Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Oct. 02, 2015 | Dec. 01, 2015 | Mar. 12, 2015 | |
Entity Registrant Name | LEARNING TREE INTERNATIONAL, INC. | ||
Entity Central Index Key | 1,002,037 | ||
Trading Symbol | ltre | ||
Current Fiscal Year End Date | --10-02 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 13,224,349 | ||
Entity Public Float | $ 9,049,115 | ||
Document Type | 10-K | ||
Document Period End Date | Oct. 2, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Oct. 02, 2015 | Oct. 03, 2014 |
Assets | ||
Cash and cash equivalents | $ 17,936,000 | $ 29,881,000 |
Trade accounts receivable, net | 10,475,000 | 13,523,000 |
Income tax receivable | 498,000 | 583,000 |
Prepaid expenses | 2,773,000 | 2,935,000 |
Other current assets | 1,747,000 | 1,450,000 |
Current assets of continuing operations | 33,429,000 | 48,372,000 |
Current assets of discontinued operations | 0 | 4,472,000 |
Total current assets | 33,429,000 | 52,844,000 |
Education and office equipment | 33,165,000 | 34,302,000 |
Transportation equipment | 70,000 | 71,000 |
Property and leasehold improvements | 17,931,000 | 18,059,000 |
Total | 51,166,000 | 52,432,000 |
Less: accumulated depreciation and amortization | (45,096,000) | (44,012,000) |
Net | 6,070,000 | 8,420,000 |
Restricted interest-bearing investments | 3,265,000 | 3,231,000 |
Deferred income taxes. | 476,000 | 489,000 |
Other assets | 681,000 | 578,000 |
Long term assets of discontinued operations | 0 | 638,000 |
Total assets | 43,921,000 | 66,200,000 |
Liabilities | ||
Trade accounts payable | 6,744,000 | 6,768,000 |
Deferred revenues | 22,909,000 | 26,572,000 |
Accrued payroll, benefits and related taxes | 2,865,000 | 3,223,000 |
Other accrued liabilities | 1,225,000 | 2,294,000 |
Income taxes payable | 174,000 | 198,000 |
Current portion of deferred facilities rent and other | 1,401,000 | 1,708,000 |
Current liabilities of continuing operations | 35,318,000 | 40,763,000 |
Current liabilities of discontinued operations | 0 | 2,593,000 |
Total current liabilities | 35,318,000 | 43,356,000 |
Asset retirement obligations | 1,669,000 | 1,656,000 |
Deferred income taxes | 134,000 | 161,000 |
Deferred facilities rent and other | 2,575,000 | 3,721,000 |
Noncurrent tax liabilities | 1,178,000 | 1,262,000 |
Noncurrent liabilities of discontinued operations | 0 | 247,000 |
Total liabilities | $ 40,874,000 | $ 50,403,000 |
COMMITMENTS AND CONTINGENCIES | ||
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; 13,224,349 and 13,222,539 issued and outstanding, respectively | 1,000 | 1,000 |
Additional paid-in capital | 6,224,000 | 6,148,000 |
Accumulated other comprehensive loss | (578,000) | (325,000) |
(Accumulated deficit) retained earnings | (2,600,000) | 9,973,000 |
Total stockholders' equity | 3,047,000 | 15,797,000 |
Total liabilities and stockholders' equity | $ 43,921,000 | $ 66,200,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Oct. 02, 2015 | Oct. 03, 2014 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized shares (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) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, issued (in shares) | 13,224,349 | 13,222,539 |
Common stock, outstanding (in shares) | 13,224,349 | 13,222,539 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
Revenues | $ 94,884,000 | $ 107,057,000 |
Cost of revenues | 55,809,000 | 60,745,000 |
Gross profit | 39,075,000 | 46,312,000 |
Operating expenses: | ||
Course development | 8,146,000 | 7,225,000 |
Sales and marketing | 21,591,000 | 22,790,000 |
General and administrative | 19,029,000 | 22,287,000 |
Operating expenses | 48,766,000 | 52,302,000 |
Loss from operations before other operating items | (9,691,000) | (5,990,000) |
Other operating items: | ||
(Loss) gain on disposal of property, plant and equipment | (4,000) | 6,322,000 |
Other operating items | (4,000) | 6,322,000 |
(Loss) income from operations | (9,695,000) | 332,000 |
Interest income, net | 23,000 | 39,000 |
Foreign exchange gains | 340,000 | 103,000 |
Other | (9,000) | (230,000) |
Other income (expense), net | 354,000 | (88,000) |
(Loss) income from continuing operations before provision for income taxes | (9,341,000) | 244,000 |
Provision for income taxes | 467,000 | 261,000 |
Loss from continuing operations | (9,808,000) | (17,000) |
Discontinued operations (Note 14) | ||
(Loss) income from discontinued operations, net of tax | (264,000) | $ 18,000 |
Loss on disposal of discontinued segment | (2,501,000) | |
(Loss) income from discontinued operations, net of tax | (2,765,000) | $ 18,000 |
Net (loss) income | $ (12,573,000) | $ 1,000 |
Earnings (loss) per share basic and diluted: | ||
Continuing operations (in dollars per share) | $ (0.74) | $ 0 |
Discontinued operations (in dollars per share) | (0.21) | 0 |
Basic and diluted loss per share (in dollars per share) | $ (0.95) | $ 0 |
Weighted average shares outstanding - basic (in shares) | 13,224,000 | 13,222,000 |
Weighted average shares outstanding - diluted (in shares) | 13,224,000 | 13,224,000 |
Comprehensive loss: | ||
Net (loss) income | $ (12,573,000) | $ 1,000 |
Foreign currency translation adjustments | (253,000) | (186,000) |
Comprehensive loss | $ (12,826,000) | $ (185,000) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Sep. 27, 2013 | 13,217,000 | ||||
Balance at Sep. 27, 2013 | $ 1,000 | $ 5,825,000 | $ (139,000) | $ 9,974,000 | $ 15,661,000 |
Net (loss) income | 0 | 0 | 0 | 1,000 | 1,000 |
Foreign currency translation | 0 | 0 | (186,000) | 0 | (186,000) |
Share based compensation | $ 0 | 323,000 | 0 | 0 | 323,000 |
Restricted stock units released (in shares) | 6,000 | ||||
Restricted stock units released | $ 0 | 0 | 0 | 0 | 0 |
Shares surrendered in lieu of tax withholding (in shares) | (1,000) | ||||
Shares surrendered in lieu of tax withholding | $ 0 | 0 | 0 | (2,000) | $ (2,000) |
Balance (in shares) at Oct. 03, 2014 | 13,222,000 | 13,222,539 | |||
Balance at Oct. 03, 2014 | $ 1,000 | 6,148,000 | (325,000) | 9,973,000 | $ 15,797,000 |
Net loss | 0 | 0 | 0 | 1,000 | 1,000 |
Net (loss) income | 0 | 0 | 0 | (12,573,000) | (12,573,000) |
Foreign currency translation | 0 | 0 | (253,000) | 0 | (253,000) |
Share based compensation | $ 0 | 76,000 | 0 | 0 | 76,000 |
Restricted stock units released (in shares) | 2,000 | ||||
Restricted stock units released | $ 0 | 0 | 0 | 0 | $ 0 |
Balance (in shares) at Oct. 02, 2015 | 13,224,000 | 13,224,349 | |||
Balance at Oct. 02, 2015 | $ 1,000 | 6,224,000 | (578,000) | (2,600,000) | $ 3,047,000 |
Net loss | $ 0 | $ 0 | $ 0 | $ (12,573,000) | $ (12,573,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
Cash flows - operating activities | ||
Net (loss) income | $ (12,573,000) | $ 1,000 |
Add: Loss on sale of France Unit | 2,501,000 | |
Loss (income) from discontinued operations, net of tax | 264,000 | $ (18,000) |
Loss from continuing operations | (9,808,000) | (17,000) |
Adjustments to reconcile net loss from continuing operations to net cash used by continuing operating activities: | ||
Depreciation and amortization | 4,318,000 | 5,154,000 |
Share-based compensation | 76,000 | 323,000 |
Deferred income taxes | (30,000) | (145,000) |
Provision for doubtful accounts | 63,000 | 109,000 |
Accretion on asset retirement obligations | 79,000 | 89,000 |
Loss (gain) on disposal of equipment, property and leasehold improvements | 4,000 | (6,322,000) |
Unrealized foreign exchange gains | (298,000) | (450,000) |
Settlement of asset retirement obligation | 0 | (186,000) |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 2,766,000 | (2,092,000) |
Prepaid expenses and other assets | (506,000) | 1,609,000 |
Income tax receivable / payable | (81,000) | 621,000 |
Trade accounts payable | 453,000 | 697,000 |
Deferred revenues | (2,866,000) | (2,187,000) |
Deferred facilities rent and other | (1,386,000) | (1,204,000) |
Other accrued liabilities | (2,241,000) | 1,159,000 |
Net cash used in operating activities of continuing operations | (9,457,000) | (2,842,000) |
Net cash used in operating activities of discontinued operations | (210,000) | (296,000) |
Net cash used in operating activities | (9,667,000) | (3,138,000) |
Cash flows - investing activities: | ||
Purchases of equipment, property and leasehold improvements | (2,255,000) | (1,445,000) |
Proceeds from sale of equipment, property and leasehold improvements | 22,000 | 9,412,000 |
Net cash (used in) provided by investing activities of continuing operations | (2,233,000) | 7,967,000 |
Net cash used in investing activities of discontinued operations | (745,000) | (148,000) |
Net cash (used in) provided by investing activities | (2,978,000) | 7,819,000 |
Cash flows - financing activities: | ||
Shares surrendered in lieu of tax withholding | 0 | (2,000) |
Net cash used in financing activities | 0 | (2,000) |
Effects of exchange rate changes on cash and cash equivalents of continuing operations | (255,000) | (141,000) |
Effects of exchange rate changes on cash and cash equivalents of discontinued operations | (242,000) | (43,000) |
Effects of exchange rate changes on cash and cash equivalents | (497,000) | (184,000) |
Less: Net decrease in cash and cash equivalents of discontinued operations | (1,197,000) | (487,000) |
Net (decrease) increase in cash and cash equivalents of continuing operations | (11,945,000) | 4,982,000 |
Cash and cash equivalents at the beginning of the period | 29,881,000 | 24,899,000 |
Cash and cash equivalents at the end of the period | 17,936,000 | 29,881,000 |
Supplemental disclosures: | ||
Income taxes paid | 580,000 | 564,000 |
Interest paid | $ 3,000 | $ 0 |
Note 1 - Nature of the Business
Note 1 - Nature of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 02, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | 1. NATURE OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Nature of the Business Learning Tree International, Inc. and subsidiaries (“we,” “us,” or “our”) develop, market, and deliver a broad proprietary library of instructor-led classroom courses that are designed to meet the professional development needs of information technology (“IT”) professionals and managers worldwide. These courses are delivered primarily at our leased education centers located in the United States, the United Kingdom, Canada, Sweden and Japan. Such course events are also conducted in hotel and conference facilities and at customer sites throughout the world. Almost all of our course titles are also available to individuals located worldwide through Learning Tree AnyWare™, our patent-pending live online learning interface that allows individuals at any location to attend a live instructor-led Learning Tree class via the Internet. Our courses provide both breadth and depth of education across a wide range of technical and management disciplines, including operating systems, databases, computer networks, computer and network security, web development, programming languages, software engineering, open source applications, project management, business skills, and leadership and professional development. We follow a 52- or 53-week fiscal year, with our quarter-end dates on the Friday nearest the end of the calendar quarter and our year-end dates on the Friday nearest the end of September. Accordingly, our fiscal year 2015 ended on October 2, 2015, and our fiscal year 2014 ended on October 3, 2014. Thus, these consolidated financial statements report our consolidated financial position as of October 2, 2015, and October 3, 2014 and the related consolidated statements of operations and comprehensive loss, stockholders’ equity and cash flows for the fiscal years ended October 2, 2015 and October 3, 2014. Fiscal year 2015 was a 52-week year, while fiscal year 2014 was a 53-week year. Certain items in the consolidated financial statements have been reclassified to conform to the current presentation. b. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Learning Tree International, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated. The following is a list of our subsidiaries as of October 2, 2015: Learning Tree International USA, Inc. (U.S.) Learning Tree International, K.K. (Japan) Learning Tree International Ltd. (United Kingdom) Learning Tree International AB (Sweden) Learning Tree International Inc. (Canada) Advanced Technology Marketing, Inc. (U.S.) AnyWare Live, Inc. (U.S.) c. Revenue Recognition and Accounts Receivable Our revenues are received from business entities and government agencies for the professional training of their employees. Course events range in length from one to five days, and average approximately three and a half days. As stated above, we follow a 52- or 53-week fiscal year. This method is used in order to better align our external financial reporting with the way we operate our business. Since all courses have a duration of five days or less, and all courses begin and end within the same calendar week, under the 52- or 53-week fiscal year method all revenues and related direct costs for each course event are recognized in the week and the fiscal quarter in which the event takes place. We offer our customers a multiple-course sales discount referred to as a “Learning Tree Training Passport”. A Learning Tree Training Passport allows an individual Passport holder to attend up to a specified number of Learning Tree courses over a one or two-year period for a fixed price. For a Training Passport, the amount of revenue recognized for each attendance in a course is based upon the selling price of the Training Passport, the list price of the course taken, the weighted average list price of all courses taken and the estimated average number of courses Passport holders will actually attend. Upon expiration of each individual Training Passport, we record the difference, if any, between the revenues previously recognized and that specific Training Passport’s total invoiced price. The estimated attendance rate is based upon the historical experience of the average number of course events that Training Passport holders have been attending. The actual Training Passport attendance rate is reviewed at least semi-annually, and if the Training Passport attendance rates change, the revenue recognition rate for active Training Passports and for Training Passports sold thereafter is adjusted prospectively. We believe it is appropriate to recognize revenues on this basis in order to most closely match revenue and related costs, as the substantial majority of our Passport holders do not attend the maximum number of course events permitted under their Training Passport. We believe that the use of recent historical data is reasonable and appropriate because of the relative stability of the average actual number of course events attended by Passport holders. The average attendance rate for all expired Training Passports has closely approximated the estimated rate we utilize. Although we have seen no material changes in the historical rates as the number of course titles has changed, we monitor such potential effects. In general, determining the estimated average number of course events that will be attended by a Training Passport holder is based on historical trends that may not continue in the future. These estimates could differ in the near term from amounts used in arriving at the reported revenue. If the estimates are wrong, we would record the difference between the revenues previously recognized for that Training Passport and the Training Passport selling price upon expiration of that Training Passport. Thus, the timing of revenue recognition may be affected by an inaccurate estimation, but the inaccuracy would have no effect on the aggregate revenue recognized over the one- to two-year life of each Training Passport. For Passport products for which historical utilization data is not available, we assume that the estimated average number of courses to be attended is equal to the number of courses available on the Passport. Assumed utilization rates may be revised in future periods after sufficient time has passed to amass additional historical trends. In addition to our Learning Tree Training Passports, we also offer a