|
|
|
|
|
|
|
|
|
Buildings | 39 years |
Furniture and office equipment | 3 - 7 years |
Software | 3 years |
Vehicles | 5 years |
December 31, 2014 | |||||||||||
Before-Tax Amount | Tax Effect | Net-of-Tax Amount | |||||||||
Unrealized losses on investments | $ | (359 | ) | $ | 136 | $ | (223 | ) | |||
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, 2014 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Mutual funds | $ | 1,071 | $ | — | $ | — | $ | 1,071 | |||||||
Corporate notes and bonds | — | 62,550 | — | 62,550 | |||||||||||
U.S. government and agency securities | — | 34,987 | — | 34,987 | |||||||||||
Certificates of deposit | — | 25,000 | — | 25,000 | |||||||||||
Total | $ | 1,071 | $ | 122,537 | $ | — | $ | 123,608 |
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, 2014 | |||||||||||||||||
Gross unrealized | |||||||||||||||||
Maturities | Amortized Cost | Gain | Loss | Fair Value | |||||||||||||
Short-term | |||||||||||||||||
Corporate notes and bonds | 1 year or less | 10,947 | 33 | — | 10,980 | ||||||||||||
Long-term | |||||||||||||||||
Corporate notes and bonds | 3 years or less | 51,874 | — | (304 | ) | 51,570 | |||||||||||
U.S. government and agency securities | 3 years or less | 35,000 | — | (13 | ) | 34,987 | |||||||||||
Certificates of deposit | 3 years or less | 25,000 | — | — | 25,000 | ||||||||||||
Total | $ | 122,821 | $ | 33 | $ | (317 | ) | $ | 122,537 |
December 31, 2013 | |||||||||||||||||
Gross unrealized | |||||||||||||||||
Maturities | 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 | ||||||||||||
Certificate 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 | ||||||||||||
Certificate of deposit | 3 years or less | 30,000 | — | — | 30,000 | ||||||||||||
Total | $ | 106,888 | $ | 75 | $ | — | $ | 106,963 |
|
As of December 31, | |||||||
2014 | 2013 | ||||||
Accounts receivable | $ | 48,841 | $ | 49,854 | |||
Less allowance for doubtful accounts | 27,567 | 26,901 | |||||
Accounts receivable, net | $ | 21,274 | $ | 22,953 |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful accounts receivable: | |||||||||||||||
For the year ended December 31, 2014 | $ | 26,901 | $ | 27,853 | $ | (27,187 | ) | $ | 27,567 | ||||||
For the year ended December 31, 2013 | 31,466 | 46,851 | (51,416 | ) | 26,901 | ||||||||||
For the year ended December 31, 2012 | 24,688 | 52,794 | (46,016 | ) | 31,466 |
(1) | Deductions represent accounts written off, net of recoveries. |
As of December 31, | |||||||
Short-term: | 2014 | 2013 | |||||
Student loans receivable (non-tuition related) | $ | 509 | $ | 587 | |||
Student loans receivable (tuition related) | 626 | 621 | |||||
Current student loans receivable | 1,135 | 1,208 | |||||
Less allowance for doubtful accounts | 132 | 165 | |||||
Student loans receivable, net | $ | 1,003 | $ | 1,043 | |||
As of December 31, | |||||||
Long-term: | 2014 | 2013 | |||||
Student loans receivable (non-tuition related) | $ | 4,805 | $ | 7,347 | |||
Student loans receivable (tuition related) | 6,068 | 6,417 | |||||
Non-current student loans receivable | 10,873 | 13,764 | |||||
Less allowance for doubtful accounts | 1,363 | 1,979 | |||||
Student loans receivable, net | $ | 9,510 | $ | 11,785 |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful student loans receivable: | |||||||||||||||
For the year ended December 31, 2014 | $ | 2,144 | $ | 331 | $ | (980 | ) | $ | 1,495 | ||||||
For the year ended December 31, 2013 | 1,895 | 268 | (19 | ) | 2,144 | ||||||||||
For the year ended December 31, 2012 | 2,070 | (27 | ) | (148 | ) | 1,895 |
(1) | Deductions represent accounts written off, net of recoveries. |
Less than 120 days | $ | 16,138 | |
