| Warrants
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As Reported | As Revised | ||||||
As of December 31, 2012 | |||||||
Consolidated balance sheet data: | |||||||
Accounts receivable, net | $ | 75,177 | $ | 67,927 | |||
Deferred income taxes | $ | 8,228 | $ | 10,936 | |||
Total current assets | $ | 496,147 | $ | 491,605 | |||
Total assets | $ | 755,329 | $ | 750,787 | |||
Retained earnings | $ | 479,140 | $ | 474,598 | |||
Total stockholders’ equity | $ | 496,112 | $ | 491,570 | |||
Total liabilities and stockholders’ equity | $ | 755,329 | $ | 750,787 | |||
Year ended December 31, 2012 | |||||||
Consolidated statement of income data: | |||||||
Instructional costs and services | $ | 355,273 | $ | 362,523 | |||
Total costs and expenses | $ | 765,457 | $ | 772,707 | |||
Operating income | $ | 202,714 | $ | 195,464 | |||
Income before income taxes | $ | 206,084 | $ | 198,834 | |||
Income tax expense | $ | 78,121 | $ | 75,413 | |||
Net income | $ | 127,963 | $ | 123,421 | |||
Earnings per share: | |||||||
Basic | $ | 2.42 | $ | 2.33 | |||
Diluted | $ | 2.29 | $ | 2.21 | |||
Consolidated statement of cash flow data: | |||||||
Net income | $ | 127,963 | $ | 123,421 | |||
Provision for bad debts | $ | 66,446 | $ | 73,696 | |||
Deferred income taxes | $ | (7,264 | ) | $ | (9,972 | ) |
Buildings | 39 years |
Furniture, office equipment and software | 3 - 7 years |
Vehicles | 5 years |
December 31, 2012 | |||||||||||
(in thousands) | Before-Tax Amount | Tax Effect | Net-of-Tax Amount | ||||||||
Unrealized gains on investments | $ | 1,300 | $ | (483 | ) | $ | 817 | ||||
December 31, 2011 | |||||||||||
(in thousands) | Before-Tax Amount | Tax Effect | Net-of-Tax Amount | ||||||||
Unrealized losses on investments | $ | (946 | ) | $ | 351 | $ | (595 | ) |
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December 31, 2011 | December 31, 2010 | ||||||||||||||
As Reported | As Reclassified | As Reported | As Reclassified | ||||||||||||
Instructional costs and services | $ | 259,138 | $ | 303,860 | $ | 187,399 | $ | 218,597 | |||||||
Admissions advisory and marketing | 267,354 | 297,619 | 211,550 | 231,959 | |||||||||||
General and administrative | 133,110 | 58,123 | 97,863 | 46,256 | |||||||||||
Total costs | $ | 659,602 | $ | 659,602 | $ | 496,812 | $ | 496,812 |
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December 31, 2012 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Demand notes | $ | — | $ | 415 | $ | — | $ | 415 | |||||||
Corporate notes and bonds | — | 148,801 | — | 148,801 | |||||||||||
Total | $ | — | $ | 149,216 | $ | — | $ | 149,216 |
December 31, 2011 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Demand notes | $ | — | $ | 28,700 | $ | — | $ | 28,700 | |||||||
Corporate notes and bonds | — | 165,097 | — | 165,097 | |||||||||||
Total | $ | — | $ | 193,797 | $ | — | $ | 193,797 |
December 31, 2012 | |||||||||||||||||
Gross unrealized | |||||||||||||||||
Maturities in Years | Amortized Cost | Gain | Loss | Fair Value | |||||||||||||
Short-term | |||||||||||||||||
Demand notes | 1 year or less | $ | 415 | $ | — | $ | — | $ | 415 | ||||||||
Corporate notes and bonds | 1 year or less | 126,806 | 282 | (25 | ) | 127,063 | |||||||||||
Long-term | |||||||||||||||||
Corporate notes and bonds | 3 years or less | 21,641 | 117 | (20 | ) | 21,738 | |||||||||||
Total | $ | 148,862 | $ | 399 | $ | (45 | ) | $ | 149,216 |
December 31, 2011 | |||||||||||||||||
Gross unrealized | |||||||||||||||||
Maturities in Years | Amortized Cost | Gain | Loss | Fair Value | |||||||||||||
Short-term | |||||||||||||||||
Demand notes | 1 year or less | $ | 28,700 | $ | — | $ | — | $ | 28,700 | ||||||||
Corporate notes and bonds | 1 year or less | 125,868 | 12 | (801 | ) | 125,079 | |||||||||||
Long-term | |||||||||||||||||
Corporate notes and bonds | 3 years or less | 40,174 | 38 | (194 | ) | 40,018 | |||||||||||
Total | $ | 194,742 | $ | 50 | $ | (995 | ) | $ | 193,797 |
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As of December 31, | |||||||
2012 | 2011 | ||||||
Accounts receivable | $ | 114,635 | $ | 97,783 | |||
Less allowance for doubtful accounts | 46,708 | 35,627 | |||||
Accounts receivable, net | $ | 67,927 | $ | 62,156 |
As of December 31, | |||||||
2012 | 2011 | ||||||
Student loans receivable | $ | 17,450 | $ | 11,593 | |||
Less allowance for doubtful accounts | 2,307 | 2,338 | |||||
Student loans receivable, net | $ | 15,143 | $ | 9,255 |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful accounts receivable: | |||||||||||||||
For the year ended December 31, 2012 | $ | 35,627 | $ | 73,581 | $ | (62,500 | ) | $ | 46,708 | ||||||
For the year ended December 31, 2011 | 28,090 | 57,077 | (49,540 | ) | 35,627 | ||||||||||
For the year ended December 31, 2010 | 16,171 | 38,918 | (26,999 | ) | 28,090 | ||||||||||
Allowance for doubtful student loans receivable: | |||||||||||||||
For the year ended December 31, 2012 | $ | 2,338 | $ | 115 | $ | (146 | ) | $ | 2,307 | ||||||
For the year ended December 31, 2011 | 904 | 1,434 | — | 2,338 | |||||||||||
For the year ended December 31, 2010 | 191 | 713 | — | 904 |
(1) | Deductions represent accounts written off, net of recoveries. |
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As of December 31, | |||||||
2012 | 2011 | ||||||
Prepaid expenses | $ | 9,367 | $ | 5,588 | |||
Prepaid licenses | 5,864 | 4,583 | |||||
Prepaid income taxes | — | 2,874 | |||||
Prepaid insurance | 1,134 | 1,206 | |||||
Interest receivable | 2,221 | 1,876 | |||||
Other current assets | 1,224 | 1,072 | |||||
Total prepaid expenses and other current assets | $ | 19,810 | $ | 17,199 |