multiple-course sales discount referred to as Learning Tree Training Vouchers. With Learning Tree Training Vouchers, a customer buys the right to send a specified number of attendees to Learning Tree courses over a six to twelve-month period for a fixed price. Revenue is recognized on a pro rata basis for each attendance. For the majority of Training Vouchers with unused seats at the expiration of the Voucher, we record the pro rata selling price of the expired unused seats as revenue. At times we make a business decision to extend a Training Voucher beyond the normal twelve month expiration date. Training Vouchers purchased under government rate schedules have no expiration date. Trade accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. We use estimates in determining the allowance for doubtful accounts receivable based on our analysis of various factors, including our historical collection experience, current trends, specific identification of invoices which are considered doubtful, and a percentage of our past due accounts receivable. These estimates could differ from actual collection experience and are subject to adjustment. Our trade accounts receivable are written off when they are deemed uncollectible. d. Stock-Based Compensation We estimate the fair value of share-based option awards on the date of grant using an option-pricing model. We estimate the fair value of share-based restricted stock units and restricted stock grants using the closing price of our stock on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our consolidated statements of operations and comprehensive loss. Our determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by assumptions regarding a number of variables, including our expected stock price volatility, expected term, dividend yield and risk-free interest rates. We analyzed our historical volatility to estimate the expected volatility. The risk-free interest rate assumption is based on the U.S. Treasury rate at the date of grant, which most closely resembles the expected life of our options. The estimated expected life represents the weighted-average period the stock options are expected to remain outstanding and has been determined based on the simplified method under Accounting Standards Codification (“ASC”) 718. We do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. As stock-based compensation expense recognized in the consolidated statements of operations and comprehensive loss is based on awards ultimately expected to vest, it has been reduced for estimated pre-vesting forfeitures. Forfeitures were estimated based on historical experience. e. Course Development Costs Course development costs are charged to operations in the period incurred. f. Advertising Advertising costs are charged to expense in the period incurred. Advertising costs totaled $612 and $814 in fiscal years 2015 and 2014, respectively. g. Cash and Cash Equivalents, Available for Sale Securities, and Interest-bearing Investments We consider highly liquid investments with remaining maturities of ninety days or less when purchased to be cash equivalents. We classify certain of our investments in marketable securities as “available for sale”. We do not have any investments classified as “trading” or “held-to-maturity.” Our policy is to invest cash with issuers that have high credit ratings and to limit the amount of credit exposure to any one issuer. As of October 2, 2015 and October 3, 2014, we had no available for sale securities. Restricted interest-bearing investments at October 2, 2015 consisted of cash deposits of $2,185 (1,439 British Pounds), $184 (1,534 Swedish Krona) and $896 which were pledged as collateral to secure our obligations under leases for education center facilities located in the United Kingdom, Sweden, and the United States, respectively. This compares to restricted interest-bearing investments of cash deposits of $2,297 (1,439 British Pounds), $209 (1,519 Swedish Krona) and $725 at October 3, 2014. The United Kingdom deposits are held in trust by the landlord with interest accruing to us and paid on an annual basis. The deposits will be released to us at the earlier of the end of the lease period or when certain financial ratios have been met. In the United States, the deposit is in an interest bearing restricted account held by our bank and serves as collateral for letters of credit issued to our landlords by our bank. h. Marketing Expenses Marketing expenses primarily include the external costs associated with the design, printing, postage, list rental and handling of direct mail advertising materials to be mailed in the future. These costs are charged to expense in the month in which the advertising materials are mailed since the benefit period for such costs is short and the amount of future benefit is not practically measurable. Marketing expenses for fiscal years 2015 and 2014 were $8,942 and $10,413 respectively. i. Equipment, Property and Leasehold Improvements Equipment, property and leasehold improvements are recorded at cost and depreciated or amortized using the straight-line method over the following estimated useful lives: Education and office equipment (years) 3 to 5 Transportation equipment (years) 4 Accounting software (years) 7 Leasehold improvements 20 years or the life of the lease, if shorter Total depreciation and amortization expense amounted to $4,318 and $5,154 in fiscal years 2015 and 2014, respectively. Costs of normal maintenance and repairs and minor replacements are normally charged to expense as incurred. In those instances where we have determined we are contractually obligated to incur recurring repairs and maintenance costs related to our leased facilities, a provision is made in the financial statements at the earlier of the date the expense is incurred or the date of the obligation. The costs of assets sold or retired are eliminated from the accounts along with the related accumulated depreciation or amortization, and any resulting gain or loss is included in the statements of operations and comprehensive loss. In September 2014, we sold and leased back for one year, our corporate headquarters, located at 1831 Michael Faraday Dr., Reston, Virginia, which is a facility that we currently use for our corporate headquarters, as well as the sales, administrative and operations groups of our United States subsidiary. The Company’s carrying value of the headquarters property at the time of sale was approximately $3,600. The sale and the leaseback were accounted for as separate transactions based on their respective terms since the lease is determined to be minor. As such, we recognized a gain on the sale of $6,322 which is shown on the other operating items line of our consolidated statement of operations and comprehensive loss. The fair value of a liability for an asset retirement obligation (“ARO”) associated with a leased facility is recorded as an asset (leasehold improvements) and a liability when there is a legal obligation associated with the retirement of a long-lived asset and the amount can be reasonably estimated. See also Note 2 relating to AROs. j. Long-Lived Assets We periodically review the carrying value of our long-lived assets, such as equipment, property and leasehold improvements for impairment or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In making such evaluations, we compare the expected future cash flows to the carrying amount of the assets. If the total of the expected future cash flows is less than the carrying amount of the assets, we are required to make estimates of the fair value of the long-lived assets in order to calculate the impairment loss equal to the difference between the fair value of the assets and their book value. We make significant assumptions and estimates in this process regarding matters that are inherently uncertain, such as estimating cash flows, remaining useful lives, discount rates and growth rates. The resulting cash flows are computed over an extended period of time, which subjects those assumptions and estimates to an even larger degree of uncertainty. While we believe that our estimates are reasonable, different assumptions regarding such cash flows could materially affect the valuation of long-lived assets. k. Deferred Revenues Deferred revenues primarily relate to unearned revenues associated with Training Passports, Training Vouchers and advance payments received from customers for course events to be held in the future. l. Comprehensive loss We report comprehensive income (loss) in the consolidated statements of operations and comprehensive loss. Other comprehensive loss represents changes in stockholders’ equity from non-owner sources and is comprised of foreign currency translation adjustments. At the end of fiscal year 2015, accumulated other comprehensive loss consisted of cumulative foreign currency translation adjustments of $(578) compared to cumulative foreign currency translation adjustments of $(325) in fiscal year 2014. m. Income Taxes We provide for income taxes under the provisions of Financial Accounting Standards Board (“FASB”) ASC 740, Income Taxes The tax effects of uncertain tax positions are recognized in the financial statements only if the position is more likely than not to be sustained on audit, based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized. It is our accounting policy to account for ASC 740-10 related penalties and interest as a component of the income tax provision in the consolidated statements of operations and comprehensive loss. n. Foreign Currency We translate the financial statements of our foreign subsidiaries from the local (functional) currencies to U.S. dollars. The rates of exchange at each fiscal year end are used for translating the assets and liabilities and the average monthly rates of exchange for each year are used for the consolidated statements of operations and comprehensive loss. Gains or losses arising from the translation of the foreign subsidiaries’ financial statements are included in the accompanying consolidated balance sheets as a separate component of stockholders’ equity. Gains or losses resulting from foreign currency transactions are included in the consolidated statements of operations and comprehensive loss. To date, we have not sought to hedge the risk associated with fluctuations in currency exchange rates, and therefore we continue to be subject to such risk. o. Deferred Facilities Rent Operating Lease Activities: We lease education center and administrative office space under various operating lease agreements. Certain lease agreements include provisions that provide for cash incentives, graduated rent payments and other inducements. We recognize rent expense on a straight-line basis over the related terms of such leases. The value of lease incentives and/or inducements, along with the excess of the rent expense recognized over the rentals paid, is recorded as deferred facilities rent in the accompanying consolidated balance sheets. Lease Termination Activities: We record liabilities for costs that will be incurred under a contract without economic benefit at estimated fair value. We have vacated space in leased facilities subject to operating leases and recorded the estimated liability associated with future rentals at the cease-use date. The fair value of the liability at the cease-use date was determined based on the remaining cash flows for lease rentals, and minimum lease payments, reduced by estimated sublease rentals and certain subtenant reimbursements that could be reasonably obtained for the property, discounted using a credit-adjusted risk-free rate. The liability is adjusted for changes, if any, resulting from revisions to estimated cash flows after the cease-use date, measured using the original historical credit-adjusted risk-free rate. Changes due to the passage of time are recognized as an increase in the carrying amount of the liability and as accretion expense. In September 2012, we announced our intention to close the Los Angeles, CA office facility effective December 2012. Our lease for these facilities runs through April 2016. We recorded a restructuring charge for the estimated liability associated with future rentals due under the property lease as of the cease use date. The fair value of the lease liability at the cease use date was determined based on the remaining cash flows for lease rentals, and minimum lease payments, reduced by estimated sublease rentals, discounted using a credit adjusted risk free rate. In addition, the estimated useful life of leasehold improvements was adjusted for the December 2012 closure date. In June 2014, we re-evaluated the estimated sublease rentals as we have been unable to find a subtenant for the facility. As a result, we recorded an additional $529 restructuring charge in our third quarter of fiscal year 2014. p. Fair Value of Financial Instruments The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate their fair values because of the short-term nature of these instruments. q. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make judgments, estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. r. Recently Issued Accounting Pronounc ements In April 2014, the FASB issued ASU No. 2014-08, “ Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” Other recent accounting pronouncements issued by the FASB (including the Emerging Issues Task Force), the American Institute of Certified Public Accountants and the SEC did not, or management believes will not, have a material impact on our present or future consolidated financial statements. |
Note 2 - Asset Retirement Oblig
Note 2 - Asset Retirement Obligations | 12 Months Ended |
Oct. 02, 2015 | |
Notes to Financial Statements | |
Asset Retirement Obligation Disclosure [Text Block] | 2. ASSET RETIREMENT OBLIGATIONS We record a liability equal to the fair value of the estimated cost to retire an asset. The ARO liability is recorded in the period in which the obligation meets the definition of a liability, which is generally when the asset is placed in service and whereby we have contractual commitments to remove leasehold improvements and to return the leased facility back to a specified condition when the lease terminates. For a facility lease, this is typically at the inception of the lease. When the ARO liability is initially recorded, we increase the carrying amount of the related long-lived asset (leasehold improvements) by an amount equal to the calculated liability. The liability is subsequently accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset, which is the lease term. The ARO liability is recorded at fair value, and accretion expense (included in general and administrative expenses) is recognized over time as the discounted liability is accreted to its expected settlement value. The fair value of the ARO liability is measured using the expected future cash outflows related to the lease and calculated by using inflation rates in effect at the time of adoption and incorporating a market-risk premium, and discounted at our credit-adjusted risk-free interest rate at the time of adoption. Any difference between costs incurred upon settlement of an asset retirement obligation and the recorded liability will be recognized as a gain or loss in our earnings. Each ARO liability is based on a number of assumptions requiring judgment. We cannot predict the type of revisions to these assumptions that will be required in future periods due to the availability of additional information, technology changes, the price of labor costs and other factors. The following table presents the activity for our ARO liabilities, which primarily consist of classroom facilities at our education centers: Year ended Year ended October 2, 2015 October 3, 2014 ARO balance, beginning of period $ 1,656 $ 1,766 Accretion expense 79 89 Settlement of ARO liability 0 (186 ) Foreign currency translation (66 ) (13 ) ARO balance, end of period $ 1,669 $ 1,656 |
Note 3 - Income Taxes
Note 3 - Income Taxes | 12 Months Ended |
