Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 02, 2021 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 001-34211 | |
Entity Registrant Name | GRAND CANYON EDUCATION, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-3356009 | |
Entity Address, Address Line One | 2600 W. Camelback Road | |
Entity Address, City or Town | Phoenix | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85017 | |
City Area Code | 602 | |
Local Phone Number | 247-4400 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | LOPE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 45,185,834 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001434588 | |
Amendment Flag | false |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Consolidated Income Statements | ||||
Service revenue | $ 201,487 | $ 185,768 | $ 438,421 | $ 407,423 |
Costs and expenses: | ||||
Technology and academic services | 33,676 | 27,151 | 65,727 | 53,428 |
Counseling services and support | 60,932 | 57,596 | 122,171 | 117,815 |
Marketing and communication | 45,445 | 41,105 | 93,176 | 83,798 |
General and administrative | 9,081 | 9,501 | 18,663 | 19,066 |
Amortization of intangible assets | 2,105 | 2,105 | 4,210 | 4,210 |
Total costs and expenses | 151,239 | 137,458 | 303,947 | 278,317 |
Operating income | 50,248 | 48,310 | 134,474 | 129,106 |
Interest income on Secured Note | 14,773 | 14,723 | 29,322 | 29,433 |
Interest expense | (763) | (1,073) | (1,562) | (2,619) |
Investment interest and other | 238 | 396 | 359 | 612 |
Income before income taxes | 64,496 | 62,356 | 162,593 | 156,532 |
Income tax expense | 15,035 | 15,346 | 35,020 | 38,137 |
Net income | $ 49,461 | $ 47,010 | $ 127,573 | $ 118,395 |
Earnings per share: | ||||
Basic income per share | $ 1.09 | $ 1 | $ 2.78 | $ 2.51 |
Diluted income per share | $ 1.09 | $ 1 | $ 2.78 | $ 2.49 |
Basic weighted average shares outstanding | 45,490 | 46,893 | 45,810 | 47,174 |
Diluted weighted average shares outstanding | 45,582 | 47,151 | 45,964 | 47,457 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 69,448 | $ 245,769 |
Investments | 44,415 | 10,840 |
Accounts receivable, net | 19,888 | 62,189 |
Interest receivable on Secured Note | 5,011 | |
Income tax receivable | 1,330 | 1,294 |
Other current assets | 11,989 | 8,639 |
Total current assets | 147,070 | 333,742 |
Property and equipment, net | 133,003 | 128,657 |
Right-of-use assets | 59,303 | 61,020 |
Secured Note receivable, net | 1,154,912 | 964,912 |
Amortizable intangible assets, net | 189,428 | 193,638 |
Goodwill | 160,766 | 160,766 |
Other assets | 2,485 | 1,844 |
Total assets | 1,846,967 | 1,844,579 |
Current liabilities | ||
Accounts payable | 22,452 | 16,583 |
Accrued compensation and benefits | 36,210 | 34,248 |
Accrued liabilities | 24,963 | 21,945 |
Income taxes payable | 54 | 5,405 |
Deferred revenue | 9,760 | |
Current portion of lease liability | 7,423 | 7,393 |
Current portion of notes payable | 68,145 | 33,144 |
Total current liabilities | 169,007 | 118,718 |
Deferred income taxes, noncurrent | 22,069 | 20,288 |
Other long-term liability | 50 | 3 |
Lease liability, less current portion | 55,101 | 56,611 |
Notes payable, less current portion | 58,057 | 74,630 |
Total liabilities | 304,284 | 270,250 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, $0.01 par value, 10,000 shares authorized; 0 shares issued and outstanding at June 30, 2021 and December 31, 2020 | ||
Common stock, $0.01 par value, 100,000 shares authorized; 53,637 and 53,277 shares issued and 45,396 and 46,649 shares outstanding at June 30, 2021 and December 31, 2020, respectively | 536 | 533 |
Treasury stock, at cost, 8,241 and 6,628 shares of common stock at June 30, 2021 and December 31, 2020, respectively | (461,052) | (303,379) |
Additional paid-in capital | 281,103 | 282,467 |
Accumulated other comprehensive loss | (185) | |
Retained earnings | 1,722,281 | 1,594,708 |
Total stockholders' equity | 1,542,683 | 1,574,329 |
Total liabilities and stockholders' equity | $ 1,846,967 | $ 1,844,579 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 53,637 | 53,277 |
Common stock, shares outstanding | 45,396 | 46,649 |
Treasury stock, shares | 8,241 | 6,628 |
Consolidated Statements of Othe
Consolidated Statements of Other Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Consolidated Statements of Other Comprehensive Income | ||||||
Net income | $ 49,461 | $ 47,010 | $ 127,573 | $ 118,395 | ||
Other comprehensive income, net of tax: | ||||||
Unrealized losses on available-for-sale securities, net of taxes of $22 for the three months ended June 30, 2021 and $57 for the six months ended June 30, 2020 | (65) | (185) | ||||
Comprehensive income | $ 49,396 | $ 77,992 | $ 47,010 | $ 71,385 | $ 127,388 | $ 118,395 |
Consolidated Statements of Ot_2
Consolidated Statements of Other Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Consolidated Statements of Other Comprehensive Income | ||
Unrealized gains (losses) on available for sale securities, taxes | $ 22 | $ 57 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained EarningsCumulative Effect of Adoption Adjustment | Retained Earnings | Cumulative Effect of Adoption Adjustment | Total |
Beginning Balance (ASU 2016-13) at Dec. 31, 2019 | $ (3,832) | $ (3,832) | ||||||
Beginning Balance at Dec. 31, 2019 | $ 531 | $ (169,365) | $ 270,923 | $ 1,341,344 | $ 1,443,433 | |||
Beginning Balance, shares at Dec. 31, 2019 | 53,054 | 4,949 | ||||||
Comprehensive income | 71,385 | 71,385 | ||||||
Common stock purchased for treasury | $ (60,737) | (60,737) | ||||||
Common stock acquired, shares | 787 | |||||||
Restricted shares forfeited, shares | 10 | |||||||
Share-based compensation | $ 1 | $ (4,969) | 2,655 | (2,313) | ||||
Share-based compensation, shares | 164 | 62 | ||||||
Exercise of stock options | 72 | 72 | ||||||
Exercise of stock options, shares | 3 | |||||||
Ending Balance at Mar. 31, 2020 | $ 532 | $ (235,071) | 273,650 | 1,408,897 | 1,448,008 | |||
Ending Balance, shares at Mar. 31, 2020 | 53,221 | 5,808 | ||||||
Beginning Balance (ASU 2016-13) at Dec. 31, 2019 | $ (3,832) | (3,832) | ||||||
Beginning Balance at Dec. 31, 2019 | $ 531 | $ (169,365) | 270,923 | 1,341,344 | 1,443,433 | |||
Beginning Balance, shares at Dec. 31, 2019 | 53,054 | 4,949 | ||||||
Comprehensive income | 118,395 | |||||||
Ending Balance (ASU 2016-13) at Jun. 30, 2020 | (3,832) | |||||||
Ending Balance at Jun. 30, 2020 | $ 532 | $ (243,382) | 276,330 | 1,455,907 | 1,489,387 | |||
Ending Balance, shares at Jun. 30, 2020 | 53,225 | 5,919 | ||||||
Beginning Balance at Mar. 31, 2020 | $ 532 | $ (235,071) | 273,650 | 1,408,897 | 1,448,008 | |||
Beginning Balance, shares at Mar. 31, 2020 | 53,221 | 5,808 | ||||||
Comprehensive income | 47,010 | 47,010 | ||||||
Common stock purchased for treasury | $ (8,311) | (8,311) | ||||||
Common stock acquired, shares | 111 | |||||||
Share-based compensation | 2,678 | 2,678 | ||||||
Share-based compensation, shares | 3 | |||||||
Exercise of stock options | 2 | 2 | ||||||
Exercise of stock options, shares | 1 | |||||||
Ending Balance (ASU 2016-13) at Jun. 30, 2020 | $ (3,832) | |||||||
Ending Balance at Jun. 30, 2020 | $ 532 | $ (243,382) | 276,330 | 1,455,907 | 1,489,387 | |||
Ending Balance, shares at Jun. 30, 2020 | 53,225 | 5,919 | ||||||
Beginning Balance at Dec. 31, 2020 | $ 533 | $ (303,379) | 282,467 | 1,594,708 | 1,574,329 | |||
Beginning Balance, shares at Dec. 31, 2020 | 53,277 | 6,628 | ||||||
Comprehensive income | $ (120) | 78,112 | 77,992 | |||||
Common stock purchased for treasury | $ (56,348) | (7,000) | (63,348) | |||||
Common stock acquired, shares | 567 | |||||||
Share-based compensation | $ 1 | $ (5,994) | 3,018 | (2,975) | ||||
Share-based compensation, shares | 180 | 56 | ||||||
Exercise of stock options | $ 2 | 2,678 | 2,680 | |||||
Exercise of stock options, shares | 176 | |||||||
Ending Balance at Mar. 31, 2021 | $ 536 | $ (365,721) | 281,163 | (120) | 1,672,820 | 1,588,678 | ||
Ending Balance, shares at Mar. 31, 2021 | 53,633 | 7,251 | ||||||
Beginning Balance at Dec. 31, 2020 | $ 533 | $ (303,379) | 282,467 | 1,594,708 | 1,574,329 | |||
Beginning Balance, shares at Dec. 31, 2020 | 53,277 | 6,628 | ||||||
Comprehensive income | 127,388 | |||||||
Ending Balance at Jun. 30, 2021 | $ 536 | $ (461,052) | 281,103 | (185) | 1,722,281 | 1,542,683 | ||
Ending Balance, shares at Jun. 30, 2021 | 53,637 | 8,241 | ||||||
Beginning Balance at Mar. 31, 2021 | $ 536 | $ (365,721) | 281,163 | (120) | 1,672,820 | 1,588,678 | ||
Beginning Balance, shares at Mar. 31, 2021 | 53,633 | 7,251 | ||||||
Comprehensive income | (65) | 49,461 | 49,396 | |||||
Common stock purchased for treasury | $ (95,331) | (3,000) | (98,331) | |||||
Common stock acquired, shares | 982 | |||||||
Restricted shares forfeited, shares | 8 | |||||||
Share-based compensation | 2,940 | 2,940 | ||||||
Share-based compensation, shares | 4 | |||||||
Ending Balance at Jun. 30, 2021 | $ 536 | $ (461,052) | $ 281,103 | $ (185) | $ 1,722,281 | $ 1,542,683 | ||
Ending Balance, shares at Jun. 30, 2021 | 53,637 | 8,241 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Statement of Stockholders' Equity | |
Cumulative effect from the adoption of accounting pronouncements, tax | $ 1,168 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows provided by operating activities: | ||
Net income | $ 127,573 | $ 118,395 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Share-based compensation | 5,959 | 5,334 |
Depreciation and amortization | 10,821 | 10,300 |
Amortization of intangible assets | 4,210 | 4,210 |
Deferred income taxes | 1,837 | 1,466 |
Other, including fixed asset impairments | 302 | 111 |
Changes in assets and liabilities: | ||
Accounts receivable and interest receivable from university partners | 47,312 | 33,384 |
Other assets | (3,975) | (5,234) |
Right-of-use assets and lease liabilities | 237 | 1,079 |
Accounts payable | 6,653 | 2,846 |
Accrued liabilities | 5,027 | 9,266 |
Income taxes receivable/payable | (5,387) | 32,206 |
Deferred revenue | 9,760 | 7,689 |
Net cash provided by operating activities | 210,329 | 221,052 |
Cash flows used in investing activities: | ||
Capital expenditures | (15,757) | (12,229) |
Additions of amortizable content | (271) | (147) |
Purchases of investments | (51,223) | |
Funding to GCU | (190,000) | (75,000) |
Proceeds from sale or maturity of investments | 17,166 | 6,799 |
Net cash used in investing activities | (240,085) | (80,577) |
Cash flows (used in) provided by financing activities: | ||
Principal payments on notes payable | (16,572) | (16,572) |
Net borrowings from revolving line of credit | 35,000 | |
Repurchase of common shares including shares withheld in lieu of income taxes | (167,673) | (74,017) |
Net proceeds from exercise of stock options | 2,680 | 74 |
Net cash used in financing activities | (146,565) | (90,515) |
Net increase (decrease) in cash and cash equivalents and restricted cash | (176,321) | 49,960 |
Cash and cash equivalents and restricted cash, beginning of period | 245,769 | 122,572 |
Cash and cash equivalents and restricted cash, end of period | 69,448 | 172,532 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 1,658 | 2,619 |
Cash paid for income taxes | 37,132 | 1,850 |
Supplemental disclosure of non-cash investing and financing activities | ||
Purchases of property and equipment included in accounts payable | 422 | 2,689 |
ROU Asset and Liability recognition | $ 1,717 | $ 15,510 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Dec. 31, 2020 | |
Stockholders equity | $ 1,542,683 | $ 1,489,387 | $ 1,448,008 | $ 1,542,683 | $ 1,489,387 | $ 1,443,433 | $ 1,588,678 | $ 1,574,329 |
Allowance for credit losses | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | $ 5,000 | ||
Income tax expense | $ 15,035 | 15,346 | $ 35,020 | 38,137 | ||||
Income taxes | $ 1,168 | |||||||
Cumulative Effect of Adoption Adjustment | ASU 2016-13 | ||||||||
Stockholders equity | (3,832) | (3,832) | (3,832) | |||||
Allowance for credit losses | $ 5,000 | 5,000 | 5,000 | |||||
Income tax expense | $ 1,168 | $ 1,168 |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 2021 | |
Nature of Business | |
