Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Jan. 03, 2014 | Aug. 02, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'LEARNING TREE INTERNATIONAL, INC. | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--09-26 | ' |
Entity Common Stock, Shares Outstanding | ' | 13,222,539 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001002037 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 3-Jan-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Jan. 03, 2014 | Sep. 27, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $27,815 | $26,583 |
Trade accounts receivable, net | 11,669 | 14,057 |
Income tax receivable | 738 | 921 |
Prepaid expenses | 3,355 | 3,383 |
Other current assets | 1,978 | 1,848 |
Total current assets | 45,555 | 46,792 |
Equipment, Property and Leasehold Improvements: | ' | ' |
Education and office equipment | 38,961 | 38,586 |
Transportation equipment | 201 | 200 |
Property and leasehold improvements | 28,032 | 28,002 |
67,194 | 66,788 | |
Less: accumulated depreciation and amortization | -51,515 | -50,090 |
15,679 | 16,698 | |
Restricted interest-bearing investments | 4,223 | 4,175 |
Deferred income taxes | 470 | 466 |
Other assets | 839 | 831 |
Total assets | 66,766 | 68,962 |
Current Liabilities: | ' | ' |
Trade accounts payable | 6,318 | 7,309 |
Deferred revenues | 28,287 | 29,780 |
Accrued payroll, benefits and related taxes | 3,933 | 4,167 |
Other accrued liabilities | 1,942 | 2,178 |
Income taxes payable | 154 | 0 |
Current portion of deferred facilities rent and other | 1,605 | 1,663 |
Total current liabilities | 42,239 | 45,097 |
Asset retirement obligations | 2,052 | 2,004 |
Deferred income taxes | 280 | 284 |
Deferred facilities rent and other | 4,450 | 4,760 |
Noncurrent tax liabilities | 1,292 | 1,156 |
Total liabilities | 50,313 | 53,301 |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, $.0001 par value; 1,000,000 shares authorized; 0 shares issued and outstanding | 0 | 0 |
Common stock, $.0001 par value; 75,000,000 shares authorized; 13,222,539 and 13,217,484 issued and outstanding, respectively | 1 | 1 |
Additional paid-in capital | 5,867 | 5,825 |
Accumulated other comprehensive loss | -116 | -139 |
Retained earnings | 10,701 | 9,974 |
Total stockholders' equity | 16,453 | 15,661 |
Total liabilities and stockholders' equity | $66,766 | $68,962 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Jan. 03, 2014 | Sep. 27, 2013 |
Preferred stock par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in Shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in Shares) | 0 | 0 |
Preferred stock, shares outstanding (in Shares) | 0 | 0 |
Common stock par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in Shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in Shares) | 13,222,539 | 13,217,484 |
Common stock, shares outstanding (in Shares) | 13,222,539 | 13,217,484 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jan. 03, 2014 | Dec. 28, 2012 |
Revenues | $32,022 | $33,290 |
Cost of revenues | 17,348 | 16,421 |
Gross profit | 14,674 | 16,869 |
Operating expenses: | ' | ' |
Course development | 1,937 | 2,101 |
Sales and marketing | 6,156 | 7,805 |
General and administrative | 5,633 | 8,327 |
13,726 | 18,233 | |
Income (loss) from operations | 948 | -1,364 |
Other income (expense): | ' | ' |
Interest income, net | 9 | 13 |
Foreign exchange losses | -39 | -54 |
Other, net | -6 | 22 |
-36 | -19 | |
Income (loss) before provision for income taxes | 912 | -1,383 |
Provision for income taxes | 183 | 33 |
Net income | 729 | -1,416 |
Foreign currency translation adjustments | 23 | -80 |
Comprehensive income (loss) | $752 | ($1,496) |
Earnings per share: | ' | ' |
Income (loss) per common share - basic (in Dollars per share) | $0.06 | ($0.11) |
Income (loss) per common share - diluted (in Dollars per share) | $0.06 | ($0.11) |
Weighted average shares outstanding: | ' | ' |
Weighted average shares - basic (in Shares) | 13,219 | 13,189 |
Weighted average shares - diluted (in Shares) | 13,227 | 13,189 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 03, 2014 | Dec. 28, 2012 |
Cash flows - operating activities | ' | ' |
Net Income (loss) | $729 | ($1,416) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 1,415 | 1,793 |
Share based compensation | 42 | 70 |
Deferred income taxes | 182 | 306 |
(Recovery of) provision for doubtful accounts | -10 | 30 |
Accretion on asset retirement obligations | 24 | 35 |
Loss on disposal of equipment and leasehold improvements | 0 | 55 |
Unrealized foreign exchange (gains) losses | -21 | 25 |
