Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | ||
Jun. 30, 2017 | Jul. 27, 2017 | Jun. 30, 2016 | |
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, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | Q3 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 24,757,834 | ||
Trading Symbol | UTI | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 91,700,000 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 35,077 | $ 119,045 |
Restricted cash | 13,598 | 5,956 |
Trading securities | 39,790 | 0 |
Held-to-maturity investments, current portion | 9,398 | 1,691 |
Receivables, net | 10,091 | 15,253 |
Prepaid expenses and other current assets | 19,618 | 20,004 |
Total current assets | 127,572 | 161,949 |
Held-to-maturity investments, less current portion | 251 | 0 |
Property and equipment, net | 108,452 | 114,033 |
Goodwill | 9,005 | 9,005 |
Other assets | 11,492 | 12,172 |
Total assets | 256,772 | 297,159 |
Current liabilities: | ||
Accounts payable and accrued expenses | 31,336 | 42,545 |
Dividends payable | 1,309 | 0 |
Deferred revenue | 25,040 | 44,491 |
Accrued tool sets | 2,920 | 2,938 |
Financing obligation, current | 1,056 | 913 |
Income tax payable | 845 | 0 |
Other current liabilities | 4,099 | 3,673 |
Total current liabilities | 66,605 | 94,560 |
Deferred tax liabilities, net | 3,141 | 3,141 |
Deferred rent liability | 7,365 | 8,987 |
Financing obligation | 42,325 | 43,141 |
Other liabilities | 10,021 | 10,716 |
Total liabilities | 129,457 | 160,545 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity: | ||
Common stock, $0.0001 par value, 100,000,000 shares authorized, 31,622,731 shares issued and 24,757,834 shares outstanding as of June 30, 2017 and 31,489,331 shares issued and 24,624,434 shares outstanding as of September 30, 2016 | 3 | 3 |
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; 700,000 shares of Series A Convertible Preferred Stock issued and outstanding as of June 30, 2017 and September 30, 2016, liquidation preference of $100 per share | 0 | 0 |
Paid-in capital - common | 184,597 | 182,615 |
Paid-in capital - preferred | 68,853 | 68,820 |
Treasury stock, at cost, 6,864,897 shares as of June 30, 2017 and September 30, 2016 | (97,388) | (97,388) |
Retained deficit | (28,752) | (17,454) |
Accumulated other comprehensive income | 2 | 18 |
Total shareholders' equity | 127,315 | 136,614 |
Total liabilities and shareholders' equity | $ 256,772 | $ 297,159 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jun. 30, 2017 | Sep. 30, 2016 |
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 | 31,622,731 | 31,489,331 |
Common stock, shares outstanding | 24,757,834 | 24,624,434 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 700,000 | 700,000 |
Preferred stock, shares outstanding | 700,000 | 700,000 |
Treasury stock, at cost | 6,864,897 | 6,864,897 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 76,258 | $ 82,266 | $ 242,934 | $ 260,231 |
Operating expenses: | ||||
Educational services and facilities | 44,120 | 47,044 | 136,108 | 146,466 |
Selling, general and administrative | 34,922 | 40,672 | 107,536 | 127,178 |
Total operating expenses | 79,042 | 87,716 | 243,644 | 273,644 |
Loss from operations | (2,784) | (5,450) | (710) | (13,413) |
Other income (expense): | ||||
Interest expense, net | (559) | (802) | (2,020) | (2,416) |
Equity in earnings of unconsolidated affiliates | 116 | 51 | 369 | 290 |
Other income, net | 277 | 77 | 712 | 455 |
Total other expense, net | (166) | (674) | (939) | (1,671) |
Loss before income taxes | (2,950) | (6,124) | (1,649) | (15,084) |
Income tax expense (benefit) | 967 | (1,055) | 5,722 | 23,667 |
Net loss | (3,917) | (5,069) | (7,371) | (38,751) |
Preferred stock dividends | 1,309 | 101 | 3,927 | 101 |
Loss available for distribution | $ (5,226) | $ (5,170) | $ (11,298) | $ (38,852) |
Earnings per share: | ||||
Loss per share - basic | $ (0.21) | $ (0.21) | $ (0.46) | $ (1.60) |
Loss per share - diluted | $ (0.21) | $ (0.21) | $ (0.46) | $ (1.60) |
Weighted average number of shares outstanding: | ||||
Basic | 24,748 | 24,345 | 24,679 | 24,283 |
Diluted | 24,748 | 24,345 | 24,679 | 24,283 |
Cash dividends declared per common share | $ 0 | $ 0 | $ 0 | $ 0.04 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) Statement - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net loss | $ (3,917) | $ (5,069) | $ (7,371) | $ (38,751) |
Equity interest in investee's unrealized loss on hedging derivatives, net of taxes | (7) | 0 | (16) | (1) |
Comprehensive loss | $ (3,924) | $ (5,069) | $ (7,387) | $ (38,752) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - 9 months ended Jun. 30, 2017 - USD ($) shares in Thousands, $ in Thousands | Total | Treasury Stock | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Deficit | Common Stock | Series A Preferred Stock [Member] | Series A Preferred Stock [Member]Paid-in Capital | Common StockPaid-in Capital |
Beginning Balance, shares at Sep. 30, 2016 | 6,865 | 31,489 | 700 | |||||
Beginning Balance at Sep. 30, 2016 | $ 136,614 | $ (97,388) | $ 18 | $ (17,454) | $ 3 | $ 0 | $ 68,820 | $ 182,615 |
Net loss | 7,371 | 7,371 | ||||||
Issuance of Series A Convertible Preferred Stock | 33 | 33 | ||||||
Issuance of common stock under employee plans, shares | 137 | |||||||
Issuance of common stock under employee plans | 0 | $ 0 | ||||||
Shares withheld for payroll taxes, shares | (3) | |||||||
Shares withheld for payroll taxes | (10) | $ 0 | (10) | |||||
Stock-based compensation | 1,992 | 1,992 | ||||||
Preferred stock dividends | (2,618) | (3,927) | ||||||
Equity interest in investee's unrealized loss on hedging derivatives, net of taxes | (16) | (16) | ||||||
Ending Balance, shares at Jun. 30, 2017 | 6,865 | 31,623 | 700 | |||||
Ending Balance at Jun. 30, 2017 | $ 127,315 | $ (97,388) | $ 2 | $ (28,752) | $ 3 | $ 0 | $ 68,853 | $ 184,597 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (7,371) | $ (38,751) |
Depreciation and amortization | 10,726 | 11,358 |
Amortization of assets subject to financing obligation | 2,012 | 2,012 |
Amortization of discount on investments | (32) | (387) |
Unrealized gains on trading securities | (10) | 0 |
Bad debt expense | 503 | 931 |
Stock-based compensation | 1,992 | 3,208 |
Deferred income taxes | 0 | 27,928 |
Equity in earnings of unconsolidated affiliates | (369) | (290) |
Training equipment credits earned, net | (710) | (716) |
Loss on disposal of property and equipment | 18 | 89 |
Changes in assets and liabilities: | ||
Restricted cash | 11,050 | |
Restricted cash | 322 | |
Receivables | 2,453 | 11,221 |
Prepaid expenses and other current assets | 358 | (1,535) |
Other assets | 263 | (83) |
Accounts payable and accrued expenses | (11,359) | (3,217) |
Deferred revenue | (19,451) | (17,358) |
Income tax payable/receivable | 3,052 | (5,973) |
Accrued tool sets and other current liabilities | 768 | 359 |
Deferred rent liability | (1,622) | (1,372) |
Other liabilities | (70) | 648 |
Net cash used in operating activities | (29,835) | (10,832) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (6,497) | (6,695) |
Proceeds from disposal of property and equipment | 1 | 20 |
Purchase of held-to-maturity investments | (9,671) | 0 |
Proceeds received upon maturity of investments | 1,687 | 24,569 |
Purchase of trading securities | (41,585) | 0 |
Proceeds from sales of trading securities | 1,799 | 0 |
Acquisitions | 0 | (1,500) |
Investment in unconsolidated affiliates | 0 | (1,000) |
Capitalized costs for intangible assets | (325) | (575) |
Return of capital contribution from unconsolidated affiliate | 352 | 359 |
Restricted cash: other | 3,407 | 2,258 |
Net cash provided by (used in) investing activities | (50,832) | 17,436 |
Cash flows from financing activities: | ||
Proceeds from Issuance of Preferred Stock and Preference Stock | 0 | 69,214 |
Payment of common stock cash dividends | 0 | (1,457) |
Payment of preferred stock cash dividend | (2,618) | 0 |
Payments of financing obligation | (673) | (542) |
Payment of payroll taxes on stock-based compensation through shares withheld | (10) | (12) |
Net cash provided by (used in) financing activities | (3,301) | 67,203 |
Net increase (decrease) in cash and cash equivalents | (83,968) | 73,807 |
Cash and cash equivalents, beginning of period | 119,045 | 29,438 |
Cash and cash equivalents, end of period | 35,077 | 103,245 |
Supplemental disclosure of cash flow information: | ||
Taxes paid | 2,670 | 1,713 |
Interest Paid | 2,543 | 2,583 |
Training equipment obtained in exchange for services | 1,011 | 2,346 |
Depreciation on training equipment obtained in exchange for services | 960 | 1,000 |
Change in accrued capital expenditures during the period | 217 | 2,075 |
Dividends payable | 1,309 | 101 |
Preferred stock issuance costs accrued | $ 0 | $ 378 |
Business Description
Business Description | 9 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description | Nature of the Business 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 or diploma programs at 12 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 advanced 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, 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 2016 Annual Report on Form 10-K filed with the SEC on November 30, 2016. |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 9 Months Ended |
Jun. 30, 2017 | |
