Nelnet had another record year in 2014, with earnings per share of $6.12. A byproduct of that financial performance is that the company is now sitting on a considerable amount of cash.
The Lincoln-based education services company saw its cash on hand grow from $63 million at the end of 2013 to a record $130 million at the end of 2014.
"We have a huge cash position that's growing, Nelnet CEO Jeff Noordhoek told attendees Thursday at the company's annual meeting.
Noordhoek said the No. 1 question he gets from shareholders concerns what the company plans to do with that cash.
Nelnet does pay a quarterly dividend of 10 cents per share, and it paid out $18.5 million to shareholders in 2014. It also bought back $15.7 million worth of stock last year.
But Noordhoek said the company likes to have cash and liquid investments available to grow strategically through investments and acquisitions.
Among those investments last year: $44 million to buy RenWeb School Management Software, one of the leading school information systems for private and faith-based schools. Nelnet also spent more than $20 million on real estate investments and $8 million on investments in start-up companies.
Nelnet also last year bought $6.1 billion worth of student loans that were originated under the now-defunct Federal Family Education Loan Program. That was the highest yearly amount it spent on those loans since the program was replaced with the direct program in 2010.
Nelnet already has quickened the pace of its investments this year. It invested $40 million in the first quarter in Hudl, a local company that makes sports video-editing software, and also bought back $7.9 million worth of stock, half of what it repurchased all of last year.
Still, Noordhoek said it will park most of its cash temporarily to wait for the next big opportunity that will help the company grow long-term.
"We're asking our shareholders to be patient," he said.