Gain on lease termination | 0 | -132 |
Changes in operating assets and liabilities: | ' | ' |
Trade accounts receivable | 2,379 | 986 |
Prepaid expenses and other assets | -93 | 5,173 |
Income tax receivable / payable | 312 | -490 |
Trade accounts payable | -995 | -735 |
Deferred revenues | -1,516 | -2,045 |
Deferred facilities rent and other charges | -676 | -1,564 |
Asset retirement obligation | 0 | -3,015 |
Other accrued liabilities | -145 | -189 |
Net cash provided by (used in) operating activities | 1,627 | -1,113 |
Cash flows - investing activities: | ' | ' |
Sales of available for sale securities | 0 | 5,104 |
Purchases of equipment, property and leasehold improvements | -352 | -521 |
Proceeds from sale of equipment, property and leasehold improvements | 0 | 10 |
Net cash (used in) provided by investing activities | -352 | 4,593 |
Cash flows - financing activities: | ' | ' |
Shares surrendered in lieu of tax withholding | -2 | -10 |
Dividend | 0 | -26 |
Net cash used in financing activities | -2 | -36 |
Effects of exchange rate changes on cash and cash equivalents | -41 | -123 |
Net increase in cash and cash equivalents | 1,232 | 3,321 |
Cash and cash equivalents at beginning of period | 26,583 | 25,784 |
Cash and cash equivalents at end of period | 27,815 | 29,105 |
Supplemental disclosures: | ' | ' |
New asset retirement obligation | $0 | $1,022 |
Note_1_Basis_of_Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Jan. 03, 2014 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
NOTE 1—BASIS OF PRESENTATION | |
The accompanying unaudited interim condensed consolidated financial statements of Learning Tree International, Inc. and our subsidiaries (collectively, “Learning Tree,” “we,” “our” or “us”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and, therefore, omit or condense certain note disclosures and other information required by accounting principles generally accepted in the United States of America for complete financial statements. These financial statements should therefore be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended September 27, 2013. | |
We use the 52/53-week fiscal year method to better align our external financial reporting with the manner in which we operate our business. Under this method, each fiscal quarter ends on the Friday closest to the end of the calendar quarter. Accordingly, our first quarter of the current fiscal year ended on January 3, 2014 and encompassed 14 weeks, while our first quarter of the prior fiscal year ended on December 28, 2012 and encompassed 13 weeks. | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, that are only of a normal recurring nature, considered necessary to present fairly our financial position as of January 3, 2014, and our results of operations for the three months ended January 3, 2014 and December 28, 2012, and our cash flows for the three months ended January 3, 2014 and December 28, 2012. Certain items in the condensed consolidated financial statements have been reclassified to conform to the current presentation. |
Note_2_StockBased_Compensation
Note 2 - Stock-Based Compensation | 3 Months Ended |
Jan. 03, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' |
NOTE 2—STOCK-BASED COMPENSATION | |
Stock-based compensation expense was less than $0.1 million for the three months ended January 3, 2014, related to grants of employee stock options and restricted stock units and was charged in a manner consistent with the related employee salary costs. This compares to stock-based compensation expense of $0.1 million for grants of restricted stock units for the three months ended December 28, 2012. |
Note_3_Asset_Retirement_Obliga
Note 3 - Asset Retirement Obligations | 3 Months Ended | ||||||||
Jan. 03, 2014 | |||||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | ||||||||
Asset Retirement Obligation Disclosure [Text Block] | ' | ||||||||
NOTE 3—ASSET RETIREMENT OBLIGATIONS | |||||||||
The following table presents the activity for the asset retirement obligations (“ARO”) liabilities, which are primarily related to the restoration of classroom facilities in our Learning Tree Education Centers: | |||||||||
Three months ended | Year ended | ||||||||
3-Jan-14 | 27-Sep-13 | ||||||||
ARO balance, beginning of period | $ | 2,004 | $ | 3,907 | |||||
Liabilities incurred | 0 | 1,022 | |||||||
Accretion expense | 24 | 99 | |||||||
Liabilities satisfied | 0 | (29 | ) | ||||||
Settlement of ARO liability | 0 | (2,929 | ) | ||||||
Foreign currency translation | 24 | (66 | ) | ||||||
