferred 122,352,667 107,702,084 91,069,667 83,403,090 77,672,083 80,077,000 Revenues

Accrued 90,602,372 74,211,000 76,795,001 69,815,857 74,019,997 29,647,000 Liabilities

Total Current 353,974,591 317,091,088 312,675,413 303,257,249 300,703,830 206,578,272 Liabilities

% 58.72 55.18 54.89 56.08 56.30 70.90

NonCurrent Liabilities

Long Term Debt 311,092,503 381,273,205 377,953,206 322,750,406 289,519,841 65,475,000

Deferred Tax Liability

Minority 12,467,333 3,374,333 1,339,333 378,667 2,307,667 3,337,333 Interest

Pensions & 2,816,000 6,594,000 6,901,000 1,522,000 5,299,000 5,549,000 Other Benefits

Other Non 42,384,111 39,417,001 48,843,333 54,047,401 38,056,890 38,426,251 Current Liabilities

Total Non 248,835,749 257,517,413 256,951,413 237,539,836 233,405,921 84,793,273 Current Liabilities

% 41.28 44.82 45.11 43.92 43.70 29.10

Total Liabilities 602,810,347 574,608,488 569,626,835 540,797,086 534,109,747 291,371,547

Stockholders' Equity

Common Stock 520,333 484,800 486,600 489,300 448,455 387,667

Additional Paid In 282,136,749 295,966,837 306,554,994 307,391,827 317,073,999 186,238,728 Capital

Retained Earnings 555,907,252 682,386,252 615,212,009 613,656,168 588,278,906 828,521,540

Preferred Stock 0 0 0 0 0 0

Treasury Stock (323,344,102) (484,028,804) (680,892,662) (704,078,113) (717,070,106) (768,014,881)

Total Stockholders' 564,625,672 571,838,083 405,320,913 387,739,078 363,085,997 441,230,356 Equity

Total Liabilities & Shareholders' 1,167,436,019 1,146,446,571 974,947,748 928,536,164 897,195,743 732,601,903 Equity

% = Percentage of Total Assests or % of Total Liabilities

$USD, In whole 2013 Average 2014 Average 2015 Average 2010 Average of 2011 Average of 2012 Average of numbers, of 10 of 10 of 10 10 Companies 10 Companies 10 Companies except marked * or % Companies Companies Companies

Operating Cash Flow

Net Income 143,335,899 133,469,702 34,387,777 37,112,498 35,499,100 39,386,501

Depreciation And 35,905,700 42,497,500 48,354,400 47,953,499 43,488,001 40,183,799 Amortization

Investment/Asset 65,665,500 105,465,752 56,541,800 14,684,000 13,646,500 21,936,800 Impairment

Deferred Income (15,164,600) 13,152,600 (5,368,900) 2,062,900 (2,749,000) (11,252,668) Taxes

Stock Based Compensation

Accounts Receivable (65,603,100) (38,667,000) (40,825,300) (28,310,800) (22,975,600) (26,264,300)

Cash From Discontinued Operating (5,710,000) (509,000) (160,000) Activities

Change In (442,667) 1,261,667 5,905,333 13,567,000 (374,333) 2,178,667 Inventory

Change In Account 5,486,571 (4,455,833) (437,000) (1,671,714) (3,316,571) 2,404,857 Payable

Prepaid Expenses (196,000) (4,884,000) (3,583,875) (5,964,750) 2,515,875 (5,965,375)

Accrued Liabilities 2,156,429 (14,390,500) (5,822,750) 16,837,333 (9,289,000) (10,275,000)

Income Tax Payable 394,000 (4,146,750) 3,363,600 (598,667) 6,459,333 (2,556,333)

Other Working (38,676,501) (66,220,002) (62,507,299) (25,705,800) (30,217,100) (44,838,001) Capital

Other Non 37,408,100 52,722,001 40,800,100 20,775,600 18,289,500 22,298,000 CashItems

Operating Cash 240,878,201 221,118,901 132,796,198 107,977,299 92,675,900 76,823,901 Flow

% 29.49 27.07 16.26 13.22 11.35 9.41

Cash Flow from Investing

Capital Expenditure (65,755,599) (62,171,099) (52,360,200) (44,238,600) (44,229,400) (48,556,599)

Acquisitions, net (5,708,600) (790,400) (42,160,833) 10,128,573 (22,170,667) (52,411,000)

Purchase Of (66,308,250) (94,323,333) (55,270,375) (56,875,332) (98,178,376) (60,446,750) Investments

Sales/Maturities of 61,287,124 58,834,749 70,125,876 55,767,251 85,573,833 91,042,999 Investments

Net Other Investing (23,352,001) 20,125,375 (1,468,833) (327,500) 2,603,667 (929,167) Changes

Cash Flow from (86,613,599) (43,326,999) (66,567,898) (43,949,400) (83,110,999) (52,919,998) Investing

% 10.61 5.31 8.15 5.38 10.18 6.48

Financing Cash Flow

Issuance Of Debt 113,150,803 126,010,202 159,392,504 133,947,206 129,726,202 32,433,333

Repayment Of Debt (101,983,001) (70,699,874) (86,094,499) (128,227,001) (102,761,431) (114,395,997)

Common Stock (102,398,890) (150,637,199) (114,464,502) (36,041,333) (21,556,899) (24,591,833) Repurchased

Common Stock 4,168,000 10,376,667 3,789,200 1,882,200 1,011,000 891,800 Issued

Cash Dividends Paid (16,677,750) (24,128,750) (18,872,750) (10,537,250) (9,574,400) (15,258,333)

Other Financing 4,895,300 2,928,889 (12,555,889) 3,921,444 1,485,375 (9,289,200) Activities

Financing Cash Flow (103,400,598) (142,302,998) (101,726,198) (43,880,101) (29,003,100) (97,108,697)

% 12.66 17.42 12.46 5.37 3.55 11.89

Other

Effect of Changes in Currency Exchange (1,477,667) (2,922,750) (1,184,750) (3,267,500) (196,500) (1,995,500) Rates

Net Change in Cash 50,494,501 37,203,602 (35,977,998) 31,614,601 (19,516,801) (74,582,098)

Beginning Cash 189,672,803 237,283,504 274,487,099 225,741,503 253,661,500 234,144,707 Position

End Cash Position 240,167,302 274,487,099 238,509,103 257,356,100 234,144,707 159,119,700

% = Percentage of Total Revenues

Top Companies Profiled & Ranked

This section consists of multiple data sets, designed to 1) help the user understand the financial results of the top firms within a sector, and 2) compare the results of specific top firms to their peers and to industry averages.

The data sets include:

1) A rankings page (ranks for revenues, ROE, ROA, and six additional ranks)

2) A summary listing of all U.S. companies in the Plunkett Research database that have primary NAICs for this industry sector

3) Financial results comparisons for top companies

a) this data includes income statement, balance sheet and cash flow for specific companies, latest year

b) It is broken down into groups of up to 5 companies each. The companies are listed in order of revenues.

c) The user may compare companies to each other, and to industry averages.

3) A profiles section (In-depth descriptions, executive listings and summary financial results)

Note: For some NAIC codes, there are fewer than 10 major companies reporting results that include this NAIC as their primary industry codes. In such cases, a lower number of companies will be ranked and profiled.

Data includes estimates and forecasts. See "Data Description and Sources" section for details. 23 © Plunkett Research, Ltd. All Rights Reserved. www.plunkettresearch.com Top Companies Ranked, U.S. (2015 or latest year available data) This list may include private companies in the following categories: Total Revenue, Employee Count and Net Income. Also, the list may include companies in closely related sectors. NAIC 611300 Title Colleges, Universities and Other Higher Degree Granting Institutions Industry (U.S.)

Company Ranks

Approximate Market Cap 2015 (Whole $) Employee Count

1. Apollo Education Group Inc (University of Phoenix) 2,976,578,000 1. Apollo Education Group Inc (University of Phoenix) 34,000 2. DeVry Education Group Inc 2,705,423,000 2. Education Management Corp 20,600 3. Grand Canyon Education Inc 2,143,945,000 3. DeVry Education Group Inc 13,404 4. Capella Education Co 832,401,600 4. ITT Educational Services Inc 9,900 5. Strayer Education Inc 730,523,800 5. Career Education Corporation 8,127 6. American Public Education Inc 575,792,600 6. Grand Canyon Education Inc 3,650 7. Career Education Corporation 473,045,700 7. American Public Education Inc 3,492 8. Bridgepoint Education Inc 466,310,900 8. Western Governors University 3,416 9. ITT Educational Services Inc 173,529,200 9. Capella Education Co 2,887 10. National American University Holdings Inc 82,866,960 10. Lincoln Educational Services Corporation 2,572

Total Revenue (Whole $) Net Income (Whole $)

1. Apollo Education Group Inc (University of Phoenix) 2,566,277,120 1. Grand Canyon Education Inc 131,411,000 2. Education Management Corp 2,046,873,088 2. Career Education Corporation 51,885,000 3. DeVry Education Group Inc 1,909,943,040 3. Capella Education Co 40,188,000 4. ITT Educational Services Inc 849,825,984 4. Strayer Education Inc 40,023,000 5. Career Education Corporation 847,273,024 5. American Public Education Inc 32,414,000 6. Grand Canyon Education Inc 778,200,000 6. Apollo Education Group Inc (University of Phoenix) 29,755,000 7. Bridgepoint Education Inc 561,729,024 7. ITT Educational Services Inc 23,298,000 8. Strayer Education Inc 434,436,992 8. DeVry Education Group Inc (3,166,000) 9. Capella Education Co 430,267,008 9. Lincoln Educational Services Corporation (3,350,000) 10. American Public Education Inc 327,910,016 10. Broadview Institute Inc (4,883,630)

3Year Revenue Growth (%) 3Year Income Growth (%)

1. Grand Canyon Education Inc 15 1. Grand Canyon Education Inc 24 2. American Public Education Inc 2 2. Capella Education Co 3 3. Capella Education Co 1 3. American Public Education Inc (9) 4. DeVry Education Group Inc (2) 4. Strayer Education Inc (15) 5. Education Management Corp (8) 5. ITT Educational Services Inc (45) 6. Strayer Education Inc (8) 6. Apollo Education Group Inc (University of Phoenix) (59) 7. National American University Holdings Inc (9) 8. ITT Educational Services Inc (13) 9. Apollo Education Group Inc (University of Phoenix) (15) 10. Bridgepoint Education Inc (17)

Return on Assets (%) Return on Equity (%)

1. Capella Education Co 16 1. Strayer Education Inc 34 2. Grand Canyon Education Inc 16 2. Grand Canyon Education Inc 24 3. Strayer Education Inc 14 3. Capella Education Co 20 4. American Public Education Inc 11 4. Career Education Corporation 17 5. Career Education Corporation 9 5. ITT Educational Services Inc 15 6. ITT Educational Services Inc 3 6. American Public Education Inc 14 7. Apollo Education Group Inc (University of Phoenix) 1 7. Apollo Education Group Inc (University of Phoenix) 3 8. DeVry Education Group Inc 0 8. DeVry Education Group Inc 0 9. Lincoln Educational Services Corporation (2) 9. Lincoln Educational Services Corporation (4) 10. National American University Holdings Inc (7) 10. National American University Holdings Inc (11)

Return on Invested Capital (%)

1. Strayer Education Inc 36 2. Grand Canyon Education Inc 21 3. Capella Education Co 20 4. Career Education Corporation 16 5. American Public Education Inc 14 6. ITT Educational Services Inc 11 7. Lincoln Educational Services Corporation 2 8. Apollo Education Group Inc (University of Phoenix) 2 9. DeVry Education Group Inc 0 10. National American University Holdings Inc (8)

Data includes estimates and forecasts. See "Data Description and Sources" section for details. 24 © Plunkett Research, Ltd. All Rights Reserved. www.plunkettresearch.com Compare Top Publicly-Held Companies to Industry Average, 2015

NAIC 611300 Title Colleges, Universities and Other Higher Degree Granting Institutions Industry (U.S.)

