Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 28, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'AMBASSADORS GROUP INC | ' |
Entity Central Index Key | '0001162315 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 17,038,707 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
CONSOLIDATED_BALANCE_SHEETS_UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $12,574 | $9,473 |
Available-for-sale securities and other | 51,834 | 36,174 |
Foreign currency exchange contracts | 20 | 0 |
Prepaid program costs and expenses | 14,661 | 7,069 |
Accounts receivable | 1,312 | 1,792 |
Deferred tax assets | 2,382 | 1,295 |
Total current assets | 82,783 | 55,803 |
Property and equipment, net | 17,925 | 18,452 |
Available-for-sale securities | 723 | 719 |
Foreign currency exchange contracts | 15 | 0 |
Intangibles | 3,502 | 3,522 |
Goodwill | 9,781 | 9,781 |
Other long-term assets | 84 | 82 |
Total assets | 114,813 | 88,359 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 3,339 | 3,587 |
Participants' deposits | 59,877 | 26,362 |
Foreign currency exchange contracts | 134 | 244 |
Other liabilities | 130 | 119 |
Total current liabilities | 63,480 | 30,312 |
Participants' deposits | 712 | 0 |
Foreign currency exchange contracts | 0 | 52 |
Deferred tax liabilities | 1,835 | 2,087 |
Total liabilities | 66,027 | 32,451 |
Commitments and Contingencies (Note 12) | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, $.01 par value; 2,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $.01 par value; 50,000,000 shares authorized; 17,039,367 and 17,040,724 shares issued and outstanding, respectively | 170 | 170 |
Additional paid-in capital | 598 | 411 |
Retained earnings | 48,325 | 55,876 |
Accumulated other comprehensive gain (loss) | -307 | -549 |
Stockholders' equity | 48,786 | 55,908 |
Total liabilities and stockholders' equity | $114,813 | $88,359 |
CONSOLIDATED_BALANCE_SHEETS_UN1
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 17,039,367 | 17,040,724 |
Common stock, shares outstanding (in shares) | 17,039,367 | 17,040,724 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) [Abstract] | ' | ' |
Net revenue, non-directly delivered programs | $116 | $0 |
Gross revenue, directly delivered programs | 273 | 1,894 |
Gross revenue, internet and advertising | 1,008 | 999 |
Total revenue | 1,397 | 2,893 |
Cost of sales, directly delivered programs | 209 | 1,372 |
Cost of sales, internet and advertising | 132 | 129 |
Gross margin | 1,056 | 1,392 |
Operating expenses: | ' | ' |
Selling and marketing | 6,993 | 8,519 |
General and administrative | 3,140 | 5,666 |
Restructuring costs | 108 | 0 |
Total operating expenses | 10,241 | 14,185 |
Operating loss | -9,185 | -12,793 |
Other income: | ' | ' |
Interest and dividend income | 131 | 127 |
Foreign currency and other income | 3 | 20 |
Total other income | 134 | 147 |
Loss before income tax benefit | -9,051 | -12,646 |
Income tax benefit | 1,500 | 4,587 |
Net Loss | ($7,551) | ($8,059) |
Weighted-average common shares outstanding - basic (in shares) | 16,755 | 17,001 |
Weighted-average common shares outstanding - diluted (in shares) | 16,755 | 17,001 |
Net loss per share - basic (in dollars per share) | ($0.45) | ($0.47) |
Net loss per share - diluted (in dollars per share) | ($0.45) | ($0.47) |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) [Abstract] | ' | ' |
Net loss | ($7,551) | ($8,059) |
Unrealized gain (loss) on foreign currency exchange contracts, net of income tax benefit (provision) of ($69) and $274 | 128 | -509 |
Unrealized gain on available-for-sale securities, net of income tax provision of ($61) and ($26) | 114 | 48 |
Comprehensive loss | ($7,309) | ($8,520) |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) [Abstract] | ' | ' |
Unrealized gain (loss) on foreign currency exchange contracts, income tax benefit (provision) | ($69) | $274 |
Unrealized gain (loss) on available-for-sale securities, income tax benefit (provision) | ($61) | ($26) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($7,551) | ($8,059) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,307 | 1,326 |
Stock-based compensation | 202 | 1,751 |
Deferred income tax benefit | -1,484 | -3,724 |
Loss on disposition and impairment of property and equipment | 0 | 4 |
Excess tax shortfall from stock-based compensation | 15 | 351 |
Change in assets and liabilities: | ' | ' |
Accounts receivable and other assets | 478 | -500 |
Prepaid program costs and expenses | -7,592 | -9,197 |
Accounts payable, accrued expenses, and other current liabilities | -237 | 736 |
Participants' deposits | 34,227 | 37,443 |
Net cash provided by operating activities | 19,365 | 20,131 |
Cash flows from investing activities: | ' | ' |
Purchase of available-for-sale securities | -15,609 | -15,633 |
Proceeds from sale of available-for-sale securities | 120 | 189 |
Purchase of property and equipment | -678 | -606 |
Purchase of intangibles | -82 | -82 |
Net cash used in investing activities | -16,249 | -16,132 |
Cash flows from financing activities: | ' | ' |
Repurchase of Common Stock | 0 | -487 |
Dividend payment to shareholders | 0 | -1,017 |
Proceeds from exercise of stock options | 0 | 5 |
Excess tax shortfall from stock-based compensation | -15 | -351 |
Net cash used in financing activities | -15 | -1,850 |
Net increase in cash and cash equivalents | 3,101 | 2,149 |
Cash and cash equivalents, beginning of period | 9,473 | 6,150 |
Cash and cash equivalents, end of period | $12,574 | $8,299 |
The_Company
The Company | 3 Months Ended |
Mar. 31, 2014 | |
The Company [Abstract] | ' |
The Company | ' |
1. The Company | |
Ambassadors Group, Inc. (the "Company", "we", "us" or "our") is an educational company primarily engaged in organizing and promoting differentiated worldwide travel programs for students and professionals. In addition, we operate an education oriented research website, called BookRags.com, which provides study guides, lesson plans and other educational resources to students and teachers. These consolidated financial statements include the accounts of Ambassadors Group, Inc., and our wholly owned subsidiaries, Ambassador Programs, Inc., World Adventures Unlimited, Inc., Ambassadors Unlimited, LLC, AGI Hong Kong Limited, Beijing People to People Education Consultation Co., Ltd, Marketing Production Systems LLC, and BookRags, Inc. ("BookRags"). All significant intercompany accounts and transactions, which are of a normal recurring nature, are eliminated in consolidation. | |
Our operations are organized in two reporting segments, 1) "Ambassador Programs and Other," which provides educational travel services to students and professionals through multiple itineraries and corporate overhead, and 2) "BookRags," which provides online research capabilities through book summaries, critical essays, online study guides, lesson plans, biographies, and references to encyclopedia articles. |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
2. Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP"), have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being materially misleading. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2014 are not indicative of the results that may be expected for the year ending December 31, 2014. | |
It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2014 | |
Recent Accounting Pronouncements [Abstract] | ' |
Recent Accounting Pronouncements | ' |
3. Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-08 relating to the presentation of discontinued operations. ASU 2014-08 will be effective for all periods began after December 15, 2014. The restructuring plan initiated in the third quarter of 2013 does not qualify as discontinued operations under the original, nor the revised accounting standards. Additionally, the Company anticipates concluding all restructuring activities prior to the effective date of ASU 2014-08. |
Restructuring_Costs
Restructuring Costs | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Restructuring Costs [Abstract] | ' | ||||
Restructuring Costs | ' | ||||
4. Restructuring Costs | |||||
During the third quarter of 2013, we initiated a corporate restructuring plan aimed at streamlining our cost structure and focusing our business on core Student Ambassador Programs in order to promote the long-term health of the organization. This plan included the restructuring of operations and programs associated with Discovery Student Education ("Discovery Student Adventures") and terminating the operations associated with our Beijing office ("People to People – China"). The costs associated with this restructuring plan included contract termination fees associated with Discovery Student Adventures, asset impairments, and transition-related costs primarily comprised of charges for employee termination benefits, retention incentives during the transition period, and other operating costs incurred as part of the transition period. We anticipate all restructuring expenses to be recognized within six to twelve months of the initial implementation of the restructuring plan. All contract termination fees and transition-related expenses are classified on our consolidated statement of operations as restructuring costs. | |||||
During the three months ended March 31, 2014, we incurred approximately $0.1 million in additional restructuring costs primarily related to continued transition costs. The following table summarizes costs incurred as part of the restructuring plan and balance of the restructuring cost liability as of March 31, 2014 (in thousands): | |||||
Restructuring Costs | |||||
Contract termination fees | $ | 1,550 | |||
Separation payments | 130 | ||||
Equity compensation expenses | 63 | ||||
Other transition costs | 577 | ||||