ARO balance, end of period | $ | 2,052 | $ | 2,004 | |||||
Note_4_Earnings_Loss_Per_Share
Note 4 - Earnings (Loss) Per Share | 3 Months Ended | ||||||||
Jan. 03, 2014 | |||||||||
Earnings per share: [Abstract] | ' | ||||||||
Earnings Per Share [Text Block] | ' | ||||||||
NOTE 4—EARNINGS (LOSS) PER SHARE | |||||||||
Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding (which excludes unvested shares of our common stock granted under our 2007 Equity Incentive Plan) during the reporting period. Diluted earnings (loss) per share is computed similarly to basic earnings (loss) per share except that the weighted average shares outstanding are increased to include common stock equivalents, to the extent their effect is dilutive. Approximately 200,000 stock options were excluded from the computations of diluted earnings per share for the three months ended January 3, 2014, because their effect would have been anti-dilutive. Approximately 111,800 restricted stock units were excluded from the computations of diluted earnings (loss) per share for the three months ended December 28, 2012, because their effect would have been anti-dilutive. The computations for basic and diluted earnings per share are as follows: | |||||||||
Three months ended | |||||||||
January 3, | December 28, | ||||||||
2014 | 2012 | ||||||||
Numerator: | |||||||||
Net income (loss) | $ | 729 | $ | (1,416 | ) | ||||
Denominator: | |||||||||
Weighted average shares outstanding | |||||||||
Basic | 13,219 | 13,189 | |||||||
Effect of dilutive securities | 8 | 0 | |||||||
Diluted | $ | 13,227 | $ | 13,189 | |||||
Income (loss) per common share - basic | $ | 0.06 | $ | (0.11 | ) | ||||
Income (loss) per common share - diluted | $ | 0.06 | $ | (0.11 | ) | ||||
Note_5_Income_Taxes
Note 5 - Income Taxes | 3 Months Ended |
Jan. 03, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
NOTE 5—INCOME TAXES | |
Our income tax provision in our first quarter of fiscal year 2014 was $0.2 million compared to less than $0.1 million in our first quarter of fiscal year 2013. Our first quarter 2014 provision of $0.2 million is primarily composed of income tax expense for our foreign subsidiaries. The Company established a valuation allowance against deferred tax assets in the U.S. in the third quarter of fiscal year 2012 and has continued to maintain a full valuation allowance in the U.S. through fiscal years 2013 and 2014. |
Note_6_Commitments_And_Conting
Note 6 - Commitments And Contingencies | 3 Months Ended |
Jan. 03, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
NOTE 6—COMMITMENTS AND CONTINGENCIES | |
Contingencies | |
Currently, and from time to time, we are involved in litigation incidental to the conduct of our business. We are not a party to any lawsuit or legal proceeding that, in the opinion of management, is likely to have a material adverse effect on our consolidated financial position or results of operations. |
Note_7_Segment_Reporting
Note 7 - Segment Reporting | 3 Months Ended | ||||||||
Jan. 03, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||
NOTE 7—SEGMENT REPORTING | |||||||||
Our worldwide operations involve the design and delivery of instructor-led classroom training courses and related services to multinational companies and government entities. The training and education we offer is presented in an identical manner in every country in which we operate. Our instructors present our courses in a virtually identical fashion worldwide, regardless of whether presented in leased classroom space or external facilities, the content of the class being taught or the location or method of distribution. No one commercial customer or government agency accounted for 10% or more of our revenues in the first three months of fiscal year 2014 and the first three months of fiscal year 2013. | |||||||||
We conduct and manage our business globally and have reportable segments that operate in six countries: the United States, Canada, the United Kingdom, France, Sweden and Japan. During fiscal year 2013, we restructured the management of our U.S. and Canadian operations into one North American operation. With this change, we began reviewing operations in the U.S. and Canada on a combined basis. | |||||||||
Summarized financial information by country for the first three months of fiscal year 2014 and 2013 is as follows: | |||||||||
Three months ended | |||||||||
January 3, | December 28, | ||||||||
2014 | 2012 | ||||||||
Revenues: | |||||||||
United States | $ | 14,075 | $ | 14,325 | |||||
Canada | 3,412 | 3,854 | |||||||
