| Warrants
|
|
|
|
|
|
|
|
|
Buildings | 39 years |
Furniture and office equipment | 3 - 7 years |
Software | 3 years |
Vehicles | 5 years |
December 31, 2013 | |||||||||||
Before-Tax Amount | Tax Effect | Net-of-Tax Amount | |||||||||
Unrealized losses on investments | $ | (280 | ) | $ | 106 | $ | (174 | ) | |||
December 31, 2012 | |||||||||||
Before-Tax Amount | Tax Effect | Net-of-Tax Amount | |||||||||
Unrealized gains on investments | $ | 1,300 | $ | (483 | ) | $ | 817 | ||||
December 31, 2011 | |||||||||||
Before-Tax Amount | Tax Effect | Net-of-Tax Amount | |||||||||
Unrealized losses on investments | $ | (946 | ) | $ | 351 | (595 | ) |
|
December 31, 2013 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Demand notes | $ | — | $ | 719 | $ | — | $ | 719 | |||||||
Corporate notes and bonds | — | 16,244 | — | 16,244 | |||||||||||
Certificates of deposit | — | 90,000 | — | 90,000 | |||||||||||
Total | $ | — | $ | 106,963 | $ | — | $ | 106,963 |
December 31, 2012 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Demand notes | $ | — | $ | 415 | $ | — | $ | 415 | |||||||
Corporate notes and bonds | — | 148,801 | — | 148,801 | |||||||||||
Certificates of deposit | $ | — | $ | 109,489 | $ | — | $ | 109,489 | |||||||
Total | $ | — | $ | 258,705 | $ | — | $ | 258,705 |
December 31, 2013 | |||||||||||||||||
Gross unrealized | |||||||||||||||||
Maturities in Years | Amortized Cost | Gain | Loss | Fair Value | |||||||||||||
Short-term | |||||||||||||||||
Demand notes | 1 year or less | $ | 719 | $ | — | $ | — | $ | 719 | ||||||||
Corporate notes and bonds | 1 year or less | 5,132 | 50 | — | 5,182 | ||||||||||||
Certificates of deposit | 1 year or less | 60,000 | — | — | 60,000 | ||||||||||||
Long-term | |||||||||||||||||
Corporate notes and bonds | 3 years or less | 11,037 | 25 | — | 11,062 | ||||||||||||
Certificates of deposit | 3 years or less | 30,000 | — | — | 30,000 | ||||||||||||
Total | $ | 106,888 | $ | 75 | $ | — | $ | 106,963 |
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 | |||||||||||
Certificate of deposit | 1 year or less | 9,489 | — | — | 9,489 | ||||||||||||
Long-term | |||||||||||||||||
Corporate notes and bonds | 3 years or less | 21,641 | 117 | (20 | ) | 21,738 | |||||||||||
Certificate of deposit | 3 years or less | 100,000 | — | — | 100,000 | ||||||||||||
Total | $ | 258,351 | $ | 399 | $ | (45 | ) | $ | 258,705 |
|
As of December 31, | |||||||
2013 | 2012 | ||||||
Accounts receivable | $ | 70,668 | $ | 114,039 | |||
Less allowance for doubtful accounts | 42,103 | 46,668 | |||||
Accounts receivable, net | $ | 28,565 | $ | 67,371 |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful accounts receivable: | |||||||||||||||
For the year ended December 31, 2013 | $ | 46,668 | $ | 72,495 | $ | (77,060 | ) | $ | 42,103 | ||||||
For the year ended December 31, 2012 | 35,587 | 73,581 | (62,500 | ) | 46,668 | ||||||||||
For the year ended December 31, 2011 | 28,064 | 57,077 | (49,554 | ) | 35,587 |
(1) | Deductions represent accounts written off, net of recoveries. |
As of December 31, | |||||||
Short-term: | 2013 | 2012 | |||||
Student loans receivable (non-tuition related) | $ | 587 | $ | 428 | |||
Student loans receivable (tuition related) | 621 | 167 | |||||
Current student loans receivable | 1,208 | 595 | |||||
Less allowance for doubtful accounts | 165 | 39 | |||||
Student loans receivable, net | $ | 1,043 | $ | 556 | |||
As of December 31, | |||||||
Long-term: | 2013 | 2012 | |||||
Student loans receivable (non-tuition related) | $ | 7,347 | $ | 9,279 | |||
Student loans receivable (tuition related) | 6,417 | 8,171 | |||||