Basis of Presentation [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Basis of Presentation 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. 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, 2017 are not necessarily indicative of the results that may be expected for the year ending September 30, 2017. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2016 Annual Report on Form 10-K filed with the SEC on November 30, 2016. 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 us 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. Income Taxes 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, 2017 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, 2017, we calculated income taxes using the actual income tax rate for the respective periods. Restricted Cash Restricted cash includes the funds transferred in advance of loan purchases under our proprietary loan program, funds held for students from Title IV financial aid program funds that result in credit balances on a student’s account and funds held as collateral for certain of the surety bonds that our insurers issue on behalf of our campuses and admissions representatives with multiple states, which are required to maintain authorization to conduct our business. Changes in restricted cash that represent funds held for students or that result from changes in the collateralization required for surety bonds as described above are included in cash flows from operating activities on our condensed consolidated statements of cash flows because these restricted funds are related to the core activity of our operations. All other changes in restricted cash are included in cash flows from investing activities on our condensed consolidated statements of cash flows. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements (Notes) | 9 Months Ended |
Jun. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Description of New Accounting Pronouncements [Text Block] | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (FASB) issued guidance intended to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Instead, an entity will record an impairment charge based on the excess of a reporting unit's carrying value over its fair value (Step 1 of the existing goodwill impairment test). We adopted this guidance prospectively during the quarter ended March 31, 2017 for our interim goodwill impairment testing; the adoption had no impact on our results of operations, financial condition or financial statement disclosures. In March 2016, the FASB issued guidance intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. We adopted this guidance prospectively as of October 1, 2016; the adoption had an immaterial impact on our results of operations, financial condition and financial statement disclosures. In November 2015, the FASB issued guidance which simplifies the balance sheet classification of deferred taxes. The guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. We adopted this guidance prospectively as of October 1, 2016; the adoption had no impact on our results of operations, financial condition or financial statement disclosures. In April 2015, the FASB issued guidance related to customers' 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. We adopted this guidance prospectively as of October 1, 2016; the adoption had an immaterial impact on our results of operations, financial condition and 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. We adopted this guidance as of October 1, 2016. The guidance had no impact on our results of operations, financial condition or financial statement disclosures. Effective the first quarter of fiscal 2019: In January 2017, the FASB issued guidance which clarifies the definition of a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, then the acquisition is not a business. In addition, a business must include at least one substantive process. The standard is to be applied on a prospective basis to purchases or disposals of a business or an asset. The effect of this new standard on our consolidated financial statements will be dependent on any future acquisitions. In August 2016, the FASB issued guidance which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. We are currently evaluating the impact that the standard will have on our consolidated statements of cash flows. Further, in November 2016, the FASB issued guidance that requires restricted cash and cash equivalents to be included with cash and cash equivalents on the statement of cash flows. Based on the restricted cash balances on our consolidated balance sheets, we expect this standard to have an impact on the presentation of our consolidated statements of cash flows. In January 2016, the FASB issued guidance related to the classification and measurement of financial instruments. The guidance primarily impacts the accounting for equity investments other than those accounted for using the equity method of accounting, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. Additionally, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The accounting for other financial instruments, such as loans, investments in debt securities and financial liabilities is largely unchanged. Based on our current portfolio of investments in debt securities accounted for as held-to-maturity securities and investments made in equity securities accounted for as trading securities, the adoption of this standard is not expected to have a material impact on our financial statements. 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 2016, the FASB issued further guidance that offers narrow scope improvements and clarifies certain implementation issues related to revenue recognition, including principal versus agent considerations, the identification of performance obligations and licensing. These additional updates have the same effective date as the new revenue guidance. We are continuing to evaluate the potential impact to our various revenue streams and continue to evaluate the adoption methods and the impact that the update will have on our results of operations, financial condition and financial statement disclosures. Effective the first quarter of fiscal 2020: In February 2016, the FASB issued guidance requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for substantially all leases, with the exception of short-term leases. Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the statement of income. We are currently evaluating the impact that the update will have on our results of operations, financial condition and financial statement disclosures. Effective the first quarter of fiscal 2021: In June 2016, the FASB issued guidance which changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. We are currently evaluating the impact that the standard will have on our results of operations, financial condition and financial statement disclosures. |
Postemployment Benefits (Notes)
Postemployment Benefits (Notes) | 9 Months Ended |
Jun. 30, 2017 | |
Postemployment Benefits [Abstract] | |
Postemployment Benefits Disclosure [Text Block] | Postemployment Benefits In November 2016, we completed a reduction in workforce impacting approximately 75 employees and provided postemployment benefits totaling approximately $1.3 million . 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 November 2018. The postemployment benefit accrual activity for the nine months ended June 30, 2017 was as follows: Liability Balance at Postemployment Cash Paid Other Liability Balance at June 30, 2017 Severance $ 4,046 $ 1,681 $ (4,251 ) $ (492 ) $ 984 Other 189 114 (229 ) (74 ) — Total $ 4,235 $ 1,795 $ (4,480 ) $ (566 ) $ 984 (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, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments During the third quarter of 2017, we began investing in various bond funds. These investments are held principally for resale in the near term and are classified as trading securities. Trading securities are recorded at fair value based on the closing market price of the security. The unrealized gain on trading securities at June 30, 2017 was less than $0.1 million and was included in other income, net in the accompanying condensed consolidated statements of loss. Held-to-maturity securities consist of 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. Held-to-maturity securities also include 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, 2017 were as follows: Estimated Amortized Gross Unrealized Fair Market Cost Gains Losses Value Due in less than 1 year: Corporate bonds $ 9,398 $ — $ (9 ) $ 9,389 Due in 1 - 2 years: Corporate bonds 251 — (1 ) 250 $ 9,649 $ — $ (10 ) $ 9,639 Amortized cost and fair value for investments classified as held-to-maturity at September 30, 2016 were as follows: Estimated Amortized Gross Unrealized Fair Market Cost Gains Losses Value Due in less than 1 year: Municipal bonds $ 744 $ — $ — $ 744 Corporate bonds 200 — — 200 Certificates of deposit 747 — — 747 $ 1,691 $ — $ — $ 1,691 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, condensed consolidated statements of loss and condensed consolidated statements of comprehensive loss. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2017 | |
