|
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As of December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Cash and cash equivalents | $ | 185,098 | $ | 307,802 | $ | 282,145 | |||||
Restricted cash | 20,428 | 24,533 | 24,685 | ||||||||
Total cash, cash equivalents and restricted cash | $ | 205,526 | $ | 332,335 | $ | 306,830 |
Furniture and office equipment | 3 - 7 years |
Software | 3 - 5 years |
Vehicles | 5 years |
Unrealized gains (losses) on investments | |||||||||||
Year ended: | Before-Tax Amount | Tax Effect | Net-of-Tax Amount | ||||||||
December 31, 2017 | $ | 1 | $ | — | $ | 1 | |||||
December 31, 2016 | $ | 157 | $ | (59 | ) | $ | 98 | ||||
December 31, 2015 | $ | 125 | $ | (49 | ) | $ | 76 |
|
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Asset impairment | $ | 798 | $ | 2,215 | $ | 43,328 | |||||
Student transfer agreement costs | (120 | ) | (142 | ) | 3,264 | ||||||
Severance costs | 2,175 | 2,668 | 4,717 | ||||||||
Lease exit and other costs | 5,829 | 14,535 | 17,047 | ||||||||
Total restructuring and impairment charges | $ | 8,682 | $ | 19,276 | $ | 68,356 |
Asset Impairment | Student Transfer Agreement Costs | Severance Costs | Lease Exit and Other Costs | Total | |||||||||||||||
Balance at December 31, 2014 | $ | — | $ | — | $ | 860 | $ | 6,580 | $ | 7,440 | |||||||||
Restructuring and impairment charges | 43,328 | 3,264 | 4,717 | 17,047 | 68,356 | ||||||||||||||
Payments | — | (40 | ) | (3,833 | ) | (9,706 | ) | (13,579 | ) | ||||||||||
Non-cash transaction | (43,328 | ) | — | — | — | (43,328 | ) | ||||||||||||
Balance at December 31, 2015 | — | 3,224 | 1,744 | 13,921 | 18,889 | ||||||||||||||
Restructuring and impairment charges | 2,215 | (142 | ) | 2,668 | 14,535 | 19,276 | |||||||||||||
Payments | — | (1,490 | ) | (3,845 | ) | (9,999 | ) | (15,334 | ) | ||||||||||
Non-cash transaction | (2,215 | ) | — | — | — | (2,215 | ) | ||||||||||||
Balance at December 31, 2016 | — | 1,592 | 567 | 18,457 | 20,616 | ||||||||||||||
Restructuring and impairment charges | 798 | (120 | ) | 2,175 | 5,829 | 8,682 | |||||||||||||
Payments | — | (878 | ) | (2,547 | ) | (13,643 | ) | (17,068 | ) | ||||||||||
Non-cash transaction | (798 | ) | — | — | — | (798 | ) | ||||||||||||
Balance at December 31, 2017 | $ | — | $ | 594 | $ | 195 | $ | 10,643 | $ | 11,432 |
|
December 31, 2017 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Mutual funds | $ | 2,065 | $ | — | $ | — | $ | 2,065 | |||||||
Total | $ | 2,065 | $ | — | $ | — | $ | 2,065 |
December 31, 2016 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Mutual funds | $ | 1,688 | $ | — | $ | — | $ | 1,688 | |||||||
Corporate notes and bonds | — | 22,746 | — | 22,746 | |||||||||||
Certificates of deposit | — | 25,000 | — | 25,000 | |||||||||||
Total | $ | 1,688 | $ | 47,746 | $ | — | $ | 49,434 |
December 31, 2016 | |||||||||||||||||
Gross unrealized | |||||||||||||||||
Maturities | Amortized Cost | Gain | Loss | Fair Value | |||||||||||||
Short-term | |||||||||||||||||
Corporate notes and bonds | 1 year or less | $ | 22,747 | $ | 2 | $ | (3 | ) | $ | 22,746 | |||||||
Certificate of deposit | 1 year or less | 25,000 | — | — | 25,000 | ||||||||||||
Total | $ | 47,747 | $ | 2 | $ | (3 | ) | $ | 47,746 |
|
As of December 31, | |||||||
2017 | 2016 | ||||||
Accounts receivable | $ | 44,656 | $ | 42,611 | |||
Less allowance for doubtful accounts | 17,579 | 16,154 | |||||
Accounts receivable, net | $ | 27,077 | $ | 26,457 |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful accounts receivable: | |||||||||||||||
For the year ended December 31, 2017 | $ | 16,154 | $ | 32,151 | $ | (30,726 | ) | $ | 17,579 | ||||||