Group Number 1 Income Statement (Whole $), % = Percent of Total Revenues

Apollo Education $USD, In whole numbers, Group Inc (University DeVry Education Career Education Grand Canyon Industry Average of except marked * or % of Group Inc Corporation Education Inc 10 Companies Phoenix)

Total Revenue 2,566,277,120 1,909,943,040 847,273,024 778,200,000 816,714,722

Cost Of Revenue 1,207,534,976 1,000,054,976 289,776,992 329,651,008 377,239,494

% 47.05 52.36 34.20 42.36 46.19

Gross Profit 1,358,742,016 909,888,000 557,496,000 448,548,992 439,475,201

% 52.95 47.64 65.80 57.64 53.81

Operating Expenses

SGA Expense 971,188,992 708,284,992 564,211,008 238,188,000 335,357,898

% 37.84 37.08 66.59 30.61 41.06

Other Operating Expenses 272,609,024 44,692,992 85,452,992 0 49,187,901

% 10.62 2.34 10.09 0.00 6.02

Total Operating Expenses 1,243,798,016 752,977,984 649,664,000 238,188,000 384,545,799

% 48.47 39.42 76.68 30.61 47.08

Operating Income 114,944,000 156,910,000 (92,168,000) 210,360,992 54,929,399

% 4.48 8.22 10.88 27.03 6.73

Misc Other Special Charges 436,000 436,000

% 0.05 0.05

Interest Expense 6,595,000 5,313,000 835,000 1,354,000 3,753,714

% 0.26 0.28 0.10 0.17 0.46

Gain On Sale Of Security

Other Income (expense) (5,756,000) 0 (2,229,000) 0 (177,700)

% 0.22 0.00 0.26 0.00 0.02

PreTax Income 105,643,000 153,660,000 (94,438,000) 209,007,008 52,774,601

% 4.12 8.05 11.15 26.86 6.46

Income Taxes 58,163,000 18,537,000 (147,454,000) 77,596,000 11,458,900

% 2.27 0.97 17.40 9.97 1.40

Net Income from Continuous Operations 47,480,000 135,123,008 53,016,000 131,411,000 41,324,701

% 1.85 7.07 6.26 16.89 5.06

Net Income for Common Stockholders 29,755,000 139,899,008 51,885,000 131,411,000 39,848,701

% 1.16 7.32 6.12 16.89 4.88

Earnings per Share

Basic Earnings per Share 0.28 2.17 0.76 2.86 1.37

Diluted Earnings per Share 0.27 2.14 0.76 2.78 1.35

Weighted Average Shares

Basic Average Shares 108,092,000 64,546,000 67,860,000 45,975,000 41,980,873

Diluted Average Shares 109,038,000 65,277,000 68,328,000 47,281,000 42,376,073

Common Dividend 0.36 0.41

Other

Depreciation And Amortization 154,708,992 85,008,000 24,938,000 35,675,000 40,183,799

Research And Development

Salaries And Wages

EBITDA 266,947,008 243,980,992 (68,665,000) 246,036,000 95,385,700 Data includes estimates and forecasts. See "Data Description and Sources" section for details. 25 © Plunkett Research, Ltd. All Rights Reserved. www.plunkettresearch.com

Balance Sheet (Whole $), % = Percent of Total Assets or Total Liabilities

Assets

Current Assets

Cash

Cash And Cash Equivalents 503,704,992 353,022,016 66,919,000 23,036,000 159,119,700

ShortTerm Investments 194,676,000 3,579,000 114,901,000 83,364,000 63,933,000

Total Cash 698,380,992 356,601,016 181,820,000 106,400,000 223,052,700

Receivables 198,459,008 139,163,008 36,812,000 12,250,000 51,941,502

Inventory 3,353,000 2,198,000

Deferred Income Taxes 68,475,000 41,458,000 6,448,000 25,086,000

Prepaid Expenses 38,371,000 53,092,000 14,380,000 18,760,125

Other Current Assets 89,720,000 2,777,000 20,863,000 28,980,167

Total Current Assets 1,291,774,976 601,057,024 288,963,008 221,344,992 337,829,501

% 58.59 28.98 47.30 24.64 45.69

NonCurrent Assets

Gross Property, Plant & Equipment 1,126,999,040 1,093,004,032 507,164,992 812,561,984 448,201,304

Accumulated Depreciation (756,718,016) (547,129,984) (448,916,000) (145,079,008) (249,399,202)

Net Property, Plant & Equipment 370,280,992 545,873,984 58,249,000 667,483,008 198,802,098

% 16.79 26.32 9.53 74.29 26.88

Goodwill 247,190,000 552,329,024 87,356,000 2,941,000 120,832,253

Intangible Assets 143,244,000 323,731,008 9,300,000 83,288,835

Total Non Current Assets 913,020,032 1,473,136,000 321,952,000 677,084,992 401,631,202

Total Assets 2,204,794,880 2,074,193,024 610,915,008 898,430,016 739,460,696

Liabilities and stockholders' equity

Current Liabilities

ShortTerm Debt 14,080,000 38,000,000 6,625,000 17,176,250

Accounts Payable 64,100,000 63,083,000 25,906,000 34,149,000 24,072,000

Deferred Revenues 432,420,000 90,232,000 40,112,000 37,876,000 76,710,800

Accrued Liabilities 223,984,000 168,594,000 74,659,000 31,741,000 70,364,889

Total Current Liabilities 832,344,000 321,908,992 192,804,992 188,534,000 194,225,398

% 78.51 65.78 70.55 65.42 71.88

Long Term Debt 31,566,000 73,252,000 46,490,333

Deferred Tax Liability 11,460,000 56,092,000 21,303,000 18,264,000

Pensions & Other Benefits 5,549,000

Minority Interest 500,000 9,620,000 3,337,333

Other Non Current Liabilities 184,367,008 34,573,000 4,302,000 36,724,001

Total Non Current Liabilities 227,892,992 167,474,000 80,500,000 99,645,000 75,995,499

% 21.49 34.22 29.45 34.58 28.12

Total Liabilities 1,060,236,992 489,383,008 273,304,992 288,179,008 270,220,900

Common Stock 760,000 830,000 503,000 389,750

Additional Paid In Capital 104,000 350,256,000 610,784,000 177,167,008 186,746,601

Retained Earnings 5,153,452,032 1,796,360,960 (57,518,000) 502,401,984 812,651,397

Preferred Stock 0 0

Treasury Stock (3,928,419,072) (485,452,992) (215,606,000) (69,332,000) (734,027,722)

Total Stockholders' Equity 1,144,557,952 1,584,809,984 337,609,984 610,251,008 469,239,791

Total Liabilities & Shareholders' Equity 2,204,794,944 2,074,192,992 610,914,976 898,430,016 739,460,691

Cash Flow (Whole $), % = Percent of Total Revenues

Operating Cash Flow

Net Income 24,295,000 140,699,008 51,885,000 131,411,000 39,386,501

Investment/Asset Impairment 1,780,000 60,515,000 21,936,800

Deferred Income Taxes 2,752,000 3,563,000 (145,807,008) 4,576,000 (11,252,668)

Depreciation And Amortization 154,708,992 85,008,000 24,938,000 35,675,000 40,183,799

Cash From Discontinued Operating (160,000) (160,000) Activities

Stock Based Compensation

Accounts Receivable (74,475,000) (96,534,000) (8,166,000) (17,313,000) (26,264,300)

Change In Inventory 6,160,000 2,178,667

Change In Account Payable 1,994,000 10,830,000 2,539,000 5,002,000 2,404,857

Prepaid Expenses (4,352,000) (19,716,000) (2,351,000) (5,965,375)

Accrued Liabilities (24,725,000) (31,104,000) (5,772,000) (10,275,000)

Income Tax Payable (4,965,000) (2,556,333)

Other Working Capital (143,098,000) (141,855,008) (40,510,000) (25,716,000) (44,838,001)

Other Non CashItems 38,433,000 24,768,000 63,372,000 7,621,000 22,298,000

Operating Cash Flow 168,582,000 203,107,008 (21,686,000) 173,900,000 76,823,901

% 6.57 10.63 2.56 22.35 9.41

Cash Flow from Investing

Capital Expenditure (97,961,000) (88,707,000) (11,695,000) (218,300,992) (48,556,599)

Acquisitions, Net (31,705,000) (73,117,000) (52,411,000)

Purchase Of Investments (232,700,000) (158,000) (94,728,000) (48,122,000) (60,446,750)

Sales/Maturities of Investments 212,692,992 100,173,000 65,542,000 91,042,999

Net Other Investing Changes (4,628,000) 6,100,000 (1,741,000) (929,167)

Cash Flow from Investing (154,300,992) (155,882,000) (7,991,000) (200,880,992) (52,919,998)

% 6.01 8.16 0.94 25.81 6.48

Financing Cash Flow

Issuance Of Debt 5,800,000 38,000,000 32,433,333

Repayment Of Debt (614,734,976) (5,978,000) (10,000,000) (6,784,000) (114,395,997)

Common Stock Issued 1,538,000 1,204,000 1,401,000 891,800

Common Stock Repurchased (44,723,000) (25,918,000) (15,562,000) (24,591,833)

Other Financing Activities (72,620,000) (3,519,000) (26,883,000) 3,636,000 (9,289,200)

Financing Cash Flow (724,739,968) (48,613,000) 2,518,000 (15,221,000) (97,108,697)

