Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jul. 01, 2016 | Aug. 10, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | LEARNING TREE INTERNATIONAL, INC. | |
Entity Central Index Key | 1,002,037 | |
Trading Symbol | ltre | |
Current Fiscal Year End Date | --09-30 | |
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 | |
Document Type | 10-Q | |
Document Period End Date | Jul. 1, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jul. 01, 2016 | Oct. 02, 2015 |
Assets | ||
Cash and cash equivalents | $ 9,055,000 | $ 17,936,000 |
Trade accounts receivable, net | 9,316,000 | 10,475,000 |
Income tax receivable | 239,000 | 498,000 |
Prepaid expenses | 2,625,000 | 2,773,000 |
Other current assets | 1,505,000 | 1,747,000 |
Total current assets | 22,740,000 | 33,429,000 |
Education and office equipment | 32,000,000 | 33,165,000 |
Transportation equipment | 64,000 | 70,000 |
Property and leasehold improvements | 18,529,000 | 17,931,000 |
50,593,000 | 51,166,000 | |
Less: accumulated depreciation and amortization | (44,600,000) | (45,096,000) |
5,993,000 | 6,070,000 | |
Restricted interest-bearing investments | 2,988,000 | 3,265,000 |
Deferred income taxes | 477,000 | 476,000 |
Other assets | 608,000 | 681,000 |
Total assets | 32,806,000 | 43,921,000 |
Current Liabilities | ||
Trade accounts payable | 5,358,000 | 6,744,000 |
Deferred revenues | 22,710,000 | 22,909,000 |
Accrued payroll, benefits and related taxes | 3,127,000 | 2,865,000 |
Other accrued liabilities | 692,000 | 1,225,000 |
Income taxes payable | 0 | 174,000 |
Current portion of deferred facilities rent and other | 822,000 | 1,401,000 |
Total current liabilities | 32,709,000 | 35,318,000 |
Asset retirement obligations | 1,475,000 | 1,669,000 |
Deferred income taxes | 133,000 | 134,000 |
Deferred facilities rent and other | 4,827,000 | 2,575,000 |
Noncurrent tax liabilities | 1,215,000 | 1,178,000 |
Total liabilities | 40,359,000 | 40,874,000 |
COMMITMENTS AND CONTINGENCIES | ||
Stockholders' (Deficit) 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 issued and outstanding | 1,000 | 1,000 |
Additional paid-in capital | 6,347,000 | 6,224,000 |
Accumulated other comprehensive loss | (821,000) | (578,000) |
Accumulated Deficit | (13,080,000) | (2,600,000) |
Total stockholders' (deficit) equity | (7,553,000) | 3,047,000 |
Total liabilities and stockholders' (deficit) equity | $ 32,806,000 | $ 43,921,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jul. 01, 2016 | Oct. 02, 2015 |
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 | 13,224,349 |
Common stock, outstanding (in shares) | 13,224,349 | 13,224,349 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2016 | Jul. 03, 2015 | Jul. 01, 2016 | Jul. 03, 2015 | |
Revenues | $ 21,073,000 | $ 22,703,000 | $ 59,892,000 | $ 69,255,000 |
Cost of revenues | 13,232,000 | 14,361,000 | 37,745,000 | 42,049,000 |
Gross profit | 7,841,000 | 8,342,000 | 22,147,000 | 27,206,000 |
Operating expenses: | ||||
Course development | 1,354,000 | 2,575,000 | 3,990,000 | 6,395,000 |
Sales and marketing | 4,710,000 | 5,387,000 | 14,219,000 | 16,999,000 |
General and administrative | 4,750,000 | 4,420,000 | 14,408,000 | 14,275,000 |
Operating expenses | 10,814,000 | 12,382,000 | 32,617,000 | 37,669,000 |
Loss from operations | (2,973,000) | (4,040,000) | (10,470,000) | (10,463,000) |
Other income (expense): | ||||
Interest income, net | 6,000 | 16,000 | 21,000 | 27,000 |
Foreign exchange gains (losses) | 147,000 | (52,000) | 157,000 | 336,000 |
Other, net | 41,000 | (5,000) | 7,000 | (17,000) |
Other operating items | 194,000 | (41,000) | 185,000 | 346,000 |
Loss from continuing operations before provision for income taxes | (2,779,000) | (4,081,000) | (10,285,000) | (10,117,000) |
Provision for income taxes | 51,000 | 222,000 | 195,000 | 432,000 |
Loss from continuing operations | (2,830,000) | (4,303,000) | (10,480,000) | (10,549,000) |
Discontinued operations (Note 11) | ||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | (264,000) |
