SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 2004
Commission File No. 0-21039

Strayer Education, Inc.

(Exact name of registrant as specified in this charter)

Maryland								52-1975978
(State or other jurisdiction of incorporation or organization)								(I.R.S. Employer Identification No.)
1100 Wilson Blvd., Suite 2500
Arlington, VA								22209
(Address of principal executive offices)								(Zip Code)
Registrant's telephone number, including area code:								(703) 247-2500

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of July 30, 2004, there were outstanding 14,835,363 shares of Common Stock, par value $.01 per share of the Registrant.

STRAYER EDUCATION, INC.
INDEX
FORM 10-Q

PART I — FINANCIAL INFORMATION
Item 1.  Financial Statements
Unaudited Condensed Consolidated Balance Sheets at December 31, 2003 and June 30, 2004					3
Unaudited Condensed Consolidated Statements of Income for the three and six month periods ended June 30, 2003 and 2004					4
Unaudited Condensed Consolidated Statements of Comprehensive Income for the three and six month periods ended June 30, 2003 and 2004					4
Unaudited Condensed Consolidated Statements of Cash Flows for the six month periods ended June 30, 2003 and 2004					5
Unaudited Condensed Statement of Stockholders' Equity for the six month period ended June 30, 2004					6
Notes to Unaudited Condensed Consolidated Financial Statements					7
Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations					11
Item 3.  Quantitative and Qualitative Disclosures About Market Risk					16
Item 4.  Controls and Procedures					16
PART II — OTHER INFORMATION
Items 1-6,      Exhibits and Reports on Form 8-K					17
SIGNATURES					19

2

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STRAYER EDUCATION, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)

ASSETS				December 31, 2003				June 30, 2004
Current assets:
Cash and cash equivalents				$	82,089			$	90,956
Marketable securities available for sale, at fair value					25,951				25,753
Income taxes receivable					—				4,136
Tuition receivable, net of allowances for doubtful accounts					35,997				35,644
Student loans receivable, held for sale					65				12
Other current assets					1,656				3,838
Total current assets					145,758				160,339
Property and equipment, net					35,930				38,433
Restricted cash					500				500
Other assets					368				358
Total assets				$	182,556			$	199,630
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable				$	5,127			$	5,938
Accrued expenses					2,329				1,572
Income taxes payable					2,898				—
Dividends payable					1,510				1,138
Unearned tuition					39,134				37,180
Total current liabilities					50,998				45,828
Deferred income taxes					228				692
Long-term liabilities					2,666				3,667
Total liabilities					53,892				50,187
Commitments and contingencies
Mandatorily redeemable convertible Series A preferred stock, par value $.01; 6,000,000 shares authorized; 3,899,944 shares issued and outstanding at December 31, 2003					95,686				—
Stockholders' equity:
Common Stock, par value $.01; 20,000,000 shares authorized; 10,703,395 and 14,835,363 shares issued and outstanding at December 31, 2003 and June 30, 2004, respectively					107				148
Additional paid-in capital					59,838				156,751
Retained earnings (accumulated deficit)					(26,918	)			(7,306	)
Accumulated other comprehensive income (loss)					(49	)			(150	)
Total stockholders' equity					32,978				149,443
Total liabilities and stockholders' equity				$	182,556			$	199,630

The accompanying notes are an integral part of these consolidated financial statements.

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STRAYER EDUCATION, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)

				For the three months ended June 30,								For the six months ended June 30,
				2003				2004				2003				2004
Revenues				$	36,965			$	46,811			$	73,659			$	92,917
Costs and expenses:
Instruction and educational support					13,261				16,533				26,092				31,724
Selling and promotion					4,947				6,320				9,836				12,404
General and administrative					4,724				5,596				9,601				11,916
					22,932				28,449				45,529				56,044
Income from operations					14,033				18,362				28,130				36,873
Investment and other income					587				364				1,162				682
Income before income taxes					14,620				18,726				29,292				37,555
Provision for income taxes					5,779				7,323				11,579				14,685
Net income					8,841				11,403				17,713				22,870
Preferred stock dividends and accretion					1,281