For the year ended December 31, 2016 | $ | 10,114 | $ | 32,423 | $ | (26,383 | ) | $ | 16,154 | ||||||
For the year ended December 31, 2015 | $ | 27,567 | $ | 29,782 | $ | (47,235 | ) | $ | 10,114 |
(1) | Deductions represent accounts written off, net of recoveries. |
|
As of December 31, | |||||||
2017 | 2016 | ||||||
Prepaid expenses | $ | 6,195 | $ | 7,160 | |||
Prepaid licenses | 4,882 | 5,183 | |||||
Income tax receivable | 8,889 | 7,432 | |||||
Prepaid insurance | 1,215 | 1,291 | |||||
Insurance recoverable | 665 | 702 | |||||
Legal insurance recoverable | 527 | 325 | |||||
Interest receivable | — | 142 | |||||
Other current assets | 15 | 1,232 | |||||
Total prepaid expenses and other current assets | $ | 22,388 | $ | 23,467 |
|
As of December 31, | |||||||
2017 | 2016 | ||||||
Furniture and office equipment | $ | 43,330 | $ | 41,528 | |||
Software | 12,313 | 11,979 | |||||
Leasehold improvements | 5,445 | 4,332 | |||||
Vehicles | 22 | 22 | |||||
Total property and equipment | 61,110 | 57,861 | |||||
Less accumulated depreciation and amortization | (50,676 | ) | (45,643 | ) | |||
Total property and equipment, net | $ | 10,434 | $ | 12,218 |
|
December 31, 2017 | |||||||||||
Definite-lived intangible assets: | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||
Capitalized curriculum costs | $ | 21,463 | $ | (19,300 | ) | $ | 2,163 | ||||
Purchased intangible assets | 15,850 | (5,987 | ) | 9,863 | |||||||
Total definite-lived intangible assets | $ | 37,313 | $ | (25,287 | ) | $ | 12,026 | ||||
Goodwill and indefinite-lived intangibles | 2,567 | ||||||||||
Total goodwill and intangibles, net | $ | 14,593 | |||||||||
December 31, 2016 | |||||||||||
Definite-lived intangible assets: | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||
Capitalized curriculum costs | $ | 21,153 | $ | (17,397 | ) | $ | 3,756 | ||||
Purchased intangible assets | 15,850 | (4,754 | ) | 11,096 | |||||||
Total definite-lived intangible assets | $ | 37,003 | $ | (22,151 | ) | $ | 14,852 | ||||
Goodwill and indefinite-lived intangibles | 2,567 | ||||||||||
Total goodwill and intangibles, net | $ | 17,419 |
Year Ended December 31, | ||||
2018 | $ | 2,497 | ||
2019 | 1,793 | |||
2020 | 1,497 | |||
2021 | 1,299 | |||
2022 | 1,236 | |||
Thereafter | 3,704 | |||
Total future amortization expense | $ | 12,026 |
|
As of December 31, | |||||||
2017 | 2016 | ||||||
Accounts payable | $ | 5,619 | $ | 4,519 | |||
Accrued salaries and wages | 8,573 | 8,967 | |||||
Accrued bonus | 6,924 | 5,087 | |||||
Accrued vacation | 8,237 | 9,313 | |||||
Accrued litigation and fees | 9,886 | 13,946 | |||||
Accrued expenses | 16,024 | 15,793 | |||||
Rent liability | 12,971 | 17,232 | |||||
Accrued insurance liability | 2,931 | 3,009 | |||||
Total accrued liabilities | $ | 71,165 | $ | 77,866 |
|
As of December 31, | |||||||
2017 | 2016 | ||||||
Deferred revenue | $ | 19,135 | $ | 21,733 | |||
Student deposits | 49,072 | 52,933 | |||||
Total deferred revenue and student deposits | $ | 68,207 | $ | 74,666 |
|
As of December 31, | |||||||
2017 | 2016 | ||||||
Uncertain tax positions | $ | 8,893 | $ | 8,216 | |||
Other long-term liabilities | 3,815 | 5,414 | |||||
Total other long term liabilities | $ | 12,708 | $ | 13,630 |
|
|
Year Ended December 31, | ||||
2018 | $ | 31,400 | ||
2019 | 20,833 | |||
2020 | 9,504 | |||
2021 | 5,112 | |||
2022 | 1,558 | |||
Thereafter | 390 | |||
Total minimum payments | $ | 68,797 |
|
Options Outstanding | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||
December 31, 2014 | 5,168 | $ | 14.26 | 5.73 | $ | 7,732 | ||||||
Granted | 455 | $ | 9.44 | |||||||||
Exercised | (206 | ) | $ | 1.38 | ||||||||