North America | 17,487 | 18,179 | |||||||
United Kingdom | 7,889 | 8,180 | |||||||
France | 3,912 | 4,021 | |||||||
Sweden | 2,159 | 2,355 | |||||||
Japan | 575 | 555 | |||||||
Total | $ | 32,022 | $ | 33,290 | |||||
Gross profit: | |||||||||
United States | $ | 5,045 | $ | 6,171 | |||||
Canada | 2,067 | 2,337 | |||||||
North America | 7,112 | 8,508 | |||||||
United Kingdom | 3,567 | 4,030 | |||||||
France | 2,199 | 2,348 | |||||||
Sweden | 1,403 | 1,603 | |||||||
Japan | 393 | 380 | |||||||
Total | $ | 14,674 | $ | 16,869 | |||||
Total assets: | |||||||||
United States | $ | 28,224 | $ | 39,330 | |||||
Canada | 4,009 | 4,461 | |||||||
North America | 32,233 | 43,791 | |||||||
United Kingdom | 21,134 | 20,327 | |||||||
France | 6,152 | 7,425 | |||||||
Sweden | 5,711 | 6,096 | |||||||
Japan | 1,536 | 1,846 | |||||||
Total | $ | 66,766 | $ | 79,485 | |||||
Note_9_Stockholders_Equity
Note 9 - Stockholders' Equity | 3 Months Ended |
Jan. 03, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
NOTE 9—STOCKHOLDERS’ EQUITY | |
During the three months ended January 3, 2014 and December 28, 2012 we did not repurchase any shares of our common stock. |
Note_10_Fair_Value_Measurement
Note 10 - Fair Value Measurements | 3 Months Ended |
Jan. 03, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Disclosures [Text Block] | ' |
NOTE 10—FAIR VALUE MEASUREMENTS | |
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal market for the asset or liability, or in the absence of a principal market, the most advantageous market for the asset or liability. The fair value is measured on assumptions that market participants would use, including assumptions about non performance risk and credit risk. | |
ASC 820 establishes a fair value hierarchy for valuation inputs and prioritizes them based on the extent to which the inputs are observable in the marketplace. Categorization is based on the lowest level of input that is available and significant to the measurement. These levels are: | |
Level 1—Quoted prices in active markets for identical assets and liabilities. | |
Level 2—Observable inputs other than quoted prices in active markets, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market corroborated inputs. | |
Level 3—Unobservable inputs that reflect management’s assumptions about the estimates and risks that market participants would use in pricing the asset or liability. | |
Non Financial Liabilities Measured at Fair Value on a Nonrecurring Basis | |
We measure our ARO liabilities at fair value on a nonrecurring basis, when we believe there has been an indication the fair value has changed. We did not adjust the values of those liabilities during the three months ended January 3, 2014 and December 28, 2012. |
Note_11_Deferred_Facilities_Re
Note 11 - Deferred Facilities Rent And Other | 3 Months Ended | ||||||||
Jan. 03, 2014 | |||||||||
Deferred Facilities Rent And Other [Abstract] | ' | ||||||||
Deferred Facilities Rent And Other [Text Block] | ' | ||||||||
NOTE 11—DEFERRED FACILITIES RENT AND OTHER | |||||||||
Deferred Facilities Rent and Other | |||||||||
The following tables show details of the following line items in our consolidated balance sheets. | |||||||||
Current Portion of Deferred Facilities Rent and Other | |||||||||
January 3, | September 27, | ||||||||
2014 | 2013 | ||||||||
Deferred rent | $ | 987 | $ | 965 | |||||
LA lease liability | 581 | 634 | |||||||
Sublease loss accruals | 37 | 64 | |||||||
$ | 1,605 | $ | 1,663 | ||||||
Deferred Facilities Rent and Other | |||||||||
January 3, | September 27, | ||||||||
2014 | 2013 | ||||||||
Deferred rent | $ | 4,147 | $ | 4,362 | |||||
LA lease liability | 303 | 398 | |||||||
$ | 4,450 | $ | 4,760 | ||||||
Note_12_Recent_Accounting_Pron
Note 12 - Recent Accounting Pronouncements | 3 Months Ended |
Jan. 03, 2014 | |
Disclosure Text Block [Abstract] | ' |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | ' |
NOTE 12—RECENT ACCOUNTING PRONOUNCEMENTS | |
There were no recent accounting pronouncements issued by the FASB (including the Emerging Issues Task Force), or the American Institute of Certified Public Accountants that would materially impact our condensed consolidated financial statements. |
Note_13_Restructing_Activity
Note 13 - Restructing Activity | 3 Months Ended | ||||||||
Jan. 03, 2014 | |||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||
Restructuring and Related Activities Disclosure [Text Block] | ' | ||||||||
NOTE 13—RESTRUCTURING ACTIVITY | |||||||||
