FIRST MARBLEHEAD CORP

CIK:0001262279|SEC Filings

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Revenues:
Tuition payment processing fees	$ 9,132	$ 8,411	$ 27,110	$ 24,567
Administrative and other fees	5,042	4,275	15,245	12,060
Fair value changes to service revenue receivables	571	495	1,770	1,813
Total revenues	14,745	13,181	44,125	38,440
Expenses:
Compensation and benefits	8,738	9,580	24,550	27,877
General and administrative	11,105	11,113	35,472	41,371
Total expenses	19,843	20,693	60,022	69,248
Other income	76	37	492	411
Loss from continuing operations, before income taxes	(5,022)	(7,475)	(15,405)	(30,397)
Income tax expense from continuing operations	289	360	873	878
Net loss from continuing operations	(5,311)	(7,835)	(16,278)	(31,275)
Discontinued operations, net of taxes		(761)		(3,467)
Net loss	$ (5,311)	$ (8,596)	$ (16,278)	$ (34,742)
Net (loss) income per basic and diluted common share:
From continuing operations	$ (0.46)	$ (0.68)	$ (1.40)	$ (2.72)
From discontinued operations		(0.07)		(0.31)
Total basic and diluted net loss per common share	$ (0.46)	$ (0.75)	$ (1.40)	$ (3.03)
Basic and diluted weighted-average common shares outstanding	11,691	11,530	11,654	11,480

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (16,278)	$ (34,742)
Discontinued operations, net of tax		3,467
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	4,192	3,903
Deferred income tax expense	351	372
Stock-based compensation	2,009	3,465
Service revenue receivable distributions	3,205	2,755
Changes in assets/liabilities:
Participation interest accounts	(4,697)	(991)
Fair value increase to service revenue receivables	(1,770)	(1,813)
Other assets	582	(1,236)
Accounts payable, accrued expenses and other liabilities	(4,769)	3,231
Income taxes payable	518	502
Net cash used in operating activities - continuing operations	(16,657)	(21,087)
Net cash provided by operating activities - discontinued operations		25
Net cash used in operating activities	(16,657)	(21,062)
Cash flows from investing activities:
Purchases of short-term investments	(9,704)	(20,272)
Proceeds from maturities of short-term investments	18,028	50,325
Net decrease in restricted cash	30,737	18,666
Net decrease in restricted funds due to clients	(30,681)	(18,646)
Purchases of property and equipment	(1,921)	(1,759)
Net cash provided by investing activities - continuing operations	6,459	28,314
Net cash provided by investing activities - discontinued operations		80,362
Net cash provided by investing activities	6,459	108,676
Cash flows from financing activities:
Payments on capital lease obligations		(2)
Repurchases of common stock	(308)	(522)
Net cash used in financing activities - continuing operations	(308)	(524)
Net cash used in financing activities - discontinued operations		(52,718)
Net cash used in financing activities	(308)	(53,242)
Net (decrease) increase in cash and cash equivalents	(10,506)	34,372
Cash and cash equivalents, beginning of period	47,004	120,349
Cash and cash equivalents, end of period	36,498	154,721
Less: cash and cash equivalents of discontinued operations, end of period		114,063
Cash and cash equivalents of continuing operations, end of period	36,498	40,658
Supplemental disclosure of cash flow information from continuing operations:
Income taxes paid	$ 5	$ 5

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Jun. 30, 2015
ASSETS
Cash and cash equivalents	$ 36,498	$ 47,004
Short-term investments, at cost	7,678	16,002
Restricted cash	66,227	96,964
Deposits for participation interest accounts, at fair value	22,573	17,876
Service revenue receivables, at fair value	10,716	12,151
Goodwill	20,066	20,066
Intangible assets, net	17,723	19,457
Property and equipment, net	4,722	5,259
Other assets	5,445	6,027
Total assets	191,648	240,806
Liabilities:
Restricted funds due to clients	66,173	96,854
Accounts payable, accrued expenses and other liabilities	7,623	12,392
Income taxes payable	27,751	27,233
Net deferred income tax liability	2,478	2,127
Total liabilities	$ 104,025	$ 138,606
Commitments and contingencies:
Stockholders' equity:
Common stock, par value $0.01 per share; 25,000 shares authorized; 12,857 and 12,606 shares issued; 11,705 and 11,534 shares outstanding	$ 128	$ 126
Additional paid-in capital	468,647	466,640
Accumulated deficit	(192,447)	(176,169)
Treasury stock, 1,152 and 1,072 shares held, at cost	(188,705)	(188,397)
Total stockholders' equity	87,623	102,200
Total liabilities and stockholders' equity	$ 191,648	$ 240,806