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Income Taxes
 12 Months Ended
Dec. 31, 2012
Income Taxes [Abstract]  
Income Taxes
(10) Income Taxes

Income tax expense is as follows:

 

                 
    Year ended December 31,  
    2011     2012  

Federal:

                

Current

   $ 1,395,568     $ 3,136,830  

Deferred

     4,191,095       2,847,899  
   

 

 

    

 

 

  
      5,586,663       5,984,729  

State:

                

Current

     —         358,533  

Deferred

     1,139,068       903,625  
   

 

 

    

 

 

  
      1,139,068       1,262,158  
   

 

 

    

 

 

  
    $ 6,725,731     $ 7,246,887  
   

 

 

    

 

 

  

Income tax expense differs from the amounts that would result from applying the federal statutory rate of 34% to the Company’s income before taxes as follows:

 

                 
    Year ended December 31,  
    2011     2012  

Expected tax expense

   $ 5,720,859     $ 6,214,573  

State income taxes, net of federal benefit

     751,785       833,024  

Change in valuation allowance

     59,553       (10,367 ) 

Non-deductible items

     193,534       209,657  
   

 

 

    

 

 

  
    $ 6,725,731     $ 7,246,887  
   

 

 

    

 

 

  

Temporary differences that give rise to the components of deferred tax assets and liabilities are as follows:

 

                 
    December 31,  
    2011     2012  

Deferred tax assets:

                

Allowance for doubtful accounts

   $ 335,624     $ 406,387  

Other assets

     547,327       817,880  

Accrued expenses

     485,506       519,447  

Other long-term liabilities

     426,203       381,380  

Stock-based compensation

     425,699       347,493  

Net operating losses

     638,858       382,852  
   

 

 

    

 

 

  

Subtotal

     2,859,217       2,855,439  

Valuation allowance

     (653,919 )      (643,552 ) 
   

 

 

    

 

 

  

Total

     2,205,298       2,211,887  
   

 

 

    

 

 

  

Deferred tax liabilities:

                

Prepaid expenses

     (674,314 )      (506,933 ) 

Property and equipment

     (1,561,300 )      (1,427,035 ) 

Intangibles

     (45,126,386 )      (49,308,526 ) 
   

 

 

    

 

 

  

Total

     (47,362,000 )      (51,242,494 ) 
   

 

 

    

 

 

  

Net deferred tax liabilities

   $ (45,156,702 )    $ (49,030,607 ) 
   

 

 

    

 

 

  

 

As of December 31, 2012, the Company has state net operating losses of $8.4 million, which expire in various years through 2030. The valuation allowance relates to net operating losses and unrealized losses on investments which management has determined, more likely than not, that such losses will not be utilized.

As of December 31, 2011 and 2012, the Company does not have any material unrecognized tax benefits and accordingly has not recorded any interest or penalties related to unrecognized tax benefits. The Company and its subsidiaries file a consolidated federal income tax return and various state returns. These returns remain subject to examination by taxing authorities for all years after 2008.