Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 05, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'LINCOLN EDUCATIONAL SERVICES CORP | ' |
Entity Central Index Key | '0001286613 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 24,080,136 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $6,250 | $61,708 |
Accounts receivable, less allowance of $14,368 and $17,751 at September 30, 2013 and December 31, 2012, respectively | 25,960 | 17,370 |
Inventories | 2,380 | 2,677 |
Prepaid income taxes and income taxes receivable | 18,497 | 7,085 |
Deferred income taxes, net | 6,229 | 7,729 |
Prepaid expenses and other current assets | 2,278 | 2,944 |
Total current assets | 61,594 | 99,513 |
PROPERTY, EQUIPMENT AND FACILITIES - At cost, net of accumulated depreciation and amortization of $147,410 and $137,834 at September 30, 2013 and December 31, 2012, respectively | 137,371 | 154,096 |
OTHER ASSETS: | ' | ' |
Noncurrent receivables, less allowance of $835 and $1,078 at September 30, 2013 and December 31, 2012, respectively | 5,496 | 6,109 |
Deferred finance charges | 574 | 774 |
Deferred income taxes, net | 18,409 | 17,065 |
Goodwill | 62,465 | 65,527 |
Other assets, net | 4,377 | 3,690 |
Total other assets | 91,321 | 93,165 |
TOTAL | 290,286 | 346,774 |
CURRENT LIABILITIES: | ' | ' |
Current portion of long-term debt and lease obligations | 426 | 412 |
Unearned tuition | 35,792 | 34,648 |
Accounts payable | 11,160 | 13,500 |
Accrued expenses | 15,580 | 9,746 |
Other short-term liabilities | 340 | 268 |
Total current liabilities | 63,298 | 58,574 |
NONCURRENT LIABILITIES: | ' | ' |
Long-term debt and lease obligations, net of current portion | 35,293 | 73,115 |
Pension plan liabilities | 5,960 | 6,901 |
Accrued rent | 8,268 | 8,663 |
Other long-term liabilities | 1,052 | 1,044 |
Total liabilities | 113,871 | 148,297 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred stock, no par value - 10,000,000 shares authorized, no shares issued and outstanding at September 30, 2013 and December 31, 2012 | 0 | 0 |
Common stock, no par value - authorized 100,000,000 shares at September 30, 2013 and December 31, 2012, issued and outstanding 29,999,684 shares at September 30, 2013 and 29,659,457 shares at December 31, 2012 | 141,377 | 141,377 |
Additional paid-in capital | 24,334 | 22,677 |
Treasury stock at cost - 5,910,541 shares at September 30, 2013 and December 31, 2012 | -82,860 | -82,860 |
Retained earnings | 99,890 | 124,059 |
Accumulated other comprehensive loss | -6,326 | -6,776 |
Total stockholders' equity | 176,415 | 198,477 |
TOTAL | $290,286 | $346,774 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
ASSETS | ' | ' |
Accounts receivable, allowance | $14,368 | $17,751 |
PROPERTY, EQUIPMENT AND FACILITIES - accumulated depreciation and amortization | 147,410 | 137,834 |
OTHER ASSETS : | ' | ' |
Noncurrent receivables, allowance | $835 | $1,078 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, par value (in dollars per share) | $0 | $0 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 29,999,684 | 29,659,457 |
Common stock, shares outstanding (in shares) | 29,999,684 | 29,659,457 |
Treasury stock, shares (in shares) | 5,910,541 | 5,910,541 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ' | ' | ' | ' |
REVENUE | $88,509 | $102,057 | $263,809 | $300,246 |
COSTS AND EXPENSES: | ' | ' | ' | ' |
Educational services and facilities | 46,830 | 49,426 | 137,810 | 145,594 |
Selling, general and administrative | 44,482 | 50,807 | 147,252 | 157,921 |
(Gain) loss on sale of assets | -301 | 8 | -508 | -36 |
Impairment of goodwill and long-lived assets | 0 | 0 | 6,194 | 14,244 |
School closing costs | 195 | 0 | 1,214 | 0 |
Total costs & expenses | 91,206 | 100,241 | 291,962 | 317,723 |
OPERATING (LOSS) INCOME | -2,697 | 1,816 | -28,153 | -17,477 |
OTHER: | ' | ' | ' | ' |
Interest income | 20 | 0 | 37 | 2 |
Interest expense | -1,088 | -1,051 | -3,382 | -3,412 |
Other income | 0 | 3 | 18 | 13 |
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | -3,765 | 768 | -31,480 | -20,874 |
BENEFIT FOR INCOME TAXES | -1,489 | -318 | -12,339 | -5,946 |
(LOSS) INCOME FROM CONTINUING OPERATIONS | -2,276 | 1,086 | -19,141 | -14,928 |
LOSS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES | 0 | -2,570 | 0 | -10,319 |
NET LOSS | ($2,276) | ($1,484) | ($19,141) | ($25,247) |
Basic | ' | ' | ' | ' |
(Loss) income per share from continuing operations (in dollars per share) | ($0.10) | $0.05 | ($0.85) | ($0.67) |
Loss per share from discontinued operations (in dollars per share) | $0 | ($0.12) | $0 | ($0.47) |
Net loss per share (in dollars per share) | ($0.10) | ($0.07) | ($0.85) | ($1.14) |
Diluted | ' | ' | ' | ' |
(Loss) income per share from continuing operations (in dollars per share) | ($0.10) | $0.05 | ($0.85) | ($0.67) |
Loss per share from discontinued operations (in dollars per share) | $0 | ($0.12) | $0 | ($0.47) |
Net loss per share (in dollars per share) | ($0.10) | ($0.07) | ($0.85) | ($1.14) |
Weighted average number of common shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 22,528,478 | 22,194,731 | 22,480,308 | 22,171,757 |
Diluted (in shares) | 22,528,478 | 22,281,133 | 22,480,308 | 22,171,757 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME [Abstract] | ' | ' | ' | ' |
Net loss | ($2,276) | ($1,484) | ($19,141) | ($25,247) |
Other comprehensive income | ' | ' | ' | ' |
Employee pension plan adjustments, net of taxes | 150 | 0 | 450 | 0 |
Comprehensive loss | ($2,126) | ($1,484) | ($18,691) | ($25,247) |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
In Thousands, except Share data, unless otherwise specified | ||||||
BALANCE at Dec. 31, 2012 | $141,377 | $22,677 | ($82,860) | $124,059 | ($6,776) | $198,477 |
BALANCE (in shares) at Dec. 31, 2012 | 29,659,457 | ' | ' | ' | ' | 29,659,457 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net loss | 0 | 0 | 0 | -19,141 | 0 | -19,141 |
Employee pension plan adjustments, net of taxes | 0 | 0 | 0 | 0 | 450 | 450 |
Stock-based compensation expense | ' | ' | ' | ' | ' | ' |
Restricted stock | 0 | 2,317 | 0 | 0 | 0 | 2,317 |
Restricted stock (in shares) | 400,779 | ' | ' | ' | ' | ' |
Stock options | 0 | 138 | 0 | 0 | 0 | 138 |
Tax deficiency of stock-based awards and cancels | 0 | -409 | 0 | 0 | 0 | -409 |
Net share settlement for equity-based compensation | 0 | -389 | 0 | 0 | 0 | -389 |
Net share settlement for equity-based compensation (in shares) | -60,552 | ' | ' | ' | ' | ' |
Cash dividend | 0 | 0 | 0 | -5,028 | 0 | -5,028 |
BALANCE at Sep. 30, 2013 | $141,377 | $24,334 | ($82,860) | $99,890 | ($6,326) | $176,415 |
BALANCE (in shares) at Sep. 30, 2013 | 29,999,684 | ' | ' | ' | ' | 29,999,684 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract] | ' | ' |
Cash dividend (in dollars per share) | $0.07 | $0.21 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($19,141) | ($25,247) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ' | ' |
Depreciation and amortization | 17,570 | 20,449 |
Amortization of deferred finance charges | 312 | 147 |
Deferred income taxes | -144 | -4,672 |
Gain on disposition of assets | -508 | -32 |
Impairment of goodwill and long-lived assets | 6,194 | 23,683 |
Fixed asset donation | -37 | 0 |
Provision for doubtful accounts | 11,539 | 16,091 |
Stock-based compensation expense | 2,455 | 2,609 |
Deferred rent | -233 | 488 |
(Increase) decrease in assets, net of acquisition of business: | ' | ' |
Accounts receivable | -19,516 | -15,763 |
Inventories | 297 | -1 |
Prepaid income taxes and income taxes receivable | -11,821 | -8,485 |
Prepaid expenses and current assets | 650 | 775 |
Other assets | -864 | -129 |
Increase (decrease) in liabilities, net of acquisition of business: | ' | ' |
Accounts payable | -2,795 | -1,842 |
Accrued expenses | 5,672 | 3,293 |
Pension plan liabilities | -672 | -544 |
Unearned tuition | 1,144 | -2,994 |
Other liabilities | 561 | 275 |
Total adjustments | 9,804 | 33,348 |
Net cash (used in) provided by operating activities | -9,337 | 8,101 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Capital expenditures | -3,531 | -6,779 |
Proceeds from sale of property and equipment | 747 | 82 |
Acquisition of business, net of cash acquired | 0 | -1,472 |
Net cash used in investing activities | -2,784 | -8,169 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Payments on borrowings | -42,500 | 0 |
Proceeds from borrowings | 5,000 | 0 |
Net share settlement for equity-based compensation | -389 | -212 |
Dividends paid | -5,028 | -4,782 |
Payment of deferred finance fees | -112 | -659 |
Principal payments under capital lease obligations | -308 | -374 |
Net cash used in financing activities | -43,337 | -6,027 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -55,458 | -6,095 |
CASH AND CASH EQUIVALENTS-Beginning of period | 61,708 | 26,524 |
CASH AND CASH EQUIVALENTS-End of period | 6,250 | 20,429 |
Cash paid during the year for: | ' | ' |
Interest | 3,082 | 3,070 |
Income taxes | 375 | 226 |
Cash paid during the year for: | ' | ' |
Fair Value of Assets Acquired | 0 | 2,876 |
Net cash paid for acquisition | 0 | -1,472 |
Liabilities assumed | 0 | 1,404 |
Liabilities accrued for or noncash purchases of fixed assets | $895 | $599 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | |
Sep. 30, 2013 | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |
1 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Business Activities – Lincoln Educational Services Corporation and Subsidiaries (the “Company”) is a provider of diversified career-oriented post-secondary education. The Company offers recent high school graduates and working adults career-oriented programs in five areas of study: Automotive Technology, Health Sciences, Skilled Trades, Hospitality Services and Business and Information Technology. The Company currently has 38 campuses and five training sites across 17 states across the United States. | ||
Basis of Presentation – The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Certain information and footnote disclosures normally included in annual financial statements have been omitted or condensed pursuant to such regulations. These statements, which should be read in conjunction with the December 31, 2012 consolidated financial statements of the Company, reflect all adjustments, consisting of normal recurring adjustments, including impairments necessary to present fairly the consolidated financial position, results of operations and cash flows for such periods. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2013. | ||
The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. | ||
Use of Estimates in the Preparation of Financial Statements – 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 and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. On an ongoing basis, the Company evaluates the estimates and assumptions, including those related to revenue recognition, bad debts, fixed assets, goodwill and other intangible assets, stock-based compensation, income taxes, benefit plans and certain accruals and contingencies. Actual results could differ from those estimates. | ||
