2020 Q4 Form 10-K Financial Statement

#000155837021001135 Filed on February 17, 2021

View on sec.gov

Income Statement

Concept 2020 Q4 2019 Q4 2019 Q3
Revenue $238.3M $213.2M $193.3M
YoY Change 11.75% 20.11% 24.34%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $48.56M $44.01M $50.90M
YoY Change 10.32% 29.65% 22.23%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $7.500M $7.100M $6.800M
YoY Change 5.63% 82.05% 78.95%
% of Gross Profit
Operating Expenses $48.56M $44.01M $50.90M
YoY Change 10.32% 29.65% 22.23%
Operating Profit $97.29M $81.97M $59.73M
YoY Change 18.69% 2.27% 103.04%
Interest Expense $865.0K $2.943M $2.875M
YoY Change -70.61% 411.83% 415.23%
% of Operating Profit 0.89% 3.59% 4.81%
Other Income/Expense, Net
YoY Change
Pretax Income $111.4M $94.24M $73.32M
YoY Change 18.23% 0.48% 72.6%
Income Tax $24.67M $17.58M $15.17M
% Of Pretax Income 22.14% 18.65% 20.69%
Net Earnings $86.76M $76.67M $58.15M
YoY Change 13.16% 1.51% 72.24%
Net Earnings / Revenue 36.41% 35.95% 30.09%
Basic Earnings Per Share $1.87 $1.61 $1.21
Diluted Earnings Per Share $1.86 $1.59 $1.20
COMMON SHARES
Basic Shares Outstanding 46.37M 47.76M 47.92M
Diluted Shares Outstanding 46.66M 48.11M 48.34M

Balance Sheet

Concept 2020 Q4 2019 Q4 2019 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $256.6M $143.9M $133.9M
YoY Change 78.32% -23.98% 17.87%
Cash & Equivalents $245.8M $122.3M $119.7M
Short-Term Investments $10.80M $21.60M $14.20M
Other Short-Term Assets $8.639M $8.035M $11.26M
YoY Change 7.52% 15.4% 30.77%
Inventory
Prepaid Expenses
Receivables $62.19M $48.94M $83.38M
Other Receivables $6.300M $7.200M $8.700M
Total Short-Term Assets $333.7M $208.3M $237.5M
YoY Change 60.19% -32.68% -6.92%
LONG-TERM ASSETS
Property, Plant & Equipment $128.7M $119.7M $118.6M
YoY Change 7.45% 7.83% 6.97%
Goodwill $160.8M $160.8M $160.9M
YoY Change 0.0% 5366.37% 5369.94%
Intangibles $193.6M $202.1M $204.2M
YoY Change -4.17%
Long-Term Investments
YoY Change
Other Assets $1.844M $1.706M $1.742M
YoY Change 8.09% 256.9% 134.45%
Total Long-Term Assets $1.511B $1.482B $1.523B
YoY Change 1.95% 46.07% 52.7%
TOTAL ASSETS
Total Short-Term Assets $333.7M $208.3M $237.5M
Total Long-Term Assets $1.511B $1.482B $1.523B
Total Assets $1.845B $1.690B $1.761B
YoY Change 9.13% 27.66% 40.55%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $16.58M $14.84M $20.74M
YoY Change 11.78% 3.93% 22.04%
Accrued Expenses $21.95M $16.77M $18.95M
YoY Change 30.85% 88.29% 40.23%
Deferred Revenue $20.00K $9.201M
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $33.10M $33.10M $45.30M
YoY Change 0.0% -9.32% 586.36%
Total Short-Term Liabilities $118.7M $95.23M $124.0M
YoY Change 24.66% 18.27% 125.75%
LONG-TERM LIABILITIES
Long-Term Debt $74.60M $107.8M $211.1M
YoY Change -30.8% 360.68% 283.82%
Other Long-Term Liabilities $3.000K $13.00K $16.00K
YoY Change -76.92%
Total Long-Term Liabilities $3.000K $13.00K $16.00K
YoY Change -76.92% -99.94% -99.97%
TOTAL LIABILITIES
Total Short-Term Liabilities $118.7M $95.23M $124.0M
Total Long-Term Liabilities $3.000K $13.00K $16.00K
Total Liabilities $270.3M $246.9M $378.8M
YoY Change 9.48% 123.56% 231.35%
SHAREHOLDERS EQUITY
Retained Earnings $1.595B $1.341B $1.265B
YoY Change 18.89% 23.95% 25.63%
Common Stock $283.0M $271.5M $268.8M
YoY Change 4.25% 5.49% 6.52%
Preferred Stock
YoY Change
Treasury Stock (at cost) $303.4M $169.4M $150.9M
YoY Change 79.13% 35.0% 25.75%
Treasury Stock Shares $6.628M $4.949M $4.747M
Shareholders Equity $1.574B $1.443B $1.382B
YoY Change
Total Liabilities & Shareholders Equity $1.845B $1.690B $1.761B
YoY Change 9.13% 27.66% 40.55%

Cashflow Statement

Concept 2020 Q4 2019 Q4 2019 Q3
OPERATING ACTIVITIES
Net Income $86.76M $76.67M $58.15M
YoY Change 13.16% 1.51% 72.24%
Depreciation, Depletion And Amortization $7.500M $7.100M $6.800M
YoY Change 5.63% 82.05% 78.95%
Cash From Operating Activities $128.7M $111.2M $5.800M
YoY Change 15.74% 8.38% -85.75%
INVESTING ACTIVITIES
Capital Expenditures -$7.500M -$7.300M -$5.500M
YoY Change 2.74% -66.2% -96.47%
Acquisitions
YoY Change
Other Investing Activities $1.900M $32.50M $60.20M
YoY Change -94.15% -3711.11% 713.51%
Cash From Investing Activities -$5.700M $25.20M $54.70M
YoY Change -122.62% -212.0% -136.88%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -44.30M -133.9M -6.500M
YoY Change -66.92% 2875.56% -14.47%
NET CHANGE
Cash From Operating Activities 128.7M 111.2M 5.800M
Cash From Investing Activities -5.700M 25.20M 54.70M
Cash From Financing Activities -44.30M -133.9M -6.500M
Net Change In Cash 78.70M 2.500M 54.00M