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As of December 31, | |||||||
2012 | 2011 | ||||||
Land | $ | 7,091 | $ | 7,091 | |||
Buildings | 25,430 | 18,947 | |||||
Furniture, office equipment and software | 85,709 | 74,793 | |||||
Leasehold improvements | 23,756 | 19,051 | |||||
Vehicles | 147 | 92 | |||||
Total property and equipment | 142,133 | 119,974 | |||||
Less accumulated depreciation and amortization | (46,167 | ) | (30,307 | ) | |||
Total property and equipment, net | $ | 95,966 | $ | 89,667 |
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As of December 31, | |||||||
2012 | 2011 | ||||||
Goodwill and indefinite-lived intangibles | $ | 3,424 | $ | 3,404 | |||
Definite-lived intangible assets | $ | 9,978 | $ | 4,735 | |||
Less accumulated amortization | (2,663 | ) | (1,102 | ) | |||
Definite-lived intangible assets, net | 7,315 | 3,633 | |||||
Total goodwill and intangibles, net | $ | 10,739 | $ | 7,037 |
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As of December 31, | |||||||
2012 | 2011 | ||||||
Accrued salaries and wages | $ | 11,585 | $ | 13,107 | |||
Accrued bonus | 1,603 | 3,067 | |||||
Accrued vacation | 8,993 | 7,492 | |||||
Accrued expenses | 15,924 | 16,539 | |||||
Accrued income taxes payable | 6,535 | — | |||||
Total accrued liabilities | $ | 44,640 | $ | 40,205 |
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As of December 31, | |||||||
2012 | 2011 | ||||||
Deferred revenue | $ | 44,967 | $ | 48,831 | |||
Student deposits | 130,090 | 136,615 | |||||
Total deferred revenue and student deposits | $ | 175,057 | $ | 185,446 |
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Year Ended December 31, | ||||
2013 | $ | 35,495 | ||
2014 | 36,962 | |||
2015 | 37,226 | |||
2016 | 38,205 | |||
2017 | 38,295 | |||
Thereafter | 79,391 | |||
Total minimum payments | $ | 265,574 |
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Options Outstanding | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||
December 31, 2009 | 10,573 | $ | 3.06 | 6.84 | $ | 126,590 | ||||||
Granted | 1,051 | 19.25 | ||||||||||
Exercised | (1,181 | ) | 0.88 | |||||||||
Forfeitures and expired | (248 | ) | 12.20 | |||||||||
December 31, 2010 | 10,195 | 4.76 | 5.47 | 147,545 | ||||||||
Granted | 1,294 | 17.41 | ||||||||||
Exercised | (3,070 | ) | 1.59 | |||||||||
Forfeitures and expired | (139 | ) | 17.65 | |||||||||
December 31, 2011 | 8,280 | 7.70 | 5.90 | 127,308 | ||||||||
Granted | 1,595 | 22.59 | ||||||||||
Exercised | (3,128 | ) | 0.72 | |||||||||
Forfeitures and expired | (335 | ) | 19.79 | |||||||||
December 31, 2012 | 6,412 | $ | 14.17 | 7.21 | $ | 9,010 | ||||||
Vested and expected to vest at December 31, 2012 | 6,283 | $ | 14.04 | 7.18 | $ | 9,002 | ||||||
Exercisable at December 31, 2012 | 3,709 | $ | 10.12 | 6.22 | $ | 8,897 |
2012 | 2011 | 2010 | |||||||||
Weighted average exercise price per share | $ | 22.59 | $ | 17.41 | $ | 19.25 | |||||
Risk-free interest rate | 1.2 | % | 2.5 | % | 2.3 | % | |||||
Expected dividend yield | — | — | — | ||||||||
Expected volatility | 54.6 | % | 52.7 | % | 45.7 | % | |||||
Expected life (in years) | 5.67 | 6.12 | 6.16 | ||||||||
Forfeiture rate | 4.0 | % | 4.0 | % | 3.0 | % | |||||
Weighted average grant date fair value per share | $ | 11.26 | $ | 9.07 | $ | 8.84 |
Restricted Stock Units | Weighted Average Grant Date Fair Value | |||||
Balance at December 31, 2010 | — | $ | — | |||
Awarded | 56,855 | 23.97 | ||||
Vested | — | — | ||||
Canceled | — | — | ||||
Balance at December 31, 2011 | 56,855 | 23.97 | ||||
Awarded | 362,199 | 9.72 | ||||
Vested | (56,855 | ) | 23.97 | |||
Canceled | — | — | ||||
Balance at December 31, 2012 | 362,199 | $ | 9.72 |
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Exercise Price | December 31, 2012 | December 31, 2011 | Expiration Date | |||||
$1.125 | 41 | 43 | 2013 | |||||
$2.250 | 55 | 55 | 2013 | |||||
$2.835 | — | 172 | 2013 | |||||
$2.925 | 19 | 19 | 2013 | |||||
$9.000 | 3 | 3 | 2013 | |||||
Total | 118 | 292 |
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Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Current: | |||||||||||
Federal | $ | 77,720 | $ | 88,513 | $ | 76,649 | |||||
State | 7,665 | 8,632 | 18,916 | ||||||||
85,385 | 97,145 | 95,565 | |||||||||
Deferred: | |||||||||||
Federal | (9,246 | ) | 6,997 | (5,485 | ) | ||||||
State | (726 | ) | (391 | ) | 119 | ||||||
(9,972 | ) | 6,606 | (5,366 | ) | |||||||
Total | $ | 75,413 | $ | 103,751 | $ | 90,199 |
As of December 31, | |||||||
2012 | 2011 | ||||||
Deferred tax assets: | |||||||
Net operating loss | $ | 258 | $ | 694 | |||
Fixed assets | 233 | 221 | |||||
Bad debt | 7,479 | 1,853 | |||||
Vacation accrual | 2,815 | 2,057 | |||||
Stock-based compensation | 13,299 | 17,175 | |||||
Deferred rent | 9,404 | 6,151 | |||||
State tax | 2,541 | 2,678 | |||||
Bonus accrual | 599 | 492 | |||||
Unearned interest | 731 | — | |||||
Unrealized loss on investments | — | 351 | |||||
Other | 386 | 234 | |||||
Total deferred tax assets | 37,745 | 31,906 | |||||
Valuation allowance | — | — | |||||
Net deferred tax assets | 37,745 | 31,906 | |||||
Deferred tax liabilities: | |||||||
Fixed assets and intangibles | (13,411 | ) | (15,277 | ) | |||
Unrealized gain on investments | (132 | ) | — | ||||
Total deferred tax liabilities | (13,543 | ) | (15,277 | ) | |||
Total net deferred tax assets | $ | 24,202 | $ | 16,629 |
As of December 31, | |||||||
2012 | 2011 | ||||||
Current deferred tax assets | $ | 10,936 | $ | 5,429 | |||
Current deferred tax liabilities | — | — | |||||
Noncurrent deferred tax assets | 13,266 | 11,200 | |||||
Noncurrent deferred tax liabilities | — | — | |||||