New Accounting Pronouncements – In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, Comprehensive Income (Topic 220) – Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this ASU require entities to provide information about amounts reclassified out of accumulated other comprehensive income by component, and to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, or cross-reference to other disclosures, based on certain criteria. ASU 2013-02 is effective prospectively for reporting periods beginning after December 15, 2012; early adoption is permitted. The Company has adopted this guidance. The adoption of this ASU did not materially impact the presentation of its financial condition, results of operation and disclosures. | ||
In addition, the Company has evaluated and adopted the guidance of ASU No. 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment issued in July 2012. The amendments in this ASU give entities the option to first assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that an indefinite-lived intangible asset is impaired. If impairment is indicated, the fair value of the indefinite–lived intangible asset should be determined and the quantitative impairment test should be performed by comparing the fair value with the carrying amount in accordance with Subtopic 350-30; if impairment is not indicated, the entity is not required to take further action. The adoption of this ASU did not impact the presentation of the Company’s financial condition, results of operation and disclosures. | ||
In October 2012, the FASB issued ASU No. 2012-04, which makes technical corrections, clarifications and limited-scope improvements to various topics throughout the Codification. The amendments in this ASU that do not have transition guidance and are effective upon issuance and the amendments that are subject to transition guidance will be effective for the Company’s interim and annual reporting periods beginning January 1, 2013. The adoption of this guidance did not impact on the Company’s consolidated financial statements. | ||
In August 2012, the FASB issued ASU No. 2012-03, which amends and corrects various sections in the Codification pursuant to Staff Accounting Bulletin (“SAB”) No. 114, SEC Release No. 33-9250 and ASU No. 2010-22. The amendments and corrections in this ASU are effective upon issuance. The adoption of this guidance did not impact on the Company’s consolidated financial statements. | ||
Stock-Based Compensation –The accompanying condensed consolidated statements of operations include stock-based compensation expense of approximately $0.1 million and $0.6 million for the three months ended September 30, 2013 and 2012, respectively, and $2.5 million and $2.6 million for the nine months ended September 30, 2013 and 2012, respectively. The Company uses the Black-Scholes valuation model for stock options and utilizes straight-line amortization of compensation expense over the requisite service period of the grant. The Company makes an estimate of expected forfeitures at the time options are granted. | ||
Income Taxes – The Company accounts for income taxes in accordance with FASB ASC Topic 740, “Income Taxes” (“ASC 740”). This statement requires an asset and a liability approach for measuring deferred taxes based on temporary differences between the financial statement and tax bases of assets and liabilities existing at each balance sheet date using enacted tax rates for years in which taxes are expected to be paid or recovered. | ||
In accordance with ASC 740, the Company assesses our deferred tax asset to determine whether all or any portion of the asset is more likely than not unrealizable. A valuation allowance is required to be established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized. In accordance with ASC 740, our assessment considers whether there has been sufficient income in recent years and whether sufficient income is expected in future years in order to utilize the deferred tax asset. In evaluating the realizability of deferred income tax assets, the Company considered, among other things, historical levels of income, expected future income, the expected timing of the reversals of existing temporary reporting differences, and the expected impact of tax planning strategies that may be implemented to prevent the potential loss of future income tax benefits. Significant judgment is required in determining the future tax consequences of events that have been recognized in our consolidated financial statements and/or tax returns. Differences between anticipated and actual outcomes of these future tax consequences could have a material impact on our consolidated financial position or results of operations. Changes in, among other things, income tax legislation, statutory income tax rates, or future income levels could materially impact our valuation of income tax assets and liabilities and could cause our income tax provision to vary significantly among financial reporting periods. | ||
The Company has net deferred tax assets (excluding indefinite life intangibles) of $28.4 million as of September 30, 2013. As of September 30, 2013, the Company weighed the positive and negative evidence available and concluded it was more likely than not that deferred assets would be recoverable and therefore did not record a valuation allowance. If the Company continues to incur net losses in future periods it might need to establish a valuation allowance. This could significantly impact the Company's consolidated financial position and results of operations. |
WEIGHTED_AVERAGE_COMMON_SHARES
WEIGHTED AVERAGE COMMON SHARES | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
WEIGHTED AVERAGE COMMON SHARES [Abstract] | ' | ||||||||||||||||
WEIGHTED AVERAGE COMMON SHARES | ' | ||||||||||||||||
2 | WEIGHTED AVERAGE COMMON SHARES | ||||||||||||||||
The weighted average number of common shares used to compute basic and diluted loss per share for the three and nine months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic shares outstanding | 22,528,478 | 22,194,731 | 22,480,308 | 22,171,757 | |||||||||||||
Dilutive effect of stock options | - | 86,402 | - | - | |||||||||||||
Diluted shares outstanding | 22,528,478 | 22,281,133 | 22,480,308 | 22,171,757 | |||||||||||||
For the three months ended September 30, 2013 options to acquire 282,678 shares were excluded from the above table because the Company reported a net loss for the quarter and therefore their impact on reported loss per share would have been antidilutive. For the nine months ended September 30, 2013 and 2012, options to acquire 234,073 and 304,333 shares, respectively, were excluded from the above table because the Company reported a net loss for the nine month and therefore their impact on reported loss per share would have been antidilutive. For the three and nine months ended September 30, 2013 and 2012, options to acquire 785,768 and 304,333 shares, respectively, were excluded from the above table because they have an exercise price that is greater than the average market price of the Company’s common stock and therefore their impact on reported loss per share would have been antidilutive. | |||||||||||||||||
In 2011 and 2013, the Company issued performance shares that vest when certain performance conditions are satisfied. As of September 30, 2013, these performance conditions were not met. As a result, the Company has determined these shares to be contingently issuable. Accordingly, 441,552 shares of outstanding performance shares have been excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2013, and 100,602 shares have been excluded for the three and nine months ended September 30, 2012. Refer to Note 7 for more information on performance shares. |
BUSINESS_ACQUISITION
BUSINESS ACQUISITION | 9 Months Ended | |
Sep. 30, 2013 | ||
BUSINESS ACQUISITION [Abstract] | ' | |
BUSINESS ACQUISITION | ' | |
3 | BUSINESS ACQUISITION | |
On April 18, 2012, the Company acquired all of the rights, title and interest in certain assets and liabilities of Florida Medical Training Institute, Inc. (“FMTI”) for total consideration of $1.7 million, net of cash acquired. FMTI has five locations in Florida: Melbourne, Jacksonville, Tampa, Miami and Coral Springs. FMTI currently offers certificate programs in the fields of Emergency Medical Technician, Paramedic, EKG/Phlebotomy, Nursing Assistant, Fire Fighter and Associate of Science Degrees in Emergency Medical Services and Fire Science Technology. The purchase price allocation resulted in $2.9 million allocated to assets, including $2.4 million to intangible assets and $1.4 million to liabilities. The goodwill is tax deductible and represents the value of entering a new market and businesses that generates non-Title IV funding. |
COSTS_ASSOCIATED_WITH_EXIT_OR_
COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES AND DISCONTINUED OPERATIONS | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES AND DISCONTINUED OPERATIONS [Abstract] | ' | ||||||||||||||||||||
COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES AND DISCONTINUED OPERATIONS | ' | ||||||||||||||||||||
4 | COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES AND DISCONTINUED OPERATIONS | ||||||||||||||||||||
a) Costs Associated with Exit or Disposal Activities | |||||||||||||||||||||
On June 18, 2013, the Company’s Board of Directors approved a plan to cease operations at four campuses in Ohio and one campus in Kentucky consisting of the Company’s Dayton institution and its branch campuses. Federal legislation implemented on July 1, 2012 that prohibits “ability to benefit” students from participating in federal student financial aid programs led to a dramatic decrease in the number of students attending these five campuses. As a result, the Company adopted a plan to cease operations at these campuses and, in accordance with the plan, the Company stopped admitting new students at these five campuses, but provided currently enrolled students who were scheduled to graduate before December 31, 2013 with the ability to complete their course of study at these five campuses. The Company expects all operations at these campuses to cease by December 31, 2013 at which time the results of operations for these campuses will be reflected as discontinued operations in the Company’s financial statements. | |||||||||||||||||||||
The results of operations at these five campuses for the three and nine months ended September 30, 2013 and for the fiscal years ended December 31, 2012, 2011 and 2010 were as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | Year Ended December 31, | |||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2013 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
Revenue | $ | (18 | ) | $ | 7,261 | $ | 19,924 | $ | 35,099 | $ | 61,028 | ||||||||||
Operating expenses | (3,898 | ) | (19,322 | ) | (33,564 | ) | (29,885 | ) | (31,947 | ) | |||||||||||
Operating (loss) income | $ | (3,916 | ) | $ | (12,061 | ) | $ | (13,640 | ) | $ | 5,214 | $ | 29,081 | ||||||||
Amounts include impairments of goodwill and long-lived assets for these campuses of $2.3 million and $8.7 million for the nine months ended September 30, 2013 and for the year ended December 31, 2012, respectively. For the three months ended September 30, 2013, the accompanying financial statements reflect $1.5 million of refunds to students as a reduction of revenue and $0.2 million of accrued compensation related to severance and stay bonuses at these campuses. For the nine months ended September 30, 2013, amounts include $1.5 million of student refunds as a reduction of revenue and $1.2 million of accrued compensation related to severance and stay bonuses at these campuses. | |||||||||||||||||||||
