Capella Education (University) came in at 199 on the Inc. Magzine 500 listing of America’s Fastest-Growing Private Companies. They reported sales of $29 million in 2001 up 1070% percent since 1997. This doesn’t seem surprising since they obtained NCA accreditation a couple of years ago. What does seem surprising, and maybe somewhat alarming, is they continue to report operating losses. I heard they had originally planned an IPO after they obtained accreditation but with the market depressed, will they have access to the capital necessary to maintain operations at the present level?
It was my understanding that enrollment was up at Capella. That with the amount they charge per credit, how is it possible that they are reporting operating losses. Maybe to many administration expenses.
One problem being, since Capella is a private company, is that it cannot be determined whether the loss is a paper loss or a real loss. It would be interesting, since they rent a building and all the faculty is adjunct and only receive pay if there are students. The administrative overhead must be a doozie........
Universtiy of Phoenix, with their 150,000 students and $1billion in revenue might want to look at this.