Non-current student loans receivable | 13,764 | 17,450 | |||||
Less allowance for doubtful accounts | 1,979 | 2,307 | |||||
Student loans receivable, net | $ | 11,785 | $ | 15,143 |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful student loans receivable: | |||||||||||||||
For the year ended December 31, 2013 | $ | 2,346 | $ | (182 | ) | $ | (19 | ) | $ | 2,145 | |||||
For the year ended December 31, 2012 | 2,378 | 115 | (147 | ) | 2,346 | ||||||||||
For the year ended December 31, 2011 | 930 | 1,434 | 14 | 2,378 |
(1) | Deductions represent accounts written off, net of recoveries. |
Less than 120 days | $ | 16,998 | |
From 120 - 269 days | 1,238 | ||
Greater than 270 days | 2,132 | ||
Total gross student loans receivable | 20,368 | ||
Less: Amounts reserved or impaired | (4,143 | ) | |
Less: Discount on student loans receivable | (3,397 | ) | |
Total student loans receivable, net | $ | 12,828 |
|
As of December 31, | |||||||
2013 | 2012 | ||||||
Accounts receivable | $ | 70,668 | $ | 114,039 | |||
Less allowance for doubtful accounts | 42,103 | 46,668 | |||||
Accounts receivable, net | $ | 28,565 | $ | 67,371 |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful accounts receivable: | |||||||||||||||
For the year ended December 31, 2013 | $ | 46,668 | $ | 72,495 | $ | (77,060 | ) | $ | 42,103 | ||||||
For the year ended December 31, 2012 | 35,587 | 73,581 | (62,500 | ) | 46,668 | ||||||||||
For the year ended December 31, 2011 | 28,064 | 57,077 | (49,554 | ) | 35,587 |
(1) | Deductions represent accounts written off, net of recoveries. |
As of December 31, | |||||||
Short-term: | 2013 | 2012 | |||||
Student loans receivable (non-tuition related) | $ | 587 | $ | 428 | |||
Student loans receivable (tuition related) | 621 | 167 | |||||
Current student loans receivable | 1,208 | 595 | |||||
Less allowance for doubtful accounts | 165 | 39 | |||||
Student loans receivable, net | $ | 1,043 | $ | 556 | |||
As of December 31, | |||||||
Long-term: | 2013 | 2012 | |||||
Student loans receivable (non-tuition related) | $ | 7,347 | $ | 9,279 | |||
Student loans receivable (tuition related) | 6,417 | 8,171 | |||||
Non-current student loans receivable | 13,764 | 17,450 | |||||
Less allowance for doubtful accounts | 1,979 | 2,307 | |||||
Student loans receivable, net | $ | 11,785 | $ | 15,143 |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful student loans receivable: | |||||||||||||||
For the year ended December 31, 2013 | $ | 2,346 | $ | (182 | ) | $ | (19 | ) | $ | 2,145 | |||||
For the year ended December 31, 2012 | 2,378 | 115 | (147 | ) | 2,346 | ||||||||||
For the year ended December 31, 2011 | 930 | 1,434 | 14 | 2,378 |
(1) | Deductions represent accounts written off, net of recoveries. |
Less than 120 days | $ | 16,998 | |
From 120 - 269 days | 1,238 | ||
Greater than 270 days | 2,132 | ||
Total gross student loans receivable | 20,368 | ||
Less: Amounts reserved or impaired | (4,143 | ) | |
Less: Discount on student loans receivable | (3,397 | ) | |
Total student loans receivable, net | $ | 12,828 |
|
As of December 31, | |||||||
2013 | 2012 | ||||||
Prepaid expenses | $ | 10,814 | $ | 9,367 | |||
Prepaid licenses | 5,833 | 5,864 | |||||
Prepaid insurance | 1,131 | 1,134 | |||||
Interest receivable | 86 | 2,221 | |||||
Other current assets | 3,505 | 1,224 | |||||
Total prepaid expenses and other current assets | $ | 21,369 | $ | 19,810 |
|
As of December 31, | |||||||
2013 | 2012 | ||||||
Land | $ | 7,091 | $ | 7,091 | |||
Buildings | 28,916 | 25,430 | |||||
Furniture and office equipment | 84,852 | 79,656 | |||||
