Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 04, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
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 | |
Entity Common Stock, Shares Outstanding | 16,095,956 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 137,691 | $ 105,734 |
Accounts receivable, net of allowance of $8,645 in 2016 and $13,012 in 2015 | 5,878 | 7,917 |
Prepaid expenses | 5,553 | 10,746 |
Income tax receivable | 1,182 | 0 |
Deferred income taxes | 4,833 | 6,714 |
Total current assets | 155,137 | 131,111 |
Property and equipment, net | 99,155 | 109,281 |
Assets held for sale | 2,100 | 0 |
Investments | 14,561 | 15,915 |
Goodwill | 33,899 | 38,634 |
Other assets, net | 8,472 | 8,955 |
Total assets | 313,324 | 303,896 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 19,095 | 21,072 |
Deferred revenue | 24,888 | 29,727 |
Total current liabilities | 43,983 | 50,799 |
Deferred income taxes | 12,558 | 15,944 |
Total liabilities | 56,541 | 66,743 |
Commitments and contingencies | ||
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; 16,075 issued and outstanding in 2016; 15,989 issued; and outstanding in 2015 | 161 | 160 |
Additional paid-in capital | 176,066 | 173,700 |
Retained earnings | 80,556 | 63,293 |
Total stockholders’ equity | 256,783 | 237,153 |
Total liabilities and stockholders’ equity | $ 313,324 | $ 303,896 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 8,645 | $ 13,012 |
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) | 16,075,000 | 15,989,000 |
Common stock, outstanding (in shares) | 16,075,000 | 15,989,000 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenue | $ 73,803 | $ 76,291 | $ 234,514 | $ 241,998 |
Costs and expenses: | ||||
Instructional costs and services | 28,357 | 29,167 | 86,968 | 89,123 |
Selling and promotional | 13,139 | 14,062 | 44,592 | 47,233 |
General and administrative | 17,125 | 17,616 | 50,703 | 54,845 |
Loss on disposals of long-lived assets | 4,323 | 43 | 5,048 | 60 |
Loss on assets held for sale | 822 | 0 | 822 | 0 |
Impairment of goodwill | 4,735 | 0 | 4,735 | 0 |
Depreciation and amortization | 4,910 | 4,891 | 14,624 | 14,178 |
Total costs and expenses | 73,411 | 65,779 | 207,492 | 205,439 |
Income from operations before interest income and income taxes | 392 | 10,512 | 27,022 | 36,559 |
Interest income | 37 | 37 | 111 | 78 |
Income before income taxes | 429 | 10,549 | 27,133 | 36,637 |
Income tax expense | 85 | 3,796 | 10,524 | 13,994 |
Equity investment income/(loss) | (18) | 4 | 653 | (20) |
Net income | $ 326 | $ 6,757 | $ 17,262 | $ 22,623 |
Net Income per common share: | ||||
Basic (in dollars per share) | $ 0.02 | $ 0.41 | $ 1.07 | $ 1.34 |
Diluted (in dollars per share) | $ 0.02 | $ 0.41 | $ 1.07 | $ 1.33 |
Weighted average number of common shares: | ||||
Basic (in shares) | 16,074,701 | 16,562,177 | 16,057,710 | 16,843,587 |
Diluted (in shares) | 16,233,229 | 16,661,795 | 16,174,723 | 16,974,042 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities | ||
Net income | $ 17,262 | $ 22,623 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 14,624 | 14,178 |
Stock-based compensation | 3,972 | 4,083 |
Investment (income)/loss | (653) | 20 |
Deferred income taxes | (1,505) | (563) |
Loss on disposals of long-lived assets | 5,048 | 60 |
Loss on assets held for sale | 822 | 0 |
Impairment of goodwill | 4,735 | 0 |
Other | 10 | 55 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net of allowance for bad debt | 2,039 | (2,787) |
Prepaid expenses and other assets | 5,146 | (3,534) |
Income tax receivable | (1,182) | 813 |
Accounts payable and accrued liabilities | (2,791) | (866) |
Deferred revenue | (4,839) | 8,726 |
Net cash provided by operating activities | 42,688 | 42,808 |
Investing activities | ||
Capital expenditures | (9,670) | (19,564) |
Equity investment | (950) | (319) |
Dividends received from equity investment | 2,957 | 0 |
Note receivable | 0 | (226) |
Capitalized program development costs and other assets | (1,464) | (966) |
Net cash used in investing activities | (9,127) | (21,075) |
Financing activities | ||
Cash paid for repurchase of common stock | (630) | (23,064) |
Cash received from issuance of common stock | 28 | 29 |
Excess tax benefit from stock-based compensation | (1,002) | (503) |
Net cash used in financing activities | (1,604) | (23,538) |
Net increase/(decrease) in cash and cash equivalents | 31,957 | (1,805) |
Cash and cash equivalents at beginning of period | 105,734 | 115,634 |
Cash and cash equivalents at end of period | 137,691 | 113,829 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | $ 14,894 | $ 14,246 |
Nature of the Business
Nature of the Business | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business | Nature of the Business 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 92,200 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 operates 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, or ACICS, and the RN-to-BSN Program is accredited by the Commission on Collegiate Nursing Education. In June 2016, HCON was notified that its Diploma in Practical Nursing and Associates Degree in Nursing programs have been granted pre-accreditation candidacy status by the National League for Nursing Commission for Nursing Education Accreditation effective through June 23, 2019. 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. The Company's 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. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. All intercompany transactions have been eliminated in consolidation. The interim Consolidated Financial Statements do not include all of the information and notes required by GAAP for complete financial statement presentations. In the opinion of management, these statements include all adjustments (consisting of normal recurring adjustments) considered necessary to present a fair statement of the Company's consolidated results of operations, financial position, and cash flows. Operating results for any interim period are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Consolidated Financial Statements and accompanying notes in its audited financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2015 . Certain prior year amounts have been reclassified to conform with the current presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in these interim Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or FASB, issued ASU 2016-02, “ Leases (Topic 842) ” (“ASU 2016-02”) . ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. ASU 2016-02 must be adopted using a modified retrospective approach. Application will be required as of the beginning of the earliest comparative period presented. ASU 2016-02 requires lessees to record, at lease inception, a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. Under ASU 2016-02, lessees may elect not to recognize lease liabilities and right-of-use assets for most leases with terms of 12 months or less. ASU 2016-02 requires lease liabilities to be measured at the present value of the lease payments over the lease term. ASU 2016-02 provides that right-of-use assets are measured based on the liability, adjusted for lease prepayments, lease incentives received, and the lessee's initial direct costs. Pursuant to ASU 2016-02, expenses related to finance leases will be the sum of interest on the lease obligation and amortization of the right-of use asset and expenses related to operating leases will generally be recognized on a straight-line basis. In March 2016, the FASB issued ASU No. 2016-09, “ Compensation—Stock Compensation (Topic 718) ” (“ASU 2016-09”). ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted. ASU 2016-09 makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230) ” (“ASU 2016-15”). ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. ASU 2016-15 clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The Company is currently evaluating, but has not yet determined, the impact that implementation of these standards may have on its Consolidated Financial Statements and disclosures. There have been no other applicable material pronouncements issued since the filing of the Company's Annual Report. 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, the Company is required to maintain and restrict these funds pursuant to the terms of each subsidiary institution's program participation agreement with ED. Restricted cash on the Company's Consolidated Balance Sheets was $2.4 million and $3.3 million as of September 30, 2016 (unaudited) and December 31, 2015 , respectively. Changes in restricted cash that represent funds held for students as described above are included in cash flows from operating activities on the Company's Consolidated Statements of Cash Flows because these restricted funds are related to a core activity of its operations. Commitments and Contingencies The Company accrues for costs associated with contingencies including, but not limited to, regulatory compliance and legal matters when such costs are probable and can be reasonably estimated. Liabilities established to provide for contingencies are adjusted as further information develops, circumstances change, or contingencies are resolved. The Company bases these accruals on management’s estimate of such costs, which may vary from the ultimate cost and expenses associated with any such contingency. 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 APUS students utilize various payment sources and programs to finance educational expenses. These programs include funds from Department of Defense, or DoD, tuition assistance programs, education benefit programs administered by the U.S. Department of Veterans Affairs, or VA education benefits, 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 business, operations, financial condition and cash flows. A summary of APEI Segment revenue derived from APUS students by primary funding source for the three and nine months ended September 30, 2016 and September 30, 2015 is included in the table below (unaudited). Three Months Ended Nine Months Ended 2016 2015 2016 2015 Title IV programs 29.5% 31.2% 29.2% 31.8% DoD tuition assistance programs 35.2% 34.8% 35.7% 34.7% VA education benefits 22.3% 21.5% 22.1% 20.9% Cash and other sources 12.9% 12.5% 12.9% 12.6% HCON students also utilize various payment sources and programs to finance educational expenses, including Title IV programs and VA education benefits. For the nine months ended September 30, 2016 , approximately 84.4% of the HCON Segment’s revenue was derived from Title IV programs. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment All property and equipment is recorded 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 carrying amounts of long-lived assets are reviewed whenever certain events or changes in circumstances indicate that the carrying amounts may not be recoverable. During the three months and nine months ended September 30, 2016 , the Company's APEI Segment disposed of $4.3 million and $5.0 million in long-lived assets, respectively, primarily consisting of a loss that resulted from the abandoned development of a new student course registration engine. It was no longer probable development would be completed and the software placed in service due to programming difficulties that could not be resolved in a timely basis and without additional cost. The original carrying value of the software and incurred loss was $4.0 million . The losses on long-lived assets are included as loss on disposals of long-lived assets in these interim Consolidated Financial Statements. |
Assets Held for Sale
