Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 08, 2019 | Jun. 29, 2018 | |
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Public Float | $ 40,297,960 | ||
Entity Common Stock, Shares Outstanding | 25,113,569 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 17,571 | $ 14,563 |
Restricted cash | 16,775 | 7,189 |
Accounts receivable, less allowance of $15,590 and $12,806 at December 31, 2018 and 2017, respectively | 18,675 | 15,791 |
Inventories | 1,451 | 1,657 |
Prepaid income taxes and income taxes receivable | 178 | 207 |
Assets held for sale | 0 | 2,959 |
Prepaid expenses and other current assets | 2,461 | 2,352 |
Total current assets | 57,111 | 44,718 |
PROPERTY, EQUIPMENT AND FACILITIES - At cost, net of accumulated depreciation and amortization of $171,109 and $163,946 at December 31, 2018 and 2017, respectively | 49,292 | 52,866 |
OTHER ASSETS: | ||
Noncurrent restricted cash | 11,600 | 32,802 |
Noncurrent receivables, less allowance of $1,403 and $978 at December 31, 2018 and 2017, respectively | 12,175 | 8,928 |
Deferred income taxes, net | 424 | 424 |
Goodwill | 14,536 | 14,536 |
Other assets, net | 900 | 939 |
Total other assets | 39,635 | 57,629 |
TOTAL | 146,038 | 155,213 |
CURRENT LIABILITIES: | ||
Current portion of credit agreement | 15,000 | 0 |
Unearned tuition | 22,545 | 24,647 |
Accounts payable | 14,107 | 10,508 |
Accrued expenses | 10,605 | 11,771 |
Other short-term liabilities | 2,324 | 558 |
Total current liabilities | 64,581 | 47,484 |
NONCURRENT LIABILITIES: | ||
Long-term credit agreement | 33,769 | 52,593 |
Pension plan liabilities | 4,271 | 4,437 |
Accrued rent | 3,410 | 4,338 |
Other long-term liabilities | 141 | 548 |
Total liabilities | 106,172 | 109,400 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, no par value - 10,000,000 shares authorized, no shares issued and outstanding at December 31, 2018 and 2017 | 0 | 0 |
Common stock, no par value - authorized 100,000,000 shares at December 31, 2018 and 2017, issued and outstanding 30,552,333 shares at December 31, 2018 and 30,624,407 shares at December 31, 2017 | 141,377 | 141,377 |
Additional paid-in capital | 29,484 | 29,334 |
Treasury stock at cost - 5,910,541 shares at December 31, 2018 and 2017 | (82,860) | (82,860) |
Accumulated deficit | (44,073) | (37,528) |
Accumulated other comprehensive loss | (4,062) | (4,510) |
Total stockholders' equity | 39,866 | 45,813 |
TOTAL | $ 146,038 | $ 155,213 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Accounts receivable, allowance | $ 15,590 | $ 12,806 |
PROPERTY, EQUIPMENT AND FACILITIES - accumulated depreciation and amortization | 171,109 | 163,946 |
OTHER ASSETS: | ||
Noncurrent receivables, allowance | $ 1,403 | $ 978 |
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) | 30,552,333 | 30,624,407 |
Common stock, shares outstanding (in shares) | 30,552,333 | 30,624,407 |
Treasury stock, shares (in shares) | 5,910,541 | 5,910,541 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
REVENUE | $ 263,200 | $ 261,853 | $ 285,559 |
COSTS AND EXPENSES: | |||
Educational services and facilities | 125,373 | 129,413 | 144,426 |
Selling, general and administrative | 141,244 | 138,779 | 148,447 |
Loss (gain) on sale of assets | 537 | (1,623) | 233 |
Impairment of goodwill and long-lived assets | 0 | 0 | 21,367 |
Total costs and expenses | 267,154 | 266,569 | 314,473 |
OPERATING LOSS | (3,954) | (4,716) | (28,914) |
OTHER: | |||
Interest income | 31 | 56 | 155 |
Interest expense | (2,422) | (7,098) | (6,131) |
Other income | 0 | 0 | 6,786 |
LOSS BEFORE INCOME TAXES | (6,345) | (11,758) | (28,104) |
PROVISION (BENEFIT) FOR INCOME TAXES | 200 | (274) | 200 |
NET LOSS | $ (6,545) | $ (11,484) | $ (28,304) |
Basic | |||
Net loss per share (in dollars per share) | $ (0.27) | $ (0.48) | $ (1.21) |
Diluted | |||
Net loss per share (in dollars per share) | $ (0.27) | $ (0.48) | $ (1.21) |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 24,423,479 | 23,906,395 | 23,453,427 |
Diluted (in shares) | 24,423,479 | 23,906,395 | 23,453,427 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract] | |||
Net loss | $ (6,545) | $ (11,484) | $ (28,304) |
Other comprehensive income | |||
Employee pension plan adjustments | 448 | 1,591 | 971 |
Comprehensive loss | $ (6,097) | $ (9,893) | $ (27,333) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
BALANCE at Dec. 31, 2015 | $ 141,377 | $ 27,292 | $ (82,860) | $ 2,260 | $ (7,072) | $ 80,997 |
BALANCE (in shares) at Dec. 31, 2015 | 29,727,555 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | $ 0 | 0 | 0 | (28,304) | 0 | (28,304) |
Employee pension plan adjustments | 0 | 0 | 0 | 0 | 971 | 971 |
Stock-based compensation expense | ||||||
Restricted stock | $ 0 | 1,440 | 0 | 0 | 0 | 1,440 |
Restricted stock (in shares) | 1,029,267 | |||||
Net share settlement for equity-based compensation | $ 0 | (178) | 0 | 0 | 0 | (178) |
Net share settlement for equity-based compensation (in shares) | (71,805) | |||||
BALANCE at Dec. 31, 2016 | $ 141,377 | 28,554 | (82,860) | (26,044) | (6,101) | 54,926 |
BALANCE (in shares) at Dec. 31, 2016 | 30,685,017 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | $ 0 | 0 | 0 | (11,484) | 0 | (11,484) |
Employee pension plan adjustments | 0 | 0 | 0 | 0 | 1,591 | 1,591 |
Stock-based compensation expense | ||||||
Restricted stock | $ 0 | 1,220 | 0 | 0 | 0 | 1,220 |
Restricted stock (in shares) | 128,810 | |||||
Net share settlement for equity-based compensation | $ 0 | (440) | 0 | 0 | 0 | (440) |
Net share settlement for equity-based compensation (in shares) | (189,420) | |||||
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 | 30,624,407 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | $ 0 | 0 | 0 | (6,545) | 0 | $ (6,545) |
Employee pension plan adjustments | 0 | 0 | 0 | 0 | 448 | 448 |
Stock-based compensation expense | ||||||
Restricted stock | 0 | 522 | 0 | 0 | 0 | 522 |
Net share settlement for equity-based compensation | $ 0 | (372) | 0 | 0 | 0 | (372) |
Net share settlement for equity-based compensation (in shares) | (207,642) | |||||
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 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (6,545) | $ (11,484) | $ (28,304) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 8,421 | 8,702 | 11,066 |
Amortization of deferred finance costs | 369 | 583 | 949 |
Write-off of deferred finance charges | 0 | 2,161 | 0 |
Deferred income taxes | 0 | (424) | 0 |
Loss (gain) on disposition of assets | 537 | (1,623) | 223 |
Gain on capital lease termination, net | 0 | 0 | (6,710) |
Impairment of goodwill and long-lived assets | 0 | 0 | 21,367 |
Fixed asset donation | 0 | (19) | (123) |
Provision for doubtful accounts | 17,705 | 13,720 | 14,592 |
Stock-based compensation expense | 522 | 1,220 | 1,440 |
Deferred rent | (958) | (1,312) | (489) |
(Increase) decrease in assets: | |||
Accounts receivable | (23,836) | (15,733) | (15,700) |
Inventories | 206 | 30 | 201 |
Prepaid income taxes and income taxes receivable | 29 | 55 | 87 |
Prepaid expenses and current assets | (109) | 532 | 412 |
Other assets | (191) | (1,163) | (1,701) |
Increase (decrease) in liabilities: | |||
Accounts payable | 3,753 | (3,193) | 742 |
Accrued expenses | (1,136) | (3,613) | 1,195 |
Unearned tuition | (2,102) | (131) | (6,854) |
Other liabilities | 1,641 | 371 | 1,500 |
Total adjustments | 4,851 | 163 | 22,197 |
Net cash used in operating activities | (1,694) | (11,321) | (6,107) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (4,697) | (4,755) | (3,596) |
Proceeds from sale of property and equipment | 2,348 | 15,462 | 451 |
Net cash (used in) provided by investing activities | (2,349) | 10,707 | (3,145) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from borrowings | 31,000 | 75,900 | 0 |
Payments on borrowings | (35,099) | (66,766) | (387) |
Payment of deferred finance fees | (94) | (1,241) | (645) |
Net share settlement for equity-based compensation | (372) | (440) | (178) |
Payments under capital lease obligations | 0 | 0 | (2,864) |
Net cash (used in) provided by financing activities | (4,565) | 7,453 | (4,074) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (8,608) | 6,839 | (13,326) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Beginning of year | 54,554 | 47,715 | 61,041 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - End of year | 45,946 | 54,554 | 47,715 |
Cash paid for: | |||
Interest | 2,030 | 2,790 | 5,265 |
Income taxes | 191 | 139 | 150 |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES: | |||
Liabilities accrued for or noncash purchases of fixed assets | $ 265 | $ 1,447 | $ 2,048 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
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 revolving loan availability under the credit facility designated as Facility 1 under the Company’s Credit Agreement to $22.7 million. 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 cost 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 $700,000 of severance payments. LCNE results, previously reported in the HOPS segment, are now included in the Transitional segment as of December 31, 2018.] Liquidity — Principles of Consolidation Cash and Cash Equivalents Restricted Cash Accounts Receivable Allowance for Uncollectible Accounts Inventories Property, Equipment and Facilities Depreciation and Amortization Rent Expense Advertising Costs Goodwill and Other Intangible Assets When we test goodwill balances for impairment, we estimate the fair value of each of our reporting units based on projected future operating results and cash flows, market assumptions and/or comparative market multiple methods. Determining fair value requires significant estimates and assumptions based on an evaluation of a number of factors, such as marketplace participants, relative market share, new student interest, student retention, future expansion or contraction expectations, amount and timing of future cash flows and the discount rate applied to the cash flows. Projected future operating results and cash flows used for valuation purposes do reflect improvements relative to recent historical periods with respect to, among other things, modest revenue growth and operating margins. Although we believe our projected future operating results and cash flows and related estimates regarding fair values are based on reasonable assumptions, historically projected operating results and cash flows have not always been achieved. The failure of one of our reporting units to achieve projected operating results and cash flows in the near term or long term may reduce the estimated fair value of the reporting unit below its carrying value and result in the recognition of a goodwill impairment charge. Significant management judgment is necessary to evaluate the impact of operating and macroeconomic changes and to estimate future cash flows. Assumptions used in our impairment evaluations, such as forecasted growth rates and our cost of capital, are based on the best available market information and are consistent with our internal forecasts and operating plans. In addition to cash flow estimates, our valuations are sensitive to the rate used to discount cash flows and future growth assumptions. At December 31, 2018 and 2017, we conducted our annual test for goodwill impairment and determined we did not have an impairment. At December 31, 2016, we conducted our annual test for goodwill impairment and determined we had an impairment of $9.9 million. Impairment of Long-Lived Assets — The Company concluded that for the years ended December 31, 2018 and 2017, there were no long-lived asset impairments. The Company concluded that, for the year ended December 31, 2016, there was sufficient evidence to conclude that there was an impairment of certain long-lived assets which resulted in a pre-tax charge of $11.5 million. Concentration of Credit Risk The Company extends credit for tuition and fees to many of its students. The credit risk with respect to these accounts receivable is mitigated through the students' participation in federally funded financial aid programs unless students withdraw prior to the receipt of federal funds for those students. In addition, the remaining tuition receivables are primarily comprised of smaller individual amounts due from students. With respect to student receivables, the Company had no significant concentrations of credit risk as of December 31, 2018 and 2017. Use of Estimates in the Preparation of Financial Statements Stock-Based Compensation Plans 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 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. See information regarding the impact of the Tax Cuts and Jobs Act in Note 11. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the years ended December 31, 2018 and 2017, we did not record any interest and penalties expense associated with uncertain tax positions. Start-up Costs — New Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2018-14, “Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” This ASU adds, modifies and clarifies several disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This guidance is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. We are currently assessing the effect that this ASU will have on our consolidated financial statements and related disclosures. 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 , The FASB has issued ASU 2017-09, “Compensation—Stock Compensation (Topic 718) — Scope of Modification Accounting.” ASU 2017-09 applies to entities that change the terms or conditions of a share-based payment award. The FASB adopted ASU 2017-09 to provide clarity and reduce diversity in practice as well as cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation, to the modification of the terms and conditions of a share-based payment award. The amendments provide guidance on determining which changes to the terms and conditions of share-based payment award require an entity to apply modification accounting under Topic 718. ASU 2017-09 is effective for all entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. The Company adopted ASU 2017-09 on January 1, 2018. The adoption of ASU 2017-09 had no impact on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220)”. The updated guidance allows entities to reclassify stranded income tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) from accumulated other comprehensive income to retained earnings in their consolidated financial statements. Under the Tax Act, deferred taxes were adjusted to reflect the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate, which left the tax effects on items within accumulated other comprehensive income stranded at an inappropriate tax rate. The updated guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted in any interim period and should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. The adoption of ASU No. 2018-02 is not expected to have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment.” ASU 2017-04 provides amendments to Accounting Standards Code (“ASC”) 350, “Intangibles - Goodwill and Other,” which eliminate Step 2 from the goodwill impairment test. Entities should perform their goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. The amendments in this update are effective prospectively during interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company adopted the provisions of ASU 2017-04 as of April 1, 2017. As fair values for our operating units exceed their carrying values, there has been no impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business ("ASU No. 2017-01"). Under the amendments in this update, an acquisition would have to include an input and a substantive process that together significantly contribute to the ability to create outputs to be considered a business. In acquisitions where outputs are not present, FASB has developed more stringent criteria for sets of transferred assets and activities without outputs. The Company adopted ASU No. 2017-01 on January 1, 2018. There was no material impact associated with the adoption of the standard. In November 2016, the FASB issued ASU 2016-18: “Statement of Cash Flows (Topic 230): Restricted Cash.” This guidance was issued to address the disparity that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. The amendments will require that the statement of cash flows explain the change during the period in total cash, cash equivalents and restricted cash. