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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | $ | — | $ | 3,425 | $ | — | $ | 6,695 | |||||||
Costs and expenses: | |||||||||||||||
Instructional costs and services | — | 1,650 | — | 3,311 | |||||||||||
Marketing and promotional | — | 1,263 | — | 2,555 | |||||||||||
Admissions advisory | — | 240 | — | 513 | |||||||||||
General and administrative | — | 1,968 | — | 2,921 | |||||||||||
Total costs and expenses | — | 5,121 | — | 9,300 | |||||||||||
Operating loss | — | (1,696 | ) | — | (2,605 | ) | |||||||||
Gain on sale of Arden | — | — | 149 | — | |||||||||||
Other income (expense), net | — | 35 | — | (34 | ) | ||||||||||
Income (loss) before income taxes | — | (1,661 | ) | 149 | (2,639 | ) | |||||||||
Income tax expense (benefit) | — | (282 | ) | 54 | (282 | ) | |||||||||
Income (loss) from discontinued operations, net of tax | $ | — | $ | (1,379 | ) | $ | 95 | $ | (2,357 | ) |
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As of June 30, 2017 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Estimated Fair Value | ||||||||||||
Tax-exempt municipal securities | $ | 42,627 | $ | 16 | $ | (30 | ) | $ | 42,613 | ||||||
Corporate debt securities | 6,966 | 14 | — | 6,980 | |||||||||||
Variable rate demand notes | 11,930 | — | — | 11,930 | |||||||||||
Total | $ | 61,523 | $ | 30 | $ | (30 | ) | $ | 61,523 | ||||||
As of December 31, 2016 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Estimated Fair Value | ||||||||||||
Tax-exempt municipal securities | $ | 63,113 | $ | 2 | $ | (152 | ) | $ | 62,963 | ||||||
Corporate debt securities | 5,804 | 13 | (2 | ) | 5,815 | ||||||||||
Total | $ | 68,917 | $ | 15 | $ | (154 | ) | $ | 68,778 |
As of June 30, 2017 | As of December 31, 2016 | ||||||
Due within one year | $ | 42,940 | $ | 45,458 | |||
Due after one year through five years | 18,583 | 23,320 | |||||
Total | $ | 61,523 | $ | 68,778 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Maturities of marketable securities | $ | 25,455 | $ | 3,065 | $ | 35,995 | $ | 13,625 | |||||||
Total | $ | 25,455 | $ | 3,065 | $ | 35,995 | $ | 13,625 |
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Fair Value Measurements as of June 30, 2017 Using | ||||||||||||||||
Description | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 28,976 | $ | 28,976 | $ | — | $ | — | ||||||||
Money market | 89,047 | 89,047 | — | — | ||||||||||||
Marketable securities: | ||||||||||||||||
Tax-exempt municipal securities | 42,613 | — | 42,613 | — | ||||||||||||
Corporate debt securities | 6,980 | — | 6,980 | — | ||||||||||||
Variable rate demand notes | 11,930 | — | 11,930 | — | ||||||||||||
Total assets at fair value on a recurring basis | $ | 179,546 | $ | 118,023 | $ | 61,523 | $ | — |
Fair Value Measurements as of December 31, 2016 Using | ||||||||||||||||
Description | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 24,658 | $ | 24,658 | $ | — | $ | — | ||||||||
Money market | 68,237 | 68,237 | — | — | ||||||||||||
Variable rate demand notes | 675 | — | 675 | — | ||||||||||||
Marketable securities: | ||||||||||||||||
Tax-exempt municipal securities | 62,963 | — | 62,963 | — | ||||||||||||
Corporate debt securities | 5,815 | — | 5,815 | — | ||||||||||||
Total assets at fair value on a recurring basis | $ | 162,348 | $ | 92,895 | $ | 69,453 | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Balance, beginning of period | $ | — | $ | — | $ | — | $ | — | ||||||||
Initial fair value of contingent consideration | — | 1,500 | — | 1,500 | ||||||||||||
Balance, end of period | $ | — | $ | 1,500 | $ | — | $ | 1,500 |
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As of June 30, 2017 | As of December 31, 2016 | ||||||
Accrued compensation and benefits | $ | 6,745 | $ | 12,976 | |||
Accrued instructional | 3,686 | 3,811 | |||||
Accrued vacation | 2,358 | 1,111 | |||||
Accrued invoices | 9,349 | 11,252 | |||||
Other(1) | 2,162 | 2,152 | |||||
Total | $ | 24,300 | $ | 31,302 |
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2017 | $ | 3,873 | |
2018 | 6,712 | ||
2019 | 5,668 | ||
2020 | 5,233 | ||
2021 | 4,681 | ||
2022 and thereafter | 32,879 | ||
Total | $ | 59,046 |
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Hackbright | DevMountain | ||||||
Cash and cash equivalents | $ | 499 | $ | 336 | |||
Other assets | 407 | 745 | |||||
Intangibles: | |||||||
Trade Name | 4,500 | 3,400 | |||||
Customer Relationships | 800 | — | |||||
Course Content | 900 | 200 | |||||
