Cover Page
Cover Page - shares | 6 Months Ended | |
Mar. 31, 2021 | May 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-31923 | |
Entity Registrant Name | UNIVERSAL TECHNICAL INSTITUTE, INC | |
Entity Central Index Key | 0001261654 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 86-0226984 | |
Entity Address, Address Line One | 4225 East Windrose Drive | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Phoenix | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85032 | |
City Area Code | 623 | |
Local Phone Number | 445-9500 | |
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Trading Symbol | UTI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 32,813,845 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 |
Assets | |||
Cash and cash equivalents | $ 58,965 | $ 76,803 | $ 76,606 |
Restricted cash | 12,817 | 12,116 | 14,235 |
Held-to-maturity investments | 19,502 | 38,055 | |
Receivables, net | 19,809 | 35,411 | |
Notes receivable, current portion | 5,307 | 5,184 | |
Prepaid expenses | 8,262 | 6,121 | |
Other current assets | 6,431 | 6,489 | |
Total current assets | 131,093 | 180,179 | |
Property and equipment, net | 114,921 | 72,743 | |
Goodwill | 8,222 | 8,222 | |
Notes receivable, less current portion | 28,996 | 27,609 | |
Right-of-use assets for operating leases | 147,651 | 144,663 | |
Other assets | 9,462 | 8,565 | |
Total assets | 440,345 | 441,981 | |
Liabilities and Shareholders’ Equity | |||
Accounts payable and accrued expenses | 49,088 | 51,891 | |
Deferred revenue | 40,954 | 40,694 | |
Accrued tool sets | 3,251 | 3,148 | |
Operating lease liability, current portion | 19,565 | 23,666 | |
Other current liabilities | 1,901 | 2,241 | |
Total current liabilities | 114,759 | 121,640 | |
Deferred tax liabilities, net | 674 | 674 | |
Operating lease liability | 140,136 | 134,089 | |
Other liabilities | 8,318 | 9,056 | |
Total liabilities | 263,887 | 265,459 | |
Commitments and contingencies | |||
Shareholders’ equity: | |||
Common stock, $0.0001 par value, 100,000 shares authorized, 32,896 and 32,730 shares issued | 3 | 3 | |
Preferred stock, $0.0001 par value, 10,000 shares authorized; 700 shares of Series A Convertible Preferred Stock issued and outstanding, liquidation preference of $100 per share | 0 | 0 | |
Paid-in capital - common | 142,383 | 141,002 | |
Paid-in capital - preferred | 68,853 | 68,853 | |
Treasury stock, at cost, 82 shares as of March 31, 2021 and September 30, 2020 | (365) | (365) | |
Retained deficit | (34,416) | (32,971) | |
Total shareholders’ equity | 176,458 | 176,522 | $ 185,056 |
Total liabilities and shareholders’ equity | $ 440,345 | $ 441,981 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 32,896,000 | 32,730,000 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock (in shares) | 10,000,000 | 10,000,000 |
Preferred stock (in shares) | 700,000 | 700,000 |
Preferred stock, shares outstanding | 700,000 | 700,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 100 | $ 100 |
Treasury stock, shares, at cost | 82,000 | 82,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 77,709 | $ 82,717 | $ 153,834 | $ 169,951 |
Operating expenses: | ||||
Educational services and facilities | 40,480 | 42,909 | 79,811 | 85,785 |
Selling, general and administrative | 38,890 | 40,307 | 74,909 | 80,411 |
Total operating expenses | 79,370 | 83,216 | 154,720 | 166,196 |
(Loss) income from operations | (1,661) | (499) | (886) | 3,755 |
Other income (expense): | ||||
Interest income | 8 | 347 | 62 | 683 |
Interest expense | (1) | (3) | (3) | (3) |
Other income (expense), net | 73 | (507) | 355 | (329) |
Total other income (expense), net | 80 | (163) | 414 | 351 |
(Loss) income before income taxes | (1,581) | (662) | (472) | 4,106 |
Income tax benefit | 34 | 10,804 | 8 | 10,720 |
Net (loss) income | (1,547) | 10,142 | (464) | 14,826 |
Preferred stock dividends | 1,312 | 1,309 | 2,625 | 2,632 |
Net (loss) income available for distribution | $ (2,859) | $ 8,833 | $ (3,089) | $ 12,194 |
Earnings per share [Abstract] | ||||
Net (loss) income per share - basic (in dollars per share) | $ (0.09) | $ 0.18 | $ (0.09) | $ 0.25 |
Net (loss) income per share - diluted (in dollars per share) | $ (0.09) | $ 0.18 | $ (0.09) | $ 0.25 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 32,762 | 28,379 | 32,709 | 27,013 |
Diluted (in shares) | 32,762 | 28,644 | 32,709 | 27,320 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Preferred Stock | Treasury Stock | Retained Deficit | Retained DeficitCumulative Effect, Period of Adoption, Adjustment | Common StockPaid-in Capital | Preferred StockPaid-in Capital |
Beginning Balance at Sep. 30, 2019 | $ 114,288 | $ 3 | $ 0 | $ (97,388) | $ (44,673) | $ 187,493 | $ 68,853 | ||
Beginning Balance (Accounting Standards Update 2016-02) at Sep. 30, 2019 | $ 9,107 | $ 9,107 | |||||||
Beginning Balance (in shares) at Sep. 30, 2019 | 32,499 | 700 | 6,865 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 4,684 | 4,684 | |||||||
Issuance of common stock under employee plans (in shares) | 179 | ||||||||
Shares withheld for payroll taxes | (497) | (497) | |||||||
Shares withheld for payroll taxes (in shares) | (68) | ||||||||
Stock-based compensation | 14 | 14 | |||||||
Preferred stock dividends | (1,323) | (1,323) | |||||||
Ending Balance at Dec. 31, 2019 | 126,273 | (149) | $ 3 | $ 0 | $ (97,388) | (32,205) | (149) | 187,010 | 68,853 |
Ending Balance (in shares) at Dec. 31, 2019 | 32,610 | 700 | 6,865 | ||||||
Beginning Balance at Sep. 30, 2019 | 114,288 | $ 3 | $ 0 | $ (97,388) | (44,673) | 187,493 | 68,853 | ||
Beginning Balance (Accounting Standards Update 2016-02) at Sep. 30, 2019 | 9,107 | 9,107 | |||||||
Beginning Balance (in shares) at Sep. 30, 2019 | 32,499 | 700 | 6,865 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 14,826 | ||||||||
Ending Balance at Mar. 31, 2020 | $ 185,056 | $ 3 | $ 0 | $ (365) | (23,521) | 140,086 | 68,853 | ||
Ending Balance (in shares) at Mar. 31, 2020 | 32,687 | 700 | 82 | ||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 | us-gaap:AccountingStandardsUpdate201905Member | ||||||||
Beginning Balance at Sep. 30, 2019 | $ 114,288 | $ 3 | $ 0 | $ (97,388) | (44,673) | 187,493 | 68,853 | ||
Beginning Balance (Accounting Standards Update 2016-02) at Sep. 30, 2019 | 9,107 | 9,107 | |||||||
Beginning Balance (in shares) at Sep. 30, 2019 | 32,499 | 700 | 6,865 | ||||||
Ending Balance at Sep. 30, 2020 | 176,522 | $ 3 | $ 0 | $ (365) | (32,971) | 141,002 | 68,853 | ||
Ending Balance (Accounting Standards Update 2016-13) at Sep. 30, 2020 | 1,644 | 1,644 | |||||||
Ending Balance (in shares) at Sep. 30, 2020 | 32,730 | 700 | 82 | ||||||
Beginning Balance at Dec. 31, 2019 | 126,273 | (149) | $ 3 | $ 0 | $ (97,388) | (32,205) | (149) | 187,010 | 68,853 |
Beginning Balance (in shares) at Dec. 31, 2019 | 32,610 | 700 | 6,865 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 10,142 | 10,142 | |||||||
Issuance of common stock under employee plans (in shares) | 81 | ||||||||
Shares withheld for payroll taxes | (30) | (30) | |||||||
Shares withheld for payroll taxes (in shares) | (4) | ||||||||
Stock-based compensation | 992 | 992 | |||||||
Shares issued for equity offering | 49,137 | $ 97,023 | (47,886) | ||||||
Shares issued for equity offering (in shares) | 6,783 | ||||||||
Preferred stock dividends | (1,309) | (1,309) | |||||||
Ending Balance at Mar. 31, 2020 | 185,056 | $ 3 | $ 0 | $ (365) | (23,521) | 140,086 | 68,853 | ||
Ending Balance (in shares) at Mar. 31, 2020 | 32,687 | 700 | 82 | ||||||
Beginning Balance at Sep. 30, 2020 | 176,522 | $ 3 | $ 0 | $ (365) | (32,971) | 141,002 | 68,853 | ||
Beginning Balance (in shares) at Sep. 30, 2020 | 32,730 | 700 | 82 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 1,083 | 1,083 | |||||||
Issuance of common stock under employee plans (in shares) | 66 | ||||||||
Shares withheld for payroll taxes | (178) | (178) | |||||||
Shares withheld for payroll taxes (in shares) | (29) | ||||||||
Stock-based compensation | 548 | 548 | |||||||
Preferred stock dividends | (1,313) | (1,313) | |||||||
Ending Balance at Dec. 31, 2020 | 178,306 | $ 3 | $ 0 | $ (365) | (31,557) | 141,372 | 68,853 | ||
Ending Balance (in shares) at Dec. 31, 2020 | 32,767 | 700 | 82 | ||||||
Beginning Balance at Sep. 30, 2020 | 176,522 | $ 3 | $ 0 | $ (365) | (32,971) | 141,002 | 68,853 | ||
Beginning Balance (Accounting Standards Update 2016-13) at Sep. 30, 2020 | $ 1,644 | $ 1,644 | |||||||
Beginning Balance (in shares) at Sep. 30, 2020 | 32,730 | 700 | 82 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (464) | ||||||||
Ending Balance at Mar. 31, 2021 | 176,458 | $ 3 | $ 0 | $ (365) | (34,416) | 142,383 | 68,853 | ||
Ending Balance (in shares) at Mar. 31, 2021 | 32,896 | 700 | 82 | ||||||
Beginning Balance at Dec. 31, 2020 | 178,306 | $ 3 | $ 0 | $ (365) | (31,557) | 141,372 | 68,853 | ||
Beginning Balance (in shares) at Dec. 31, 2020 | 32,767 | 700 | 82 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (1,547) | (1,547) | |||||||
Issuance of common stock under employee plans (in shares) | 164 | ||||||||
Shares withheld for payroll taxes | (223) | (223) | |||||||
Shares withheld for payroll taxes (in shares) | (35) | ||||||||
Stock-based compensation | 1,234 | 1,234 | |||||||
Preferred stock dividends | (1,312) | (1,312) | |||||||
Ending Balance at Mar. 31, 2021 | $ 176,458 | $ 3 | $ 0 | $ (365) | $ (34,416) | $ 142,383 | $ 68,853 | ||
Ending Balance (in shares) at Mar. 31, 2021 | 32,896 | 700 | 82 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||||||||
Net (loss) income | $ (1,547) | $ 1,083 | $ 10,142 | $ 4,684 | $ (464) | $ 14,826 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 6,851 | 5,894 | ||||||
Amortization of right-of-use assets for operating leases | 8,117 | 11,840 | ||||||
Bad debt expense | 415 | 571 | ||||||
Stock-based compensation | 1,782 | 1,006 | ||||||
Deferred income taxes | 0 | 345 | ||||||
Training equipment credits earned, net | 155 | 419 | ||||||
Other losses, net | (135) | 227 | ||||||
Changes in assets and liabilities: | ||||||||
Receivables | 12,277 | 3,058 | ||||||
Prepaid expenses | (2,987) | (1,347) | ||||||
Other assets | (535) | 16 | ||||||
Notes receivable | 134 | 652 | ||||||
Accounts payable and accrued expenses | (1,480) | 4,784 | ||||||
Deferred revenue | 260 | (6,132) | ||||||
Income tax receivable | 2,685 | (10,893) | ||||||
Accrued tool sets and other current liabilities | 244 | 11 | ||||||
Operating lease liability | (9,159) | (12,734) | ||||||
Other liabilities | (633) | (1,646) | ||||||
Net cash provided by operating activities | 17,527 | 10,897 | ||||||
Cash flows from investing activities: | ||||||||
Payments to Acquire Held-to-maturity Securities | 0 | (41,562) | ||||||
Proceeds from maturities of held-to-maturity securities | 18,189 | 0 | ||||||
Purchase of property and equipment | (49,919) | (5,164) | ||||||
Proceeds from disposal of property and equipment | 6 | 32 | ||||||
Return of capital contribution from unconsolidated affiliate | 150 | 142 | ||||||
Net cash used in investing activities | (31,574) | (46,552) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from equity offering | $ 49,500 | 0 | 49,137 | |||||
Payment of preferred stock cash dividend | (2,625) | (2,632) | ||||||
Payment of finance leases | (64) | (37) | ||||||
