Document and Entity Information
Document and Entity Information - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Jan. 29, 2016 | |
Document Documentand Entity Information [Abstract] | ||
Entity Registrant Name | UNIVERSAL TECHNICAL INSTITUTE INC. | |
Entity Central Index Key | 1,261,654 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 24,234,487 | |
Trading Symbol | UTI | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 32,443 | $ 29,438 |
Restricted cash | 4,796 | 5,824 |
Investments, current portion | 19,076 | 28,086 |
Receivables, net | 22,991 | 22,409 |
Deferred tax assets, net | 4,811 | 4,539 |
Prepaid expenses and other current assets | 19,238 | 17,761 |
Total current assets | 103,355 | 108,057 |
Investments, less current portion | 975 | 1,719 |
Property and equipment, net | 121,109 | 124,144 |
Goodwill | 8,222 | 8,222 |
Deferred tax assets, net | 19,634 | 20,248 |
Other assets | 11,904 | 11,912 |
Total assets | 265,199 | 274,302 |
Current liabilities: | ||
Accounts payable and accrued expenses | 35,659 | 42,620 |
Dividends Payable | 0 | 485 |
Deferred revenue | 46,303 | 44,693 |
Accrued tool sets | 3,556 | 3,624 |
Financing obligation, current | 780 | 737 |
Income tax payable | 0 | 1,187 |
Other current liabilities | 2,966 | 3,148 |
Total current liabilities | 89,264 | 96,494 |
Deferred rent liability | 10,373 | 10,822 |
Financing obligation | 43,841 | 44,053 |
Other liabilities | 9,502 | 9,458 |
Total liabilities | $ 152,980 | $ 160,827 |
Commitments and contingencies (Note 9) | ||
Shareholders' equity: | ||
Common stock, $0.0001 par value, 100,000,000 shares authorized, 31,099,384 shares issued and 24,234,487 shares outstanding as of December 31, 2015 and 31,098,193 shares issued and 24,233,296 shares outstanding as of September 30, 2015 | $ 3 | $ 3 |
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; 0 shares issued and outstanding | 0 | 0 |
Paid-in capital | 179,112 | 178,202 |
Treasury stock, at cost, 6,864,897 shares as of December 31, 2015 and September 30, 2015 | (97,388) | (97,388) |
Retained earnings | 30,473 | 32,638 |
Accumulated other comprehensive income | 19 | 20 |
Total shareholders' equity | 112,219 | 113,475 |
Total liabilities and shareholders' equity | $ 265,199 | $ 274,302 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Sep. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 31,099,384 | 31,098,193 |
Common stock, shares outstanding | 24,234,487 | 24,233,296 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, at cost | 6,864,897 | 6,864,897 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Revenues | $ 89,773 | $ 95,680 |
Operating expenses: | ||
Educational services and facilities | 49,652 | 47,830 |
Selling, general and administrative | 42,314 | 42,250 |
Total operating expenses | 91,966 | 90,080 |
Income (loss) from operations | (2,193) | 5,600 |
Other (expense) income: | ||
Interest expense, net | (817) | (499) |
Equity in earnings of unconsolidated affiliate | 135 | 118 |
Other income | 254 | 112 |
Total other (expense) income, net | (428) | (269) |
Income (loss) before income taxes | (2,621) | 5,331 |
Income tax expense (benefit) | (941) | 2,237 |
Net income (loss) | (1,680) | 3,094 |
Equity interest in investee's unrealized gains on hedging derivatives, net of taxes | (1) | 11 |
Comprehensive income (loss) | $ (1,681) | $ 3,105 |
Earnings per share: | ||
Net income (loss) per share - basic | $ (0.07) | $ 0.12 |
Net income (loss) per share - diluted | $ (0.07) | $ 0.12 |
Weighted average number of shares outstanding: | ||
Basic (shares) | 24,234 | 24,827 |
Diluted (shares) | 24,234 | 24,926 |
Cash dividends declared per common share | $ 0.02 | $ 0.10 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - 3 months ended Dec. 31, 2015 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings |
Beginning Balance, shares at Sep. 30, 2015 | 31,098 | 6,865 | ||||
Beginning Balance at Sep. 30, 2015 | $ 113,475 | $ 3 | $ 178,202 | $ (97,388) | $ 20 | $ 32,638 |
Net loss | (1,680) | (1,680) | ||||
Issuance of common stock under employee plans, shares | 1 | |||||
Issuance of common stock under employee plans | 0 | $ 0 | 0 | |||
Shares withheld for payroll taxes, shares | 0 | |||||
Shares withheld for payroll taxes | (2) | $ 0 | (2) | |||
Stock-based compensation | 912 | 912 | ||||
Cash dividends declared | (485) | $ (1,000) | (485) | |||
Equity interest in investee's unrealized gains on hedging derivatives, net of taxes | (1) | |||||
Ending Balance, shares at Dec. 31, 2015 | 31,099 | 6,865 | ||||
Ending Balance at Dec. 31, 2015 | $ 112,219 | $ 3 | $ 179,112 | $ (97,388) | $ 19 | $ 30,473 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (1,680) | $ 3,094 |
Depreciation and amortization | 3,582 | 4,482 |
Amortization of assets subject to financing obligation | 801 | 468 |
Amortization of held-to-maturity investments | 199 | 488 |
Bad debt expense | 482 | 934 |
Stock-based compensation | 912 | 873 |
Deferred income taxes | 342 | 1,990 |
Equity in earnings of unconsolidated affiliate | (135) | (118) |
Training equipment credits earned, net | (100) | (290) |
Loss on disposal of property and equipment | 25 | 2 |
Changes in assets and liabilities: | ||
Restricted cash: Title IV credit balances | (123) | 34 |
Receivables | 463 | (7,425) |
Prepaid expenses and other current assets | (1,492) | (835) |
Other assets | (79) | (559) |
Accounts payable and accrued expenses | (5,122) | (922) |
Deferred revenue | 1,610 | 2,845 |
Income tax payable/receivable | (2,714) | (4,177) |
Accrued tool sets and other current liabilities | (104) | 365 |
Deferred rent liability | (449) | 425 |
Other liabilities | 29 | 323 |
Net cash (used in) provided by operating activities | (3,553) | 1,997 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (2,626) | (3,731) |
Proceeds from disposal of property and equipment | 0 | 3 |
Purchase of investments | 0 | (7,954) |
Proceeds received upon maturity of investments | 9,555 | 6,427 |
Change in note receivable | (250) | 0 |
Capitalized costs for intangible assets | (250) | 0 |
Return of capital contribution from unconsolidated affiliate | 119 | 110 |
Restricted cash: proprietary loan program | 1,151 | (104) |
Net cash provided by (used in) investing activities | 7,699 | (5,249) |
Cash flows from financing activities: | ||
Payment of cash dividend | (970) | (2,483) |
Payments of financing obligation | (169) | (199) |
Payment of payroll taxes on stock-based compensation through shares withheld | (2) | (7) |
Net cash used in financing activities | (1,141) | (2,689) |
Net increase (decrease) in cash and cash equivalents | 3,005 | (5,941) |