Forfeitures and expired | (764 | ) | $ | 18.15 | ||||||||
December 31, 2015 | 4,653 | $ | 13.72 | 4.84 | $ | 2,556 | ||||||
Granted | 375 | $ | 10.44 | |||||||||
Exercised | (306 | ) | $ | 4.35 | ||||||||
Forfeitures and expired | (1,115 | ) | $ | 15.41 | ||||||||
December 31, 2016 | 3,607 | $ | 13.64 | 4.80 | $ | 2,025 | ||||||
Granted | 332 | $ | 10.44 | |||||||||
Exercised | (537 | ) | $ | 7.17 | ||||||||
Forfeitures and expired | (502 | ) | $ | 15.51 | ||||||||
December 31, 2017 | 2,900 | $ | 14.15 | 4.23 | $ | — | ||||||
Vested and expected to vest at December 31, 2017 | 2,848 | $ | 14.22 | 4.15 | $ | — | ||||||
Exercisable at December 31, 2017 | 2,467 | $ | 14.79 | 3.46 | $ | — |
2017 | 2016 | 2015 | |||||||||
Weighted average exercise price per share | $ | 10.44 | $ | 10.44 | $ | 9.44 | |||||
Risk-free interest rate | 2.1 | % | 1.4 | % | 1.6 | % | |||||
Expected dividend yield | — | — | — | ||||||||
Expected volatility | 47.2 | % | 49.8 | % | 50.7 | % | |||||
Expected life (in years) | 5.75 | 5.75 | 5.75 | ||||||||
Forfeiture rate | 11.0 | % | 9.0 | % | 7.0 | % | |||||
Weighted average grant date fair value per share | $ | 4.76 | $ | 4.91 | $ | 4.52 |
2015 | |||
Grant price per share | $ | 9.46 | |
Risk-free interest rate | 0.7 | % | |
Expected dividend yield | — | ||
Historical volatility | 50.0 | % | |
Expected life (in years) | 4.0 | ||
Forfeiture rate | 7.0 | % | |
Weighted average grant date fair value per share | $ | 4.04 |
Restricted Stock Units and Performance Stock Units | ||||||||||||||||||||
Time-Based RSU | Performance-Based PSU | Market-Based PSU | ||||||||||||||||||
Number of Shares | Weighted Average Purchase Price | Number of Shares | Weighted Average Purchase Price | Number of Shares | Weighted Average Purchase Price | |||||||||||||||
Balance at December 31, 2014 | 1,279 | $ | 12.63 | — | — | 975 | $ | 5.39 | ||||||||||||
Awarded | 983 | $ | 9.33 | 456 | $ | 9.86 | 229 | $ | 4.04 | |||||||||||
Vested | (353 | ) | $ | 12.34 | — | — | — | — | ||||||||||||
Canceled | (519 | ) | $ | 11.51 | (97 | ) | $ | 9.86 | (238 | ) | $ | 5.21 | ||||||||
Balance at December 31, 2015 | 1,390 | $ | 10.78 | 359 | $ | 9.86 | 966 | $ | 5.11 | |||||||||||
Awarded | 505 | $ | 10.18 | — | — | — | — | |||||||||||||
Vested | (472 | ) | $ | 10.84 | — | — | — | — | ||||||||||||
Canceled | (289 | ) | $ | 10.69 | (92 | ) | $ | 9.86 | (231 | ) | $ | 5.19 | ||||||||
Balance at December 31, 2016 | 1,134 | $ | 10.52 | 267 | $ | 9.86 | 735 | $ | 5.09 | |||||||||||
Awarded | 473 | $ | 10.45 | — | — | — | — | |||||||||||||
Vested | (461 | ) | $ | 10.58 | — | — | — | — | ||||||||||||
Canceled | (302 | ) | $ | 10.51 | (103 | ) | $ | 9.86 | (300 | ) | $ | 5.04 | ||||||||
Balance at December 31, 2017 | 844 | $ | 10.45 | 164 | $ | 9.86 | 435 | $ | 5.13 |
|
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Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Current: | |||||||||||
Federal | $ | (1,091 | ) | $ | (8,433 | ) | $ | (10,370 | ) | ||
State | 517 | 530 | (309 | ) | |||||||
(574 | ) | (7,903 | ) | (10,679 | ) | ||||||
Deferred: | |||||||||||
Federal | (605 | ) | 25 | 33,482 | |||||||
State | 5 | 3 | 7,462 | ||||||||
(600 | ) | 28 | 40,944 | ||||||||
Total | $ | (1,174 | ) | $ | (7,875 | ) | $ | 30,265 |
As of December 31, | |||||||
2017 | 2016 | ||||||
Deferred tax assets: | |||||||
Net operating loss | $ | 2,414 | $ | 1,052 | |||
Fixed assets | (291 | ) | (1,241 | ) | |||
Bad debt | 1,506 | 1,979 | |||||
Vacation accrual | 1,880 | 3,249 | |||||
Stock-based compensation | 6,435 | 12,827 | |||||
Deferred rent | 4,818 | 12,687 | |||||
State tax | 1,520 | 2,534 | |||||
Bonus accrual | 1,372 | 1,873 | |||||