Oct. 02, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 3. INCOME TAXES We file a consolidated United States federal income tax return which includes all of our domestic operations. Our domestic subsidiaries also file income tax returns based on our operations in certain state and local jurisdictions. We file separate tax returns for each of our foreign subsidiaries in the countries in which they operate. (Loss) income before provision for income taxes consists of the following: Fiscal Year Ended October 2, 2015 October 3, 2014 Domestic $ (10,499 ) $ (1,258 ) Foreign 1,158 1,502 Total $ (9,341 ) $ 244 The provision for income taxes consists of the following: Fiscal Year Ended October 2, 2015 October 3, 2014 Current tax provision (benefit): U.S. Federal $ 185 $ 2 State (64 ) (81 ) Foreign 376 485 497 406 Deferred tax provision: U.S. Federal (1 ) (25 ) Foreign (29 ) (120 ) (30 ) (145 ) Provision for income taxes $ 467 $ 261 The following is a reconciliation of the provision for income taxes to the United States federal statutory tax rate: Fiscal Year Ended October 2, 2015 Effective Tax rate % October 3, 2014 Effective Tax rate % Income taxes at the U.S. statutory rate $ (3,269 ) 35.0 % $ 109 35.0 % Equity compensation 22 (0.2 ) 171 54.7 Other permanent differences 448 (4.8 ) 230 73.7 Effects of foreign taxes and tax credits (184 ) 2.0 (1,235 ) (395.4 ) State income taxes (363 ) 3.9 (63 ) (20.0 ) Uncertain tax positions 57 (0.6 ) 57 18.1 Change in valuation allowance 3,737 (40.0 ) 1,182 378.5 Other 19 (0.3 ) (190 ) (60.9 ) Total provision for income taxes $ 467 (5.0 ) % $ 261 83.7 % Significant management judgment is required in determining our provision for income taxes and in determining whether any deferred tax assets will be realized in full or in part. When it is more likely than not that all or some portion of specific deferred tax assets such as net operating losses or foreign tax credit carry-forwards will not be realized, a valuation allowance must be established for the amount of the deferred tax assets that would not be realized. Realization will be based on our ability to generate sufficient future taxable income. In fiscal year 2012 we established a valuation allowance against our deferred tax assets in the United States and France due to current year and projected future pre-tax book losses. We continued to maintain this valuation allowance throughout fiscal years 2014 and 2015. As of October 2, 2015, we had a net deferred tax asset of $342. As of October 2, 2015, we had foreign tax credit carry-forwards of approximately $25, which expire, if unused in the years 2021-2023. Deferred income tax assets and liabilities consist of the following: Fiscal Year Ended October 2, 2015 October 3, 2014 Domestic operations: Deferred tax assets: Deferred facilities rent charges $ 1,330 $ 1,946 Deferred revenue 2,092 2,084 Foreign tax credit carryforwards 132 132 Alternative minimum tax credit carryforwards 189 96 Accrued vacation 443 487 Equity compensation 37 16 Depreciation and amortization 2,789 2,331 Other 198 199 Net operating loss 3,912 0 Capital loss 79 0 Deferred tax liabilities: Prepaid expenses (505 ) (313 ) Domestic net deferred tax assets 10,696 6,978 Foreign operations: Deferred tax assets: Depreciation and other 472 485 Deferred tax liabilities: Depreciation and other (134 ) (161 ) Foreign net deferred tax assets 338 324 Domestic and foreign deferred tax assets 11,034 7,302 Valuation allowances (10,692 ) (6,974 ) Net deferred tax assets $ 342 $ 328 We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. For fiscal year 2015, we recognized an expense of $51 attributable to interest for uncertain tax positions. As of October 2, 2015 and October 3, 2014, we had $706 and $656 accrued, respectively for interest and penalties for uncertain tax positions. As of October 2, 2015, $772 of our total unrecognized tax benefits would favorably affect our effective tax rate if recognized. During fiscal year 2015, we reversed $117 of unrecognized tax benefits associated with the prior intercompany transactions with France. This tax benefit reduced the loss from discontinued operations. We do not believe it is reasonably possible that the amount of unrecognized tax benefits will significantly change within the next 12 months due to changes in circumstances other than related to these intercompany transactions. We file income tax returns in the United States and various state, local, and foreign jurisdictions, and remain subject to examinations by these jurisdictions for fiscal years 2009 through 2015. The aggregate change in the balance of gross unrecognized tax benefits, which excludes interest and penalties, is as follows: October 2, 2015 October 3, 2014 Balance, beginning of year $ 606 $ 563 Decreases related to tax positions taken during a prior period (134 ) 0 Increases related to tax positions taken during the current period 0 43 Balance end of year $ 472 $ 606 In the fourth quarter of fiscal year 2013, we accrued a provision for income taxes on a portion of the undistributed earnings of our foreign subsidiaries based on our estimated future US cash needs that we anticipated would be funded through distributions from the foreign subsidiaries. We are subject to federal income and potentially foreign withholding taxes when earnings are distributed. In the second quarter of fiscal year 2014, we repatriated $1,194 and $5,473 from our subsidiaries in Sweden and the United Kingdom, respectively. There were no withholding taxes and the deferred tax liability that was established in fiscal year 2013 was reduced by the amount of the dividend. There was no impact on the fiscal year 2014 effective tax rate since the tax ramifications of this dividend were provided for in fiscal year 2013. In the fourth quarter of fiscal year 2014, we reevaluated our position regarding future needs to repatriate foreign earnings and taking into consideration the net proceeds received from the sale of our headquarters facility, believed there was a reasonable basis for reinvesting the undistributed earnings of our foreign subsidiaries for the foreseeable future. Therefore, the remaining deferred taxes previously provided for foreign subsidiary earnings in fiscal year 2013 have been reversed during fiscal year 2014. For 2015, we believe no additional funds will be repatriated from our foreign subsidiaries in the foreseeable future. It is not practical to calculate the tax effect on unremitted foreign earnings. |
Note 4 - Commitments and Contin
Note 4 - Commitments and Contingencies | 12 Months Ended |
Oct. 02, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 4. COMMITMENTS AND CONTINGENCIES a. Commitments As of October 2, 2015, we had various non-cancelable operating leases for facilities that expire at various dates through 2026 and certain leases for office equipment requiring annual payments as follows: Fiscal Year Ending Minimum Lease Payments Less Sublease Proceeds Net Lease Commitments 2016 $ 8,061 $ 44 $ 8,017 2017 7,690 0 7,690 2018 6,185 0 6,185 2019 6,190 0 6,190 2020 5,951 0 5,951 Thereafter 14,111 0 14,111 $ 48,188 $ 44 $ 48,144 Rental expense, excluding sublease income, was $9,114 and $9,737 for fiscal years 2015 and 2014, respectively. Sublease rental income for fiscal years 2015 and 2014 was $120 and $48, respectively. b. 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 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 5 - Stockholders' Equity
Note 5 - Stockholders' Equity | 12 Months Ended |
Oct. 02, 2015 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 5. STOCKHOLDERS’ EQUITY We did not purchase any shares of our common stock during fiscal years 2015 and 2014. We may make purchases of common stock in the future, but we have no commitments to do so. |
Note 6 - Stock-Based Compensati
Note 6 - Stock-Based Compensation | 12 Months Ended |
Oct. 02, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 6. STOCK-BASED COMPENSATION Effective January 23, 2007, our stockholders approved the 2007 Equity Incentive Plan (our “2007 Plan”). Our 1999 Stock Option Plan terminated upon shareholder approval of our 2007 Plan, and no further grants of awards can be made under that plan although the rights of holders of options previously granted and outstanding under that plan were not affected. Our 2007 Plan is administered by the Compensation and Stock Option Committee of our Board of Directors. Our 2007 Plan permits the granting of nonqualified stock options, incentive stock options, stock appreciation rights (or SARs), restricted stock, restricted stock units, performance units and performance shares to our employees, officers, directors and consultants in an amount up to an aggregate of 1,000,000 shares of common stock. Option awards have been granted with an exercise price equal to the market price of our stock at the date of grant and generally vest one fourth per year over four years (in some instances, subject to achieving certain financial targets in the year with respect to which they are granted) and have ten-year contractual terms. However, the exercise price, vesting schedule and period required for full exercisability of the options is at the discretion of the Compensation and Stock Option Committee of our Board of Directors. We recognize compensation cost for these awards on a straight-line basis (or, on a graded basis for those options with performance conditions) over the requisite service period for the entire award, which is equal to the vesting period. We have a policy of issuing new shares of common stock to satisfy share option exercises. The fair value of each option award was estimated on the date of grant using a Black-Scholes option-pricing formula. Expected volatilities were based on the historical volatility of our stock measured over a period commensurate with the expected life of granted stock options. The expected term of options represented the period of time that options granted were expected to be outstanding and was determined based on the simplified method as discussed in ASC 718 “ Compensation-Stock Compensation A summary of option activity under the 2007 Plan and previous plans during fiscal years 2014 and 2015 is presented below: Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at September 27, 2013 0 $ 0.00 0.0 $ 0.00 Options granted 200,000 $ 3.85 8.0 $ 0.00 Options exercised 0 $ 0.00 Options forfeited, expired and unearned 0 $ 0.00 Outstanding at October 3, 2014 200,000 $ 3.85 8.0 $ 0.00 Options granted 50,000 $ 1.76 9.6 $ 0.00 Options exercised 0 $ 0.00 Options forfeited, expired and unearned 0 $ 0.00 Outstanding at October 2, 2015 250,000 $ 3.43 8.3 $ 0.00 Vested and expected to vest at October 2, 2015 250,000 $ 3.43 8.3 $ 0.00 Exercisable at October 2, 2015 100,000 $ 3.85 8.0 Stock-based compensation expense related to employee stock options is included in cost of revenues and operating expenses consistent with the respective employee salary costs. These costs totaled $72 and $69 for fiscal years 2015 and 2014, respectively. As stock-based compensation expense recognized in the consolidated statements of operations and comprehensive loss is based on awards ultimately expected to vest, it has been reduced for estimated pre-vesting forfeitures. Prior to fiscal year 2014, we reduced the estimated forfeiture rate for executive personnel to zero. If the non-vested stock options fully vest, they will result in future expense of $158 over a weighted-average remaining amortization period of 2.2 years. The total income tax benefit relating to stock options and recognized in the consolidated statements of operations and comprehensive loss was $0 for both fiscal years 2015 and 2014. Restricted Stock As noted above, our 2007 Plan permits us to grant shares of restricted stock. Grants of restricted stock awarded under the plan entitle the shareholder to all rights of common stock ownership except that the shares may not be sold, transferred, pledged, exchanged or otherwise disposed of during the restriction period, and may be repurchased by us for nominal consideration if the employee ceases to be employed by us during that period. The restriction period is determined by the Compensation and Stock Option Committee of our Board of Directors. We did not issue any shares of restricted stock during fiscal years 2015 or 2014 and there were no shares of restricted stock outstanding as of the end of fiscal years 2015 or 2014. Restricted Stock Units As noted above, our 2007 Plan permits us to grant restricted stock units (RSUs), which entitle holders to receive shares of common stock upon vesting. During fiscal year 2013, we granted 54,685 RSUs to the outside directors. These stock units were subject to a three year vesting schedule. The compensation for the outside directors was changed during fiscal year 2013 to eliminate further grants of RSUs and to replace them with an increased cash retainer. Outside directors holding unvested RSUs were given an option to voluntarily forfeit their unvested RSUs and transition immediately to the increased cash retainer or wait until all of the RSUs had vested before transitioning to the increased cash retainer. All of the outside directors impacted by this change elected to voluntarily forfeit their unvested RSUs. During fiscal years 2015 and 2014, we did not grant any RSUs. A summary of the restricted stock unit activity is as follows: Restricted Stock Units Weighted Average Grant Date Fair Value Nonvested at September 27, 2013 9,442 $ 7.29 Granted 0 $ 0.00 Vested (5,742 ) $ 7.93 Forfeited (1,890 ) $ 6.31 Nonvested at October 3, 2014 1,810 $ 6.31 Granted 0 $ 0.00 Vested (1,810 ) $ 6.31 Forfeited 0 $ 0.00 Nonvested at October 2, 2015 0 $ 0.00 For fiscal years 2015 and 2014, we recognized $4 and $254, respectively, in compensation costs related to RSUs. |
Note 7 - Employee Benefit Plans
Note 7 - Employee Benefit Plans | 12 Months Ended |
Oct. 02, 2015 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | 7. EMPLOYEE BENEFIT PLANS We have adopted a defined contribution plan for the benefit of our domestic employees who have met the eligibility requirements. The Learning Tree International 401(k) Plan (our “401(k) Plan”) is a profit-sharing plan qualifying under Section 401(k) of the Internal Revenue Code. Qualified employees may elect to contribute to our 401(k) Plan on a pre-tax basis. The maximum amount of employee contribution is subject only to statutory limitations. We make contributions at a rate of 30% of the first 6% of employee compensation contributed. We contributed $40 and $53, net of forfeitures of $229 and $208, to our 401(k) Plan for fiscal years 2015 and 2014, respectively. We have adopted or participate in country-sponsored defined contribution plans for the benefit of our employees of all of our foreign subsidiaries. Contributions to these plans are subject to tenure and compensation level criteria, as well as certain limitations. For fiscal years 2015 and 2014 our cost for these plans was approximately $470 and $587, respectively. |
Note 8 - Income (Loss) Per Shar
Note 8 - Income (Loss) Per Share | 12 Months Ended |
Oct. 02, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 8. INCOME (LOSS) PER SHARE Income (loss) per share—basic is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Income (loss) per share—diluted includes the dilutive effect, if any, of nonvested restricted stock grants, nonvested restricted stock units and of outstanding options to purchase common stock, using the treasury stock method. For fiscal years 2015 and 2014, 250,000 and 200,000 stock options, respectively, were anti-dilutive and excluded from the income (loss) per share—diluted calculation. The following table sets forth the calculation of basic and diluted income (loss) per share: Fiscal Year Ended Oct 2, Oct 3, 2015 2014 Numerator: Loss from continuing operations $ (9,808 ) $ (17 ) (Loss) income from discontinued operations (2,765 ) 18 Net (loss) income $ (12,573 ) $ 1 Denominator: Weighted average shares outstanding Basic 13,224 13,222 Effect of dilutive securities 0 2 Diluted $ 13,224 $ 13,224 (Loss) income per common share - basic and diluted: Continuing operations $ (0.74 ) $ (0.00 ) Discontinued operations (0.21 ) 0.00 Basic and diluted loss per share $ (0.95 ) $ 0.00 |