Nature of Business | 1. Nature of Business Grand Canyon Education, Inc. (together with its subsidiaries, the “Company” or “GCE”) is a publicly traded education services company dedicated to serving colleges and universities. GCE has developed significant technological solutions, infrastructure and operational processes to provide services to these institutions on a large scale. GCE’s most significant university partner is Grand Canyon University (“GCU”), an Arizona non-profit corporation, a comprehensive regionally accredited university that offers graduate and undergraduate degree programs, emphases and certificates across off-campus classroom and laboratory sites. In January 2019, GCE began providing education services to numerous university partners across the United States, through our wholly owned subsidiary, Orbis Education, which we acquired, by merger on January 22, 2019 for $361,184 , net of cash acquired (the “Acquisition”). In the healthcare field, GCE, together with Orbis Education, works in partnership with a growing number of top universities and healthcare networks across the country, offering healthcare-related academic programs at off-campus classroom and laboratory sites located near healthcare providers and developing high-quality, career-ready graduates who enter the workforce ready to meet the demands of the healthcare industry. As of June 30, 2021, GCE provides education services to 27 university partners across the United States. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany transactions have been eliminated in consolidation. Unaudited Interim Financial Information The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles and pursuant to the rules and regulations of the United States Securities and Exchange Commission and the instructions to Form 10-Q and Article 10, consistent in all material respects with those applied in its financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2020. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that in the opinion of management are necessary for the fair presentation of the interim periods presented. Interim results are not necessarily indicative of results for a full year. These consolidated financial statements should be read in conjunction with the Company’s audited financial statements and footnotes included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2020 from which the December 31, 2020 balance sheet information was derived. Investments At June 30, 2021 and December 31, 2020, the Company considers its investments in corporate bonds, commercial paper, municipal securities, asset backed securities, municipal bonds, and collateralized mortgage obligations either as trading securities or available-for-sale securities based on the Company’s intent for the respective security. Trading securities are carried at fair value determined using Level 1 and Level 2 of the hierarchy of valuation inputs, with the use of quoted market prices and inputs other than quoted prices that are observable for the assets. Available-for-sale securities are carried at fair value, determined using Level 2 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the assets, with unrealized gains and losses, net of tax, reported as a separate component of other comprehensive income. Unrealized losses considered to be other-than-temporary are recognized currently in earnings. Amortization of premiums, accretion of discounts, interest and dividend income and realized gains and losses are included in interest and other income. Arrangements with GCU On July 1, 2018, the Company consummated an Asset Purchase Agreement (the “Asset Purchase Agreement”) with GCU. In conjunction with the Asset Purchase Agreement, we received a secured note from GCU as consideration for the transferred assets (the “Transferred Assets”) in the initial principal amount of provides for GCU to make interest only payments during the term, with all principal and accrued and unpaid interest due at maturity and also provides that we may loan additional amounts to GCU to fund approved capital expenditures. As of June 30, 2021, the Company had loaned in June 2021. The that was borrowed in June 2021 was repaid in July 2021. In Except for identified liabilities assumed by GCU, GCE retained responsibility for all liabilities of the business arising from pre-closing operations. Internally Developed Software The Company capitalizes certain costs related to internal-use software, primarily consisting of direct labor associated with creating the software. Software development projects generally include three stages: the preliminary project stage (all costs are expensed as incurred), the application development stage (certain costs are capitalized and certain costs are expensed as incurred) and the post-implementation or operation stage (all costs are expensed as incurred). Costs capitalized in the application development stage include costs of design, coding, integration, and testing of the software developed. Capitalization of costs requires judgment in determining when a project has reached the application development stage and the period over which we expect to benefit from the use of that software. Once the software is placed in service, these costs are amortized straight-line over the estimated useful life of the software, which is generally three years . These assets are a component of our property and equipment, net in our consolidated balance sheets. Capitalized Content Development The Company capitalizes certain costs to fulfill a contract related to the development and digital creation of content on a course-by-course basis for each university partner, many times in conjunction with faculty and subject matter experts. The Company is responsible for the conversion of instructional materials to an on-line format, including outlines, quizzes, lectures, and articles in accordance with the educational guidelines provided to us by our university partners, prior to the respective course commencing. We also capitalize the creation of learning objects which are digital assets such as online demonstrations, simulations, and case studies used to obtain learning objectives. Costs that are capitalized include payroll and payroll-related costs for employees who are directly associated and spend time producing content and payments to faculty and subject matter experts involved in the process. The Company starts capitalizing content costs when it begins to develop or to convert a particular course, resources have been assigned and a timeline has been set. The content asset is placed in service when all work is complete and the curriculum could be used for instruction. Capitalized content development assets are included in other assets in our consolidated balance sheets. The Company has concluded that the most appropriate method to amortize the deferred content assets is on a straight-line basis over the estimated life of the course, which is generally four years which corresponds with course’s review and major revision cycle. As of June 30, 2021 and December 31, 2020, $1,214 and $1,198, respectively, net of amortization, of deferred content assets are included in other assets, long-term in the Company’s consolidated balance sheets and amortization is included in technical and academic services where the costs originated. Leases The Company determines if an arrangement is a lease at inception and evaluates the lease agreement to determine whether the lease is a finance or operating lease. Right-of-use (“ROU”) assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement to determine the present value of lease payments over the lease term. At lease inception, the Company determines the lease term by assuming no exercises of renewal options, due to the Company’s constantly changing geographical needs for its university partners. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and are recognized as lease expense on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, and the non-lease components are accounted for separately and not included in our ROU assets and lease liabilities. Leases primarily consist of off-campus classroom and laboratory site locations and office space. Business Combinations The purchase price of an acquisition is allocated to the assets acquired, including tangible and intangible assets, and liabilities assumed, based on their respective fair values at the acquisition date. The excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Transaction costs associated with business combinations are expensed as incurred and are recorded in the loss on transaction in the consolidated financial statements. The determination of the fair value and useful lives of the intangible assets acquired involves certain judgments and estimates. These judgements can include, but are not limited to, the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital. The net assets and result of operations of an acquired entity are included in the Company’s consolidated financial statements from the acquisition date. Goodwill and Amortizable Intangible Assets Goodwill represents the excess of the purchase price of an acquired business over the amount assigned to the tangible and intangible assets acquired and liabilities assumed. Goodwill is assessed at least annually for impairment during the fourth quarter, or more frequently if circumstances indicate potential impairment. Goodwill is allocated to our reporting unit at the education services segment, which is the same as the entity as a whole (entity level reporting unit). The Company has concluded there is one operating segment and one reporting unit for goodwill impairment consideration. The Financial Accounting Standards Board (“FASB”) has issued guidance that permits an entity to first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. The Company reviews goodwill at least annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Finite-lived intangible assets that are acquired in a business combination are recorded at fair value on their acquisition dates and are amortized on a straight-line basis over the estimated useful life of the intangible asset. Finite-lived intangible assets consist of university partner relationships and trade names. The Company reviews its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. There were no indicators that the carrying amount of the finite-lived intangible assets were impaired as of June 30, 2021. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future net cash flows expected to be generated by the assets. If such intangible assets are not recoverable, a potential impairment loss is recognized to the extent the carrying amounts of the assets exceeds the fair value of the assets. Acquisition On January 22, 2019, GCE acquired Orbis Education for $361,184 (inclusive of closing date adjustments and net of cash acquired). The Acquisition was accounted for in accordance with the acquisition method of accounting. Under this method the cost of the target is allocated to the identifiable assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The estimated fair values of current assets and liabilities were based upon their historical costs on the date of acquisition due to their short-term nature. The majority of property and equipment were also estimated based upon historical costs as they approximated fair value. Identified intangible assets of . The fair value of university partner relationships was determined using the multiple-period excess earnings method. The fair value of the assets acquired, less the liabilities assumed, exceeded the purchase price by Share-Based Compensation The Company measures and recognizes compensation expense for share-based payment awards made to employees and directors. The fair value of the Company’s restricted stock awards is based on the market price of its common stock on the date of grant. Stock-based compensation expense related to restricted stock grants is expensed over the vesting period using the straight-line method for Company employees and the Company’s board of directors. The Company recognizes forfeitures as they occur. Fair Value of Financial Instruments The carrying value of cash and cash equivalents, accounts receivable, accounts payable, accrued compensation and benefits and accrued liabilities expenses approximate their fair value based on the liquidity or the short-term maturities of these instruments. As of June 30, 2021 and December 31, 2020 the fair value of the Company’s Secured Note was $1,231,524 and $1,049,458, respectively. As of June 30, 2021 and December 31, 2020 the carrying value of Secured Note receivable was $1,154,912 and $964,912 , respectively. The carrying value of notes payable approximates fair value as it is based on variable rate index. The fair value of investments was determined using Level 1 and Level 2 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the assets. The unit of account used for valuation is the individual underlying security. The basis for fair value measurements for each level is described below, with Level 1 having the highest priority. -Level 1 – inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. -Level 2 – inputs are quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in non-active markets; and model-derived valuations whose inputs are observable or whose significant valuation drivers are observable. Investments are comprised of corporate bonds, commercial paper, municipal securities, asset backed securities, municipal bonds, and collateralized mortgage obligations. Revenue Recognition The Company generates all of its revenue through services agreements with its university partners (“Services Agreements”), pursuant to which the Company provides integrated technology and academic services, marketing and communication services, and back office services to its university partners in return for a percentage of tuition and fee revenue. The Company’s Services Agreements have initial terms ranging from 7-15 years , subject to renewal options, although certain agreements may give the university partners the right to terminate early if