Accumulated expense at March 31, 2014 | 2,320 | ||||
less: cash payments | 2,226 | ||||
less: non-cash expenses | 63 | ||||
Total restructuring liabilities at March 31, 2014 | $ | 31 |
Investments_and_Fair_Value_Mea
Investments and Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Investments and Fair Value Measurements [Abstract] | ' | ||||||||||||||||||||||||
Investments and Fair Value Measurements | ' | ||||||||||||||||||||||||
5. Investments and Fair Value Measurements | |||||||||||||||||||||||||
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, we consider the principal or most advantageous market, and we consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of non-performance. | |||||||||||||||||||||||||
Our financial instruments are measured and recorded at fair value. Our non-financial assets, including property and equipment, intangible assets and goodwill, are measured at fair value upon acquisition, reviewed at least annually for impairment, and are fully assessed if there is an indicator of impairment. An adjustment would be made to the fair value of non-financial assets if an impairment charge is recognized. | |||||||||||||||||||||||||
Fair value is determined for assets and liabilities using a three-tiered hierarchy, based upon significant levels of inputs as follows: | |||||||||||||||||||||||||
- | Level 1 – Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||
- | Level 2 – Observable inputs, other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. | ||||||||||||||||||||||||
- | Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | ||||||||||||||||||||||||
The following tables summarize the composition of our investments at March 31, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Classification on Balance Sheet | |||||||||||||||||||||||||
31-Mar-14 | Amortized Cost | Unrealized Gains (Losses) | Aggregate Fair Value | Cash and cash equivalents | Short-term available-for-sale securities | Long-term available-for-sale securities | |||||||||||||||||||
Auction rate securities ("ARS"), greater than one year | $ | 1,000 | $ | (277 | ) | $ | 723 | $ | - | $ | - | $ | 723 | ||||||||||||
Money market funds, ninety days or less | 627 | - | 627 | 627 | - | - | |||||||||||||||||||
Municipal securities1 | |||||||||||||||||||||||||
Short term municipal securities funds2 | 42,602 | (32 | ) | 42,570 | - | 42,570 | - | ||||||||||||||||||
One year or less | 976 | 3 | 979 | - | 979 | - | |||||||||||||||||||
After one year through three years | 3,919 | 23 | 3,942 | - | 3,942 | - | |||||||||||||||||||
Greater than three years | 4,424 | (81 | ) | 4,343 | - | 4,343 | - | ||||||||||||||||||
Total | $ | 53,548 | $ | (364 | ) | $ | 53,184 | $ | 627 | $ | 51,834 | $ | 723 | ||||||||||||
31-Dec-13 | Amortized Cost | Unrealized Gains (Losses) | Aggregate Fair Value | Cash and cash equivalents | Short-term available-for-sale securities | Long-term available-for-sale securities | |||||||||||||||||||
ARS, greater than one year | $ | 1,002 | $ | (283 | ) | $ | 719 | $ | - | $ | - | $ | 719 | ||||||||||||
Money market funds, ninety days or less | 488 | - | 488 | 488 | - | - | |||||||||||||||||||
Municipal securities1 | |||||||||||||||||||||||||
Short term municipal securities funds2 | 27,493 | (143 | ) | 27,350 | - | 27,350 | - | ||||||||||||||||||
One year or less | 952 | 3 | 955 | - | 955 | - | |||||||||||||||||||
After one year through three years | 3,132 | 20 | 3,152 | - | 3,152 | - | |||||||||||||||||||
Greater than three years | 4,854 | (137 | ) | 4,717 | - | 4,717 | - | ||||||||||||||||||
Total | $ | 37,921 | $ | (540 | ) | $ | 37,381 | $ | 488 | $ | 36,174 | $ | 719 | ||||||||||||
1Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
2Amounts include short-term municipal security funds that do not have a set maturity date. | |||||||||||||||||||||||||
The following tables detail the fair value measurements of assets and liabilities within the three levels of the fair value hierarchy at March 31, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
31-Mar-14 | Fair Market Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
ARS | $ | 723 | $ | - | $ | - | $ | 723 | |||||||||||||||||
Money market funds | 627 | 627 | - | - | |||||||||||||||||||||
Municipal securities1 | 51,834 | 43,070 | 8,764 | - | |||||||||||||||||||||
Foreign currency exchange contracts | 168 | - | 168 | - | |||||||||||||||||||||
Total financial assets | $ | 53,352 | $ | 43,697 | $ | 8,932 | $ | 723 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Foreign currency exchange contracts | 267 | - | 267 | - | |||||||||||||||||||||
Total financial liabilities | $ | 267 | $ | - | $ | 267 | $ | - | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
31-Dec-13 | Fair Market Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
ARS | $ | 719 | $ | - | $ | - | $ | 719 | |||||||||||||||||
Money market funds | 488 | 488 | - | - | |||||||||||||||||||||
Municipal securities1 | 36,174 | 27,350 | 8,824 | - | |||||||||||||||||||||
Foreign currency exchange contracts | 253 | - | 253 | - | |||||||||||||||||||||
Total financial assets | $ | 37,634 | $ | 27,838 | $ | 9,077 | $ | 719 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Foreign currency exchange contracts | 549 | - | 549 | - | |||||||||||||||||||||
Total financial liabilities | $ | 549 | $ | - | $ | 549 | $ | - | |||||||||||||||||
1 At March 31, 2014, municipal securities consisted of an 82/9/8/1 percent split between holdings in short-term municipal security funds, municipal revenue bonds, municipal general obligation bonds and certificates of deposit, respectively. At December 31, 2013, municipal securities consisted of a 76/13/11 split between holdings in short-term municipal security funds, municipal revenue bonds and municipal general obligation bonds, respectively. The underlying credit rating of the municipal securities at March 31, 2014 and December 31, 2013 were A+, A1 or better as defined by S&P 500 and Moody's, respectively. | |||||||||||||||||||||||||
Money market funds and municipal securities are classified as Level 1 assets because market prices are readily available for these investments. Level 2 financial assets and liabilities represent the fair value of our municipal bonds and foreign currency exchange contracts that were valued using pricing models that take into account the contract terms, as well as multiple inputs where applicable, such as equity prices, interest rates, volatility and currency rates. Level 3 financial assets represent the fair value of our one auction-rate security ("ARS"), which was valued using a pricing model that takes into account the average life of the underlying collateral, the rate of return, and the spread used for similar issuances. | |||||||||||||||||||||||||
The following table details the fair value measurements of assets measured on a non-recurring basis within the three levels of the fair value hierarchy at December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
31-Dec-13 | Fair Market Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||||||||||||||
Non-financial assets: | |||||||||||||||||||||||||
Property and equipment, net | $ | 11,000 | $ | - | $ | - | $ | 11,000 | |||||||||||||||||
Assets measured on a non-recurring basis were measured at fair value during the three months ended March 31, 2014. | |||||||||||||||||||||||||
Fair value measurements on a recurring basis using Level 3 inputs consist of one available-for-sale ARS. The following table presents a reconciliation for the three months ended March 31, 2014 and 2013, of available-for-sale ARS measured at fair value on a recurring basis using Level 3 inputs (in thousands): | |||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Beginning balance | $ | 719 | $ | 723 | |||||||||||||||||||||
Total realized / unrealized losses: | |||||||||||||||||||||||||
Included in OCI | 4 | 6 | |||||||||||||||||||||||
Ending balance | $ | 723 | $ | 729 | |||||||||||||||||||||
During the three months ended March 31, 2014, we experienced one failed ARS auction, representing principal of $1.0 million. This ARS continues to be classified as a long-term asset due to the high probability that the ARS may fail in future auctions. The next scheduled auction for this ARS is March 6, 2015. We have determined that there is no other-than-temporary impairment on this security, since we do not intend and are not required to sell this security before we have recovered the amortized cost basis, there has been no further deterioration of the credit rating of this investment, interest payments at coupon rate continue to be received, and we expect to recover the amortized cost basis of this security. We will continue to reassess liquidity in future reporting periods based on several factors, including the success or failure of future auctions, possible failure of the investment to be redeemed, deterioration of the credit rating of the investment, market risk, and other factors. | |||||||||||||||||||||||||
In determining the fair value of bond and ARS investments we consider the individual ratings of each holding. With regard to bonds, we consider the following: the underlying rating of the issuer irrespective of the insurance; the performance of the issuer; the term of the bond; and the quality of bond insurance provided by the rating of the bond insurer. With regard to valuation of our ARS, which is comprised of student loans, we consider the underlying credit quality of comparable student loan portfolios and the average life of the underlying student loan assets and apply a discount related to the illiquidity of our ARS due to past failed auctions. Based on these inputs, we have applied a discount of 327.5-basis points to the London interbank offered rate resulting in a valuation of $0.7 million from a costs basis of $1.0 million as of March 31, 2014. At the reporting dates and in the future, we recognize that this investment is subject to general credit, liquidity, market and interest rate risks. The fair value of this investment accordingly will continue to change and we will continue to evaluate its carrying value. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Derivative Financial Instruments [Abstract] | ' | ||||||||||||