From 120 - 269 days | 1,159 | ||
Greater than 270 days | 2,099 | ||
Total gross student loans receivable | 19,396 | ||
Less: Amounts reserved or impaired | (5,927 | ) | |
Less: Discount on student loans receivable | (2,956 | ) | |
Total student loans receivable, net | $ | 10,513 |
|
As of December 31, | |||||||
2014 | 2013 | ||||||
Accounts receivable | $ | 48,841 | $ | 49,854 | |||
Less allowance for doubtful accounts | 27,567 | 26,901 | |||||
Accounts receivable, net | $ | 21,274 | $ | 22,953 |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful accounts receivable: | |||||||||||||||
For the year ended December 31, 2014 | $ | 26,901 | $ | 27,853 | $ | (27,187 | ) | $ | 27,567 | ||||||
For the year ended December 31, 2013 | 31,466 | 46,851 | (51,416 | ) | 26,901 | ||||||||||
For the year ended December 31, 2012 | 24,688 | 52,794 | (46,016 | ) | 31,466 |
(1) | Deductions represent accounts written off, net of recoveries. |
As of December 31, | |||||||
Short-term: | 2014 | 2013 | |||||
Student loans receivable (non-tuition related) | $ | 509 | $ | 587 | |||
Student loans receivable (tuition related) | 626 | 621 | |||||
Current student loans receivable | 1,135 | 1,208 | |||||
Less allowance for doubtful accounts | 132 | 165 | |||||
Student loans receivable, net | $ | 1,003 | $ | 1,043 | |||
As of December 31, | |||||||
Long-term: | 2014 | 2013 | |||||
Student loans receivable (non-tuition related) | $ | 4,805 | $ | 7,347 | |||
Student loans receivable (tuition related) | 6,068 | 6,417 | |||||
Non-current student loans receivable | 10,873 | 13,764 | |||||
Less allowance for doubtful accounts | 1,363 | 1,979 | |||||
Student loans receivable, net | $ | 9,510 | $ | 11,785 |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful student loans receivable: | |||||||||||||||
For the year ended December 31, 2014 | $ | 2,144 | $ | 331 | $ | (980 | ) | $ | 1,495 | ||||||
For the year ended December 31, 2013 | 1,895 | 268 | (19 | ) | 2,144 | ||||||||||
For the year ended December 31, 2012 | 2,070 | (27 | ) | (148 | ) | 1,895 |
(1) | Deductions represent accounts written off, net of recoveries. |
Less than 120 days | $ | 16,138 | |
From 120 - 269 days | 1,159 | ||
Greater than 270 days | 2,099 | ||
Total gross student loans receivable | 19,396 | ||
Less: Amounts reserved or impaired | (5,927 | ) | |
Less: Discount on student loans receivable | (2,956 | ) | |
Total student loans receivable, net | $ | 10,513 |
|
As of December 31, | |||||||
2014 | 2013 | ||||||
Prepaid expenses | $ | 8,500 | $ | 10,814 | |||
Prepaid licenses | 5,598 | 5,833 | |||||
Prepaid income taxes | 2,945 | 195 | |||||
Prepaid insurance | 1,508 | 1,131 | |||||
Workers compensation | 1,440 | 2,814 | |||||
Interest receivable | 424 | 86 | |||||
Other current assets | 2,403 | 690 | |||||
Total prepaid expenses and other current assets | $ | 22,818 | $ | 21,563 |
|
As of December 31, | |||||||
2014 | 2013 | ||||||
Land | $ | 7,091 | $ | 7,091 | |||
Buildings | 29,540 | 28,916 | |||||
Furniture and office equipment | 81,030 | 84,852 | |||||
Software | 12,454 | 10,075 | |||||
Leasehold improvements | 21,096 | 24,360 | |||||
Vehicles | 147 | 147 | |||||
Total property and equipment | 151,358 | 155,441 | |||||
Less accumulated depreciation and amortization | (73,139 | ) | (64,016 | ) | |||
Total property and equipment, net | $ | 78,219 | $ | 91,425 |
|
December 31, 2014 | |||||||||||
Definite-lived intangible assets: | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||
Capitalized curriculum costs | $ | 18,174 | $ | (9,526 | ) | $ | 8,648 | ||||
Purchased intangible assets | 15,850 | (2,290 | ) | 13,560 | |||||||