Cash Dividends Paid (23,230,000) (15,258,333)

% 28.24 2.55 0.30 1.96 11.89

Effect of Changes in Currency Exch Rates (4,429,000) (3,778,000) 246,000 (1,995,500)

Net Change in Cash (720,678,976) (5,166,000) (26,913,000) (42,202,000) (74,582,098)

Beginning Cash Position 1,228,813,056 358,188,000 93,832,000 65,238,000 234,144,707

End Cash Position 503,704,992 353,022,016 66,919,000 23,036,000 159,119,700

Operating Cash Flow 168,582,000 203,107,008 (21,686,000) 173,900,000 76,823,901

Free Cash Flow 70,621,000 114,400,000 (33,381,000) (44,401,000) 28,267,300

% 2.75 5.99 3.94 5.71 3.46

Compare Top Companies to Industry Average Continued, Group Number 2

Income Statement (Whole $), % = Percent of Total Revenues

Lincoln $USD, In whole numbers, Bridgepoint Strayer Education Capella Education American Public Educational Industry Average except marked * or % Education Inc Inc Co Education Inc Services of 10 Companies Corporation

Total Revenue 561,729,024 434,436,992 430,267,008 327,910,016 193,220,000 816,714,722

Cost Of Revenue 281,496,000 234,096,992 189,852,000 118,848,000 92,165,000 377,239,494

% 50.11 53.89 44.12 36.24 47.70 46.19

Gross Profit 280,232,992 200,340,000 240,415,008 209,062,000 101,055,000 439,475,201

% 49.89 46.11 55.88 63.76 52.30 53.81

Operating Expenses

SGA Expense 254,172,000 130,642,000 173,382,000 136,260,992 98,319,000 335,357,898

% 45.25 30.07 40.30 41.55 50.88 41.06

Other Operating Expenses 68,356,000 0 0 20,520,000 1,958,000 49,187,901

% 12.17 0.00 0.00 6.26 1.01 6.02

Total Operating Expenses 322,528,000 130,642,000 173,382,000 156,780,992 100,277,000 384,545,799

% 57.42 30.07 40.30 47.81 51.90 47.08

Operating Income (42,295,000) 69,698,000 67,033,000 52,281,000 778,000 54,929,399

% 7.53 16.04 15.58 15.94 0.40 6.73

Misc Other Special Charges 436,000

% 0.05

Interest Expense 3,850,000 7,438,000 3,753,714

% 0.89 3.85 0.46

Gain On Sale Of Security

Other Income (expense) 2,106,000 0 (218,000) 0 4,142,000 (177,700)

% 0.37 0.00 0.05 0.00 2.14 0.02

PreTax Income (40,189,000) 66,131,000 66,815,000 52,396,000 (2,466,000) 52,774,601

% 7.15 15.22 15.53 15.98 1.28 6.46

Income Taxes 30,265,000 26,108,000 26,627,000 20,072,000 242,000 11,458,900

% 5.39 6.01 6.19 6.12 0.13 1.40

Net Income from Continuous Operations (70,454,000) 40,023,000 40,188,000 32,414,000 (2,708,000) 41,324,701

% 12.54 9.21 9.34 9.89 1.40 5.06

Net Income for Common Stockholders (70,454,000) 40,023,000 40,188,000 32,414,000 (3,350,000) 39,848,701

% 12.54 9.21 9.34 9.89 1.73 4.88

Earnings per Share

Basic Earnings per Share 1.54 3.78 3.33 1.94 0.14 1.37

Diluted Earnings per Share 1.54 3.73 3.27 1.93 0.14 1.35

Weighted Average Shares

Basic Average Shares 45,665,000 10,588,000 12,079,000 16,676,000 23,167,000 41,980,873

Diluted Average Shares 45,665,000 10,740,000 12,301,000 16,798,000 23,167,000 42,376,073

Common Dividend 0.00 1.50 0.00 0.41

Other

Depreciation And Amortization 19,578,000 18,104,000 22,673,000 20,520,000 14,506,000 40,183,799

Research And Development

Salaries And Wages

EBITDA (22,717,000) 88,085,000 89,706,000 72,801,000 19,478,000 95,385,700

Balance Sheet (Whole $), % = Percent of Total Assets or Total Liabilities

Lincoln $USD, In whole numbers, Bridgepoint Strayer Capella American Public Educational Industry Average except marked * or % Education Inc Education Inc Education Co Education Inc Services of 10 Companies Corporation

Assets

Current Assets

Cash

Cash And Cash Equivalents 282,144,992 106,889,000 88,027,000 105,734,000 38,420,000 159,119,700

ShortTerm Investments 19,387,000 27,522,000 63,933,000

Total Cash 301,531,992 106,889,000 115,549,000 105,734,000 38,420,000 223,052,700

Receivables 61,993,000 18,519,000 19,136,000 7,917,000 9,613,000 51,941,502

Inventory 1,043,000 2,198,000

Deferred Income Taxes 6,714,000 25,086,000

Prepaid Expenses 13,845,000 14,581,000 10,746,000 2,915,000 18,760,125

Other Current Assets 1,220,000 13,390,000 45,911,000 28,980,167

Total Current Assets 403,275,008 138,798,000 149,266,000 131,111,000 105,264,000 337,829,501

% 79.58 55.87 59.62 43.14 50.06 45.69

NonCurrent Assets

Gross Property, Plant & Equipment 87,117,000 219,734,000 191,500,992 186,043,008 188,544,992 448,201,304

Accumulated Depreciation (65,375,000) (142,595,008) (156,739,008) (76,762,000) (122,037,000) (249,399,202)

Net Property, Plant & Equipment 21,742,000 77,139,000 34,762,000 109,281,000 66,508,000 198,802,098

% 4.29 31.05 13.89 35.96 31.63 26.88

Goodwill 6,800,000 16,872,000 38,634,000 14,536,000 120,832,253

Intangible Assets 21,265,000 1,389,000 83,288,835

Total Non Current Assets 103,491,000 109,636,000 101,089,000 172,784,992 105,015,000 401,631,202

Total Assets 506,766,016 248,434,000 250,355,008 303,896,000 210,279,008 739,460,696

Liabilities and stockholders' equity

Current Liabilities

ShortTerm Debt 10,000,000 17,176,250

Accounts Payable 4,762,000 2,275,000 6,264,000 12,863,000 24,072,000

Deferred Revenues 88,756,000 12,373,000 12,763,000 29,727,000 21,390,000 76,710,800

Accrued Liabilities 74,418,000 26,177,000 14,808,000 12,157,000 70,364,889

Total Current Liabilities 167,952,000 57,591,000 46,039,000 50,799,000 71,446,000 194,225,398

% 82.69 54.55 87.73 76.11 55.26 71.88

Long Term Debt 34,653,000 46,490,333

Deferred Tax Liability 1,502,000 15,944,000 18,264,000

Pensions & Other Benefits 5,549,000 5,549,000

Minority Interest 3,337,333

Other Non Current Liabilities 15,046,000 3,061,000 9,672,000 36,724,001

Total Non Current Liabilities 35,164,000 47,987,000 6,437,000 15,944,000 57,836,000 75,995,499

% 17.31 45.45 12.27 23.89 44.74 28.12

Total Liabilities 203,116,000 105,578,000 52,476,000 66,743,000 129,282,000 270,220,900

Common Stock 634,000 110,000 118,000 160,000 389,750

Additional Paid In Capital 188,863,008 24,738,000 114,849,000 173,700,000 168,668,992 186,746,601

Retained Earnings 451,320,992 118,008,000 83,184,000 63,293,000 2,260,000 812,651,397

Preferred Stock 0 0 0

Treasury Stock (337,068,992) 0 0 0 (82,860,000) (734,027,722)

Total Stockholders' Equity 303,649,984 142,856,000 197,879,008 237,152,992 80,997,000 469,239,791

Total Liabilities & Shareholders' Equity 506,765,984 248,434,000 250,355,008 303,895,992 210,279,000 739,460,691

Cash Flow (Whole $), % = Percent of Total Revenues

Operating Cash Flow

Net Income (70,454,000) 40,023,000 40,188,000 32,414,000 (3,350,000) 39,386,501

Investment/Asset Impairment 46,277,000 896,000 216,000 21,936,800

Deferred Income Taxes 40,944,000 (4,006,000) (1,602,000) (160,000) (11,252,668)

Depreciation And Amortization 19,578,000 18,104,000 22,673,000 20,520,000 14,506,000 40,183,799

Cash From Discontinued Operating (160,000) Activities

Stock Based Compensation

Accounts Receivable (31,244,000) (1,991,000) (15,614,000) 242,000 (13,216,000) (26,264,300)

Change In Inventory 9,000 2,178,667

Change In Account Payable (4,765,000) 1,004,000 2,404,857

Prepaid Expenses (14,446,000) (3,374,000) (4,405,000) 974,000 (5,965,375)

Accrued Liabilities 738,000 (450,000) (10,275,000)

Income Tax Payable 284,000 (2,988,000) (2,556,333)

Other Working Capital (66,356,000) 11,960,000 (24,683,000) (2,268,000) (10,318,000) (44,838,001)

Other Non CashItems 56,002,000 10,817,000 9,344,000 5,978,000 1,898,000 22,298,000

Operating Cash Flow 26,715,000 76,898,000 60,327,000 57,211,000 14,337,000 76,823,901

% 4.76 17.70 14.02 17.45 7.42 9.41

Cash Flow from Investing

Capital Expenditure (4,630,000) (12,692,000) (20,641,000) (27,267,000) (2,218,000) (48,556,599)

Acquisitions, Net (52,411,000)

Purchase Of Investments (20,280,000) (33,574,000) (3,871,000) (60,446,750)

Sales/Maturities of Investments 76,197,000 30,175,000 91,042,999

Net Other Investing Changes (6,665,000) (199,000) (929,167)

Cash Flow from Investing 44,622,000 (12,692,000) (24,040,000) (31,337,000) (1,767,000) (52,919,998)

% 7.94 2.92 5.59 9.56 0.91 6.48

Financing Cash Flow

Issuance Of Debt 53,500,000 32,433,333

Repayment Of Debt (118,750,000) (44,319,000) (114,395,997)

Common Stock Issued 261,000 55,000 891,800

Common Stock Repurchased (26,006,000) (35,310,000) (24,591,833)

Other Financing Activities 3,260,000 (850,000) 439,000 (519,000) 4,370,000 (9,289,200)

Financing Cash Flow 3,805,000 (119,600,000) (42,242,000) (35,774,000) 13,551,000 (97,108,697)

Cash Dividends Paid (18,012,000) (15,258,333)

% 0.68 27.53 9.82 10.91 7.01 11.89

Effect of Changes in Currency Exch Rates (21,000) (1,995,500)

Net Change in Cash 75,142,000 (55,394,000) (5,976,000) (9,900,000) 26,121,000 (74,582,098)

Beginning Cash Position 207,003,008 162,283,008 94,003,000 115,634,000 12,299,000 234,144,707

End Cash Position 282,144,992 106,889,000 88,027,000 105,734,000 38,420,000 159,119,700

Operating Cash Flow 26,715,000 76,898,000 60,327,000 57,211,000 14,337,000 76,823,901

Free Cash Flow 22,085,000 64,206,000 39,686,000 29,944,000 12,119,000 28,267,300

% 3.93 14.78 9.22 9.13 6.27 3.46

Data includes estimates and forecasts. See "Data Description and Sources" section for details. 30 © Plunkett Research, Ltd. All Rights Reserved. www.plunkettresearch.com Top Companies, Profiles and Financials

NAIC 611300 Title Colleges, Universities and Other Higher Degree Granting Institutions Industry (U.S.)