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, 2017 Quoted Prices Significant Significant Trading securities $ 39,790 $ 39,790 $ — $ — Money market funds 27,925 27,925 — — Corporate bonds 9,639 9,639 — — Total assets at fair value on a recurring basis $ 77,354 $ 77,354 $ — $ — Fair Value Measurements Using September 30, 2016 Quoted Prices Significant Significant Money market funds $ 108,963 $ 108,963 $ — $ — Corporate bonds 200 200 — — Commercial paper 2,501 — 2,501 — Municipal bonds 744 — 744 — Certificates of deposit 747 — 747 — Total assets at fair value on a recurring basis $ 113,155 $ 109,163 $ 3,992 $ — 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, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net consisted of the following: Depreciable June 30, 2017 September 30, 2016 Land — $ 3,189 $ 3,189 Buildings and building improvements 30-35 79,406 78,870 Leasehold improvements 1-28 40,437 39,539 Training equipment 3-10 92,391 92,601 Office and computer equipment 3-10 37,042 37,688 Curriculum development 5 18,736 18,702 Software developed for internal use 1-5 11,970 11,905 Vehicles 5 1,275 1,228 Construction in progress — 5,062 2,195 289,508 285,917 Less accumulated depreciation and amortization (181,056 ) (171,884 ) $ 108,452 $ 114,033 The following amounts, which are included in the above table, represent assets financed by financing obligations resulting from the build-to-suit arrangements at our Lisle, Illinois and Long Beach, California campuses: June 30, 2017 September 30, 2016 Buildings and building improvements $ 45,816 $ 45,816 Less accumulated depreciation and amortization (8,174 ) (6,162 ) Assets financed by financing obligations, net $ 37,642 $ 39,654 |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliate (Notes) | 9 Months Ended |
Jun. 30, 2017 | |
Investment in Unconsolidated Affiliate [Abstract] | |
Equity Method Investments Disclosure [Text Block] | Investment in Unconsolidated Affiliates We have an equity interest in a joint venture related to the lease of our Lisle, Illinois campus facility (JV). 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 sheets. We recognize our proportionate share of the 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. Additionally, in February 2016, we made an investment in and entered into a licensing agreement with Pro-MECH Learning Systems, LLC (Pro-MECH), a company that provides comprehensive technician development programs and shop operations services. This investment resulted in our ownership of 25% of the outstanding equity interests of Pro-MECH. The $1.0 million investment was accounted for under the equity method of accounting. During the three months ended September 30, 2016, we determined that the carrying value of our investment was not recoverable and recorded a full impairment loss. Investment in unconsolidated affiliates consisted of the following: June 30, 2017 September 30, 2016 Carrying Value Ownership Percentage Carrying Value Ownership Percentage Investment in JV $ 4,037 27.972 % $ 4,036 27.972 % Investment in Pro-MECH $ — 25.000 % $ — 25.000 % Investment in unconsolidated affiliates included the following activity during the period: Nine Months Ended June 30, 2017 2016 Balance at beginning of period $ 4,036 $ 3,986 Investment in unconsolidated affiliate — 1,000 Equity in earnings of unconsolidated affiliates 369 290 Return of capital contribution from unconsolidated affiliates (352 ) (359 ) Equity interest in investee's unrealized losses on hedging derivatives, net of taxes (16 ) (1 ) Balance at end of period $ 4,037 $ 4,916 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 9 Months Ended |
Jun. 30, 2017 | |
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, 2017 September 30, 2016 Accounts payable $ 7,104 $ 11,805 Accrued compensation and benefits 13,915 22,501 Other accrued expenses 10,317 8,239 $ 31,336 $ 42,545 |
Income Taxes (Notes)
Income Taxes (Notes) | 9 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Each reporting period, we estimate the likelihood that we will be able to recover our deferred tax assets, which represent timing differences in the recognition of revenue and certain tax deductions for accounting and tax purposes. The realization of deferred tax assets is dependent, in part, upon future taxable income. In assessing the need for a valuation allowance, we consider all available evidence, including our historical profitability and projections of future taxable income. If, based on the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, we record a valuation allowance. Such valuation allowance is maintained on our deferred tax assets until sufficient positive evidence exists to support its reversal in future periods. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. Significant judgment is required to determine if, and the extent to which, valuation allowances should be recorded against deferred tax assets. During the three months ended March 31, 2016, there were several pieces of negative evidence that contributed to our conclusion that a valuation allowance was appropriate against all deferred tax assets that rely upon future taxable income for their realization. As a result of our assessment, we recorded a full valuation allowance during the three months ended March 31, 2016. The amount of the deferred tax assets considered realizable, however, could be adjusted in future periods if estimates of future taxable income during the carryforward period are increased, if objective negative evidence in the form of cumulative losses is no longer present and if additional weight may be given to subjective evidence such as our projections for growth. We will continue to evaluate our valuation allowance in future periods for any change in circumstances that causes a change in judgment about the realizability of the deferred tax assets. Under Section 382 of the Internal Revenue Code (IRC), for income tax purposes only, we underwent a change in ownership as a result of a preferred stock issuance in June 2016, which is discussed in Note 12. Under the IRC, a change in ownership occurs when a five percent shareholder, as measured by ownership value, increases their ownership in a loss corporation by more than 50 percentage points during the defined testing period; both common and preferred stock are included in the determination of ownership value. Since the purchaser of the preferred stock acquired ownership exceeding 50 percent of our total ownership value, this transaction qualified as a change in ownership under section 382 of the IRC only. Accordingly, certain deductions and losses will be subject to an annual Section 382 limitation. The limitation will affect the timing of when these deductions and losses can be used and may cause us to make income tax payments even if a pre-tax loss is recorded in future periods. The limitation may also cause the deductions and losses to expire unused. The components of income tax expense are as follows: Three Months Ended June 30, Nine Months Ended June 30, 2017 2016 2017 2016 Current expense (benefit) Federal $ 569 $ (1,012 ) $ 4,504 $ (4,388 ) State 398 (43 ) 1,218 127 Total current expense (benefit) 967 (1,055 ) 5,722 (4,261 ) Deferred expense Federal — — — 24,877 State — — — 3,051 Total deferred expense — — — 27,928 Total provision for income taxes $ 967 $ (1,055 ) $ 5,722 $ 23,667 The income tax provision differs from the tax that would result from application of the statutory federal tax rate of 35% to pre-tax income for the period. The reasons for the differences are as follows: Three Months Ended June 30, Nine Months Ended June 30, 2017 2016 2017 2016 Income tax expense (benefit) at statutory rate $ (1,032 ) $ (2,158 ) $ (577 ) $ (5,294 ) State income taxes (benefits), net of federal tax benefit 88 (242 ) 314 (400 ) Deferred tax asset write-off related to share based compensation — — — 51 Increase in valuation allowance 1,866 1,407 5,880 29,356 Other, net 45 (62 ) 105 (46 ) Total income tax expense $ 967 $ (1,055 ) $ 5,722 $ 23,667 The components of the deferred tax assets (liabilities) recorded in the accompanying condensed consolidated balance sheets were as follows: June 30, 2017 September 30, 2016 Gross deferred tax assets: Deferred compensation $ 2,332 $ 2,083 Reserves and accruals 5,062 5,417 Accrued tool sets 1,157 1,188 Deferred revenue 27,307 22,326 Deferred rent liability 625 1,213 Depreciation and amortization of property and equipment 2,857 684 Charitable contribution carryovers 474 671 Deductions limited by Section 382 860 592 Net operating losses and tax credit carryforwards 413 479 Valuation allowance (38,606 ) (32,828 ) Total gross deferred tax assets 2,481 1,825 Gross deferred tax liabilities: Amortization of goodwill and intangibles (3,141 ) (3,141 ) Prepaid and other expenses deductible for tax (2,481 ) (1,825 ) Total gross deferred tax liabilities (5,622 ) (4,966 ) Net deferred tax liabilities $ (3,141 ) $ (3,141 ) The following table summarizes the activity for the valuation allowance for the nine months ended June 30, 2017 : Balance at Additions to Income Write-offs Balance at End of $ 32,828 $ 5,880 $ (102 ) $ 38,606 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2017 | |