Payment of payroll taxes on stock-based compensation through shares withheld | (401) | (527) | ||||||
Net cash (used in) provided by financing activities | (3,090) | 45,941 | ||||||
Change in cash, cash equivalents and restricted cash | (17,137) | 10,286 | ||||||
Cash and cash equivalents, beginning of period | 76,803 | 76,606 | 65,442 | 76,803 | 65,442 | $ 65,442 | ||
Restricted cash, beginning of period | 12,116 | 14,235 | 15,113 | 12,116 | 15,113 | 15,113 | ||
Cash, cash equivalents and restricted cash, beginning of period | $ 88,919 | $ 90,841 | $ 80,555 | 88,919 | 80,555 | 80,555 | ||
Cash and cash equivalents, end of period | 58,965 | 76,606 | 58,965 | 76,606 | 76,803 | |||
Restricted cash, end of period | 12,817 | 14,235 | 12,817 | 14,235 | 12,116 | |||
Cash, cash equivalents and restricted cash, end of period | 71,782 | 90,841 | 71,782 | 90,841 | 88,919 | |||
Supplemental disclosure of cash flow information: | ||||||||
Tax refund | (2,693) | (172) | $ (11,300) | |||||
Interest paid | 3 | 3 | ||||||
Training equipment obtained in exchange for services | 227 | 250 | ||||||
Depreciation of training equipment obtained in exchange for services | 300 | 300 | 646 | 678 | ||||
Change in accrued capital expenditures during the period | 1,098 | 111 | ||||||
CARES Act funds received for institutional costs (See Note 18) | $ 880 | $ 0 | $ 880 | $ 0 |
Nature of the Business
Nature of the Business | 6 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business | 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 enrollment and graduates. We also provide programs for welders and computer numeric control (“CNC”) machining technicians. We offer certificate, diploma or degree programs at 12 campuses across the United States under the banner of several well-known brands, including Universal Technical Institute, Motorcycle Mechanics Institute, 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. Founded in 1965, we have provided technical education for more than 55 years and have graduated more than 220,000 technicians. We work closely with over 35 original equipment manufacturers and industry brand partners to understand their needs for qualified service professionals. Revenues generated from our schools consist primarily of tuition and fees paid by students. To pay for a substantial portion of their tuition, the majority of students rely on funds received from federal financial aid programs under Title IV Programs of the Higher Education Act of 1965, as amended (“HEA”), as well as from various veterans benefits programs. For further discussion, see Note 2 on “Summary of Significant Accounting Policies - Concentration of Risk” and Note 20 on “Government Regulation and Financial Aid” included in our 2020 Annual Report on Form 10-K filed with the SEC on December 3, 2020. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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 six months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending September 30, 2021. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2020 Annual Report on Form 10-K filed with the SEC on December 3, 2020. 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Effective the First Quarter of Fiscal 2021 In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) . This update significantly changes the way that entities measure credit losses. The new standard requires that entities estimate credit losses based upon an “expected credit loss” approach rather than the historical “incurred loss” approach. The new approach requires entities to measure all expected credit losses for financial assets based on historical experience, current conditions and reasonable forecasts of collectability. The change in approach impacts the timing of recognition of credit losses. This standard is effective for financial statements issued by public companies for annual and interim periods beginning after December 15, 2019. These changes became effective for our fiscal year beginning October 1, 2020. Upon adoption on October 1, 2020, we recorded an increase in our receivables balance related to our proprietary loan program of $1.6 million, with the corresponding amount recorded as an increase to retained earnings. No other adjustments were deemed necessary in applying this new guidance. Effective the First Quarter of Fiscal 2022 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The amendments in this standard simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. We are currently evaluating the impact that the update will have on our results of operations, financial condition and financial statement disclosures. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Nature of Goods and Services Postsecondary Education Revenues consist primarily of student tuition and fees derived from the programs we provide after reductions are made for discounts and scholarships that we sponsor and for refunds for students who withdraw from our programs prior to specified dates. We apply the five-step model outlined in ASC 606, Revenue from Contracts from Customers . Tuition and fee revenue is recognized ratably over the term of the course or program offered. The majority of our programs are designed to be completed in 36 to 90 weeks, and our advanced training programs range from 12 to 23 weeks in duration. We supplement our revenues with sales of textbooks and program supplies and other revenues, which are recognized as the transfer of goods or services occurs. Deferred revenue represents the excess of tuition and fee payments received as compared to tuition and fees earned and is reflected as a current liability in our condensed consolidated balance sheets because it is expected to be earned within the next 12 months. Additionally, certain students participate in a proprietary loan program that extends repayment terms for their tuition. We purchase said loans from the lender and, based on historical collection rates, believe a portion of these loans are collectible. Accordingly, we recognize tuition and loan origination fees financed by the loan and any related interest revenue under the effective interest method required under the loan based on the amount we expect to collect, and we recognize these revenues ratably over the term of the course or program offered. Other We provide dealer technician training or instructor staffing services to manufacturers. Revenues are recognized as transfer of the services occurs. We provide postsecondary education and other services in the same geographical market, the United States. The impact of economic factors on the nature, amount, timing and uncertainty of revenue and cash flows is consistent among our various postsecondary education programs. See Note 16 for disaggregated segment revenue information. Contract Balances Contract assets primarily relate to our rights to consideration for a student’s progress through our training program in relation to our services performed but not billed at the reporting date. The contract assets are transferred to the receivables when the rights become unconditional. Currently, we do not have any contract assets that have not transferred to a receivable. Our deferred revenue is considered a contract liability and primarily relates to our enrollment agreements where we received payments for tuition but we have not yet delivered the related training programs to satisfying the related performance obligations. The advance consideration received from students or Title IV funding is deferred revenue until the training program has been delivered to the students. The following table provides information about receivables and deferred revenue resulting from our enrollment agreements with students: March 31, 2021 September 30, 2020 Receivables, which includes tuition and notes receivable $ 43,103 $ 53,144 Deferred revenue 40,954 40,694 During the six months ended March 31, 2021, the deferred revenue balance included decreases for revenues recognized during the period and increases related to new students who started their training programs during the period. Transaction Price Allocated to the Remaining Performance Obligations Tuition and fee revenue is recognized ratably over the term of the course or program offered. The majority of our undergraduate programs are designed to be completed in 36 to 90 weeks, and our advanced training programs range from 12 to 23 weeks in duration. Impacts of COVID-19 As previously noted, during the year ended September 30, 2020, we transitioned our on-campus, in-person education model to a blended training model that combines instructor-facilitated online teaching and demonstrations with hands-on labs so that our students could continue their education during the COVID-19 pandemic. On-campus labs have been re-designed to meet the health, safety and social distancing guidelines recommended or required by the Centers for Disease Control (“CDC”) and state and local jurisdictions, while still meeting our accreditation and curriculum requirements. |
Investments
Investments | 6 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments During the second quarter of 2020, we raised approximately $49.5 million in net proceeds from an underwritten public offering of shares of our common stock. See Note 15 on “Shareholders’ Equity - Equity Offering” included in our 2020 Annual Report on Form 10-K filed with the SEC on December 3, 2020 for further details on the equity offering. We invested a portion of the proceeds from the equity offering in held-to-maturity securities, which primarily consist of 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 these investments until maturity and therefore have classified these investments as held-to-maturity and recorded them at amortized cost. The amortized cost, gross unrealized gains or losses, and fair value of investments classified as held-to-maturity at March 31, 2021 and September 30, 2020 were as follows: March 31, 2021 Gross Unrealized Estimated Fair Due in less than 1 year: Amortized Cost Gains Losses Market Value Corporate and municipal bonds $ 19,502 $ 1 $ (7) $ 19,496 September 30, 2020 Gross Unrealized Estimated Fair Due in less than 1 year: Amortized Cost Gains Losses Market Value Corporate and municipal bonds $ 38,055 $ 10 $ (33) $ 38,032 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2021 | |
