Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 05, 2014 | |
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 | ' | 24,052,486 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $12,702 | $12,886 |
Restricted cash | 0 | 54,500 |
Accounts receivable, less allowance of $13,678 and $13,787 at September 30, 2014 and December 31, 2013, respectively | 18,193 | 16,127 |
Inventories | 2,222 | 2,269 |
Prepaid income taxes and income taxes receivable | 1,356 | 8,517 |
Assets held for sale | 6,310 | 6,310 |
Prepaid expenses and other current assets | 2,683 | 3,013 |
Total current assets | 43,466 | 103,622 |
PROPERTY, EQUIPMENT AND FACILITIES - At cost, net of accumulated depreciation and amortization of $150,055 and $146,795 at September 30, 2014and December 31, 2013, respectively | 117,173 | 127,332 |
OTHER ASSETS: | ' | ' |
Noncurrent receivables, less allowance of $1,322and $982 at September 30, 2014 and December 31, 2013, respectively | 8,475 | 6,869 |
Deferred finance charges | 175 | 1,163 |
Goodwill | 23,511 | 62,465 |
Other assets, net | 2,647 | 4,498 |
Total other assets | 34,808 | 74,995 |
TOTAL | 195,447 | 305,949 |
CURRENT LIABILITIES: | ' | ' |
Current portion of credit agreement | 7,500 | 0 |
Current portion of capital lease obligations | 462 | 435 |
Unearned tuition | 34,858 | 30,195 |
Accounts payable | 9,818 | 14,603 |
Accrued expenses | 15,140 | 10,655 |
Other short-term liabilities | 723 | 693 |
Total current liabilities | 68,501 | 56,581 |
NONCURRENT LIABILITIES: | ' | ' |
Long-term credit agreement | 0 | 54,500 |
Long-term capital lease obligations | 25,159 | 25,509 |
Long-term finance obligation | 9,672 | 9,672 |
Pension plan liabilities | 1,111 | 1,522 |
Deferred income taxes, net | 0 | 4,528 |
Accrued rent | 7,081 | 7,695 |
Other long-term liabilities | 627 | 746 |
Total liabilities | 112,151 | 160,753 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred stock, no par value - 10,000,000 shares authorized, no shares issued and outstanding at September 30 2014 and December 31, 2013 | 0 | 0 |
Common stock, no par value - authorized: 100,000,000 shares at September 30, 2014 and December 31, 2013; issued and outstanding: 29,971,661 shares at September 30, 2014and 29,919,761 shares at December 31, 2013 | 141,377 | 141,377 |
Additional paid-in capital | 26,551 | 24,177 |
Treasury stock at cost - 5,910,541 shares at September 30, 2014 and December 31, 2013 | -82,860 | -82,860 |
Retained earnings | 1,452 | 66,064 |
Accumulated other comprehensive loss | -3,224 | -3,562 |
Total stockholders' equity | 83,296 | 145,196 |
TOTAL | $195,447 | $305,949 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
ASSETS | ' | ' |
Accounts receivable, allowance | $13,678 | $13,787 |
PROPERTY, EQUIPMENT AND FACILITIES - accumulated depreciation and amortization | 150,055 | 146,795 |
OTHER ASSETS : | ' | ' |
Noncurrent receivables, allowance | $1,322 | $982 |
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) | 29,971,661 | 29,919,761 |
Common stock, shares outstanding (in shares) | 29,971,661 | 29,919,761 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract] | ' | ' | ' | ' |
REVENUE | $84,658 | $88,527 | $241,777 | $256,548 |
COSTS AND EXPENSES: | ' | ' | ' | ' |
Educational services and facilities | 43,253 | 44,377 | 127,486 | 130,348 |
Selling, general and administrative | 42,280 | 43,232 | 134,634 | 138,892 |
Gain on sale of assets | 0 | -301 | -61 | -508 |
Impairment of goodwill and long-lived assets | 41,437 | 0 | 41,437 | 3,908 |
Total costs & expenses | 126,970 | 87,308 | 303,496 | 272,640 |
OPERATING (LOSS) INCOME | -42,312 | 1,219 | -61,719 | -16,092 |
OTHER: | ' | ' | ' | ' |
Interest income | 53 | 20 | 125 | 37 |
Interest expense | -1,637 | -1,088 | -4,131 | -3,382 |
Other income | 149 | 0 | 149 | 18 |
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | -43,747 | 151 | -65,576 | -19,419 |
(BENEFIT) PROVISION FOR INCOME TAXES | -5,666 | 74 | -4,805 | -7,526 |
(LOSS) INCOME FROM CONTINUING OPERATIONS | -38,081 | 77 | -60,771 | -11,893 |
LOSS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES | 0 | -2,353 | 0 | -7,248 |
NET LOSS | ($38,081) | ($2,276) | ($60,771) | ($19,141) |
Basic | ' | ' | ' | ' |
Loss per share from continuing operations (in dollars per share) | ($1.67) | $0 | ($2.67) | ($0.53) |