Cash and cash equivalents, beginning of period | 29,438 | 38,985 |
Cash and cash equivalents, end of period | 32,443 | 33,044 |
Supplemental disclosure of cash flow information: | ||
Taxes paid | 1,431 | 4,423 |
Interest Paid | 863 | 563 |
Training equipment obtained in exchange for services | 533 | 107 |
Depreciation on training equipment obtained in exchange for services | 302 | 307 |
Change in accrued capital expenditures during the period | 1,589 | (365) |
Construction period construction liability - construction in progress | $ 0 | $ 3,345 |
Business Description
Business Description | 3 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description | 1. Nature of the Business We are the leading provider of postsecondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle and marine technicians as measured by total average undergraduate full-time student enrollment and graduates. We offer undergraduate degree or diploma programs at 12 campuses across the United States under the banner of several well-known brands, including Universal Technical Institute, Motorcycle Mechanics Institute and Marine Mechanics Institute and NASCAR Technical Institute. We also offer manufacturer specific advanced training (MSAT) programs, including student-paid electives, at our campuses and manufacturer or dealer sponsored training at certain campuses and dedicated training centers. We work closely with leading original equipment manufacturers (OEMs) in the automotive, diesel, motorcycle and marine industries to understand their needs for qualified service professionals. Revenues generated from our schools consist primarily of tuition and fees paid by students. To pay for a substantial portion of their tuition, the majority of students rely on funds received from federal financial aid programs under Title IV Programs of the Higher Education Act of 1965, as amended, as well as from various veterans benefits programs. For further discussion, see Note 2 "Summary of Significant Accounting Policies - Concentration of Risk" and Note 18 “Government Regulation and Financial Aid” included in our 2015 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on December 2, 2015. |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 3 Months Ended |
Dec. 31, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, our condensed consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair statement of the results for the interim periods have been included. Operating results for the three months ended December 31, 2015 are not necessarily indicative of the results that may be expected for the year ending September 30, 2016. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2015 Annual Report on Form 10-K filed with the SEC on December 2, 2015. The unaudited condensed consolidated financial statements include the accounts of Universal Technical Institute, Inc. and our wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements (Notes) | 3 Months Ended |
Dec. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Recent Accounting Pronouncements In January 2016, the Financial Accounting Standards Board (FASB) issued guidance related to the classification and measurement of financial instruments. The guidance primarily impacts the accounting for equity investments other than those accounted for using the equity method of accounting, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. Additionally, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The accounting for other financial instruments, such as loans, investments in debt securities and financial liabilities is largely unchanged. The guidance is effective for annual periods, including interim periods within those periods, beginning after December 15, 2017 with early adoption permitted. We are currently evaluating the adoption methods and the impact that the update will have on our results of operations, financial condition and financial statement disclosures. In November 2015, the FASB issued guidance which simplifies the balance sheet classification of deferred taxes. The guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. This guidance is effective for public business entities for annual periods, and for interim periods within those periods, beginning after December 15, 2016 with early adoption permitted. While the guidance will have an impact on our balance sheet classification, we do not anticipate it will have a material impact on our results of operations, financial condition or the financial statement disclosures. In April 2015, the FASB issued guidance related to customers accounting for fees paid in a cloud computing arrangement. The guidance provides clarification on whether a cloud computing arrangement includes a software license. If an arrangement includes a software license, then the software license element is accounted for consistent with the acquisition of other such licenses. If the arrangement does not include a software license, the arrangement is accounted for as a service contract. Entities have the option of adopting the guidance retrospectively or prospectively. The guidance is effective for annual periods, including interim periods within those periods, beginning after December 15, 2015 with early adoption permitted. We are currently evaluating both the adoption method and the impact that the update will have on our results of operations, financial condition and the financial statement disclosures. In February 2015, the FASB issued guidance which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. Specifically, the amendments (1) modify the evaluation of whether limited partnerships with similar legal entities are variable interest entities (VIEs) or voting interest entities, (2) eliminate the presumption that a general partner should consolidate a limited partnership, (3) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships and (4) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. Entities have the option of using a full or modified retrospective approach to adopt the guidance. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015 with early adoption permitted. We do not anticipate it will have a material impact on our results of operations, financial condition or the financial statement disclosures. In May 2014, the FASB issued guidance which outlines a single comprehensive revenue model for entities to use in accounting for revenue arising from contracts with customers. The guidance supersedes most current revenue recognition guidance, including industry-specific guidance, and requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. Entities have the option of using either a full retrospective or modified approach to adopt the guidance. In June 2015, the FASB deferred the effective date of the guidance by one year. This guidance is now effective for annual and interim reporting periods beginning after December 15, 2017, and early adoption is now permitted for annual and interim reporting periods beginning after December 15, 2016. We are currently evaluating the adoption methods and the impact that the update will have on our results of operations, financial condition and financial statement disclosures. |
