Filed: 14 Aug 19

Document and Entity Information

Document and Entity Information - shares6 Months Ended
Jun. 30, 2019Aug. 12, 2019
Cover [Abstract]
Entity Registrant NameLINCOLN EDUCATIONAL SERVICES CORP
Entity Central Index Key0001286613
Current Fiscal Year End Date--12-31
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Shell Companyfalse
Entity Filer CategoryNon-accelerated Filer
Entity Small Businesstrue
Entity Emerging Growth Companyfalse
Entity Common Stock, Shares Outstanding25,231,710
Document Type10-Q
Amendment Flagfalse
Document Period End DateJun. 30,
2019
Document Fiscal Year Focus2019
Document Fiscal Period FocusQ2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in ThousandsJun. 30, 2019Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents $ 6,489 $ 17,571
Restricted cash4,497 16,775
Accounts receivable, less allowance of $16,195 and $15,590 at June 30, 2019 and December 31, 2018, respectively22,083 18,675
Inventories2,086 1,451
Prepaid income taxes and income taxes receivable389 178
Prepaid expenses and other current assets4,634 2,461
Total current assets40,178 57,111
PROPERTY, EQUIPMENT AND FACILITIES - At cost, net of accumulated depreciation and amortization of $173,923 and $171,109 at June 30, 2019 and December 31, 2018, respectively47,480 49,292
OTHER ASSETS:
Noncurrent restricted cash0 11,600
Noncurrent receivables, less allowance of $1,575 and $1,403 at June 30, 2019 and December 31, 2018, respectively13,662 12,175
Deferred income taxes, net0 424
Operating lease right-of-use assets37,951 0
Goodwill14,536 14,536
Other assets, net1,091 900
Total other assets67,240 39,635
TOTAL154,898 146,038
CURRENT LIABILITIES:
Current portion of credit agreement4,579 15,000
Unearned tuition19,716 22,545
Accounts payable18,411 14,107
Accrued expenses9,123 10,605
Current portion of operating lease liabilities9,840 0
Other short-term liabilities1,090 2,324
Total current liabilities62,759 64,581
NONCURRENT LIABILITIES:
Long-term credit agreement and term loan21,435 33,769
Pension plan liabilities4,189 4,271
Deferred income taxes, net93 0
Long-term portion of operating lease liabilities34,465 0
Accrued rent0 3,410
Other long-term liabilities89 141
Total liabilities123,030 106,172
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, no par value - 10,000,000 shares authorized, no shares issued and outstanding at June 30, 2019 and December 31, 20180 0
Common stock, no par value - authorized: 100,000,000 shares at June 30, 2019 and December 31, 2018; issued and outstanding: 31,142,251 shares at June 30, 2019 and 30,552,333 shares at December 31, 2018141,377 141,377
Additional paid-in capital29,709 29,484
Treasury stock at cost - 5,910,541 shares at June 30, 2019 and December 31, 2018(82,860)(82,860)
Accumulated deficit(52,604)(44,073)
Accumulated other comprehensive loss(3,754)(4,062)
Total stockholders' equity31,868 39,866
TOTAL $ 154,898 $ 146,038

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in ThousandsJun. 30, 2019Dec. 31, 2018
CURRENT ASSETS:
Accounts receivable, allowance $ 16,195 $ 15,590
PROPERTY, EQUIPMENT AND FACILITIES - accumulated depreciation and amortization173,923 171,109
OTHER ASSETS:
Noncurrent receivables, allowance $ 1,575 $ 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)31,142,251 30,552,333
Common stock, shares outstanding (in shares)31,142,251 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 Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract]
REVENUE $ 63,569 $ 61,120 $ 126,833 $ 123,009
COSTS AND EXPENSES:
Educational services and facilities29,749 30,179 59,728 60,682
Selling, general and administrative35,913 34,471 74,062 72,002
Loss (gain) on disposition of assets0 (7)1 110
Total costs & expenses65,662 64,643 133,791 132,794
OPERATING LOSS(2,093)(3,523)(6,958)(9,785)
OTHER:
Interest income2 8 7 19
Interest expense(829)(539)(1,386)(1,112)
LOSS BEFORE INCOME TAXES(2,920)(4,054)(8,337)(10,878)
PROVISION FOR INCOME TAXES144 50 194 100
NET LOSS $ (3,064) $ (4,104) $ (8,531) $ (10,978)
Basic
Net loss per share (in dollars per share) $ (0.12) $ (0.17) $ (0.35) $ (0.45)
Diluted
Net loss per share (in dollars per share) $ (0.12) $ (0.17) $ (0.35) $ (0.45)
Weighted average number of common shares outstanding:
Basic (in shares)24,555,435 24,485,500 24,544,879 24,312,500
Diluted (in shares)24,555,435 24,485,500 24,544,879 24,312,500

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) [Abstract]
Net loss $ (3,064) $ (4,104) $ (8,531) $ (10,978)
Other comprehensive income
Employee pension plan adjustments154 161 308 323
Comprehensive loss $ (2,910) $ (3,943) $ (8,223) $ (10,655)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in ThousandsCommon 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, 201730,624,407
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss $ 0 0 0 (6,874)0 (6,874)
Employee pension plan adjustments0 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, 201830,570,099
BALANCE at Dec. 31, 2017 $ 141,377 29,334 (82,860)(37,528)(4,510)45,813
BALANCE (in shares) at Dec. 31, 201730,624,407
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss(10,978)
BALANCE at Jun. 30, 2018 $ 141,377 29,444 (82,860)(48,506)(4,187)35,268
BALANCE (in shares) at Jun. 30, 201830,552,333
BALANCE at Mar. 31, 2018 $ 141,377 29,452 (82,860)(44,402)(4,348)39,219
BALANCE (in shares) at Mar. 31, 201830,570,099
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss $ 0 0 0 (4,104)0 (4,104)
Employee pension plan adjustments0 0 0 0 161 161
Stock-based compensation expense
Restricted stock $ 0 53 0 0 0 53
Restricted stock (in shares)21,622
Net share settlement for equity-based compensation $ 0 (61)0 0 0 (61)
Net share settlement for equity-based compensation (in shares)(39,388)
BALANCE at Jun. 30, 2018 $ 141,377 29,444 (82,860)(48,506)(4,187)35,268
BALANCE (in shares) at Jun. 30, 201830,552,333
BALANCE at Dec. 31, 2018 $ 141,377 29,484 (82,860)(44,073)(4,062) $ 39,866
BALANCE (in shares) at Dec. 31, 201830,552,333 30,552,333
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss $ 0 0 0 (5,467)0 $ (5,467)
Employee pension plan adjustments0 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, 201931,025,668
BALANCE at Dec. 31, 2018 $ 141,377 29,484 (82,860)(44,073)(4,062) $ 39,866
BALANCE (in shares) at Dec. 31, 201830,552,333 30,552,333
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss $ (8,531)
BALANCE at Jun. 30, 2019 $ 141,377 29,709 (82,860)(52,604)(3,754) $ 31,868
BALANCE (in shares) at Jun. 30, 201931,142,251 31,142,251
BALANCE at Mar. 31, 2019 $ 141,377 29,518 (82,860)(49,540)(3,908) $ 34,587
BALANCE (in shares) at Mar. 31, 201931,025,668
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss $ 0 0 0 (3,064)0 (3,064)
Employee pension plan adjustments0 0 0 0 154 154
Stock-based compensation expense
Restricted stock $ 0 191 0 0 0 191
Restricted stock (in shares)116,583
Net share settlement for equity-based compensation $ 0 0 0 0 0 0
Net share settlement for equity-based compensation (in shares)0
BALANCE at Jun. 30, 2019 $ 141,377 $ 29,709 $ (82,860) $ (52,604) $ (3,754) $ 31,868
BALANCE (in shares) at Jun. 30, 201931,142,251 31,142,251