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted the new standard effective January 1, 2018. The amendments were applied using a retrospective transition method to each period presented. The Company includes in its cash and cash-equivalent balances in the consolidated statements of cash flows those amounts that have been classified as restricted cash and restricted cash equivalents for each of the periods presented. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted the new standard effective January 1, 2018. The adoption of ASU 2016-15 had no impact on the Company’s consolidated financial statements. In May 2014, the FASB issued a comprehensive new revenue recognition standard, ASU 2014-09, “ Revenue from Contracts with Customers We adopted the new standard effective January 1, 2018 using the modified retrospective approach. The Company’s revenue streams primarily consist of tuition and related services provided to students over the course of the program as well as other transactional revenue such as tools. Based on the Company's assessment, the analysis of the contract portfolio under ASU 2016-10 results in the revenue for the majority of the Company's student contracts being recognized over time which is consistent with the Company's previous revenue recognition model. For all student contracts, there is continuous transfer of control to the student and the number of performance obligations under ASU 2016-10 is consistent with those identified under the existing standard. The impact of the adoption of the new standard on revenue recognition for student contracts is immaterial on its consolidated financial statements. See additional information in Note 4. In February 2016, the FASB issued ASU No. 2016-02, Leases ("ASU No. 2016-02"). This guidance amends the existing accounting considerations and treatments for leases through the creation of Topic 842, Leases, to increase transparency and comparability among organizations by requiring the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from such leases. In July 2018, FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases ("ASU No. 2018-10”) to further clarify, correct and consolidate various areas previously discussed in ASU 2016-02. FASB also issued ASU No. 2018-11, Leases: Targeted Improvements ("ASU 2018-11") to provide entities another option for transition and lessors with a practical expedient. The transition option allows entities to not apply ASU No. 2016-02 in comparative periods in the financial statements in the year of adoption. The practical expedient offers lessors an option to not separate non-lease components from the associated lease components when certain criteria are met. 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 and 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 ROU assets at the adoption date. Additionally, the Company did not separate lease components from non-lease components for the specified asset classes. The Company established a corporate implementation team, which engages with cross-functional representatives from all its businesses. The Company utilized a bottom-up approach to analyze the impact of the standard on its lease contract portfolio by reviewing current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to lease arrangements. In addition, the Company identified and implemented the appropriate changes to its business processes, systems and controls to support recognition and disclosure under the new standard. The Company determines if an arrangement is a lease at inception. A 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. The implicit rate is to be applied when readily determinable. The operating lease ROU assets will also include any lease payments made 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. Lease expense for lease payments will be recognized on a straight-line basis over the lease term. Finance leases are to be included in property and equipment, other current liabilities, and other long-term liabilities within the consolidated balance sheets. Upon adoption of the new leasing standards, we expect to recognize a lease liability between $46 million and $49 million and a right-to-use asset between $42 million and $45 million on our consolidated balance sheet. The impact to retained earnings is expected to be immaterial. |
FINANCIAL AID AND REGULATORY CO
FINANCIAL AID AND REGULATORY COMPLIANCE | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL AID AND REGULATORY COMPLIANCE [Abstract] | |
FINANCIAL AID AND REGULATORY COMPLIANCE | 2. FINANCIAL AID AND REGULATORY COMPLIANCE Financial Aid The Company’s schools and students participate in a variety of government-sponsored financial aid programs that assist students in paying the cost of their education. The largest source of such support is the federal programs of student financial assistance under Title IV of the Higher Education Act of 1965, as amended, commonly referred to as the Title IV Programs, which are administered by the U.S. Department of Education (the "DOE"). During the years ended December 31, 2018, 2017 and 2016, approximately 78%, 78% and 79%, respectively, of net revenues on a cash basis were indirectly derived from funds distributed under Title IV Programs. For the years ended December 31, 2018, 2017 and 2016, the Company calculated that no individual DOE reporting entity received more than 90% of its revenue, determined on a cash basis under DOE regulations, from the Title IV Program funds. The Company’s calculations may be subject to review by the DOE. Under DOE regulations, a proprietary institution that derives more than 90% of its total revenue from the Title IV Programs for two consecutive fiscal years becomes immediately ineligible to participate in the Title IV Programs and may not reapply for eligibility until the end of two fiscal years. An institution with revenues exceeding 90% for a single fiscal year, will be placed on provisional certification and may be subject to other enforcement measures. If one of the Company’s institutions violated the 90/10 Rule and became ineligible to participate in Title IV Programs but continued to disburse Title IV Program funds, the DOE would require the institution to repay all Title IV Program funds received by the institution after the effective date of the loss of eligibility. Regulatory Compliance To participate in Title IV Programs, a school must be authorized to offer its programs of instruction by relevant state education agencies, be accredited by an accrediting commission recognized by the DOE and be certified as an eligible institution by the DOE. For this reason, the schools are subject to extensive regulatory requirements imposed by all of these entities. After the schools receive the required certifications by the appropriate entities, the schools must demonstrate their compliance with the DOE regulations of the Title IV Programs on an ongoing basis. Included in these regulations is the requirement that the institution must satisfy specific standards of financial responsibility. The DOE evaluates institutions for compliance with these standards each year, based upon the institution’s annual audited financial statements, as well as following a change in ownership resulting in a change of control of the institution. The DOE calculates the institution's composite score for financial responsibility based on its (i) equity ratio, which measures the institution's capital resources, ability to borrow and financial viability; (ii) primary reserve ratio, which measures the institution's ability to support current operations from expendable resources; and (iii) net income ratio, which measures the institution's ability to operate at a profit. This composite score can range from -1 to +3. The composite score must be at least 1.5 for the institution to be deemed financially responsible without the need for further oversight. If an institution’s composite score is below 1.5, but is at least 1.0, it is in a category denominated by the DOE as “the zone.” Under the DOE regulations, institutions that are in the zone typically may be permitted by the DOE to continue to participate in the Title IV Programs by choosing one of two alternatives: 1) the “Zone Alternative” under which the institution is required to make disbursements to students under the Heightened Cash Monitoring 1 (HCM1) payment method and to notify the DOE within 10 days after the occurrence of certain oversight and financial events or 2) submit a letter of credit to the DOE in an amount determined by the DOE and equal to at least 50 percent of the Title IV Program funds received by the institution during the most recent fiscal year. Under the HCM1 payment method, the institution is required to make Title IV Program disbursements to eligible students and parents before it requests or receives funds for the amount of those disbursements from the DOE. As long as the student accounts are credited before the funding requests are initiated, the institution is permitted to draw down funds through the DOE’s electronic system for grants management and payments for the amount of disbursements made to eligible students. Unlike the Heightened Cash Monitoring 2 (HCM2) and reimbursement payment methods, the HCM1 payment method typically does not require schools to submit documentation to the DOE and wait for DOE approval before drawing down Title IV Program funds. If a Company’s composite score is below 1.5 for three consecutive years an institution may be able to continue to operate under the Zone Alternative; however, this determination is made solely by the DOE. If an institution’s composite score drops below 1.0 in a given year or if its composite score remains between 1.0 and 1.4 for three or more consecutive years, it may be required to meet alternative requirements for continuing to participate in Title IV Programs by submitting a letter of credit, complying with monitoring requirements, disbursing Title IV Program funds under the HCM1, HCM2, or reimbursement payment methods, and complying with other requirements and conditions. Effective July 1, 2016, a school subject to HCM1, HCM2 or reimbursement payment methods must also pay any credit balances due to a student before drawing down funds for the amount of those disbursements from the DOE, even if the student or his or her parent provides written authorization for the school to hold the credit balance. The DOE permits an institution to participate under the “Zone Alternative” for a period of up to three consecutive fiscal years; however, this determination is made solely by the DOE. If an institution’s composite score is between 1.0 and 1.4 after three or more consecutive years with a composite score below 1.5, it may be required to meet alternative requirements for continuing to participate in Title IV Programs by submitting a letter of credit, complying with monitoring requirements, disbursing Title IV Program funds under the HCM1, HCM2, or reimbursement payment methods, and complying with other requirements and conditions. If an institution's composite score is below 1.0, the institution is considered by the DOE to lack financial responsibility. If the DOE determines that an institution does not satisfy the DOE's financial responsibility standards, depending on its composite score and other factors, that institution may establish its financial responsibility on an alternative basis by, among other things: · Posting a letter of credit in an amount determined by the DOE equal to at least 50% of the total Title IV Program funds received by the institution during the institution's most recently completed fiscal year; · Posting a letter of credit in an amount determined by the DOE equal to at least 10% of such prior year's Title IV Program funds, accepting provisional certification, complying with additional DOE monitoring requirements and agreeing to receive Title IV Program funds under an arrangement other than the DOE's standard advance funding arrangement. For the 2018 fiscal year, the Company calculated its composite score to be 1.1. T The DOE has evaluated the financial responsibility of our institutions on a consolidated basis. The Company has submitted to the DOE our audited financial statements for the 2017 and 2016 fiscal years reflecting a composite score of 1.1 and 1.5, respectively, based upon its calculations. An institution participating in Title IV Programs must calculate the amount of unearned Title IV Program funds that have been disbursed to students who withdraw from their educational programs before completing them, and must return those unearned funds to the DOE or the applicable lending institution in a timely manner, which is generally within 45 days from the date the institution determines that the student has withdrawn. If an institution is cited in an audit or program review for returning Title IV Program funds late for 5% or more of the students in the audit or program review sample or if the regulatory auditor identifies a material weakness in the institution’s report on internal controls relating to the return of unearned Title IV Program funds, the institution may be required to post a letter of credit in favor of the DOE in an amount equal to 25% of the total amount of Title IV Program funds that should have been timely returned for students who withdrew in the institution's previous fiscal year. |
WEIGHTED AVERAGE COMMON SHARES
WEIGHTED AVERAGE COMMON SHARES | 12 Months Ended |
Dec. 31, 2018 | |
WEIGHTED AVERAGE COMMON SHARES [Abstract] | |
WEIGHTED AVERAGE COMMON SHARES | 3. WEIGHTED AVERAGE COMMON SHARES The weighted average number of common shares used to compute basic and diluted income per share for the years ended December 31, 2018, 2017 and 2016, respectively were as follows: Year Ended December 31, 2018 2017 2016 Basic shares outstanding 24,423,479 23,906,395 23,453,427 Dilutive effect of stock options - - - Diluted shares outstanding 24,423,479 23,906,395 23,453,427 For the years ended December 31, 2018, 2017 and 2016, options to acquire 50,422, 570,306, and 773,078 shares, respectively, were excluded from the above table because the Company reported a net loss for the year and, therefore, their impact on reported loss per share would have been antidilutive. For the years ended December 31, 2018, 2017 and 2016, options to acquire 139,000, 167,667, and 218,167 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 | 12 Months Ended |
Dec. 31, 2018 | |
REVENUE RECOGNITION [Abstract] | |