certain conditions are met. The Company’s Services Agreements have a single performance obligation, as the promises to provide the identified services are not distinct within the context of these agreements. The single performance obligation is delivered as our partners receive and consume benefits, which occurs ratably over a series of distinct service periods (daily or semester). Service revenue is recognized over time using the output method of measuring progress towards complete satisfaction of the single performance obligation. The output method provides a faithful depiction of the performance toward complete satisfaction of the performance obligation and can be tied to the time elapsed which is consumed evenly over the service period and is a direct measurement of the value provided to our partners. The service fees received from our partners over the term of the agreement are variable in nature in that they are dependent upon the number of students attending the university partner’s program and revenues generated from those students during the service period. Due to the variable nature of the consideration over the life of the service arrangement, the Company considered forming an expectation of the variable consideration to be received over the service life of this one performance obligation. However, since the performance obligation represents a series of distinct services, the Company recognizes the variable consideration that becomes known and billable because these fees relate to the distinct service period in which the fees are earned. The Company meets the criteria in the standard and exercises the practical expedient to not disclose the aggregate amount of the transaction price allocated to the single performance obligation that is unsatisfied as of the end of the reporting period. The Company does not disclose the value of unsatisfied performance obligations because the directly allocable variable consideration is allocated entirely to a wholly unsatisfied promise to transfer a service that forms part of a single performance obligation. The service fees are calculated and settled per the terms of the Services Agreements and result in a settlement duration of less than one year for all partners. There are no refunds or return rights under the Services Agreements. The Company’s receivables represent unconditional rights to consideration from our Services Agreements with our university partners. Accounts receivable, net is stated at amortized cost, net of any allowance for credit losses and contains billed and unbilled revenue. The Company evaluates the need for an allowance for credit losses using relevant available information about expected credit losses, including information about historical credit losses, past events, current conditions, and other factors which may affect the collectability of receivables. There have been allowance for credit losses established as of June 30, 2021 given historical collection experience. The Company will continue to review and revise its allowance methodology based on its collection experience with its partners. For our partners with unbilled revenue, revenue recognition occurs in advance of billings. Billings for some university partners do not occur until after the service period has commenced and final enrollment information is available. Our unbilled revenue of $8,811 and $294 as of June 30, 2021 and December 31, 2020, respectively, are included in accounts receivable in our consolidated balance sheets. Deferred revenue represents the excess of amounts received as compared to amounts recognized in revenue on our consolidated statements of income as of the end of the reporting period, and such amounts are reflected as a current liability on our consolidated balance sheets. We generally receive payments for our services billed within 30 days of invoice. These payments are recorded as deferred revenue until the services are delivered and revenue is recognized. Allowance for Credit Losses The Company records its accounts receivable and Secured Note receivable at the net amount expected to be collected. Our accounts receivable are derived through education services provided to university partners. Our Secured Note receivable was derived through the sale of university related assets to our most significant university partner, GCU. The Company maintains an allowance for credit losses resulting from our university partners not making payments. The Company determines the adequacy of the allowance by periodically evaluating each university partners balance, considering their financial condition and credit history, and considering current and forecasted economic conditions. Since our transition to an education services company on July 1, 2018, and continued growth to Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments using a modified retrospective approach. This model requires consideration of a broader range of reasonable and supportable information and requires the Company to estimate expected credit losses including a measure of the expected risk of credit loss even if that risk is remote over the lifetime of the asset. Upon adoption, the Company recorded a reserve of on its long-term Secured Note receivable. The cumulative effect for the Company upon adoption of this new standard was . Bad debt expense is recorded as a technology and academic services expense in the consolidated income statements. The Company will continue to actively monitor the impact of the COVID-19 pandemic on expected credit losses. Technology and Academic Services Technology and academic services consist primarily of costs related to ongoing maintenance of educational infrastructure, including online course delivery and management, student records, assessment, customer relations management and other internal administrative systems. This also includes costs to provide support for content development, faculty training, development and other faculty support, technology support, rent and occupancy costs for university partners’ off-campus locations, and assistance with state compliance. This expense category includes salaries, benefits and share-based compensation, information technology costs, amortization of content development costs and other costs associated with these support services. This category also includes an allocation of depreciation, amortization, and occupancy costs attributable to the provision of certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. Counseling Services and Support Counseling services and support consist primarily of costs including team-based counseling and other support to prospective and current students as well as financial aid processing. This expense category includes salaries, benefits and share-based compensation, and other costs such as dues, fees and subscriptions and travel costs. This category also includes an allocation of depreciation, amortization, lease expense, and occupancy costs attributable to the provision of certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. Marketing and Communication Marketing and communication includes lead acquisition, digital communication strategies, brand identity advertising, media planning and strategy, video, data science and analysis, marketing to potential students and other promotional and communication services. This expense category includes salaries, benefits and share-based compensation for marketing and communication personnel, brand advertising, marketing leads and other promotional and communication expenses. This category also includes an allocation of depreciation, amortization, lease expense, and occupancy costs attributable to the provision of certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. Advertising costs are expensed as incurred. General and Administrative General and administrative expenses include salaries, benefits and share-based compensation of employees engaged in corporate management, finance, human resources, compliance, and other corporate functions. This category also includes an allocation of depreciation, amortization, lease expense, and occupancy costs attributable to the provision of these services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. Commitments and Contingencies The Company accrues for contingent obligations when it is probable that a liability has been incurred and the amount is reasonably estimable. When the Company becomes aware of a claim or potential claim, the likelihood of any loss exposure is assessed. If it is probable that a loss will result and the amount of the loss is estimable, the Company records a liability for the estimated loss. If the loss is not probable or the amount of the potential loss is not estimable, the Company will disclose the claim if the likelihood of a potential loss is reasonably possible and the amount of the potential loss could be material. Estimates that are particularly sensitive to future changes include tax, legal, and other regulatory matters, which are subject to change as events evolve, and as additional information becomes available during the administrative and litigation process. The Company expenses legal fees as incurred. Concentration of Credit Risk The Company believes the credit risk related to cash equivalents and investments is limited due to its adherence to an investment policy that requires investments to have a minimum BBB rating, depending on the type of security, by one major rating agency at the time of purchase. All of the Company’s cash equivalents and investments as of June 30, 2021 and December 31, 2020 consist of investments rated BBB or higher by at least one rating agency. Additionally, the Company utilizes more than one financial institution to conduct initial and ongoing credit analysis on its investment portfolio to monitor and lower the potential impact of market risk associated with its cash equivalents and investment portfolio. The Company is also subject to credit risk for its accounts receivable balance and its Secured Note. The Company has not experienced any losses on receivables since July 1, 2018, the date the Company transitioned to an educational service provider. To manage accounts receivable risk, the Company maintains an allowance for doubtful accounts, if needed. The Company monitors the credit risk exposure of the counterparty of the Secured Note to determine whether an adjustment to allowance for credit loss is necessary. A significant deterioration in the financial viability of our counterparty and corresponding decline in the fair value of the collateralized assets could impact the collectability risk of the Secured Note. Our dependence on our most significant university partner, which is also the counterparty to the Secured Note, with Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Segment Information The Company operates as a single education services company using a core infrastructure that serves the curriculum and educational delivery needs of its university partners. The Company’s Chief Executive Officer manages the Company’s operations as a whole and no expense or operating income information is generated or evaluated on any component level. Accounting Pronouncements Adopted in 2021 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This ASU is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods, with early adoption permitted. Accordingly, the standard was adopted by the Company as of January 1, 2021. Most amendments within this ASU are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or statements of cash flows. Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effect of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company plans to elect the optional expedient for its credit facility by prospectively adjusting the effective interest rate if the cessation of the London Interbank Offered Rate (LIBOR) occurs. The Company does not believe the adoption of the reference rate reform will have a material impact on the Company’s financial condition, results of operations or statements of cash flows. The Company has determined that no other recent accounting pronouncements apply to its operations or could otherwise have a material impact on its consolidated financial statements. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2021 | |
Investments | |