Investments
Investments | 3 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments We invest in pre-funded municipal bonds which are generally secured by escrowed-to-maturity U.S. Treasury notes. Municipal bonds represent debt obligations issued by states, cities, counties and other governmental entities, which earn interest that is exempt from federal income taxes. Additionally, we invest in certificates of deposit issued by financial institutions and corporate bonds from large cap industrial and selected financial companies with a minimum credit rating of A. We have the ability and intention to hold our investments until maturity and therefore classify these investments as held-to-maturity and report them at amortized cost. Amortized cost and fair value for investments classified as held-to-maturity at December 31, 2015 were as follows: Estimated Amortized Gross Unrealized Fair Market Cost Gains Losses Value Due in less than 1 year: Municipal bonds $ 9,870 $ 5 $ (2 ) $ 9,873 Corporate bonds 8,119 — (12 ) 8,107 Certificates of deposit 1,087 — — 1,087 Due in 1 - 2 years: Municipal bonds 228 — — 228 Certificates of deposit 747 — — 747 $ 20,051 $ 5 $ (14 ) $ 20,042 Amortized cost and fair value for investments classified as held-to-maturity at September 30, 2015 were as follows: Estimated Amortized Gross Unrealized Fair Market Cost Gains Losses Value Due in less than 1 year: Municipal bonds $ 13,117 $ 14 $ (1 ) $ 13,130 Corporate bonds 11,402 1 (10 ) 11,393 Certificates of deposit 3,567 — — 3,567 Due in 1 - 2 years: Municipal bonds 771 2 — 773 Corporate bonds 201 — — 201 Certificates of deposit 747 — — 747 $ 29,805 $ 17 $ (11 ) $ 29,811 Investments are exposed to various risks, including interest rate, market and credit risk, and as a result, it is possible that changes in the values of these investments may occur and that such changes could affect the amounts reported in the condensed consolidated balance sheets and condensed consolidated statements of comprehensive income. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The accounting framework for determining fair value includes a hierarchy for ranking the quality and reliability of the information used to measure fair value, which enables the reader of the financial statements to assess the inputs used to develop those measurements. The fair value hierarchy consists of three tiers: Level 1, defined as quoted market prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, model-based valuation techniques for which all significant assumptions are observable in the market or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities and Level 3, defined as unobservable inputs that are not corroborated by market data. Any transfers of investments between levels occurs at the end of the reporting period. Assets measured or disclosed at fair value on a recurring basis consisted of the following: Fair Value Measurements Using December 31, 2015 Quoted Prices Significant Significant Money market funds $ 24,226 $ 24,226 $ — $ — Corporate bonds 8,107 8,107 — — Municipal bonds 10,101 — 10,101 — Certificates of deposit 1,834 — 1,834 — Total assets at fair value on a recurring basis $ 44,268 $ 32,333 $ 11,935 $ — Fair Value Measurements Using September 30, 2015 Quoted Prices Significant Significant Money market funds $ 24,369 $ 24,369 $ — $ — Corporate bonds 11,594 11,594 — — Municipal bonds 13,903 — 13,903 — Certificates of deposit 4,314 — 4,314 — Total assets at fair value on a recurring basis $ 54,180 $ 35,963 $ 18,217 $ — Our Level 2 investments are valued using readily available pricing sources which utilize market observable inputs, including the current interest rate for similar types of instruments. |
Property and Equipment, net
Property and Equipment, net | 3 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net consisted of the following: Depreciable December 31, September 30, Land — $ 3,189 $ 3,189 Buildings and building improvements 30-35 78,573 79,555 Leasehold improvements 1-28 39,422 39,326 Training equipment 3-10 89,579 87,795 Office and computer equipment 3-10 38,268 38,776 Curriculum development 5 18,716 18,716 Software developed for internal use 3-5 11,694 11,859 Vehicles 5 1,237 1,233 Construction in progress — 3,912 3,941 284,590 284,390 Less accumulated depreciation and amortization (163,481 ) (160,246 ) $ 121,109 $ 124,144 The following amounts, which are included in the above table, represent assets financed by financing obligations resulting from the build-to-suit arrangements at our Lisle, Illinois and Long Beach, California campuses: December 31, September 30, Buildings and building improvements $ 45,816 $ 45,816 Less accumulated depreciation and amortization (4,328 ) (3,480 ) Assets financed by financing obligations, net $ 41,488 $ 42,336 |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliate (Notes) | 3 Months Ended |
Dec. 31, 2015 | |
Investment in Unconsolidated Affiliate [Abstract] | |
Equity Method Investments Disclosure [Text Block] | Investment in Unconsolidated Affiliate We have an equity interest of approximately 28% in a joint venture (JV) related to the lease of our Lisle, Illinois campus facility. In connection with this investment, we do not possess a controlling financial interest as we do not hold a majority of the equity interest, nor do we have the power to make major decisions without approval from the other equity member. Therefore, we do not qualify as the primary beneficiary. Accordingly, this investment is accounted for under the equity method of accounting and is included in other assets in our condensed consolidated balance sheet. We recognize our proportionate share of the JV’s net income or loss during each accounting period and any return of capital as a change in our investment. Currently, the JV uses an interest rate cap to manage interest rate risk associated with its floating rate debt. This derivative instrument is designated as a cash flow hedge based on the