Goodwill | 12,659 | 10,672 | |||||
Deferred tax asset (liability) | (988 | ) | 12 | ||||
Liabilities assumed | (788 | ) | (418 | ) | |||
Total assets acquired and liabilities assumed, net | 17,989 | 14,947 | |||||
Less: Fair value of contingent consideration | — | — | |||||
Less: Cash acquired | (499 | ) | (336 | ) | |||
Cash paid for acquisition, net of cash acquired | $ | 17,490 | $ | 14,611 |
• | Intangible assets - The Company used income approaches to value the acquired intangibles. The trade names were valued using the relief-from-royalty method, which represents the benefit of owning these intangible assets rather than paying royalties for their use. Course content was valued using the differential income method, and the customer relationships were valued using the excess earnings method. |
• | Deferred revenue - The Company estimated the fair value of deferred revenue using the cost build-up method, which represents the cost to deliver the services, plus a normal profit margin. Deferred revenue is included in liabilities assumed within the schedule of assets acquired and liabilities assumed above. |
• | Contingent consideration liability - The fair value of the contingent consideration was determined using a discounted cash flow model encompassing significant unobservable inputs, including the discount rate and probability weighted cash flows over the performance period. |
• | Other current and noncurrent assets and liabilities - The carrying value of all other assets and liabilities approximated fair value at the time of acquisition. |
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Foreign Currency Translation Loss | Unrealized Gain (Loss) on Marketable Securities | Accumulated Other Comprehensive Loss(1) | |||||||||
Beginning balance, December 31, 2016 | $ | (6 | ) | $ | (87 | ) | $ | (93 | ) | ||
Other comprehensive income (loss) | 3 | 87 | 90 | ||||||||
Ending balance, June 30, 2017 | $ | (3 | ) | $ | — | $ | (3 | ) |
(1) | Accumulated other comprehensive loss is presented net of tax of $52 thousand as of December 31, 2016. |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | |||||||||||||||
Post-Secondary | $ | 106,974 | $ | 105,789 | $ | 216,455 | $ | 211,216 | |||||||
Job-Ready Skills | 2,610 | 936 | 4,917 | 957 | |||||||||||
Consolidated Revenues | $ | 109,584 | $ | 106,725 | $ | 221,372 | $ | 212,173 | |||||||
Operating income (loss) | |||||||||||||||
Post-Secondary | $ | 17,754 | $ | 21,566 | $ | 38,005 | $ | 39,285 | |||||||
Job-Ready Skills | (2,383 | ) | (3,494 | ) | (5,033 | ) | (4,686 | ) | |||||||
Consolidated operating income | 15,371 | 18,072 | 32,972 | 34,599 | |||||||||||
Other income, net | 56 | 42 | 163 | 33 | |||||||||||
Income from continuing operations before income taxes | $ | 15,427 | $ | 18,114 | $ | 33,135 | $ | 34,632 |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | $ | — | $ | 3,425 | $ | — | $ | 6,695 | |||||||
Costs and expenses: | |||||||||||||||
Instructional costs and services | — | 1,650 | — | 3,311 | |||||||||||
Marketing and promotional | — | 1,263 | — | 2,555 | |||||||||||
Admissions advisory | — | 240 | — | 513 | |||||||||||
General and administrative | — | 1,968 | — | 2,921 | |||||||||||
Total costs and expenses | — | 5,121 | — | 9,300 | |||||||||||
Operating loss | — | (1,696 | ) | — | (2,605 | ) | |||||||||
Gain on sale of Arden | — | — | 149 | — | |||||||||||
Other income (expense), net | — | 35 | — | (34 | ) | ||||||||||
Income (loss) before income taxes | — | (1,661 | ) | 149 | (2,639 | ) | |||||||||
Income tax expense (benefit) | — | (282 | ) | 54 | (282 | ) | |||||||||
Income (loss) from discontinued operations, net of tax | $ | — | $ | (1,379 | ) | $ | 95 | $ | (2,357 | ) |
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As of June 30, 2017 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Estimated Fair Value | ||||||||||||
Tax-exempt municipal securities | $ | 42,627 | $ | 16 | $ | (30 | ) | $ | 42,613 | ||||||
Corporate debt securities | 6,966 | 14 | — | 6,980 | |||||||||||
Variable rate demand notes | 11,930 | — | — | 11,930 | |||||||||||
Total | $ | 61,523 | $ | 30 | $ | (30 | ) | $ | 61,523 | ||||||
As of December 31, 2016 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Estimated Fair Value | ||||||||||||
Tax-exempt municipal securities | $ | 63,113 | $ | 2 | $ | (152 | ) | $ | 62,963 | ||||||
Corporate debt securities | 5,804 | 13 | (2 | ) | 5,815 | ||||||||||
Total | $ | 68,917 | $ | 15 | $ | (154 | ) | $ | 68,778 |