Total definite-lived intangible assets | $ | 34,024 | $ | (11,816 | ) | $ | 22,208 | ||||
Goodwill and indefinite-lived intangibles | 2,567 | ||||||||||
Total goodwill and intangibles, net | $ | 24,775 | |||||||||
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 |
Year Ended December 31, | ||||
2015 | $ | 5,575 | ||
2016 | 4,063 | |||
2017 | 2,466 | |||
2018 | 1,471 | |||
2019 | 1,233 | |||
Thereafter | 7,400 | |||
Total future amortization expense | $ | 22,208 |
|
As of December 31, | |||||||
2014 | 2013 | ||||||
Accrued salaries and wages | $ | 8,250 | $ | 12,790 | |||
Accrued bonus | 2,720 | 2,277 | |||||
Accrued vacation | 9,771 | 9,696 | |||||
Accrued litigation and fees | 542 | 8,000 | |||||
Accrued expenses | 18,223 | 15,079 | |||||
Rent liability | 8,528 | 2,446 | |||||
Accrued workers compensation | 2,920 | 4,002 | |||||
Accrued income taxes payable | 449 | — | |||||
Total accrued liabilities | $ | 51,403 | $ | 54,290 |
|
As of December 31, | |||||||
2014 | 2013 | ||||||
Deferred revenue | $ | 26,445 | $ | 29,279 | |||
Student deposits | 81,603 | 103,512 | |||||
Total deferred revenue and student deposits | $ | 108,048 | $ | 132,791 |
|
As of December 31, | |||||||
2014 | 2013 | ||||||
Uncertain tax positions | $ | 7,586 | $ | 7,466 | |||
Legal settlements | 1,000 | 1,000 | |||||
Other long-term liabilities | 1,066 | 805 | |||||
Total other long term liabilities | $ | 9,652 | $ | 9,271 |
|
|
Year Ended December 31, | ||||
2015 | $ | 37,511 | ||
2016 | 37,449 | |||
2017 | 37,363 | |||
2018 | 32,698 | |||
2019 | 22,148 | |||
Thereafter | 20,948 | |||
Total minimum payments | $ | 188,117 |
|
Options Outstanding | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||
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 | |||||||
Granted | 403 | 14.35 | ||||||||||
Exercised | (388 | ) | 8.01 | |||||||||
Forfeitures and expired | (337 | ) | 21.43 | |||||||||
December 31, 2014 | 5,168 | $ | 14.26 | 5.73 | $ | 7,732 | ||||||
Vested and expected to vest at December 31, 2014 | 5,134 | $ | 14.25 | 5.71 | $ | 7,720 | ||||||
Exercisable at December 31, 2014 | 4,070 | $ | 13.72 | 5.11 | $ | 7,367 |
2014 | 2013 | 2012 | |||||||||
Weighted average exercise price per share | $ | 14.35 | $ | 10.23 | $ | 22.59 | |||||
Risk-free interest rate | 2.0 | % | 1.0 | % | 1.2 | % | |||||
Expected dividend yield | — | — | — | ||||||||
Expected volatility | 55.1 | % | 58.9 | % | 54.6 | % | |||||
Expected life (in years) | 5.75 | 5.85 | 5.67 | ||||||||
Forfeiture rate | 6.0 | % | 5.0 | % | 4.0 | % | |||||
Weighted average grant date fair value per share | $ | 7.43 | $ | 5.48 | $ | 11.26 |
2014 | |||
Grant price per share | $ | 11.54 | |
Risk-free interest rate | 1.4 | % | |
Expected dividend yield | — | ||
Historical volatility | 50.0 | % | |
Expected life (in years) | 4.0 | ||
Forfeiture rate | 6.0 | % | |
Weighted average grant date fair value per share | $ | 5.39 |
Restricted Stock Units and Performance Stock Units | ||||||||||||||||||||
Time Based | Performance-Based | Market-Based | ||||||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | Number of Shares | Weighted Average Grant Date Fair Value | Number of Shares | Weighted Average Grant Date Fair Value | |||||||||||||||
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 | — | — | — | — | ||||||||||||||
Awarded | 786,250 | 14.33 | — | — | 975,295 | 5.39 | ||||||||||||||
Vested | (393,106 | ) | 10.15 | — | — | — | — | |||||||||||||
Canceled | (212,572 | ) | 11.89 | — | — | — | — | |||||||||||||
Balance at December 31, 2014 | 1,279,089 | $ | 12.63 | — | $ | — | 975,295 | $ | 5.39 |
|
|
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current: | |||||||||||
Federal | $ | 12,686 | $ | 29,456 | $ | 77,720 | |||||
