Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2015 | Jul. 30, 2015 | |
Document Documentand Entity Information [Abstract] | ||
Entity Registrant Name | UNIVERSAL TECHNICAL INSTITUTE INC. | |
Entity Central Index Key | 1,261,654 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 24,138,077 | |
Trading Symbol | UTI |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 10,895 | $ 38,985 |
Restricted cash | 4,548 | 6,544 |
Investments, current portion | 44,494 | 45,906 |
Receivables, net | 12,563 | 12,118 |
Deferred tax assets, net | 4,436 | 7,470 |
Prepaid expenses and other current assets | 17,304 | 16,509 |
Total current assets | 94,240 | 127,532 |
Investments, less current portion | 5,002 | 11,257 |
Property and equipment, net | 116,509 | 106,927 |
Goodwill | 20,579 | 20,579 |
Deferred tax assets, net | 14,773 | 11,923 |
Other assets | 12,127 | 9,851 |
Total assets | 263,230 | 288,069 |
Current liabilities: | ||
Accounts payable and accrued expenses | 42,384 | 38,827 |
Deferred revenue | 30,330 | 46,365 |
Accrued tool sets | 3,709 | 3,806 |
Construction liability, current | 7,488 | 1,252 |
Financing obligation, current | 675 | 5,234 |
Income tax payable | 0 | 4,336 |
Other current liabilities | 2,504 | 2,515 |
Total current liabilities | 87,090 | 102,335 |
Deferred rent liability | 11,252 | 10,323 |
Financing obligation, noncurrent | 31,959 | 32,478 |
Other liabilities | 9,538 | 9,741 |
Total liabilities | $ 139,839 | $ 154,877 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity: | ||
Common stock, $0.0001 par value, 100,000,000 shares authorized, 30,898,656 shares issued and 24,138,077 shares outstanding as of June 30, 2015 and 30,838,460 shares issued and 24,825,881 shares outstanding as of September 30, 2014 | $ 3 | $ 3 |
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; 0 shares issued and outstanding | 0 | 0 |
Paid-in capital | 177,311 | 174,376 |
Treasury stock, at cost, 6,760,579 shares as of June 30, 2015 and 6,012,579 as of September 30, 2014 | (96,888) | (90,769) |
Retained earnings | 42,946 | 49,582 |
Accumulated other comprehensive income | 19 | 0 |
Total shareholders' equity | 123,391 | 133,192 |
Total liabilities and shareholders' equity | $ 263,230 | $ 288,069 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2015 | Sep. 30, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 30,898,656 | 30,838,460 |
Common stock, shares outstanding | 24,138,077 | 24,825,881 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, at cost | 6,012,579 | 6,012,579 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Revenues | $ 85,106 | $ 91,329 | $ 272,021 | $ 283,080 |
Operating expenses: | ||||
Income (loss) from operations | (3,996) | 1,011 | 4,006 | 2,457 |
Educational services and facilities | 47,690 | 48,763 | 143,663 | 150,614 |
Selling, general and administrative | 41,412 | 41,555 | 124,352 | 130,009 |
Total operating expenses | 89,102 | 90,318 | 268,015 | 280,623 |
Other (expense) income: | ||||
Interest expense, net | (484) | (494) | (1,464) | (1,117) |
Equity in earnings of unconsolidated affiliate | 139 | 135 | 393 | 343 |
Other income | 54 | 193 | 299 | 572 |
Total other expense, net | (291) | (166) | (772) | (202) |
Income (loss) before income taxes | (4,287) | 845 | 3,234 | 2,255 |
Income tax expense (benefit) | (1,312) | 479 | 2,560 | 1,802 |
Net income (loss) | (2,975) | 366 | 674 | 453 |
Equity interest in investee's unrealized gains on hedging derivatives, net of taxes | 2 | 0 | 19 | 0 |
Comprehensive income (loss) | $ (2,973) | $ 366 | $ 693 | $ 453 |
Earnings per share: | ||||
Net income (loss) per share - basic | $ (0.12) | $ 0.01 | $ 0.03 | $ 0.02 |
Net income (loss) per share - diluted | $ (0.12) | $ 0.01 | $ 0.03 | $ 0.02 |
Weighted average number of shares outstanding: | ||||
Basic (shares) | 24,138 | 24,618 | 24,477 | 24,641 |
Diluted (shares) | 24,138 | 24,918 | 24,596 | 24,905 |
Cash dividends declared per common share | $ 0.1 | $ 0.10 | $ 0.3 | $ 0.30 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - 9 months ended Jun. 30, 2015 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings |
Treasury Stock, Value, Acquired, Cost Method | $ 6,119 | $ 6,119 | ||||
Beginning Balance, shares at Sep. 30, 2014 | 30,838 | 6,013 | ||||
Beginning Balance at Sep. 30, 2014 | 133,192 | $ 3 | $ 174,376 | $ (90,769) | $ 0 | $ 49,582 |
Net income | 674 | 674 | ||||
Issuance of common stock under employee plans, shares | 65 | |||||
Issuance of common stock under employee plans | 0 | $ 0 | 0 | |||
Shares withheld for payroll taxes, shares | (4) | |||||
Shares withheld for payroll taxes | (39) | $ 0 | (39) | |||
Stock-based compensation | 2,974 | 2,974 | ||||
Treasury Stock, Shares, Acquired | 748 | |||||
Cash dividends declared | (7,310) | $ (7,300) | (7,310) | |||
Ending Balance, shares at Jun. 30, 2015 | 30,899 | 6,761 | ||||
Ending Balance at Jun. 30, 2015 | 123,391 | $ 3 | $ 177,311 | $ (96,888) | $ 19 | $ 42,946 |
Equity interest in investee's unrealized gains on hedging derivatives, net of taxes | $ 19 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Cash Flows [Abstract] | ||
Payments to Acquire Intangible Assets | $ (438) | $ 0 |
Cash flows from operating activities: | ||
Net income | 674 | 453 |
Depreciation and amortization | 13,169 | 14,461 |
Amortization of assets subject to financing obligation | 1,396 | 1,086 |
Amortization of held-to-maturity investments | 1,348 | 1,869 |
Bad debt expense | 749 | 2,869 |
Stock-based compensation | 2,974 | 4,322 |
Excess tax benefit from stock-based compensation | 0 | (7) |
Deferred income taxes | 184 | (2,509) |
Equity in earnings of unconsolidated affiliate | (393) | (343) |
Training equipment credits earned, net | (815) | (892) |
(Gain) loss on disposal of property and equipment | (5) | 385 |
Changes in assets and liabilities: | ||
Restricted cash: Title IV credit balances | 382 | 386 |
Receivables | (869) | 682 |
Prepaid expenses and other current assets | (187) | (1,562) |
Other assets | (807) | (442) |
Accounts payable and accrued expenses | 3,040 | (3,878) |
Deferred revenue | (16,035) | (8,261) |
Income tax payable/receivable | (4,661) | 963 |
Accrued tool sets and other current liabilities | (9) | 662 |
Deferred rent liability | (323) | (1,148) |
Other liabilities | 23 | 746 |
Net cash provided by operating activities | (165) | 9,842 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (21,746) | (7,787) |
Proceeds from disposal of property and equipment | 3 | 40 |
Purchase of investments | (26,061) | (46,333) |
Proceeds received upon maturity of investments | 32,380 | 40,243 |
Return of capital contribution from unconsolidated affiliate | 346 | 238 |
Restricted cash: proprietary loan program | 1,561 | 3,020 |
Net cash used in investing activities | (13,955) | (10,579) |
Cash flows from financing activities: | ||
Payment of cash dividend | (7,310) | (7,393) |
Payments of financing obligation | (502) | (359) |
Payment of payroll taxes on stock-based compensation through shares withheld | (39) | (237) |
Excess tax benefit from stock-based compensation | 0 | 7 |
Purchase of treasury stock | 6,119 | 1,423 |
Net cash used in financing activities | (13,970) | (9,405) |
Net decrease in cash and cash equivalents | (28,090) | (10,142) |
Cash and cash equivalents, beginning of period | 38,985 | 34,596 |
Cash and cash equivalents, end of period | 10,895 | 24,454 |
Supplemental disclosure of cash flow information: | ||
Taxes paid | 7,036 | 3,411 |
Interest Paid | 1,677 | 1,342 |
Training equipment obtained in exchange for services | 483 | 2,107 |
Depreciation on training equipment obtained in exchange for services | 886 | 896 |
Change in accrued capital expenditures during the period | 224 | 305 |
Construction period construction liability - construction in progress | 7,488 | 5,868 |
Capital Lease Obligations Incurred on Buildings During Construction Periods | (4,825) | 4,825 |
Construction liability recognized as financing obligation | $ 0 | $ 33,500 |
Business Description
Business Description | 9 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description | We are the leading provider of postsecondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle and marine technicians as measured by total average undergraduate full-time student enrollment and graduates. We offer undergraduate degree and diploma programs at 11 campuses across the United States under the banner of several well-known brands, including Universal Technical Institute, Motorcycle Mechanics Institute and Marine Mechanics Institute and NASCAR Technical Institute. We also offer manufacturer specific training (MSAT) programs, including student paid electives, at our campuses and manufacturer or dealer sponsored training at certain campuses and dedicated training centers. We work closely with leading original equipment manufacturers (OEMs) in the automotive, diesel, motorcycle and marine industries to understand their needs for qualified service professionals. Revenues generated from our schools consist primarily of tuition and fees paid by students. To pay for a substantial portion of their tuition, the majority of students rely on funds received from federal financial aid programs under Title IV Programs of the Higher Education Act of 1965, as amended (HEA), as well as from various veterans benefits programs. For further discussion, see Note 2 "Summary of Significant Accounting Policies - Concentration of Risk" and Note 19 “Government Regulation and Financial Aid” included in our 2014 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on December 3, 2014. |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 9 Months Ended |