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands6 Months Ended
Jun. 30, 2019Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (8,531) $ (10,978)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization3,989 4,188
Amortization of deferred finance charges194 179
Deferred income taxes424 0
Loss on disposition of assets1 110
Fixed asset donation(893)0
Provision for doubtful accounts8,923 7,550
Stock-based compensation expense242 482
Deferred rent0 (481)
(Increase) decrease in assets:
Accounts receivable(13,818)(13,320)
Inventories(635)(145)
Prepaid income taxes and income taxes receivable(211)(32)
Prepaid expenses and current assets177 (6)
Other assets, net(649)(11)
Increase (decrease) in liabilities:
Accounts payable4,271 4,977
Accrued expenses(470)420
Unearned tuition(2,829)(5,228)
Deferred income taxes93 0
Other liabilities(1,060)(39)
Total adjustments(2,251)(1,356)
Net cash used in operating activities(10,782)(12,334)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures(1,212)(1,811)
Proceeds from sale of property and equipment0 15
Net cash used in investing activities(1,212)(1,796)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on borrowings(26,600)(32,800)
Proceeds from borrowings3,750 4,400
Payment of deferred finance fees(98)(81)
Net share settlement for equity-based compensation(18)(372)
Net cash used in financing activities(22,966)(28,853)
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(34,960)(42,983)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-Beginning of period45,946 54,554
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-End of period10,986 11,571
Cash paid for:
Interest1,073 896
Income taxes99 150
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Liabilities accrued for or noncash purchases of fixed assets $ 1,030 $ 352

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES6 Months Ended
Jun. 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES1. 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 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 Company recorded closing costs associated with the closure of the LCNE campus in 2018 of approximately $1.6 million in connection with the termination of the LCNE campus lease, which is the net present value of the remaining obligation, to be paid in equal monthly installments through January 2020 and approximately $0.7 million of severance payments. LCNE results, previously reported in the HOPS segment, were included in the Transitional segment as of December 31, 2018. 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 “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In August 2018, the FASB issued ASU 2018-14, “ 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, the 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 ASU No. 2016-02 and the related 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 (“ROU”) assets at the adoption date. The Company did not separate lease components from non-lease components for the specified asset classes. The election applies to all operating leases where fixed rent payments incorporate common area maintenance. For leases where the election does not apply, the common area maintenance is billed by the landlord separately. Additionally, the Company did not apply the recognition requirements under ASC 842 to short-term leases, generally defined as leases with terms of less than one year. The Company has operating leases for its corporate office and schools. The Company does not have any finance leases. 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 and six months ended June 30, 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 SHARES6 Months Ended
Jun. 30, 2019
WEIGHTED AVERAGE COMMON SHARES [Abstract]
WEIGHTED AVERAGE COMMON SHARES2. WEIGHTED AVERAGE COMMON SHARES The weighted average number of common shares used to compute basic and diluted loss per share for the three and six months ended June 30, 2019 and 2018 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Basic shares outstanding 24,555,435 24,485,500 24,544,879 24,312,500 Dilutive effect of stock options - - - - Diluted shares outstanding 24,555,435 24,485,500 24,544,879 24,312,500 For the three months ended June 30, 2019 and 2018, options to acquire 61,138 and 23,327 shares, respectively, 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 six months ended June 30, 2019 and 2018, options to acquire 118,348 and 74,689 shares, respectively, 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 and six months ended June 30, 2019 and 2018, options to acquire 139,000 shares 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 RECOGNITION6 Months Ended
Jun. 30, 2019
REVENUE RECOGNITION [Abstract]
REVENUE RECOGNITION3. 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 sheets as student accounts receivable. We do not have significant revenue recognized from performance obligations that were satisfied in prior periods, and we do not have any transaction price allocated to unsatisfied performance obligations other than in our unearned tuition. 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. Unearned tuition represents contract liabilities primarily related to our tuition revenue. We have elected not to provide disclosure about transaction prices allocated to unsatisfied performance obligations if contract durations are less than one-year, or if we have the right to consideration from a student in an amount that corresponds directly with the value provided to the student for performance obligations completed to date. We have assessed the costs incurred to obtain a contract with a student and determined them to be immaterial. Unearned tuition in the amount of $19.7 million and $22.5 million is recorded in the current liabilities section of the accompanying condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018, respectively. The change in this contract liability balance during the six month period ended June 30, 2019 is the result of payments received in advance of satisfying performance obligations, offset by revenue recognized during that period. Revenue recognized for the six month period ended June 30, 2019 that was included in the contract liability balance at the beginning of the year was $21.3 million. The following table depicts the timing of revenue recognition: Three months ended June 30, 2019 Six months ended June 30, 2019 Transportation and Skilled Trades Segment Healthcare and Other Professions Segment Transitional Segment Consolidated Transportation and Skilled Trades Segment Healthcare and Other Professions Segment Transitional Segment Consolidated Timing of Revenue Recognition Services transferred at a point in time $ 2,487 $ 1,159 $ - $ 3,646 $ 4,568 $ 2,233 $ - $ 6,801 Services transferred over time 41,541 18,382 - 59,923 83,786 36,246 - 120,032 Total revenues $ 44,028 $ 19,541 $ - $ 63,569 $ 88,354 $ 38,479 $ - $ 126,833 Three months ended June 30, 2018 Six months ended June 30, 2018 Transportation and Skilled Trades Segment Healthcare and Other Professions Segment Transitional Segment Consolidated Transportation and Skilled Trades Segment Healthcare and Other Professions Segment Transitional Consolidated Timing of Revenue Recognition Services transferred at a point in time $ 1,657 $ 954 $ 3 $ 2,614 $ 3,705 $ 1,686 $ 5 $ 5,396 Services transferred over time 40,428 16,608 1,470 58,506 81,127 32,618 3,868 117,613 Total revenues $ 42,085 $ 17,562 $ 1,473 $ 61,120 $ 84,832 $ 34,304 $ 3,873 $ 123,009