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. 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 March 31, 2021 Quoted Prices Significant Significant Money market funds (1) $ 42,351 $ 42,351 $ — $ — Notes receivable (2) 34,303 — — 34,303 Corporate bonds (3) 16,009 16,009 — — Municipal bonds and other (3) 3,487 3,487 — — Total assets at fair value on a recurring basis $ 96,150 $ 61,847 $ — $ 34,303 Fair Value Measurements Using September 30, 2020 Quoted Prices Significant Significant Money market funds (1) $ 43,322 $ 43,322 $ — $ — Notes receivable (2) 32,793 — — 32,793 Corporate bonds (3) 33,119 33,119 — — Municipal bonds and other (3) 4,913 4,913 — — Total assets at fair value on a recurring basis $ 114,147 $ 81,354 $ — $ 32,793 (1) Money market funds and other highly liquid investments with maturity dates less than 90 days are reflected as “Cash and cash equivalents” in our condensed consolidated balance sheet as of March 31, 2021 and September 30, 2020. (2) Notes receivable relate to our proprietary loan program. |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net consisted of the following: Depreciable March 31, 2021 September 30, 2020 Land (1) — $ 8,355 $ 3,189 Buildings and building improvements (1) 3-35 68,282 28,046 Leasehold improvements 1-28 64,232 62,899 Training equipment 3-10 92,250 91,731 Office and computer equipment 3-10 32,641 33,524 Curriculum development 5 19,692 19,692 Software developed for internal use 1-5 11,959 11,951 Vehicles 5 1,460 1,502 Right-of-use assets for finance leases 2-3 359 359 Construction in progress — 1,276 2,213 300,506 255,106 Less: Accumulated depreciation and amortization (185,585) (182,363) $ 114,921 $ 72,743 (1) During the six months ended March 31, 2021, land and buildings and building improvements increased due to the purchase of the building and land at our Avondale, Arizona campus location. The total purchase price was approximately $45.2 million, of which $5.1 million was allocated to land and $40.1 million was allocated to buildings and building improvements based upon the appraised values. |
Goodwill
Goodwill | 6 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GoodwillOur goodwill balance of $8.2 million as of March 31, 2021 resulted from the acquisition of our motorcycle and marine education business in Orlando, Florida in 1998 and relates to our Postsecondary Education segment. Goodwill represents the excess of the cost of an acquired business over the estimated fair values of the assets acquired and liabilities assumed. Goodwill is reviewed at least annually for impairment, which may result from the deterioration in the operating performance of the acquired business, adverse market conditions, adverse changes in applicable laws or regulations and a variety of other circumstances. Any resulting impairment charge would be recognized as an expense in the period in which impairment is identified. As of March 31, 2021 , while some students were taking longer than normal to graduate from their programs due to the impacts of the COVID-19 pandemic on our business, students enrolled at our Orlando, Florida campus continue to progress through their programs under the new blended training model. There were no indicators of goodwill impairment as of March 31, 2021 |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliate | 6 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Affiliate | Investment in Unconsolidated Affiliate In 2012, we invested $4.0 million to acquire an equity interest of approximately 28% in a joint venture (“JV”) related to the lease of our Lisle, Illinois campus facility. In connection with this investment, we do not possess a controlling financial interest as we do not hold a majority of the equity interest, nor do we have the power to make major decisions without approval from the other equity member. Therefore, we do not qualify as the primary beneficiary. Accordingly, this investment is accounted for under the equity method of accounting. We recognize our proportionate share of the JV's net income or loss during each accounting period and any return of capital as a change in our investment. Investment in unconsolidated affiliate consisted of the following and is included within “Other assets” on our condensed consolidated balance sheets: March 31, 2021 September 30, 2020 Carrying Value Ownership Percentage Carrying Value Ownership Percentage Investment in JV $ 4,559 28.0 % $ 4,494 28.0 % Investment in unconsolidated affiliate included the following activity during the period: Six Months Ended March 31, 2021 2020 Balance at beginning of period $ 4,494 $ 4,338 Equity in earnings of unconsolidated affiliate 215 205 Return of capital contribution from unconsolidated affiliate (150) (142) Balance at end of period $ 4,559 $ 4,401 |
Leases
Leases | 6 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases As of March 31, 2021, we leased 9 of our 12 campuses and our corporate headquarters under non-cancelable operating leases, some of which contain escalation clauses and requirements to pay other fees associated with the leases. The facility leases have original lease terms ranging from 8 to 20 years and expire at various dates through 2031. In addition, the leases commonly include lease incentives in the form of rent abatements and tenant improvement allowances. We sublease certain portions of unused building space to third parties, which as of March 31, 2021, resulted in minimal income. All of the leases, other than those that may qualify for the short-term scope exception of 12 months or less, are recorded on our condensed consolidated balance sheets. Some of the facility leases are subject to annual changes in the Consumer Price Index (“CPI”). While lease liabilities are not remeasured as a result of changes to the CPI, changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. Many of our lease agreements include options to extend the lease, which we do not include in our minimum lease terms unless they are reasonably certain to be exercised. There are no early termination with penalties, residual value guarantees, restrictions or covenants imposed by our facility leases. The components of lease expense are included in “Educational services and facilities” and “Selling, general and administrative” on the condensed consolidated statement of operations, with the exception of interest on lease liabilities, which is included in “Interest expense.” The components of lease expense during the three months and six months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, Six Months Ended March 31, Lease Expense 2021 2020 2021 2020 Operating lease expense (1) $ 5,458 $ 7,462 $ 11,590 $ 14,984 Finance lease expense: Amortization of leased assets 33 38 65 38 Interest on lease liabilities 1 3 3 3 Variable lease expense 950 1,180 1,857 2,179 Sublease income (123) (156) (246) (507) Total net lease expense $ 6,319 $ 8,527 $ 13,269 $ 16,697 (1) Excludes the expense for short-term leases not accounted for under ASC 842, which was not significant for the three and six months ended March 31, 2021 and 2020. Supplemental balance sheet, cash flow and other information related to our leases was as follows (in thousands, except lease term and discount rate): Leases Classification March 31, 2021 September 30, 2020 Assets: Operating lease assets Right-of-use assets for operating leases $ 147,651 $ 144,663 Finance lease assets Property and equipment, net (1) 192 257 Total leased assets $ 147,843 $ 144,920 Liabilities: Current Operating lease liabilities Operating lease liability, current portion $ 19,565 $ 23,666 Finance lease liabilities Other current liabilities 131 129 Noncurrent Operating lease liabilities Operating lease liability 140,136 134,089 Finance lease liabilities Other liabilities 65 131 Total lease liabilities $ 159,897 $ 158,015 (1) Finance lease assets are recorded net of accumulated amortization of $0.2 million and $0.1 million as of March 31, 2021 and September 30, 2020, respectively. Lease Term and Discount Rate March 31, 2021 September 30, 2020 Weighted-average remaining lease term (in years): Operating leases 9.68 9.34 Finance leases 1.58 2.05 Weighted average discount rate: Operating leases 4.54 % 4.37 % Finance leases 3.08 % 3.08 % Six Months Ended March 31, Supplemental Disclosure of Cash Flow Information and Other Information 2021 2020 Non-cash activity related to lease liabilities: Lease assets obtained in exchange for new operating lease liabilities (1) $ 11,105 $ 21 Leases assets obtained in exchange for new finance lease liabilities — 205 (1) Excludes the impact of the opening balance adjustment for the adoption of ASC 842 as of October 1, 2019 for the six months ended March 31, 2020. Maturities of lease liabilities were as follows: As of March 31, 2021 Years ending September 30, Operating Leases Finance Leases Remainder of 2021 $ 12,205 $ 67 2022 23,823 110 2023 19,035 23 2024 18,765 — 2025 18,993 — 2026 and thereafter 104,647 — Total lease payments 197,468 200 Less: interest (37,767) (4) Present value of lease liabilities 159,701 196 Less: current lease liabilities (19,565) (131) Long-term lease liabilities $ 140,136 $ 65 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 6 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: March 31, 2021 September 30, 2020 Accounts payable $ 10,571 $ 12,471 Accrued compensation and benefits 26,564 28,053 Other accrued expenses 11,953 11,367 Total accounts payable and accrued expenses $ 49,088 $ 51,891 |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax benefit for the three months ended March 31, 2021 was $34 thousand, or 2.2% of pre-tax loss, compared to $10.8 million, or 1,632.0% of pre-tax loss, for the three months ended March 31, 2020. For the six months ended March 31, 2021, our income tax benefit was $8.0 thousand, or 1.7% of pre-tax loss, compared to $10.7 million, or 261.1% of pre-tax income, for the six months ended March 31, 2020. The effective income tax rate in each period differed from the federal statutory tax rate of 21% primarily as a result of changes in the valuation allowance, state taxes and the impact of net operating loss carrybacks recognized in the prior year as a result of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The balance of the valuation allowance for our deferred tax assets was $17.5 million and $17.4 million as of March 31, 2021 and September 30, 2020, respectively. As discussed in Note 13 on “Income Taxes” in our 2020 Annual Report on Form 10-K filed with the SEC on December 3, 2020, during the year ended September 30, 2020, we recorded an income tax refund of approximately $11.3 million as a result of certain provisions of the CARES Act, of which $7.1 million remained outstanding as of September 30, 2020. During the six months ended March 31, 2021, we received approximately $2.7 million in refunds, leaving $4.3 million as an income tax receivable recorded in “Receivable, net” on the condensed consolidated balance sheet as of March 31, 2021. We expect to receive the remaining $4.3 million subsequent to the filing of our consolidated tax return for our fiscal 2020 later this year. As of March 31, 2021, we continued to have a full valuation allowance against all deferred tax assets that rely upon future taxable income for their realization and 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. 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 is given to subjective evidence such as our projections for growth. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2021 | |
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 and results of operations or financial condition. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
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 March 31, 2021 and September 30, 2020, 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 March 31, 2021 and September 30, 2020. Pursuant to the terms of the Certificate of Designations of the Series A Preferred Stock, 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 during the three months ended March 31, 2021. For further discussion of our preferred stock, see Note 15 on “Shareholders’ Equity” included in our 2020 Annual Report on Form 10-K filed with the SEC on December 3, 2020. Share Repurchase Program |
Earnings per Share