Jun. 30, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, our condensed consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair statement of the results for the interim periods have been included. Operating results for the three months and nine months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending September 30, 2015. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2014 Annual Report on Form 10-K filed with the SEC on December 3, 2014. The unaudited condensed consolidated financial statements include the accounts of Universal Technical Institute, Inc. and our wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Historically, we have calculated income tax expense for interim periods based on estimated annual effective tax rates. These rates have been derived, in part, from expected income before taxes for the year. However, authoritative accounting guidance indicates that companies should not apply the estimated annual tax rate to interim financial results if the estimated annual tax rate is not reliably predictable. We are not able to reasonably estimate the annual effective tax rate for the year ending September 30, 2015 because small fluctuations in our earnings before taxes could result in a material change in the estimated annual effective tax rate based on our current projections. Therefore, for the three months and nine months ended June 30, 2015 , we calculated income taxes using the actual income tax rate for the respective periods. Revision of Previously Issued Financial Statements During the three months ended September 30, 2014, we identified approximately $0.5 million (pre-tax) of retake revenue and $0.2 million (pre-tax) of bad debt expense reduction related to fees for student retakes for the periods from October 1, 2008 through June 30, 2014 which were not recorded. Additionally, we identified approximately $0.2 million (pre-tax) of contract services expense related to the outsourcing of certain financial aid processes that should have been recognized during the quarterly periods from October 1, 2013 through June 30, 2014. We evaluated the impact of the items on prior periods under the materiality guidance and determined that the amounts were not material. We also evaluated the impact of correcting these items through a cumulative adjustment to our 2014 financial statements and concluded that it was appropriate to revise our previously issued financial statements to reflect the cumulative impact of this correction. Additionally, we recorded an immaterial balance sheet correction between cash and restricted cash related to funds held for students from Title IV financial program funds that result in credit balances on student accounts. The following tables present the impact of this revision on our condensed consolidated statement of comprehensive income for the three months and nine months ended June 30, 2014 and our condensed consolidated statement of cash flows for the nine months ended June 30, 2014: Three Months Ended June 30, 2014 As Reported Adjustment As Revised Condensed Consolidated Statement of Comprehensive Income Data: Revenues $ 91,316 $ 13 $ 91,329 Educational services and facilities $ 48,682 $ 81 $ 48,763 Selling, general and administrative $ 41,561 $ (6 ) $ 41,555 Total operating expenses $ 90,243 $ 75 $ 90,318 Income from operations $ 1,073 $ (62 ) $ 1,011 Income before income taxes $ 907 $ (62 ) $ 845 Income tax expense $ 537 $ (58 ) $ 479 Net income $ 370 $ (4 ) $ 366 Net income per share - basic $ 0.02 $ (0.01 ) $ 0.01 Nine Months Ended June 30, 2014 As Reported Adjustment As Revised Condensed Consolidated Statement of Comprehensive Income Data: Revenues $ 283,047 $ 33 $ 283,080 Educational services and facilities $ 150,445 $ 169 $ 150,614 Selling, general and administrative $ 130,030 $ (21 ) $ 130,009 Total operating expenses $ 280,475 $ 148 $ 280,623 Income from operations $ 2,572 $ (115 ) $ 2,457 Income before income taxes $ 2,370 $ (115 ) $ 2,255 Income tax expense $ 1,845 $ (43 ) $ 1,802 Net income $ 525 $ (72 ) $ 453 Net income per share - diluted $ 0.02 $ — $ 0.02 Nine Months Ended June 30, 2014 As Reported Adjustment As Revised Condensed Consolidated Statement of Cash Flows Data: Net income $ 525 $ (72 ) $ 453 Bad debt expense $ 2,891 $ (22 ) $ 2,869 Deferred income taxes $ (2,510 ) $ 1 $ (2,509 ) Restricted cash: Title IV credit balances $ — $ 386 $ 386 Receivables $ 765 $ (83 ) $ 682 Prepaid expenses and other current assets $ (1,731 ) $ 169 $ (1,562 ) Deferred revenue $ (8,311 ) $ 50 $ (8,261 ) Income tax payable (receivable) $ 1,007 $ (44 ) $ 963 Other liabilities $ 745 $ 1 $ 746 Net cash provided by operating activities $ 9,456 $ 386 $ 9,842 Net decrease in cash and cash equivalents $ (10,528 ) $ 386 $ (10,142 ) Cash and cash equivalents, beginning of period $ 35,657 $ (1,061 ) $ 34,596 Cash and cash equivalents, end of period $ 25,129 $ (675 ) $ 24,454 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements (Notes) | 9 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (FASB) issued guidance related to customer’s accounting for fees paid in a cloud computing arrangement. The guidance provides clarification on whether a cloud computing arrangement includes a software license. If an arrangement includes a software license, then the software license element is accounted for consistent with the acquisition of other such licenses. If the arrangement does not include a software license, the arrangement is accounted for as a service contract. Entities have the option of adopting the guidance retrospectively or prospectively. The guidance is effective for annual and interim reporting periods beginning after December 15, 2015 with early adoption permitted. We are currently evaluating both the adoption method and the impact that the update will have on our results of operations, financial condition and the financial statement disclosures. In February 2015, the FASB issued guidance which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. Specifically, the amendments (1) modify the evaluation of whether limited partnerships with similar legal entities are variable interest entities (VIEs) or voting interest entities, (2) eliminate the presumption that a general partner should consolidate a limited partnership, (3) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships and (4) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. Entities have the option of using a full or modified retrospective approach to adopt the guidance. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015 with early adoption permitted. We are currently evaluating both the adoption method and the impact that the update will have on our results of operations, financial condition and the financial statement disclosures. In May 2014, the FASB issued guidance which outlines a single comprehensive revenue model for entities to use in accounting for revenue arising from contracts with customers. The guidance supersedes most current revenue recognition guidance, including industry-specific guidance, and requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. Entities have the option of using either a full retrospective or modified approach to adopt the guidance. In June 2015, the FASB deferred the effective date of the guidance by one year. This guidance is now effective for annual and interim reporting periods beginning after December 15, 2017, and early adoption is now permitted for annual and interim reporting periods beginning after December 15, 2016. We do not plan to early adopt this guidance; accordingly, the standard will be effective for us starting with our fiscal year beginning October 1, 2018. We are currently evaluating the adoption methods and the impact that the update will have on our results of operations, financial condition and financial statement disclosures. |
Postemployment Benefits
Postemployment Benefits | 9 Months Ended |
Jun. 30, 2015 | |
Postemployment Benefits [Abstract] | |
Postemployment Benefits | Postemployment Benefits In October 2014, we completed a restructuring and provided postemployment benefits totaling approximately $1.2 million to approximately 50 impacted employees. Additionally, we periodically enter into agreements which provide postemployment benefits to personnel whose employment is terminated. The postemployment benefit liability, which is included in accounts payable and accrued expenses on the accompanying condensed consolidated balance sheets, is generally paid out ratably over the terms of the agreements, which range from 1 month to 24 months , with the final agreement expiring in May 2016. The postemployment benefit accrual activity for the nine months ended June 30, 2015 was as follows: Liability Balance at Postemployment Cash Paid Other Liability Balance at June 30, 2015 Severance $ 2,150 $ 1,499 $ (2,621 ) $ (178 ) $ 850 Other 16 205 (140 ) (81 ) — Total $ 2,166 $ 1,704 $ (2,761 ) $ (259 ) $ 850 (1) Primarily relates to the expiration of benefits not used within the time offered under the separation agreement and non-cash severance. |
Investments