State | 1,937 | 3,168 | 7,665 | ||||||||
14,623 | 32,624 | 85,385 | |||||||||
Deferred: | |||||||||||
Federal | (6,216 | ) | (5,952 | ) | (10,470 | ) | |||||
State | (880 | ) | (1,010 | ) | (903 | ) | |||||
(7,096 | ) | (6,962 | ) | (11,373 | ) | ||||||
Total | $ | 7,527 | $ | 25,662 | $ | 74,012 |
As of December 31, | |||||||
2014 | 2013 | ||||||
Deferred tax assets: | |||||||
Net operating loss | $ | 211 | $ | 235 | |||
Fixed assets | 194 | 214 | |||||
Bad debt | 2,338 | 463 | |||||
Vacation accrual | 2,956 | 2,762 | |||||
Stock-based compensation | 16,291 | 15,341 | |||||
Deferred rent | 11,580 | 9,944 | |||||
State tax | 2,257 | 2,310 | |||||
Bonus accrual | 1,023 | 849 | |||||
Unearned interest | 1,118 | 1,281 | |||||
Accrued expenses | 2,121 | 4,377 | |||||
Revenue reserves | 9,820 | 8,992 | |||||
Other | 107 | — | |||||
Total deferred tax assets | 50,016 | 46,768 | |||||
Valuation allowance | — | — | |||||
Net deferred tax assets | 50,016 | 46,768 | |||||
Deferred tax liabilities: | |||||||
Fixed assets and intangibles | (8,540 | ) | (11,550 | ) | |||
Unrealized gain on investments | — | (28 | ) | ||||
Total deferred tax liabilities | (8,540 | ) | (11,578 | ) | |||
Total net deferred tax assets | $ | 41,476 | $ | 35,190 |
As of December 31, | |||||||
2014 | 2013 | ||||||
Current deferred tax assets | $ | 21,301 | $ | 16,683 | |||
Current deferred tax liabilities | — | — | |||||
Noncurrent deferred tax assets | 20,175 | 18,507 | |||||
Noncurrent deferred tax liabilities | — | — | |||||
Total | $ | 41,476 | $ | 35,190 |
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Computed expected federal tax expense | $ | 6,018 | 35.0 | % | $ | 25,041 | 35.0 | % | $ | 68,305 | 35.0 | % | |||||
State taxes, net of federal benefit | 426 | 2.5 | 1,466 | 2.0 | 4,042 | 2.2 | |||||||||||
Permanent differences | 1,125 | 6.5 | 1,295 | 1.8 | 1,314 | 0.6 | |||||||||||
Uncertain tax positions | 424 | 2.5 | (1,762 | ) | (2.5 | ) | 575 | 0.2 | |||||||||
Credits | (470 | ) | (2.7 | ) | (378 | ) | (0.4 | ) | (240 | ) | (0.1 | ) | |||||
Other | 4 | — | — | — | 16 | — | |||||||||||
Income tax expense | $ | 7,527 | 43.8 | % | $ | 25,662 | 35.9 | % | $ | 74,012 | 37.9 | % |
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 | ||
Gross increases-tax positions in prior period | 13,869 | ||
Gross decreases-tax positions in prior period | (23 | ) | |
Gross increases-current period tax positions | 53 | ||
Settlements | (409 | ) | |
Lapse of statute of limitations | — | ||
Unrecognized tax benefits at December 31, 2014 | $ | 20,877 |
|
|
|
|
|
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2014 | |||||||||||||||
Revenue | $ | 157,270 | $ | 171,522 | $ | 162,654 | $ | 147,259 | |||||||
Operating income (loss) | (7,858 | ) | 22,414 | 10,581 | (10,826 | ) | |||||||||
Net income (loss) | (4,330 | ) | 12,955 | 6,291 | (5,248 | ) | |||||||||
Earnings (loss) per common share: | |||||||||||||||
Basic | $ | (0.10 | ) | $ | 0.29 | $ | 0.14 | $ | (0.12 | ) | |||||
Diluted | (0.10 | ) | 0.28 | 0.14 | (0.12 | ) |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2013 | |||||||||||||||
Revenue | $ | 212,986 | $ | 193,470 | $ | 182,768 | $ | 162,225 | |||||||
Operating income | 39,676 | 19,133 | 19,524 | (9,870 | ) | ||||||||||
Net income | 24,667 | 12,114 | 14,211 | (5,109 | ) | ||||||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.46 | $ | 0.22 | $ | 0.26 | $ | (0.10 | ) | ||||||
Diluted | 0.45 | 0.22 | 0.25 | (0.10 | ) |
|
Buildings | 39 years |
Furniture and office equipment | 3 - 7 years |
Software | 3 years |
Vehicles | 5 years |
December 31, 2014 | |||||||||||
Before-Tax Amount | Tax Effect | Net-of-Tax Amount | |||||||||