YoY Change 3048.0% -96.69% -146.88%
FREE CASH FLOW
Cash From Operating Activities $128.7M $111.2M $5.800M
Capital Expenditures -$7.500M -$7.300M -$5.500M
Free Cash Flow $136.2M $118.5M $11.30M
YoY Change 14.94% -4.59% -94.24%

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CY2020 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
257196000
CY2020 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
129045000
CY2020 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
5694000
CY2020 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
883000
CY2020Q4 us-gaap Stockholders Equity
StockholdersEquity
1574329000
CY2020 us-gaap Profit Loss
ProfitLoss
257196000
CY2019 us-gaap Profit Loss
ProfitLoss
259175000
CY2018 us-gaap Profit Loss
ProfitLoss
229011000
CY2020 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
10663000
CY2019 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
10300000
CY2018 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
19508000
CY2018 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
8669000
CY2020 lope Depreciation And Amortization Excluding Intangible Assets
DepreciationAndAmortizationExcludingIntangibleAssets
21233000
CY2019 lope Depreciation And Amortization Excluding Intangible Assets
DepreciationAndAmortizationExcludingIntangibleAssets
18696000
CY2018 lope Depreciation And Amortization Excluding Intangible Assets
DepreciationAndAmortizationExcludingIntangibleAssets
35673000
CY2020 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
8419000
CY2019 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
8223000
CY2020 us-gaap Deferred Income Taxes And Tax Credits
DeferredIncomeTaxesAndTaxCredits
3136000
CY2019 us-gaap Deferred Income Taxes And Tax Credits
DeferredIncomeTaxesAndTaxCredits
1670000
CY2018 us-gaap Deferred Income Taxes And Tax Credits
DeferredIncomeTaxesAndTaxCredits
-11507000
CY2019 lope Gain Loss On Transaction Net Of Costs And Asset Impairment
GainLossOnTransactionNetOfCostsAndAssetImpairment
-3966000
CY2018 lope Gain Loss On Transaction Net Of Costs And Asset Impairment
GainLossOnTransactionNetOfCostsAndAssetImpairment
-12605000
CY2020 us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
-571000
CY2019 us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
335000
CY2018 us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
-2101000
CY2020 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
13250000
CY2019 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
-766000
CY2018 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
51480000
CY2018 us-gaap Payments To Acquire Marketable Securities
PaymentsToAcquireMarketableSecurities
46948000
CY2018 lope Accounts Receivable Related To University Operations
AccountsReceivableRelatedToUniversityOperations
7784000
CY2020 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
621000
CY2019 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-2136000
CY2018 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-1553000
CY2020 lope Increase Decrease In Operating Lease Liabilities Recognized In Exchange For Right Of Use Assets
IncreaseDecreaseInOperatingLeaseLiabilitiesRecognizedInExchangeForRightOfUseAssets
2151000
CY2019 lope Increase Decrease In Operating Lease Liabilities Recognized In Exchange For Right Of Use Assets
IncreaseDecreaseInOperatingLeaseLiabilitiesRecognizedInExchangeForRightOfUseAssets
833000
CY2020 us-gaap Increase Decrease In Accounts Payable Trade
IncreaseDecreaseInAccountsPayableTrade
1012000
CY2019 us-gaap Increase Decrease In Accounts Payable Trade
IncreaseDecreaseInAccountsPayableTrade
-3095000
CY2018 us-gaap Increase Decrease In Accounts Payable Trade
IncreaseDecreaseInAccountsPayableTrade
-14306000
CY2020 us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
18612000
CY2019 us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
5078000
CY2018 us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
-15700000
CY2020 us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
-279000
CY2019 us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
-1044000
CY2018 us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
-8662000
CY2020 lope Increase Decrease In Deferred Rent
IncreaseDecreaseInDeferredRent
-20000
CY2018 lope Increase Decrease In Deferred Rent
IncreaseDecreaseInDeferredRent
-189000
CY2019 lope Increase Decrease In Contract With Customer Liability Student Deposits
IncreaseDecreaseInContractWithCustomerLiabilityStudentDeposits
-25000
CY2018 lope Increase Decrease In Contract With Customer Liability Student Deposits
IncreaseDecreaseInContractWithCustomerLiabilityStudentDeposits