nature of the risk being hedged. As such, the effective portion of the gain or loss on the derivative is initially reported as a component of the JV’s accumulated other comprehensive income or loss, net of tax, and is subsequently reclassified into earnings when the hedged transaction affects earnings. Any ineffective portion of the gain or loss is recognized in the JV’s current earnings. Due to our equity method investment in the JV, when the JV reports a current year component of other comprehensive income (OCI), we, as an investor, likewise adjust our investment account for the change in investee equity. In addition, we adjust our OCI for our share of the JV’s currently reported OCI item. Investment in unconsolidated affiliate consisted of the following: December 31, 2015 September 30, 2015 Carrying Value Ownership Percentage Carrying Value Ownership Percentage Investment in unconsolidated affiliate $ 4,001 27.972 % $ 3,986 27.972 % Investment in unconsolidated affiliate included the following activity during the period: Three Months Ended December 31, 2015 2014 Balance at beginning of period $ 3,986 $ 3,903 Equity in earnings of unconsolidated affiliate 135 118 Return of capital contribution from unconsolidated affiliate (119 ) (110 ) Equity interest in investee's unrealized gains (losses) on hedging derivatives, net of taxes (1 ) 11 Balance at end of period $ 4,001 $ 3,922 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 3 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: December 31, 2015 September 30, 2015 Accounts payable $ 11,406 $ 14,498 Accrued compensation and benefits 15,152 17,534 Other accrued expenses 9,101 10,588 $ 35,659 $ 42,620 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal In the ordinary conduct of our business, we are periodically subject to lawsuits, demands in arbitration, investigations, regulatory proceedings or other claims, including, but not limited to, claims involving current or former students, routine employment matters, business disputes and regulatory demands. When we are aware of a claim or potential claim, we assess the likelihood of any loss or exposure. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, we accrue a liability for the loss. When a loss is not both probable and estimable, we do not accrue a liability. Where a loss is not probable but is reasonably possible, including if a loss in excess of an accrued liability is reasonably possible, we determine whether it is possible to provide an estimate of the amount of the loss or range of possible losses for the claim. Because we cannot predict with certainty the ultimate resolution of the legal proceedings (including lawsuits, investigations, regulatory proceedings or claims) asserted against us, it is not currently possible to provide such an estimate. The ultimate outcome of pending legal proceedings to which we are a party may have a material adverse effect on our business, cash flows, results of operations or financial condition. In September 2012, we received a Civil Investigative Demand (CID) from the Attorney General of the Commonwealth of Massachusetts related to a pending investigation in connection with allegations that we caused false claims to be submitted to the Commonwealth relating to student loans, guarantees and grants provided to students at our Norwood, Massachusetts campus. The CID required us to produce documents and provide written testimony regarding a broad range of our business from September 2006 to September 2012. We responded timely to the request. The Attorney General made a follow-up request for documents, and we complied with this request in February 2013. In response to a status update request from us, the Attorney General has requested and we have provided additional documents and information related to graduate employment at our Norwood, Massachusetts campus and our policies and practices for determining graduate employment. At this time, we cannot predict the eventual scope, duration, outcome or associated costs of this request, and accordingly we have not recorded any liability in the accompanying condensed consolidated financial statements. On July 17, 2015, we received a subpoena from the U.S. Attorney’s Office for the Western District of North Carolina (U.S. Attorney's Office) issued pursuant to the Financial Institutions Reform, Recovery and Enforcement Act of 1989. The subpoena covers a broad range of matters relating to our Mooresville, North Carolina campus operations over the past several years. It also seeks documents and information relating to our compliance with the “90/10 rule” and other programs and practices. We are cooperating with the U.S. Attorney’s Office. At this time, we cannot predict the eventual scope, duration, outcome or associated costs or operational impact of this inquiry, and accordingly we have not recorded any liability in the accompanying condensed consolidated financial statements. In November 2015, one of our software vendors notified us of potential additional license and maintenance fees for the use of its software. The terms of the business arrangement are in dispute. While we are in negotiations, we have recorded an immaterial expense related to this matter in the accompanying condensed consolidated financial statements. Proprietary Loan Program In order to provide funding for students who are not able to fully finance the cost of their education under traditional governmental financial aid programs, commercial loan programs or other alternative sources, we established a private loan program with a bank. Under terms of the proprietary loan program, the bank originates loans for our students who meet our specific credit criteria with the related proceeds used exclusively to fund a portion of their tuition. We then purchase all such loans from the bank at least monthly and assume all of the related credit risk. The loans bear interest at market rates; however, principal and interest payments are not required until six months after the student completes or withdraws from his or her program. After the deferral period, monthly principal and interest payments are required over the related term of the loan. The bank provides these services in exchange for a fee at a percentage of the principal balance of each loan and related fees. Under the terms of the related agreement, we transfer funds for loan purchases to a deposit account with the bank in advance of the bank funding the loan, which secures our related loan purchase obligation. Such funds are classified as restricted cash in our condensed consolidated