REVENUE RECOGNITION | 4. REVENUE RECOGNITION Prior to adoption of ASU 2014-09 Revenues are derived primarily from programs taught at our schools. Tuition revenues, textbook sales and one-time fees, such as nonrefundable application fees and course material fees, are recognized on a straight-line basis over the length of the applicable program as the student proceeds through the program, which is the period of time from a student’s start date through his or her graduation date (including internships or externships, if any, occurring prior to graduation), and we complete the performance of teaching the student entitling us to the revenue. Other revenues, such as tool sales and contract training revenues, are recognized as goods are delivered or training completed. On an individual student basis, tuition earned in excess of cash received is recorded as accounts receivable, and cash received in excess of tuition earned is recorded as unearned tuition. We evaluate whether collectability of revenue is reasonably assured prior to the student commencing a program by attending class and reassess collectability of tuition and fees when a student withdraws from a course. We calculate the amount to be returned under Title IV and its stated refund policy to determine eligible charges and, if there is a balance due from the student after this calculation, we expect payment from the student. We have a process to pursue uncollected accounts whereby, based upon the student’s financial means and ability to pay, a payment plan is established with the student to ensure that collectability is reasonable. We continuously monitor our historical collections to identify potential trends that may impact our determination that collectability of receivables for withdrawn students is realizable. If a student withdraws from a program prior to a specified date, any paid but unearned tuition is refunded. Refunds are calculated and paid in accordance with federal, state and accrediting agency standards. Generally, the amount to be refunded to a student is calculated based upon the period of time the student has attended classes and the amount of tuition and fees paid by the student as of his or her withdrawal date. These refunds typically reduce deferred tuition revenue and cash on our consolidated balance sheets as we generally do not recognize tuition revenue in our consolidated statements of income (loss) until the related refund provisions have lapsed. Based on the application of our refund policies, we may be entitled to incremental revenue on the day the student withdraws from one of our schools. We record revenue for students who withdraw from one of our schools when payment is received because collectability on an individual student basis is not reasonably assured. After adoption of ASU 2014-09 On January 1, 2018, we adopted the new standard on revenue recognition, ASU 2014-09, using the modified retrospective approach of ASU 2016-10. The adoption of the guidance in ASU 2014-09 as amended by ASU 2016-10 did not have a material impact on the measurement or recognition of revenue in any prior or current reporting periods and there was no adjustment to retained earnings. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to students in an amount that reflects the consideration to which the company expects to be entitled in exchange for such goods or services. 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 Unearned tuition is the only significant contract asset or liability impacted by our adoption of ASU 2016-10. Unearned tuition in the amount of $22.5 million and $24.6 million is recorded in the current liabilities section of the accompanying consolidated balance sheets as of December 31, 2018 and December 31, 2017, respectively. The change in the contract liability balance during the year ended December 31, 2018 is the result of payments received in advance of satisfying performance obligations, offset by revenue recognized during that period. Revenue recognized for the year ended December 31, 2018 that were included in the contract liability balance at the beginning of the year was $24.5 million. The following table depicts the timing of revenue recognition: Year ended December 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 $ 10,351 $ 3,834 $ 72 $ 14,257 Services transferred over time 174,912 68,301 5,730 248,943 Total revenues $ 185,263 $ 72,135 $ 5,802 $ 263,200 Year ended December 31, 2017 Transportation and Skilled Trades Segment Healthcare and Other Professions Segment Transitional Segment Consolidated Timing of Revenue Recognition Services transferred at a point in time $ 8,987 $ 2,860 $ 28 $ 11,875 Services transferred over time 172,341 60,781 16,856 249,978 Total revenues $ 181,328 $ 63,641 $ 16,884 $ 261,853 Year ended December 31, 2016 Transportation and Skilled Trades Segment Healthcare and Other Professions Segment Transitional Segment Consolidated Timing of Revenue Recognition Services transferred at a point in time $ 8,856 $ 2,765 $ 556 $ 12,177 Services transferred over time 173,421 60,105 39,856 273,382 Total revenues $ 182,277 $ 62,870 $ 40,412 $ 285,559 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2018 | |
GOODWILL [Abstract] | |
GOODWILL | 5. GOODWILL Changes in the carrying amount of goodwill during the years ended December 31, 2018 and 2017 are as follows: Gross Goodwill Balance Accumulated Impairment Losses Net Goodwill Balance Balance as of January 1, 2017 $ 117,176 $ 102,640 $ 14,536 Adjustments - - - Balance as of December 31, 2017 117,176 102,640 14,536 Adjustments - - - Balance as of December 31, 2018 $ 117,176 $ 102,640 $ 14,536 As of December 31, 2018 and 2017, the goodwill balance of $14.5 million is related to the Transportation and Skilled Trades segment. |
PROPERTY, EQUIPMENT AND FACILIT
PROPERTY, EQUIPMENT AND FACILITIES | 12 Months Ended |
Dec. 31, 2018 | |
PROPERTY, EQUIPMENT AND FACILITIES [Abstract] | |
PROPERTY, EQUIPMENT AND FACILITIES | 6. PROPERTY, EQUIPMENT AND FACILITIES Property, equipment and facilities consist of the following: Useful life (years) At December 31, 2018 2017 Land - $ 6,969 $ 6,969 Buildings and improvements 1-25 128,431 127,027 Equipment, furniture and fixtures 1-7 83,766 81,772 Vehicles 3 916 883 Construction in progress - 319 161 220,401 216,812 Less accumulated depreciation and amortization (171,109 ) (163,946 ) $ 49,292 $ 52,866 Depreciation and amortization expense of property, equipment and facilities was $8.4 million, $8.7 million and $11.0 million for the years ended December 31, 2018, 2017 and 2016, respectively. As discussed in Note 1, the Company sold its property in Mangonia Park Palm Beach County, Florida and associated assets. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
ACCRUED EXPENSES [Abstract] | |
ACCRUED EXPENSES | 7. ACCRUED EXPENSES Accrued expenses consist of the following: At December 31, 2018 2017 Accrued compensation and benefits $ 4,337 $ 3,114 Accrued rent and real estate taxes 3,057 3,151 Other accrued expenses 3,211 5,506 $ 10,605 $ 11,771 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2018 | |
LONG-TERM DEBT [Abstract] | |
LONG-TERM DEBT | 8. LONG-TERM DEBT Long-term debt consist of the following: At December 31, 2018 2017 Credit agreement $ 49,301 $ 53,400 Deferred financing fees (532 ) (807 ) 48,769 52,593 Less current maturities (15,000 ) - $ 33,769 $ 52,593 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 Fourth Amendment provides for the repayment of the Term Loan 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 of the Borrowers 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 Fourth Amendment changed the maturity date of Facility 2 from May 31, 2020 to April 30, 2020. The maturity date for Facility 3 is May 31, 2019. 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 outstanding under Facility 1 prior to its conversion to a term loan also bore 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%. Under the terms of the Fourth Amendment, 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. The Fourth Amendment provides that 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 Fourth Amendment requires the Borrowers to give the Bank the first opportunity to provide any and all traditional banking services required by the Borrowers, including, but not limited to, treasury management, loans and other financing services, on terms mutually acceptable to the Borrowers 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 Fourth Amendment requires that the Borrowers 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 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 revolving loan availability under Facility 1 was permanently reduced to $22.7 million. 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, including financial covenants that (i) restrict capital expenditures tested on a fiscal year end basis; (i) 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. The Credit Agreement contains events of default customary for facilities of this type. As of December 31, 2018, the Company is in compliance with all covenants. As of December 31, 2018, the Company had $49.3 million outstanding under the Credit Facility; offset by $0. million of deferred finance fees. As of December 31, 2017, the Company had $53.4 million outstanding under the Credit Facility, offset by $0.8 million of deferred finance fees, which were written-off. As of December 31, 2018 and December 31, 2017, letters of credit in the aggregate outstanding principal amount of $1.8 million and $7.2 million, respectively, were outstanding under the Credit Facility. For the three months ended March 31, 2019, the Company is required to increase its letters of credit by $2.8 million related to state bond requirements which requires the Company to increase its restricted cash balance by $2.8 million. Scheduled maturities of long-term debt at December 31, 2018 are as follows: Year ending December 31, 2019 $ 15,000 * 2020 33,769 2021 - 2022 - 2023 - Thereafter - $ 48,769 * Includes deferred finance fees of $0.5 million. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY | 9. 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 received 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 23, 2018, restricted shares of common stock of the Company were granted to certain employees of the Company, which shares vested immediately. There is no restriction on the right to vote or the right to receive dividends with respect to any of such restricted shares; however, the recipient can only sell or otherwise transfer the shares after the expiration of a specified period of time ranging from 120 to 240 days following the date of grant. On May 13, 2016 and January 16, 2017, performance-based restricted shares were granted to certain employees of the Company, which vest on March 15, 2017 and March 15, 2018 based upon the attainment of a financial metric during each fiscal year ending December 31, 2016 and 2017. These shares were fully vested as of March 31, 2018 and are held without restriction. On June 2, 2014 and December 18, 2014, performance-based restricted shares were granted to certain employees of the Company, which vest over three years based upon the attainment of (i) a specified operating income margin during any one or more of the fiscal years in the period beginning January 1, 2015 and ending December 31, 2017 and (ii) the attainment of earnings before interest, taxes, depreciation and amortization targets during each of the fiscal years ended December 31, 2015 through 2017. There is no restriction on the right to vote or the right to receive dividends with respect to any of these 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. There is no restriction on the right to vote or the right to receive dividends with respect to any of the restricted shares. In 2018, 2017 and 2016, the Company completed a net share settlement for 207,642, 189,420 and 71,805 restricted shares and stock options exercised, 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 or exercise of the stock options. The net share settlement was in connection with income taxes incurred on restricted shares or stock option exercises that vested and were transferred to the employee during 2018, 2017 and/or 2016, creating taxable income for the employee. 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 or shares acquired upon the exercise of stock options to the Company. These transactions resulted in a decrease of approximately $0.4 million, $0.4 million and $0.2 million in 2018, 2017 and 2016, respectively, to equity as the cash payment of the taxes effectively was a repurchase of the restricted shares or shares acquired through the exercise of stock options 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, 2016 1,143,599 $ 1.89 Granted 181,208 2.58 Cancelled (52,398 ) 5.63 Vested (664,415 ) 1.77 Nonvested restricted stock outstanding at December 31, 2017 607,994 1.90 Granted 135,568 1.60 Cancelled - - Vested (707,654 ) 1.82 Nonvested restricted stock outstanding at December 31, 2018 35,908 2.23 The restricted stock expense for each of the years ended December 31, 2018, 2017 and 2016 was $0.5 million, $1.2 million and $1.4 million, respectively. The unrecognized restricted stock expense as of December 31, 2018 and 2017 was less than $0.1 million and $0.3 million, respectively. As of December 31, 2018, unrecognized restricted stock expense will be expensed over the weighted-average period of approximately 5 months. As of December 31, 2018, outstanding restricted shares under the LTIP had an aggregate intrinsic value of $0.1 million. For the year ended December 31, 2017, 52,398 shares were cancelled as the performance criteria was not met. Stock Options During 2018, 2017 and 2016 there were no new stock option grants. The following is a summary of transactions pertaining to the option plans: Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding January 1, 2016 246,167 $ 12.52 3.98 years $ - Cancelled (28,000 ) 15.76 - Outstanding December 31, 2016 218,167 12.11 3.33 years - Cancelled (50,500 ) 12.09 - Outstanding December 31, 2017 167,667 12.11 2.97 years - Cancelled (28,667 ) 11.98 Outstanding December 31, 2018 139,000 12.14 2.53 years - Vested as of December 31, 2018 139,000 12.14 2.53 years - Exercisable as of December 31, 2018 139,000 12.14 2.53 years - As of December 31, 2018, there are no unrecognized pre-tax compensation expense for unvested stock option awards. The following table presents a summary of options outstanding at December 31, 2018: At December 31, 2018 Stock Options Outstanding Stock Options Exercisable Range of Exercise Prices Shares Contractual Weighted Average life (years) Weighted Average Exercise Price Shares Weighted Average Exercise Price $ 4.00-$13.99 91,000 3.17 $ 7.79 91,000 $ 7.79 $ 14.00-$19.99 17,000 0.84 19.98 17,000 19.98 $ 20.00-$25.00 31,000 1.59 20.62 31,000 20.62 139,000 2.53 12.14 139,000 12.14 |
PENSION PLAN
PENSION PLAN | 12 Months Ended |
Dec. 31, 2018 | |
PENSION PLAN [Abstract] | |