Accrued expenses | 3,711 | 5,994 | |||||
Revenue reserves | 104 | 135 | |||||
Other | 766 | 760 | |||||
Total deferred tax assets | 24,235 | 41,849 | |||||
Valuation allowance | (23,891 | ) | (41,849 | ) | |||
Net deferred tax assets | 344 | — | |||||
Deferred tax liabilities: | |||||||
Indefinite-lived intangibles | (517 | ) | (773 | ) | |||
Total deferred tax liabilities | (517 | ) | (773 | ) | |||
Total net deferred tax assets (liabilities) | $ | (173 | ) | $ | (773 | ) |
Year Ended December 31, | |||||||||||||||||
2017 | 2016 | 2015 | |||||||||||||||
Computed expected federal tax expense | $ | 3,277 | 35.0 | % | $ | (13,270 | ) | 35.0 | % | $ | (14,066 | ) | 35.0 | % | |||
State taxes, net of federal benefit | 321 | 3.4 | (551 | ) | 1.5 | (655 | ) | 1.6 | |||||||||
Permanent differences | (362 | ) | (3.8 | ) | 341 | (0.9 | ) | 1,033 | (2.6 | ) | |||||||
Penalty | — | — | 2,800 | (7.4 | ) | — | — | ||||||||||
Uncertain tax positions | 677 | 7.2 | 346 | (1.0 | ) | 480 | (1.2 | ) | |||||||||
Credits | (466 | ) | (4.9 | ) | (402 | ) | 1.1 | (206 | ) | 0.5 | |||||||
Stock compensation | 1,277 | 13.6 | 116 | (0.3 | ) | 1,246 | (3.1 | ) | |||||||||
Federal tax rate change | 11,974 | 127.9 | — | — | — | — | |||||||||||
Valuation allowance | (17,958 | ) | (191.8 | ) | 2,708 | (7.1 | ) | 42,419 | (105.5 | ) | |||||||
Other | 86 | 0.9 | 37 | (0.1 | ) | 14 | — | ||||||||||
Income tax expense (benefit) | $ | (1,174 | ) | (12.5 | )% | $ | (7,875 | ) | 20.8 | % | $ | 30,265 | (75.3 | )% |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Unrecognized tax benefits at beginning of period | $ | 20,248 | $ | 20,589 | $ | 20,877 | |||||
Gross increases-tax positions in prior period | 427 | 176 | 169 | ||||||||
Gross decreases-tax positions in prior period | (1,354 | ) | (517 | ) | (2 | ) | |||||
Gross increases-current period tax positions | — | — | — | ||||||||
Settlements | — | — | (455 | ) | |||||||
Lapse of statute of limitations | (452 | ) | — | — | |||||||
Unrecognized tax benefits at end of period | $ | 18,869 | $ | 20,248 | $ | 20,589 |
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First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2017 | |||||||||||||||
Revenue | $ | 129,490 | $ | 124,581 | $ | 119,367 | $ | 104,959 | |||||||
Operating income (loss) | 9,662 | 6,180 | (1,503 | ) | (6,487 | ) | |||||||||
Net income (loss) | 9,869 | 6,314 | 39 | (5,685 | ) | ||||||||||
Income (loss) per share: | |||||||||||||||
Basic | $ | 0.23 | $ | 0.22 | $ | 0.00 | $ | (0.20 | ) | ||||||
Diluted | $ | 0.23 | $ | 0.21 | $ | 0.00 | $ | (0.20 | ) |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2016 | |||||||||||||||
Revenue | $ | 133,002 | $ | 137,970 | $ | 136,583 | $ | 119,535 | |||||||
Operating income (loss) | (16,299 | ) | 3,357 | (8,823 | ) | (18,456 | ) | ||||||||
Net income (loss) | (10,112 | ) | 3,338 | (9,477 | ) | (13,789 | ) | ||||||||
Income (loss) per share: | |||||||||||||||
Basic | $ | (0.22 | ) | $ | 0.07 | $ | (0.20 | ) | $ | (0.30 | ) | ||||
Diluted | $ | (0.22 | ) | $ | 0.07 | $ | (0.20 | ) | $ | (0.30 | ) |
|
As of December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Cash and cash equivalents | $ | 185,098 | $ | 307,802 | $ | 282,145 | |||||
Restricted cash | 20,428 | 24,533 | 24,685 | ||||||||
Total cash, cash equivalents and restricted cash | $ | 205,526 | $ | 332,335 | $ | 306,830 |
Furniture and office equipment | 3 - 7 years |
Software | 3 - 5 years |
Vehicles | 5 years |
Unrealized gains (losses) on investments | |||||||||||
Year ended: | Before-Tax Amount | Tax Effect | Net-of-Tax Amount | ||||||||
December 31, 2017 | $ | 1 | $ | — | $ | 1 | |||||
December 31, 2016 | $ | 157 | $ | (59 | ) | $ | 98 | ||||