Earnings per Share | 6 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share We calculate basic earnings per common share (“EPS”) pursuant to the two-class method as a result of the issuance of the Series A Preferred Stock on June 24, 2016. 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. The two-class method is an earnings allocation formula that determines EPS 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 EPS 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. Diluted EPS is calculated using the more dilutive of the two-class method or as-converted method. The two-class method uses net income available to common shareholders and assumes conversion of all potential shares other than the participating securities. The as-converted method uses net income and assumes conversion of all potential shares including the participating securities. Dilutive potential common shares include outstanding stock options, unvested restricted share units and convertible preferred stock. The basic and diluted weighted average shares outstanding are the same for the three months and six months ended March 31, 2021 as a result of the net loss available to common shareholders and anti-dilutive impact of the potentially dilutive securities. Subsequent to the issuance of our March 31, 2020 interim financial statements, we identified that the diluted EPS disclosures incorrectly stated that diluted EPS for the three and six months ended March 31, 2020 was calculated using the as-converted method and not the two-class method, when in fact diluted EPS was correctly calculated internally using the two-class method. The table in the disclosure summarizing the computation of diluted EPS incorrectly added back “Income allocated to participating securities” to what is equivalent to “Net income available to common shareholders” shown below and incorrectly included the corresponding 21,021 weighted average diluted participating shares outstanding in diluted shares outstanding. The disclosure errors had no impact on reported net income per diluted share for the three and six months ended March 31, 2020. The disclosures below have been corrected to appropriately reflect diluted EPS under the two-class method for the three and six months ended March 31, 2020. We have concluded that these corrections were not material to the previously issued condensed consolidated financial statements for the three and six months ended March 31, 2020. The following table summarizes the computation of basic and diluted EPS under the two-class or as-converted method, as well as the anti-dilutive shares excluded: Three Months Ended Six Months Ended March 31, March 31, 2021 2020 2021 2020 Basic earnings per common share: Net (loss) income $ (1,547) $ 10,142 $ (464) $ 14,826 Less: Preferred stock dividend declared (1,312) (1,309) (2,625) (2,632) Net (loss) income available for distribution (2,859) 8,833 (3,089) 12,194 Income allocated to participating securities — (3,759) — (5,336) Net (loss) income available to common shareholders $ (2,859) $ 5,074 $ (3,089) $ 6,858 Weighted average basic shares outstanding 32,762 28,379 32,709 27,013 Basic (loss) income per common share $ (0.09) $ 0.18 $ (0.09) $ 0.25 Diluted earnings per common share: Method used: Two-class Two-class Two-class Two-class Net (loss) income available to common shareholders $ (2,859) $ 5,074 $ (3,089) $ 6,858 Weighted average basic shares outstanding 32,762 28,379 32,709 27,013 Dilutive effect related to employee stock plans — 265 — 307 Weighted average diluted shares outstanding 32,762 28,644 32,709 27,320 Diluted (loss) income per common share $ (0.09) $ 0.18 $ (0.09) $ 0.25 Anti-dilutive shares excluded: Outstanding stock-based grants 467 8 677 133 Convertible preferred stock 21,021 21,021 21,021 21,021 Total anti-dilutive shares excluded 21,488 21,029 21,698 21,154 Dilutive shares under the as-converted method (1) 54,065 49,665 54,003 48,341 |
Segment Information
Segment Information | 6 Months Ended |
Mar. 31, 2021 | |
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 investment 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. Summary information by reportable segment was as follows: Postsecondary Education Other Consolidated Three Months Ended March 31, 2021 Revenues $ 74,846 $ 2,863 $ 77,709 Loss from operations (1,322) (339) (1,661) Depreciation and amortization (1) 3,547 22 3,569 Net loss (1,208) (339) (1,547) Three Months Ended March 31, 2020 Revenues $ 78,261 $ 4,456 $ 82,717 (Loss) Income from operations (591) 92 (499) Depreciation and amortization (2) 2,854 27 2,881 Net income 10,050 92 10,142 Six Months Ended March 31, 2021 Revenues $ 148,406 $ 5,428 $ 153,834 Loss from operations (218) (668) (886) Depreciation and amortization (1) 6,805 46 6,851 Net income (loss) 204 (668) (464) Six Months Ended March 31, 2020 Revenues $ 161,581 $ 8,370 $ 169,951 Income (loss) from operations 4,010 (255) 3,755 Depreciation and amortization (2) 5,825 69 5,894 Net income (loss) 15,081 (255) 14,826 As of March 31, 2021 Total assets $ 433,708 $ 6,637 $ 440,345 As of September 30, 2020 Total assets $ 435,144 $ 6,837 $ 441,981 (1) Includes depreciation of training equipment obtained in exchange for services of $0.3 million and $0.6 million for the three months and six months ended March 31, 2021, respectively. |
Government Regulation and Finan
Government Regulation and Financial Aid | 6 Months Ended |
Mar. 31, 2021 | |
Government Regulation and Financial Aid [Abstract] | |
Government Regulation And Financial Aid | Government Regulation and Financial Aid As discussed at length in our 2020 Annual Report on Form 10-K filed with the SEC on December 3, 2020, our institutions participate in a range of government-sponsored student assistance programs. The most significant of these is the federal student aid programs administered by the U.S. Department of Education (“ED”) pursuant to Title IV of the Higher Education Act (“HEA”), commonly referred to as the Title IV Programs. Generally, to participate in the Title IV Programs, an institution must be licensed or otherwise legally authorized to operate in the state where it is physically located, be accredited by an accreditor recognized by ED, be certified as an eligible institution by ED, offer at least one eligible program of education, and comply with other statutory and regulatory requirements. See “Part I, Item 1. Regulatory Environment” in our 2020 Annual Report on Form 10-K filed with the SEC on December 3, 2020. State Authorization To operate and offer postsecondary programs, and to be certified to participate in Title IV Programs, each of our institutions must obtain and maintain authorization from the state in which it is physically located (its “Home State”). To engage in recruiting or educational activities outside of its Home State, each institution also may be required to obtain and maintain authorization from the states in which it is recruiting or engaging in educational activities. The level of regulatory oversight varies substantially from state to state and is extensive in some states. State laws may establish standards for instruction, qualifications of faculty, location and nature of facilities and equipment, administrative procedures, marketing, recruiting, student outcomes reporting, disclosure obligations to students, limitations on mandatory arbitration clauses in enrollment agreements, financial operations, and other operational matters. Some states prescribe standards of financial responsibility and mandate that institutions post surety bonds. Many states have requirements for institutions to disclose institutional data to current and prospective students, as well as to the public. And some states require that our schools meet prescribed performance standards as a condition of continued approval. Accreditation Accreditation is a non-governmental process through which an institution voluntarily submits to ongoing qualitative reviews by an organization of peer institutions. Institutional accreditation by an ED-recognized accreditor is required for an institution to be certified to participate in Title IV Programs. All of our institutions are accredited by the Accrediting Commission of Career Schools and Colleges (“ACCSC”), which is an accrediting agency recognized by ED. ACCSC reviews the academic quality of each institution’s instructional programs, as well as the administrative and financial operations of the institution to ensure that it has the resources necessary to perform its educational mission, implement continuous improvement processes, and support student success. Our institutions must submit annual reports, and at times, supplemental reports, to demonstrate ongoing compliance and improvement. ACCSC requires institutions to disclose certain institutional information to current and prospective students, as well as to the public, and requires that our schools and programs meet various performance standards as a condition of continued accreditation. Institutions must periodically renew their accreditation by completing a comprehensive renewal of accreditation process. See “Part I, Item 1. Regulatory Environment - Accreditation” in our 2020 Annual Report on Form 10-K filed with the SEC on December 3, 2020 for further details and the current status of our campus accreditation. We believe that each of our institutions is in substantial compliance with ACCSC accreditation standards. Title IV Programs The federal government provides a substantial part of its support for postsecondary education through Title IV Programs in the form of grants and loans to students who can use those funds at any institution that has been certified as eligible to participate by ED. All of our institutions are certified to participate in Title IV Programs. Significant factors relating to Title IV Programs that could adversely affect us include: • The 90/10 Rule . As a condition of participation in Title IV Programs, proprietary institutions must agree when they sign their PPA to comply with the 90/10 rule. Under the current 90/10 rule, to remain eligible to participate in the federal student aid programs, a proprietary institution must derive at least 10% of their revenues for each fiscal year from sources other than Title IV Program funds. Under the American Rescue Plan Act of 2021 (“ARPA”), a proprietary institution must derive at least 10 percent of its revenue from sources other than “Federal education assistance funds.” Federal education assistance funds are defined as “[f]ederal funds that are disbursed or delivered to or on behalf of a student to be used to attend such institution.” Pursuant to ARPA, the earliest the revision to the 90/10 rule may take effect is for institutional fiscal years beginning on or after January 1, 2023. A proprietary institution is subject to sanctions if it exceeds the 90% level for a single year, and loses its eligibility to participate in Title IV Programs if it derives more than 90% of its revenue from Title IV Programs/Federal education assistance funds, as applicable, for two consecutive fiscal years. We are currently reviewing the potential impact of the change in the 90/10 rule created under ARPA. • Administrative Capability . To continue its participation in Title IV Programs, an institution must demonstrate that it remains administratively capable of providing the education it promises and of properly managing the Title IV