LEASES

LEASES6 Months Ended
Jun. 30, 2019
LEASES [Abstract]
LEASES4. 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. We estimate the incremental borrowing rate based on a yield curve analysis, utilizing the interest rate derived from the fair value analysis of our Credit Facility and adjusting it for factors that appropriately reflect the profile of secured borrowing over the expected term of the lease. The operating lease ROU assets include any lease payments made prior to the rent commencement date and exclude lease incentives. Lease expense for lease payments are recognized on a straight-line basis over the lease term for operating leases. The following table present the cumulative effect of the changes made to the condensed consolidated balance sheets as of January 1, 2019, as a result of the adoption of ASC 842: 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 and six months ended June 30, 2019 was $3.6 and $7.3 million, respectively. The ROU asset amortization is included in other assets in the condensed consolidated cash flows for the six months ended June 30, 2019. Supplemental cash flow information and non-cash activity related to our operating leases are as follows: For the Three Months Ended June 30, 2019 For the Six Months Ended June 30, 2019 Operating cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $ 3,821 $ 7,603 Non-cash activity: Lease liabilities arising from obtaining right-of-use assets* $ 657 $ 48,634 * Includes effect of adoption of ASU 2016-02 and related amendments and a new lease entered into on January 1, 2019 of $5.6 million. Weighted-average remaining lease term and discount rate for our operating leases is as follows: Three Months Ended June 30, 2019 Weighted-average remaining lease term 5.63 years Weighted-average discount rate 14.43 % Maturities of lease liabilities by fiscal year for our operating leases as of June 30, 2019 are as follows: Year ending December 31, 2019 (excluding the six months ended June 30, 2019) $ 7,828 2020 14,716 2021 10,701 2022 8,220 2023 5,850 2024 4,500 Thereafter 13,151 Total lease payments 64,966 Less: imputed interest (20,661 ) Present value of lease liabilities $ 44,305 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 ASSETS6 Months Ended
Jun. 30, 2019
GOODWILL AND LONG-LIVED ASSETS [Abstract]
GOODWILL AND LONG-LIVED ASSETS5. 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 six months ended June 30, 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 June 30, 2019 and 2018, there were no indicators of potential impairment and, accordingly, the Company did not test goodwill for impairment. The carrying amount of goodwill at June 30, 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 June 30, 2019 and 2018, the goodwill balance is related to the Transportation and Skilled Trades segment.

LONG-TERM DEBT

LONG-TERM DEBT6 Months Ended
Jun. 30, 2019
LONG-TERM DEBT [Abstract]
LONG-TERM DEBT6. LONG-TERM DEBT Long-term debt consists of the following: June 30, 2019 December 31, 2018 Credit agreement and term loan $ 26,451 $ 49,301 Deferred financing fees (437 ) (532 ) 26,014 48,769 Less current maturities (4,579 ) (15,000 ) $ 21,435 $ 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 Company under the Credit Agreement consisted of (a) a $25 million revolving loan facility designated as “Facility 1”, (b) a $25 million revolving loan facility (including a sublimit amount for letters of credit of $10 million) designated as “Facility 2” and (c) a $15 million revolving credit loan designated as “Facility 3”. 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 in monthly installments as follows: (a) on April 1, 2019 and on the same day of each month thereafter through and including June 30, 2019, accrued interest only; (b) on July 1, 2019 and on the same day of each month thereafter through and including December 31, 2019, the principal amount of $0.2 million plus accrued interest; (c) on January 1, 2020 and on the same day of each month thereafter through and including June 30, 2020, accrued interest only; (d) on July 1, 2020 and on the same day of each month thereafter through and including December 31, 2020, the principal amount of $0.6 million plus accrued interest; (e) on January 1, 2021 and on the same day of each month thereafter through and including June 30, 2021, accrued interest only; (f) on July 1, 2021 and on the same day of each month thereafter through and including December 31, 2021, the principal amount of $0.4 million plus accrued interest; (g) on January 1, 2022 and on the same day of each month thereafter through and including June 30, 2022, accrued interest only; (h) on July 1, 2022 and on the same day of each month thereafter through and including December 31, 2022, the principal amount of $0.4 million plus accrued interest; (i) on January 1, 2023 and on the same day of each month thereafter through and including June 30, 2023, accrued interest only; (j) on July 1, 2023 and on the same day of each month thereafter through and including December 31, 2023, the principal amount of $0.4 million plus accrued interest; (k) on January 1, 2024 and on the same day of each month thereafter through and including the Term Loan Maturity Date, accrued interest only; and (l) on the Term Loan Maturity Date, the remaining outstanding principal amount of the Term Loan, together with accrued interest, will be due and payable. In the event of a sale of any campus, school or business permitted under the Credit Agreement, 25% of the net proceeds of any such sale must be used to pay down the outstanding principal amount of the Term Loan in inverse order of maturity. The maturity date of Facility 2 is April 30, 2020. Facility 3 matured on May 31, 2019, unused, and is no longer available for borrowing. Under the terms of the Credit Agreement, all draws under Facility 2 for letters of credit or revolving loans 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 and an additional $1.25 million on both April 17, 2019 and July 26, 2019, respectively, without any requirement for cash collateral. The $5 million in revolving loans advanced under Facility 2 must be repaid on November 1, 2019 and, prior to their repayment, the Company is 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%. 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 Company may be required to enter into a hedging contract in form and content satisfactory to the Bank. The Company is required to give the Bank the first opportunity to provide any and all traditional banking services required by the Company, including, but not limited to, treasury management, loans and other financing services, on terms mutually acceptable to the Company and the Bank, in accordance with the terms set forth in the Fourth Amendment. In the event that loans provided under the Credit Agreement are repaid through replacement financing, the Company must pay to the Bank an exit fee in an amount equal to 1.25% of the total amount repaid and the face amount of all letters of credit replaced in connection with the replacement financing; provided, however, that no exit fee will be required in the event the Bank or the Bank’s affiliate arranges or provides the replacement financing or the payoff of the applicable loans occurs after March 5, 2021. In connection with the effectiveness of the Fourth Amendment, the Company 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. 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. The Credit Agreement also contains events of default customary for facilities of this type. As of June 30, 2019, the Company is in compliance with all covenants, 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 June 30, 2019, the Company had $26.5 million outstanding under the Credit Facility; offset by $0.4 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 June 30, 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 June 30, 2019 are as follows: Year ending December 31, 2019 (excluding the six months ended June 30, 2019) $ 4,885 2020 3,405 2021 2,270 2022 2,270 2023 2,270 Thereafter 11,351 $ 26,451

