Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 25, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | AMERICAN PUBLIC EDUCATION INC | ||
Entity Central Index Key | 1,201,792 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY) | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 16,050,540 | ||
Trading Symbol | APEI | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 412.5 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 105,734 | $ 115,634 |
Accounts receivable, net of allowance of $10,699 in 2014 and $13,012 in 2015. | 7,917 | 6,130 |
Prepaid expenses | 10,746 | 6,379 |
Income tax receivable | 0 | 2,029 |
Deferred income taxes | 6,714 | 6,046 |
Total current assets | 131,111 | 136,218 |
Property and equipment, net | 109,281 | 102,424 |
Investments | 15,915 | 12,051 |
Goodwill | 38,634 | 38,634 |
Other assets, net | 8,955 | 8,577 |
Total assets | 303,896 | 297,904 |
Current liabilities: | ||
Accounts payable | 6,264 | 11,029 |
Accrued liabilities | 14,808 | 13,416 |
Deferred revenue and student deposits | 29,727 | 23,805 |
Total current liabilities | 50,799 | 48,250 |
Deferred income taxes | 15,944 | 15,436 |
Total liabilities | $ 66,743 | $ 63,686 |
Commitments and contingencies (Notes 4 and 8) | ||
Stockholders’ equity: | ||
Preferred Stock, $.01 par value; authorized shares - 10,000; no shares issued or outstanding | $ 0 | $ 0 |
Common Stock, $.01 par value; authorized shares - 100,000; 17,152 issued and outstanding in 2014; 15,989 issued and outstanding in 2015 | 160 | 172 |
Additional paid-in capital | 173,700 | 169,654 |
Retained earnings | 63,293 | 64,392 |
Total stockholders’ equity | 237,153 | 234,218 |
Total liabilities and stockholders’ equity | $ 303,896 | $ 297,904 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance | $ 13,012 | $ 10,699 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, Authorized shares (in shares) | 10,000,000 | 10,000,000 |
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, Authorized shares (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 15,989,000 | 17,152,000 |
Common stock, outstanding (in shares) | 15,989,000 | 17,152,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Revenue | $ 327,910 | $ 350,020 | $ 329,479 |
Costs and expenses: | |||
Instructional costs and services | 118,848 | 123,765 | 112,784 |
Selling and promotional | 62,397 | 69,229 | 65,687 |
General and administrative | 73,864 | 75,073 | 70,063 |
Depreciation and amortization | 20,520 | 16,121 | 13,508 |
Total costs and expenses | 275,629 | 284,188 | 262,042 |
Income before interest income and income taxes | 52,281 | 65,832 | 67,437 |
Interest income, net | 115 | 361 | 309 |
Income from operations before income taxes | 52,396 | 66,193 | 67,746 |
Income tax expense | 20,072 | 25,150 | 25,645 |
Equity investment income/(loss), net of tax | 90 | (166) | (67) |
Net income | $ 32,414 | $ 40,877 | $ 42,034 |
Net income per common share: | |||
Basic (in dollars per share) | $ 1.94 | $ 2.36 | $ 2.38 |
Diluted (in dollars per share) | $ 1.93 | $ 2.33 | $ 2.35 |
Weighted average number of shares outstanding: | |||
Basic (in shares) | 16,676 | 17,357 | 17,656 |
Diluted (in shares) | 16,798 | 17,543 | 17,921 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Repurchased Stock | Additional Paid-In Capital | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2012 | 17,751,945 | ||||
Beginning balance at Dec. 31, 2012 | $ 171,153 | $ 178 | $ 157,449 | $ 13,526 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued for cash (in shares) | 237,482 | ||||
Stock issued for cash | 3,312 | $ 2 | 3,310 | ||
Stock issued for director compensation (in shares) | 2,802 | ||||
Stock issued for director compensation | 104 | 104 | |||
Repurchased shares of common and restricted stock from stockholders (in shares) | (20,540) | (394,064) | |||
Repurchased shares of common and restricted stock from stockholders | (14,423) | $ (13,584) | (839) | ||
Stock-based compensation | $ 4,024 | 4,024 | |||
Repurchased and retired shares of common stock (in shares) | 394,064 | 394,064 | 394,064 | ||
Repurchased and retired shares of common stock | $ 0 | $ (4) | $ 13,584 | (13,580) | |
Excess tax benefit (expense) from stock based compensation | 865 | 865 | |||
Net income | 42,034 | 42,034 | |||
Ending balance at Dec. 31, 2013 | 207,069 | $ 176 | 164,913 | 41,980 | |
Ending balance (in shares) at Dec. 31, 2013 | 17,577,625 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued for cash (in shares) | 133,643 | ||||
Stock issued for cash | 537 | $ 1 | 536 | ||
Stock issued for director compensation (in shares) | 2,535 | ||||
Stock issued for director compensation | 90 | 90 | |||
Repurchased shares of common and restricted stock from stockholders (in shares) | (30,973) | (530,962) | |||
Repurchased shares of common and restricted stock from stockholders | (19,712) | $ (18,470) | (1,242) | ||
Stock-based compensation | 5,107 | 5,107 | |||
Repurchased and retired shares of common stock (in shares) | 530,962 | 530,962 | |||
Repurchased and retired shares of common stock | 0 | $ (5) | $ 18,470 | (18,465) | |
Excess tax benefit (expense) from stock based compensation | 250 | 250 | |||
Net income | 40,877 | 40,877 | |||
Ending balance at Dec. 31, 2014 | 234,218 | $ 172 | 169,654 | 64,392 | |
Ending balance (in shares) at Dec. 31, 2014 | 17,151,868 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued for cash (in shares) | 213,921 | ||||
Stock issued for cash | 55 | $ 1 | 54 | ||
Stock issued for director compensation (in shares) | 2,248 | ||||
Stock issued for director compensation | 66 | 66 | |||
Repurchased shares of common and restricted stock from stockholders (in shares) | (56,272) | (1,322,846) | |||
Repurchased shares of common and restricted stock from stockholders | (35,310) | $ (33,526) | (1,784) | ||
Stock-based compensation | $ 6,229 | 6,229 | |||
Repurchased and retired shares of common stock (in shares) | 1,322,846 | 1,322,952 | 1,322,846 | ||
Repurchased and retired shares of common stock | $ (13) | $ 33,526 | (33,513) | ||
Excess tax benefit (expense) from stock based compensation | $ (519) | (519) | |||
Net income | 32,414 | 32,414 | |||
Ending balance at Dec. 31, 2015 | $ 237,153 | $ 160 | $ 173,700 | $ 63,293 | |
Ending balance (in shares) at Dec. 31, 2015 | 15,988,813 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Net income | $ 32,414 | $ 40,877 | $ 42,034 |
Adjustments to reconcile net income to net cash provided by operating activities, net of assets and liabilities acquired | |||
Depreciation and amortization | 20,520 | 16,121 | 13,508 |
Stock-based compensation | 5,912 | 5,369 | 4,024 |
Loss on disposal | 817 | 115 | 62 |
Investment loss/(income) | (90) | 166 | 67 |
Stock issued for director compensation | 66 | 90 | 104 |
Deferred income taxes | (160) | 2,494 | 2,018 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net of allowance for bad debt | (1,787) | 3,390 | 2,720 |
Prepaid expenses and other assets | (4,405) | (512) | (1,262) |
Income tax receivable | 2,029 | 1,186 | 1,738 |
Accounts payable | (4,765) | (534) | (5,903) |
Accrued liabilities | 738 | (6,708) | 5,047 |
Deferred revenue and student deposits | 5,922 | (1,024) | (4,743) |
Net cash provided by operating activities | 57,211 | 61,030 | 59,414 |
Investing activities | |||
Capital expenditures | (26,002) | (24,596) | (20,649) |
Equity investment | (3,871) | (1,620) | (4,000) |
Note receivable | (199) | 6,000 | 0 |
Acquisition, net of cash acquired | 0 | 0 | (44,356) |
Capitalized program development costs and other assets | (1,265) | (1,075) | (244) |
Net cash used in investing activities | (31,337) | (21,291) | (69,249) |
Financing activities | |||
Cash paid for repurchase of common/restricted stock | (35,310) | (19,711) | (14,423) |
Cash received from issuance of common stock | 55 | 536 | 3,312 |
Excess tax benefit/(expense) from stock-based compensation | (519) | 250 | 865 |
Net cash used in financing activities | (35,774) | (18,925) | (10,246) |
Net increase (decrease) in cash and cash equivalents | (9,900) | 20,814 | (20,081) |
Cash and cash equivalents at beginning of period | 115,634 | 94,820 | 114,901 |
Cash and cash equivalents at end of period | 105,734 | 115,634 | 94,820 |
Supplemental disclosures of cash flow information | |||
Income taxes paid | $ 18,037 | $ 21,631 | $ 21,014 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of Business and Significant Accounting Policies | Nature of Business and Significant Accounting Policies American Public Education, Inc., or APEI, which together with its subsidiaries is referred to as the “Company”, is a provider of online and campus-based postsecondary education to approximately 97,500 students through the operations of two subsidiary institutions: • American Public University System, Inc., or APUS, provides online postsecondary education directed primarily at the needs of the military and public safety communities through American Military University, or AMU, and American Public University, or APU. APUS is regionally accredited by the Higher Learning Commission. • National Education Seminars, Inc., which is referred to in these financial statements as Hondros College of Nursing, or HCON, provides nursing education to students at four campuses in the State of Ohio as well as online to serve the needs of the nursing and healthcare communities. HCON is nationally accredited by the Accrediting Council of Independent Colleges and Schools and the RN-to-BSN Program is accredited by the Commission on Collegiate Nursing Education. HCON was acquired by APEI on November 1, 2013. The Company’s institutions are licensed or otherwise authorized, or are in the process of obtaining such licenses or authorizations, to offer postsecondary education programs by state authorities to the extent the institutions believe such licenses or authorizations are required, and are certified by the United States Department of Education, or ED, to participate in student financial aid programs authorized under Title IV of the Higher Education Act of 1965, as amended, or Title IV programs. Our operations are organized into two reportable segments: • American Public Education Segment, or APEI Segment. This segment reflects the operational activities at APUS, other corporate activities, and minority investments. • Hondros College of Nursing Segment, or HCON Segment. This segment reflects the operational activities of HCON. The Company acquired HCON on November 1, 2013, and therefore the consolidated results for periods prior to November 1, 2013 do not include any results from HCON. A summary of the Company’s significant accounting policies follows: Basis of accounting. The accompanying financial statements are presented in accordance with the accrual basis of accounting, whereby revenue is recognized when earned and expenses are recognized when incurred. Principles of consolidation. The accompanying consolidated financial statements include accounts of APEI and its wholly-owned subsidiaries. All material inter-company transactions and balances have been eliminated in consolidation. Cash and cash equivalents. The Company considers all highly liquid investments with original maturities of ninety days or less when purchased to be cash equivalents. Restricted Cash. Cash and cash equivalents includes funds held for students for unbilled educational services that were received from Title IV programs. As a trustee of these Title IV program funds, we are required to maintain and restrict these funds pursuant to the terms of our program participation agreement with the U.S. Department of Education. Restricted cash on our Consolidated Balance Sheets as of December 31, 2014 and 2015 was $3.9 million and $3.3 million , respectively. Changes in restricted cash that represent funds held for students as described above are included in cash flows from operating activities on our Consolidated Statements of Cash Flows because these restricted funds are a core activity of our operations. Accounts receivable. Course tuition is recorded as accounts receivable and deferred revenue at the time students begin a course or term. Students may remit tuition payments at any time or they may elect various other payment options which can delay the receipt of payment up until the course or term starts or longer. These other payment options include payments by sponsors, financial aid, alternative loans, or a tuition assistance program that remits payments directly to the subsidiary. When a student remits payment after a course or term has begun, accounts receivable is reduced. If payment is made prior to the start of a course or term, the payment is recorded as a student deposit, and the student is provided access to the online classroom when courses start, in the case of APUS, or allowed to start the term, in the case of HCON. If one of the various other payment options are confirmed as secured, the student is provided access to the online classroom or allowed to start the term. Generally, if no receipt is confirmed or payment option secured, the student will be dropped from the online course or not allowed to start the term. Therefore, billed amounts represent charges that have been prepared and sent to students or the applicable third party payor according to the terms agreed upon in advance. Department of Defense, or DoD, tuition assistance programs are billed by branch of service on a course-by-course basis when a student starts a course, whereas Title IV programs are billed based on the courses included in a student’s semester. Billed accounts receivable are considered past due if the invoice has been outstanding for more than 30 days. The allowance for doubtful accounts is based on management’s evaluation of the status of existing accounts receivable. Among other factors, management considers the age of the receivable, the anticipated source of payment and the Company’s historical allowance considerations. Consideration is also given to any specific known risk areas among the existing accounts receivable balances. Recoveries of receivables previously written off are recorded when received. The Company does not charge interest on its past due accounts receivable. Property and equipment. All property and equipment are carried at cost less accumulated depreciation, except the acquired assets of HCON, which were recorded at fair value at the acquisition date. Depreciation and amortization are calculated on a straight-line basis over the estimated useful lives of the assets. Our Partnership At a Distance TM system, or PAD, is a customized student information and services system used by APUS to manage admissions, online orientation, course registrations, tuition payments, grade reporting, progress toward degrees, and various other functions. Costs associated with this system have been capitalized in accordance with Financial Accounting Standards Board Accounting Standards Codification, or FASB ASC, Subtopic 350-40, Accounting for the Costs of Computer Software Developed or Obtained for Internal Use , and classified as property and equipment. These costs are amortized over the estimated useful life of five years . The Company also capitalizes certain costs for academic program development. These costs are transferred to property and equipment upon completion of each program and amortized over an estimated life not to exceed three years . Investments. On September 30, 2012, the Company made a $6.8 million investment in preferred stock of NWHW Holdings, Inc., or NWHW Holdings, a holding company that operates New Horizons Worldwide, Inc., or New Horizons, representing approximately 19.9% of the fully diluted equity of NWHW Holdings. New Horizons is a global IT training company operating over 300 locations around the world through franchise arrangements in 70 countries. In connection with the investment, the Company is entitled to certain rights, including the right to representation on the Board of Directors of NWHW Holdings. The Company accounts for its investment in New Horizons under the equity method of accounting. Therefore, the Company recorded the investment at cost and recognizes its share of earnings or losses in the investee in the periods for which they are reported with a corresponding adjustment in the carrying amount of the investment. On February 20, 2013, the Company made a $4.0 million investment in preferred stock of Fidelis Education, Inc., or Fidelis Education, representing approximately 21.6% of its fully diluted equity. Fidelis Education offers a learning relationship management platform that has the goal of improving education advising and career mentoring services offered to students as they pursue college degrees. In connection with the investment, the Company is entitled to certain rights, including the right to representation on the Board of Directors of Fidelis Education. The Company accounts for its investment in Fidelis Education under the equity method of accounting. Therefore, the Company recorded the investment at cost and recognizes its share of earnings or losses in the investee in the periods for which they are reported with a corresponding adjustment in the carrying amount of the investment. For information on an additional investment by the Company in Fidelis Education in February 2016, please refer to Note 12, “Subsequent Events” of these Notes to Consolidated Financial Statements. On April 2, 2014, the Company made a $1.5 million investment in preferred stock of Second Avenue Software, Inc., or Second Avenue Software, representing approximately 25.9% of its fully diluted equity. Second Avenue Software is a game-based education software company that develops software on a proprietary and “work-for-hire” basis. In connection with the investment, the Company is entitled to certain rights, including the right to representation on the Board of Directors of Second Avenue Software. The Company accounts for its investment in Second Avenue Software under the equity method of accounting. Therefore, the Company recorded the investment at cost and recognizes its share of earnings or losses in the investee in the periods for which they are reported with a corresponding adjustment in the carrying amount of the investment. On December 21, 2015, the Company made a $3.5 million investment in