In September 2012, we announced a worldwide reduction in force involving approximately 40 employees and our intention to close the Los Angeles, CA office facility, which closure was completed in the first quarter of fiscal 2013. During the three months ended December 28, 2012 we incurred $1.3 million of expense relating to this reduction in force and closure of the Los Angeles office. During the three months ended January 3, 2014, we did not incur any additional expense. | |||||||||
Three Months Ended | |||||||||
January 3, | December 28, | ||||||||
2014 | 2012 | ||||||||
Worldwide reduction in force | $ | 0 | $ | 262 | |||||
Depreciation of leasehold improvements | 0 | 371 | |||||||
Contractual lease payments net of estimated sublease receipts | 0 | 740 | |||||||
Total: | $ | 0 | $ | 1,373 | |||||
Note_14_United_Kingdom_Lease_T
Note 14 - United Kingdom Lease Termination | 3 Months Ended |
Jan. 03, 2014 | |
Leases [Abstract] | ' |
Leases of Lessee Disclosure [Text Block] | ' |
NOTE 14—UNITED KINGDOM LEASE TERMINATION | |
On November 14, 2012, we, together with our United Kingdom subsidiary, Learning Tree International Limited, and Laxton Properties Limited (the “Landlord”) surrendered our lease dated March 19, 1999 for Learning Tree International Limited’s Education Center facility in London (“Euston House”), which had been due to run through January, 2019. Learning Tree International Limited, our UK subsidiary, had been subleasing certain floors of the Euston House location to third-party subtenants. In conjunction with the surrender, the subleases reverted to the Landlord and Learning Tree International Limited, our UK subsidiary, entered into four new leases with the Landlord for only the space we needed to run our operations in London. We are party to each of the four new leases as guarantor for our subsidiary’s obligations. The four leases each became effective as of November 14, 2012 and cover the total rentable area of Euston House’s (1) ground and basement floors; (2) first floor; (3) second floor; and (4) part of the sixth floor. The first three leases run through November 13, 2022 and our fourth lease for part of the sixth floor runs through August 23, 2014. The aggregate annual minimum rent of the leases is £1.4 million ($2.3 million USD), compared to the original gross minimum rent of £2.8 million ($4.6 million USD) offset by £1.5 million ($2.4 million USD) in sublease rents for a net of £1.3 million ($2.2 million USD) under the prior lease. In connection with the early surrender of the original lease, we paid the landlord a £2.0 million ($3.2 million USD) surrender payment. As a result of the surrender of the original lease, we were released from our ARO, estimated at £1.9 million ($3.0 million USD), to restore the leasehold space to original condition, and the £5.0 million ($8.1 million USD) deposit that was being held in escrow as security against our default on the rental payments was released to Learning Tree International Limited by the Landlord. Under the terms of the new leases deposits totaling £1.7 million ($2.7 million USD) have been deposited with the Landlord as security against our default on the payments under the leases. The impact to net income (loss) for the first quarter of fiscal year 2013 taking into account the surrender payment, the release of the ARO, and reversal of deferred rents was less than £0.1 million ($0.1 million USD). |
Note_15_Subsequent_Events
Note 15 - Subsequent Events | 3 Months Ended |
Jan. 03, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE 15—SUBSEQUENT EVENTS | |
We have evaluated all events subsequent to the balance sheet date of January 3, 2014 through the date these condensed consolidated financial statements were filed with the SEC, and have determined that there are no subsequent events that require disclosure. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Jan. 03, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting, Policy [Policy Text Block] | ' |
The accompanying unaudited interim condensed consolidated financial statements of Learning Tree International, Inc. and our subsidiaries (collectively, “Learning Tree,” “we,” “our” or “us”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and, therefore, omit or condense certain note disclosures and other information required by accounting principles generally accepted in the United States of America for complete financial statements. These financial statements should therefore be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended September 27, 2013. | |