Loss per share from discontinued operations (in dollars per share) | $0 | ($0.10) | $0 | ($0.32) |
Net loss per share (in dollars per share) | ($1.67) | ($0.10) | ($2.67) | ($0.85) |
Diluted | ' | ' | ' | ' |
Loss per share from continuing operations (in dollars per share) | ($1.67) | $0 | ($2.67) | ($0.53) |
Loss per share from discontinued operations (in dollars per share) | $0 | ($0.10) | $0 | ($0.32) |
Net loss per share (in dollars per share) | ($1.67) | ($0.10) | ($2.67) | ($0.85) |
Weighted average number of common shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 22,843,247 | 22,528,478 | 22,789,254 | 22,480,308 |
Diluted (in shares) | 22,843,247 | 22,811,156 | 22,789,254 | 22,480,308 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) [Abstract] | ' | ' | ' | ' |
Net loss | ($38,081) | ($2,276) | ($60,771) | ($19,141) |
Other comprehensive income | ' | ' | ' | ' |
Employee pension plan adjustments, net of taxes | 113 | 150 | 338 | 450 |
Comprehensive loss | ($37,968) | ($2,126) | ($60,433) | ($18,691) |
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, 2013 | $141,377 | $24,177 | ($82,860) | $66,064 | ($3,562) | $145,196 |
BALANCE (in shares) at Dec. 31, 2013 | 29,919,761 | ' | ' | ' | ' | 29,919,761 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net loss | 0 | 0 | 0 | -60,771 | 0 | -60,771 |
Employee pension plan adjustments, net of taxes | 0 | 0 | 0 | 0 | 338 | 338 |
Stock-based compensation expense | ' | ' | ' | ' | ' | ' |
Restricted stock | 0 | 2,408 | 0 | 0 | 0 | 2,408 |
Restricted stock (in shares) | 79,582 | ' | ' | ' | ' | ' |
Stock options | 0 | 78 | 0 | 0 | 0 | 78 |
Net share settlement for equity-based compensation | 0 | -112 | 0 | 0 | 0 | -112 |
Net share settlement for equity-based compensation (in shares) | -27,682 | ' | ' | ' | ' | ' |
Cash dividend | 0 | 0 | 0 | -3,841 | 0 | -3,841 |
BALANCE at Sep. 30, 2014 | $141,377 | $26,551 | ($82,860) | $1,452 | ($3,224) | $83,296 |
BALANCE (in shares) at Sep. 30, 2014 | 29,971,661 | ' | ' | ' | ' | 29,971,661 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) [Abstract] | ' | ' |
Cash dividend (in dollars per share) | $0.02 | $0.16 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($60,771) | ($19,141) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 14,756 | 17,570 |
Amortization of deferred finance charges | 615 | 312 |
Deferred income taxes | -4,528 | -144 |
Gain on disposition of assets | -61 | -508 |
Impairment of long-lived assets | 41,437 | 6,194 |
Fixed asset donation | -62 | -37 |
Provision for doubtful accounts | 11,836 | 11,539 |
Stock-based compensation expense | 2,486 | 2,455 |
Deferred rent | -499 | -233 |
(Increase) decrease in assets: | ' | ' |
Accounts receivable | -15,508 | -19,516 |
Inventories | 47 | 297 |
Prepaid income taxes and income taxes receivable | 7,161 | -11,821 |
Prepaid expenses and current assets | 281 | 650 |
Other assets | 286 | -864 |
Increase (decrease) in liabilities: | ' | ' |
Accounts payable | -5,026 | -2,795 |
Accrued expenses | 4,370 | 5,672 |
Pension plan liabilities | -180 | -672 |
Unearned tuition | 4,663 | 1,144 |
Other liabilities | 18 | 561 |
Total adjustments | 62,092 | 9,804 |
Net cash provided by (used in) operating activities | 1,321 | -9,337 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Capital expenditures | -4,796 | -3,531 |
Proceeds from sale of property and equipment | 67 | 747 |
Net cash used in investing activities | -4,729 | -2,784 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Payments on borrowings | -64,500 | -42,500 |
Reclassifications of payments of borrowings from restricted cash | 54,500 | 0 |
Proceeds from borrowings | 17,500 | 5,000 |
Net share settlement for equity-based compensation | -112 | -389 |
Dividends paid | -3,841 | -5,028 |
Payment of deferred finance fees | 0 | -112 |
Principal payments under capital lease obligations | -323 | -308 |
Net cash provided by (used in) financing activities | 3,224 | -43,337 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -184 | -55,458 |
CASH AND CASH EQUIVALENTS-Beginning of period | 12,886 | 61,708 |
CASH AND CASH EQUIVALENTS-End of period | 12,702 | 6,250 |
Cash paid during the year for: | ' | ' |
Interest | 3,315 | 3,082 |