Investments | 3. Investments At June 30, 2021 and December 31, 2020, the Company had investments of $3,006 and $10,840 , respectively, classified as trading. The trading investments are held in municipal and corporate securities as of June 30, 2021 and December 31, 2020 and are due in one year or less as of June 30, 2021. The cash flows of municipal securities are backed by the issuing municipality’s credit-worthiness. At June 30, 2021, the Company had available-for-sale investments of $41,409, comprised of the following: As of June 30, 2021 Gross Gross Estimated Adjusted Unrealized Unrealized Fair Cost Gains (Losses) Value Corporate bonds $ 34,344 $ 41 $ (281) $ 34,104 Commercial paper 3,997 — — 3,997 Municipal securities 2,108 — — 2,108 Asset backed securities 1,202 — (2) 1,200 Total investments $ 41,651 $ 41 $ (283) $ 41,409 For the six months ended June 30, 2021, the net unrealized gains or (losses) were $185 , net of taxes. Available-for-sale debt securities are carried at fair value on the consolidated balance sheets. The Company estimates the lifetime expected credit losses for all available-for sale debt securities in an unrealized loss position. If our assessment indicates that an expected credit loss exists, we determine the portion of the unrealized loss attributable to credit deterioration and record a reserve for the expected credit loss in the allowance for credit losses in technology and academic services in our consolidated income statements. As of June 30, 2021, there were Available-for-sale securities maturing as of December 31: 2021 (Remainder of year) $ 6,105 2022 3,674 2023 9,225 2024 10,724 2025 1,052 Thereafter 10,629 Total $ 41,409 |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jun. 30, 2021 | |
Net Income Per Common Share | |
Net Income Per Common Share | 4. Net Income Per Common Share Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the assumed conversion of all potentially dilutive securities, consisting of stock options and restricted stock awards, for which the estimated fair value exceeds the exercise price, less shares which could have been purchased with the related proceeds, unless anti-dilutive. For employee equity awards, repurchased shares are also included for any unearned compensation adjusted for tax. The table below reflects the calculation of the weighted average number of common shares outstanding, on an as if converted basis, used in computing basic and diluted earnings per common share. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Denominator: Basic weighted average shares outstanding 45,490 46,893 45,810 47,174 Effect of dilutive stock options and restricted stock 92 258 154 283 Diluted weighted average shares outstanding 45,582 47,151 45,964 47,457 Diluted weighted average shares outstanding excludes the incremental effect of unvested restricted stock and shares that would be issued upon the assumed exercise of stock options in accordance with the treasury stock method. For the three month periods ended June 30, 2021 and 2020, approximately 1 and 81, respectively, and for the six month perioded ended June 30, 2021 and 2020, approximately 2 and 182, respectively, of the Company’s restricted stock awards outstanding were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive. These restricted stock awards could be dilutive in the future. |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2021 | |
Allowance for Credit Losses | |
Allowance for Credit Losses | 5. Allowance for Credit Losses Balance at Balance at Beginning of Charged to Deductions/ End of Period (1) Expense Transfers (2) Period Allowance for credit losses Six months ended June 30, 2021 $ 5,000 — — $ 5,000 Six months ended June 30, 2020 $ 5,000 — — $ 5,000 (1) Amount represents the cumulative effect of the adoption of ASU No. 2016-13 on the Secured Note. (2) Deductions represent accounts written off, net of recoveries. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Property and Equipment | |
Property and Equipment | 6. Property and Equipment Property and equipment consist of the following: June 30, December 31, 2021 2020 Land $ 5,579 $ 5,579 Land improvements 2,242 2,242 Buildings 51,399 51,399 Buildings and leasehold improvements 16,987 14,352 Computer equipment 101,224 100,575 Furniture, fixtures and equipment 16,609 15,439 Internally developed software 50,138 46,981 Construction in progress 9,062 5,043 253,240 241,610 Less accumulated depreciation and amortization (120,237) (112,953) Property and equipment, net $ 133,003 $ 128,657 |
Amortizable Intangible Assets
Amortizable Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Amortizable Intangible Assets | |
Amortizable Intangible Assets | 7. Amortizable Intangible Assets Amortizable intangible assets consist of the following as of: June 30, 2021 Estimated Gross Net Average Useful Carrying Accumulated Carrying Life (in years) Amount Amortization Amount University partner relationships 25 $ 210,000 $ (20,572) $ 189,428 Trade names 1 280 (280) — Total amortizable intangible assets, net $ 210,280 $ (20,852) $ 189,428 Amortization expense for university partner relationships and trade names for the years ending December 31: Remainder of 2021 $ 4,209 2022 8,419 2023 8,419 2024 8,419 2025 8,419 Thereafter 151,543 $ 189,428 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases | |
Leases | 8. Leases The Company has operating leases for classroom site locations, office space, office equipment, and optical fiber communication lines. These leases have terms that range from 7 months to 9.7 years. At lease inception, we determine the lease term by assuming no exercises of renewal options, due to the Company’s constantly changing geographical needs for its university partners. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and we recognize lease expense for these leases on a straight-line basis over the lease term. The Company had operating lease costs of $4,862 and $3,055 for the six-month periods ended June 30, 2021 and 2020, respectively. As of June 30, 2021, the Company had $4,183 of non-cancelable operating lease commitments for a classroom site location, that had not yet commenced. The Company’s weighted-average remaining lease term relating to its operating leases is 8.13 years, with a weighted-average discount rate of 3.17 %. As of June 30, 2021, the Company had no financing leases. Future payment obligations with respect to the Company’s operating leases, which were existing at June 30, 2021, by year and in the aggregate, are as follows: Year Ending December 31, Amount Remainder of 2021 $ 4,556 2022 9,330 2023 8,851 2024 8,359 2025 8,047 Thereafter 31,727 Total lease payments $ 70,870 Less interest 8,346 Present value of lease liabilities $ 62,524 |
Notes Payable and Other Noncurr
Notes Payable and Other Noncurrent Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable and Other Noncurrent Liabilities | |
Notes Payable and Other Noncurrent Liabilities | 9. Notes Payable and Other Noncurrent Liabilities We entered into an amended and restated credit agreement dated January 22, 2019 and two related amendments dated January 31, 2019 and dated February 1, 2019, respectively, that together provide a credit facility of $325,000 comprised of a term loan facility of $243,750 and a revolving credit facility of $81,250, both with a five-year maturity date. The Company concluded that the amended and restated credit agreement is considered a loan modification. Accordingly, the Company allocated the costs paid to the bank consortium based on the borrowing dollars and recorded an asset of maturity date. The Company entered into a further amendment for the credit facility on October 31, 2019. This amendment increased the revolving commitment by . The Company concluded that this amendment is considered a loan modification. The amended and restated credit agreement contains standard covenants that, among other things, restrict the Company’s ability to incur additional debt or make certain investments, and require the Company to achieve certain financial ratios and maintain certain financial conditions. The Company’s obligations under the credit facility are secured by its assets, including all rights, benefits and payments under the Secured Note and the Master Services Agreement. As of June 30, 2021, the Company is in compliance with its debt covenants and the note payable totals . As of June 30, As of December 31, 2021 2020 Notes Payable Note payable, quarterly payment of $8,368 starting December 31, 2019; interest at 30-Day LIBOR plus 2.00% (2.09% at June 30, 2021) through January 22, 2024 $ 91,202 $ 107,774 Revolving line of credit; interest at Base Rate (4.0% at June 30, 2021) 35,000 — 126,202 107,774 Less: Current portion 68,145 33,144 $ 58,057 $ 74,630 Payments due under the notes payable obligations are as follows as of December 31: Remainder of 2021 $ 16,572 2022 33,144 2023 33,145 2024 8,341 2025 — Total $ 91,202 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10. Commitments and Contingencies Legal Matters From time to time, the Company is a party to various lawsuits, claims, and other legal proceedings that arise in the ordinary course of business, some of which are covered by insurance. When the Company is aware of a claim or potential claim, it assesses the likelihood of any loss or exposure. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the Company records a liability for the loss. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the Company discloses the nature of the specific claim if the likelihood of a potential loss is reasonably possible and the amount involved could be material. With respect to the majority of pending litigation matters, the Company’s ultimate legal and financial responsibility, if any, cannot be estimated with certainty and, in most cases, any potential losses related to those matters are not considered probable. Upon resolution of any pending legal matters, the Company may incur charges in excess of presently established reserves. Management does not believe that any such charges would, individually or in the aggregate, have a material adverse effect on the Company’s financial condition, results of operations or cash flows. Tax Reserves, Non-Income Tax Related From time to time the Company has exposure to various non-income tax related matters that arise in the ordinary course of business. The Company reserve is not material for tax matters where its ultimate exposure is considered probable and the potential loss can be reasonably estimated. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-Based Compensation | |
Share-Based Compensation | 11. Share-Based Compensation Incentive Plan The Company makes equity incentive grants pursuant to our 2017 Equity Incentive Plan (the “2017 Plan”) under which a maximum of 3,000 shares may be granted. As of June 30, 2021, 1,414 shares were available for grants under the 2017 Plan. Restricted Stock During the six months ended June 30, 2021, the Company granted 180 shares of common stock with a service vesting condition to certain of its executives, officers and employees. The restricted shares have voting rights and vest in five with the first installment shares of common stock to the non-employee members of the Company’s Board of Directors. Included in this amount is an initial award of shares that was granted to a newly appointed non-employee director pursuant to the Company’s compensation program. The newly appointed non-employee director also received an annual grant of restricted shares. The restricted shares granted to these directors under the annual restricted shares grant have voting rights and vest on the earlier of (a) the one year anniversary of the date of grant or (b) immediately prior to the following year’s annual stockholders’ meeting. The initial award of shares that were granted to the newly appointed non-employee director have voting rights and vest on the one year anniversary of the date of grant. Weighted Average Total Grant Date Shares Fair Value per Share Outstanding as of December 31, 2020 419 $ 83.43 Granted 184 $ 86.05 Vested (144) $ 74.90 Forfeited, canceled or expired (8) $ 87.24 Outstanding as of June 30, 2021 451 $ 86.27 Stock Options During the six months ended June 30, 2021, no options were granted. A summary of the activity since December 31, 2020 related to stock options granted under the Company’s Incentive Plan is as follows: Summary of Stock Options Outstanding Weighted Weighted Average Average Exercise Remaining Aggregate Total Price per Contractual Intrinsic Shares Share Term (Years) Value ($) Outstanding as of December 31, 2020 176 $ 15.34 Granted — $ — Exercised (176) $ 15.34 Forfeited, canceled or expired — $ — Outstanding as of June 30, 2021 — $ — — $ — Exercisable as of June 30, 2021 — $ — — $ — Share-based Compensation Expense The table below outlines share-based compensation expense for the six months ended June 30, 2021 and 2020 related to restricted stock granted: 2021 2020 Technology and academic services $ 1,158 $ 1,026 Counseling services and support 2,971 2,694 Marketing and communication 51 50 General and administrative 1,779 1,564 Share-based compensation expense included in operating expenses 5,959 5,334 Tax effect of share-based compensation (1,490) (1,334) Share-based compensation expense, net of tax $ 4,469 $ 4,000 |
Treasury Stock
Treasury Stock | 6 Months Ended |
Jun. 30, 2021 | |
Treasury Stock. | |