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY6 Months Ended
Jun. 30, 2019
STOCKHOLDERS' EQUITY [Abstract]
STOCKHOLDERS' EQUITY7. 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 amount of the award and 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 six months ended June 30, 2019 and 2018, the Company completed a net share settlement for 5,518 and 207,642 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 $0.4 million for each of the six months ended June 30, 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 598,982 3.15 Canceled (3,546 ) 3.17 Vested (35,908 ) 2.23 Nonvested restricted stock outstanding at June 30, 2019 595,436 3.15 The restricted stock expense for each of the three months ended June 30, 2019 and 2018 was $0.2 million and $0.1 million, respectively. The restricted stock expense for each of the six months ended June 30, 2019 and 2018 was $0.2 million and $0.5 million, respectively. The unrecognized restricted stock expense as of June 30, 2019 and December 31, 2018 was $1.7 million and $0.1 million, respectively. As of June 30, 2019, outstanding restricted shares under the LTIP had aggregate intrinsic value of $1.4 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 June 30, 2019 139,000 12.14 2.04 years - Vested as of June 30, 2019 139,000 12.14 2.04 years - Exercisable as of June 30, 2019 139,000 12.14 2.04 years - As of June 30, 2019, there was no unrecognized pre-tax compensation expense. The following table presents a summary of stock options outstanding: At June 30, 2019 Stock Options Outstanding Stock Options Exercisable Range of Exercise Prices Shares Contractual Weighted Average Life Weighted Average Price Shares Weighted Average Exercise Price $4.00-$13.99 91,000 2.67 $ 7.79 91,000 $ 7.79 $14.00-$19.99 17,000 0.34 19.98 17,000 19.98 $20.00-$25.00 31,000 1.10 20.62 31,000 20.62 139,000 2.04 12.14 139,000 12.14

INCOME TAXES

INCOME TAXES6 Months Ended
Jun. 30, 2019
INCOME TAXES [Abstract]
INCOME TAXES8. INCOME TAXES The provision for income taxes for the three months ended June 30, 2019 and 2018 was $0.1 million, or 4.9% of pretax loss, and less than $0.1 million, or 1.2% of pretax loss, respectively. The provision for income taxes for the six months ended June 30, 2019 and 2018 was $0.2 million, or 2.3% of pretax loss, and $0.1 million, or 0.9% 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 June 30, 2019 except deferred tax liability related to indefinite lived intangibles for which , t

CONTINGENCIES

CONTINGENCIES6 Months Ended
Jun. 30, 2019
CONTINGENCIES [Abstract]
CONTINGENCIES9. 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 submitted its response and is 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 submitted its response and is cooperating with the CDOL.

SEGMENTS

SEGMENTS6 Months Ended
Jun. 30, 2019
SEGMENTS [Abstract]
SEGMENTS10. SEGMENTS The for-profit education industry has 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. LCNE results, which was previously reported in the HOPS segment, is now included in the Transitional segment for all periods presented. 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 June 30, Revenue Operating Income (Loss) 2019 % of Total 2018 % of Total 2019 2018 Transportation and Skilled Trades $ 44,028 69.3 % $ 42,085 68.9 % $ 2,484 $ 1,740 Healthcare and Other Professions 19,541 30.7 % 17,562 28.7 % 1,839 1,542 Transitional - 0.0 % 1,473 2.4 % - (899 ) Corporate - 0.0 % - 0.0 % (6,416 ) (5,906 ) Total $ 63,569 100.0 % $ 61,120 100.0 % $ (2,093 ) $ (3,523 ) For the Six Months Ended June 30, Revenue Operating Income (Loss) 2019 % of Total 2018 % of Total 2019 2018 Transportation and Skilled Trades $ 88,354 69.7 % $ 84,832 69.0 % $ 4,300 $ 2,416 Healthcare and Other Professions 38,479 30.3 % 34,303 27.9 % 2,811 1,918 Transitional - 0.0 % 3,874 3.1 % - (1,031 ) Corporate - 0.0 % - 0.0 % (14,069 ) (13,088 ) Total $ 126,833 100.0 % $ 123,009 100.0 % $ (6,958 ) $ (9,785 ) Total Assets June 30, 2019 December 31, 2018 Transportation and Skilled Trades $ 108,428 $ 92,070 Healthcare and Other Professions 27,984 14,078 Transitional - 527 Corporate 18,486 39,363 Total $ 154,898 $ 146,038

FAIR VALUE

FAIR VALUE6 Months Ended
Jun. 30, 2019
FAIR VALUE [Abstract]
FAIR VALUE11. 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: June 30, 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 $ 6,489 $ 6,489 $ - $ - $ 6,489 Restricted cash 4,497 4,497 - - 4,497 Prepaid expenses and other current assets 4,634 - 4,634 - 4,634 Financial Liabilities: Accrued expenses $ 9,123 $ - $ 9,123 $ - $ 9,123 Other short term liabilities 1,090 - 1,090 - 1,090 Credit facility and term loan 26,014 - 17,638 - 17,638 We estimate the fair value of the Credit Facility based on a present value analysis utilizing aggregate market yields obtained from independent pricing sources for similar financial instruments. 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 PARTY6 Months Ended
Jun. 30, 2019
RELATED PARTY [Abstract]
RELATED PARTY12. 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 $0.4 million and $1.1 million for the three and six months ended June 30, 2019, respectively. 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)6 Months Ended
Jun. 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Business ActivitiesBusiness 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 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 Company recorded closing costs associated with the closure of the LCNE campus in 2018 of approximately $1.6 million in connection with the termination of the LCNE campus lease, which is the net present value of the remaining obligation, to be paid in equal monthly installments through January 2020 and approximately $0.7 million of severance payments. LCNE results, previously reported in the HOPS segment, were included in the Transitional segment as of December 31, 2018.
LiquidityLiquidity —
Basis of PresentationBasis 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 StatementsUse of Estimates in the Preparation of Financial Statements
New Accounting PronouncementsNew Accounting Pronouncements “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In August 2018, the FASB issued ASU 2018-14, “ 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, the 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 ASU No. 2016-02 and the related 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 (“ROU”) assets at the adoption date. The Company did not separate lease components from non-lease components for the specified asset classes. The election applies to all operating leases where fixed rent payments incorporate common area maintenance. For leases where the election does not apply, the common area maintenance is billed by the landlord separately. Additionally, the Company did not apply the recognition requirements under ASC 842 to short-term leases, generally defined as leases with terms of less than one year. The Company has operating leases for its corporate office and schools. The Company does not have any finance leases.
Stock-Based CompensationStock-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 TaxesIncome 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 and six months ended June 30, 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)6 Months Ended
Jun. 30, 2019
WEIGHTED AVERAGE COMMON SHARES [Abstract]
Weighted Average Numbers of Common Shares Used to Compute Basic and Diluted Loss Per ShareThe weighted average number of common shares used to compute basic and diluted loss per share for the three and six months ended June 30, 2019 and 2018 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Basic shares outstanding 24,555,435 24,485,500 24,544,879 24,312,500 Dilutive effect of stock options - - - - Diluted shares outstanding 24,555,435 24,485,500 24,544,879 24,312,500