Top Companies Include:

Rank Company Ticker ExchangeID Revenues (Whole Numbers) 2015 or latest year available 1 Apollo Education Group Inc (University of Phoenix) APOL NAS $2,566,277,120 2 Education Management Corp EDMC PINX $2,046,873,088 3 DeVry Education Group Inc DV NYS $1,909,943,040 4 ITT Educational Services Inc ESI NYS $849,825,984 5 Career Education Corporation CECO NAS $847,273,024 6 Grand Canyon Education Inc LOPE NAS $778,200,000 7 Bridgepoint Education Inc BPI NYS $561,729,024 8 Strayer Education Inc STRA NAS $434,436,992 9 Capella Education Co CPLA NAS $430,267,008 10 American Public Education Inc APEI NAS $327,910,016

Company Profile

APOLLO EDUCATION GROUP INC (UNIVERSITY OF PHOENIX) (WWW.APOLLO.EDU)

Ticker: APOL Phone: 480 9665394 Exchange: NAS Fax: 480 9297499 Year Established: 1981 Address: 4025 South Riverpoint Parkway Employees: 44,000 Phoenix, AZ 85040 United States Fiscal Year Ends in August

Types Of Business Industry Rank for Total Revenue for Closely Related Companies

Industry NAICS code: 611310 1. Apollo Education Group Inc (University of Phoenix) 2,566,277,120 2. Education Management Corp 2,046,873,088 3. DeVry Education Group Inc 1,909,943,040 UniversityLevel Education 4. ITT Educational Services Inc 849,825,984 Continuing Education 5. Career Education Corporation 847,273,024 Online University Courses 6. Grand Canyon Education Inc 778,200,000 Adult Education 7. Bridgepoint Education Inc 561,729,024 8. Strayer Education Inc 434,436,992 9. Capella Education Co 430,267,008 10. American Public Education Inc 327,910,016

Contacts Description

Apollo Education Group, Inc., through its subsidiaries, is a provider of Gregory Cappelli CEO/Director higher education for working adults. Programs are accessible on campus Gregory Iverson CFO/Chief Accounting Officer/Controller or through online systems and include associates, bachelors, masters /Senior VP and doctoral level degrees in addition to other professional certification Peter Sperling Chairman of the Board/Director programs. The company’s educational programs and services are offered J. Bowling COO/Senior VP through its whollyowned subsidiaries, which include The University of Richard Dozer Director Phoenix, Inc., which operates primarily in the U.S.; Apollo Global, Inc., Ann Kirschner Director which offers educational programs outside the U.S; The College for Roy Herberger Director Financial Planning Institutes Corporation (CFFP); Western International Manuel Rivelo Director University, Inc.; BPP Holdings Limited (BPP); Universidad de Artes, Matthew Carter Director Ciencias y Comunicacion (UNIACC); Universidad Latinoamericana (ULA); Darby Shupp Director India Education Services Private Ltd.; Open Colleges Australia Pty Ltd.; Robert Murley Director and Apollo Professional Development. The firm offers its educational Allen Weiss Director programs worldwide through its online education delivery system and at Dana Born Director its campus locations and learning centers in the U.S. and Puerto Rico. Terri Bishop Director/Vice Chairman of the Board The University of Phoenix accounted for 84% of Apollo's revenues. In Sean Martin General Counsel/Secretary/Senior VP December 2015, the firm, through its whollyowned subsidiary Apollo Frederick Newton Other Executive Officer/Senior VP Global, Inc. acquired Career Partner GmbH (CPG), a leading full service Curtis Uehlein President, Subsidiary provider of human resource development and private higher education Timothy Slottow President, Subsidiary in Germany.

Auditor: Deloitte & Touche LLP Legal Advisor: Quarles & Brady LLP

Financials

$USD, In whole numbers, 2015 2014 2013 2012 2011 2010 except marked * or % Financials Revenue 2,566,277,000 3,024,178,000 3,681,310,000 4,253,337,000 4,733,022,000 4,925,819,000 Cost of Revenue 1,207,535,000 1,301,004,000 1,579,464,000 1,800,569,000 1,774,087,000 2,125,082,000 Gross Margin % 52.95 56.98 57.10 57.67 62.52 56.86 R&D Expense Operating Income 114,944,000 338,971,000 427,414,000 676,337,000 961,244,000 1,010,724,000 Operating Margin % 4.48 11.21 11.61 15.90 20.31 20.52 SGA Expense 971,189,000 1,060,729,000 1,254,876,000 1,391,677,000 1,426,499,000 1,427,461,000 Net Income 29,755,000 209,304,000 248,526,000 422,678,000 572,427,000 553,002,000 Earnings Per Share 0.28 1.88 2.20 3.48 4.05 3.64 Dividends Book Value Per Share 10.55 10.89 9.92 9.05 10.47 10.01 Operating Cash Flow 168,582,000 375,907,000 478,048,000 551,300,000 897,122,000 1,045,070,000 Capital Expenditure 97,961,000 100,666,000 119,348,000 115,187,000 162,573,000 168,177,000 Free Cash Flow 70,621,000 275,241,000 358,700,000 436,113,000 734,549,000 876,893,000 Profitability EBITDA 266,947,000 491,229,000 593,467,000 856,234,000 1,121,884,000 1,146,636,000 Return on Assets % 1.12 6.87 8.47 13.77 16.66 16.11 Return on Equity % 2.56 18.22 24.29 38.98 44.09 44.00 Net Margin % 1.16 6.92 6.75 9.94 12.09 11.23 Assets Turnover 0.97 0.99 1.26 1.39 1.38 1.44 Debt Equity Ratio 0.03 0.04 0.06 0.09 0.14 0.12

Brands, Divisions and Affiliates Top Salaries

University of Phoenix Inc (The) Western International University Inc Name Title Salary (US$) Bonus Universidad de Artes, Ciencias y Comunicacion (US$) Apollo Global Inc Curtis Uehlein President, Subsidiary 373,301 741,000 Universidad Latinoamericana (ULA) Sean Martin General Counsel/Senior 540,000 458,333 BPP Holdings Limited VP India Education Services Private Ltd Brian Swartz CFO/Senior VP 515,000 375,000 Career Partner GmbH Gregory Cappelli CEO 800,000 Peter Sperling Chairman of the Board 700,000

Other Thoughts Corporate Culture

Estimated Female Officers or Directors:5 The firm offers employees medical, prescription, life, disability, dental and vision insurance; flexible spending accounts; a 401(k) plan; a stock purchase plan; backup daycare; adoption assistance; an education tuition program; and a college savings plan.

Company Profile

EDUCATION MANAGEMENT CORP (WWW.EDMC.COM)

Ticker: EDMC Phone: 412 5620900 Exchange: PINX Fax: 412 5620598 Year Established: 1962 Address: 210 Sixth Avenue Employees: 23,400 33rd Floor Fiscal Year Ends in June Pittsburgh, PA 15222 United States

Types Of Business Industry Rank for Total Revenue for Closely Related Companies

Industry NAICS code: 611310 1. Apollo Education Group Inc (University of Phoenix) 2,566,277,120 2. Education Management Corp 2,046,873,088 3. DeVry Education Group Inc 1,909,943,040 Private Colleges 4. ITT Educational Services Inc 849,825,984 5. Career Education Corporation 847,273,024 6. Grand Canyon Education Inc 778,200,000 7. Bridgepoint Education Inc 561,729,024 8. Strayer Education Inc 434,436,992 9. Capella Education Co 430,267,008 10. American Public Education Inc 327,910,016

Contacts Description

Education Management Corporation is a provider of postsecondary Edward west CEO/Director/President education in North America offering academic programs to its students Mick Beekhuizen CFO/Executive VP through campusbased and online instruction, or through a combination Carol Dibattiste Chief Administrative Officer/Executive of both. Currently, the firm has 110 location in 32 U.S. states and VP/Other Executive Officer Canada with 23,000 fulltime, parttime and adjunct faculty and staff Mark Miko Chief Information Officer/Senior VP serving over 125,500 students. The firm’s educational institutions, Timothy Moscato COO, Divisional typically located in large and diverse markets, offers students the Brian Napack Director opportunity to earn undergraduate and graduate degrees, including John McKernan Director doctoral degrees, and certain specialized nondegree diplomas in a Peter Wilde Director broad range of disciplines. These disciplines include design, media arts, Leo Mullin Director health sciences, psychology and behavioral sciences, culinary, fashion, Samuel Cowley Director business, legal, and education and information technology. Its schools Jeffrey Leeds Director comprise a national education platform that is designed to address the Paul Salem Director needs of a broad market, taking into consideration various factors that Adrian Jones Director influence demand, such as programmatic and degree interest, James Hobby Executive VP, Divisional employment opportunities, requirements for credentials in certain Joan Walker Executive VP, Divisional professions, demographics, tuition pricing points and economic J. Kramer General Counsel/Secretary/Senior VP conditions. The firm’s schools are organized and managed to capitalize Craig Swenson Other Corporate Officer on recognized brands and align them with specific targeted markets John Kline Other Corporate Officer/President, based on field of study, employment opportunity, type of degree Divisional/Senior VP, Divisional offering and student demographics. Schools include: The Art Institutes, John South Other Corporate Officer/Senior VP Argosy University, Brown Mackie Colleges and South University. Donna Bucella Other Executive Officer/Senior VP, Divisional Danny Finuf President, Divisional Charles Restivo President, Divisional John Mazzoni President, Divisional/Senior VP, Divisional Anthony Guida Senior VP, Divisional Mark Novad Senior VP, Divisional Jack Bowen Senior VP/Chief Marketing Officer

Auditor: Ernst & Young LLP Legal Advisor:

Financials

$USD, In whole numbers, 2014 2013 2012 2011 2010 2009 except marked * or % Financials Revenue 2,272,736,000 2,498,599,000 2,760,967,000 2,887,629,000 2,508,521,000 2,011,458,000 Cost of Revenue 1,373,699,000 1,447,097,000 1,504,378,000 1,480,776,000 1,267,106,000 1,067,724,000 Gross Margin % 39.56 42.08 45.51 48.72 49.49 46.92 R&D Expense Operating Income (489,247,000) (126,043,000) (1,409,680,000) 501,274,000 418,810,000 318,770,000 Operating Margin % 21.53 5.04 51.06 17.36 16.70 15.85 SGA Expense 667,567,000 689,143,000 760,841,000 759,099,000 699,246,000 512,675,000 Net Income (663,917,000) (267,976,000) (1,515,741,000) 229,508,000 168,506,000 104,405,000 Earnings Per Share 5.29 2.15 11.97 1.67 1.23 0.87 Dividends Book Value Per Share 2.26 1.96 4.20 16.42 15.60 13.53 Operating Cash Flow 70,646,000 191,307,000 (10,850,000) 399,733,000 307,115,000 293,398,000 Capital Expenditure 73,760,000 83,241,000 93,546,000 138,105,000 175,782,000 150,713,000 Free Cash Flow (3,114,000) 108,066,000 (104,396,000) 261,628,000 131,333,000 142,685,000 Profitability EBITDA (336,746,000) 33,437,000 (1,260,491,000) 636,386,000 542,169,000 431,059,000 Return on Assets % 31.67 10.40 41.00 5.06 3.83 2.49 Return on Equity % 71.78 116.57 10.98 9.46 7.26 Net Margin % 29.21 10.73 54.90 7.95 6.72 5.19 Assets Turnover 1.08 0.97 0.75 0.64 0.57 0.48 Debt Equity Ratio 5.09 2.93 0.70 0.74 1.26

Brands, Divisions and Affiliates Top Salaries

The Art Institutes Argosy University Name Title Salary (US$) Bonus Brown Mackie Colleges (US$) South University Todd Nelson CEO 661,117 Edward West CEO/President 568,007 John Mazzoni President, 393,899 Divisional/Senior VP, Divisional Danny Finuf President, 377,477 Divisional/Senior VP, Divisional Randall Killeen CFO/Vice President 277,701

Other Thoughts Corporate Culture

Estimated Female Officers or Directors:3

Company Profile

DEVRY EDUCATION GROUP INC (WWW.DEVRYINC.COM)

Ticker: DV Phone: 630 5157700 Exchange: NYS Fax: 630 5710317 Year Established: Address: 3005 Highland Parkway Employees: 12,668 Downers Grove, IL 60515 United States Fiscal Year Ends in June

Types Of Business Industry Rank for Total Revenue for Closely Related Companies

Industry NAICS code: 611310 1. Apollo Education Group Inc (University of Phoenix) 2,566,277,120 2. Education Management Corp 2,046,873,088 3. DeVry Education Group Inc 1,909,943,040 Higher Education 4. ITT Educational Services Inc 849,825,984 Online Education 5. Career Education Corporation 847,273,024 Medical School 6. Grand Canyon Education Inc 778,200,000 Nursing School 7. Bridgepoint Education Inc 561,729,024 Veterinary School 8. Strayer Education Inc 434,436,992 Accounting School 9. Capella Education Co 430,267,008 10. American Public Education Inc 327,910,016

Contacts Description

DeVry Education Group, Inc. is a publicly held highereducation company Patrick Unzicker CFO/Chief Accounting Officer/Senior in North America. The firm operates DeVry University, Becker VP/Treasurer Professional Education, Ross University, American University of the Christopher Nash Chief Information Officer/Senior VP Caribbean, Chamberlain College of Nursing, Carrington College, Kathleen Carroll Controller/Vice President Carrington College of California and DeVry Brasil. DeVry University Michael Malafronte Director provides careeroriented, business and technologybased education to Ann Hart Director students and graduates at locations in the U.S. and Canada, both in Lyle Logan Director traditional classrooms and online. The university offers associate, Ronald Taylor Director bachelor’s and master’s degree programs in technology, health care James White Director technology, business and management, with the latter offered through Alan Merten Director the university’s Keller Graduate School of Management. Becker David Brown Director Professional Education is a provider of professional education and Fernando Ruiz Director training, serving the accounting and finance professions. Ross University Christopher Begley Director/Chairman of the Board operates two schools: the Ross University School of Medicine, which Lisa Wardell Director/President/CEO confers a Doctor of Medicine (MD) degree; and the Ross University Gregory Davis General Counsel/Secretary/Senior VP School of Veterinary Medicine, which confers a Doctor of Veterinary Steven Riehs President, Divisional Medicine (DVM) degree. American University of the Caribbean offers the Carlos Filgueiras President, Divisional same services to students in the Caribbean. Chamberlain College of Eric Dirst President, Divisional Nursing offers programs in nursing education at its 17 campuses in the John Roselli President, Divisional U.S. and online. Carrington College and Carrington College of California Susan Groenwald President, Subsidiary prepare students for careers in health care through certificate, associate Robert Paul President, Subsidiary and bachelor’s degree programs. DeVry Brasil currently operates 17 Donna Loraine President, Subsidiary campuses in the cities such as Salvador, Fortaleza, Recife, Caruaru and Lisa Sodeika Senior VP, Divisional Teresina, and offers undergraduate and graduate programs focused on Donna Jennings Senior VP, Divisional business management, law and engineering. In December 2015, the firm acquired a majority interest (96.4%) in Grupo Ibmec Educacional SA, which operates campuses located in Rio de Janeiro, Belo Horizonte Auditor: PricewaterhouseCoopers LLP and Campinas. Legal Advisor: Schiff Hardin LLP

Financials

$USD, In whole numbers, 2016 2015 2014 2013 2012 2011 except marked * or % Financials Revenue 1,843,537,000 1,909,943,000 1,923,371,000 1,964,375,000 2,089,781,000 2,182,371,000 Cost of Revenue 986,778,000 1,000,055,000 983,436,000 962,223,000 975,642,000 925,504,000 Gross Margin % 46.47 47.64 48.87 51.02 53.31 57.59 R&D Expense Operating Income (12,143,000) 156,910,000 181,268,000 166,928,000 204,237,000 494,175,000 Operating Margin % 0.66 8.22 9.42 8.50 9.77 22.64 SGA Expense 654,049,000 708,285,000 727,870,000 756,384,000 808,400,000 762,692,000 Net Income (3,166,000) 139,899,000 134,032,000 106,786,000 141,565,000 330,403,000 Earnings Per Share 0.05 2.17 2.09 1.66 2.11 4.73 Dividends 0.36 0.36 0.34 0.34 0.30 0.24 Book Value Per Share 24.39 24.13 21.93 22.06 21.01 Operating Cash Flow 231,569,000 203,107,000 265,561,000 261,505,000 277,422,000 407,990,000 Capital Expenditure 69,396,000 88,707,000 79,355,000 111,775,000 129,055,000 135,726,000 Free Cash Flow 162,173,000 114,400,000 186,206,000 149,730,000 148,367,000 272,264,000 Profitability EBITDA 74,187,000 243,981,000 272,816,000 261,830,000 297,439,000 560,285,000 Return on Assets % 0.15 6.87 6.95 5.78 7.67 19.00 Return on Equity % 0.20 8.97 9.15 7.76 10.31 25.72 Net Margin % 0.17 7.32 6.97 5.44 6.77 15.14 Assets Turnover 0.88 0.94 1.00 1.06 1.13 1.25 Debt Equity Ratio

Brands, Divisions and Affiliates Top Salaries

DeVry University Becker Professional Education Name Title Salary (US$) Bonus Ross University (US$) American University of the Caribbean Daniel CEO/President 873,204 Chamberlain College of Nursing Hamburger Carrington College Steven Riehs President, 436,442 DeVry Brasil Divisional/President, Grupo Ibmec Educacional SA Subsidiary Timothy Wiggins CFO/Senior VP 428,962 Susan Groenwald President, Subsidiary 409,231 Robert Paul President, Subsidiary 388,769

Other Thoughts Corporate Culture

Estimated Female Officers or Directors:5

Company Profile

ITT EDUCATIONAL SERVICES INC (WWW.ITTESI.COM)

Ticker: ESI Phone: 3177069200 Exchange: NYS Fax: Employees: 9,900 Address: 13000 N. Meridian St. Fiscal Year Ends in 12 Carmel, IN 460321404 United States

Types Of Business Industry Rank for Total Revenue for Closely Related Companies

Industry NAICS code: 611310 1. Apollo Education Group Inc (University of Phoenix) 2,566,277,120 2. Education Management Corp 2,046,873,088 3. DeVry Education Group Inc 1,909,943,040 Colleges, Universities, and Professional Schools 4. ITT Educational Services Inc 849,825,984 5. Career Education Corporation 847,273,024 6. Grand Canyon Education Inc 778,200,000 7. Bridgepoint Education Inc 561,729,024 8. Strayer Education Inc 434,436,992 9. Capella Education Co 430,267,008 10. American Public Education Inc 327,910,016

Contacts Description

ITT Educational Services, Inc. is a provider of postsecondary degree Kevin Modany CEO programs in the U.S. The company has provided careeroriented Rocco Tarasi CFO/Executive VP education programs since 1969 under the ITT Technical Institute name John Dean Chairman of the Board/Director and since 2009 under the Daniel Webster College name. The firm offered diploma, associate, bachelor’s and master’s degree programs. In Angela Knowlton Chief Accounting Officer/Controller/Senior September 2016, the firm annoujced that it will permanently close all of VP/Treasurer its campuses across the U.S., due to being cut off from U.S. Department John Weber Director of Education student loans. Jerry Cohen Director Joanna Lau Director Samuel Odle Director Thomas Morgan Director C. Brown Director Glenn Tanner Executive VP/Chief Marketing Officer June McCormack Executive VP/President, Divisional Eugene Feichtner President/COO

Financials

$USD, In whole numbers 2015 2014 2013 2012 2011 2010 2009 Sales 849,825,984 961,782,976 1,072,310,976 1,287,208,960 1,499,949,056 1,596,529,024 1,319,193,984 Profits 23,298,000 29,253,000 (27,024,000) 140,464,992 307,752,000 374,166,016 300,263,008

Brands, Divisions and Affiliates Top Salaries

ITT Technical Institute Daniel Webster College Salary Bonus

Other Thoughts Corporate Culture

Estimated Female Officers or Directors: 2

Company Profile

CAREER EDUCATION CORPORATION (WWW.CAREERED.COM)

Ticker: CECO Phone: 847 781360 Exchange: NAS Fax: 847 7813610 Year Established: 1994 Address: 231 North Martingale Road Employees: 9,075 Schaumburg, IL 60173 United States Fiscal Year Ends in December