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 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 requested and we provided in April 2015 additional documents and information related to graduate employment at our Norwood, Massachusetts campus and our policies and practices for determining graduate employment. We have not received any additional requests since April 2015. At this time, we cannot predict the eventual scope, duration, outcome or associated costs of this request, 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, 2017 and 2016 and approximately $1.0 million and $1.1 million for the nine months ended June 30, 2017 and 2016, respectively. 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 loss. 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. Three Months Ended June 30, Nine Months Ended June 30, Inception 2017 2016 2017 2016 Tuition and interest income excluded $ 4,796 $ 5,197 $ 16,013 $ 17,361 $ 158,728 Amounts collected and recognized (2,135 ) (1,969 ) (6,071 ) (5,341 ) (27,156 ) Net amount excluded during the period $ 2,661 $ 3,228 $ 9,942 $ 12,020 $ 131,572 As of June 30, 2017 , we had committed to provide loans to our students for approximately $153.0 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. 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 loss. Nine Months Ended June 30, 2017 2016 Balance at beginning of period $ 75,511 $ 74,664 Loans extended 11,041 13,483 Interest accrued 2,637 2,856 Amounts collected and recognized (6,071 ) (5,341 ) Amounts written off (12,888 ) (11,113 ) Balance at end of period $ 70,230 $ 74,549 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Common Shareholders’ Equity | 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 June 9, 2016, our Board of Directors voted to eliminate the quarterly cash dividend on our common stock. Any future common stock dividends require the approval of a majority of the voting power of the Series A Preferred Stock. Preferred Stock Preferred Stock consists of 10,000,000 authorized preferred shares of $0.0001 par value each. As of June 30, 2017 and September 30, 2016, 700,000 shares of Series A Convertible Preferred Stock (Series A Preferred Stock) were issued and outstanding. The liquidation preference associated with the Series A Preferred Stock was $100 per share at June 30, 2017 . Pursuant to the terms of the Securities Purchase Agreement, we may pay a cash dividend on each share of the Series A Preferred Stock at a rate of 7.5% per year on the liquidation preference then in effect (Cash Dividend). If we do not pay a Cash Dividend, the liquidation preference shall be increased to an amount equal to the current liquidation preference in effect plus an amount reflecting that liquidation preference multiplied by the Cash Dividend rate then in effect plus 2.0% per year (Accrued Dividend). Cash Dividends are payable semi-annually in arrears on September 30 and March 31 of each year, and begin to accrue on the first day of the applicable dividend period. We paid Cash Dividends of $2.6 million on March 28, 2017 and accrued Cash Dividends of $1.3 million as of June 30, 2017 . 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 nine months ended June 30, 2017 . As of June 30, 2017 , we have purchased 1,677,570 shares at an average price per share of $9.09 and a total cost of approximately $15.3 million under this program. Under the terms of the Securities Purchase Agreement, future stock purchases under this program require the approval of a majority of the voting power of the Series A Preferred Stock. Stockholder Rights Agreement On June 29, 2016, our Board of Directors authorized the adoption of a stockholder Rights Agreement to protect against any potential future use of coercive or abusive takeover techniques and to ensure that our stockholders are not deprived of the opportunity to realize the full and fair value of their investment. This agreement, was designed to mitigate the risk of any person or group from acquiring beneficial ownership of 15% or more of our outstanding common stock, or, in the case of any person or group that already owned 15% or more of the outstanding common stock, an additional 0.25%. On February 21, 2017 , this agreement was amended to accelerate the expiration date, effectively terminating the agreement as of that date. The agreement was terminated based on the consideration of the current environment, proxy advisory guidelines and feedback from shareholders. In connection with the termination of this agreement, the preferred stock purchase rights were deregistered. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic net income (loss) per share has historically been calculated by dividing net income (loss) attributable to common stock by the weighted average number of common shares outstanding for the period. Our Series A Preferred Stock is considered a participating security because, in the event that we pay a dividend or make a distribution on the outstanding common stock, we shall also pay each holder of the Series A Preferred Stock a dividend on an as-converted basis. As such, for periods subsequent to the issuance of the Series A Preferred Stock, which occurred on June 24, 2016, we calculated basic earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for common stock and participating securities according to dividend and participation rights in undistributed earnings. Under this method, all earnings, distributed and undistributed, are allocated to common shares and participating securities based on their respective rights to receive dividends. The Series A Preferred Stock is not included in the computation of basic income (loss) per share in periods in which we have a net loss, as the Series A Preferred Stock is not contractually obligated to share in our net losses. Accordingly, the two-class method was not applicable for the three months ended June 30, 2017 and 2016 and for the nine months ended June 30, 2017. Diluted net income per share is calculated using the more dilutive of the as-converted or the two-class method. The two-class method assumes conversion of all potential shares other than the participating securities. Dilutive potential common shares include outstanding stock options, unvested restricted share awards and units and convertible preferred stock. The basic and diluted net loss amounts are the same for the three months and nine months ended June 30, 2017 and 2016 as a result of the net loss and anti-dilutive impact of the potentially dilutive securities. The following table summarizes the computation of basic and diluted loss per share under the as-converted method: Three Months Ended June 30, Nine Months Ended June 30, 2017 2016 2017 2016 (In thousands) Loss available for distribution $ (5,226 ) $ (5,170 ) $ (11,298 ) $ (38,852 ) Weighted average number of shares Basic shares outstanding 24,748 24,345 24,679 24,283 Dilutive effect related to employee stock plans — — — — Diluted shares outstanding 24,748 24,345 24,679 24,283 Net loss per share - basic $ (0.21 ) $ (0.21 ) $ (0.46 ) $ (1.60 ) Net loss per share - diluted $ (0.21 ) $ (0.21 ) $ (0.46 ) $ (1.60 ) The following table summarizes the potential weighted average shares of common stock that were excluded from the determination of our diluted shares outstanding as they were anti-dilutive: Three Months Ended June 30, Nine Months Ended June 30, 2017 2016 2017 2016 (In thousands) Outstanding stock-based grants 423 778 585 834 Convertible preferred stock 21,021 1,386 21,021 460 21,444 2,164 21,606 1,294 |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2017 | |
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. Our equity method investments and other non-Postsecondary Education operations are also included within 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 a financing obligation. Summary information by reportable segment is as follows: Three Months Ended June 30, Nine Months Ended June 30, 2017 2016 2017 2016 Revenues Postsecondary Education $ 72,568 $ 79,156 $ 231,282 $ 250,558 Other 3,690 3,110 11,652 9,673 Consolidated $ 76,258 $ 82,266 $ 242,934 $ 260,231 Income (loss) from operations Postsecondary Education $ (2,081 ) $ (4,297 ) $ 1,141 $ (10,206 ) Other (703 ) (1,153 ) (1,851 ) (3,207 ) Consolidated $ (2,784 ) $ (5,450 ) $ (710 ) $ (13,413 ) Depreciation and amortization (1) Postsecondary Education $ 4,115 $ 4,180 $ 12,455 $ 12,902 Other 110 167 283 468 Consolidated $ 4,225 $ 4,347 $ 12,738 $ 13,370 Net income (loss) Postsecondary Education $ (3,393 ) $ (4,426 ) $ (6,807 ) $ (37,366 ) Other (524 ) (643 ) (564 ) (1,385 ) Consolidated $ (3,917 ) $ (5,069 ) $ (7,371 ) $ (38,751 ) June 30, 2017 September 30, 2016 Goodwill Postsecondary Education $ 8,222 $ 8,222 Other 783 783 Consolidated $ 9,005 $ 9,005 Total assets Postsecondary Education $ 249,220 $ 289,688 Other 7,552 7,471 Consolidated $ 256,772 $ 297,159 (1) Excludes depreciation of training equipment obtained in exchange for services of $0.3 million and $0.4 million for the three months ended June 30, 2017 and 2016 , respectively, and of $1.0 million for each of the nine months ended June 30, 2017 and 2016. |
Government Regulation and Finan
Government Regulation and Financial Aid (Notes) | 9 Months Ended |
Jun. 30, 2017 | |
Government Regulation and Financial Aid [Abstract] | |