Programs. ED assesses the administrative capability of each institution that participates in Title IV Programs under a series of standards listed in the regulations, which cover a wide range of operational and administrative topics, including the designation of capable and qualified individuals, the quality and scope of written procedures, the adequacy of institutional communication and processes, the timely resolution of issues, the sufficiency of recordkeeping, and the frequency of findings of noncompliance, to name a few. ED’s administrative capability standards also include thresholds and expectations for federal student loan cohort default rates (discussed below), satisfactory academic progress, and loan counseling. Failure to satisfy any of the standards may lead ED to find the institution ineligible to participate in Title IV Programs, require the institution to repay Title IV Program funds, change the method of payment of Title IV Program funds, or place the institution on provisional certification as a condition of its continued participation or take other actions against the institution. • Three-Year Student Loan Default Rates. To remain eligible to participate in Title IV Programs, institutions also must maintain federal student loan cohort default rates below specified levels. An institution whose three-year cohort default rate is 15% or greater for any one of the three preceding years is subject to a 30-day delay in receiving the first disbursement on federal student loans for first-time borrowers. • Financial Responsibility. All institutions participating in Title IV Programs also must satisfy specific ED standards of financial responsibility. Among other things, an institution must meet all of its financial obligations, including required refunds to students and any Title IV Program liabilities and debts, be current in its debt payments, comply with certain past performance requirements, not receive an adverse, qualified, or disclaimed opinion by its accountants in its audited financial statements. Each year, ED also evaluates institutions’ financial responsibility by calculating a “composite score,” which utilizes information provided in the institutions’ annual audited financial statements. The composite score is based on three ratios: (1) the equity ratio which measures the institution’s capital resources, ability to borrow and financial viability; (2) the primary reserve ratio which measures the institution’s ability to support current operations from expendable resources; and (3) the net income ratio which measures the institution’s ability to operate at a profit. Between composite score calculations, ED also will reevaluate the financial responsibility of an institution following the occurrence of certain “triggering events,” which must be timely reported to the agency. • Title IV Program Rulemaking. ED is almost continuously engaged in one or more negotiated rulemakings, which is the process pursuant to which it revisits, revises, and expands the complex and voluminous Title IV Program regulations. Recent and significant negotiated rulemakings include the Gainful Employment Rulemaking, the Borrower Defense to Repayment Rulemaking, and the Accreditation and Innovation Rulemaking. New regulations associated with these rulemakings took effect on July 1, 2020, and additional, new rules will take effect on July 1, 2021. We devote significant effort to understanding the effects of these regulations on our business and to developing compliant solutions that also are congruent with our business, culture, and mission to serve our students and industry relationships. However, we cannot predict with certainty how these new and developing regulatory requirements will be applied or whether each of our schools will be able to comply with all of the requirements in the future. Other Federal and State Student Aid Programs Some of our students also receive financial aid from federal sources other than Title IV Programs, such as the programs administered by the VA, the Department of Defense (“DOD”) and under the Workforce Investment Act. Additionally, some states provide financial aid to our students in the form of grants, loans or scholarships. Our Long Beach, Rancho Cucamonga and Sacramento, California campuses, for example, are currently eligible to participate in the Cal Grant program. All of our institutions must comply with the eligibility and participation requirements applicable to each of these funding programs, which vary by funding agency and program. Each year we derive a portion of our revenues, on a cash basis, from veterans’ benefits programs, which include the Post-9/11 GI Bill, the Montgomery GI Bill, the Reserve Education Assistance Program (“REAP”) and VA Vocational Rehabilitation. To continue participation in veterans’ benefits programs, an institution must comply with certain requirements established by the VA. COVID-19, the CARES Act, the CRRSAA, and ARPA On March 13, 2020, the United States declared a national emergency concerning the COVID-19 pandemic, effective March 1, 2020. ED, consistent with its authority under then-existing statutes and regulations, issued guidance on March 5, 2020, outlining a range of accommodations intended to address interruptions of study related to COVID-19. On March 27, 2020, President Trump signed the CARES Act, which provided additional flexibilities and accommodations, beyond those offered by the ED in its March 5, 2020 guidance, particularly with regard to the campus-based assistance programs, the measurement of satisfactory academic progress and the return of unearned Title IV Program funds to ED. Shortly thereafter, on April 3, 2020, ED issued further guidance, providing additional regulatory flexibilities, and in some cases, implementing the accommodations provided for in the CARES Act. ED periodically updated and supplemented this guidance over the following months. Guidance also was published regarding immigration, discrimination, safety, and privacy issues, as well as the Higher Education Emergency Relief Fund (“HEERF”) established under the CARES Act. On December 11, 2020, ED published a notice in the Federal Register extending the end dates of COVID-19-related waivers and modifications, and introducing several new flexibilities using its authority granted by the Higher Education Relief Opportunities for Students (“HEROES”) Act of 2003. On December 27, 2020, President Trump signed a $2.3 trillion spending bill that combined a $1.4 trillion omnibus appropriations bill for federal fiscal year 2021 with $900 billion in supplemental appropriations to provide relief for the COVID-19 pandemic. As part of the omnibus appropriations bill, Congress simplifies the Free Application for Federal Student Aid, provides a $15 million increase to the Federal Supplemental Educational Opportunity Grant program, and adds an additional $10 million for Federal Work Study. This latter piece of legislation is known as the Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (“CRRSAA”). The CRRSAA extends the Paycheck Protection Program and allocates to it an additional $284.5 billion, and includes The Higher Education Emergency Relief Fund II (“HEERF II”), which makes an addition $22.7 billion available to higher education institutions to mitigate the impact of the COVID-19 pandemic. Of this amount, private, proprietary institutions are allocated approximately $681 million and may only use HEERF II funding to provide emergency financial aid grants to students. On January 14, 2021, ED made extensive guidance available regarding the administration of the HEERF II program. On March 11, 2021, President Biden signed into law the ARPA, a $1.9 trillion economic relief package. The ARPA provides almost $40 billion in funding available to higher education institutions under the Higher Education Emergency Relief III (“HEERF III”). Of this amount, private, proprietary institutions are allocated approximately $396 million and may only use HEERF III funding to provide emergency financial aid grants to students. On March 31, 2021, ED published its Guide for Compliance Attestation Engagements of Proprietary Schools Expending Higher Education Emergency Relief Fund Grants (the “Guide”). We are currently reviewing the requirements of the Guide and preparing for the required audit of our HEERF expenditures. We have reviewed and implemented many of the flexibilities created by Congress and ED’s guidance, including the opportunity to temporarily offer distance education, discussed below, and we presently are evaluating the flexibilities and funding opportunities created by the CRRSAA and ARPA. We continue to review new guidance from ED and to implement available legislative and regulatory relief as applicable. Distance Education In response to the COVID-19 pandemic, ED provided broad approval for institutions to use distance learning modalities without going through the standard ED approval process for payment periods that begin on or before December 31, 2020, or the end of the payment period that includes the end date for the federally-declared emergency related to COVID-19, whichever occurs later. ED also permitted accreditors to waive their distance education review requirements. In its December 11, 2020 Federal Register notice, ED extended these flexibilities through the end of the payment period that begins after the date on which the federally-declared national emergency related to COVID-19 is rescinded. This extra payment period beyond the national emergency end date will facilitate a successful transition to non-pandemic requirements following the end of the national emergency. |
Higher Education Emergency Reli
Higher Education Emergency Relief Fund under the CARES Act | 6 Months Ended |