Treasury Stock | 12. Treasury Stock In January 2021 and July 2021, the Board of Directors increased the authorization under its existing stock repurchase program by $100,000 and $970,000, respectively, reflecting an aggregate authorization for share repurchases since the initiation of our program of $1,470,000. The expiration date on the repurchase authorization is December 31, 2021. Repurchases occur at the Company’s discretion. Repurchases may be made in the open market or in privately negotiated transactions, pursuant to the applicable Securities and Exchange Commission rules. The amount and timing of future share repurchases, if any, will be made as market and business conditions warrant. On March 10, 2021, the Company entered into an accelerated share repurchase (“ASR”) agreement with Morgan Stanley & Co. LLC (“Morgan Stanley”) to repurchase up to $35,000 of its outstanding shares of common stock as part of the Company’s share repurchase program. Under the ASR agreement, the Company received initial delivery of approximately , on March 9, 2021. At inception of the ASR agreement, the Company recognized the initial delivery of shares as treasury stock of . The total number of shares that the Company repurchased under the ASR program was based on the volume-weighted average price of the common stock during the term of the ASR agreement, less a discount, and subject to potential adjustments pursuant to the terms and conditions of the ASR agreement. The final settlement of the share repurchases under the ASR agreement was completed on May 4, 2021 with additional delivery of shares of common stock. At settlement of the ASR agreement, the Company recognized an increase to additional paid in capital and a decrease in treasury related to the remaining delivery of shares. The ASR agreement resulted in a total of . On May 14, 2021, the Company entered into an ASR agreement with Morgan Stanley to repurchase up to $50,000 of its outstanding shares of common stock as part of the Company’s share repurchase program. Under the ASR agreement, the Company received initial delivery on May 17, 2021 of approximately , on May 14, 2021. At inception of the ASR agreement, the Company recognized the initial delivery of shares as treasury stock of . The total number of shares that the Company will repurchase under the ASR program will be based on the volume-weighted average price of the common stock during the term of the ASR agreement, less a discount, and subject to potential adjustments pursuant to the terms and conditions of the ASR agreement. The final settlement of the share repurchases under the ASR agreement will be completed no later than September 9, 2021. During the six months ended June 30, 2021 the Company repurchased 1,549 shares of common stock, which includes shares received as of June 30, 2021 under the ASR on March 10, 2021 and shares received under the ASR on May 17, 2021, at an aggregate cost of $151,679 . At June 30, 2021, there remained in July 2021). Shares repurchased in lieu of taxes are not included in the repurchase plan totals as they were approved in conjunction with the restricted share awards. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany transactions have been eliminated in consolidation. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles and pursuant to the rules and regulations of the United States Securities and Exchange Commission and the instructions to Form 10-Q and Article 10, consistent in all material respects with those applied in its financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2020. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that in the opinion of management are necessary for the fair presentation of the interim periods presented. Interim results are not necessarily indicative of results for a full year. These consolidated financial statements should be read in conjunction with the Company’s audited financial statements and footnotes included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2020 from which the December 31, 2020 balance sheet information was derived. |
Investments | Investments At June 30, 2021 and December 31, 2020, the Company considers its investments in corporate bonds, commercial paper, municipal securities, asset backed securities, municipal bonds, and collateralized mortgage obligations either as trading securities or available-for-sale securities based on the Company’s intent for the respective security. Trading securities are carried at fair value determined using Level 1 and Level 2 of the hierarchy of valuation inputs, with the use of quoted market prices and inputs other than quoted prices that are observable for the assets. Available-for-sale securities are carried at fair value, determined using Level 2 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the assets, with unrealized gains and losses, net of tax, reported as a separate component of other comprehensive income. Unrealized losses considered to be other-than-temporary are recognized currently in earnings. Amortization of premiums, accretion of discounts, interest and dividend income and realized gains and losses are included in interest and other income. |
Arrangements with GCU | Arrangements with GCU On July 1, 2018, the Company consummated an Asset Purchase Agreement (the “Asset Purchase Agreement”) with GCU. In conjunction with the Asset Purchase Agreement, we received a secured note from GCU as consideration for the transferred assets (the “Transferred Assets”) in the initial principal amount of provides for GCU to make interest only payments during the term, with all principal and accrued and unpaid interest due at maturity and also provides that we may loan additional amounts to GCU to fund approved capital expenditures. As of June 30, 2021, the Company had loaned in June 2021. The that was borrowed in June 2021 was repaid in July 2021. In Except for identified liabilities assumed by GCU, GCE retained responsibility for all liabilities of the business arising from pre-closing operations. |
Internally Developed Software | Internally Developed Software The Company capitalizes certain costs related to internal-use software, primarily consisting of direct labor associated with creating the software. Software development projects generally include three stages: the preliminary project stage (all costs are expensed as incurred), the application development stage (certain costs are capitalized and certain costs are expensed as incurred) and the post-implementation or operation stage (all costs are expensed as incurred). Costs capitalized in the application development stage include costs of design, coding, integration, and testing of the software developed. Capitalization of costs requires judgment in determining when a project has reached the application development stage and the period over which we expect to benefit from the use of that software. Once the software is placed in service, these costs are amortized straight-line over the estimated useful life of the software, which is generally three years . These assets are a component of our property and equipment, net in our consolidated balance sheets. |
Capitalized Content Development | Capitalized Content Development The Company capitalizes certain costs to fulfill a contract related to the development and digital creation of content on a course-by-course basis for each university partner, many times in conjunction with faculty and subject matter experts. The Company is responsible for the conversion of instructional materials to an on-line format, including outlines, quizzes, lectures, and articles in accordance with the educational guidelines provided to us by our university partners, prior to the respective course commencing. We also capitalize the creation of learning objects which are digital assets such as online demonstrations, simulations, and case studies used to obtain learning objectives. Costs that are capitalized include payroll and payroll-related costs for employees who are directly associated and spend time producing content and payments to faculty and subject matter experts involved in the process. The Company starts capitalizing content costs when it begins to develop or to convert a particular course, resources have been assigned and a timeline has been set. The content asset is placed in service when all work is complete and the curriculum could be used for instruction. Capitalized content development assets are included in other assets in our consolidated balance sheets. The Company has concluded that the most appropriate method to amortize the deferred content assets is on a straight-line basis over the estimated life of the course, which is generally four years which corresponds with course’s review and major revision cycle. As of June 30, 2021 and December 31, 2020, $1,214 and $1,198, respectively, net of amortization, of deferred content assets are included in other assets, long-term in the Company’s consolidated balance sheets and amortization is included in technical and academic services where the costs originated. |
Leases | Leases The Company determines if an arrangement is a lease at inception and evaluates the lease agreement to determine whether the lease is a finance or operating lease. Right-of-use (“ROU”) assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement to determine the present value of lease payments over the lease term. At lease inception, the Company determines the lease term by assuming no exercises of renewal options, due to the Company’s constantly changing geographical needs for its university partners. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and are recognized as lease expense on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, and the non-lease components are accounted for separately and not included in our ROU assets and lease liabilities. Leases primarily consist of off-campus classroom and laboratory site locations and office space. |
Business Combinations | Business Combinations The purchase price of an acquisition is allocated to the assets acquired, including tangible and intangible assets, and liabilities assumed, based on their respective fair values at the acquisition date. The excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Transaction costs associated with business combinations are expensed as incurred and are recorded in the loss on transaction in the consolidated financial statements. The determination of the fair value and useful lives of the intangible assets acquired involves certain judgments and estimates. These judgements can include, but are not limited to, the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital. The net assets and result of operations of an acquired entity are included in the Company’s consolidated financial statements from the acquisition date. Acquisition On January 22, 2019, GCE acquired Orbis Education for $361,184 (inclusive of closing date adjustments and net of cash acquired). The Acquisition was accounted for in accordance with the acquisition method of accounting. Under this method the cost of the target is allocated to the identifiable assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The estimated fair values of current assets and liabilities were based upon their historical costs on the date of acquisition due to their short-term nature. The majority of property and equipment were also estimated based upon historical costs as they approximated fair value. Identified intangible assets of . The fair value of university partner relationships was determined using the multiple-period excess earnings method. The fair value of the assets acquired, less the liabilities assumed, exceeded the purchase price by |
Goodwill and Amortizable Intangible Assets | Goodwill and Amortizable Intangible Assets Goodwill represents the excess of the purchase price of an acquired business over the amount assigned to the tangible and intangible assets acquired and liabilities assumed. Goodwill is assessed at least annually for impairment during the fourth quarter, or more frequently if circumstances indicate potential impairment. Goodwill is allocated to our reporting unit at the education services segment, which is the same as the entity as a whole (entity level reporting unit). The Company has concluded there is one operating segment and one reporting unit for goodwill impairment consideration. The Financial Accounting Standards Board (“FASB”) has issued guidance that permits an entity to first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. The Company reviews goodwill at least annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Finite-lived intangible assets that are acquired in a business combination are recorded at fair value on their acquisition dates and are amortized on a straight-line basis over the estimated useful life of the intangible asset. Finite-lived intangible assets consist of university partner relationships and trade names. The Company reviews its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. There were no indicators that the carrying amount of the finite-lived intangible assets were impaired as of June 30, 2021. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future net cash flows expected to be generated by the assets. If such intangible assets are not recoverable, a potential impairment loss is recognized to the extent the carrying amounts of the assets exceeds the fair value of the assets. |
