Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Kelly Flynn - Credit Suisse.
Kelly Flynn - Credit Suisse
A question for Cesar. Just can you drill down a little bit more into the operating cash flow and also the free cash flow? I know you said the operating cash flow was down year-over-year due to the timing of federal receipts but what did the, your internal lending program do to weigh on cash flow? And then the CapEx, I know you touched on it. Can you just revisit sort of why the investing activity was such a drain and then finish up with where do you think your operating and free cash flow will fall for the year? Thanks.
Cesar Ribeiro
Certainly. Well obviously the timing is, if you remember back in December ’07 we had about $6 million that was due from the federal government. That cash was received in January of 2008 so impacted the 2008 cash flows. That was not there in 2007. That accounted for most of the impact on the decrease in cash flow from operations. As far as our lending activity it really had nothing, no impact at all on our cash flows. If anything our commitments, our net commitments were down from December and that really had absolutely no impact. Capital expenditures during the period were roughly $2.5 million. I think we previously guided for the year that they would be $2.5 to, I’m sorry 5 to 6% of revenue. And the net cash used in investment activities included $25 million of cash that went out the door in connection with the Baran acquisition.
As far as cash flow for the year, we do not provide guidance on cash flow generated from operations but I would expect it to significantly exceed 2008 cash flows.
Kelly Flynn - Credit Suisse
And then just a follow up on the operating cash flows. What was the deferred revenue change and the impact that had on cash flow? Was that a drag on cash flow or a benefit?
Cesar Ribeiro
No. The deferred revenue went from $38 million, $38.8 million at 12/31/08 to $43.3 million.
Operator
Your next question comes from Gary Bisbee - Barclays Capital.
Gary Bisbee - Barclays Capital
I guess just if I could ask sort of a bigger picture strategic question, you’ve done a couple of acquisitions, over the last two years you’ve gone through re-branding a lot of the schools under the Lincoln name. Are you going to do that with all of the acquisitions and have you given some thought to, I don’t know, maintaining Briarwood or having a different name for your what will eventually be your regionally accredited online school? Or are you comfortable branding it all as Lincoln?
- To read the full transcript on Seeking Alpha, click here »
