Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 07, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LINCOLN EDUCATIONAL SERVICES CORP | |
Entity Central Index Key | 0001286613 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 25,235,257 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 5,683 | $ 17,571 |
Restricted cash | 4,498 | 16,775 |
Accounts receivable, less allowance of $16,421 and $15,590 at March 31, 2019 and December 31, 2018, respectively | 22,577 | 18,675 |
Inventories | 1,692 | 1,451 |
Prepaid income taxes and income taxes receivable | 128 | 178 |
Prepaid expenses and other current assets | 3,158 | 2,461 |
Total current assets | 37,736 | 57,111 |
PROPERTY, EQUIPMENT AND FACILITIES - At cost, net of accumulated depreciation and amortization of $173,028 and $171,109 at March 31, 2019 and December 31, 2018, respectively | 47,776 | 49,292 |
OTHER ASSETS: | ||
Noncurrent restricted cash | 0 | 11,600 |
Noncurrent receivables, less allowance of $1,495 and $1,403 at March 31, 2019 and December 31, 2018, respectively | 12,972 | 12,175 |
Deferred income taxes, net | 424 | 424 |
Operating lease right-of-use asset | 39,323 | 0 |
Goodwill | 14,536 | 14,536 |
Other assets, net | 3,222 | 900 |
Total other assets | 70,477 | 39,635 |
TOTAL | 155,989 | 146,038 |
CURRENT LIABILITIES: | ||
Current portion of credit agreement | 3,635 | 15,000 |
Unearned tuition | 18,328 | 22,545 |
Accounts payable | 14,544 | 14,107 |
Accrued expenses | 11,963 | 10,605 |
Current portion of operating lease liability | 9,508 | 0 |
Other short-term liabilities | 1,773 | 2,324 |
Total current liabilities | 59,751 | 64,581 |
NONCURRENT LIABILITIES: | ||
Long-term credit agreement and term loan | 20,958 | 33,769 |
Pension plan liabilities | 4,230 | 4,271 |
Long-term portion of operating lease liability | 36,352 | 0 |
Accrued rent | 0 | 3,410 |
Other long-term liabilities | 111 | 141 |
Total liabilities | 121,402 | 106,172 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, no par value - 10,000,000 shares authorized, no shares issued and outstanding at March 31, 2019 and December 31, 2018 | 0 | 0 |
Common stock, no par value - authorized: 100,000,000 shares at March 31, 2019 and December 31, 2018; issued and outstanding: 31,025,668 shares at March 31, 2019 and 30,552,333 shares at December 31, 2018 | 141,377 | 141,377 |
Additional paid-in capital | 29,518 | 29,484 |
Treasury stock at cost - 5,910,541 shares at March 31, 2019 and December 31, 2018 | (82,860) | (82,860) |
Accumulated deficit | (49,540) | (44,073) |
Accumulated other comprehensive loss | (3,908) | (4,062) |
Total stockholders' equity | 34,587 | 39,866 |
TOTAL | $ 155,989 | $ 146,038 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Accounts receivable, allowance | $ 16,421 | $ 15,590 |
PROPERTY, EQUIPMENT AND FACILITIES - accumulated depreciation and amortization | 173,028 | 171,109 |
OTHER ASSETS: | ||
Noncurrent receivables, allowance | $ 1,495 | $ 1,403 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 31,025,668 | 30,552,333 |
Common stock, shares outstanding (in shares) | 31,025,668 | 30,552,333 |
Treasury stock, shares (in shares) | 5,910,541 | 5,910,541 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract] | ||
REVENUE | $ 63,263 | $ 61,889 |
COSTS AND EXPENSES: | ||
Educational services and facilities | 29,980 | 30,503 |
Selling, general and administrative | 38,146 | 37,531 |
Loss on disposition of assets | 1 | 117 |
Total costs & expenses | 68,127 | 68,151 |
OPERATING LOSS | (4,864) | (6,262) |
OTHER: | ||
Interest income | 4 | 10 |
Interest expense | (557) | (572) |
LOSS BEFORE INCOME TAXES | (5,417) | (6,824) |
PROVISION FOR INCOME TAXES | 50 | 50 |
NET LOSS | $ (5,467) | $ (6,874) |
Basic | ||
Net loss per share (in dollars per share) | $ (0.22) | $ (0.28) |
Diluted | ||
Net loss per share (in dollars per share) | $ (0.22) | $ (0.28) |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 24,534,207 | 24,137,577 |
Diluted (in shares) | 24,534,207 | 24,137,577 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) [Abstract] | ||
Net loss | $ (5,467) | $ (6,874) |
Other comprehensive income | ||
Employee pension plan adjustments | 154 | 162 |
Comprehensive loss | $ (5,313) | $ (6,712) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
BALANCE at Dec. 31, 2017 | $ 141,377 | $ 29,334 | $ (82,860) | $ (37,528) | $ (4,510) | $ 45,813 |
BALANCE (in shares) at Dec. 31, 2017 | 30,624,407 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | $ 0 | 0 | 0 | (6,874) | 0 | (6,874) |
Employee pension plan adjustments | 0 | 0 | 0 | 0 | 162 | 162 |
Stock-based compensation expense | ||||||
Restricted stock | $ 0 | 429 | 0 | 0 | 0 | 429 |
Restricted stock (in shares) | 113,946 | |||||
Net share settlement for equity-based compensation | $ 0 | (311) | 0 | 0 | 0 | (311) |
Net share settlement for equity-based compensation (in shares) | (168,254) | |||||
BALANCE at Mar. 31, 2018 | $ 141,377 | 29,452 | (82,860) | (44,402) | (4,348) | 39,219 |
BALANCE (in shares) at Mar. 31, 2018 | 30,570,099 | |||||
BALANCE at Dec. 31, 2018 | $ 141,377 | 29,484 | (82,860) | (44,073) | (4,062) | $ 39,866 |
BALANCE (in shares) at Dec. 31, 2018 | 30,552,333 | 30,552,333 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | $ 0 | 0 | 0 | (5,467) | 0 | $ (5,467) |
Employee pension plan adjustments | 0 | 0 | 0 | 0 | 154 | 154 |
Stock-based compensation expense | ||||||
Restricted stock | $ 0 | 52 | 0 | 0 | 0 | 52 |
Restricted stock (in shares) | 478,853 | |||||
Net share settlement for equity-based compensation | $ 0 | (18) | 0 | 0 | 0 | (18) |
Net share settlement for equity-based compensation (in shares) | (5,518) | |||||
BALANCE at Mar. 31, 2019 | $ 141,377 | $ 29,518 | $ (82,860) | $ (49,540) | $ (3,908) | $ 34,587 |
BALANCE (in shares) at Mar. 31, 2019 | 31,025,668 | 31,025,668 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (5,467) | $ (6,874) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,050 | 2,100 |
Amortization of deferred finance charges | 95 | 87 |
Loss on disposition of assets | 1 | 117 |
Provision for doubtful accounts | 4,626 | 3,811 |
Stock-based compensation expense | 52 | 429 |
Deferred rent | 0 | (276) |
(Increase) decrease in assets: | ||
Accounts receivable | (9,325) | (7,823) |
Inventories | (241) | (253) |
Prepaid income taxes and income taxes receivable | 50 | 67 |
Prepaid expenses and current assets | (697) | (467) |
Other assets, net | (289) | (45) |
Increase (decrease) in liabilities: | ||
Accounts payable | 582 | 2,980 |
Accrued expenses | 2,326 | (95) |
Unearned tuition | (4,217) | (3,757) |
Other liabilities | (468) | (43) |
Total adjustments | (5,455) | (3,168) |
Net cash used in operating activities | (10,922) | (10,042) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (639) | (476) |
Proceeds from sale of property and equipment | 0 | 8 |
Net cash used in investing activities | (639) | (468) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments on borrowings | (26,600) | (32,800) |
Proceeds from borrowings | 2,500 | 2,500 |
Payment of deferred finance fees | (86) | (80) |
Net share settlement for equity-based compensation | (18) | (311) |
Net cash used in financing activities | (24,204) | (30,691) |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (35,765) | (41,201) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-Beginning of period | 45,946 | 54,554 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-End of period | 10,181 | 13,353 |
Cash paid for: | ||
Interest | 518 | 421 |
Income taxes | 0 | 1 |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
Liabilities accrued for or noncash purchases of fixed assets | $ 110 | $ 128 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Activities — Lincoln Educational Services Corporation and its subsidiaries (collectively, the “Company”, “we”, “our” and “us”, as applicable) provide diversified career-oriented post-secondary education to recent high school graduates and working adults. The Company, which currently operates 22 schools in 14 states, The Company’s business is organized into three reportable business segments: (a) Transportation and Skilled Trades, (b) Healthcare and Other Professions (“HOPS”), and (c) Transitional, which refers to businesses that have been or are currently being taught out. On July 9, 2018, New England Institute of Technology at Palm Beach, Inc. (“NEIT”), a wholly-owned subsidiary of the Company, entered into a commercial contract (the “Sale Agreement”) with Elite Property Enterprise, LLC, pursuant to which NEIT agreed to sell to Elite Property Enterprise, LLC the real property owned by NEIT located at 1126 53rd Court North, Mangonia Park, Palm Beach County, Florida and the improvements and certain personal property located thereon (the “Mangonia Park Property”), for a cash purchase price of $2,550,000. On August 23, 2018, NEIT, consummated the sale of the Mangonia Park Property. At the closing, NEIT paid a real estate brokerage fee equal to 5% of the gross sales price and other customary closing costs and expenses. Pursuant to the provisions of the Company’s Credit Agreement with its lender, Sterling National Bank, the net cash proceeds of the sale of the Mangonia Park Property were deposited into an account with the lender to serve as additional security for loans and other financial accommodations provided to the Company and its subsidiaries under the credit facility. In December 2018, the funds were used to repay the outstanding principal balance of the loans outstanding under the credit facility and such repayment permanently reduced the loan outstanding under the credit facility designated as Facility 1 under the Company’s Credit Agreement to a $22.7 million term loan. Effective December 31, 2018, the Company completed the teach-out and ceased operation of its Lincoln College of New England (“LCNE”) campus at Southington, Connecticut. The