Assets Held for Sale | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Assets Held for Sale Assets held for sale represent excess real property located in Charles Town, West Virginia for our APEI Segment, no longer in use due to the relocation of employees to a new facility. Long-lived assets are classified as held for sale when the assets are expected to be sold within the next 12 months and meet the other relevant held-for-sale criteria. As such, the property is recorded at the lower of the carrying value or fair value, less cost to sell, until such time as the asset is sold. The fair value of the asset of $2.1 million , as determined by an independent appraisal, was less than the carrying value, and therefore the Company recognized a loss of $0.5 million during the three and nine months ended September 30, 2016 . During the three months ended September 30, 2016 , the Company's APEI Segment sold certain excess real property located in Charles Town, West Virginia, with a carrying value of $1.1 million for a net sales price of $0.8 million . This property was no longer in use due to relocation of employees to another facility. In connection with the sale, the Company recorded a loss on sale of $0.3 million . In connection with the items noted above, during the three and nine months ended September 30, 2016 , the Company's APEI Segment had a loss on assets held for sale of $0.8 million included in loss on assets held for sale in these interim Consolidated Financial Statements. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments In February 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. On February 1, 2016, the Company made an additional $950,000 investment in preferred stock of 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 right to representation on the Board of Directors of Fidelis Education. The Company accounts for its investments in Fidelis Education under the equity method of accounting. Therefore, the Company recorded the investments at cost and recognizes its share of earnings or losses in Fidelis Education in the periods for which they are reported with a corresponding adjustment in the carrying amount of the investment. 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 an information technology training company, New Horizons Worldwide, Inc., or New Horizons, representing approximately 19.9% of the fully diluted equity of NWHW Holdings. During the three months ended September 30, 2016 , the Company received a dividend of $3.0 million from NWHW Holdings. The Company accounts for its investment in NWHW Holdings using the equity method of accounting, and therefore recorded a corresponding reduction in the amount of its investment. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
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 applied ASC 805, Business Combinations, using the acquisition method of accounting. The Company recorded $38.6 million of goodwill, representing the excess of the purchase price over the amount assigned to the net assets acquired and the fair value assigned to identified intangible assets, and recorded $8.1 million of identified intangible assets. In accordance with ASC 350, Intangibles-Goodwill and Other , the Company assesses goodwill for impairment on or around each anniversary date of the acquisition, and more frequently if events and circumstances indicate that goodwill might be impaired. Goodwill impairment testing consists of an optional qualitative assessment as well as a two-step quantitative test. Step one involves comparing the fair value of the reporting unit to its carrying value. If the carrying value of the reporting unit is greater than zero and its fair value is greater than its carrying amount, there is no impairment. If the carrying value is greater than the fair value, the second step must be completed to measure the amount of impairment, if any. Step two involves calculating the implied fair value of goodwill by deducting the fair value of all tangible and intangible assets, excluding goodwill, of the reporting unit from the fair value of the reporting unit as determined in step one. The implied fair value of goodwill determined in this step is compared to the carrying value of goodwill. If the implied fair value of goodwill is less than the carrying value of goodwill, an impairment loss is recognized equal to the difference. In connection with the preparation of these interim consolidated financial statements, the Company completed a qualitative assessment to determine if an interim goodwill impairment test was necessary. Due to relevant circumstances that included, but were not limited to: (1) HCON's under performance against internal targets; (2) the challenging higher education competitive and regulatory environment, particularly for proprietary institutions; (3) overall financial performance; and (4) the uncertain status of ACICS, the Company concluded it was more likely than not the fair value of HCON was less than its carrying amount; therefore, the Company proceeded with step one of the goodwill impairment test. Step one of the goodwill impairment test identified that HCON’s fair value was less than the carrying value. Accordingly, step two testing was completed in order to determine the amount of the impairment. In step two, the fair value of all assets and liabilities was estimated for the purpose of deriving an estimate of the implied fair value of goodwill. The implied fair value of goodwill was then compared to the recorded goodwill to determine the amount of impairment. Step two testing indicated that the fair value of goodwill was $33.9 million or $4.7 million less than its carrying value. There was no impairment of the intangible assets. As a result, the Company recorded a pretax, non-cash charge of $4.7 million for the three and nine months ended September 30, 2016 to reduce the carrying value of its goodwill. The Company utilized an independent valuation firm to determine the fair value of HCON. The independent valuation firm weighted the results of four different valuation methods: (1) discounted cash flow; (2) guideline company method; (3) guideline transaction method - comparable transactions; and (4) guideline transaction method - private equity transactions. Under the income approach, fair value was determined based on estimated discounted future cash flows of HCON. The cash flows were discounted by an estimated risk weighted-average cost of capital, which was intended to reflect the overall level of inherent risk of HCON. Under the market approach, pricing terms from other transactions in the higher education market were used to determine the value of HCON. Values derived under the four valuation methods were then weighted to estimate HCON's enterprise value. Determining the fair value of HCON is judgmental in nature and requires the use of significant estimates and assumptions, including revenue growth rates, EBITDA