We use the 52/53-week fiscal year method to better align our external financial reporting with the manner in which we operate our business. Under this method, each fiscal quarter ends on the Friday closest to the end of the calendar quarter. Accordingly, our first quarter of the current fiscal year ended on January 3, 2014 and encompassed 14 weeks, while our first quarter of the prior fiscal year ended on December 28, 2012 and encompassed 13 weeks. | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, that are only of a normal recurring nature, considered necessary to present fairly our financial position as of January 3, 2014, and our results of operations for the three months ended January 3, 2014 and December 28, 2012, and our cash flows for the three months ended January 3, 2014 and December 28, 2012. Certain items in the condensed consolidated financial statements have been reclassified to conform to the current presentation. | |
Fair Value Measurement, Policy [Policy Text Block] | ' |
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal market for the asset or liability, or in the absence of a principal market, the most advantageous market for the asset or liability. The fair value is measured on assumptions that market participants would use, including assumptions about non performance risk and credit risk. | |
ASC 820 establishes a fair value hierarchy for valuation inputs and prioritizes them based on the extent to which the inputs are observable in the marketplace. Categorization is based on the lowest level of input that is available and significant to the measurement. These levels are: | |
Level 1—Quoted prices in active markets for identical assets and liabilities. | |
Level 2—Observable inputs other than quoted prices in active markets, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market corroborated inputs. | |
Level 3—Unobservable inputs that reflect management’s assumptions about the estimates and risks that market participants would use in pricing the asset or liability. |
Note_3_Asset_Retirement_Obliga1
Note 3 - Asset Retirement Obligations (Tables) | 3 Months Ended | ||||||||
Jan. 03, 2014 | |||||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | ||||||||
Schedule of Change in Asset Retirement Obligation [Table Text Block] | ' | ||||||||
Three months ended | Year ended | ||||||||
3-Jan-14 | 27-Sep-13 | ||||||||
ARO balance, beginning of period | $ | 2,004 | $ | 3,907 | |||||
Liabilities incurred | 0 | 1,022 | |||||||
Accretion expense | 24 | 99 | |||||||
Liabilities satisfied | 0 | (29 | ) | ||||||
Settlement of ARO liability | 0 | (2,929 | ) | ||||||
Foreign currency translation | 24 | (66 | ) | ||||||
ARO balance, end of period | $ | 2,052 | $ | 2,004 |
Note_4_Earnings_Loss_Per_Share1
Note 4 - Earnings (Loss) Per Share (Tables) | 3 Months Ended | ||||||||
Jan. 03, 2014 | |||||||||
Earnings per share: [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||
Three months ended | |||||||||
January 3, | December 28, | ||||||||
2014 | 2012 | ||||||||
Numerator: | |||||||||
Net income (loss) | $ | 729 | $ | (1,416 | ) | ||||
Denominator: | |||||||||
Weighted average shares outstanding | |||||||||
Basic | 13,219 | 13,189 | |||||||
Effect of dilutive securities | 8 | 0 | |||||||
Diluted | $ | 13,227 | $ | 13,189 | |||||
Income (loss) per common share - basic | $ | 0.06 | $ | (0.11 | ) | ||||
Income (loss) per common share - diluted | $ | 0.06 | $ | (0.11 | ) |
Note_7_Segment_Reporting_Table
Note 7 - Segment Reporting (Tables) | 3 Months Ended | ||||||||
Jan. 03, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||
Three months ended | |||||||||
January 3, | December 28, | ||||||||
2014 | 2012 | ||||||||
Revenues: | |||||||||
United States | $ | 14,075 | $ | 14,325 | |||||
Canada | 3,412 | 3,854 | |||||||
North America | 17,487 | 18,179 | |||||||
United Kingdom | 7,889 | 8,180 | |||||||
France | 3,912 | 4,021 | |||||||
Sweden | 2,159 | 2,355 | |||||||
Japan | 575 | 555 | |||||||
Total | $ | 32,022 | $ | 33,290 | |||||
Gross profit: | |||||||||
United States | $ | 5,045 | $ | 6,171 | |||||
Canada | 2,067 | 2,337 | |||||||
North America | 7,112 | 8,508 | |||||||
United Kingdom | 3,567 | 4,030 | |||||||
France | 2,199 | 2,348 | |||||||
Sweden | 1,403 | 1,603 | |||||||
Japan | 393 | 380 | |||||||
Total | $ | 14,674 | $ | 16,869 | |||||
Total assets: | |||||||||
United States | $ | 28,224 | $ | 39,330 | |||||
Canada | 4,009 | 4,461 | |||||||
North America | 32,233 | 43,791 | |||||||
United Kingdom | 21,134 | 20,327 | |||||||
France | 6,152 | 7,425 | |||||||