Derivative Financial Instruments | ' | ||||||||||||
6. Derivative Financial Instruments | |||||||||||||
The majority of our travel programs take place outside of the United States, and most foreign suppliers require payment in currency other than the U.S. dollar. Accordingly, we are exposed to foreign currency risk relative to changes in foreign currency exchange rates between those currencies and the U.S. dollar for our non-directly delivered programs. We use forward contracts that allow us to acquire foreign currency at a fixed price for a specified point in time to provide a hedge against foreign currency risk. All of our derivatives are cash flow hedges and at March 31, 2014, all contracts qualified for cash flow hedge accounting. | |||||||||||||
For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income or loss and reclassified into earnings in the same period during which the hedged transaction is recognized in earnings; this is primarily during the second and third quarters of the year when our student travel programs occur. Gains or losses representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. | |||||||||||||
At March 31, 2014, the following forward contracts were outstanding (in thousands): | |||||||||||||
Notional Amount | Matures | ||||||||||||
Forward contracts: | |||||||||||||
Australian dollar | 6,725 | April 2014 - May 2015 | |||||||||||
Euro | 4,700 | April 2014 - June 2014 | |||||||||||
British pound | 700 | April 2014 - June 2014 | |||||||||||
Canadian dollar | 350 | April 2014 - June 2014 | |||||||||||
New Zealand dollar | 200 | May 2014 - June 2014 | |||||||||||
Japanese Yen | 54,000 | May-14 | |||||||||||
The fair value of our forward contracts were as follows (in thousands): | |||||||||||||
31-Mar-14 | |||||||||||||
Derivatives designated as hedging instruments | Total Net | ||||||||||||
Assets | Liabilities | Liabilities | |||||||||||
Forward contracts | $ | 168 | $ | 267 | $ | 99 | |||||||
31-Dec-13 | |||||||||||||
Derivatives designated as hedging instruments | Total Net | ||||||||||||
Assets | Liabilities | Liabilities | |||||||||||
Forward contracts | $ | 253 | $ | 549 | $ | 296 | |||||||
The net asset and liability derivatives at March 31, 2014 and December 31, 2013 are reported in the consolidated balance sheet as current and long-term foreign currency exchange contracts. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
7. Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||
Unrealized gains or losses related to derivative securities are recorded in accumulated other comprehensive income ("AOCI"). The change in unrealized gains or losses related to derivative securities are recorded in other comprehensive income net of income taxes in the period the change occurred. When derivative securities designated as cash flow hedges are used to pay vendors, the effective portion of the hedge is reclassified into the income statement and recorded in net revenue, non-directly delivered programs. | |||||||||||||||||
Unrealized gains or losses related to available-for-sale securities are recorded in AOCI. The change in unrealized gains or losses related to available-for-sale securities are recorded in other comprehensive income net of income taxes in the period the change occurred. When securities are sold and a realized gain or loss is recognized, the amount is reclassified from AOCI to the income statement and recorded in interest and dividend income. During the three months ended March 31, 2014 and 2013, there were no realized gains or losses recognized in the income statement for the sale of investments. | |||||||||||||||||
For the three months ended March 31, 2014 and 2013, a summary of AOCI balances and gains (losses) recognized in OCI are as follows (in thousands): | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||
Derivative Securities | Available-for-sale securities | ||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance, beginning of period | $ | (192 | ) | $ | 544 | $ | (357 | ) | $ | (180 | ) | ||||||
Change before reclassification | 196 | (783 | ) | 175 | 74 | ||||||||||||
Effect of incomes taxes | (69 | ) | 274 | (61 | ) | (26 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | 127 | (509 | ) | 114 | 48 | ||||||||||||
Balance, end of period | $ | (65 | ) | $ | 35 | $ | (243 | ) | $ | (132 | ) |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||
8. Stock-Based Compensation | |||||||||||||||||||
Under our Equity Participation Plan (the "Plan"), we may grant stock-based incentive compensation awards to eligible employees (including officers), non-employee directors and consultants in the form of distribution equivalent rights, incentive stock options, non-qualified stock options, performance share awards, performance unit awards, restricted stock awards, restricted stock units awards, stock appreciation rights, tandem stock appreciation rights, unrestricted stock awards or any combination of the foregoing, as may be best suited to the circumstances of the particular employee, director or consultant. As of March 31, 2014, we had 1,849,492 shares authorized under the Plan available for future stock-based compensation. | |||||||||||||||||||
Stock Options | |||||||||||||||||||
Under the terms of the Plan, options to purchase shares of our common stock are granted at a price set by the Compensation Committee of the Board of Directors (the "Compensation Committee"), not to be less than the par value of a share of common stock, and if granted as performance-based compensation or as incentive stock options, not to be less than the fair market value of the stock on the date of grant. The Compensation Committee establishes the vesting period of the awards, which is generally set at 25 percent per year for four years. Options may be exercised any time after they vest for a period up to 10 years from the grant date. | |||||||||||||||||||
The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model was developed for use in estimating the fair value of options. Option valuation models require the input of highly subjective assumptions, particularly for the expected term and stock price volatility. The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and our experience. Our employee stock options do not trade on a secondary exchange; therefore, employees do not derive a benefit from holding stock options unless there is an appreciation in the market price of our stock above the grant price. Such an increase in stock price would benefit all shareholders commensurately. | |||||||||||||||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used for grants in the three months ended March 31, 2013. We did not grant stock options during the three months ended March 31, 2014. | |||||||||||||||||||
Three months ended March 31, 2013 | |||||||||||||||||||
Expected dividend yield | 4.68 | % | |||||||||||||||||
Expected stock price volatility | 59.43 | % | |||||||||||||||||
Risk-free interest rate | 2.02 | % | |||||||||||||||||
Expected life of options | 4.64 Years | ||||||||||||||||||
Estimated fair value per option granted | $ | 1.68 | |||||||||||||||||
The dividend yield is based on expected quarterly cash dividends paid to our shareholders. Expected stock price volatility is based on historical volatility of our stock. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent remaining term. The expected term of the options represents the estimated period of time until exercise and is based on historical experience of similar awards, giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. Additionally, an annualized forfeiture rate of 14.2 percent is used as a best estimate of future forfeitures based on our historical forfeiture experience. Stock-based compensation expense will be adjusted in later periods if the actual forfeiture rate is different from the estimate. | |||||||||||||||||||
A summary of option activity under the Plan as of March 31, 2014, and the changes during the three months then ended is presented below: | |||||||||||||||||||
Stock Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life (years) | |||||||||||||||||
Outstanding at December 31, 2013 | 907,945 | $ | 6.54 | ||||||||||||||||
Granted | - | - | |||||||||||||||||
Forfeited / Expired | (34,252 | ) | 8.47 | ||||||||||||||||
Exercised | - | - | |||||||||||||||||
Outstanding at March 31, 2014 | 873,693 | $ | - | 7.85 | |||||||||||||||
Exercisable at March 31, 2014 | 319,837 | $ | 9.41 | 6.34 | |||||||||||||||
During the three months ended March 31, 2014 and 2013, the total intrinsic value of stock options exercised was zero and the total fair value of options which vested was zero. The aggregate intrinsic value of outstanding and exercisable stock options was zero, based on our $3.96 closing stock price at March 31, 2014. Compensation expense recognized in the consolidated statement of operations for stock options was $0.1 million and $0.8 million for the three months ended March 31, 2014 and 2013, respectively, before the effect of income taxes. As of March 31, 2014, total unrecognized stock-based compensation expense related to non-vested stock options was approximately $0.7 million, which is expected to be recognized over approximately 3.9 years. | |||||||||||||||||||
Restricted Stock Grants | |||||||||||||||||||