Total | $ | 24,202 | $ | 16,629 |
Year Ended December 31, | |||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||
Computed expected federal tax expense | $ | 69,592 | 35.0 | % | $ | 96,780 | 35.0 | % | $ | 76,223 | 35.0 | % | |||||
State taxes, net of federal benefit | 4,700 | 2.4 | 5,434 | 2.0 | 10,238 | 4.7 | |||||||||||
Permanent differences | 1,074 | 0.5 | 1,601 | 0.6 | 335 | 0.1 | |||||||||||
Uncertain tax positions | 31 | — | (192 | ) | (0.1 | ) | 3,401 | 1.6 | |||||||||
Other | 16 | — | 128 | — | 2 | — | |||||||||||
Income tax expense | $ | 75,413 | 37.9 | % | $ | 103,751 | 37.5 | % | $ | 90,199 | 41.4 | % |
Unrecognized tax benefits at December 31, 2010 | $ | 8,057 | |
Gross increases-tax positions in prior period | — | ||
Gross decreases-tax positions in prior period | 82 | ||
Gross increases-current period tax positions | 95 | ||
Settlements | — | ||
Lapse of statute of limitations | — | ||
Unrecognized tax benefits at December 31, 2011 | 8,070 | ||
Gross increases-tax positions in prior period | 965 | ||
Gross decreases-tax positions in prior period | — | ||
Gross increases-current period tax positions | 231 | ||
Settlements | — | ||
Lapse of statute of limitations | — | ||
Unrecognized tax benefits at December 31, 2012 | $ | 9,266 |
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First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2012 | |||||||||||||||
Revenue | $ | 250,437 | $ | 256,302 | $ | 252,076 | $ | 209,356 | |||||||
Operating income | 50,629 | 68,782 | 47,109 | 28,944 | |||||||||||
Net income | 31,971 | 43,258 | 29,820 | 18,372 | |||||||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.61 | $ | 0.82 | $ | 0.56 | $ | 0.34 | |||||||
Diluted | 0.57 | 0.77 | 0.53 | 0.33 |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2011 | |||||||||||||||
Revenue | $ | 229,432 | $ | 239,880 | $ | 242,771 | $ | 221,266 | |||||||
Operating income | 86,112 | 82,549 | 69,773 | 35,313 | |||||||||||
Net income | 53,919 | 52,149 | 43,811 | 22,885 | |||||||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 1.02 | $ | 0.99 | $ | 0.85 | $ | 0.44 | |||||||
Diluted | 0.92 | 0.90 | 0.78 | 0.41 |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | ||||||||||||
Instructional costs and services (as reported) | $ | 68,475 | $ | 65,395 | $ | 75,699 | $ | 105,875 | |||||||
Impact of reclassification | 14,025 | 13,130 | 12,674 | — | |||||||||||
Instructional costs and services (as reclassified) | 82,500 | 78,525 | 88,373 | 105,875 | |||||||||||
Impact of bad debt revision | 1,724 | 6,754 | 2,613 | (3,841 | ) | ||||||||||
Instructional costs and services (as reclassified and revised) | 84,224 | 85,279 | 90,986 | 102,034 | |||||||||||
Admissions advisory and marketing (as reported) | 80,063 | 78,608 | 90,291 | 65,239 | |||||||||||
Impact of reclassification | 9,979 | 8,586 | 6,443 | — | |||||||||||
Admissions advisory and marketing (as reclassified) | 90,042 | 87,194 | 96,734 | 65,239 | |||||||||||
General and administrative (as reported) | 49,546 | 36,763 | 36,364 | 13,139 | |||||||||||
Impact of reclassification | (24,004 | ) | (21,716 | ) | (19,117 | ) | — | ||||||||
General and administrative (as reclassified) | 25,542 | 15,047 | 17,247 | 13,139 | |||||||||||
Total costs and expenses (as reclassified and revised) | $ | 199,808 | $ | 187,520 | $ | 204,967 | $ | 180,412 |
As Reported | As Revised | As Reported | As Revised | As Reported | As Revised | As Reported | As Revised | ||||||||||||||||||||||||
Consolidated balance sheet data: | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | |||||||||||||||||||||||||||
Accounts receivable, net | $ | 92,853 | $ | 91,129 | $ | 99,617 | $ | 91,139 | $ | 111,010 | $ | 99,919 | $ | 75,177 | $ | 67,927 | |||||||||||||||
Deferred income taxes | N/A | N/A | N/A | N/A | N/A | N/A | $ | 8,228 | $ | 10,936 | |||||||||||||||||||||
Total current assets | $ | 442,893 | $ | 441,169 | $ | 468,242 | $ | 459,764 | $ | 463,606 | $ | 452,515 | $ | 496,147 | $ | 491,605 | |||||||||||||||
Total assets | $ | 684,171 | $ | 682,447 | $ | 731,597 | $ | 723,119 | $ | 747,190 | $ | 736,099 | $ | 755,329 | $ | 750,787 | |||||||||||||||
Accrued liabilities | $ | 67,409 | $ | 66,755 | $ | 57,858 | $ | 54,650 | $ | 56,609 | $ | 52,313 | N/A | N/A | |||||||||||||||||
Total current liabilities | $ | 261,229 | $ | 260,575 | $ | 251,220 | $ | 248,012 | $ | 236,121 | $ | 231,925 | N/A | N/A | |||||||||||||||||
Total liabilities | $ | 289,950 | $ | 289,296 | $ | 282,541 | $ | 279,333 | $ | 269,761 | $ | 265,565 | N/A | N/A | |||||||||||||||||
Retained earnings | $ | 384,218 | $ | 383,148 | $ | 431,676 | $ | 426,406 | $ | 463,121 | $ | 456,226 | $ | 479,140 | $ | 474,598 | |||||||||||||||
Total stockholders’ equity | $ | 394,221 | $ | 393,151 | $ | 449,056 | $ | 443,786 | $ | 477,429 | $ | 470,534 | $ | 496,112 | $ | 491,570 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 684,171 | $ | 682,447 | $ | 731,597 | $ | 723,119 | $ | 747,190 | $ | 736,099 | $ | 755,329 | $ | 750,787 | |||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||
Consolidated statement of income data: | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | |||||||||||||||||||||||||||
Instructional costs and services (1) | $ | 82,500 | $ | 84,224 | $ | 78,525 | $ | 85,279 | $ | 88,373 | $ | 90,986 | $ | 105,875 | $ | 102,034 | |||||||||||||||
Total costs and expenses | $ | 198,084 | $ | 199,808 | $ | 180,766 | $ | 187,520 | $ | 202,354 | $ | 204,967 | $ | 184,253 | $ | 180,412 | |||||||||||||||
Operating income | $ | 52,353 | $ | 50,629 | $ | 75,536 | $ | 68,782 | $ | 49,722 | $ | 47,109 | $ | 25,103 | $ | 28,944 | |||||||||||||||