PENSION PLAN | 10. PENSION PLAN The Company sponsors a noncontributory defined benefit pension plan covering substantially all of the Company's union employees. Benefits are provided based on employees' years of service and earnings. This plan was frozen on December 31, 1994 for non-union employees. The following table sets forth the plan's funded status and amounts recognized in the consolidated financial statements: Year Ended December 31, 2018 2017 2016 CHANGES IN BENEFIT OBLIGATIONS: Benefit obligation-beginning of year $ 23,492 $ 22,916 $ 23,341 Service cost 28 29 28 Interest cost 755 840 888 Actuarial (gain) loss (1,951 ) 721 (255 ) Benefits paid (1,219 ) (1,014 ) (1,086 ) Benefit obligation at end of year 21,105 23,492 22,916 CHANGE IN PLAN ASSETS: Fair value of plan assets-beginning of year 19,055 17,548 17,792 Actual return on plan assets (1,000 ) 2,521 842 Benefits paid (1,220 ) (1,014 ) (1,086 ) Fair value of plan assets-end of year 16,835 19,055 17,548 BENEFIT OBLIGATION IN EXCESS OF FAIR VALUE FUNDED STATUS: $ (4,270 ) $ (4,437 ) $ (5,368 ) For the year ended December 31, 2018, the actuarial gain of $1.9 million was due to the increase in the discount rate from 3.36% to 4.01%. Amounts recognized in the consolidated balance sheets consist of: At December 31, 2018 2017 2016 Noncurrent liabilities $ (4,270 ) $ (4,437 ) $ (5,368 ) Amounts recognized in accumulated other comprehensive loss consist of: Year Ended December 31, 2018 2017 2016 Accumulated loss $ (6,428 ) $ (6,876 ) $ (8,467 ) Deferred income taxes 2,366 2,366 2,366 Accumulated other comprehensive loss $ (4,062 ) $ (4,510 ) $ (6,101 ) The accumulated benefit obligation was $21.1 million and $23.5 million at December 31, 2018 and 2017, respectively. The following table provides the components of net periodic cost for the plan: Year Ended December 31, 2018 2017 2016 COMPONENTS OF NET PERIODIC BENEFIT COST Service cost $ 28 $ 29 $ 28 Interest cost 755 840 888 Expected return on plan assets (1,104 ) (1,058 ) (1,118 ) Recognized net actuarial loss 601 850 991 Net periodic benefit cost $ 280 $ 661 $ 789 The estimated net loss, transition obligation and prior service cost for the plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next year is $0.6 million. The following tables present plan assets using the fair value hierarchy as of December 31, 2018 and 2017. The fair value hierarchy has three levels based on the reliability of inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using observable prices that are based on inputs not quoted in active markets but observable by market data, while Level 3 includes the fair values estimated using significant non-observable inputs. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Equity securities $ 5,428 $ - $ - $ 5,428 Fixed income 5,852 - - 5,852 International equities 3,734 - - 3,734 Real estate 795 - - 795 Cash and equivalents 1,026 - - 1,026 Balance at December 31, 2018 $ 16,835 $ - $ - $ 16,835 Quoted Prices in Active Markets for Identical Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Equity securities $ 6,856 $ - $ - $ 6,856 Fixed income 6,818 - - 6,818 International equities 3,490 - - 3,490 Real estate 1,133 - - 1,133 Cash and equivalents 758 - - 758 Balance at December 31, 2017 $ 19,055 $ - $ - $ 19,055 Fair value of total plan assets by major asset category as of December 31: 2018 2017 Equity securities 32 % 36 % Fixed income 35 % 36 % International equities 22 % 18 % Real estate 5 % 6 % Cash and equivalents 6 % 4 % Total 100 % 100 % Weighted-average assumptions used to determine benefit obligations as of December 31: 2018 2017 2016 Discount rate 4.01 % 3.36 % 3.81 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Weighted-average assumptions used to determine net periodic pension cost for years ended December 31: 2018 2017 2016 Discount rate 4.01 % 3.36 % 3.81 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Long-term rate of return 6.25 % 6.00 % 6.25 % As this plan was frozen to non-union employees on December 31, 1994, the difference between the projected benefit obligation and accumulated benefit obligation is not significant in any year. The Company invests plan assets based on a total return on investment approach, pursuant to which the plan assets include a diversified blend of equity and fixed income investments toward a goal of maximizing the long-term rate of return without assuming an unreasonable level of investment risk. The Company determines the level of risk based on an analysis of plan liabilities, the extent to which the value of the plan assets satisfies the plan liabilities and the plan's financial condition. The investment policy includes target allocations ranging from 30% to 70% for equity investments, 20% to 60% for fixed income investments and 0% to 10% for cash equivalents. The equity portion of the plan assets represents growth and value stocks of small, medium and large companies. The Company measures and monitors the investment risk of the plan assets both on a quarterly basis and annually when the Company assesses plan liabilities. The Company uses a building block approach to estimate the long-term rate of return on plan assets. This approach is based on the capital markets assumption that the greater the volatility, the greater the return over the long term. An analysis of the historical performance of equity and fixed income investments, together with current market factors such as the inflation and interest rates, are used to help make the assumptions necessary to estimate a long-term rate of return on plan assets. Once this estimate is made, the Company reviews the portfolio of plan assets and makes adjustments thereto that the Company believes are necessary to reflect a diversified blend of equity and fixed income investments that is capable of achieving the estimated long-term rate of return without assuming an unreasonable level of investment risk. The Company also compares the portfolio of plan assets to those of other pension plans to help assess the suitability and appropriateness of the plan's investments. The Company does not expect to make contributions to the plan in 2019. However after considering the funded status of the plan, movements in the discount rate, investment performance and related tax consequences, the Company may choose to make additional contributions to the plan in any given year. The total amount of the Company’s contributions paid under its pension plan was zero for each of the years ended December 31, 2018 and 2017, respectively. Information about the expected benefit payments for the plan is as follows: Year Ending December 31, 2019 $ 1,335 2020 1,347 2021 1,350 2022 1,368 2023 1,382 Years 2024-2028 6,859 The Company has a 401(k) defined contribution plan for all eligible employees. Employees may contribute up to 25% of their compensation into the plan. The Company may contribute up to an additional 30% of the employee's contributed amount up to 6% of compensation. For the years ended December 31, 2018, 2017 and 2016, the Company's expense for the 401(k) plan amounted to $0.1 million, $0.1 million and $0.7 million, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 11. INCOME TAXES Components of the provision for income taxes were as follows: Year Ended December 31, 2018 2017 2016 Current: Federal $ - $ - $ - State 200 150 200 Total 200 150 200 Deferred: Federal - (424 ) - State - - - Total - (424 ) - Total (benefit) provision $ 200 $ (274 ) $ 200 Effective Tax rate The reconciliation of the effective tax rate to the U.S. Statutory Federal Income tax rate was: Year Ended December 31, 2018 2017 2016 Loss before taxes $ (6,345 ) $ (11,758 ) $ (28,104 ) Expected tax benefit $ (1,332 ) 21.0 % $ (4,115 ) 35.0 % $ (9,836 ) 35.0 % State tax benefit (net of federal) 200 (3.2 ) 150 (1.3 ) 200 (0.7 ) Valuation allowance 1,230 (19.4 ) (13,920 ) 118.4 9,726 (34.6 ) Federal tax reform - deferred rate change 49 (0.8 ) 17,671 (150.3 ) - - Other 53 (0.8 ) (60 ) 0.5 110 (0.4 ) Total $ 200 (3.2 )% $ (274 ) 2.3 % $ 200 (0.7 )% On December 22, 2017, the U.S. government enacted comprehensive tax legislation known as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act establishes new tax laws that took effect in 2018, including, but not limited to (1) reduction of the U.S. federal corporate tax rate from a maximum of 35% to 21%; (2) elimination of the corporate alternative minimum tax (AMT); (3) a new limitation on deductible interest expense; (4) the repeal of the domestic production activity deduction; (5) limitations on the deductibility of certain executive compensation; and (6) limitation on net operating losses (NOLs) generated after December 31, 2017, to 80% of taxable income. In addition, certain changes were made to the bonus depreciation rules that impacted fiscal year 2017. Our provision for income taxes was $0.2 million, or 3.2% of pretax loss, for the year ended December 31, 2018, compared to a benefit for income taxes of $0.3 million, or 2.3% of pretax loss, in the prior year comparable period. No federal or state income tax benefit was recognized for the current period loss due to the recognition of a full valuation allowance. Income tax expense resulted from various minimal state tax expenses. The deferred tax provision benefit in the prior year was due to recognition of $ 0.4 million of valuation allowance for the AMT credits. The tax expense in prior year included an adjustment to measure net deferred tax assets at the new U.S. tax rate of 21%. The expense was offset with a corresponding release of valuation allowance. In accordance with Staff Accounting Bulletin 118 ("SAB 118"), we completed our analysis of the Tax Act resulting in no material adjustments from the provisional amounts recorded during the prior year. The Tax Act did not have a material impact on our financial statements because we are under a full valuation allowance. Deferred Taxes and Valuation Allowance The components of the non-current deferred tax assets/(liabilities) were as follows: At December 31, 2018 2017 Gross noncurrent deferred tax assets (liabilities) Allowance for bad debts $ 4,828 $ 3,792 Accrued rent 1,833 1,723 Accrued benefits - 105 Stock-based compensation 18 387 163J interest limitation 19 - Depreciation 16,259 15,520 Goodwill (98 ) 594 Other intangibles 211 291 Pension plan liabilities 1,163 1,221 Net operating loss carryforwards 17,927 17,367 AMT credit 424 424 Gross noncurrent deferred tax assets, net 42,584 41,424 Less valuation allowance (42,160 ) (41,000 ) Noncurrent deferred tax assets, net $ 424 $ 424 Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence was the cumulative losses incurred by the Company in recent years. On the basis of this evaluation the Company believes it is not more likely than not that it will realize its deferred tax assets except the deferred tax assets for AMT credits which can be realized to offset regular tax liability or refunded. As a result, as of December 31, 2018 and 2017, the Company has recorded a valuation allowance of $42.2 million and $41.0 million, respectively, against its net deferred tax assets. With respect to AMT credit deferred tax asset, it is expected that 50% will be refunded upon the filings of the Company's 2018 federal Corporate income tax return is filed. As As of December 31, 2018, 2017 and 2016, the Company no longer has any liability for uncertain tax positions. The Company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states. The Company is no longer subject to U.S. federal income tax examinations for years before 2015 and, generally, is no longer subject to state and local income tax examinations by tax authorities for years before 2014. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2018 | |
FAIR VALUE [Abstract] | |
FAIR VALUE | 12. 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 Consolidated Balance Sheets, are listed in the table below: December 31, 2018 Carrying Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Amount (Level 1) (Level 2) (Level 3) Total Financial Assets: Cash and cash equivalents $ 17,571 $ 17,571 $ - $ - $ 17,571 Restricted cash 28,375 28,375 - - 28,375 Prepaid expenses and other current assets 2,461 - 2,461 - 2,461 Financial Liabilities: Accrued expenses $ 10,605 $ - $ 10,605 $ - $ 10,605 Other short term liabilities 2,324 - 2,324 - 2,324 Credit facility 48,769 - 43,096 - 43,096 December 31, 2017 Carrying Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Amount (Level 1) (Level 2) (Level 3) Total Financial Assets: Cash and cash equivalents $ 14,563 $ 14,563 $ - $ - $ 14,563 Restricted cash 39,991 39,991 - - 39,991 Prepaid expenses and other current assets 2,352 - 2,352 - 2,352 Financial Liabilities: Accrued expenses $ 11,771 $ - $ 11,771 $ - $ 11,771 Other short term liabilities 558 - 558 - 558 Credit facility 52,593 - 47,200 - 47,200 We estimate fair value of Facility 1 and Facility 2 of the revolving credit facility based on a present value analysis utilizing aggregate market yields obtained from independent pricing sources for similar financial instruments. The carrying value for Facility 3 of the revolving credit facility approximates fair value due to the fact that the borrowings were made in close proximity to December 31, 2017. 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. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2018 | |
SEGMENT REPORTING [Abstract] | |
SEGMENT REPORTING | 13. SEGMENT REPORTING 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 as of December 31, 2018. 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. For all prior periods presented, the Company reclassified its Marietta, Georgia campus from the HOPS segment to the Transportation and Skilled Trades segment. This reclassification occurred to address how the Company evaluates performance and allocates resources and was approved by the Company’s Board of Directors. Summary financial information by reporting segment is as follows: For the Year Ended December 31, Revenue Operating (Loss) Income 2018 % of Total 2017 % of Total 2016 % of Total 2018 2017 2016 Transportation and Skilled Trades $ 185,263 70.4 % $ 181,328 69.2 % $ 182,276 63.8 % $ 17,661 $ 17,795 $ 21,578 Healthcare and Other Professions 72,135 27.4 % 63,641 24.3 % 62,870 22.0 % 6,469 3,937 (9,392 ) Transitional 5,802 2.3 % 16,884 6.4 % 40,413 14.2 % (5,994 ) (6,926 ) (16,995 ) Corporate - 0.0 % - 0.0 % - 0.0 % (22,090 ) (19,522 ) (24,105 ) Total $ 263,200 100 % $ 261,853 100 % $ 285,559 100 % $ (3,954 ) $ (4,716 ) $ (28,914 ) Total Assets December 31, 2018 December 31, 2017 Transportation and Skilled Trades $ 92,070 $ 81,751 Healthcare and Other Professions 14,078 8,297 Transitional 527 4,812 Corporate 39,363 60,353 Total $ 146,038 $ 155,213 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES Lease Commitments Year Ending December 31, Operating Leases 2019 $ 16,939 2020 14,183 2021 10,708 2022 8,180 2023 5,811 Thereafter 17,610 $ 73,431 Rent expense, included in operating expenses in the accompanying consolidated statements of operations for the three years ended December 31, 2018, 2017 and 2016 is $17.8 million, $17.4 million and $20.7 million, respectively. Litigation and Regulatory Matters — Student Loans — Vendor Relationship — Executive Employment Agreements Change in Control Agreements Surety Bonds |
RELATED PARTY
RELATED PARTY | 12 Months Ended |
Dec. 31, 2018 | |
RELATED PARTY [Abstract] | |
RELATED PARTY | 15. RELATED PARTY The Company has an agreement with Matco Tools, whereby Matco will provide to 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 were $1.8 million and $2.4 million for the year ended December 31, 2018 and 2017, 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. |
UNAUDITED QUARTERLY FINANCIAL I
UNAUDITED QUARTERLY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
UNAUDITED QUARTERLY FINANCIAL INFORMATION [Abstract] | |
UNAUDITED QUARTERLY FINANCIAL INFORMATION | 16. UNAUDITED QUARTERLY FINANCIAL INFORMATION The following tables have been updated to reflect changes in discontinued operations. Quarterly financial information for 2018 and 2017 is as follows: Quarter 2018 First Second Third Fourth Revenue $ 61,889 $ 61,120 $ 70,078 $ 70,113 Net (loss) income (6,874 ) (4,104 ) (600 ) 5,033 Basic Net (loss) earnings per share $ (0.28 ) $ (0.17 ) $ (0.02 ) $ 0.21 Diluted Net (loss) earnings per share $ (0.28 ) $ (0.17 ) $ (0.02 ) $ 0.20 Weighted average number of common shares outstanding: Basic 24,138 24,486 24,533 24,533 Diluted 24,138 24,486 24,533 24,562 Quarter 2017 First Second Third Fourth Revenue $ 65,279 $ 61,865 $ 67,308 $ 67,401 Net (loss) income (10,929 ) (6,771 ) (1,490 ) 7,707 Basic Net (loss) earnings per share $ (0.46 ) $ (0.28 ) $ (0.06 ) $ 0.32 Diluted Net (loss) earnings per share $ (0.46 ) $ (0.28 ) $ (0.06 ) $ 0.31 Weighted average number of common shares outstanding: Basic 23,609 23,962 24,024 24,025 Diluted 23,609 23,962 24,024 24,590 |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Schedule II-Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts (in thousands) Description Balance at Beginning of Period Charged to Expense Accounts Written-off Balance at End of Period Allowance accounts for the year ended: December 31, 2018 Student receivable allowance $ 13,784 $ 17,705 $ (14,496 ) $ 16,993 December 31, 2017 Student receivable allowance $ 14,794 $ 13,720 $ (14,730 ) $ 13,784 December 31, 2016 Student receivable allowance $ 14,074 $ 14,592 $ (13,872 ) $ 14,794 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 revolving loan availability under the credit facility designated as Facility 1 under the Company’s Credit Agreement to $22.7 million. 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 cost 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 $700,000 of severance payments. LCNE results, previously reported in the HOPS segment, are now included in the Transitional segment as of December 31, 2018.] |