Types Of Business Industry Rank for Total Revenue for Closely Related Companies

Industry NAICS code: 611310 1. Apollo Education Group Inc (University of Phoenix) 2,566,277,120 2. Education Management Corp 2,046,873,088 3. DeVry Education Group Inc 1,909,943,040 Colleges, Universities, and Professional Schools 4. ITT Educational Services Inc 849,825,984 5. Career Education Corporation 847,273,024 6. Grand Canyon Education Inc 778,200,000 7. Bridgepoint Education Inc 561,729,024 8. Strayer Education Inc 434,436,992 9. Capella Education Co 430,267,008 10. American Public Education Inc 327,910,016

Contacts Description

Career Education Corporation (CEC), founded in 1994, offers Thomas Lally Chairman of the Board/Director postsecondary education to a diverse population of students in a Michele Peppers Chief Accounting Officer/Vice President variety of careeroriented disciplines. While the universities offer online, Gregory Jackson Director onground and hybrid learning programs, nearly 90% of the firm’s Richard Wang Director students attend the webbased virtual campuses of American Dennis Chookaszian Director InterContinental University (AIU) and Colorado Technical University Leslie Thornton Director (CTU). AIU and CTU advances the company’s personalized learning Patrick Gross Director technologies, such as the intellipath adaptive learning platform, which Ronald McCray Director allows students to more efficiently move toward earning a degree by Todd Nelson Director/President/CEO receiving course credit for knowledge they can already demonstrate. Jeffrey Ayers General Counsel/Secretary/Senior VP CEC provides the kind of education that closes the gap between learners John Kline Senior VP, Divisional who seek to advance their careers and employers needing a qualified Andrew Hurst Senior VP, Divisional workforce. During 2015, CEC transferred ownership of Missouri College Julia Leeman Senior VP, Divisional to Weston Education Group; transferred ownership of Brooks Institute to Andrew Cederoth Senior VP/CFO gphomestay; and announced the closure of its 14 remaining StanfordBrown colleges. That December, it announced it would begin discontinuing its Le Cordon Bleu North America colleges of culinary arts, Auditor: Grant Thornton LLP and would not enroll new students after January 2016. Teachouts for Legal Advisor: Katten Muchin Rosenman LLP the remaining students of StanfordBrown & Le Cordon colleges would take at least 18 months, depending on their programs.

Financials

$USD, In whole numbers, 2015 2014 2013 2012 2011 2010 except marked * or % Financials Revenue 847,273,000 741,358,000 1,057,360,000 1,489,269,000 1,884,505,000 2,124,236,000 Cost of Revenue 289,777,000 240,796,000 406,285,000 571,169,000 632,593,000 639,123,000 Gross Margin % 65.80 67.52 61.58 61.65 66.43 69.91 R&D Expense Operating Income (92,168,000) (72,716,000) (214,684,000) (183,750,000) 39,162,000 246,393,000 Operating Margin % 10.88 9.81 20.30 12.34 2.08 11.60 SGA Expense 564,211,000 520,361,000 774,432,000 894,185,000 936,714,000 1,095,519,000 Net Income 51,885,000 (178,163,000) (164,263,000) (142,796,000) 18,573,000 157,773,000 Earnings Per Share 0.76 2.65 2.46 2.15 0.25 1.97 Dividends Book Value Per Share 2.86 4.53 7.31 9.12 12.86 11.51 Operating Cash Flow (21,686,000) (118,624,000) (85,804,000) (16,798,000) 230,450,000 272,259,000 Capital Expenditure 11,695,000 13,156,000 19,636,000 37,944,000 78,333,000 127,283,000 Free Cash Flow (33,381,000) (131,780,000) (105,440,000) (54,742,000) 152,117,000 144,976,000 Profitability EBITDA (68,665,000) (16,558,000) (146,836,000) (99,628,000) 127,877,000 318,878,000 Return on Assets % 8.76 25.85 17.04 11.71 1.29 10.10 Return on Equity % 16.75 48.33 30.78 20.14 2.13 17.00 Net Margin % 6.12 24.03 15.54 9.59 0.99 7.43 Assets Turnover 1.43 1.08 1.10 1.22 1.31 1.36 Debt Equity Ratio 0.00 0.00

Brands, Divisions and Affiliates Top Salaries

American InterContinental University Colorado Technical University Name Title Salary (US$) Bonus intellipath (US$) StanfordBrown David Rawden CFO 1,395,925 Le Cordon Bleu North America Todd Nelson President/CEO 298,375 1,000,000 Ronald McCray Former CEO/Former 825,000 President Jeffrey Ayers General 380,000 Counsel/Secretary/Senior VP Jason Friesen Other Executive 333,059 Officer/Senior VP

Other Thoughts Corporate Culture

Estimated Female Officers or Directors:3

Company Profile

GRAND CANYON EDUCATION INC (WWW.GCU.EDU)

Ticker: LOPE Phone: 602 6397500 Exchange: NAS Fax: Year Established: 2003 Address: 3300 West Camelback Road Employees: 3,100 Phoenix, AZ 85017 United States Fiscal Year Ends in December

Types Of Business Industry Rank for Total Revenue for Closely Related Companies

Industry NAICS code: 611310 1. Apollo Education Group Inc (University of Phoenix) 2,566,277,120 2. Education Management Corp 2,046,873,088 3. DeVry Education Group Inc 1,909,943,040 Online Education 4. ITT Educational Services Inc 849,825,984 5. Career Education Corporation 847,273,024 6. Grand Canyon Education Inc 778,200,000 7. Bridgepoint Education Inc 561,729,024 8. Strayer Education Inc 434,436,992 9. Capella Education Co 430,267,008 10. American Public Education Inc 327,910,016

Contacts Description

Grand Canyon Education, Inc. is a provider of online postsecondary Brian Mueller CEO/Director/President, education services. Through Grand Canyon University (GCU), the firm Subsidiary/President focuses on offering graduate and undergraduate degree programs in the Daniel Bachus CFO/Chief Accounting Officer areas of business, education, liberal arts and health care. GCU is Brent Richardson Chairman of the Board/Director regionally accredited by the Higher Learning Commission and licensed to Joseph Mildenhall Chief Information Officer operate and offer programs by the Arizona State Board for Private W. Meyer COO Postsecondary Education. The university also holds specialized Bradley Casper Director accreditations for certain programs from the Commission on Collegiate David Johnson Director Nursing Education, the Accreditation Council for Business Schools and Jack Henry Director Programs and Commission on Accreditation of Athletic Training Kevin Warren Director Education. GCU has approximately 67,800 current students, of which Sara Dial Director roughly 81.2% are enrolled in online programs. Approximately 38.8% of Brian Roberts General Counsel/Secretary/Senior VP GCU’s students are pursuing either master’s or doctoral degree programs. Grand Canyon Education primarily recruits students age 25 or older who are pursuing a degree while remaining employed. Roughly Auditor: KPMG LLP 87.6% of its online students fall under this category. GCU offers Legal Advisor: academic programs through the Colangelo College of Business; College of Nursing and Health Care Professionals; College of Education; College of Science, Engineering and Technology; College of Fine Arts and Production; College of Theology; and College of Doctoral Studies. Grand Canyon is unusual among forprofit schools in that it positions itself as a Christian university. The school encourages distancelearners to become involved in campus life and to attend events such as basketball games. It was the first forprofit university to achieve Division 1 athletic status.

Financials

$USD, In whole numbers, 2015 2014 2013 2012 2011 2010 except marked * or % Financials Revenue 778,200,000 691,055,000 598,335,000 511,257,000 426,741,000 385,825,000 Cost of Revenue 329,651,000 288,791,000 254,419,000 220,403,000 194,801,000 140,295,000 Gross Margin % 57.64 58.21 57.48 56.89 54.35 63.64 R&D Expense Operating Income 210,361,000 180,815,000 143,276,000 114,052,000 82,160,000 73,528,000 Operating Margin % 27.03 26.17 23.95 22.31 19.25 19.06 SGA Expense 238,188,000 221,449,000 200,640,000 176,802,000 149,780,000 171,706,000 Net Income 131,411,000 111,466,000 88,711,000 69,447,000 50,546,000 44,365,000 Earnings Per Share 2.86 2.45 1.98 1.57 1.13 0.97 Dividends Book Value Per Share 12.37 9.40 6.83 5.23 3.31 2.99 Operating Cash Flow 173,900,000 166,996,000 118,449,000 144,196,000 97,099,000 84,104,000 Capital Expenditure 218,301,000 168,646,000 93,490,000 104,876,000 80,545,000 62,627,000 Free Cash Flow (44,401,000) (1,650,000) 24,959,000 39,320,000 16,554,000 21,477,000 Profitability EBITDA 246,036,000 210,972,000 172,576,000 136,046,000 99,282,000 85,804,000 Return on Assets % 15.89 16.25 15.97 17.09 16.79 19.33 Return on Equity % 24.19 27.15 30.65 34.95 33.70 39.85 Net Margin % 16.89 16.13 14.83 13.58 11.84 11.50 Assets Turnover 0.94 1.01 1.08 1.26 1.42 1.68 Debt Equity Ratio 0.12 0.17 0.25 0.40 0.13 0.16

Brands, Divisions and Affiliates Top Salaries

College of Nursing and Health Care Professions College of Doctoral Studies Name Title Salary (US$) Bonus College of Science, Engineering and Technology (US$) College of Education Brian Mueller CEO/Director 666,692 Colangelo College of Business Daniel Bachus CFO 389,423 College of Fine Arts and Production W. Meyer COO 389,423 College of Theology Joseph Chief Information Officer 333,346 Grand Canyon University Mildenhall Brian Roberts General Counsel 285,577

Other Thoughts Corporate Culture

Estimated Female Officers or Directors:1 The firm offers employees benefits including life, disability, dental and health insurance; flexible spending accounts; an onsite health center, pool, fitness center and childcare facility; a 401(k); paid time off; tuition imbursement; and an employee assistance program.