Unrealized losses on investments | $ | (359 | ) | $ | 136 | $ | (223 | ) | |||
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 |
|
Buildings | 39 years |
Furniture and office equipment | 3 - 7 years |
Software | 3 years |
Vehicles | 5 years |
As of December 31, | |||||||
2014 | 2013 | ||||||
Land | $ | 7,091 | $ | 7,091 | |||
Buildings | 29,540 | 28,916 | |||||
Furniture and office equipment | 81,030 | 84,852 | |||||
Software | 12,454 | 10,075 | |||||
Leasehold improvements | 21,096 | 24,360 | |||||
Vehicles | 147 | 147 | |||||
Total property and equipment | 151,358 | 155,441 | |||||
Less accumulated depreciation and amortization | (73,139 | ) | (64,016 | ) | |||
Total property and equipment, net | $ | 78,219 | $ | 91,425 |
December 31, 2014 | |||||||||||
Before-Tax Amount | Tax Effect | Net-of-Tax Amount | |||||||||
Unrealized losses on investments | $ | (359 | ) | $ | 136 | $ | (223 | ) | |||
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, 2014 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Mutual funds | $ | 1,071 | $ | — | $ | — | $ | 1,071 | |||||||
Corporate notes and bonds | — | 62,550 | — | 62,550 | |||||||||||
U.S. government and agency securities | — | 34,987 | — | 34,987 | |||||||||||
Certificates of deposit | — | 25,000 | — | 25,000 | |||||||||||
Total | $ | 1,071 | $ | 122,537 | $ | — | $ | 123,608 |
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, 2014 | |||||||||||||||||
Gross unrealized | |||||||||||||||||
Maturities | Amortized Cost | Gain | Loss | Fair Value | |||||||||||||
Short-term | |||||||||||||||||
Corporate notes and bonds | 1 year or less | 10,947 | 33 | — | 10,980 | ||||||||||||
Long-term | |||||||||||||||||
Corporate notes and bonds | 3 years or less | 51,874 | — | (304 | ) | 51,570 | |||||||||||
U.S. government and agency securities | 3 years or less | 35,000 | — | (13 | ) | 34,987 | |||||||||||
Certificates of deposit | 3 years or less | 25,000 | — | — | 25,000 | ||||||||||||
Total | $ | 122,821 | $ | 33 | $ | (317 | ) | $ | 122,537 |
December 31, 2013 | |||||||||||||||||
Gross unrealized | |||||||||||||||||
Maturities | 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 | ||||||||||||
Certificate 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 | ||||||||||||
Certificate of deposit | 3 years or less | 30,000 | — | — | 30,000 | ||||||||||||
Total | $ | 106,888 | $ | 75 | $ | — | $ | 106,963 |
|
As of December 31, | |||||||
2014 | 2013 | ||||||
Accounts receivable | $ | 48,841 | $ | 49,854 | |||
Less allowance for doubtful accounts | 27,567 | 26,901 | |||||
Accounts receivable, net | $ | 21,274 | $ | 22,953 |
As of December 31, | |||||||
Short-term: | 2014 | 2013 | |||||
Student loans receivable (non-tuition related) | $ | 509 | $ | 587 | |||
Student loans receivable (tuition related) | 626 | 621 | |||||
Current student loans receivable | 1,135 | 1,208 | |||||
Less allowance for doubtful accounts | 132 | 165 | |||||
Student loans receivable, net | $ | 1,003 | $ | 1,043 | |||
As of December 31, | |||||||
Long-term: | 2014 | 2013 | |||||
Student loans receivable (non-tuition related) | $ | 4,805 | $ | 7,347 | |||
Student loans receivable (tuition related) | 6,068 | 6,417 | |||||
Non-current student loans receivable | 10,873 | 13,764 | |||||
Less allowance for doubtful accounts | 1,363 | 1,979 | |||||
Student loans receivable, net | $ | 9,510 | $ | 11,785 |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful accounts receivable: | |||||||||||||||
For the year ended December 31, 2014 | $ | 26,901 | $ | 27,853 | $ | (27,187 | ) | $ | 27,567 | ||||||
For the year ended December 31, 2013 | 31,466 | 46,851 | (51,416 | ) | 26,901 | ||||||||||