Liquidity | Liquidity — |
Principles of Consolidation | Principles of Consolidation |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Restricted Cash | Restricted Cash |
Accounts Receivable | Accounts Receivable |
Allowance for Uncollectible Accounts | Allowance for Uncollectible Accounts |
Inventories | Inventories |
Property, Equipment and Facilities - Depreciation and Amortization | Property, Equipment and Facilities Depreciation and Amortization |
Rent Expense | Rent Expense |
Advertising Costs | Advertising Costs |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets When we test goodwill balances for impairment, we estimate the fair value of each of our reporting units based on projected future operating results and cash flows, market assumptions and/or comparative market multiple methods. Determining fair value requires significant estimates and assumptions based on an evaluation of a number of factors, such as marketplace participants, relative market share, new student interest, student retention, future expansion or contraction expectations, amount and timing of future cash flows and the discount rate applied to the cash flows. Projected future operating results and cash flows used for valuation purposes do reflect improvements relative to recent historical periods with respect to, among other things, modest revenue growth and operating margins. Although we believe our projected future operating results and cash flows and related estimates regarding fair values are based on reasonable assumptions, historically projected operating results and cash flows have not always been achieved. The failure of one of our reporting units to achieve projected operating results and cash flows in the near term or long term may reduce the estimated fair value of the reporting unit below its carrying value and result in the recognition of a goodwill impairment charge. Significant management judgment is necessary to evaluate the impact of operating and macroeconomic changes and to estimate future cash flows. Assumptions used in our impairment evaluations, such as forecasted growth rates and our cost of capital, are based on the best available market information and are consistent with our internal forecasts and operating plans. In addition to cash flow estimates, our valuations are sensitive to the rate used to discount cash flows and future growth assumptions. At December 31, 2018 and 2017, we conducted our annual test for goodwill impairment and determined we did not have an impairment. At December 31, 2016, we conducted our annual test for goodwill impairment and determined we had an impairment of $9.9 million. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets — The Company concluded that for the years ended December 31, 2018 and 2017, there were no long-lived asset impairments. The Company concluded that, for the year ended December 31, 2016, there was sufficient evidence to conclude that there was an impairment of certain long-lived assets which resulted in a pre-tax charge of $11.5 million. |
Concentration of Credit Risk | Concentration of Credit Risk The Company extends credit for tuition and fees to many of its students. The credit risk with respect to these accounts receivable is mitigated through the students' participation in federally funded financial aid programs unless students withdraw prior to the receipt of federal funds for those students. In addition, the remaining tuition receivables are primarily comprised of smaller individual amounts due from students. With respect to student receivables, the Company had no significant concentrations of credit risk as of December 31, 2018 and 2017. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements |
Stock-Based Compensation Plans | Stock-Based Compensation Plans 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 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. See information regarding the impact of the Tax Cuts and Jobs Act in Note 11. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the years ended December 31, 2018 and 2017, we did not record any interest and penalties expense associated with uncertain tax positions. |
Start-up Costs | Start-up Costs — |
New Accounting Pronouncements | New Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2018-14, “Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” This ASU adds, modifies and clarifies several disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This guidance is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. We are currently assessing the effect that this ASU will have on our consolidated financial statements and related disclosures. 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 , The FASB has issued ASU 2017-09, “Compensation—Stock Compensation (Topic 718) — Scope of Modification Accounting.” ASU 2017-09 applies to entities that change the terms or conditions of a share-based payment award. The FASB adopted ASU 2017-09 to provide clarity and reduce diversity in practice as well as cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation, to the modification of the terms and conditions of a share-based payment award. The amendments provide guidance on determining which changes to the terms and conditions of share-based payment award require an entity to apply modification accounting under Topic 718. ASU 2017-09 is effective for all entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. The Company adopted ASU 2017-09 on January 1, 2018. The adoption of ASU 2017-09 had no impact on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220)”. The updated guidance allows entities to reclassify stranded income tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) from accumulated other comprehensive income to retained earnings in their consolidated financial statements. Under the Tax Act, deferred taxes were adjusted to reflect the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate, which left the tax effects on items within accumulated other comprehensive income stranded at an inappropriate tax rate. The updated guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted in any interim period and should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. The adoption of ASU No. 2018-02 is not expected to have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment.” ASU 2017-04 provides amendments to Accounting Standards Code (“ASC”) 350, “Intangibles - Goodwill and Other,” which eliminate Step 2 from the goodwill impairment test. Entities should perform their goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. The amendments in this update are effective prospectively during interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company adopted the provisions of ASU 2017-04 as of April 1, 2017. As fair values for our operating units exceed their carrying values, there has been no impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business ("ASU No. 2017-01"). Under the amendments in this update, an acquisition would have to include an input and a substantive process that together significantly contribute to the ability to create outputs to be considered a business. In acquisitions where outputs are not present, FASB has developed more stringent criteria for sets of transferred assets and activities without outputs. The Company adopted ASU No. 2017-01 on January 1, 2018. There was no material impact associated with the adoption of the standard. In November 2016, the FASB issued ASU 2016-18: “Statement of Cash Flows (Topic 230): Restricted Cash.” This guidance was issued to address the disparity that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. The amendments will require that the statement of cash flows explain the change during the period in total cash, cash equivalents and restricted cash. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted the new standard effective January 1, 2018. The amendments were applied using a retrospective transition method to each period presented. The Company includes in its cash and cash-equivalent balances in the consolidated statements of cash flows those amounts that have been classified as restricted cash and restricted cash equivalents for each of the periods presented. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted the new standard effective January 1, 2018. The adoption of ASU 2016-15 had no impact on the Company’s consolidated financial statements. In May 2014, the FASB issued a comprehensive new revenue recognition standard, ASU 2014-09, “ Revenue from Contracts with Customers We adopted the new standard effective January 1, 2018 using the modified retrospective approach. The Company’s revenue streams primarily consist of tuition and related services provided to students over the course of the program as well as other transactional revenue such as tools. Based on the Company's assessment, the analysis of the contract portfolio under ASU 2016-10 results in the revenue for the majority of the Company's student contracts being recognized over time which is consistent with the Company's previous revenue recognition model. For all student contracts, there is continuous transfer of control to the student and the number of performance obligations under ASU 2016-10 is consistent with those identified under the existing standard. The impact of the adoption of the new standard on revenue recognition for student contracts is immaterial on its consolidated financial statements. See additional information in Note 4. In February 2016, the FASB issued ASU No. 2016-02, Leases ("ASU No. 2016-02"). This guidance amends the existing accounting considerations and treatments for leases through the creation of Topic 842, Leases, to increase transparency and comparability among organizations by requiring the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from such leases. In July 2018, FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases ("ASU No. 2018-10”) to further clarify, correct and consolidate various areas previously discussed in ASU 2016-02. FASB also issued ASU No. 2018-11, Leases: Targeted Improvements ("ASU 2018-11") to provide entities another option for transition and lessors with a practical expedient. The transition option allows entities to not apply ASU No. 2016-02 in comparative periods in the financial statements in the year of adoption. The practical expedient offers lessors an option to not separate non-lease components from the associated lease components when certain criteria are met. 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 and 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 ROU assets at the adoption date. Additionally, the Company did not separate lease components from non-lease components for the specified asset classes. The Company established a corporate implementation team, which engages with cross-functional representatives from all its businesses. The Company utilized a bottom-up approach to analyze the impact of the standard on its lease contract portfolio by reviewing current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to lease arrangements. In addition, the Company identified and implemented the appropriate changes to its business processes, systems and controls to support recognition and disclosure under the new standard. The Company determines if an arrangement is a lease at inception. A 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. The implicit rate is to be applied when readily determinable. The operating lease ROU assets will also include any lease payments made 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. Lease expense for lease payments will be recognized on a straight-line basis over the lease term. Finance leases are to be included in property and equipment, other current liabilities, and other long-term liabilities within the consolidated balance sheets. Upon adoption of the new leasing standards, we expect to recognize a lease liability between $46 million and $49 million and a right-to-use asset between $42 million and $45 million on our consolidated balance sheet. The impact to retained earnings is expected to be immaterial. |
WEIGHTED AVERAGE COMMON SHARES
WEIGHTED AVERAGE COMMON SHARES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
WEIGHTED AVERAGE COMMON SHARES [Abstract] | |
Weighted Average Numbers of Common Shares Used to Compute Basic And Diluted Income Per Share | The weighted average number of common shares used to compute basic and diluted income per share for the years ended December 31, 2018, 2017 and 2016, respectively were as follows: Year Ended December 31, 2018 2017 2016 Basic shares outstanding 24,423,479 23,906,395 23,453,427 Dilutive effect of stock options - - - Diluted shares outstanding 24,423,479 23,906,395 23,453,427 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
REVENUE RECOGNITION [Abstract] | |
Depicts Timing of Revenue Recognition | The following table depicts the timing of revenue recognition: Year ended December 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 $ 10,351 $ 3,834 $ 72 $ 14,257 Services transferred over time 174,912 68,301 5,730 248,943 Total revenues $ 185,263 $ 72,135 $ 5,802 $ 263,200 Year ended December 31, 2017 Transportation and Skilled Trades Segment Healthcare and Other Professions Segment Transitional Segment Consolidated Timing of Revenue Recognition Services transferred at a point in time $ 8,987 $ 2,860 $ 28 $ 11,875 Services transferred over time 172,341 60,781 16,856 249,978 Total revenues $ 181,328 $ 63,641 $ 16,884 $ 261,853 Year ended December 31, 2016 Transportation and Skilled Trades Segment Healthcare and Other Professions Segment Transitional Segment Consolidated Timing of Revenue Recognition Services transferred at a point in time $ 8,856 $ 2,765 $ 556 $ 12,177 Services transferred over time 173,421 60,105 39,856 273,382 Total revenues $ 182,277 $ 62,870 $ 40,412 $ 285,559 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
GOODWILL [Abstract] | |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill during the years ended December 31, 2018 and 2017 are as follows: Gross Goodwill Balance Accumulated Impairment Losses Net Goodwill Balance Balance as of January 1, 2017 $ 117,176 $ 102,640 $ 14,536 Adjustments - - - Balance as of December 31, 2017 117,176 102,640 14,536 Adjustments - - - Balance as of December 31, 2018 $ 117,176 $ 102,640 $ 14,536 |
PROPERTY, EQUIPMENT AND FACIL_2
PROPERTY, EQUIPMENT AND FACILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PROPERTY, EQUIPMENT AND FACILITIES [Abstract] | |
Property, Equipment and Facilities | Property, equipment and facilities consist of the following: Useful life (years) At December 31, 2018 2017 Land - $ 6,969 $ 6,969 Buildings and improvements 1-25 128,431 127,027 Equipment, furniture and fixtures 1-7 83,766 81,772 Vehicles 3 916 883 Construction in progress - 319 161 220,401 216,812 Less accumulated depreciation and amortization (171,109 ) (163,946 ) $ 49,292 $ 52,866 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