margins, discount rates and future market conditions, among others. Given the current competitive and regulatory environment, and the uncertainties regarding the related impact on HCON’s business, there can be no assurance that the estimates and assumptions made for purposes of the Company’s interim goodwill impairment test will prove to be accurate predictions of the future. If the Company’s assumptions are not achieved, the Company may record additional goodwill impairment charges in future periods. It is not possible at this time to determine if any such future impairment charge would result or, if it does, whether such charge would be material. Changes in the carrying amount of goodwill by reportable segment during the nine months ended September 30, 2016 are as follows (in thousands) (unaudited): APEI Segment HCON Segment Total Goodwill Goodwill as of December 31, 2015 $ — $ 38,634 $ 38,634 Goodwill acquired — — — Accumulated impairment — (4,735 ) (4,735 ) Goodwill as of September 30, 2016 $ — $ 33,899 $ 33,899 The following table presents the components of the net carrying amount of goodwill by reportable segment as of September 30, 2016 (in thousands) (unaudited): APEI Segment HCON Segment Total Goodwill Gross carrying amount of Goodwill as of December 31, 2015 $ — 38,634 38,634 Accumulated impairment — (4,735 ) (4,735 ) Net carrying amount of Goodwill as of September 30, 2016 $ — $ 33,899 $ 33,899 Other intangible assets in our HCON Segment consist of the following as of September 30, 2016 (in thousands) (unaudited): Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Carrying Amount Finite-lived intangible assets Curricula $ 405 $ 394 $ — $ 11 Non-compete agreements 86 50 — 36 Student contracts and relationships 3,870 2,243 — 1,627 Total finite-lived intangible assets 4,361 2,687 — 1,674 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 $ 2,687 $ — $ 5,395 Identified intangible assets are amortized in a manner that reflects the estimated economic benefit of the intangible assets. The intangible assets Curricula and Non-compete agreements are amortized on a straight-line basis. The Student contracts and relationships intangible asset is amortized using an accelerated method. |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net 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 and restricted stock awards. Stock options are not included in the computation of diluted earnings per share when their effect is anti-dilutive. There were 246,074 and 248,674 anti-dilutive stock options excluded from the calculation for the three and nine months ended September 30, 2016 , respectively, compared to 298,991 and 324,353 anti-dilutive stock options excluded from the calculation for the three and nine months ended September 30, 2015 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is subject to U.S. Federal income taxes as well as income taxes of multiple state jurisdictions. For Federal and state tax purposes, the tax years from 2013 to 2015 remain open to examination. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation 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, that terminate due to expiration, forfeiture, cancellation or otherwise without the issuance of such shares. Prior to 2012, the Company issued a mix of stock options and restricted stock, but since 2011 the Company has not issued any stock options. Restricted Stock and Restricted Stock Unit Awards 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 the Company's stock price on the date of grant. The Company 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 table below summarizes the restricted stock and restricted stock unit awards activity for the nine months ended September 30, 2016 (unaudited): Number of Shares Weighted-Average Grant Price and Fair Value Non-vested, December 31, 2015 293,419 $ 35.86 Shares granted 336,125 $ 16.34 Vested shares (121,298 ) $ 38.18 Shares forfeited (30,069 ) $ 26.64 Non-vested, September 30, 2016 478,177 $ 21.89 Option Awards 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 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 indicative of the reasonableness of the original estimates of fair value made under FASB ASC Topic 718. Options previously granted vest ratably over periods of three to five years and expire in seven to ten years from the date of grant. Option activity is summarized as follows (unaudited): Number of Options Weighted Average Exercise Price Weighted-Average Contractual Life (Years) Aggregate Intrinsic Value (In thousands) Outstanding, December 31, 2015 329,872 $ 33.65 1.30 359 Options granted — $ — Awards exercised (4,000 ) $ 7.00 Awards forfeited (53,025 ) $ 37.09 Outstanding, September 30, 2016 272,847 $ 33.37 0.78 $ 345 Exercisable, September 30, 2016 272,847 $ 33.37 0.78 $ 345 Stock-Based Compensation Expense Stock-based compensation expense charged against income during the three and nine month periods ended September 30, 2016 and 2015 is as follows (unaudited): Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In thousands) Instructional costs and services $ 274 $ 378 $ 1,077 $ 1,156 Selling and promotional 168 165 524 493 General and administrative 813 797 2,371 2,434 Stock-based compensation expense in operating income 1,255 1,340 3,972 4,083 Tax benefit (504 ) (546 ) (1,566 ) (1,669 ) Stock-based compensation expense, net of tax $ 751 $ 794 $ 2,406 $ 2,414 As of September 30, 2016 , there was $6.6 million of total unrecognized compensation cost, representing unrecognized compensation cost associated with non-vested restricted stock and restricted stock units. The total remaining cost is expected to be recognized over a weighted average period of 1.7 years. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information 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 Company's Chief Executive Officer. The Company's Chief Executive Officer reviews operating results to make decisions about allocating resources and assessing performance for the APEI Segment and HCON Segment. A summary of financial information by reportable segment is as follows (unaudited): Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In thousands) Revenue: American Public Education Segment $ 67,065 $ 69,233 $ 212,859 $ 219,263 Hondros College of Nursing Segment 6,738 7,058 21,655 22,735 Total Revenue $ 73,803 $ 76,291 $ 234,514 $ 241,998 Depreciation and amortization: American Public Education Segment $ 4,550 $ 4,558 $ 13,619 $ 13,297 Hondros College of Nursing Segment 360 333 1,005 881 Total Depreciation and amortization $ 4,910 $ 4,891 $ 14,624 $ 14,178 Income (loss) from continuing operations before interest income and income taxes: American Public Education Segment $ 5,659 $ 10,049 $ 31,211 $ 34,179 Hondros College of Nursing Segment (5,267 ) 463 (4,189 ) 2,380 Total income (loss) from continuing operations before interest income and income taxes $ 392 $ 10,512 $ 27,022 $ 36,559 Interest income, net: American Public Education Segment $ 37 $ 37 $ 111 $ 78 Hondros College of Nursing Segment — — — — Total Interest income, net $ 37 $ 37 $ 111 $ 78 Income Tax expense (benefit): American Public Education Segment $ 2,100 $ 3,634 $ 12,111 $ 13,071 Hondros College of Nursing Segment (2,015 ) 162 (1,587 ) 923 Total Income Tax expense (benefit) $ 85 $ 3,796 $ 10,524 $ 13,994 Capital expenditures: American Public Education Segment $ 2,694 $ 6,314 $ 8,992 $ 18,448 Hondros College of Nursing Segment 72 487 678 1,116 Total Capital expenditures $ 2,766 $ 6,801 $ 9,670 $ 19,564 A summary of the Company’s consolidated assets by reportable segment is as follows (current period unaudited): As of September 30, 2016 As of December 31, 2015 (Unaudited) (In thousands) Assets: American Public Education Segment $ 264,230 $ 250,118 Hondros College of Nursing Segment 49,094 53,778 Total Assets $ 313,324 $ 303,896 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in these interim Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or FASB, issued ASU 2016-02, “ Leases (Topic 842) ” (“ASU 2016-02”) . ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. ASU 2016-02 must be adopted using a modified retrospective approach. Application will be required as of the beginning of the earliest comparative period presented. ASU 2016-02 requires lessees to record, at lease inception, a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. Under ASU 2016-02, lessees may elect not to recognize lease liabilities and right-of-use assets for most leases with terms of 12 months or less. ASU 2016-02 requires lease liabilities to be measured at the present value of the lease payments over the lease term. ASU 2016-02 provides that right-of-use assets are measured based on the liability, adjusted for lease prepayments, lease incentives received, and the lessee's initial direct costs. Pursuant to ASU 2016-02, expenses related to finance leases will be the sum of interest on the lease obligation and amortization of the right-of use asset and expenses related to operating leases will generally be recognized on a straight-line basis. In March 2016, the FASB issued ASU No. 2016-09, “ Compensation—Stock Compensation (Topic 718) ” (“ASU 2016-09”). ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted. ASU 2016-09 makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230) ” (“ASU 2016-15”). ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. ASU 2016-15 clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The Company is currently evaluating, but has not yet determined, the impact that implementation of these standards may have on its Consolidated Financial Statements and disclosures. There have been no other applicable material pronouncements issued since the filing of the Company's Annual Report. |
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, the Company is required to maintain and restrict these funds pursuant to the terms of each subsidiary institution's program participation agreement with ED. Restricted cash on the Company's Consolidated Balance Sheets was $2.4 million and $3.3 million as of September 30, 2016 (unaudited) and December 31, 2015 , respectively. Changes in restricted cash that represent funds held for students as described above are included in cash flows from operating activities on the Company's Consolidated Statements of Cash Flows because these restricted funds are related to a core activity of its operations. |
Commitments and Contingencies | Commitments and Contingencies The Company accrues for costs associated with contingencies including, but not limited to, regulatory compliance and legal matters when such costs are probable and can be reasonably estimated. Liabilities established to provide for contingencies are adjusted as further information develops, circumstances change, or contingencies are resolved. The Company bases these accruals on management’s estimate of such costs, which may vary from the ultimate cost and expenses associated with any such contingency. 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 APUS students utilize various payment sources and programs to finance educational expenses. These programs include funds from Department of Defense, or DoD, tuition assistance programs, education benefit programs administered by the U.S. Department of Veterans Affairs, or VA education benefits, 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 business, operations, financial condition and cash flows. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
American Public Education Segment | |
Segment Reporting Information [Line Items] | |
Summary of APEI segment revenue | A summary of APEI Segment revenue derived from APUS students by primary funding source for the three and nine months ended September 30, 2016 and September 30, 2015 is included in the table below (unaudited). Three Months Ended Nine Months Ended 2016 2015 2016 2015 Title IV programs 29.5% 31.2% 29.2% 31.8% DoD tuition assistance programs 35.2% 34.8% 35.7% 34.7% VA education benefits 22.3% 21.5% 22.1% 20.9% Cash and other sources 12.9% 12.5% 12.9% 12.6% |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill by reportable segment during the nine months ended September 30, 2016 are as follows (in thousands) (unaudited): APEI Segment HCON Segment Total Goodwill Goodwill as of December 31, 2015 $ — $ 38,634 $ 38,634 Goodwill acquired — — — Accumulated impairment — (4,735 ) (4,735 ) Goodwill as of September 30, 2016 $ — $ 33,899 $ 33,899 The following table presents the components of the net carrying amount of goodwill by reportable segment as of September 30, 2016 (in thousands) (unaudited): APEI Segment HCON Segment Total Goodwill Gross carrying amount of Goodwill as of December 31, 2015 $ — 38,634 38,634 Accumulated impairment — (4,735 ) (4,735 ) Net carrying amount of Goodwill as of September 30, 2016 $ — $ 33,899 $ 33,899 |