Loss on disposal of discontinued segment | 0 | 0 | 0 | (2,501,000) |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | (2,765,000) |
Net loss | $ (2,830,000) | $ (4,303,000) | $ (10,480,000) | $ (13,314,000) |
Loss per common share - basic and diluted: | ||||
Continuing operations (in dollars per share) | $ (0.21) | $ (0.33) | $ (0.79) | $ (0.80) |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.21) |
Basic and diluted loss per share (in dollars per share) | $ (0.21) | $ (0.33) | $ (0.79) | $ (1.01) |
Denominator: | ||||
Weighted average shares - basic (in shares) | 13,224,000 | 13,224,000 | 13,224,000 | 13,224,000 |
Weighted average shares - diluted (in shares) | 13,224,000 | 13,224,000 | 13,224,000 | 13,224,000 |
Comprehensive loss: | ||||
Net Loss | $ (2,830,000) | $ (4,303,000) | $ (10,480,000) | $ (13,314,000) |
Foreign currency translation adjustments | (113,000) | 251,000 | (243,000) | (93,000) |
Comprehensive loss | $ (2,943,000) | $ (4,052,000) | $ (10,723,000) | $ (13,407,000) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jul. 01, 2016 | Jul. 03, 2015 | |
Leasehold Improvements [Member] | ||
Supplemental non-cash disclosures: | ||
Non-cash leasehold improvements | $ 1,221,000 | $ 0 |
Net Loss | (10,480,000) | (13,314,000) |
Loss on sale | 0 | 2,501,000 |
Loss from discontinued operations, net of tax | 0 | 264,000 |
Loss from continuing operations | (10,480,000) | (10,549,000) |
Depreciation and amortization | 2,159,000 | 3,515,000 |
Share-based compensation | 123,000 | 57,000 |
Deferred income taxes | (37,000) | 103,000 |
Provision for doubtful accounts | 116,000 | 28,000 |
Accretion on asset retirement obligations | 59,000 | 59,000 |
(Gain) loss on disposal of equipment, property and leasehold improvements | (2,000) | 11,000 |
Unrealized foreign exchange gains | (136,000) | (331,000) |
Settlement of asset retirement obligation | (106,000) | 0 |
Trade accounts receivable | 977,000 | 3,497,000 |
Prepaid expenses and other assets | 243,000 | (407,000) |
Income tax receivable / payable | 111,000 | (137,000) |
Trade accounts payable | (1,268,000) | 202,000 |
Deferred revenues | 358,000 | (1,751,000) |
Deferred facilities rent and other | 528,000 | (1,032,000) |
Other accrued liabilities | (336,000) | (2,028,000) |
Net cash used in operating activities of continuing operations | (7,691,000) | (8,763,000) |
Net cash used in operating activities of discontinued operations | 0 | (206,000) |
Net cash used in operating activities | (7,691,000) | (8,969,000) |
Purchases of equipment, property and leasehold improvements | (1,106,000) | (2,260,000) |
Proceeds from sale of equipment, property and leasehold improvements | 2,000 | 20,000 |
Net cash used in investing activities of continuing operations | (1,104,000) | (2,240,000) |
Net cash used in investing activities of discontinued operations | 0 | (745,000) |
Net cash used in investing activities | (1,104,000) | (2,985,000) |
Effects of exchange rate changes on cash and cash equivalents of continuing operations | (86,000) | (196,000) |
Effects of exchange rate changes on cash and cash equivalents of discontinued operations | 0 | (246,000) |
Effects of exchange rate changes on cash and cash equivalents | (86,000) | (442,000) |
Net change in cash and cash equivalents of discontinued operations | 0 | 1,197,000 |
Net decrease in cash and cash equivalents | (8,881,000) | (11,199,000) |
Cash and cash equivalents at the beginning of the period | 17,936,000 | 29,881,000 |
Cash and cash equivalents at the end of the period | $ 9,055,000 | $ 18,682,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Jul. 01, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | NOTE 1—BASIS OF PRESENTATION The accompanying unaudited interim condensed consolidated financial statements of Learning Tree International, Inc. and our subsidiaries (collectively, “Learning Tree,” “we,” “our” or “us”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and, therefore, omit or condense certain note disclosures and other information required by accounting principles generally accepted in the United States