Share-Based Compensation | Share-Based Compensation The Company measures and recognizes compensation expense for share-based payment awards made to employees and directors. The fair value of the Company’s restricted stock awards is based on the market price of its common stock on the date of grant. Stock-based compensation expense related to restricted stock grants is expensed over the vesting period using the straight-line method for Company employees and the Company’s board of directors. The Company recognizes forfeitures as they occur. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of cash and cash equivalents, accounts receivable, accounts payable, accrued compensation and benefits and accrued liabilities expenses approximate their fair value based on the liquidity or the short-term maturities of these instruments. As of June 30, 2021 and December 31, 2020 the fair value of the Company’s Secured Note was $1,231,524 and $1,049,458, respectively. As of June 30, 2021 and December 31, 2020 the carrying value of Secured Note receivable was $1,154,912 and $964,912 , respectively. The carrying value of notes payable approximates fair value as it is based on variable rate index. The fair value of investments was determined using Level 1 and Level 2 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the assets. The unit of account used for valuation is the individual underlying security. The basis for fair value measurements for each level is described below, with Level 1 having the highest priority. -Level 1 – inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. -Level 2 – inputs are quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in non-active markets; and model-derived valuations whose inputs are observable or whose significant valuation drivers are observable. Investments are comprised of corporate bonds, commercial paper, municipal securities, asset backed securities, municipal bonds, and collateralized mortgage obligations. |
Revenue Recognition | Revenue Recognition The Company generates all of its revenue through services agreements with its university partners (“Services Agreements”), pursuant to which the Company provides integrated technology and academic services, marketing and communication services, and back office services to its university partners in return for a percentage of tuition and fee revenue. The Company’s Services Agreements have initial terms ranging from 7-15 years , subject to renewal options, although certain agreements may give the university partners the right to terminate early if certain conditions are met. The Company’s Services Agreements have a single performance obligation, as the promises to provide the identified services are not distinct within the context of these agreements. The single performance obligation is delivered as our partners receive and consume benefits, which occurs ratably over a series of distinct service periods (daily or semester). Service revenue is recognized over time using the output method of measuring progress towards complete satisfaction of the single performance obligation. The output method provides a faithful depiction of the performance toward complete satisfaction of the performance obligation and can be tied to the time elapsed which is consumed evenly over the service period and is a direct measurement of the value provided to our partners. The service fees received from our partners over the term of the agreement are variable in nature in that they are dependent upon the number of students attending the university partner’s program and revenues generated from those students during the service period. Due to the variable nature of the consideration over the life of the service arrangement, the Company considered forming an expectation of the variable consideration to be received over the service life of this one performance obligation. However, since the performance obligation represents a series of distinct services, the Company recognizes the variable consideration that becomes known and billable because these fees relate to the distinct service period in which the fees are earned. The Company meets the criteria in the standard and exercises the practical expedient to not disclose the aggregate amount of the transaction price allocated to the single performance obligation that is unsatisfied as of the end of the reporting period. The Company does not disclose the value of unsatisfied performance obligations because the directly allocable variable consideration is allocated entirely to a wholly unsatisfied promise to transfer a service that forms part of a single performance obligation. The service fees are calculated and settled per the terms of the Services Agreements and result in a settlement duration of less than one year for all partners. There are no refunds or return rights under the Services Agreements. The Company’s receivables represent unconditional rights to consideration from our Services Agreements with our university partners. Accounts receivable, net is stated at amortized cost, net of any allowance for credit losses and contains billed and unbilled revenue. The Company evaluates the need for an allowance for credit losses using relevant available information about expected credit losses, including information about historical credit losses, past events, current conditions, and other factors which may affect the collectability of receivables. There have been allowance for credit losses established as of June 30, 2021 given historical collection experience. The Company will continue to review and revise its allowance methodology based on its collection experience with its partners. For our partners with unbilled revenue, revenue recognition occurs in advance of billings. Billings for some university partners do not occur until after the service period has commenced and final enrollment information is available. Our unbilled revenue of $8,811 and $294 as of June 30, 2021 and December 31, 2020, respectively, are included in accounts receivable in our consolidated balance sheets. Deferred revenue represents the excess of amounts received as compared to amounts recognized in revenue on our consolidated statements of income as of the end of the reporting period, and such amounts are reflected as a current liability on our consolidated balance sheets. We generally receive payments for our services billed within 30 days of invoice. These payments are recorded as deferred revenue until the services are delivered and revenue is recognized. |
Allowance for Credit Losses | Allowance for Credit Losses The Company records its accounts receivable and Secured Note receivable at the net amount expected to be collected. Our accounts receivable are derived through education services provided to university partners. Our Secured Note receivable was derived through the sale of university related assets to our most significant university partner, GCU. The Company maintains an allowance for credit losses resulting from our university partners not making payments. The Company determines the adequacy of the allowance by periodically evaluating each university partners balance, considering their financial condition and credit history, and considering current and forecasted economic conditions. Since our transition to an education services company on July 1, 2018, and continued growth to Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments using a modified retrospective approach. This model requires consideration of a broader range of reasonable and supportable information and requires the Company to estimate expected credit losses including a measure of the expected risk of credit loss even if that risk is remote over the lifetime of the asset. Upon adoption, the Company recorded a reserve of on its long-term Secured Note receivable. The cumulative effect for the Company upon adoption of this new standard was . Bad debt expense is recorded as a technology and academic services expense in the consolidated income statements. The Company will continue to actively monitor the impact of the COVID-19 pandemic on expected credit losses. |
Technology and Academic Services | Technology and Academic Services Technology and academic services consist primarily of costs related to ongoing maintenance of educational infrastructure, including online course delivery and management, student records, assessment, customer relations management and other internal administrative systems. This also includes costs to provide support for content development, faculty training, development and other faculty support, technology support, rent and occupancy costs for university partners’ off-campus locations, and assistance with state compliance. This expense category includes salaries, benefits and share-based compensation, information technology costs, amortization of content development costs and other costs associated with these support services. This category also includes an allocation of depreciation, amortization, and occupancy costs attributable to the provision of certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. |
Counseling Services and Support | Counseling Services and Support Counseling services and support consist primarily of costs including team-based counseling and other support to prospective and current students as well as financial aid processing. This expense category includes salaries, benefits and share-based compensation, and other costs such as dues, fees and subscriptions and travel costs. This category also includes an allocation of depreciation, amortization, lease expense, and occupancy costs attributable to the provision of certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. |
Marketing and Communication | Marketing and Communication Marketing and communication includes lead acquisition, digital communication strategies, brand identity advertising, media planning and strategy, video, data science and analysis, marketing to potential students and other promotional and communication services. This expense category includes salaries, benefits and share-based compensation for marketing and communication personnel, brand advertising, marketing leads and other promotional and communication expenses. This category also includes an allocation of depreciation, amortization, lease expense, and occupancy costs attributable to the provision of certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. Advertising costs are expensed as incurred. |
General and Administrative | General and Administrative General and administrative expenses include salaries, benefits and share-based compensation of employees engaged in corporate management, finance, human resources, compliance, and other corporate functions. This category also includes an allocation of depreciation, amortization, lease expense, and occupancy costs attributable to the provision of these services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. |
Commitments and Contingencies | Commitments and Contingencies The Company accrues for contingent obligations when it is probable that a liability has been incurred and the amount is reasonably estimable. When the Company becomes aware of a claim or potential claim, the likelihood of any loss exposure is assessed. If it is probable that a loss will result and the amount of the loss is estimable, the Company records a liability for the estimated loss. If the loss is not probable or the amount of the potential loss is not estimable, the Company will disclose the claim if the likelihood of a potential loss is reasonably possible and the amount of the potential loss could be material. Estimates that are particularly sensitive to future changes include tax, legal, and other regulatory matters, which are subject to change as events evolve, and as additional information becomes available during the administrative and litigation process. The Company expenses legal fees as incurred. |
Concentration of Credit Risk | Concentration of Credit Risk The Company believes the credit risk related to cash equivalents and investments is limited due to its adherence to an investment policy that requires investments to have a minimum BBB rating, depending on the type of security, by one major rating agency at the time of purchase. All of the Company’s cash equivalents and investments as of June 30, 2021 and December 31, 2020 consist of investments rated BBB or higher by at least one rating agency. Additionally, the Company utilizes more than one financial institution to conduct initial and ongoing credit analysis on its investment portfolio to monitor and lower the potential impact of market risk associated with its cash equivalents and investment portfolio. The Company is also subject to credit risk for its accounts receivable balance and its Secured Note. The Company has not experienced any losses on receivables since July 1, 2018, the date the Company transitioned to an educational service provider. To manage accounts receivable risk, the Company maintains an allowance for doubtful accounts, if needed. The Company monitors the credit risk exposure of the counterparty of the Secured Note to determine whether an adjustment to allowance for credit loss is necessary. A significant deterioration in the financial viability of our counterparty and corresponding decline in the fair value of the collateralized assets could impact the collectability risk of the Secured Note. Our dependence on our most significant university partner, which is also the counterparty to the Secured Note, with |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Segment Information | Segment Information The Company operates as a single education services company using a core infrastructure that serves the curriculum and educational delivery needs of its university partners. The Company’s Chief Executive Officer manages the Company’s operations as a whole and no expense or operating income information is generated or evaluated on any component level. |