Income taxes | 120 | 375 |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Liabilities accrued for or noncash purchases of fixed assets | $1,333 | $895 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | |
Sep. 30, 2014 | ||
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 31 campuses and five training sites in 15 states across the United States. | ||
For the last several years, the Company and the proprietary school sector has faced various forms of adversity which have contributed to deteriorating earnings growth. Government regulations have negatively impacted earnings by making it more difficult for potential students to obtain loans, which when coupled with the overall economic environment have hindered potential students from enrolling in our schools. In light of these factors, the Company has incurred significant operating losses as a result of lower student population. The Company also experienced a significant decline in market capitalization during the quarter ended September 30, 2014. Despite these events, management believes that its likely sources of cash should be sufficient to fund operations for the next twelve months. The Company's available sources of cash primarily include results of operations, cash and cash equivalents and available borrowings under the revolving line of credit. The Company's revolving credit facility expires in April 2015. To fund the Company's business plans, including any anticipated future losses, purchase commitments, capital expenditures, and principal and interest payments on borrowings, the Company has the ability to leverage up to $ 50 million of its existing properties. In addition, the Company is also continuing to take actions to improve cash flow by aligning its cost structure to its student population. However, if the Company is unable to leverage certain of its properties and improve operating performance, the Company's business plans may be adversely affected and the Company will have to modify its business plans to conserve available cash. | ||
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, 2013 consolidated financial statements of the Company, reflect all adjustments, consisting of normal recurring adjustments and 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, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2014. | ||
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 July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The amendments in this ASU provide guidance on the financial statement presentation of unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this ASU did not materially impact the presentation of the Company’s financial condition, results of operation and disclosures. | ||
In April 2014, FASB issued amended guidance on the use and presentation of discontinued operations in an entity's consolidated financial statements. The new guidance restricts the presentation of discontinued operations to business circumstances when the disposal of business operations represents a strategic shift that has or will have a major effect on an entity's operations and financial results. The guidance becomes effective on January 1, 2015. Adoption is on a prospective basis. | ||
In May 2014, FASB issued a new standard related to revenue recognition, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new standard will replace most of the existing revenue recognition standards in GAAP when it becomes effective on January 1, 2017. Early adoption is not permitted. | ||
The new standard can be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of the change recognized at the date of the initial application. The Company is assessing the potential impact of the new standard on financial reporting and has not yet selected a transition method. | ||
Stock-Based Compensation – The Company measures the value of stock options on the grant date at fair value, using the Black-Scholes option valuation model. The Company amortizes the fair value of stock options, net of estimated forfeitures, utilizing straight-line amortization of compensation expense over the requisite service period of the grant. | ||
The Company measures the value of service and performance-based restricted stock on the fair value of a share of common stock on the date of the grant. The Company amortizes the fair value of service-based restricted stock utilizing straight-line amortization of compensation expense over the requisite service period of the grant. | ||