Under the terms of the Plan, restricted stock awards and restricted stock units are granted by the Compensation Committee on the same terms as options. The Compensation Committee also establishes the vesting period of the awards, which is generally set at 100 percent at the conclusion of one to four years for restricted stock awards. Restricted stock units generally vest pro rata at 25 percent each year over a four year vesting period. Our key employees who have been awarded stock are typically subject to a four year vesting periods, while members of our Board of Directors who have been awarded restricted stock are subject to a one year vesting period. The fair value of restricted stock awards and restricted stock units are based on the market price of our shares on the grant date. | |||||||||||||||||||
A summary of the activity of non-vested restricted stock awards and restricted stock units under the Plan as of March 31, 2014, and the changes during the three months then ended is presented below: | |||||||||||||||||||
Restricted Stock Awards | Restricted Stock Units | ||||||||||||||||||
Restricted Stock Awards | Weighted-Average Grant Date Fair Value | Weighted-Average Remaining Contractual Life (years) | Restricted Stock Units | Weighted-Average Grant Date Fair Value | Weighted-Average Remaining Contractual Life (years) | ||||||||||||||
Balance at December 31, 2013 | 285,435 | $ | 5.24 | 28,123 | $ | 3.88 | |||||||||||||
Granted | - | - | 15,523 | 4.51 | |||||||||||||||
Forfeited | (1,141 | ) | 9.2 | (291 | ) | 3.5 | |||||||||||||
Vested | (661 | ) | 11.34 | - | - | ||||||||||||||
Balance at March 31, 2014 | 283,633 | $ | 5.21 | 2.19 | 43,355 | $ | 4.11 | 2.14 | |||||||||||
At March 31, 2014, the aggregate value of non-vested restricted stock awards and restricted stock units was $1.1 million and $0.2 million, respectively, before applicable income taxes, based on a $3.96 closing stock price at March 31, 2014. During the three months ended March 31, 2014 and 2013, the weighted-average grant date fair value of restricted stock awards which vested was $7 thousand and $1.9 million, respectively. Compensation expense recognized in the consolidated statement of operations for restricted stock awards was $0.1 million and $0.9 million for the three months ended March 31, 2014 and 2013, respectively, before the effect of income taxes. Compensation expense recognized in the consolidated statement of operations for restricted stock units was $9 thousand for the three months ended March 31, 2014, before the effect of income taxes. As of March 31, 2014, total unrecognized stock-based compensation expense related to restricted stock awards and restricted stock units was approximately $0.7 million and $0.2 million, respectively, which is expected to be recognized over approximately 3.9 years. | |||||||||||||||||||
Performance Stock Awards | |||||||||||||||||||
Under the terms of the Plan, performance stock awards are granted by the Compensation Committee to key executive employees. Performance stock awards are based on achieving key internal metrics measured at the end of each fiscal year over a three year performance period. If performance objectives are achieved as determined by the Compensation Committee, common stock is granted. The fair value of these awards is determined on the date of grant based on our share price. A forfeiture rate of 14.0 percent is used as a best estimate of future forfeitures. Compensation expense related to performance stock units is evaluated quarterly to determine the likelihood that performance metrics will be achieved during the performance period. | |||||||||||||||||||
A summary of the activity of performance stock units under the Plan as of March 31, 2014, and the changes during the three months then ended is presented below: | |||||||||||||||||||
Performance Stock Units | Weighted-Average Grant Date Fair Value | Weighted-Average Remaining Contractual Life (years) | |||||||||||||||||
Balance at December 31, 2013 | 114,560 | $ | 4.41 | ||||||||||||||||
Granted | - | - | |||||||||||||||||
Forfeited | - | - | |||||||||||||||||
Vested | - | - | |||||||||||||||||
Balance at March 31, 2014 | 114,560 | $ | 4.41 | 2.76 | |||||||||||||||
During the three months ended March 31, 2014, no performance stock units were granted. Performance stock units outstanding on March 31, 2014 are payable upon the achievement of certain internal metrics over a performance period of January 1, 2014 through December 31, 2016. As of March 31, 2014, there was $0.3 million of unrecognized compensation expense related to performance share unit awards, which will be recognized over a weighted average period of time as internal metrics are anticipated to be achieved. |
Net_Loss_and_Loss_per_Share
Net Loss and Loss per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Net Loss and Loss per Share [Abstract] | ' | ||||||||
Net Loss and Loss per Share | ' | ||||||||
9. Net Loss and Loss per Share | |||||||||
The following table presents a reconciliation of basic and diluted loss per share computations (in thousands, except per share data and anti-dilutive stock option counts): | |||||||||
Three months ended March 31, | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net loss | $ | (7,551 | ) | $ | (8,059 | ) | |||
Denominator: | |||||||||
Weighted-average shares outstanding | 16,755 | 17,001 | |||||||
Effect of unvested restricted stock awards considered participating securities | - | - | |||||||
Weighted-average shares outstanding – basic | 16,755 | 17,001 | |||||||
Effect of dilutive common stock options | - | - | |||||||
Weighted-average shares outstanding – diluted | 16,755 | 17,001 | |||||||
Net loss per share - basic | $ | (0.45 | ) | $ | (0.47 | ) | |||
Net loss per share - diluted | $ | (0.45 | ) | $ | (0.47 | ) | |||
Cash dividends declared per share1 | $ | - | $ | 0.06 | |||||
Stock options and restricted stock units excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive | 822,928 | 1,323,000 | |||||||
1The Company suspended quarterly dividend payments during the second quarter of 2013. |
Segment_Reporting
Segment Reporting | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Segment Reporting | ' | ||||||||||||||||||||||||
10. Segment Reporting | |||||||||||||||||||||||||
Ambassador Programs and Other's gross margin is comprised of gross receipts less direct program costs, including accommodations, transportation, speakers, facilitators, and event costs. BookRags' gross margin is comprised of content and subscription and advertising revenues via www.BookRags.com, less affiliate commissions and amortization of intangible assets directly associated with sales. | |||||||||||||||||||||||||
Segment information for the three months ended March 31, 2014 and 2013 were as follows (in thousands): | |||||||||||||||||||||||||
Three months ended March 31, 2014 | Three months ended March 31, 2013 | ||||||||||||||||||||||||
Ambassador Programs and Other1 | Ambassador Programs and Other1 | ||||||||||||||||||||||||
BookRags | Consolidated | BookRags | Consolidated | ||||||||||||||||||||||
Total revenue | $ | 389 | $ | 1,008 | $ | 1,397 | $ | 1,894 | $ | 999 | $ | 2,893 | |||||||||||||
Gross margin | $ | 180 | $ | 876 | $ | 1,056 | $ | 522 | $ | 870 | $ | 1,392 | |||||||||||||
Depreciation and amortization | $ | 1,134 | $ | 173 | $ | 1,307 | $ | 1,164 | $ | 162 | $ | 1,326 | |||||||||||||
Operating income (loss) | $ | (9,521 | ) | $ | 336 | $ | (9,185 | ) | $ | (13,125 | ) | $ | 332 | $ | (12,793 | ) | |||||||||
Income tax benefit (provision) | $ | 1,556 | $ | (56 | ) | $ | 1,500 | $ | 4,707 | $ | (120 | ) | $ | 4,587 | |||||||||||
Net income (loss) | $ | (7,831 | ) | $ | 280 | $ | (7,551 | ) | $ | (8,271 | ) | $ | 212 | $ | (8,059 | ) | |||||||||
Total additions to property and equipment, net | $ | 536 | $ | 142 | $ | 678 | $ | 809 | $ | 92 | $ | 901 | |||||||||||||
Total additions to intangibles | $ | - | $ | 82 | $ | 82 | $ | - | $ | 82 | $ | 82 | |||||||||||||
Intangibles | $ | - | $ | 3,502 | $ | 3,502 | $ | - | $ | 3,553 | $ | 3,553 | |||||||||||||
Total assets | $ | 98,929 | $ | 15,884 | $ | 114,813 | $ | 111,054 | $ | 13,740 | $ | 124,794 | |||||||||||||
1Ambassador Programs and Other include all travel programs as well as corporate overhead. | |||||||||||||||||||||||||
Any intercompany sales or services provided are eliminated upon consolidation. |
Supplemental_Disclosures_of_Co
Supplemental Disclosures of Consolidated Statements of Cash Flows | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Supplemental Disclosures of Consolidated Statements of Cash Flows [Abstract] | ' | ||||||||
Supplemental Disclosures of Consolidated Statements of Cash Flows | ' | ||||||||
11. Supplemental Disclosures of Consolidated Statements of Cash Flows | |||||||||
Our non-cash investing and financing activities during the three months ended March 31, 2014 and 2013 were as follows (in thousands): | |||||||||
31-Mar-14 | 31-Mar-13 | ||||||||
Unrealized income (loss) on foreign currency exchange contracts | $ | 197 | $ | (782 | ) | ||||
Unrealized gain on available-for-sale securities | $ | 175 | $ | 74 | |||||
Property and equipment | $ | - | $ | (30 | ) |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
12. Commitments and Contingencies | |
We are not a party to any material pending legal proceedings other than ordinary routine litigation incidental to our business, the outcome of which we believe will not have a material adverse effect on our business, financial condition, cash flows or results of operations. | |
We are subject to the possibility of various loss contingencies, including claims, suits and complaints, arising in the ordinary course of business. We consider the likelihood of loss or impairment of an asset or the incurrence of a liability, as well as our ability to reasonably estimate the amount of loss, in determining loss contingencies. An estimated loss contingency is accrued when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. We regularly evaluate current information available to us to determine whether such accruals should be adjusted and whether new accruals are required. | |