Software | 10,075 | 6,053 | |||||
Leasehold improvements | 24,360 | 23,756 | |||||
Vehicles | 147 | 147 | |||||
Total property and equipment | 155,441 | 142,133 | |||||
Less accumulated depreciation and amortization | (64,016 | ) | (46,167 | ) | |||
Total property and equipment, net | $ | 91,425 | $ | 95,966 |
|
December 31, 2013 | |||||||||||
Definite-lived intangible assets: | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||
Capitalized curriculum costs | $ | 14,540 | $ | (5,035 | ) | $ | 9,505 | ||||
Purchased intangible assets | 15,857 | (1,051 | ) | 14,806 | |||||||
Total definite-lived intangible assets | $ | 30,397 | $ | (6,086 | ) | $ | 24,311 | ||||
Goodwill and indefinite-lived intangibles | 2,567 | ||||||||||
Total goodwill and intangibles, net | $ | 26,878 | |||||||||
December 31, 2012 | |||||||||||
Definite-lived intangible assets: | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||
Capitalized curriculum costs | $ | 9,977 | $ | (1,823 | ) | $ | 8,154 | ||||
Purchased intangible assets | $ | 857 | $ | (839 | ) | $ | 18 | ||||
Total definite-lived intangible assets | $ | 10,834 | $ | (2,662 | ) | $ | 8,172 | ||||
Goodwill and indefinite-lived intangibles | 2,567 | ||||||||||
Total goodwill and intangibles, net | $ | 10,739 |
Year Ended December 31, | ||||
2014 | $ | 5,143 | ||
2015 | 3,995 | |||
2016 | 2,234 | |||
2017 | 1,232 | |||
2018 | 1,232 | |||
Thereafter | 10,475 | |||
Total future amortization expense | $ | 24,311 |
|
As of December 31, | |||||||
2013 | 2012 | ||||||
Accrued salaries and wages | $ | 12,790 | $ | 11,585 | |||
Accrued bonus | 2,277 | 1,603 | |||||
Accrued vacation | 9,696 | 8,993 | |||||
Accrued litigation and fees | 8,000 | — | |||||
Accrued expenses | 19,081 | 15,924 | |||||
Rent liability | 2,446 | — | |||||
Accrued income taxes payable | 466 | 6,535 | |||||
Total accrued liabilities | $ | 54,756 | $ | 44,640 |
|
As of December 31, | |||||||
2013 | 2012 | ||||||
Deferred revenue | $ | 29,279 | $ | 44,967 | |||
Student deposits | 103,512 | 130,090 | |||||
Total deferred revenue and student deposits | $ | 132,791 | $ | 175,057 |
|
|
Year Ended December 31, | ||||
2014 | $ | 36,962 | ||
2015 | 37,226 | |||
2016 | 37,293 | |||
2017 | 37,363 | |||
2018 | 34,072 | |||
Thereafter | 41,722 | |||
Total minimum payments | $ | 224,638 |
|
Options Outstanding | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||
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 | |||||||
Granted | 483 | 10.23 | ||||||||||
Exercised | (1,060 | ) | 9.87 | |||||||||
Forfeitures and expired | (345 | ) | 20.65 | |||||||||
December 31, 2013 | 5,490 | $ | 14.25 | 6.52 | $ | 28,769 | ||||||
Vested and expected to vest at December 31, 2013 | 5,435 | $ | 14.22 | 6.50 | $ | 28,588 | ||||||
Exercisable at December 31, 2013 | 3,809 | $ | 12.82 | 5.80 | $ | 23,827 |
2013 | 2012 | 2011 | |||||||||
Weighted average exercise price per share | $ | 10.23 | $ | 22.59 | $ | 17.41 | |||||
Risk-free interest rate | 1.0 | % | 1.2 | % | 2.5 | % | |||||
Expected dividend yield | — | — | — | ||||||||
Expected volatility | 58.9 | % | 54.6 | % | 52.7 | % | |||||
Expected life (in years) | 5.85 | 5.67 | 6.12 | ||||||||
Forfeiture rate | 5.0 | % | 4.0 | % | 4.0 | % | |||||
Weighted average grant date fair value per share | $ | 5.48 | $ | 11.26 | $ | 9.07 |
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 | ||||
Awarded | 1,016,035 | 10.50 | ||||
Vested | (181,104 | ) | 9.72 | |||
Canceled | (98,613 | ) | 10.39 | |||
Balance at December 31, 2013 | 1,098,517 | $ | 10.38 |
|
Exercise Price | December 31, 2012 | ||
$1.125 | 41 | ||
$2.250 | 55 | ||
$2.835 | — | ||