Mar. 31, 2021 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Higher Education Emergency Relief Fund Grants | Higher Education Emergency Relief Fund Grants Fiscal 2020 HEERF Grant for Students and Significant Changes to the Delivery of Instruction under the CARES Act As discussed in “Note 21 - Higher Education Emergency Relief Fund under the CARES Act” in our 2020 Annual Report on Form 10-K filed with the SEC on December 3, 2020, in May 2020, we were granted approximately $33.0 million in HEERF funds with at least $16.5 million required to be spent for emergency grants to student and no more than $16.5 million permitted to cover institutional costs associated with significant changes to the delivery of instruction due to coronavirus. The allowable institutional costs for these institutional HEERF funds are described in “Note 21 - Higher Education Emergency Relief Fund under the CARES Act” in our 2020 Annual Report on Form 10-K filed with the SEC on December 3, 2020. During the three months ended December 31, 2020, we incurred $0.9 million in allowable costs related to the changes in the delivery of instruction due to the coronavirus, thereby utilizing the remaining available funds. Of the $0.9 million incurred, $0.3 million was recorded in “Educational services and facilities” and $0.6 million was recorded in “Selling, general and administrative” on the condensed consolidated statements of operations for the three months ended December 31, 2020. The $0.9 million was drawn down prior to December 31, 2020 and was included in our “Cash and cash equivalents” on our condensed consolidated balance sheets as of December 31, 2020. As of December 31, 2020, there were no remaining unused funds from the fiscal 2020 HEERF grant. Fiscal 2021 HEERF II Grant for Students under the CRRSAA As noted above, the CRRSAA includes HEERF II, which makes an additional $22.7 billion available to higher education institutions. Of this amount, private, proprietary institutions are allocated approximately $681 million. The statute permits proprietary institutions to use HEERF II funds to provide financial aid grants to students, and requires that institutions prioritize the grants to students with exceptional need, such as students who receive Pell Grants. On January 14, 2021, ED issued guidance regarding the administration of the HEERF II program. In accordance with the ED’s allocation schedule, during the three months ended March 31, 2021, we were granted approximately $16.8 million for purposes of funding HEERF II student grants. As of March 31, 2021, we had not yet awarded any student grants under the HEERF II program or drawn any of the grant funds. Additionally, we intend to draw down the HEERF II funds as student grants are distributed. Therefore, none of the HEERF II funds are included in “Restricted cash” on our condensed consolidated balance sheets as of March 31, 2021. Fiscal 2021 HEERF III Grant for Students under the ARPA |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Recently Accounting Pronouncements | Effective the First Quarter of Fiscal 2021 In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) . This update significantly changes the way that entities measure credit losses. The new standard requires that entities estimate credit losses based upon an “expected credit loss” approach rather than the historical “incurred loss” approach. The new approach requires entities to measure all expected credit losses for financial assets based on historical experience, current conditions and reasonable forecasts of collectability. The change in approach impacts the timing of recognition of credit losses. This standard is effective for financial statements issued by public companies for annual and interim periods beginning after December 15, 2019. These changes became effective for our fiscal year beginning October 1, 2020. Upon adoption on October 1, 2020, we recorded an increase in our receivables balance related to our proprietary loan program of $1.6 million, with the corresponding amount recorded as an increase to retained earnings. No other adjustments were deemed necessary in applying this new guidance. Effective the First Quarter of Fiscal 2022 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The amendments in this standard simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. We are currently evaluating the impact that the update will have on our results of operations, financial condition and financial statement disclosures. |
Nature of Goods and Services/Contract Balances | Nature of Goods and Services Postsecondary Education Revenues consist primarily of student tuition and fees derived from the programs we provide after reductions are made for discounts and scholarships that we sponsor and for refunds for students who withdraw from our programs prior to specified dates. We apply the five-step model outlined in ASC 606, Revenue from Contracts from Customers . Tuition and fee revenue is recognized ratably over the term of the course or program offered. The majority of our programs are designed to be completed in 36 to 90 weeks, and our advanced training programs range from 12 to 23 weeks in duration. We supplement our revenues with sales of textbooks and program supplies and other revenues, which are recognized as the transfer of goods or services occurs. Deferred revenue represents the excess of tuition and fee payments received as compared to tuition and fees earned and is reflected as a current liability in our condensed consolidated balance sheets because it is expected to be earned within the next 12 months. Additionally, certain students participate in a proprietary loan program that extends repayment terms for their tuition. We purchase said loans from the lender and, based on historical collection rates, believe a portion of these loans are collectible. Accordingly, we recognize tuition and loan origination fees financed by the loan and any related interest revenue under the effective interest method required under the loan based on the amount we expect to collect, and we recognize these revenues ratably over the term of the course or program offered. Other We provide dealer technician training or instructor staffing services to manufacturers. Revenues are recognized as transfer of the services occurs. We provide postsecondary education and other services in the same geographical market, the United States. The impact of economic factors on the nature, amount, timing and uncertainty of revenue and cash flows is consistent among our various postsecondary education programs. See Note 16 for disaggregated segment revenue information. Contract Balances Contract assets primarily relate to our rights to consideration for a student’s progress through our training program in relation to our services performed but not billed at the reporting date. The contract assets are transferred to the receivables when the rights become unconditional. Currently, we do not have any contract assets that have not transferred to a receivable. Our deferred revenue is considered a contract liability and primarily relates to our enrollment agreements where we received payments for tuition but we have not yet delivered the related training programs to satisfying the related performance obligations. The advance consideration received from students or Title IV funding is deferred revenue until the training program has been delivered to the students. |
Fair Value Measurement | 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. Level 3: Defined as unobservable inputs that are not corroborated by market data. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | The following table provides information about receivables and deferred revenue resulting from our enrollment agreements with students: March 31, 2021 September 30, 2020 Receivables, which includes tuition and notes receivable $ 43,103 $ 53,144 Deferred revenue 40,954 40,694 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Held-to-Maturity Investments | The amortized cost, gross unrealized gains or losses, and fair value of investments classified as held-to-maturity at March 31, 2021 and September 30, 2020 were as follows: March 31, 2021 Gross Unrealized Estimated Fair Due in less than 1 year: Amortized Cost Gains Losses Market Value Corporate and municipal bonds $ 19,502 $ 1 $ (7) $ 19,496 September 30, 2020 Gross Unrealized Estimated Fair Due in less than 1 year: Amortized Cost Gains Losses Market Value Corporate and municipal bonds $ 38,055 $ 10 $ (33) $ 38,032 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value of Our Trading Securities, Money Market Funds, Notes Receivable and Corporate Bonds | Assets measured or disclosed at fair value on a recurring basis consisted of the following: Fair Value Measurements Using March 31, 2021 Quoted Prices Significant Significant Money market funds (1) $ 42,351 $ 42,351 $ — $ — Notes receivable (2) 34,303 — — 34,303 Corporate bonds (3) 16,009 16,009 — — Municipal bonds and other (3) 3,487 3,487 — — Total assets at fair value on a recurring basis $ 96,150 $ 61,847 $ — $ 34,303 Fair Value Measurements Using September 30, 2020 Quoted Prices Significant Significant Money market funds (1) $ 43,322 $ 43,322 $ — $ — Notes receivable (2) 32,793 — — 32,793 Corporate bonds (3) 33,119 33,119 — — Municipal bonds and other (3) 4,913 4,913 — — Total assets at fair value on a recurring basis $ 114,147 $ 81,354 $ — $ 32,793 (1) Money market funds and other highly liquid investments with maturity dates less than 90 days are reflected as “Cash and cash equivalents” in our condensed consolidated balance sheet as of March 31, 2021 and September 30, 2020. (2) Notes receivable relate to our proprietary loan program. |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net consisted of the following: Depreciable March 31, 2021 September 30, 2020 Land (1) — $ 8,355 $ 3,189 Buildings and building improvements (1) 3-35 68,282 28,046 Leasehold improvements 1-28 64,232 62,899 Training equipment 3-10 92,250 91,731 Office and computer equipment 3-10 32,641 33,524 Curriculum development 5 19,692 19,692 Software developed for internal use 1-5 11,959 11,951 Vehicles 5 1,460 1,502 Right-of-use assets for finance leases 2-3 359 359 Construction in progress — 1,276 2,213 300,506 255,106 Less: Accumulated depreciation and amortization (185,585) (182,363) $ 114,921 $ 72,743 (1) During the six months ended March 31, 2021, land and buildings and building improvements increased due to the purchase of the building and land at our Avondale, Arizona campus location. The total purchase price was approximately $45.2 million, of which $5.1 million was allocated to land and $40.1 million was allocated to buildings and building improvements based upon the appraised values. |
Investment in Unconsolidated _2
Investment in Unconsolidated Affiliate (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | Investment in unconsolidated affiliate consisted of the following and is included within “Other assets” on our condensed consolidated balance sheets: March 31, 2021 September 30, 2020 Carrying Value Ownership Percentage Carrying Value Ownership Percentage Investment in JV $ 4,559 28.0 % $ 4,494 28.0 % Investment in unconsolidated affiliate included the following activity during the period: Six Months Ended March 31, 2021 2020 Balance at beginning of period $ 4,494 $ 4,338 Equity in earnings of unconsolidated affiliate 215 205 Return of capital contribution from unconsolidated affiliate (150) (142) Balance at end of period $ 4,559 $ 4,401 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense during the three months and six months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, Six Months Ended March 31, Lease Expense 2021 2020 2021 2020 Operating lease expense (1) $ 5,458 $ 7,462 $ 11,590 $ 14,984 Finance lease expense: Amortization of leased assets 33 38 65 38 Interest on lease liabilities 1 3 3 3 Variable lease expense 950 1,180 1,857 2,179 Sublease income (123) (156) (246) (507) Total net lease expense $ 6,319 $ 8,527 $ 13,269 $ 16,697 (1) Excludes the expense for short-term leases not accounted for under ASC 842, which was not significant for the three and six months ended March 31, 2021 and 2020. |