Income before income taxes | $ | 53,036 | $ | 51,312 | $ | 76,390 | $ | 69,636 | $ | 50,677 | $ | 48,064 | $ | 25,980 | $ | 29,822 | |||||||||||||||
Income tax expense | $ | 19,995 | $ | 19,341 | $ | 28,932 | $ | 26,378 | $ | 19,232 | $ | 18,244 | $ | 9,962 | $ | 11,450 | |||||||||||||||
Net income | $ | 33,041 | $ | 31,971 | $ | 47,458 | $ | 43,258 | $ | 31,445 | $ | 29,820 | $ | 16,019 | $ | 18,372 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.61 | $ | 0.90 | $ | 0.82 | $ | 0.59 | $ | 0.56 | $ | 0.30 | $ | 0.34 | |||||||||||||||
Diluted | $ | 0.59 | $ | 0.57 | $ | 0.84 | $ | 0.77 | $ | 0.56 | $ | 0.53 | $ | 0.29 | $ | 0.33 | |||||||||||||||
Year to Date Period Ended | |||||||||||||||||||||||||||||||
Consolidated statement of income data: | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | |||||||||||||||||||||||||||
Instructional costs and services (1) | $ | 82,500 | $ | 84,224 | $ | 161,025 | $ | 169,503 | $ | 249,398 | $ | 260,489 | $ | 355,273 | $ | 362,523 | |||||||||||||||
Total costs and expenses | $ | 198,084 | $ | 199,808 | $ | 378,850 | $ | 387,328 | $ | 581,204 | $ | 592,295 | $ | 765,457 | $ | 772,707 | |||||||||||||||
Operating income | $ | 52,353 | $ | 50,629 | $ | 127,889 | $ | 119,411 | $ | 177,611 | $ | 166,520 | $ | 202,714 | $ | 195,464 | |||||||||||||||
Income before income taxes | $ | 53,036 | $ | 51,312 | $ | 129,426 | $ | 120,948 | $ | 180,103 | $ | 169,012 | $ | 206,084 | $ | 198,834 | |||||||||||||||
Income tax expense | $ | 19,995 | $ | 19,341 | $ | 48,927 | $ | 45,719 | $ | 68,159 | $ | 63,963 | $ | 78,121 | $ | 75,413 | |||||||||||||||
Net income | $ | 33,041 | $ | 31,971 | $ | 80,499 | $ | 75,229 | $ | 111,944 | $ | 105,049 | $ | 127,963 | $ | 123,421 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.61 | $ | 1.54 | $ | 1.44 | $ | 2.13 | $ | 2.00 | $ | 2.42 | $ | 2.33 | |||||||||||||||
Diluted | $ | 0.59 | $ | 0.57 | $ | 1.43 | $ | 1.34 | $ | 2.00 | $ | 1.87 | $ | 2.29 | $ | 2.21 | |||||||||||||||
Consolidated statement of cash flow data: | |||||||||||||||||||||||||||||||
Net income | $ | 33,041 | $ | 31,971 | $ | 80,499 | $ | 75,229 | $ | 111,944 | $ | 105,049 | $ | 127,963 | $ | 123,421 | |||||||||||||||
Provision for bad debts | $ | 14,945 | $ | 16,669 | $ | 24,923 | $ | 33,401 | $ | 41,327 | $ | 52,418 | $ | 66,446 | $ | 73,696 | |||||||||||||||
Deferred income taxes | N/A | N/A | N/A | N/A | N/A | N/A | $ | (7,264 | ) | $ | (9,972 | ) | |||||||||||||||||||
Accounts payable and accrued liabilities | $ | 27,505 | $ | 26,851 | $ | 21,700 | $ | 18,492 | $ | 23,559 | $ | 19,363 | N/A | N/A |
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As Reported | As Revised | ||||||
As of December 31, 2012 | |||||||
Consolidated balance sheet data: | |||||||
Accounts receivable, net | $ | 75,177 | $ | 67,927 | |||
Deferred income taxes | $ | 8,228 | $ | 10,936 | |||
Total current assets | $ | 496,147 | $ | 491,605 | |||
Total assets | $ | 755,329 | $ | 750,787 | |||
Retained earnings | $ | 479,140 | $ | 474,598 | |||
Total stockholders’ equity | $ | 496,112 | $ | 491,570 | |||
Total liabilities and stockholders’ equity | $ | 755,329 | $ | 750,787 | |||
Year ended December 31, 2012 | |||||||
Consolidated statement of income data: | |||||||
Instructional costs and services | $ | 355,273 | $ | 362,523 | |||
Total costs and expenses | $ | 765,457 | $ | 772,707 | |||
Operating income | $ | 202,714 | $ | 195,464 | |||
Income before income taxes | $ | 206,084 | $ | 198,834 | |||
Income tax expense | $ | 78,121 | $ | 75,413 | |||
Net income | $ | 127,963 | $ | 123,421 | |||
Earnings per share: | |||||||
Basic | $ | 2.42 | $ | 2.33 | |||
Diluted | $ | 2.29 | $ | 2.21 | |||
Consolidated statement of cash flow data: | |||||||
Net income | $ | 127,963 | $ | 123,421 | |||
Provision for bad debts | $ | 66,446 | $ | 73,696 | |||
Deferred income taxes | $ | (7,264 | ) | $ | (9,972 | ) |
As Reported | As Revised | As Reported | As Revised | As Reported | As Revised | As Reported | As Revised | ||||||||||||||||||||||||
Consolidated balance sheet data: | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | |||||||||||||||||||||||||||
Accounts receivable, net | $ | 92,853 | $ | 91,129 | $ | 99,617 | $ | 91,139 | $ | 111,010 | $ | 99,919 | $ | 75,177 | $ | 67,927 | |||||||||||||||
Deferred income taxes | N/A | N/A | N/A | N/A | N/A | N/A | $ | 8,228 | $ | 10,936 | |||||||||||||||||||||
Total current assets | $ | 442,893 | $ | 441,169 | $ | 468,242 | $ | 459,764 | $ | 463,606 | $ | 452,515 | $ | 496,147 | $ | 491,605 | |||||||||||||||
Total assets | $ | 684,171 | $ | 682,447 | $ | 731,597 | $ | 723,119 | $ | 747,190 | $ | 736,099 | $ | 755,329 | $ | 750,787 | |||||||||||||||
Accrued liabilities | $ | 67,409 | $ | 66,755 | $ | 57,858 | $ | 54,650 | $ | 56,609 | $ | 52,313 | N/A | N/A | |||||||||||||||||
Total current liabilities | $ | 261,229 | $ | 260,575 | $ | 251,220 | $ | 248,012 | $ | 236,121 | $ | 231,925 | N/A | N/A | |||||||||||||||||
Total liabilities | $ | 289,950 | $ | 289,296 | $ | 282,541 | $ | 279,333 | $ | 269,761 | $ | 265,565 | N/A | N/A | |||||||||||||||||
Retained earnings | $ | 384,218 | $ | 383,148 | $ | 431,676 | $ | 426,406 | $ | 463,121 | $ | 456,226 | $ | 479,140 | $ | 474,598 | |||||||||||||||
Total stockholders’ equity | $ | 394,221 | $ | 393,151 | $ | 449,056 | $ | 443,786 | $ | 477,429 | $ | 470,534 | $ | 496,112 | $ | 491,570 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 684,171 | $ | 682,447 | $ | 731,597 | $ | 723,119 | $ | 747,190 | $ | 736,099 | $ | 755,329 | $ | 750,787 | |||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||
Consolidated statement of income data: | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | |||||||||||||||||||||||||||