preferred stock of an online social networking company representing approximately 13.8% of its fully diluted equity. The Company accounts for its investment in the online social networking company using the cost method of accounting. The Company evaluated its cost method investments for impairment as of December 31, 2015 and estimated that the fair value of its cost method investments was at least equal to its carrying value as of that date. The Company had no investments that were presented as cost method investments on its Consolidated Balance Sheet as of December 31, 2014 . The aggregate carrying amount of the Company’s cost method investments presented on its Consolidated Balance Sheet as of December 31, 2015 is $4.1 million . Unless indicators of impairment exist, the fair value of the Company’s cost method investments are not estimated in any period where it is not practicable to estimate the fair value of such investments. Note Receivable. The Company evaluates notes receivable by analyzing the borrower’s creditworthiness, cash flows and financial status, and the condition and estimated value of the collateral. The Company considers a note to be impaired when, based upon current information and events, management believes it is probable that the Company will be unable to collect all amounts due according to the terms of the note. In connection with the Company’s minority investment in NWHW Holdings, the Company extended $6.0 million in credit to New Horizons in exchange for a subordinated note. The note was interest only and was scheduled to mature on September 28, 2018 . Interest was payable monthly at a rate of 5.0% per annum during the first five years of the note and monthly at a rate of 6.0% per annum in the sixth year. On December 16, 2014, New Horizons prepaid the subordinated note in full, including pro rata interest owed. Goodwill and indefinite-lived intangible assets. Goodwill represents the excess of the purchase price of an acquired business over the amount assigned to the assets acquired and liabilities assumed. Goodwill and the indefinite-lived intangible assets are assessed at least annually for impairment, or more frequently if events occur or circumstances change between annual tests that would more likely than not reduce the fair value of the respective reporting unit below its carrying amount. Under Accounting Standards Update No. 2011-08, Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment , the Company is permitted, but not required, to first assess qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test. Valuation of long-lived assets. The Company accounts for the valuation of long-lived assets under FASB ASC Topic 360, Accounting for the Impairment or Disposal of Long-Lived Assets. FASB ASC Topic 360 requires that long-lived assets and certain identifiable intangible assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the long-lived asset is measured by a comparison of the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Assets to be disposed of are reportable at the lower of the carrying amount or fair value, less costs to sell. Revenue recognition. The Company records all tuition as deferred revenue when a student begins an online course, in the case of APUS, or starts a term, in the case of HCON. At the beginning of each course or term, revenue is recognized on a pro rata basis over the period of the course or term, which is, for APUS, either an eight - or sixteen -week period and, for HCON, a quarterly term. This results in deferred revenue on the Company’s Consolidated Balance Sheets that includes future revenue that has not yet been earned for courses and terms that are in progress. The revenue recognition policies of each of the Company’s reportable segments is discussed below. American Public University System. APUS’s tuition revenue varies from period to period based on the number of net course registrations. Students may remit tuition payments through the online registration process at any time or they may elect various payment options, including payments by sponsors, alternative loans, financial aid, or the DoD tuition assistance program which remits payments directly to APUS. These other payment options can delay the receipt of payment up until the course starts or longer, resulting in the recording of an accounts receivable at the beginning of each session. Tuition revenue for sessions in progress that has not been earned by APUS is presented as deferred revenue in the accompanying Consolidated Balance Sheets. APUS refunds 100% of tuition for courses that are dropped by students before the conclusion of the first seven days of a course. Because courses begin the first Monday of every month and penalty free drops occur by the second Monday of every month, the Company does not recognize revenue for dropped courses. After a course begins, if a student does not drop the course within the first seven days, APUS uses the following refund policy: 8-Week Course- Tuition Refund Schedule Withdrawal Date Tuition Refund Percentage Before or During Week 1 100% During Week 2 75% During Weeks 3 and 4 50% During Weeks 5 through 8 No Refund 16-Week Course- Tuition Refund Schedule Withdrawal Date Tuition Refund Percentage Before or During Week 1 100% During Week 2 100% During Weeks 3 and 4 75% During Weeks 5 through 8 50% During Weeks 9 through 16 No Refund Prior to January 1, 2016, alternative refund policies applied to students in certain states as a result of specific state and other local requirements. However, beginning January 1, 2016, APUS is not aware of any state specific refund policies that will be applicable. APUS recognizes revenue on a pro rata basis over the period of its courses as APUS completes the tasks entitling it to the benefits represented by such revenue. If a student withdraws during the academic term, APUS recognizes as revenue the remaining non-refundable amount due from the student in the period the withdrawal occurs. The calculation of the remaining non-refundable amount is based upon the APUS student refund policy. For those students who have an outstanding receivable balance at the date of withdrawal, APUS assesses collectability and only recognizes as revenue those amounts where collectability is reasonably assured based on APUS’s history with similar student accounts. This policy was implemented on January 1, 2015. Previously, APUS recognized revenue for all student withdrawals and established an allowance for those receivables considered uncollectible. The Company does not believe that this change in policy has had or will have a material effect on its results of operations or financial condition. Other revenue includes charges for transcript credit evaluation, which includes assistance in securing official transcripts on behalf of the student in addition to evaluating transcripts for transfer credit, and a technology fee per course. APUS provides a grant to cover the technology fee for students using DoD tuition assistance programs. Prior to April 2015, APUS provided a grant to cover the technology fee for students using education benefit programs administered by the U.S. Department of Veterans Affairs, or VA. After April 1, 2015, the technology fee grant was no longer applied to students using VA education benefits. Students also are charged graduation, late registration, transcript request and comprehensive examination fees, when applicable. In accordance with FASB ASC Topic 605-50, Accounting by a Customer (Including a Reseller) for Certain Consideration Received from a Vendor , other fees also include book purchase commissions APUS receives for graduate student book purchases and ancillary supply purchases students make directly from APUS’s preferred book vendor. Hondros College of Nursing. HCON’s tuition revenue varies from period to period based on the number of students enrolled and the programs they are enrolled in. Students may remit tuition payments at any time, or they may elect various payment options that can delay receipt of payment up until the term starts or longer. These other payment options include payments by sponsors, financial aid, alternative loans, or payment plan options. If one of the various other payment options are confirmed as secured, the student is allowed to start the term. All financial aid is awarded prior to the start of the term and requests for authorization of disbursement begin in the first week of the term. Tuition revenue for the term in progress that has not yet been earned by HCON is presented as deferred revenue in the accompanying Consolidated Balance Sheets. HCON’s refund policy complies with the rules of the Ohio State Board of Career Colleges and Schools and is applicable to each term. For a course with an on-campus or other in-person component, the date of withdrawal is determined by a student’s last attended day of clinical offering, laboratory session, or lecture. For an online course, the date of withdrawal is determined by a student's last submitted assignment in the course. HCON uses the following refund policy: Withdrawal Date Tuition Refund Percentage Before first full calendar week of the quarter 100% plus registration fee During first full calendar week of the quarter 75% , plus registration fee During second full calendar week of the quarter 50% , plus registration fee During third full calendar week of the quarter 25% , plus registration fee During fourth full week of the quarter No Refund Alternative refund policies may apply to students of certain states in accordance with specific state and other local requirements. Deferred Revenue and Student Deposits. Deferred revenue and student deposits at December 31, 2014 and 2015 consisted of the following (in thousands): As of December 31, 2014 2015 Deferred revenue $ 13,367 $ 17,239 Student deposits 10,438 12,488 Total deferred revenue and student deposits $ 23,805 $ 29,727 The Company provides scholarships to certain students, including employees and eligible dependents, to assist them financially and promote their registration. Scholarship assistance of $2,855,000 , $ 2,589,000 and $7,583,000 was provided for the years ended December 31, 2013 , 2014 and 2015 , respectively, and is included as a reduction to revenue in the accompanying Consolidated Statements of Income. Advertising costs. Advertising costs are expensed as incurred. Advertising expenses for the years ended December 31, 2013 , 2014 and 2015 were $46,995,000 , $50,950,000 and $42,226,000 respectively, and are included in selling and promotion costs in the accompanying Consolidated Statements of Income. Income taxes. Deferred taxes are determined using the liability method, whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. As these differences reverse, they will enter into the determination of future taxable income. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment of such changes. There were no material uncertain tax positions as of December 31, 2013 , 2014 and 2015 . Interest and penalties associated with uncertain income tax positions would be classified as income tax expense. The Company has not recorded any material interest or penalties during any of the years presented. Stock-based compensation. The Company applies FASB ASC Topic 718, Share-Based Payment , which requires companies to expense share-based compensation based on fair value. The following amounts of stock-based compensation have been included in the operating expense line-items indicated (in thousands): Year Ended December 31, 2013 2014 2015 Instructional costs and services $ 876 $ 1,274 $ 1,598 Selling and promotional 444 568 684 General and administrative 2,704 3,527 3,630 Total stock-based compensation expense $ 4,024 $ 5,369 $ 5,912 Income per common share. Basic net income per common share is based on the weighted average number of shares of common stock outstanding during the period. Diluted net income per common share increases the shares used in the per share calculation by the dilutive effects of options, warrants, and restricted stock. There were no outstanding options to purchase common shares that were excluded in the computation of diluted net income per common share for the year ended December 31, 2013 . There were 365,832 and 317,961 anti-dilutive stock options excluded from the calculation for the years ended December 31, 2014 and 2015 , respectively. Fair value of financial instruments. The carrying amounts of cash and cash equivalents, tuition receivable, accounts payable, and accrued liabilities approximate fair value because of the short maturity of these instruments. Concentration of credit risk. The Company maintains its cash and cash equivalents in bank deposit accounts with various financial institutions. Cash and cash equivalent balances may exceed the FDIC insurance limit. The Company has historically not experienced any losses in such accounts. Estimates. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. As originally issued, ASU 2014-09 would have been effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption not permitted. Accordingly, the standard would only be effective for the Company for periods beginning on or after January 1, 2017. However, on July 9, 2015, the FASB voted to approve a one-year deferral of the effective date of the new revenue recognition standard with early adoption permitted. Public companies will now apply the new revenue standard to annual reporting periods beginning after December 15, 2017, and to all interim reporting periods within the year of adoption. Accordingly, the revised revenue recognition standard will be effective for the Company for the year ending December 31, 2018, with early adoption permitted for annual periods beginning after December 16, 2016. The revised standard will be effective for all interim periods within the year of adoption. The Company is currently evaluating, but has not yet determined, the impact that implementation of this standard may have on the Company’s Consolidated Financial Statements and disclosures. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). The standard requires that deferred tax assets and liabilities be classified as noncurrent on the balance sheet rather than being separated into current and noncurrent. ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities. The Company is currently evaluating, but has not yet determined, the impact that implementation of this standard may have on the Company’s Consolidated Financial Statements and disclosures. |
Acquisition Accounting
Acquisition Accounting | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisition Accounting | Acquisition Accounting On November 1, 2013 , the Company acquired all of the outstanding common stock of HCON, for an initial adjusted aggregate purchase price of approximately $46.3 million . The HCON acquisition was accounted for under FASB ASC Topic 805, Business Combinations, which requires the acquisition method to be used for all business combinations. Under FASB ASC Topic 805, the assets and liabilities of an acquired company are reported at business fair value along with the fair value of unrecorded intangible assets at the date of acquisition. Goodwill represents the excess of the purchase price of an acquired business over the amount assigned to the assets acquired and liabilities assumed and the fair value assigned to identifiable intangible assets. The initial purchase price allocation resulted in $38.1 million of goodwill, which is deductible for tax purposes. Intangible assets are amortized over their estimated useful lives unless they are deemed to have an indefinite life. Identified intangible assets with an indefinite life are trade name, accreditation, licensing and Title IV, and affiliate agreements as they benefit the Company indefinitely. Because HCON is wholly owned by the Company as a result of the acquisition, management has determined that push-down accounting is appropriate. As part of the transaction, the Company and the selling shareholders of HCON agreed to an election under Section 338(h)(10) of the Internal Revenue Code of 1986, as amended, as it relates to the acquisition of HCON by the Company. A Section 338(h)(10) election is an election made jointly by buyer(s) and seller(s) to treat a stock acquisition as an asset acquisition for U.S. federal income tax purposes. The acquisition resulted in a preliminary estimate of fair value of its liability to the selling shareholders related to the Section 338(h)(10) election in the amount of $150,000 , which was included in the initial goodwill allocation. Prior to December 31, 2014, the Company revised its estimate of the fair value of its liability to HCON's selling shareholders related to the Section 338(h)(10) election to approximately $636,000 . As a result, the total adjusted aggregate purchase price and the amount of goodwill were revised to $46.8 million and $38.6 million , respectively. The fair value of identified intangible assets acquired was determined using one of the following three valuation methodologies: • Cost approach; • Income approach; or • Market approach. (in thousands) Fair value consideration transferred: Cash $ 46,128 Fair Value of IRC 338(h)(10) election 636 Total fair value consideration transferred $ 46,764 Recognized amounts of identifiable tangible assets acquired and liabilities assumed: Assets acquired $ 4,834 Liabilities assumed 4,786 Assets acquired in excess of liabilities assumed $ 48 Useful Life Recognized identified intangible assets: Student contracts and relationships 6 years $ 3,870 Trade name 1,998 Curricula 3 years 405 Accreditation, licensing and Title IV 1,686 Affiliate agreements 37 Non-compete agreements 5 years 86 Total recognized identified intangible assets $ 8,082 Goodwill $ 38,634 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment at December 31, 2014 and 2015 consisted of the following: Useful 2014 2015 (in thousands) Land — $ 9,244 $ 9,501 Building and building improvements 27.5 - 39 years 52,938 58,429 Leasehold improvements up to 15 years 2,391 1,002 Office equipment 5 years 2,351 2,322 Computer equipment 3 years 22,615 25,179 Furniture and fixtures 7 years 7,533 8,124 Other Capitalizable Assets 1 - 5 years 708 1,829 Software development 5 years 64,593 74,737 Program development 3 years 4,110 4,920 166,483 186,043 Accumulated depreciation and amortization 64,059 76,762 $ 102,424 $ 109,281 During the years ended December 31, 2013 , 2014 and 2015 , the Company recorded depreciation expense of $13,225,000 , $14,980,000 and $19,626,000 , respectively. In addition, the Company recorded amortization expense related to other assets of $283,000 , $1,141,000 , and $894,000 during the years ended December 31, 2013 , 2014 and 2015 , respectively. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Operating Leases | Operating Leases The APEI Segment leases office space in Maryland and Virginia under operating leases that expire through September 2018 . HCON operates four campuses in Ohio, located in the suburban areas of Cincinnati, Cleveland, Columbus, and Dayton, under operating leases that expire through June 2029 . Rent expense related to the APEI Segment’s operating leases was $1,647,000 , $1,666,000 and $1,094,000 for the years ended December 31, 2013 , 2014 and 2015 , respectively. Rent expense related to the HCON Segment’s operating leases was $317,000 for the two-month period ended December 31, 2013 , and $2,212,000 , and $2,347,000 for the years ended December 31, 2014 and 2015 , respectively. HCON was acquired by APEI on November 1, 2013. The minimum rental commitments due under the operating leases are as follows (in thousands): Years Ending December 31, Combined 2016 $ 2,003 2017 2,023 2018 1,690 2019 1,530 2020 and beyond 8,566 Total minimum rental commitment $ 15,812 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense for the years ended December 31, 2013 , 2014 and 2015 were as follows (in thousands): 2013 2014 2015 Current income tax expense: Federal $ 20,533 $ 19,404 $ 17,910 State 3,094 3,252 2,322 23,627 22,656 20,232 Deferred tax expense: Federal 1,858 2,623 (241 ) State 160 (129 ) 81 2,018 2,494 (160 ) Income Tax Expense $ 25,645 $ 25,150 $ 20,072 The tax effects of principal temporary differences are as follows (in thousands): 2014 2015 Deferred tax assets: Property and equipment $ 9,215 $ 13,629 Stock option compensation expense 1,556 1,336 Allowance for doubtful accounts 3,846 4,988 Accrued vacation and severance 549 576 Restricted stock 1,818 1,830 Investment 100 19 17,084 22,378 Deferred tax liabilities: Income tax deductible capitalized software development costs (24,750 ) (29,592 ) Prepaid expenses (1,724 ) (2,016 ) (26,474 ) (31,608 ) Deferred tax liabilities, net $ (9,390 ) $ (9,230 ) Income tax expense differs from the amount of tax determined by applying the United States Federal income tax rates to pretax income and loss due to permanent tax differences, and the application of state apportionment laws, as follows (in thousands): 2013 2014 2015 Amount % Amount % Amount % Tax expense at statutory rate $ 23,688 35.00 % $ 23,110 35.00 % $ 18,370 35.00 % State taxes, net 2,069 3.06 % 1,985 3.01 % 1,590 3.03 % Permanent differences (275 ) (0.41 )% 228 0.35 % 278 0.53 % Other 163 0.24 % (173 ) (0.27 )% (166 ) (0.32 )% $ 25,645 37.89 % $ 25,150 38.09 % $ 20,072 38.24 % Permanent differences in the table above are mainly attributable to minority investment losses, nondeductible meals and entertainment expenses, and non-deductible employer contributions to the American Public Education, Inc. Employee Stock Purchase Plan, or ESPP. The Company is subject to U.S. federal income taxes as well as income tax of multiple state jurisdictions. For federal and state tax purposes, tax years 2012 - 2015 remain open to examination. |
Other Employee Benefits
Other Employee Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | |
Other Employee Benefits | Other Employee Benefits The Company has established a tax deferred 401(k) retirement plan that provides retirement benefits to all of its eligible employees. Participants may elect to contribute up to 60% of their gross annual earnings not to exceed ERISA and IRS limits. The plan provides for Company discretionary profit sharing contributions at matching percentages. Employees immediately vest 100% in all salary reduction contributions and employer contributions. On June 20, 2008, the Company filed a Form S-8 to register 100,000 shares of common stock that may be purchased in the open market and subsequently issued pursuant to the retirement plan. In June 2015, the Company's 401(k) retirement plan was amended so that effective August 31, 2015, the Company’s 401(k) retirement plan no longer allows participants to invest future contributions in the Company's common stock. The Company’s 401(k) retirement plan will completely remove the Company's common stock as an investment election on June 30, 2016. Any of the Company's common stock held by 401(k) retirement plan participants as of June 30, 2016 will be sold and automatically re-allocated to an age-appropriate mutual fund. The Company made discretionary contributions to the plan of $2,753,000 , $3,270,000 and $3,309,000 for the years ended December 31, 2013 , 2014 and 2015 , respectively. In November 2007, the Company adopted the American Public Education, Inc. Employee Stock Purchase Plan, or the ESPP, which was implemented effective July 1, 2008 with quarterly enrollment periods. Eligible participants may only enter the plan and establish their withholdings at the start of an enrollment period. Participating employees may withdraw from the plan and end payroll deductions any time up to five days before the share purchase date and funds will be returned to them. Under the ESPP, participating employees may purchase shares of the Company’s common stock, subject to certain limitations, at 85% of its fair market value on the last day of the quarterly period. The total value of contributions per participant may not exceed $21,000 annually or the value of the common stock purchased per participant cannot exceed $25,000 . There were initially 100,000 shares of common stock available for purchase by participating employees under the ESPP. On June 13, 2014, the Company’s shareholders approved an amendment to the ESPP to increase the number of shares of the Company’s common stock available for issuance under the plan by 100,000 shares, extend the term of the ESPP to March 7, 2024, and make other administrative changes. Shares purchased in the open market for issuance to employees pursuant to the plan for the years ended December 31, 2013 , 2014 and 2015 were as follows: Purchase Date Shares Common Stock Fair Value Purchase Price Compensation Expense March 31, 2013 4,760 $ 34.89 $ 29.66 $ 24,895 June 30, 2013 4,726 $ 37.16 $ 31.59 $ 26,324 September 30, 2013 4,226 $ 37.80 $ 32.13 $ 23,961 December 31, 2013 4,556 $ 43.47 $ 36.95 $ 29,705 Total/Weighted Average 18,268 $ 38.29 $ 32.55 $ 104,885 March 31, 2014 4,961 $ 35.08 $ 29.82 $ 26,095 June 30, 2014 5,180 $ 34.38 $ 29.22 $ 26,729 September 30, 2014 5,246 $ 26.99 $ 22.94 $ 21,246 December 31, 2014 3,931 $ 36.87 $ 31.34 $ 21,738 Total/Weighted Average 19,318 $ 33.06 $ 28.10 $ 95,808 March 31, 2015 4,322 $ 29.98 $ 25.49 $ 19,406 June 30, 2015 5,443 $ 25.72 $ 21.86 $ 21,010 September 30, 2015 4,939 $ 23.45 $ 19.93 $ 17,385 December 31, 2015 6,822 $ 18.61 $ 15.82 $ 19,033 Total/Weighted Average 21,526 $ 23.80 $ 20.23 $ 76,834 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Stock Incentive Plans On March 15, 2011, the Company’s Board of Directors adopted the American Public Education, Inc. 2011 Omnibus Incentive Plan, or the 2011 Incentive Plan, and the Company’s stockholders approved the 2011 Incentive Plan on May 6, 2011, at which time the 2011 Incentive Plan became effective. Upon effectiveness of the 2011 Incentive Plan, the Company ceased making awards under the American Public Education, Inc. 2007 Omnibus Incentive Plan, or the 2007 Incentive Plan. The 2011 Incentive Plan allows the Company to grant up to 2,000,000 shares plus any shares of common stock that are subject to outstanding awards under the 2007 Incentive Plan or the American Public Education, Inc. 2002 Stock Plan, or the 2002 Stock Plan (and, together with the 2011 Incentive Plan and the 2007 Incentive Plan, the Stock Incentive Plans), that terminate due to expiration, forfeiture, cancellation or otherwise without the issuance of such shares. As of December 31, 2015 , there were 305,295 shares subject to outstanding awards under the 2011 Incentive Plan, and 329,872 shares subject to outstanding awards under the 2007 Incentive Plan and the 2002 Stock Plan. Awards under the 2011 Incentive Plan may include the following award types: stock options, which may be either incentive stock options or non-qualified stock options; stock appreciation rights; restricted stock; restricted stock units; dividend equivalent rights; performance shares; performance units; cash-based awards; other stock-based awards, including unrestricted shares; or any combination of the foregoing. Prior to 2012, the Company used a mix of stock options and restricted stock, but since 2011 the Company has not issued any stock options. For the years ended December 31, 2013 , 2014 and 2015 , the Company recognized $4,024,000 , $5,369,000 and $5,912,000 in stock-based compensation expense as required under FASB ASC Topic 718, and recognized a total income tax benefit of $1,594,000 , $2,022,000 and $2,467,000 , respectively. Stock-based compensation expense related to restricted stock and restricted stock unit grants is expensed over the vesting period using the straight-line method for Company employees and the graded-vesting method for members of the Board of Directors, and is measured using APEI’s stock price on the date of grant. The fair value of each option award is estimated at the date of grant using a Black-Scholes option-pricing model. Prior to 2012, the Company calculated the expected term of stock option awards using the “simplified method” in accordance with Securities and Exchange Commission Staff Accounting Bulletins No. 107 and 110 because the Company lacked historical data and was unable to make reasonable assumptions regarding the future. The Company also estimates forfeitures of share-based awards at the time of grant and revises such estimates in subsequent periods if actual forfeitures differ from original estimates. The Company makes assumptions with respect to expected stock price volatility based on the average historical volatility of peers with similar attributes. In addition, the Company determines the risk free interest rate by selecting the U.S. Treasury five-year constant maturity, quoted on an investment basis in effect at the time of grant for that business day. Estimates of fair value are subjective and are not intended to predict actual future events, and subsequent events are not necessarily indicative of the reasonableness of the original estimates of fair value made under FASB ASC Topic 718. A summary of the status of the Company’s Stock Incentive Plans as of December 31, 2013 and the changes during the periods then ended is as follows: Number of Options Weighted Average Exercise Price Weighted Average Contractual Life (years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2012 691,082 $ 26.59 Options granted — $ — Awards exercised (171,897 ) $ 18.92 Options forfeited (17,983 ) $ 37.64 Outstanding, December 31, 2013 501,202 $ 28.82 3.05 $ 7,343 Exercisable, December 31, 2013 445,564 $ 27.73 2.93 $ 7,012 A summary of the status of the Company’s Stock Incentive Plans as of December 31, 2014 and the changes during the periods then ended is as follows: Number of Options Weighted Average Exercise Price Weighted Average Contractual Life (years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2013 501,202 $ 28.82 Options granted — $ — Awards exercised (46,198 ) $ 13.66 Options forfeited (20,603 ) $ 37.04 Outstanding, December 31, 2014 434,401 $ 30.04 2.14 $ 3,080 Exercisable, December 31, 2014 434,401 $ 30.04 2.14 $ 3,080 A summary of the status of the Company’s Stock Incentive Plans as of December 31, 2015 and the changes during the periods then ended is as follows: Number of Options Weighted Average Exercise Price Weighted Average Contractual Life (years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2014 434,401 $ 30.04 Options granted — $ — Awards exercised (55,382 ) $ 3.29 Options forfeited (49,147 ) $ 35.97 Outstanding, December 31, 2015 329,872 $ 33.65 1.30 $ 359 Exercisable, December 31, 2015 329,872 $ 33.65 1.30 $ 359 The following table summarizes information regarding stock option exercises: 2013 2014 2015 (In thousands) Proceeds from stock options exercised $ 3,253 $ 631 $ 182 Intrinsic value of stock options exercised $ 3,667 $ 1,033 $ 1,057 Tax benefit from exercises $ 1,348 $ 193 $ 54 There were no outstanding options to purchase common shares that were excluded in the computation of diluted net income per common share for the year ended December 31, 2013 . There were 365,832 and 317,961 anti-dilutive stock options excluded from the calculation for the years ended December 31, 2014 and 2015 , respectively. Restricted Stock and Restricted Stock Units The table below sets forth the restricted stock and restricted stock unit activity for the year ended December 31, 2013 : Number of Shares Weighted Average Grant Price and Fair Value Non vested, December 31, 2012 136,397 $ 39.21 Shares granted 123,951 37.50 Vested shares (65,585 ) 37.70 Shares forfeited (4,002 ) 39.94 Non vested, December 31, 2013 190,761 $ 38.61 The table below sets forth the restricted stock and restricted stock unit activity for the year ended December 31, 2014 : Number of Shares Weighted Average Grant Price and Fair Value Non vested, December 31, 2013 190,761 $ 38.61 Shares granted 272,550 36.73 Vested shares (87,445 ) 38.69 Shares forfeited (15,097 ) 41.64 Non vested, December 31, 2014 360,769 $ 37.03 The table below sets forth the restricted stock and restricted stock unit activity for the year ended December 31, 2015 : Number of Shares Weighted Average Grant Price and Fair Value Non vested, December 31, 2014 360,769 $ 37.03 Shares granted 127,469 35.15 Vested shares (164,144 ) 37.85 Shares forfeited (30,675 ) 36.76 Non vested, December 31, 2015 293,419 $ 35.86 There were no shares of restricted stock or restricted stock units excluded in the computation of diluted net income per common share for the year ended December 31, 2015 . The Company recognized an income tax benefit of $1,294,000 , $1,880,000 , and $2,467,000 from vested restricted stock and restricted stock units for the years ended December 31, 2013 , 2014 and 2015 , respectively. At December 31, 2015 , total unrecognized compensation expense in the amount of $6.0 million relates to non-vested restricted stock and restricted stock units which will be recognized over a weighted average period of 1.4 years. During the years ended December 31, 2013 , 2014 and 2015 , the Company accepted for forfeiture 4,002 shares for $159,840 , 15,097 shares for $628,639 , and 22,066 shares for $815,886 , respectively, as a result of termination of employment. Repurchase During the year ended December 31, 2013 , the Company repurchased shares of the Company’s common stock, par value $0.01 per share. The chart below provides detail as to the Company’s repurchases during the period. Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) (3) January 1, 2013 — $ — — — $ 7,992,647 January 1, 2013 - January 31, 2013 3,638 $ 34.79 3,638 — 7,866,068 February 1, 2013 - February 28, 2013 — $ — 3,638 — 7,866,068 March 14, 2013 — $ — 3,638 — 22,866,068 March 1, 2013 - March 31, 2013 150,587 $ 32.30 154,225 — 18,001,740 April 1, 2013 - April 30, 2013 2,164 $ 33.00 156,389 — 17,930,337 May 1, 2013 - May 31, 2013 60,000 $ 32.55 216,389 — 15,977,321 June 1, 2013 - June 30, 2013 — $ — 216,389 — 15,977,321 July 1, 2013 - July 31, 2013 — $ — 216,389 — 15,977,321 August 1, 2013 - August 31, 2013 — $ — 216,389 — 15,977,321 September 1, 2013 - September 30, 2013 10,000 $ 37.91 226,389 — 15,598,221 October 1, 2013 - October 31, 2013 167,675 $ 36.86 394,064 — 9,417,721 November 1, 2013 - November 30, 2013 — $ — 394,064 — 9,417,721 December 1, 2013 - December 31, 2013 — $ — 394,064 — 9,417,721 Total 394,064 $ 34.47 394,064 — $ 9,417,721 During the year ended December 31, 2014 , the Company repurchased shares of the Company’s common stock, par value $0.01 per share. The chart below provides detail as to the Company’s repurchases during the period. Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) (3) January 1, 2014 — $ — — — $ 9,417,721 January 20, 2014 — $ — — 147,284 9,417,721 January 1, 2014 - January 30, 2014 — $ — — 147,284 9,417,721 February 1, 2014 - February 28, 2014 — $ — — 147,284 9,417,721 March 1, 2014 - March 31, 2014 40,000 $ 35.26 40,000 107,284 9,417,721 April 1, 2014 - April 30, 2014 185,000 $ 34.60 185,000 14,784 6,217,221 May 1, 2014 - May 31, 2014 139,568 $ 35.11 139,568 — 1,836,055 June 1, 2014 - June 30, 2014 51,760 $ 34.95 51,760 — 27,043 June 13, 2014 — $ — — — 15,027,043 July 1, 2014 - September 31, 2014 — $ — — — 15,027,043 October 1, 2014 - October 31, 2014 — $ — — 114,634 15,027,043 November 1, 2014 - November 30, 2014 30,000 $ 35.48 30,000 84,634 15,027,043 December 1, 2014 - December 31, 2014 84,634 $ 34.09 84,634 — 15,027,043 Total 530,962 $ 34.78 530,962 — $ 15,027,043 During the year ended December 31, 2015 , the Company repurchased shares of the Company’s common stock, par value $0.01 per share. The chart below provides detail as to the Company’s repurchases during the period. Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) (3) January 1, 2015 — $ — — — $ 15,027,043 January 1, 2015 - January 31, 2015 — $ — — 116,910 15,027,043 February 1, 2015 - February 28, 2015 — $ — — 116,910 15,027,043 March 1, 2015 - March 31, 2015 100,000 $ 31.69 100,000 66,910 13,442,543 April 1, 2015 - April 30, 2015 203,820 $ 30.84 203,820 — 9,220,841 May 1, 2015 - May 31, 2015 200,000 $ 25.59 200,000 — 4,102,131 June 1, 2015 - June 30, 2015 160,000 $ 24.93 160,000 — 114,029 June 30, 2015 — $ — — — 15,114,029 July 1, 2015 - July 31, 2015 — $ — — — 15,114,029 August 1, 2015 - August 31, 2015 — $ — — — 15,114,029 September 1, 2015 - September 30, 2015 129,849 $ 23.15 129,849 — 12,107,835 October 1, 2015 - October 31, 2015 211,040 $ 23.19 211,040 — 7,214,395 November 1, 2015 - November 30, 2015 199,391 $ 22.11 199,391 — 2,806,575 December 1, 2015 - December 31, 2015 118,746 $ 22.39 118,746 — 148,008 Total 1,322,846 $ 25.34 1,322,846 — $ 148,008 (1) On December 9, 2011, the Company’s Board of Directors approved a stock repurchase program for its common stock, under which the Company may annually purchase up to the cumulative number of shares issued or deemed issued in that year under the Company’s equity incentive and stock purchase plans. Repurchases may be made from time to time in the open market at prevailing market prices or in privately negotiated transactions based on business and market conditions. The stock repurchase program may be suspended or discontinued at any time, and will be funded using the Company’s available cash. (2) On May 14, 2012, our Board of Directors authorized a program to repurchase up to $20 million of shares of our common stock. On each of March 14, 2013, June 13, 2014, and June 12, 2015 our Board of Directors increased the authorization by an additional $15 million of shares, for a cumulative increase of $45 million of shares and a total authorization of $65 million of shares. Subject to market conditions, applicable legal requirements and other factors, the repurchases may be made from time to time in the open market or privately negotiated transactions. The authorization does not obligate us to acquire any shares, and purchases may be commenced or suspended at any time based on market conditions and other factors as we deem appropriate. (3) The Company was deemed to have repurchased 20,540 and 56,272 shares of common stock forfeited by employees to satisfy minimum tax-withholding requirements in connection with the vesting of restricted stock grants during the 12 months ended December 31, 2013 and 2015 , respectively. During the 12 months ended December 31, 2014 , the Company was deem to have repurchased 30,973 shares of common stock forfeited by employees to satisfy minimum tax-withholding requirements in connection with the vesting of restricted stock grants and to cover the exercise and minimum tax-withholding requirements of expiring stock options. These repurchases were not part of the stock repurchase program authorized by the Company’s Board of Directors. During the years ended December 31, 2013 , 2014 , and 2015 , the Company retired 394,064 , 530,962 , and 1,322,846 , shares of common stock, respectively, that had been previously repurchased and held in the Company’s treasury. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies From time to time the Company may be involved in litigation in the normal course of its business. The Company is not currently subject to any pending material legal proceedings. |