Investments | 9 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments We invest in pre-funded municipal bonds which are generally secured by escrowed-to-maturity U.S. Treasury notes. Municipal bonds represent debt obligations issued by states, cities, counties and other governmental entities, which earn interest that is exempt from federal income taxes. Additionally, we invest in certificates of deposit issued by financial institutions and corporate bonds from large cap industrial and selected financial companies with a minimum credit rating of A. We have the ability and intention to hold our investments until maturity and therefore classify these investments as held-to-maturity and report them at amortized cost. Amortized cost and fair value for investments classified as held-to-maturity at June 30, 2015 were as follows: Estimated Amortized Gross Unrealized Fair Market Cost Gains Losses Value Due in less than 1 year: Municipal bonds $ 20,710 $ 12 $ — $ 20,722 Corporate bonds 19,172 — (21 ) 19,151 Certificates of deposit 4,612 — — 4,612 Due in 1 - 2 years: Municipal bonds 2,854 3 (2 ) 2,855 Corporate bonds 1,401 1 (2 ) 1,400 Certificates of deposit 747 — — 747 $ 49,496 $ 16 $ (25 ) $ 49,487 Amortized cost and fair value for investments classified as held-to-maturity at September 30, 2014 were as follows: Estimated Amortized Gross Unrealized Fair Market Cost Gains Losses Value Due in less than 1 year: Municipal bonds $ 26,894 $ 20 $ — $ 26,914 Corporate bonds 16,836 1 (24 ) 16,813 Certificates of deposit 2,176 — — 2,176 Due in 1 - 2 years: Municipal bonds 4,230 7 — 4,237 Corporate bonds 4,054 — (13 ) 4,041 Certificates of deposit 2,973 — — 2,973 $ 57,163 $ 28 $ (37 ) $ 57,154 Investments are exposed to various risks, including interest rate, market and credit risk, and as a result, it is possible that changes in the values of these investments may occur and that such changes could affect the amounts reported in the condensed consolidated balance sheets and condensed consolidated statements of comprehensive income. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The accounting framework for determining fair value includes a hierarchy for ranking the quality and reliability of the information used to measure fair value, which enables the reader of the financial statements to assess the inputs used to develop those measurements. The fair value hierarchy consists of three tiers: Level 1, defined as quoted market prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, model-based valuation techniques for which all significant assumptions are observable in the market or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities and Level 3, defined as unobservable inputs that are not corroborated by market data. Any transfers of investments between levels occurs at the end of the reporting period. Assets measured or disclosed at fair value on a recurring basis consisted of the following: Fair Value Measurements Using June 30, 2015 Quoted Prices Significant Significant Money market funds $ 795 $ 795 $ — $ — Corporate bonds 20,551 20,551 — — Municipal bonds 23,577 — 23,577 — Certificates of deposit 5,359 — 5,359 — Total assets at fair value on a recurring basis $ 50,282 $ 21,346 $ 28,936 $ — Fair Value Measurements Using September 30, 2014 Quoted Prices Significant Significant Money market funds $ 29,995 $ 29,995 $ — $ — Corporate bonds 20,854 20,854 — — Municipal bonds 31,151 — 31,151 — Certificates of deposit 5,149 — 5,149 — Total assets at fair value on a recurring basis $ 87,149 $ 50,849 $ 36,300 $ — Our Level 2 investments are valued using readily available pricing sources which utilize market observable inputs, including the current interest rate for similar types of instruments. |
Property and Equipment, net
Property and Equipment, net | 9 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net consisted of the following: Depreciable June 30, September 30, Land — $ 3,189 $ 1,456 Buildings and building improvements 30-35 58,943 50,306 Leasehold improvements 1-28 39,173 38,906 Training equipment 3-10 86,656 85,673 Office and computer equipment 3-10 38,432 37,271 Software developed for internal use 3-5 11,874 11,888 Curriculum development 5 18,716 18,716 Vehicles 5 1,229 1,207 Construction in progress — 15,991 10,746 274,203 256,169 Less accumulated depreciation and amortization (157,694 ) (149,242 ) $ 116,509 $ 106,927 In March 2015, we purchased the majority of the buildings and land for our Houston, Texas campus. The purchase price of $9.4 million , excluding fees, was allocated between buildings ( $7.7 million ) and land ( $1.7 million ) based on the ratio of appraised values. At the time of purchase, we had leasehold improvements related to the purchased building recorded at $5.0 million in historical cost and $4.3 million of accumulated depreciation. The historical cost and accumulated depreciation for these assets were removed from the related classification and the net book value was recorded into building and building improvements. The buildings and building improvements will be depreciated over a useful life of 30 years. Additionally, we entered into amended lease agreements for the buildings and land we did not acquire at our Houston, Texas campus, which extended the lease terms through December 31, 2018 and amended the payment schedules. At June 30, 2015 , construction in progress included $12.4 million related primarily to the design and construction of our Long Beach, California campus. See Note 8 for further discussion. The following amounts, which are included in the above table, represent assets financed by financing obligations: June 30, September 30, Buildings and building improvements $ 33,500 $ 33,500 Construction in progress — 4,638 Assets financed by financing obligations, gross 33,500 38,138 Less accumulated depreciation and amortization (2,947 ) (1,551 ) Assets financed by financing obligations, net $ 30,553 $ 36,587 As previously disclosed, in 2014 we entered into amended lease agreements for certain buildings on our Orlando, Florida campus, which extended the lease terms to August 31, 2022 and modified the scheduled rental payments. Additionally, one of the amendments included a provision which allowed us to expand the square footage at one building by approximately 13,500 square feet. Construction occurred during June through October 2014. For accounting purposes, we were considered the owner during the construction period, and during that period, the existing building and the addition were considered one unit of account. Accordingly, as of September 30, 2014, we recorded the existing building and a corresponding short-term financing obligation of approximately $4.6 million on our condensed consolidated balance sheet. The facility was placed into service effective November 1, 2014. We determined that we do not have continuing involvement after the construction period was complete, and that the lease will be accounted for as an operating lease. Accordingly, the asset and the corresponding short-term financing obligation were derecognized from our December 31, 2014 condensed consolidated balance sheet. |
Build-to-Suit Lease
Build-to-Suit Lease | 9 Months Ended |
Jun. 30, 2015 | |
Leases [Abstract] | |
Build-to-Suit Lease | Build-to-Suit Lease In October 2014, we entered into a 15 -year lease agreement for a build-to-suit facility related to the design and construction of a new campus in Long Beach, California. Under the agreement, we have retained substantially all of the construction risk. Therefore, for accounting purposes, we are considered the owner during the construction period and establish assets and liabilities for the estimated construction costs incurred to the extent we are involved in the construction of structural improvements or take construction risk prior to the lease commencement. Although we are the owner during the construction period, we do not own the underlying land. Therefore, we have an imputed operating lease expense related to our use of the land that will be recognized from the time we entered into the agreement through the initial lease term. |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliate (Notes) | 9 Months Ended |
Jun. 30, 2015 | |
Investment in Unconsolidated Affiliate [Abstract] | |
Equity Method Investments Disclosure [Text Block] | Investment in Unconsolidated Affiliate During the year ended September 30, 2012, we invested $4.0 million to acquire an equity interest of approximately 28% in a joint venture (JV) related to the lease of our Lisle, Illinois campus facility. In connection with this investment, we do not possess a controlling financial interest as we do not hold a majority of the equity interest, nor do we have the power to make major decisions without approval from the other equity member. Therefore, we do not qualify as the primary beneficiary. Accordingly, this investment is accounted for under the equity method of accounting and is included in other assets in our condensed consolidated balance sheet. We recognize our proportionate share of the JV’s net income or loss during each accounting period and any return of capital as a change in our investment. Currently, the JV uses an interest rate cap to manage interest rate risk associated with its floating rate debt. This derivative instrument is designated as a cash flow hedge based on the nature of the risk being hedged. As such, the effective portion of the gain or loss on the derivative is initially reported as a component of the JV’s accumulated other comprehensive income or loss, net of tax, and is subsequently reclassified into earnings when the hedged transaction affects earnings. Any ineffective portion of the gain or loss is recognized in the JV’s current earnings. Due to our equity method investment in the JV, when the JV reports a current year component of other comprehensive income (OCI), we, as an investor, likewise adjust our investment account for the change in investee equity. In addition, we adjust our OCI for our share of the JV’s currently reported OCI item. For the three months and nine months ended June 30, 2015, our share of the JV’s OCI was less than $0.1 million. Investment in unconsolidated affiliate consists of the following: June 30, 2015 September 30, 2014 Carrying Value Ownership Percentage Carrying Value Ownership Percentage Investment in unconsolidated affiliate $ 3,969 27.972 % $ 3,903 27.972 % Investment in unconsolidated affiliate included the following activity during the period: Nine Months Ended June 30, 2015 2014 Balance at beginning of period $ 3,903 $ 4,000 Equity in earnings of unconsolidated affiliate 393 343 Return of capital contribution from unconsolidated affiliate (346 ) (238 ) Equity interest in investee's unrealized gains on hedging derivatives, net of taxes 19 — Balance at end of period $ 3,969 $ 4,105 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 9 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: June 30, 2015 September 30, 2014 Accounts payable $ 14,047 $ 12,990 Accrued compensation and benefits 21,431 17,963 Other accrued expenses 6,906 7,874 $ 42,384 $ 38,827 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal In the ordinary conduct of our business, we are periodically subject to lawsuits, demands in arbitration, investigations, regulatory proceedings or other claims, including, but not limited to, claims involving current or former students, routine employment matters, business disputes and regulatory demands. When we are aware of a claim or potential claim, we assess the likelihood of any loss or exposure. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, we accrue a liability for the loss. When a loss is not both probable and estimable, we do not accrue a liability. Where a loss is not probable but is reasonably possible, including if a loss in excess of an accrued liability is reasonably possible, we determine whether it is possible to provide an estimate of the amount of the loss or range of possible losses for the claim. Because we cannot predict with certainty the ultimate resolution of the legal proceedings (including lawsuits, investigations, regulatory proceedings or claims) asserted against us, it is not currently possible to provide such an estimate. The ultimate outcome of pending legal proceedings to which we are a party may have a material adverse effect on our business, cash flows, results of operations or financial condition. In September 2012, we received a Civil Investigative Demand (CID) from the Attorney General of the Commonwealth of Massachusetts related to a pending investigation in connection with allegations that we caused false claims to be submitted to the Commonwealth relating to student loans, guarantees and grants provided to students at our Norwood, Massachusetts campus. The CID required us to produce documents and provide written testimony regarding a broad range of our business activities from September 2006 to September 2012. We responded timely to the request. The Attorney General made a follow-up request for documents, and we complied with this request in February 2013. In response to a status update request from us, the Attorney General has requested and we have provided additional documents and information related to graduate employment at our Norwood, Massachusetts campus and our policies and practices for determining graduate employment. At this time, we cannot predict the eventual scope, duration, outcome or associated costs or operational impact of this inquiry, and accordingly we have not recorded any liability in the accompanying condensed consolidated financial statements. On July 17, 2015, we received a subpoena from the U.S. Attorney’s Office for the Western District of North Carolina (U.S. Attorney's Office) issued pursuant to the Financial Institutions Reform, Recovery and Enforcement Act of 1989. The subpoena covers a broad range of matters relating to our Mooresville, North Carolina campus operations over the past several years. It also seeks documents and information relating to our compliance with the “90/10 rule,” and other programs and practices. We intend to cooperate with the U.S. Attorney’s Office. At this time, we cannot predict the eventual scope, duration, outcome or associated costs or operational impact of this inquiry, and accordingly we have not recorded any liability in the accompanying condensed consolidated financial statements. Proprietary Loan Program In order to provide funding for students who are not able to fully finance the cost of their education under traditional governmental financial aid programs, commercial loan programs or other alternative sources, we established a private loan program with a bank. Under terms of the proprietary loan program, the bank originates loans for our students who meet our specific credit criteria with the related proceeds used exclusively to fund a portion of their tuition. We then purchase all such loans from the bank at least monthly and assume all of the related credit risk. The loans bear interest at market rates; however, principal and interest payments are not required until six months after the student completes or withdraws from his or her program. After the deferral period, monthly principal and interest payments are required over the related term of the loan. The bank provides these services in exchange for a fee at a percentage of the principal balance of each loan and related fees. Under the terms of the related agreement, we transfer funds for loan purchases to a deposit account with the bank in advance of the bank funding the loan, which secures our related loan purchase obligation. Such funds are classified as restricted cash in our condensed consolidated balance sheet. In substance, we provide the students who participate in this program with extended payment terms for a portion of their tuition and as a result, we account for the underlying transactions in accordance with our tuition revenue recognition policy. However, due to the nature of the program coupled with the extended payment terms required under the student loan agreements, collectability is not reasonably assured. Accordingly, we recognize tuition and loan origination fees financed by the loan and any related interest income required under the loan when such amounts are collected. All related expenses incurred with the bank or other service providers are expensed as incurred within educational services and facilities expense and were approximately $0.3 million for each of the three months ended June 30, 2015 and 2014, and $1.1 million for each of the nine months ended June 30, 2015 and 2014. Since loan collectability is not reasonably assured, the loans and related deferred tuition revenue are not recognized in our condensed consolidated balance sheets. The following table summarizes the impact of the proprietary loan program on our tuition revenue and interest income during the period as well as on a cumulative basis at the end of each period in our condensed consolidated statements of comprehensive income. Tuition revenue and interest income excluded represents amounts which would have been recognized during the period had collectability of the related amounts been assured. Amounts collected and recognized represent actual cash receipts during the period. Amounts written off represent amounts which have been turned over to third party collectors; such amounts are not included within bad debt expense in our condensed consolidated statements of comprehensive income. Three Months Ended June 30, Nine Months Ended June 30, Inception 2015 2014 2015 2014 Tuition and interest income excluded $ 5,940 $ 6,289 $ 18,717 $ 20,542 $ 114,618 Amounts collected and recognized (1,506 ) (951 ) (4,017 ) (2,497 ) (12,496 ) Amounts written off (2,456 ) (2,173 ) (8,704 ) (6,436 ) (40,259 ) Net amount excluded during the period $ 1,978 $ 3,165 $ 5,996 $ 11,609 $ 61,863 As of June 30, 2015 , we had committed to provide loans to our students for approximately $116.4 million since inception. The following table summarizes the activity related to the balances outstanding under our proprietary loan program, including loans outstanding, interest and origination fees, which are not recognized in our condensed consolidated balance sheets: Nine Months Ended June 30, 2015 2014 Balance at beginning of period $ 70,759 $ 59,767 Loans extended 14,326 18,390 Interest accrued 2,233 2,134 Amounts collected and recognized (4,017 ) (2,497 ) Amounts written off (8,704 ) (6,436 ) Balance at end of period $ 74,597 $ 71,358 Licensing Agreements In April 2015, we entered into a licensing agreement that gives us the right to use certain trademarks in connection with the operation of our campuses and courses. The agreement has an initial term of four years, with options for three annual renewals totaling a seven year term. The maximum license fee over seven years is $2.3 million . |
Common Shareholders' Equity
Common Shareholders' Equity | 9 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Common Shareholders’ Equity | Common Shareholders’ Equity Common Stock Holders of our common stock are entitled to receive dividends when and as declared by our Board of Directors and have the right to one vote per share on all matters requiring shareholder approval. On December 19, 2014, March 31, 2015 and June 30, 2015, we paid cash dividends of $0.10 per share to common stockholders of record as of December 8, 2014, March 20, 2015 and June 19, 2015, respectively, totaling approximately $7.3 million . Share Repurchase Program On December 20, 2011, our Board of Directors authorized the repurchase of up to $25.0 million of our common stock in the open market or through privately negotiated transactions. The timing and actual number of shares purchased will depend on a variety of factors such as price, corporate and regulatory requirements and prevailing market conditions. We may terminate or limit the share repurchase program at any time without prior notice. We did not repurchase shares during the three months ended June 30, 2015. During the nine months ended June 30, 2015, we purchased 748,000 shares at an average price per share of $8.15 and a total cost of approximately $6.1 million . As of June 30, 2015 , we have purchased 1,573,252 shares at an average price per share of $9.38 and a total cost of approximately $14.8 million under this program. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding for the period. Diluted net income per share reflects the assumed conversion of all dilutive securities, if any. For the three months ended June 30, 2014, 394,687 shares which could be issued under outstanding stock-based grants, were not included in the determination of our diluted shares outstanding as they were anti-dilutive. For the nine months ended June 30, 2015 and 2014 , 527,189 shares and 494,372 shares, respectively, which could be issued under outstanding stock-based grants, were not included in the determination of our diluted shares outstanding as they were anti-dilutive. For the three months ended June 30, 2015, diluted loss per share equaled basic loss per share as the assumed activity related to outstanding stock-based grants would have an anti-dilutive effect. The calculation of the weighted average number of shares outstanding used in computing basic and diluted net income per share was as follows: Three Months Ended June 30, Nine Months Ended 2015 2014 2015 2014 Weighted average number of shares (In thousands) Basic shares outstanding 24,138 24,618 24,477 24,641 Dilutive effect related to employee stock plans — 300 119 264 Diluted shares outstanding 24,138 24,918 24,596 24,905 |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our principal business is providing postsecondary education. We also provide manufacturer-specific training and these operations are managed separately from our campus operations. These operations do not currently meet the quantitative criteria for segments and therefore are reflected in the Other category. Corporate expenses are allocated to Postsecondary Education and the Other category based on compensation expense. Depreciation and amortization includes amortization of assets subject to financing obligation. Summary information by reportable segment is as follows: Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Revenues Postsecondary education $ 82,098 $ 88,784 $ 263,101 $ 274,988 Other 3,008 2,545 8,920 8,092 Consolidated $ 85,106 $ 91,329 $ 272,021 $ 283,080 Income (loss) from operations Postsecondary education $ (3,296 ) $ 1,907 $ 6,055 $ 4,524 Other (700 ) (896 ) (2,049 ) (2,067 ) Consolidated $ (3,996 ) $ 1,011 $ 4,006 $ 2,457 Depreciation and amortization Postsecondary education $ 4,678 $ 4,983 $ 14,327 $ 15,276 Other 97 83 238 271 Consolidated $ 4,775 $ 5,066 $ 14,565 $ 15,547 Net income (loss) Postsecondary education $ (2,626 ) $ 826 $ 1,636 $ 1,432 Other (349 ) (460 ) (962 ) (979 ) Consolidated $ (2,975 ) $ 366 $ 674 $ 453 June 30, 2015 September 30, 2014 Goodwill Postsecondary education $ 20,579 $ 20,579 Other — — Consolidated $ 20,579 $ 20,579 Total assets Postsecondary education $ 256,426 $ 282,501 Other 6,804 5,568 Consolidated $ 263,230 $ 288,069 |
Government Regulation and Finan
Government Regulation and Financial Aid (Notes) | 9 Months Ended |
Jun. 30, 2015 | |
Risks and Uncertainties [Abstract] | |
Government Regulation And Financial Aid [Text Block] | Government Regulation and Financial Aid In April 2015, ED commenced an ordinary course program review of our administration of the Title IV programs in which we participate for our Avondale, Arizona campus and additional locations of that campus. The site visit related to the review was completed the week of April 20, 2015 and covered the 2013-2014 and 2014-2015 award years. We have not received the initial report from ED in the initially anticipated time frame and have had no further communications from ED. On October 31, 2014, ED published final regulations, including new metrics to evaluate whether a program of study prepares students for gainful employment in a recognized occupation. As disclosed in our 2014 Annual Report on Form 10-K filed with the SEC on December 3, 2014, the Association of Private Sector Colleges and Universities, a trade group representing 1,400 for-profit colleges, filed a lawsuit in the U.S. District Court for the District of Columbia to stop the rules from taking effect. However, on June 23, 2015, the court ruled in favor of ED, allowing the regulations to become effective on July 1, 2015. The gainful employment metrics use debt and earnings data that institutions report on former students to determine student debt as a percentage of both annual and discretionary earnings (DE metrics), with outcomes including pass, zone and fail. A program failing both the annual and discretionary DE metrics for two out of any three consecutive years will lose eligibility to participate in the Title IV programs for a period of three years. A program will also lose eligibility if it fails to pass either DE metric (that is, it receives only failing or zone scores) for four consecutive years. Institutions will also be limited in their ability to add programs similar to the ineligible programs. ED has stated that the first year of official gainful employment rates and their associated program outcomes will be issued during calendar year 2016 and annually thereafter, but the precise timing of their issuance is unknown. The earliest that any gainful employment program could lose eligibility is 2017. For further discussion, see “Business - Regulatory Environment - Regulation of Federal Student Financial Aid Programs” included in in our 2014 Annual Report on Form 10-K filed with the SEC on December 3, 2014. |
Purchase transaction (Notes)
Purchase transaction (Notes) | 9 Months Ended |
Jun. 30, 2015 | |
Purchase transaction table [Abstract] | |
Asset acquisition [Text Block] | Purchase Transaction In April 2015, we entered into an agreement with Roush & Yates Racing Engines, LLC (Roush Yates) to purchase performance engine machining and building curriculum, related materials and guides and the name Roush Yates School of Technology and variants thereof. The purchase price for the agreement is $0.3 million upon execution with an additional $0.5 million payable if certain co-development milestones are met. Additionally, there is an earn-out fee over the final four years of a seven-year term if revenues exceed a certain threshold. Under the agreement, Roush Yates will donate consumable raw materials to support courses under the curriculum, assist us in modifying the existing curriculum and assist us in locating and training instructors. The agreement also includes a two-year non-compete clause following the seven-year term of the agreement. We also entered into a commercial lease agreement and an equipment lease agreement. The commercial lease is for approximately 8,000 square feet within Roush Yates' existing space and has an initial four-year term commencing on October 28, 2015, with annual renewals following the initial term. The total commercial lease payment over the four year term is approximately $0.2 million . The equipment lease has a four year term, but may be extended beyond such expiration by mutual negotiation. We have the option to purchase all or any portion of the leased equipment at any time during the term at a purchase price equal to the then fair market value. The total lease payment over four years is approximately $0.2 million . We have access to the leased space and equipment immediately. We recorded the following assets on our condensed consolidated balance sheet as of June 30, 2015 related to the purchase transaction: Prepaid expenses and other current assets $ 434 Property and equipment, net 137 Other assets 1,473 Total assets $ 2,044 Additionally, we recorded a total of approximately $1.5 million in accounts payable and accrued expenses and other liabilities on our condensed consolidated balance sheet as of June 30, 2015 representing the present value of payments not yet made. |
Basis of Presentation Schedule
Basis of Presentation Schedule of Error Corrections and Prior Period Adjustments (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The following tables present the impact of this revision on our condensed consolidated statement of comprehensive income for the three months and nine months ended June 30, 2014 and our condensed consolidated statement of cash flows for the nine months ended June 30, 2014: Three Months Ended June 30, 2014 As Reported Adjustment As Revised Condensed Consolidated Statement of Comprehensive Income Data: Revenues $ 91,316 $ 13 $ 91,329 Educational services and facilities $ 48,682 $ 81 $ 48,763 Selling, general and administrative $ 41,561 $ (6 ) $ 41,555 Total operating expenses $ 90,243 $ 75 $ 90,318 Income from operations $ 1,073 $ (62 ) $ 1,011 Income before income taxes $ 907 $ (62 ) $ 845 Income tax expense $ 537 $ (58 ) $ 479 Net income $ 370 $ (4 ) $ 366 Net income per share - basic $ 0.02 $ (0.01 ) $ 0.01 Nine Months Ended June 30, 2014 As Reported Adjustment As Revised Condensed Consolidated Statement of Comprehensive Income Data: Revenues $ 283,047 $ 33 $ 283,080 Educational services and facilities $ 150,445 $ 169 $ 150,614 Selling, general and administrative $ 130,030 $ (21 ) $ 130,009 Total operating expenses $ 280,475 $ 148 $ 280,623 Income from operations $ 2,572 $ (115 ) $ 2,457 Income before income taxes $ 2,370 $ (115 ) $ 2,255 Income tax expense $ 1,845 $ (43 ) $ 1,802 Net income $ 525 $ (72 ) $ 453 Net income per share - diluted $ 0.02 $ — $ 0.02 Nine Months Ended June 30, 2014 As Reported Adjustment As Revised Condensed Consolidated Statement of Cash Flows Data: Net income $ 525 $ (72 ) $ 453 Bad debt expense $ 2,891 $ (22 ) $ 2,869 Deferred income taxes $ (2,510 ) $ 1 $ (2,509 ) Restricted cash: Title IV credit balances $ — $ 386 $ 386 Receivables $ 765 $ (83 ) $ 682 Prepaid expenses and other current assets $ (1,731 ) $ 169 $ (1,562 ) Deferred revenue $ (8,311 ) $ 50 $ (8,261 ) Income tax payable (receivable) $ 1,007 $ (44 ) $ 963 Other liabilities $ 745 $ 1 $ 746 Net cash provided by operating activities $ 9,456 $ 386 $ 9,842 Net decrease in cash and cash equivalents $ (10,528 ) $ 386 $ (10,142 ) Cash and cash equivalents, beginning of period $ 35,657 $ (1,061 ) $ 34,596 Cash and cash equivalents, end of period $ 25,129 $ (675 ) $ 24,454 |
Postemployment Benefits (Tables
Postemployment Benefits (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Postemployment Benefits [Abstract] | |