For the year ended December 31, 2012 | 24,688 | 52,794 | (46,016 | ) | 31,466 |
(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, 2014 | $ | 2,144 | $ | 331 | $ | (980 | ) | $ | 1,495 | ||||||
For the year ended December 31, 2013 | 1,895 | 268 | (19 | ) | 2,144 | ||||||||||
For the year ended December 31, 2012 | 2,070 | (27 | ) | (148 | ) | 1,895 |
(1) | Deductions represent accounts written off, net of recoveries. |
|
As of December 31, | |||||||
2014 | 2013 | ||||||
Accounts receivable | $ | 48,841 | $ | 49,854 | |||
Less allowance for doubtful accounts | 27,567 | 26,901 | |||||
Accounts receivable, net | $ | 21,274 | $ | 22,953 |
As of December 31, | |||||||
Short-term: | 2014 | 2013 | |||||
Student loans receivable (non-tuition related) | $ | 509 | $ | 587 | |||
Student loans receivable (tuition related) | 626 | 621 | |||||
Current student loans receivable | 1,135 | 1,208 | |||||
Less allowance for doubtful accounts | 132 | 165 | |||||
Student loans receivable, net | $ | 1,003 | $ | 1,043 | |||
As of December 31, | |||||||
Long-term: | 2014 | 2013 | |||||
Student loans receivable (non-tuition related) | $ | 4,805 | $ | 7,347 | |||
Student loans receivable (tuition related) | 6,068 | 6,417 | |||||
Non-current student loans receivable | 10,873 | 13,764 | |||||
Less allowance for doubtful accounts | 1,363 | 1,979 | |||||
Student loans receivable, net | $ | 9,510 | $ | 11,785 |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful accounts receivable: | |||||||||||||||
For the year ended December 31, 2014 | $ | 26,901 | $ | 27,853 | $ | (27,187 | ) | $ | 27,567 | ||||||
For the year ended December 31, 2013 | 31,466 | 46,851 | (51,416 | ) | 26,901 | ||||||||||
For the year ended December 31, 2012 | 24,688 | 52,794 | (46,016 | ) | 31,466 |
(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, 2014 | $ | 2,144 | $ | 331 | $ | (980 | ) | $ | 1,495 | ||||||
For the year ended December 31, 2013 | 1,895 | 268 | (19 | ) | 2,144 | ||||||||||
For the year ended December 31, 2012 | 2,070 | (27 | ) | (148 | ) | 1,895 |
(1) | Deductions represent accounts written off, net of recoveries. |
Less than 120 days | $ | 16,138 | |
From 120 - 269 days | 1,159 | ||
Greater than 270 days | 2,099 | ||
Total gross student loans receivable | 19,396 | ||
Less: Amounts reserved or impaired | (5,927 | ) | |
Less: Discount on student loans receivable | (2,956 | ) | |
Total student loans receivable, net | $ | 10,513 |
|
As of December 31, | |||||||
2014 | 2013 | ||||||
Prepaid expenses | $ | 8,500 | $ | 10,814 | |||
Prepaid licenses | 5,598 | 5,833 | |||||
Prepaid income taxes | 2,945 | 195 | |||||
Prepaid insurance | 1,508 | 1,131 | |||||
Workers compensation | 1,440 | 2,814 | |||||
Interest receivable | 424 | 86 | |||||
Other current assets | 2,403 | 690 | |||||
Total prepaid expenses and other current assets | $ | 22,818 | $ | 21,563 |
|
Buildings | 39 years |
Furniture and office equipment | 3 - 7 years |
Software | 3 years |
Vehicles | 5 years |
As of December 31, | |||||||
2014 | 2013 | ||||||
Land | $ | 7,091 | $ | 7,091 | |||
Buildings | 29,540 | 28,916 | |||||
Furniture and office equipment | 81,030 | 84,852 | |||||
Software | 12,454 | 10,075 | |||||
Leasehold improvements | 21,096 | 24,360 | |||||
Vehicles | 147 | 147 | |||||
Total property and equipment | 151,358 | 155,441 | |||||
Less accumulated depreciation and amortization | (73,139 | ) | (64,016 | ) | |||
Total property and equipment, net | $ | 78,219 | $ | 91,425 |
|
December 31, 2014 | |||||||||||
Definite-lived intangible assets: | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||
Capitalized curriculum costs | $ | 18,174 | $ | (9,526 | ) | $ | 8,648 | ||||