Sweden | 5,711 | 6,096 | |||||||
Japan | 1,536 | 1,846 | |||||||
Total | $ | 66,766 | $ | 79,485 |
Note_11_Deferred_Facilities_Re1
Note 11 - Deferred Facilities Rent And Other (Tables) | 3 Months Ended | ||||||||
Jan. 03, 2014 | |||||||||
Deferred Facilities Rent And Other [Abstract] | ' | ||||||||
Schedule of Current Portion of Deferred Facilities Rent and Other [Table Text Block] | ' | ||||||||
January 3, | September 27, | ||||||||
2014 | 2013 | ||||||||
Deferred rent | $ | 987 | $ | 965 | |||||
LA lease liability | 581 | 634 | |||||||
Sublease loss accruals | 37 | 64 | |||||||
$ | 1,605 | $ | 1,663 | ||||||
Schedule of Long Term Portion of Deferred Facilities Rent and Other [Table Text Block] | ' | ||||||||
January 3, | September 27, | ||||||||
2014 | 2013 | ||||||||
Deferred rent | $ | 4,147 | $ | 4,362 | |||||
LA lease liability | 303 | 398 | |||||||
$ | 4,450 | $ | 4,760 |
Note_13_Restructing_Activity_T
Note 13 - Restructing Activity (Tables) | 3 Months Ended | ||||||||
Jan. 03, 2014 | |||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||
Restructuring and Related Costs [Table Text Block] | ' | ||||||||
Three Months Ended | |||||||||
January 3, | December 28, | ||||||||
2014 | 2012 | ||||||||
Worldwide reduction in force | $ | 0 | $ | 262 | |||||
Depreciation of leasehold improvements | 0 | 371 | |||||||
Contractual lease payments net of estimated sublease receipts | 0 | 740 | |||||||
Total: | $ | 0 | $ | 1,373 |
Note_2_StockBased_Compensation1
Note 2 - Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 03, 2014 | Dec. 28, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Allocated Share-based Compensation Expense | $0.10 | $0.10 |
Note_3_Asset_Retirement_Obliga2
Note 3 - Asset Retirement Obligations (Details) - Asset Retirement Obligations Liabilities Activity (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 03, 2014 | Dec. 28, 2012 | Sep. 27, 2013 |
Asset Retirement Obligations Liabilities Activity [Abstract] | ' | ' | ' |
ARO Balance | $2,004 | $3,907 | $3,907 |
Liabilities incurred | 0 | ' | 1,022 |
Accretion expense | 24 | 35 | 99 |
Liabilities satisfied | 0 | ' | -29 |
Settlement of ARO liability | 0 | ' | -2,929 |
Foreign currency translation | 24 | ' | -66 |
ARO Balance | $2,052 | ' | $2,004 |
Note_4_Earnings_Loss_Per_Share2
Note 4 - Earnings (Loss) Per Share (Details) | 3 Months Ended | |
Jan. 03, 2014 | Dec. 28, 2012 | |
Equity Option [Member] | Restricted Stock Units (RSUs) [Member] | |
Note 4 - Earnings (Loss) Per Share (Details) [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 200,000 | 111,800 |
Note_4_Earnings_Loss_Per_Share3
Note 4 - Earnings (Loss) Per Share (Details) - Basic and Diluted Earnings Per Share (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jan. 03, 2014 | Dec. 28, 2012 | Sep. 27, 2013 |
Numerator: | ' | ' | ' |
Net income (loss) (in Dollars) | $729 | ($1,416) | ($1,416) |
Denominator: | ' | ' | ' |
Basic | 13,219 | 13,189 | 13,189 |
Effect of dilutive securities | 8 | ' | 0 |
Diluted | 13,227 | 13,189 | 13,189 |
Income (loss) per common share - basic (in Dollars per share) | $0.06 | ($0.11) | ($0.11) |
Income (loss) per common share - diluted (in Dollars per share) | $0.06 | ($0.11) | ($0.11) |
Note_5_Income_Taxes_Details
Note 5 - Income Taxes (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 03, 2014 | Dec. 28, 2012 |
Note 5 - Income Taxes (Details) [Line Items] | ' | ' |
Income Tax Expense (Benefit) | $183 | $33 |
Maximum [Member] | ' | ' |
Note 5 - Income Taxes (Details) [Line Items] | ' | ' |
Income Tax Expense (Benefit) | ' | $100 |
Note_7_Segment_Reporting_Detai
Note 7 - Segment Reporting (Details) | 3 Months Ended |
Jan. 03, 2014 | |
Segment Reporting [Abstract] | ' |
Number of Customers More Than Ten Percent of Revenue | 1 |
Number of Reportable Segments | 1 |
Note_7_Segment_Reporting_Detai1
Note 7 - Segment Reporting (Details) - Financial Information by Reportable Segment (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2014 | Dec. 28, 2012 | Sep. 27, 2013 |
Revenues: | ' | ' | ' |
Revenues | $32,022 | $33,290 | ' |
Gross profit: | ' | ' | ' |
Gross profit | 14,674 | 16,869 | ' |
Total assets: | ' | ' | ' |
Total assets | 66,766 | 79,485 | 68,962 |
UNITED STATES | ' | ' | ' |
Revenues: | ' | ' | ' |
Revenues | 14,075 | 14,325 | ' |
Gross profit: | ' | ' | ' |
Gross profit | 5,045 | 6,171 | ' |
Total assets: | ' | ' | ' |
Total assets | 28,224 | 39,330 | ' |
CANADA | ' | ' | ' |
Revenues: | ' | ' | ' |
Revenues | 3,412 | 3,854 | ' |
Gross profit: | ' | ' | ' |
Gross profit | 2,067 | 2,337 | ' |