Postemployment Activity | The postemployment benefit accrual activity for the nine months ended June 30, 2015 was as follows: Liability Balance at Postemployment Cash Paid Other Liability Balance at June 30, 2015 Severance $ 2,150 $ 1,499 $ (2,621 ) $ (178 ) $ 850 Other 16 205 (140 ) (81 ) — Total $ 2,166 $ 1,704 $ (2,761 ) $ (259 ) $ 850 (1) Primarily relates to the expiration of benefits not used within the time offered under the separation agreement and non-cash severance. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Value of Held to Maturity Investments | Amortized cost and fair value for investments classified as held-to-maturity at June 30, 2015 were as follows: Estimated Amortized Gross Unrealized Fair Market Cost Gains Losses Value Due in less than 1 year: Municipal bonds $ 20,710 $ 12 $ — $ 20,722 Corporate bonds 19,172 — (21 ) 19,151 Certificates of deposit 4,612 — — 4,612 Due in 1 - 2 years: Municipal bonds 2,854 3 (2 ) 2,855 Corporate bonds 1,401 1 (2 ) 1,400 Certificates of deposit 747 — — 747 $ 49,496 $ 16 $ (25 ) $ 49,487 Amortized cost and fair value for investments classified as held-to-maturity at September 30, 2014 were as follows: Estimated Amortized Gross Unrealized Fair Market Cost Gains Losses Value Due in less than 1 year: Municipal bonds $ 26,894 $ 20 $ — $ 26,914 Corporate bonds 16,836 1 (24 ) 16,813 Certificates of deposit 2,176 — — 2,176 Due in 1 - 2 years: Municipal bonds 4,230 7 — 4,237 Corporate bonds 4,054 — (13 ) 4,041 Certificates of deposit 2,973 — — 2,973 $ 57,163 $ 28 $ (37 ) $ 57,154 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value of Our Money Market Mutual Funds, Municipal Bonds and Certificates of Deposit | Assets measured or disclosed at fair value on a recurring basis consisted of the following: Fair Value Measurements Using June 30, 2015 Quoted Prices Significant Significant Money market funds $ 795 $ 795 $ — $ — Corporate bonds 20,551 20,551 — — Municipal bonds 23,577 — 23,577 — Certificates of deposit 5,359 — 5,359 — Total assets at fair value on a recurring basis $ 50,282 $ 21,346 $ 28,936 $ — Fair Value Measurements Using September 30, 2014 Quoted Prices Significant Significant Money market funds $ 29,995 $ 29,995 $ — $ — Corporate bonds 20,854 20,854 — — Municipal bonds 31,151 — 31,151 — Certificates of deposit 5,149 — 5,149 — Total assets at fair value on a recurring basis $ 87,149 $ 50,849 $ 36,300 $ — |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Property and equipment, net consisted of the following: Depreciable June 30, September 30, Land — $ 3,189 $ 1,456 Buildings and building improvements 30-35 58,943 50,306 Leasehold improvements 1-28 39,173 38,906 Training equipment 3-10 86,656 85,673 Office and computer equipment 3-10 38,432 37,271 Software developed for internal use 3-5 11,874 11,888 Curriculum development 5 18,716 18,716 Vehicles 5 1,229 1,207 Construction in progress — 15,991 10,746 274,203 256,169 Less accumulated depreciation and amortization (157,694 ) (149,242 ) $ 116,509 $ 106,927 |
Assets financed by financing obligations | The following amounts, which are included in the above table, represent assets financed by financing obligations: June 30, September 30, Buildings and building improvements $ 33,500 $ 33,500 Construction in progress — 4,638 Assets financed by financing obligations, gross 33,500 38,138 Less accumulated depreciation and amortization (2,947 ) (1,551 ) Assets financed by financing obligations, net $ 30,553 $ 36,587 |
Investment in Unconsolidated 28
Investment in Unconsolidated Affiliate (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Investment in Unconsolidated Affiliate [Abstract] | |
Equity Method Investments [Table Text Block] | Investment in unconsolidated affiliate consists of the following: June 30, 2015 September 30, 2014 Carrying Value Ownership Percentage Carrying Value Ownership Percentage Investment in unconsolidated affiliate $ 3,969 27.972 % $ 3,903 27.972 % Investment in unconsolidated affiliate included the following activity during the period: Nine Months Ended June 30, 2015 2014 Balance at beginning of period $ 3,903 $ 4,000 Equity in earnings of unconsolidated affiliate 393 343 Return of capital contribution from unconsolidated affiliate (346 ) (238 ) Equity interest in investee's unrealized gains on hedging derivatives, net of taxes 19 — Balance at end of period $ 3,969 $ 4,105 |
Accounts Payable and Accrued 29
Accounts Payable and Accrued Expenses (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accounts payable and accrued expenses | Accounts payable and accrued expenses consisted of the following: June 30, 2015 September 30, 2014 Accounts payable $ 14,047 $ 12,990 Accrued compensation and benefits 21,431 17,963 Other accrued expenses 6,906 7,874 $ 42,384 $ 38,827 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Impact Of Proprietary Loan Program On Our Tuition Revenue And Interest Income Table [Text Block] | The following table summarizes the activity related to the balances outstanding under our proprietary loan program, including loans outstanding, interest and origination fees, which are not recognized in our condensed consolidated balance sheets: Nine Months Ended June 30, 2015 2014 Balance at beginning of period $ 70,759 $ 59,767 Loans extended 14,326 18,390 Interest accrued 2,233 2,134 Amounts collected and recognized (4,017 ) (2,497 ) Amounts written off (8,704 ) (6,436 ) Balance at end of period $ 74,597 $ 71,358 |
Activity Related To Balances Outstanding Under Our Proprietary Loan Program Table [Text Block] | The following table summarizes the impact of the proprietary loan program on our tuition revenue and interest income during the period as well as on a cumulative basis at the end of each period in our condensed consolidated statements of comprehensive income. Tuition revenue and interest income excluded represents amounts which would have been recognized during the period had collectability of the related amounts been assured. Amounts collected and recognized represent actual cash receipts during the period. Amounts written off represent amounts which have been turned over to third party collectors; such amounts are not included within bad debt expense in our condensed consolidated statements of comprehensive income. Three Months Ended June 30, Nine Months Ended June 30, Inception 2015 2014 2015 2014 Tuition and interest income excluded $ 5,940 $ 6,289 $ 18,717 $ 20,542 $ 114,618 Amounts collected and recognized (1,506 ) (951 ) (4,017 ) (2,497 ) (12,496 ) Amounts written off (2,456 ) (2,173 ) (8,704 ) (6,436 ) (40,259 ) Net amount excluded during the period $ 1,978 $ 3,165 $ 5,996 $ 11,609 $ 61,863 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Weighted Average Number of Shares Outstanding Used in Computing Basic and Diluted Net Income Loss Per Share | The calculation of the weighted average number of shares outstanding used in computing basic and diluted net income per share was as follows: Three Months Ended June 30, Nine Months Ended 2015 2014 2015 2014 Weighted average number of shares (In thousands) Basic shares outstanding 24,138 24,618 24,477 24,641 Dilutive effect related to employee stock plans — 300 119 264 Diluted shares outstanding 24,138 24,918 24,596 24,905 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Summary of Information by Reportable Segment | Summary information by reportable segment is as follows: Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Revenues Postsecondary education $ 82,098 $ 88,784 $ 263,101 $ 274,988 Other 3,008 2,545 8,920 8,092 Consolidated $ 85,106 $ 91,329 $ 272,021 $ 283,080 Income (loss) from operations Postsecondary education $ (3,296 ) $ 1,907 $ 6,055 $ 4,524 Other (700 ) (896 ) (2,049 ) (2,067 ) Consolidated $ (3,996 ) $ 1,011 $ 4,006 $ 2,457 Depreciation and amortization Postsecondary education $ 4,678 $ 4,983 $ 14,327 $ 15,276 Other 97 83 238 271 Consolidated $ 4,775 $ 5,066 $ 14,565 $ 15,547 Net income (loss) Postsecondary education $ (2,626 ) $ 826 $ 1,636 $ 1,432 Other (349 ) (460 ) (962 ) (979 ) Consolidated $ (2,975 ) $ 366 $ 674 $ 453 June 30, 2015 September 30, 2014 Goodwill Postsecondary education $ 20,579 $ 20,579 Other — — Consolidated $ 20,579 $ 20,579 Total assets Postsecondary education $ 256,426 $ 282,501 Other 6,804 5,568 Consolidated $ 263,230 $ 288,069 |
Purchase transaction (Tables)
Purchase transaction (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Purchase transaction table [Abstract] | |
Asset Acquisition [Table Text Block] | We recorded the following assets on our condensed consolidated balance sheet as of June 30, 2015 related to the purchase transaction: Prepaid expenses and other current assets $ 434 Property and equipment, net 137 Other assets 1,473 Total assets $ 2,044 Additionally, we recorded a total of approximately $1.5 million in accounts payable and accrued expenses and other liabilities on our condensed consolidated balance sheet as of June 30, 2015 representing the present value of payments not yet made. |
Business Description (Narrative
Business Description (Narrative) (Details) | Jun. 30, 2015Campus |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of campuses through which undergraduate degree, diploma and certificate programs are offered | 11 |
Basis of Presentation Narrative
Basis of Presentation Narrative (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2014USD ($) | |
Retake Revenue Correction [Member] | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 0.5 |
Bad Debt Expense Correction [Member] | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | 0.2 |
Contract Services Expense Correction [Member] | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 0.2 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | $ 85,106 | $ 91,329 | $ 272,021 | $ 283,080 | |
Educational services And facilities | 47,690 | 48,763 | 143,663 | 150,614 | |
Selling, general and administrative | 41,412 | 41,555 | 124,352 | 130,009 | |
Total operating expenses | 89,102 | 90,318 | 268,015 | 280,623 | |