Supplemental Information | Supplemental balance sheet, cash flow and other information related to our leases was as follows (in thousands, except lease term and discount rate): Leases Classification March 31, 2021 September 30, 2020 Assets: Operating lease assets Right-of-use assets for operating leases $ 147,651 $ 144,663 Finance lease assets Property and equipment, net (1) 192 257 Total leased assets $ 147,843 $ 144,920 Liabilities: Current Operating lease liabilities Operating lease liability, current portion $ 19,565 $ 23,666 Finance lease liabilities Other current liabilities 131 129 Noncurrent Operating lease liabilities Operating lease liability 140,136 134,089 Finance lease liabilities Other liabilities 65 131 Total lease liabilities $ 159,897 $ 158,015 (1) Finance lease assets are recorded net of accumulated amortization of $0.2 million and $0.1 million as of March 31, 2021 and September 30, 2020, respectively. Lease Term and Discount Rate March 31, 2021 September 30, 2020 Weighted-average remaining lease term (in years): Operating leases 9.68 9.34 Finance leases 1.58 2.05 Weighted average discount rate: Operating leases 4.54 % 4.37 % Finance leases 3.08 % 3.08 % Six Months Ended March 31, Supplemental Disclosure of Cash Flow Information and Other Information 2021 2020 Non-cash activity related to lease liabilities: Lease assets obtained in exchange for new operating lease liabilities (1) $ 11,105 $ 21 Leases assets obtained in exchange for new finance lease liabilities — 205 |
Maturities of Operating Lease Liabilities After Adoption of 842 | Maturities of lease liabilities were as follows: As of March 31, 2021 Years ending September 30, Operating Leases Finance Leases Remainder of 2021 $ 12,205 $ 67 2022 23,823 110 2023 19,035 23 2024 18,765 — 2025 18,993 — 2026 and thereafter 104,647 — Total lease payments 197,468 200 Less: interest (37,767) (4) Present value of lease liabilities 159,701 196 Less: current lease liabilities (19,565) (131) Long-term lease liabilities $ 140,136 $ 65 |
Maturities of Finance Lease Liabilities After Adoption of 842 | Maturities of lease liabilities were as follows: As of March 31, 2021 Years ending September 30, Operating Leases Finance Leases Remainder of 2021 $ 12,205 $ 67 2022 23,823 110 2023 19,035 23 2024 18,765 — 2025 18,993 — 2026 and thereafter 104,647 — Total lease payments 197,468 200 Less: interest (37,767) (4) Present value of lease liabilities 159,701 196 Less: current lease liabilities (19,565) (131) Long-term lease liabilities $ 140,136 $ 65 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following: March 31, 2021 September 30, 2020 Accounts payable $ 10,571 $ 12,471 Accrued compensation and benefits 26,564 28,053 Other accrued expenses 11,953 11,367 Total accounts payable and accrued expenses $ 49,088 $ 51,891 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Weighted Average Number of Shares Outstanding Used in Computing Basic and Diluted Net Income Loss Per Share | The following table summarizes the computation of basic and diluted EPS under the two-class or as-converted method, as well as the anti-dilutive shares excluded: Three Months Ended Six Months Ended March 31, March 31, 2021 2020 2021 2020 Basic earnings per common share: Net (loss) income $ (1,547) $ 10,142 $ (464) $ 14,826 Less: Preferred stock dividend declared (1,312) (1,309) (2,625) (2,632) Net (loss) income available for distribution (2,859) 8,833 (3,089) 12,194 Income allocated to participating securities — (3,759) — (5,336) Net (loss) income available to common shareholders $ (2,859) $ 5,074 $ (3,089) $ 6,858 Weighted average basic shares outstanding 32,762 28,379 32,709 27,013 Basic (loss) income per common share $ (0.09) $ 0.18 $ (0.09) $ 0.25 Diluted earnings per common share: Method used: Two-class Two-class Two-class Two-class Net (loss) income available to common shareholders $ (2,859) $ 5,074 $ (3,089) $ 6,858 Weighted average basic shares outstanding 32,762 28,379 32,709 27,013 Dilutive effect related to employee stock plans — 265 — 307 Weighted average diluted shares outstanding 32,762 28,644 32,709 27,320 Diluted (loss) income per common share $ (0.09) $ 0.18 $ (0.09) $ 0.25 Anti-dilutive shares excluded: Outstanding stock-based grants 467 8 677 133 Convertible preferred stock 21,021 21,021 21,021 21,021 Total anti-dilutive shares excluded 21,488 21,029 21,698 21,154 Dilutive shares under the as-converted method (1) 54,065 49,665 54,003 48,341 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the computation of basic and diluted EPS under the two-class or as-converted method, as well as the anti-dilutive shares excluded: Three Months Ended Six Months Ended March 31, March 31, 2021 2020 2021 2020 Basic earnings per common share: Net (loss) income $ (1,547) $ 10,142 $ (464) $ 14,826 Less: Preferred stock dividend declared (1,312) (1,309) (2,625) (2,632) Net (loss) income available for distribution (2,859) 8,833 (3,089) 12,194 Income allocated to participating securities — (3,759) — (5,336) Net (loss) income available to common shareholders $ (2,859) $ 5,074 $ (3,089) $ 6,858 Weighted average basic shares outstanding 32,762 28,379 32,709 27,013 Basic (loss) income per common share $ (0.09) $ 0.18 $ (0.09) $ 0.25 Diluted earnings per common share: Method used: Two-class Two-class Two-class Two-class Net (loss) income available to common shareholders $ (2,859) $ 5,074 $ (3,089) $ 6,858 Weighted average basic shares outstanding 32,762 28,379 32,709 27,013 Dilutive effect related to employee stock plans — 265 — 307 Weighted average diluted shares outstanding 32,762 28,644 32,709 27,320 Diluted (loss) income per common share $ (0.09) $ 0.18 $ (0.09) $ 0.25 Anti-dilutive shares excluded: Outstanding stock-based grants 467 8 677 133 Convertible preferred stock 21,021 21,021 21,021 21,021 Total anti-dilutive shares excluded 21,488 21,029 21,698 21,154 Dilutive shares under the as-converted method (1) 54,065 49,665 54,003 48,341 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Information by Reportable Segment | Summary information by reportable segment was as follows: Postsecondary Education Other Consolidated Three Months Ended March 31, 2021 Revenues $ 74,846 $ 2,863 $ 77,709 Loss from operations (1,322) (339) (1,661) Depreciation and amortization (1) 3,547 22 3,569 Net loss (1,208) (339) (1,547) Three Months Ended March 31, 2020 Revenues $ 78,261 $ 4,456 $ 82,717 (Loss) Income from operations (591) 92 (499) Depreciation and amortization (2) 2,854 27 2,881 Net income 10,050 92 10,142 Six Months Ended March 31, 2021 Revenues $ 148,406 $ 5,428 $ 153,834 Loss from operations (218) (668) (886) Depreciation and amortization (1) 6,805 46 6,851 Net income (loss) 204 (668) (464) Six Months Ended March 31, 2020 Revenues $ 161,581 $ 8,370 $ 169,951 Income (loss) from operations 4,010 (255) 3,755 Depreciation and amortization (2) 5,825 69 5,894 Net income (loss) 15,081 (255) 14,826 As of March 31, 2021 Total assets $ 433,708 $ 6,637 $ 440,345 As of September 30, 2020 Total assets $ 435,144 $ 6,837 $ 441,981 (1) Includes depreciation of training equipment obtained in exchange for services of $0.3 million and $0.6 million for the three months and six months ended March 31, 2021, respectively. |
Nature of the Business - Narrat
Nature of the Business - Narrative (Details) technician in Thousands | Mar. 31, 2021locationtechnician |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of campuses through which undergraduate degree, diploma and certificate programs are offered | location | 12 |
Number of graduated technicians | technician | 220 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Oct. 01, 2020 | Sep. 30, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ (34,416) | $ (32,971) | |
Accounting Standards Update 2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Receivables balance | $ 1,600 | ||
Retained earnings | $ 1,600 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Receivables, which includes tuition and notes receivable | $ 43,103 | $ 53,144 |
Deferred revenue | $ 40,954 | 40,694 |
Disaggregation of Revenue [Line Items] | ||
Percentage of students not returned to campus | 1.00% | |
Percentage of students completing catch up labs | 10.00% | |
Deferred revenue | $ 40,954 | $ 40,694 |
Students | ||
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue | 800 | |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 800 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from equity offering | $ 49,500 | $ 0 | $ 49,137 |
Investments - Schedule of Held-
Investments - Schedule of Held-to-Maturity Investments (Details) - Corporate and municipal bonds - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 19,502 | $ 38,055 |
Gross Unrealized Gains | 1 | 10 |
Gross Unrealized Losses | (7) | (33) |
Estimated Fair Market Value | $ 19,496 | $ 38,032 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - Estimate of Fair Value Measurement - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | $ 96,150 | $ 114,147 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 42,351 | 43,322 |
Notes receivable | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 34,303 | 32,793 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 16,009 | 33,119 |
Municipal bonds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 3,487 | 4,913 |
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 | 61,847 | 81,354 |
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 | 42,351 | 43,322 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Notes receivable | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 16,009 | 33,119 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal bonds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 3,487 | 4,913 |
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 | 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) | Notes receivable | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Municipal bonds and other | ||
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) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 34,303 | 32,793 |
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) | Notes receivable | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 34,303 | 32,793 |
Significant Unobservable Inputs (Level 3) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Municipal bonds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | $ 0 | $ 0 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Right-of-use assets for finance leases | $ 359 | $ 359 | |
Property and equipment and Right-of-use assets for finance leases, gross | 300,506 | 255,106 | |
Less: Accumulated depreciation and amortization | (185,585) | (182,363) | |
Property and equipment and Right-of-use assets for finance leases, net | 114,921 | 72,743 | |
Total purchase price | 49,919 | $ 5,164 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 8,355 | 3,189 | |
Purchase price allocation | 5,100 | ||
Building and building improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 68,282 | 28,046 | |
Purchase price allocation | $ 40,100 | ||
Building and building improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives (in years) | 3 years | ||
Building and building improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives (in years) | 35 years | ||
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 64,232 | 62,899 | |
Leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives (in years) | 1 year | ||
Leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives (in years) | 28 years | ||
Training equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 92,250 | 91,731 | |
Training equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives (in years) | 3 years | ||
Training equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives (in years) | 10 years | ||
Office and computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 32,641 | 33,524 | |
Office and computer equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives (in years) | 3 years | ||