Concentration
Concentration | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration | Concentration APUS students utilize various payment sources and programs to finance tuition. These programs include funds from DoD tuition assistance programs, VA education benefit programs, and federal student aid from Title IV programs, as well as cash and other sources. Reductions in or changes to DoD tuition assistance, VA education benefits, Title IV programs and other payment sources could have a significant impact on the Company’s operations. As of December 31, 2015 approximately 56% of APUS students self-reported that they served in the military on active duty at the time of initial enrollment. Active duty military students generally take fewer courses per year on average than non-military students. A summary of APEI Segment revenue derived from students by primary funding source for the years ended December 31, 2013 , 2014 and 2015 is as follows: Year Ended December 31, 2013 2014 2015 Title IV programs 38% 36% 32% DoD tuition assistance programs 34% 35% 35% VA education benefits 16% 18% 21% Cash and other sources 12% 11% 12% As of December 31, 2015 approximately 86.1% of the HCON Segment’s revenue was derived from students who received federal student aid and approximately 2.4% of the HCON Segment’s revenue was derived from students who received veteran’s education benefits. A reduction in or change to any of these programs could have a significant impact on the Company’s operations and financial condition. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information On November 1, 2013, APEI acquired HCON and subsequently revised the Company’s segment reporting to maintain consistency with the method management uses to evaluate performance and allocate resources, as well as to provide additional information to shareholders. Accordingly, the Company has two operating segments that are managed in the following reportable segments: • American Public Education Segment, or APEI Segment; and • Hondros College of Nursing Segment, or HCON Segment. In accordance with FASB ASC Topic 280, Segment Reporting , the chief operating decision-maker has been identified as the Chief Executive Officer. The Chief Executive Officer reviews operating results to make decisions about allocating resources and assessing performance for APEI and HCON. A summary of financial information by reportable segment is as follows (in thousands): Year Ended December 31, 2013 2014 2015 Revenue American Public Education Segment $ 325,678 $ 319,879 $ 297,439 Hondros College of Nursing Segment 3,801 30,141 30,471 Total Revenue $ 329,479 $ 350,020 $ 327,910 Depreciation and Amortization American Public Education Segment $ 13,344 $ 14,859 $ 19,337 Hondros College of Nursing Segment 164 1,262 1,183 Total Depreciation and Amortization $ 13,508 $ 16,121 $ 20,520 Income from continuing operations before interest income and income taxes American Public Education Segment $ 67,161 $ 62,499 $ 48,967 Hondros College of Nursing Segment 276 3,333 3,314 Total income from continuing operations before interest income and income taxes $ 67,437 $ 65,832 $ 52,281 Interest Income, Net American Public Education Segment $ 308 $ 361 $ 115 Hondros College of Nursing Segment 0 0 0 Total Interest Income, Net $ 308 $ 361 $ 115 Income Tax Expense American Public Education Segment $ 25,635 $ 23,861 $ 18,788 Hondros College of Nursing Segment 10 1,289 1,284 Total Income Tax Expense $ 25,645 $ 25,150 $ 20,072 Capital Expenditures American Public Education Segment $ 20,642 $ 24,273 $ 24,541 Hondros College of Nursing Segment 7 323 1,461 Total Capital Expenditures $ 20,649 $ 24,596 $ 26,002 A summary of the Company’s consolidated assets by reportable segment is as follows (in thousands): As of December 31, 2014 2015 Assets American Public Education Segment $ 245,544 $ 250,118 Hondros College of Nursing Segment 52,360 53,778 Total Assets $ 297,904 $ 303,896 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets In connection with its November 1, 2013 acquisition of HCON, the Company recorded $ 38.6 million of goodwill. Goodwill represents the excess of the purchase price over the amount assigned to the net assets acquired and the fair value assigned to identified intangible assets. The Company intends to conduct an annual goodwill impairment test on or around each anniversary date of the acquisition. For additional information regarding the Company’s accounting for its acquisition of HCON, please refer to Note 2, “Acquisition Accounting” of these Notes to Consolidated Financial Statements. In addition to goodwill, HCON recorded a total of $8.1 million of other identifiable intangible assets at the acquisition date. HCON recorded identified intangible assets with an indefinite useful life in the aggregate amount of $3.7 million , which includes trade names, accreditation, licensing and Title IV, and affiliate agreements. HCON recorded $4.4 million of identified intangible assets with a definite useful life. At the acquisition date, the useful life assigned to each type of intangible asset with a definite useful life was as follows: Useful Life Student contracts and relationships 6 years Curricula 3 years Non-compete agreements 5 years The future amortization of intangible assets is as follows (in thousands): 2016 $ 710 2017 598 2018 563 2019 322 2020 and beyond — Total $ 2,193 Changes in the carrying amount of goodwill by reportable segment during fiscal year ending December 31, 2014 are as follows (in thousands): APEI Segment HCON Segment Total Goodwill Goodwill as of December 31, 2013 $ — $ 38,148 $ 38,148 Goodwill acquired (1) — — — Impairment — — — Section 338(h)(10) adjustment — 486 486 Goodwill as of December 31, 2014 $ — $ 38,634 $ 38,634 Changes in the carrying amount of goodwill by reportable segment during fiscal year ending December 31, 2015 are as follows (in thousands): APEI Segment HCON Segment Total Goodwill Goodwill as of December 31, 2014 $ — $ 38,634 $ 38,634 Goodwill acquired (1) — — — Impairment — — — Section 338(h)(10) adjustment — — — Goodwill as of December 31, 2015 $ — $ 38,634 $ 38,634 The following table presents the components of the net carrying amount of goodwill by reportable segment as of December 31, 2014 (in thousands): APEI Segment HCON Segment Total Goodwill Gross carrying amount of Goodwill as of December 31, 2014 $ — $ 38,634 $ 38,634 Accumulated impairment — — — Net Carrying amount of Goodwill as of December 31, 2014 $ — $ 38,634 $ 38,634 The following table presents the components of the net carrying amount of goodwill by reportable segment as of December 31, 2015 (in thousands): APEI Segment HCON Segment Total Goodwill Gross carrying amount of Goodwill as of December 31, 2015 $ — $ 38,634 $ 38,634 Accumulated impairment — — — Net Carrying amount of Goodwill as of December 31, 2015 $ — $ 38,634 $ 38,634 Other intangible assets consist of the following as of December 31, 2015 (in thousands): 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets Curricula $ 405 $ 293 $ 112 Non-compete agreements 86 37 49 Student contracts and relationships 3,870 1,838 2,032 Total finite-lived intangible assets 4,361 2,168 2,193 Indefinite-lived intangible assets Trade name 1,998 — 1,998 Accreditation, licensing and Title IV 1,686 — 1,686 Affiliation agreements 37 — 37 Total indefinite-lived intangible assets 3,721 — 3,721 Total intangible assets $ 8,082 $ 2,168 $ 5,914 Identified intangible assets are amortized in a manner that reflects the estimated economic benefit of the intangible assets. Curricula and Non-compete agreements are amortized on a straight-line basis. Student contracts and relationships are amortized using an accelerated method. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 19, 2016, the Company received the Department of Education’s approval of its change-in-ownership application for the HCON acquisition. HCON subsequently entered into a Provisional Program Participation Agreement, expiring in December 2018, which requires HCON to comply with specific conditions while provisionally certified to participate in Title IV programs. On February 1, 2016, the Company made an additional $950,000 investment in preferred stock of Fidelis Education, Inc., or Fidelis Education, increasing its investment in Fidelis Education to approximately 22% of its fully diluted equity. In connection with the investment, the Company is entitled to certain rights, including the retention of its right to representation on the Board of Directors of Fidelis Education. For additional information on the Company’s investment in Fidelis Education, please refer to Note 1, “Nature of Business and Significant Accounting Policies” of these Notes to Consolidated Financial Statements. |
Quarterly Financial Summary (un
Quarterly Financial Summary (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Summary (unaudited) | Quarterly Financial Summary (unaudited) The following unaudited consolidated interim financial information presented should be read in conjunction with other information included in the Company’s consolidated financial statements. In the opinion of management, the following unaudited consolidated financial information reflects all adjustments necessary for the fair presentation of the results of interim periods. Historical results are not necessarily indicative of the results of operations to be expected for future periods. The following tables set forth selected unaudited quarterly financial information for each of the Company’s last eight quarters: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (in thousands, except per share data) 2015 Revenue $ 85,444 $ 80,263 $ 76,291 $ 85,912 Income before income taxes 14,481 11,607 10,549 15,759 Net income 8,793 7,073 6,757 9,791 Net income per common share: Basic $ 0.51 $ 0.42 $ 0.41 $ 0.61 Diluted $ 0.51 $ 0.42 $ 0.41 $ 0.60 2014 Revenue $ 88,553 $ 85,463 $ 84,708 $ 91,297 Income before income taxes 16,806 15,933 14,745 18,709 Net income 10,436 9,802 8,842 11,797 Net income per common share: Basic $ 0.59 $ 0.56 $ 0.51 $ 0.69 Diluted $ 0.59 $ 0.56 $ 0.51 $ 0.68 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | AMERICAN PUBLIC EDUCATION, INC. Schedule II Valuation and Qualifying Accounts Balance at Additions/ (Reductions) (1) Write-Offs Balance at (in thousands) Year ended December 31, 2015: American Public Education Segment $ 8,461 $ 11,203 $ (9,378 ) $ 10,286 Hondros College of Nursing Segment 2,238 1,511 (1,023 ) 2,726 Allowance for receivables 10,699 12,714 (10,401 ) 13,012 Year ended December 31, 2014: American Public Education Segment $ 11,452 $ 17,480 $ (20,471 ) $ 8,461 Hondros College of Nursing Segment 1,723 1,344 (829 ) 2,238 Allowance for receivables $ 13,175 $ 18,824 $ (21,300 ) $ 10,699 Year ended December 31, 2013: American Public Education Segment $ 11,106 $ 14,011 $ (13,665 ) $ 11,452 Hondros College of Nursing Segment (1) $ — $ 1,723 $ — $ 1,723 Allowance for receivables $ 11,106 $ 15,734 $ (13,665 ) $ 13,175 (1) Hondros College of Nursing additions include a $1.461 million beginning balance as of November 1, 2013. |
Nature of Business and Signif21
Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of accounting | Basis of accounting. The accompanying financial statements are presented in accordance with the accrual basis of accounting, whereby revenue is recognized when earned and expenses are recognized when incurred. |
Principles of consolidation | Principles of consolidation. The accompanying consolidated financial statements include accounts of APEI and its wholly-owned subsidiaries. All material inter-company transactions and balances have been eliminated in consolidation. |
Cash and cash equivalents | Cash and cash equivalents. The Company considers all highly liquid investments with original maturities of ninety days or less when purchased to be cash equivalents. |
Restricted Cash | Restricted Cash. Cash and cash equivalents includes funds held for students for unbilled educational services that were received from Title IV programs. As a trustee of these Title IV program funds, we are required to maintain and restrict these funds pursuant to the terms of our program participation agreement with the U.S. Department of Education. |
Accounts receivable | Accounts receivable. Course tuition is recorded as accounts receivable and deferred revenue at the time students begin a course or term. Students may remit tuition payments at any time or they may elect various other payment options which can delay the receipt of payment up until the course or term starts or longer. These other payment options include payments by sponsors, financial aid, alternative loans, or a tuition assistance program that remits payments directly to the subsidiary. When a student remits payment after a course or term has begun, accounts receivable is reduced. If payment is made prior to the start of a course or term, the payment is recorded as a student deposit, and the student is provided access to the online classroom when courses start, in the case of APUS, or allowed to start the term, in the case of HCON. If one of the various other payment options are confirmed as secured, the student is provided access to the online classroom or allowed to start the term. Generally, if no receipt is confirmed or payment option secured, the student will be dropped from the online course or not allowed to start the term. Therefore, billed amounts represent charges that have been prepared and sent to students or the applicable third party payor according to the terms agreed upon in advance. Department of Defense, or DoD, tuition assistance programs are billed by branch of service on a course-by-course basis when a student starts a course, whereas Title IV programs are billed based on the courses included in a student’s semester. Billed accounts receivable are considered past due if the invoice has been outstanding for more than 30 days. The allowance for doubtful accounts is based on management’s evaluation of the status of existing accounts receivable. Among other factors, management considers the age of the receivable, the anticipated source of payment and the Company’s historical allowance considerations. Consideration is also given to any specific known risk areas among the existing accounts receivable balances. Recoveries of receivables previously written off are recorded when received. The Company does not charge interest on its past due accounts receivable. |
Property and equipment | Property and equipment. All property and equipment are carried at cost less accumulated depreciation, except the acquired assets of HCON, which were recorded at fair value at the acquisition date. Depreciation and amortization are calculated on a straight-line basis over the estimated useful lives of the assets. Our Partnership At a Distance TM system, or PAD, is a customized student information and services system used by APUS to manage admissions, online orientation, course registrations, tuition payments, grade reporting, progress toward degrees, and various other functions. Costs associated with this system have been capitalized in accordance with Financial Accounting Standards Board Accounting Standards Codification, or FASB ASC, Subtopic 350-40, Accounting for the Costs of Computer Software Developed or Obtained for Internal Use , and classified as property and equipment. These costs are amortized over the estimated useful life of five years . The Company also capitalizes certain costs for academic program development. These costs are transferred to property and equipment upon completion of each program and amortized over an estimated life not to exceed three years . |