b) Discontinued Operations | |||||||||||||||||||||
On July 31, 2012, the Company’s Board of Directors approved a plan to cease operations at seven campuses. The adjustments made to the Company’s business model to better align with the U.S. Department of Education’s (“DOE”) increased emphasis on student outcomes and the Company’s efforts to comply with the 90/10 rule and cohort default rates greatly impacted the population at these campuses. In addition, the current economic environment and regulatory changes under the Consolidated Appropriations Act, 2012, which eliminated the ability to enroll “ability to benefit” students, have made these campuses no longer viable. Accordingly, the Company ceased operations at these campuses as of December 31, 2012. The results of operations are reflected as discontinued operations in the condensed consolidated financial statements. | |||||||||||||||||||||
The results of operations at these seven campuses for the three and nine months ended September 30, 2012 were as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2012 | 2012 | ||||||||||||||||||||
Revenue | $ | 2,087 | $ | 9,134 | |||||||||||||||||
Loss before income taxes | (4,277 | ) | (17,173 | ) | |||||||||||||||||
Income tax benefit | (1,707 | ) | (6,854 | ) | |||||||||||||||||
Net loss from discontinued operations | $ | (2,570 | ) | $ | (10,319 | ) |
GOODWILL_AND_LONGLIVED_ASSETS
GOODWILL AND LONG-LIVED ASSETS | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
GOODWILL AND LONG-LIVED ASSETS [Abstract] | ' | ||||||||||||||||||||||||||||
GOODWILL AND LONG-LIVED ASSETS | ' | ||||||||||||||||||||||||||||
5 | GOODWILL AND LONG-LIVED ASSETS | ||||||||||||||||||||||||||||
There was no long-lived asset impairment during the three months ended September 30, 2013. The Company reviews long-lived assets for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The Company concluded that as of June 30, 2013, March 31, 2013, and June 30, 2012, there was sufficient evidence to conclude that there were impairments of certain long-lived assets at four, two, and ten of our campuses respectively. Long lived assets had been tested at these campuses as a result of certain financial indicators such as our history of losses, our current respective period losses, as well as future projected losses at these campuses. The long-lived assets impairment resulted in a pre-tax charge of $1.4 million and $1.7 million for leasehold improvements as of June 30, 2013 and March 31, 2013, respectively, and a pre-tax charge of $8.3 million as of June 30, 2012 (which included leasehold improvements of $8.1 million and definite-lived intangible assets of $0.2 million, of which $4.0 million is included in discontinued operations). | |||||||||||||||||||||||||||||
There was no goodwill impairment during the three months ended September 30, 2013. As of June 30, 2013, the Company concluded that current period losses at two reporting units, which resulted in a deterioration of current and projected cash flows, was an indicator of potential impairment and, accordingly, tested goodwill and long-lived assets for impairment. The tests indicated that these two reporting units were impaired, which resulted in a pre-tax non-cash charge of $3.1 million for the three months ended June 30, 2013. | |||||||||||||||||||||||||||||
The Company concluded that the decrease in the Company’s market capitalization as of June 30, 2012 was an indicator of potential impairment and, accordingly, the Company tested goodwill for impairment. The tests indicated that five of the Company’s reporting units were impaired as a result of lower than expected student population, which resulted in a pre-tax non-cash charge of $15.4 million ($5.5 million included in discontinued operations) in the second quarter of 2012. The fair values of these reporting units were estimated using the expected present value of future cash flows. | |||||||||||||||||||||||||||||
The carrying amount of goodwill at September 30, 2013 is as follows: | |||||||||||||||||||||||||||||
Gross | Accumulated | Net | |||||||||||||||||||||||||||
Goodwill | Impairment | Goodwill | |||||||||||||||||||||||||||
Balance | Losses | Balance | |||||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 117,176 | $ | (51,649 | ) | $ | 65,527 | ||||||||||||||||||||||
Goodwill impairment | - | (3,062 | ) | (3,062 | ) | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 117,176 | $ | (54,711 | ) | $ | 62,465 | ||||||||||||||||||||||
Intangible assets, which are included in other assets in the accompanying condensed consolidated balance sheets, consist of the following: | |||||||||||||||||||||||||||||
Student | Indefinite | Trade | Accreditation | Curriculum | Non-compete | Total | |||||||||||||||||||||||
Contracts | Trade | Name | |||||||||||||||||||||||||||
Name | |||||||||||||||||||||||||||||
Gross carrying amount at December 31, 2012 | $ | 25 | $ | 180 | $ | 366 | $ | 1,268 | $ | 1,124 | $ | 200 | $ | 3,163 | |||||||||||||||
Write-off (1) | (25 | ) | - | (31 | ) | - | - | - | (56 | ) | |||||||||||||||||||
Gross carrying amount at September 30, 2013 | - | 180 | 335 | 1,268 | 1,124 | 200 | 3,107 | ||||||||||||||||||||||
Accumulated amortization at December 31, 2012 | 25 | - | 209 | - | 670 | 28 | 932 | ||||||||||||||||||||||
Write-off (1) | (25 | ) | - | (31 | ) | - | - | - | (56 | ) | |||||||||||||||||||
Amortization | - | - | 37 | - | 101 | 30 | 168 | ||||||||||||||||||||||
Accumulated amortization at September 30, 2013 | - | - | 215 | - | 771 | 58 | 1,044 | ||||||||||||||||||||||
Net carrying amount at September 30, 2013 | $ | - | $ | 180 | $ | 120 | $ | 1,268 | $ | 353 | $ | 142 | $ | 2,063 | |||||||||||||||
Weighted average amortization period (years) | Indefinite | 7 | Indefinite | 9 | 3 | ||||||||||||||||||||||||
-1 | The Company wrote-off the value of fully amortized assets not in service. | ||||||||||||||||||||||||||||
Amortization of intangible assets was approximately $0.1 million for each of the three months ended September 30, 2013 and 2012, and approximately $0.2 million for each of the nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||||||
The following table summarizes the estimated future amortization expense: | |||||||||||||||||||||||||||||
Year Ending December 31, | |||||||||||||||||||||||||||||
Remainder of 2013 | $ | 56 | |||||||||||||||||||||||||||
2014 | 224 | ||||||||||||||||||||||||||||
2015 | 156 | ||||||||||||||||||||||||||||
2016 | 112 | ||||||||||||||||||||||||||||
2017 | 46 | ||||||||||||||||||||||||||||
Thereafter | 21 | ||||||||||||||||||||||||||||
$ | 615 |
LONGTERM_DEBT_AND_LEASE_OBLIGA
LONG-TERM DEBT AND LEASE OBLIGATIONS | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
LONG-TERM DEBT AND LEASE OBLIGATIONS [Abstract] | ' | ||||||||
LONG-TERM DEBT AND LEASE OBLIGATIONS | ' | ||||||||
6 | LONG-TERM DEBT AND LEASE OBLIGATIONS | ||||||||
Long-term debt and lease obligations consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Credit agreement (a) | $ | - | $ | 37,500 | |||||
Finance obligation (b) | 9,672 | 9,672 | |||||||
Capital lease-property (rate of 8.0%) (c) | 26,047 | 26,344 | |||||||
Capital leases-equipment (rates ranging from 5.0% to 8.5%) | - | 11 | |||||||
35,719 | 73,527 | ||||||||
Less current maturities | (426 | ) | (412 | ) | |||||
$ | 35,293 | $ | 73,115 | ||||||
(a) On April 5, 2012, the Company, as borrower, and certain of its wholly-owned subsidiaries, as guarantors, entered into a secured revolving credit agreement (the “Credit Agreement”) with a syndicate of four lenders led by Bank of America, N.A., as administrative agent, swing line lender and letter of credit issuer, for an aggregate principal amount of up to $85 million (the “Credit Facility”). On June 18, 2013, the Company, as borrower, and certain of its wholly-owned subsidiaries, as guarantors, entered into an amendment to the Credit Agreement (the “Amendment to the Credit Agreement”). | |||||||||
Under the Credit Agreement, the Company has the right to increase the aggregate amount available under the Credit Facility by up to $50 million upon satisfaction of certain conditions. The Credit Facility may be used to finance capital expenditures and permitted acquisitions, to pay transaction expenses, for the issuance of letters of credit and for general corporate purposes. The Credit Agreement includes a $5 million swing line sublimit and a $25 million letter of credit sublimit. Borrowings under the Credit Facility are secured by a first priority lien on substantially all of the tangible and intangible assets of the Company and its subsidiaries exclusive of real estate. The term of the Credit Facility is 36 months, maturing on April 5, 2015. | |||||||||
Amounts borrowed as revolving loans under the Credit Facility will bear interest, at the Company’s option, at either (i) an interest rate based on LIBOR and adjusted for any reserve percentage obligations under Federal Reserve Bank regulations (the “Eurodollar Rate”) for specified interest periods or (ii) the Base Rate (as defined in the Credit Agreement), in each case, plus an applicable margin rate as determined under the Credit Agreement. The “Base Rate”, as defined under the Credit Agreement, is the highest of (a) the prime rate, (b) the Federal Funds rate plus 0.50% and (c) a daily rate equal to the one-month LIBOR rate plus 1.0%. Under the Credit Agreement, the margin interest rate is subject to adjustment within a range of 1.25% to 2.75% based upon changes in the Company’s consolidated leverage ratio and depending on whether the Company has chosen the Eurodollar Rate or the Base Rate option. Swing line loans will bear interest at the Base Rate plus the applicable margin rate. Letters of credit will require a fee equal to the applicable margin rate multiplied by the daily amount available to be drawn under each issued letter of credit plus an agreed upon fronting fee and customary issuance, presentation, amendment and other processing fees associated with letters of credit. At September 30, 2013, the Company had outstanding letters of credit aggregating $5.3 million, which were primarily comprised of letters of credit for the DOE matters and real estate leases. | |||||||||
The Amendment to the Credit Agreement reduced the aggregate principal amount available under the Credit Facility from $85 million to $60 million. The Credit Facility continues to provide the Company with a $25 million letter of credit sublimit and a $5 million swing line sublimit, the availability of which will be at the discretion of the swing line lender, and the right to increase the aggregate amount available under the Credit Facility by up to $50 million upon the satisfaction of certain conditions. The Amendment to the Credit Agreement includes certain revisions relevant to the calculation of consolidated leverage ratio and consolidated fixed charge coverage ratio. | |||||||||