$2.925 | 19 | ||
$9.000 | 3 | ||
Total | 118 |
|
|
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal | $ | 30,051 | $ | 77,720 | $ | 88,513 | |||||
State | 3,234 | 7,665 | 8,632 | ||||||||
33,285 | 85,385 | 97,145 | |||||||||
Deferred: | |||||||||||
Federal | (9,172 | ) | (9,246 | ) | 6,997 | ||||||
State | (1,334 | ) | (726 | ) | (391 | ) | |||||
(10,506 | ) | (9,972 | ) | 6,606 | |||||||
Total | $ | 22,779 | $ | 75,413 | $ | 103,751 |
As of December 31, | |||||||
2013 | 2012 | ||||||
Deferred tax assets: | |||||||
Net operating loss | $ | 235 | $ | 258 | |||
Fixed assets | 214 | 233 | |||||
Bad debt | 6,855 | 7,479 | |||||
Vacation accrual | 2,762 | 2,815 | |||||
Stock-based compensation | 15,340 | 13,299 | |||||
Deferred rent | 9,944 | 9,404 | |||||
State tax | 2,316 | 2,541 | |||||
Bonus accrual | 849 | 599 | |||||
Unearned interest | 1,281 | 731 | |||||
Accrued expenses | 4,224 | 52 | |||||
Revenue reserves | 1,145 | 189 | |||||
Other | 153 | 145 | |||||
Total deferred tax assets | 45,318 | 37,745 | |||||
Valuation allowance | — | — | |||||
Net deferred tax assets | 45,318 | 37,745 | |||||
Deferred tax liabilities: | |||||||
Fixed assets and intangibles | (11,550 | ) | (13,411 | ) | |||
Unrealized gain on investments | (28 | ) | (132 | ) | |||
Total deferred tax liabilities | (11,578 | ) | (13,543 | ) | |||
Total net deferred tax assets | $ | 33,740 | $ | 24,202 |
As of December 31, | |||||||
2013 | 2012 | ||||||
Current deferred tax assets | $ | 15,232 | $ | 10,936 | |||
Current deferred tax liabilities | — | — | |||||
Noncurrent deferred tax assets | 18,508 | 13,266 | |||||
Noncurrent deferred tax liabilities | — | — | |||||
Total | $ | 33,740 | $ | 24,202 |
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Computed expected federal tax expense | $ | 22,326 | 35.0 | % | $ | 69,592 | 35.0 | % | $ | 96,780 | 35.0 | % | |||||
State taxes, net of federal benefit | 1,183 | 1.8 | 4,700 | 2.4 | 5,434 | 2.0 | |||||||||||
Permanent differences | 917 | 1.5 | 1,074 | 0.5 | 1,601 | 0.6 | |||||||||||
Uncertain tax positions | (1,647 | ) | (2.6 | ) | 31 | — | (192 | ) | (0.1 | ) | |||||||
Other | — | — | 16 | — | 128 | — | |||||||||||
Income tax expense | $ | 22,779 | 35.7 | % | $ | 75,413 | 37.9 | % | $ | 103,751 | 37.5 | % |
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 | ||
Gross increases-tax positions in prior period | — | ||
Gross decreases-tax positions in prior period | (5 | ) | |
Gross increases-current period tax positions | 100 | ||
Settlements | — | ||
Lapse of statute of limitations | (1,974 | ) | |
Unrecognized tax benefits at December 31, 2013 | $ | 7,387 |
|
|
|
|
|
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2013 | |||||||||||||||
Revenue | $ | 221,984 | $ | 197,574 | $ | 185,612 | $ | 163,453 | |||||||
Operating income (loss) | 43,420 | 16,028 | 12,851 | (11,856 | ) | ||||||||||
Net income (loss) | 26,967 | 10,368 | 10,135 | (6,460 | ) | ||||||||||
Earnings (loss) per common share: | |||||||||||||||
Basic | $ | 0.50 | $ | 0.19 | $ | 0.19 | $ | (0.12 | ) | ||||||
Diluted | 0.49 | 0.19 | 0.18 | (0.12 | ) |
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 |
|
|
Buildings | 39 years |
Furniture and office equipment | 3 - 7 years |
Software | 3 years |
Vehicles | 5 years |
December 31, 2013 | |||||||||||
Before-Tax Amount | Tax Effect | Net-of-Tax Amount | |||||||||
Unrealized losses on investments | $ | (280 | ) | $ | 106 | $ | (174 | ) | |||
December 31, 2012 | |||||||||||
Before-Tax Amount | Tax Effect | Net-of-Tax Amount | |||||||||
Unrealized gains on investments | $ | 1,300 | $ | (483 | ) | $ | 817 | ||||