decision to close the LCNE campus followed the previously reported placement of LCNE on probation by the college’s institutional accreditor, the New England Association of Schools and Colleges (“NEASC”). After evaluating alternative options, the Company concluded that teaching out and closing the campus was in the best interest of the Company and its students. Subsequent to formalizing the LCNE closure decision in August 2018, the Company partnered with Goodwin College, another NEASC- accredited institution in the region, to assist LCNE students to complete their programs of study. The majority of the LCNE students will continue their education at Goodwin College thereby limiting some of the Company’s closing costs. The revenue, net loss and ending population of LCNE, as of December 31, 2017, were $8.4 million, $1.6 million and 397 students, respectively. The Company recorded closing and . were Liquidity — Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Use of Estimates in the Preparation of Financial Statements New Accounting Pronouncements Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU No. 2018-13, “ Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” Fair Value Measurement In June 2018, FASB issued ASU No. 2018-07, “ Improvements to Nonemployee Share-Based Payment Accounting Compensation - Stock Compensation , In February 2018, the FASB issued ASU 2018-02, “ Income Statement-Reporting Comprehensive Income (Topic 220) In February 2016, the FASB issued ASU No. 2016-02, “ Leases In July 2018, FASB issued ASU No. 2018-10, “ Codification Improvements to Topic 842, Leases Leases: Targeted Improvements The amendments in ASU No. 2016-02, ASU No. 2018-10 and ASU No. 2018-11 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and allow for modified retrospective adoption with early adoption permitted. The Company adopted the amendments on January 1, 2019 using the modified retrospective approach and elected the transition relief package of practical expedients by applying previous accounting conclusions under ASC 840 to all leases that existed prior to the transition date. As a result, the Company did not reassess (1) whether existing or expired contracts contain leases, (2) lease classification for any existing or expired leases or (3) whether lease origination costs qualified as initial direct costs. The Company did not elect the practical expedient to use hindsight in determining a lease term and impairment of the right-of-use (“ ”) leases with terms Stock-Based Compensation The Company measures the value of service and performance-based restricted stock on the fair value of a share of common stock on the date of the grant. The Company amortizes the fair value of service-based restricted stock utilizing straight-line amortization of compensation expense over the requisite service period of the grant. The Company amortizes the fair value of the performance-based restricted stock based on the determination of the probable outcome of the performance condition. If the performance condition is expected to be met, then the Company amortizes the fair value of the number of shares expected to vest utilizing straight-line basis over the requisite performance period of the grant. However, if the associated performance condition is not expected to be met, then the Company does not recognize the stock-based compensation expense. Income Taxes – The Company Income Taxes In accordance with ASC 740, the Company assesses our deferred tax asset to determine whether all or any portion of the asset is more likely than not unrealizable. A valuation allowance is required to be established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized. In accordance with ASC 740, our assessment considers whether there has been sufficient income in recent years and whether sufficient income is expected in future years in order to utilize the deferred tax asset. In evaluating the realizability of deferred income tax assets, the Company considered, among other things, historical levels of income, expected future income, the expected timing of the reversals of existing temporary reporting differences, and the expected impact of tax planning strategies that may be implemented to prevent the potential loss of future income tax benefits. Significant judgment is required in determining the future tax consequences of events that have been recognized in our consolidated financial statements and/or tax returns. Differences between anticipated and actual outcomes of these future tax consequences could have a material impact on the Company’s consolidated financial position or results of operations. Changes in, among other things, income tax legislation, statutory income tax rates, or future income levels could materially impact the Company’s valuation of income tax assets and liabilities and could cause our income tax provision to vary significantly among financial reporting periods. During the three months ended March 31, 2019 and 2018, the Company did not recognize any interest and penalties expense associated with uncertain tax positions. |
WEIGHTED AVERAGE COMMON SHARES
WEIGHTED AVERAGE COMMON SHARES | 3 Months Ended |
Mar. 31, 2019 | |
WEIGHTED AVERAGE COMMON SHARES [Abstract] | |
WEIGHTED AVERAGE COMMON SHARES | 2. WEIGHTED AVERAGE COMMON SHARES The weighted average number of common shares used to compute basic and diluted loss per share for the three months ended March 31, 2019 and 2018 was as follows: Three Months Ended March 31, 2019 2018 Basic shares outstanding 24,534,207 24,137,577 Dilutive effect of stock options - - Diluted shares outstanding 24,534,207 24,137,577 For the three months ended March 31, 2019 and 2018, options to acquire 175,675 and 127,973 shares were excluded from the above table because the Company reported a net loss for each period and, therefore, their impact on reported loss per share would have been antidilutive. For the three months ended March 31, 2019 and 2018, options to acquire 139,000 and 147,667 shares, respectively, were excluded from the above table because they have an exercise price that is greater than the average market price of the Company’s common stock and, therefore, their impact on reported loss per share would have been antidilutive. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2019 | |
REVENUE RECOGNITION [Abstract] | |
REVENUE RECOGNITION | 3. REVENUE RECOGNITION Substantially all of our revenues are considered to be revenues from contracts with students. The related accounts receivable balances are recorded in our balance We record revenue for students who withdraw from one of our schools only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. We have Unearned tuition in the amount of $18.3 million and $22.5 million is recorded in the current liabilities section of the accompanying condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018, respectively. The change in the contract liability balance during the period ended March 31, 2019 is the result of payments received in advance of satisfying performance obligations, offset by revenue recognized during that period. Revenue recognized for the three month period ended March 31, 2019 that was included in the contract liability balance at the beginning of the year was $19.1 million. The following table depicts the timing of revenue recognition: Three months ended March 31, 2019 Transportation and Skilled Trades Segment Healthcare and Other Professions Segment Transitional Segment Consolidated Timing of Revenue Recognition Services transferred at a point in time $ 2,081 $ 1,075 $ - $ 3,156 Services transferred over time 42,244 17,863 - 60,107 Total revenues $ 44,325 $ 18,938 $ - $ 63,263 Three months ended March 31, 2018 Transportation and Skilled Trades Segment Healthcare and Other Professions Segment Transitional Segment Consolidated Timing of Revenue Recognition Services transferred at a point in time $ 2,048 $ 732 $ 3 $ 2,783 Services transferred over time 40,699 16,009 2,398 59,106 Total revenues $ 42,747 $ 16,741 $ 2,401 $ 61,889 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
LEASES [Abstract] | |
LEASES | 4. LEASES The Company determines if an arrangement is a lease at inception. The Company considers any contract where there is an identified asset and that it has the right to control the use of such asset in determining whether the contract contains a lease. An operating lease ROU asset represents the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are to be recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s operating leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available on the adoption date in determining the present value of lease payments. W The operating lease ROU assets include any lease payments made prior to the rent commencement date and exclude lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option The following table present the cumulative effect of the changes made to the condensed consolidated balance sheets December 31, 2018 Adjustments due to ASC 842 January 1, 2019 Operating lease right-of-use asset $ - $ 37,993 $ 37,993 Current portion of operating lease liability $ - $ 8,999 $ 8,999 Other short-term liabilities $ 968 $ (968 ) $ - Long-term portion of operating lease liability $ - $ 33,372 $ 33,372 Accrued rent $ 3,410 $ (3,410 ) $ - Our operating lease cost for the three months ended March 31, 2019 was $3.6 million. Supplemental cash flow information and non-cash activity related to our operating leases are as follows: For the Three Months Ended March 31, 2019 Operating cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $ 3,782 Non-cash activity: Lease liabilities arising from obtaining right-of-use assets* $ 47,977 * Includes a new lease entered into on January 1, 2019 of $5.606 million. Weighted-average remaining lease term and discount rate for our operating leases are as follows: Three Months Ended March 31, 2019 Weighted-average remaining lease term 5.79 years Weighted-average discount rate 14.45 % Maturities of lease liabilities by fiscal year for our operating leases are as follows: Year ending December 31, 2019 (excluding the three months ended March 31, 2019) $ 11,621 2020 14,087 2021 10,664 2022 8,180 2023 5,811 2024 4,460 Thereafter 13,150 Total lease payments 67,973 Less: imputed interest (22,113 ) Present value of lease liabilities $ 45,860 As of December 31, 2018, minimum lease payments under non-cancelable operating leases by period were expected to be as follows: 2019 $ 16,939 2020 14,183 2021 10,708 2022 8,180 2023 5,811 Thereafter 17,610 $ 73,431 |