Accounting Pronouncements Adopted in 2020 and Recent Accounting Pronouncements | Accounting Pronouncements Adopted in 2021 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This ASU is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods, with early adoption permitted. Accordingly, the standard was adopted by the Company as of January 1, 2021. Most amendments within this ASU are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or statements of cash flows. Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effect of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company plans to elect the optional expedient for its credit facility by prospectively adjusting the effective interest rate if the cessation of the London Interbank Offered Rate (LIBOR) occurs. The Company does not believe the adoption of the reference rate reform will have a material impact on the Company’s financial condition, results of operations or statements of cash flows. The Company has determined that no other recent accounting pronouncements apply to its operations or could otherwise have a material impact on its consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments | |
Schedule of reconciliation of available-for-sale investments from cost basis to fair value | As of June 30, 2021 Gross Gross Estimated Adjusted Unrealized Unrealized Fair Cost Gains (Losses) Value Corporate bonds $ 34,344 $ 41 $ (281) $ 34,104 Commercial paper 3,997 — — 3,997 Municipal securities 2,108 — — 2,108 Asset backed securities 1,202 — (2) 1,200 Total investments $ 41,651 $ 41 $ (283) $ 41,409 |
Schedule of available-for-sale securities maturities | Available-for-sale securities maturing as of December 31: 2021 (Remainder of year) $ 6,105 2022 3,674 2023 9,225 2024 10,724 2025 1,052 Thereafter 10,629 Total $ 41,409 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Net Income Per Common Share | |
Schedule of weighted average number of common shares outstanding | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Denominator: Basic weighted average shares outstanding 45,490 46,893 45,810 47,174 Effect of dilutive stock options and restricted stock 92 258 154 283 Diluted weighted average shares outstanding 45,582 47,151 45,964 47,457 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Allowance for Credit Losses | |
Schedule of allowance for credit losses | Balance at Balance at Beginning of Charged to Deductions/ End of Period (1) Expense Transfers (2) Period Allowance for credit losses Six months ended June 30, 2021 $ 5,000 — — $ 5,000 Six months ended June 30, 2020 $ 5,000 — — $ 5,000 (1) Amount represents the cumulative effect of the adoption of ASU No. 2016-13 on the Secured Note. (2) Deductions represent accounts written off, net of recoveries. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property and Equipment | |
Schedule of property and equipment | June 30, December 31, 2021 2020 Land $ 5,579 $ 5,579 Land improvements 2,242 2,242 Buildings 51,399 51,399 Buildings and leasehold improvements 16,987 14,352 Computer equipment 101,224 100,575 Furniture, fixtures and equipment 16,609 15,439 Internally developed software 50,138 46,981 Construction in progress 9,062 5,043 253,240 241,610 Less accumulated depreciation and amortization (120,237) (112,953) Property and equipment, net $ 133,003 $ 128,657 |
Amortizable Intangible Assets (
Amortizable Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Amortizable Intangible Assets | |
Summary of amortizable intangible assets | June 30, 2021 Estimated Gross Net Average Useful Carrying Accumulated Carrying Life (in years) Amount Amortization Amount University partner relationships 25 $ 210,000 $ (20,572) $ 189,428 Trade names 1 280 (280) — Total amortizable intangible assets, net $ 210,280 $ (20,852) $ 189,428 |
Schedule of amortization expense for university partner relationships and trade names | Amortization expense for university partner relationships and trade names for the years ending December 31: Remainder of 2021 $ 4,209 2022 8,419 2023 8,419 2024 8,419 2025 8,419 Thereafter 151,543 $ 189,428 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases | |
Schedule of future payment obligations with respect to operating leases | Year Ending December 31, Amount Remainder of 2021 $ 4,556 2022 9,330 2023 8,851 2024 8,359 2025 8,047 Thereafter 31,727 Total lease payments $ 70,870 Less interest 8,346 Present value of lease liabilities $ 62,524 |
Notes Payable and Other Noncu_2
Notes Payable and Other Noncurrent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable and Other Noncurrent Liabilities | |
Schedule of notes payable | As of June 30, As of December 31, 2021 2020 Notes Payable Note payable, quarterly payment of $8,368 starting December 31, 2019; interest at 30-Day LIBOR plus 2.00% (2.09% at June 30, 2021) through January 22, 2024 $ 91,202 $ 107,774 Revolving line of credit; interest at Base Rate (4.0% at June 30, 2021) 35,000 — 126,202 107,774 Less: Current portion 68,145 33,144 $ 58,057 $ 74,630 |
Schedule of payments due under notes payable obligations | Payments due under the notes payable obligations are as follows as of December 31: Remainder of 2021 $ 16,572 2022 33,144 2023 33,145 2024 8,341 2025 — Total $ 91,202 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-Based Compensation | |
Schedule of activity related to restricted stock granted under company's incentive plan | Weighted Average Total Grant Date Shares Fair Value per Share Outstanding as of December 31, 2020 419 $ 83.43 Granted 184 $ 86.05 Vested (144) $ 74.90 Forfeited, canceled or expired (8) $ 87.24 Outstanding as of June 30, 2021 451 $ 86.27 |
Schedule of activity related to stock options granted under company's incentive plan | Summary of Stock Options Outstanding Weighted Weighted Average Average Exercise Remaining Aggregate Total Price per Contractual Intrinsic Shares Share Term (Years) Value ($) Outstanding as of December 31, 2020 176 $ 15.34 Granted — $ — Exercised (176) $ 15.34 Forfeited, canceled or expired — $ — Outstanding as of June 30, 2021 — $ — — $ — Exercisable as of June 30, 2021 — $ — — $ — |
Schedule of share-based compensation expense | The table below outlines share-based compensation expense for the six months ended June 30, 2021 and 2020 related to restricted stock granted: 2021 2020 Technology and academic services $ 1,158 $ 1,026 Counseling services and support 2,971 2,694 Marketing and communication 51 50 General and administrative 1,779 1,564 Share-based compensation expense included in operating expenses 5,959 5,334 Tax effect of share-based compensation (1,490) (1,334) Share-based compensation expense, net of tax $ 4,469 $ 4,000 |
Nature of Business (Details)
Nature of Business (Details) $ in Thousands | Jan. 22, 2019USD ($) | Jun. 30, 2021item |
Nature Of Operations | ||
Number of university partners | 27 | |
Orbis Education | ||
Nature Of Operations | ||
Purchase price | $ | $ 361,184 | |
Grand Canyon University | ||
Nature Of Operations | ||
Number of colleges operated | 9 | |
Number of off-campus classroom and laboratory sites | 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | Jul. 01, 2018USD ($) | Jun. 30, 2021USD ($)item | Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)segmentitem | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2021USD ($)item | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) |
Summary Of Significant Accounting Policies | |||||||||||
Other assets | $ 2,485 | $ 2,485 | $ 2,485 | $ 2,485 | $ 1,844 | ||||||
Number of operating segments | segment | 1 | ||||||||||
Number of reporting units | segment | 1 | ||||||||||
Unbilled revenue | 8,811 | 8,811 | $ 8,811 | 8,811 | 294 | ||||||
Amounts written off | 0 | ||||||||||
Allowance for doubtful accounts | 0 | 0 | 0 | 0 | |||||||
Lease liabilities | 62,524 | 62,524 | 62,524 | 62,524 | |||||||
Secured Note receivable, carrying value | 1,154,912 | 1,154,912 | 1,154,912 | 1,154,912 | 964,912 | ||||||
Secured Note receivable, fair value | $ 1,231,524 | $ 1,231,524 | $ 1,231,524 | $ 1,231,524 | 1,049,458 | ||||||
Number of university partners | item | 27 | 27 | 27 | 27 | |||||||
Allowance for credit losses | $ 5,000 | $ 5,000 | $ 5,000 | $ 5,000 | $ 5,000 | $ 5,000 | $ 5,000 | 5,000 | |||
Stockholders equity | 1,542,683 | 1,542,683 | 1,489,387 | 1,542,683 | 1,489,387 | 1,443,433 | 1,542,683 | $ 1,588,678 | 1,574,329 | $ 1,448,008 | |
Income tax expense | 15,035 | 15,346 | $ 35,020 | $ 38,137 | |||||||
Revenue Benchmark | Customer Concentration Risk | Grand Canyon University | |||||||||||
Summary Of Significant Accounting Policies | |||||||||||
Concentration risk percentage | 85.70% | 87.00% | |||||||||
Computer Software | |||||||||||
Summary Of Significant Accounting Policies | |||||||||||
Estimated average useful life | 3 years | ||||||||||
Capitalized Content Development | |||||||||||
Summary Of Significant Accounting Policies | |||||||||||
Estimated average useful life | 4 years | ||||||||||
Other assets | 1,214 | $ 1,214 | $ 1,214 | 1,214 | $ 1,198 | ||||||
Minimum | |||||||||||
Summary Of Significant Accounting Policies | |||||||||||
Initial contract terms of service agreements | 7 years | ||||||||||
Maximum | |||||||||||
Summary Of Significant Accounting Policies | |||||||||||
Initial contract terms of service agreements | 15 years | ||||||||||
Grand Canyon University | |||||||||||
Summary Of Significant Accounting Policies | |||||||||||
Purchase price of assets | $ 870,097 | ||||||||||
Interest rate on Secured Note | 6.00% | ||||||||||
Funding provided to GCU, net of repayments | $ 190,000 | $ 289,815 | |||||||||
Master Services Agreement | Grand Canyon University | |||||||||||
Summary Of Significant Accounting Policies | |||||||||||
Percentage of tuition and fee revenue used for closing of purchase agreement | 60.00% | ||||||||||
Cumulative Effect of Adoption Adjustment | ASU 2016-13 | |||||||||||
Summary Of Significant Accounting Policies | |||||||||||
Allowance for credit losses | 5,000 | $ 5,000 | 5,000 | ||||||||
Stockholders equity | $ (3,832) | (3,832) | (3,832) | ||||||||
Income tax expense | $ 1,168 | $ 1,168 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Acquisition (Details) - USD ($) $ in Thousands | Jan. 22, 2019 | Jun. 30, 2021 | Dec. 31, 2020 |
Acquisition | |||
Goodwill | $ 160,766 | $ 160,766 | |
Orbis Education | |||
Acquisition | |||
Purchase price | $ 361,184 | ||
Intangible assets | 210,280 | ||
Goodwill | 157,825 | ||
Orbis Education | University partner relationships | |||
Acquisition | |||
Intangible assets | $ 210,000 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Investments | |||
Investments - Trading | $ 3,006 | $ 3,006 | $ 10,840 |
Available-for-sale investments | |||
Adjusted Cost | 41,651 | 41,651 | |
Gross Unrealized Gains | 41 | ||
Gross Unrealized (Losses) | (283) | ||
Estimated Fair Value | 41,409 | 41,409 | |
Unrealized gains on available-for-sale securities, net of tax | (65) | (185) | |
Credit losses for our available-for-sale debt securities | 0 | 0 | |
Corporate bonds | |||
Available-for-sale investments | |||
Adjusted Cost | 34,344 | 34,344 | |
Gross Unrealized Gains | 41 | ||
Gross Unrealized (Losses) | (281) | ||
Estimated Fair Value | 34,104 | 34,104 | |
Commercial paper | |||
Available-for-sale investments | |||
Adjusted Cost | 3,997 | 3,997 | |
Estimated Fair Value | 3,997 | 3,997 | |
Municipal securities | |||
Available-for-sale investments | |||
Adjusted Cost | 2,108 | 2,108 | |
Estimated Fair Value | 2,108 | 2,108 | |
Asset-backed securities | |||
Available-for-sale investments | |||
Adjusted Cost | 1,202 | 1,202 | |
Gross Unrealized (Losses) | (2) | ||
Estimated Fair Value | $ 1,200 | $ 1,200 |
Investments - Maturities of Ava
Investments - Maturities of Available-for-sale Investments (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Investments | |
2021 (Remainder of year) | $ 6,105 |
2022 | 3,674 |
2023 | 9,225 |
2024 | 10,724 |
2025 | 1,052 |
Thereafter | 10,629 |
Total | $ 41,409 |
Net Income Per Common Share - S
Net Income Per Common Share - Summary of Weighted Average Number of Common Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Denominator: | ||||
Basic weighted average shares outstanding | 45,490 | 46,893 | 45,810 | 47,174 |
Effect of dilutive stock options and restricted stock | 92 | 258 | 154 | 283 |
Diluted weighted average shares outstanding | 45,582 | 47,151 | 45,964 | 47,457 |
Net Income Per Common Share - A