Note 9 - Operating Segment Info
Note 9 - Operating Segment Information | 12 Months Ended |
Oct. 02, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 9. OPERATING SEGMENT INFORMATION Our worldwide operations involve the design and delivery of instructor-led classroom training courses and related services to business and government organizations. The training and education we offer is presented by our instructors in a virtually identical manner in every country in which we operate, regardless of whether presented in leased classroom space or external facilities, of the content of the class being taught, the language of the presentation or the printed course materials or of the location or method of distribution. We did not have sales to any one commercial customer or government agency that amounted to 10% or more of our revenues in fiscal years 2015 or 2014. We conduct and manage our business globally, and our management makes financial decisions and allocates resources based on the information we receive from our internal management systems. Our reportable segments are: the United States, Canada, the United Kingdom, Sweden and Japan. As a measure of segment performance, our Chief Operating Decision Maker reviews revenues and gross profit for each segment. Intersegment sales were $4,049 and $5,336 in fiscal years 2015 and 2014, respectively. Summarized financial information by reportable segment for fiscal years 2015 and 2014, is as follows: Fiscal Year Ended October 2, 2015 October 3, 2014 Revenues: United States $ 57,787 $ 59,452 Canada 8,752 11,113 North America 66,539 70,565 United Kingdom 22,151 28,009 Sweden 4,232 6,239 Japan 1,962 2,244 Continuing Operations 94,884 107,057 France 3,336 11,191 Discontinuing Operations 3,336 11,191 Total $ 98,220 $ 118,248 Gross profit: United States $ 22,396 $ 22,640 Canada 4,401 6,547 North America 26,797 29,187 United Kingdom 8,422 11,898 Sweden 2,542 3,686 Japan 1,314 1,541 Continuing Operations 39,075 46,312 France 1,289 5,362 Discontinuing Operations 1,289 5,362 Total $ 40,364 $ 51,674 Depreciation and amortization: United States $ 2,818 $ 3,223 Canada 330 298 North America 3,148 3,521 United Kingdom 1,020 1,448 Sweden 134 125 Japan 16 60 Continuing Operations 4,318 5,154 France 191 526 Discontinuing Operations 191 526 Total $ 4,509 $ 5,680 Fiscal Year Ended October 2, 2015 October 3, 2014 Total assets: United States $ 23,683 $ 36,565 Canada 3,729 3,717 North America 27,412 40,282 United Kingdom 11,789 14,597 Sweden 3,215 4,541 Japan 1,505 1,671 Continuing Operations 43,921 61,091 France 0 5,109 Discontinuing Operations 0 5,109 Total $ 43,921 $ 66,200 Long-lived assets: United States $ 3,266 $ 4,901 Canada 707 456 North America 3,973 5,357 United Kingdom 2,532 3,398 Sweden 179 158 Japan 67 85 Continuing Operations 6,751 8,998 France 0 638 Discontinuing Operations 0 638 Total $ 6,751 $ 9,636 Capital expenditures: United States $ 1,042 $ 864 Canada 669 137 North America 1,711 1,001 United Kingdom 360 415 Sweden 179 24 Japan 5 5 Continuing Operations 2,255 1,445 France 5 148 Discontinuing Operations 5 148 Total $ 2,260 $ 1,593 |
Note 10 - Deferred Facilities R
Note 10 - Deferred Facilities Rent and Other | 12 Months Ended |
Oct. 02, 2015 | |
Notes to Financial Statements | |
Deferred Facilities Rent and Other [Text Block] | 10. 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 October 2, October 3, 2015 2014 Deferred rent $ 1,074 $ 1,050 LA lease liability 327 658 $ 1,401 $ 1,708 Deferred Facilities Rent and Other October 2, October 3, 2015 2014 Deferred rent $ 2,575 $ 3,420 LA lease liability 0 301 $ 2,575 $ 3,721 |
Note 11 - Valuation and Qualify
Note 11 - Valuation and Qualifying Accounts | 12 Months Ended |
Oct. 02, 2015 | |
Notes to Financial Statements | |
Valuation and Qualifying Accounts [Text Block] | 11. VALUATION AND QUALIFYING ACCOUNTS Activity with respect to our provision for doubtful accounts is summarized as follows: October 2 October 3 2015 2014 Beginning balance $ 158 $ 161 Provision for doubtful accounts 63 118 Charges against allowance (64 ) (121 ) Other 3 0 Ending balance $ 160 $ 158 Activity with respect to our valuation allowance for deferred tax assets is summarized as follows: October 2 October 3 2015 2014 Beginning balance $ 6,974 $ 6,198 Provisions 3,718 1,212 Charges against allowance 0 (436 ) Ending balance $ 10,692 $ 6,974 Activity with respect to our Los Angeles lease liability is summarized as follows: October 2 October 3 2015 2014 Beginning balance $ 959 $ 1,032 Provisions 30 529 Charges against allowance 0 (602 ) Ending balance $ 989 $ 959 |
Note 12 - Related Party Transac
Note 12 - Related Party Transactions | 12 Months Ended |
Oct. 02, 2015 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 12. RELATED PARTY TRANSACTIONS Dr. David C. Collins, our Chairman of the Board, oversees (with the concurrence of the Nominating and Governance Committee of our Board of Directors) a charitable program under which we donated $32 and $209 during fiscal years 2015 and 2014, respectively, to charitable organizations. |
Note 13 - Quarterly Data (Unaud
Note 13 - Quarterly Data (Unaudited) | 12 Months Ended |
Oct. 02, 2015 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 13. QUARTERLY DATA (UNAUDITED) Q1 Q2 Q3 Q4 January 2, 2015 April 3, 2015 July 3, 2015 October 2, 2015 Revenues $ 24,400 $ 22,152 $ 22,703 $ 25,629 Cost of revenues 13,726 13,962 14,361 13,760 Gross profit 10,674 8,190 8,342 11,869 Operating expenses: Course development 1,709 2,111 2,575 1,751 Sales and marketing 5,532 6,080 5,387 4,592 General and administrative 4,864 4,991 4,420 4,754 Total operating expenses 12,105 13,182 12,382 11,097 Income (loss) from operations before other operating items (1,431 ) (4,992 ) (4,040 ) 772 Other operating items (6 ) 1 (4 ) 5 Income (loss) from operations (1,437 ) (4,991 ) (4,044 ) 777 Other income, net 227 165 (37 ) (1 ) (Loss) income from continuing operations before provision for income taxes (1,210 ) (4,826 ) (4,081 ) 776 Provision for income taxes 158 52 222 35 Loss from continuing operations $ (1,368 ) $ (4,878 ) $ (4,303 ) $ 741 Discontinued operations (Loss) income from discontinued operations, net of tax 218 (482 ) 0 0 Loss on disposal of discontinued segment 0 (2,501 ) 0 0 (Loss) income from discontinued operations, net of tax 218 (2,983 ) 0 0 Net (loss) income $ (1,150 ) $ (7,861 ) $ (4,303 ) $ 741 Earnings (loss) per share basic and diluted: Continuing operations $ (0.10 ) $ (0.37 ) $ (0.33 ) $ 0.06 Discontinuing operations 0.01 (0.23 ) 0.00 0.00 Basic and diluted loss per share $ (0.09 ) $ (0.60 ) $ (0.33 ) $ 0.06 Q1 Q2 Q3 Q4 January 3, 2014 March 28, 2014 June 27, 2014 October 3, 2014 Revenues $ 28,110 $ 23,184 $ 25,718 $ 30,045 Cost of revenues 15,635 14,488 14,532 16,090 Gross profit 12,475 8,696 11,186 13,955 Operating expenses: Course development 1,851 1,734 1,813 1,827 Sales and marketing 5,362 5,475 5,638 6,315 General and administrative 5,108 5,067 6,599 5,512 Total operating expenses 12,321 12,276 14,050 13,654 Income (loss) from operations before other operating items 154 (3,580 ) (2,864 ) 301 Other operating items 0 12 - 6,310 Income (loss) from operations 154 (3,568 ) (2,864 ) 6,611 Other income, net (36 ) (68 ) 18 (2 ) (Loss) income from continuing operations before provision for income taxes 118 (3,636 ) (2,846 ) 6,609 Provision (benefit) for income taxes 117 274 104 (234 ) Income (loss) from continuing operations $ 1 $ (3,910 ) $ (2,950 ) $ 6,843 Discontinued operations (Loss) income from discontinued operations, net of tax 728 (693 ) 204 (221 ) Loss on disposal of discontinued segment 0 0 0 0 (Loss) income from discontinued operations, net of tax 728 (693 ) 204 (221 ) Net income (loss) $ 729 $ (4,603 ) $ (2,746 ) $ 6,622 Earnings (loss) per share basic and diluted: Continuing operations $ - $ (0.30 ) $ (0.22 ) $ 0.52 Discontinuing operations 0.06 (0.05 ) 0.01 (0.02 ) Basic and diluted loss per share $ 0.06 $ (0.35 ) $ (0.21 ) $ 0.50 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. Since all courses have a duration of five days or less, and all courses begin and end within the same calendar week, under the 52/53 week fiscal year method all revenues and related direct costs for each course event are recognized in the week and the fiscal quarter in which the event takes place. In most years, including fiscal year 2015, each fiscal quarter has 13 weeks; however, fiscal year 2014 had 53 weeks, with 14, 12, 13, and 14 weeks in our first, second, third and fourth quarters, respectively. In our fourth quarter of fiscal year 2014, we sold and leased back for one year, with options for two six-month extensions, our corporate headquarters, which we currently use for our corporate headquarters, as well as the sales, administrative and operations groups of our United States subsidiary. The sale and the leaseback were accounted for as separate transactions based on their respective terms since the lease was determined to be minor. As such, we recognized a gain on the sale of $6,322 which is shown on the other operating items line of the quarterly data tables. |
Note 14 - Discontinued Operatio
Note 14 - Discontinued Operations | 12 Months Ended |
Oct. 02, 2015 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE 14—DISCONTINUED OPERATIONS On March 3, 2015, we entered into an Agreement (“Agreement”) to sell our subsidiary in France, LTRE (FR), to Educinvest for consideration of € 1 (One Euro). The sale transaction was consummated on the same date that the Agreement was signed by the parties. The purchase price was established in recognition of the potential liabilities being assumed by Educinvest related to continuation of the LTRE(FR) business. As part of the sale transaction, Learning Tree and Educinvest concurrently entered into a license agreement, dated March 3, 2015 (the “License Agreement”). After the closing of the sale transaction, we agreed to provide certain temporary services to Educinvest, including the use of its website and the operational systems in place for a period of two years after the closing date. In connection with the sale transaction, we also agreed that during the term of the License Agreement we will not, without the prior written consent of Educinvest, (i) establish a physical presence in mainland France in competition with the business of LTRE(FR) as carried on as of the closing of the sale transaction or (ii) solicit employees of LTRE(FR), except for persons responding to general recruitment advertisements not specifically targeting LTRE(FR). The sale of LTRE(FR) resulted in a loss on sale of $2,501. This loss plus the results of operations for LTRE(FR) for fiscal years ended October 2, 2015 and October 3, 2014 have been reclassified to the income (loss) from discontinued operations line on the Condensed Consolidated Statements of Operations and Comprehensive Loss presented herein. In addition, historical Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Cash Flow amounts have also been reclassified as discontinued operations. The assets and liabilities classified as discontinued operations in our condensed consolidated balance sheet for the fiscal year ended October 3, 2014 is set forth below. There were no assets or liabilities classified as discontinued operations as of October 2, 2015. The summarized operating results of LTRE(FR) included in our condensed consolidated statement of operations is as follows: October 3, 2014 Assets Current Assets: Cash and cash equivalents $ 1,197 Trade accounts receivable, net 2,700 Other current assets 575 Total current assets 4,472 Equipment, Property and Leasehold Improvements: Property and leasehold improvements 6,453 Less: accumulated depreciation and amortization (5,986 ) 467 Other assets 171 Total long term assets 638 Total assets $ 5,110 Liabilities Current Liabilities: Trade accounts payable $ 1,141 Accrued payroll, benefits and related taxes 1,224 Other accrued liabilities 228 Total current liabilities 2,593 Asset retirement obligations 224 Deferred facilities rent and other 23 Total long term liabilities 247 Total liabilities $ 2,840 Fiscal Year Ended October 2, 2015 October 3, 2014 Revenues $ 3,335 $ 11,191 Cost of revenues 2,046 5,828 Gross profit 1,289 5,363 Operating expenses 1,626 5,298 (Loss) income from operations (337 ) 65 Other (expense) income, net (44 ) 13 Loss from discontinued operations before income taxes (381 ) 78 Income taxes (117 ) 60 $ (264 ) $ 18 Calculation of the loss on disposal of LTRE(FR): (in thousands) Investment in Learning Tree International S.A. $ 1,324 Costs of sale 619 Cumulative translation adjustment realized 558 Loss on sale $ 2,501 |
Note 15 - Restructing Activity
Note 15 - Restructing Activity | 12 Months Ended |
Oct. 02, 2015 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | 15. RESTRUCTURING ACTIVITY In September 2012, we announced a worldwide reduction in force involving approximately 40 employees and recorded a $1,300 charge for employee severance and accelerated depreciation of leasehold improvements. In the first quarter of fiscal year 2013 we closed the Los Angeles, CA office facility. The closure of the office in Los Angeles completed the move of corporate functions to the Reston, VA corporate headquarters. In fiscal year 2013, we recorded a restructuring charge of $1,300 for the estimated liability associated with future rentals due under the property lease as of the cease use date and for employee severance costs for those employees who chose not to relocate to our offices in Virginia. The fair value of the lease liability at the cease use date was determined based on the remaining cash flows for lease rentals, and minimum lease payments, reduced by estimated sublease rentals, discounted using a credit adjusted risk free rate. In June 2014, we re-evaluated the estimated sublease rentals as we have been unable to find a subtenant for the facility. As a result, we recorded an additional $529 restructuring charge in fiscal year 2014. Personnel Facilities Total Balance at September 27, 2013 $ 30 $ 400 $ 430 Additions: Additional lease charge - Los Angeles, CA 0 500 500 Accretion expense 0 100 100 0 600 600 Reductions: Severance payouts (30 ) 0 (30 ) Rent payments net of deferred rent 0 (400 ) (400 ) (30 ) (400 ) (430 ) Balance at October 3, 2014 $ 0 $ 600 $ 600 Additions: Accretion expense 0 50 50 0 50 50 Reductions: Severance 0 0 0 Rent payments net of deferred rent 0 (320 ) (320 ) 0 (320 ) (320 ) Balance at October 2, 2015 $ 0 $ 330 $ 330 |
Note 16 - Subsequent Events
Note 16 - Subsequent Events | 12 Months Ended |
Oct. 02, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 16. SUBSEQUENT EVENTS We have evaluated all events subsequent to the balance sheet date of October 2, 2015 and have determined there are no subsequent events that require disclosure. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 02, 2015 | |
Accounting Policies [Abstract] | |
Nature of Business [Policy Text Block] | a. Nature of the Business Learning Tree International, Inc. and subsidiaries (“we,” “us,” or “our”) develop, market, and deliver a broad proprietary library of instructor-led classroom courses that are designed to meet the professional development needs of information technology (“IT”) professionals and managers worldwide. These courses are delivered primarily at our leased education centers located in the United States, the United Kingdom, Canada, Sweden and Japan. Such course events are also conducted in hotel and conference facilities and at customer sites throughout the world. Almost all of our course titles are also available to individuals located worldwide through Learning Tree AnyWare™, our patent-pending live online learning interface that allows individuals at any location to attend a live instructor-led Learning Tree class via the Internet. Our courses provide both breadth and depth of education across a wide range of technical and management disciplines, including operating systems, databases, computer networks, computer and network security, web development, programming languages, software engineering, open source applications, project management, business skills, and leadership and professional development. We follow a 52- or 53-week fiscal year, with our quarter-end dates on the Friday nearest the end of the calendar quarter and our year-end dates on the Friday nearest the end of September. Accordingly, our fiscal year 2015 ended on October 2, 2015, and our fiscal year 2014 ended on October 3, 2014. Thus, these consolidated financial statements report our consolidated financial position as of October 2, 2015, and October 3, 2014 and the related consolidated statements of operations and comprehensive loss, stockholders’ equity and cash flows for the fiscal years ended October 2, 2015 and October 3, 2014. Fiscal year 2015 was a 52-week year, while fiscal year 2014 was a 53-week year. Certain items in the consolidated financial statements have been reclassified to conform to the current presentation. |