Instructional costs and services (1) | $ | 82,500 | $ | 84,224 | $ | 78,525 | $ | 85,279 | $ | 88,373 | $ | 90,986 | $ | 105,875 | $ | 102,034 | |||||||||||||||
Total costs and expenses | $ | 198,084 | $ | 199,808 | $ | 180,766 | $ | 187,520 | $ | 202,354 | $ | 204,967 | $ | 184,253 | $ | 180,412 | |||||||||||||||
Operating income | $ | 52,353 | $ | 50,629 | $ | 75,536 | $ | 68,782 | $ | 49,722 | $ | 47,109 | $ | 25,103 | $ | 28,944 | |||||||||||||||
Income before income taxes | $ | 53,036 | $ | 51,312 | $ | 76,390 | $ | 69,636 | $ | 50,677 | $ | 48,064 | $ | 25,980 | $ | 29,822 | |||||||||||||||
Income tax expense | $ | 19,995 | $ | 19,341 | $ | 28,932 | $ | 26,378 | $ | 19,232 | $ | 18,244 | $ | 9,962 | $ | 11,450 | |||||||||||||||
Net income | $ | 33,041 | $ | 31,971 | $ | 47,458 | $ | 43,258 | $ | 31,445 | $ | 29,820 | $ | 16,019 | $ | 18,372 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.61 | $ | 0.90 | $ | 0.82 | $ | 0.59 | $ | 0.56 | $ | 0.30 | $ | 0.34 | |||||||||||||||
Diluted | $ | 0.59 | $ | 0.57 | $ | 0.84 | $ | 0.77 | $ | 0.56 | $ | 0.53 | $ | 0.29 | $ | 0.33 | |||||||||||||||
Year to Date Period Ended | |||||||||||||||||||||||||||||||
Consolidated statement of income data: | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | |||||||||||||||||||||||||||
Instructional costs and services (1) | $ | 82,500 | $ | 84,224 | $ | 161,025 | $ | 169,503 | $ | 249,398 | $ | 260,489 | $ | 355,273 | $ | 362,523 | |||||||||||||||
Total costs and expenses | $ | 198,084 | $ | 199,808 | $ | 378,850 | $ | 387,328 | $ | 581,204 | $ | 592,295 | $ | 765,457 | $ | 772,707 | |||||||||||||||
Operating income | $ | 52,353 | $ | 50,629 | $ | 127,889 | $ | 119,411 | $ | 177,611 | $ | 166,520 | $ | 202,714 | $ | 195,464 | |||||||||||||||
Income before income taxes | $ | 53,036 | $ | 51,312 | $ | 129,426 | $ | 120,948 | $ | 180,103 | $ | 169,012 | $ | 206,084 | $ | 198,834 | |||||||||||||||
Income tax expense | $ | 19,995 | $ | 19,341 | $ | 48,927 | $ | 45,719 | $ | 68,159 | $ | 63,963 | $ | 78,121 | $ | 75,413 | |||||||||||||||
Net income | $ | 33,041 | $ | 31,971 | $ | 80,499 | $ | 75,229 | $ | 111,944 | $ | 105,049 | $ | 127,963 | $ | 123,421 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.61 | $ | 1.54 | $ | 1.44 | $ | 2.13 | $ | 2.00 | $ | 2.42 | $ | 2.33 | |||||||||||||||
Diluted | $ | 0.59 | $ | 0.57 | $ | 1.43 | $ | 1.34 | $ | 2.00 | $ | 1.87 | $ | 2.29 | $ | 2.21 | |||||||||||||||
Consolidated statement of cash flow data: | |||||||||||||||||||||||||||||||
Net income | $ | 33,041 | $ | 31,971 | $ | 80,499 | $ | 75,229 | $ | 111,944 | $ | 105,049 | $ | 127,963 | $ | 123,421 | |||||||||||||||
Provision for bad debts | $ | 14,945 | $ | 16,669 | $ | 24,923 | $ | 33,401 | $ | 41,327 | $ | 52,418 | $ | 66,446 | $ | 73,696 | |||||||||||||||
Deferred income taxes | N/A | N/A | N/A | N/A | N/A | N/A | $ | (7,264 | ) | $ | (9,972 | ) | |||||||||||||||||||
Accounts payable and accrued liabilities | $ | 27,505 | $ | 26,851 | $ | 21,700 | $ | 18,492 | $ | 23,559 | $ | 19,363 | N/A | N/A |
Buildings | 39 years |
Furniture, office equipment and software | 3 - 7 years |
Vehicles | 5 years |
|
Buildings | 39 years |
Furniture, office equipment and software | 3 - 7 years |
Vehicles | 5 years |
As of December 31, | |||||||
2012 | 2011 | ||||||
Land | $ | 7,091 | $ | 7,091 | |||
Buildings | 25,430 | 18,947 | |||||
Furniture, office equipment and software | 85,709 | 74,793 | |||||
Leasehold improvements | 23,756 | 19,051 | |||||
Vehicles | 147 | 92 | |||||
Total property and equipment | 142,133 | 119,974 | |||||
Less accumulated depreciation and amortization | (46,167 | ) | (30,307 | ) | |||
Total property and equipment, net | $ | 95,966 | $ | 89,667 |
December 31, 2012 | |||||||||||
(in thousands) | Before-Tax Amount | Tax Effect | Net-of-Tax Amount | ||||||||
Unrealized gains on investments | $ | 1,300 | $ | (483 | ) | $ | 817 | ||||
December 31, 2011 | |||||||||||
(in thousands) | Before-Tax Amount | Tax Effect | Net-of-Tax Amount | ||||||||
Unrealized losses on investments | $ | (946 | ) | $ | 351 | $ | (595 | ) |
|
December 31, 2011 | December 31, 2010 | ||||||||||||||
As Reported | As Reclassified | As Reported | As Reclassified | ||||||||||||
Instructional costs and services | $ | 259,138 | $ | 303,860 | $ | 187,399 | $ | 218,597 | |||||||
Admissions advisory and marketing | 267,354 | 297,619 | 211,550 | 231,959 | |||||||||||
General and administrative | 133,110 | 58,123 | 97,863 | 46,256 | |||||||||||
Total costs | $ | 659,602 | $ | 659,602 | $ | 496,812 | $ | 496,812 |
|
December 31, 2012 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Demand notes | $ | — | $ | 415 | $ | — | $ | 415 | |||||||
Corporate notes and bonds | — | 148,801 | — | 148,801 | |||||||||||
Total | $ | — | $ | 149,216 | $ | — | $ | 149,216 |
December 31, 2011 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Demand notes | $ | — | $ | 28,700 | $ | — | $ | 28,700 | |||||||
Corporate notes and bonds | — | 165,097 | — | 165,097 | |||||||||||
Total | $ | — | $ | 193,797 | $ | — | $ | 193,797 |
December 31, 2012 | |||||||||||||||||
Gross unrealized | |||||||||||||||||
Maturities in Years | Amortized Cost | Gain | Loss | Fair Value | |||||||||||||
Short-term | |||||||||||||||||
Demand notes | 1 year or less | $ | 415 | $ | — | $ | — | $ | 415 | ||||||||
Corporate notes and bonds | 1 year or less | 126,806 | 282 | (25 | ) | 127,063 | |||||||||||
Long-term | |||||||||||||||||
Corporate notes and bonds | 3 years or less | 21,641 | 117 | (20 | ) | 21,738 | |||||||||||
Total | $ | 148,862 | $ | 399 | $ | (45 | ) | $ | 149,216 |