Investments | Investments. On September 30, 2012, the Company made a $6.8 million investment in preferred stock of NWHW Holdings, Inc., or NWHW Holdings, a holding company that operates New Horizons Worldwide, Inc., or New Horizons, representing approximately 19.9% of the fully diluted equity of NWHW Holdings. New Horizons is a global IT training company operating over 300 locations around the world through franchise arrangements in 70 countries. In connection with the investment, the Company is entitled to certain rights, including the right to representation on the Board of Directors of NWHW Holdings. The Company accounts for its investment in New Horizons under the equity method of accounting. Therefore, the Company recorded the investment at cost and recognizes its share of earnings or losses in the investee in the periods for which they are reported with a corresponding adjustment in the carrying amount of the investment. On February 20, 2013, the Company made a $4.0 million investment in preferred stock of Fidelis Education, Inc., or Fidelis Education, representing approximately 21.6% of its fully diluted equity. Fidelis Education offers a learning relationship management platform that has the goal of improving education advising and career mentoring services offered to students as they pursue college degrees. In connection with the investment, the Company is entitled to certain rights, including the right to representation on the Board of Directors of Fidelis Education. The Company accounts for its investment in Fidelis Education under the equity method of accounting. Therefore, the Company recorded the investment at cost and recognizes its share of earnings or losses in the investee in the periods for which they are reported with a corresponding adjustment in the carrying amount of the investment. For information on an additional investment by the Company in Fidelis Education in February 2016, please refer to Note 12, “Subsequent Events” of these Notes to Consolidated Financial Statements. On April 2, 2014, the Company made a $1.5 million investment in preferred stock of Second Avenue Software, Inc., or Second Avenue Software, representing approximately 25.9% of its fully diluted equity. Second Avenue Software is a game-based education software company that develops software on a proprietary and “work-for-hire” basis. In connection with the investment, the Company is entitled to certain rights, including the right to representation on the Board of Directors of Second Avenue Software. The Company accounts for its investment in Second Avenue Software under the equity method of accounting. Therefore, the Company recorded the investment at cost and recognizes its share of earnings or losses in the investee in the periods for which they are reported with a corresponding adjustment in the carrying amount of the investment. On December 21, 2015, the Company made a $3.5 million investment in preferred stock of an online social networking company representing approximately 13.8% of its fully diluted equity. The Company accounts for its investment in the online social networking company using the cost method of accounting. The Company evaluated its cost method investments for impairment as of December 31, 2015 and estimated that the fair value of its cost method investments was at least equal to its carrying value as of that date. The Company had no investments that were presented as cost method investments on its Consolidated Balance Sheet as of December 31, 2014 . The aggregate carrying amount of the Company’s cost method investments presented on its Consolidated Balance Sheet as of December 31, 2015 is $4.1 million . Unless indicators of impairment exist, the fair value of the Company’s cost method investments are not estimated in any period where it is not practicable to estimate the fair value of such investments. |
Notes Receivable | Note Receivable. The Company evaluates notes receivable by analyzing the borrower’s creditworthiness, cash flows and financial status, and the condition and estimated value of the collateral. The Company considers a note to be impaired when, based upon current information and events, management believes it is probable that the Company will be unable to collect all amounts due according to the terms of the note. In connection with the Company’s minority investment in NWHW Holdings, the Company extended $6.0 million in credit to New Horizons in exchange for a subordinated note. The note was interest only and was scheduled to mature on September 28, 2018 . Interest was payable monthly at a rate of 5.0% per annum during the first five years of the note and monthly at a rate of 6.0% per annum in the sixth year. On December 16, 2014, New Horizons prepaid the subordinated note in full, including pro rata interest owed. |
Goodwill and indefinite-lived intangible assets | Goodwill and indefinite-lived intangible assets. Goodwill represents the excess of the purchase price of an acquired business over the amount assigned to the assets acquired and liabilities assumed. Goodwill and the indefinite-lived intangible assets are assessed at least annually for impairment, or more frequently if events occur or circumstances change between annual tests that would more likely than not reduce the fair value of the respective reporting unit below its carrying amount. Under Accounting Standards Update No. 2011-08, Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment , the Company is permitted, but not required, to first assess qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test. |
Valuation of long-lived assets | Valuation of long-lived assets. The Company accounts for the valuation of long-lived assets under FASB ASC Topic 360, Accounting for the Impairment or Disposal of Long-Lived Assets. FASB ASC Topic 360 requires that long-lived assets and certain identifiable intangible assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the long-lived asset is measured by a comparison of the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Assets to be disposed of are reportable at the lower of the carrying amount or fair value, less costs to sell. |
Revenue recognition | Revenue recognition. The Company records all tuition as deferred revenue when a student begins an online course, in the case of APUS, or starts a term, in the case of HCON. At the beginning of each course or term, revenue is recognized on a pro rata basis over the period of the course or term, which is, for APUS, either an eight - or sixteen -week period and, for HCON, a quarterly term. This results in deferred revenue on the Company’s Consolidated Balance Sheets that includes future revenue that has not yet been earned for courses and terms that are in progress. The revenue recognition policies of each of the Company’s reportable segments is discussed below. American Public University System. APUS’s tuition revenue varies from period to period based on the number of net course registrations. Students may remit tuition payments through the online registration process at any time or they may elect various payment options, including payments by sponsors, alternative loans, financial aid, or the DoD tuition assistance program which remits payments directly to APUS. These other payment options can delay the receipt of payment up until the course starts or longer, resulting in the recording of an accounts receivable at the beginning of each session. Tuition revenue for sessions in progress that has not been earned by APUS is presented as deferred revenue in the accompanying Consolidated Balance Sheets. APUS refunds 100% of tuition for courses that are dropped by students before the conclusion of the first seven days of a course. Because courses begin the first Monday of every month and penalty free drops occur by the second Monday of every month, the Company does not recognize revenue for dropped courses. After a course begins, if a student does not drop the course within the first seven days, APUS uses the following refund policy: 8-Week Course- Tuition Refund Schedule Withdrawal Date Tuition Refund Percentage Before or During Week 1 100% During Week 2 75% During Weeks 3 and 4 50% During Weeks 5 through 8 No Refund 16-Week Course- Tuition Refund Schedule Withdrawal Date Tuition Refund Percentage Before or During Week 1 100% During Week 2 100% During Weeks 3 and 4 75% During Weeks 5 through 8 50% During Weeks 9 through 16 No Refund Prior to January 1, 2016, alternative refund policies applied to students in certain states as a result of specific state and other local requirements. However, beginning January 1, 2016, APUS is not aware of any state specific refund policies that will be applicable. APUS recognizes revenue on a pro rata basis over the period of its courses as APUS completes the tasks entitling it to the benefits represented by such revenue. If a student withdraws during the academic term, APUS recognizes as revenue the remaining non-refundable amount due from the student in the period the withdrawal occurs. The calculation of the remaining non-refundable amount is based upon the APUS student refund policy. For those students who have an outstanding receivable balance at the date of withdrawal, APUS assesses collectability and only recognizes as revenue those amounts where collectability is reasonably assured based on APUS’s history with similar student accounts. This policy was implemented on January 1, 2015. Previously, APUS recognized revenue for all student withdrawals and established an allowance for those receivables considered uncollectible. The Company does not believe that this change in policy has had or will have a material effect on its results of operations or financial condition. Other revenue includes charges for transcript credit evaluation, which includes assistance in securing official transcripts on behalf of the student in addition to evaluating transcripts for transfer credit, and a technology fee per course. APUS provides a grant to cover the technology fee for students using DoD tuition assistance programs. Prior to April 2015, APUS provided a grant to cover the technology fee for students using education benefit programs administered by the U.S. Department of Veterans Affairs, or VA. After April 1, 2015, the technology fee grant was no longer applied to students using VA education benefits. Students also are charged graduation, late registration, transcript request and comprehensive examination fees, when applicable. In accordance with FASB ASC Topic 605-50, Accounting by a Customer (Including a Reseller) for Certain Consideration Received from a Vendor , other fees also include book purchase commissions APUS receives for graduate student book purchases and ancillary supply purchases students make directly from APUS’s preferred book vendor. Hondros College of Nursing. HCON’s tuition revenue varies from period to period based on the number of students enrolled and the programs they are enrolled in. Students may remit tuition payments at any time, or they may elect various payment options that can delay receipt of payment up until the term starts or longer. These other payment options include payments by sponsors, financial aid, alternative loans, or payment plan options. If one of the various other payment options are confirmed as secured, the student is allowed to start the term. All financial aid is awarded prior to the start of the term and requests for authorization of disbursement begin in the first week of the term. Tuition revenue for the term in progress that has not yet been earned by HCON is presented as deferred revenue in the accompanying Consolidated Balance Sheets. HCON’s refund policy complies with the rules of the Ohio State Board of Career Colleges and Schools and is applicable to each term. For a course with an on-campus or other in-person component, the date of withdrawal is determined by a student’s last attended day of clinical offering, laboratory session, or lecture. For an online course, the date of withdrawal is determined by a student's last submitted assignment in the course. HCON uses the following refund policy: Withdrawal Date Tuition Refund Percentage Before first full calendar week of the quarter 100% plus registration fee During first full calendar week of the quarter 75% , plus registration fee During second full calendar week of the quarter 50% , plus registration fee During third full calendar week of the quarter 25% , plus registration fee During fourth full week of the quarter No Refund Alternative refund policies may apply to students of certain states in accordance with specific state and other local requirements. |
Advertising costs | Advertising costs. Advertising costs are expensed as incurred. Advertising expenses for the years ended December 31, 2013 , 2014 and 2015 were $46,995,000 , $50,950,000 and $42,226,000 respectively, and are included in selling and promotion costs in the accompanying Consolidated Statements of Income. |
Income taxes | Income taxes. Deferred taxes are determined using the liability method, whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. As these differences reverse, they will enter into the determination of future taxable income. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment of such changes. There were no material uncertain tax positions as of December 31, 2013 , 2014 and 2015 . Interest and penalties associated with uncertain income tax positions would be classified as income tax expense. The Company has not recorded any material interest or penalties during any of the years presented. |
Stock-based compensation | Stock-based compensation. The Company applies FASB ASC Topic 718, Share-Based Payment , which requires companies to expense share-based compensation based on fair value. |
Income per common share | Income per common share. Basic net income per common share is based on the weighted average number of shares of common stock outstanding during the period. Diluted net income per common share increases the shares used in the per share calculation by the dilutive effects of options, warrants, and restricted stock. |
Fair value of financial instruments | Fair value of financial instruments. The carrying amounts of cash and cash equivalents, tuition receivable, accounts payable, and accrued liabilities approximate fair value because of the short maturity of these instruments. |
Concentration of credit risk | Concentration of credit risk. The Company maintains its cash and cash equivalents in bank deposit accounts with various financial institutions. Cash and cash equivalent balances may exceed the FDIC insurance limit. The Company has historically not experienced any losses in such accounts. |
Estimates | Estimates. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Accounting Pronouncements | Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. As originally issued, ASU 2014-09 would have been effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption not permitted. Accordingly, the standard would only be effective for the Company for periods beginning on or after January 1, 2017. However, on July 9, 2015, the FASB voted to approve a one-year deferral of the effective date of the new revenue recognition standard with early adoption permitted. Public companies will now apply the new revenue standard to annual reporting periods beginning after December 15, 2017, and to all interim reporting periods within the year of adoption. Accordingly, the revised revenue recognition standard will be effective for the Company for the year ending December 31, 2018, with early adoption permitted for annual periods beginning after December 16, 2016. The revised standard will be effective for all interim periods within the year of adoption. The Company is currently evaluating, but has not yet determined, the impact that implementation of this standard may have on the Company’s Consolidated Financial Statements and disclosures. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). The standard requires that deferred tax assets and liabilities be classified as noncurrent on the balance sheet rather than being separated into current and noncurrent. ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities. The Company is currently evaluating, but has not yet determined, the impact that implementation of this standard may have on the Company’s Consolidated Financial Statements and disclosures. |
Nature of Business and Signif22
Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of deferred revenue and student deposits | Deferred revenue and student deposits at December 31, 2014 and 2015 consisted of the following (in thousands): As of December 31, 2014 2015 Deferred revenue $ 13,367 $ 17,239 Student deposits 10,438 12,488 Total deferred revenue and student deposits $ 23,805 $ 29,727 |
Summary of stock-based compensation | The following amounts of stock-based compensation have been included in the operating expense line-items indicated (in thousands): Year Ended December 31, 2013 2014 2015 Instructional costs and services $ 876 $ 1,274 $ 1,598 Selling and promotional 444 568 684 General and administrative 2,704 3,527 3,630 Total stock-based compensation expense $ 4,024 $ 5,369 $ 5,912 |
APUS | |
Schedule of refund policy | After a course begins, if a student does not drop the course within the first seven days, APUS uses the following refund policy: 8-Week Course- Tuition Refund Schedule Withdrawal Date Tuition Refund Percentage Before or During Week 1 100% During Week 2 75% During Weeks 3 and 4 50% During Weeks 5 through 8 No Refund 16-Week Course- Tuition Refund Schedule Withdrawal Date Tuition Refund Percentage Before or During Week 1 100% During Week 2 100% During Weeks 3 and 4 75% During Weeks 5 through 8 50% During Weeks 9 through 16 No Refund |
HCON | |
Schedule of refund policy | HCON uses the following refund policy: Withdrawal Date Tuition Refund Percentage Before first full calendar week of the quarter 100% plus registration fee During first full calendar week of the quarter 75% , plus registration fee During second full calendar week of the quarter 50% , plus registration fee During third full calendar week of the quarter 25% , plus registration fee During fourth full week of the quarter No Refund |