Consolidation, Policy [Policy Text Block] | b. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Learning Tree International, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated. The following is a list of our subsidiaries as of October 2, 2015: Learning Tree International USA, Inc. (U.S.) Learning Tree International, K.K. (Japan) Learning Tree International Ltd. (United Kingdom) Learning Tree International AB (Sweden) Learning Tree International Inc. (Canada) Advanced Technology Marketing, Inc. (U.S.) AnyWare Live, Inc. (U.S.) |
Revenue Recognition, Policy [Policy Text Block] | c. Revenue Recognition and Accounts Receivable Our revenues are received from business entities and government agencies for the professional training of their employees. Course events range in length from one to five days, and average approximately three and a half days. As stated above, we follow a 52- or 53-week fiscal year. This method is used in order to better align our external financial reporting with the way we operate our business. Since all courses have a duration of five days or less, and all courses begin and end within the same calendar week, under the 52- or 53-week fiscal year method all revenues and related direct costs for each course event are recognized in the week and the fiscal quarter in which the event takes place. We offer our customers a multiple-course sales discount referred to as a “Learning Tree Training Passport”. A Learning Tree Training Passport allows an individual Passport holder to attend up to a specified number of Learning Tree courses over a one or two-year period for a fixed price. For a Training Passport, the amount of revenue recognized for each attendance in a course is based upon the selling price of the Training Passport, the list price of the course taken, the weighted average list price of all courses taken and the estimated average number of courses Passport holders will actually attend. Upon expiration of each individual Training Passport, we record the difference, if any, between the revenues previously recognized and that specific Training Passport’s total invoiced price. The estimated attendance rate is based upon the historical experience of the average number of course events that Training Passport holders have been attending. The actual Training Passport attendance rate is reviewed at least semi-annually, and if the Training Passport attendance rates change, the revenue recognition rate for active Training Passports and for Training Passports sold thereafter is adjusted prospectively. We believe it is appropriate to recognize revenues on this basis in order to most closely match revenue and related costs, as the substantial majority of our Passport holders do not attend the maximum number of course events permitted under their Training Passport. We believe that the use of recent historical data is reasonable and appropriate because of the relative stability of the average actual number of course events attended by Passport holders. The average attendance rate for all expired Training Passports has closely approximated the estimated rate we utilize. Although we have seen no material changes in the historical rates as the number of course titles has changed, we monitor such potential effects. In general, determining the estimated average number of course events that will be attended by a Training Passport holder is based on historical trends that may not continue in the future. These estimates could differ in the near term from amounts used in arriving at the reported revenue. If the estimates are wrong, we would record the difference between the revenues previously recognized for that Training Passport and the Training Passport selling price upon expiration of that Training Passport. Thus, the timing of revenue recognition may be affected by an inaccurate estimation, but the inaccuracy would have no effect on the aggregate revenue recognized over the one- to two-year life of each Training Passport. For Passport products for which historical utilization data is not available, we assume that the estimated average number of courses to be attended is equal to the number of courses available on the Passport. Assumed utilization rates may be revised in future periods after sufficient time has passed to amass additional historical trends. In addition to our Learning Tree Training Passports, we also offer a multiple-course sales discount referred to as Learning Tree Training Vouchers. With Learning Tree Training Vouchers, a customer buys the right to send a specified number of attendees to Learning Tree courses over a six to twelve-month period for a fixed price. Revenue is recognized on a pro rata basis for each attendance. For the majority of Training Vouchers with unused seats at the expiration of the Voucher, we record the pro rata selling price of the expired unused seats as revenue. At times we make a business decision to extend a Training Voucher beyond the normal twelve month expiration date. Training Vouchers purchased under government rate schedules have no expiration date. Trade accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. We use estimates in determining the allowance for doubtful accounts receivable based on our analysis of various factors, including our historical collection experience, current trends, specific identification of invoices which are considered doubtful, and a percentage of our past due accounts receivable. These estimates could differ from actual collection experience and are subject to adjustment. Our trade accounts receivable are written off when they are deemed uncollectible. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | d. Stock-Based Compensation We estimate the fair value of share-based option awards on the date of grant using an option-pricing model. We estimate the fair value of share-based restricted stock units and restricted stock grants using the closing price of our stock on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our consolidated statements of operations and comprehensive loss. Our determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by assumptions regarding a number of variables, including our expected stock price volatility, expected term, dividend yield and risk-free interest rates. We analyzed our historical volatility to estimate the expected volatility. The risk-free interest rate assumption is based on the U.S. Treasury rate at the date of grant, which most closely resembles the expected life of our options. The estimated expected life represents the weighted-average period the stock options are expected to remain outstanding and has been determined based on the simplified method under Accounting Standards Codification (“ASC”) 718. We do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. As stock-based compensation expense recognized in the consolidated statements of operations and comprehensive loss is based on awards ultimately expected to vest, it has been reduced for estimated pre-vesting forfeitures. Forfeitures were estimated based on historical experience. |
In Process Research and Development, Policy [Policy Text Block] | e. Course Development Costs Course development costs are charged to operations in the period incurred. |
Advertising Costs, Policy [Policy Text Block] | f. Advertising Advertising costs are charged to expense in the period incurred. Advertising costs totaled $612 and $814 in fiscal years 2015 and 2014, respectively. |
Cash and Cash Equivalents, Policy [Policy Text Block] | g. Cash and Cash Equivalents, Available for Sale Securities, and Interest-bearing Investments We consider highly liquid investments with remaining maturities of ninety days or less when purchased to be cash equivalents. We classify certain of our investments in marketable securities as “available for sale”. We do not have any investments classified as “trading” or “held-to-maturity.” Our policy is to invest cash with issuers that have high credit ratings and to limit the amount of credit exposure to any one issuer. As of October 2, 2015 and October 3, 2014, we had no available for sale securities. Restricted interest-bearing investments at October 2, 2015 consisted of cash deposits of $2,185 (1,439 British Pounds), $184 (1,534 Swedish Krona) and $896 which were pledged as collateral to secure our obligations under leases for education center facilities located in the United Kingdom, Sweden, and the United States, respectively. This compares to restricted interest-bearing investments of cash deposits of $2,297 (1,439 British Pounds), $209 (1,519 Swedish Krona) and $725 at October 3, 2014. The United Kingdom deposits are held in trust by the landlord with interest accruing to us and paid on an annual basis. The deposits will be released to us at the earlier of the end of the lease period or when certain financial ratios have been met. In the United States, the deposit is in an interest bearing restricted account held by our bank and serves as collateral for letters of credit issued to our landlords by our bank. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | h. Marketing Expenses Marketing expenses primarily include the external costs associated with the design, printing, postage, list rental and handling of direct mail advertising materials to be mailed in the future. These costs are charged to expense in the month in which the advertising materials are mailed since the benefit period for such costs is short and the amount of future benefit is not practically measurable. Marketing expenses for fiscal years 2015 and 2014 were $8,942 and $10,413 respectively. |
Property, Plant and Equipment, Preproduction Design and Development Costs [Policy Text Block] | i. Equipment, Property and Leasehold Improvements Equipment, property and leasehold improvements are recorded at cost and depreciated or amortized using the straight-line method over the following estimated useful lives: Education and office equipment (years) 3 to 5 Transportation equipment (years) 4 Accounting software (years) 7 Leasehold improvements 20 years or the life of the lease, if shorter Total depreciation and amortization expense amounted to $4,318 and $5,154 in fiscal years 2015 and 2014, respectively. Costs of normal maintenance and repairs and minor replacements are normally charged to expense as incurred. In those instances where we have determined we are contractually obligated to incur recurring repairs and maintenance costs related to our leased facilities, a provision is made in the financial statements at the earlier of the date the expense is incurred or the date of the obligation. The costs of assets sold or retired are eliminated from the accounts along with the related accumulated depreciation or amortization, and any resulting gain or loss is included in the statements of operations and comprehensive loss. In September 2014, we sold and leased back for one year, our corporate headquarters, located at 1831 Michael Faraday Dr., Reston, Virginia, which is a facility that we currently use for our corporate headquarters, as well as the sales, administrative and operations groups of our United States subsidiary. The Company’s carrying value of the headquarters property at the time of sale was approximately $3,600. The sale and the leaseback were accounted for as separate transactions based on their respective terms since the lease is determined to be minor. As such, we recognized a gain on the sale of $6,322 which is shown on the other operating items line of our consolidated statement of operations and comprehensive loss. The fair value of a liability for an asset retirement obligation (“ARO”) associated with a leased facility is recorded as an asset (leasehold improvements) and a liability when there is a legal obligation associated with the retirement of a long-lived asset and the amount can be reasonably estimated. See also Note 2 relating to AROs. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | j. Long-Lived Assets We periodically review the carrying value of our long-lived assets, such as equipment, property and leasehold improvements for impairment or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In making such evaluations, we compare the expected future cash flows to the carrying amount of the assets. If the total of the expected future cash flows is less than the carrying amount of the assets, we are required to make estimates of the fair value of the long-lived assets in order to calculate the impairment loss equal to the difference between the fair value of the assets and their book value. We make significant assumptions and estimates in this process regarding matters that are inherently uncertain, such as estimating cash flows, remaining useful lives, discount rates and growth rates. The resulting cash flows are computed over an extended period of time, which subjects those assumptions and estimates to an even larger degree of uncertainty. While we believe that our estimates are reasonable, different assumptions regarding such cash flows could materially affect the valuation of long-lived assets. |
Revenue Recognition, Deferred Revenue [Policy Text Block] | k. Deferred Revenues Deferred revenues primarily relate to unearned revenues associated with Training Passports, Training Vouchers and advance payments received from customers for course events to be held in the future. |
Comprehensive Income, Policy [Policy Text Block] | l. Comprehensive loss We report comprehensive income (loss) in the consolidated statements of operations and comprehensive loss. Other comprehensive loss represents changes in stockholders’ equity from non-owner sources and is comprised of foreign currency translation adjustments. At the end of fiscal year 2015, accumulated other comprehensive loss consisted of cumulative foreign currency translation adjustments of $(578) compared to cumulative foreign currency translation adjustments of $(325) in fiscal year 2014. |
Income Tax, Policy [Policy Text Block] | m. Income Taxes We provide for income taxes under the provisions of Financial Accounting Standards Board (“FASB”) ASC 740, Income Taxes The tax effects of uncertain tax positions are recognized in the financial statements only if the position is more likely than not to be sustained on audit, based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized. It is our accounting policy to account for ASC 740-10 related penalties and interest as a component of the income tax provision in the consolidated statements of operations and comprehensive loss. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | n. Foreign Currency We translate the financial statements of our foreign subsidiaries from the local (functional) currencies to U.S. dollars. The rates of exchange at each fiscal year end are used for translating the assets and liabilities and the average monthly rates of exchange for each year are used for the consolidated statements of operations and comprehensive loss. Gains or losses arising from the translation of the foreign subsidiaries’ financial statements are included in the accompanying consolidated balance sheets as a separate component of stockholders’ equity. Gains or losses resulting from foreign currency transactions are included in the consolidated statements of operations and comprehensive loss. To date, we have not sought to hedge the risk associated with fluctuations in currency exchange rates, and therefore we continue to be subject to such risk. |