ACCRUED EXPENSES [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following: At December 31, 2018 2017 Accrued compensation and benefits $ 4,337 $ 3,114 Accrued rent and real estate taxes 3,057 3,151 Other accrued expenses 3,211 5,506 $ 10,605 $ 11,771 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
LONG-TERM DEBT [Abstract] | |
Long-term Debt | Long-term debt consist of the following: At December 31, 2018 2017 Credit agreement $ 49,301 $ 53,400 Deferred financing fees (532 ) (807 ) 48,769 52,593 Less current maturities (15,000 ) - $ 33,769 $ 52,593 |
Scheduled Maturities of Long-term Debt | Scheduled maturities of long-term debt at December 31, 2018 are as follows: Year ending December 31, 2019 $ 15,000 * 2020 33,769 2021 - 2022 - 2023 - Thereafter - $ 48,769 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2016 1,143,599 $ 1.89 Granted 181,208 2.58 Cancelled (52,398 ) 5.63 Vested (664,415 ) 1.77 Nonvested restricted stock outstanding at December 31, 2017 607,994 1.90 Granted 135,568 1.60 Cancelled - - Vested (707,654 ) 1.82 Nonvested restricted stock outstanding at December 31, 2018 35,908 2.23 |
Transactions Pertaining to Option Plans | The following is a summary of transactions pertaining to the option plans: Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding January 1, 2016 246,167 $ 12.52 3.98 years $ - Cancelled (28,000 ) 15.76 - Outstanding December 31, 2016 218,167 12.11 3.33 years - Cancelled (50,500 ) 12.09 - Outstanding December 31, 2017 167,667 12.11 2.97 years - Cancelled (28,667 ) 11.98 Outstanding December 31, 2018 139,000 12.14 2.53 years - Vested as of December 31, 2018 139,000 12.14 2.53 years - Exercisable as of December 31, 2018 139,000 12.14 2.53 years - |
Options Outstanding | The following table presents a summary of options outstanding at December 31, 2018: At December 31, 2018 Stock Options Outstanding Stock Options Exercisable Range of Exercise Prices Shares Contractual Weighted Average life (years) Weighted Average Exercise Price Shares Weighted Average Exercise Price $ 4.00-$13.99 91,000 3.17 $ 7.79 91,000 $ 7.79 $ 14.00-$19.99 17,000 0.84 19.98 17,000 19.98 $ 20.00-$25.00 31,000 1.59 20.62 31,000 20.62 139,000 2.53 12.14 139,000 12.14 |
PENSION PLAN (Tables)
PENSION PLAN (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PENSION PLAN [Abstract] | |
Plan's Funded Status | The following table sets forth the plan's funded status and amounts recognized in the consolidated financial statements: Year Ended December 31, 2018 2017 2016 CHANGES IN BENEFIT OBLIGATIONS: Benefit obligation-beginning of year $ 23,492 $ 22,916 $ 23,341 Service cost 28 29 28 Interest cost 755 840 888 Actuarial (gain) loss (1,951 ) 721 (255 ) Benefits paid (1,219 ) (1,014 ) (1,086 ) Benefit obligation at end of year 21,105 23,492 22,916 CHANGE IN PLAN ASSETS: Fair value of plan assets-beginning of year 19,055 17,548 17,792 Actual return on plan assets (1,000 ) 2,521 842 Benefits paid (1,220 ) (1,014 ) (1,086 ) Fair value of plan assets-end of year 16,835 19,055 17,548 BENEFIT OBLIGATION IN EXCESS OF FAIR VALUE FUNDED STATUS: $ (4,270 ) $ (4,437 ) $ (5,368 ) |
Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets consist of: At December 31, 2018 2017 2016 Noncurrent liabilities $ (4,270 ) $ (4,437 ) $ (5,368 ) |
Amounts Recognized in Accumulated Other Comprehensive Loss | Amounts recognized in accumulated other comprehensive loss consist of: Year Ended December 31, 2018 2017 2016 Accumulated loss $ (6,428 ) $ (6,876 ) $ (8,467 ) Deferred income taxes 2,366 2,366 2,366 Accumulated other comprehensive loss $ (4,062 ) $ (4,510 ) $ (6,101 ) |
Components of Net Periodic Cost for Plan | The following table provides the components of net periodic cost for the plan: Year Ended December 31, 2018 2017 2016 COMPONENTS OF NET PERIODIC BENEFIT COST Service cost $ 28 $ 29 $ 28 Interest cost 755 840 888 Expected return on plan assets (1,104 ) (1,058 ) (1,118 ) Recognized net actuarial loss 601 850 991 Net periodic benefit cost $ 280 $ 661 $ 789 |
Plan Assets using Fair Value Hierarchy | The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Equity securities $ 5,428 $ - $ - $ 5,428 Fixed income 5,852 - - 5,852 International equities 3,734 - - 3,734 Real estate 795 - - 795 Cash and equivalents 1,026 - - 1,026 Balance at December 31, 2018 $ 16,835 $ - $ - $ 16,835 Quoted Prices in Active Markets for Identical Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Equity securities $ 6,856 $ - $ - $ 6,856 Fixed income 6,818 - - 6,818 International equities 3,490 - - 3,490 Real estate 1,133 - - 1,133 Cash and equivalents 758 - - 758 Balance at December 31, 2017 $ 19,055 $ - $ - $ 19,055 |
Fair Value of Total Plan Assets by Major Asset Category | Fair value of total plan assets by major asset category as of December 31: 2018 2017 Equity securities 32 % 36 % Fixed income 35 % 36 % International equities 22 % 18 % Real estate 5 % 6 % Cash and equivalents 6 % 4 % Total 100 % 100 % |
Expected Benefit Payments for Plan | Information about the expected benefit payments for the plan is as follows: Year Ending December 31, 2019 $ 1,335 2020 1,347 2021 1,350 2022 1,368 2023 1,382 Years 2024-2028 6,859 |
Benefit Obligations [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average Assumptions | Weighted-average assumptions used to determine benefit obligations as of December 31: 2018 2017 2016 Discount rate 4.01 % 3.36 % 3.81 % Rate of compensation increase 2.50 % 2.50 % 2.50 % |
Periodic Pension Cost [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average Assumptions | Weighted-average assumptions used to determine net periodic pension cost for years ended December 31: 2018 2017 2016 Discount rate 4.01 % 3.36 % 3.81 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Long-term rate of return 6.25 % 6.00 % 6.25 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAXES [Abstract] | |
Components of Provision for Income Taxes from Continuing Operations | Components of the provision for income taxes were as follows: Year Ended December 31, 2018 2017 2016 Current: Federal $ - $ - $ - State 200 150 200 Total 200 150 200 Deferred: Federal - (424 ) - State - - - Total - (424 ) - Total (benefit) provision $ 200 $ (274 ) $ 200 |
Reconciliation of Effective Tax Rate to U.S. Statutory Federal Income Tax Rate | The reconciliation of the effective tax rate to the U.S. Statutory Federal Income tax rate was: Year Ended December 31, 2018 2017 2016 Loss before taxes $ (6,345 ) $ (11,758 ) $ (28,104 ) Expected tax benefit $ (1,332 ) 21.0 % $ (4,115 ) 35.0 % $ (9,836 ) 35.0 % State tax benefit (net of federal) 200 (3.2 ) 150 (1.3 ) 200 (0.7 ) Valuation allowance 1,230 (19.4 ) (13,920 ) 118.4 9,726 (34.6 ) Federal tax reform - deferred rate change 49 (0.8 ) 17,671 (150.3 ) - - Other 53 (0.8 ) (60 ) 0.5 110 (0.4 ) Total $ 200 (3.2 )% $ (274 ) 2.3 % $ 200 (0.7 )% |
Components of Non-current Deferred Tax Assets | The components of the non-current deferred tax assets/(liabilities) were as follows: At December 31, 2018 2017 Gross noncurrent deferred tax assets (liabilities) Allowance for bad debts $ 4,828 $ 3,792 Accrued rent 1,833 1,723 Accrued benefits - 105 Stock-based compensation 18 387 163J interest limitation 19 - Depreciation 16,259 15,520 Goodwill (98 ) 594 Other intangibles 211 291 Pension plan liabilities 1,163 1,221 Net operating loss carryforwards 17,927 17,367 AMT credit 424 424 Gross noncurrent deferred tax assets, net 42,584 41,424 Less valuation allowance (42,160 ) (41,000 ) Noncurrent deferred tax assets, net $ 424 $ 424 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 Consolidated Balance Sheets, are listed in the table below: December 31, 2018 Carrying Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Amount (Level 1) (Level 2) (Level 3) Total Financial Assets: Cash and cash equivalents $ 17,571 $ 17,571 $ - $ - $ 17,571 Restricted cash 28,375 28,375 - - 28,375 Prepaid expenses and other current assets 2,461 - 2,461 - 2,461 Financial Liabilities: Accrued expenses $ 10,605 $ - $ 10,605 $ - $ 10,605 Other short term liabilities 2,324 - 2,324 - 2,324 Credit facility 48,769 - 43,096 - 43,096 December 31, 2017 Carrying Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Amount (Level 1) (Level 2) (Level 3) Total Financial Assets: Cash and cash equivalents $ 14,563 $ 14,563 $ - $ - $ 14,563 Restricted cash 39,991 39,991 - - 39,991 Prepaid expenses and other current assets 2,352 - 2,352 - 2,352 Financial Liabilities: Accrued expenses $ 11,771 $ - $ 11,771 $ - $ 11,771 Other short term liabilities 558 - 558 - 558 Credit facility 52,593 - 47,200 - 47,200 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SEGMENT REPORTING [Abstract] | |
Financial Information by Reporting Segment | Summary financial information by reporting segment is as follows: For the Year Ended December 31, Revenue Operating (Loss) Income 2018 % of Total 2017 % of Total 2016 % of Total 2018 2017 2016 Transportation and Skilled Trades $ 185,263 70.4 % $ 181,328 69.2 % $ 182,276 63.8 % $ 17,661 $ 17,795 $ 21,578 Healthcare and Other Professions 72,135 27.4 % 63,641 24.3 % 62,870 22.0 % 6,469 3,937 (9,392 ) Transitional 5,802 2.3 % 16,884 6.4 % 40,413 14.2 % (5,994 ) (6,926 ) (16,995 ) Corporate - 0.0 % - 0.0 % - 0.0 % (22,090 ) (19,522 ) (24,105 ) Total $ 263,200 100 % $ 261,853 100 % $ 285,559 100 % $ (3,954 ) $ (4,716 ) $ (28,914 ) Total Assets December 31, 2018 December 31, 2017 Transportation and Skilled Trades $ 92,070 $ 81,751 Healthcare and Other Professions 14,078 8,297 Transitional 527 4,812 Corporate 39,363 60,353 Total $ 146,038 $ 155,213 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CONTINGENCIES [Abstract] | |
Lease Commitments | The Company leases office premises, educational facilities and various equipment for varying periods through the year 2030 at basic annual rentals (excluding taxes, insurance, and other expenses under certain leases) as follows: Year Ending December 31, Operating Leases 2019 $ 16,939 2020 14,183 2021 10,708 2022 8,180 2023 5,811 Thereafter 17,610 $ 73,431 |
UNAUDITED QUARTERLY FINANCIAL_2
UNAUDITED QUARTERLY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
UNAUDITED QUARTERLY FINANCIAL INFORMATION [Abstract] | |
Quarterly Financial Information | The following tables have been updated to reflect changes in discontinued operations. Quarterly financial information for 2018 and 2017 is as follows: Quarter 2018 First Second Third Fourth Revenue $ 61,889 $ 61,120 $ 70,078 $ 70,113 Net (loss) income (6,874 ) (4,104 ) (600 ) 5,033 Basic Net (loss) earnings per share $ (0.28 ) $ (0.17 ) $ (0.02 ) $ 0.21 Diluted Net (loss) earnings per share $ (0.28 ) $ (0.17 ) $ (0.02 ) $ 0.20 Weighted average number of common shares outstanding: Basic 24,138 24,486 24,533 24,533 Diluted 24,138 24,486 24,533 24,562 Quarter 2017 First Second Third Fourth Revenue $ 65,279 $ 61,865 $ 67,308 $ 67,401 Net (loss) income (10,929 ) (6,771 ) (1,490 ) 7,707 Basic Net (loss) earnings per share $ (0.46 ) $ (0.28 ) $ (0.06 ) $ 0.32 Diluted Net (loss) earnings per share $ (0.46 ) $ (0.28 ) $ (0.06 ) $ 0.31 Weighted average number of common shares outstanding: Basic 23,609 23,962 24,024 24,025 Diluted 23,609 23,962 24,024 24,590 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Part 1 (Details) | Aug. 20, 2018USD ($) | Jul. 09, 2018USD ($) | Dec. 31, 2018USD ($)StatePopulation | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)SchoolStateCampusSegmentPopulation | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Activities [Abstract] | ||||||||||||||
Number of schools | School | 22 | |||||||||||||
Number of states in which schools operate across the United States | State | 14 | 14 | ||||||||||||
Number of campuses treated as destination schools | Campus | 5 | |||||||||||||
Number of reportable segments | Segment | 3 | |||||||||||||
Revenue | $ 70,113,000 | $ 70,078,000 | $ 61,120,000 | $ 61,889,000 | $ 67,401,000 | $ 67,308,000 | $ 61,865,000 | $ 65,279,000 | $ 263,200,000 | $ 261,853,000 | $ 285,559,000 | |||
Net loss | 5,033,000 | $ (600,000) | $ (4,104,000) | $ (6,874,000) | 7,707,000 | $ (1,490,000) | $ (6,771,000) | $ (10,929,000) | (6,545,000) | (11,484,000) | (28,304,000) | |||
Liquidity [Abstract] | ||||||||||||||
Cash and cash equivalents | 45,946,000 | $ 54,554,000 | 45,946,000 | $ 54,554,000 | $ 47,715,000 | $ 61,041,000 | ||||||||
Restricted cash | 28,400,000 | 28,400,000 | ||||||||||||
Credit Facility 1 [Member] | ||||||||||||||
Business Activities [Abstract] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 22,700,000 | 22,700,000 | ||||||||||||
Mangonia Park Property [Member] | ||||||||||||||
Business Activities [Abstract] | ||||||||||||||
Cash purchase price | $ 2,550,000 | |||||||||||||
Real estate brokerage fee percentage | 5.00% | |||||||||||||
Lincoln College of New England [Member] | ||||||||||||||
Business Activities [Abstract] | ||||||||||||||
Revenue | 8,400,000 | |||||||||||||
Net loss | $ 1,600,000 | |||||||||||||
Population | Population | 397 | 397 | ||||||||||||
Lease termination costs | $ 1,600,000 | |||||||||||||
Severance payment | $ 700,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Part 2 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |||
Maximum maturity period for classification of cash equivalents | 3 months | ||
Restricted Cash [Abstract] | |||
Restricted cash in long-term assets | $ 11,600 | $ 32,802 | |
Advertising Costs [Abstract] | |||
Advertising expense | $ 29,400 | $ 27,000 | $ 28,000 |
Goodwill and Other Intangible Assets [Abstract] | |||
Impairment of goodwill | $ 9,900 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Part 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Impairment of Long-Lived Assets [Abstract] | |||
Impairment of long-lived assets | $ 0 | $ 0 | $ 11,500 |
Concentration of Credit Risk [Abstract] | |||
Federal deposit insurance limit | 250 | ||
Excess cash, FDIC uninsured amount | 45,300 | ||
ASU 2016-02 [Member] | Plan [Member] | Minimum [Member] | |||
New Accounting Pronouncements [Abstract] | |||
Right to use asset | 42,000 | ||
Lease liability | 46,000 | ||
ASU 2016-02 [Member] | Plan [Member] | Maximum [Member] | |||
New Accounting Pronouncements [Abstract] | |||
Right to use asset | 45,000 | ||
Lease liability | $ 49,000 |
FINANCIAL AID AND REGULATORY _2
FINANCIAL AID AND REGULATORY COMPLIANCE (Details) - Unit | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial Aid [Abstract] | |||
Percentage of net revenues on cash basis indirectly derived from funds | 78.00% | 78.00% | 79.00% |
Maximum specified percentage of net revenues on cash basis indirectly derived from funds | 90.00% | 90.00% | 90.00% |
Period over which entity became ineligible after receiving specified percentage as revenue from funds | 2 years | ||
Period for which entity may not reapply for eligibility | 2 years | ||
Regulatory Compliance [Abstract] | |||
Composite score for financial responsibility | 1.1 | 1.1 | 1.5 |
Minimum Composite required for financial responsibility | 1.5 | ||
Maximum Period for institution to participate under the Zone Alternative | 3 years | ||
Period to return unearned Title IV Program funds | 45 days | ||
Minimum percentage of students returning Title IV Program funds late | 5.00% | ||
Percentage of Title IV Program funds in which the institution may be required to post a letter of credit in favor of DOE | 25.00% | ||
Minimum [Member] | |||
Regulatory Compliance [Abstract] | |||
Standard composite score for financial responsibility | -1 | ||
Maximum [Member] | |||
Regulatory Compliance [Abstract] | |||
Standard composite score for financial responsibility | 3 | ||
U.S. Department of Education [Member] | |||
Regulatory Compliance [Abstract] | |||
Maximum notification period | 10 days | ||
Minimum percentage Letter of credit amount equal Total Title IV Program funds | 50.00% | ||