December 31, 2015 | $ | 125 | $ | (49 | ) | $ | 76 |
|
As of December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Cash and cash equivalents | $ | 185,098 | $ | 307,802 | $ | 282,145 | |||||
Restricted cash | 20,428 | 24,533 | 24,685 | ||||||||
Total cash, cash equivalents and restricted cash | $ | 205,526 | $ | 332,335 | $ | 306,830 |
Furniture and office equipment | 3 - 7 years |
Software | 3 - 5 years |
Vehicles | 5 years |
As of December 31, | |||||||
2017 | 2016 | ||||||
Furniture and office equipment | $ | 43,330 | $ | 41,528 | |||
Software | 12,313 | 11,979 | |||||
Leasehold improvements | 5,445 | 4,332 | |||||
Vehicles | 22 | 22 | |||||
Total property and equipment | 61,110 | 57,861 | |||||
Less accumulated depreciation and amortization | (50,676 | ) | (45,643 | ) | |||
Total property and equipment, net | $ | 10,434 | $ | 12,218 |
Unrealized gains (losses) on investments | |||||||||||
Year ended: | Before-Tax Amount | Tax Effect | Net-of-Tax Amount | ||||||||
December 31, 2017 | $ | 1 | $ | — | $ | 1 | |||||
December 31, 2016 | $ | 157 | $ | (59 | ) | $ | 98 | ||||
December 31, 2015 | $ | 125 | $ | (49 | ) | $ | 76 |
|
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Asset impairment | $ | 798 | $ | 2,215 | $ | 43,328 | |||||
Student transfer agreement costs | (120 | ) | (142 | ) | 3,264 | ||||||
Severance costs | 2,175 | 2,668 | 4,717 | ||||||||
Lease exit and other costs | 5,829 | 14,535 | 17,047 | ||||||||
Total restructuring and impairment charges | $ | 8,682 | $ | 19,276 | $ | 68,356 |
Asset Impairment | Student Transfer Agreement Costs | Severance Costs | Lease Exit and Other Costs | Total | |||||||||||||||
Balance at December 31, 2014 | $ | — | $ | — | $ | 860 | $ | 6,580 | $ | 7,440 | |||||||||
Restructuring and impairment charges | 43,328 | 3,264 | 4,717 | 17,047 | 68,356 | ||||||||||||||
Payments | — | (40 | ) | (3,833 | ) | (9,706 | ) | (13,579 | ) | ||||||||||
Non-cash transaction | (43,328 | ) | — | — | — | (43,328 | ) | ||||||||||||
Balance at December 31, 2015 | — | 3,224 | 1,744 | 13,921 | 18,889 | ||||||||||||||
Restructuring and impairment charges | 2,215 | (142 | ) | 2,668 | 14,535 | 19,276 | |||||||||||||
Payments | — | (1,490 | ) | (3,845 | ) | (9,999 | ) | (15,334 | ) | ||||||||||
Non-cash transaction | (2,215 | ) | — | — | — | (2,215 | ) | ||||||||||||
Balance at December 31, 2016 | — | 1,592 | 567 | 18,457 | 20,616 | ||||||||||||||
Restructuring and impairment charges | 798 | (120 | ) | 2,175 | 5,829 | 8,682 | |||||||||||||
Payments | — | (878 | ) | (2,547 | ) | (13,643 | ) | (17,068 | ) | ||||||||||
Non-cash transaction | (798 | ) | — | — | — | (798 | ) | ||||||||||||
Balance at December 31, 2017 | $ | — | $ | 594 | $ | 195 | $ | 10,643 | $ | 11,432 |
|
December 31, 2017 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Mutual funds | $ | 2,065 | $ | — | $ | — | $ | 2,065 | |||||||
Total | $ | 2,065 | $ | — | $ | — | $ | 2,065 |
December 31, 2016 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Mutual funds | $ | 1,688 | $ | — | $ | — | $ | 1,688 | |||||||
Corporate notes and bonds | — | 22,746 | — | 22,746 | |||||||||||
Certificates of deposit | — | 25,000 | — | 25,000 | |||||||||||
Total | $ | 1,688 | $ | 47,746 | $ | — | $ | 49,434 |
December 31, 2016 | |||||||||||||||||
Gross unrealized | |||||||||||||||||
Maturities | Amortized Cost | Gain | Loss | Fair Value | |||||||||||||
Short-term | |||||||||||||||||
Corporate notes and bonds | 1 year or less | $ | 22,747 | $ | 2 | $ | (3 | ) | $ | 22,746 | |||||||
Certificate of deposit | 1 year or less | 25,000 | — | — | 25,000 | ||||||||||||
Total | $ | 47,747 | $ | 2 | $ | (3 | ) | $ | 47,746 |