Deferred Charges, Policy [Policy Text Block] | o. Deferred Facilities Rent Operating Lease Activities: We lease education center and administrative office space under various operating lease agreements. Certain lease agreements include provisions that provide for cash incentives, graduated rent payments and other inducements. We recognize rent expense on a straight-line basis over the related terms of such leases. The value of lease incentives and/or inducements, along with the excess of the rent expense recognized over the rentals paid, is recorded as deferred facilities rent in the accompanying consolidated balance sheets. Lease Termination Activities: We record liabilities for costs that will be incurred under a contract without economic benefit at estimated fair value. We have vacated space in leased facilities subject to operating leases and recorded the estimated liability associated with future rentals at the cease-use date. The fair value of the liability at the cease-use date was determined based on the remaining cash flows for lease rentals, and minimum lease payments, reduced by estimated sublease rentals and certain subtenant reimbursements that could be reasonably obtained for the property, discounted using a credit-adjusted risk-free rate. The liability is adjusted for changes, if any, resulting from revisions to estimated cash flows after the cease-use date, measured using the original historical credit-adjusted risk-free rate. Changes due to the passage of time are recognized as an increase in the carrying amount of the liability and as accretion expense. In September 2012, we announced our intention to close the Los Angeles, CA office facility effective December 2012. Our lease for these facilities runs through April 2016. We recorded a restructuring charge for the estimated liability associated with future rentals due under the property lease as of the cease use date. The fair value of the lease liability at the cease use date was determined based on the remaining cash flows for lease rentals, and minimum lease payments, reduced by estimated sublease rentals, discounted using a credit adjusted risk free rate. In addition, the estimated useful life of leasehold improvements was adjusted for the December 2012 closure date. In June 2014, we re-evaluated the estimated sublease rentals as we have been unable to find a subtenant for the facility. As a result, we recorded an additional $529 restructuring charge in our third quarter of fiscal year 2014. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | p. Fair Value of Financial Instruments The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate their fair values because of the short-term nature of these instruments. |
Use of Estimates, Policy [Policy Text Block] | q. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make judgments, estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | r. Recently Issued Accounting Pronounc ements In April 2014, the FASB issued ASU No. 2014-08, “ Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” Other recent accounting pronouncements issued by the FASB (including the Emerging Issues Task Force), the American Institute of Certified Public Accountants and the SEC did not, or management believes will not, have a material impact on our present or future consolidated financial statements. |
Note 1 - Nature of the Busine24
Note 1 - Nature of the Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 02, 2015 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Education and office equipment (years) 3 to 5 Transportation equipment (years) 4 Accounting software (years) 7 Leasehold improvements 20 years or the life of the lease, if shorter |
Note 2 - Asset Retirement Obl25
Note 2 - Asset Retirement Obligations (Tables) | 12 Months Ended |
Oct. 02, 2015 | |
Notes Tables | |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | Year ended Year ended October 2, 2015 October 3, 2014 ARO balance, beginning of period $ 1,656 $ 1,766 Accretion expense 79 89 Settlement of ARO liability 0 (186 ) Foreign currency translation (66 ) (13 ) ARO balance, end of period $ 1,669 $ 1,656 |
Note 3 - Income Taxes (Tables)
Note 3 - Income Taxes (Tables) | 12 Months Ended |
Oct. 02, 2015 | |
Notes Tables | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Fiscal Year Ended October 2, 2015 October 3, 2014 Domestic $ (10,499 ) $ (1,258 ) Foreign 1,158 1,502 Total $ (9,341 ) $ 244 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Fiscal Year Ended October 2, 2015 October 3, 2014 Current tax provision (benefit): U.S. Federal $ 185 $ 2 State (64 ) (81 ) Foreign 376 485 497 406 Deferred tax provision: U.S. Federal (1 ) (25 ) Foreign (29 ) (120 ) (30 ) (145 ) Provision for income taxes $ 467 $ 261 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Fiscal Year Ended October 2, 2015 Effective Tax rate % October 3, 2014 Effective Tax rate % Income taxes at the U.S. statutory rate $ (3,269 ) 35.0 % $ 109 35.0 % Equity compensation 22 (0.2 ) 171 54.7 Other permanent differences 448 (4.8 ) 230 73.7 Effects of foreign taxes and tax credits (184 ) 2.0 (1,235 ) (395.4 ) State income taxes (363 ) 3.9 (63 ) (20.0 ) Uncertain tax positions 57 (0.6 ) 57 18.1 Change in valuation allowance 3,737 (40.0 ) 1,182 378.5 Other 19 (0.3 ) (190 ) (60.9 ) Total provision for income taxes $ 467 (5.0 ) % $ 261 83.7 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Fiscal Year Ended October 2, 2015 October 3, 2014 Domestic operations: Deferred tax assets: Deferred facilities rent charges $ 1,330 $ 1,946 Deferred revenue 2,092 2,084 Foreign tax credit carryforwards 132 132 Alternative minimum tax credit carryforwards 189 96 Accrued vacation 443 487 Equity compensation 37 16 Depreciation and amortization 2,789 2,331 Other 198 199 Net operating loss 3,912 0 Capital loss 79 0 Deferred tax liabilities: Prepaid expenses (505 ) (313 ) Domestic net deferred tax assets 10,696 6,978 Foreign operations: Deferred tax assets: Depreciation and other 472 485 Deferred tax liabilities: Depreciation and other (134 ) (161 ) Foreign net deferred tax assets 338 324 Domestic and foreign deferred tax assets 11,034 7,302 Valuation allowances (10,692 ) (6,974 ) Net deferred tax assets $ 342 $ 328 |
Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward [Table Text Block] | October 2, 2015 October 3, 2014 Balance, beginning of year $ 606 $ 563 Decreases related to tax positions taken during a prior period (134 ) 0 Increases related to tax positions taken during the current period 0 43 Balance end of year $ 472 $ 606 |
Note 4 - Commitments and Cont27
Note 4 - Commitments and Contingencies (Tables) | 12 Months Ended |
Oct. 02, 2015 | |
Notes Tables | |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Fiscal Year Ending Minimum Lease Payments Less Sublease Proceeds Net Lease Commitments 2016 $ 8,061 $ 44 $ 8,017 2017 7,690 0 7,690 2018 6,185 0 6,185 2019 6,190 0 6,190 2020 5,951 0 5,951 Thereafter 14,111 0 14,111 $ 48,188 $ 44 $ 48,144 |
Note 6 - Stock-Based Compensa28
Note 6 - Stock-Based Compensation (Tables) | 12 Months Ended |
Oct. 02, 2015 | |
Notes Tables | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at September 27, 2013 0 $ 0.00 0.0 $ 0.00 Options granted 200,000 $ 3.85 8.0 $ 0.00 Options exercised 0 $ 0.00 Options forfeited, expired and unearned 0 $ 0.00 Outstanding at October 3, 2014 200,000 $ 3.85 8.0 $ 0.00 Options granted 50,000 $ 1.76 9.6 $ 0.00 Options exercised 0 $ 0.00 Options forfeited, expired and unearned 0 $ 0.00 Outstanding at October 2, 2015 250,000 $ 3.43 8.3 $ 0.00 Vested and expected to vest at October 2, 2015 250,000 $ 3.43 8.3 $ 0.00 Exercisable at October 2, 2015 100,000 $ 3.85 8.0 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Restricted Stock Units Weighted Average Grant Date Fair Value Nonvested at September 27, 2013 9,442 $ 7.29 Granted 0 $ 0.00 Vested (5,742 ) $ 7.93 Forfeited (1,890 ) $ 6.31 Nonvested at October 3, 2014 1,810 $ 6.31 Granted 0 $ 0.00 Vested (1,810 ) $ 6.31 Forfeited 0 $ 0.00 Nonvested at October 2, 2015 0 $ 0.00 |
Note 8 - Income (Loss) Per Sh29
Note 8 - Income (Loss) Per Share (Tables) | 12 Months Ended |
Oct. 02, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Fiscal Year Ended Oct 2, Oct 3, 2015 2014 Numerator: Loss from continuing operations $ (9,808 ) $ (17 ) (Loss) income from discontinued operations (2,765 ) 18 Net (loss) income $ (12,573 ) $ 1 Denominator: Weighted average shares outstanding Basic 13,224 13,222 Effect of dilutive securities 0 2 Diluted $ 13,224 $ 13,224 (Loss) income per common share - basic and diluted: Continuing operations $ (0.74 ) $ (0.00 ) Discontinued operations (0.21 ) 0.00 Basic and diluted loss per share $ (0.95 ) $ 0.00 |
Note 9 - Operating Segment In30
Note 9 - Operating Segment Information (Tables) | 12 Months Ended |
Oct. 02, 2015 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Fiscal Year Ended October 2, 2015 October 3, 2014 Revenues: United States $ 57,787 $ 59,452 Canada 8,752 11,113 North America 66,539 70,565 United Kingdom 22,151 28,009 Sweden 4,232 6,239 Japan 1,962 2,244 Continuing Operations 94,884 107,057 France 3,336 11,191 Discontinuing Operations 3,336 11,191 Total $ 98,220 $ 118,248 Gross profit: United States $ 22,396 $ 22,640 Canada 4,401 6,547 North America 26,797 29,187 United Kingdom 8,422 11,898 Sweden 2,542 3,686 Japan 1,314 1,541 Continuing Operations 39,075 46,312 France 1,289 5,362 Discontinuing Operations 1,289 5,362 Total $ 40,364 $ 51,674 Depreciation and amortization: United States $ 2,818 $ 3,223 Canada 330 298 North America 3,148 3,521 United Kingdom 1,020 1,448 Sweden 134 125 Japan 16 60 Continuing Operations 4,318 5,154 France 191 526 Discontinuing Operations 191 526 Total $ 4,509 $ 5,680 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Fiscal Year Ended October 2, 2015 October 3, 2014 Total assets: United States $ 23,683 $ 36,565 Canada 3,729 3,717 North America 27,412 40,282 United Kingdom 11,789 14,597 Sweden 3,215 4,541 Japan 1,505 1,671 Continuing Operations 43,921 61,091 France 0 5,109 Discontinuing Operations 0 5,109 Total $ 43,921 $ 66,200 Long-lived assets: United States $ 3,266 $ 4,901 Canada 707 456 North America 3,973 5,357 United Kingdom 2,532 3,398 Sweden 179 158 Japan 67 85 Continuing Operations 6,751 8,998 France 0 638 Discontinuing Operations 0 638 Total $ 6,751 $ 9,636 Capital expenditures: United States $ 1,042 $ 864 Canada 669 137 North America 1,711 1,001 United Kingdom 360 415 Sweden 179 24 Japan 5 5 Continuing Operations 2,255 1,445 France 5 148 Discontinuing Operations 5 148 Total $ 2,260 $ 1,593 |
Note 10 - Deferred Facilities31
Note 10 - Deferred Facilities Rent and Other (Tables) | 12 Months Ended |
Oct. 02, 2015 | |
Notes Tables | |
Schedule of Current Portion of Deferred Facilities Rent and Other [Table Text Block] | October 2, October 3, 2015 2014 Deferred rent $ 1,074 $ 1,050 LA lease liability 327 658 $ 1,401 $ 1,708 |
Schedule of Long Term Portion of Deferred Facilities Rent and Other [Table Text Block] | October 2, October 3, 2015 2014 Deferred rent $ 2,575 $ 3,420 LA lease liability 0 301 $ 2,575 $ 3,721 |
Note 11 - Valuation and Quali32
Note 11 - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Oct. 02, 2015 | |
Notes Tables | |
Valuation and Qualifying Accounts [Table Text Block] | October 2 October 3 2015 2014 Beginning balance $ 158 $ 161 Provision for doubtful accounts 63 118 Charges against allowance (64 ) (121 ) Other 3 0 Ending balance $ 160 $ 158 October 2 October 3 2015 2014 Beginning balance $ 6,974 $ 6,198 Provisions 3,718 1,212 Charges against allowance 0 (436 ) Ending balance $ 10,692 $ 6,974 October 2 October 3 2015 2014 Beginning balance $ 959 $ 1,032 Provisions 30 529 Charges against allowance 0 (602 ) Ending balance $ 989 $ 959 |
Note 13 - Quarterly Data (Una33
Note 13 - Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Oct. 02, 2015 | |
Notes Tables | |
Schedule of Quarterly Financial Information [Table Text Block] | Q1 Q2 Q3 Q4 January 2, 2015 April 3, 2015 July 3, 2015 October 2, 2015 Revenues $ 24,400 $ 22,152 $ 22,703 $ 25,629 Cost of revenues 13,726 13,962 14,361 13,760 Gross profit 10,674 8,190 8,342 11,869 Operating expenses: Course development 1,709 2,111 2,575 1,751 Sales and marketing 5,532 6,080 5,387 4,592 General and administrative 4,864 4,991 4,420 4,754 Total operating expenses 12,105 13,182 12,382 11,097 Income (loss) from operations before other operating items (1,431 ) (4,992 ) (4,040 ) 772 Other operating items (6 ) 1 (4 ) 5 Income (loss) from operations (1,437 ) (4,991 ) (4,044 ) 777 Other income, net 227 165 (37 ) (1 ) (Loss) income from continuing operations before provision for income taxes (1,210 ) (4,826 ) (4,081 ) 776 Provision for income taxes 158 52 222 35 Loss from continuing operations $ (1,368 ) $ (4,878 ) $ (4,303 ) $ 741 Discontinued operations (Loss) income from discontinued operations, net of tax 218 (482 ) 0 0 Loss on disposal of discontinued segment 0 (2,501 ) 0 0 (Loss) income from discontinued operations, net of tax 218 (2,983 ) 0 0 Net (loss) income $ (1,150 ) $ (7,861 ) $ (4,303 ) $ 741 Earnings (loss) per share basic and diluted: Continuing operations $ (0.10 ) $ (0.37 ) $ (0.33 ) $ 0.06 Discontinuing operations 0.01 (0.23 ) 0.00 0.00 Basic and diluted loss per share $ (0.09 ) $ (0.60 ) $ (0.33 ) $ 0.06 Q1 Q2 Q3 Q4 January 3, 2014 March 28, 2014 June 27, 2014 October 3, 2014 Revenues $ 28,110 $ 23,184 $ 25,718 $ 30,045 Cost of revenues 15,635 14,488 14,532 16,090 Gross profit 12,475 8,696 11,186 13,955 Operating expenses: Course development 1,851 1,734 1,813 1,827 Sales and marketing 5,362 5,475 5,638 6,315 General and administrative 5,108 5,067 6,599 5,512 Total operating expenses 12,321 12,276 14,050 13,654 Income (loss) from operations before other operating items 154 (3,580 ) (2,864 ) 301 Other operating items 0 12 - 6,310 Income (loss) from operations 154 (3,568 ) (2,864 ) 6,611 Other income, net (36 ) (68 ) 18 (2 ) (Loss) income from continuing operations before provision for income taxes 118 (3,636 ) (2,846 ) 6,609 Provision (benefit) for income taxes 117 274 104 (234 ) Income (loss) from continuing operations $ 1 $ (3,910 ) $ (2,950 ) $ 6,843 Discontinued operations (Loss) income from discontinued operations, net of tax 728 (693 ) 204 (221 ) Loss on disposal of discontinued segment 0 0 0 0 (Loss) income from discontinued operations, net of tax 728 (693 ) 204 (221 ) Net income (loss) $ 729 $ (4,603 ) $ (2,746 ) $ 6,622 Earnings (loss) per share basic and diluted: Continuing operations $ - $ (0.30 ) $ (0.22 ) $ 0.52 Discontinuing operations 0.06 (0.05 ) 0.01 (0.02 ) Basic and diluted loss per share $ 0.06 $ (0.35 ) $ (0.21 ) $ 0.50 |
Note 14 - Discontinued Operat34
Note 14 - Discontinued Operations (Tables) | 12 Months Ended |
Oct. 02, 2015 | |
Notes Tables | |
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Table Text Block] | October 3, 2014 Assets Current Assets: Cash and cash equivalents $ 1,197 Trade accounts receivable, net 2,700 Other current assets 575 Total current assets 4,472 Equipment, Property and Leasehold Improvements: Property and leasehold improvements 6,453 Less: accumulated depreciation and amortization (5,986 ) 467 Other assets 171 Total long term assets 638 Total assets $ 5,110 Liabilities Current Liabilities: Trade accounts payable $ 1,141 Accrued payroll, benefits and related taxes 1,224 Other accrued liabilities 228 Total current liabilities 2,593 Asset retirement obligations 224 Deferred facilities rent and other 23 Total long term liabilities 247 Total liabilities $ 2,840 |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Table Text Block] | Fiscal Year Ended October 2, 2015 October 3, 2014 Revenues $ 3,335 $ 11,191 Cost of revenues 2,046 5,828 Gross profit 1,289 5,363 Operating expenses 1,626 5,298 (Loss) income from operations (337 ) 65 Other (expense) income, net (44 ) 13 Loss from discontinued operations before income taxes (381 ) 78 Income taxes (117 ) 60 $ (264 ) $ 18 |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Calculation of the loss on disposal of LTRE(FR): (in thousands) Investment in Learning Tree International S.A. $ 1,324 Costs of sale 619 Cumulative translation adjustment realized 558 Loss on sale $ 2,501 |