December 31, 2011 | |||||||||||||||||
Gross unrealized | |||||||||||||||||
Maturities in Years | Amortized Cost | Gain | Loss | Fair Value | |||||||||||||
Short-term | |||||||||||||||||
Demand notes | 1 year or less | $ | 28,700 | $ | — | $ | — | $ | 28,700 | ||||||||
Corporate notes and bonds | 1 year or less | 125,868 | 12 | (801 | ) | 125,079 | |||||||||||
Long-term | |||||||||||||||||
Corporate notes and bonds | 3 years or less | 40,174 | 38 | (194 | ) | 40,018 | |||||||||||
Total | $ | 194,742 | $ | 50 | $ | (995 | ) | $ | 193,797 |
|
As of December 31, | |||||||
2012 | 2011 | ||||||
Accounts receivable | $ | 114,635 | $ | 97,783 | |||
Less allowance for doubtful accounts | 46,708 | 35,627 | |||||
Accounts receivable, net | $ | 67,927 | $ | 62,156 |
As of December 31, | |||||||
2012 | 2011 | ||||||
Student loans receivable | $ | 17,450 | $ | 11,593 | |||
Less allowance for doubtful accounts | 2,307 | 2,338 | |||||
Student loans receivable, net | $ | 15,143 | $ | 9,255 |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful accounts receivable: | |||||||||||||||
For the year ended December 31, 2012 | $ | 35,627 | $ | 73,581 | $ | (62,500 | ) | $ | 46,708 | ||||||
For the year ended December 31, 2011 | 28,090 | 57,077 | (49,540 | ) | 35,627 | ||||||||||
For the year ended December 31, 2010 | 16,171 | 38,918 | (26,999 | ) | 28,090 | ||||||||||
Allowance for doubtful student loans receivable: | |||||||||||||||
For the year ended December 31, 2012 | $ | 2,338 | $ | 115 | $ | (146 | ) | $ | 2,307 | ||||||
For the year ended December 31, 2011 | 904 | 1,434 | — | 2,338 | |||||||||||
For the year ended December 31, 2010 | 191 | 713 | — | 904 |
(1) | Deductions represent accounts written off, net of recoveries. |
|
As of December 31, | |||||||
2012 | 2011 | ||||||
Prepaid expenses | $ | 9,367 | $ | 5,588 | |||
Prepaid licenses | 5,864 | 4,583 | |||||
Prepaid income taxes | — | 2,874 | |||||
Prepaid insurance | 1,134 | 1,206 | |||||
Interest receivable | 2,221 | 1,876 | |||||
Other current assets | 1,224 | 1,072 | |||||
Total prepaid expenses and other current assets | $ | 19,810 | $ | 17,199 |
|
Buildings | 39 years |
Furniture, office equipment and software | 3 - 7 years |
Vehicles | 5 years |
As of December 31, | |||||||
2012 | 2011 | ||||||
Land | $ | 7,091 | $ | 7,091 | |||
Buildings | 25,430 | 18,947 | |||||
Furniture, office equipment and software | 85,709 | 74,793 | |||||
Leasehold improvements | 23,756 | 19,051 | |||||
Vehicles | 147 | 92 | |||||
Total property and equipment | 142,133 | 119,974 | |||||
Less accumulated depreciation and amortization | (46,167 | ) | (30,307 | ) | |||
Total property and equipment, net | $ | 95,966 | $ | 89,667 |
|
As of December 31, | |||||||
2012 | 2011 | ||||||
Goodwill and indefinite-lived intangibles | $ | 3,424 | $ | 3,404 | |||
Definite-lived intangible assets | $ | 9,978 | $ | 4,735 | |||
Less accumulated amortization | (2,663 | ) | (1,102 | ) | |||
Definite-lived intangible assets, net | 7,315 | 3,633 | |||||
Total goodwill and intangibles, net | $ | 10,739 | $ | 7,037 |
|
As of December 31, | |||||||
2012 | 2011 | ||||||
Accrued salaries and wages | $ | 11,585 | $ | 13,107 | |||
Accrued bonus | 1,603 | 3,067 | |||||
Accrued vacation | 8,993 | 7,492 | |||||
Accrued expenses | 15,924 | 16,539 | |||||
Accrued income taxes payable | 6,535 | — | |||||
Total accrued liabilities | $ | 44,640 | $ | 40,205 |
|
As of December 31, | |||||||
2012 | 2011 | ||||||
Deferred revenue | $ | 44,967 | $ | 48,831 | |||
Student deposits | 130,090 | 136,615 | |||||
Total deferred revenue and student deposits | $ | 175,057 | $ | 185,446 |
|
Year Ended December 31, | ||||
2013 | $ | 35,495 | ||
2014 | 36,962 | |||
2015 | 37,226 | |||
2016 | 38,205 | |||
2017 | 38,295 | |||
Thereafter | 79,391 | |||
Total minimum payments | $ | 265,574 |
|
Options Outstanding | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||
December 31, 2009 | 10,573 | $ | 3.06 | 6.84 | $ | 126,590 | ||||||
Granted | 1,051 | 19.25 | ||||||||||
Exercised | (1,181 | ) | 0.88 | |||||||||
Forfeitures and expired | (248 | ) | 12.20 | |||||||||
December 31, 2010 | 10,195 | 4.76 | 5.47 | 147,545 | ||||||||
Granted | 1,294 | 17.41 | ||||||||||
Exercised | (3,070 | ) | 1.59 | |||||||||
Forfeitures and expired | (139 | ) | 17.65 | |||||||||
December 31, 2011 | 8,280 | 7.70 | 5.90 | 127,308 | ||||||||
Granted | 1,595 | 22.59 | ||||||||||
Exercised | (3,128 | ) | 0.72 | |||||||||
Forfeitures and expired | (335 | ) | 19.79 | |||||||||
December 31, 2012 | 6,412 | $ | 14.17 | 7.21 | $ | 9,010 | ||||||
Vested and expected to vest at December 31, 2012 | 6,283 | $ | 14.04 | 7.18 | $ | 9,002 | ||||||
Exercisable at December 31, 2012 | 3,709 | $ | 10.12 | 6.22 | $ | 8,897 |
2012 | 2011 | 2010 | |||||||||
Weighted average exercise price per share | $ | 22.59 | $ | 17.41 | $ | 19.25 | |||||
Risk-free interest rate | 1.2 | % | 2.5 | % | 2.3 | % | |||||
Expected dividend yield | — | — | — | ||||||||
Expected volatility | 54.6 | % | 52.7 | % | 45.7 | % | |||||
Expected life (in years) | 5.67 | 6.12 | 6.16 | ||||||||
Forfeiture rate | 4.0 | % | 4.0 | % | 3.0 | % | |||||
Weighted average grant date fair value per share | $ | 11.26 | $ | 9.07 | $ | 8.84 |
Restricted Stock Units | Weighted Average Grant Date Fair Value | |||||
Balance at December 31, 2010 | — | $ | — | |||
Awarded | 56,855 | 23.97 | ||||
Vested | — | — | ||||
Canceled | — | — | ||||
Balance at December 31, 2011 | 56,855 | 23.97 | ||||
Awarded | 362,199 | 9.72 | ||||
Vested | (56,855 | ) | 23.97 | |||
Canceled | — | — | ||||
Balance at December 31, 2012 | 362,199 | $ | 9.72 |
|