Government Regulation And Financial Aid [Text Block] | Government Regulation and Financial Aid State Authorization and Regulation On December 16, 2016, the Massachusetts Division of Professional Licensure published disclosure and business practice regulations applicable to proprietary schools operating in or recruiting from Massachusetts. As published, certain of the regulations were effective immediately and others become effective through January 1, 2018. The disclosure obligations under the new regulations are similar to those already required by Massachusetts. The regulations also require various business practice changes, including, among other items, ethics training for admissions representatives, creation of program outlines separate from existing catalogs, changes to refund requirements for students who begin school with pending financial aid and changes to enrollment agreements to reflect the refund policy change. We believe we are in compliance with all of the regulations that are currently effective and are working to comply with the remaining disclosure regulations, which will go into effect on January 1, 2018. Each of our campuses must be authorized by the applicable state education agency in which the campus is located to operate and to grant degrees, diplomas or certificates to its students. Our campuses are subject to extensive, ongoing regulation by each of these states. Additionally, our campuses are required to be authorized by the applicable state education agencies of certain other states in which our campuses recruit students. Our insurers issue surety bonds for us on behalf of our campuses and admissions representatives with multiple states to maintain authorization to conduct our business. We are obligated to reimburse our insurers for any surety bonds that are paid by the insurers. In April 2017, the Arizona State Board for Private Postsecondary Education requested that we post a $3.0 million surety bond related to our Avondale and Phoenix, Arizona campuses. We have complied with this request. Accreditation The procedures of our accrediting agency for the renewal of accreditation of a campus require a team of professionals to conduct an on-site visit at the campus and issue a Team Summary Report, which includes an assessment of the school’s compliance with accrediting standards. On July 20, 2017, we received a Team Summary Report from the Accrediting Commission of Career Schools and Colleges (ACCSC) that summarized three findings from its visit to our Long Beach, California campus in connection with renewing the campus’ accreditation. The first finding related to the campus’ application for a hybrid-distance education model, which is used in several programs. The second finding related to the campus’ application of ACCSC’s standards for the calculation of credit hours. The third finding related to the campus’ application of certain aspects of its leave of absence policy. Under ACCSC procedures, we intend to respond to the Team Summary Report by the September 1, 2017 due date. ACCSC has indicated that our response will be considered at the November 2017 meeting. On July 20, 2017, we also received the Team Summary Reports that summarize the findings from the renewal of accreditation evaluations for our Norwood, Massachusetts and Sacramento, California campuses. One of the programs at the Norwood campus did not meet the graduation benchmark set by ACCSC. We anticipate discontinuing this program. One of the programs at the Sacramento campus did not meet the employment benchmark set by ACCSC. Our response is due to ACCSC by September 1, 2017. We are continuing to implement initiatives designed to improve our graduation and employment rates. In June 2017, our Exton, Pennsylvania and Dallas/Ft. Worth, Texas campuses received the “School of Excellence” designation by the Accrediting Commission of Career Schools and Colleges (ACCSC). The School of Excellence Award recognizes ACCSC-accredited institutions for their commitment to the expectations and rigors of ACCSC accreditation, as well as the efforts made by the institution in maintaining high-levels of achievement among their students. In order to be eligible for the School of Excellence Award, an ACCSC-accredited institution must meet the conditions of renewing accreditation without any finding of non-compliance, satisfy all requirements necessary to be in good standing with ACCSC and demonstrate that the majority of the schools’ student graduation and graduate employment rates for all programs offered meet or exceed the average rates of graduation and employment among all ACCSC-accredited institutions. Additionally, each of these campuses received a six-year renewal of accreditation instead of the standard five-year renewal. In March 2017, ACCSC conducted an unannounced site visit at our Houston, Texas campus. One program in the automotive division did not achieve the graduation benchmark set by ACCSC and was placed on heightened monitoring status effective June 9, 2017. We are continuing to implement retention strategies designed to improve our graduation rates. As of September 30, 2016, two programs in the automotive and automotive/diesel/industrial divisions at our Rancho Cucamonga, California campus did not achieve the graduation benchmarks set by ACCSC and were placed on outcomes reporting. One of the two programs has since met the graduation benchmark using more recent data. Both programs were removed from outcomes reporting in June 2017. We began offering our Automotive Technology and Diesel Technology II curricula at this campus in April 2017; as part of this rollout, the below-benchmark programs are being discontinued. Regulation of Federal Student Financial Aid Programs Gainful Employment. In June 2017, the Department of Education (ED) announced its intent to convene a negotiated rulemaking committee to develop proposed regulations to revise the gainful employment regulations. ED has suggested that the committee will convene in late 2017 and early 2018 and issue proposed regulations for public comment during the first half of 2018, but ED has not established a final schedule. On June 30, 2017, ED announced the extension of the compliance deadline for certain gainful employment disclosure requirements from July 1, 2017 to July 1, 2018. ED stated that institutions are still required to comply with other gainful employment disclosure requirements by July 1, 2017. ED also announced its intent to extend the deadline for all programs to file alternate earnings appeals from July 1, 2017 to a later date to be provided in a future announcement expected by early August 2017. ED has not announced a delay or suspension in the enforcement of any other gainful employment regulations, nor in the issuance of new draft or final gainful employment rates in the future. In January 2017, ED issued to our schools final versions of the first set of debt to earnings rates under the new gainful employment rule. The final rates were consistent with the draft rates previously discussed in our 2016 Annual Report on Form 10-K, with nine of our 12 educational programs achieving passing rates and the other three programs in the zone. Borrower Defense to Repayment Regulations. In November 2016, ED published final regulations establishing new rules regarding, among other things, the ability of borrowers to obtain discharges of their obligations to repay certain Title IV loans and for ED to initiate a proceeding to collect from the institution the discharged and returned amounts and the extensive list of circumstances that may require institutions to provide letters of credit or other financial protection to ED. In June 2017, the effective date of the majority of the Borrower Defense and Other Discharges regulations was delayed until further notice. ED also announced its intent to convene a negotiated rulemaking committee to develop proposed regulations to revise the regulations on borrower defenses to repayment of Federal student loans and other matters published on November 1, 2016. ED has suggested that the committee will convene in late 2017 and early 2018 and issue proposed regulations for public comment during the first half of 2018, but ED has not established a final schedule. Other Federal Student Financial Aid Matters. In May 2017, Congress approved the FY 2017 omnibus appropriations bill that included the reinstatement of year-round Pell grants beginning with the 2017-2018 award year. The reinstatement will provide up to an additional $2,960 in 2017-2018 Pell grant funding for eligible students. In February 2017, ED notified us that it had completed its review of our audited financial statements for the year ended September 30, 2016 and concluded that they yield a composite score of 1.7 out of 3.0. As a result of our composite score exceeding the 1.5 required to be deemed financially responsible under ED composite score regulations, we are no longer subject to Heightened Cash Monitoring 1 restrictions under the Zone Alternative, imposed by ED beginning in October 2016. However, we will continue to provide a monthly student roster and a biweekly cash flow projection, which was requested in connection with the issuance of our Series A Convertible Preferred Stock in June 2016. In December 2016, we were advised by ED that our applications for Title IV program participation recertification with respect to our Universal Technical Institute of Arizona and Universal Technical Institute of Phoenix institutions had been processed. The Universal Technical Institute of Arizona institution has received its program participation agreement, which places the institution on provisional certification until March 31, 2018, based on an open ED program review from April 2015 for which we have not yet received a report. As a result of the institution's placement on provisional certification, ED requires that we apply for and receive approval prior to awarding or disbursing Title IV aid for any new locations or new programs. In March 2017, we received a standard, non-provisional program participation agreement for the Universal Technical Institute of Phoenix institution with an expiration date of March 31, 2018. This timeframe has been designed to allow for participation alignment of all three of our institutions, as our Universal Technical Institute of Texas institution is also set to expire on March 31, 2018. We will submit recertification applications for all of our institutions in December 2017 as required. |