Minimum percentage Letter of credit amount equal Prior Years Total Title IV Program funds | 10.00% | ||
U.S. Department of Education [Member] | Minimum [Member] | |||
Regulatory Compliance [Abstract] | |||
Composite score for financial responsibility | 1 | ||
Minimum Composite required for financial responsibility | 1 | ||
U.S. Department of Education [Member] | Maximum [Member] | |||
Regulatory Compliance [Abstract] | |||
Composite score for financial responsibility | 1.4 | ||
Minimum Composite required for financial responsibility | 1.5 |
WEIGHTED AVERAGE COMMON SHARE_2
WEIGHTED AVERAGE COMMON SHARES (Details) - shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares used to compute basic and diluted loss income per share [Abstract] | |||||||||||
Basic shares outstanding (in shares) | 24,533,000 | 24,533,000 | 24,486,000 | 24,138,000 | 24,025,000 | 24,024,000 | 23,962,000 | 23,609,000 | 24,423,479 | 23,906,395 | 23,453,427 |
Dilutive effect of stock options (in shares) | 0 | 0 | 0 | ||||||||
Diluted shares outstanding (in shares) | 24,562,000 | 24,533,000 | 24,486,000 | 24,138,000 | 24,590,000 | 24,024,000 | 23,962,000 | 23,609,000 | 24,423,479 | 23,906,395 | 23,453,427 |
Stock Option 2 [Member] | |||||||||||
Antidilutive Shares Details [Abstract] | |||||||||||
Antidilutive shares excluded from computation of loss per share (in shares) | 50,422 | 570,306 | 773,078 | ||||||||
Stock Option 1 [Member] | |||||||||||
Antidilutive Shares Details [Abstract] | |||||||||||
Antidilutive shares excluded from computation of loss per share (in shares) | 139,000 | 167,667 | 218,167 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Abstract] | |||||||||||
Total revenues | $ 70,113 | $ 70,078 | $ 61,120 | $ 61,889 | $ 67,401 | $ 67,308 | $ 61,865 | $ 65,279 | $ 263,200 | $ 261,853 | $ 285,559 |
Unearned tuition | 22,545 | 24,647 | 22,545 | 24,647 | |||||||
Revenue recognized included in contract liability | 24,500 | ||||||||||
ASU 2016-10 [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Unearned tuition | $ 22,500 | $ 24,600 | 22,500 | 24,600 | |||||||
Services Transferred at a Point in Time [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Total revenues | 14,257 | 11,875 | 12,177 | ||||||||
Services Transferred over Time [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Total revenues | 248,943 | 249,978 | 273,382 | ||||||||
Transportation and Skilled Trades Segment [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Total revenues | 185,263 | 181,328 | 182,277 | ||||||||
Transportation and Skilled Trades Segment [Member] | Services Transferred at a Point in Time [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Total revenues | 10,351 | 8,987 | 8,856 | ||||||||
Transportation and Skilled Trades Segment [Member] | Services Transferred over Time [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Total revenues | 174,912 | 172,341 | 173,421 | ||||||||
Healthcare and Other Professions Segment [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Total revenues | 72,135 | 63,641 | 62,870 | ||||||||
Healthcare and Other Professions Segment [Member] | Services Transferred at a Point in Time [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Total revenues | 3,834 | 2,860 | 2,765 | ||||||||
Healthcare and Other Professions Segment [Member] | Services Transferred over Time [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Total revenues | 68,301 | 60,781 | 60,105 | ||||||||
Transitional Segment [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Total revenues | 5,802 | 16,884 | 40,412 | ||||||||
Transitional Segment [Member] | Services Transferred at a Point in Time [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Total revenues | 72 | 28 | 556 | ||||||||
Transitional Segment [Member] | Services Transferred over Time [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Total revenues | $ 5,730 | $ 16,856 | $ 39,856 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in Carrying Amount of Goodwill [Abstract] | |||
Gross Goodwill Balance | $ 117,176 | $ 117,176 | $ 117,176 |
Accumulated Impairment Losses | 102,640 | 102,640 | 102,640 |
Net Goodwill Balance | 14,536 | 14,536 | $ 14,536 |
Adjustments | 0 | 0 | |
Transportation and Skilled Trades [Member] | |||
Changes in Carrying Amount of Goodwill [Abstract] | |||
Net Goodwill Balance | $ 14,500 | $ 14,500 |
PROPERTY, EQUIPMENT AND FACIL_3
PROPERTY, EQUIPMENT AND FACILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, equipment and facilities net [Abstract] | |||
Property, equipment and facilities, Gross | $ 220,401 | $ 216,812 | |
Less accumulated depreciation and amortization | (171,109) | (163,946) | |
Property, equipment and facilities, Net | 49,292 | 52,866 | |
Depreciation and amortization expense | 8,400 | 8,700 | $ 11,000 |
Land [Member] | |||
Property, equipment and facilities net [Abstract] | |||
Property, equipment and facilities, Gross | 6,969 | 6,969 | |
Buildings and Improvements [Member] | |||
Property, equipment and facilities net [Abstract] | |||
Property, equipment and facilities, Gross | $ 128,431 | 127,027 | |
Buildings and Improvements [Member] | Minimum [Member] | |||
Property, equipment and facilities net [Abstract] | |||
Useful life | 1 year | ||
Buildings and Improvements [Member] | Maximum [Member] | |||
Property, equipment and facilities net [Abstract] | |||
Useful life | 25 years | ||
Equipment, Furniture and Fixtures [Member] | |||
Property, equipment and facilities net [Abstract] | |||
Property, equipment and facilities, Gross | $ 83,766 | 81,772 | |
Equipment, Furniture and Fixtures [Member] | Minimum [Member] | |||
Property, equipment and facilities net [Abstract] | |||
Useful life | 1 year | ||
Equipment, Furniture and Fixtures [Member] | Maximum [Member] | |||
Property, equipment and facilities net [Abstract] | |||
Useful life | 7 years | ||
Vehicles [Member] | |||
Property, equipment and facilities net [Abstract] | |||
Useful life | 3 years | ||
Property, equipment and facilities, Gross | $ 916 | 883 | |
Construction in Progress [Member] | |||
Property, equipment and facilities net [Abstract] | |||
Property, equipment and facilities, Gross | $ 319 | $ 161 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ACCRUED EXPENSES [Abstract] | ||
Accrued compensation and benefits | $ 4,337 | $ 3,114 |
Accrued rent and real estate taxes | 3,057 | 3,151 |
Other accrued expenses | 3,211 | 5,506 |
Accrued expenses | $ 10,605 | $ 11,771 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) $ in Thousands | Mar. 06, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($)Property | Jul. 11, 2018USD ($) | Dec. 31, 2017USD ($) | |
Long term debt and lease obligations [Abstract] | ||||||
Deferred financing fees | $ (532) | $ (807) | ||||
Long term debt | 48,769 | 52,593 | ||||
Less current maturities | (15,000) | 0 | ||||
Long-term debt, excluding current maturities | $ 33,769 | 52,593 | ||||
Number of properties owned | Property | 4 | |||||
Letters of credit outstanding | $ 1,800 | 7,200 | ||||
Scheduled maturities of long-term debt [Abstract] | ||||||
2019 | [1] | 15,000 | ||||
2020 | 33,769 | |||||
2021 | 0 | |||||
2022 | 0 | |||||
2023 | 0 | |||||
Thereafter | 0 | |||||
Long term debt | 48,769 | |||||
Deferred finance fees | $ 500 | |||||
Colorado, Tennessee and Texas Properties [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Number of properties owned | Property | 3 | |||||
Connecticut [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Number of properties owned | Property | 1 | |||||
Subsequent Event [Member] | Prime Rate [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Interest rate on credit facility | 6.50% | |||||
Letter of Credit [Member] | ||||||
Long term debt and lease obligations [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 | |||||
Letter of Credit [Member] | Plan [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Increase in credit facility | $ 2,800 | |||||
Increase in restricted cash | $ 2,800 | |||||
Letter of Credit [Member] | Subsequent Event [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Percentage of unused facility fee payable quarterly | 1.25% | |||||
Credit Agreement [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Long-term line of credit | 49,301 | $ 53,400 | ||||
Line of credit facility, remaining borrowing capacity | $ 22,700 | |||||
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 and lease obligations [Abstract] | ||||||
Line of credit facility, maximum borrowing capacity | $ 25,000 | |||||
Line of credit facility, remaining borrowing capacity | $ 22,700 | |||||
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 1 [Member] | Subsequent Event [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Credit facility drew down amount | $ 25,000 | |||||
Revolving Credit Facility 2 [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Line of credit facility, maximum borrowing capacity | 25,000 | |||||
Revolving Credit Facility 2 [Member] | Prime Rate [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Interest rate on credit facility | 3.50% | |||||
Revolving Credit Facility 2 [Member] | Subsequent Event [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Line of credit facility, remaining borrowing capacity | 2,500 | |||||
Line of credit facility, additional borrowing capacity | $ 2,500 | |||||
Revolving Credit Facility 2 [Member] | Subsequent Event [Member] | Prime Rate [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Percentage of unused facility fee payable quarterly | 0.50% | |||||
Revolving Credit Facility 2 [Member] | Letter of Credit [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Line of credit facility, maximum borrowing capacity | 10,000 | |||||
Revolving Credit Facility 3 [Member] | ||||||
Long term debt and lease obligations [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 and lease obligations [Abstract] | ||||||
Interest rate on credit facility | 3.50% | |||||
Minimum [Member] | Revolving Credit Facility 2 [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Expiration date of credit facility | May 31, 2020 | |||||
Maximum [Member] | Revolving Credit Facility 2 [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Expiration date of credit facility | Apr. 30, 2020 | |||||
Tranche A [Member] | Credit Agreement [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Long-term line of credit | $ 25,000 | |||||
Tranche A [Member] | Revolving Credit Facility 1 [Member] | Prime Rate [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Interest rate on credit facility | 2.85% | |||||
Tranche A [Member] | Revolving Credit Facility 2 [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
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 and lease obligations [Abstract] | ||||||
Interest rate on credit facility | 2.85% | |||||
Tranche A [Member] | Revolving Credit Facility 2 [Member] | Subsequent Event [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Line of credit facility, remaining borrowing capacity | $ 1,250 | |||||
Tranche A [Member] | Revolving Credit Facility 3 [Member] | Prime Rate [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Interest rate on credit facility | 2.85% | |||||
Tranche B [Member] | Revolving Credit Facility 1 [Member] | Prime Rate [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Interest rate on credit facility | 6.00% | |||||
Tranche B [Member] | Revolving Credit Facility 2 [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
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 and lease obligations [Abstract] | ||||||
Interest rate on credit facility | 6.00% | |||||
Tranche B [Member] | Revolving Credit Facility 2 [Member] | Subsequent Event [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Line of credit facility, remaining borrowing capacity | $ 1,250 | |||||
Tranche B [Member] | Revolving Credit Facility 3 [Member] | Prime Rate [Member] | ||||||
Long term debt and lease obligations [Abstract] | ||||||
Interest rate on credit facility | 6.00% | |||||
[1] | Includes deferred finance fees of $0.5 million. |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)Plan$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | |
Stockholders' Equity Note Details [Abstract] | ||||
Number of stock incentive plans | Plan | 2 | |||
Shares [Abstract] | ||||
Outstanding, beginning balance (in shares) | shares | 167,667 | 218,167 | 246,167 | |
Canceled (in shares) | shares | (28,667) | (50,500) | (28,000) | |
Outstanding, ending balance (in shares) | shares | 139,000 | 167,667 | 218,167 | 246,167 |
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) | $ 12.11 | $ 12.11 | $ 12.52 | |
Cancelled (in dollars per share) | 11.98 | 12.09 | 15.76 | |
Outstanding, ending balance (in dollars per share) | 12.14 | $ 12.11 | $ 12.11 | $ 12.52 |
Vested (in dollars per share) | 12.14 | |||
Exercisable, ending balance (in dollars per share) | $ 12.14 | |||
Weighted Average Remaining Contractual Term [Abstract] | ||||
Outstanding, balance | 2 years 6 months 11 days | 2 years 11 months 19 days | 3 years 3 months 29 days | 3 years 11 months 23 days |
Vested | 2 years 6 months 11 days | |||
Exercisable, ending balance | 2 years 6 months 11 days | |||
Aggregate Intrinsic Value [Abstract] | ||||
Outstanding, beginning balance | $ | $ 0 | $ 0 | $ 0 | |
Cancelled | $ | 0 | 0 | ||
Outstanding, ending balance | $ | 0 | $ 0 | $ 0 | $ 0 |
Vested | $ | 0 | |||
Exercisable, ending balance | $ | $ 0 | |||
Stock Options Outstanding [Abstract] | ||||
Shares (in shares) | shares | 139,000 | |||
Contractual Weighted Average Life | 2 years 6 months 11 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 | |||
Minimum [Member] | ||||
Stockholders' Equity Note Details [Abstract] | ||||
Expiration period | 120 days | |||
Maximum [Member] | ||||
Stockholders' Equity Note Details [Abstract] | ||||
Expiration period | 240 days | |||
Restricted Stock [Member] | ||||
Shares [Abstract] | ||||
Nonvested restricted stock outstanding, beginning balance (in shares) | shares | 607,994 | 1,143,599 | ||
Granted (in shares) | shares | 135,568 | 181,208 | ||
Cancelled (in shares) | shares | 0 | (52,398) | ||
Vested (in shares) | shares | (707,654) | (664,415) | ||
Nonvested restricted stock outstanding, ending balance (in shares) | shares | 35,908 | 607,994 | 1,143,599 | |
Weighted Average Grant Date Fair Value [Abstract] | ||||
Nonvested restricted stock outstanding, beginning balance (in dollars per share) | $ 1.90 | $ 1.89 | ||
Granted (in dollars per share) | 1.60 | 2.58 | ||
Cancelled (in dollars per share) | 0 | 5.63 | ||
Vested (in dollars per share) | 1.82 | 1.77 | ||
Nonvested restricted stock outstanding, ending balance (in dollars per share) | $ 2.23 | $ 1.90 | $ 1.89 | |
Recognized restricted stock expense | $ | $ 500 | $ 1,200 | $ 1,400 | |
Unrecognized restricted stock expense | $ | $ 100 | |||
Weighted average period | 5 months | |||
Number of shares cancelled (in shares) | shares | 52,398 | |||
Restricted Stock [Member] | Maximum [Member] | ||||
Weighted Average Grant Date Fair Value [Abstract] | ||||
Unrecognized restricted stock expense | $ | $ 300 | |||
Stock Options [Member] | ||||
Stock Options [Abstract] | ||||
Stock options granted (in shares) | shares | 0 | 0 | 0 | |
Aggregate Intrinsic Value [Abstract] | ||||
Unrecognized pre-tax compensation expense | $ | $ 0 | |||
LTIP [Member] | ||||
Stockholders' Equity Note Details [Abstract] | ||||
Net share settlement for restricted stock (in shares) | shares | 207,642 | 189,420 | 71,805 | |
Net share settlement for stock options (in shares) | shares | 207,642 | 189,420 | 71,805 | |
Decrease in equity due to payment of tax for employee | $ | $ 400 | $ 400 | $ 200 | |
LTIP [Member] | June 2, 2014 [Member] | ||||
Stockholders' Equity Note Details [Abstract] | ||||
Vesting period of performance-based shares | 3 years | |||
Specified operating income margin period | 1 year | |||