6881000
CY2018 lope Increase Decrease In Contract With Customer Liability Excluding Student Deposits
IncreaseDecreaseInContractWithCustomerLiabilityExcludingStudentDeposits
-7288000
CY2020 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
308823000
CY2019 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
306344000
CY2018 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
199085000
CY2020 us-gaap Payments To Acquire Productive Assets
PaymentsToAcquireProductiveAssets
29418000
CY2019 us-gaap Payments To Acquire Productive Assets
PaymentsToAcquireProductiveAssets
22391000
CY2018 us-gaap Payments To Acquire Productive Assets
PaymentsToAcquireProductiveAssets
94527000
CY2018 lope Purchase Of Land Related To Offsite Development
PurchaseOfLandRelatedToOffsiteDevelopment
330000
CY2020 lope Payments To Develop Education Resources
PaymentsToDevelopEducationResources
524000
CY2019 lope Payments To Develop Education Resources
PaymentsToDevelopEducationResources
260000
CY2019 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
361184000
CY2018 lope Payments Related To Disposition Of Productive Assets
PaymentsRelatedToDispositionOfProductiveAssets
131550000
CY2018 lope Payments Of Funding At Closing In Excess Of Required Capital
PaymentsOfFundingAtClosingInExcessOfRequiredCapital
7377000
CY2018 lope Proceeds From Repayment Of Funding In Excess Of Required Capital
ProceedsFromRepaymentOfFundingInExcessOfRequiredCapital
7377000
CY2020 lope Payments To Fund Notes Receivable
PaymentsToFundNotesReceivable
75000000
CY2019 lope Payments To Fund Notes Receivable
PaymentsToFundNotesReceivable
169819000
CY2018 lope Payments To Fund Notes Receivable
PaymentsToFundNotesReceivable
29996000
CY2020 us-gaap Proceeds From Collection Of Notes Receivable
ProceedsFromCollectionOfNotesReceivable
75000000
CY2019 us-gaap Proceeds From Collection Of Notes Receivable
ProceedsFromCollectionOfNotesReceivable
100000000
CY2019 us-gaap Payments To Acquire Marketable Securities
PaymentsToAcquireMarketableSecurities
9384000
CY2019 us-gaap Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
57163000
CY2018 us-gaap Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
65116000
CY2020 us-gaap Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
10591000
CY2019 us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
781893000
CY2018 us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
907960000
CY2020 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-19351000
CY2019 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-405875000
CY2018 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-238235000
CY2020 us-gaap Repayments Of Debt And Capital Lease Obligations
RepaymentsOfDebtAndCapitalLeaseObligations
33144000
CY2019 us-gaap Repayments Of Debt And Capital Lease Obligations
RepaymentsOfDebtAndCapitalLeaseObligations
92433000
CY2018 us-gaap Repayments Of Debt And Capital Lease Obligations
RepaymentsOfDebtAndCapitalLeaseObligations
6719000
CY2019 us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
2385000
CY2019 us-gaap Proceeds From Notes Payable
ProceedsFromNotesPayable
243750000
CY2019 us-gaap Proceeds From Repayments Of Lines Of Credit
ProceedsFromRepaymentsOfLinesOfCredit
-68750000
CY2020 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
134014000
CY2019 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
43913000
CY2018 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
24758000
CY2020 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
883000
CY2019 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
3821000
CY2018 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
4632000
CY2020 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-166275000
CY2019 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
40090000
CY2018 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-26845000
CY2020 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
123197000
CY2019 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-59441000
CY2018 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-65995000
CY2019Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
122572000
CY2018Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
182013000
CY2017Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
248008000
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
245769000
CY2019Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
122572000
CY2018Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
182013000
CY2020 us-gaap Interest Paid Net
InterestPaidNet
4306000
CY2019 us-gaap Interest Paid Net