Under our Bylaws, our directors and officers have certain rights to indemnification by us against certain liabilities that may arise by reason of their status or service as directors or officers. We maintain director and officer insurance, which covers certain liabilities arising from our obligation to indemnify our directors and officers and former directors in certain circumstances. No material indemnification liabilities were accrued at March 31, 2014. |
Restructuring_Costs_Tables
Restructuring Costs (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Restructuring Costs [Abstract] | ' | ||||
Summary of changes in restructuring cost liability | ' | ||||
The following table summarizes costs incurred as part of the restructuring plan and balance of the restructuring cost liability as of March 31, 2014 (in thousands): | |||||
Restructuring Costs | |||||
Contract termination fees | $ | 1,550 | |||
Separation payments | 130 | ||||
Equity compensation expenses | 63 | ||||
Other transition costs | 577 | ||||
Accumulated expense at March 31, 2014 | 2,320 | ||||
less: cash payments | 2,226 | ||||
less: non-cash expenses | 63 | ||||
Total restructuring liabilities at March 31, 2014 | $ | 31 |
Investments_and_Fair_Value_Mea1
Investments and Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Investments and Fair Value Measurements [Abstract] | ' | ||||||||||||||||||||||||
Fair value of investments | ' | ||||||||||||||||||||||||
The following tables summarize the composition of our investments at March 31, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Classification on Balance Sheet | |||||||||||||||||||||||||
31-Mar-14 | Amortized Cost | Unrealized Gains (Losses) | Aggregate Fair Value | Cash and cash equivalents | Short-term available-for-sale securities | Long-term available-for-sale securities | |||||||||||||||||||
Auction rate securities ("ARS"), greater than one year | $ | 1,000 | $ | (277 | ) | $ | 723 | $ | - | $ | - | $ | 723 | ||||||||||||
Money market funds, ninety days or less | 627 | - | 627 | 627 | - | - | |||||||||||||||||||
Municipal securities1 | |||||||||||||||||||||||||
Short term municipal securities funds2 | 42,602 | (32 | ) | 42,570 | - | 42,570 | - | ||||||||||||||||||
One year or less | 976 | 3 | 979 | - | 979 | - | |||||||||||||||||||
After one year through three years | 3,919 | 23 | 3,942 | - | 3,942 | - | |||||||||||||||||||
Greater than three years | 4,424 | (81 | ) | 4,343 | - | 4,343 | - | ||||||||||||||||||
Total | $ | 53,548 | $ | (364 | ) | $ | 53,184 | $ | 627 | $ | 51,834 | $ | 723 | ||||||||||||
31-Dec-13 | Amortized Cost | Unrealized Gains (Losses) | Aggregate Fair Value | Cash and cash equivalents | Short-term available-for-sale securities | Long-term available-for-sale securities | |||||||||||||||||||
ARS, greater than one year | $ | 1,002 | $ | (283 | ) | $ | 719 | $ | - | $ | - | $ | 719 | ||||||||||||
Money market funds, ninety days or less | 488 | - | 488 | 488 | - | - | |||||||||||||||||||
Municipal securities1 | |||||||||||||||||||||||||
Short term municipal securities funds2 | 27,493 | (143 | ) | 27,350 | - | 27,350 | - | ||||||||||||||||||
One year or less | 952 | 3 | 955 | - | 955 | - | |||||||||||||||||||
After one year through three years | 3,132 | 20 | 3,152 | - | 3,152 | - | |||||||||||||||||||
Greater than three years | 4,854 | (137 | ) | 4,717 | - | 4,717 | - | ||||||||||||||||||
Total | $ | 37,921 | $ | (540 | ) | $ | 37,381 | $ | 488 | $ | 36,174 | $ | 719 | ||||||||||||
1Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
2Amounts include short-term municipal security funds that do not have a set maturity date. | |||||||||||||||||||||||||
Fair value by balance sheet grouping | ' | ||||||||||||||||||||||||
The following tables detail the fair value measurements of assets and liabilities within the three levels of the fair value hierarchy at March 31, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
31-Mar-14 | Fair Market Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
ARS | $ | 723 | $ | - | $ | - | $ | 723 | |||||||||||||||||
Money market funds | 627 | 627 | - | - | |||||||||||||||||||||
Municipal securities1 | 51,834 | 43,070 | 8,764 | - | |||||||||||||||||||||
Foreign currency exchange contracts | 168 | - | 168 | - | |||||||||||||||||||||
Total financial assets | $ | 53,352 | $ | 43,697 | $ | 8,932 | $ | 723 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Foreign currency exchange contracts | 267 | - | 267 | - | |||||||||||||||||||||
Total financial liabilities | $ | 267 | $ | - | $ | 267 | $ | - | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
31-Dec-13 | Fair Market Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
ARS | $ | 719 | $ | - | $ | - | $ | 719 | |||||||||||||||||
Money market funds | 488 | 488 | - | - | |||||||||||||||||||||
Municipal securities1 | 36,174 | 27,350 | 8,824 | - | |||||||||||||||||||||
Foreign currency exchange contracts | 253 | - | 253 | - | |||||||||||||||||||||
Total financial assets | $ | 37,634 | $ | 27,838 | $ | 9,077 | $ | 719 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Foreign currency exchange contracts | 549 | - | 549 | - | |||||||||||||||||||||
Total financial liabilities | $ | 549 | $ | - | $ | 549 | $ | - | |||||||||||||||||
1 At March 31, 2014, municipal securities consisted of an 82/9/8/1 percent split between holdings in short-term municipal security funds, municipal revenue bonds, municipal general obligation bonds and certificates of deposit, respectively. At December 31, 2013, municipal securities consisted of a 76/13/11 split between holdings in short-term municipal security funds, municipal revenue bonds and municipal general obligation bonds, respectively. The underlying credit rating of the municipal securities at March 31, 2014 and December 31, 2013 were A+, A1 or better as defined by S&P 500 and Moody's, respectively. | |||||||||||||||||||||||||
Fair value measurements of assets measured on non-recurring basis | ' | ||||||||||||||||||||||||
The following table details the fair value measurements of assets measured on a non-recurring basis within the three levels of the fair value hierarchy at December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
31-Dec-13 | Fair Market Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||||||||||||||
Non-financial assets: | |||||||||||||||||||||||||
Property and equipment, net | $ | 11,000 | $ | - | $ | - | $ | 11,000 | |||||||||||||||||
Fair value of Level 3 assets measured on a recurring basis | ' | ||||||||||||||||||||||||
The following table presents a reconciliation for the three months ended March 31, 2014 and 2013, of available-for-sale ARS measured at fair value on a recurring basis using Level 3 inputs (in thousands): | |||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Beginning balance | $ | 719 | $ | 723 | |||||||||||||||||||||
Total realized / unrealized losses: | |||||||||||||||||||||||||
Included in OCI | 4 | 6 | |||||||||||||||||||||||
Ending balance | $ | 723 | $ | 729 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Derivative Financial Instruments [Abstract] | ' | ||||||||||||
Foreign currency contracts, by maturity | ' | ||||||||||||
At March 31, 2014, the following forward contracts were outstanding (in thousands): | |||||||||||||
Notional Amount | Matures | ||||||||||||
Forward contracts: | |||||||||||||
Australian dollar | 6,725 | April 2014 - May 2015 | |||||||||||
Euro | 4,700 | April 2014 - June 2014 | |||||||||||
British pound | 700 | April 2014 - June 2014 | |||||||||||
Canadian dollar | 350 | April 2014 - June 2014 | |||||||||||
New Zealand dollar | 200 | May 2014 - June 2014 | |||||||||||
Japanese Yen | 54,000 | May-14 | |||||||||||
Forward contracts, by hedging designation | ' | ||||||||||||
The fair value of our forward contracts were as follows (in thousands): | |||||||||||||
31-Mar-14 | |||||||||||||
Derivatives designated as hedging instruments | Total Net | ||||||||||||
Assets | Liabilities | Liabilities | |||||||||||
Forward contracts | $ | 168 | $ | 267 | $ | 99 | |||||||
31-Dec-13 | |||||||||||||
Derivatives designated as hedging instruments | Total Net | ||||||||||||
Assets | Liabilities | Liabilities | |||||||||||
Forward contracts | $ | 253 | $ | 549 | $ | 296 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | ||||||||||||||||
Summary of AOCI balances and gains (losses) recognized in OCI | ' | ||||||||||||||||
For the three months ended March 31, 2014 and 2013, a summary of AOCI balances and gains (losses) recognized in OCI are as follows (in thousands): | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||
Derivative Securities | Available-for-sale securities | ||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance, beginning of period | $ | (192 | ) | $ | 544 | $ | (357 | ) | $ | (180 | ) | ||||||
Change before reclassification | 196 | (783 | ) | 175 | 74 | ||||||||||||
Effect of incomes taxes | (69 | ) | 274 | (61 | ) | (26 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | 127 | (509 | ) | 114 | 48 | ||||||||||||
Balance, end of period | $ | (65 | ) | $ | 35 | $ | (243 | ) | $ | (132 | ) |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||||||||||||
Valuation assumptions | ' | ||||||||||||||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used for grants in the three months ended March 31, 2013. We did not grant stock options during the three months ended March 31, 2014. | |||||||||||||||||||
Three months ended March 31, 2013 | |||||||||||||||||||