The Amendment to the Credit Agreement contains customary representations, warranties and covenants including consolidated adjusted net worth, consolidated leverage ratio, consolidated fixed charge coverage ratio, minimum financial responsibility composite score, cohort default rate and other financial covenants, certain restrictions on capital expenditures as well as affirmative and negative covenants and events of default customary for facilities of this type. In addition, the Company is paying fees to the lenders that are customary for facilities of this type. As of September 30, 2013, the Company is in compliance with all financial covenants under the Credit Agreement, as amended. | |||||||||
During the three months ended September 30, 2013 the Company borrowed and subsequently repaid $5.0 million under the facility. The interest rates on these borrowings ranged from 4.5% to 4.75%. As of September 30, 2013, the Company had no amounts outstanding under the Credit Agreement as amended. The Company had $37.5 million outstanding under the Credit Agreement as of December 31, 2012. The interest rate on this borrowing was 4.5%. | |||||||||
(b) The Company completed a sale and a leaseback of several facilities on December 28, 2001. The Company retains a continuing involvement in the lease and, as a result, it is prohibited from utilizing sale-leaseback accounting. Accordingly, the Company has treated this transaction as a finance lease. The lease expires on December 31, 2016. | |||||||||
(c) In 2009, the Company assumed real estate capital leases in Fern Park, Florida and Hartford, Connecticut. These leases bear interest at 8% and expire in 2032 and 2031, respectively. | |||||||||
Scheduled maturities of long-term debt and lease obligations at September 30, 2013 are as follows: | |||||||||
Year ending December 31, | |||||||||
2013 | $ | 426 | |||||||
2014 | 462 | ||||||||
2015 | 515 | ||||||||
2016 | 10,405 | ||||||||
2017 | 623 | ||||||||
Thereafter | 23,288 | ||||||||
$ | 35,719 |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
STOCKHOLDERS' EQUITY [Abstract] | ' | |||||||||||||||||||||
STOCKHOLDERS' EQUITY | ' | |||||||||||||||||||||
7 | STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Restricted Stock | ||||||||||||||||||||||
The Company has two stock incentive plans: a Long-Term Incentive Plan (the “LTIP”) and a Non-Employee Directors Restricted Stock Plan (the “Non-Employee Directors Plan”). | ||||||||||||||||||||||
Under the LTIP, certain employees received awards of restricted shares of common stock based on service and performance. The number of shares granted to each employee is based on the fair market value of a share of common stock on the date of grant. | ||||||||||||||||||||||
All service-based restricted shares granted prior to February 23, 2011 vest ratably on the first through fifth anniversaries of the grant date. The service-based restricted shares granted on or after February 23, 2011 vest ratably on the grant date and the first through fourth anniversaries of the grant date except for the service-based restricted shares granted on March 2, 2012 which vested fully on the first anniversary of the grant date. | ||||||||||||||||||||||
On April 29, 2013, performance-based shares were granted which vest over four years based upon the attainment of (i) a specified operating income margin during any one or more of the fiscal years in the period beginning January 1, 2013 and ending December 31, 2016 and (ii) the attainment of earnings before interest, taxes, depreciation and amortization targets during each of the fiscal years ended December 31, 2013 through 2016. There is no vesting period on the right to vote or the right to receive dividends on any of the restricted shares. | ||||||||||||||||||||||
On April 29, 2011, performance-based shares were granted which vest over four years based upon the attainment of (i) a specified operating income margin during any one or more of the fiscal years in the period beginning January 1, 2011 and ending December 31, 2014 and (ii) the attainment of earnings before interest, taxes, depreciation and amortization targets during each of the fiscal years ended December 31, 2011 through 2014. There is no vesting period on the right to vote or the right to receive dividends on any of the restricted shares. | ||||||||||||||||||||||
Pursuant to the Non-Employee Directors Plan, each non-employee director of the Company receives an annual award of restricted shares of common stock on the date of the Company’s annual meeting of shareholders. The number of shares granted to each non-employee director is based on the fair market value of a share of common stock on that date. The restricted shares vest on the first anniversary of the grant date; however, there is no vesting period on the right to vote or the right to receive dividends on these restricted shares. | ||||||||||||||||||||||
For the nine months ended September 30, 2013 and 2012, the Company completed a net share settlement for 60,552 and 24,488 restricted shares, respectively, on behalf of certain employees that participate in the LTIP upon the vesting of the restricted shares pursuant to the terms of the LTIP. The net share settlement was in connection with income taxes incurred on restricted shares that vested and were transferred to the employee during 2013 and/or 2012, creating taxable income for the employee. At the employees’ request, the Company will pay these taxes on behalf of the employees in exchange for the employees returning an equivalent value of restricted shares to the Company. These transactions resulted in a decrease of approximately $0.4 million and $0.2 million for the nine months ended September 30, 2013 and 2012, respectively, to equity on the consolidated balance sheets as the cash payment of the taxes effectively was a repurchase of the restricted shares granted in previous years. | ||||||||||||||||||||||
The following is a summary of transactions pertaining to restricted stock: | ||||||||||||||||||||||
Shares | Weighted | |||||||||||||||||||||
Average Grant | ||||||||||||||||||||||
Date Fair Value | ||||||||||||||||||||||
Per Share | ||||||||||||||||||||||
Nonvested restricted stock outstanding at December 31, 2012 | 1,341,084 | $ | 7.79 | |||||||||||||||||||
Granted | 434,308 | 5.62 | ||||||||||||||||||||
Canceled | (33,529 | ) | 16.7 | |||||||||||||||||||
Vested | (271,396 | ) | 8.52 | |||||||||||||||||||
Nonvested restricted stock outstanding at September 30, 2013 | 1,470,467 | 6.66 | ||||||||||||||||||||
The restricted stock expense for the three months ended September 30, 2013 and 2012 was $0.1 million and $0.5 million, respectively. The restricted stock expense for each of the nine months ended September 30, 2013 and 2012 was $2.3 million. The unrecognized restricted stock expense as of September 30, 2013 and December 31, 2012 was $8.2 million and $8.6 million, respectively. As of September 30, 2013, outstanding restricted shares under the LTIP had aggregate intrinsic value of $6.8 million. | ||||||||||||||||||||||
Stock Options | ||||||||||||||||||||||
The fair value of the stock options used to compute stock-based compensation is the estimated present value at the date of grant using the Black-Scholes option pricing model. The following is a summary of transactions pertaining to stock options: | ||||||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||||||||||
Average | Average | Intrinsic Value | ||||||||||||||||||||
Exercise Price | Remaining | (in thousands) | ||||||||||||||||||||
Per Share | Contractual | |||||||||||||||||||||
Term | ||||||||||||||||||||||
Outstanding at December 31, 2012 | 655,875 | $ | 14.72 | 4.89 years | $ | - | ||||||||||||||||
Canceled | (21,000 | ) | 17.31 | - | ||||||||||||||||||
Outstanding at September 30, 2013 | 634,875 | 14.63 | 4.16 years | - | ||||||||||||||||||
Vested or expected to vest | 615,277 | 14.85 | 4.03 years | - | ||||||||||||||||||
Exercisable as of September 30, 2013 | 536,884 | 15.88 | 3.38 years | - | ||||||||||||||||||
As of September 30, 2013, the unrecognized pre-tax compensation expense for all unvested stock option awards was $0.2 million. This amount will be expensed over the weighted-average period of approximately 2.13 years. | ||||||||||||||||||||||
The following table presents a summary of stock options outstanding: | ||||||||||||||||||||||
At September 30, 2013 | ||||||||||||||||||||||
Stock Options Outstanding | Stock Options Exercisable | |||||||||||||||||||||
Range of Exercise Prices | Shares | Contractual | Weighted | Shares | Weighted | |||||||||||||||||
Weighted | Average Price | Average Exercise | ||||||||||||||||||||
Average Life | Price | |||||||||||||||||||||
(years) | ||||||||||||||||||||||
$4.00-$13.99 | 259,792 | 6.39 | $ | 9.6 | 161,801 | $ | 10.7 | |||||||||||||||
$14.00-$19.99 | 270,083 | 2.47 | 16.48 | 270,083 | 16.48 | |||||||||||||||||
$20.00-$25.00 | 105,000 | 3.02 | 22.33 | 105,000 | 22.33 | |||||||||||||||||
634,875 | 4.16 | 14.63 | 536,884 | 15.88 |
INCOME_TAXES
INCOME TAXES | 9 Months Ended | |
Sep. 30, 2013 | ||
INCOME TAXES [Abstract] | ' | |
INCOME TAXES | ' | |
8 | INCOME TAXES | |
The benefit for income taxes for the three months ended September 30, 2013 was $1.5 million, or 39.5% of pretax loss, compared to a benefit for income taxes of $0.3 million, or (41.4%) of pretax income for the three months ended September 30, 2012. The effective tax rate decrease was due to the effect of permanent items compared to projected higher loss for the year. | ||
The benefit for income taxes for the nine months ended September 30, 2013 was $12.3 million, or 39.2% of pretax loss, compared to a benefit for income taxes of $5.9 million, or 28.5% of pretax loss for the nine months ended September 30, 2012. The increased benefit and effective tax rate increase was due to the effect of nondeductible permanent items mainly comprised of certain goodwill impairment charges recorded during the nine months ended September 30, 2012. |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended | |
Sep. 30, 2013 | ||
CONTINGENCIES [Abstract] | ' | |
CONTINGENCIES | ' | |
9 | CONTINGENCIES | |
In the ordinary conduct of its business, the Company is subject to lawsuits, investigations and claims, including, but not limited to, claims involving students or graduates and routine employment matters. Although the Company cannot predict with certainty the ultimate resolution of lawsuits, investigations and claims asserted against it, the Company does not believe that any currently pending legal proceedings to which it is a party will have a material adverse effect on the Company’s business, financial condition, and results of operations or cash flows. |
PENSION_PLAN
PENSION PLAN | 9 Months Ended | |
Sep. 30, 2013 | ||
PENSION PLAN [Abstract] | ' | |
PENSION PLAN | ' | |
10 | PENSION PLAN | |
The Company sponsors a noncontributory defined benefit pension plan covering substantially all of the Company’s union employees. Benefits are provided based on employees’ years of service and earnings. This plan was frozen on December 31, 1994 for non-union employees. The total amount of the Company’s contributions paid under its pension plan was $0.7 million for the nine months ended September 30, 2013 and $0.5 million for the nine months ended September 30, 2012. The net periodic benefit cost was $0.2 million for each of the three months ended September 30, 2013 and 2012 and $0.5 million and $0.6 million for the nine months ended September 30, 2013 and 2012, respectively. |
DIVIDENDS