As of June 30, 2017 | As of December 31, 2016 | ||||||
Due within one year | $ | 42,940 | $ | 45,458 | |||
Due after one year through five years | 18,583 | 23,320 | |||||
Total | $ | 61,523 | $ | 68,778 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Maturities of marketable securities | $ | 25,455 | $ | 3,065 | $ | 35,995 | $ | 13,625 | |||||||
Total | $ | 25,455 | $ | 3,065 | $ | 35,995 | $ | 13,625 |
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Fair Value Measurements as of June 30, 2017 Using | ||||||||||||||||
Description | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 28,976 | $ | 28,976 | $ | — | $ | — | ||||||||
Money market | 89,047 | 89,047 | — | — | ||||||||||||
Marketable securities: | ||||||||||||||||
Tax-exempt municipal securities | 42,613 | — | 42,613 | — | ||||||||||||
Corporate debt securities | 6,980 | — | 6,980 | — | ||||||||||||
Variable rate demand notes | 11,930 | — | 11,930 | — | ||||||||||||
Total assets at fair value on a recurring basis | $ | 179,546 | $ | 118,023 | $ | 61,523 | $ | — |
Fair Value Measurements as of December 31, 2016 Using | ||||||||||||||||
Description | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 24,658 | $ | 24,658 | $ | — | $ | — | ||||||||
Money market | 68,237 | 68,237 | — | — | ||||||||||||
Variable rate demand notes | 675 | — | 675 | — | ||||||||||||
Marketable securities: | ||||||||||||||||
Tax-exempt municipal securities | 62,963 | — | 62,963 | — | ||||||||||||
Corporate debt securities | 5,815 | — | 5,815 | — | ||||||||||||
Total assets at fair value on a recurring basis | $ | 162,348 | $ | 92,895 | $ | 69,453 | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Balance, beginning of period | $ | — | $ | — | $ | — | $ | — | ||||||||
Initial fair value of contingent consideration | — | 1,500 | — | 1,500 | ||||||||||||
Balance, end of period | $ | — | $ | 1,500 | $ | — | $ | 1,500 |
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As of June 30, 2017 | As of December 31, 2016 | ||||||
Accrued compensation and benefits | $ | 6,745 | $ | 12,976 | |||
Accrued instructional | 3,686 | 3,811 | |||||
Accrued vacation | 2,358 | 1,111 | |||||
Accrued invoices | 9,349 | 11,252 | |||||
Other(1) | 2,162 | 2,152 | |||||
Total | $ | 24,300 | $ | 31,302 |
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2017 | $ | 3,873 | |
2018 | 6,712 | ||
2019 | 5,668 | ||
2020 | 5,233 | ||
2021 | 4,681 | ||
2022 and thereafter | 32,879 | ||
Total | $ | 59,046 |
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Hackbright | DevMountain | ||||||
Cash and cash equivalents | $ | 499 | $ | 336 | |||
Other assets | 407 | 745 | |||||
Intangibles: | |||||||
Trade Name | 4,500 | 3,400 | |||||
Customer Relationships | 800 | — | |||||
Course Content | 900 | 200 | |||||
Goodwill | 12,659 | 10,672 | |||||
Deferred tax asset (liability) | (988 | ) | 12 | ||||
Liabilities assumed | (788 | ) | (418 | ) | |||
Total assets acquired and liabilities assumed, net | 17,989 | 14,947 | |||||
Less: Fair value of contingent consideration | — | — | |||||
Less: Cash acquired | (499 | ) | (336 | ) | |||
Cash paid for acquisition, net of cash acquired | $ | 17,490 | $ | 14,611 |
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Foreign Currency Translation Loss | Unrealized Gain (Loss) on Marketable Securities | Accumulated Other Comprehensive Loss(1) | |||||||||
Beginning balance, December 31, 2016 | $ | (6 | ) | $ | (87 | ) | $ | (93 | ) | ||
Other comprehensive income (loss) | 3 | 87 | 90 | ||||||||
Ending balance, June 30, 2017 | $ | (3 | ) | $ | — | $ | (3 | ) |
(1) | Accumulated other comprehensive loss is presented net of tax of $52 thousand as of December 31, 2016 |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | |||||||||||||||
Post-Secondary | $ | 106,974 | $ | 105,789 | $ | 216,455 | $ | 211,216 | |||||||
Job-Ready Skills | 2,610 | 936 | 4,917 | 957 | |||||||||||
Consolidated Revenues | $ | 109,584 | $ | 106,725 | $ | 221,372 | $ | 212,173 | |||||||
Operating income (loss) | |||||||||||||||
Post-Secondary | $ | 17,754 | $ | 21,566 | $ | 38,005 | $ | 39,285 | |||||||
Job-Ready Skills | (2,383 | ) | (3,494 | ) | (5,033 | ) | (4,686 | ) | |||||||
Consolidated operating income | 15,371 | 18,072 | 32,972 | 34,599 | |||||||||||
Other income, net | 56 | 42 | 163 | 33 | |||||||||||
Income from continuing operations before income taxes | $ | 15,427 | $ | 18,114 | $ | 33,135 | $ | 34,632 |
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