Schedule of Indefinite-Lived Intangible Assets | Other intangible assets in our HCON Segment consist of the following as of September 30, 2016 (in thousands) (unaudited): Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Carrying Amount Finite-lived intangible assets Curricula $ 405 $ 394 $ — $ 11 Non-compete agreements 86 50 — 36 Student contracts and relationships 3,870 2,243 — 1,627 Total finite-lived intangible assets 4,361 2,687 — 1,674 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 $ 2,687 $ — $ 5,395 |
Schedule of Finite-Lived Intangible Assets | Other intangible assets in our HCON Segment consist of the following as of September 30, 2016 (in thousands) (unaudited): Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Carrying Amount Finite-lived intangible assets Curricula $ 405 $ 394 $ — $ 11 Non-compete agreements 86 50 — 36 Student contracts and relationships 3,870 2,243 — 1,627 Total finite-lived intangible assets 4,361 2,687 — 1,674 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 $ 2,687 $ — $ 5,395 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of restricted stock and restricted stock unit awards | The table below summarizes the restricted stock and restricted stock unit awards activity for the nine months ended September 30, 2016 (unaudited): Number of Shares Weighted-Average Grant Price and Fair Value Non-vested, December 31, 2015 293,419 $ 35.86 Shares granted 336,125 $ 16.34 Vested shares (121,298 ) $ 38.18 Shares forfeited (30,069 ) $ 26.64 Non-vested, September 30, 2016 478,177 $ 21.89 |
Summary of option activity | Option activity is summarized as follows (unaudited): Number of Options Weighted Average Exercise Price Weighted-Average Contractual Life (Years) Aggregate Intrinsic Value (In thousands) Outstanding, December 31, 2015 329,872 $ 33.65 1.30 359 Options granted — $ — Awards exercised (4,000 ) $ 7.00 Awards forfeited (53,025 ) $ 37.09 Outstanding, September 30, 2016 272,847 $ 33.37 0.78 $ 345 Exercisable, September 30, 2016 272,847 $ 33.37 0.78 $ 345 |
Summary of stock-based compensation cost charged against income | Stock-based compensation expense charged against income during the three and nine month periods ended September 30, 2016 and 2015 is as follows (unaudited): Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In thousands) Instructional costs and services $ 274 $ 378 $ 1,077 $ 1,156 Selling and promotional 168 165 524 493 General and administrative 813 797 2,371 2,434 Stock-based compensation expense in operating income 1,255 1,340 3,972 4,083 Tax benefit (504 ) (546 ) (1,566 ) (1,669 ) Stock-based compensation expense, net of tax $ 751 $ 794 $ 2,406 $ 2,414 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Summary of financial information by reportable segment | A summary of financial information by reportable segment is as follows (unaudited): Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In thousands) Revenue: American Public Education Segment $ 67,065 $ 69,233 $ 212,859 $ 219,263 Hondros College of Nursing Segment 6,738 7,058 21,655 22,735 Total Revenue $ 73,803 $ 76,291 $ 234,514 $ 241,998 Depreciation and amortization: American Public Education Segment $ 4,550 $ 4,558 $ 13,619 $ 13,297 Hondros College of Nursing Segment 360 333 1,005 881 Total Depreciation and amortization $ 4,910 $ 4,891 $ 14,624 $ 14,178 Income (loss) from continuing operations before interest income and income taxes: American Public Education Segment $ 5,659 $ 10,049 $ 31,211 $ 34,179 Hondros College of Nursing Segment (5,267 ) 463 (4,189 ) 2,380 Total income (loss) from continuing operations before interest income and income taxes $ 392 $ 10,512 $ 27,022 $ 36,559 Interest income, net: American Public Education Segment $ 37 $ 37 $ 111 $ 78 Hondros College of Nursing Segment — — — — Total Interest income, net $ 37 $ 37 $ 111 $ 78 Income Tax expense (benefit): American Public Education Segment $ 2,100 $ 3,634 $ 12,111 $ 13,071 Hondros College of Nursing Segment (2,015 ) 162 (1,587 ) 923 Total Income Tax expense (benefit) $ 85 $ 3,796 $ 10,524 $ 13,994 Capital expenditures: American Public Education Segment $ 2,694 $ 6,314 $ 8,992 $ 18,448 Hondros College of Nursing Segment 72 487 678 1,116 Total Capital expenditures $ 2,766 $ 6,801 $ 9,670 $ 19,564 |
Summary of consolidated assets by reportable segment | A summary of the Company’s consolidated assets by reportable segment is as follows (current period unaudited): As of September 30, 2016 As of December 31, 2015 (Unaudited) (In thousands) Assets: American Public Education Segment $ 264,230 $ 250,118 Hondros College of Nursing Segment 49,094 53,778 Total Assets $ 313,324 $ 303,896 |
Nature of the Business (Details
Nature of the Business (Details) | 9 Months Ended |
Sep. 30, 2016subsidiarystudentcampussegment | |
Segment Reporting Information [Line Items] | |
Number of students | student | 92,200 |
Number of subsidiaries | subsidiary | 2 |
Number of reportable segments | segment | 2 |
Hondros College of Nursing Segment | |
Segment Reporting Information [Line Items] | |
Number of campuses | campus | 4 |
Basis of Presentation - Restric
Basis of Presentation - Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Restricted cash | $ 2.4 | $ 3.3 |
Basis of Presentation - Concent
Basis of Presentation - Concentration (Details) - Customer Concentration Risk - Sales Revenue, Services, Net | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
American Public Education Segment | Title IV programs | ||||
Concentration Risk [Line Items] | ||||
Percentage of segment revenue | 29.50% | 31.20% | 29.20% | 31.80% |
American Public Education Segment | DoD tuition assistance programs | ||||
Concentration Risk [Line Items] | ||||