DIVIDENDS | 9 Months Ended | |
Sep. 30, 2013 | ||
DIVIDENDS [Abstract] | ' | |
DIVIDENDS | ' | |
11 | DIVIDENDS | |
In September 2013, the Company’s Board of Directors declared a quarterly cash dividend of $0.07 per share of common stock outstanding, which was paid on September 30, 2013 to shareholders of record on September 13, 2013. The establishment of future record and payment dates is subject to the final determination of the Company’s Board of Directors. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' |
Business Activities | ' |
Business Activities – Lincoln Educational Services Corporation and Subsidiaries (the “Company”) is a provider of diversified career-oriented post-secondary education. The Company offers recent high school graduates and working adults career-oriented programs in five areas of study: Automotive Technology, Health Sciences, Skilled Trades, Hospitality Services and Business and Information Technology. The Company currently has 38 campuses and five training sites across 17 states across the United States. | |
Basis of Presentation | ' |
Basis of Presentation – The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Certain information and footnote disclosures normally included in annual financial statements have been omitted or condensed pursuant to such regulations. These statements, which should be read in conjunction with the December 31, 2012 consolidated financial statements of the Company, reflect all adjustments, consisting of normal recurring adjustments, including impairments necessary to present fairly the consolidated financial position, results of operations and cash flows for such periods. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2013. | |
The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |
Use of Estimates in the Preparation of Financial Statements | ' |
Use of Estimates in the Preparation of Financial Statements – 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 and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. On an ongoing basis, the Company evaluates the estimates and assumptions, including those related to revenue recognition, bad debts, fixed assets, goodwill and other intangible assets, stock-based compensation, income taxes, benefit plans and certain accruals and contingencies. Actual results could differ from those estimates. | |
New Accounting Pronouncements | ' |
New Accounting Pronouncements – In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, Comprehensive Income (Topic 220) – Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this ASU require entities to provide information about amounts reclassified out of accumulated other comprehensive income by component, and to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, or cross-reference to other disclosures, based on certain criteria. ASU 2013-02 is effective prospectively for reporting periods beginning after December 15, 2012; early adoption is permitted. The Company has adopted this guidance. The adoption of this ASU did not materially impact the presentation of its financial condition, results of operation and disclosures. | |
In addition, the Company has evaluated and adopted the guidance of ASU No. 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment issued in July 2012. The amendments in this ASU give entities the option to first assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that an indefinite-lived intangible asset is impaired. If impairment is indicated, the fair value of the indefinite–lived intangible asset should be determined and the quantitative impairment test should be performed by comparing the fair value with the carrying amount in accordance with Subtopic 350-30; if impairment is not indicated, the entity is not required to take further action. The adoption of this ASU did not impact the presentation of the Company’s financial condition, results of operation and disclosures. | |
In October 2012, the FASB issued ASU No. 2012-04, which makes technical corrections, clarifications and limited-scope improvements to various topics throughout the Codification. The amendments in this ASU that do not have transition guidance and are effective upon issuance and the amendments that are subject to transition guidance will be effective for the Company’s interim and annual reporting periods beginning January 1, 2013. The adoption of this guidance did not impact on the Company’s consolidated financial statements. | |
In August 2012, the FASB issued ASU No. 2012-03, which amends and corrects various sections in the Codification pursuant to Staff Accounting Bulletin (“SAB”) No. 114, SEC Release No. 33-9250 and ASU No. 2010-22. The amendments and corrections in this ASU are effective upon issuance. The adoption of this guidance did not impact on the Company’s consolidated financial statements. | |
Stock-Based Compensation | ' |
Stock-Based Compensation –The accompanying condensed consolidated statements of operations include stock-based compensation expense of approximately $0.1 million and $0.6 million for the three months ended September 30, 2013 and 2012, respectively, and $2.5 million and $2.6 million for the nine months ended September 30, 2013 and 2012, respectively. The Company uses the Black-Scholes valuation model for stock options and utilizes straight-line amortization of compensation expense over the requisite service period of the grant. The Company makes an estimate of expected forfeitures at the time options are granted. | |
Income Taxes | ' |
Income Taxes – The Company accounts for income taxes in accordance with FASB ASC Topic 740, “Income Taxes” (“ASC 740”). This statement requires an asset and a liability approach for measuring deferred taxes based on temporary differences between the financial statement and tax bases of assets and liabilities existing at each balance sheet date using enacted tax rates for years in which taxes are expected to be paid or recovered. | |
In accordance with ASC 740, the Company assesses our deferred tax asset to determine whether all or any portion of the asset is more likely than not unrealizable. A valuation allowance is required to be established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized. In accordance with ASC 740, our assessment considers whether there has been sufficient income in recent years and whether sufficient income is expected in future years in order to utilize the deferred tax asset. In evaluating the realizability of deferred income tax assets, the Company considered, among other things, historical levels of income, expected future income, the expected timing of the reversals of existing temporary reporting differences, and the expected impact of tax planning strategies that may be implemented to prevent the potential loss of future income tax benefits. Significant judgment is required in determining the future tax consequences of events that have been recognized in our consolidated financial statements and/or tax returns. Differences between anticipated and actual outcomes of these future tax consequences could have a material impact on our consolidated financial position or results of operations. Changes in, among other things, income tax legislation, statutory income tax rates, or future income levels could materially impact our valuation of income tax assets and liabilities and could cause our income tax provision to vary significantly among financial reporting periods. | |
The Company has net deferred tax assets (excluding indefinite life intangibles) of $28.4 million as of September 30, 2013. As of September 30, 2013, the Company weighed the positive and negative evidence available and concluded it was more likely than not that deferred assets would be recoverable and therefore did not record a valuation allowance. If the Company continues to incur net losses in future periods it might need to establish a valuation allowance. This could significantly impact the Company's consolidated financial position and results of operations. |
WEIGHTED_AVERAGE_COMMON_SHARES1
WEIGHTED AVERAGE COMMON SHARES (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
WEIGHTED AVERAGE COMMON SHARES [Abstract] | ' | ||||||||||||||||
Weighted average numbers of common shares used to compute basic and diluted income per share | ' | ||||||||||||||||
The weighted average number of common shares used to compute basic and diluted loss per share for the three and nine months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic shares outstanding | 22,528,478 | 22,194,731 | 22,480,308 | 22,171,757 | |||||||||||||
Dilutive effect of stock options | - | 86,402 | - | - | |||||||||||||
Diluted shares outstanding | 22,528,478 | 22,281,133 | 22,480,308 | 22,171,757 |
COSTS_ASSOCIATED_WITH_EXIT_OR_1
COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES AND DISCONTINUED OPERATIONS (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES AND DISCONTINUED OPERATIONS [Abstract] | ' | ||||||||||||||||||||
Result of operations to be discontinued | ' | ||||||||||||||||||||
The results of operations at these five campuses for the three and nine months ended September 30, 2013 and for the fiscal years ended December 31, 2012, 2011 and 2010 were as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | Year Ended December 31, | |||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2013 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
Revenue | $ | (18 | ) | $ | 7,261 | $ | 19,924 | $ | 35,099 | $ | 61,028 | ||||||||||
Operating expenses | (3,898 | ) | (19,322 | ) | (33,564 | ) | (29,885 | ) | (31,947 | ) | |||||||||||
Operating (loss) income | $ | (3,916 | ) | $ | (12,061 | ) | $ | (13,640 | ) | $ | 5,214 | $ | 29,081 | ||||||||
Results of operations at seven campuses | ' | ||||||||||||||||||||
The results of operations at these seven campuses for the three and nine months ended September 30, 2012 were as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2012 | 2012 | ||||||||||||||||||||
Revenue | $ | 2,087 | $ | 9,134 | |||||||||||||||||
Loss before income taxes | (4,277 | ) | (17,173 | ) | |||||||||||||||||
Income tax benefit | (1,707 | ) | (6,854 | ) | |||||||||||||||||
Net loss from discontinued operations | $ | (2,570 | ) | $ | (10,319 | ) |
GOODWILL_AND_LONGLIVED_ASSETS_
GOODWILL AND LONG-LIVED ASSETS (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
GOODWILL AND LONG-LIVED ASSETS [Abstract] | ' | ||||||||||||||||||||||||||||
Changes in carrying amount of goodwill | ' | ||||||||||||||||||||||||||||
The carrying amount of goodwill at September 30, 2013 is as follows: | |||||||||||||||||||||||||||||
Gross | Accumulated | Net | |||||||||||||||||||||||||||
Goodwill | Impairment | Goodwill | |||||||||||||||||||||||||||
Balance | Losses | Balance | |||||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 117,176 | $ | (51,649 | ) | $ | 65,527 | ||||||||||||||||||||||
Goodwill impairment | - | (3,062 | ) | (3,062 | ) | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 117,176 | $ | (54,711 | ) | $ | 62,465 | ||||||||||||||||||||||
Summary of finite-lived and indefinite-lived intangible assets | ' | ||||||||||||||||||||||||||||
Intangible assets, which are included in other assets in the accompanying condensed consolidated balance sheets, consist of the following: | |||||||||||||||||||||||||||||