InterestPaidNet
11516000
CY2018 us-gaap Interest Paid Net
InterestPaidNet
1511000
CY2020 us-gaap Income Taxes Paid
IncomeTaxesPaid
68381000
CY2019 us-gaap Income Taxes Paid
IncomeTaxesPaid
59903000
CY2018 us-gaap Income Taxes Paid
IncomeTaxesPaid
78195000
CY2018 lope Sale Transaction To Affiliates Through Secured Note Financing
SaleTransactionToAffiliatesThroughSecuredNoteFinancing
870097000
CY2020 us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
1206000
CY2019 us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
469000
CY2018 us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
1121000
CY2018 lope Reclassification Of Capitalized Costs Due To Adoption Of Asc606
ReclassificationOfCapitalizedCostsDueToAdoptionOfASC606
9015000
CY2018 lope Reclassification Of Deferred Revenue Due To Adoption Of Asc606
ReclassificationOfDeferredRevenueDueToAdoptionOfASC606
7451000
CY2019 lope Gross Up Of Right Of Use Assets And Lease Liabilities Adoption Of Asu201602
GrossUpOfRightOfUseAssetsAndLeaseLiabilitiesAdoptionOfAsu201602
498000
CY2020 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
33250000
CY2019 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
14203000
CY2019 us-gaap Other Comprehensive Income Loss Cash Flow Hedge Gain Loss Reclassification Before Tax
OtherComprehensiveIncomeLossCashFlowHedgeGainLossReclassificationBeforeTax
1100000
CY2018 lope Reclassification Of Tax Effect Within Accumulated Other Comprehensive Income
ReclassificationOfTaxEffectWithinAccumulatedOtherComprehensiveIncome
156000
CY2020 us-gaap Nature Of Operations
NatureOfOperations
<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-weight:bold;margin:0pt 0pt 12pt 0pt;">1. Nature of Business</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:18pt;margin:0pt 0pt 12pt 0pt;">Grand Canyon Education, <span style="white-space:pre-wrap;">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 that operates a comprehensive regionally accredited university that offers graduate and undergraduate degree programs, emphases and certificates across </span>nine colleges both online and on ground at its campus in Phoenix, Arizona. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:18pt;margin:0pt 0pt 12pt 0pt;">Prior to July 1, 2018, GCE owned and operated Grand Canyon University (the “University”). On July <span style="white-space:pre-wrap;">1, 2018, the Company sold the University to GCU. As a result of this transaction (the “Transaction”), GCE became an education services company focused on providing a full array of support services to institutions in the post-secondary education sector. GCE provides education services that include technology and academic services, counseling services and support, marketing and communication services, and for its largest university partner several back-office services such as accounting, reporting, tax, human resources, and procurement services. See Note 2 to our consolidated financial statements for a full description of the Transaction.</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">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<span style="white-space:pre-wrap;">, net of cash acquired (the “Acquisition”). Therefore, the results of operations for the year ended December 31, 2019 include Orbis Education’s financial results for the period from January 22, 2019 to December 31, 2019. The Company financed a portion of the purchase price through a credit facility provided by a consortium of banks led by our existing bank group. See Note 3 to our consolidated financial statement for a full description of the Acquisition.</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt 0pt 12pt 0pt;"><span style="white-space:pre-wrap;">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 health care 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 December 31, 2020, GCE provides education services to </span>25 university partners across the Unites States<span style="white-space:pre-wrap;">. </span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:18pt;margin:0pt 0pt 12pt 0pt;">GCE was formed in Delaware in November 2003 as a limited liability company, under the name Significant Education, LLC, for the purchase of acquiring the assets of the University from a non-profit foundation on February 2, 2004. On August 24, 2005, the Company converted from a limited liability company to a corporation and changed its name to Significant Education, Inc. On May 9, 2008, the Company changed its name to Grand Canyon Education, Inc. The Company’s wholly-owned subsidiaries were historically used to facilitate expansion of the university campus prior to the Transaction.</p>