Exercise Price | December 31, 2012 | December 31, 2011 | Expiration Date | |||||
$1.125 | 41 | 43 | 2013 | |||||
$2.250 | 55 | 55 | 2013 | |||||
$2.835 | — | 172 | 2013 | |||||
$2.925 | 19 | 19 | 2013 | |||||
$9.000 | 3 | 3 | 2013 | |||||
Total | 118 | 292 |
|
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Current: | |||||||||||
Federal | $ | 77,720 | $ | 88,513 | $ | 76,649 | |||||
State | 7,665 | 8,632 | 18,916 | ||||||||
85,385 | 97,145 | 95,565 | |||||||||
Deferred: | |||||||||||
Federal | (9,246 | ) | 6,997 | (5,485 | ) | ||||||
State | (726 | ) | (391 | ) | 119 | ||||||
(9,972 | ) | 6,606 | (5,366 | ) | |||||||
Total | $ | 75,413 | $ | 103,751 | $ | 90,199 |
As of December 31, | |||||||
2012 | 2011 | ||||||
Current deferred tax assets | $ | 10,936 | $ | 5,429 | |||
Current deferred tax liabilities | — | — | |||||
Noncurrent deferred tax assets | 13,266 | 11,200 | |||||
Noncurrent deferred tax liabilities | — | — | |||||
Total | $ | 24,202 | $ | 16,629 |
As of December 31, | |||||||
2012 | 2011 | ||||||
Deferred tax assets: | |||||||
Net operating loss | $ | 258 | $ | 694 | |||
Fixed assets | 233 | 221 | |||||
Bad debt | 7,479 | 1,853 | |||||
Vacation accrual | 2,815 | 2,057 | |||||
Stock-based compensation | 13,299 | 17,175 | |||||
Deferred rent | 9,404 | 6,151 | |||||
State tax | 2,541 | 2,678 | |||||
Bonus accrual | 599 | 492 | |||||
Unearned interest | 731 | — | |||||
Unrealized loss on investments | — | 351 | |||||
Other | 386 | 234 | |||||
Total deferred tax assets | 37,745 | 31,906 | |||||
Valuation allowance | — | — | |||||
Net deferred tax assets | 37,745 | 31,906 | |||||
Deferred tax liabilities: | |||||||
Fixed assets and intangibles | (13,411 | ) | (15,277 | ) | |||
Unrealized gain on investments | (132 | ) | — | ||||
Total deferred tax liabilities | (13,543 | ) | (15,277 | ) | |||
Total net deferred tax assets | $ | 24,202 | $ | 16,629 |
Year Ended December 31, | |||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||
Computed expected federal tax expense | $ | 69,592 | 35.0 | % | $ | 96,780 | 35.0 | % | $ | 76,223 | 35.0 | % | |||||
State taxes, net of federal benefit | 4,700 | 2.4 | 5,434 | 2.0 | 10,238 | 4.7 | |||||||||||
Permanent differences | 1,074 | 0.5 | 1,601 | 0.6 | 335 | 0.1 | |||||||||||
Uncertain tax positions | 31 | — | (192 | ) | (0.1 | ) | 3,401 | 1.6 | |||||||||
Other | 16 | — | 128 | — | 2 | — | |||||||||||
Income tax expense | $ | 75,413 | 37.9 | % | $ | 103,751 | 37.5 | % | $ | 90,199 | 41.4 | % |
Unrecognized tax benefits at December 31, 2010 | $ | 8,057 | |
Gross increases-tax positions in prior period | — | ||
Gross decreases-tax positions in prior period | 82 | ||
Gross increases-current period tax positions | 95 | ||
Settlements | — | ||
Lapse of statute of limitations | — | ||
Unrecognized tax benefits at December 31, 2011 | 8,070 | ||
Gross increases-tax positions in prior period | 965 | ||
Gross decreases-tax positions in prior period | — | ||
Gross increases-current period tax positions | 231 | ||
Settlements | — | ||
Lapse of statute of limitations | — | ||
Unrecognized tax benefits at December 31, 2012 | $ | 9,266 |
|
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2012 | |||||||||||||||
Revenue | $ | 250,437 | $ | 256,302 | $ | 252,076 | $ | 209,356 | |||||||
Operating income | 50,629 | 68,782 | 47,109 | 28,944 | |||||||||||
Net income | 31,971 | 43,258 | 29,820 | 18,372 | |||||||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.61 | $ | 0.82 | $ | 0.56 | $ | 0.34 | |||||||
Diluted | 0.57 | 0.77 | 0.53 | 0.33 |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2011 | |||||||||||||||
Revenue | $ | 229,432 | $ | 239,880 | $ | 242,771 | $ | 221,266 | |||||||
Operating income | 86,112 | 82,549 | 69,773 | 35,313 | |||||||||||
Net income | 53,919 | 52,149 | 43,811 | 22,885 | |||||||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 1.02 | $ | 0.99 | $ | 0.85 | $ | 0.44 | |||||||
Diluted | 0.92 | 0.90 | 0.78 | 0.41 |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | ||||||||||||
Instructional costs and services (as reported) | $ | 68,475 | $ | 65,395 | $ | 75,699 | $ | 105,875 | |||||||
Impact of reclassification | 14,025 | 13,130 | 12,674 | — | |||||||||||
Instructional costs and services (as reclassified) | 82,500 | 78,525 | 88,373 | 105,875 | |||||||||||
Impact of bad debt revision | 1,724 | 6,754 | 2,613 | (3,841 | ) | ||||||||||
Instructional costs and services (as reclassified and revised) | 84,224 | 85,279 | 90,986 | 102,034 | |||||||||||
Admissions advisory and marketing (as reported) | 80,063 | 78,608 | 90,291 | 65,239 | |||||||||||
Impact of reclassification | 9,979 | 8,586 | 6,443 | — | |||||||||||
Admissions advisory and marketing (as reclassified) | 90,042 | 87,194 | 96,734 | 65,239 | |||||||||||
General and administrative (as reported) | 49,546 | 36,763 | 36,364 | 13,139 | |||||||||||
Impact of reclassification | (24,004 | ) | (21,716 | ) | (19,117 | ) | — | ||||||||
General and administrative (as reclassified) | 25,542 | 15,047 | 17,247 | 13,139 | |||||||||||
Total costs and expenses (as reclassified and revised) | $ | 199,808 | $ | 187,520 | $ | 204,967 | $ | 180,412 |
As Reported | As Revised | ||||||
As of December 31, 2012 | |||||||
Consolidated balance sheet data: | |||||||
Accounts receivable, net | $ | 75,177 | $ | 67,927 | |||
Deferred income taxes | $ | 8,228 | $ | 10,936 | |||
Total current assets | $ | 496,147 | $ | 491,605 | |||
Total assets | $ | 755,329 | $ | 750,787 | |||
Retained earnings | $ | 479,140 | $ | 474,598 | |||
Total stockholders’ equity | $ | 496,112 | $ | 491,570 | |||
Total liabilities and stockholders’ equity | $ | 755,329 | $ | 750,787 | |||