Postemployment Benefits (Tables
Postemployment Benefits (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Postemployment Benefits [Abstract] | |
Postemployment activity | The postemployment benefit accrual activity for the nine months ended June 30, 2017 was as follows: Liability Balance at Postemployment Cash Paid Other Liability Balance at June 30, 2017 Severance $ 4,046 $ 1,681 $ (4,251 ) $ (492 ) $ 984 Other 189 114 (229 ) (74 ) — Total $ 4,235 $ 1,795 $ (4,480 ) $ (566 ) $ 984 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
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, 2017 were as follows: Estimated Amortized Gross Unrealized Fair Market Cost Gains Losses Value Due in less than 1 year: Corporate bonds $ 9,398 $ — $ (9 ) $ 9,389 Due in 1 - 2 years: Corporate bonds 251 — (1 ) 250 $ 9,649 $ — $ (10 ) $ 9,639 Amortized cost and fair value for investments classified as held-to-maturity at September 30, 2016 were as follows: Estimated Amortized Gross Unrealized Fair Market Cost Gains Losses Value Due in less than 1 year: Municipal bonds $ 744 $ — $ — $ 744 Corporate bonds 200 — — 200 Certificates of deposit 747 — — 747 $ 1,691 $ — $ — $ 1,691 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
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, 2017 Quoted Prices Significant Significant Trading securities $ 39,790 $ 39,790 $ — $ — Money market funds 27,925 27,925 — — Corporate bonds 9,639 9,639 — — Total assets at fair value on a recurring basis $ 77,354 $ 77,354 $ — $ — Fair Value Measurements Using September 30, 2016 Quoted Prices Significant Significant Money market funds $ 108,963 $ 108,963 $ — $ — Corporate bonds 200 200 — — Commercial paper 2,501 — 2,501 — Municipal bonds 744 — 744 — Certificates of deposit 747 — 747 — Total assets at fair value on a recurring basis $ 113,155 $ 109,163 $ 3,992 $ — |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Property and equipment, net consisted of the following: Depreciable June 30, 2017 September 30, 2016 Land — $ 3,189 $ 3,189 Buildings and building improvements 30-35 79,406 78,870 Leasehold improvements 1-28 40,437 39,539 Training equipment 3-10 92,391 92,601 Office and computer equipment 3-10 37,042 37,688 Curriculum development 5 18,736 18,702 Software developed for internal use 1-5 11,970 11,905 Vehicles 5 1,275 1,228 Construction in progress — 5,062 2,195 289,508 285,917 Less accumulated depreciation and amortization (181,056 ) (171,884 ) $ 108,452 $ 114,033 |
Assets financed by financing obligations | The following amounts, which are included in the above table, represent assets financed by financing obligations resulting from the build-to-suit arrangements at our Lisle, Illinois and Long Beach, California campuses: June 30, 2017 September 30, 2016 Buildings and building improvements $ 45,816 $ 45,816 Less accumulated depreciation and amortization (8,174 ) (6,162 ) Assets financed by financing obligations, net $ 37,642 $ 39,654 |
Investment in Unconsolidated 27
Investment in Unconsolidated Affiliate (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Investment in Unconsolidated Affiliate [Abstract] | |
Equity Method Investments [Table Text Block] | Investment in unconsolidated affiliates consisted of the following: June 30, 2017 September 30, 2016 Carrying Value Ownership Percentage Carrying Value Ownership Percentage Investment in JV $ 4,037 27.972 % $ 4,036 27.972 % Investment in Pro-MECH $ — 25.000 % $ — 25.000 % Investment in unconsolidated affiliates included the following activity during the period: Nine Months Ended June 30, 2017 2016 Balance at beginning of period $ 4,036 $ 3,986 Investment in unconsolidated affiliate — 1,000 Equity in earnings of unconsolidated affiliates 369 290 Return of capital contribution from unconsolidated affiliates (352 ) (359 ) Equity interest in investee's unrealized losses on hedging derivatives, net of taxes (16 ) (1 ) Balance at end of period $ 4,037 $ 4,916 |
Accounts Payable and Accrued 28
Accounts Payable and Accrued Expenses (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accounts payable and accrued expenses | Accounts payable and accrued expenses consisted of the following: June 30, 2017 September 30, 2016 Accounts payable $ 7,104 $ 11,805 Accrued compensation and benefits 13,915 22,501 Other accrued expenses 10,317 8,239 $ 31,336 $ 42,545 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of income tax expense are as follows: Three Months Ended June 30, Nine Months Ended June 30, 2017 2016 2017 2016 Current expense (benefit) Federal $ 569 $ (1,012 ) $ 4,504 $ (4,388 ) State 398 (43 ) 1,218 127 Total current expense (benefit) 967 (1,055 ) 5,722 (4,261 ) Deferred expense Federal — — — 24,877 State — — — 3,051 Total deferred expense — — — 27,928 Total provision for income taxes $ 967 $ (1,055 ) $ 5,722 $ 23,667 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The income tax provision differs from the tax that would result from application of the statutory federal tax rate of 35% to pre-tax income for the period. The reasons for the differences are as follows: Three Months Ended June 30, Nine Months Ended June 30, 2017 2016 2017 2016 Income tax expense (benefit) at statutory rate $ (1,032 ) $ (2,158 ) $ (577 ) $ (5,294 ) State income taxes (benefits), net of federal tax benefit 88 (242 ) 314 (400 ) Deferred tax asset write-off related to share based compensation — — — 51 Increase in valuation allowance 1,866 1,407 5,880 29,356 Other, net 45 (62 ) 105 (46 ) Total income tax expense $ 967 $ (1,055 ) $ 5,722 $ 23,667 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of the deferred tax assets (liabilities) recorded in the accompanying condensed consolidated balance sheets were as follows: June 30, 2017 September 30, 2016 Gross deferred tax assets: Deferred compensation $ 2,332 $ 2,083 Reserves and accruals 5,062 5,417 Accrued tool sets 1,157 1,188 Deferred revenue 27,307 22,326 Deferred rent liability 625 1,213 Depreciation and amortization of property and equipment 2,857 684 Charitable contribution carryovers 474 671 Deductions limited by Section 382 860 592 Net operating losses and tax credit carryforwards 413 479 Valuation allowance (38,606 ) (32,828 ) Total gross deferred tax assets 2,481 1,825 Gross deferred tax liabilities: Amortization of goodwill and intangibles (3,141 ) (3,141 ) Prepaid and other expenses deductible for tax (2,481 ) (1,825 ) Total gross deferred tax liabilities (5,622 ) (4,966 ) Net deferred tax liabilities $ (3,141 ) $ (3,141 ) |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | The following table summarizes the activity for the valuation allowance for the nine months ended June 30, 2017 : Balance at Additions to Income Write-offs Balance at End of $ 32,828 $ 5,880 $ (102 ) $ 38,606 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
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. 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 loss. Nine Months Ended June 30, 2017 2016 Balance at beginning of period $ 75,511 $ 74,664 Loans extended 11,041 13,483 Interest accrued 2,637 2,856 Amounts collected and recognized (6,071 ) (5,341 ) Amounts written off (12,888 ) (11,113 ) Balance at end of period $ 70,230 $ 74,549 |
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 loss. 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. Three Months Ended June 30, Nine Months Ended June 30, Inception 2017 2016 2017 2016 Tuition and interest income excluded $ 4,796 $ 5,197 $ 16,013 $ 17,361 $ 158,728 Amounts collected and recognized (2,135 ) (1,969 ) (6,071 ) (5,341 ) (27,156 ) Net amount excluded during the period $ 2,661 $ 3,228 $ 9,942 $ 12,020 $ 131,572 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table summarizes the potential weighted average shares of common stock that were excluded from the determination of our diluted shares outstanding as they were anti-dilutive: Three Months Ended June 30, Nine Months Ended June 30, 2017 2016 2017 2016 (In thousands) Outstanding stock-based grants 423 778 585 834 Convertible preferred stock 21,021 1,386 21,021 460 21,444 2,164 21,606 1,294 |
Summary of Calculation of Weighted Average Number of Shares Outstanding Used in Computing Basic and Diluted Net Income Loss Per Share | The following table summarizes the computation of basic and diluted loss per share under the as-converted method: Three Months Ended June 30, Nine Months Ended June 30, 2017 2016 2017 2016 (In thousands) Loss available for distribution $ (5,226 ) $ (5,170 ) $ (11,298 ) $ (38,852 ) Weighted average number of shares Basic shares outstanding 24,748 24,345 24,679 24,283 Dilutive effect related to employee stock plans — — — — Diluted shares outstanding 24,748 24,345 24,679 24,283 Net loss per share - basic $ (0.21 ) $ (0.21 ) $ (0.46 ) $ (1.60 ) Net loss per share - diluted $ (0.21 ) $ (0.21 ) $ (0.46 ) $ (1.60 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