Income from operations | (3,996) | 1,011 | 4,006 | 2,457 | |
Other income | 54 | 193 | 299 | 572 | |
Total other income | (291) | (166) | (772) | (202) | |
Income before income taxes | (4,287) | 845 | 3,234 | 2,255 | |
Income tax expense (benefit) | (1,312) | 479 | 2,560 | 1,802 | |
Net income (loss) | $ (2,975) | $ 366 | 674 | 453 | |
Bad debt expense | 749 | 2,869 | |||
Deferred income taxes | 184 | (2,509) | |||
Restricted cash: Title IV credit balances | 386 | ||||
Receivables | (869) | 682 | |||
Prepaid expenses and other current assets | (187) | (1,562) | |||
Other assets | (807) | (442) | |||
Deferred revenue | (16,035) | (8,261) | |||
Income tax payable/receivable | (4,661) | 963 | |||
Other liabilities | 23 | 746 | |||
Accrued tool sets and other current liabilities | (9) | 662 | |||
Deferred rent liability | (323) | (1,148) | |||
Net cash provided by operating activities | (165) | 9,842 | |||
Net decrease in cash and cash equivalents | (10,142) | ||||
Cash and cash equivalents, beginning of period | $ 24,454 | $ 38,985 | $ 34,596 | ||
Net income per share - basic | $ (0.12) | $ 0.01 | $ 0.03 | $ 0.02 | |
Net income per share - diluted | $ (0.12) | $ 0.01 | $ 0.03 | $ 0.02 | |
Scenario, Previously Reported [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | $ 91,316 | $ 283,047 | |||
Educational services And facilities | 48,682 | 150,445 | |||
Selling, general and administrative | 41,561 | 130,030 | |||
Total operating expenses | 90,243 | 280,475 | |||
Income from operations | 1,073 | 2,572 | |||
Income before income taxes | 907 | 2,370 | |||
Income tax expense (benefit) | 537 | 1,845 | |||
Net income (loss) | $ 370 | 525 | |||
Bad debt expense | 2,891 | ||||
Deferred income taxes | (2,510) | ||||
Restricted cash: Title IV credit balances | 0 | ||||
Receivables | (765) | ||||
Prepaid expenses and other current assets | 1,731 | ||||
Deferred revenue | (8,311) | ||||
Income tax payable/receivable | 1,007 | ||||
Other liabilities | 745 | ||||
Net cash provided by operating activities | 9,456 | ||||
Net decrease in cash and cash equivalents | (10,528) | ||||
Cash and cash equivalents, beginning of period | 25,129 | 35,657 | |||
Net income per share - basic | $ 0.02 | ||||
Net income per share - diluted | $ 0.02 | ||||
Restatement Adjustment [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Revenues | $ 13 | 33 | |||
Educational services And facilities | 81 | 169 | |||
Selling, general and administrative | (6) | (21) | |||
Total operating expenses | 75 | 148 | |||
Income from operations | (62) | (115) | |||
Income before income taxes | (62) | (115) | |||
Income tax expense (benefit) | (58) | (43) | |||
Net income (loss) | $ (4) | (72) | |||
Bad debt expense | (22) | ||||
Deferred income taxes | 1 | ||||
Restricted cash: Title IV credit balances | 386 | ||||
Receivables | 83 | ||||
Prepaid expenses and other current assets | (169) | ||||
Deferred revenue | 50 | ||||
Income tax payable/receivable | (44) | ||||
Other liabilities | 1 | ||||
Net cash provided by operating activities | 386 | ||||
Net decrease in cash and cash equivalents | 386 | ||||
Cash and cash equivalents, beginning of period | $ (675) | $ (1,061) | |||
Net income per share - basic | $ (0.01) | ||||
Net income per share - diluted | $ 0 |
Postemployment Benefits (Narrat
Postemployment Benefits (Narrative) (Details) $ in Thousands | 1 Months Ended | 9 Months Ended |
Oct. 31, 2014USD ($)Employee | Jun. 30, 2015USD ($) | |
Schedule of Postemployment Benefits [Line Items] | ||
Number of impacted employees due to reduction in workforce | Employee | 50 | |
Expiration Period Of Postemployment Benefits Agreements | 2016-05 | |
Postemployment benefit expense | $ 1,200 | $ 1,704 |
Minimum [Member] | ||
Schedule of Postemployment Benefits [Line Items] | ||
Period for payment of post employment benefit | 1 month | |
Maximum [Member] | ||
Schedule of Postemployment Benefits [Line Items] | ||
Period for payment of post employment benefit | 24 months | |
Employee Severance [Member] | ||
Schedule of Postemployment Benefits [Line Items] | ||
Postemployment benefit expense | $ 1,499 |
Postemployment Benefits (Postem
Postemployment Benefits (Postemployment Activity) (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended |
Oct. 31, 2014 | Jun. 30, 2015 | |
Postemployment Benefits Disclosure [Line Items] | ||
Liability Beginning Balance | $ 2,166 | $ 2,166 |
Postemployment Benefit Charges | 1,200 | 1,704 |
Cash Paid | (2,761) | |
Other Non-cash | (259) | |
Liability Ending Balance | 850 | |
Severance | ||
Postemployment Benefits Disclosure [Line Items] | ||
Liability Beginning Balance | 2,150 | 2,150 |
Postemployment Benefit Charges | 1,499 | |
Cash Paid | (2,621) | |
Other Non-cash | (178) | |
Liability Ending Balance | 850 | |
Other | ||
Postemployment Benefits Disclosure [Line Items] | ||
Liability Beginning Balance | $ 16 | 16 |
Postemployment Benefit Charges | 205 | |
Cash Paid | (140) | |
Other Non-cash | (81) | |
Liability Ending Balance | $ 0 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Held to Maturity Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 49,496 | $ 57,163 |
Gross Unrealized Gains | 16 | 28 |
Gross Unrealized Losses | (25) | (37) |
Estimated Fair Market Value | 49,487 | 57,154 |
Municipal bonds, due in less than 1 year | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 20,710 | 26,894 |
Gross Unrealized Gains | 12 | 20 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Market Value | 20,722 | 26,914 |
Corporate bonds, due in less than 1 year | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 19,172 | 16,836 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (21) | (24) |
Estimated Fair Market Value | 19,151 | 16,813 |
Certificates of deposit, due in less than 1 year | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 4,612 | 2,176 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Market Value | 4,612 | 2,176 |
Municipal bonds, due in 1 - 2 years | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,854 | 4,230 |
Gross Unrealized Gains | 3 | 7 |
Gross Unrealized Losses | (2) | 0 |
Estimated Fair Market Value | 2,855 | 4,237 |
Corporate bonds due In 1 - 2 years | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 1,401 | 4,054 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | (2) | (13) |
Estimated Fair Market Value | 1,400 | 4,041 |
Certificates of deposit, due in 1- 2 years | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 747 | 2,973 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Market Value | $ 747 | $ 2,973 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured at Fair Value on a Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | $ 50,282 | $ 87,149 |
Estimate of Fair Value Measurement [Member] | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 795 | 29,995 |
Estimate of Fair Value Measurement [Member] | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 20,551 | 20,854 |
Estimate of Fair Value Measurement [Member] | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 23,577 | 31,151 |
Estimate of Fair Value Measurement [Member] | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 5,359 | 5,149 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 21,346 | 50,849 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 795 | 29,995 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 20,551 | 20,854 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 28,936 | 36,300 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 23,577 | 31,151 |
Significant Other Observable Inputs (Level 2) | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 5,359 | 5,149 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | $ 0 | $ 0 |
Property and Equipment, net (Na
Property and Equipment, net (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Mar. 31, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Financing obligation, current | $ 675 | $ 5,234 | |
Buildings and building improvements | $ 33,500 | 38,138 | |
Houston, Texas campus [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Additions | $ 9,400 | ||
Lease Expiration Date | Dec. 31, 2018 | ||
Long Beach, California campus [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Construction in Progress, Gross | $ 12,400 | ||
Orlando Florida Campus | |||
Property, Plant and Equipment [Line Items] | |||
Lease Expiration Date | Aug. 31, 2022 | ||
Buildings and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Buildings and building improvements | $ 33,500 | 33,500 | |
Buildings and Building Improvements [Member] | Houston, Texas campus [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Additions | 7,700 | ||
Property, Plant and Equipment, Transfers and Changes | 5,000 | ||
Accumulated Depreciation, Depletion and Amortization, Reclassifications of Property, Plant and Equipment | $ 4,300 | ||
Depreciable Lives | 30 years | ||
Buildings and Building Improvements [Member] | Orlando Florida Campus | |||
Property, Plant and Equipment [Line Items] | |||
Financing obligation, current | 4,600 | ||
Buildings and building improvements | $ 4,600 | ||
Land [Member] | Houston, Texas campus [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Additions | $ 1,700 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Mar. 31, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 274,203 | $ 256,169 | |
Less accumulated depreciation and amortization | (157,694) | (149,242) | |
Property and equipment, net | 116,509 | 106,927 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,189 | 1,456 | |
Buildings and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 58,943 | 50,306 | |
Buildings and Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives | 30 years | ||
Buildings and Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives | 35 years | ||
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 39,173 | 38,906 | |