CY2020Q4 lope Number Of University Service Partners
NumberOfUniversityServicePartners
25
CY2019Q4 us-gaap Net Income Loss
NetIncomeLoss
76669000
CY2019Q4 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
213247000
CY2018Q4 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
177548000
CY2019 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
778643000
CY2018 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
845501000
CY2019Q4 us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
213247000
CY2018Q4 us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
195656000
CY2018Q4 us-gaap Net Income Loss
NetIncomeLoss
75531000
CY2019 us-gaap Net Income Loss
NetIncomeLoss
259175000
CY2018 us-gaap Net Income Loss
NetIncomeLoss
229011000
CY2019Q4 us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
76669000
CY2018Q4 us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
69551000
CY2019 us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
247930000
CY2018 us-gaap Interest Costs Incurred
InterestCostsIncurred
2292000
CY2018 us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
200264000
CY2020 us-gaap Use Of Estimates
UseOfEstimates
<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:italic;font-weight:bold;margin:0pt 0pt 12pt 0pt;">Use of Estimates</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:18pt;margin:0pt 0pt 12pt 0pt;">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.</p>
CY2018 us-gaap Debt Securities Available For Sale Transfer To Trading Loss
DebtSecuritiesAvailableForSaleTransferToTradingLoss
372000
CY2018 lope Capitalized Interest Rate On Borrowing To Finance Improvement
CapitalizedInterestRateOnBorrowingToFinanceImprovement
0.037
CY2020 us-gaap Interest Costs Incurred
InterestCostsIncurred
4402000
CY2018 us-gaap Interest Costs Capitalized Adjustment
InterestCostsCapitalizedAdjustment
756000
CY2019 us-gaap Interest Costs Incurred
InterestCostsIncurred
11311000
CY2019Q4 us-gaap Unbilled Receivables Current
UnbilledReceivablesCurrent
118000
CY2020Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
8419000
CY2018 us-gaap Interest Expense
InterestExpense
1536000
CY2020 us-gaap Interest Expense
InterestExpense
4402000
CY2019 us-gaap Interest Expense
InterestExpense
11311000
CY2020Q4 lope Number Of Stages Of Software Development Projects
NumberOfStagesOfSoftwareDevelopmentProjects
3
CY2020 us-gaap Property Plant And Equipment Useful Life
PropertyPlantAndEquipmentUsefulLife
P15Y
CY2020Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
8419000
CY2020 lope Royalty Amortization Period
RoyaltyAmortizationPeriod
P20Y
CY2018Q3 us-gaap Asset Impairment Charges
AssetImpairmentCharges
3037000
CY2020 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1
CY2020 us-gaap Number Of Reporting Units
NumberOfReportingUnits
1
CY2020Q4 us-gaap Notes And Loans Receivable Net Noncurrent
NotesAndLoansReceivableNetNoncurrent
964912000
CY2020Q4 us-gaap Notes Receivable Fair Value Disclosure
NotesReceivableFairValueDisclosure
1049458000
CY2020Q4 us-gaap Liability For Uncertain Tax Positions Current
LiabilityForUncertainTaxPositionsCurrent
11318000
CY2019Q4 us-gaap Liability For Uncertain Tax Positions Current
LiabilityForUncertainTaxPositionsCurrent
6773000
CY2018Q2 us-gaap Capitalized Contract Cost Gross
CapitalizedContractCostGross
0
lope Reduction In Revenue Due To Scholarships Offered To Students
ReductionInRevenueDueToScholarshipsOfferedToStudents
101176000
lope Revenue From Contract With Customer Excluding Assessed Tax Before Revenue Reduction Adjustments
RevenueFromContractWithCustomerExcludingAssessedTaxBeforeRevenueReductionAdjustments
613675000
lope Reduction In Revenue Due To Scholarships Offered To Students
ReductionInRevenueDueToScholarshipsOfferedToStudents
101176000
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
512499000
CY2020 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
AllowanceForDoubtfulAccountsReceivableWriteOffs
0
CY2020Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
0
CY2020Q4 us-gaap Unbilled Receivables Current
UnbilledReceivablesCurrent
294000
CY2020 us-gaap Financing Receivable Allowance For Credit Losses Policy For Uncollectible Amounts
FinancingReceivableAllowanceForCreditLossesPolicyForUncollectibleAmounts