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, 2017 2016 2017 2016 Revenues Postsecondary Education $ 72,568 $ 79,156 $ 231,282 $ 250,558 Other 3,690 3,110 11,652 9,673 Consolidated $ 76,258 $ 82,266 $ 242,934 $ 260,231 Income (loss) from operations Postsecondary Education $ (2,081 ) $ (4,297 ) $ 1,141 $ (10,206 ) Other (703 ) (1,153 ) (1,851 ) (3,207 ) Consolidated $ (2,784 ) $ (5,450 ) $ (710 ) $ (13,413 ) Depreciation and amortization (1) Postsecondary Education $ 4,115 $ 4,180 $ 12,455 $ 12,902 Other 110 167 283 468 Consolidated $ 4,225 $ 4,347 $ 12,738 $ 13,370 Net income (loss) Postsecondary Education $ (3,393 ) $ (4,426 ) $ (6,807 ) $ (37,366 ) Other (524 ) (643 ) (564 ) (1,385 ) Consolidated $ (3,917 ) $ (5,069 ) $ (7,371 ) $ (38,751 ) June 30, 2017 September 30, 2016 Goodwill Postsecondary Education $ 8,222 $ 8,222 Other 783 783 Consolidated $ 9,005 $ 9,005 Total assets Postsecondary Education $ 249,220 $ 289,688 Other 7,552 7,471 Consolidated $ 256,772 $ 297,159 (1) Excludes depreciation of training equipment obtained in exchange for services of $0.3 million and $0.4 million for the three months ended June 30, 2017 and 2016 , respectively, and of $1.0 million for each of the nine months ended June 30, 2017 and 2016. |
Business Description (Narrative
Business Description (Narrative) (Details) | Jun. 30, 2017Campus |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of campuses through which undergraduate degree, diploma and certificate programs are offered | 12 |
Postemployment Benefits Narrati
Postemployment Benefits Narrative (Details) $ in Thousands | 1 Months Ended | 9 Months Ended |
Nov. 30, 2016USD ($)Employee | Jun. 30, 2017USD ($) | |
Schedule Of Postemployment Benefits [Line Items] | ||
Number Of Impacted Employees Due To Reduction In Workforce | Employee | 75 | |
Postemployment Benefits, Period Expense | $ | $ 1,300 | $ 1,795 |
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 |
Postemployment Benefits (Detail
Postemployment Benefits (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended |
Nov. 30, 2016 | Jun. 30, 2017 | |
Postemployment Benefits Disclosure [Line Items] | ||
Beginning Balance Postemployment Benefits Liability | $ 4,235 | |
Postemployment Benefits, Period Expense | $ 1,300 | 1,795 |
Payments for Postemployment Benefits | (4,480) | |
Post Employment Benefits Other Non Cash Settlement, Increase (Decrease) | (566) | |
Ending Balance Postemployment Benefits Liability | 984 | |
Severance [Member] | ||
Postemployment Benefits Disclosure [Line Items] | ||
Beginning Balance Postemployment Benefits Liability | 4,046 | |
Postemployment Benefits, Period Expense | 1,681 | |
Payments for Postemployment Benefits | (4,251) | |
Post Employment Benefits Other Non Cash Settlement, Increase (Decrease) | (492) | |
Ending Balance Postemployment Benefits Liability | 984 | |
Other [Member] | ||
Postemployment Benefits Disclosure [Line Items] | ||
Beginning Balance Postemployment Benefits Liability | 189 | |
Postemployment Benefits, Period Expense | 114 | |
Payments for Postemployment Benefits | (229) | |
Post Employment Benefits Other Non Cash Settlement, Increase (Decrease) | (74) | |
Ending Balance Postemployment Benefits Liability | $ 0 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Held to Maturity Investments) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Sep. 30, 2016 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Trading Securities, Unrealized Holding Gain | $ 100 | |
Trading securities | 39,790 | $ 0 |
Amortized Cost | 9,649 | 1,691 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (10) | 0 |
Estimated Fair Market Value | 9,639 | 1,691 |
Municipal bonds, due in less than 1 year | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 744 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Market Value | 744 | |
Corporate bonds, due in less than 1 year | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 9,398 | 200 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (9) | 0 |
Estimated Fair Market Value | 9,389 | 200 |
Certificates of deposit, due in less than 1 year | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 747 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Market Value | $ 747 | |
Corporate bonds due In 1 - 2 years | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 251 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1) | |
Estimated Fair Market Value | $ 250 |
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, 2017 | Sep. 30, 2016 |
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 | $ 77,354 | $ 109,163 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Trading Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 39,790 | |
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 | 27,925 | 108,963 |
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 | 9,639 | 200 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | |
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 | |
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 | |
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 | 0 | 3,992 |
Significant Other Observable Inputs (Level 2) | Trading Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | |
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) | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 2,501 | |
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 | 744 | |
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 | 747 | |
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) | Trading Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 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) | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 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 | |
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 | |
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 | 77,354 | 113,155 |
Estimate of Fair Value Measurement [Member] | Trading Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 39,790 | |
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 | 27,925 | 108,963 |
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 | $ 9,639 | 200 |
Estimate of Fair Value Measurement [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 2,501 | |
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 | 744 | |
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 | $ 747 |
Property and Equipment, net (Na
Property and Equipment, net (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Financing obligation, current | $ 1,056 | $ 913 |
Buildings and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Buildings and building improvements | $ 45,816 | $ 45,816 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 289,508 | $ 285,917 |
Less accumulated depreciation and amortization | (181,056) | (171,884) |
Property and equipment, net | 108,452 | 114,033 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,189 | 3,189 |
Buildings and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 79,406 | 78,870 |
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 | $ 40,437 | 39,539 |
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 | $ 92,391 | 92,601 |
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 | $ 37,042 | 37,688 |
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 | |
Curriculum development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 5 years | |
Property and equipment, gross | $ 18,736 | 18,702 |
Software Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 11,970 | 11,905 |
Software Development [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 1 year | |
Software Development [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 5 years | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 5 years | |
Property and equipment, gross | $ 1,275 | 1,228 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 5,062 | $ 2,195 |
Property and Equipment, net Ass
Property and Equipment, net Assets Financed by Financing Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Assets financed by financing obligations [Line Items] | ||
Less accumulated depreciation and amortization | $ (8,174) | $ (6,162) |
Assets financed by financing obligation, net | (37,642) | (39,654) |
Buildings and Building Improvements [Member] | ||
Assets financed by financing obligations [Line Items] | ||
Assets financed by financing obligations, gross | $ 45,816 | $ 45,816 |
Investment in Unconsolidated 41
Investment in Unconsolidated Affiliate Narrative (Details) - USD ($) $ in Thousands | Feb. 09, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 |
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in Unconsolidated Affiliate | $ 4,037 | $ 4,916 | $ 4,036 | $ 3,986 | ||
Investment in unconsolidated affiliates | $ 1,000 | 0 | $ 1,000 | |||
Investment in JV [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in Unconsolidated Affiliate | $ 4,037 | $ 4,036 | ||||
Investment in Unconsolidated Affiliate, Ownership Percentage | 27.972% | 27.972% | ||||
Investment in Pro Mech [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in Unconsolidated Affiliate | $ 0 | $ 0 | ||||
Investment in Unconsolidated Affiliate, Ownership Percentage | 25.00% | 25.00% | 25.00% |
Investment in Unconsolidated 42
Investment in Unconsolidated Affiliate (Details) - USD ($) $ in Thousands | Feb. 09, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 |
Schedule of Equity Method Investments [Line Items] | ||||||||
Investment in Unconsolidated Affiliate | $ 4,037 | $ 4,916 | $ 4,037 | $ 4,916 | $ 4,036 | $ 3,986 | ||
Investment in unconsolidated affiliates | $ 1,000 | 0 | 1,000 | |||||
Equity in earnings of unconsolidated affiliates | 116 | 51 | 369 | 290 | ||||
Return of capital contribution from unconsolidated affiliate | (352) | (359) | ||||||
Equity interest in investee's unrealized loss on hedging derivatives, net of taxes | (7) | $ 0 | (16) | $ (1) | ||||