|
As of December 31, | |||||||
2017 | 2016 | ||||||
Accounts receivable | $ | 44,656 | $ | 42,611 | |||
Less allowance for doubtful accounts | 17,579 | 16,154 | |||||
Accounts receivable, net | $ | 27,077 | $ | 26,457 |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||||
Allowance for doubtful accounts receivable: | |||||||||||||||
For the year ended December 31, 2017 | $ | 16,154 | $ | 32,151 | $ | (30,726 | ) | $ | 17,579 | ||||||
For the year ended December 31, 2016 | $ | 10,114 | $ | 32,423 | $ | (26,383 | ) | $ | 16,154 | ||||||
For the year ended December 31, 2015 | $ | 27,567 | $ | 29,782 | $ | (47,235 | ) | $ | 10,114 |
(1) | Deductions represent accounts written off, net of recoveries. |
|
As of December 31, | |||||||
2017 | 2016 | ||||||
Prepaid expenses | $ | 6,195 | $ | 7,160 | |||
Prepaid licenses | 4,882 | 5,183 | |||||
Income tax receivable | 8,889 | 7,432 | |||||
Prepaid insurance | 1,215 | 1,291 | |||||
Insurance recoverable | 665 | 702 | |||||
Legal insurance recoverable | 527 | 325 | |||||
Interest receivable | — | 142 | |||||
Other current assets | 15 | 1,232 | |||||
Total prepaid expenses and other current assets | $ | 22,388 | $ | 23,467 |
|
Furniture and office equipment | 3 - 7 years |
Software | 3 - 5 years |
Vehicles | 5 years |
As of December 31, | |||||||
2017 | 2016 | ||||||
Furniture and office equipment | $ | 43,330 | $ | 41,528 | |||
Software | 12,313 | 11,979 | |||||
Leasehold improvements | 5,445 | 4,332 | |||||
Vehicles | 22 | 22 | |||||
Total property and equipment | 61,110 | 57,861 | |||||
Less accumulated depreciation and amortization | (50,676 | ) | (45,643 | ) | |||
Total property and equipment, net | $ | 10,434 | $ | 12,218 |
|
December 31, 2017 | |||||||||||
Definite-lived intangible assets: | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||
Capitalized curriculum costs | $ | 21,463 | $ | (19,300 | ) | $ | 2,163 | ||||
Purchased intangible assets | 15,850 | (5,987 | ) | 9,863 | |||||||
Total definite-lived intangible assets | $ | 37,313 | $ | (25,287 | ) | $ | 12,026 | ||||
Goodwill and indefinite-lived intangibles | 2,567 | ||||||||||
Total goodwill and intangibles, net | $ | 14,593 | |||||||||
December 31, 2016 | |||||||||||
Definite-lived intangible assets: | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||
Capitalized curriculum costs | $ | 21,153 | $ | (17,397 | ) | $ | 3,756 | ||||
Purchased intangible assets | 15,850 | (4,754 | ) | 11,096 | |||||||
Total definite-lived intangible assets | $ | 37,003 | $ | (22,151 | ) | $ | 14,852 | ||||
Goodwill and indefinite-lived intangibles | 2,567 | ||||||||||
Total goodwill and intangibles, net | $ | 17,419 |
Year Ended December 31, | ||||
2018 | $ | 2,497 | ||
2019 | 1,793 | |||
2020 | 1,497 | |||
2021 | 1,299 | |||
2022 | 1,236 | |||
Thereafter | 3,704 | |||
Total future amortization expense | $ | 12,026 |
|
As of December 31, | |||||||
2017 | 2016 | ||||||
Accounts payable | $ | 5,619 | $ | 4,519 | |||
Accrued salaries and wages | 8,573 | 8,967 | |||||
Accrued bonus | 6,924 | 5,087 | |||||
Accrued vacation | 8,237 | 9,313 | |||||
Accrued litigation and fees | 9,886 | 13,946 | |||||
Accrued expenses | 16,024 | 15,793 | |||||
Rent liability | 12,971 | 17,232 | |||||
Accrued insurance liability | 2,931 | 3,009 | |||||
Total accrued liabilities | $ | 71,165 | $ | 77,866 |
|
As of December 31, | |||||||
2017 | 2016 | ||||||
Deferred revenue | $ | 19,135 | $ | 21,733 | |||
Student deposits | 49,072 | 52,933 | |||||
Total deferred revenue and student deposits | $ | 68,207 | $ | 74,666 |
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As of December 31, | |||||||
2017 | 2016 | ||||||