December 31, 2011 | |||||||||||
Before-Tax Amount | Tax Effect | Net-of-Tax Amount | |||||||||
Unrealized losses on investments | $ | (946 | ) | $ | 351 | (595 | ) |
|
Buildings | 39 years |
Furniture and office equipment | 3 - 7 years |
Software | 3 years |
Vehicles | 5 years |
As of December 31, | |||||||
2013 | 2012 | ||||||
Land | $ | 7,091 | $ | 7,091 | |||
Buildings | 28,916 | 25,430 | |||||
Furniture and office equipment | 84,852 | 79,656 | |||||
Software | 10,075 | 6,053 | |||||
Leasehold improvements | 24,360 | 23,756 | |||||
Vehicles | 147 | 147 | |||||
Total property and equipment | 155,441 | 142,133 | |||||
Less accumulated depreciation and amortization | (64,016 | ) | (46,167 | ) | |||
Total property and equipment, net | $ | 91,425 | $ | 95,966 |
December 31, 2013 | |||||||||||
Before-Tax Amount | Tax Effect | Net-of-Tax Amount | |||||||||
Unrealized losses on investments | $ | (280 | ) | $ | 106 | $ | (174 | ) | |||
December 31, 2012 | |||||||||||
Before-Tax Amount | Tax Effect | Net-of-Tax Amount | |||||||||
Unrealized gains on investments | $ | 1,300 | $ | (483 | ) | $ | 817 | ||||
December 31, 2011 | |||||||||||
Before-Tax Amount | Tax Effect | Net-of-Tax Amount | |||||||||
Unrealized losses on investments | $ | (946 | ) | $ | 351 | (595 | ) |
|
December 31, 2013 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Demand notes | $ | — | $ | 719 | $ | — | $ | 719 | |||||||
Corporate notes and bonds | — | 16,244 | — | 16,244 | |||||||||||
Certificates of deposit | — | 90,000 | — | 90,000 | |||||||||||
Total | $ | — | $ | 106,963 | $ | — | $ | 106,963 |
December 31, 2012 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Demand notes | $ | — | $ | 415 | $ | — | $ | 415 | |||||||
Corporate notes and bonds | — | 148,801 | — | 148,801 | |||||||||||
Certificates of deposit | $ | — | $ | 109,489 | $ | — | $ | 109,489 | |||||||
Total | $ | — | $ | 258,705 | $ | — | $ | 258,705 |
December 31, 2013 | |||||||||||||||||
Gross unrealized | |||||||||||||||||
Maturities in Years | Amortized Cost | Gain | Loss | Fair Value | |||||||||||||
Short-term | |||||||||||||||||
Demand notes | 1 year or less | $ | 719 | $ | — | $ | — | $ | 719 | ||||||||
Corporate notes and bonds | 1 year or less | 5,132 | 50 | — | 5,182 | ||||||||||||
Certificates of deposit | 1 year or less | 60,000 | — | — | 60,000 | ||||||||||||
Long-term | |||||||||||||||||
Corporate notes and bonds | 3 years or less | 11,037 | 25 | — | 11,062 | ||||||||||||
Certificates of deposit | 3 years or less | 30,000 | — | — | 30,000 | ||||||||||||
Total | $ | 106,888 | $ | 75 | $ | — | $ | 106,963 |
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 | |||||||||||
Certificate of deposit | 1 year or less | 9,489 | — | — | 9,489 | ||||||||||||
Long-term | |||||||||||||||||
Corporate notes and bonds | 3 years or less | 21,641 | 117 | (20 | ) | 21,738 | |||||||||||
Certificate of deposit | 3 years or less | 100,000 | — | — | 100,000 | ||||||||||||
Total | $ | 258,351 | $ | 399 | $ | (45 | ) | $ | 258,705 |
|
As of December 31, | |||||||
2013 | 2012 | ||||||
Accounts receivable | $ | 70,668 | $ | 114,039 | |||
Less allowance for doubtful accounts | 42,103 | 46,668 | |||||
Accounts receivable, net | $ | 28,565 | $ | 67,371 |
As of December 31, | |||||||
Short-term: | 2013 | 2012 | |||||
Student loans receivable (non-tuition related) | $ | 587 | $ | 428 | |||
Student loans receivable (tuition related) | 621 | 167 | |||||
Current student loans receivable | 1,208 | 595 | |||||
Less allowance for doubtful accounts | 165 | 39 | |||||
Student loans receivable, net | $ | 1,043 | $ | 556 | |||