Percentage of segment revenue | 35.20% | 34.80% | 35.70% | 34.70% |
American Public Education Segment | VA education benefits | ||||
Concentration Risk [Line Items] | ||||
Percentage of segment revenue | 22.30% | 21.50% | 22.10% | 20.90% |
American Public Education Segment | Cash and other sources | ||||
Concentration Risk [Line Items] | ||||
Percentage of segment revenue | 12.90% | 12.50% | 12.90% | 12.60% |
Hondros College of Nursing Segment | Title IV programs | ||||
Concentration Risk [Line Items] | ||||
Percentage of segment revenue | 84.40% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | $ 99,155 | $ 99,155 | $ 109,281 |
Loss of property and equipment disposal | $ 4,000 | ||
Software and Software Development Costs | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | ||
American Public Education Segment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, disposal amount | $ 4,300 | $ 5,000 | |
American Public Education Segment | Software Development | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | $ 4,000 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Impairment of assets held for sale | $ 822 | $ 0 | $ 822 | $ 0 | |
Loss on disposals of long-lived assets | 4,323 | $ 43 | 5,048 | $ 60 | |
American Public Education Segment | Disposal Group, Held-for-sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Impairment of assets held for sale | 800 | 800 | |||
Charles Town, West Virginia | American Public Education Segment | Disposal Group, Held-for-sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Assets held for sale, fair value | 2,100 | 2,100 | |||
Impairment of assets held for sale | 500 | 500 | |||
Assets held for sale, carrying value | $ 1,100 | ||||
Net sales price of assets held for sale | 800 | $ 800 | |||
Loss on disposals of long-lived assets | $ 300 |
Investments (Details)
Investments (Details) - USD ($) | Feb. 01, 2016 | Sep. 30, 2012 | Feb. 28, 2013 | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 |
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to acquire equity method investments | $ 950,000 | $ 319,000 | ||||
Fidelis Education | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to acquire equity method investments | $ 950,000 | $ 4,000,000 | ||||
Equity method investment, ownership percentage | 22.00% | 21.60% | ||||
NWHW Holdings | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to acquire equity method investments | $ 6,800,000 | |||||
Equity method investment, ownership percentage | 19.90% | |||||
Dividends received from equity investment | $ 3,000,000 |
Goodwill and Intangible Asset27
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Nov. 01, 2013 | |
Goodwill [Line Items] | ||||||
Goodwill | $ 33,899 | $ 38,634 | $ 33,899 | |||
Goodwill [Roll Forward] | ||||||
Goodwill as of December 31, 2015 | 38,634 | |||||
Goodwill acquired | 0 | |||||
Accumulated impairment | (4,735) | $ 0 | (4,735) | $ 0 | ||
Goodwill as of September 30, 2016 | 33,899 | 33,899 | ||||
American Public Education Segment | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 0 | 0 | 0 | |||
Goodwill [Roll Forward] | ||||||
Goodwill as of December 31, 2015 | 0 | |||||
Goodwill acquired | 0 | |||||
Accumulated impairment | 0 | |||||
Goodwill as of September 30, 2016 | 0 | 0 | ||||
Hondros College of Nursing Segment | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 33,899 | 38,634 | 33,899 | |||
Goodwill [Roll Forward] | ||||||
Goodwill as of December 31, 2015 | 38,634 | |||||
Goodwill acquired | 0 | |||||
Accumulated impairment | (4,735) | |||||
Goodwill as of September 30, 2016 | 33,899 | 33,899 | ||||
HCON | ||||||
Goodwill [Line Items] | ||||||
Goodwill | $ 38,600 | |||||
Business combination, identified intangible assets | $ 8,100 | |||||
Goodwill, fair value | $ 33,900 | |||||
Goodwill [Roll Forward] | ||||||
Accumulated impairment | $ (4,700) | $ (4,700) |
Goodwill and Intangible Asset28
Goodwill and Intangible Assets - Intangible Assets (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment of intangible assets | $ 0 | $ 0 |
Hondros College of Nursing Segment | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Carrying Amount | 4,361,000 | 4,361,000 |
Finite-lived intangible assets, Accumulated Amortization | 2,687,000 | 2,687,000 |
Finite-lived intangible assets, Net Carrying Amount | 1,674,000 | 1,674,000 |
Indefinite-lived intangible assets | 3,721,000 | 3,721,000 |
Intangible assets, Gross Carrying Amount | 8,082,000 | 8,082,000 |
Intangible assets, Net Carrying Amount | 5,395,000 | 5,395,000 |
Trade name | Hondros College of Nursing Segment | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 1,998,000 | 1,998,000 |
Accreditation, licensing and Title IV | Hondros College of Nursing Segment | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 1,686,000 | 1,686,000 |
Affiliation agreements | Hondros College of Nursing Segment | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 37,000 | 37,000 |
Curricula | Hondros College of Nursing Segment | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Carrying Amount | 405,000 | 405,000 |
Finite-lived intangible assets, Accumulated Amortization | 394,000 | 394,000 |
Finite-lived intangible assets, Net Carrying Amount | 11,000 | 11,000 |
Non-compete agreements | Hondros College of Nursing Segment | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Carrying Amount | 86,000 | 86,000 |
Finite-lived intangible assets, Accumulated Amortization | 50,000 | 50,000 |
Finite-lived intangible assets, Net Carrying Amount | 36,000 | 36,000 |
Student contracts and relationships | Hondros College of Nursing Segment | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Carrying Amount | 3,870,000 | 3,870,000 |
Finite-lived intangible assets, Accumulated Amortization | 2,243,000 | 2,243,000 |
Finite-lived intangible assets, Net Carrying Amount | $ 1,627,000 | $ 1,627,000 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stock option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock options (in shares) | 246,074 | 298,991 | 248,674 | 324,353 |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended |
Sep. 30, 2016 | |
Earliest Tax Year | |
Income Tax Examination [Line Items] | |
Tax years open to examination | 2,013 |