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)6 Months Ended
Jun. 30, 2019
REVENUE RECOGNITION [Abstract]
Depicts Timing of Revenue RecognitionThe following table depicts the timing of revenue recognition: Three months ended June 30, 2019 Six months ended June 30, 2019 Transportation and Skilled Trades Segment Healthcare and Other Professions Segment Transitional Segment Consolidated Transportation and Skilled Trades Segment Healthcare and Other Professions Segment Transitional Segment Consolidated Timing of Revenue Recognition Services transferred at a point in time $ 2,487 $ 1,159 $ - $ 3,646 $ 4,568 $ 2,233 $ - $ 6,801 Services transferred over time 41,541 18,382 - 59,923 83,786 36,246 - 120,032 Total revenues $ 44,028 $ 19,541 $ - $ 63,569 $ 88,354 $ 38,479 $ - $ 126,833 Three months ended June 30, 2018 Six months ended June 30, 2018 Transportation and Skilled Trades Segment Healthcare and Other Professions Segment Transitional Segment Consolidated Transportation and Skilled Trades Segment Healthcare and Other Professions Segment Transitional Consolidated Timing of Revenue Recognition Services transferred at a point in time $ 1,657 $ 954 $ 3 $ 2,614 $ 3,705 $ 1,686 $ 5 $ 5,396 Services transferred over time 40,428 16,608 1,470 58,506 81,127 32,618 3,868 117,613 Total revenues $ 42,085 $ 17,562 $ 1,473 $ 61,120 $ 84,832 $ 34,304 $ 3,873 $ 123,009

LEASES (Tables)

LEASES (Tables)6 Months Ended
Jun. 30, 2019
LEASES [Abstract]
Cumulative Effect of Changes Made to Condensed Consolidated Balance SheetThe following table present the cumulative effect of the changes made to the condensed consolidated balance sheets as of January 1, 2019, as a result of the adoption of ASC 842: 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 LeasesSupplemental cash flow information and non-cash activity related to our operating leases are as follows: For the Three Months Ended June 30, 2019 For the Six Months Ended June 30, 2019 Operating cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $ 3,821 $ 7,603 Non-cash activity: Lease liabilities arising from obtaining right-of-use assets* $ 657 $ 48,634 * Includes effect of adoption of ASU 2016-02 and related amendments and a new lease entered into on January 1, 2019 of $5.6 million.
Weighted Average Remaining Lease Term and Discount RateWeighted-average remaining lease term and discount rate for our operating leases is as follows: Three Months Ended June 30, 2019 Weighted-average remaining lease term 5.63 years Weighted-average discount rate 14.43 %
Maturities of Lease LiabilitiesMaturities of lease liabilities by fiscal year for our operating leases as of June 30, 2019 are as follows: Year ending December 31, 2019 (excluding the six months ended June 30, 2019) $ 7,828 2020 14,716 2021 10,701 2022 8,220 2023 5,850 2024 4,500 Thereafter 13,151 Total lease payments 64,966 Less: imputed interest (20,661 ) Present value of lease liabilities $ 44,305
Minimum Lease Payments under Non-cancellable Operating LeaseAs 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)6 Months Ended
Jun. 30, 2019
GOODWILL AND LONG-LIVED ASSETS [Abstract]
Changes in Carrying Amount of GoodwillThe carrying amount of goodwill at June 30, 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)6 Months Ended
Jun. 30, 2019
LONG-TERM DEBT [Abstract]
Long-term DebtLong-term debt consists of the following: June 30, 2019 December 31, 2018 Credit agreement and term loan $ 26,451 $ 49,301 Deferred financing fees (437 ) (532 ) 26,014 48,769 Less current maturities (4,579 ) (15,000 ) $ 21,435 $ 33,769
Maturities of Long-term DebtScheduled maturities of long-term debt including the short-term portion at June 30, 2019 are as follows: Year ending December 31, 2019 (excluding the six months ended June 30, 2019) $ 4,885 2020 3,405 2021 2,270 2022 2,270 2023 2,270 Thereafter 11,351 $ 26,451

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)6 Months Ended
Jun. 30, 2019
STOCKHOLDERS' EQUITY [Abstract]
Transactions Pertaining to Restricted StockThe 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 598,982 3.15 Canceled (3,546 ) 3.17 Vested (35,908 ) 2.23 Nonvested restricted stock outstanding at June 30, 2019 595,436 3.15
Transactions Pertaining to Option PlansThe 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 June 30, 2019 139,000 12.14 2.04 years - Vested as of June 30, 2019 139,000 12.14 2.04 years - Exercisable as of June 30, 2019 139,000 12.14 2.04 years -
Options OutstandingThe following table presents a summary of stock options outstanding: At June 30, 2019 Stock Options Outstanding Stock Options Exercisable Range of Exercise Prices Shares Contractual Weighted Average Life Weighted Average Price Shares Weighted Average Exercise Price $4.00-$13.99 91,000 2.67 $ 7.79 91,000 $ 7.79 $14.00-$19.99 17,000 0.34 19.98 17,000 19.98 $20.00-$25.00 31,000 1.10 20.62 31,000 20.62 139,000 2.04 12.14 139,000 12.14

SEGMENTS (Tables)

SEGMENTS (Tables)6 Months Ended
Jun. 30, 2019
SEGMENTS [Abstract]
Financial Information by Reporting SegmentSummary financial information by reporting segment is as follows: For the Three Months Ended June 30, Revenue Operating Income (Loss) 2019 % of Total 2018 % of Total 2019 2018 Transportation and Skilled Trades $ 44,028 69.3 % $ 42,085 68.9 % $ 2,484 $ 1,740 Healthcare and Other Professions 19,541 30.7 % 17,562 28.7 % 1,839 1,542 Transitional - 0.0 % 1,473 2.4 % - (899 ) Corporate - 0.0 % - 0.0 % (6,416 ) (5,906 ) Total $ 63,569 100.0 % $ 61,120 100.0 % $ (2,093 ) $ (3,523 ) For the Six Months Ended June 30, Revenue Operating Income (Loss) 2019 % of Total 2018 % of Total 2019 2018 Transportation and Skilled Trades $ 88,354 69.7 % $ 84,832 69.0 % $ 4,300 $ 2,416 Healthcare and Other Professions 38,479 30.3 % 34,303 27.9 % 2,811 1,918 Transitional - 0.0 % 3,874 3.1 % - (1,031 ) Corporate - 0.0 % - 0.0 % (14,069 ) (13,088 ) Total $ 126,833 100.0 % $ 123,009 100.0 % $ (6,958 ) $ (9,785 ) Total Assets June 30, 2019 December 31, 2018 Transportation and Skilled Trades $ 108,428 $ 92,070 Healthcare and Other Professions 27,984 14,078 Transitional - 527 Corporate 18,486 39,363 Total $ 154,898 $ 146,038