Expected dividend yield | 4.68 | % | |||||||||||||||||
Expected stock price volatility | 59.43 | % | |||||||||||||||||
Risk-free interest rate | 2.02 | % | |||||||||||||||||
Expected life of options | 4.64 Years | ||||||||||||||||||
Estimated fair value per option granted | $ | 1.68 | |||||||||||||||||
Summary of stock option activity | ' | ||||||||||||||||||
A summary of option activity under the Plan as of March 31, 2014, and the changes during the three months then ended is presented below: | |||||||||||||||||||
Stock Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life (years) | |||||||||||||||||
Outstanding at December 31, 2013 | 907,945 | $ | 6.54 | ||||||||||||||||
Granted | - | - | |||||||||||||||||
Forfeited / Expired | (34,252 | ) | 8.47 | ||||||||||||||||
Exercised | - | - | |||||||||||||||||
Outstanding at March 31, 2014 | 873,693 | $ | - | 7.85 | |||||||||||||||
Exercisable at March 31, 2014 | 319,837 | $ | 9.41 | 6.34 | |||||||||||||||
Summary of activity of non-vested restricted stock awards and restricted stock units | ' | ||||||||||||||||||
A summary of the activity of non-vested restricted stock awards and restricted stock units under the Plan as of March 31, 2014, and the changes during the three months then ended is presented below: | |||||||||||||||||||
Restricted Stock Awards | Restricted Stock Units | ||||||||||||||||||
Restricted Stock Awards | Weighted-Average Grant Date Fair Value | Weighted-Average Remaining Contractual Life (years) | Restricted Stock Units | Weighted-Average Grant Date Fair Value | Weighted-Average Remaining Contractual Life (years) | ||||||||||||||
Balance at December 31, 2013 | 285,435 | $ | 5.24 | 28,123 | $ | 3.88 | |||||||||||||
Granted | - | - | 15,523 | 4.51 | |||||||||||||||
Forfeited | (1,141 | ) | 9.2 | (291 | ) | 3.5 | |||||||||||||
Vested | (661 | ) | 11.34 | - | - | ||||||||||||||
Balance at March 31, 2014 | 283,633 | $ | 5.21 | 2.19 | 43,355 | $ | 4.11 | 2.14 | |||||||||||
Summary of activity of performance stock units under the Plan | ' | ||||||||||||||||||
A summary of the activity of performance stock units under the Plan as of March 31, 2014, and the changes during the three months then ended is presented below: | |||||||||||||||||||
Performance Stock Units | Weighted-Average Grant Date Fair Value | Weighted-Average Remaining Contractual Life (years) | |||||||||||||||||
Balance at December 31, 2013 | 114,560 | $ | 4.41 | ||||||||||||||||
Granted | - | - | |||||||||||||||||
Forfeited | - | - | |||||||||||||||||
Vested | - | - | |||||||||||||||||
Balance at March 31, 2014 | 114,560 | $ | 4.41 | 2.76 |
Net_Loss_and_Loss_per_Share_Ta
Net Loss and Loss per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Net Loss and Loss per Share [Abstract] | ' | ||||||||
Reconciliation of basic and diluted income per share computations | ' | ||||||||
The following table presents a reconciliation of basic and diluted loss per share computations (in thousands, except per share data and anti-dilutive stock option counts): | |||||||||
Three months ended March 31, | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net loss | $ | (7,551 | ) | $ | (8,059 | ) | |||
Denominator: | |||||||||
Weighted-average shares outstanding | 16,755 | 17,001 | |||||||
Effect of unvested restricted stock awards considered participating securities | - | - | |||||||
Weighted-average shares outstanding – basic | 16,755 | 17,001 | |||||||
Effect of dilutive common stock options | - | - | |||||||
Weighted-average shares outstanding – diluted | 16,755 | 17,001 | |||||||
Net loss per share - basic | $ | (0.45 | ) | $ | (0.47 | ) | |||
Net loss per share - diluted | $ | (0.45 | ) | $ | (0.47 | ) | |||
Cash dividends declared per share1 | $ | - | $ | 0.06 | |||||
Stock options and restricted stock units excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive | 822,928 | 1,323,000 | |||||||
1The Company suspended quarterly dividend payments during the second quarter of 2013. |
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Financial information by reporting segment | ' | ||||||||||||||||||||||||
Segment information for the three months ended March 31, 2014 and 2013 were as follows (in thousands): | |||||||||||||||||||||||||
Three months ended March 31, 2014 | Three months ended March 31, 2013 | ||||||||||||||||||||||||
Ambassador Programs and Other1 | Ambassador Programs and Other1 | ||||||||||||||||||||||||
BookRags | Consolidated | BookRags | Consolidated | ||||||||||||||||||||||
Total revenue | $ | 389 | $ | 1,008 | $ | 1,397 | $ | 1,894 | $ | 999 | $ | 2,893 | |||||||||||||
Gross margin | $ | 180 | $ | 876 | $ | 1,056 | $ | 522 | $ | 870 | $ | 1,392 | |||||||||||||
Depreciation and amortization | $ | 1,134 | $ | 173 | $ | 1,307 | $ | 1,164 | $ | 162 | $ | 1,326 | |||||||||||||
Operating income (loss) | $ | (9,521 | ) | $ | 336 | $ | (9,185 | ) | $ | (13,125 | ) | $ | 332 | $ | (12,793 | ) | |||||||||
Income tax benefit (provision) | $ | 1,556 | $ | (56 | ) | $ | 1,500 | $ | 4,707 | $ | (120 | ) | $ | 4,587 | |||||||||||
Net income (loss) | $ | (7,831 | ) | $ | 280 | $ | (7,551 | ) | $ | (8,271 | ) | $ | 212 | $ | (8,059 | ) | |||||||||
Total additions to property and equipment, net | $ | 536 | $ | 142 | $ | 678 | $ | 809 | $ | 92 | $ | 901 | |||||||||||||
Total additions to intangibles | $ | - | $ | 82 | $ | 82 | $ | - | $ | 82 | $ | 82 | |||||||||||||
Intangibles | $ | - | $ | 3,502 | $ | 3,502 | $ | - | $ | 3,553 | $ | 3,553 | |||||||||||||
Total assets | $ | 98,929 | $ | 15,884 | $ | 114,813 | $ | 111,054 | $ | 13,740 | $ | 124,794 | |||||||||||||
1Ambassador Programs and Other include all travel programs as well as corporate overhead. |
Supplemental_Disclosures_of_Co1
Supplemental Disclosures of Consolidated Statements of Cash Flows (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Supplemental Disclosures of Consolidated Statements of Cash Flows [Abstract] | ' | ||||||||
Non-cash investing and financing activities | ' | ||||||||
Our non-cash investing and financing activities during the three months ended March 31, 2014 and 2013 were as follows (in thousands): | |||||||||
31-Mar-14 | 31-Mar-13 | ||||||||
Unrealized income (loss) on foreign currency exchange contracts | $ | 197 | $ | (782 | ) | ||||
Unrealized gain on available-for-sale securities | $ | 175 | $ | 74 | |||||
Property and equipment | $ | - | $ | (30 | ) |
The_Company_Details
The Company (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Segment | |
The Company [Abstract] | ' |
Number of reporting segments | 2 |
Restructuring_Costs_Details
Restructuring Costs (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 |
Restructuring cost liability [Roll Forward] | ' | ' | ' |
Restructuring costs | $108 | $0 | $2,320 |
less: cash payments | ' | ' | 2,226 |
less: non-cash expenses | ' | ' | 63 |
Total restructuring liabilities at March 31, 2014 | 31 | ' | 31 |
Minimum [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Period in which restructuring costs will be recognized | '6 months | ' | ' |
Maximum [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Period in which restructuring costs will be recognized | '12 months | ' | ' |
Contract Termination Fees [Member] | ' | ' | ' |
Restructuring cost liability [Roll Forward] | ' | ' | ' |
Restructuring costs | ' | ' | 1,550 |
Separation payments [Member] | ' | ' | ' |
Restructuring cost liability [Roll Forward] | ' | ' | ' |
Restructuring costs | ' | ' | 130 |
Equity compensation expense [Member] | ' | ' | ' |
Restructuring cost liability [Roll Forward] | ' | ' | ' |
Restructuring costs | ' | ' | 63 |
Other transition costs [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Additional restructuring cost incurred | 108 | ' | ' |
Restructuring cost liability [Roll Forward] | ' | ' | ' |
Restructuring costs | ' | ' | $577 |
Investments_and_Fair_Value_Mea2
Investments and Fair Value Measurements (Details) (USD $) | 3 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |||
Investment | |||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Amortized Cost | $53,548,000 | ' | $37,921,000 | ||
Unrealized Gains (Losses) | -364,000 | ' | -540,000 | ||
Aggregate Fair Value | 53,184,000 | ' | 37,381,000 | ||
Cash and cash equivalents | 627,000 | ' | 488,000 | ||
Short-term available-for-sale securities | 51,834,000 | ' | 36,174,000 | ||
Long-term available-for-sale securities | 723,000 | ' | 719,000 | ||
Financial assets [Abstract] | ' | ' | ' | ||
ARS | 723,000 | ' | 719,000 | ||
Money market funds | 627,000 | ' | 488,000 | ||
Municipal securities | 51,834,000 | [1] | ' | 36,174,000 | [1] |
Foreign currency exchange contracts | 168,000 | ' | 253,000 | ||
Total financial assets | 53,352,000 | ' | 37,634,000 | ||
Financial liabilities [Abstract] | ' | ' | ' | ||
Foreign currency exchange contracts | 267,000 | ' | 549,000 | ||
Total financial liabilities | 267,000 | ' | 549,000 | ||
Non-financial assets [Abstract] | ' | ' | ' | ||
Property and equipment, net | ' | ' | 11,000,000 | ||
Short-term municipal security funds as a percentage of municipal securities (in hundredths) | 82.00% | ' | 76.00% | ||
Municipal revenue bonds as a percentage of municipal securities (in hundredths) | 9.00% | ' | 13.00% | ||
Municipal general obligation bonds as a percentage of municipal securities (in hundredths) | 8.00% | ' | 11.00% | ||
Certificates of deposit as a percentage of municipal securities (in hundredths) | 1.00% | ' | ' | ||
Reconciliation of available-for-sale ARS measured at fair value on a recurring basis using Level 3 inputs [Roll Forward] | ' | ' | ' | ||
Beginning balance | 719,000 | 723,000 | ' | ||
Total realized / unrealized losses [Abstract] | ' | ' | ' | ||
Included in OCI | 4,000 | 6,000 | ' | ||
Ending balance | 723,000 | 729,000 | ' | ||
Number of investments that failed at auction | 1 | ' | ' | ||