GOODWILL AND LONG-LIVED ASSETS
GOODWILL AND LONG-LIVED ASSETS | 3 Months Ended |
Mar. 31, 2019 | |
GOODWILL AND LONG-LIVED ASSETS [Abstract] | |
GOODWILL AND LONG-LIVED ASSETS | 5. GOODWILL AND LONG-LIVED ASSETS The Company reviews long-lived assets for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. There were no long-lived asset impairments during the three months ended March 31, 2019 and 2018. The Company reviews goodwill and intangible assets for impairment when indicators of impairment exist. Annually, or more frequently if necessary, the Company evaluates goodwill and intangible assets with indefinite lives for impairment, with any resulting impairment reflected as an operating expense. The Company concluded that, as of March 31, 2019 and 2018, there was no indicator of potential impairment and, accordingly, the Company did not test goodwill for impairment. The carrying amount of goodwill at March 31, 2019 and 2018 is as follows: Gross Goodwill Balance Accumulated Impairment Losses Net Goodwill Balance Balance as of January 1, 2019 $ 117,176 $ (102,640 ) $ 14,536 Adjustments - - - Balance as of March 31, 2019 $ 117,176 $ (102,640 ) $ 14,536 Gross Goodwill Balance Accumulated Impairment Losses Net Goodwill Balance Balance as of January 1, 2018 $ 117,176 $ (102,640 ) $ 14,536 Adjustments - - - Balance as of March 31, 2018 $ 117,176 $ (102,640 ) $ 14,536 As of March 31, 2019 and 2018, the goodwill balance is related to the Transportation and Skilled Trades segment. |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2019 | |
LONG-TERM DEBT [Abstract] | |
LONG-TERM DEBT | 6. LONG-TERM DEBT Long-term debt consist of the following: March 31, 2019 December 31, 2018 Credit agreement and term loan $ 25,201 $ 49,301 Deferred Financing Fees (608 ) (532 ) 24,593 48,769 Less current maturities (3,635 ) (15,000 ) $ 20,958 $ 33,769 On March 31, 2017, the Company obtained a secured credit facility (the “Credit Facility”) from Sterling National Bank (the “Bank”) pursuant to a Credit Agreement dated March 31, 2017 among the Company, the Company’s subsidiaries and the Bank, which was subsequently amended on November 29, 2017, February 23, 2018, July 11, 2018 and, most recently, on March 6, 2019 (as amended, the “Credit Agreement”). Prior to the most recent amendment of the Credit Agreement (the “Fourth Amendment”), the financial accommodations available to the Borrowers under the Credit Agreement consisted of Pursuant to the terms of the Fourth Amendment and upon its effectiveness, Facility 1 was converted into a term loan (the “Term Loan”) in the original principal amount of $22.7 million (such amount being the entire unpaid principal and accrued interest outstanding under Facility 1 as of the effective date of the Fourth Amendment), which matures on March 31, 2024 (the “Term Loan Maturity Date”). The Term Loan is being repaid The maturity date of Facility 2 is of Under the terms of the Credit Agreement, all draws under Facility 2 for letters of credit or revolving loans and all draws under Facility 3 must be secured by cash collateral in an amount equal to 100% of the aggregate stated amount of the letters of credit issued and revolving loans outstanding through the proceeds of the Term Loan or other available cash of the Company. Notwithstanding such requirement, pursuant to the terms of the Fourth Amendment, a $2.5 million revolving loan was advanced under Facility 2 at the closing of the Fourth Amendment on March 6, 2019 without any requirement for cash collateral and, in the Bank’s sole discretion, an additional $2.5 million of revolving loans may be advanced under Facility 2 without any requirement for cash collateral, consisting of (a) a $1.25 million revolving loan within 15 days after the Bank’s receipt of the Company’s financial statements for the fiscal quarter ending March 31, 2019 and (b) a $1.25 million revolving loan within 15 days after the Bank’s receipt of the Company’s financial statements for the fiscal quarter ending June 30, 2019. The $2.5 million revolving loan advanced under Facility 2 at the closing of the Fourth Amendment and the additional $2.5 million of revolving loans that may be advanced under Facility 2 in the discretion of the Bank, in each case without any requirement for cash collateral, must be repaid on November 1, 2019 and, prior to their repayment, the Borrowers are required to make monthly payments of accrued interest only on such revolving loans. The Term Loan bears interest at a rate per annum equal to the greater of (x) the Bank’s prime rate plus 2.85% and (y) 6.00%. Revolving loans advanced under Facility 2 that are cash collateralized will bear interest at a rate per annum equal to the greater of (x) the Bank’s prime rate and (y) 3.50%. Pursuant to the Fourth Amendment, revolving loans advanced under Facility 2 that are not secured by cash collateral will bear interest at a rate per annum equal to the greater of (x) the Bank’s prime rate plus 2.85% and (y) 6.00%. Revolving loans under Facility 3 bear interest at a rate per annum equal to the greater of (x) the Bank’s prime rate and (y) 3.50%. The Bank is entitled to receive an unused facility fee on the average daily unused balance of Facility 2 at a rate per annum equal to 0.50%, which fee is payable quarterly in arrears. In the event the Bank’s prime rate is greater than or equal to 6.50% while any loans are outstanding, the Borrowers may be required to enter into a hedging contract in form and content satisfactory to the Bank. The Borrowers are required must In connection with the effectiveness of the Fourth Amendment, the Borrowers paid to the Bank a one-time modification fee in the amount of $50,000. Pursuant to the Credit Agreement, in December 2018, the net proceeds of the sale of the Mangonia Park Property, which were held in a non-interest bearing cash collateral account at and by the Bank as additional collateral for the loans outstanding under the Credit Agreement, were applied to the outstanding principal balance of revolving loans outstanding under Facility 1 and, as a result of such repayment, the loan availability under Facility 1 was permanently reduced to a $22.7 million term loan. The Credit Facility is secured by a first priority lien in favor of the Bank on substantially all of the personal property owned by the Company and mortgages on four parcels of real property owned by the Company in Colorado, Tennessee and Texas, at which three of the Company’s schools are located, as well as a former school property owned by the Company located in Connecticut. At the closing of the Credit Facility, the Company drew $25 million under Facility 1, which was used to repay the Company’s previous credit facility and to pay transaction costs associated with closing the Credit Facility. Each issuance of a letter of credit under Facility 2 will require the payment of a letter of credit fee to the Bank equal to a rate per annum of 1.75% on the daily amount available to be drawn under the letter of credit, which fee shall be payable in quarterly installments in arrears. Letters of credit totaling $6.2 million that were outstanding under a $9.5 million letter of credit facility previously provided to the Company by the Bank, which letter of credit facility was set to mature on April 1, 2017, are treated as letters of credit under Facility 2. The terms of the Credit Agreement require the Company to maintain, on deposit in one or more non-interest bearing accounts, a minimum of $5 million in quarterly average aggregate balances, which, if not maintained, results in a fee of $12,500 payable to the Bank for that quarter. In addition to the foregoing, the Credit Agreement contains customary representations, warranties and affirmative and negative covenants . also including financial covenants that (i) restrict capital expenditures tested on a fiscal year end basis; (ii) prohibit the incurrence of a net loss commencing on December 31, 2019; and (iii) require a minimum adjusted EBITDA tested quarterly on a rolling twelve month basis. The Fourth Amendment (i) modifies the minimum adjusted EBITDA required; (ii) eliminates the requirement for a minimum funded debt to adjusted EBITDA ratio; and (iii) requires the maintenance of a maximum funded debt to adjusted EBITDA ratio tested quarterly on a rolling twelve month basis. As of March 31, 2019, the Company had $25.2 million outstanding under the Credit Facility; offset by $0.6 million of deferred finance fees. As of December 31, 2018, the Company had $49.3 million outstanding under the Credit Facility, offset by $0.5 million of deferred finance fees, which were written-off. As of March 31, 2019 and December 31, 2018, letters of credit in the aggregate outstanding principal amount of $4.5 million and $1.8 million, respectively, were outstanding under the Credit Facility. Scheduled maturities of long-term debt including the short-term portion at March 31, 2019 are as follows: Year ending December 31, 2019 $ 3,635 2020 3,405 2021 2,270 2022 2,270 2023 2,270 Thereafter 11,351 $ 25,201 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2019 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY | 7. STOCKHOLDERS’ EQUITY Restricted Stock The Company has two stock incentive plans: a Long-Term Incentive Plan (the “LTIP”) and a Non-Employee Directors Restricted Stock Plan (the “Non-Employee Directors Plan”). Under the LTIP, certain employees receive awards of restricted shares of common stock based on service and performance. The number of shares granted to each employee is based on the fair market value of a share of common stock on the date of grant. On February 28, 2019, restricted shares were granted to certain employees of the Company, which shares ratably vest over three years. There is no restriction on the right to vote or the right to receive dividends with respect to any of such restricted shares. Pursuant to the Non-Employee Directors Plan, each non-employee director of the Company receives an annual award of restricted shares of common stock on the date of the Company’s annual meeting of shareholders. The number of shares granted to each non-employee director is based on the fair market value of a share of common stock on that date. The restricted shares vest on the first anniversary of the grant date. There is no restriction on the right to vote or the right to receive dividends with respect to any of such restricted shares. For the three months ended March 31, 2019 and 2018, the Company completed a net share settlement for 5,518 and 168,254 restricted shares, respectively, on behalf of certain employees that participate in the LTIP upon the vesting of the restricted shares pursuant to the terms of the LTIP. The net share settlement was in connection with income taxes incurred on restricted shares that vested and were transferred to the employees during 2019 and/or 2018, creating taxable income for the employees. At the employees’ request, the Company will pay these taxes on behalf of the employees in exchange for the employees returning an equivalent value of restricted shares to the Company. These transactions resulted in a decrease of less than $0.1 million and $0.3 million for each of the three months ended March 31, 2019 and 2018, respectively, to equity on the condensed consolidated balance sheets as the cash payment of the taxes effectively was a repurchase of the restricted shares granted in previous years. The following is a summary of transactions pertaining to restricted stock: Shares Weighted Average Grant Date Fair Value Per Share Nonvested restricted stock outstanding at December 31, 2018 35,908 $ 2.23 Granted 478,853 3.17 Canceled - - Vested (14,286 ) 2.80 Nonvested restricted stock outstanding at March 31, 2019 500,475 3.11 The restricted stock expense for each of the three months ended March 31, 2019 and 2018 was $0.1 million and $0.4 million, respectively. The unrecognized restricted stock expense as of March 31, 2019 and December 31, 2018 was $1.5 million and $0.1 million, respectively. As of March 31, 2019, outstanding restricted shares under the LTIP had aggregate intrinsic value of $1.6 million. Stock Options The fair value of the stock options used to compute stock-based compensation is the estimated present value at the date of grant using the Black-Scholes option pricing model. The following is a summary of transactions pertaining to stock options: Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2018 139,000 $ 12.14 2.53 years $ - Granted/Canceled/Vested - - - Outstanding at March 31, 2019 139,000 12.14 2.29 years - Vested as of March 31, 2019 139,000 12.14 2.29 years - Exercisable as of March 31, 2019 139,000 12.14 2.29 years - As of March 31, 2019, there was no unrecognized pre-tax compensation expense. The following table presents a summary of stock options outstanding: At March 31, 2019 Stock Options Outstanding Stock Options Exercisable Range of Exercise Prices Shares Contractual Weighted Average Life (years) Weighted Average Price Shares Weighted Average Exercise Price $4.00-$13.99 91,000 2.92 $ 7.79 91,000 $ 7.79 $14.00-$19.99 17,000 0.59 19.98 17,000 19.98 $20.00-$25.00 31,000 1.35 20.62 31,000 20.62 139,000 2.29 12.14 139,000 12.14 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2019 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 8. INCOME TAXES The provision for income taxes for the three months ended March 31, 2019 and 2018 was less than $0.1 million, or 0.9% of pretax loss, and less than $0.1 million, or 0.7% of pretax loss, respectively. The Company assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to recover the existing deferred tax assets. In this regard, a significant objective negative evidence was the cumulative losses incurred by the Company in recent years. On the basis of this evaluation, the realization of the Company’s deferred tax assets was not deemed to be more likely than not and, thus, the Company maintained a full valuation allowance on its net deferred tax assets as of March 31, 2019. |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2019 | |
CONTINGENCIES [Abstract] | |
CONTINGENCIES | 9. CONTINGENCIES In the ordinary conduct of its business, the Company is subject to certain lawsuits, investigations and claims, including, but not limited to, claims involving students or graduates and routine employment matters. Although the Company cannot predict with certainty the ultimate resolution of lawsuits, investigations and claims asserted against it, the Company does not believe that any currently pending legal proceedings to which it is a party will have a material adverse effect on the Company’s business, financial condition, and results of operations or cash flows. In connection with the foregoing, as previously reported, on July 6, 2018, the Company received an administrative subpoena from the Office of the Attorney General of the State of New Jersey (“NJ OAG”). Pursuant to the subpoena, the NJ OAG requested certain documents and detailed information relating to the November 21, 2012 Civil Investigative Demand letter addressed to the Company by the Massachusetts Office of the Attorney General (“MOAG”) that resulted in a previously reported Final Judgment by Consent between the Company and the MOAG dated July 13, 2015. The Company responded to this request and, by letter dated April 11, 2019, the NJ OAG issued a supplemental subpoena requesting additional information for the time period from April 11, 2014 to the present. The Company is preparing its response and continuing to cooperate with the NJ OAG. Also, on February 12, 2019, the Company received a notification from the State of Colorado Department of Law (“CDOL”) advising that it was initiating a compliance examination of one of its subsidiaries, Lincoln Technical Institute, Inc. The examination seeks to review a fixed number of company transactions. The Company is preparing its response and cooperating with the CDOL. |
SEGMENTS
SEGMENTS | 3 Months Ended |
Mar. 31, 2019 | |
SEGMENTS [Abstract] | |
SEGMENTS | 10. SEGMENTS The for-profit education industry has been impacted by numerous regulatory changes, a changing economy and an onslaught of negative media attention. As a result of these challenges, student populations have declined and operating costs have increased. Over the past few years, the Company has closed over ten locations and exited its online business. In 2017, the Company completed the teach-out of its Center City Philadelphia, Pennsylvania; Northeast Philadelphia, Pennsylvania; West Palm Beach, Florida; Brockton, Massachusetts; and Lowell, Massachusetts schools. All of these schools were previously included in our HOPS segment and as of December 31, 2017, they have all been closed. In August 2018, the Company decided to cease operations, effective December 31, 2018, of its Lincoln College of New England (“LCNE”) campus at Southington, Connecticut. LCNE results, which was previously reported in the HOPS segment, is now included in the Transitional segment for all periods presented. The Company completed the teach-out and exited the LCNE campus on December 31, 2018. In the past, we offered any combination of programs at any campus. We have shifted our focus to program offerings that create greater differentiation among campuses and promote attainment of excellence to attract more students and gain market share. Also, strategically, we began offering continuing education training to select employers who hire our graduates and this is best achieved at campuses focused on the applicable profession. As a result of the regulatory environment, market forces and our strategic decisions, we now operate our business in three reportable segments: (a) the Transportation and Skilled Trades segment; (b) the Healthcare and Other Professions segment; and (c) the Transitional segment. Our reportable segments have been determined based on a method by which we now evaluate performance and allocate resources. Each reportable segment represents a group of post-secondary education providers that offer a variety of degree and non-degree academic programs. These segments are organized by key market segments to enhance operational alignment within each segment to more effectively execute our strategic plan. Each of the Company’s schools is a reporting unit and an operating segment. Our operating segments are described below. Transportation and Skilled Trades – Healthcare and Other Professions – Transitional The Company continually evaluates each campus for profitability, earning potential, and customer satisfaction. This evaluation takes several factors into consideration, including the campus’s geographic location and program offerings, as well as skillsets required of our students by their potential employers. The purpose of this evaluation is to ensure that our programs provide our students with the best possible opportunity to succeed in the marketplace with the goals of attracting more students to our programs and, ultimately, to provide our shareholders with the maximum return on their investment. Campuses in the Transitional segment have been subject to this process and have been strategically identified for closure. We evaluate segment performance based on operating results. Adjustments to reconcile segment results to consolidated results are included under the caption “Corporate,” which primarily includes unallocated corporate activity. Summary financial information by reporting segment is as follows: For the Three Months Ended March 31, Revenue Operating Income (Loss) 2019 % of Total 2018 % of Total 2019 2018 Transportation and Skilled Trades $ 44,325 70.1 % $ 42,747 69.1 % $ 1,817 $ 675 Healthcare and Other Professions 18,938 29.9 % 16,741 27.1 % 972 374 Transitional - 0.0 % 2,401 3.9 % - (131 ) Corporate - 0.0 % - 0.0 % (7,653 ) (7,180 ) Total $ 63,263 100.0 % $ 61,889 100.0 % $ (4,864 ) $ (6,262 ) Total Assets March 31, 2019 December 31, 2018 Transportation and Skilled Trades $ 110,715 $ 92,070 Healthcare and Other Professions 27,848 14,078 Transitional - 527 Corporate 17,426 39,363 Total $ 155,989 $ 146,038 |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2019 | |