Purchased intangible assets | 15,850 | (2,290 | ) | 13,560 | |||||||
Total definite-lived intangible assets | $ | 34,024 | $ | (11,816 | ) | $ | 22,208 | ||||
Goodwill and indefinite-lived intangibles | 2,567 | ||||||||||
Total goodwill and intangibles, net | $ | 24,775 | |||||||||
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 |
Year Ended December 31, | ||||
2015 | $ | 5,575 | ||
2016 | 4,063 | |||
2017 | 2,466 | |||
2018 | 1,471 | |||
2019 | 1,233 | |||
Thereafter | 7,400 | |||
Total future amortization expense | $ | 22,208 |
|
As of December 31, | |||||||
2014 | 2013 | ||||||
Accrued salaries and wages | $ | 8,250 | $ | 12,790 | |||
Accrued bonus | 2,720 | 2,277 | |||||
Accrued vacation | 9,771 | 9,696 | |||||
Accrued litigation and fees | 542 | 8,000 | |||||
Accrued expenses | 18,223 | 15,079 | |||||
Rent liability | 8,528 | 2,446 | |||||
Accrued workers compensation | 2,920 | 4,002 | |||||
Accrued income taxes payable | 449 | — | |||||
Total accrued liabilities | $ | 51,403 | $ | 54,290 |
|
As of December 31, | |||||||
2014 | 2013 | ||||||
Deferred revenue | $ | 26,445 | $ | 29,279 | |||
Student deposits | 81,603 | 103,512 | |||||
Total deferred revenue and student deposits | $ | 108,048 | $ | 132,791 |
|
As of December 31, | |||||||
2014 | 2013 | ||||||
Uncertain tax positions | $ | 7,586 | $ | 7,466 | |||
Legal settlements | 1,000 | 1,000 | |||||
Other long-term liabilities | 1,066 | 805 | |||||
Total other long term liabilities | $ | 9,652 | $ | 9,271 |
|
Year Ended December 31, | ||||
2015 | $ | 37,511 | ||
2016 | 37,449 | |||
2017 | 37,363 | |||
2018 | 32,698 | |||
2019 | 22,148 | |||
Thereafter | 20,948 | |||
Total minimum payments | $ | 188,117 |
|
Options Outstanding | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||
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 | |||||||
Granted | 403 | 14.35 | ||||||||||
Exercised | (388 | ) | 8.01 | |||||||||
Forfeitures and expired | (337 | ) | 21.43 | |||||||||
December 31, 2014 | 5,168 | $ | 14.26 | 5.73 | $ | 7,732 | ||||||
Vested and expected to vest at December 31, 2014 | 5,134 | $ | 14.25 | 5.71 | $ | 7,720 | ||||||
Exercisable at December 31, 2014 | 4,070 | $ | 13.72 | 5.11 | $ | 7,367 |
2014 | 2013 | 2012 | |||||||||
Weighted average exercise price per share | $ | 14.35 | $ | 10.23 | $ | 22.59 | |||||
Risk-free interest rate | 2.0 | % | 1.0 | % | 1.2 | % | |||||
Expected dividend yield | — | — | — | ||||||||
Expected volatility | 55.1 | % | 58.9 | % | 54.6 | % | |||||
Expected life (in years) | 5.75 | 5.85 | 5.67 | ||||||||
Forfeiture rate | 6.0 | % | 5.0 | % | 4.0 | % | |||||
Weighted average grant date fair value per share | $ | 7.43 | $ | 5.48 | $ | 11.26 |
2014 | |||
Grant price per share | $ | 11.54 | |
Risk-free interest rate | 1.4 | % | |
Expected dividend yield | — | ||
Historical volatility | 50.0 | % | |
Expected life (in years) | 4.0 | ||
Forfeiture rate | 6.0 | % | |
Weighted average grant date fair value per share | $ | 5.39 |
Restricted Stock Units and Performance Stock Units | ||||||||||||||||||||
Time Based | Performance-Based | Market-Based | ||||||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | Number of Shares | Weighted Average Grant Date Fair Value | Number of Shares | Weighted Average Grant Date Fair Value | |||||||||||||||
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 | — | — | — | — | ||||||||||||||
Awarded | 786,250 | 14.33 | — | — | 975,295 | 5.39 | ||||||||||||||
Vested | (393,106 | ) | 10.15 | — | — | — | — | |||||||||||||
Canceled | (212,572 | ) | 11.89 | — | — | — | — | |||||||||||||
Balance at December 31, 2014 | 1,279,089 | $ | 12.63 | — | $ | — | 975,295 | $ | 5.39 |