Note 15 - Restructing Activity
Note 15 - Restructing Activity (Tables) | 12 Months Ended |
Oct. 02, 2015 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Personnel Facilities Total Balance at September 27, 2013 $ 30 $ 400 $ 430 Additions: Additional lease charge - Los Angeles, CA 0 500 500 Accretion expense 0 100 100 0 600 600 Reductions: Severance payouts (30 ) 0 (30 ) Rent payments net of deferred rent 0 (400 ) (400 ) (30 ) (400 ) (430 ) Balance at October 3, 2014 $ 0 $ 600 $ 600 Additions: Accretion expense 0 50 50 0 50 50 Reductions: Severance 0 0 0 Rent payments net of deferred rent 0 (320 ) (320 ) 0 (320 ) (320 ) Balance at October 2, 2015 $ 0 $ 330 $ 330 |
Note 1 - Nature of the Busine36
Note 1 - Nature of the Business and Summary of Significant Accounting Policies (Details Textual) £ in Thousands, SEK in Thousands | Sep. 30, 2014USD ($) | Sep. 30, 2012USD ($) | Jun. 27, 2014USD ($) | Jun. 27, 2014USD ($) | Oct. 02, 2015USD ($) | Oct. 03, 2014USD ($) | Sep. 27, 2013USD ($) | Oct. 02, 2015GBP (£) | Oct. 02, 2015SEK | Oct. 03, 2014GBP (£) | Oct. 03, 2014SEK |
Interest-bearing Deposits [Member] | UNITED KINGDOM | |||||||||||
Restricted Cash and Cash Equivalents Pledged as Collateral | $ 2,185,000 | $ 2,297,000 | £ 1,439 | £ 1,439 | |||||||
Interest-bearing Deposits [Member] | SWEDEN | |||||||||||
Restricted Cash and Cash Equivalents Pledged as Collateral | 184,000 | 209,000 | SEK 1,534 | SEK 1,519 | |||||||
Interest-bearing Deposits [Member] | UNITED STATES | |||||||||||
Restricted Cash and Cash Equivalents Pledged as Collateral | 896,000 | 725,000 | |||||||||
Company Headquarters [Member] | |||||||||||
Property, Plant and Equipment, Disposals | $ 3,600,000 | ||||||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | $ 6,322,000 | ||||||||||
Available-for-sale Securities | 0 | $ 0 | |||||||||
Advertising Expense | 612,000 | 814,000 | |||||||||
Marketing Expense | 8,942,000 | 10,413,000 | |||||||||
Depreciation, Depletion and Amortization | 4,318,000 | 5,154,000 | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 578,000 | 325,000 | |||||||||
Restructuring Charges | $ 1,300,000 | $ 529,000 | $ 529,000 | $ 50,000 | $ 600,000 | $ 1,300,000 |
Note 1 - Nature of the Busine37
Note 1 - Nature of the Business and Summary of Significant Accounting Policies - Equipment Property and Leasehold Improvements Estimated Useful Life (Details) | 12 Months Ended |
Oct. 02, 2015 | |
Education and Office Equipment [Member] | Minimum [Member] | |
Education and office equipment (years) | 3 years |
Education and Office Equipment [Member] | Maximum [Member] | |
Education and office equipment (years) | 5 years |
Transportation Equipment [Member] | |
Education and office equipment (years) | 4 years |
Accounting Software [Member] | |
Education and office equipment (years) | 7 years |
Leasehold Improvements [Member] | |
Leasehold improvements | 20 years or the life of the lease, if shorter |
Note 2 - Asset Retirement Obl38
Note 2 - Asset Retirement Obligations - Asset Retirement Obligations Liabilities Activity (Details) - USD ($) | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
ARO balance, beginning of period | $ 1,656,000 | $ 1,766,000 |
Accretion expense | 79,000 | 89,000 |
Settlement of ARO liability | 0 | (186,000) |
Foreign currency translation | (66,000) | (13,000) |
ARO balance, end of period | $ 1,669,000 | $ 1,656,000 |
Note 3 - Income Taxes (Details
Note 3 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 28, 2014 | Oct. 02, 2015 | Oct. 03, 2014 | |
Foreign Tax Authority [Member] | |||
Deferred Tax Assets, Net | $ 342,000 | ||
Release of Uncertain Tax Positions [Member] | |||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 706,000 | $ 656,000 | |
FRANCE | |||
Unrecognized Tax Benefits, Period Increase (Decrease) | (117,000) | ||
SWEDEN | |||
Foreign Earnings Repatriated | $ 1,194,000 | ||
UNITED KINGDOM | |||
Foreign Earnings Repatriated | $ 5,473,000 | ||
Deferred Tax Assets, Net | 342,000 | $ 328,000 | |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 25,000 | ||
Recognized Expense Attributable to Interest for Uncertain Tax Positions | (51,000) | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 772,000 |
Note 3 - Income Taxes - Income
Note 3 - Income Taxes - Income (Loss) Before Provision for Income Taxes (Details) - USD ($) | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
Domestic | $ (10,499,000) | $ (1,258,000) |
Foreign | 1,158,000 | 1,502,000 |
Total | $ (9,341,000) | $ 244,000 |
Note 3 - Income Taxes - Compone
Note 3 - Income Taxes - Components of Provision (Benefit) for Income Taxes (Details) - USD ($) | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
Current tax provision (benefit): | ||
U.S. Federal | $ 185,000 | $ 2,000 |
State | (64,000) | (81,000) |
Foreign | 376,000 | 485,000 |
Current tax provision (benefit) | 497,000 | 406,000 |
Deferred tax provision: | ||
U.S. Federal | (1,000) | (25,000) |
Foreign | (29,000) | (120,000) |
Deferred tax provision | (30,000) | (145,000) |
Provision for income taxes | $ 467,000 | $ 261,000 |
Note 3 - Income Taxes - Reconci
Note 3 - Income Taxes - Reconciliation of the Provision for Income Taxes (Details) - USD ($) | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
Income taxes at the U.S. statutory rate | $ (3,269,000) | $ 109,000 |
Income taxes at the U.S. statutory rate | 35.00% | 35.00% |
Equity compensation | $ 22,000 | $ 171,000 |
Equity compensation | (0.20%) | 54.70% |
Other permanent differences | $ 448,000 | $ 230,000 |
Other permanent differences | (4.80%) | 73.70% |
Effects of foreign taxes and tax credits | $ (184,000) | $ (1,235,000) |
Effects of foreign taxes and tax credits | 2.00% | (395.40%) |
State income taxes | $ (363,000) | $ (63,000) |
State income taxes | 3.90% | (20.00%) |
Uncertain tax positions | $ 57,000 | $ 57,000 |
Uncertain tax positions | (0.60%) | 18.10% |
Change in valuation allowance | $ 3,737,000 | $ 1,182,000 |
Change in valuation allowance | (40.00%) | 378.50% |
Other | $ 19,000 | $ (190,000) |
Other | (0.30%) | (60.90%) |
Provision for income taxes | $ 467,000 | $ 261,000 |
Total provision for income taxes | (5.00%) | 83.70% |
Note 3 - Income Taxes - Deferre
Note 3 - Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($) | Oct. 02, 2015 | Oct. 03, 2014 |
Domestic Tax Authority [Member] | ||
Deferred tax assets: | ||
Deferred facilities rent charges | $ 1,330,000 | $ 1,946,000 |
Deferred revenue | 2,092,000 | 2,084,000 |
Foreign tax credit carryforwards | 132,000 | 132,000 |
Alternative minimum tax credit carryforwards | 189,000 | 96,000 |
Accrued vacation | 443,000 | 487,000 |
Equity compensation | 37,000 | 16,000 |
Depreciation and amortization | 2,789,000 | 2,331,000 |
Other | 198,000 | 199,000 |
Net operating loss | 3,912,000 | 0 |
Capital loss | 79,000 | 0 |
Deferred tax liabilities: | ||
Prepaid expenses | (505,000) | (313,000) |
Domestic net deferred tax assets | 10,696,000 | 6,978,000 |
Foreign Tax Authority [Member] | ||
Deferred tax assets: | ||
Depreciation and other | 472,000 | 485,000 |
Deferred tax liabilities: | ||
Depreciation and other | (134,000) | (161,000) |
Foreign net deferred tax assets | 338,000 | 324,000 |
Domestic and foreign deferred tax assets | 338,000 | 324,000 |
Net deferred tax assets | 342,000 | |
Foreign tax credit carryforwards | 25,000 | |
Foreign net deferred tax assets | 11,034,000 | 7,302,000 |
Domestic and foreign deferred tax assets | 11,034,000 | 7,302,000 |
Valuation allowances | (10,692,000) | (6,974,000) |
Net deferred tax assets | $ 342,000 | $ 328,000 |
Note 3 - Income Taxes - Aggrega
Note 3 - Income Taxes - Aggregate Change in The Balance of Gross Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
Balance, beginning of year | $ 606,000 | $ 563,000 |
Decreases related to tax positions taken during a prior period | (134,000) | 0 |
Increases related to tax positions taken during the current period | 0 | 43,000 |
Balance end of year | $ 472,000 | $ 606,000 |
Note 4 - Commitments and Cont45
Note 4 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
Operating Leases, Rent Expense | $ 9,114 | $ 9,737 |
Operating Leases, Rent Expense, Sublease Rentals | $ 120 | $ 48 |
Note 4 - Commitments And Cont46
Note 4 - Commitments And Contingencies - Future Minimum Lease Payments (Details) | Oct. 02, 2015USD ($) |
Minimum Lease Payments | $ 8,061,000 |
Less Sublease Proceeds | 44,000 |
Net Lease Commitments | 8,017,000 |
Minimum Lease Payments | 7,690,000 |
Less Sublease Proceeds | 0 |
Net Lease Commitments | 7,690,000 |
Minimum Lease Payments | 6,185,000 |
Less Sublease Proceeds | 0 |
Net Lease Commitments | 6,185,000 |
Minimum Lease Payments | 6,190,000 |
Less Sublease Proceeds | 0 |
Net Lease Commitments | 6,190,000 |
Minimum Lease Payments | 5,951,000 |
Less Sublease Proceeds | 0 |
Net Lease Commitments | 5,951,000 |
Minimum Lease Payments | 14,111,000 |
Less Sublease Proceeds | 0 |
Net Lease Commitments | 14,111,000 |
Minimum Lease Payments | 48,188,000 |
Less Sublease Proceeds | 44,000 |
Net Lease Commitments | $ 48,144,000 |
Note 5 - Stockholders' Equity (
Note 5 - Stockholders' Equity (Details Textual) - shares | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
Treasury Stock, Shares, Acquired | 0 | 0 |
Note 6 - Stock-Based Compensa48
Note 6 - Stock-Based Compensation (Details Textual) - USD ($) | 12 Months Ended | |||
Oct. 02, 2015 | Oct. 03, 2014 | Sep. 27, 2013 | Jan. 27, 2007 | |
Employee Stock Option [Member] | ||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 0 | $ 0 | ||
Allocated Share-based Compensation Expense | 72,000 | $ 69,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 158,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 73 days | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 0 | 0 | ||
Restricted Stock Units (RSUs) [Member] | Equity Incentive Plan 2007 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Allocated Share-based Compensation Expense | $ 4,000 | $ 254,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 54,685 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 0 | ||
Equity Incentive Plan 2007 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 | ||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 0 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 8 years 109 days | 8 years | ||
Share-based Compensation Arrangement by Share Based Payment Award Options Estimated Forfeiture Rate | 0.00% |
Note 6 - Stock-Based Compensa49
Note 6 - Stock-Based Compensation - Option Activity (Details) - USD ($) | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
Options granted (in shares) | 50,000 | 200,000 |
Options granted (in dollars per share) | $ 1.76 | $ 3.85 |
Options granted | 9 years 219 days | 8 years |
Options granted | $ 0 | $ 0 |
Outstanding at October 3, 2014 (in shares) | 250,000 | 200,000 |
Outstanding at October 3, 2014 (in dollars per share) | $ 3.43 | $ 3.85 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 8 years 109 days | 8 years |
Outstanding at October 3, 2014 | $ 0 | $ 0 |
Vested and expected to vest at October 2, 2015 (in shares) | 250,000 | |
Vested and expected to vest at October 2, 2015 (in dollars per share) | $ 3.43 | |
Vested and expected to vest at October 2, 2015 | 8 years 109 days | |
Vested and expected to vest at October 2, 2015 | $ 0 | |
Exercisable at October 2, 2015 (in shares) | 100,000 | |
Exercisable at October 2, 2015 (in dollars per share) | $ 3.85 | |
Exercisable at October 2, 2015 | 8 years |
Note 6 - Stock-Based Compensa50
Note 6 - Stock-Based Compensation - Restricted Stock and RSU Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
Nonvested at September 27, 2013 (in shares) | 1,810 | 9,442 |
Nonvested at September 27, 2013 (in dollars per share) | $ 6.31 | $ 7.29 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 0 |
Granted (in dollars per share) | $ 0 | $ 0 |
Vested (in shares) | (1,810) | (5,742) |
Vested (in dollars per share) | $ 6.31 | $ 7.93 |
Forfeited (in shares) | 0 | (1,890) |
Forfeited (in dollars per share) | $ 0 | $ 6.31 |
Nonvested at October 3, 2014 (in shares) | 0 | 1,810 |
Nonvested at October 3, 2014 (in dollars per share) | $ 0 | $ 6.31 |
Note 7 - Employee Benefit Pla51
Note 7 - Employee Benefit Plans (Details Textual) - The Learning Tree International 401K Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
Defined Contribution Plan Employer Contribution as Percentage of Employee Contribution | 30.00% | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 6.00% | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 40 | $ 53 |
Defined Contribution Plan Forfeitures | 229 | 208 |
Defined Contribution Plan, Cost Recognized | $ 470 | $ 587 |
Note 8 - Income (Loss) Per Sh52
Note 8 - Income (Loss) Per Share (Details Textual) - shares | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
Equity Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 250,000 | 200,000 |
Note 8 - Income (Loss) Per Sh53
Note 8 - Income (Loss) Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
Numerator: | ||
Loss from continuing operations | $ (9,808,000) | $ (17,000) |
(Loss) income from discontinued operations, net of tax | (2,765,000) | 18,000 |
Net (loss) income | $ (12,573,000) | $ 1,000 |
Denominator: | ||
Basic (in shares) | 13,224,000 | 13,222,000 |
Effect of dilutive securities (in shares) | 0 | 2,000 |
Diluted (in shares) | 13,224,000 | 13,224,000 |
Earnings (loss) per share basic and diluted: | ||
Continuing operations (in dollars per share) | $ (0.74) | $ 0 |
Discontinued operations (in dollars per share) | (0.21) | 0 |
Basic and diluted loss per share (in dollars per share) | $ (0.95) | $ 0 |
Note 9 - Operating Segment In54
Note 9 - Operating Segment Information (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Jan. 02, 2015 | Oct. 03, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Jan. 03, 2014 | Oct. 02, 2015 | Oct. 03, 2014 | |
Intersegment Sales [Member] | ||||||||||
Revenues | $ 4,049,000 | $ 5,336,000 | ||||||||
Revenues | $ 25,629,000 | $ 22,703,000 | $ 22,152,000 | $ 24,400,000 | $ 30,045,000 | $ 25,718,000 | $ 23,184,000 | $ 28,110,000 | $ 94,884,000 | $ 107,057,000 |
Note 9 - Operating Segment In55
Note 9 - Operating Segment Information - Financial Information by Reportable Segment (Details) - USD ($) | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
UNITED STATES | Continuing Operations [Member] | ||
Revenues: | ||
Revenues | $ 57,787,000 | $ 59,452,000 |
Gross profit: | ||
Gross Profit | 22,396,000 | 22,640,000 |
Depreciation and amortization: | ||
Depreciation, Depletion and Amortization | 2,818,000 | 3,223,000 |
CANADA | Continuing Operations [Member] | ||
Revenues: | ||
Revenues | 8,752,000 | 11,113,000 |
Gross profit: | ||
Gross Profit | 4,401,000 | 6,547,000 |
Depreciation and amortization: | ||
Depreciation, Depletion and Amortization | 330,000 | 298,000 |
North America [Member] | Continuing Operations [Member] | ||
Revenues: | ||
Revenues | 66,539,000 | 70,565,000 |
Gross profit: | ||
Gross Profit | 26,797,000 | 29,187,000 |
Depreciation and amortization: | ||
Depreciation, Depletion and Amortization | 3,148,000 | 3,521,000 |
UNITED KINGDOM | Continuing Operations [Member] | ||
Revenues: | ||
Revenues | 22,151,000 | 28,009,000 |
Gross profit: | ||
Gross Profit | 8,422,000 | 11,898,000 |
Depreciation and amortization: | ||
Depreciation, Depletion and Amortization | 1,020,000 | 1,448,000 |
SWEDEN | Continuing Operations [Member] | ||
Revenues: | ||
Revenues | 4,232,000 | 6,239,000 |
Gross profit: | ||
Gross Profit | 2,542,000 | 3,686,000 |
Depreciation and amortization: | ||
Depreciation, Depletion and Amortization | 134,000 | 125,000 |
JAPAN | Continuing Operations [Member] | ||
Revenues: | ||
Revenues | 1,962,000 | 2,244,000 |
Gross profit: | ||
Gross Profit | 1,314,000 | 1,541,000 |
Depreciation and amortization: | ||
Depreciation, Depletion and Amortization | 16,000 | 60,000 |