Office and computer equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives (in years) | 10 years | ||
Curriculum development | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives (in years) | 5 years | ||
Property and equipment, gross | $ 19,692 | 19,692 | |
Software developed for internal use | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 11,959 | 11,951 | |
Software developed for internal use | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives (in years) | 1 year | ||
Software developed for internal use | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives (in years) | 5 years | ||
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives (in years) | 5 years | ||
Property and equipment, gross | $ 1,460 | 1,502 | |
Right of use assets for finance leases | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives (in years) | 2 years | ||
Right of use assets for finance leases | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable Lives (in years) | 3 years | ||
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,276 | $ 2,213 | |
Land and building and building improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total purchase price | $ 45,200 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 8,222 | $ 8,222 |
Investment in Unconsolidated _3
Investment in Unconsolidated Affiliate - Narrative (Details) - Investment in JV - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2012 |
Schedule of Equity Method Investments [Line Items] | |||||
Carrying Value | $ 4,559 | $ 4,494 | $ 4,401 | $ 4,338 | $ 4,000 |
Ownership Percentage | 28.00% | 28.00% | 28.00% |
Investment in Unconsolidated _4
Investment in Unconsolidated Affiliate - Unconsolidated Affiliate Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of Equity Method Investments [Roll Forward] | ||
Return of capital contribution from unconsolidated affiliate | $ (150) | $ (142) |
Investment in JV | ||
Schedule of Equity Method Investments [Roll Forward] | ||
Balance at beginning of period | 4,494 | 4,338 |
Equity in earnings of unconsolidated affiliate | 215 | 205 |
Return of capital contribution from unconsolidated affiliate | (150) | (142) |
Balance at end of period | $ 4,559 | $ 4,401 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 6 Months Ended |
Mar. 31, 2021location | |
Lessee, Lease, Description [Line Items] | |
Number of lease contracts | 9 |
Number of campuses | 12 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 8 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 20 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||||
Operating lease expense | $ 5,458 | $ 7,462 | $ 11,590 | $ 14,984 |
Finance lease expense: | ||||
Amortization of leased assets | 33 | 38 | 65 | 38 |
Interest on lease liabilities | 1 | 3 | 3 | 3 |
Variable lease expense | 950 | 1,180 | 1,857 | 2,179 |
Sublease income | (123) | (156) | (246) | (507) |
Total net lease expense | $ 6,319 | $ 8,527 | $ 13,269 | $ 16,697 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Assets: | |||
Operating lease assets | $ 147,651 | $ 144,663 | |
Finance lease assets | 192 | 257 | |
Total leased assets | $ 147,843 | $ 144,920 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net | Property and equipment, net | |
Current | |||
Operating lease liabilities | $ 19,565 | $ 23,666 | |
Finance lease liabilities | 131 | 129 | |
Noncurrent | |||
Operating lease liabilities | 140,136 | 134,089 | |
Financing obligation | 65 | 131 | |
Total lease liabilities | $ 159,897 | $ 158,015 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | |
Finance lease, accumulated amortization | $ 200 | $ 100 | |
Weighted-average remaining lease term (in years): | |||
Weighted-average remaining lease term, operating leases | 9 years 8 months 4 days | 9 years 4 months 2 days | |
Weighted-average remaining lease term, finance leases | 1 year 6 months 29 days | 2 years 18 days | |
Weighted average discount rate: | |||
Weighted average discount rate, operating leases | 4.54% | 4.37% | |
Weighted average discount rate, finance leases | 3.08% | 3.08% | |
Non-cash activity related to lease liabilities: | |||
Lease assets obtained in exchange for new operating lease liabilities | $ 11,105 | $ 21 | |
Leases assets obtained in exchange for new finance lease liabilities | $ 0 | $ 205 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Leases After Adoption of 842 (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Operating Leases | ||
Remainder of 2021 | $ 12,205 | |
2022 | 23,823 | |
2023 | 19,035 | |
2024 | 18,765 | |
2025 | 18,993 | |
2026 and thereafter | 104,647 | |
Total lease payments | 197,468 | |
Less: interest | (37,767) | |
Present value of lease liabilities | 159,701 | |
Less: current lease liabilities | (19,565) | $ (23,666) |
Operating lease liabilities | 140,136 | 134,089 |
Finance Leases | ||
Remainder of 2021 | 67 | |
2022 | 110 | |
2023 | 23 | |
2024 | 0 | |
2025 | 0 | |
2026 and thereafter | 0 | |
Total lease payments | 200 | |
Less: interest | (4) | |
Present value of lease liabilities | 196 | |
Less: current lease liabilities | (131) | (129) |
Long-term lease liabilities | $ 65 | $ 131 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 10,571 | $ 12,471 |
Accrued compensation and benefits | 26,564 | 28,053 |
Other accrued expenses | 11,953 | 11,367 |
Total accounts payable and accrued expenses | $ 49,088 | $ 51,891 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||||
Income tax expense (benefit) | $ (34) | $ (10,804) | $ (8) | $ (10,720) | ||
Effective income tax rate, percent | 2.20% | 1632.00% | 1.70% | 261.10% | ||
Valuation allowance for deferred tax assets | $ 17,500 | $ 17,500 | $ 17,400 | |||
Tax refund | $ 2,693 | $ 172 | 11,300 | |||
Income Taxes Receivable | $ 7,100 | |||||
Refund | $ 2,700 | |||||
Receivable, net | $ 4,300 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) $ / shares in Units, $ in Millions | 6 Months Ended | ||
Mar. 31, 2021USD ($)vote$ / sharesshares | Dec. 10, 2020USD ($) | Sep. 30, 2020$ / sharesshares | |
Stockholders Equity Note [Line Items] | |||
Number of voting rights | vote | 1 | ||
Preferred stock (in shares) | shares | 10,000,000 | 10,000,000 | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Preferred stock (in shares) | shares | 700,000 | 700,000 | |
Preferred stock, liquidation preference (in dollars per share) | $ / shares | $ 100 | $ 100 | |
Dividends payable | $ | $ 2.6 | ||
Repurchase of common stock authorized by Board of Directors | $ | $ 35 | ||
Series A Preferred Stock | |||
Stockholders Equity Note [Line Items] | |||
Preferred stock (in shares) | shares | 10,000,000 | ||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||
Preferred stock (in shares) | shares | 700,000 | 700,000 | |
Preferred stock, liquidation preference (in dollars per share) | $ / shares | $ 100 | $ 100 | |
Preferred stock, dividend rate, percentage | 7.50% | ||
Additional percentage to cash dividend rate | 2.00% |
Earnings per Share - Calculatio
Earnings per Share - Calculation of earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Basic earnings per common share: | ||||||
Net (loss) income | $ (1,547) | $ 1,083 | $ 10,142 | $ 4,684 | $ (464) | $ 14,826 |
Less: Preferred stock dividend declared | (1,312) | (1,309) | (2,625) | (2,632) | ||
Net (loss) income available for distribution | (2,859) | 8,833 | (3,089) | 12,194 | ||
Income allocated to participating securities | 0 | (3,759) | 0 | (5,336) | ||
Net (loss) income available to common shareholders | $ (2,859) | $ 5,074 | $ (3,089) | $ 6,858 | ||
Weighted average basic shares outstanding (in shares) | 32,762 | 28,379 | 32,709 | 27,013 | ||
Basic loss per common share (in dollars per share) | $ (0.09) | $ 0.18 | $ (0.09) | $ 0.25 | ||
Diluted earnings per common share: | ||||||
Net (loss) income available to common shareholders | $ (2,859) | $ 5,074 | $ (3,089) | $ 6,858 | ||
Weighted average basic shares outstanding (in shares) | 32,762 | 28,379 | 32,709 | 27,013 | ||
Dilutive effect related to employee stock plans (in shares) | 0 | 265 | 0 | 307 | ||
Weighted average diluted shares outstanding (in shares) | 32,762 | 28,644 | 32,709 | 27,320 | ||
Diluted loss per common share (in dollars per share) | $ (0.09) | $ 0.18 | $ (0.09) | $ 0.25 | ||
Dilutive effect related to preferred stock (in shares) | 54,065 | 49,665 | 54,003 | 48,341 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of antidilutive securities (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive shares excluded (in shares) | 21,488,000 | 21,029,000 | 21,698,000 | 21,154,000 |
Dilutive effect related to preferred stock (in shares) | 54,065,000 | 49,665,000 | 54,003,000 | 48,341,000 |
Participating securities | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive shares excluded (in shares) | 21,021 | |||
Outstanding stock-based grants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive shares excluded (in shares) | 467,000 | 8,000 | 677,000 | 133,000 |
Convertible preferred stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive shares excluded (in shares) | 21,021,000 | 21,021,000 | 21,021,000 | 21,021,000 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 77,709 | $ 82,717 | $ 153,834 | $ 169,951 | |||
Loss from operations | (1,661) | (499) | (886) | 3,755 | |||
Depreciation and amortization | 3,569 | 2,881 | 6,851 | 5,894 | |||
Net (loss) income | (1,547) | $ 1,083 | 10,142 | $ 4,684 | (464) | 14,826 | |
Total assets | 440,345 | 440,345 | $ 441,981 | ||||
Depreciation of training equipment obtained in exchange for services | 300 | 300 | 646 | 678 | |||
Operating Segments | Postsecondary Education | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 74,846 | 78,261 | 148,406 | 161,581 | |||
Loss from operations | (1,322) | (591) | (218) | 4,010 | |||
Depreciation and amortization | 3,547 | 2,854 | 6,805 | 5,825 | |||
Net (loss) income | (1,208) | 10,050 | 204 | 15,081 | |||
Total assets | 433,708 | 433,708 | 435,144 | ||||
Corporate, Non-Segment | Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 2,863 | 4,456 | 5,428 | 8,370 | |||
Loss from operations | (339) | 92 | (668) | (255) | |||
Depreciation and amortization | 22 | 27 | 46 | 69 | |||
Net (loss) income | (339) | $ 92 | (668) | $ (255) | |||
Total assets | $ 6,637 | $ 6,637 | $ 6,837 |
Higher Education Emergency Re_2
Higher Education Emergency Relief Fund under the CARES Act (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
May 31, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Unusual or Infrequent Item, or Both [Line Items] | ||||
Amount of HEERF funds granted | $ 33 | |||
Institutional emergency grants to students | 16.5 | |||
Funds received to offset costs | $ 16.5 | |||
Sanitization supplies, partitions, labor hours and other related expenses | $ 0.9 | |||
HEERF funds received | $ 16.8 | |||
Educational services and facilities | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Sanitization supplies, partitions, labor hours and other related expenses | $ 0.3 | |||
Selling, general and administrative | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Sanitization supplies, partitions, labor hours and other related expenses | $ 0.6 |
Uncategorized Items - uti-20210
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |
Accounting Standards Update 2016-02 [Member] | ||
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201905Member |