FAIR VALUE [Abstract] | |
FAIR VALUE | 11. FAIR VALUE The carrying amount and estimated fair value of the Company’s financial instrument assets and liabilities, which are not measured at fair value on the Condensed Consolidated Balance Sheet, are listed in the table below: March 31, 2019 Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Financial Assets: Cash and cash equivalents $ 5,683 $ 5,683 $ - $ - $ 5,683 Restricted cash 4,498 4,498 - - 4,498 Prepaid expenses and other current assets 3,158 - 3,158 - 3,158 Financial Liabilities: Accrued expenses $ 11,963 $ - $ 11,963 $ - $ 11,963 Other short term liabilities 1,773 - 1,773 - 1,773 Credit facility and term loan 24,593 - 24,593 - 24,593 We estimate that the carrying value of the Credit Facility approximates the fair value due to the fact that the Credit Facility was amended in close proximity to March 31, 2019. The carrying amounts reported on the Consolidated Balance Sheets for Cash and cash equivalents, Restricted cash and Noncurrent restricted cash approximate fair value because they are highly liquid. The carrying amounts reported on the Consolidated Balance Sheets for Prepaid expenses and other current assets, Accrued expenses and Other short term liabilities approximate fair value due to the short-term nature of these items. |
RELATED PARTY
RELATED PARTY | 3 Months Ended |
Mar. 31, 2019 | |
RELATED PARTY [Abstract] | |
RELATED PARTY | 12. RELATED PARTY The Company has an agreement with MATCO Tools whereby MATCO provides the Company, on an advance commission basis, credits in MATCO branded tools, tool storage, equipment, and diagnostics products. The chief executive officer of the parent Company of MATCO is considered an immediate family member of one of the Company’s board members. The amount of the Company’s purchases from this third party was $0.6 million for the three months ended March 31, 2019. Management believes that its agreement with MATCO is an arm’s length transaction and on similar terms as would have been obtained from unaffiliated third parties. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Business Activities | Business Activities — Lincoln Educational Services Corporation and its subsidiaries (collectively, the “Company”, “we”, “our” and “us”, as applicable) provide diversified career-oriented post-secondary education to recent high school graduates and working adults. The Company, which currently operates 22 schools in 14 states, The Company’s business is organized into three reportable business segments: (a) Transportation and Skilled Trades, (b) Healthcare and Other Professions (“HOPS”), and (c) Transitional, which refers to businesses that have been or are currently being taught out. On July 9, 2018, New England Institute of Technology at Palm Beach, Inc. (“NEIT”), a wholly-owned subsidiary of the Company, entered into a commercial contract (the “Sale Agreement”) with Elite Property Enterprise, LLC, pursuant to which NEIT agreed to sell to Elite Property Enterprise, LLC the real property owned by NEIT located at 1126 53rd Court North, Mangonia Park, Palm Beach County, Florida and the improvements and certain personal property located thereon (the “Mangonia Park Property”), for a cash purchase price of $2,550,000. On August 23, 2018, NEIT, consummated the sale of the Mangonia Park Property. At the closing, NEIT paid a real estate brokerage fee equal to 5% of the gross sales price and other customary closing costs and expenses. Pursuant to the provisions of the Company’s Credit Agreement with its lender, Sterling National Bank, the net cash proceeds of the sale of the Mangonia Park Property were deposited into an account with the lender to serve as additional security for loans and other financial accommodations provided to the Company and its subsidiaries under the credit facility. In December 2018, the funds were used to repay the outstanding principal balance of the loans outstanding under the credit facility and such repayment permanently reduced the loan outstanding under the credit facility designated as Facility 1 under the Company’s Credit Agreement to a $22.7 million term loan. Effective December 31, 2018, the Company completed the teach-out and ceased operation of its Lincoln College of New England (“LCNE”) campus at Southington, Connecticut. The decision to close the LCNE campus followed the previously reported placement of LCNE on probation by the college’s institutional accreditor, the New England Association of Schools and Colleges (“NEASC”). After evaluating alternative options, the Company concluded that teaching out and closing the campus was in the best interest of the Company and its students. Subsequent to formalizing the LCNE closure decision in August 2018, the Company partnered with Goodwin College, another NEASC- accredited institution in the region, to assist LCNE students to complete their programs of study. The majority of the LCNE students will continue their education at Goodwin College thereby limiting some of the Company’s closing costs. The revenue, net loss and ending population of LCNE, as of December 31, 2017, were $8.4 million, $1.6 million and 397 students, respectively. The Company recorded closing and . were |
Liquidity | Liquidity — |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements |
New Accounting Pronouncements | New Accounting Pronouncements Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU No. 2018-13, “ Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” Fair Value Measurement In June 2018, FASB issued ASU No. 2018-07, “ Improvements to Nonemployee Share-Based Payment Accounting Compensation - Stock Compensation , In February 2018, the FASB issued ASU 2018-02, “ Income Statement-Reporting Comprehensive Income (Topic 220) In February 2016, the FASB issued ASU No. 2016-02, “ Leases In July 2018, FASB issued ASU No. 2018-10, “ Codification Improvements to Topic 842, Leases Leases: Targeted Improvements The amendments in ASU No. 2016-02, ASU No. 2018-10 and ASU No. 2018-11 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and allow for modified retrospective adoption with early adoption permitted. The Company adopted the amendments on January 1, 2019 using the modified retrospective approach and elected the transition relief package of practical expedients by applying previous accounting conclusions under ASC 840 to all leases that existed prior to the transition date. As a result, the Company did not reassess (1) whether existing or expired contracts contain leases, (2) lease classification for any existing or expired leases or (3) whether lease origination costs qualified as initial direct costs. The Company did not elect the practical expedient to use hindsight in determining a lease term and impairment of the right-of-use (“ ”) leases with terms |
Stock-Based Compensation | Stock-Based Compensation The Company measures the value of service and performance-based restricted stock on the fair value of a share of common stock on the date of the grant. The Company amortizes the fair value of service-based restricted stock utilizing straight-line amortization of compensation expense over the requisite service period of the grant. The Company amortizes the fair value of the performance-based restricted stock based on the determination of the probable outcome of the performance condition. If the performance condition is expected to be met, then the Company amortizes the fair value of the number of shares expected to vest utilizing straight-line basis over the requisite performance period of the grant. However, if the associated performance condition is not expected to be met, then the Company does not recognize the stock-based compensation expense. |
Income Taxes | Income Taxes – The Company Income Taxes In accordance with ASC 740, the Company assesses our deferred tax asset to determine whether all or any portion of the asset is more likely than not unrealizable. A valuation allowance is required to be established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized. In accordance with ASC 740, our assessment considers whether there has been sufficient income in recent years and whether sufficient income is expected in future years in order to utilize the deferred tax asset. In evaluating the realizability of deferred income tax assets, the Company considered, among other things, historical levels of income, expected future income, the expected timing of the reversals of existing temporary reporting differences, and the expected impact of tax planning strategies that may be implemented to prevent the potential loss of future income tax benefits. Significant judgment is required in determining the future tax consequences of events that have been recognized in our consolidated financial statements and/or tax returns. Differences between anticipated and actual outcomes of these future tax consequences could have a material impact on the Company’s consolidated financial position or results of operations. Changes in, among other things, income tax legislation, statutory income tax rates, or future income levels could materially impact the Company’s valuation of income tax assets and liabilities and could cause our income tax provision to vary significantly among financial reporting periods. During the three months ended March 31, 2019 and 2018, the Company did not recognize any interest and penalties expense associated with uncertain tax positions. |
