Quarterly Results of Operations (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations (Unaudited)

17. Quarterly Results of Operations (Unaudited)

The following table summarizes the unaudited quarterly results of operations for 2019 and 2018 and should be read in conjunction with other information included in the accompanying consolidated financial statements.

	2019
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Service revenue	$	197,287	$	174,820	$	193,289	$	213,247
Net revenue		197,287		174,820		193,289		213,247
Costs and expenses:
Technology and academic services		18,625		22,528		24,231		25,128
Counseling services and support		53,093		54,299		56,249		59,957
Marketing and communication		35,967		35,726		37,340		33,863
General and administrative		11,397		9,216		13,556		10,148
Amortization of intangible assets		1,686		2,179		2,179		2,179
Loss on transaction		4,088		(122)		—		—
Total costs and expenses		124,856		123,826		133,555		131,275
Operating income		72,431		50,994		59,734		81,972
Interest income on Secured Note		13,735		14,482		16,208		14,872
Interest expense		(2,586)		(2,907)		(2,875)		(2,943)
Investment interest and other		1,119		2,668		255		343
Income before income taxes		84,699		65,237		73,322		94,244
Income tax expense		11,456		14,125		15,171		17,575
Net income	$	73,243	$	51,112	$	58,151	$	76,669
Earnings per share:
Basic income per share(1)	$	1.54	$	1.07	$	1.21	$	1.61
Diluted income per share(1)	$	1.52	$	1.06	$	1.20	$	1.59
Basic weighted average shares outstanding		47,699		47,851		47,920		47,758
Diluted weighted average shares outstanding		48,274		48,313		48,337		48,112

(1) The sum of quarterly income per share may not equal annual income per share due to rounding.

	2018
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Service revenue	$	—	$	—	$	155,454	$	177,548
University related revenue		275,681		236,818		—		—
Net revenue		275,681		236,818		155,454		177,548
Costs and expenses:
Technology and academic services		10,697		10,678		11,101		11,098
Counseling services and support		50,747		50,838		51,116		51,989
Marketing and communication		28,527		30,095		31,546		27,252
General and administrative		7,419		5,762		10,092		6,695
University related expenses		87,649		79,517		6,569		(405)
Loss on transaction		550		1,440		15,610		770
Total costs and expenses		185,589		178,330		126,034		97,399
Operating income		90,092		58,488		29,420		80,149
Interest income on Secured Note		—		—		13,248		13,699
Interest expense		(346)		(57)		(558)		(575)
Investment interest and other		981		1,567		371		521
Income before income taxes		90,727		59,998		42,481		93,794
Income tax expense		17,046		13,960		8,720		18,263
Net income	$	73,681	$	46,038	$	33,761	$	75,531
Earnings per share:
Basic income per share(1)	$	1.55	$	0.97	$	0.71	$	1.58
Diluted income per share(1)	$	1.52	$	0.95	$	0.70	$	1.56
Basic weighted average shares outstanding		47,432		47,604		47,682		47,708
Diluted weighted average shares outstanding		48,397		48,411		48,422		48,422

(1) The sum of quarterly income per share may not equal annual income per share due to rounding.