Leasehold improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives | 1 year | ||
Leasehold improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives | 28 years | ||
Training equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 86,656 | 85,673 | |
Training equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives | 3 years | ||
Training equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives | 10 years | ||
Office and computer equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 38,432 | 37,271 | |
Office and computer equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives | 3 years | ||
Office and computer equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives | 10 years | ||
Software developed for internal use [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 11,874 | 11,888 | |
Software developed for internal use [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives | 3 years | ||
Software developed for internal use [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives | 5 years | ||
Curriculum development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives | 5 years | ||
Property and equipment, gross | $ 18,716 | 18,716 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives | 5 years | ||
Property and equipment, gross | $ 1,229 | 1,207 | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 15,991 | $ 10,746 | |
Houston, Texas campus [Member] | Buildings and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives | 30 years |
Property and Equipment, net Ass
Property and Equipment, net Assets Financed by Financing Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Assets financed by financing obligations [Line Items] | ||
Assets financed by financing obligations, gross | $ 33,500 | $ 38,138 |
Less accumulated depreciation and amortization | (2,947) | (1,551) |
Assets financed by financing obligation, net | 30,553 | 36,587 |
Buildings and Building Improvements [Member] | ||
Assets financed by financing obligations [Line Items] | ||
Assets financed by financing obligations, gross | 33,500 | 33,500 |
Construction in progress [Member] | ||
Assets financed by financing obligations [Line Items] | ||
Assets financed by financing obligations, gross | $ 0 | $ 4,638 |
Build-to-Suit Lease (Narrative)
Build-to-Suit Lease (Narrative) (Details) | 9 Months Ended |
Jun. 30, 2015 | |
Long Beach, California campus [Member] | |
Property, Plant and Equipment [Line Items] | |
Lessee Leasing Arrangements, Capital Leases, Term of Contract | 15 years |
Investment in Unconsolidated 45
Investment in Unconsolidated Affiliate Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Investment in Unconsolidated Affiliate [Abstract] | |||||||
Equity interest in investee's unrealized gains on hedging derivatives, net of taxes | $ 2 | $ 0 | $ 19 | $ 0 | |||
Investment in Unconsolidated Affiliate | $ 3,969 | $ 4,105 | $ 3,969 | $ 4,105 | $ 3,903 | $ 4,000 | $ 4,000 |
Investment in Unconsolidated 46
Investment in Unconsolidated Affiliate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2012 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in Unconsolidated Affiliate | $ 3,969 | $ 4,105 | $ 3,903 | $ 4,000 | $ 3,903 | $ 4,000 |
Investment in Unconsolidated Affiliate, Ownership Percentage | 27.972% | 27.972% | 28.00% | |||
Balance at beginning of period | 3,903 | 4,000 | ||||
Equity in earnings of unconsolidated affiliate | $ 139 | 135 | 393 | 343 | ||
Return of capital contribution from unconsolidated affiliate | (346) | (238) | ||||
Equity interest in investee's unrealized gains on hedging derivatives, net of taxes | 2 | 0 | 19 | 0 | ||
Balance at end of period | $ 3,969 | $ 4,105 | $ 3,969 | $ 4,105 |
Accounts Payable and Accrued 47
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 14,047 | $ 12,990 |
Accrued compensation and benefits | 21,431 | 17,963 |
Other accrued expenses | 6,906 | 7,874 |
Accounts payable and accrued expenses, total | $ 42,384 | $ 38,827 |
Commitments and Contingencies48
Commitments and Contingencies (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Commitments and Contingencies (Textual) [Abstract] | ||||
Amount Of Loans Committed To Provide | $ 116.4 | $ 116.4 | ||
Loan Processing Fee | $ 300,000 | $ 300,000 | 1,100,000 | $ 1,100,000 |
License Costs | $ 2,300,000 |
Commitments and Contingencies S
Commitments and Contingencies Schedule Of Impact Of Proprietary Loan Program On Our Tuition Revenue And Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 85 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | |
Schedule of Impact of Proprietary Loan Program on our Tuition Revenue and Interest Income [Abstract] | |||||
Tuition and interest income excluded | $ 5,940 | $ 6,289 | $ 18,717 | $ 20,542 | $ 114,618 |
Amounts collected and recognized | (1,506) | (951) | (4,017) | (2,497) | (12,496) |
Amounts written off | (2,456) | (2,173) | (8,704) | (6,436) | (40,259) |
Net amount excluded during the period | $ 1,978 | $ 3,165 | $ 5,996 | $ 11,609 | $ 61,863 |
Commitments and Contingencies B
Commitments and Contingencies Balances Outstanding under Proprietary Loan Program (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 85 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Activity Related to Balances Outstanding under our Proprietary Loan Program [Abstract] | |||||||
Amounts Outstanding Under Our Proprietary Loan Program | $ 74,597 | $ 71,358 | $ 74,597 | $ 71,358 | $ 74,597 | $ 70,759 | $ 59,767 |
Loans extended | 14,326 | 18,390 | |||||
Interest accrued | 2,233 | 2,134 | |||||
Amounts collected and recognized | (1,506) | (951) | (4,017) | (2,497) | (12,496) | ||
Amounts written off | $ (2,456) | $ (2,173) | $ (8,704) | $ (6,436) | $ (40,259) |
Common Shareholders' Equity Com
Common Shareholders' Equity Common Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 20, 2014 | Jun. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2015 | Dec. 20, 2011 |
Stockholders Equity Note [Line Items] | ||||||||
Number of voting rights per share, common stock | $ 1 | |||||||
Common stock dividends declared, per share | $ 0.10 | $ 0.10 | $ 0.10 | |||||
Cash dividend | $ 7,310 | |||||||
Repurchase of common stock authorized by Board of Directors | $ 25,000 | |||||||
Purchased shares | 0 | 748,000 | 1,573,252 | |||||
Average price per share | $ 0 | $ 8.15 | $ 9.38 | |||||
Aggregate cost of treasury stock repurchased during the period | $ 0 | $ 6,100 | $ 14,800 | |||||
Common Stock | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Cash dividend | $ 7,300 |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | |||
Shares not included in the determination of our diluted shares outstanding as they were anti-dilutive | 394,687 | 527,189 | 494,372 |
Earnings per Share (Calculation
Earnings per Share (Calculation of the Weighted Average Number of Shares Outstanding) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Weighted average number of shares | ||||
Basic shares outstanding | 24,138 | 24,618 | 24,477 | 24,641 |
Dilutive effect related to employee stock plans | 0 | 300 | 119 | 264 |
Diluted shares outstanding | 24,138 | 24,918 | 24,596 | 24,905 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
Revenues | |||||
Revenues | $ 85,106 | $ 91,329 | $ 272,021 | $ 283,080 | |
Income (loss) from operations | |||||
Income (loss) from operations | (3,996) | 1,011 | 4,006 | 2,457 | |
Depreciation and amortization | |||||
Depreciation and amortization | 13,169 | 14,461 | |||
Total Depreciation and Amortization | 4,775 | 5,066 | 14,565 | 15,547 | |
Net income (loss) | |||||
Net income (loss) | (2,975) | 366 | 674 | 453 | |
Goodwill | |||||
Goodwill | 20,579 | 20,579 | $ 20,579 | ||
Assets | |||||
Total assets | 263,230 | 263,230 | 288,069 | ||
Postsecondary education | |||||
Revenues | |||||
Revenues | 82,098 | 88,784 | 263,101 | 274,988 | |
Income (loss) from operations | |||||
Income (loss) from operations | (3,296) | 1,907 | 6,055 | 4,524 | |
Depreciation and amortization | |||||
Depreciation and amortization | 4,678 | 4,983 | 14,327 | 15,276 | |
Net income (loss) | |||||
Net income (loss) | (2,626) | 826 | 1,636 | 1,432 | |
Goodwill | |||||
Goodwill | 20,579 | 20,579 | 20,579 | ||
Assets | |||||
Total assets | 256,426 | 256,426 | 282,501 | ||
Other | |||||
Revenues | |||||
Revenues | 3,008 | 2,545 | 8,920 | 8,092 | |
Income (loss) from operations | |||||
Income (loss) from operations | (700) | (896) | (2,049) | (2,067) | |
Depreciation and amortization | |||||
Depreciation and amortization | 97 | 83 | 238 | 271 | |
Net income (loss) | |||||
Net income (loss) | (349) | $ (460) | (962) | $ (979) | |
Goodwill | |||||
Goodwill | 0 | 0 | 0 | ||
Assets | |||||
Total assets | $ 6,804 | $ 6,804 | $ 5,568 |
Purchase transaction (Details)
Purchase transaction (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2014 | |
Purchase transaction [Line Items] | ||
Prepaid expenses and other current assets, RY | $ 17,304 | $ 16,509 |
Purchase agreement additional purchase price | 500 | |
Purchase agreement initial purchase price | 300 | |
Property and equipment, net, RY | 116,509 | 106,927 |
Total assets, RY | 263,230 | $ 288,069 |
Roush Yates School of Technology [Member] | ||
Purchase transaction [Line Items] | ||
accounts payable and accrued expenses and other liabilities | 1,500 | |
Prepaid expenses and other current assets, RY | 434 | |
Property and equipment, net, RY | 137 | |
Other Assets | 1,473 | |
Total assets, RY | $ 2,044 | |
Roush Yates School of Technology [Member] | Buildings and Building Improvements [Member] | ||
Purchase transaction [Line Items] | ||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 4 years | |
Operating Leases, Future Minimum Payments Due | $ 200 | |
Roush Yates School of Technology [Member] | Training equipment [Member] | ||
Purchase transaction [Line Items] | ||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 4 years | |
Operating Leases, Future Minimum Payments Due | $ 200 |