Latest Tax Year | |
Income Tax Examination [Line Items] | |
Tax years open to examination | 2,015 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Mar. 15, 2011 | |
Restricted Stock and Restricted Stock Units Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 6.6 | |
Unrecognized compensation cost, weighted average period | 1 year 8 months | |
Minimum | Stock option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options previously granted vesting period | 3 years | |
Options previously granted expiration period | 7 years | |
Maximum | Stock option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options previously granted vesting period | 5 years | |
Options previously granted expiration period | 10 years | |
2011 Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for grant (in shares) | 2,000,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Awards Activity (Details) - Restricted Stock and Restricted Stock Units Awards | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Number of Shares | |
Non vested, beginning balance (in shares) | shares | 293,419 |
Shares granted (in shares) | shares | 336,125 |
Vested shares (in shares) | shares | (121,298) |
Shares forfeited (in shares) | shares | (30,069) |
Non vested, ending balance (in shares) | shares | 478,177 |
Weighted-Average Grant Price and Fair Value | |
Non vested, beginning balance (in dollars per share) | $ / shares | $ 35.86 |
Shares granted (in dollars per share) | $ / shares | 16.34 |
Vested shares (in dollars per share) | $ / shares | 38.18 |
Shares forfeited (in dollars per share) | $ / shares | 26.64 |
Non vested, ending balance (in dollars per share) | $ / shares | $ 21.89 |
Stock-Based Compensation - Su33
Stock-Based Compensation - Summary of Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Number of Options | ||
Outstanding, beginning balance (in shares) | 329,872 | |
Options granted (in shares) | 0 | |
Awards exercised (in shares) | (4,000) | |
Awards forfeited (in shares) | (53,025) | |
Outstanding, ending balance (in shares) | 272,847 | 329,872 |
Exercisable, ending balance (in shares) | 272,847 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ 33.65 | |
Options granted (in dollars per share) | 0 | |
Awards exercised (in dollars per share) | 7 | |
Awards forfeited (in dollars per share) | 37.09 | |
Outstanding, ending balance (in dollars per share) | 33.37 | $ 33.65 |
Exercisable, ending balance (in dollars per share) | $ 33.37 | |
Weighted-Average Contractual Life (Years) and Aggregate Intrinsic Value (In thousands) | ||
Weighted-average contractual life outstanding, ending balance | 9 months 11 days | 1 year 3 months 18 days |
Weighted-average contractual life exercisable, ending balance | 9 months 11 days | |
Aggregate intrinsic value outstanding, ending balance | $ 345 | $ 359 |
Aggregate intrinsic value exercisable, ending balance | $ 345 |
Stock-Based Compensation - Su34
Stock-Based Compensation - Summary of Stock-based Compensation Cost Charged Against Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense in operating income | $ 1,255 | $ 1,340 | $ 3,972 | $ 4,083 |
Tax benefit | (504) | (546) | (1,566) | (1,669) |
Stock-based compensation expense, net of tax | 751 | 794 | 2,406 | 2,414 |
Instructional costs and services | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense in operating income | 274 | 378 | 1,077 | 1,156 |
Selling and promotional | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense in operating income | 168 | 165 | 524 | 493 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense in operating income | $ 813 | $ 797 | $ 2,371 | $ 2,434 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2016segment | |
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 | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue: | ||||
Total Revenue | $ 73,803 | $ 76,291 | $ 234,514 | $ 241,998 |
Depreciation and amortization: | ||||
Total Depreciation and amortization | 4,910 | 4,891 | 14,624 | 14,178 |
Income (loss) from continuing operations before interest income and income taxes: | ||||
Total income (loss) from continuing operations before interest income and income taxes | 392 | 10,512 | 27,022 | 36,559 |
Interest income, net: | ||||
Interest income | 37 | 37 | 111 | 78 |
Income Tax expense (benefit): | ||||
Total Income Tax expense (benefit) | 85 | 3,796 | 10,524 | 13,994 |
Capital expenditures: | ||||
Total Capital expenditures | 2,766 | 6,801 | 9,670 | 19,564 |
American Public Education Segment | ||||
Revenue: | ||||
Total Revenue | 67,065 | 69,233 | 212,859 | 219,263 |
Depreciation and amortization: | ||||
Total Depreciation and amortization | 4,550 | 4,558 | 13,619 | 13,297 |
Income (loss) from continuing operations before interest income and income taxes: | ||||
Total income (loss) from continuing operations before interest income and income taxes | 5,659 | 10,049 | 31,211 | 34,179 |
Interest income, net: | ||||
Interest income | 37 | 37 | 111 | 78 |
Income Tax expense (benefit): | ||||
Total Income Tax expense (benefit) | 2,100 | 3,634 | 12,111 | 13,071 |
Capital expenditures: | ||||
Total Capital expenditures | 2,694 | 6,314 | 8,992 | 18,448 |
Hondros College of Nursing Segment | ||||
Revenue: | ||||
Total Revenue | 6,738 | 7,058 | 21,655 | 22,735 |
Depreciation and amortization: | ||||
Total Depreciation and amortization | 360 | 333 | 1,005 | 881 |
Income (loss) from continuing operations before interest income and income taxes: | ||||
Total income (loss) from continuing operations before interest income and income taxes | (5,267) | 463 | (4,189) | 2,380 |
Interest income, net: | ||||
Interest income | 0 | 0 | 0 | 0 |
Income Tax expense (benefit): | ||||
Total Income Tax expense (benefit) | (2,015) | 162 | (1,587) | 923 |
Capital expenditures: | ||||
Total Capital expenditures | $ 72 | $ 487 | $ 678 | $ 1,116 |
Segment Information - Summary37
Segment Information - Summary of Consolidated Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Total Assets | $ 313,324 | $ 303,896 |
American Public Education Segment | ||
Assets: | ||
Total Assets | 264,230 | 250,118 |
Hondros College of Nursing Segment | ||
Assets: | ||
Total Assets | $ 49,094 | $ 53,778 |