Total assets: | ' | ' | ' |
Total assets | 4,009 | 4,461 | ' |
North America [Member] | ' | ' | ' |
Revenues: | ' | ' | ' |
Revenues | 17,487 | 18,179 | ' |
Gross profit: | ' | ' | ' |
Gross profit | 7,112 | 8,508 | ' |
Total assets: | ' | ' | ' |
Total assets | 32,233 | 43,791 | ' |
UNITED KINGDOM | ' | ' | ' |
Revenues: | ' | ' | ' |
Revenues | 7,889 | 8,180 | ' |
Gross profit: | ' | ' | ' |
Gross profit | 3,567 | 4,030 | ' |
Total assets: | ' | ' | ' |
Total assets | 21,134 | 20,327 | ' |
FRANCE | ' | ' | ' |
Revenues: | ' | ' | ' |
Revenues | 3,912 | 4,021 | ' |
Gross profit: | ' | ' | ' |
Gross profit | 2,199 | 2,348 | ' |
Total assets: | ' | ' | ' |
Total assets | 6,152 | 7,425 | ' |
SWEDEN | ' | ' | ' |
Revenues: | ' | ' | ' |
Revenues | 2,159 | 2,355 | ' |
Gross profit: | ' | ' | ' |
Gross profit | 1,403 | 1,603 | ' |
Total assets: | ' | ' | ' |
Total assets | 5,711 | 6,096 | ' |
JAPAN | ' | ' | ' |
Revenues: | ' | ' | ' |
Revenues | 575 | 555 | ' |
Gross profit: | ' | ' | ' |
Gross profit | 393 | 380 | ' |
Total assets: | ' | ' | ' |
Total assets | $1,536 | $1,846 | ' |
Note_9_Stockholders_Equity_Det
Note 9 - Stockholders' Equity (Details) | 3 Months Ended | |
Jan. 03, 2014 | Dec. 28, 2012 | |
Stockholders' Equity Note [Abstract] | ' | ' |
Stock Repurchased During Period, Shares | 0 | 0 |
Note_11_Deferred_Facilities_Re2
Note 11 - Deferred Facilities Rent And Other (Details) - Current Portion of Deferred Facilities Rent and Other (USD $) | Jan. 03, 2014 | Sep. 27, 2013 |
In Thousands, unless otherwise specified | ||
Current Portion of Deferred Facilities Rent and Other [Abstract] | ' | ' |
Deferred rent | $987 | $965 |
LA lease liability | 581 | 634 |
Sublease loss accruals | 37 | 64 |
$1,605 | $1,663 |
Note_11_Deferred_Facilities_Re3
Note 11 - Deferred Facilities Rent And Other (Details) - Deferred Facilities Rent and Other (USD $) | Jan. 03, 2014 | Sep. 27, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Facilities Rent and Other [Abstract] | ' | ' |
Deferred rent | $4,147 | $4,362 |
LA lease liability | 303 | 398 |
$4,450 | $4,760 |
Note_13_Restructing_Activity_D
Note 13 - Restructing Activity (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Dec. 28, 2012 |
Restructuring and Related Activities [Abstract] | ' |
Restructuring and Related Cost, Number of Positions Eliminated | 40 |
Restructuring Charges (in Dollars) | $1.30 |
Note_13_Restructing_Activity_D1
Note 13 - Restructing Activity (Details) - Restructuring Activity (USD $) | Jan. 03, 2014 | Dec. 28, 2012 |
In Thousands, unless otherwise specified | ||
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Reserve | $0 | $1,373 |
Reduction In Force [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Reserve | 0 | 262 |
Accelerated Depreciation Leasehold Improvements [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Reserve | 0 | 371 |
Contractual Lease Payments [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Reserve | $0 | $740 |
Note_14_United_Kingdom_Lease_T1
Note 14 - United Kingdom Lease Termination (Details) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | ||||||
Jan. 03, 2014 | Sep. 27, 2013 | Nov. 14, 2012 | Nov. 14, 2012 | Nov. 14, 2012 | Nov. 14, 2012 | Nov. 14, 2012 | Nov. 14, 2012 | Jan. 03, 2014 | Jan. 03, 2014 | |
USD ($) | USD ($) | Learning Tree International Limited [Member] | Learning Tree International Limited [Member] | Learning Tree International Limited [Member] | Learning Tree International Limited [Member] | Original Lease [Member] | Original Lease [Member] | Maximum [Member] | Maximum [Member] | |
New Lease [Member] | New Lease [Member] | Original Lease [Member] | Original Lease [Member] | USD ($) | GBP (£) | USD ($) | GBP (£) | |||
USD ($) | GBP (£) | USD ($) | GBP (£) | |||||||
Note 14 - United Kingdom Lease Termination (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Leases, Rent Expense, Net | ' | ' | $2,300,000 | £ 1,400,000 | $2,200,000 | £ 1,300,000 | ' | ' | ' | ' |
Operating Leases, Rent Expense | ' | ' | ' | ' | 4,600,000 | 2,800,000 | ' | ' | ' | ' |
Operating Leases, Rent Expense, Sublease Rentals | ' | ' | ' | ' | 2,400,000 | 1,500,000 | ' | ' | ' | ' |
Surrender Payment | ' | ' | ' | ' | ' | ' | 3,200,000 | 2,000,000 | ' | ' |
Asset Retirement Obligation, Liabilities Settled | 0 | -2,929,000 | ' | ' | ' | ' | 3,000,000 | 1,900,000 | ' | ' |
Escrow Deposit | ' | ' | 2,700,000 | 1,700,000 | 8,100,000 | 5,000,000 | ' | ' | ' | ' |
Operating Leases, Income Statement, Initial Direct Costs | ' | ' | ' | ' | ' | ' | ' | ' | $100,000 | £ 100,000 |