Student | Indefinite | Trade | Accreditation | Curriculum | Non-compete | Total | |||||||||||||||||||||||
Contracts | Trade | Name | |||||||||||||||||||||||||||
Name | |||||||||||||||||||||||||||||
Gross carrying amount at December 31, 2012 | $ | 25 | $ | 180 | $ | 366 | $ | 1,268 | $ | 1,124 | $ | 200 | $ | 3,163 | |||||||||||||||
Write-off (1) | (25 | ) | - | (31 | ) | - | - | - | (56 | ) | |||||||||||||||||||
Gross carrying amount at September 30, 2013 | - | 180 | 335 | 1,268 | 1,124 | 200 | 3,107 | ||||||||||||||||||||||
Accumulated amortization at December 31, 2012 | 25 | - | 209 | - | 670 | 28 | 932 | ||||||||||||||||||||||
Write-off (1) | (25 | ) | - | (31 | ) | - | - | - | (56 | ) | |||||||||||||||||||
Amortization | - | - | 37 | - | 101 | 30 | 168 | ||||||||||||||||||||||
Accumulated amortization at September 30, 2013 | - | - | 215 | - | 771 | 58 | 1,044 | ||||||||||||||||||||||
Net carrying amount at September 30, 2013 | $ | - | $ | 180 | $ | 120 | $ | 1,268 | $ | 353 | $ | 142 | $ | 2,063 | |||||||||||||||
Weighted average amortization period (years) | Indefinite | 7 | Indefinite | 9 | 3 | ||||||||||||||||||||||||
-1 | The Company wrote-off the value of fully amortized assets not in service. | ||||||||||||||||||||||||||||
Summary of estimated future amortization expense | ' | ||||||||||||||||||||||||||||
The following table summarizes the estimated future amortization expense: | |||||||||||||||||||||||||||||
Year Ending December 31, | |||||||||||||||||||||||||||||
Remainder of 2013 | $ | 56 | |||||||||||||||||||||||||||
2014 | 224 | ||||||||||||||||||||||||||||
2015 | 156 | ||||||||||||||||||||||||||||
2016 | 112 | ||||||||||||||||||||||||||||
2017 | 46 | ||||||||||||||||||||||||||||
Thereafter | 21 | ||||||||||||||||||||||||||||
$ | 615 |
LONGTERM_DEBT_AND_LEASE_OBLIGA1
LONG-TERM DEBT AND LEASE OBLIGATIONS (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
LONG-TERM DEBT AND LEASE OBLIGATIONS [Abstract] | ' | ||||||||
Long-term debt and lease obligations | ' | ||||||||
Long-term debt and lease obligations consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Credit agreement (a) | $ | - | $ | 37,500 | |||||
Finance obligation (b) | 9,672 | 9,672 | |||||||
Capital lease-property (rate of 8.0%) (c) | 26,047 | 26,344 | |||||||
Capital leases-equipment (rates ranging from 5.0% to 8.5%) | - | 11 | |||||||
35,719 | 73,527 | ||||||||
Less current maturities | (426 | ) | (412 | ) | |||||
$ | 35,293 | $ | 73,115 | ||||||
Scheduled maturities of long-term debt and lease obligation | ' | ||||||||
Scheduled maturities of long-term debt and lease obligations at September 30, 2013 are as follows: | |||||||||
Year ending December 31, | |||||||||
2013 | $ | 426 | |||||||
2014 | 462 | ||||||||
2015 | 515 | ||||||||
2016 | 10,405 | ||||||||
2017 | 623 | ||||||||
Thereafter | 23,288 | ||||||||
$ | 35,719 |
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
STOCKHOLDERS' EQUITY [Abstract] | ' | |||||||||||||||||||||
Summary of transactions pertaining to restricted stock | ' | |||||||||||||||||||||
The following is a summary of transactions pertaining to restricted stock: | ||||||||||||||||||||||
Shares | Weighted | |||||||||||||||||||||
Average Grant | ||||||||||||||||||||||
Date Fair Value | ||||||||||||||||||||||
Per Share | ||||||||||||||||||||||
Nonvested restricted stock outstanding at December 31, 2012 | 1,341,084 | $ | 7.79 | |||||||||||||||||||
Granted | 434,308 | 5.62 | ||||||||||||||||||||
Canceled | (33,529 | ) | 16.7 | |||||||||||||||||||
Vested | (271,396 | ) | 8.52 | |||||||||||||||||||
Nonvested restricted stock outstanding at September 30, 2013 | 1,470,467 | 6.66 | ||||||||||||||||||||
Summary of transactions pertaining to option plans | ' | |||||||||||||||||||||
The fair value of the stock options used to compute stock-based compensation is the estimated present value at the date of grant using the Black-Scholes option pricing model. The following is a summary of transactions pertaining to stock options: | ||||||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||||||||||
Average | Average | Intrinsic Value | ||||||||||||||||||||
Exercise Price | Remaining | (in thousands) | ||||||||||||||||||||
Per Share | Contractual | |||||||||||||||||||||
Term | ||||||||||||||||||||||
Outstanding at December 31, 2012 | 655,875 | $ | 14.72 | 4.89 years | $ | - | ||||||||||||||||
Canceled | (21,000 | ) | 17.31 | - | ||||||||||||||||||
Outstanding at September 30, 2013 | 634,875 | 14.63 | 4.16 years | - | ||||||||||||||||||
Vested or expected to vest | 615,277 | 14.85 | 4.03 years | - | ||||||||||||||||||
Exercisable as of September 30, 2013 | 536,884 | 15.88 | 3.38 years | - | ||||||||||||||||||
Summary of options outstanding | ' | |||||||||||||||||||||
The following table presents a summary of stock options outstanding: | ||||||||||||||||||||||
At September 30, 2013 | ||||||||||||||||||||||
Stock Options Outstanding | Stock Options Exercisable | |||||||||||||||||||||
Range of Exercise Prices | Shares | Contractual | Weighted | Shares | Weighted | |||||||||||||||||
Weighted | Average Price | Average Exercise | ||||||||||||||||||||
Average Life | Price | |||||||||||||||||||||
(years) | ||||||||||||||||||||||
$4.00-$13.99 | 259,792 | 6.39 | $ | 9.6 | 161,801 | $ | 10.7 | |||||||||||||||
$14.00-$19.99 | 270,083 | 2.47 | 16.48 | 270,083 | 16.48 | |||||||||||||||||
$20.00-$25.00 | 105,000 | 3.02 | 22.33 | 105,000 | 22.33 | |||||||||||||||||
634,875 | 4.16 | 14.63 | 536,884 | 15.88 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
State | StudyArea | |||
School | ||||
Site | ||||
State | ||||
Business Activities [Abstract] | ' | ' | ' | ' |
Principal areas of study | ' | ' | 5 | ' |
Schools operated across the United States | ' | ' | 38 | ' |
Training sites operated across the United States | ' | ' | 5 | ' |
Number of states in which schools operate | 17 | ' | 17 | ' |
Stock-Based Compensation [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense | $100,000 | $600,000 | $2,455,000 | $2,609,000 |
Income Taxes [Abstract] | ' | ' | ' | ' |
Deferred tax assets | $28,400,000 | ' | $28,400,000 | ' |
WEIGHTED_AVERAGE_COMMON_SHARES2
WEIGHTED AVERAGE COMMON SHARES (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Shares used to compute basic and diluted loss income per share [Abstract] | ' | ' | ' | ' |
Basic shares outstanding (in shares) | 22,528,478 | 22,194,731 | 22,480,308 | 22,171,757 |
Dilutive effect of stock options (in shares) | 0 | 86,402 | 0 | 0 |
Diluted shares outstanding (in shares) | 22,528,478 | 22,281,133 | 22,480,308 | 22,171,757 |
Stock Option [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive shares excluded from computation of income (loss) per share (in shares) | 282,678 | 0 | 234,073 | 304,333 |
Stock Option [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive shares excluded from computation of income (loss) per share (in shares) | 785,768 | 304,333 | 785,768 | 304,333 |
Performance Shares [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive shares excluded from computation of income (loss) per share (in shares) | 441,552 | 100,602 | 441,552 | 100,602 |
BUSINESS_ACQUISITION_Details
BUSINESS ACQUISITION (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Apr. 18, 2012 |
Location | ||
BUSINESS ACQUISITION [Abstract] | ' | ' |
Effective date of acquisition | 18-Apr-12 | ' |
Total consideration paid for acquiring interest in Florida Medical Training Institute, Inc. | ' | $1.70 |
Number of locations operated in Florida | 5 | ' |
Purchase price allocated to assets | ' | 2.9 |
Purchase price allocated to intangible assets | ' | 2.4 |
Purchase price allocated to liabilities | ' | $1.40 |
COSTS_ASSOCIATED_WITH_EXIT_OR_2
COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES AND DISCONTINUED OPERATIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 18, 2013 | Jul. 31, 2012 | Jun. 18, 2013 | Jun. 18, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Campus | Campus | Ohio [Member] | Kentucky [Member] | Five Campuses [Member] | Five Campuses [Member] | Five Campuses [Member] | Exit or Disposal Activities [Member] | Exit or Disposal Activities [Member] | Exit or Disposal Activities [Member] | Exit or Disposal Activities [Member] | Exit or Disposal Activities [Member] | |||||
Campus | Campus | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of campuses | ' | ' | ' | ' | 5 | 7 | 4 | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Costs Associated with Exit or Disposal Activities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $88,509,000 | $102,057,000 | $263,809,000 | $300,246,000 | ' | ' | ' | ' | ' | ' | ' | ($18,000) | $7,261,000 | $19,924,000 | $35,099,000 | $61,028,000 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,898,000 | -19,322,000 | -33,564,000 | -29,885,000 | -31,947,000 |
OPERATING (LOSS) INCOME | -2,697,000 | 1,816,000 | -28,153,000 | -17,477,000 | ' | ' | ' | ' | ' | ' | ' | -3,916,000 | -12,061,000 | -13,640,000 | 5,214,000 | 29,081,000 |
Compensation related to severance | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 1,200,000 | ' | ' | ' | ' | ' | ' |
Refunds given to students as a reduction of revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 1,500,000 | ' | ' | ' | ' | ' | ' |
Impairment of goodwill and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | 8,700,000 | ' | ' | ' | ' | ' |
Result of discontinued operations [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | 2,087,000 | ' | 9,134,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss before income taxes | ' | -4,277,000 | ' | -17,173,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax benefit | ' | -1,707,000 | ' | -6,854,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss from discontinued operations | $0 | ($2,570,000) | $0 | ($10,319,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
GOODWILL_AND_LONGLIVED_ASSETS_1
GOODWILL AND LONG-LIVED ASSETS (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | ||
Group | Group | Unit | Group | Group | ||||||
GOODWILL AND LONG-LIVED ASSETS [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Number of asset groups impaired | ' | ' | 10 | 10 | ' | ' | 4 | 2 | ' | |
Pre tax charge for impairment of leasehold improvements | ' | $8,100,000 | ' | ' | ' | $8,100,000 | $1,400,000 | $1,700,000 | ' | |
Asset impairment charges including discontinued operations | ' | ' | ' | ' | ' | 8,300,000 | ' | ' | ' | |
Definite-lived intangible assets impairment expanse | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | |
Impairment charges included in discontinued operation | ' | ' | 5,500,000 | 4,000,000 | ' | ' | ' | ' | ' | |
Number of reporting unit tested for recoverability of long lived assets | ' | ' | ' | ' | 2 | ' | ' | ' | ' | |
Number of reporting unit to be impaired | ' | ' | ' | ' | 5 | ' | ' | ' | ' | |
Changes in carrying amount of goodwill [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Gross Goodwill Balance | 117,176,000 | ' | ' | ' | 117,176,000 | ' | ' | ' | 117,176,000 | |
Accumulated Impairment Losses | -54,711,000 | ' | ' | ' | -54,711,000 | ' | ' | ' | -51,649,000 | |
Net Goodwill Balance | 62,465,000 | ' | ' | ' | 62,465,000 | ' | ' | ' | 65,527,000 | |
Goodwill impairment | ' | ' | ' | ' | -3,062,000 | ' | ' | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Amortization | 100,000 | 100,000 | ' | ' | 200,000 | 200,000 | ' | ' | ' | |