Acquisition Accounting (Tables)
Acquisition Accounting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of fair value of identified intangible assets acquired | The fair value of identified intangible assets acquired was determined using one of the following three valuation methodologies: • Cost approach; • Income approach; or • Market approach. (in thousands) Fair value consideration transferred: Cash $ 46,128 Fair Value of IRC 338(h)(10) election 636 Total fair value consideration transferred $ 46,764 Recognized amounts of identifiable tangible assets acquired and liabilities assumed: Assets acquired $ 4,834 Liabilities assumed 4,786 Assets acquired in excess of liabilities assumed $ 48 Useful Life Recognized identified intangible assets: Student contracts and relationships 6 years $ 3,870 Trade name 1,998 Curricula 3 years 405 Accreditation, licensing and Title IV 1,686 Affiliate agreements 37 Non-compete agreements 5 years 86 Total recognized identified intangible assets $ 8,082 Goodwill $ 38,634 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment at December 31, 2014 and 2015 consisted of the following: Useful 2014 2015 (in thousands) Land — $ 9,244 $ 9,501 Building and building improvements 27.5 - 39 years 52,938 58,429 Leasehold improvements up to 15 years 2,391 1,002 Office equipment 5 years 2,351 2,322 Computer equipment 3 years 22,615 25,179 Furniture and fixtures 7 years 7,533 8,124 Other Capitalizable Assets 1 - 5 years 708 1,829 Software development 5 years 64,593 74,737 Program development 3 years 4,110 4,920 166,483 186,043 Accumulated depreciation and amortization 64,059 76,762 $ 102,424 $ 109,281 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Schedule of minimum rental commitment due under the operating leases | The minimum rental commitments due under the operating leases are as follows (in thousands): Years Ending December 31, Combined 2016 $ 2,003 2017 2,023 2018 1,690 2019 1,530 2020 and beyond 8,566 Total minimum rental commitment $ 15,812 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense | The components of income tax expense for the years ended December 31, 2013 , 2014 and 2015 were as follows (in thousands): 2013 2014 2015 Current income tax expense: Federal $ 20,533 $ 19,404 $ 17,910 State 3,094 3,252 2,322 23,627 22,656 20,232 Deferred tax expense: Federal 1,858 2,623 (241 ) State 160 (129 ) 81 2,018 2,494 (160 ) Income Tax Expense $ 25,645 $ 25,150 $ 20,072 |
Schedule of tax effects of principal temporary differences | The tax effects of principal temporary differences are as follows (in thousands): 2014 2015 Deferred tax assets: Property and equipment $ 9,215 $ 13,629 Stock option compensation expense 1,556 1,336 Allowance for doubtful accounts 3,846 4,988 Accrued vacation and severance 549 576 Restricted stock 1,818 1,830 Investment 100 19 17,084 22,378 Deferred tax liabilities: Income tax deductible capitalized software development costs (24,750 ) (29,592 ) Prepaid expenses (1,724 ) (2,016 ) (26,474 ) (31,608 ) Deferred tax liabilities, net $ (9,390 ) $ (9,230 ) |
Schedule of difference of income tax expense from the United States Federal income tax rates | Income tax expense differs from the amount of tax determined by applying the United States Federal income tax rates to pretax income and loss due to permanent tax differences, and the application of state apportionment laws, as follows (in thousands): 2013 2014 2015 Amount % Amount % Amount % Tax expense at statutory rate $ 23,688 35.00 % $ 23,110 35.00 % $ 18,370 35.00 % State taxes, net 2,069 3.06 % 1,985 3.01 % 1,590 3.03 % Permanent differences (275 ) (0.41 )% 228 0.35 % 278 0.53 % Other 163 0.24 % (173 ) (0.27 )% (166 ) (0.32 )% $ 25,645 37.89 % $ 25,150 38.09 % $ 20,072 38.24 % |
Other Employee Benefits (Tables
Other Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | |
Schedule of shares purchased in open market for employees | Shares purchased in the open market for issuance to employees pursuant to the plan for the years ended December 31, 2013 , 2014 and 2015 were as follows: Purchase Date Shares Common Stock Fair Value Purchase Price Compensation Expense March 31, 2013 4,760 $ 34.89 $ 29.66 $ 24,895 June 30, 2013 4,726 $ 37.16 $ 31.59 $ 26,324 September 30, 2013 4,226 $ 37.80 $ 32.13 $ 23,961 December 31, 2013 4,556 $ 43.47 $ 36.95 $ 29,705 Total/Weighted Average 18,268 $ 38.29 $ 32.55 $ 104,885 March 31, 2014 4,961 $ 35.08 $ 29.82 $ 26,095 June 30, 2014 5,180 $ 34.38 $ 29.22 $ 26,729 September 30, 2014 5,246 $ 26.99 $ 22.94 $ 21,246 December 31, 2014 3,931 $ 36.87 $ 31.34 $ 21,738 Total/Weighted Average 19,318 $ 33.06 $ 28.10 $ 95,808 March 31, 2015 4,322 $ 29.98 $ 25.49 $ 19,406 June 30, 2015 5,443 $ 25.72 $ 21.86 $ 21,010 September 30, 2015 4,939 $ 23.45 $ 19.93 $ 17,385 December 31, 2015 6,822 $ 18.61 $ 15.82 $ 19,033 Total/Weighted Average 21,526 $ 23.80 $ 20.23 $ 76,834 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Summary of status of stock incentive plans and changes during periods | A summary of the status of the Company’s Stock Incentive Plans as of December 31, 2013 and the changes during the periods then ended is as follows: Number of Options Weighted Average Exercise Price Weighted Average Contractual Life (years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2012 691,082 $ 26.59 Options granted — $ — Awards exercised (171,897 ) $ 18.92 Options forfeited (17,983 ) $ 37.64 Outstanding, December 31, 2013 501,202 $ 28.82 3.05 $ 7,343 Exercisable, December 31, 2013 445,564 $ 27.73 2.93 $ 7,012 A summary of the status of the Company’s Stock Incentive Plans as of December 31, 2014 and the changes during the periods then ended is as follows: Number of Options Weighted Average Exercise Price Weighted Average Contractual Life (years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2013 501,202 $ 28.82 Options granted — $ — Awards exercised (46,198 ) $ 13.66 Options forfeited (20,603 ) $ 37.04 Outstanding, December 31, 2014 434,401 $ 30.04 2.14 $ 3,080 Exercisable, December 31, 2014 434,401 $ 30.04 2.14 $ 3,080 A summary of the status of the Company’s Stock Incentive Plans as of December 31, 2015 and the changes during the periods then ended is as follows: Number of Options Weighted Average Exercise Price Weighted Average Contractual Life (years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2014 434,401 $ 30.04 Options granted — $ — Awards exercised (55,382 ) $ 3.29 Options forfeited (49,147 ) $ 35.97 Outstanding, December 31, 2015 329,872 $ 33.65 1.30 $ 359 Exercisable, December 31, 2015 329,872 $ 33.65 1.30 $ 359 |
Summary of information regarding stock option exercises | The following table summarizes information regarding stock option exercises: 2013 2014 2015 (In thousands) Proceeds from stock options exercised $ 3,253 $ 631 $ 182 Intrinsic value of stock options exercised $ 3,667 $ 1,033 $ 1,057 Tax benefit from exercises $ 1,348 $ 193 $ 54 |
Summary of restricted stock and restricted stock units activity | The table below sets forth the restricted stock and restricted stock unit activity for the year ended December 31, 2013 : Number of Shares Weighted Average Grant Price and Fair Value Non vested, December 31, 2012 136,397 $ 39.21 Shares granted 123,951 37.50 Vested shares (65,585 ) 37.70 Shares forfeited (4,002 ) 39.94 Non vested, December 31, 2013 190,761 $ 38.61 The table below sets forth the restricted stock and restricted stock unit activity for the year ended December 31, 2014 : Number of Shares Weighted Average Grant Price and Fair Value Non vested, December 31, 2013 190,761 $ 38.61 Shares granted 272,550 36.73 Vested shares (87,445 ) 38.69 Shares forfeited (15,097 ) 41.64 Non vested, December 31, 2014 360,769 $ 37.03 The table below sets forth the restricted stock and restricted stock unit activity for the year ended December 31, 2015 : Number of Shares Weighted Average Grant Price and Fair Value Non vested, December 31, 2014 360,769 $ 37.03 Shares granted 127,469 35.15 Vested shares (164,144 ) 37.85 Shares forfeited (30,675 ) 36.76 Non vested, December 31, 2015 293,419 $ 35.86 |
Summary of repurchases during the period | The chart below provides detail as to the Company’s repurchases during the period. Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) (3) January 1, 2013 — $ — — — $ 7,992,647 January 1, 2013 - January 31, 2013 3,638 $ 34.79 3,638 — 7,866,068 February 1, 2013 - February 28, 2013 — $ — 3,638 — 7,866,068 March 14, 2013 — $ — 3,638 — 22,866,068 March 1, 2013 - March 31, 2013 150,587 $ 32.30 154,225 — 18,001,740 April 1, 2013 - April 30, 2013 2,164 $ 33.00 156,389 — 17,930,337 May 1, 2013 - May 31, 2013 60,000 $ 32.55 216,389 — 15,977,321 June 1, 2013 - June 30, 2013 — $ — 216,389 — 15,977,321 July 1, 2013 - July 31, 2013 — $ — 216,389 — 15,977,321 August 1, 2013 - August 31, 2013 — $ — 216,389 — 15,977,321 September 1, 2013 - September 30, 2013 10,000 $ 37.91 226,389 — 15,598,221 October 1, 2013 - October 31, 2013 167,675 $ 36.86 394,064 — 9,417,721 November 1, 2013 - November 30, 2013 — $ — 394,064 — 9,417,721 December 1, 2013 - December 31, 2013 — $ — 394,064 — 9,417,721 Total 394,064 $ 34.47 394,064 — $ 9,417,721 During the year ended December 31, 2014 , the Company repurchased shares of the Company’s common stock, par value $0.01 per share. The chart below provides detail as to the Company’s repurchases during the period. Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) (3) January 1, 2014 — $ — — — $ 9,417,721 January 20, 2014 — $ — — 147,284 9,417,721 January 1, 2014 - January 30, 2014 — $ — — 147,284 9,417,721 February 1, 2014 - February 28, 2014 — $ — — 147,284 9,417,721 March 1, 2014 - March 31, 2014 40,000 $ 35.26 40,000 107,284 9,417,721 April 1, 2014 - April 30, 2014 185,000 $ 34.60 185,000 14,784 6,217,221 May 1, 2014 - May 31, 2014 139,568 $ 35.11 139,568 — 1,836,055 June 1, 2014 - June 30, 2014 51,760 $ 34.95 51,760 — 27,043 June 13, 2014 — $ — — — 15,027,043 July 1, 2014 - September 31, 2014 — $ — — — 15,027,043 October 1, 2014 - October 31, 2014 — $ — — 114,634 15,027,043 November 1, 2014 - November 30, 2014 30,000 $ 35.48 30,000 84,634 15,027,043 December 1, 2014 - December 31, 2014 84,634 $ 34.09 84,634 — 15,027,043 Total 530,962 $ 34.78 530,962 — $ 15,027,043 During the year ended December 31, 2015 , the Company repurchased shares of the Company’s common stock, par value $0.01 per share. The chart below provides detail as to the Company’s repurchases during the period. Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) (3) January 1, 2015 — $ — — — $ 15,027,043 January 1, 2015 - January 31, 2015 — $ — — 116,910 15,027,043 February 1, 2015 - February 28, 2015 — $ — — 116,910 15,027,043 March 1, 2015 - March 31, 2015 100,000 $ 31.69 100,000 66,910 13,442,543 April 1, 2015 - April 30, 2015 203,820 $ 30.84 203,820 — 9,220,841 May 1, 2015 - May 31, 2015 200,000 $ 25.59 200,000 — 4,102,131 June 1, 2015 - June 30, 2015 160,000 $ 24.93 160,000 — 114,029 June 30, 2015 — $ — — — 15,114,029 July 1, 2015 - July 31, 2015 — $ — — — 15,114,029 August 1, 2015 - August 31, 2015 — $ — — — 15,114,029 September 1, 2015 - September 30, 2015 129,849 $ 23.15 129,849 — 12,107,835 October 1, 2015 - October 31, 2015 211,040 $ 23.19 211,040 — 7,214,395 November 1, 2015 - November 30, 2015 199,391 $ 22.11 199,391 — 2,806,575 December 1, 2015 - December 31, 2015 118,746 $ 22.39 118,746 — 148,008 Total 1,322,846 $ 25.34 1,322,846 — $ 148,008 (1) On December 9, 2011, the Company’s Board of Directors approved a stock repurchase program for its common stock, under which the Company may annually purchase up to the cumulative number of shares issued or deemed issued in that year under the Company’s equity incentive and stock purchase plans. Repurchases may be made from time to time in the open market at prevailing market prices or in privately negotiated transactions based on business and market conditions. The stock repurchase program may be suspended or discontinued at any time, and will be funded using the Company’s available cash. (2) On May 14, 2012, our Board of Directors authorized a program to repurchase up to $20 million of shares of our common stock. On each of March 14, 2013, June 13, 2014, and June 12, 2015 our Board of Directors increased the authorization by an additional $15 million of shares, for a cumulative increase of $45 million of shares and a total authorization of $65 million of shares. Subject to market conditions, applicable legal requirements and other factors, the repurchases may be made from time to time in the open market or privately negotiated transactions. The authorization does not obligate us to acquire any shares, and purchases may be commenced or suspended at any time based on market conditions and other factors as we deem appropriate. (3) The Company was deemed to have repurchased 20,540 and 56,272 shares of common stock forfeited by employees to satisfy minimum tax-withholding requirements in connection with the vesting of restricted stock grants during the 12 months ended December 31, 2013 and 2015 , respectively. During the 12 months ended December 31, 2014 , the Company was deem to have repurchased 30,973 shares of common stock forfeited by employees to satisfy minimum tax-withholding requirements in connection with the vesting of restricted stock grants and to cover the exercise and minimum tax-withholding requirements of expiring stock options. These repurchases were not part of the stock repurchase program authorized by the Company’s Board of Directors. |
Concentration (Tables)
Concentration (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Summary of APEI segment revenues | A summary of APEI Segment revenue derived from students by primary funding source for the years ended December 31, 2013 , 2014 and 2015 is as follows: Year Ended December 31, 2013 2014 2015 Title IV programs 38% 36% 32% DoD tuition assistance programs 34% 35% 35% VA education benefits 16% 18% 21% Cash and other sources 12% 11% 12% |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Summary of financial information by reportable segment | A summary of financial information by reportable segment is as follows (in thousands): Year Ended December 31, 2013 2014 2015 Revenue American Public Education Segment $ 325,678 $ 319,879 $ 297,439 Hondros College of Nursing Segment 3,801 30,141 30,471 Total Revenue $ 329,479 $ 350,020 $ 327,910 Depreciation and Amortization American Public Education Segment $ 13,344 $ 14,859 $ 19,337 Hondros College of Nursing Segment 164 1,262 1,183 Total Depreciation and Amortization $ 13,508 $ 16,121 $ 20,520 Income from continuing operations before interest income and income taxes American Public Education Segment $ 67,161 $ 62,499 $ 48,967 Hondros College of Nursing Segment 276 3,333 3,314 Total income from continuing operations before interest income and income taxes $ 67,437 $ 65,832 $ 52,281 Interest Income, Net American Public Education Segment $ 308 $ 361 $ 115 Hondros College of Nursing Segment 0 0 0 Total Interest Income, Net $ 308 $ 361 $ 115 Income Tax Expense American Public Education Segment $ 25,635 $ 23,861 $ 18,788 Hondros College of Nursing Segment 10 1,289 1,284 Total Income Tax Expense $ 25,645 $ 25,150 $ 20,072 Capital Expenditures American Public Education Segment $ 20,642 $ 24,273 $ 24,541 Hondros College of Nursing Segment 7 323 1,461 Total Capital Expenditures $ 20,649 $ 24,596 $ 26,002 |
Summary of consolidated assets by reportable segment | A summary of the Company’s consolidated assets by reportable segment is as follows (in thousands): As of December 31, 2014 2015 Assets American Public Education Segment $ 245,544 $ 250,118 Hondros College of Nursing Segment 52,360 53,778 Total Assets $ 297,904 $ 303,896 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of identified intangible assets with definite life | At the acquisition date, the useful life assigned to each type of intangible asset with a definite useful life was as follows: Useful Life Student contracts and relationships 6 years Curricula 3 years Non-compete agreements 5 years |
Schedule of future amortization of intangible assets | The future amortization of intangible assets is as follows (in thousands): 2016 $ 710 2017 598 2018 563 2019 322 2020 and beyond — Total $ 2,193 |
Schedule of changes in carrying amount of goodwill by reportable segments | Changes in the carrying amount of goodwill by reportable segment during fiscal year ending December 31, 2015 are as follows (in thousands): APEI Segment HCON Segment Total Goodwill Goodwill as of December 31, 2014 $ — $ 38,634 $ 38,634 Goodwill acquired (1) — — — Impairment — — — Section 338(h)(10) adjustment — — — Goodwill as of December 31, 2015 $ — $ 38,634 $ 38,634 The following table presents the components of the net carrying amount of goodwill by reportable segment as of December 31, 2014 (in thousands): APEI Segment HCON Segment Total Goodwill Gross carrying amount of Goodwill as of December 31, 2014 $ — $ 38,634 $ 38,634 Accumulated impairment — — — Net Carrying amount of Goodwill as of December 31, 2014 $ — $ 38,634 $ 38,634 The following table presents the components of the net carrying amount of goodwill by reportable segment as of December 31, 2015 (in thousands): APEI Segment HCON Segment Total Goodwill Gross carrying amount of Goodwill as of December 31, 2015 $ — $ 38,634 $ 38,634 Accumulated impairment — — — Net Carrying amount of Goodwill as of December 31, 2015 $ — $ 38,634 $ 38,634 |
Schedule of other intangible assets | Other intangible assets consist of the following as of December 31, 2015 (in thousands): 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets Curricula $ 405 $ 293 $ 112 Non-compete agreements 86 37 49 Student contracts and relationships 3,870 1,838 2,032 Total finite-lived intangible assets 4,361 2,168 2,193 Indefinite-lived intangible assets Trade name 1,998 — 1,998 Accreditation, licensing and Title IV 1,686 — 1,686 Affiliation agreements 37 — 37 Total indefinite-lived intangible assets 3,721 — 3,721 Total intangible assets $ 8,082 $ 2,168 $ 5,914 |
Quarterly Financial Summary (32