|
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current: | |||||||||||
Federal | $ | 12,686 | $ | 29,456 | $ | 77,720 | |||||
State | 1,937 | 3,168 | 7,665 | ||||||||
14,623 | 32,624 | 85,385 | |||||||||
Deferred: | |||||||||||
Federal | (6,216 | ) | (5,952 | ) | (10,470 | ) | |||||
State | (880 | ) | (1,010 | ) | (903 | ) | |||||
(7,096 | ) | (6,962 | ) | (11,373 | ) | ||||||
Total | $ | 7,527 | $ | 25,662 | $ | 74,012 |
As of December 31, | |||||||
2014 | 2013 | ||||||
Current deferred tax assets | $ | 21,301 | $ | 16,683 | |||
Current deferred tax liabilities | — | — | |||||
Noncurrent deferred tax assets | 20,175 | 18,507 | |||||
Noncurrent deferred tax liabilities | — | — | |||||
Total | $ | 41,476 | $ | 35,190 |
As of December 31, | |||||||
2014 | 2013 | ||||||
Deferred tax assets: | |||||||
Net operating loss | $ | 211 | $ | 235 | |||
Fixed assets | 194 | 214 | |||||
Bad debt | 2,338 | 463 | |||||
Vacation accrual | 2,956 | 2,762 | |||||
Stock-based compensation | 16,291 | 15,341 | |||||
Deferred rent | 11,580 | 9,944 | |||||
State tax | 2,257 | 2,310 | |||||
Bonus accrual | 1,023 | 849 | |||||
Unearned interest | 1,118 | 1,281 | |||||
Accrued expenses | 2,121 | 4,377 | |||||
Revenue reserves | 9,820 | 8,992 | |||||
Other | 107 | — | |||||
Total deferred tax assets | 50,016 | 46,768 | |||||
Valuation allowance | — | — | |||||
Net deferred tax assets | 50,016 | 46,768 | |||||
Deferred tax liabilities: | |||||||
Fixed assets and intangibles | (8,540 | ) | (11,550 | ) | |||
Unrealized gain on investments | — | (28 | ) | ||||
Total deferred tax liabilities | (8,540 | ) | (11,578 | ) | |||
Total net deferred tax assets | $ | 41,476 | $ | 35,190 |
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Computed expected federal tax expense | $ | 6,018 | 35.0 | % | $ | 25,041 | 35.0 | % | $ | 68,305 | 35.0 | % | |||||
State taxes, net of federal benefit | 426 | 2.5 | 1,466 | 2.0 | 4,042 | 2.2 | |||||||||||
Permanent differences | 1,125 | 6.5 | 1,295 | 1.8 | 1,314 | 0.6 | |||||||||||
Uncertain tax positions | 424 | 2.5 | (1,762 | ) | (2.5 | ) | 575 | 0.2 | |||||||||
Credits | (470 | ) | (2.7 | ) | (378 | ) | (0.4 | ) | (240 | ) | (0.1 | ) | |||||
Other | 4 | — | — | — | 16 | — | |||||||||||
Income tax expense | $ | 7,527 | 43.8 | % | $ | 25,662 | 35.9 | % | $ | 74,012 | 37.9 | % |
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 | ||
Gross increases-tax positions in prior period | 13,869 | ||
Gross decreases-tax positions in prior period | (23 | ) | |
Gross increases-current period tax positions | 53 | ||
Settlements | (409 | ) | |
Lapse of statute of limitations | — | ||
Unrecognized tax benefits at December 31, 2014 | $ | 20,877 |
|
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2014 | |||||||||||||||
Revenue | $ | 157,270 | $ | 171,522 | $ | 162,654 | $ | 147,259 | |||||||
Operating income (loss) | (7,858 | ) | 22,414 | 10,581 | (10,826 | ) | |||||||||
Net income (loss) | (4,330 | ) | 12,955 | 6,291 | (5,248 | ) | |||||||||
Earnings (loss) per common share: | |||||||||||||||
Basic | $ | (0.10 | ) | $ | 0.29 | $ | 0.14 | $ | (0.12 | ) | |||||
Diluted | (0.10 | ) | 0.28 | 0.14 | (0.12 | ) |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2013 | |||||||||||||||
Revenue | $ | 212,986 | $ | 193,470 | $ | 182,768 | $ | 162,225 | |||||||
Operating income | 39,676 | 19,133 | 19,524 | (9,870 | ) | ||||||||||
Net income | 24,667 | 12,114 | 14,211 | (5,109 | ) | ||||||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.46 | $ | 0.22 | $ | 0.26 | $ | (0.10 | ) | ||||||
Diluted | 0.45 | 0.22 | 0.25 | (0.10 | ) |
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