FAIR VALUE (Tables)

FAIR VALUE (Tables)6 Months Ended
Jun. 30, 2019
FAIR VALUE [Abstract]
Fair Value, by Balance Sheet GroupingThe 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: June 30, 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 $ 6,489 $ 6,489 $ - $ - $ 6,489 Restricted cash 4,497 4,497 - - 4,497 Prepaid expenses and other current assets 4,634 - 4,634 - 4,634 Financial Liabilities: Accrued expenses $ 9,123 $ - $ 9,123 $ - $ 9,123 Other short term liabilities 1,090 - 1,090 - 1,090 Credit facility and term loan 26,014 - 17,638 - 17,638

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in ThousandsJul. 09, 2018USD ($)Jun. 30, 2019USD ($)StateJun. 30, 2018USD ($)Jun. 30, 2019USD ($)SchoolStateCampusSegmentJun. 30, 2018USD ($)Dec. 31, 2018USD ($)Dec. 31, 2017USD ($)
Business Activities [Abstract]
Number of schools | School22
Number of states in which schools operate across the United States | State14 14
Number of campuses treated as destination schools | Campus5
Number of reportable segments | Segment3
Liquidity [Abstract]
Cash and cash equivalents $ 10,986 $ 11,571 $ 10,986 $ 11,571 $ 45,946 $ 54,554
Restricted cash4,500 4,500
Income Taxes [Abstract]
Interest and penalties expense $ 0 $ 0 $ 0 $ 0
Credit Facility 1 [Member]
Business Activities [Abstract]
Line of credit facility, maximum borrowing capacity22,700
Mangonia Park Property [Member]
Business Activities [Abstract]
Cash purchase price $ 2,550
Real estate brokerage fee percentage5.00%
Lincoln College of New England [Member]
Business Activities [Abstract]
Lease termination costs1,600
Severance payment $ 700

WEIGHTED AVERAGE COMMON SHARE_2

WEIGHTED AVERAGE COMMON SHARES (Details) - shares3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
Shares used to compute basic and diluted loss income per share [Abstract]
Basic shares outstanding (in shares)24,555,435 24,485,500 24,544,879 24,312,500
Dilutive effect of stock options (in shares)0 0 0 0
Diluted shares outstanding (in shares)24,555,435 24,485,500 24,544,879 24,312,500
Stock Option 2 [Member]
Antidilutive Shares Details [Abstract]
Antidilutive shares excluded from computation of loss per share (in shares)61,138 23,327 118,348 74,689
Stock Option 1 [Member]
Antidilutive Shares Details [Abstract]
Antidilutive shares excluded from computation of loss per share (in shares)139,000 139,000 139,000 139,000

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018Dec. 31, 2018
Disaggregation of Revenue [Abstract]
Total revenues $ 63,569 $ 61,120 $ 126,833 $ 123,009
Unearned tuition19,716 19,716 $ 22,545
Revenue recognized included in contract liability21,300
ASU 2016-10 [Member]
Disaggregation of Revenue [Abstract]
Unearned tuition19,700 19,700 $ 22,500
Services Transferred at a Point in Time [Member]
Disaggregation of Revenue [Abstract]
Total revenues3,646 2,614 6,801 5,396
Services Transferred over Time [Member]
Disaggregation of Revenue [Abstract]
Total revenues59,923 58,506 120,032 117,613
Transportation and Skilled Trades Segment [Member]
Disaggregation of Revenue [Abstract]
Total revenues44,028 42,085 88,354 84,832
Transportation and Skilled Trades Segment [Member] | Services Transferred at a Point in Time [Member]
Disaggregation of Revenue [Abstract]
Total revenues2,487 1,657 4,568 3,705
Transportation and Skilled Trades Segment [Member] | Services Transferred over Time [Member]
Disaggregation of Revenue [Abstract]
Total revenues41,541 40,428 83,786 81,127
Healthcare and Other Professions Segment [Member]
Disaggregation of Revenue [Abstract]
Total revenues19,541 17,562 38,479 34,304
Healthcare and Other Professions Segment [Member] | Services Transferred at a Point in Time [Member]
Disaggregation of Revenue [Abstract]
Total revenues1,159 954 2,233 1,686
Healthcare and Other Professions Segment [Member] | Services Transferred over Time [Member]
Disaggregation of Revenue [Abstract]
Total revenues18,382 16,608 36,246 32,618
Transitional Segment [Member]
Disaggregation of Revenue [Abstract]
Total revenues0 1,473 0 3,873
Transitional Segment [Member] | Services Transferred at a Point in Time [Member]
Disaggregation of Revenue [Abstract]
Total revenues0 3 0 5
Transitional Segment [Member] | Services Transferred over Time [Member]
Disaggregation of Revenue [Abstract]
Total revenues $ 0 $ 1,470 $ 0 $ 3,868

LEASES (Details)

LEASES (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2019Dec. 31, 2018
Operating Leases [Abstract]
Operating lease cost $ 3,600 $ 7,300
Cumulative Effect of Changes Made to Condensed Consolidated Balance Sheet [Abstract]
Operating lease right-of-use assets37,951 37,951 $ 0
Current portion of operating lease liabilities9,840 9,840 0
Other short-term liabilities968
Long-term portion of operating lease liabilities34,465 34,465 0
Accrued rent0 0 3,410
Operating cash flow information [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities3,821 7,603
Non-cash activity [Abstract]
Lease liabilities arising from obtaining right-of-use assets[1] $ 657 $ 48,634
Weighted Average Remaining Lease Term and Discount Rate [Abstract]
Weighted-average remaining lease term5 years 7 months 17 days5 years 7 months 17 days
Weighted-average discount rate14.43%14.43%
Maturities of Lease Liabilities [Abstract]
2019 (excluding the six months ended June 30, 2019) $ 7,828 $ 7,828
202014,716 14,716
202110,701 10,701
20228,220 8,220
20235,850 5,850
20244,500 4,500
Thereafter13,151 13,151
Total lease payments64,966 64,966
Less: imputed interest(20,661)(20,661)
Present value of lease liabilities $ 44,305 $ 44,305 5,600
Minimum Lease Payments under Non-cancellable Operating Leases [Abstract]
201916,939
202014,183
202110,708
20228,180
20235,811
Thereafter17,610
Total73,431
ASU 2016-02 [Member]
Cumulative Effect of Changes Made to Condensed Consolidated Balance Sheet [Abstract]
Operating lease right-of-use assets37,993
Current portion of operating lease liabilities8,999
Other short-term liabilities0
Long-term portion of operating lease liabilities33,372
Accrued rent0
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 assets37,993
Current portion of operating lease liabilities8,999
Other short-term liabilities(968)
Long-term portion of operating lease liabilities33,372
Accrued rent $ (3,410)
Minimum [Member]
Operating Leases [Abstract]
Remaining lease term1 year
Maximum [Member]
Operating Leases [Abstract]
Remaining lease term11 years
Extension period for leases5 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 Thousands6 Months Ended
Jun. 30, 2019Jun. 30, 2018Dec. 31, 2018Dec. 31, 2017
GOODWILL AND LONG-LIVED ASSETS [Abstract]
Impairment of long-lived assets $ 0 $ 0
Changes in carrying amount of goodwill [Abstract]
Gross Goodwill Balance117,176 117,176 $ 117,176 $ 117,176
Accumulated Impairment Losses(102,640)(102,640)(102,640)(102,640)
Net Goodwill Balance14,536 14,536 $ 14,536 $ 14,536
Adjustments $ 0 $ 0