<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 12pt 0pt;"><span style="font-style:italic;font-weight:bold;">Allowance for Credit Losses</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt 0pt 12pt 0pt;"><span style="white-space:pre-wrap;">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 partner’s 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 through December 31, 2019, and continued growth to </span>25 university partners, the Company has no credit losses with any of our university partners. In the first quarter of 2020, the Company adopted ASU 2016-13, <i style="font-style:italic;">Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments </i><span style="white-space:pre-wrap;">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 </span>$5,000<span style="white-space:pre-wrap;"> on its long-term Secured Note receivable. The cumulative effect for the Company upon adoption of this new standard was </span>$3,832, net of taxes of $1,168<span style="white-space:pre-wrap;">. Bad debt expense is recorded as a technology and academic services expense in the consolidated income statement. The Company will continue to actively monitor the impact of the COVID-19 pandemic on expected credit losses.</span></p>
CY2020Q4 lope Number Of University Service Partners
NumberOfUniversityServicePartners
25
CY2020 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:italic;font-weight:bold;margin:0pt 0pt 12pt 0pt;">Concentration of Credit Risk</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:18pt;margin:0pt 0pt 12pt 0pt;">The Company believes the credit risk related to cash equivalents and investments is limited due to its adherence to an investment policy that required 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 December <span style="white-space:pre-wrap;">31, 2020 and 2019 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 accounts receivables since July 1, 2018, the date the Company transitioned to an education service company. 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 largest university partner, which is also the counterparty to the Secured Note, with </span>86.8% and 89.0% of total service revenue for the years ended December 31, 2020 and 2019, respectively, subjects us to the risk that declines in our customer’s operations would result in a sustained reduction in service revenue and interest income on Secured Note for the Company.</p>
CY2020Q4 us-gaap Investments
Investments
10840000
CY2019Q4 us-gaap Investments
Investments
21601000
CY2019Q4 us-gaap Financing Receivable Allowance For Credit Losses
FinancingReceivableAllowanceForCreditLosses
5000000
CY2020Q4 us-gaap Financing Receivable Allowance For Credit Losses
FinancingReceivableAllowanceForCreditLosses
5000000
CY2017Q4 us-gaap Financing Receivable Allowance For Credit Losses
FinancingReceivableAllowanceForCreditLosses
5907000
CY2018 us-gaap Provision For Loan Lease And Other Losses
ProvisionForLoanLeaseAndOtherLosses
8669000
CY2018 lope Financing Receivable Allowance For Credit Loss Writeoffs Net Of Recoveries
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IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
111421000
CY2020Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
22791000
CY2020Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
15346000
CY2020Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
13141000
CY2020Q4 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
24666000
CY2020Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
47151000
CY2020Q1 us-gaap Net Income Loss
NetIncomeLoss
71385000
CY2020Q2 us-gaap Net Income Loss
NetIncomeLoss
47010000
CY2020Q3 us-gaap Net Income Loss
NetIncomeLoss
52046000
CY2020Q4 us-gaap Net Income Loss
NetIncomeLoss
86755000
CY2020Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.50
CY2020Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.00
CY2020Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.11
CY2020Q4 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.87
CY2020Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.49
CY2020Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.00
CY2020Q4 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
46369000
CY2020Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
47764000
CY2020Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
47095000
CY2020Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
46655000
CY2019Q1 lope Technology And Academic Services
TechnologyAndAcademicServices
18625000
CY2019Q2 lope Technology And Academic Services
TechnologyAndAcademicServices
22528000
CY2019Q3 lope Technology And Academic Services
TechnologyAndAcademicServices
24231000
CY2019Q4 lope Technology And Academic Services
TechnologyAndAcademicServices
25128000
CY2019Q1 lope Counseling Services And Support