The Company amortizes the fair value of the performance-based restricted stock based on the determination of the probable outcome of the performance condition. If the performance condition is expected to be met, then the Company amortizes the fair value of the number of shares expected to vest utilizing straight-line basis over the requisite performance period of the grant. However, if the associated performance condition is not expected to be met, then the Company does not recognize the stock-based compensation expense. | ||
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 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 its 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, the Company’s 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 the Company’s consolidated financial statements and/or tax returns. Differences between anticipated and actual outcomes of these future tax consequences could have a material impact on the Company’s 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 the Company’s valuation of income tax assets and liabilities and could cause the Company’s income tax provision to vary significantly among financial reporting periods. | ||
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the three and nine months ended September 30, 2014 and 2013, the interest and penalties expense associated with uncertain tax positions did not materially impact the Company’s results of operations or financial position. | ||
Reclassifications – During the nine months ended September 30, 2014, the Company reclassified amounts reflected in the 2013 consolidated balance sheet, to conform to the revised 2014 classification. For the year ended December 31, 2013, the Company had reported $89.7 million in long-term debt and lease obligations on the consolidated balance sheet. The Company reclassified $54.5 million of long-term credit agreement, $25.5 million of long-term capital lease obligations, and $9.7 million of long-term finance obligations into their own liability classifications on the consolidated balance sheet. |
WEIGHTED_AVERAGE_COMMON_SHARES
WEIGHTED AVERAGE COMMON SHARES | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
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, 2014 and 2013 was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Basic shares outstanding | 22,843,247 | 22,528,478 | 22,789,254 | 22,480,308 | |||||||||||||
Dilutive effect of stock options | - | 282,678 | - | - | |||||||||||||
Diluted shares outstanding | 22,843,247 | 22,811,156 | 22,789,254 | 22,480,308 | |||||||||||||
For the three months ended September 30, 2014 and 2013, options to acquire 132,595 and 282,678 shares, respectively, were excluded from the above table because the Company reported a net loss for each quarter and therefore their impact on reported loss per share would have been antidilutive. For the nine months ended September 30, 2014 and 2013, options to acquire 121,269 and 234,073 shares, respectively, were excluded from the above table because the Company reported a net loss for this period and therefore their impact on reported loss per share would have been antidilutive. For the three and nine months ended September 30, 2014 and 2013, options to acquire 476,625 and 785,768 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, 2014, these performance conditions were not met. As a result, the Company has determined these shares to be contingently issuable. Accordingly, 398,250 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, 2014, and 441,552 shares have been excluded for the three and nine months ended September 30, 2013. Refer to Note 6 for more information on performance shares. |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
DISCONTINUED OPERATIONS [Abstract] | ' | ||||||||
DISCONTINUED OPERATIONS | ' | ||||||||
3 | DISCONTINUED OPERATIONS | ||||||||
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. Accordingly, the Company ceased operations at these campuses as of December 31, 2013. The results of operations of these campuses are reflected as discontinued operations in the consolidated financial statements. | |||||||||