Year ended December 31, 2012 | |||||||
Consolidated statement of income data: | |||||||
Instructional costs and services | $ | 355,273 | $ | 362,523 | |||
Total costs and expenses | $ | 765,457 | $ | 772,707 | |||
Operating income | $ | 202,714 | $ | 195,464 | |||
Income before income taxes | $ | 206,084 | $ | 198,834 | |||
Income tax expense | $ | 78,121 | $ | 75,413 | |||
Net income | $ | 127,963 | $ | 123,421 | |||
Earnings per share: | |||||||
Basic | $ | 2.42 | $ | 2.33 | |||
Diluted | $ | 2.29 | $ | 2.21 | |||
Consolidated statement of cash flow data: | |||||||
Net income | $ | 127,963 | $ | 123,421 | |||
Provision for bad debts | $ | 66,446 | $ | 73,696 | |||
Deferred income taxes | $ | (7,264 | ) | $ | (9,972 | ) |
As Reported | As Revised | As Reported | As Revised | As Reported | As Revised | As Reported | As Revised | ||||||||||||||||||||||||
Consolidated balance sheet data: | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | |||||||||||||||||||||||||||
Accounts receivable, net | $ | 92,853 | $ | 91,129 | $ | 99,617 | $ | 91,139 | $ | 111,010 | $ | 99,919 | $ | 75,177 | $ | 67,927 | |||||||||||||||
Deferred income taxes | N/A | N/A | N/A | N/A | N/A | N/A | $ | 8,228 | $ | 10,936 | |||||||||||||||||||||
Total current assets | $ | 442,893 | $ | 441,169 | $ | 468,242 | $ | 459,764 | $ | 463,606 | $ | 452,515 | $ | 496,147 | $ | 491,605 | |||||||||||||||
Total assets | $ | 684,171 | $ | 682,447 | $ | 731,597 | $ | 723,119 | $ | 747,190 | $ | 736,099 | $ | 755,329 | $ | 750,787 | |||||||||||||||
Accrued liabilities | $ | 67,409 | $ | 66,755 | $ | 57,858 | $ | 54,650 | $ | 56,609 | $ | 52,313 | N/A | N/A | |||||||||||||||||
Total current liabilities | $ | 261,229 | $ | 260,575 | $ | 251,220 | $ | 248,012 | $ | 236,121 | $ | 231,925 | N/A | N/A | |||||||||||||||||
Total liabilities | $ | 289,950 | $ | 289,296 | $ | 282,541 | $ | 279,333 | $ | 269,761 | $ | 265,565 | N/A | N/A | |||||||||||||||||
Retained earnings | $ | 384,218 | $ | 383,148 | $ | 431,676 | $ | 426,406 | $ | 463,121 | $ | 456,226 | $ | 479,140 | $ | 474,598 | |||||||||||||||
Total stockholders’ equity | $ | 394,221 | $ | 393,151 | $ | 449,056 | $ | 443,786 | $ | 477,429 | $ | 470,534 | $ | 496,112 | $ | 491,570 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 684,171 | $ | 682,447 | $ | 731,597 | $ | 723,119 | $ | 747,190 | $ | 736,099 | $ | 755,329 | $ | 750,787 | |||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||
Consolidated statement of income data: | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | |||||||||||||||||||||||||||
Instructional costs and services (1) | $ | 82,500 | $ | 84,224 | $ | 78,525 | $ | 85,279 | $ | 88,373 | $ | 90,986 | $ | 105,875 | $ | 102,034 | |||||||||||||||
Total costs and expenses | $ | 198,084 | $ | 199,808 | $ | 180,766 | $ | 187,520 | $ | 202,354 | $ | 204,967 | $ | 184,253 | $ | 180,412 | |||||||||||||||
Operating income | $ | 52,353 | $ | 50,629 | $ | 75,536 | $ | 68,782 | $ | 49,722 | $ | 47,109 | $ | 25,103 | $ | 28,944 | |||||||||||||||
Income before income taxes | $ | 53,036 | $ | 51,312 | $ | 76,390 | $ | 69,636 | $ | 50,677 | $ | 48,064 | $ | 25,980 | $ | 29,822 | |||||||||||||||
Income tax expense | $ | 19,995 | $ | 19,341 | $ | 28,932 | $ | 26,378 | $ | 19,232 | $ | 18,244 | $ | 9,962 | $ | 11,450 | |||||||||||||||
Net income | $ | 33,041 | $ | 31,971 | $ | 47,458 | $ | 43,258 | $ | 31,445 | $ | 29,820 | $ | 16,019 | $ | 18,372 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.61 | $ | 0.90 | $ | 0.82 | $ | 0.59 | $ | 0.56 | $ | 0.30 | $ | 0.34 | |||||||||||||||
Diluted | $ | 0.59 | $ | 0.57 | $ | 0.84 | $ | 0.77 | $ | 0.56 | $ | 0.53 | $ | 0.29 | $ | 0.33 | |||||||||||||||
Year to Date Period Ended | |||||||||||||||||||||||||||||||
Consolidated statement of income data: | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | |||||||||||||||||||||||||||
Instructional costs and services (1) | $ | 82,500 | $ | 84,224 | $ | 161,025 | $ | 169,503 | $ | 249,398 | $ | 260,489 | $ | 355,273 | $ | 362,523 | |||||||||||||||
Total costs and expenses | $ | 198,084 | $ | 199,808 | $ | 378,850 | $ | 387,328 | $ | 581,204 | $ | 592,295 | $ | 765,457 | $ | 772,707 | |||||||||||||||
Operating income | $ | 52,353 | $ | 50,629 | $ | 127,889 | $ | 119,411 | $ | 177,611 | $ | 166,520 | $ | 202,714 | $ | 195,464 | |||||||||||||||
Income before income taxes | $ | 53,036 | $ | 51,312 | $ | 129,426 | $ | 120,948 | $ | 180,103 | $ | 169,012 | $ | 206,084 | $ | 198,834 | |||||||||||||||
Income tax expense | $ | 19,995 | $ | 19,341 | $ | 48,927 | $ | 45,719 | $ | 68,159 | $ | 63,963 | $ | 78,121 | $ | 75,413 | |||||||||||||||
Net income | $ | 33,041 | $ | 31,971 | $ | 80,499 | $ | 75,229 | $ | 111,944 | $ | 105,049 | $ | 127,963 | $ | 123,421 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.61 | $ | 1.54 | $ | 1.44 | $ | 2.13 | $ | 2.00 | $ | 2.42 | $ | 2.33 | |||||||||||||||
Diluted | $ | 0.59 | $ | 0.57 | $ | 1.43 | $ | 1.34 | $ | 2.00 | $ | 1.87 | $ | 2.29 | $ | 2.21 | |||||||||||||||
Consolidated statement of cash flow data: | |||||||||||||||||||||||||||||||
Net income | $ | 33,041 | $ | 31,971 | $ | 80,499 | $ | 75,229 | $ | 111,944 | $ | 105,049 | $ | 127,963 | $ | 123,421 | |||||||||||||||
Provision for bad debts | $ | 14,945 | $ | 16,669 | $ | 24,923 | $ | 33,401 | $ | 41,327 | $ | 52,418 | $ | 66,446 | $ | 73,696 | |||||||||||||||
Deferred income taxes | N/A | N/A | N/A | N/A | N/A | N/A | $ | (7,264 | ) | $ | (9,972 | ) | |||||||||||||||||||
Accounts payable and accrued liabilities | $ | 27,505 | $ | 26,851 | $ | 21,700 | $ | 18,492 | $ | 23,559 | $ | 19,363 | N/A | N/A |
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