of America for complete financial statements. These financial statements should therefore be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended October 2, 2015. We use the 52/53-week fiscal year method to better align our external financial reporting with the manner in which we operate our business. Under this method, each fiscal quarter ends on the Friday closest to the end of the calendar quarter. Accordingly, our third quarter of the current fiscal year ended on July 1, 2016 and encompassed 13 weeks, while our third quarter of the prior fiscal year ended on July 3, 2015 and also encompassed 13 weeks. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, that are only of a normal recurring nature, considered necessary to present fairly our financial position as of July 1, 2016, and our results of operations for the three months and nine months ended July 1, 2016 and July 3, 2015, and our cash flows for the nine months ended July 1, 2016 and July 3, 2015. Certain items in the condensed consolidated financial statements have been reclassified to conform to the current presentation. |
Note 2 - Share-based Compensati
Note 2 - Share-based Compensation | 9 Months Ended |
Jul. 01, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 2—SHARE-BASED COMPENSATION Share-based compensation expense related to grants of employee stock options and restricted stock units was less than $0.1 million for both the three months ended July 1, 2016 and July 3, 2015, and was charged in a manner consistent with the related employee salary costs. Share based compensation expense for the nine month ended July 1, 2016 was $0.1 million compared to less than $0.1 million for the nine months ended July 3, 2015. |
Note 3 - Asset Retirement Oblig
Note 3 - Asset Retirement Obligations | 9 Months Ended |
Jul. 01, 2016 | |
Notes to Financial Statements | |
Asset Retirement Obligation Disclosure [Text Block] | NOTE 3—ASSET RETIREMENT OBLIGATIONS The following table presents the activity for the asset retirement obligations (“ARO”) liabilities from continuing operations, which are primarily related to the restoration of classroom facilities in our Learning Tree Education Centers: Nine months ended July 1, 2016 Year ended October 2, 2015 ARO balance, beginning of period $ 1,669 $ 1,656 Accretion expense 59 79 Settlement of ARO liability (106 ) 0 Foreign currency translation (147 ) (66 ) ARO balance, end of period $ 1,475 $ 1,669 |
Note 4 - Loss Per Share
Note 4 - Loss Per Share | 9 Months Ended |
Jul. 01, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 4—LOSS PER SHARE Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding (which excludes unvested shares of our common stock granted under our 2007 Equity Incentive Plan) during the reporting period. Diluted loss per share is computed similarly to basic loss per share except that the weighted average shares outstanding are increased to include common stock equivalents, to the extent their effect is dilutive. Approximately 850,000 stock options and 250,000 stock options were excluded from the computations of diluted earnings per share for the three and nine month ended July 1, 2016 and July 3, 2015, respectively, because their effect would have been anti-dilutive. The computations for basic and diluted earnings per share are as follows: Three months ended Nine months ended July 1, 2016 July 3, 2015 July 1, 2016 July 3, 2015 Numerator: Loss from continuing operations $ (2,830 ) $ (4,303 ) $ (10,480 ) $ (10,549 ) Loss from discontinued operations 0 - 0 (2,765 ) Net loss $ (2,830 ) $ (4,303 ) $ (10,480 ) $ (13,314 ) Denominator: Weighted average shares outstanding Basic 13,224 13,224 13,224 13,224 Effect of dilutive securities 0 0 0 0 Diluted 13,224 13,224 13,224 13,224 Loss per common share - basic and diluted: Continuing operations $ (0.21 ) $ (0.33 ) $ (0.79 ) $ (0.80 ) Discontinued operations 0 0 0 (0.21 ) Basic and diluted loss per share $ (0.21 ) $ (0.33 ) $ (0.79 ) $ (1.01 ) |
Note 5 - Income Taxes
Note 5 - Income Taxes | 9 Months Ended |