As of December 31, | |||||||
Long-term: | 2013 | 2012 | |||||
Student loans receivable (non-tuition related) | $ | 7,347 | $ | 9,279 | |||
Student loans receivable (tuition related) | 6,417 | 8,171 | |||||
Non-current student loans receivable | 13,764 | 17,450 | |||||
Less allowance for doubtful accounts | 1,979 | 2,307 | |||||
Student loans receivable, net | $ | 11,785 | $ | 15,143 |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful accounts receivable: | |||||||||||||||
For the year ended December 31, 2013 | $ | 46,668 | $ | 72,495 | $ | (77,060 | ) | $ | 42,103 | ||||||
For the year ended December 31, 2012 | 35,587 | 73,581 | (62,500 | ) | 46,668 | ||||||||||
For the year ended December 31, 2011 | 28,064 | 57,077 | (49,554 | ) | 35,587 |
(1) | Deductions represent accounts written off, net of recoveries. |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful student loans receivable: | |||||||||||||||
For the year ended December 31, 2013 | $ | 2,346 | $ | (182 | ) | $ | (19 | ) | $ | 2,145 | |||||
For the year ended December 31, 2012 | 2,378 | 115 | (147 | ) | 2,346 | ||||||||||
For the year ended December 31, 2011 | 930 | 1,434 | 14 | 2,378 |
(1) | Deductions represent accounts written off, net of recoveries. |
|
As of December 31, | |||||||
2013 | 2012 | ||||||
Accounts receivable | $ | 70,668 | $ | 114,039 | |||
Less allowance for doubtful accounts | 42,103 | 46,668 | |||||
Accounts receivable, net | $ | 28,565 | $ | 67,371 |
As of December 31, | |||||||
Short-term: | 2013 | 2012 | |||||
Student loans receivable (non-tuition related) | $ | 587 | $ | 428 | |||
Student loans receivable (tuition related) | 621 | 167 | |||||
Current student loans receivable | 1,208 | 595 | |||||
Less allowance for doubtful accounts | 165 | 39 | |||||
Student loans receivable, net | $ | 1,043 | $ | 556 | |||
As of December 31, | |||||||
Long-term: | 2013 | 2012 | |||||
Student loans receivable (non-tuition related) | $ | 7,347 | $ | 9,279 | |||
Student loans receivable (tuition related) | 6,417 | 8,171 | |||||
Non-current student loans receivable | 13,764 | 17,450 | |||||
Less allowance for doubtful accounts | 1,979 | 2,307 | |||||
Student loans receivable, net | $ | 11,785 | $ | 15,143 |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful accounts receivable: | |||||||||||||||
For the year ended December 31, 2013 | $ | 46,668 | $ | 72,495 | $ | (77,060 | ) | $ | 42,103 | ||||||
For the year ended December 31, 2012 | 35,587 | 73,581 | (62,500 | ) | 46,668 | ||||||||||
For the year ended December 31, 2011 | 28,064 | 57,077 | (49,554 | ) | 35,587 |
(1) | Deductions represent accounts written off, net of recoveries. |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful student loans receivable: | |||||||||||||||
For the year ended December 31, 2013 | $ | 2,346 | $ | (182 | ) | $ | (19 | ) | $ | 2,145 | |||||
For the year ended December 31, 2012 | 2,378 | 115 | (147 | ) | 2,346 | ||||||||||
For the year ended December 31, 2011 | 930 | 1,434 | 14 | 2,378 |
(1) | Deductions represent accounts written off, net of recoveries. |
Less than 120 days | $ | 16,998 | |
From 120 - 269 days | 1,238 | ||
Greater than 270 days | 2,132 | ||
Total gross student loans receivable | 20,368 | ||
Less: Amounts reserved or impaired | (4,143 | ) | |
Less: Discount on student loans receivable | (3,397 | ) | |
Total student loans receivable, net | $ | 12,828 |
|
As of December 31, | |||||||
2013 | 2012 | ||||||
Prepaid expenses | $ | 10,814 | $ | 9,367 | |||
Prepaid licenses | 5,833 | 5,864 | |||||
Prepaid insurance | 1,131 | 1,134 | |||||
Interest receivable | 86 | 2,221 | |||||