CounselingServicesAndSupport
53093000
CY2019Q2 lope Counseling Services And Support
CounselingServicesAndSupport
54299000
CY2019Q3 lope Counseling Services And Support
CounselingServicesAndSupport
56249000
CY2019Q4 lope Counseling Services And Support
CounselingServicesAndSupport
59957000
CY2019Q1 us-gaap Marketing Expense
MarketingExpense
35967000
CY2019Q2 us-gaap Marketing Expense
MarketingExpense
35726000
CY2019Q3 us-gaap Marketing Expense
MarketingExpense
37340000
CY2019Q4 us-gaap Marketing Expense
MarketingExpense
33863000
CY2019Q1 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
11397000
CY2019Q2 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
9216000
CY2019Q3 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
13556000
CY2019Q4 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
10148000
CY2019Q1 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
1686000
CY2019Q2 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
2179000
CY2019Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
2179000
CY2019Q4 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
2179000
CY2019Q1 lope Loss On Transaction
LossOnTransaction
4088000
CY2019Q2 lope Loss On Transaction
LossOnTransaction
-122000
CY2019Q1 us-gaap Costs And Expenses
CostsAndExpenses
124856000
CY2019Q2 us-gaap Costs And Expenses
CostsAndExpenses
123826000
CY2019Q3 us-gaap Costs And Expenses
CostsAndExpenses
133555000
CY2019Q4 us-gaap Costs And Expenses
CostsAndExpenses
131275000
CY2019Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
72431000
CY2019Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
50994000
CY2019Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
59734000
CY2019Q4 us-gaap Operating Income Loss
OperatingIncomeLoss
81972000
CY2019Q1 lope Interest Income On Note Receivable
InterestIncomeOnNoteReceivable
13735000
CY2019Q2 lope Interest Income On Note Receivable
InterestIncomeOnNoteReceivable
14482000
CY2019Q3 lope Interest Income On Note Receivable
InterestIncomeOnNoteReceivable
16208000
CY2019Q4 lope Interest Income On Note Receivable
InterestIncomeOnNoteReceivable
14872000
CY2019Q1 us-gaap Interest Expense
InterestExpense
2586000
CY2019Q2 us-gaap Interest Expense
InterestExpense
2907000
CY2019Q3 us-gaap Interest Expense
InterestExpense
2875000
CY2019Q4 us-gaap Interest Expense
InterestExpense
2943000
CY2019Q1 us-gaap Investment Income Nonoperating
InvestmentIncomeNonoperating
1119000
CY2019Q2 us-gaap Investment Income Nonoperating
InvestmentIncomeNonoperating
2668000
CY2019Q3 us-gaap Investment Income Nonoperating
InvestmentIncomeNonoperating
255000
CY2019Q4 us-gaap Investment Income Nonoperating
InvestmentIncomeNonoperating
343000
CY2019Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
84699000
CY2019Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
65237000
CY2019Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
73322000
CY2019Q4 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
94244000
CY2019Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
11456000
CY2019Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
14125000
CY2019Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
15171000
CY2019Q4 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
17575000
CY2019Q1 us-gaap Net Income Loss
NetIncomeLoss
73243000
CY2019Q2 us-gaap Net Income Loss
NetIncomeLoss
51112000
CY2019Q3 us-gaap Net Income Loss
NetIncomeLoss
58151000
CY2019Q4 us-gaap Net Income Loss
NetIncomeLoss
76669000
CY2019Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.54
CY2019Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.07
CY2019Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.21
CY2019Q4 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.61
CY2019Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.52
CY2019Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.06
CY2019Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.20
CY2019Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.59
CY2019Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
47699000
CY2019Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
47851000
CY2019Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
47920000
CY2019Q4 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
47758000
CY2019Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
48274000
CY2019Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
48313000
CY2019Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
48337000
CY2019Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
48112000

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