Jul. 01, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 5—INCOME TAXES Our income tax provision for continuing operations was $0.1 million and $0.2 million in our third quarters of fiscal years 2016 and 2015, respectively. Our income tax provision for continuing operations for our first nine months of fiscal year 2016 was $0.2 million, as compared to $0.4 million for the first nine months of fiscal year 2015. Our third quarter and nine months to date 2016 and 2015 tax provisions were comprised primarily of income tax expense for our foreign subsidiaries and an adjustment of our U.S. income tax expense for fiscal year 2015 to reflect a true up of the actual return to provision estimates. The Company established a valuation allowance against deferred tax assets in the U.S. in the third quarter of fiscal year 2012 and has continued to maintain a full valuation allowance in the U.S. through the third quarter of fiscal year 2016. |
Note 6 - Commitments and Contin
Note 6 - Commitments and Contingencies | 9 Months Ended |
Jul. 01, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 6—COMMITMENTS AND CONTINGENCIES Contingencies Currently, and from time to time, we are involved in litigation incidental to the conduct of our business. We are not a party to any lawsuit or legal proceeding that, in the opinion of management, is likely to have a material adverse effect on our consolidated financial position or results of operations. |
Note 7 - Segment Reporting
Note 7 - Segment Reporting | 9 Months Ended |
Jul. 01, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 7—SEGMENT REPORTING Our worldwide operations involve the design and delivery of instructor-led classroom training courses and related services to multinational companies and government entities. The training and education we offer is presented in a consistent manner in every country in which we operate. Our instructors present our courses in a virtually identical fashion worldwide, regardless of whether presented in leased classroom space or external facilities, the content of the class being taught or the location or method of distribution. No one commercial customer or government agency accounted for 10% or more of our revenues in the three and nine month ended July 1, 2016 or July 3, 2015. We conduct and manage our business globally and have reportable segments that operate in five countries: the United States, Canada, the United Kingdom, Sweden and Japan. Summarized financial information by country for the three months and nine months ended July 1, 2016 and July 3, 2015 from continuing operations are as follows: Three months ended Nine months ended July 1, 2016 July 3, 2015 July 1, 2016 July 3, 2015 Revenues: United States $ 14,020 $ 15,147 $ 36,985 $ 40,621 Canada 1,549 1,392 5,994 6,681 North America 15,569 16,539 42,979 47,302 United Kingdom 3,899 4,878 12,763 16,831 Sweden 867 822 2,457 3,770 Japan 738 464 1,693 1,352 Total $ 21,073 $ 22,703 $ 59,892 $ 69,255 Gross profit: United States $ 5,402 $ 5,464 $ 13,227 $ 14,211 Canada 414 594 2,495 3,399 North America 5,816 6,058 15,722 17,610 United Kingdom 1,030 1,580 3,943 6,357 Sweden 459 393 1,290 2,354 Japan 536 311 1,192 885 Total $ 7,841 $ 8,342 $ 22,147 $ 27,206 July 1, 2016 July 3, 2015 Total assets: United States $ 15,481 $ 23,254 Canada 3,517 3,859 North America 18,998 27,113 United Kingdom 8,815 12,604 Sweden 2,953 3,591 Japan 2,040 1,489 Total $ 32,806 $ 44,797 |
Note 8 - Fair Value Measurement
Note 8 - Fair Value Measurements | 9 Months Ended |