WEIGHTED AVERAGE COMMON SHARES
WEIGHTED AVERAGE COMMON SHARES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
WEIGHTED AVERAGE COMMON SHARES [Abstract] | |
Weighted Average Numbers of Common Shares Used to Compute Basic and Diluted Loss Per Share | The weighted average number of common shares used to compute basic and diluted loss per share for the three months ended March 31, 2019 and 2018 was as follows: Three Months Ended March 31, 2019 2018 Basic shares outstanding 24,534,207 24,137,577 Dilutive effect of stock options - - Diluted shares outstanding 24,534,207 24,137,577 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
REVENUE RECOGNITION [Abstract] | |
Depicts Timing of Revenue Recognition | The following table depicts the timing of revenue recognition: Three months ended March 31, 2019 Transportation and Skilled Trades Segment Healthcare and Other Professions Segment Transitional Segment Consolidated Timing of Revenue Recognition Services transferred at a point in time $ 2,081 $ 1,075 $ - $ 3,156 Services transferred over time 42,244 17,863 - 60,107 Total revenues $ 44,325 $ 18,938 $ - $ 63,263 Three months ended March 31, 2018 Transportation and Skilled Trades Segment Healthcare and Other Professions Segment Transitional Segment Consolidated Timing of Revenue Recognition Services transferred at a point in time $ 2,048 $ 732 $ 3 $ 2,783 Services transferred over time 40,699 16,009 2,398 59,106 Total revenues $ 42,747 $ 16,741 $ 2,401 $ 61,889 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
LEASES [Abstract] | |
Cumulative Effect of Changes Made to Condensed Consolidated Balance Sheet | The following table present the cumulative effect of the changes made to the condensed consolidated balance sheets December 31, 2018 Adjustments due to ASC 842 January 1, 2019 Operating lease right-of-use asset $ - $ 37,993 $ 37,993 Current portion of operating lease liability $ - $ 8,999 $ 8,999 Other short-term liabilities $ 968 $ (968 ) $ - Long-term portion of operating lease liability $ - $ 33,372 $ 33,372 Accrued rent $ 3,410 $ (3,410 ) $ - |
Supplemental Cash Flow Information and Non-cash Activity Related to Operating Leases | Supplemental cash flow information and non-cash activity related to our operating leases are as follows: For the Three Months Ended March 31, 2019 Operating cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $ 3,782 Non-cash activity: Lease liabilities arising from obtaining right-of-use assets* $ 47,977 * Includes a new lease entered into on January 1, 2019 of $5.606 million. |
Weighted Average Remaining Lease Term and Discount Rate | Weighted-average remaining lease term and discount rate for our operating leases are as follows: Three Months Ended March 31, 2019 Weighted-average remaining lease term 5.79 years Weighted-average discount rate 14.45 % |
Maturities of Lease Liabilities | Maturities of lease liabilities by fiscal year for our operating leases are as follows: Year ending December 31, 2019 (excluding the three months ended March 31, 2019) $ 11,621 2020 14,087 2021 10,664 2022 8,180 2023 5,811 2024 4,460 Thereafter 13,150 Total lease payments 67,973 Less: imputed interest (22,113 ) Present value of lease liabilities $ 45,860 |
Minimum Lease Payments under Non-cancellable Operating Lease | As of December 31, 2018, minimum lease payments under non-cancelable operating leases by period were expected to be as follows: 2019 $ 16,939 2020 14,183 2021 10,708 2022 8,180 2023 5,811 Thereafter 17,610 $ 73,431 |
GOODWILL AND LONG-LIVED ASSETS
GOODWILL AND LONG-LIVED ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
GOODWILL AND LONG-LIVED ASSETS [Abstract] | |
Changes in Carrying Amount of Goodwill | The carrying amount of goodwill at March 31, 2019 and 2018 is as follows: Gross Goodwill Balance Accumulated Impairment Losses Net Goodwill Balance Balance as of January 1, 2019 $ 117,176 $ (102,640 ) $ 14,536 Adjustments - - - Balance as of March 31, 2019 $ 117,176 $ (102,640 ) $ 14,536 Gross Goodwill Balance Accumulated Impairment Losses Net Goodwill Balance Balance as of January 1, 2018 $ 117,176 $ (102,640 ) $ 14,536 Adjustments - - - Balance as of March 31, 2018 $ 117,176 $ (102,640 ) $ 14,536 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
LONG-TERM DEBT [Abstract] | |
Long-term Debt | Long-term debt consist of the following: March 31, 2019 December 31, 2018 Credit agreement and term loan $ 25,201 $ 49,301 Deferred Financing Fees (608 ) (532 ) 24,593 48,769 Less current maturities (3,635 ) (15,000 ) $ 20,958 $ 33,769 |
Maturities of Long-term Debt | Scheduled maturities of long-term debt including the short-term portion at March 31, 2019 are as follows: Year ending December 31, 2019 $ 3,635 2020 3,405 2021 2,270 2022 2,270 2023 2,270 Thereafter 11,351 $ 25,201 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
STOCKHOLDERS' EQUITY [Abstract] | |
Transactions Pertaining to Restricted Stock | The following is a summary of transactions pertaining to restricted stock: Shares Weighted Average Grant Date Fair Value Per Share Nonvested restricted stock outstanding at December 31, 2018 35,908 $ 2.23 Granted 478,853 3.17 Canceled - - Vested (14,286 ) 2.80 Nonvested restricted stock outstanding at March 31, 2019 500,475 3.11 |
Transactions Pertaining to Option Plans | The following is a summary of transactions pertaining to stock options: Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2018 139,000 $ 12.14 2.53 years $ - Granted/Canceled/Vested - - - Outstanding at March 31, 2019 139,000 12.14 2.29 years - Vested as of March 31, 2019 139,000 12.14 2.29 years - Exercisable as of March 31, 2019 139,000 12.14 2.29 years - |
Options Outstanding | The following table presents a summary of stock options outstanding: At March 31, 2019 Stock Options Outstanding Stock Options Exercisable Range of Exercise Prices Shares Contractual Weighted Average Life (years) Weighted Average Price Shares Weighted Average Exercise Price $4.00-$13.99 91,000 2.92 $ 7.79 91,000 $ 7.79 $14.00-$19.99 17,000 0.59 19.98 17,000 19.98 $20.00-$25.00 31,000 1.35 20.62 31,000 20.62 139,000 2.29 12.14 139,000 12.14 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
SEGMENTS [Abstract] | |
Financial Information by Reporting Segment | Summary financial information by reporting segment is as follows: For the Three Months Ended March 31, Revenue Operating Income (Loss) 2019 % of Total 2018 % of Total 2019 2018 Transportation and Skilled Trades $ 44,325 70.1 % $ 42,747 69.1 % $ 1,817 $ 675 Healthcare and Other Professions 18,938 29.9 % 16,741 27.1 % 972 374 Transitional - 0.0 % 2,401 3.9 % - (131 ) Corporate - 0.0 % - 0.0 % (7,653 ) (7,180 ) Total $ 63,263 100.0 % $ 61,889 100.0 % $ (4,864 ) $ (6,262 ) Total Assets March 31, 2019 December 31, 2018 Transportation and Skilled Trades $ 110,715 $ 92,070 Healthcare and Other Professions 27,848 14,078 Transitional - 527 Corporate 17,426 39,363 Total $ 155,989 $ 146,038 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
FAIR VALUE [Abstract] | |
Fair Value, by Balance Sheet Grouping | The carrying amount and estimated fair value of the Company’s financial instrument assets and liabilities, which are not measured at fair value on the Condensed Consolidated Balance Sheet, are listed in the table below: March 31, 2019 Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Financial Assets: Cash and cash equivalents $ 5,683 $ 5,683 $ - $ - $ 5,683 Restricted cash 4,498 4,498 - - 4,498 Prepaid expenses and other current assets 3,158 - 3,158 - 3,158 Financial Liabilities: Accrued expenses $ 11,963 $ - $ 11,963 $ - $ 11,963 Other short term liabilities 1,773 - 1,773 - 1,773 Credit facility and term loan 24,593 - 24,593 - 24,593 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | Jul. 09, 2018USD ($) | Mar. 31, 2019USD ($)SchoolStateCampusSegment | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)Population |
Business Activities [Abstract] | |||||
Number of schools | School | 22 | ||||
Number of states in which schools operate across the United States | State | 14 | ||||
Number of campuses treated as destination schools | Campus | 5 | ||||
Number of reportable segments | Segment | 3 | ||||
Revenues | $ 63,263 | $ 61,889 | |||
Net loss | (5,467) | (6,874) | |||
Liquidity [Abstract] | |||||
Cash and cash equivalents | 10,181 | 13,353 | $ 45,946 | $ 54,554 | |
Restricted cash | 4,500 | ||||
Income Taxes [Abstract] | |||||
Interest and penalties expense | $ 0 | $ 0 | |||
Credit Facility 1 [Member] | |||||
Business Activities [Abstract] | |||||
Line of credit facility, maximum borrowing capacity | 22,700 | ||||
Mangonia Park Property [Member] | |||||
Business Activities [Abstract] | |||||
Cash purchase price | $ 2,550 | ||||
Real estate brokerage fee percentage | 5.00% | ||||
Lincoln College of New England [Member] | |||||
Business Activities [Abstract] | |||||
Revenues | 8,400 | ||||
Net loss | $ 1,600 | ||||
Population | Population | 397 | ||||
Lease termination costs | 1,600 | ||||
Severance payment | $ 700 |
WEIGHTED AVERAGE COMMON SHARE_2
WEIGHTED AVERAGE COMMON SHARES (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Shares used to compute basic and diluted loss income per share [Abstract] | ||