Uncertain tax positions | $ | 8,893 | $ | 8,216 | |||
Other long-term liabilities | 3,815 | 5,414 | |||||
Total other long term liabilities | $ | 12,708 | $ | 13,630 |
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Year Ended December 31, | ||||
2018 | $ | 31,400 | ||
2019 | 20,833 | |||
2020 | 9,504 | |||
2021 | 5,112 | |||
2022 | 1,558 | |||
Thereafter | 390 | |||
Total minimum payments | $ | 68,797 |
|
Options Outstanding | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||
December 31, 2014 | 5,168 | $ | 14.26 | 5.73 | $ | 7,732 | ||||||
Granted | 455 | $ | 9.44 | |||||||||
Exercised | (206 | ) | $ | 1.38 | ||||||||
Forfeitures and expired | (764 | ) | $ | 18.15 | ||||||||
December 31, 2015 | 4,653 | $ | 13.72 | 4.84 | $ | 2,556 | ||||||
Granted | 375 | $ | 10.44 | |||||||||
Exercised | (306 | ) | $ | 4.35 | ||||||||
Forfeitures and expired | (1,115 | ) | $ | 15.41 | ||||||||
December 31, 2016 | 3,607 | $ | 13.64 | 4.80 | $ | 2,025 | ||||||
Granted | 332 | $ | 10.44 | |||||||||
Exercised | (537 | ) | $ | 7.17 | ||||||||
Forfeitures and expired | (502 | ) | $ | 15.51 | ||||||||
December 31, 2017 | 2,900 | $ | 14.15 | 4.23 | $ | — | ||||||
Vested and expected to vest at December 31, 2017 | 2,848 | $ | 14.22 | 4.15 | $ | — | ||||||
Exercisable at December 31, 2017 | 2,467 | $ | 14.79 | 3.46 | $ | — |
2017 | 2016 | 2015 | |||||||||
Weighted average exercise price per share | $ | 10.44 | $ | 10.44 | $ | 9.44 | |||||
Risk-free interest rate | 2.1 | % | 1.4 | % | 1.6 | % | |||||
Expected dividend yield | — | — | — | ||||||||
Expected volatility | 47.2 | % | 49.8 | % | 50.7 | % | |||||
Expected life (in years) | 5.75 | 5.75 | 5.75 | ||||||||
Forfeiture rate | 11.0 | % | 9.0 | % | 7.0 | % | |||||
Weighted average grant date fair value per share | $ | 4.76 | $ | 4.91 | $ | 4.52 |
2015 | |||
Grant price per share | $ | 9.46 | |
Risk-free interest rate | 0.7 | % | |
Expected dividend yield | — | ||
Historical volatility | 50.0 | % | |
Expected life (in years) | 4.0 | ||
Forfeiture rate | 7.0 | % | |
Weighted average grant date fair value per share | $ | 4.04 |
Restricted Stock Units and Performance Stock Units | ||||||||||||||||||||
Time-Based RSU | Performance-Based PSU | Market-Based PSU | ||||||||||||||||||
Number of Shares | Weighted Average Purchase Price | Number of Shares | Weighted Average Purchase Price | Number of Shares | Weighted Average Purchase Price | |||||||||||||||
Balance at December 31, 2014 | 1,279 | $ | 12.63 | — | — | 975 | $ | 5.39 | ||||||||||||
Awarded | 983 | $ | 9.33 | 456 | $ | 9.86 | 229 | $ | 4.04 | |||||||||||
Vested | (353 | ) | $ | 12.34 | — | — | — | — | ||||||||||||
Canceled | (519 | ) | $ | 11.51 | (97 | ) | $ | 9.86 | (238 | ) | $ | 5.21 | ||||||||
Balance at December 31, 2015 | 1,390 | $ | 10.78 | 359 | $ | 9.86 | 966 | $ | 5.11 | |||||||||||
Awarded | 505 | $ | 10.18 | — | — | — | — | |||||||||||||
Vested | (472 | ) | $ | 10.84 | — | — | — | — | ||||||||||||
Canceled | (289 | ) | $ | 10.69 | (92 | ) | $ | 9.86 | (231 | ) | $ | 5.19 | ||||||||
Balance at December 31, 2016 | 1,134 | $ | 10.52 | 267 | $ | 9.86 | 735 | $ | 5.09 | |||||||||||
Awarded | 473 | $ | 10.45 | — | — | — | — | |||||||||||||
Vested | (461 | ) | $ | 10.58 | — | — | — | — | ||||||||||||
Canceled | (302 | ) | $ | 10.51 | (103 | ) | $ | 9.86 | (300 | ) | $ | 5.04 | ||||||||
Balance at December 31, 2017 | 844 | $ | 10.45 | 164 | $ | 9.86 | 435 | $ | 5.13 |
|
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Current: | |||||||||||
Federal | $ | (1,091 | ) | $ | (8,433 | ) | $ | (10,370 | ) | ||
State | 517 | 530 | (309 | ) | |||||||
(574 | ) | (7,903 | ) | (10,679 | ) | ||||||