Jul. 01, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE 8—FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal market for the asset or liability, or in the absence of a principal market, the most advantageous market for the asset or liability. The fair value is measured using assumptions that market participants would use, including assumptions about nonperformance risk and credit risk. ASC 820 establishes a fair value hierarchy for valuation inputs and prioritizes them based on the extent to which the inputs are observable in the marketplace. Categorization is based on the lowest level of input that is available and significant to the measurement. These levels are: Level 1—Quoted prices in active markets for identical assets and liabilities. Level 2—Observable inputs other than quoted prices in active markets, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs. Level 3—Unobservable inputs that reflect management’s assumptions about the estimates and risks that market participants would use in pricing the asset or liability. Non-Financial Liabilities Measured at Fair Value on a Nonrecurring Basis We measure our ARO liabilities at fair value on a nonrecurring basis when we believe there has been an indication the fair value has changed. We did not adjust the values of those liabilities during the three months and nine months ended July 1, 2016 and July 3, 2015. |
Note 9 - Deferred Facilities Re
Note 9 - Deferred Facilities Rent and Other | 9 Months Ended |
Jul. 01, 2016 | |
Notes to Financial Statements | |
Deferred Facilities Rent and Other [Text Block] | NOTE 9—DEFERRED FACILITIES RENT AND OTHER Deferred Facilities Rent and Other The following tables show details of the following line items in our consolidated balance sheets. Current Portion of Deferred Facilities Rent and Other July 1, 2016 October 2, 2015 Deferred rent $ 822 $ 1,074 LA lease liability 0 327 $ 822 $ 1,401 Deferred Facilities Rent and Other July 1, 2016 October 2, 2015 Deferred rent $ 4,827 $ 2,575 $ 4,827 $ 2,575 |
Note 10 - Recent Accounting Pro
Note 10 - Recent Accounting Pronouncements | 9 Months Ended |
Jul. 01, 2016 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | NOTE 10—RECENT ACCOUNTING PRONOUNCEMENTS In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, “ Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) In November 2015, the FASB issued ASU No. 2015-17, “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In May 2014, the FASB issued ASU No. 2014-09, " Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In August 2014, the FASB issued 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 11 - Discontinued Operatio
Note 11 - Discontinued Operations | 9 Months Ended |
Jul. 01, 2016 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE 11—DISCONTINUED OPERATIONS On March 3, 2015, we entered into an Agreement (“Agreement”) to sell our subsidiary in France, Learning Tree International S. A. (“LTRE(FR)”), to Educinvest SPRL (“Educinvest”) for consideration of € 1 (One Euro) (“Sale Transaction”). 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, the Company 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 $2.5 million. This loss plus the results of operations for LTRE(FR) for the three and nine months ended July 3, 2015 have been reclassified to the 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 for LTRE(FR) at and for the three and nine months ended July 3, 2015 have also been reclassified as discontinued operations. 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 The summarized operating results of LTRE(FR) included in our Condensed Consolidated Statements of Operations and Comprehensive Loss are as follows: Three months ended Nine months ended July 1, 2016 July 3, 2015 July 1, 2016 July 3, 2015 Revenues $ 0 $ 0 $ 0 $ 3,335 Cost of revenues 0 0 0 2,046 Gross profit 0 0 0 1,289 Operating expenses 0 0 0 1,626 Loss from operations 0 0 0 (337 ) Other (expense) income, net 0 0 0 (44 ) Loss from discontinued operations before income taxes 0 0 0 (381 ) Income taxes 0 0 0 117 Loss from discontinued operations, net of tax $ 0 $ 0 $ 0 $ (264 ) |
Note 12 - Subsequent Events
Note 12 - Subsequent Events | 9 Months Ended |