Basic shares outstanding (in shares) | 24,534,207 | 24,137,577 |
Dilutive effect of stock options (in shares) | 0 | 0 |
Diluted shares outstanding (in shares) | 24,534,207 | 24,137,577 |
Stock Option 2 [Member] | ||
Antidilutive Shares Details [Abstract] | ||
Antidilutive shares excluded from computation of loss per share (in shares) | 175,675 | 127,973 |
Stock Option 1 [Member] | ||
Antidilutive Shares Details [Abstract] | ||
Antidilutive shares excluded from computation of loss per share (in shares) | 139,000 | 147,667 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Disaggregation of Revenue [Abstract] | |||
Total revenues | $ 63,263 | $ 61,889 | |
Unearned tuition | 18,328 | $ 22,545 | |
Revenue recognized included in contract liability | 19,100 | ||
ASU 2016-10 [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Unearned tuition | 18,300 | $ 22,500 | |
Services Transferred at a Point in Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Total revenues | 3,156 | 2,783 | |
Services Transferred over Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Total revenues | 60,107 | 59,106 | |
Transportation and Skilled Trades Segment [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Total revenues | 44,325 | 42,747 | |
Transportation and Skilled Trades Segment [Member] | Services Transferred at a Point in Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Total revenues | 2,081 | 2,048 | |
Transportation and Skilled Trades Segment [Member] | Services Transferred over Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Total revenues | 42,244 | 40,699 | |
Healthcare and Other Professions Segment [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Total revenues | 18,938 | 16,741 | |
Healthcare and Other Professions Segment [Member] | Services Transferred at a Point in Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Total revenues | 1,075 | 732 | |
Healthcare and Other Professions Segment [Member] | Services Transferred over Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Total revenues | 17,863 | 16,009 | |
Transitional Segment [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Total revenues | 0 | 2,401 | |
Transitional Segment [Member] | Services Transferred at a Point in Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Total revenues | 0 | 3 | |
Transitional Segment [Member] | Services Transferred over Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Total revenues | $ 0 | $ 2,398 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | ||
Operating Leases [Abstract] | |||
Operating lease cost | $ 3,600 | ||
Cumulative Effect of Changes Made to Condensed Consolidated Balance Sheet [Abstract] | |||
Operating lease right-of-use asset | 39,323 | $ 0 | |
Current portion of operating lease liability | 9,508 | 0 | |
Other short-term liabilities | 968 | ||
Long-term portion of operating lease liability | 36,352 | 0 | |
Accrued rent | 0 | 3,410 | |
Operating cash flow information [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities | 3,782 | ||
Non-cash activity [Abstract] | |||
Lease liabilities arising from obtaining right-of-use assets | [1] | $ 47,977 | |
Weighted Average Remaining Lease Term and Discount Rate [Abstract] | |||
Weighted-average remaining lease term | 5 years 9 months 14 days | ||
Weighted-average discount rate | 14.45% | ||
Maturities of Lease Liabilities [Abstract] | |||
2019 (excluding the three months ended March 31, 2019) | $ 11,621 | ||
2020 | 14,087 | ||
2021 | 10,664 | ||
2022 | 8,180 | ||
2023 | 5,811 | ||
2024 | 4,460 | ||
Thereafter | 13,150 | ||
Total lease payments | 67,973 | ||
Less: imputed interest | (22,113) | ||
Present value of lease liabilities | $ 45,860 | 5,606 | |
Minimum Lease Payments under Non-cancellable Operating Leases [Abstract] | |||
2019 | 16,939 | ||
2020 | 14,183 | ||
2021 | 10,708 | ||
2022 | 8,180 | ||
2023 | 5,811 | ||
Thereafter | 17,610 | ||
Total | 73,431 | ||
ASU 2016-02 [Member] | |||
Cumulative Effect of Changes Made to Condensed Consolidated Balance Sheet [Abstract] | |||
Operating lease right-of-use asset | 37,993 | ||
Current portion of operating lease liability | 8,999 | ||
Other short-term liabilities | 0 | ||
Long-term portion of operating lease liability | 33,372 | ||
Accrued rent | 0 | ||
ASU 2016-02 [Member] | Adjustments Due to ASC 842 [Member] | |||
Cumulative Effect of Changes Made to Condensed Consolidated Balance Sheet [Abstract] | |||
Operating lease right-of-use asset | 37,993 | ||
Current portion of operating lease liability | 8,999 | ||
Other short-term liabilities | (968) | ||
Long-term portion of operating lease liability | 33,372 | ||
Accrued rent | $ (3,410) | ||
Minimum [Member] | |||
Operating Leases [Abstract] | |||
Remaining lease term | 1 year | ||
Maximum [Member] | |||
Operating Leases [Abstract] | |||
Remaining lease term | 11 years | ||
Extension period for leases | 5 years | ||
[1] | Includes a new lease entered into on January 1, 2019 of $5.6 million. |
GOODWILL AND LONG-LIVED ASSET_2
GOODWILL AND LONG-LIVED ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
GOODWILL AND LONG-LIVED ASSETS [Abstract] | ||||
Impairment of long-lived assets | $ 0 | $ 0 | ||
Changes in carrying amount of goodwill [Abstract] | ||||
Gross Goodwill Balance | 117,176 | 117,176 | $ 117,176 | $ 117,176 |
Accumulated Impairment Losses | (102,640) | (102,640) | (102,640) | (102,640) |
Net Goodwill Balance | 14,536 | 14,536 | $ 14,536 | $ 14,536 |
Adjustments | $ 0 | $ 0 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) $ in Thousands | Mar. 06, 2019USD ($) | Mar. 31, 2019USD ($)Property | Dec. 31, 2018USD ($) | Jul. 11, 2018USD ($) |
Long-term debt [Abstract] | ||||
Deferred Financing Fees | $ (608) | $ (532) | ||
Long term debt | 24,593 | 48,769 | ||
Less current maturities | (3,635) | (15,000) | ||
Long-term debt, excluding current maturities | $ 20,958 | 33,769 | ||
Number of properties owned | Property | 4 | |||
Letters of credit outstanding | $ 4,500 | 1,800 | ||
Scheduled maturities of long-term debt [Abstract] | ||||
2019 | 3,635 | |||
2020 | 3,405 | |||
2021 | 2,270 | |||
2022 | 2,270 | |||
2023 | 2,270 | |||
Thereafter | 11,351 | |||
Long term debt | $ 25,201 | |||
Colorado, Tennessee and Texas Properties [Member] | ||||
Long-term debt [Abstract] | ||||
Number of properties owned | Property | 3 | |||
Connecticut [Member] | ||||
Long-term debt [Abstract] | ||||
Number of properties owned | Property | 1 | |||
Prime Rate [Member] | ||||
Long-term debt [Abstract] | ||||
Interest rate on credit facility | 6.50% | |||
Letter of Credit [Member] | ||||
Long-term debt [Abstract] | ||||
Percentage of letter of credit fee, quarterly installment | 1.75% | |||
Letters of credit outstanding | $ 6,200 | |||
Maximum availability under the facility previously provided | $ 9,500 | |||
Percentage of unused facility fee payable quarterly | 1.25% | |||
Credit Agreement and Term Loan [Member] | ||||
Long-term debt [Abstract] | ||||
Long-term line of credit | $ 25,201 | 49,301 | ||
Term Loan [Member] | ||||
Long-term debt [Abstract] | ||||
Line of credit facility, remaining borrowing capacity | $ 22,700 | |||
Credit Agreement [Member] | ||||
Long-term debt [Abstract] | ||||
Percentage of letters of credit margin against available funds in cash collateral | 100.00% | |||
Minimum quarterly average aggregate balances to be maintained | $ 5,000 | |||
Bank fees if minimum quarterly average aggregate balances is not maintained | 12,500 | |||
Modification fees paid to bank | 50,000 | |||
Revolving Credit Facility 1 [Member] | ||||
Long-term debt [Abstract] | ||||
Line of credit facility, maximum borrowing capacity | $ 25,000 | |||
Line of credit facility, remaining borrowing capacity | $ 22,700 | |||
Credit facility drew down amount | $ 25,000 | |||
Expiration date of credit facility | Mar. 31, 2024 | |||
Percentage of net proceeds of sale used to pay down principal amount | 25.00% | |||
Scheduled maturities of long-term debt [Abstract] | ||||
2019 | $ 200 | |||
2020 | 600 | |||
2021 | 400 | |||
2022 | 400 | |||
2023 | $ 400 | |||
Revolving Credit Facility 2 [Member] | ||||
Long-term debt [Abstract] | ||||
Line of credit facility, maximum borrowing capacity | 25,000 | |||
Line of credit facility, remaining borrowing capacity | 2,500 | |||
Line of credit facility, additional borrowing capacity | 2,500 | |||
Expiration date of credit facility | Apr. 30, 2020 | |||
Revolving Credit Facility 2 [Member] | Prime Rate [Member] | ||||
Long-term debt [Abstract] | ||||
Interest rate on credit facility | 3.50% | |||
Revolving Credit Facility 2 [Member] | Letter of Credit [Member] | ||||
Long-term debt [Abstract] | ||||
Line of credit facility, maximum borrowing capacity | 10,000 | |||
Revolving Credit Facility 3 [Member] | ||||
Long-term debt [Abstract] | ||||
Line of credit facility, maximum borrowing capacity | $ 15,000 | |||
Expiration date of credit facility | May 31, 2019 | |||
Revolving Credit Facility 3 [Member] | Prime Rate [Member] | ||||
Long-term debt [Abstract] | ||||
Interest rate on credit facility | 3.50% | |||
Tranche A [Member] | Term Loan [Member] | Prime Rate [Member] | ||||
Long-term debt [Abstract] | ||||
Interest rate on credit facility | 2.85% | |||
Tranche A [Member] | Revolving Credit Facility 2 [Member] | ||||
Long-term debt [Abstract] | ||||
Line of credit facility, remaining borrowing capacity | 1,250 | |||
Number of days for bank to receive financial statements after fiscal period | 15 days | |||
Tranche A [Member] | Revolving Credit Facility 2 [Member] | Prime Rate [Member] | ||||
Long-term debt [Abstract] | ||||
Interest rate on credit facility | 2.85% | |||
Percentage of unused facility fee payable quarterly | 0.50% | |||
Tranche B [Member] | Term Loan [Member] | Prime Rate [Member] | ||||
Long-term debt [Abstract] | ||||
Interest rate on credit facility | 6.00% | |||