Net carrying amount at end of period | 615,000 | ' | ' | ' | 615,000 | ' | ' | ' | ' | |
Intangible Assets (Excluding Goodwill) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Gross carrying amount, Total | ' | ' | ' | ' | 3,163,000 | ' | ' | ' | ' | |
Write-off | ' | ' | ' | ' | -56,000 | [1] | ' | ' | ' | ' |
Gross carrying amount, Total | 3,107,000 | ' | ' | ' | 3,107,000 | ' | ' | ' | ' | |
Accumulated amortization, Total | ' | ' | ' | ' | 932,000 | ' | ' | ' | ' | |
Write-off | ' | ' | ' | ' | -56,000 | [1] | ' | ' | ' | ' |
Amortization | ' | ' | ' | ' | 168,000 | ' | ' | ' | ' | |
Accumulated amortization, Total | 1,044,000 | ' | ' | ' | 1,044,000 | ' | ' | ' | ' | |
Net carrying amount | 2,063,000 | ' | ' | ' | 2,063,000 | ' | ' | ' | ' | |
Amortization of intangible assets | 100,000 | 100,000 | ' | ' | 200,000 | 200,000 | ' | ' | ' | |
Estimated future amortization expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Remainder of 2013 | 56,000 | ' | ' | ' | 56,000 | ' | ' | ' | ' | |
2014 | 224,000 | ' | ' | ' | 224,000 | ' | ' | ' | ' | |
2015 | 156,000 | ' | ' | ' | 156,000 | ' | ' | ' | ' | |
2016 | 112,000 | ' | ' | ' | 112,000 | ' | ' | ' | ' | |
2017 | 46,000 | ' | ' | ' | 46,000 | ' | ' | ' | ' | |
Thereafter | 21,000 | ' | ' | ' | 21,000 | ' | ' | ' | ' | |
Total | 615,000 | ' | ' | ' | 615,000 | ' | ' | ' | ' | |
Indefinite Trade Name [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Gross carrying amount, beginning balance | ' | ' | ' | ' | 180,000 | ' | ' | ' | ' | |
Write-off | ' | ' | ' | ' | 0 | [1] | ' | ' | ' | ' |
Gross carrying amount, ending balance | 180,000 | ' | ' | ' | 180,000 | ' | ' | ' | ' | |
Accumulated amortization, beginning balance | ' | ' | ' | ' | 0 | ' | ' | ' | ' | |
Write-off | ' | ' | ' | ' | 0 | [1] | ' | ' | ' | ' |
Amortization | ' | ' | ' | ' | 0 | ' | ' | ' | ' | |
Accumulated amortization, ending balance | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | |
Net carrying amount | 180,000 | ' | ' | ' | 180,000 | ' | ' | ' | ' | |
Accreditation [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Gross carrying amount, beginning balance | ' | ' | ' | ' | 1,268,000 | ' | ' | ' | ' | |
Write-off | ' | ' | ' | ' | 0 | [1] | ' | ' | ' | ' |
Gross carrying amount, ending balance | 1,268,000 | ' | ' | ' | 1,268,000 | ' | ' | ' | ' | |
Accumulated amortization, beginning balance | ' | ' | ' | ' | 0 | ' | ' | ' | ' | |
Write-off | ' | ' | ' | ' | 0 | [1] | ' | ' | ' | ' |
Amortization | ' | ' | ' | ' | 0 | ' | ' | ' | ' | |
Accumulated amortization, ending balance | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | |
Net carrying amount | 1,268,000 | ' | ' | ' | 1,268,000 | ' | ' | ' | ' | |
Student Contracts [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Gross carrying amount, beginning balance | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | |
Write-off | ' | ' | ' | ' | -25,000 | [1] | ' | ' | ' | ' |
Gross carrying amount, ending balance | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | |
Accumulated amortization, beginning balance | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | |
Write-off | ' | ' | ' | ' | -25,000 | [1] | ' | ' | ' | ' |
Amortization | ' | ' | ' | ' | 0 | ' | ' | ' | ' | |
Accumulated amortization, ending balance | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | |
Net carrying amount at end of period | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | |
Intangible Assets (Excluding Goodwill) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Amortization of intangible assets | ' | ' | ' | ' | 0 | ' | ' | ' | ' | |
Estimated future amortization expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Total | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | |
Trade Name [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Gross carrying amount, beginning balance | ' | ' | ' | ' | 366,000 | ' | ' | ' | ' | |
Write-off | ' | ' | ' | ' | -31,000 | [1] | ' | ' | ' | ' |
Gross carrying amount, ending balance | 335,000 | ' | ' | ' | 335,000 | ' | ' | ' | ' | |
Accumulated amortization, beginning balance | ' | ' | ' | ' | 209,000 | ' | ' | ' | ' | |
Write-off | ' | ' | ' | ' | -31,000 | [1] | ' | ' | ' | ' |
Amortization | ' | ' | ' | ' | 37,000 | ' | ' | ' | ' | |
Accumulated amortization, ending balance | 215,000 | ' | ' | ' | 215,000 | ' | ' | ' | ' | |
Net carrying amount at end of period | 120,000 | ' | ' | ' | 120,000 | ' | ' | ' | ' | |
Weighted average amortization period | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | |
Intangible Assets (Excluding Goodwill) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Amortization of intangible assets | ' | ' | ' | ' | 37,000 | ' | ' | ' | ' | |
Estimated future amortization expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Total | 120,000 | ' | ' | ' | 120,000 | ' | ' | ' | ' | |
Curriculum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Gross carrying amount, beginning balance | ' | ' | ' | ' | 1,124,000 | ' | ' | ' | ' | |
Write-off | ' | ' | ' | ' | 0 | [1] | ' | ' | ' | ' |
Gross carrying amount, ending balance | 1,124,000 | ' | ' | ' | 1,124,000 | ' | ' | ' | ' | |
Accumulated amortization, beginning balance | ' | ' | ' | ' | 670,000 | ' | ' | ' | ' | |
Write-off | ' | ' | ' | ' | 0 | [1] | ' | ' | ' | ' |
Amortization | ' | ' | ' | ' | 101,000 | ' | ' | ' | ' | |
Accumulated amortization, ending balance | 771,000 | ' | ' | ' | 771,000 | ' | ' | ' | ' | |
Net carrying amount at end of period | 353,000 | ' | ' | ' | 353,000 | ' | ' | ' | ' | |
Weighted average amortization period | ' | ' | ' | ' | '9 years | ' | ' | ' | ' | |
Intangible Assets (Excluding Goodwill) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Amortization of intangible assets | ' | ' | ' | ' | 101,000 | ' | ' | ' | ' | |
Estimated future amortization expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Total | 353,000 | ' | ' | ' | 353,000 | ' | ' | ' | ' | |
Non-compete [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Gross carrying amount, beginning balance | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | |
Write-off | ' | ' | ' | ' | 0 | [1] | ' | ' | ' | ' |
Gross carrying amount, ending balance | 200,000 | ' | ' | ' | 200,000 | ' | ' | ' | ' | |
Accumulated amortization, beginning balance | ' | ' | ' | ' | 28,000 | ' | ' | ' | ' | |
Write-off | ' | ' | ' | ' | 0 | [1] | ' | ' | ' | ' |
Amortization | ' | ' | ' | ' | 30,000 | ' | ' | ' | ' | |
Accumulated amortization, ending balance | 58,000 | ' | ' | ' | 58,000 | ' | ' | ' | ' | |
Net carrying amount at end of period | 142,000 | ' | ' | ' | 142,000 | ' | ' | ' | ' | |
Weighted average amortization period | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | |
Intangible Assets (Excluding Goodwill) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Amortization of intangible assets | ' | ' | ' | ' | 30,000 | ' | ' | ' | ' | |
Estimated future amortization expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Total | $142,000 | ' | ' | ' | $142,000 | ' | ' | ' | ' | |
[1] | The Company wrote-off the value of fully amortized assets not in service. |
LONGTERM_DEBT_AND_LEASE_OBLIGA2
LONG-TERM DEBT AND LEASE OBLIGATIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 18, 2013 | Apr. 05, 2012 | Apr. 05, 2012 | Apr. 05, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | ||||||||
Credit Agreement [Member] | Credit Agreement [Member] | Credit Agreement [Member] | Credit Agreement [Member] | Swing Line [Member] | Letter of Credit [Member] | Minimum [Member] | Maximum [Member] | Finance Obligation [Member] | Finance Obligation [Member] | Capital Lease-Property (with a rate of 8.0%) [Member] | Capital Lease-Property (with a rate of 8.0%) [Member] | Capital Leases-Equipment (with rates ranging from 5.0% to 8.5%) [Member] | Capital Leases-Equipment (with rates ranging from 5.0% to 8.5%) [Member] | |||||||||||
Lender | Credit Agreement [Member] | Credit Agreement [Member] | ||||||||||||||||||||||
Long-term debt and lease obligations [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Credit agreement | $0 | [1] | $0 | [1] | $37,500,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Capital lease and finance obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,672,000 | [2] | 9,672,000 | [2] | 26,047,000 | [3] | 26,344,000 | [3] | 0 | 11,000 | |||
Long term debt and capital lease obligations | 35,719,000 | 35,719,000 | 73,527,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Less current maturities | -426,000 | -426,000 | -412,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Long-term debt and lease obligations | 35,293,000 | 35,293,000 | 73,115,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Interest rate of debt instrument (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | |||||||
Interest rate of debt instrument, minimum (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | |||||||
Interest rate of debt instrument, maximum (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.50% | ' | |||||||
Number of lenders led by Bank of America | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Maximum borrowing capacity of credit facility | ' | ' | ' | ' | ' | 60,000,000 | 85,000,000 | 5,000,000 | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Expiration date of credit facility | ' | ' | ' | 5-Apr-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Maximum aggregate amount to increase under the credit facility | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Maturity period of credit facility | ' | ' | ' | '36 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Variable rate of debt instrument | ' | ' | ' | 'prime rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Federal Funds rate plus, variable rate (in hundredths) | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
LIBOR rate plus, variable rate (in hundredths) | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Interest rate of credit facility (in hundredths) | 4.75% | ' | ' | ' | 4.50% | ' | ' | ' | ' | 1.25% | 2.75% | ' | ' | ' | ' | ' | ' | |||||||
Amount outstanding under letter of credit | ' | ' | ' | 5,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Outstanding amount of credit facility | ' | ' | ' | 0 | 37,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Sale and a leaseback of several facilities, Date | ' | 'December 28, 2001 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Lease expiration date | ' | 31-Dec-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-32 | ' | |||||||
Proceeds from borrowings | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Payments on borrowings | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Scheduled maturities of long-term debt and lease obligations [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
2013 | 426,000 | 426,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
2014 | 462,000 | 462,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
2015 | 515,000 | 515,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
2016 | 10,405,000 | 10,405,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
2017 | 623,000 | 623,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Thereafter | 23,288,000 | 23,288,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Long term debt and capital lease obligations | $35,719,000 | $35,719,000 | $73,527,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