Company Profile

BRIDGEPOINT EDUCATION INC (WWW.BRIDGEPOINTEDUCATION.COM)

Ticker: BPI Phone: 858 6682586 Exchange: NYS Fax: 858 4082903 Year Established: 1999 Address: 13500 Evening Creek Drive North Employees: 4,620 San Diego, CA 92128 United States Fiscal Year Ends in December

Types Of Business Industry Rank for Total Revenue for Closely Related Companies

Industry NAICS code: 611310 1. Apollo Education Group Inc (University of Phoenix) 2,566,277,120 2. Education Management Corp 2,046,873,088 3. DeVry Education Group Inc 1,909,943,040 Online Education 4. ITT Educational Services Inc 849,825,984 Education Technology Software 5. Career Education Corporation 847,273,024 6. Grand Canyon Education Inc 778,200,000 7. Bridgepoint Education Inc 561,729,024 8. Strayer Education Inc 434,436,992 9. Capella Education Co 430,267,008 10. American Public Education Inc 327,910,016

Contacts Description

Bridgepoint Education, Inc. is a regionally accredited provider of Andrew Clark CEO/Director/President postsecondary and higher education services. The firm offers associate's, Patrick Hackett Chairman of the Board/Director bachelor's, master's and doctoral programs in areas including education, Russell Sakamoto Chief Accounting Officer/Controller/Vice business, social sciences, health sciences and psychology. The President company’s programs are available online as well as offered through two Rodney Sheng Chief Administrative Officer/Executive VP campuses: Ashford University and the University of the Rockies . Thomas Ashbrook Chief Information Officer/Executive VP Ashford University, located in Clinton, Iowa, offers associate’s, bachelor’s Ross Woodard Chief Marketing Officer/Executive VP and master’s degree programs as well as National Associations of Kenneth Juster Director Intercollegiate Athletics sports teams. Ashford University is comprised of Victor Nichols Director four colleges: the Forbes School of Business, the College of Education, Dale Crandall Director the College of Health, Human Services and Sciences, and the College of Ryan Craig Director Liberal Arts. University of the Rockies, located in Colorado Springs, Robert Hartman Director Colorado, offers master’s and doctoral degree programs in the social and Jane McAuliffe Executive VP, Divisional/Other Executive behavioral sciences. In 2014, the firm’s schools had a total enrollment of Officer 55,823 students, of which nearly 99% attended classes exclusively Kevin Royal Executive VP/CFO online. Roughly, 80% of its students are enrolled in bachelor’s degree Christopher Henn Executive VP/COO programs. Bridgepoint has developed several technologybased learning Diane Thompson General Counsel/Secretary/Executive VP platforms and resources, including Waypoint Outcomes and Marc Brown Other Executive Officer/Senior VP Constellation. Waypoint Outcomes software combines classic rubric Vickie Schray Senior VP, Divisional grading scales with technology to help educators teach writing, critical thinking and cognitive skills in K12 and higher education settings. Constellation is a suite of interactive educational materials designed to Auditor: PricewaterhouseCoopers LLP replace thirdparty textbooks with digital course materials. Constellation Legal Advisor: Wilson, Sonsini, Goodrich & Rosati is cloudbased and is compatible across operating systems, browsers and mobile technologies.

Financials

$USD, In whole numbers, 2015 2014 2013 2012 2011 2010 except marked * or % Financials Revenue 561,729,000 638,705,000 768,623,000 968,171,000 933,349,000 713,233,000 Cost of Revenue 281,496,000 321,312,000 395,928,000 355,273,000 259,138,000 187,399,000 Gross Margin % 49.89 49.69 48.49 63.30 72.24 73.73 R&D Expense Operating Income (42,295,000) 14,311,000 60,443,000 202,714,000 273,747,000 216,421,000 Operating Margin % 7.53 2.24 7.86 20.94 29.33 30.34 SGA Expense 254,172,000 303,082,000 312,252,000 410,184,000 400,464,000 309,413,000 Net Income (70,454,000) 9,668,000 41,010,000 127,963,000 172,764,000 127,580,000 Earnings Per Share 1.54 0.21 0.76 2.42 3.30 2.37 Dividends Book Value Per Share 6.72 8.12 12.30 9.17 6.25 4.51 Operating Cash Flow 26,715,000 25,219,000 75,538,000 143,185,000 220,808,000 189,949,000 Capital Expenditure 4,630,000 15,063,000 34,388,000 30,558,000 34,492,000 26,568,000 Free Cash Flow 22,085,000 10,156,000 41,150,000 112,627,000 186,316,000 163,381,000 Profitability EBITDA (22,717,000) 37,628,000 82,109,000 220,138,000 286,490,000 226,554,000 Return on Assets % 13.23 1.71 6.17 18.69 31.85 33.29 Return on Equity % 21.05 2.71 9.72 30.12 58.38 68.44 Net Margin % 12.54 1.51 5.34 13.22 18.51 17.89 Assets Turnover 1.06 1.13 1.16 1.41 1.72 1.86 Debt Equity Ratio

Brands, Divisions and Affiliates Top Salaries

Ashford University University of the Rockies Name Title Salary (US$) Bonus Waypoint Outcomes (US$) Constellation Christopher Henn Executive VP/COO 287,307 500,000 Forbes School of Business Andrew Clark CEO/President 725,000 College of Education Rodney Sheng Chief Administrative 404,538 College of Liberal Arts Officer/Executive VP College of Health, Human Services & Sciences Daniel Devine Former CFO 400,000 Jane McAuliffe Executive VP/Other 339,692 Executive Officer

Other Thoughts Corporate Culture

Estimated Female Officers or Directors:6

Company Profile

STRAYER EDUCATION INC (WWW.STRAYEREDUCATION.COM)

Ticker: STRA Phone: 703 2472500 Exchange: NAS Fax: Year Established: 1892 Address: 2303 Dulles Station Boulevard Employees: 1,485 Herndon, VA 20171 United States Fiscal Year Ends in December

Types Of Business Industry Rank for Total Revenue for Closely Related Companies

Industry NAICS code: 611310 1. Apollo Education Group Inc (University of Phoenix) 2,566,277,120 2. Education Management Corp 2,046,873,088 3. DeVry Education Group Inc 1,909,943,040 EducationUniversities 4. ITT Educational Services Inc 849,825,984 5. Career Education Corporation 847,273,024 6. Grand Canyon Education Inc 778,200,000 7. Bridgepoint Education Inc 561,729,024 8. Strayer Education Inc 434,436,992 9. Capella Education Co 430,267,008 10. American Public Education Inc 327,910,016

Contacts Description

Strayer Education, Inc. is a forprofit postsecondary education services Karl McDonnell CEO/Director corporation. Its mission is to make postsecondary education achievable Daniel Jackson CFO/Executive VP and convenient for working adults in today's economy. Strayer offers a Robert Silberman Chairman of the Board/Director variety of academic programs through whollyowned subsidiary Strayer Thomas Aprahamian Chief Accounting Officer/Controller University. Strayer University makes postsecondary education Rosemary Rose COO, Divisional/Executive VP accessible to working adults who were previously unable to take William Brock Director advantage of higher education opportunities. Marketing activities include Todd Milano Director direct mail, Internet marketing, marketing to its existing students, print G. Waite Director and broadcast advertising, student referrals and corporate and John Casteen Director government outreach activities. It has a total of 76 campuses in various J. Wargo Director stages of growth. In 2015, the company had a total enrollment of Charlotte Beason Director approximately 42,975 students, with 26,324 pursuing bachelor degrees, Robert Grusky Director 13,147 pursuing master degrees, 3,270 pursuing associate degrees, 17 Kelly Bozarth Executive VP, Divisional pursuing a diploma, 13 pursuing undergraduate certificates, six pursuing Viet Dinh General Counsel/Secretary graduate certificates and 198 undeclared. It receives its accreditation Brian Jones President, Divisional from the Middle States Commission on Higher Education. In January 2016, the firm acquired the New York Code and Design Academy (NYCDA), a provider of nondegree web & mobile app development Auditor: PricewaterhouseCoopers LLP courses. NYCDA will operate as a whollyowned subsidiary of Strayer Legal Advisor: Hogan Lovells US LLP Education.

Financials

$USD, In whole numbers, 2015 2014 2013 2012 2011 2010 except marked * or % Financials Revenue 434,437,000 446,041,000 503,600,000 561,979,000 627,434,000 636,732,000 Cost of Revenue 234,097,000 236,303,000 310,446,000 300,098,000 292,003,000 205,212,000 Gross Margin % 46.11 47.02 38.35 46.60 53.46 67.77 R&D Expense Operating Income 69,698,000 81,747,000 32,701,000 113,587,000 179,143,000 215,771,000 Operating Margin % 16.04 18.33 6.49 20.21 28.55 33.89 SGA Expense 130,642,000 127,991,000 160,453,000 148,294,000 156,288,000 215,749,000 Net Income 40,023,000 46,356,000 16,425,000 65,930,000 106,044,000 131,260,000 Earnings Per Share 3.78 4.39 1.55 5.79 8.91 9.78 Dividends 0.00 0.00 0.00 4.00 4.00 3.25 Book Value Per Share 11.53 7.13 5.28 3.48 3.71 13.22 Operating Cash Flow 76,898,000 77,550,000 84,093,000 82,062,000 154,363,000 162,821,000 Capital Expenditure 12,692,000 6,902,000 8,726,000 24,733,000 29,991,000 46,015,000 Free Cash Flow 64,206,000 70,648,000 75,367,000 57,329,000 124,372,000 116,806,000 Profitability EBITDA 88,085,000 102,494,000 68,266,000 137,564,000 200,820,000 233,080,000 Return on Assets % 14.39 16.49 6.81 28.73 32.94 32.87 Return on Equity % 33.98 70.43 41.12 158.33 97.16 71.76 Net Margin % 9.21 10.39 3.26 11.73 16.90 20.61 Assets Turnover 1.56 1.59 2.09 2.45 1.95 1.59 Debt Equity Ratio 1.21 3.05 2.97 2.13

Brands, Divisions and Affiliates Top Salaries

Strayer University New York Code and Design Academy Name Title Salary (US$) Bonus (US$) Karl McDonnell CEO/Director 665,000 835,000 Robert Silberman Chairman of the 665,000 835,000 Board/Director Brian Jones President, Divisional 360,577 250,000 Rosemary Rose COO, Divisional 325,000 225,000 Daniel Jackson CFO/Executive VP 312,500 225,000

Other Thoughts Corporate Culture

Estimated Female Officers or Directors:2 The firm offers employees medical, dental and vision insurance; an employee assistance program; life and AD&D insurance; a 401(k); short and longterm disability; flexible spending accounts; an employee stock purchase plan; tuition discounts; maternity and paternity leave; and domestic partner benefits.