LTIP [Member] | December 18, 2014 [Member] | ||||
Stockholders' Equity Note Details [Abstract] | ||||
Vesting period of performance-based shares | 3 years | |||
Specified operating income margin period | 1 year | |||
LTIP [Member] | Restricted Stock [Member] | ||||
Weighted Average Grant Date Fair Value [Abstract] | ||||
Outstanding restricted shares, intrinsic value | $ | $ 100 | |||
$ 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 | 3 years 2 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 | 10 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 7 months 2 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 |
PENSION PLAN, Plan's funded sta
PENSION PLAN, Plan's funded status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CHANGES IN BENEFIT OBLIGATIONS [Roll Forward] | |||
Benefit obligation-beginning of year | $ 23,492 | $ 22,916 | $ 23,341 |
Service cost | 28 | 29 | 28 |
Interest cost | 755 | 840 | 888 |
Actuarial (gain) loss | (1,951) | 721 | (255) |
Benefits paid | (1,219) | (1,014) | (1,086) |
Benefit obligation at end of year | 21,105 | 23,492 | 22,916 |
CHANGE IN PLAN ASSETS [Roll Forward] | |||
Fair value of plan assets-beginning of year | 19,055 | 17,548 | 17,792 |
Actual return on plan assets | (1,000) | 2,521 | 842 |
Benefits paid | (1,220) | (1,014) | (1,086) |
Fair value of plan assets-end of year | 16,835 | 19,055 | 17,548 |
BENEFIT OBLIGATION IN EXCESS OF FAIR VALUE FUNDED STATUS: | $ (4,270) | $ (4,437) | $ (5,368) |
PENSION PLAN (Details)
PENSION PLAN (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amounts recognized in the consolidated balance sheets [Abstract] | ||||
Noncurrent liabilities | $ (4,270) | $ (4,437) | $ (5,368) | |
Amounts recognized in accumulated other comprehensive loss [Abstract] | ||||
Accumulated loss | (6,428) | (6,876) | (8,467) | |
Deferred income taxes | 2,366 | 2,366 | 2,366 | |
Accumulated other comprehensive loss | (4,062) | (4,510) | (6,101) | |
Accumulated benefit obligation | 21,100 | 23,500 | ||
COMPONENTS OF NET PERIODIC BENEFIT COST [Abstract] | ||||
Service cost | 28 | 29 | 28 | |
Interest cost | 755 | 840 | 888 | |
Expected return on plan assets | (1,104) | (1,058) | (1,118) | |
Recognized net actuarial loss | 601 | 850 | 991 | |
Net periodic benefit cost | 280 | 661 | 789 | |
Amortization of estimated net loss, transition obligation and prior service cost from accumulated other comprehensive income into net periodic benefit cost | 600 | |||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | $ 16,835 | $ 19,055 | $ 17,548 | $ 17,792 |
Fair value of total plan assets by major asset category | 100.00% | 100.00% | ||
Weighted-average assumptions used to determine benefit obligations [Abstract] | ||||
Discount rate | 4.01% | 3.36% | 3.81% | |
Rate of compensation increase | 2.50% | 2.50% | 2.50% | |
Weighted-average assumptions used to determine net periodic pension cost [Abstract] | ||||
Pension contributions | $ 0 | $ 0 | ||
Expected benefit payments for the plan [Abstract] | ||||
Maximum contribution by employee specified as percentage of compensation | 25.00% | |||
Additional contribution by employer | 30.00% | |||
Maximum percentage of compensation contributed by employer as matching contribution | 6.00% | |||
Compensation expense for the 401(k) plan | $ 100 | 100 | $ 700 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | 16,835 | 19,055 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Equity Securities [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | $ 5,428 | $ 6,856 | ||
Fair value of total plan assets by major asset category | 32.00% | 36.00% | ||
Equity Securities [Member] | Minimum [Member] | ||||
Weighted-average assumptions used to determine net periodic pension cost [Abstract] | ||||
Target plan asset allocations | 30.00% | |||
Equity Securities [Member] | Maximum [Member] | ||||
Weighted-average assumptions used to determine net periodic pension cost [Abstract] | ||||
Target plan asset allocations | 70.00% | |||
Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | $ 5,428 | $ 6,856 | ||
Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Fixed Income [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | $ 5,852 | $ 6,818 | ||
Fair value of total plan assets by major asset category | 35.00% | 36.00% | ||
Fixed Income [Member] | Minimum [Member] | ||||
Weighted-average assumptions used to determine net periodic pension cost [Abstract] | ||||
Target plan asset allocations | 20.00% | |||
Fixed Income [Member] | Maximum [Member] | ||||
Weighted-average assumptions used to determine net periodic pension cost [Abstract] | ||||
Target plan asset allocations | 60.00% | |||
Fixed Income [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | $ 5,852 | $ 6,818 | ||
Fixed Income [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Fixed Income [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
International Equities [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | $ 3,734 | $ 3,490 | ||
Fair value of total plan assets by major asset category | 22.00% | 18.00% | ||
International Equities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | $ 3,734 | $ 3,490 | ||
International Equities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
International Equities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Real Estate [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | $ 795 | $ 1,133 | ||
Fair value of total plan assets by major asset category | 5.00% | 6.00% | ||
Real Estate [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | $ 795 | $ 1,133 | ||
Real Estate [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Real Estate [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Cash and Equivalents [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | $ 1,026 | $ 758 | ||
Fair value of total plan assets by major asset category | 6.00% | 4.00% | ||
Cash and Equivalents [Member] | Minimum [Member] | ||||
Weighted-average assumptions used to determine net periodic pension cost [Abstract] | ||||
Target plan asset allocations | 0.00% | |||
Cash and Equivalents [Member] | Maximum [Member] | ||||
Weighted-average assumptions used to determine net periodic pension cost [Abstract] | ||||
Target plan asset allocations | 10.00% | |||
Cash and Equivalents [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | $ 1,026 | $ 758 | ||
Cash and Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Cash and Equivalents [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Plan assets using the fair value hierarchy [Abstract] | ||||
Fair value of plan assets | $ 0 | $ 0 | ||
Pension Plan [Member] | ||||
Weighted-average assumptions used to determine net periodic pension cost [Abstract] | ||||
Discount rate | 4.01% | 3.36% | 3.81% | |
Rate of compensation increase | 2.50% | 2.50% | 2.50% | |
Long-term rate of return | 6.25% | 6.00% | 6.25% | |
Expected benefit payments for the plan [Abstract] | ||||
2019 | $ 1,335 | |||
2020 | 1,347 | |||
2021 | 1,350 | |||
2022 | 1,368 | |||
2023 | 1,382 | |||
Years 2024-2028 | $ 6,859 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current [Abstract] | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 200 | 150 | 200 |
Total | 200 | 150 | 200 |
Deferred [Abstract] | |||
Federal | 0 | (424) | 0 |
State | 0 | 0 | 0 |
Total | 0 | (424) | 0 |
Total (benefit) provision | 200 | (274) | 200 |
Effective income tax rate reconciliation, amount [Abstract] | |||
Loss before taxes | (6,345) | (11,758) | (28,104) |
Expected tax benefit | (1,332) | (4,115) | (9,836) |
State tax benefit (net of federal) | 200 | 150 | 200 |
Valuation allowance | 1,230 | (13,920) | 9,726 |
Federal tax reform - deferred rate change | 49 | 17,671 | 0 |
Other | 53 | (60) | 110 |
Total (benefit) provision | $ 200 | $ (274) | $ 200 |
Effective income tax rate reconciliation, percent [Abstract] | |||
Federal corporate tax rate | 21.00% | 35.00% | 35.00% |
State tax benefit (net of federal) | (3.20%) | (1.30%) | (0.70%) |
Valuation allowance | (19.40%) | 118.40% | (34.60%) |
Federal tax reform - deferred rate change | (0.80%) | (150.30%) | 0.00% |
Other | (0.80%) | 0.50% | (0.40%) |
Total | (3.20%) | 2.30% | (0.70%) |
Gross noncurrent deferred tax assets (liabilities) [Abstract] | |||
Allowance for bad debts | $ 4,828 | $ 3,792 | |
Accrued rent | 1,833 | 1,723 | |
Accrued benefits | 0 | 105 | |
Stock-based compensation | 18 | 387 | |
163J interest limitation | 19 | 0 | |
Depreciation | 16,259 | 15,520 | |
Goodwill | (98) | 594 | |
Other intangibles | 211 | 291 | |
Pension plan liabilities | 1,163 | 1,221 | |
Net operating loss carryforwards | 17,927 | 17,367 | |
AMT credit | 424 | 424 | |
Gross noncurrent deferred tax assets, net | 42,584 | 41,424 | |
Less valuation allowance | (42,160) | (41,000) | |
Noncurrent deferred tax assets, net | 424 | 424 | |
Net operating loss carryforwards | 60,300 | $ 52,700 | |
Net operating losses | 7,600 | ||
Tax cuts and jobs act of 2017, incomplete accounting, change in tax rate, deferred tax liability, provisional income tax benefit | $ 400 | ||
Net operating loss carryforwards, period of ownership change | 3 years | ||
Net operating loss carryforwards, minimum percentage of ownership change | 50.00% |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Amount [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | $ 17,571 | $ 14,563 |
Restricted cash | 28,375 | 39,991 |
Prepaid expenses and other current assets | 2,461 | 2,352 |
Financial Liabilities [Abstract] | ||
Accrued expenses | 10,605 | 11,771 |
Other short term liabilities | 2,324 | 558 |
Credit facility | 48,769 | 52,593 |
Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 17,571 | 14,563 |
Restricted cash | 28,375 | 39,991 |
Prepaid expenses and other current assets | 2,461 | 2,352 |
Financial Liabilities [Abstract] | ||
Accrued expenses | 10,605 | 11,771 |
Other short term liabilities | 2,324 | 558 |
Credit facility | 43,096 | 47,200 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 17,571 | 14,563 |
Restricted cash | 28,375 | 39,991 |
Prepaid expenses and other current assets | 0 | 0 |
Financial Liabilities [Abstract] | ||
Accrued expenses | 0 | 0 |
Other short term liabilities | 0 | 0 |
Credit facility | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Prepaid expenses and other current assets | 2,461 | 2,352 |
Financial Liabilities [Abstract] | ||
Accrued expenses | 10,605 | 11,771 |
Other short term liabilities | 2,324 | 558 |
Credit facility | 43,096 | 47,200 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Prepaid expenses and other current assets | 0 | 0 |
Financial Liabilities [Abstract] | ||
Accrued expenses | 0 | 0 |
Other short term liabilities | 0 | 0 |
Credit facility | $ 0 | $ 0 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)SegmentLocation | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
SEGMENT REPORTING [Abstract] | |||||||||||
Number of locations closed | Location | 10 | ||||||||||
Number of reportable segments | Segment | 3 | ||||||||||
Summary financial information by reporting segment [Abstract] | |||||||||||
Revenue | $ 70,113 | $ 70,078 | $ 61,120 | $ 61,889 | $ 67,401 | $ 67,308 | $ 61,865 | $ 65,279 | $ 263,200 | $ 261,853 | $ 285,559 |
Percentage of Total Revenue | 100.00% | 100.00% | 100.00% | ||||||||
Operating (Loss) Income | $ (3,954) | $ (4,716) | $ (28,914) | ||||||||
Assets | 146,038 | 155,213 | 146,038 | 155,213 | |||||||
Transportation and Skilled Trades [Member] | |||||||||||
Summary financial information by reporting segment [Abstract] | |||||||||||
Revenue | 185,263 | 181,328 | 182,277 | ||||||||
Healthcare and Other Professions Business Segment [Member] | |||||||||||
Summary financial information by reporting segment [Abstract] | |||||||||||
Revenue | 72,135 | 63,641 | 62,870 | ||||||||
Transitional [Member] | |||||||||||
Summary financial information by reporting segment [Abstract] | |||||||||||
Revenue | 5,802 | 16,884 | 40,412 | ||||||||
Reportable Segments [Member] | Transportation and Skilled Trades [Member] | |||||||||||
Summary financial information by reporting segment [Abstract] | |||||||||||
Revenue | $ 185,263 | $ 181,328 | $ 182,276 | ||||||||
Percentage of Total Revenue | 70.40% | 69.20% | 63.80% | ||||||||
Operating (Loss) Income | $ 17,661 | $ 17,795 | $ 21,578 | ||||||||
Assets | 92,070 | 81,751 | 92,070 | 81,751 | |||||||
Reportable Segments [Member] | Healthcare and Other Professions Business Segment [Member] | |||||||||||
Summary financial information by reporting segment [Abstract] | |||||||||||
Revenue | $ 72,135 | $ 63,641 | $ 62,870 | ||||||||
Percentage of Total Revenue | 27.40% | 24.30% | 22.00% | ||||||||
Operating (Loss) Income | $ 6,469 | $ 3,937 | $ (9,392) | ||||||||
Assets | 14,078 | 8,297 | 14,078 | 8,297 | |||||||
Reportable Segments [Member] | Transitional [Member] | |||||||||||
Summary financial information by reporting segment [Abstract] | |||||||||||
Revenue | $ 5,802 | $ 16,884 | $ 40,413 | ||||||||
Percentage of Total Revenue | 2.30% | 6.40% | 14.20% | ||||||||
Operating (Loss) Income | $ (5,994) | $ (6,926) | $ (16,995) | ||||||||
Assets | 527 | 4,812 | 527 | 4,812 | |||||||
Corporate [Member] | |||||||||||
Summary financial information by reporting segment [Abstract] | |||||||||||
Revenue | $ 0 | $ 0 | $ 0 | ||||||||
Percentage of Total Revenue | 0.00% | 0.00% | 0.00% | ||||||||
Operating (Loss) Income | $ (22,090) | $ (19,522) | $ (24,105) | ||||||||
Assets | $ 39,363 | $ 60,353 | $ 39,363 | $ 60,353 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Campus | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Operating Leases [Abstract] | |||
2019 | $ 16,939 | ||
2020 | 14,183 | ||
2021 | 10,708 | ||
2022 | 8,180 | ||
2023 | 5,811 | ||
Thereafter | 17,610 | ||
Operating Leases, Total | 73,431 | ||
Lease rent expense | 17,800 | $ 17,400 | $ 20,700 |
Outstanding net loan commitment | $ 46,200 | ||
Number of campuses given access to vendor | Campus | 12 | ||
Future employment contract commitments | $ 3,100 | ||
Surety bonds | $ 12,700 |
RELATED PARTY (Details)
RELATED PARTY (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
RELATED PARTY [Abstract] | ||
Purchases from related party | $ 1.8 | $ 2.4 |
UNAUDITED QUARTERLY FINANCIAL_3
UNAUDITED QUARTERLY FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
UNAUDITED QUARTERLY FINANCIAL INFORMATION [Abstract] | |||||||||||
Revenue | $ 70,113 | $ 70,078 | $ 61,120 | $ 61,889 | $ 67,401 | $ 67,308 | $ 61,865 | $ 65,279 | $ 263,200 | $ 261,853 | $ 285,559 |
Net (loss) income | $ 5,033 | $ (600) | $ (4,104) | $ (6,874) | $ 7,707 | $ (1,490) | $ (6,771) | $ (10,929) | $ (6,545) | $ (11,484) | $ (28,304) |
Basic [Abstract] | |||||||||||
Net (loss) earnings per share (in dollars per share) | $ 0.21 | $ (0.02) | $ (0.17) | $ (0.28) | $ 0.32 | $ (0.06) | $ (0.28) | $ (0.46) | $ (0.27) | $ (0.48) | $ (1.21) |
Diluted [Abstract] | |||||||||||
Net (loss) earnings per share (in dollars per share) | $ 0.20 | $ (0.02) | $ (0.17) | $ (0.28) | $ 0.31 | $ (0.06) | $ (0.28) | $ (0.46) | $ (0.27) | $ (0.48) | $ (1.21) |
Weighted average number of common shares outstanding [Abstract] | |||||||||||
Basic (in shares) | 24,533,000 | 24,533,000 | 24,486,000 | 24,138,000 | 24,025,000 | 24,024,000 | 23,962,000 | 23,609,000 | 24,423,479 | 23,906,395 | 23,453,427 |
Diluted (in shares) | 24,562,000 | 24,533,000 | 24,486,000 | 24,138,000 | 24,590,000 | 24,024,000 | 23,962,000 | 23,609,000 | 24,423,479 | 23,906,395 | 23,453,427 |
Schedule II-Valuation and Qua_2
Schedule II-Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in Valuation Allowances and Reserves [Abstract] | |||
Balance at Beginning of Period | $ 13,784 | $ 14,794 | $ 14,074 |
Charged to Expense | 17,705 | 13,720 | 14,592 |
Accounts Written-off | (14,496) | (14,730) | (13,872) |
Balance at End of Period | $ 16,993 | $ 13,784 | $ 14,794 |