[1] | (a) On April 5, 2012, the Company, as borrower, and certain of its wholly-owned subsidiaries, as guarantors, entered into a secured revolving credit agreement (the bCredit Agreementb) with a syndicate of four lenders led by Bank of America, N.A., as administrative agent, swing line lender and letter of credit issuer, for an aggregate principal amount of up to $85 million (the bCredit Facilityb). On June 18, 2013, the Company, as borrower, and certain of its wholly-owned subsidiaries, as guarantors, entered into an amendment to the Credit Agreement (the bAmendment to the Credit Agreementb). Under the Credit Agreement, the Company has the right to increase the aggregate amount available under the Credit Facility by up to $50 million upon satisfaction of certain conditions. The Credit Facility may be used to finance capital expenditures and permitted acquisitions, to pay transaction expenses, for the issuance of letters of credit and for general corporate purposes. The Credit Agreement includes a $5 million swing line sublimit and a $25 million letter of credit sublimit. Borrowings under the Credit Facility are secured by a first priority lien on substantially all of the tangible and intangible assets of the Company and its subsidiaries exclusive of real estate. The term of the Credit Facility is 36 months, maturing on April 5, 2015. Amounts borrowed as revolving loans under the Credit Facility will bear interest, at the Companybs option, at either (i) an interest rate based on LIBOR and adjusted for any reserve percentage obligations under Federal Reserve Bank regulations (the bEurodollar Rateb) for specified interest periods or (ii) the Base Rate (as defined in the Credit Agreement), in each case, plus an applicable margin rate as determined under the Credit Agreement. The bBase Rateb, as defined under the Credit Agreement, is the highest of (a) the prime rate, (b) the Federal Funds rate plus 0.50% and (c) a daily rate equal to the one-month LIBOR rate plus 1.0%. Under the Credit Agreement, the margin interest rate is subject to adjustment within a range of 1.25% to 2.75% based upon changes in the Companybs consolidated leverage ratio and depending on whether the Company has chosen the Eurodollar Rate or the Base Rate option. Swing line loans will bear interest at the Base Rate plus the applicable margin rate. Letters of credit will require a fee equal to the applicable margin rate multiplied by the daily amount available to be drawn under each issued letter of credit plus an agreed upon fronting fee and customary issuance, presentation, amendment and other processing fees associated with letters of credit. At September 30, 2013, the Company had outstanding letters of credit aggregating $5.3 million, which were primarily comprised of letters of credit for the Department of Education, or DOE, matters and real estate leases. The Amendment to the Credit Agreement reduced the aggregate principal amount available under the Credit Facility from $85 million to $60 million. The Credit Facility continues to provide the Company with a $25 million letter of credit sublimit and a $5 million swing line sublimit, the availability of which will be at the discretion of the swing line lender, and the right to increase the aggregate amount available under the Credit Facility by up to $50 million upon the satisfaction of certain conditions. The Amendment to the Credit Agreement includes certain revisions relevant to the calculation of consolidated leverage ratio and consolidated fixed charge coverage ratio. The Amendment to the Credit Agreement contains customary representations, warranties and covenants including consolidated adjusted net worth, consolidated leverage ratio, consolidated fixed charge coverage ratio, minimum financial responsibility composite score, cohort default rate and other financial covenants, certain restrictions on capital expenditures as well as affirmative and negative covenants and events of default customary for facilities of this type. In addition, the Company is paying fees to the lenders that are customary for facilities of this type. As of September 30, 2013, the Company is in compliance with all financial covenants under the Credit Agreement, as amended. During the third quarter of 2013 the Company borrowed and subsequently repaid $5.0 million under the facility. The interest rates on these borrowings were 4.75%. As of September 30, 2013, the Company had no amounts outstanding under the Credit Agreement as amended. The Company had $37.5 million outstanding under the Credit Agreement as of December 31, 2012. The interest rates on these borrowings were 4.5%. | |||||||||||||||||||||||
[2] | (b) The Company completed a sale and a leaseback of several facilities on December 28, 2001. The Company retains a continuing involvement in the lease and, as a result, it is prohibited from utilizing sale-leaseback accounting. Accordingly, the Company has treated this transaction as a finance lease. The lease expires on December 31, 2016. | |||||||||||||||||||||||
[3] | (c) In 2009, the Company assumed real estate capital leases in Fern Park, Florida and Hartford, Connecticut. These leases bear interest at 8% and expire in 2032 and 2031, respectively. |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Plan | $ 4.00-$13.99 [Member] | $ 14.00-$19.99 [Member] | $ 20.00-$25.00 [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | LTIP [Member] | LTIP [Member] | LTIP [Member] | LTIP [Member] | LTIP [Member] | |||
Stock Options [Member] | Stock Options [Member] | Restricted Stock [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock incentive plans | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period of performance-based shares | '4 years | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net share settlement for restricted stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,552 | 24,488 | ' |
Net share settlement for stock options (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,552 | 24,488 | ' | ' | ' |
Decrease in equity due to payment of tax for employee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $400,000 | $200,000 | ' | ' | ' |
Shares [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested restricted stock outstanding, beginning balance (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1,341,084 | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 434,308 | ' | ' | ' | ' | ' | ' | ' |
Canceled (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | -33,529 | ' | ' | ' | ' | ' | ' | ' |
Vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | -271,396 | ' | ' | ' | ' | ' | ' | ' |
Nonvested restricted stock outstanding, ending balance (in shares) | ' | ' | ' | ' | ' | ' | 1,470,467 | ' | 1,470,467 | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested restricted stock outstanding, beginning balance (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $7.79 | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $5.62 | ' | ' | ' | ' | ' | ' | ' |
Canceled (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $16.70 | ' | ' | ' | ' | ' | ' | ' |
Vested (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $8.52 | ' | ' | ' | ' | ' | ' | ' |
Nonvested restricted stock outstanding, ending balance (in dollars per share) | ' | ' | ' | ' | ' | ' | $6.66 | ' | $6.66 | ' | ' | ' | ' | ' | ' | ' |
Recognized restricted stock expense | ' | ' | ' | ' | ' | ' | 1,000,000 | 500,000 | 2,300,000 | 2,300,000 | ' | ' | ' | ' | ' | ' |
Unrecognized restricted stock expense | ' | ' | ' | ' | ' | ' | 8,200,000 | ' | 8,200,000 | ' | 8,600,000 | ' | ' | ' | ' | ' |
Outstanding restricted shares, intrinsic value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,800,000 |
Shares [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning balance (in shares) | 655,875 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Canceled (in shares) | -21,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, ending balance (in shares) | 634,875 | 655,875 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest (in shares) | 615,277 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable, ending balance (in shares) | 536,884 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning balance (in dollars per share) | $14.72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Canceled (in dollars per share) | $17.31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, ending balance (in dollars per share) | $14.63 | $14.72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest (in dollars per share) | $14.85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable, ending balance (in dollars per share) | $15.88 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Remaining Contractual Term [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning balance | '4 years 1 month 28 days | '4 years 10 months 20 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, ending balance | '4 years 1 month 28 days | '4 years 10 months 20 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest | '4 years 0 months 11 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable, ending balance | '3 years 4 months 17 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning balance | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Canceled | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, ending balance | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable, ending balance | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized pre-tax compensation expense | $200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period of unrecognized pre-tax compensation | '2 years 1 month 17 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Range of Exercise Prices, Minimum (in dollars per share) | ' | ' | ' | $4 | $14 | $20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Range of Exercise Prices, Maximum (in dollars per share) | ' | ' | ' | $13.99 | $19.99 | $25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares (in shares) | 634,875 | ' | ' | 259,792 | 270,083 | 105,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual Weighted Average Life | '4 years 1 month 28 days | ' | ' | '6 years 4 months 20 days | '2 years 5 months 19 days | '3 years 0 months 7 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Price (in dollars per share) | $14.63 | ' | ' | $9.60 | $16.48 | $22.33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares (in shares) | 536,884 | ' | ' | 161,801 | 270,083 | 105,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Exercise Price (in dollars per share) | $15.88 | ' | ' | $10.70 | $16.48 | $22.33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
INCOME TAXES [Abstract] | ' | ' | ' | ' |
Benefit for income taxes | ($1,489) | ($318) | ($12,339) | ($5,946) |
Effective income tax rate (in hundredths) | 39.50% | -41.40% | 39.20% | 28.50% |
PENSION_PLAN_Details
PENSION PLAN (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
PENSION PLAN [Abstract] | ' | ' | ' | ' |
Employer contributions under pension plan | ' | ' | $0.70 | $0.50 |
Net periodic benefit cost | $0.20 | $0.20 | $0.50 | $0.60 |
DIVIDENDS_Details
DIVIDENDS (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
DIVIDENDS [Abstract] | ' | ' |
Cash dividend declared (in dollars per share) | $0.07 | $0.21 |