Company Profile

CAPELLA EDUCATION CO (WWW.CAPELLAEDUCATION.COM)

Ticker: CPLA Phone: Exchange: NAS Fax: 612 9775060 Year Established: 1991 Address: 225 South Sixth Street, 9th Floor Employees: 2,804 Capella Tower Fiscal Year Ends in December Minneapolis, MN 55402 United States

Types Of Business Industry Rank for Total Revenue for Closely Related Companies

Industry NAICS code: 611310 1. Apollo Education Group Inc (University of Phoenix) 2,566,277,120 2. Education Management Corp 2,046,873,088 3. DeVry Education Group Inc 1,909,943,040 Online Educational Services 4. ITT Educational Services Inc 849,825,984 5. Career Education Corporation 847,273,024 6. Grand Canyon Education Inc 778,200,000 7. Bridgepoint Education Inc 561,729,024 8. Strayer Education Inc 434,436,992 9. Capella Education Co 430,267,008 10. American Public Education Inc 327,910,016

Contacts Description

Capella Education Co. is an online postsecondary education services J. Gilligan CEO/Chairman of the Board/Director provider. Through its whollyowned subsidiary Capella University, it Steven Polacek CFO/Chief Accounting Officer/Senior VP offers a variety of doctoral, master’s and bachelor’s programs in the Matthew Ferguson Director following markets: behavioral health and human services; business Darrell Tukua Director management and technology; education; and public service leadership. David Smith Director It focuses on master’s and doctoral degrees, with over 72% of its Jeffrey Taylor Director learners enrolled in those programs. Other subsidiaries include Arden Jody Miller Director University, Ltd., which is an independent provider of United Kingdom Michael Linton Director (UK) university distance learning qualifications that markets, develops, Michael Lomax Director and delivers programs worldwide via its offices and partners across Asia, H. Dallas Director North America, Africa and Europe; Sophia Learning, LLC (Sophia), which Rita Brogley Director is an innovative learning platform leveraging technology to support Stephen Shank Founder/Director selfpaced learning, including credits eligible for transfer to over 2,000 Renee Jackson General Counsel/Secretary/Vice President college and universities; and Capella Learning Solutions (CLS), which Richard Senese Other Executive Officer/President, provides online nondegree, highdemand, jobready skills, training Subsidiary solutions and services to individuals and corporate partners. The Peter Ramstad Other Executive Officer/Senior VP company’s academic offerings combine competencybased curricula with the convenience and flexibility of an online learning format. It designs its courses to help working adult learners develop specific competencies Auditor: Ernst & Young LLP that they could employ in the workplace. The firm actively supports and Legal Advisor: engages with its learners throughout Capella Education’s programs to enhance their prospects for successful program completion. The firm engages in a range of marketing activities to build the Capella brand, differentiate the company from other educational providers, raise levels of awareness and consideration with prospective learners, generate inquiries about enrollment, remind and motivate existing learners to reregister each quarter and stimulate referrals from existing learners and graduates. In February 2016, the firm announced its plan to divest Arden University.

Financials

$USD, In whole numbers, 2015 2014 2013 2012 2011 2010 except marked * or % Financials Revenue 430,267,000 421,967,000 415,623,000 421,890,000 430,043,000 426,123,000 Cost of Revenue 189,852,000 185,503,000 183,757,000 191,947,000 171,809,000 164,231,000 Gross Margin % 55.88 56.04 55.79 54.50 60.05 61.46 R&D Expense Operating Income 67,033,000 64,095,000 59,877,000 59,383,000 80,102,000 95,001,000 Operating Margin % 15.58 15.19 14.41 14.08 18.63 22.29 SGA Expense 173,382,000 172,369,000 171,989,000 170,560,000 178,132,000 166,891,000 Net Income 40,188,000 37,943,000 35,203,000 36,477,000 52,115,000 61,270,000 Earnings Per Share 3.33 3.09 2.84 2.77 3.42 3.68 Dividends 1.50 1.42 0.35 Book Value Per Share 16.68 15.28 14.47 12.27 12.60 12.79 Operating Cash Flow 60,327,000 65,188,000 69,349,000 64,828,000 80,304,000 88,407,000 Capital Expenditure 20,641,000 20,584,000 18,728,000 23,278,000 29,587,000 25,481,000 Free Cash Flow 39,686,000 44,604,000 50,621,000 41,550,000 50,717,000 62,926,000 Profitability EBITDA 89,706,000 87,893,000 85,754,000 88,638,000 104,267,000 113,513,000 Return on Assets % 15.93 15.04 15.20 16.27 20.93 24.80 Return on Equity % 20.46 20.13 21.07 23.18 28.08 31.19 Net Margin % 9.34 8.99 8.47 8.65 12.12 14.38 Assets Turnover 1.71 1.67 1.79 1.88 1.73 1.72 Debt Equity Ratio

Brands, Divisions and Affiliates Top Salaries

Capella University Arden University Ltd Name Title Salary (US$) Bonus Sophia Learning LLC (US$) Capella Learning Solutions J. Gilligan CEO 770,539 Steven Polacek CFO/Senior VP 443,660 Peter Ramstad Other Executive 272,769 150,000 Officer/Senior VP Scott Kinney President, 369,716 Subsidiary/Former Senior VP Renee Jackson Vice President/General 301,154 Counsel

Other Thoughts Corporate Culture

Estimated Female Officers or Directors:2

Company Profile

AMERICAN PUBLIC EDUCATION INC (WWW.AMERICANPUBLICEDUCATION.COM)

Ticker: APEI Phone: 3047243700 Exchange: NAS Fax: 304 7243780 Year Established: 1991 Address: 111 West Congress Street Employees: 3,492 Charles Town, WV 25414 United States Fiscal Year Ends in December

Types Of Business Industry Rank for Total Revenue for Closely Related Companies

Industry NAICS code: 611310 1. Apollo Education Group Inc (University of Phoenix) 2,566,277,120 2. Education Management Corp 2,046,873,088 3. DeVry Education Group Inc 1,909,943,040 Online Educational Services 4. ITT Educational Services Inc 849,825,984 5. Career Education Corporation 847,273,024 6. Grand Canyon Education Inc 778,200,000 7. Bridgepoint Education Inc 561,729,024 8. Strayer Education Inc 434,436,992 9. Capella Education Co 430,267,008 10. American Public Education Inc 327,910,016

Contacts Description

American Public Education, Inc. is a provider of online postsecondary Wallace Boston CEO/Director/President education with an emphasis on serving the needs of the military and Richard Sunderland CFO/Executive VP/Chief Accounting Officer public service communities. It operates through two universities, Barbara Fast Chairman of the Board/Director American Military University, or AMU, and American Public University, or Timothy Landon Director APU, which together are operated through American Public University Jean Halle Director System, Inc. Another subsidiary, National Education Seminars, Inc., Eric Andersen Director referred as Hondros College of Nursing (HCON) offers nursing education Westley Moore Director to students at four campuses in the state of Ohio as well as online. The William Robinson Director company's universities share a common faculty and curriculum, which Barbara Kurshan Director includes 100 degree programs and 95 certificate programs in disciplines Carol Gilbert Executive VP, Divisional related to national security, military studies, intelligence, homeland Karan Powell President, Subsidiary security, criminal justice, technology, business administration, education Peter Gibbons Senior VP, Divisional and liberal arts. It currently serves over 100,000 students living in all 50 states, Washington, D.C. and many foreign countries. The firm’s university system provides online education, which is regionally and Auditor: McGladrey LLP nationally accredited. Its programs are generally designed to help these Legal Advisor: and other students advance in their current professions or prepare for their next career. American Public Education’s online method of instruction is wellsuited to its students, many of whom serve in positions requiring extended and irregular schedules, are oncall for rapid response missions, participate in extended deployments and exercises, travel or relocate frequently and have limited financial resources. The firm maintains approximately 410 fulltime and over 1,800 adjunct faculties.

Financials

$USD, In whole numbers, 2015 2014 2013 2012 2011 2010 except marked * or % Financials Revenue 327,910,000 350,020,000 329,479,000 313,516,000 260,377,000 198,174,000 Cost of Revenue 118,848,000 123,765,000 112,784,000 110,192,000 95,216,000 75,309,000 Gross Margin % 63.76 64.64 65.77 64.85 63.43 62.00 R&D Expense Operating Income 52,281,000 65,832,000 67,437,000 68,802,000 62,859,000 50,022,000 Operating Margin % 15.94 18.81 20.47 21.95 24.14 25.24 SGA Expense 136,261,000 144,302,000 135,750,000 123,376,000 93,063,000 66,341,000 Net Income 32,414,000 40,877,000 42,034,000 42,323,000 40,757,000 29,868,000 Earnings Per Share 1.94 2.36 2.38 2.38 2.28 1.63 Dividends Book Value Per Share 14.86 13.11 11.45 9.59 6.70 5.43 Operating Cash Flow 57,211,000 61,030,000 59,414,000 52,924,000 70,438,000 47,078,000 Capital Expenditure 27,267,000 25,671,000 20,893,000 35,342,000 25,232,000 23,027,000 Free Cash Flow 29,944,000 35,359,000 38,521,000 17,582,000 45,206,000 24,051,000 Profitability EBITDA 72,801,000 81,953,000 80,945,000 79,948,000 72,098,000 56,524,000 Return on Assets % 10.77 14.35 16.51 19.39 23.92 23.19 Return on Equity % 13.75 18.53 22.23 27.75 35.27 33.31 Net Margin % 9.89 11.68 12.76 13.50 15.65 15.07 Assets Turnover 1.09 1.23 1.29 1.44 1.53 1.54 Debt Equity Ratio

Brands, Divisions and Affiliates Top Salaries

American Military University American Public University Name Title Salary (US$) Bonus American Public University System Inc (US$) National Education Seminars Inc Wallace Boston CEO/President 650,468 Hondros College of Nursing Harry Wilkins Former Executive 385,195 VP/Former Other Executive Officer Richard CFO/Executive VP 350,000 Sunderland Karan Powell Executive VP, Divisional 300,728 Carol Gilbert Executive VP, Divisional 290,520

Other Thoughts Corporate Culture

Estimated Female Officers or Directors:6

Appendix: Assumptions

U.S. GDP Growth Forecasts

(In Bil. Current US$)

Year Amount % Chg.

2012 16,155.25 4.00%

2013 16,663.15 3.14%

2014 17,393.10 4.00%

2015 18,036.65 3.70%

2016 18,561.93 2.91%

2017 19,377.20 4.39%

2018 20,250.83 4.50%

2019 21,104.77 4.21%

2020 21,926.51 3.89%

2021 22,765.78 3.83%

2022 23,715.85 4.16%

2023 24,693.88 4.12%

Sources: International Monetary Fund - World Economic Outlook, April 2016; Plunkett Research Estimates.

Data Description and Sources

The data presented herein is, at all times, subject to the Copyright notices and Limited Warranties contained in this report.

The underlying sources utilized in the information published in this report may include some or all of:

• Plunkett Research, Ltd.’s internal corporations database

• Plunkett Research, Ltd.’s internal industries database

• Publicly-held corporation disclosure documents, including documents filed with the U.S. Securities and Exchange Commission (SEC)

• U.S. Internal Revenue Service

• U.S. Department of Commerce

• U.S. Bureau of the Census

• U.S. Bureau of Labor Statistics

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