balance sheet. In substance, we provide the students who participate in this program with extended payment terms for a portion of their tuition and as a result, we account for the underlying transactions in accordance with our tuition revenue recognition policy. However, due to the nature of the program coupled with the extended payment terms required under the student loan agreements, collectability is not reasonably assured. Accordingly, we recognize tuition and loan origination fees financed by the loan and any related interest income required under the loan when such amounts are collected. All related expenses incurred with the bank or other service providers are expensed as incurred within educational services and facilities expense and were approximately $0.5 million and $0.4 million for the three months ended December 31, 2015 and 2014, respectively. Since loan collectability is not reasonably assured, the loans and related deferred tuition revenue are not recognized in our condensed consolidated balance sheets. The following table summarizes the impact of the proprietary loan program on our tuition revenue and interest income during the period as well as on a cumulative basis at the end of each period in our condensed consolidated statements of comprehensive income. Tuition revenue and interest income excluded represents amounts which would have been recognized during the period had collectability of the related amounts been assured. Amounts collected and recognized represent actual cash receipts during the period. Three Months Ended December 31, Inception 2015 2014 Tuition and interest income excluded $ 6,646 $ 6,400 $ 126,739 Amounts collected and recognized (1,535 ) (1,057 ) (15,454 ) Net amount excluded during the period $ 5,111 $ 5,343 $ 111,285 As of December 31, 2015 , we had committed to provide loans to our students for approximately $126.1 million since inception. The following table summarizes the activity related to the balances outstanding under our proprietary loan program, including loans outstanding, interest and origination fees, which are not recognized in our condensed consolidated balance sheets. Amounts written off represent amounts which have been turned over to third party collectors; such amounts are not included within bad debt expense in our condensed consolidated statements of income. Three Months Ended December 31, 2015 2014 Balance at beginning of period $ 74,664 $ 70,759 Loans extended 8,283 7,242 Interest accrued 916 695 Amounts collected and recognized (1,535 ) (1,057 ) Amounts written off (3,652 ) (3,167 ) Balance at end of period $ 78,676 $ 74,472 |
Common Shareholders' Equity
Common Shareholders' Equity | 3 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Common Shareholders’ Equity | Common Shareholders’ Equity Common Stock Holders of our common stock are entitled to receive dividends when and as declared by our Board of Directors and have the right to one vote per share on all matters requiring shareholder approval. On December 18 and October 5, 2015, we paid cash dividends of $0.02 per share to common stockholders of record as of December 4 and September 28, 2015, respectively, totaling approximately $1.0 million . Share Repurchase Program On December 20, 2011, our Board of Directors authorized the repurchase of up to $25.0 million of our common stock in the open market or through privately negotiated transactions. The timing and actual number of shares purchased will depend on a variety of factors such as price, corporate and regulatory requirements and prevailing market conditions. We may terminate or limit the share repurchase program at any time without prior notice. We did not repurchase shares during the three months ended December 31, 2015. As of December 31, 2015 , we have purchased 1,677,570 shares at an average price per share of $9.09 and a total cost of approximately $15.3 million under this program. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding for the period. Diluted net income per share reflects the assumed conversion of all dilutive securities, if any. For the three months ended December 31, 2014, 733,940 shares which could be issued under outstanding stock-based grants were not included in the determination of our diluted shares outstanding as they were anti-dilutive. For the three months ended December 31, 2015, diluted loss per share equaled basic loss per share as the assumed activity related to outstanding stock-based grants would have an anti-dilutive effect. The calculation of the weighted average number of shares outstanding used in computing basic and diluted net income per share was as follows: Three Months Ended December 31, 2015 2014 Weighted average number of shares (In thousands) Basic shares outstanding 24,234 24,827 Dilutive effect related to employee stock plans — 99 Diluted shares outstanding 24,234 24,926 |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our principal business is providing postsecondary education. We also provide manufacturer-specific training and these operations are managed separately from our campus operations. These operations do not currently meet the quantitative criteria for segments and therefore are reflected in the Other category. Corporate expenses are allocated to Postsecondary Education and the Other category based on compensation expense. Depreciation and amortization includes amortization of assets subject to financing obligation. Summary information by reportable segment is as follows: Three Months Ended December 31, 2015 2014 Revenues Postsecondary education $ 86,665 $ 92,902 Other 3,108 2,778 Consolidated $ 89,773 $ 95,680 Income (loss) from operations Postsecondary education $ (1,216 ) $ 6,450 Other (977 ) (850 ) Consolidated $ (2,193 ) $ 5,600 Depreciation and amortization (1) Postsecondary education $ 4,320 $ 4,906 Other 63 44 Consolidated $ 4,383 $ 4,950 Net income (loss) Postsecondary education $ (1,172 ) $ 3,501 Other (508 ) (407 ) Consolidated $ (1,680 ) $ 3,094 December 31, 2015 September 30, 2015 Goodwill Postsecondary education $ 8,222 $ 8,222 Other — — Consolidated $ 8,222 $ 8,222 Total assets Postsecondary education $ 259,538 $ 266,922 Other 5,661 7,380 Consolidated $ 265,199 $ 274,302 (1) Excludes depreciation of training equipment obtained in exchange for services of $0.3 million for each of the three months ended December 31, 2015 and December 31, 2014, respectively. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 3 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 13. Subsequent Event In February 2016, we made an investment in and entered into a licensing agreement with a company which provides comprehensive technician development programs and shop operations services. This investment, which included $0.7 million in cash as well as the conversion of a $0.3 million note receivable extended in December 2015, resulted in our ownership of 25% of the outstanding equity interests of this company. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Value of Held to Maturity Investments | Investments We invest in pre-funded municipal bonds which are generally secured by escrowed-to-maturity U.S. Treasury notes. Municipal bonds represent debt obligations issued by states, cities, counties and other governmental entities, which earn interest that is exempt from federal income taxes. Additionally, we invest in certificates of deposit issued by financial institutions and corporate bonds from large cap industrial and selected financial companies with a minimum credit rating of A. We have the ability and intention to hold our investments until maturity and therefore classify these investments as held-to-maturity and report them at amortized cost. Amortized cost and fair value for investments classified as held-to-maturity at December 31, 2015 were as follows: Estimated Amortized Gross Unrealized Fair Market Cost Gains Losses Value Due in less than 1 year: Municipal bonds $ 9,870 $ 5 $ (2 ) $ 9,873 Corporate bonds 8,119 — (12 ) 8,107 Certificates of deposit 1,087 — — 1,087 Due in 1 - 2 years: Municipal bonds 228 — — 228 Certificates of deposit 747 — — 747 $ 20,051 $ 5 $ (14 ) $ 20,042 Amortized cost and fair value for investments classified as held-to-maturity at September 30, 2015 were as follows: Estimated Amortized Gross Unrealized Fair Market Cost Gains Losses Value Due in less than 1 year: Municipal bonds $ 13,117 $ 14 $ (1 ) $ 13,130 Corporate bonds 11,402 1 (10 ) 11,393 Certificates of deposit 3,567 — — 3,567 Due in 1 - 2 years: Municipal bonds 771 2 — 773 Corporate bonds 201 — — 201 Certificates of deposit 747 — — 747 $ 29,805 $ 17 $ (11 ) $ 29,811 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value of Our Money Market Mutual Funds, Municipal Bonds and Certificates of Deposit | Assets measured or disclosed at fair value on a recurring basis consisted of the following: Fair Value Measurements Using December 31, 2015 Quoted Prices Significant Significant Money market funds $ 24,226 $ 24,226 $ — $ — Corporate bonds 8,107 8,107 — — Municipal bonds 10,101 — 10,101 — Certificates of deposit 1,834 — 1,834 — Total assets at fair value on a recurring basis $ 44,268 $ 32,333 $ 11,935 $ — Fair Value Measurements Using September 30, 2015 Quoted Prices Significant Significant Money market funds $ 24,369 $ 24,369 $ — $ — Corporate bonds 11,594 11,594 — — Municipal bonds 13,903 — 13,903 — Certificates of deposit 4,314 — 4,314 — Total assets at fair value on a recurring basis $ 54,180 $ 35,963 $ 18,217 $ — |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Property and equipment, net consisted of the following: Depreciable December 31, September 30, Land — $ 3,189 $ 3,189 Buildings and building improvements 30-35 78,573 79,555 Leasehold improvements 1-28 39,422 39,326 Training equipment 3-10 89,579 87,795 Office and computer equipment 3-10 38,268 38,776 Curriculum development 5 18,716 18,716 Software developed for internal use 3-5 11,694 11,859 Vehicles 5 1,237 1,233 Construction in progress — 3,912 3,941 284,590 284,390 Less accumulated depreciation and amortization (163,481 ) (160,246 ) $ 121,109 $ 124,144 |
Assets financed by financing obligations | The following amounts, which are included in the above table, represent assets financed by financing obligations resulting from the build-to-suit arrangements at our Lisle, Illinois and Long Beach, California campuses: December 31, September 30, Buildings and building improvements $ 45,816 $ 45,816 Less accumulated depreciation and amortization (4,328 ) (3,480 ) Assets financed by financing obligations, net $ 41,488 $ 42,336 |
Investment in Unconsolidated 23
Investment in Unconsolidated Affiliate (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Investment in Unconsolidated Affiliate [Abstract] | |
Equity Method Investments [Table Text Block] | Investment in unconsolidated affiliate consisted of the following: December 31, 2015 September 30, 2015 Carrying Value Ownership Percentage Carrying Value Ownership Percentage Investment in unconsolidated affiliate $ 4,001 27.972 % $ 3,986 27.972 % Investment in unconsolidated affiliate included the following activity during the period: Three Months Ended December 31, 2015 2014 Balance at beginning of period $ 3,986 $ 3,903 Equity in earnings of unconsolidated affiliate 135 118 Return of capital contribution from unconsolidated affiliate (119 ) (110 ) Equity interest in investee's unrealized gains (losses) on hedging derivatives, net of taxes (1 ) 11 Balance at end of period $ 4,001 $ 3,922 |
Accounts Payable and Accrued 24
Accounts Payable and Accrued Expenses (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts payable and accrued expenses | Accounts payable and accrued expenses consisted of the following: December 31, 2015 September 30, 2015 Accounts payable $ 11,406 $ 14,498 Accrued compensation and benefits 15,152 17,534 Other accrued expenses 9,101 10,588 $ 35,659 $ 42,620 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Impact Of Proprietary Loan Program On Our Tuition Revenue And Interest Income Table [Text Block] | The following table summarizes the activity related to the balances outstanding under our proprietary loan program, including loans outstanding, interest and origination fees, which are not recognized in our condensed consolidated balance sheets. Amounts written off represent amounts which have been turned over to third party collectors; such amounts are not included within bad debt expense in our condensed consolidated statements of income. Three Months Ended December 31, 2015 2014 Balance at beginning of period $ 74,664 $ 70,759 Loans extended 8,283 7,242 Interest accrued 916 695 Amounts collected and recognized (1,535 ) (1,057 ) Amounts written off (3,652 ) (3,167 ) Balance at end of period $ 78,676 $ 74,472 |