FRANCE | Discontinued Operations [Member] | ||
Revenues: | ||
Revenues | 3,336,000 | 11,191,000 |
Gross profit: | ||
Gross Profit | 1,289,000 | 5,362,000 |
Depreciation and amortization: | ||
Depreciation, Depletion and Amortization | 191,000 | 526,000 |
Continuing Operations [Member] | ||
Revenues: | ||
Revenues | 94,884,000 | 107,057,000 |
Gross profit: | ||
Gross Profit | 39,075,000 | 46,312,000 |
Depreciation and amortization: | ||
Depreciation, Depletion and Amortization | 4,318,000 | 5,154,000 |
Discontinued Operations [Member] | ||
Revenues: | ||
Revenues | 3,336,000 | 11,191,000 |
Gross profit: | ||
Gross Profit | 1,289,000 | 5,362,000 |
Depreciation and amortization: | ||
Depreciation, Depletion and Amortization | 191,000 | 526,000 |
Revenues | 94,884,000 | 107,057,000 |
Total-Revenue | 98,220,000 | 118,248,000 |
Gross Profit | 39,075,000 | 46,312,000 |
Total | 40,364,000 | 51,674,000 |
Depreciation, Depletion and Amortization | 4,318,000 | 5,154,000 |
Total-Depreciation and Amortization | $ 4,509,000 | $ 5,680,000 |
Note 9 - Financial Information
Note 9 - Financial Information by Reportable Segment (Details) - USD ($) | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
UNITED STATES | Continuing Operations [Member] | ||
United States | $ 23,683,000 | $ 36,565,000 |
Long-lived assets: | ||
Long-lived assets | 3,266,000 | 4,901,000 |
Capital expenditures: | ||
Capital expenditure | 1,042,000 | 864,000 |
CANADA | Continuing Operations [Member] | ||
United States | 3,729,000 | 3,717,000 |
Long-lived assets: | ||
Long-lived assets | 707,000 | 456,000 |
Capital expenditures: | ||
Capital expenditure | 669,000 | 137,000 |
North America [Member] | Continuing Operations [Member] | ||
United States | 27,412,000 | 40,282,000 |
Long-lived assets: | ||
Long-lived assets | 3,973,000 | 5,357,000 |
Capital expenditures: | ||
Capital expenditure | 1,711,000 | 1,001,000 |
UNITED KINGDOM | Continuing Operations [Member] | ||
United States | 11,789,000 | 14,597,000 |
Long-lived assets: | ||
Long-lived assets | 2,532,000 | 3,398,000 |
Capital expenditures: | ||
Capital expenditure | 360,000 | 415,000 |
SWEDEN | Continuing Operations [Member] | ||
United States | 3,215,000 | 4,541,000 |
Long-lived assets: | ||
Long-lived assets | 179,000 | 158,000 |
Capital expenditures: | ||
Capital expenditure | 179,000 | 24,000 |
JAPAN | Continuing Operations [Member] | ||
United States | 1,505,000 | 1,671,000 |
Long-lived assets: | ||
Long-lived assets | 67,000 | 85,000 |
Capital expenditures: | ||
Capital expenditure | 5,000 | 5,000 |
FRANCE | Discontinued Operations [Member] | ||
United States | 0 | 5,109,000 |
Long-lived assets: | ||
Long-lived assets | 0 | 638,000 |
Capital expenditures: | ||
Capital expenditure | 5,000 | 148,000 |
Continuing Operations [Member] | ||
United States | 43,921,000 | 61,091,000 |
Long-lived assets: | ||
Long-lived assets | 6,751,000 | 8,998,000 |
Capital expenditures: | ||
Capital expenditure | 2,255,000 | 1,445,000 |
Discontinued Operations [Member] | ||
United States | 0 | 5,109,000 |
Long-lived assets: | ||
Long-lived assets | 0 | 638,000 |
Capital expenditures: | ||
Capital expenditure | 5,000 | 148,000 |
United States | 43,921,000 | 66,200,000 |
Long-lived assets | 6,751,000 | 9,636,000 |
Capital expenditure | 2,255,000 | 1,445,000 |
Total-Capital expenditure | $ 2,260,000 | $ 1,593,000 |
Note 10 - Deferred Facilities57
Note 10 - Deferred Facilities Rent And Other - Current Portion of Deferred Facilities Rent and Other (Details) - USD ($) $ in Thousands | Oct. 02, 2015 | Oct. 03, 2014 |
Deferred rent | $ 1,074 | $ 1,050 |
LA lease liability | 327 | 658 |
Current portion | $ 1,401 | $ 1,708 |
Note 10 - Deferred Facilities58
Note 10 - Deferred Facilities Rent And Other - Deferred Facilities Rent and Other (Details) - USD ($) | Oct. 02, 2015 | Oct. 03, 2014 |
Deferred rent | $ 2,575,000 | $ 3,420,000 |
LA lease liability | 0 | 301,000 |
Deferred | $ 2,575,000 | $ 3,721,000 |
Note 11 - Valuation and Quali59
Note 11 - Valuation and Qualifying Accounts - Summary of Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
Allowance for Doubtful Accounts [Member] | ||
Beginning balance | $ 158 | $ 161 |
Provision for doubtful accounts | 63 | 118 |
Charges against allowance | (64) | (121) |
Other | 3 | 0 |
Ending balance | 160 | 158 |
Provisions | 64 | 121 |
Valuation Allowance of Deferred Tax Assets [Member] | ||
Beginning balance | 6,974 | 6,198 |
Charges against allowance | 0 | (436) |
Ending balance | 10,692 | 6,974 |
Provisions | 3,718 | 1,212 |
Provisions | 0 | 436 |
Los Angeles Lease Liability [Member] | ||
Beginning balance | 959 | 1,032 |
Charges against allowance | (30) | (529) |
Ending balance | 989 | 959 |
Provisions | 30 | 529 |
Charges against allowance | 0 | (602) |
Provision for doubtful accounts | $ 63,000 | $ 109,000 |
Note 12 - Related Party Trans60
Note 12 - Related Party Transactions (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
Charitable Donations Monetary | $ 209 | $ 2,015 |
Note 13 - Quarterly Data (Una61
Note 13 - Quarterly Data (Unaudited) (Details Textual) - USD ($) | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
Gain (Loss) on Disposition of Property Plant Equipment | $ (4,000) | $ 6,322,000 |
Note 13 - Quarterly Data (Una62
Note 13 - Quarterly Data (Unaudited) - Quarterly Data (Unaudited) (Details) - USD ($) | Mar. 03, 2015 | Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Jan. 02, 2015 | Oct. 03, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Jan. 03, 2014 | Oct. 02, 2015 | Oct. 03, 2014 |
Revenues | $ 25,629,000 | $ 22,703,000 | $ 22,152,000 | $ 24,400,000 | $ 30,045,000 | $ 25,718,000 | $ 23,184,000 | $ 28,110,000 | $ 94,884,000 | $ 107,057,000 | |
Cost of revenues | 13,760,000 | 14,361,000 | 13,962,000 | 13,726,000 | 16,090,000 | 14,532,000 | 14,488,000 | 15,635,000 | 55,809,000 | 60,745,000 | |
Gross Profit | 11,869,000 | 8,342,000 | 8,190,000 | 10,674,000 | 13,955,000 | 11,186,000 | 8,696,000 | 12,475,000 | 39,075,000 | 46,312,000 | |
Operating expenses: | |||||||||||
Course development | 1,751,000 | 2,575,000 | 2,111,000 | 1,709,000 | 1,827,000 | 1,813,000 | 1,734,000 | 1,851,000 | 8,146,000 | 7,225,000 | |
Sales and marketing | 4,592,000 | 5,387,000 | 6,080,000 | 5,532,000 | 6,315,000 | 5,638,000 | 5,475,000 | 5,362,000 | 21,591,000 | 22,790,000 | |
General and administrative | 4,754,000 | 4,420,000 | 4,991,000 | 4,864,000 | 5,512,000 | 6,599,000 | 5,067,000 | 5,108,000 | 19,029,000 | 22,287,000 | |
Total operating expenses | 11,097,000 | 12,382,000 | 13,182,000 | 12,105,000 | 13,654,000 | 14,050,000 | 12,276,000 | 12,321,000 | 48,766,000 | 52,302,000 | |
Income (loss) from operations before other operating items | 772,000 | (4,040,000) | (4,992,000) | (1,431,000) | 301,000 | $ (2,864,000) | (3,580,000) | 154,000 | (9,691,000) | (5,990,000) | |
Other operating items | 5,000 | (4,000) | 1,000 | (6,000) | 6,310,000 | 12,000 | 0 | (4,000) | 6,322,000 | ||
Income (loss) from operations | 777,000 | (4,044,000) | (4,991,000) | (1,437,000) | 6,611,000 | $ (2,864,000) | (3,568,000) | 154,000 | (9,695,000) | 332,000 | |
Other income, net | (1,000) | (37,000) | 165,000 | 227,000 | (2,000) | 18,000 | (68,000) | (36,000) | 354,000 | (88,000) | |
Total | 776,000 | (4,081,000) | (4,826,000) | (1,210,000) | 6,609,000 | (2,846,000) | (3,636,000) | 118,000 | (9,341,000) | 244,000 | |
Provision for income taxes | 35,000 | 222,000 | 52,000 | 158,000 | (234,000) | 104,000 | 274,000 | 117,000 | 467,000 | 261,000 | |
Loss from continuing operations | 741,000 | (4,303,000) | (4,878,000) | (1,368,000) | 6,843,000 | (2,950,000) | (3,910,000) | 1,000 | (9,808,000) | (17,000) | |
Discontinued operations | |||||||||||
(Loss) income from discontinued operations, net of tax | 0 | 0 | (482,000) | 218,000 | (221,000) | 204,000 | (693,000) | 728,000 | (264,000) | $ 18,000 | |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ 2,501,000 | 0 | 0 | (2,501,000) | 0 | 0 | 0 | 0 | 0 | (2,501,000) | |
(Loss) income from discontinued operations, net of tax | 0 | 0 | (2,983,000) | 218,000 | (221,000) | 204,000 | (693,000) | 728,000 | (2,765,000) | $ 18,000 | |
Net (loss) income | $ 741,000 | $ (4,303,000) | $ (7,861,000) | $ (1,150,000) | $ 6,622,000 | $ (2,746,000) | $ (4,603,000) | $ 729,000 | $ (12,573,000) | $ 1,000 | |
Earnings (loss) per share basic and diluted: | |||||||||||
Continuing operations (in dollars per share) | $ 0.06 | $ (0.33) | $ (0.37) | $ (0.10) | $ 0.52 | $ (0.22) | $ (0.30) | $ (0.74) | $ 0 | ||
Discontinuing operations (in dollars per share) | 0 | 0 | (0.23) | 0.01 | (0.02) | 0.01 | (0.05) | $ 0.06 | (0.21) | 0 | |
Basic and diluted loss per share (in dollars per share) | $ 0.06 | $ (0.33) | $ (0.60) | $ (0.09) | $ 0.50 | $ (0.21) | $ (0.35) | $ 0.06 | $ (0.95) | $ 0 | |
Revenues | $ 25,629,000 | $ 22,703,000 | $ 22,152,000 | $ 24,400,000 | $ 30,045,000 | $ 25,718,000 | $ 23,184,000 | $ 28,110,000 | $ 94,884,000 | $ 107,057,000 | |
Cost of revenues | 13,760,000 | 14,361,000 | 13,962,000 | 13,726,000 | 16,090,000 | 14,532,000 | 14,488,000 | 15,635,000 | 55,809,000 | 60,745,000 | |
Gross Profit | $ 11,869,000 | $ 8,342,000 | $ 8,190,000 | $ 10,674,000 | $ 13,955,000 | $ 11,186,000 | $ 8,696,000 | $ 12,475,000 | $ 39,075,000 | $ 46,312,000 |
Note 14 - Discontinued Operat63
Note 14 - Discontinued Operations (Details Textual) | Mar. 03, 2015USD ($) | Oct. 02, 2015USD ($) | Jul. 03, 2015USD ($) | Apr. 03, 2015USD ($) | Jan. 02, 2015USD ($) | Oct. 03, 2014USD ($) | Jun. 27, 2014USD ($) | Mar. 28, 2014USD ($) | Jan. 03, 2014USD ($) | Oct. 02, 2015USD ($) | Oct. 03, 2014USD ($) | Mar. 03, 2015EUR (€) |
Learning Tree International S.A. [Member] | ||||||||||||
Disposal Group, Including Discontinued Operation, Assets | $ 5,110,000 | $ 5,110,000 | ||||||||||
Disposal Group, Including Discontinued Operation, Liabilities | 2,840,000 | $ 2,840,000 | ||||||||||
Disposal Group, Including Discontinued Operation, Consideration | € | € 1 | |||||||||||
Discontinued Operation, Period of Continuing Involvement after Disposal | 2 years | |||||||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ (2,501,000) | |||||||||||
Disposal Group, Including Discontinued Operation, Assets | $ 0 | |||||||||||
Disposal Group, Including Discontinued Operation, Liabilities | 0 | |||||||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ 2,501,000 | $ 0 | $ 0 | $ (2,501,000) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (2,501,000) |
Note 14 - Discontinued Operat64
Note 14 - Discontinued Operations - Condensed Balance Sheet (Details) | Oct. 03, 2014USD ($) |
Learning Tree International S.A. [Member] | |
Current Assets: | |
Cash and cash equivalents | $ 1,197,000 |
Trade accounts receivable, net | 2,700,000 |
Other current assets | 575,000 |
Total current assets | 4,472,000 |
Equipment, Property and Leasehold Improvements: | |
Property and leasehold improvements | 6,453,000 |
Less: accumulated depreciation and amortization | (5,986,000) |
Equipment, Property and Leasehold Improvements | 467,000 |
Other assets | 171,000 |
Total long term assets | 638,000 |
Total assets | 5,110,000 |
Current Liabilities: | |
Trade accounts payable | 1,141,000 |
Accrued payroll, benefits and related taxes | 1,224,000 |
Other accrued liabilities | 228,000 |
Total current liabilities | 2,593,000 |
Asset retirement obligations | 224,000 |
Deferred facilities rent and other | 23,000 |
Total long term liabilities | 247,000 |
Total liabilities | 2,840,000 |
Total current assets | 4,472,000 |
Total long term assets | 638,000 |
Total current liabilities | 2,593,000 |
Deferred facilities rent and other | 3,721,000 |
Total long term liabilities | $ 247,000 |
Note 14 - Discontinued Operat65
Note 14 - Discontinued Operations - Condensed Income Statement (Details) - USD ($) | 12 Months Ended | |
Oct. 02, 2015 | Oct. 03, 2014 | |
Learning Tree International S.A. [Member] | ||
Revenues | $ 3,335,000 | $ 11,191,000 |
Cost of revenues | 2,046,000 | 5,828,000 |
Gross profit | 1,289,000 | 5,363,000 |
Operating expenses | 1,626,000 | 5,298,000 |
(Loss) income from operations | (337,000) | 65,000 |
Other (expense) income, net | (44,000) | 13,000 |
Loss from discontinued operations before income taxes | (381,000) | 78,000 |
Income taxes | (117,000) | 60,000 |
(Loss) income from discontinued operations, net of tax | (264,000) | 18,000 |
(Loss) income from discontinued operations, net of tax | $ (2,765,000) | $ 18,000 |
Note 14 - Discontinued Operat66
Note 14 - Discontinued Operations - Calculation of the Loss On Disposal (Details) | Mar. 03, 2015USD ($) |
Calculation of the loss on disposal of LTRE(FR): | |
Investment in Learning Tree International S.A. | $ 1,324,000 |
Costs of sale | 619,000 |
Cumulative translation adjustment realized | 558,000 |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ 2,501,000 |
Note 15 - Restructing Activit67
Note 15 - Restructing Activity (Details Textual) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2012USD ($) | Jun. 27, 2014USD ($) | Jun. 27, 2014USD ($) | Oct. 02, 2015USD ($) | Oct. 03, 2014USD ($) | Sep. 27, 2013USD ($) | |
Restructuring and Related Cost, Number of Positions Eliminated | 40 | |||||
Restructuring Charges | $ 1,300,000 | $ 529,000 | $ 529,000 | $ 50,000 | $ 600,000 | $ 1,300,000 |
Note 15 - Restructing Activit68
Note 15 - Restructing Activity - Restructuring Activity (Details) - USD ($) | 12 Months Ended | ||
Oct. 02, 2015 | Oct. 03, 2014 | Sep. 27, 2013 | |
Employee Severance [Member] | Additional Lease Charge [Member] | |||
Additions: | |||
Restructuring Charges | $ 0 | ||
Additions | 0 | ||
Accretion expense | 0 | ||
Employee Severance [Member] | Accretion Expense 1 [Member] | |||
Additions: | |||
Restructuring Charges | $ 0 | 0 | |
Additions | 0 | 0 | |
Accretion expense | 0 | 0 | |
Employee Severance [Member] | Reduction In Force [Member] | |||
Reductions: | |||
Severance payouts | 0 | (30,000) | |
Severance | 0 | 30,000 | |
Employee Severance [Member] | Rent Payments [Member] | |||
Reductions: | |||
Severance payouts | 0 | 0 | |
Severance | 0 | 0 | |
Employee Severance [Member] | |||
Balance | 0 | 30,000 | |
Additions: | |||
Restructuring Charges | 0 | 0 | |
Additions | 0 | 0 | |
Accretion expense | 0 | 0 | |
Reductions: | |||
Severance payouts | 0 | (30,000) | |
Balance | 0 | 0 | $ 30,000 |
Severance | 0 | 30,000 | |
Facility Closing [Member] | Additional Lease Charge [Member] | |||
Additions: | |||
Restructuring Charges | 500,000 | ||
Additions | 500,000 | ||
Accretion expense | 500,000 | ||
Facility Closing [Member] | Accretion Expense 1 [Member] | |||
Additions: | |||
Restructuring Charges | 50,000 | 100,000 | |
Additions | 50,000 | 100,000 | |
Accretion expense | 50,000 | 100,000 | |
Facility Closing [Member] | Reduction In Force [Member] | |||
Reductions: | |||
Severance payouts | 0 | 0 | |
Severance | 0 | 0 | |
Facility Closing [Member] | Rent Payments [Member] | |||
Reductions: | |||
Severance payouts | (320,000) | (400,000) | |
Severance | 320,000 | 400,000 | |
Facility Closing [Member] | |||
Balance | 600,000 | 400,000 | |
Additions: | |||
Restructuring Charges | 50,000 | 600,000 | |
Additions | 50,000 | 600,000 | |
Accretion expense | 50,000 | 600,000 | |
Reductions: | |||
Severance payouts | (320,000) | (400,000) | |
Balance | 330,000 | 600,000 | 400,000 |
Severance | 320,000 | 400,000 | |
Additional Lease Charge [Member] | |||
Additions: | |||
Restructuring Charges | 500,000 | ||
Additions | 500,000 | ||
Accretion expense | 500,000 | ||
Accretion Expense 1 [Member] | |||
Additions: | |||
Restructuring Charges | 50,000 | 100,000 | |
Additions | 50,000 | 100,000 | |
Accretion expense | 50,000 | 100,000 | |
Reduction In Force [Member] | |||
Reductions: | |||
Severance payouts | 0 | (30,000) | |
Severance | 0 | 30,000 | |
Rent Payments [Member] | |||
Reductions: | |||
Severance payouts | (320,000) | (400,000) | |
Severance | 320,000 | 400,000 | |
Balance | 600,000 | 430,000 | |
Restructuring Charges | 50,000 | 600,000 | 1,300,000 |
Additions | 50,000 | 600,000 | 1,300,000 |
Accretion expense | 50,000 | 600,000 | 1,300,000 |
Severance payouts | (320,000) | (430,000) | |
Balance | 330,000 | 600,000 | $ 430,000 |
Severance | $ 320,000 | $ 430,000 |