Principal amount of failed ARS auction | 1,000,000 | ' | ' | ||
Basis points (in hundredths) | 3.28% | ' | ' | ||
Valuation of Ars after discount has been applied | 700,000 | ' | ' | ||
Cost basis | 1,000,000 | ' | ' | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' | ||
Financial assets [Abstract] | ' | ' | ' | ||
ARS | 0 | ' | 0 | ||
Money market funds | 627,000 | ' | 488,000 | ||
Municipal securities | 43,070,000 | [1] | ' | 27,350,000 | [1] |
Foreign currency exchange contracts | 0 | ' | 0 | ||
Total financial assets | 43,697,000 | ' | 27,838,000 | ||
Financial liabilities [Abstract] | ' | ' | ' | ||
Foreign currency exchange contracts | 0 | ' | 0 | ||
Total financial liabilities | 0 | ' | 0 | ||
Non-financial assets [Abstract] | ' | ' | ' | ||
Property and equipment, net | ' | ' | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ||
Financial assets [Abstract] | ' | ' | ' | ||
ARS | 0 | ' | 0 | ||
Money market funds | 0 | ' | 0 | ||
Municipal securities | 8,764,000 | [1] | ' | 8,824,000 | [1] |
Foreign currency exchange contracts | 168,000 | ' | 253,000 | ||
Total financial assets | 8,932,000 | ' | 9,077,000 | ||
Financial liabilities [Abstract] | ' | ' | ' | ||
Foreign currency exchange contracts | 267,000 | ' | 549,000 | ||
Total financial liabilities | 267,000 | ' | 549,000 | ||
Non-financial assets [Abstract] | ' | ' | ' | ||
Property and equipment, net | ' | ' | 0 | ||
Significant Other Unobservable Inputs (Level 3) [Member] | ' | ' | ' | ||
Financial assets [Abstract] | ' | ' | ' | ||
ARS | 723,000 | ' | 719,000 | ||
Money market funds | 0 | ' | 0 | ||
Municipal securities | 0 | [1] | ' | 0 | [1] |
Foreign currency exchange contracts | 0 | ' | 0 | ||
Total financial assets | 723,000 | ' | 719,000 | ||
Financial liabilities [Abstract] | ' | ' | ' | ||
Foreign currency exchange contracts | 0 | ' | 0 | ||
Total financial liabilities | 0 | ' | 0 | ||
Non-financial assets [Abstract] | ' | ' | ' | ||
Property and equipment, net | ' | ' | 11,000,000 | ||
Auction Rate Securities ("ARS"), Greater Than One Year [Member] | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Amortized Cost | 1,000,000 | ' | 1,002,000 | ||
Unrealized Gains (Losses) | -277,000 | ' | -283,000 | ||
Aggregate Fair Value | 723,000 | ' | 719,000 | ||
Cash and cash equivalents | 0 | ' | 0 | ||
Short-term available-for-sale securities | 0 | ' | 0 | ||
Long-term available-for-sale securities | 723,000 | ' | 719,000 | ||
Money Market Funds, Ninety Days or Less [Member] | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Amortized Cost | 627,000 | ' | 488,000 | ||
Unrealized Gains (Losses) | 0 | ' | 0 | ||
Aggregate Fair Value | 627,000 | ' | 488,000 | ||
Cash and cash equivalents | 627,000 | ' | 488,000 | ||
Short-term available-for-sale securities | 0 | ' | 0 | ||
Long-term available-for-sale securities | 0 | ' | 0 | ||
Short Term Municipal Securities Funds [Member] | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Amortized Cost | 42,602,000 | [2],[3] | ' | 27,493,000 | [2],[3] |
Unrealized Gains (Losses) | -32,000 | [2],[3] | ' | -143,000 | [2],[3] |
Aggregate Fair Value | 42,570,000 | [2],[3] | ' | 27,350,000 | [2],[3] |
Cash and cash equivalents | 0 | [2],[3] | ' | 0 | [2],[3] |
Short-term available-for-sale securities | 42,570,000 | [2],[3] | ' | 27,350,000 | [2],[3] |
Long-term available-for-sale securities | 0 | [2],[3] | ' | 0 | [2],[3] |
Municipal Securities Maturing in One Year or Less [Member] | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Amortized Cost | 976,000 | [2] | ' | 952,000 | [2] |
Unrealized Gains (Losses) | 3,000 | [2] | ' | 3,000 | [2] |
Aggregate Fair Value | 979,000 | [2] | ' | 955,000 | [2] |
Cash and cash equivalents | 0 | [2] | ' | 0 | [2] |
Short-term available-for-sale securities | 979,000 | [2] | ' | 955,000 | [2] |
Long-term available-for-sale securities | 0 | [2] | ' | 0 | [2] |
Municipal Securities Maturing After One Year Through Three Years [Member] | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Amortized Cost | 3,919,000 | [2] | ' | 3,132,000 | [2] |
Unrealized Gains (Losses) | 23,000 | [2] | ' | 20,000 | [2] |
Aggregate Fair Value | 3,942,000 | [2] | ' | 3,152,000 | [2] |
Cash and cash equivalents | 0 | [2] | ' | 0 | [2] |
Short-term available-for-sale securities | 3,942,000 | [2] | ' | 3,152,000 | [2] |
Long-term available-for-sale securities | 0 | [2] | ' | 0 | [2] |
Municipal Securities Maturing Greater Than Three Years [Member] | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Amortized Cost | 4,424,000 | [2] | ' | 4,854,000 | [2] |
Unrealized Gains (Losses) | -81,000 | [2] | ' | -137,000 | [2] |
Aggregate Fair Value | 4,343,000 | [2] | ' | 4,717,000 | [2] |
Cash and cash equivalents | 0 | [2] | ' | 0 | [2] |
Short-term available-for-sale securities | 4,343,000 | [2] | ' | 4,717,000 | [2] |
Long-term available-for-sale securities | $0 | [2] | ' | $0 | [2] |
[1] | At March 31, 2014, municipal securities consisted of an 82/9/8/1 percent split between holdings in short-term municipal security funds, municipal revenue bonds, municipal general obligation bonds and certificates of deposit, respectively. At December 31, 2013, municipal securities consisted of a 76/13/11 split between holdings in short-term municipal security funds, municipal revenue bonds and municipal general obligation bonds, respectively. The underlying credit rating of the municipal securities at March 31, 2014 and December 31, 2013 were A+, A1 or better as defined by S&P 500 and Moodybs, respectively. | ||||
[2] | Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||
[3] | Amounts include short-term municipal security funds that do not have a set maturity date. |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Australian Dollar [Member] | Australian Dollar [Member] | Australian Dollar [Member] | Euro [Member] | Euro [Member] | Euro [Member] | British Pound [Member] | British Pound [Member] | British Pound [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | New Zealand Dollar [Member] | New Zealand Dollar [Member] | New Zealand Dollar [Member] | Japanese Yen [Member] |
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of foreign currency forward contracts | ' | ' | $6,725 | ' | ' | $4,700 | ' | ' | $700 | ' | ' | $350 | ' | ' | $200 | ' | ' | $54,000 |
Derivative maturity date range | ' | ' | ' | 30-Apr-14 | 31-May-15 | ' | 30-Apr-14 | 30-Jun-14 | ' | 30-Apr-14 | 30-Jun-14 | ' | 30-Apr-14 | 30-Jun-14 | ' | 31-May-14 | 30-Jun-14 | 31-May-14 |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forward contracts, assets | 168 | 253 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forward contracts, liabilities | 267 | 549 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net forward contracts | $99 | $296 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance, beginning of period | ($549) | ' |
Effect of incomes taxes, Derivative Securities | 69 | -274 |
Effect of income taxes, Available-for-sale securities | 61 | 26 |
Balance, end of period | -307 | ' |
Realized gain (loss) on sale of investments | 0 | ' |
Derivative Securities [Member] | Foreign Currency Exchange Contracts [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance, beginning of period | -192 | 544 |
Change before reclassification | 196 | -783 |
Effect of incomes taxes, Derivative Securities | -69 | 274 |
Other comprehensive income (loss), net of income taxes | 127 | -509 |
Balance, end of period | -65 | 35 |
Available-for-sale securities [Member] | Foreign Currency Exchange Contracts [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance, beginning of period | -357 | -180 |
Change before reclassification | 175 | 74 |
Effect of income taxes, Available-for-sale securities | -61 | -26 |
Other comprehensive income (loss), net of income taxes | 114 | 48 |
Balance, end of period | ($243) | ($132) |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Shares authorized under the plan available for future stock-based compensation (in shares) | 1,849,492 | ' |
Expected dividend yield (in hundredths) | ' | 4.68% |
Expected stock price volatility (in hundredths) | ' | 59.43% |
Risk-free interest rate (in hundredths) | ' | 2.02% |
Expected life of options | ' | '4 years 7 months 20 days |
Estimated fair value per option granted (in dollars per share) | ' | $1.68 |
Stock Options [Roll Forward] | ' | ' |
Stock Options, Beginning Balance (in shares) | 907,945 | ' |
Stock Options, Grants in Period (in shares) | 0 | ' |
Stock Options, Forfeited / Expired (in shares) | -34,252 | ' |
Stock Options, Exercised (in shares) | 0 | ' |
Stock Options, Ending Balance (in shares) | 873,693 | ' |
Stock Options, Exercisable Ending Balance (in shares) | 319,837 | ' |
Stock Options, Weighted-Average Exercise Price [Roll Forward] | ' | ' |
Stock Options, Weighted-Average Exercise Price, Beginning Balance (in dollars per share) | $6.54 | ' |
Stock Options, Grants, Weighted-Average Exercise Price (in dollars per share) | $0 | ' |
Stock Options, Forfeited / Expired, Weighted Average Exercise Price (in dollars per share) | $8.47 | ' |
Stock Options, Exercised, Weighted Average Exercise Price (in dollars per share) | $0 | ' |
Stock Options, Weighted Average Exercise Price, Ending Balance (in dollars per share) | $0 | ' |
Stock Options Exercisable, Weighted Average Exercise Price, Ending Balance (in dollars per share) | $9.41 | ' |
Outstanding, Weighted-Average Remaining Contractual Life | '7 years 10 months 6 days | ' |
Exercisable, Weighted-Average Remaining Contractual Life | '6 years 4 months 2 days | ' |
Stock-based compensation | $202,000 | $1,751,000 |
Board of Directors [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Vesting period | '1 year | ' |
Key Employees and Consultants [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Vesting period | '4 years | ' |