Deferred: | |||||||||||
Federal | (605 | ) | 25 | 33,482 | |||||||
State | 5 | 3 | 7,462 | ||||||||
(600 | ) | 28 | 40,944 | ||||||||
Total | $ | (1,174 | ) | $ | (7,875 | ) | $ | 30,265 |
As of December 31, | |||||||
2017 | 2016 | ||||||
Deferred tax assets: | |||||||
Net operating loss | $ | 2,414 | $ | 1,052 | |||
Fixed assets | (291 | ) | (1,241 | ) | |||
Bad debt | 1,506 | 1,979 | |||||
Vacation accrual | 1,880 | 3,249 | |||||
Stock-based compensation | 6,435 | 12,827 | |||||
Deferred rent | 4,818 | 12,687 | |||||
State tax | 1,520 | 2,534 | |||||
Bonus accrual | 1,372 | 1,873 | |||||
Accrued expenses | 3,711 | 5,994 | |||||
Revenue reserves | 104 | 135 | |||||
Other | 766 | 760 | |||||
Total deferred tax assets | 24,235 | 41,849 | |||||
Valuation allowance | (23,891 | ) | (41,849 | ) | |||
Net deferred tax assets | 344 | — | |||||
Deferred tax liabilities: | |||||||
Indefinite-lived intangibles | (517 | ) | (773 | ) | |||
Total deferred tax liabilities | (517 | ) | (773 | ) | |||
Total net deferred tax assets (liabilities) | $ | (173 | ) | $ | (773 | ) |
Year Ended December 31, | |||||||||||||||||
2017 | 2016 | 2015 | |||||||||||||||
Computed expected federal tax expense | $ | 3,277 | 35.0 | % | $ | (13,270 | ) | 35.0 | % | $ | (14,066 | ) | 35.0 | % | |||
State taxes, net of federal benefit | 321 | 3.4 | (551 | ) | 1.5 | (655 | ) | 1.6 | |||||||||
Permanent differences | (362 | ) | (3.8 | ) | 341 | (0.9 | ) | 1,033 | (2.6 | ) | |||||||
Penalty | — | — | 2,800 | (7.4 | ) | — | — | ||||||||||
Uncertain tax positions | 677 | 7.2 | 346 | (1.0 | ) | 480 | (1.2 | ) | |||||||||
Credits | (466 | ) | (4.9 | ) | (402 | ) | 1.1 | (206 | ) | 0.5 | |||||||
Stock compensation | 1,277 | 13.6 | 116 | (0.3 | ) | 1,246 | (3.1 | ) | |||||||||
Federal tax rate change | 11,974 | 127.9 | — | — | — | — | |||||||||||
Valuation allowance | (17,958 | ) | (191.8 | ) | 2,708 | (7.1 | ) | 42,419 | (105.5 | ) | |||||||
Other | 86 | 0.9 | 37 | (0.1 | ) | 14 | — | ||||||||||
Income tax expense (benefit) | $ | (1,174 | ) | (12.5 | )% | $ | (7,875 | ) | 20.8 | % | $ | 30,265 | (75.3 | )% |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Unrecognized tax benefits at beginning of period | $ | 20,248 | $ | 20,589 | $ | 20,877 | |||||
Gross increases-tax positions in prior period | 427 | 176 | 169 | ||||||||
Gross decreases-tax positions in prior period | (1,354 | ) | (517 | ) | (2 | ) | |||||
Gross increases-current period tax positions | — | — | — | ||||||||
Settlements | — | — | (455 | ) | |||||||
Lapse of statute of limitations | (452 | ) | — | — | |||||||
Unrecognized tax benefits at end of period | $ | 18,869 | $ | 20,248 | $ | 20,589 |
|
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2017 | |||||||||||||||
Revenue | $ | 129,490 | $ | 124,581 | $ | 119,367 | $ | 104,959 | |||||||
Operating income (loss) | 9,662 | 6,180 | (1,503 | ) | (6,487 | ) | |||||||||
Net income (loss) | 9,869 | 6,314 | 39 | (5,685 | ) | ||||||||||
Income (loss) per share: | |||||||||||||||
Basic | $ | 0.23 | $ | 0.22 | $ | 0.00 | $ | (0.20 | ) | ||||||
Diluted | $ | 0.23 | $ | 0.21 | $ | 0.00 | $ | (0.20 | ) |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2016 | |||||||||||||||
Revenue | $ | 133,002 | $ | 137,970 | $ | 136,583 | $ | 119,535 | |||||||
Operating income (loss) | (16,299 | ) | 3,357 | (8,823 | ) | (18,456 | ) | ||||||||
Net income (loss) | (10,112 | ) | 3,338 | (9,477 | ) | (13,789 | ) | ||||||||
Income (loss) per share: | |||||||||||||||
Basic | $ | (0.22 | ) | $ | 0.07 | $ | (0.20 | ) | $ | (0.30 | ) | ||||
Diluted | $ | (0.22 | ) | $ | 0.07 | $ | (0.20 | ) | $ | (0.30 | ) |
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