Net Income Per Common Share - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restricted Stock | ||||
Antidilutive securities excluded from computation of earnings per share | ||||
Stock awards outstanding excluded from the calculation of diluted earnings | 1 | 81 | 2 | 182 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Allowance for credit losses | |||
Balance at Beginning of Period | $ 5,000 | $ 5,000 | $ 5,000 |
Balance at End of Period | $ 5,000 | 5,000 | 5,000 |
Cumulative Effect of Adoption Adjustment | ASU 2016-13 | |||
Allowance for credit losses | |||
Balance at Beginning of Period | $ 5,000 | 5,000 | |
Balance at End of Period | $ 5,000 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Property and Equipment | ||
Property and equipment | $ 253,240 | $ 241,610 |
Less accumulated depreciation and amortization | (120,237) | (112,953) |
Property and equipment, net | 133,003 | 128,657 |
Land | ||
Property and Equipment | ||
Property and equipment | 5,579 | 5,579 |
Land Improvements | ||
Property and Equipment | ||
Property and equipment | 2,242 | 2,242 |
Buildings | ||
Property and Equipment | ||
Property and equipment | 51,399 | 51,399 |
Buildings and Leasehold Improvements | ||
Property and Equipment | ||
Property and equipment | 16,987 | 14,352 |
Computer Equipment | ||
Property and Equipment | ||
Property and equipment | 101,224 | 100,575 |
Furniture, Fixtures and Equipment | ||
Property and Equipment | ||
Property and equipment | 16,609 | 15,439 |
Internally Developed Software | ||
Property and Equipment | ||
Property and equipment | 50,138 | 46,981 |
Construction in Progress | ||
Property and Equipment | ||
Property and equipment | $ 9,062 | $ 5,043 |
Amortizable Intangible Assets -
Amortizable Intangible Assets - Net Intangible Assets (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Intangible Assets | |
Gross Carrying Amount | $ 210,280 |
Accumulated Amortization | (20,852) |
Net Carrying Amount | $ 189,428 |
University partner relationships | |
Intangible Assets | |
Estimated average useful life | 25 years |
Gross Carrying Amount | $ 210,000 |
Accumulated Amortization | (20,572) |
Net Carrying Amount | $ 189,428 |
Trade names | |
Intangible Assets | |
Estimated average useful life | 1 year |
Gross Carrying Amount | $ 280 |
Accumulated Amortization | $ (280) |
Amortizable Intangible Assets_2
Amortizable Intangible Assets - Amortization Expense for Developed Curricula and Student Relationships (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Amortization expense | |
Net Carrying Amount | $ 189,428 |
University partner relationships and trade names | |
Amortization expense | |
Remainder of 2021 | 4,209 |
2022 | 8,419 |
2023 | 8,419 |
2024 | 8,419 |
2025 | 8,419 |
Therefore | 151,543 |
Net Carrying Amount | $ 189,428 |
Leases (Details)
Leases (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($)lease | Jun. 30, 2020USD ($) | |
Leases | ||
Lessee, Operating Lease, Existence of Option to Extend [true false] | false | |
Operating lease costs | $ 4,862 | $ 3,055 |
Non-cancelable operating lease commitments not yet commenced | $ 4,183 | |
Weighted-average remaining lease term | 8 years 1 month 17 days | |
Weighted-average discount rate of operating leases | 3.17% | |
Number of financing leases | lease | 0 | |
Minimum | ||
Leases | ||
Term of operating leases | 7 months | |
Maximum | ||
Leases | ||
Term of operating leases | 9 years 8 months 12 days |
Leases - Future Payment Obligat
Leases - Future Payment Obligations (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Leases | |
Remainder of 2021 | $ 4,556 |
2022 | 9,330 |
2023 | 8,851 |
2024 | 8,359 |
2025 | 8,047 |
Thereafter | 31,727 |
Total lease payments | 70,870 |
Less interest | 8,346 |
Present value of lease liabilities | $ 62,524 |
Notes Payable and Other Noncu_3
Notes Payable and Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 22, 2019 | Jun. 30, 2021 |
Amended and restated credit agreement | |||
Notes Payable and Other Noncurrent Liabilities | |||
Amount of credit facilities | $ 325,000 | ||
Term of credit facility | 5 years | ||
Amended and restated credit agreement | Term loan facility | |||
Notes Payable and Other Noncurrent Liabilities | |||
Amount of credit facilities | $ 243,750 | ||
Note payable, gross | $ 92,049 | ||
Loan modification costs | 1,639 | $ 847 | |
Amended and restated credit agreement | Revolving credit facility | |||
Notes Payable and Other Noncurrent Liabilities | |||
Amount of credit facilities | 81,250 | ||
Loan modification costs | $ 596 | ||
Amendment - October 31, 2019 | Term loan facility | |||
Notes Payable and Other Noncurrent Liabilities | |||
Amount of credit facilities | $ 150,625 | ||
Increase (decrease) in facility | (68,750) | ||
Amendment - October 31, 2019 | Revolving credit facility | |||
Notes Payable and Other Noncurrent Liabilities | |||
Amount of credit facilities | 150,000 | ||
Increase (decrease) in facility | $ 68,750 |
Notes Payable and Other Noncu_4
Notes Payable and Other Noncurrent Liabilities - Current and Noncurrent Portions of Notes Payable (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Notes Payable and Other Noncurrent Liabilities | ||
Less: Current portion | $ 68,145 | $ 33,144 |
Notes payable, less current portion | 58,057 | 74,630 |
Amended and restated credit agreement | ||
Notes Payable and Other Noncurrent Liabilities | ||
Notes payable including current portion | 126,202 | 107,774 |
Less: Current portion | 68,145 | 33,144 |
Notes payable, less current portion | 58,057 | 74,630 |
Amended and restated credit agreement | Term loan facility | ||
Notes Payable and Other Noncurrent Liabilities | ||
Quarterly payment of notes payable | 8,368 | |
Notes payable including current portion | $ 91,202 | $ 107,774 |
Amended and restated credit agreement | Term loan facility | 30-Day LIBOR | ||
Notes Payable and Other Noncurrent Liabilities | ||
Margin on variable interest rate | 2.00% | 2.00% |
Interest rate of notes payable | 2.09% | |
Amended and restated credit agreement | Revolving credit facility | ||
Notes Payable and Other Noncurrent Liabilities | ||
Notes payable including current portion | $ 35,000 | |
Amended and restated credit agreement | Revolving credit facility | 30-Day LIBOR | ||
Notes Payable and Other Noncurrent Liabilities | ||
Interest rate of notes payable | 4.00% |
Notes Payable and Other Noncu_5
Notes Payable and Other Noncurrent Liabilities - Payments Due Under Notes Payable Obligations (Details) - Amended and restated credit agreement $ in Thousands | Jun. 30, 2021USD ($) |
Payments due under notes payable obligations: | |
Remainder of 2021 | $ 16,572 |
2022 | 33,144 |
2023 | 33,145 |
2024 | 8,341 |
Total | $ 91,202 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Additional Information (Details) shares in Thousands, $ in Thousands | 1 Months Ended | 6 Months Ended |
Jun. 30, 2021shares | Jun. 30, 2021USD ($)itemshares | |
2017 Plan | ||
Share-based Compensation Plans | ||
Shares available for grant | 1,414 | 1,414 |
Maximum | 2017 Plan | ||
Share-based Compensation Plans | ||
Shares available for grant | 3,000 | 3,000 |
Restricted Stock | ||
Share-based Compensation Plans | ||
Shares granted | 184 | |
Shares withheld for taxes | 56 | |
Common stock in lieu of taxes | $ | $ 5,994 | |
Forfeiture of shares by transferred employees at closing of transaction | 8 | |
Restricted Stock | Share-based Payment Arrangement, Nonemployee | ||
Share-based Compensation Plans | ||
Shares granted | 4 | |
Restricted Stock | 2008 Plan | ||
Share-based Compensation Plans | ||
Shares granted | 180 | |
Vesting period | 5 years | |
Number of anniversaries of the vesting date following the date of grant | item | 4 | |
Restricted Stock | Share-based Compensation Award, Tranche One | 2008 Plan | ||
Share-based Compensation Plans | ||
Vesting right percentage | 20.00% | |
Restricted Stock | Share-based Compensation Award, Tranche Two | 2008 Plan | ||
Share-based Compensation Plans | ||
Vesting right percentage | 20.00% | |
Restricted Stock | Share-based Compensation Award, Tranche Three | 2008 Plan | ||
Share-based Compensation Plans | ||
Vesting right percentage | 20.00% | |
Restricted Stock | Share-based Compensation Award Tranche Four | 2008 Plan | ||
Share-based Compensation Plans | ||
Vesting right percentage | 20.00% | |
Restricted Stock | Share-based Compensation Award Tranche Five | 2008 Plan | ||
Share-based Compensation Plans | ||
Vesting right percentage | 20.00% | |
Stock Options | ||
Share-based Compensation Plans | ||
Options granted | 0 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Summary of Activity Related to Restricted Stock Granted under Company's Incentive Plan (Details) - Restricted Stock shares in Thousands | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Total Shares | |
Total Shares, Outstanding, Beginning Balance | shares | 419 |
Total Shares, Granted | shares | 184 |
Total Shares, Vested | shares | (144) |
Total Shares, Forfeited, canceled or expired | shares | (8) |
Total Shares, Outstanding, Ending Balance | shares | 451 |
Weighted Average Grant Date | |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 83.43 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 86.05 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 74.90 |
Weighted Average Grant Date Fair Value, Forfeited, canceled or expired | $ / shares | 87.24 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 86.27 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans - Summary of Activity Related to Stock Options Granted under Company's Incentive Plan (Details) - Stock Options shares in Thousands | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Total Shares | |
Total Shares outstanding, Beginning balance | 176 |
Total Shares, Granted | 0 |
Total Shares, Exercised | (176) |
Weighted Average Exercise Price Per Share | |
Weighted Average Exercise Price per Share Outstanding, Beginning balance | $ / shares | $ 15.34 |
Weighted Average Exercise Price per Share, Exercised | $ / shares | $ 15.34 |
Share-Based Compensation Plan_5
Share-Based Compensation Plans - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Expense | ||
Share-based compensation expense | $ 5,959 | $ 5,334 |
Tax effect of share-based compensation | (1,490) | (1,334) |
Share-based compensation expense, net of tax | 4,469 | 4,000 |
Technology and Academic Services | ||
Share-based Compensation Expense | ||
Share-based compensation expense | 1,158 | 1,026 |
Counseling Services and Support | ||
Share-based Compensation Expense | ||
Share-based compensation expense | 2,971 | 2,694 |
Marketing and Communication | ||
Share-based Compensation Expense | ||
Share-based compensation expense | 51 | 50 |
University related expenses | ||
Share-based Compensation Expense | ||
Share-based compensation expense | $ 1,779 | $ 1,564 |
Treasury Stock (Details)
Treasury Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | May 17, 2021 | May 14, 2021 | May 04, 2021 | Mar. 10, 2021 | Jul. 31, 2021 | Jan. 31, 2021 | May 04, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
Treasury Stock | |||||||||||||
Adjustment to additional paid in capital | $ 281,103 | $ 281,103 | $ 282,467 | ||||||||||
Common stock acquired, cost | 98,331 | $ 63,348 | $ 8,311 | $ 60,737 | |||||||||
Accelerated Share Repurchase March 10, 2021 | |||||||||||||
Treasury Stock | |||||||||||||
Stock price on initial delivery | $ 101.49 | ||||||||||||
Number of repurchased shares delivered in initial delivery | 276 | ||||||||||||
Initial share delivery as a percentage of the number of shares initially underlying the ASR agreement | 80.00% | ||||||||||||
Number of additional repurchased shares delivered at final settlement | 46 | ||||||||||||
Aggregate number of shares delivered | 322 | ||||||||||||
Final average cost per share | $ 108.76 | ||||||||||||
Adjustment to additional paid in capital | $ 7,000 | $ (7,000) | $ 7,000 | ||||||||||
Common stock acquired, cost | $ 7,000 | 28,000 | |||||||||||
Accelerated Share Repurchase March 10, 2021 | Maximum | |||||||||||||
Treasury Stock | |||||||||||||
Targeted repurchase of common stock | $ 35,000 | ||||||||||||
Accelerated Share Repurchase May 14, 2021 | |||||||||||||
Treasury Stock | |||||||||||||
Stock price on initial delivery | $ 95.63 | ||||||||||||
Number of repurchased shares delivered in initial delivery | 418 | ||||||||||||
Initial share delivery as a percentage of the number of shares initially underlying the ASR agreement | 80.00% | ||||||||||||
Adjustment to additional paid in capital | $ 10,000 | ||||||||||||
Common stock acquired, cost | 40,000 | ||||||||||||
Accelerated Share Repurchase May 14, 2021 | Maximum | |||||||||||||
Treasury Stock | |||||||||||||
Targeted repurchase of common stock | $ 50,000 | ||||||||||||
Common stock repurchase authorization | |||||||||||||
Treasury Stock | |||||||||||||
Increase in stock repurchase plan authorized | $ 970,000 | $ 100,000 | |||||||||||
Authorized amount for repurchase of common stock | 1,470,000 | ||||||||||||
Common stock acquired, shares | 1,549 | ||||||||||||
Common stock acquired, cost | $ 151,679 | ||||||||||||
Remaining authorized repurchase amount | $ 1,066,592 | $ 96,592 | $ 96,592 |