Investment in JV [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Investment in Unconsolidated Affiliate | $ 4,037 | $ 4,037 | $ 4,036 | |||||
Investment in Unconsolidated Affiliate, Ownership Percentage | 27.972% | 27.972% | 27.972% | |||||
Investment in Pro Mech [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Investment in Unconsolidated Affiliate | $ 0 | $ 0 | $ 0 | |||||
Investment in Unconsolidated Affiliate, Ownership Percentage | 25.00% | 25.00% | 25.00% | 25.00% |
Accounts Payable and Accrued 43
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 7,104 | $ 11,805 |
Accrued compensation and benefits | 13,915 | 22,501 |
Other accrued expenses | 10,317 | 8,239 |
Accounts payable and accrued expenses, total | $ 31,336 | $ 42,545 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |
Valuation Allowances and Reserves, Period Increase (Decrease) | $ 5,880 |
Valuation Allowances and Reserves, Deductions | $ (102) |
Income Taxes Components of Inco
Income Taxes Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Components of income tax expense [Line Items] | ||||
Current Income Tax Expense (Benefit) | $ 967 | $ (1,055) | $ 5,722 | $ (4,261) |
Deferred income taxes | 0 | 0 | 0 | 27,928 |
Income tax expense (benefit) | 967 | (1,055) | 5,722 | 23,667 |
UNITED STATES | ||||
Components of income tax expense [Line Items] | ||||
Current Income Tax Expense (Benefit) | 569 | (1,012) | 4,504 | (4,388) |
Deferred income taxes | 0 | 0 | 0 | 24,877 |
State and Local Jurisdiction [Member] | ||||
Components of income tax expense [Line Items] | ||||
Current Income Tax Expense (Benefit) | 398 | (43) | 1,218 | 127 |
Deferred income taxes | $ 0 | $ 0 | $ 0 | $ 3,051 |
Income Taxes Reconciliation of
Income Taxes Reconciliation of Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense at statutory rate | $ (1,032) | $ (2,158) | $ (577) | $ (5,294) |
State income taxes (benefits), net of federal tax benefit | 88 | (242) | 314 | (400) |
Increase in valuation allowance | 1,866 | 1,407 | 5,880 | 29,356 |
Other, net | 45 | (62) | 105 | (46) |
Income tax expense (benefit) | 967 | (1,055) | 5,722 | 23,667 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount | $ 0 | $ 0 | $ 0 | $ 51 |
Income Taxes Components of Defe
Income Taxes Components of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Income Tax Disclosure [Abstract] | ||
Deferred compensation | $ 2,332 | $ 2,083 |
Reserves and accruals | 5,062 | 5,417 |
Accrued tool sets | 1,157 | 1,188 |
Deferred revenue | 27,307 | 22,326 |
Deferred rent liability | 625 | 1,213 |
Deferred Tax Assets, Property, Plant and Equipment | 2,857 | 684 |
Deferred Tax Assets, Charitable Contribution Carryforwards | 474 | 671 |
Deferred tax assets, deductions limited by Section 382 | 860 | 592 |
Net operating loss carryovers | 413 | 479 |
Valuation Allowance | (38,606) | (32,828) |
Total gross deferred tax assets | 2,481 | 1,825 |
Amortization of goodwill | (3,141) | (3,141) |
Prepaid and other expenses deductible for tax | (2,481) | (1,825) |
Total gross deferred tax liabilities | (5,622) | (4,966) |
Net deferred tax assets (liabilities) | $ (3,141) | $ (3,141) |
Income Taxes Summary of Valuati
Income Taxes Summary of Valuation Allowance (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |
Beginning Balance Valuation Allowances and Reserves | $ 32,828 |
Valuation Allowances and Reserves, Period Increase (Decrease) | 5,880 |
Write-offs | 102 |
Ending Balance Valuation Allowances and Reserves | $ 38,606 |
Commitments and Contingencies49
Commitments and Contingencies (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Commitments and Contingencies (Textual) [Abstract] | ||||
Amount Of Loans Committed To Provide | $ 153 | $ 153 | ||
Loan Processing Fee | $ 300,000 | $ 300,000 | $ 1,000,000 | $ 1,100,000 |
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 | 109 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | |
Schedule of Impact of Proprietary Loan Program on our Tuition Revenue and Interest Income [Abstract] | |||||
Tuition and interest income excluded | $ 4,796 | $ 5,197 | $ 16,013 | $ 17,361 | $ 158,728 |
Amounts collected and recognized | (2,135) | (1,969) | (6,071) | (5,341) | (27,156) |
Net amount excluded during the period | $ 2,661 | $ 3,228 | $ 9,942 | $ 12,020 | $ 131,572 |
Commitments and Contingencies B
Commitments and Contingencies Balances Outstanding under Proprietary Loan Program (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 109 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Activity Related to Balances Outstanding under our Proprietary Loan Program [Abstract] | |||||||
Amounts Outstanding Under Our Proprietary Loan Program | $ 70,230 | $ 74,549 | $ 70,230 | $ 74,549 | $ 70,230 | $ 75,511 | $ 74,664 |
Loans extended | 11,041 | 13,483 | |||||
Interest accrued | 2,637 | 2,856 | |||||
Amounts collected and recognized | $ (2,135) | $ (1,969) | (6,071) | (5,341) | $ (27,156) | ||
Amounts written off | $ (12,888) | $ (11,113) |
Shareholders' Equity Shareholde
Shareholders' Equity Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 66 Months Ended | |||
Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 20, 2011 | |
Stockholders Equity Note [Line Items] | ||||||
Common Stock, Voting Rights | 1 | |||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Document Period End Date | Jun. 30, 2017 | |||||
Preferred stock, shares issued | 700,000 | 700,000 | 700,000 | |||
Preferred stock dividends | $ 2,618 | |||||
Dividends payable | $ 1,309 | $ 1,309 | $ 0 | $ 101 | ||
Repurchase of common stock authorized by Board of Directors | $ 25,000 | |||||
Purchased shares | 1,677,570 | |||||
Average price per share | $ 9.09 | |||||
Aggregate cost of treasury stock repurchased during the period | $ 15,300 | |||||
RightsExpirationDate | Feb. 21, 2017 | |||||
Series A Preferred Stock [Member] | ||||||
Stockholders Equity Note [Line Items] | ||||||
Preferred stock, shares issued | 700,000 | 700,000 | 700,000 | |||
Preferred Stock, Liquidation Preference Per Share | $ 100 | $ 100 | ||||
Preferred Stock, Dividend Rate, Percentage | 7.50% | |||||
Preferred Stock, Dividend Payment Rate, Variable | If we do not pay a Cash Dividend, the liquidation preference shall be increased to an amount equal to the current liquidation preference in effect plus an amount reflecting that liquidation preference multiplied by the Cash Dividend rate then in effect plus 2.0% per year (Accrued Dividend). |
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Weighted average number of shares | ||||
Basic | 24,748 | 24,345 | 24,679 | 24,283 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 0 | 0 | 0 |
Diluted | 24,748 | 24,345 | 24,679 | 24,283 |
Earnings per Share Schedule of
Earnings per Share Schedule of antidilutive securities (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 21,444,000 | 2,164,000 | 21,606,000 | 1,294,000 |
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 423,000 | 778,000 | 585,000 | 834,000 |
Convertible Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 21,021,000 | 1,386,000 | 21,021,000 | 460,000 |
Earnings per Share calculation
Earnings per Share calculation of earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Loss available for distribution | $ (5,226) | $ (5,170) | $ (11,298) | $ (38,852) |
Weighted Average Number of Shares Outstanding, Basic | 24,748 | 24,345 | 24,679 | 24,283 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 0 | 0 | 0 |
Weighted Average Number of Shares Outstanding, Diluted | 24,748 | 24,345 | 24,679 | 24,283 |
Loss per share - basic | $ (0.21) | $ (0.21) | $ (0.46) | $ (1.60) |
Loss per share - diluted | $ (0.21) | $ (0.21) | $ (0.46) | $ (1.60) |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | |||||
Depreciation on training equipment obtained in exchange for services | $ 300 | $ 400 | $ 960 | $ 1,000 | |
Revenues | |||||
Revenues | 76,258 | 82,266 | 242,934 | 260,231 | |
Income (loss) from operations | |||||
Loss from operations | (2,784) | (5,450) | (710) | (13,413) | |
Depreciation and amortization | |||||
Depreciation and amortization | 10,726 | 11,358 | |||
Total Depreciation and Amortization | 4,225 | 4,347 | 12,738 | 13,370 | |
Net income (loss) | |||||
Net loss | (3,917) | (5,069) | (7,371) | (38,751) | |
Goodwill | |||||
Goodwill | 9,005 | 9,005 | $ 9,005 | ||
Assets | |||||
Total assets | 256,772 | 256,772 | 297,159 | ||
Postsecondary education | |||||
Revenues | |||||
Revenues | 72,568 | 79,156 | 231,282 | 250,558 | |
Income (loss) from operations | |||||
Loss from operations | (2,081) | (4,297) | 1,141 | (10,206) | |
Depreciation and amortization | |||||
Depreciation and amortization | 4,115 | 4,180 | 12,455 | 12,902 | |
Net income (loss) | |||||
Net loss | (3,393) | (4,426) | (6,807) | (37,366) | |
Goodwill | |||||
Goodwill | 8,222 | 8,222 | 8,222 | ||
Assets | |||||
Total assets | 249,220 | 249,220 | 289,688 | ||
Other | |||||
Revenues | |||||
Revenues | 3,690 | 3,110 | 11,652 | 9,673 | |
Income (loss) from operations | |||||
Loss from operations | (703) | (1,153) | (1,851) | (3,207) | |
Depreciation and amortization | |||||
Depreciation and amortization | 110 | 167 | 283 | 468 | |
Net income (loss) | |||||
Net loss | (524) | $ (643) | (564) | $ (1,385) | |
Goodwill | |||||
Goodwill | 783 | 783 | 783 | ||
Assets | |||||
Total assets | $ 7,552 | $ 7,552 | $ 7,471 |
Government Regulation and Fin57
Government Regulation and Financial Aid Narrative (Details) $ in Millions | Jun. 30, 2017USD ($) |
ARIZONA | |
Other Commitments [Line Items] | |
Debt Instrument, Collateral Amount | $ 3 |