Other current assets | 3,505 | 1,224 | |||||
Total prepaid expenses and other current assets | $ | 21,369 | $ | 19,810 |
|
Buildings | 39 years |
Furniture and office equipment | 3 - 7 years |
Software | 3 years |
Vehicles | 5 years |
As of December 31, | |||||||
2013 | 2012 | ||||||
Land | $ | 7,091 | $ | 7,091 | |||
Buildings | 28,916 | 25,430 | |||||
Furniture and office equipment | 84,852 | 79,656 | |||||
Software | 10,075 | 6,053 | |||||
Leasehold improvements | 24,360 | 23,756 | |||||
Vehicles | 147 | 147 | |||||
Total property and equipment | 155,441 | 142,133 | |||||
Less accumulated depreciation and amortization | (64,016 | ) | (46,167 | ) | |||
Total property and equipment, net | $ | 91,425 | $ | 95,966 |
|
December 31, 2013 | |||||||||||
Definite-lived intangible assets: | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||
Capitalized curriculum costs | $ | 14,540 | $ | (5,035 | ) | $ | 9,505 | ||||
Purchased intangible assets | 15,857 | (1,051 | ) | 14,806 | |||||||
Total definite-lived intangible assets | $ | 30,397 | $ | (6,086 | ) | $ | 24,311 | ||||
Goodwill and indefinite-lived intangibles | 2,567 | ||||||||||
Total goodwill and intangibles, net | $ | 26,878 | |||||||||
December 31, 2012 | |||||||||||
Definite-lived intangible assets: | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||
Capitalized curriculum costs | $ | 9,977 | $ | (1,823 | ) | $ | 8,154 | ||||
Purchased intangible assets | $ | 857 | $ | (839 | ) | $ | 18 | ||||
Total definite-lived intangible assets | $ | 10,834 | $ | (2,662 | ) | $ | 8,172 | ||||
Goodwill and indefinite-lived intangibles | 2,567 | ||||||||||
Total goodwill and intangibles, net | $ | 10,739 |
Year Ended December 31, | ||||
2014 | $ | 5,143 | ||
2015 | 3,995 | |||
2016 | 2,234 | |||
2017 | 1,232 | |||
2018 | 1,232 | |||
Thereafter | 10,475 | |||
Total future amortization expense | $ | 24,311 |
|
As of December 31, | |||||||
2013 | 2012 | ||||||
Accrued salaries and wages | $ | 12,790 | $ | 11,585 | |||
Accrued bonus | 2,277 | 1,603 | |||||
Accrued vacation | 9,696 | 8,993 | |||||
Accrued litigation and fees | 8,000 | — | |||||
Accrued expenses | 19,081 | 15,924 | |||||
Rent liability | 2,446 | — | |||||
Accrued income taxes payable | 466 | 6,535 | |||||
Total accrued liabilities | $ | 54,756 | $ | 44,640 |
|
As of December 31, | |||||||
2013 | 2012 | ||||||
Deferred revenue | $ | 29,279 | $ | 44,967 | |||
Student deposits | 103,512 | 130,090 | |||||
Total deferred revenue and student deposits | $ | 132,791 | $ | 175,057 |
|
Year Ended December 31, | ||||
2014 | $ | 36,962 | ||
2015 | 37,226 | |||
2016 | 37,293 | |||
2017 | 37,363 | |||
2018 | 34,072 | |||
Thereafter | 41,722 | |||
Total minimum payments | $ | 224,638 |
|
Options Outstanding | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||
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 | |||||||
Granted | 483 | 10.23 | ||||||||||
Exercised | (1,060 | ) | 9.87 | |||||||||
Forfeitures and expired | (345 | ) | 20.65 | |||||||||
December 31, 2013 | 5,490 | $ | 14.25 | 6.52 | $ | 28,769 | ||||||
Vested and expected to vest at December 31, 2013 | 5,435 | $ | 14.22 | 6.50 | $ | 28,588 | ||||||
Exercisable at December 31, 2013 | 3,809 | $ | 12.82 | 5.80 | $ | 23,827 |
2013 | 2012 | 2011 | |||||||||
Weighted average exercise price per share | $ | 10.23 | $ | 22.59 | $ | 17.41 | |||||
Risk-free interest rate | 1.0 | % | 1.2 | % | 2.5 | % | |||||
Expected dividend yield | — | — | — | ||||||||
Expected volatility | 58.9 | % | 54.6 | % | 52.7 | % | |||||
Expected life (in years) | 5.85 | 5.67 | 6.12 | ||||||||
Forfeiture rate | 5.0 | % | 4.0 | % | 4.0 | % | |||||