Activity Related To Balances Outstanding Under Our Proprietary Loan Program Table [Text Block] | The following table summarizes the impact of the proprietary loan program on our tuition revenue and interest income during the period as well as on a cumulative basis at the end of each period in our condensed consolidated statements of comprehensive income. Tuition revenue and interest income excluded represents amounts which would have been recognized during the period had collectability of the related amounts been assured. Amounts collected and recognized represent actual cash receipts during the period. Three Months Ended December 31, Inception 2015 2014 Tuition and interest income excluded $ 6,646 $ 6,400 $ 126,739 Amounts collected and recognized (1,535 ) (1,057 ) (15,454 ) Net amount excluded during the period $ 5,111 $ 5,343 $ 111,285 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Weighted Average Number of Shares Outstanding Used in Computing Basic and Diluted Net Income Loss Per Share | The calculation of the weighted average number of shares outstanding used in computing basic and diluted net income per share was as follows: Three Months Ended December 31, 2015 2014 Weighted average number of shares (In thousands) Basic shares outstanding 24,234 24,827 Dilutive effect related to employee stock plans — 99 Diluted shares outstanding 24,234 24,926 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Summary of Information by Reportable Segment | Summary information by reportable segment is as follows: Three Months Ended December 31, 2015 2014 Revenues Postsecondary education $ 86,665 $ 92,902 Other 3,108 2,778 Consolidated $ 89,773 $ 95,680 Income (loss) from operations Postsecondary education $ (1,216 ) $ 6,450 Other (977 ) (850 ) Consolidated $ (2,193 ) $ 5,600 Depreciation and amortization (1) Postsecondary education $ 4,320 $ 4,906 Other 63 44 Consolidated $ 4,383 $ 4,950 Net income (loss) Postsecondary education $ (1,172 ) $ 3,501 Other (508 ) (407 ) Consolidated $ (1,680 ) $ 3,094 December 31, 2015 September 30, 2015 Goodwill Postsecondary education $ 8,222 $ 8,222 Other — — Consolidated $ 8,222 $ 8,222 Total assets Postsecondary education $ 259,538 $ 266,922 Other 5,661 7,380 Consolidated $ 265,199 $ 274,302 (1) Excludes depreciation of training equipment obtained in exchange for services of $0.3 million for each of the three months ended December 31, 2015 and December 31, 2014, respectively. |
Business Description (Narrative
Business Description (Narrative) (Details) | Dec. 31, 2015Campus |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of campuses through which undergraduate degree, diploma and certificate programs are offered | 12 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Held to Maturity Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 20,051 | $ 29,805 |
Gross Unrealized Gains | 5 | 17 |
Gross Unrealized Losses | (14) | (11) |
Estimated Fair Market Value | 20,042 | 29,811 |
Municipal bonds, due in less than 1 year | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 9,870 | 13,117 |
Gross Unrealized Gains | 5 | 14 |
Gross Unrealized Losses | (2) | (1) |
Estimated Fair Market Value | 9,873 | 13,130 |
Corporate bonds, due in less than 1 year | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 8,119 | 11,402 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (12) | (10) |
Estimated Fair Market Value | 8,107 | 11,393 |
Certificates of deposit, due in less than 1 year | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 1,087 | 3,567 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Market Value | 1,087 | 3,567 |
Municipal bonds, due in 1 - 2 years | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 228 | 771 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Market Value | 228 | 773 |
Corporate bonds due In 1 - 2 years | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 201 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Market Value | 201 | |
Certificates of deposit, due in 1- 2 years | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 747 | 747 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Market Value | $ 747 | $ 747 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured at Fair Value on a Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | $ 44,268 | $ 54,180 |
Estimate of Fair Value Measurement [Member] | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 24,226 | 24,369 |
Estimate of Fair Value Measurement [Member] | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 8,107 | 11,594 |
Estimate of Fair Value Measurement [Member] | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 10,101 | 13,903 |
Estimate of Fair Value Measurement [Member] | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 1,834 | 4,314 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 32,333 | 35,963 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 24,226 | 24,369 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 8,107 | 11,594 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 11,935 | 18,217 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 10,101 | 13,903 |
Significant Other Observable Inputs (Level 2) | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 1,834 | 4,314 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | $ 0 | $ 0 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2015 | Sep. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 284,590 | $ 284,390 |
Less accumulated depreciation and amortization | (163,481) | (160,246) |
Property and equipment, net | 121,109 | 124,144 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,189 | 3,189 |
Buildings and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 78,573 | 79,555 |
Buildings and Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 30 years | |
Buildings and Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 35 years | |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 39,422 | 39,326 |
Leasehold improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 1 year | |
Leasehold improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 28 years | |
Training equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 89,579 | 87,795 |
Training equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 3 years | |
Training equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 10 years | |
Office and computer equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 38,268 | 38,776 |
Office and computer equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 3 years | |
Office and computer equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 10 years | |
Software developed for internal use [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 11,694 | 11,859 |
Software developed for internal use [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 3 years | |
Software developed for internal use [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 5 years | |
Curriculum development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 5 years | |