Jul. 01, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 12—SUBSEQUENT EVENTS We have accelerated our comprehensive cost reduction program with the goal of significantly reducing our fiscal year 2017 overall expenses in the range of $11.0 to $12.0 million when compared to the Company's expenses for fiscal year 2016. These targeted cost reductions have been initiated to right-size the Company’s operations, modernize its business operations to meet customer demand and preserve capital. In order to implement these cost reductions for the 2017 fiscal year, we have taken or are taking the following steps: ● Eliminating our direct mail course catalog advertising program effective immediately. Besides being a “green initiative”, we believe that our overall customer-base has shifted the manner in which it selects and purchases courses away from printed catalogs toward greater use of digital channels, such as website, social media and digital advertising. ● Making our course notes available electronically and only producing a paper copy if requested by our attendee. ● Reduced staffing in North America by 26 full time equivalent employees. ● Reduced the compensation paid to our Board of Directors, effective immediately, which our directors unanimously agreed to do as part of our cost reduction program. ● Reducing our real estate costs, which will begin with our Education Center lease in the Chicago area that is expiring. As other facility leases expire, additional cost reductions will be evaluated. As part of this program, Learning Tree will continue to review and take appropriate actions to streamline its operations in order to reduce or eliminate excess costs. We have evaluated all events subsequent to the balance sheet date of July 1, 2016 through the date these condensed consolidated financial statements were filed with the SEC, and have determined that there are no other subsequent events to be disclosed. |
Note 3 - Asset Retirement Obl18
Note 3 - Asset Retirement Obligations (Tables) | 9 Months Ended |
Jul. 01, 2016 | |
Notes Tables | |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | Nine months ended July 1, 2016 Year ended October 2, 2015 ARO balance, beginning of period $ 1,669 $ 1,656 Accretion expense 59 79 Settlement of ARO liability (106 ) 0 Foreign currency translation (147 ) (66 ) ARO balance, end of period $ 1,475 $ 1,669 |
Note 4 - Loss Per Share (Tables
Note 4 - Loss Per Share (Tables) | 9 Months Ended |
Jul. 01, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Nine months ended July 1, 2016 July 3, 2015 July 1, 2016 July 3, 2015 Numerator: Loss from continuing operations $ (2,830 ) $ (4,303 ) $ (10,480 ) $ (10,549 ) Loss from discontinued operations 0 - 0 (2,765 ) Net loss $ (2,830 ) $ (4,303 ) $ (10,480 ) $ (13,314 ) Denominator: Weighted average shares outstanding Basic 13,224 13,224 13,224 13,224 Effect of dilutive securities 0 0 0 0 Diluted 13,224 13,224 13,224 13,224 Loss per common share - basic and diluted: Continuing operations $ (0.21 ) $ (0.33 ) $ (0.79 ) $ (0.80 ) Discontinued operations 0 0 0 (0.21 ) Basic and diluted loss per share $ (0.21 ) $ (0.33 ) $ (0.79 ) $ (1.01 ) |
Note 7 - Segment Reporting (Tab
Note 7 - Segment Reporting (Tables) | 9 Months Ended |
Jul. 01, 2016 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three months ended Nine months ended July 1, 2016 July 3, 2015 July 1, 2016 July 3, 2015 Revenues: United States $ 14,020 $ 15,147 $ 36,985 $ 40,621 Canada 1,549 1,392 5,994 6,681 North America 15,569 16,539 42,979 47,302 United Kingdom 3,899 4,878 12,763 16,831 Sweden 867 822 2,457 3,770 Japan 738 464 1,693 1,352 Total $ 21,073 $ 22,703 $ 59,892 $ 69,255 Gross profit: United States $ 5,402 $ 5,464 $ 13,227 $ 14,211 Canada 414 594 2,495 3,399 North America 5,816 6,058 15,722 17,610 United Kingdom 1,030 1,580 3,943 6,357 Sweden 459 393 1,290 2,354 Japan 536 311 1,192 885 Total $ 7,841 $ 8,342 $ 22,147 $ 27,206 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | July 1, 2016 July 3, 2015 Total assets: United States $ 15,481 $ 23,254 Canada 3,517 3,859 North America 18,998 27,113 United Kingdom 8,815 12,604 Sweden 2,953 3,591 Japan 2,040 1,489 Total $ 32,806 $ 44,797 |
Note 9 - Deferred Facilities 21
Note 9 - Deferred Facilities Rent and Other (Tables) | 9 Months Ended |
Jul. 01, 2016 | |
Notes Tables | |
Schedule of Current Portion of Deferred Facilities Rent and Other [Table Text Block] | July 1, 2016 October 2, 2015 Deferred rent $ 822 $ 1,074 LA lease liability 0 327 $ 822 $ 1,401 |