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) $ in ThousandsJul. 26, 2019USD ($)Apr. 17, 2019USD ($)Mar. 06, 2019USD ($)Jun. 30, 2019USD ($)PropertyDec. 31, 2018USD ($)Jul. 11, 2018USD ($)
Long-term debt [Abstract]
Deferred financing fees $ (437) $ (532)
Long term debt26,014 48,769
Less current maturities(4,579)(15,000)
Long-term debt, excluding current maturities $ 21,435 33,769
Number of properties owned | Property4
Letters of credit outstanding $ 4,500 1,800
Scheduled maturities of long-term debt [Abstract]
2019 (excluding the six months ended June 30, 2019)4,885
20203,405
20212,270
20222,270
20232,270
Thereafter11,351
Long term debt $ 26,451
Colorado, Tennessee and Texas Properties [Member]
Long-term debt [Abstract]
Number of properties owned | Property3
Connecticut [Member]
Long-term debt [Abstract]
Number of properties owned | Property1
Prime Rate [Member]
Long-term debt [Abstract]
Interest rate on credit facility6.50%
Letter of Credit [Member]
Long-term debt [Abstract]
Percentage of letter of credit fee, quarterly installment1.75%
Letters of credit outstanding $ 6,200
Maximum availability under the facility previously provided $ 9,500
Percentage of unused facility fee payable quarterly1.25%
Credit Agreement and Term Loan [Member]
Long-term debt [Abstract]
Long-term line of credit $ 26,451 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 collateral100.00%
Minimum quarterly average aggregate balances to be maintained $ 5,000
Bank fees if minimum quarterly average aggregate balances is not maintained12,500
Modification fees paid to bank50,000
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
Expiration date of credit facilityMar. 31,
2024
Percentage of net proceeds of sale used to pay down principal amount25.00%
Scheduled maturities of long-term debt [Abstract]
2019 (excluding the six months ended June 30, 2019) $ 200
2020600
2021400
2022400
2023400
Revolving Credit Facility 2 [Member]
Long-term debt [Abstract]
Line of credit facility, maximum borrowing capacity25,000
Line of credit facility, remaining borrowing capacity $ 2,500
Line of credit facility, payable $ 5,000
Line of credit facility, additional borrowing capacity $ 1,250
Expiration date of credit facilityApr. 30,
2020
Revolving Credit Facility 2 [Member] | Prime Rate [Member]
Long-term debt [Abstract]
Interest rate on credit facility3.50%
Revolving Credit Facility 2 [Member] | Letter of Credit [Member]
Long-term debt [Abstract]
Line of credit facility, maximum borrowing capacity10,000
Revolving Credit Facility 3 [Member]
Long-term debt [Abstract]
Line of credit facility, maximum borrowing capacity $ 15,000
Expiration date of credit facilityMay 31,
2019
Subsequent Event [Member] | Revolving Credit Facility 2 [Member]
Long-term debt [Abstract]
Line of credit facility, additional borrowing capacity $ 1,250
Tranche A [Member] | Term Loan [Member] | Prime Rate [Member]
Long-term debt [Abstract]
Interest rate on credit facility2.85%
Tranche A [Member] | Revolving Credit Facility 2 [Member] | Prime Rate [Member]
Long-term debt [Abstract]
Interest rate on credit facility2.85%
Percentage of unused facility fee payable quarterly0.50%
Tranche B [Member] | Term Loan [Member] | Prime Rate [Member]
Long-term debt [Abstract]
Interest rate on credit facility6.00%
Tranche B [Member] | Revolving Credit Facility 2 [Member] | Prime Rate [Member]
Long-term debt [Abstract]
Interest rate on credit facility6.00%