Property and equipment, gross | $ 18,716 | 18,716 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 5 years | |
Property and equipment, gross | $ 1,237 | 1,233 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,912 | $ 3,941 |
Property and Equipment, net Ass
Property and Equipment, net Assets Financed by Financing Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 |
Assets financed by financing obligations [Line Items] | ||
Buildings and building improvements | $ 45,816 | $ 45,816 |
Less accumulated depreciation and amortization | (4,328) | (3,480) |
Assets financed by financing obligation, net | $ 41,488 | $ 42,336 |
Investment in Unconsolidated 33
Investment in Unconsolidated Affiliate Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest in investee's unrealized gains on hedging derivatives, net of taxes | $ (1) | $ 11 | ||
Investment in Unconsolidated Affiliate | $ 4,001 | $ 3,922 | $ 3,986 | $ 3,903 |
Lisle JV [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in Unconsolidated Affiliate, Ownership Percentage | 27.972% | 27.972% |
Investment in Unconsolidated 34
Investment in Unconsolidated Affiliate (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||
Investment in Unconsolidated Affiliate | $ 4,001 | $ 3,922 | $ 3,986 | $ 3,903 |
Equity in earnings of unconsolidated affiliate | 135 | 118 | ||
Return of capital contribution from unconsolidated affiliate | 119 | 110 | ||
Equity interest in investee's unrealized gains on hedging derivatives, net of taxes | $ (1) | $ 11 | ||
Lisle JV [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in Unconsolidated Affiliate, Ownership Percentage | 27.972% | 27.972% |
Accounts Payable and Accrued 35
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 11,406 | $ 14,498 |
Accrued compensation and benefits | 15,152 | 17,534 |
Other accrued expenses | 9,101 | 10,588 |
Accounts payable and accrued expenses, total | $ 35,659 | $ 42,620 |
Commitments and Contingencies36
Commitments and Contingencies (Narrative) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies (Textual) [Abstract] | ||
Amount Of Loans Committed To Provide | $ 126.1 | |
Loan Processing Fee | $ 500,000 | $ 400,000 |
Commitments and Contingencies S
Commitments and Contingencies Schedule Of Impact Of Proprietary Loan Program On Our Tuition Revenue And Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 91 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | |
Schedule of Impact of Proprietary Loan Program on our Tuition Revenue and Interest Income [Abstract] | |||
Tuition and interest income excluded | $ 6,646 | $ 6,400 | $ 126,739 |
Amounts collected and recognized | (1,535) | (1,057) | (15,454) |
Net amount excluded during the period | $ 5,111 | $ 5,343 | $ 111,285 |
Commitments and Contingencies B
Commitments and Contingencies Balances Outstanding under Proprietary Loan Program (Details) - USD ($) $ in Thousands | 3 Months Ended | 91 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Activity Related to Balances Outstanding under our Proprietary Loan Program [Abstract] | |||||
Amounts Outstanding Under Our Proprietary Loan Program | $ 78,676 | $ 74,472 | $ 78,676 | $ 74,664 | $ 70,759 |
Loans extended | 8,283 | 7,242 | |||
Interest accrued | 916 | 695 | |||
Amounts collected and recognized | (1,535) | (1,057) | $ (15,454) | ||
Amounts written off | $ (3,652) | $ (3,167) |
Common Shareholders' Equity Com
Common Shareholders' Equity Common Shareholders' Equity - Additional Information (Details) - USD ($) | Dec. 18, 2015 | Oct. 05, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 20, 2011 |
Stockholders Equity Note [Line Items] | |||||||
Number of voting rights per share, common stock | $ 1 | ||||||
Common stock dividends declared, per share | $ 0.02 | $ 0.02 | $ 0 | $ 0 | |||
Cash dividend | $ 485,000 | ||||||
Repurchase of common stock authorized by Board of Directors | $ 25,000,000 | ||||||
Purchased shares | 1,677,570 | ||||||
Average price per share | $ 9.09 | ||||||
Aggregate cost of treasury stock repurchased during the period | 0 | $ 15,300,000 | |||||
Common Stock | |||||||
Stockholders Equity Note [Line Items] | |||||||
Cash dividend | $ 1,000,000 |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) | 3 Months Ended |
Dec. 31, 2014shares | |
Earnings Per Share [Abstract] | |
Shares not included in the determination of our diluted shares outstanding as they were anti-dilutive | 733,940 |
Earnings per Share (Calculation
Earnings per Share (Calculation of the Weighted Average Number of Shares Outstanding) (Details) - shares shares in Thousands | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted average number of shares | ||
Basic shares outstanding | 24,234 | 24,827 |
Dilutive effect related to employee stock plans | 0 | 99 |
Diluted shares outstanding | 24,234 | 24,926 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | |||
Depreciation of training equipment obtained in exchange for services | $ 300 | $ 300 | |
Revenues | |||
Revenues | 89,773 | 95,680 | |
Income (loss) from operations | |||
Income (loss) from operations | (2,193) | 5,600 | |
Depreciation and amortization | |||
Depreciation and amortization | 3,582 | 4,482 | |
Total Depreciation and Amortization | 4,383 | 4,950 | |
Net income (loss) | |||
Net income (loss) | (1,680) | 3,094 | |
Goodwill | |||
Goodwill | 8,222 | $ 8,222 | |
Assets | |||
Total assets | 265,199 | 274,302 | |
Postsecondary education | |||
Revenues | |||
Revenues | 86,665 | 92,902 | |
Income (loss) from operations | |||
Income (loss) from operations | (1,216) | 6,450 | |
Depreciation and amortization | |||
Depreciation and amortization | 4,320 | 4,906 | |
Net income (loss) | |||
Net income (loss) | (1,172) | 3,501 | |
Goodwill | |||
Goodwill | 8,222 | 8,222 | |
Assets | |||
Total assets | 259,538 | 266,922 | |
Other | |||
Revenues | |||
Revenues | 3,108 | 2,778 | |
Income (loss) from operations | |||
Income (loss) from operations | (977) | (850) | |
Depreciation and amortization | |||
Depreciation and amortization | 63 | 44 | |
Net income (loss) | |||
Net income (loss) | (508) | $ (407) | |
Goodwill | |||
Goodwill | 0 | 0 | |
Assets | |||
Total assets | $ 5,661 | $ 7,380 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] $ in Millions | Feb. 05, 2016USD ($) |
Subsequent Event [Line Items] | |
License Costs | $ 0.7 |
Notes, Loans and Financing Receivable, Gross, Current | $ 0 |
Technician development program and shop operations services company [Member] | |
Subsequent Event [Line Items] | |
Investment in Unconsolidated Affiliate, Ownership Percentage | 25.00% |