Schedule of Long Term Portion of Deferred Facilities Rent and Other [Table Text Block] | July 1, 2016 October 2, 2015 Deferred rent $ 4,827 $ 2,575 $ 4,827 $ 2,575 |
Note 11 - Discontinued Operat22
Note 11 - Discontinued Operations (Tables) | 9 Months Ended |
Jul. 01, 2016 | |
Notes Tables | |
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 |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Table Text Block] | Three months ended Nine months ended July 1, 2016 July 3, 2015 July 1, 2016 July 3, 2015 Revenues $ 0 $ 0 $ 0 $ 3,335 Cost of revenues 0 0 0 2,046 Gross profit 0 0 0 1,289 Operating expenses 0 0 0 1,626 Loss from operations 0 0 0 (337 ) Other (expense) income, net 0 0 0 (44 ) Loss from discontinued operations before income taxes 0 0 0 (381 ) Income taxes 0 0 0 117 Loss from discontinued operations, net of tax $ 0 $ 0 $ 0 $ (264 ) |
Note 2 - Share-based Compensa23
Note 2 - Share-based Compensation (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2016 | Jul. 03, 2015 | Jul. 01, 2016 | Jul. 03, 2015 | |
Allocated Share-based Compensation Expense | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 |
Note 3 - Asset Retirement Obl24
Note 3 - Asset Retirement Obligations Liabilities Activity (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Jul. 01, 2016 | Jul. 03, 2015 | Oct. 02, 2015 | |
ARO balance, beginning of period | $ 1,669,000 | $ 1,656,000 | $ 1,656,000 |
Accretion on asset retirement obligations | 59,000 | $ 59,000 | 79,000 |
Settlement of ARO liability | (106,000) | 0 | |
Foreign currency translation | (147,000) | (66,000) | |
ARO balance, end of period | $ 1,475,000 | $ 1,669,000 |
Note 4 - Loss Per Share (Detail
Note 4 - Loss Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2016 | Jul. 03, 2015 | Jul. 01, 2016 | Jul. 03, 2015 | |
Equity Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 850,000 | 250,000 | 850,000 | 250,000 |
Note 4 - Basic and Diluted Earn
Note 4 - Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2016 | Jul. 03, 2015 | Jul. 01, 2016 | Jul. 03, 2015 | |
Numerator: | ||||
Loss from continuing operations | $ (2,830,000) | $ (4,303,000) | $ (10,480,000) | $ (10,549,000) |
Loss from discontinued operations | 0 | 0 | 0 | (2,765,000) |
Net loss | $ (2,830,000) | $ (4,303,000) | $ (10,480,000) | $ (13,314,000) |
Denominator: | ||||
Basic (in shares) | 13,224,000 | 13,224,000 | 13,224,000 | 13,224,000 |
Effect of dilutive securities (in shares) | 0 | 0 | 0 | 0 |
Diluted (in shares) | 13,224,000 | 13,224,000 | 13,224,000 | 13,224,000 |
Loss per common share - basic and diluted: | ||||
Continuing operations (in dollars per share) | $ (0.21) | $ (0.33) | $ (0.79) | $ (0.80) |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.21) |
Basic and diluted loss per share (in dollars per share) | $ (0.21) | $ (0.33) | $ (0.79) | $ (1.01) |
Note 5 - Income Taxes (Details
Note 5 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2016 | Jul. 03, 2015 | Jul. 01, 2016 | Jul. 03, 2015 | |
Income Tax Expense (Benefit) | $ 51,000 | $ 222,000 | $ 195,000 | $ 432,000 |
Note 7 - Segment Reporting (Det
Note 7 - Segment Reporting (Details Textual) | Jul. 01, 2016 |
Number of Countries in which Entity Operates | 5 |
Note 7 - Financial Information
Note 7 - Financial Information by Reportable Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2016 | Jul. 03, 2015 | Jul. 01, 2016 | Jul. 03, 2015 | |
UNITED STATES | Continuing Operations [Member] | ||||
Revenues: | ||||
Revenues | $ 14,020,000 | $ 15,147,000 | $ 36,985,000 | $ 40,621,000 |
Gross profit: | ||||
Gross Profit | 5,402,000 | 5,464,000 | 13,227,000 | 14,211,000 |
CANADA | Continuing Operations [Member] | ||||
Revenues: | ||||
Revenues | 1,549,000 | 1,392,000 | 5,994,000 | 6,681,000 |
Gross profit: | ||||
Gross Profit | 414,000 | 594,000 | 2,495,000 | 3,399,000 |
North America [Member] | Continuing Operations [Member] | ||||
Revenues: | ||||
Revenues | 15,569,000 | 16,539,000 | 42,979,000 | 47,302,000 |
Gross profit: | ||||