Quarterly Financial Summary (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of unaudited quarterly financial information | The following tables set forth selected unaudited quarterly financial information for each of the Company’s last eight quarters: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (in thousands, except per share data) 2015 Revenue $ 85,444 $ 80,263 $ 76,291 $ 85,912 Income before income taxes 14,481 11,607 10,549 15,759 Net income 8,793 7,073 6,757 9,791 Net income per common share: Basic $ 0.51 $ 0.42 $ 0.41 $ 0.61 Diluted $ 0.51 $ 0.42 $ 0.41 $ 0.60 2014 Revenue $ 88,553 $ 85,463 $ 84,708 $ 91,297 Income before income taxes 16,806 15,933 14,745 18,709 Net income 10,436 9,802 8,842 11,797 Net income per common share: Basic $ 0.59 $ 0.56 $ 0.51 $ 0.69 Diluted $ 0.59 $ 0.56 $ 0.51 $ 0.68 |
Nature of Business and Signif33
Nature of Business and Significant Accounting Policies - Narrative (Details) | 12 Months Ended |
Dec. 31, 2015subsidiarystudentcampussegment | |
Segment Reporting Information [Line Items] | |
Number of students | student | 97,500 |
Number of subsidiary institutions | subsidiary | 2 |
Number of reportable segments | segment | 2 |
HCON | |
Segment Reporting Information [Line Items] | |
Number of campuses | campus | 4 |
Nature of Business and Signif34
Nature of Business and Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Restricted cash | $ 3.3 | $ 3.9 |
Nature of Business and Signif35
Nature of Business and Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Software development | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Program development | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Nature of Business and Signif36
Nature of Business and Significant Accounting Policies - Investments (Details) $ in Thousands | Dec. 21, 2015USD ($) | Apr. 02, 2014USD ($) | Feb. 20, 2013USD ($) | Sep. 30, 2012USD ($)countrylocation | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Investment [Line Items] | |||||||
Amount of investment | $ 3,871 | $ 1,620 | $ 4,000 | ||||
Investments | $ 4,100 | ||||||
Cost-method Investments | |||||||
Investment [Line Items] | |||||||
Investment in preferred stock | $ 3,500 | ||||||
Ownership percentage | 13.80% | ||||||
NWHW Holdings | |||||||
Investment [Line Items] | |||||||
Amount of investment | $ 6,800 | ||||||
Percentage of fully diluted equity | 19.90% | ||||||
Number of countries | country | 70 | ||||||
NWHW Holdings | Minimum | |||||||
Investment [Line Items] | |||||||
Number of locations (more than) | location | 300 | ||||||
Fidelis Education | |||||||
Investment [Line Items] | |||||||
Amount of investment | $ 4,000 | ||||||
Percentage of fully diluted equity | 21.60% | ||||||
Second Avenue Software | |||||||
Investment [Line Items] | |||||||
Amount of investment | $ 1,500 | ||||||
Percentage of fully diluted equity | 25.90% |
Nature of Business and Signif37
Nature of Business and Significant Accounting Policies - Note Receivable (Details) - NWHW Holdings $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amount of credit extended | $ 6 |
Maturity date | Sep. 28, 2018 |
First Five Years | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Interest rate | 5.00% |
Interest payable period | 5 years |
Sixth Year | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Interest rate | 6.00% |
Nature of Business and Signif38
Nature of Business and Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Eight Week Course | |
Deferred Revenue Arrangement [Line Items] | |
Percentage of refund of tuition before the conclusion of the first seven days of a course | 100.00% |
Minimum | |
Deferred Revenue Arrangement [Line Items] | |
Period of revenue recognition | 56 days |
Maximum | |
Deferred Revenue Arrangement [Line Items] | |
Period of revenue recognition | 112 days |
Nature of Business and Signif39
Nature of Business and Significant Accounting Policies - American Public University System 8-Week Course-Tuition Refund Schedule (Details) - Eight Week Course | 12 Months Ended |
Dec. 31, 2015 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Tuition refund percentage before or during week 1 | 100.00% |
Tuition refund percentage during week 2 | 75.00% |
Tuition refund percentage during weeks 3 and 4 | 50.00% |
Tuition refund percentage during weeks 5 through 8 | 0.00% |
Nature of Business and Signif40
Nature of Business and Significant Accounting Policies - American Public University System 16-Week Course-Tuition Refund Schedule (Details) - Sixteen Week Course | 12 Months Ended |
Dec. 31, 2015 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Tuition refund percentage before or during week 1 | 100.00% |
Tuition refund percentage during week 2 | 100.00% |
Tuition refund percentage during weeks 3 and 4 | 75.00% |
Tuition refund percentage during weeks 5 through 8 | 50.00% |
Tuition refund percentage during weeks 9 through 16 | 0.00% |
Nature of Business and Signif41
Nature of Business and Significant Accounting Policies - Hondros College of Nursing Refund Schedule (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Full Calendar Week | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Tuition refund percentage before full calendar week | 100.00% |
During Full Calendar Week | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Tuition refund percentage | 75.00% |
During Second Calendar Week | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Tuition refund percentage | 50.00% |
During Third Full Calendar Week | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Tuition refund percentage | 25.00% |
During Fourth Full Calendar Week | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Tuition refund percentage | 0.00% |
Nature of Business and Signif42
Nature of Business and Significant Accounting Policies - Schedule of Deferred Revenue and Student Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Deferred revenue | $ 17,239 | $ 13,367 |
Student deposits | 12,488 | 10,438 |
Total deferred revenue and student deposits | $ 29,727 | $ 23,805 |
Nature of Business and Signif43
Nature of Business and Significant Accounting Policies - Deferred Revenue and Student Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Sales Revenue, Services, Net | |||
Deferred Revenue Arrangement [Line Items] | |||
Scholarship assistance | $ 7,583 | $ 2,589 | $ 2,855 |
Nature of Business and Signif44
Nature of Business and Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Selling and promotional | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Advertising expenses | $ 42,226 | $ 50,950 | $ 46,995 |
Nature of Business and Signif45
Nature of Business and Significant Accounting Policies - Stock-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Total stock-based compensation expense | $ 5,912 | $ 5,369 | $ 4,024 |
Instructional costs and services | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Total stock-based compensation expense | 1,598 | 1,274 | 876 |
Selling and promotional | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Total stock-based compensation expense | 684 | 568 | 444 |
General and administrative | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Total stock-based compensation expense | $ 3,630 | $ 3,527 | $ 2,704 |
Nature of Business and Signif46
Nature of Business and Significant Accounting Policies - Income Per Common Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive stock options (in shares) | 317,961 | 365,832 | 0 |
Acquisition Accounting - Narrat
Acquisition Accounting - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2014 | Nov. 01, 2013 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Aggregate purchase price | $ 46,764 | |||
Goodwill | $ 38,100 | |||
Fair value of IRC 338(h)(10) election | $ 636 | |||
HCON | ||||
Business Acquisition [Line Items] | ||||
Outstanding common stock acquisition date | Nov. 1, 2013 | |||
Aggregate purchase price | $ 46,800 | 46,300 | ||
Goodwill | $ 38,600 | $ 38,600 | ||
Fair value of IRC 338(h)(10) election | $ 150 | |||
Revised estimate of fair value of liability | $ 636 |
Acquisition Accounting - Schedu
Acquisition Accounting - Schedule of Fair Value of Identified Intangible Assets Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair value consideration transferred: | |||
Cash | $ 46,128 | ||
Fair Value of IRC 338(h)(10) election | 636 | ||
Total fair value consideration transferred | 46,764 | ||
Recognized amounts of identifiable tangible assets acquired and liabilities assumed: | |||
Assets acquired | 4,834 | ||
Liabilities assumed | 4,786 | ||
Assets acquired in excess of liabilities assumed | 48 | ||
Recognized identified intangible assets: | |||
Total recognized identified intangible assets | 8,082 | ||
Goodwill | 38,634 | $ 38,634 | $ 38,148 |
Trade name | |||
Recognized identified intangible assets: | |||
Total recognized identified intangible assets | 1,998 | ||
Accreditation, licensing and Title IV | |||
Recognized identified intangible assets: | |||
Total recognized identified intangible assets | 1,686 | ||
Affiliate agreements | |||
Recognized identified intangible assets: | |||
Total recognized identified intangible assets | 37 | ||
Student contracts and relationships | |||
Recognized identified intangible assets: | |||
Total recognized identified intangible assets | $ 3,870 | ||
Useful Life | 6 years | ||
Curricula | |||
Recognized identified intangible assets: | |||
Total recognized identified intangible assets | $ 405 | ||
Useful Life | 3 years | ||
Non-compete agreements | |||
Recognized identified intangible assets: | |||
Total recognized identified intangible assets | $ 86 | ||
Useful Life | 5 years |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 186,043 | $ 166,483 |
Accumulated depreciation and amortization | 76,762 | 64,059 |
Property and equipment, net | 109,281 | 102,424 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,501 | 9,244 |
Building and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 58,429 | 52,938 |
Building and building improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 27 years 6 months | |
Building and building improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 39 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,002 | 2,391 |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 15 years | |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,322 | 2,351 |
Useful Life | 5 years | |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 25,179 | 22,615 |
Useful Life | 3 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,124 | 7,533 |
Useful Life | 7 years | |
Other Capitalizable Assets | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,829 | 708 |
Other Capitalizable Assets | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 1 year | |
Other Capitalizable Assets | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 5 years | |
Software development | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 74,737 | 64,593 |
Useful Life | 5 years | |
Program development | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,920 | $ 4,110 |
Useful Life | 3 years |
Property and Equipment - Narrat
Property and Equipment - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 19,626 | $ 14,980 | $ 13,225 |
Amortization expense related to other assets | $ 894 | $ 1,141 | $ 283 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($)campus | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
APEI Segment | ||||
Property, Plant and Equipment [Line Items] | ||||
Rent expense | $ 1,094 | $ 1,666 | $ 1,647 | |
HCON Segment | ||||
Property, Plant and Equipment [Line Items] | ||||
Rent expense | $ 317 | $ 2,347 | $ 2,212 | |
Ohio | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of campuses | campus | 4 |
Operating Leases - Schedule of
Operating Leases - Schedule of Minimum Rental Commitment Due Under Operating Lease (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 2,003 |
2,017 | 2,023 |
2,018 | 1,690 |
2,019 | 1,530 |
2020 and beyond | 8,566 |
Total minimum rental commitment | $ 15,812 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current income tax expense: | |||
Federal | $ 17,910 | $ 19,404 | $ 20,533 |
State | 2,322 | 3,252 | 3,094 |
Current income tax expense | 20,232 | 22,656 | 23,627 |
Deferred tax expense: | |||
Federal | (241) | 2,623 | 1,858 |
State | 81 | (129) | 160 |
Deferred tax expense | (160) | 2,494 | 2,018 |
Income Tax Expense | $ 20,072 | $ 25,150 | $ 25,645 |
Income Taxes - Schedule of Tax
Income Taxes - Schedule of Tax Effects of Principal Temporary Differences (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Property and equipment | $ 13,629 | $ 9,215 |
Stock option compensation expense | 1,336 | 1,556 |
Allowance for doubtful accounts | 4,988 | 3,846 |
Accrued vacation and severance | 576 | 549 |
Restricted stock | 1,830 | 1,818 |
Investment | 19 | 100 |
Deferred tax assets | 22,378 | 17,084 |
Deferred tax liabilities: | ||
Income tax deductible capitalized software development costs | (29,592) | (24,750) |
Prepaid expenses | (2,016) | (1,724) |
Deferred tax liabilities | (31,608) | (26,474) |
Deferred tax liabilities, net | $ (9,230) | $ (9,390) |
Income Taxes - Schedule of Diff
Income Taxes - Schedule of Difference of Income Tax Expense from the United States Federal Income Tax Rates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Amount | |||
Tax expense at statutory rate | $ 18,370 | $ 23,110 | $ 23,688 |
State taxes, net | 1,590 | 1,985 | 2,069 |
Permanent differences | 278 | 228 | (275) |
Other | (166) | (173) | 163 |
Income Tax Expense | $ 20,072 | $ 25,150 | $ 25,645 |
Percentage | |||
Tax expense at statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
State taxes, net (as a percent) | 3.03% | 3.01% | 3.06% |
Permanent differences (as a percent) | 0.53% | 0.35% | (0.41%) |
Other (as a percent) | (0.32%) | (0.27%) | 0.24% |
Total percentage | 38.24% | 38.09% | 37.89% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - Federal and State | 12 Months Ended |
Dec. 31, 2015 | |
Earliest Tax Year | |
Operating Loss Carryforwards [Line Items] | |
Tax years open to examination | 2,012 |
Latest Tax Year | |
Operating Loss Carryforwards [Line Items] | |
Tax years open to examination | 2,015 |
Other Employee Benefits - Narra
Other Employee Benefits - Narrative (Details) - USD ($) | Jun. 13, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 20, 2008 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of gross annual earnings (up to) | 60.00% | ||||
Percentage vested in salary reduction contributions | 100.00% | ||||
Shares of common stock | 100,000 | ||||
Discretionary contributions | $ 3,309,000 | $ 3,270,000 | $ 2,753,000 | ||
ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payroll deduction period (up to) | 5 days | ||||
Percentage of fair market value | 85.00% | ||||
Threshold amount of total amount of contributions | $ 21,000 | ||||
Threshold amount of common stock | $ 25,000 | ||||
Shares of common stock available | 100,000 | ||||
Common stock available for issuance (in shares) | 100,000 |
Other Employee Benefits - Sched
Other Employee Benefits - Schedule of Shares Purchased in Open Market for Employees (Details) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Compensation Expense | $ 5,912,000 | $ 5,369,000 | $ 4,024,000 | ||||||||||||
ESPP | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Shares | 6,822 | 4,939 | 5,443 | 4,322 | 3,931 | 5,246 | 5,180 | 4,961 | 4,556 | 4,226 | 4,726 | 4,760 | 21,526 | 19,318 | 18,268 |
Common Stock Fair Value | $ 18.61 | $ 23.45 | $ 25.72 | $ 29.98 | $ 36.87 | $ 26.99 | $ 34.38 | $ 35.08 | $ 43.47 | $ 37.80 | $ 37.16 | $ 34.89 | $ 23.80 | $ 33.06 | $ 38.29 |
Purchase Price | $ 15.82 | $ 19.93 | $ 21.86 | $ 25.49 | $ 31.34 | $ 22.94 | $ 29.22 | $ 29.82 | $ 36.95 | $ 32.13 | $ 31.59 | $ 29.66 | $ 20.23 | $ 28.10 | $ 32.55 |
Compensation Expense | $ 19,033 | $ 17,385 | $ 21,010 | $ 19,406 | $ 21,738 | $ 21,246 | $ 26,729 | $ 26,095 | $ 29,705 | $ 23,961 | $ 26,324 | $ 24,895 | $ 76,834 | $ 95,808 | $ 104,885 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | Jun. 30, 2015 | Jan. 01, 2015 | Jun. 13, 2014 | Jan. 20, 2014 | Jan. 01, 2014 | Mar. 14, 2013 | Jan. 01, 2013 | Dec. 31, 2015 | Nov. 30, 2015 | Oct. 31, 2015 | Sep. 30, 2015 | Aug. 31, 2015 | Jul. 31, 2015 | Jun. 30, 2015 | May. 31, 2015 | Apr. 30, 2015 | Mar. 31, 2015 | Feb. 28, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | Nov. 30, 2014 | Oct. 31, 2014 | Jun. 30, 2014 | May. 31, 2014 | Apr. 30, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Jan. 30, 2014 | Dec. 31, 2013 | Nov. 30, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Aug. 31, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | May. 31, 2013 | Apr. 30, 2013 | Mar. 31, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 12, 2015 | Dec. 31, 2012 | May. 14, 2012 | May. 06, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares subject to outstanding awards | 329,872 | 434,401 | 501,202 | 329,872 | 434,401 | 501,202 | 691,082 | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ 5,912,000 | $ 5,369,000 | $ 4,024,000 | |||||||||||||||||||||||||||||||||||||||||||||
Total income tax benefit | $ 2,467,000 | $ 2,022,000 | $ 1,594,000 | |||||||||||||||||||||||||||||||||||||||||||||
Par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||||||||||||||||||||||||||
Repurchase amount (up to) | $ 65,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Increase in authorization amount | $ 15,000,000 | $ 15,000,000 | $ 15,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Cumulative increase | $ 45,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Shares of common stock repurchased | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 118,746 | 199,391 | 211,040 | 129,849 | 0 | 0 | 160,000 | 200,000 | 203,820 | 100,000 | 0 | 0 | 84,634 | 30,000 | 0 | 51,760 | 139,568 | 185,000 | 40,000 | 0 | 0 | 0 | 0 | 167,675 | 10,000 | 0 | 0 | 0 | 60,000 | 2,164 | 150,587 | 0 | 3,638 | 0 | 1,322,846 | 394,064 | |||||
Shares of common stock repurchased | 0 | 0 | 0 | 0 | 0 | 3,638 | 0 | 118,746 | 199,391 | 211,040 | 129,849 | 0 | 0 | 160,000 | 200,000 | 203,820 | 100,000 | 0 | 0 | 84,634 | 30,000 | 0 | 51,760 | 139,568 | 185,000 | 40,000 | 0 | 0 | 394,064 | 394,064 | 394,064 | 226,389 | 216,389 | 216,389 | 216,389 | 216,389 | 156,389 | 154,225 | 3,638 | 3,638 | 0 | 1,322,846 | 530,962 | 394,064 | ||||
