15. Quarterly Results of Operations (Unaudited)

The following table summarizes the unaudited quarterly results of operations for 2017 and 2016 and should be read in conjunction with other information included in the accompanying consolidated financial statements.


	2017
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Net revenue	$	248,206		$	218,301		$	236,209		$	271,418
Costs and expenses:
Instructional costs and services		102,574			95,030			104,303			108,933
Admissions advisory and related		31,972			31,085			31,426			34,061
Advertising		24,631			24,776			25,523			23,678
Marketing and promotional		2,460			2,264			2,350			2,555
General and administrative		9,941			10,058			12,915			10,845

Total costs and expenses		171,578			163,213			176,517			180,072

Operating income		76,628			55,088			59,692			91,346
Interest expense		(580	)		(495	)		(567	)		(527	)
Interest income and other		2			739			1,445			757

Income before income taxes		76,050			55,332			60,570			91,576
Income tax expense		20,138			15,485			21,266			23,320

Net income	$	55,912		$	39,847		$	39,304		$	68,256

Earnings per share:
Basic income per share⁽¹⁾	$	1.20		$	0.85		$	0.83		$	1.44

Diluted income per share⁽¹⁾	$	1.16		$	0.83		$	0.81		$	1.41

Basic weighted average shares outstanding		46,748			47,151			47,316			47,342

Diluted weighted average shares outstanding		48,070			48,192			48,292			48,382

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


	2016
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Net revenue	$	226,958		$	191,279		$	210,444		$	244,663
Costs and expenses:
Instructional costs and services		94,654			84,599			91,748			102,100
Admissions advisory and related		29,544			28,866			28,814			32,062
Advertising		21,107			22,149			23,896			21,000
Marketing and promotional		2,242			2,108			2,127			2,383
General and administrative		10,720			8,809			13,430			10,260
Lease termination costs		—			—			3,363			160

Total costs and expenses		158,267			146,531			163,378			167,965

Operating income		68,691			44,748			47,066			76,698
Interest expense		(329	)		(158	)		(344	)		(497	)
Interest income and other		2,048			293			(2,291	)		199

Income before income taxes		70,410			44,883			44,431			76,400
Income tax expense		26,745			17,257			15,187			28,421

Net income	$	43,665		$	27,626		$	29,244		$	47,979

Earnings per share:
Basic income per share⁽¹⁾	$	0.96		$	0.60		$	0.63		$	1.03

Diluted income per share⁽¹⁾	$	0.93		$	0.59		$	0.62		$	1.01

Basic weighted average shares outstanding		45,622			46,004			46,231			46,470

Diluted weighted average shares outstanding		46,860			46,990			47,175			47,452

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