Gross Profit | 5,816,000 | 6,058,000 | 15,722,000 | 17,610,000 |
UNITED KINGDOM | Continuing Operations [Member] | ||||
Revenues: | ||||
Revenues | 3,899,000 | 4,878,000 | 12,763,000 | 16,831,000 |
Gross profit: | ||||
Gross Profit | 1,030,000 | 1,580,000 | 3,943,000 | 6,357,000 |
SWEDEN | Continuing Operations [Member] | ||||
Revenues: | ||||
Revenues | 867,000 | 822,000 | 2,457,000 | 3,770,000 |
Gross profit: | ||||
Gross Profit | 459,000 | 393,000 | 1,290,000 | 2,354,000 |
JAPAN | Continuing Operations [Member] | ||||
Revenues: | ||||
Revenues | 738,000 | 464,000 | 1,693,000 | 1,352,000 |
Gross profit: | ||||
Gross Profit | 536,000 | 311,000 | 1,192,000 | 885,000 |
Revenues | 21,073,000 | 22,703,000 | 59,892,000 | 69,255,000 |
Total-Revenue | 21,073,000 | 22,703,000 | 59,892,000 | 69,255,000 |
Gross Profit | 7,841,000 | 8,342,000 | 22,147,000 | 27,206,000 |
Total | $ 7,841,000 | $ 8,342,000 | $ 22,147,000 | $ 27,206,000 |
Note 7 - Assets (Details)
Note 7 - Assets (Details) - USD ($) | Jul. 01, 2016 | Oct. 02, 2015 | Jul. 03, 2015 |
UNITED STATES | Continuing Operations [Member] | |||
Assets | $ 15,481,000 | $ 23,254,000 | |
CANADA | Continuing Operations [Member] | |||
Assets | 3,517,000 | 3,859,000 | |
North America [Member] | Continuing Operations [Member] | |||
Assets | 18,998,000 | 27,113,000 | |
UNITED KINGDOM | Continuing Operations [Member] | |||
Assets | 8,815,000 | 12,604,000 | |
SWEDEN | Continuing Operations [Member] | |||
Assets | 2,953,000 | 3,591,000 | |
JAPAN | Continuing Operations [Member] | |||
Assets | 2,040,000 | 1,489,000 | |
Assets | $ 32,806,000 | $ 43,921,000 | $ 44,797,000 |
Note 9 - Current Portion of Def
Note 9 - Current Portion of Deferred Facilities Rent and Other (Details) - USD ($) | Jul. 01, 2016 | Oct. 02, 2015 |
Deferred rent | $ 822,000 | $ 1,074,000 |
LA lease liability | 0 | 327,000 |
Current portion | $ 822,000 | $ 1,401,000 |
Note 9 - Deferred Facilities 32
Note 9 - Deferred Facilities Rent and Other (Details) - USD ($) $ in Thousands | Jul. 01, 2016 | Oct. 02, 2015 |
Deferred rent | $ 4,827 | $ 2,575 |
Deferred | $ 4,827 | $ 2,575 |
Note 11 - Discontinued Operat33
Note 11 - Discontinued Operations (Details Textual) | Mar. 03, 2015USD ($) | Jul. 01, 2016USD ($) | Jul. 03, 2015USD ($) | Jul. 01, 2016USD ($) | Jul. 03, 2015USD ($) | Mar. 03, 2015EUR (€) |
Learning Tree International S.A. [Member] | ||||||
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) | |||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ 0 | $ 0 | $ 0 | $ (2,501,000) |
Note 11 - Calculation of the Lo
Note 11 - Calculation of the Loss On Disposal (Details) - USD ($) | Mar. 03, 2015 | Jul. 01, 2016 | Jul. 03, 2015 | Jul. 01, 2016 | Jul. 03, 2015 |
Learning Tree International S.A. [Member] | |||||
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 | ||||
Loss on sale | $ 2,501,000 | ||||
Loss on sale | $ 0 | $ 0 | $ 0 | $ 2,501,000 |
Note 11 - Condensed Income Stat
Note 11 - Condensed Income Statement (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2016 | Jul. 03, 2015 | Jul. 01, 2016 | Jul. 03, 2015 | |
Learning Tree International S.A. [Member] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 3,335,000 |
Cost of revenues | 0 | 0 | 0 | 2,046,000 |
Gross profit | 0 | 0 | 0 | 1,289,000 |
Operating expenses | 0 | 0 | 0 | 1,626,000 |
Loss from operations | 0 | 0 | 0 | (337,000) |
Other (expense) income, net | 0 | 0 | 0 | (44,000) |
Loss from discontinued operations before income taxes | 0 | 0 | 0 | (381,000) |
Income taxes | 0 | 0 | 0 | 117,000 |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | (264,000) |
Loss from discontinued operations, net of tax | $ 0 | $ 0 | $ 0 | $ (2,765,000) |
Note 12 - Subsequent Events (De
Note 12 - Subsequent Events (Details Textual) - Subsequent Event [Member] $ in Millions | Aug. 15, 2016USD ($) |
Minimum [Member] | |
Annual Overall Costs, Targeted Reduction Amount | $ 11 |
Maximum [Member] | |
Annual Overall Costs, Targeted Reduction Amount | $ 12 |
North America [Member] | |
Restructuring and Related Cost, Number of Positions Eliminated | 26 |