Stock Options [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Percentage that can vest per year (in hundredths) | 25.00% | ' |
Vesting period | '4 years | ' |
Exercised period for vest from grant date | '10 years | ' |
Fair value assumptions expected forfeiture rate (in hundredths) | 14.20% | ' |
Stock Options, Weighted-Average Exercise Price [Roll Forward] | ' | ' |
Total intrinsic value of stock options exercised | 0 | 0 |
Total fair value of options vested | 0 | 0 |
Option outstanding, intrinsic value | 0 | ' |
Options exercisable, intrinsic value | 0 | ' |
Valuation assumptions | 'based on our $3.96 closing stock price | ' |
Stock price (in dollars per share) | $3.96 | ' |
Stock-based compensation | 100,000 | 800,000 |
Unrecognized stock-based compensation expense | 700,000 | ' |
Unrecognized stock-based compensation expense recognition period | '3 years 10 months 24 days | ' |
Restricted Stock Award [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Percentage that can vest per year (in hundredths) | 100.00% | ' |
Stock Options, Weighted-Average Exercise Price [Roll Forward] | ' | ' |
Option outstanding, intrinsic value | 1,100,000 | ' |
Valuation assumptions | 'based on a $3.96 closing stock price | ' |
Stock price (in dollars per share) | $3.96 | ' |
Stock-based compensation | 100,000 | 900,000 |
Unrecognized stock-based compensation expense | 700,000 | ' |
Unrecognized stock-based compensation expense recognition period | '3 years 10 months 24 days | ' |
Weighted-average grant date fair value of restricted stock awards vested | 7,000 | 1,900,000 |
Restricted Stock and Performance Stock Awards [Abstract] | ' | ' |
Restricted Stock and Performance Stock Awards, Beginning Balance (in shares) | 285,435 | ' |
Restricted Stock and Performance Stock Awards, Shares Granted (in shares) | 0 | ' |
Restricted Stock and Performance Stock Awards, Forfeitures (in shares) | -1,141 | ' |
Restricted Stock Awarded Performance Stock Awards, Vested (in shares) | -661 | ' |
Restricted Stock and Performance Stock Awards, Ending Balance (in shares) | 283,633 | ' |
Restricted Stock and Performance Stock Awards, weighted average grant date fair value [Abstract] | ' | ' |
Restricted Stock and Performance Stock Awards, Beginning Balance (in dollars per share) | $5.24 | ' |
Restricted Stock and Performance Stock Awards, Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $0 | ' |
Restricted Stock and Performance Stock Awards, Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | $9.20 | ' |
Restricted Stock and Performance Stock Awards, Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | $11.34 | ' |
Restricted Stock and Performance Stock Awards, Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share) | $5.21 | ' |
Weighted-Average Remaining Contractual Life | '2 years 2 months 8 days | ' |
Restricted Stock Award [Member] | Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Vesting period | '1 year | ' |
Restricted Stock Award [Member] | Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Vesting period | '4 years | ' |
Restricted Stock Units [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Percentage that can vest per year (in hundredths) | 25.00% | ' |
Vesting period | '4 years | ' |
Stock Options, Weighted-Average Exercise Price [Roll Forward] | ' | ' |
Option outstanding, intrinsic value | 200,000 | ' |
Stock-based compensation | 9,000 | ' |
Unrecognized stock-based compensation expense | 200,000 | ' |
Unrecognized stock-based compensation expense recognition period | '3 years 10 months 24 days | ' |
Restricted Stock and Performance Stock Awards [Abstract] | ' | ' |
Restricted Stock and Performance Stock Awards, Beginning Balance (in shares) | 28,123 | ' |
Restricted Stock and Performance Stock Awards, Shares Granted (in shares) | 15,523 | ' |
Restricted Stock and Performance Stock Awards, Forfeitures (in shares) | -291 | ' |
Restricted Stock Awarded Performance Stock Awards, Vested (in shares) | 0 | ' |
Restricted Stock and Performance Stock Awards, Ending Balance (in shares) | 43,355 | ' |
Restricted Stock and Performance Stock Awards, weighted average grant date fair value [Abstract] | ' | ' |
Restricted Stock and Performance Stock Awards, Beginning Balance (in dollars per share) | $3.88 | ' |
Restricted Stock and Performance Stock Awards, Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $4.51 | ' |
Restricted Stock and Performance Stock Awards, Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | $3.50 | ' |
Restricted Stock and Performance Stock Awards, Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | $0 | ' |
Restricted Stock and Performance Stock Awards, Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share) | $4.11 | ' |
Weighted-Average Remaining Contractual Life | '2 years 1 month 20 days | ' |
Performance Stock Awards [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Vesting period | '3 years | ' |
Fair value assumptions expected forfeiture rate (in hundredths) | 14.00% | ' |
Stock Options, Weighted-Average Exercise Price [Roll Forward] | ' | ' |
Unrecognized stock-based compensation expense | $300,000 | ' |
Restricted Stock and Performance Stock Awards [Abstract] | ' | ' |
Restricted Stock and Performance Stock Awards, Beginning Balance (in shares) | 114,560 | ' |
Restricted Stock and Performance Stock Awards, Shares Granted (in shares) | 0 | ' |
Restricted Stock and Performance Stock Awards, Forfeitures (in shares) | 0 | ' |
Restricted Stock Awarded Performance Stock Awards, Vested (in shares) | 0 | ' |
Restricted Stock and Performance Stock Awards, Ending Balance (in shares) | 114,560 | ' |
Restricted Stock and Performance Stock Awards, weighted average grant date fair value [Abstract] | ' | ' |
Restricted Stock and Performance Stock Awards, Beginning Balance (in dollars per share) | $4.41 | ' |
Restricted Stock and Performance Stock Awards, Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $0 | ' |
Restricted Stock and Performance Stock Awards, Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | $0 | ' |
Restricted Stock and Performance Stock Awards, Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | $0 | ' |
Restricted Stock and Performance Stock Awards, Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share) | $4.41 | ' |
Weighted-Average Remaining Contractual Life | '2 years 9 months 4 days | ' |
Net_Loss_and_Loss_per_Share_De
Net Loss and Loss per Share (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Numerator [Abstract] | ' | ' | ||
Net loss | ($7,551) | ($8,059) | ||
Denominator [Abstract] | ' | ' | ||
Weighted-average shares outstanding (in shares) | 16,755,000 | 17,001,000 | ||
Effect of unvested restricted stock awards considered participating securities (in shares) | 0 | 0 | ||
Weighted-average shares outstanding - basic (in shares) | 16,755,000 | 17,001,000 | ||
Effect of dilutive common stock options (in shares) | 0 | 0 | ||
Weighted-average shares outstanding - diluted (in shares) | 16,755,000 | 17,001,000 | ||
Net loss per share - basic (in dollars per share) | ($0.45) | ($0.47) | ||
Net loss per share - diluted (in dollars per share) | ($0.45) | ($0.47) | ||
Cash dividends declared per share (in dollars per share) | $0 | [1] | $0.06 | [1] |
Stock Options and Restricted Stock Units [Member] | ' | ' | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ||
Stock options and restricted stock units excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive | 822,928 | 1,323,000 | ||
[1] | The Company suspended quarterly dividend payments during the second quarter of 2013. |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Total revenue | $1,397 | $2,893 | ' | ||
Gross margin | 1,056 | 1,392 | ' | ||
Depreciation and amortization | 1,307 | 1,326 | ' | ||
Operating income (loss) | -9,185 | -12,793 | ' | ||
Income tax benefit (provision) | 1,500 | 4,587 | ' | ||
Net income (loss) | -7,551 | -8,059 | ' | ||
Total additions to property and equipment, net | 678 | 901 | ' | ||
Total additions to intangibles | 82 | 82 | ' | ||
Intangibles | 3,502 | 3,553 | 3,522 | ||
Total assets | 114,813 | 124,794 | 88,359 | ||
Ambassador Programs and Other [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Total revenue | 389 | [1] | 1,894 | [1] | ' |
Gross margin | 180 | [1] | 522 | [1] | ' |
Depreciation and amortization | 1,134 | [1] | 1,164 | [1] | ' |
Operating income (loss) | -9,521 | [1] | -13,125 | [1] | ' |
Income tax benefit (provision) | 1,556 | [1] | 4,707 | [1] | ' |
Net income (loss) | -7,831 | [1] | -8,271 | [1] | ' |
Total additions to property and equipment, net | 536 | [1] | 809 | [1] | ' |
Total additions to intangibles | 0 | [1] | 0 | [1] | ' |
Intangibles | 0 | [1] | 0 | [1] | ' |
Total assets | 98,929 | [1] | 111,054 | [1] | ' |
BookRags [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Total revenue | 1,008 | 999 | ' | ||
Gross margin | 876 | 870 | ' | ||
Depreciation and amortization | 173 | 162 | ' | ||
Operating income (loss) | 336 | 332 | ' | ||
Income tax benefit (provision) | -56 | -120 | ' | ||
Net income (loss) | 280 | 212 | ' | ||
Total additions to property and equipment, net | 142 | 92 | ' | ||
Total additions to intangibles | 82 | 82 | ' | ||
Intangibles | 3,502 | 3,553 | ' | ||
Total assets | $15,884 | $13,740 | ' | ||
[1] | Ambassador Programs and Other include all travel programs as well as corporate overhead. |
Supplemental_Disclosures_of_Co2
Supplemental Disclosures of Consolidated Statements of Cash Flows (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Non-cash financing and investing activities [Abstract] | ' | ' |
Unrealized income (loss) on foreign currency exchange contracts | $197 | ($782) |
Unrealized gain on available-for-sale securities | 175 | 74 |
Property and equipment | $0 | ($30) |