Tranche B [Member] | Revolving Credit Facility 2 [Member] | ||||
Long-term debt [Abstract] | ||||
Line of credit facility, remaining borrowing capacity | $ 1,250 | |||
Number of days for bank to receive financial statements after fiscal period | 15 days | |||
Tranche B [Member] | Revolving Credit Facility 2 [Member] | Prime Rate [Member] | ||||
Long-term debt [Abstract] | ||||
Interest rate on credit facility | 6.00% |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)Plan$ / sharesshares | Mar. 31, 2018USD ($)shares | Dec. 31, 2018USD ($)$ / sharesshares | |
Stockholders' Equity Note Details [Abstract] | |||
Number of stock incentive plans | Plan | 2 | ||
Shares [Abstract] | |||
Outstanding, beginning balance (in shares) | shares | 139,000 | ||
Granted (in shares) | shares | 0 | ||
Canceled (in shares) | shares | 0 | ||
Vested (in shares) | shares | 0 | ||
Outstanding, ending balance (in shares) | shares | 139,000 | 139,000 | |
Vested (in shares) | shares | 139,000 | ||
Exercisable, ending balance (in shares) | shares | 139,000 | ||
Weighted Average Exercise Price Per Share [Abstract] | |||
Outstanding, beginning balance (in dollars per share) | $ 12.14 | ||
Granted (in dollars per share) | 0 | ||
Canceled (in dollars per share) | 0 | ||
Vested (in dollars per share) | 0 | ||
Outstanding, ending balance (in dollars per share) | 12.14 | $ 12.14 | |
Vested or expected to vest (in dollars per share) | 12.14 | ||
Exercisable, ending balance (in dollars per share) | $ 12.14 | ||
Weighted Average Remaining Contractual Term [Abstract] | |||
Outstanding | 2 years 3 months 14 days | 2 years 6 months 11 days | |
Vested or expected to vest | 2 years 3 months 14 days | ||
Exercisable | 2 years 3 months 14 days | ||
Aggregate Intrinsic Value [Abstract] | |||
Outstanding, beginning balance | $ | $ 0 | ||
Granted | $ | 0 | ||
Canceled | $ | 0 | ||
Vested | $ | 0 | ||
Outstanding, ending balance | $ | 0 | $ 0 | |
Vested or expected to vest | $ | 0 | ||
Exercisable, ending balance | $ | $ 0 | ||
Stock Options Outstanding [Abstract] | |||
Shares (in shares) | shares | 139,000 | ||
Contractual Weighted Average Life | 2 years 3 months 14 days | ||
Weighted Average Price (in dollars per share) | $ 12.14 | ||
Stock Options Exercisable [Abstract] | |||
Shares (in shares) | shares | 139,000 | ||
Weighted Average Exercise Price (in dollars per share) | $ 12.14 | ||
Stock Options [Member] | |||
Aggregate Intrinsic Value [Abstract] | |||
Unrecognized pre-tax compensation expense | $ | $ 0 | ||
Restricted Stock [Member] | |||
Shares [Abstract] | |||
Nonvested restricted stock outstanding, beginning balance (in shares) | shares | 35,908 | ||
Granted (in shares) | shares | 478,853 | ||
Canceled (in shares) | shares | 0 | ||
Vested (in shares) | shares | (14,286) | ||
Nonvested restricted stock outstanding, ending balance (in shares) | shares | 500,475 | 35,908 | |
Weighted Average Grant Date Fair Value [Abstract] | |||
Nonvested restricted stock outstanding, beginning balance (in dollars per share) | $ 2.23 | ||
Granted (in dollars per share) | 3.17 | ||
Canceled (in dollars per share) | 0 | ||
Vested (in dollars per share) | 2.80 | ||
Nonvested restricted stock outstanding, ending balance (in dollars per share) | $ 3.11 | $ 2.23 | |
Recognized restricted stock expense | $ | $ 100 | $ 400 | |
Unrecognized restricted stock expense | $ | $ 1,500 | $ 100 | |
LTIP [Member] | |||
Stockholders' Equity Note Details [Abstract] | |||
Net share settlement for restricted stock (in shares) | shares | 5,518 | 168,254 | |
LTIP [Member] | Maximum [Member] | |||
Stockholders' Equity Note Details [Abstract] | |||
Decrease in equity due to payment of tax for employee | $ | $ 100 | $ 300 | |
LTIP [Member] | February 28, 2019 [Member] | |||
Stockholders' Equity Note Details [Abstract] | |||
Vesting period of performance-based shares | 3 years | ||
LTIP [Member] | Restricted Stock [Member] | |||
Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding restricted shares, intrinsic value | $ | $ 1,600 | ||
$ 4.00-$13.99 [Member] | |||
Range of Exercise Prices [Abstract] | |||
Range of Exercise Prices, Minimum (in dollars per share) | $ 4 | ||
Range of Exercise Prices, Maximum (in dollars per share) | $ 13.99 | ||
Stock Options Outstanding [Abstract] | |||
Shares (in shares) | shares | 91,000 | ||
Contractual Weighted Average Life | 2 years 11 months 1 day | ||
Weighted Average Price (in dollars per share) | $ 7.79 | ||
Stock Options Exercisable [Abstract] | |||
Shares (in shares) | shares | 91,000 | ||
Weighted Average Exercise Price (in dollars per share) | $ 7.79 | ||
$ 14.00-$19.99 [Member] | |||
Range of Exercise Prices [Abstract] | |||
Range of Exercise Prices, Minimum (in dollars per share) | 14 | ||
Range of Exercise Prices, Maximum (in dollars per share) | $ 19.99 | ||
Stock Options Outstanding [Abstract] | |||
Shares (in shares) | shares | 17,000 | ||
Contractual Weighted Average Life | 7 months 2 days | ||
Weighted Average Price (in dollars per share) | $ 19.98 | ||
Stock Options Exercisable [Abstract] | |||
Shares (in shares) | shares | 17,000 | ||
Weighted Average Exercise Price (in dollars per share) | $ 19.98 | ||
$ 20.00-$25.00 [Member] | |||
Range of Exercise Prices [Abstract] | |||
Range of Exercise Prices, Minimum (in dollars per share) | 20 | ||
Range of Exercise Prices, Maximum (in dollars per share) | $ 25 | ||
Stock Options Outstanding [Abstract] | |||
Shares (in shares) | shares | 31,000 | ||
Contractual Weighted Average Life | 1 year 4 months 6 days | ||
Weighted Average Price (in dollars per share) | $ 20.62 | ||
Stock Options Exercisable [Abstract] | |||
Shares (in shares) | shares | 31,000 | ||
Weighted Average Exercise Price (in dollars per share) | $ 20.62 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
INCOME TAXES [Abstract] | ||
Provision for income taxes | $ 50 | $ 50 |
Effective income tax rate | 0.90% | 0.70% |
SEGMENTS (Details)
SEGMENTS (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)SegmentLocation | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
SEGMENTS [Abstract] | |||
Number of locations closed | Location | 10 | ||
Number of reportable segments | Segment | 3 | ||
Summary financial information by reporting segment [Abstract] | |||
Revenues | $ 63,263 | $ 61,889 | |
Percentage of Total Revenue | 100.00% | 100.00% | |
Operating Income (Loss) | $ (4,864) | $ (6,262) | |
Total Assets | 155,989 | $ 146,038 | |
Transportation and Skilled Trades [Member] | |||
Summary financial information by reporting segment [Abstract] | |||
Revenues | 44,325 | 42,747 | |
Healthcare and Other Professions [Member] | |||
Summary financial information by reporting segment [Abstract] | |||
Revenues | 18,938 | 16,741 | |
Transitional [Member] | |||
Summary financial information by reporting segment [Abstract] | |||
Revenues | 0 | 2,401 | |
Reportable Segments [Member] | Transportation and Skilled Trades [Member] | |||
Summary financial information by reporting segment [Abstract] | |||
Revenues | $ 44,325 | $ 42,747 | |
Percentage of Total Revenue | 70.10% | 69.10% | |
Operating Income (Loss) | $ 1,817 | $ 675 | |
Total Assets | 110,715 | 92,070 | |
Reportable Segments [Member] | Healthcare and Other Professions [Member] | |||
Summary financial information by reporting segment [Abstract] | |||
Revenues | $ 18,938 | $ 16,741 | |
Percentage of Total Revenue | 29.90% | 27.10% | |
Operating Income (Loss) | $ 972 | $ 374 | |
Total Assets | 27,848 | 14,078 | |
Reportable Segments [Member] | Transitional [Member] | |||
Summary financial information by reporting segment [Abstract] | |||
Revenues | $ 0 | $ 2,401 | |
Percentage of Total Revenue | 0.00% | 3.90% | |
Operating Income (Loss) | $ 0 | $ (131) | |
Total Assets | 0 | 527 | |
Corporate [Member] | |||
Summary financial information by reporting segment [Abstract] | |||
Revenues | $ 0 | $ 0 | |
Percentage of Total Revenue | 0.00% | 0.00% | |
Operating Income (Loss) | $ (7,653) | $ (7,180) | |
Total Assets | $ 17,426 | $ 39,363 |
FAIR VALUE (Details)
FAIR VALUE (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Carrying Amount [Member] | |
Financial Assets [Abstract] | |
Cash and cash equivalents | $ 5,683 |
Restricted cash | 4,498 |
Prepaid expenses and other current assets | 3,158 |
Financial Liabilities [Abstract] | |
Accrued expenses | 11,963 |
Other short-term liabilities | 1,773 |
Credit facility and term loan | 24,593 |
Fair Value [Member] | |
Financial Assets [Abstract] | |
Cash and cash equivalents | 5,683 |
Restricted cash | 4,498 |
Prepaid expenses and other current assets | 3,158 |
Financial Liabilities [Abstract] | |
Accrued expenses | 11,963 |
Other short-term liabilities | 1,773 |
Credit facility and term loan | 24,593 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | |
Financial Assets [Abstract] | |
Cash and cash equivalents | 5,683 |
Restricted cash | 4,498 |
Prepaid expenses and other current assets | 0 |
Financial Liabilities [Abstract] | |
Accrued expenses | 0 |
Other short-term liabilities | 0 |
Credit facility and term loan | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | |
Financial Assets [Abstract] | |
Cash and cash equivalents | 0 |
Restricted cash | 0 |
Prepaid expenses and other current assets | 3,158 |
Financial Liabilities [Abstract] | |
Accrued expenses | 11,963 |
Other short-term liabilities | 1,773 |
Credit facility and term loan | 24,593 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | |
Financial Assets [Abstract] | |
Cash and cash equivalents | 0 |
Restricted cash | 0 |
Prepaid expenses and other current assets | 0 |
Financial Liabilities [Abstract] | |
Accrued expenses | 0 |
Other short-term liabilities | 0 |
Credit facility and term loan | $ 0 |
RELATED PARTY (Details)
RELATED PARTY (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
RELATED PARTY [Abstract] | |
Purchases from related party | $ 0.6 |