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) $ / shares in Units, $ in Thousands3 Months Ended6 Months Ended12 Months Ended
Jun. 30, 2019USD ($)$ / sharessharesJun. 30, 2018USD ($)Jun. 30, 2019USD ($)Plan$ / sharessharesJun. 30, 2018USD ($)sharesDec. 31, 2018USD ($)$ / sharesshares
Stockholders' Equity Note Details [Abstract]
Number of stock incentive plans | Plan2
Shares [Abstract]
Outstanding, beginning balance (in shares) | shares139,000
Granted (in shares) | shares0
Canceled (in shares) | shares0
Vested (in shares) | shares0
Outstanding, ending balance (in shares) | shares139,000 139,000 139,000
Vested (in shares) | shares139,000 139,000
Exercisable, ending balance (in shares) | shares139,000 139,000
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 $ 12.14
Vested or expected to vest (in dollars per share)12.1412.14
Exercisable, ending balance (in dollars per share) $ 12.14 $ 12.14
Weighted Average Remaining Contractual Term [Abstract]
Outstanding2 years 14 days2 years 6 months 11 days
Vested or expected to vest2 years 14 days
Exercisable2 years 14 days
Aggregate Intrinsic Value [Abstract]
Outstanding, beginning balance | $ $ 0
Granted | $0
Canceled | $0
Vested | $0
Outstanding, ending balance | $ $ 0 0 $ 0
Vested or expected to vest | $0 0
Exercisable, ending balance | $ $ 0 $ 0
Stock Options Outstanding [Abstract]
Shares (in shares) | shares139,000 139,000
Contractual Weighted Average Life2 years 14 days
Weighted Average Price (in dollars per share) $ 12.14 $ 12.14
Stock Options Exercisable [Abstract]
Shares (in shares) | shares139,000 139,000
Weighted Average Exercise Price (in dollars per share) $ 12.14 $ 12.14
Stock Options [Member]
Aggregate Intrinsic Value [Abstract]
Unrecognized pre-tax compensation expense | $ $ 0 $ 0
Restricted Stock [Member]
Shares [Abstract]
Nonvested restricted stock outstanding, beginning balance (in shares) | shares35,908
Granted (in shares) | shares598,982
Canceled (in shares) | shares(3,546)
Vested (in shares) | shares(35,908)
Nonvested restricted stock outstanding, ending balance (in shares) | shares595,436 595,436 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)3.15
Canceled (in dollars per share)3.17
Vested (in dollars per share)2.23
Nonvested restricted stock outstanding, ending balance (in dollars per share) $ 3.15 $ 3.15 $ 2.23
Recognized restricted stock expense | $ $ 200 $ 100 $ 200 $ 500
Unrecognized restricted stock expense | $1,700 $ 1,700 $ 100
LTIP [Member]
Stockholders' Equity Note Details [Abstract]
Net share settlement for restricted stock (in shares) | shares5,518 207,642
LTIP [Member] | Maximum [Member]
Stockholders' Equity Note Details [Abstract]
Decrease in equity due to payment of tax for employee | $ $ 100 $ 400
LTIP [Member] | February 28, 2019 [Member]
Stockholders' Equity Note Details [Abstract]
Vesting period of performance-based shares3 years
LTIP [Member] | Restricted Stock [Member]
Weighted Average Grant Date Fair Value [Abstract]
Outstanding restricted shares, intrinsic value | $ $ 1,400 $ 1,400
$ 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) | shares91,000 91,000
Contractual Weighted Average Life2 years 8 months 1 day
Weighted Average Price (in dollars per share) $ 7.79 $ 7.79
Stock Options Exercisable [Abstract]
Shares (in shares) | shares91,000 91,000
Weighted Average Exercise Price (in dollars per share) $ 7.79 $ 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) | shares17,000 17,000
Contractual Weighted Average Life4 months 2 days
Weighted Average Price (in dollars per share) $ 19.98 $ 19.98
Stock Options Exercisable [Abstract]
Shares (in shares) | shares17,000 17,000
Weighted Average Exercise Price (in dollars per share) $ 19.98 $ 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) | shares31,000 31,000
Contractual Weighted Average Life1 year 1 month 6 days
Weighted Average Price (in dollars per share) $ 20.62 $ 20.62
Stock Options Exercisable [Abstract]
Shares (in shares) | shares31,000 31,000
Weighted Average Exercise Price (in dollars per share) $ 20.62 $ 20.62

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
INCOME TAXES [Abstract]
Provision for income taxes $ 144 $ 50 $ 194 $ 100
Effective income tax rate4.90%1.20%2.30%0.90%

SEGMENTS (Details)

SEGMENTS (Details) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019USD ($)Jun. 30, 2018USD ($)Jun. 30, 2019USD ($)SegmentLocationJun. 30, 2018USD ($)Dec. 31, 2018USD ($)
SEGMENTS [Abstract]
Number of locations closed | Location10
Number of reportable segments | Segment3
Summary financial information by reporting segment [Abstract]
Revenues $ 63,569 $ 61,120 $ 126,833 $ 123,009
Percentage of Total Revenue100.00%100.00%100.00%100.00%
Operating Income (Loss) $ (2,093) $ (3,523) $ (6,958) $ (9,785)
Total Assets154,898 154,898 $ 146,038
Transportation and Skilled Trades [Member]
Summary financial information by reporting segment [Abstract]
Revenues44,028 42,085 88,354 84,832
Healthcare and Other Professions [Member]
Summary financial information by reporting segment [Abstract]
Revenues19,541 17,562 38,479 34,304
Transitional [Member]
Summary financial information by reporting segment [Abstract]
Revenues0 1,473 0 3,873
Reportable Segments [Member] | Transportation and Skilled Trades [Member]
Summary financial information by reporting segment [Abstract]
Revenues $ 44,028 $ 42,085 $ 88,354 $ 84,832
Percentage of Total Revenue69.30%68.90%69.70%69.00%
Operating Income (Loss) $ 2,484 $ 1,740 $ 4,300 $ 2,416
Total Assets108,428 108,428 92,070
Reportable Segments [Member] | Healthcare and Other Professions [Member]
Summary financial information by reporting segment [Abstract]
Revenues $ 19,541 $ 17,562 $ 38,479 $ 34,303
Percentage of Total Revenue30.70%28.70%30.30%27.90%
Operating Income (Loss) $ 1,839 $ 1,542 $ 2,811 $ 1,918
Total Assets27,984 27,984 14,078
Reportable Segments [Member] | Transitional [Member]
Summary financial information by reporting segment [Abstract]
Revenues $ 0 $ 1,473 $ 0 $ 3,874
Percentage of Total Revenue0.00%2.40%0.00%3.10%
Operating Income (Loss) $ 0 $ (899) $ 0 $ (1,031)
Total Assets0 0 527
Corporate [Member]
Summary financial information by reporting segment [Abstract]
Revenues $ 0 $ 0 $ 0 $ 0
Percentage of Total Revenue0.00%0.00%0.00%0.00%
Operating Income (Loss) $ (6,416) $ (5,906) $ (14,069) $ (13,088)
Total Assets $ 18,486 $ 18,486 $ 39,363

FAIR VALUE (Details)

FAIR VALUE (Details) $ in ThousandsJun. 30, 2019USD ($)
Carrying Amount [Member]
Financial Assets [Abstract]
Cash and cash equivalents $ 6,489
Restricted cash4,497
Prepaid expenses and other current assets4,634
Financial Liabilities [Abstract]
Accrued expenses9,123
Other short-term liabilities1,090
Credit facility and term loan26,014
Fair Value [Member]
Financial Assets [Abstract]
Cash and cash equivalents6,489
Restricted cash4,497
Prepaid expenses and other current assets4,634
Financial Liabilities [Abstract]
Accrued expenses9,123
Other short-term liabilities1,090
Credit facility and term loan17,638
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member]
Financial Assets [Abstract]
Cash and cash equivalents6,489
Restricted cash4,497
Prepaid expenses and other current assets0
Financial Liabilities [Abstract]
Accrued expenses0
Other short-term liabilities0
Credit facility and term loan0
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member]
Financial Assets [Abstract]
Cash and cash equivalents0
Restricted cash0
Prepaid expenses and other current assets4,634
Financial Liabilities [Abstract]
Accrued expenses9,123
Other short-term liabilities1,090
Credit facility and term loan17,638
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member]
Financial Assets [Abstract]
Cash and cash equivalents0
Restricted cash0
Prepaid expenses and other current assets0
Financial Liabilities [Abstract]
Accrued expenses0
Other short-term liabilities0
Credit facility and term loan $ 0

RELATED PARTY (Details)

RELATED PARTY (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2019
RELATED PARTY [Abstract]
Purchases from related party $ 0.4 $ 1.1