Restricted shares granted to employees repurchased | 0 | 0 | 0 | 147,284 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 66,910 | 116,910 | 116,910 | 0 | 84,634 | 114,634 | 0 | 0 | 14,784 | 107,284 | 147,284 | 147,284 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Common Stock Forfeited for Tax Withholding | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares of common stock repurchased | 56,272 | 30,973 | 20,540 | |||||||||||||||||||||||||||||||||||||||||||||
Maximum | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase amount (up to) | $ 20,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock and Restricted Stock Units | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
Total income tax benefit | $ 2,467,000 | $ 1,880,000 | $ 1,294,000 | |||||||||||||||||||||||||||||||||||||||||||||
Anti-dilutive stock options (in shares) | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Total unrecognized compensation expense | $ 6,000,000 | $ 6,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Weighted average period | 1 year 4 months 25 days | |||||||||||||||||||||||||||||||||||||||||||||||
Shares forfeited | 22,066 | 15,097 | 4,002 | |||||||||||||||||||||||||||||||||||||||||||||
Dollar amount for shares forfeited | $ 815,886 | $ 628,639 | $ 159,840 | |||||||||||||||||||||||||||||||||||||||||||||
Equity Option | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
Anti-dilutive stock options (in shares) | 317,961 | 365,832 | 0 | |||||||||||||||||||||||||||||||||||||||||||||
2011 Incentive Plan | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares granted (up to) | 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Shares subject to outstanding awards | 305,295 | 305,295 | ||||||||||||||||||||||||||||||||||||||||||||||
2002 Stock Plan and 2007 Incentive Plan | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares subject to outstanding awards | 329,872 | 329,872 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Status of Stock Incentive Plans and Changes During Periods (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Options | |||
Beginning balance (in shares) | 434,401 | 501,202 | 691,082 |
Options granted (in shares) | 0 | 0 | 0 |
Awards exercised (in shares) | (55,382) | (46,198) | (171,897) |
Options forfeited (in shares) | (49,147) | (20,603) | (17,983) |
Ending balance (in shares) | 329,872 | 434,401 | 501,202 |
Weighted Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 30.04 | $ 28.82 | $ 26.59 |
Options granted (in dollars per share) | 0 | 0 | 0 |
Awards exercised (in dollars per share) | 3.29 | 13.66 | 18.92 |
Options forfeited (in dollars per share) | 35.97 | 37.04 | 37.64 |
Ending balance (in dollars per share) | $ 33.65 | $ 30.04 | $ 28.82 |
Weighted Average Contractual Life and Aggregate Intrinsic Value | |||
Weighted average contractual life outstanding | 1 year 3 months 18 days | 2 years 1 month 21 days | 3 years 18 days |
Aggregate intrinsic value outstanding | $ 359 | $ 3,080 | $ 7,343 |
Number of options exercisable (in shares) | 329,872 | 434,401 | 445,564 |
Weighted average exercise price exercisable (in dollars per share) | $ 33.65 | $ 30.04 | $ 27.73 |
Weighted average contractual life exercisable | 1 year 3 months 18 days | 2 years 1 month 21 days | 2 years 11 months 5 days |
Aggregate intrinsic value exercisable | $ 359 | $ 3,080 | $ 7,012 |
Stockholders' Equity - Summar61
Stockholders' Equity - Summary of Information Regarding Stock Option Exercises (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
Proceeds from stock options exercised | $ 182 | $ 631 | $ 3,253 |
Intrinsic value of stock options exercised | 1,057 | 1,033 | 3,667 |
Tax benefit from exercises | $ 54 | $ 193 | $ 1,348 |
Stockholders' Equity - Summar62
Stockholders' Equity - Summary of Restricted Stock and Restricted Stock Units Activity (Details) - Restricted Stock and Restricted Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Shares | |||
Beginning balance (in shares) | 360,769 | 190,761 | 136,397 |
Shares granted | 127,469 | 272,550 | 123,951 |
Vested shares | (164,144) | (87,445) | (65,585) |
Shares forfeited | (30,675) | (15,097) | (4,002) |
Ending balance (in shares) | 293,419 | 360,769 | 190,761 |
Weighted Average Grant Price and Fair Value | |||
Beginning balance (in dollars per share) | $ 37.03 | $ 38.61 | $ 39.21 |
Shares granted (in dollars per share) | 35.15 | 36.73 | 37.50 |
Vested shares (in dollars per share) | 37.85 | 38.69 | 37.70 |
Shares forfeited (in dollars per share) | 36.76 | 41.64 | 39.94 |
Ending balance (in dollars per share) | $ 35.86 | $ 37.03 | $ 38.61 |
Stockholders' Equity - Summar63
Stockholders' Equity - Summary of Repurchases During the Period (Details) - USD ($) | Jun. 30, 2015 | Jan. 01, 2015 | Jun. 13, 2014 | Jan. 20, 2014 | Jan. 01, 2014 | Mar. 14, 2013 | Jan. 01, 2013 | Dec. 31, 2015 | Nov. 30, 2015 | Oct. 31, 2015 | Sep. 30, 2015 | Aug. 31, 2015 | Jul. 31, 2015 | Jun. 30, 2015 | May. 31, 2015 | Apr. 30, 2015 | Mar. 31, 2015 | Feb. 28, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | Nov. 30, 2014 | Oct. 31, 2014 | Jun. 30, 2014 | May. 31, 2014 | Apr. 30, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Jan. 30, 2014 | Dec. 31, 2013 | Nov. 30, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Aug. 31, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | May. 31, 2013 | Apr. 30, 2013 | Mar. 31, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 29, 2015 |
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Total Number of Shares Purchased | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 118,746 | 199,391 | 211,040 | 129,849 | 0 | 0 | 160,000 | 200,000 | 203,820 | 100,000 | 0 | 0 | 84,634 | 30,000 | 0 | 51,760 | 139,568 | 185,000 | 40,000 | 0 | 0 | 0 | 0 | 167,675 | 10,000 | 0 | 0 | 0 | 60,000 | 2,164 | 150,587 | 0 | 3,638 | 0 | 1,322,846 | 394,064 | ||
Average Price Paid per Share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 22.39 | $ 22.11 | $ 23.19 | $ 23.15 | $ 0 | $ 0 | $ 24.93 | $ 25.59 | $ 30.84 | $ 31.69 | $ 0 | $ 0 | $ 34.09 | $ 35.48 | $ 0 | $ 34.95 | $ 35.11 | $ 34.60 | $ 35.26 | $ 0 | $ 0 | $ 0 | $ 0 | $ 36.86 | $ 37.91 | $ 0 | $ 0 | $ 0 | $ 32.55 | $ 33 | $ 32.30 | $ 0 | $ 34.79 | $ 0 | $ 25.34 | $ 34.78 | $ 34.47 | |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 0 | 0 | 0 | 0 | 0 | 3,638 | 0 | 118,746 | 199,391 | 211,040 | 129,849 | 0 | 0 | 160,000 | 200,000 | 203,820 | 100,000 | 0 | 0 | 84,634 | 30,000 | 0 | 51,760 | 139,568 | 185,000 | 40,000 | 0 | 0 | 394,064 | 394,064 | 394,064 | 226,389 | 216,389 | 216,389 | 216,389 | 216,389 | 156,389 | 154,225 | 3,638 | 3,638 | 0 | 1,322,846 | 530,962 | 394,064 | |
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | 0 | 0 | 0 | 147,284 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 66,910 | 116,910 | 116,910 | 0 | 84,634 | 114,634 | 0 | 0 | 14,784 | 107,284 | 147,284 | 147,284 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs | $ 15,114,029 | $ 15,027,043 | $ 15,027,043 | $ 9,417,721 | $ 9,417,721 | $ 22,866,068 | $ 7,992,647 | $ 148,008 | $ 2,806,575 | $ 7,214,395 | $ 12,107,835 | $ 15,114,029 | $ 15,114,029 | $ 15,114,029 | $ 4,102,131 | $ 9,220,841 | $ 13,442,543 | $ 15,027,043 | $ 15,027,043 | $ 15,027,043 | $ 15,027,043 | $ 15,027,043 | $ 27,043 | $ 1,836,055 | $ 6,217,221 | $ 9,417,721 | $ 9,417,721 | $ 9,417,721 | $ 9,417,721 | $ 9,417,721 | $ 9,417,721 | $ 15,598,221 | $ 15,977,321 | $ 15,977,321 | $ 15,977,321 | $ 15,977,321 | $ 17,930,337 | $ 18,001,740 | $ 7,866,068 | $ 7,866,068 | $ 15,027,043 | $ 148,008 | $ 15,027,043 | $ 9,417,721 | $ 114,029 |
Concentration - Narrative (Deta
Concentration - Narrative (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
APEI Segment | Number of Students | Military On Active Duty | |||
Concentration Risk [Line Items] | |||
Percentage of students | 56.00% | ||
APEI Segment | Segment Revenue | VA education benefits | |||
Concentration Risk [Line Items] | |||
Percentage of students | 21.00% | 18.00% | 16.00% |
HCON Segment | Segment Revenue | Federal Student Aid | |||
Concentration Risk [Line Items] | |||
Percentage of students | 86.10% | ||
HCON Segment | Segment Revenue | VA education benefits | |||
Concentration Risk [Line Items] | |||
Percentage of students | 2.40% |
Concentration - Summary of APEI
Concentration - Summary of APEI Segment Revenues (Details) - APEI Segment - Segment Revenue - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Title IV programs | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 32.00% | 36.00% | 38.00% |
DoD tuition assistance programs | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 35.00% | 35.00% | 34.00% |
VA education benefits | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 21.00% | 18.00% | 16.00% |
Cash and other sources | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.00% | 11.00% | 12.00% |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2015segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information - Summary o
Segment Information - Summary of Financial Information by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue | |||||||||||
Total Revenue | $ 85,912 | $ 76,291 | $ 80,263 | $ 85,444 | $ 91,297 | $ 84,708 | $ 85,463 | $ 88,553 | $ 327,910 | $ 350,020 | $ 329,479 |
Depreciation and Amortization | |||||||||||
Total Depreciation and Amortization | 20,520 | 16,121 | 13,508 | ||||||||
Income from continuing operations before interest income and income taxes | |||||||||||
Total income from continuing operations before interest income and income taxes | 52,281 | 65,832 | 67,437 | ||||||||
Interest Income, Net | |||||||||||
Total Interest Income, Net | 115 | 361 | 308 | ||||||||
Income Tax Expense | |||||||||||
Total Income Tax Expense | 20,072 | 25,150 | 25,645 | ||||||||
Capital Expenditures | |||||||||||
Total Capital Expenditures | 26,002 | 24,596 | 20,649 | ||||||||
American Public Education Segment | |||||||||||
Revenue | |||||||||||
Total Revenue | 297,439 | 319,879 | 325,678 | ||||||||
Depreciation and Amortization | |||||||||||
Total Depreciation and Amortization | 19,337 | 14,859 | 13,344 | ||||||||
Income from continuing operations before interest income and income taxes | |||||||||||
Total income from continuing operations before interest income and income taxes | 48,967 | 62,499 | 67,161 | ||||||||
Interest Income, Net | |||||||||||
Total Interest Income, Net | 115 | 361 | 308 | ||||||||
Income Tax Expense | |||||||||||
Total Income Tax Expense | 18,788 | 23,861 | 25,635 | ||||||||
Capital Expenditures | |||||||||||
Total Capital Expenditures | 24,541 | 24,273 | 20,642 | ||||||||
Hondros College of Nursing Segment | |||||||||||
Revenue | |||||||||||
Total Revenue | 30,471 | 30,141 | 3,801 | ||||||||
Depreciation and Amortization | |||||||||||
Total Depreciation and Amortization | 1,183 | 1,262 | 164 | ||||||||
Income from continuing operations before interest income and income taxes | |||||||||||
Total income from continuing operations before interest income and income taxes | 3,314 | 3,333 | 276 | ||||||||
Interest Income, Net | |||||||||||
Total Interest Income, Net | 0 | 0 | 0 | ||||||||
Income Tax Expense | |||||||||||
Total Income Tax Expense | 1,284 | 1,289 | 10 | ||||||||
Capital Expenditures | |||||||||||
Total Capital Expenditures | $ 1,461 | $ 323 | $ 7 |
Segment Information - Summary68
Segment Information - Summary of Consolidated Assets by Reportable Segments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Total Assets | $ 303,896 | $ 297,904 |
American Public Education Segment | Operating Segments | ||
Assets | ||
Total Assets | 250,118 | 245,544 |
Hondros College of Nursing Segment | Operating Segments | ||
Assets | ||
Total Assets | $ 53,778 | $ 52,360 |
Goodwill and Intangible Asset69
Goodwill and Intangible Assets - Narrative (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 01, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 38,634 | $ 38,634 | $ 38,148 | |
Other identifiable intangible assets | 8,082 | |||
Identified intangible assets with indefinite useful life | $ 3,721 | |||
HCON | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 38,600 | |||
Other identifiable intangible assets | 8,100 | |||
Identified intangible assets with indefinite useful life | 3,700 | |||
Fair value | $ 4,400 |
Goodwill and Intangible Asset70
Goodwill and Intangible Assets - Schedule of Identified Intangible Assets with Definite Life (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Student contracts and relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 6 years |
Curricula | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 3 years |
Non-compete agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 5 years |
Goodwill and Intangible Asset71
Goodwill and Intangible Assets - Schedule of Future Amortization of Intangible Assets (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 710 |
2,017 | 598 |
2,018 | 563 |
2,019 | 322 |
2020 and beyond | 0 |
Net Carrying Amount | $ 2,193 |
Goodwill and Intangible Asset72
Goodwill and Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill by Reportable Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 38,634 | $ 38,148 |
Goodwill acquired | 0 | 0 |
Impairment | 0 | 0 |
Section 338(h)(10) adjustment | 0 | 486 |
Ending balance | 38,634 | 38,634 |
APEI Segment | ||
Goodwill [Roll Forward] | ||
Beginning balance | 0 | 0 |
Goodwill acquired | 0 | 0 |
Impairment | 0 | 0 |
Section 338(h)(10) adjustment | 0 | 0 |
Ending balance | 0 | 0 |
HCON Segment | ||
Goodwill [Roll Forward] | ||
Beginning balance | 38,634 | 38,148 |
Goodwill acquired | 0 | 0 |
Impairment | 0 | 0 |
Section 338(h)(10) adjustment | 0 | 486 |
Ending balance | $ 38,634 | $ 38,634 |
Goodwill and Intangible Asset73
Goodwill and Intangible Assets - Schedule of Components of Net Carrying Amount of Goodwill by Reportable Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount of goodwill, ending balance | $ 38,634 | $ 38,634 | |
Accumulated impairment | 0 | 0 | |
Net Carrying amount of goodwill, ending balance | 38,634 | 38,634 | $ 38,148 |
APEI Segment | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount of goodwill, ending balance | 0 | 0 | |
Accumulated impairment | 0 | 0 | |
Net Carrying amount of goodwill, ending balance | 0 | 0 | 0 |
HCON Segment | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount of goodwill, ending balance | 38,634 | 38,634 | |
Accumulated impairment | 0 | 0 | |
Net Carrying amount of goodwill, ending balance | $ 38,634 | $ 38,634 | $ 38,148 |
Goodwill and Intangible Asset74
Goodwill and Intangible Assets - Schedule of Other Intangible Assets (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Finite-lived intangible assets | |
Gross Carrying Amount | $ 4,361 |
Accumulated Amortization | 2,168 |
Net Carrying Amount | 2,193 |
Indefinite-lived intangible assets | |
Gross Carrying Amount | 3,721 |
Accumulated Amortization | 0 |
Net Carrying Amount | 3,721 |
Total intangible assets gross carrying amount | 8,082 |
Total intangible assets accumulated amortization | 2,168 |
Total intangible assets net carrying amount | 5,914 |
Trade name | |
Indefinite-lived intangible assets | |
Gross Carrying Amount | 1,998 |
Accumulated Amortization | 0 |
Net Carrying Amount | 1,998 |
Accreditation, licensing and Title IV | |
Indefinite-lived intangible assets | |
Gross Carrying Amount | 1,686 |
Accumulated Amortization | 0 |
Net Carrying Amount | 1,686 |
Affiliation agreements | |
Indefinite-lived intangible assets | |
Gross Carrying Amount | 37 |
Accumulated Amortization | 0 |
Net Carrying Amount | 37 |
Curricula | |
Finite-lived intangible assets | |
Gross Carrying Amount | 405 |
Accumulated Amortization | 293 |
Net Carrying Amount | 112 |
Non-compete agreements | |
Finite-lived intangible assets | |
Gross Carrying Amount | 86 |
Accumulated Amortization | 37 |
Net Carrying Amount | 49 |
Student contracts and relationships | |
Finite-lived intangible assets | |
Gross Carrying Amount | 3,870 |
Accumulated Amortization | 1,838 |
Net Carrying Amount | $ 2,032 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Feb. 01, 2016 | Feb. 20, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Event [Line Items] | |||||
Additional investment | $ 3,871 | $ 1,620 | $ 4,000 | ||
Fidelis Education | |||||
Subsequent Event [Line Items] | |||||
Additional investment | $ 4,000 | ||||
Investment percentage | 21.60% | ||||
Fidelis Education | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Additional investment | $ 950 | ||||
Investment percentage | 22.00% |
Quarterly Financial Summary (76
Quarterly Financial Summary (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 85,912 | $ 76,291 | $ 80,263 | $ 85,444 | $ 91,297 | $ 84,708 | $ 85,463 | $ 88,553 | $ 327,910 | $ 350,020 | $ 329,479 |
Income before income taxes | 15,759 | 10,549 | 11,607 | 14,481 | 18,709 | 14,745 | 15,933 | 16,806 | 52,396 | 66,193 | 67,746 |
Net income | $ 9,791 | $ 6,757 | $ 7,073 | $ 8,793 | $ 11,797 | $ 8,842 | $ 9,802 | $ 10,436 | $ 32,414 | $ 40,877 | $ 42,034 |
Net income per common share: | |||||||||||
Basic (in dollars per share) | $ 0.61 | $ 0.41 | $ 0.42 | $ 0.51 | $ 0.69 | $ 0.51 | $ 0.56 | $ 0.59 | $ 1.94 | $ 2.36 | $ 2.38 |
Diluted (in dollars per share) | $ 0.60 | $ 0.41 | $ 0.42 | $ 0.51 | $ 0.68 | $ 0.51 | $ 0.56 | $ 0.59 | $ 1.93 | $ 2.33 | $ 2.35 |
Schedule II Valuation and Qua77
Schedule II Valuation and Qualifying Accounts - Schedule of Valuation and Qualifying Accounts (Details) - Allowance for receivables - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 10,699 | $ 13,175 | $ 11,106 |
Additions/ (reductions) | 12,714 | 18,824 | 15,734 |
Write-offs | (10,401) | (21,300) | (13,665) |
Balance at end of period | 13,012 | 10,699 | 13,175 |
American Public Education Segment | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 8,461 | 11,452 | 11,106 |
Additions/ (reductions) | 11,203 | 17,480 | 14,011 |
Write-offs | (9,378) | (20,471) | (13,665) |
Balance at end of period | 10,286 | 8,461 | 11,452 |
Hondros College of Nursing Segment | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 2,238 | 1,723 | 0 |
Additions/ (reductions) | 1,511 | 1,344 | 1,723 |
Write-offs | (1,023) | (829) | 0 |
Balance at end of period | $ 2,726 | $ 2,238 | $ 1,723 |
Schedule II Valuation and Qua78
Schedule II Valuation and Qualifying Accounts - Narrative (Details) $ in Thousands | Nov. 01, 2013USD ($) |
Hondros College of Nursing Segment | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Beginning balance | $ 1,461 |