Weighted average grant date fair value per share | $ | 5.48 | $ | 11.26 | $ | 9.07 |
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 | ||||
Awarded | 1,016,035 | 10.50 | ||||
Vested | (181,104 | ) | 9.72 | |||
Canceled | (98,613 | ) | 10.39 | |||
Balance at December 31, 2013 | 1,098,517 | $ | 10.38 |
|
Exercise Price | December 31, 2012 | ||
$1.125 | 41 | ||
$2.250 | 55 | ||
$2.835 | — | ||
$2.925 | 19 | ||
$9.000 | 3 | ||
Total | 118 |
|
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal | $ | 30,051 | $ | 77,720 | $ | 88,513 | |||||
State | 3,234 | 7,665 | 8,632 | ||||||||
33,285 | 85,385 | 97,145 | |||||||||
Deferred: | |||||||||||
Federal | (9,172 | ) | (9,246 | ) | 6,997 | ||||||
State | (1,334 | ) | (726 | ) | (391 | ) | |||||
(10,506 | ) | (9,972 | ) | 6,606 | |||||||
Total | $ | 22,779 | $ | 75,413 | $ | 103,751 |
As of December 31, | |||||||
2013 | 2012 | ||||||
Deferred tax assets: | |||||||
Net operating loss | $ | 235 | $ | 258 | |||
Fixed assets | 214 | 233 | |||||
Bad debt | 6,855 | 7,479 | |||||
Vacation accrual | 2,762 | 2,815 | |||||
Stock-based compensation | 15,340 | 13,299 | |||||
Deferred rent | 9,944 | 9,404 | |||||
State tax | 2,316 | 2,541 | |||||
Bonus accrual | 849 | 599 | |||||
Unearned interest | 1,281 | 731 | |||||
Accrued expenses | 4,224 | 52 | |||||
Revenue reserves | 1,145 | 189 | |||||
Other | 153 | 145 | |||||
Total deferred tax assets | 45,318 | 37,745 | |||||
Valuation allowance | — | — | |||||
Net deferred tax assets | 45,318 | 37,745 | |||||
Deferred tax liabilities: | |||||||
Fixed assets and intangibles | (11,550 | ) | (13,411 | ) | |||
Unrealized gain on investments | (28 | ) | (132 | ) | |||
Total deferred tax liabilities | (11,578 | ) | (13,543 | ) | |||
Total net deferred tax assets | $ | 33,740 | $ | 24,202 |
As of December 31, | |||||||
2013 | 2012 | ||||||
Current deferred tax assets | $ | 15,232 | $ | 10,936 | |||
Current deferred tax liabilities | — | — | |||||
Noncurrent deferred tax assets | 18,508 | 13,266 | |||||
Noncurrent deferred tax liabilities | — | — | |||||
Total | $ | 33,740 | $ | 24,202 |
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Computed expected federal tax expense | $ | 22,326 | 35.0 | % | $ | 69,592 | 35.0 | % | $ | 96,780 | 35.0 | % | |||||
State taxes, net of federal benefit | 1,183 | 1.8 | 4,700 | 2.4 | 5,434 | 2.0 | |||||||||||
Permanent differences | 917 | 1.5 | 1,074 | 0.5 | 1,601 | 0.6 | |||||||||||
Uncertain tax positions | (1,647 | ) | (2.6 | ) | 31 | — | (192 | ) | (0.1 | ) | |||||||
Other | — | — | 16 | — | 128 | — | |||||||||||
Income tax expense | $ | 22,779 | 35.7 | % | $ | 75,413 | 37.9 | % | $ | 103,751 | 37.5 | % |
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 | ||
Gross increases-tax positions in prior period | — | ||
Gross decreases-tax positions in prior period | (5 | ) | |
Gross increases-current period tax positions | 100 | ||
Settlements | — | ||
Lapse of statute of limitations | (1,974 | ) | |
Unrecognized tax benefits at December 31, 2013 | $ | 7,387 |
|
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2013 | |||||||||||||||
Revenue | $ | 221,984 | $ | 197,574 | $ | 185,612 | $ | 163,453 | |||||||
Operating income (loss) | 43,420 | 16,028 | 12,851 | (11,856 | ) | ||||||||||
Net income (loss) | 26,967 | 10,368 | 10,135 | (6,460 | ) | ||||||||||
Earnings (loss) per common share: | |||||||||||||||
Basic | $ | 0.50 | $ | 0.19 | $ | 0.19 | $ | (0.12 | ) | ||||||
Diluted | 0.49 | 0.19 | 0.18 | (0.12 | ) |
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 |
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