The results of operations at these five campuses for the three and nine months ended September 30, 2013 was as follows (in thousands): | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 30, | September 30, | ||||||||
2013 | 2013 | ||||||||
Revenue | $ | (18 | ) | $ | 7,261 | ||||
Operating expenses | (3,898 | ) | (19,322 | ) | |||||
Operating loss | $ | (3,916 | ) | $ | (12,061 | ) | |||
Amounts include impairments of goodwill and long-lived assets for these campuses of $2.3 million for the nine months ended September 30, 2013. |
GOODWILL_AND_LONGLIVED_ASSETS
GOODWILL AND LONG-LIVED ASSETS | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
GOODWILL AND LONG-LIVED ASSETS [Abstract] | ' | ||||||||||||||||||||||||
GOODWILL AND LONG-LIVED ASSETS | ' | ||||||||||||||||||||||||
4 | GOODWILL AND LONG-LIVED ASSETS | ||||||||||||||||||||||||
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 as of September 30, 2014, there was sufficient evidence to conclude that there were impairments of certain long-lived assets at six of the Company’s campuses. Long-lived assets had been tested at these campuses as a result of certain financial indicators such as the Company’s history of losses, 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 $1.9 million for leasehold improvements and $0.5 million for intangible assets as of September 30, 2014. | |||||||||||||||||||||||||
The Company concluded as of June 30, 2013, there was sufficient evidence to conclude that there were impairments of certain long-lived assets at two of the Company’s campuses. Long-lived assets had been tested at these campuses as a result of certain financial indicators such as the Company’s history of losses, 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 (of which $0.7 million is included in discontinued operations) and $1.7 million (of which $1.6 million is included in discontinued operations) for leasehold improvements as of June 30, 2013 and March 31, 2013, respectively. | |||||||||||||||||||||||||
The Company reviews goodwill and intangible assets for impairment when indicators of impairment exist. Annually, or more frequently if necessary, the Company evaluates goodwill and intangible assets with indefinite lives for impairment, with any resulting impairment reflected as an operating expense. The Company concluded that as of September 30, 2014 there was an indicator of potential impairment as a result of a decrease in market capitalization and, accordingly, the Company tested goodwill for impairment. The test indicated that 10 of the Company’s reporting units were impaired, which resulted in a pre-tax non-cash charge of $39.0 million for the three months ended September 30, 2014. | |||||||||||||||||||||||||
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 for impairment. The test 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 carrying amount of goodwill at September 30, 2014 is as follows: | |||||||||||||||||||||||||
Gross Goodwill Balance | Accumulated Impairment Losses | Net Goodwill Balance | |||||||||||||||||||||||
Balance as of January 1, 2014 | $ | 117,176 | $ | (54,711 | ) | $ | 62,465 | ||||||||||||||||||
Impairment | - | (38,954 | ) | (38,954 | ) | ||||||||||||||||||||
Balance as of September 30, 2014 | $ | 117,176 | $ | (93,665 | ) | $ | 23,511 | ||||||||||||||||||
Intangible assets, which are included in other assets in the accompanying condensed consolidated balance sheets, consist of the following: | |||||||||||||||||||||||||
Indefinite Trade Name | Trade Name | Accreditation | Curriculum | Non-compete | Total | ||||||||||||||||||||
Gross carrying amount at December 31, 2013 | $ | 180 | $ | 335 | $ | 1,166 | $ | 1,124 | $ | 200 | $ | 3,005 | |||||||||||||
Impairment | (180 | ) | (25 | ) | (102 | ) | (574 | ) | (200 | ) | (1,081 | ) | |||||||||||||
Gross carrying amount at September 30, 2014 | - | 310 | 1,064 | 550 | - | 1,924 | |||||||||||||||||||
Accumulated amortization at December 31, 2013 | - | 228 | - | 828 | 68 | 1,124 | |||||||||||||||||||
Amortization | - | 37 | - | 78 | 27 | 142 | |||||||||||||||||||
Impairment | (12 | ) | (448 | ) | (95 | ) | (555 | ) | |||||||||||||||||
Accumulated amortization at September 30, 2014 | - | 253 | - | 458 | - | 711 | |||||||||||||||||||
Net carrying amount at September 30, 2014 | $ | - | $ | 57 | $ | 1,064 | $ | 92 | $ | - | $ | 1,213 | |||||||||||||
Weighted average amortization period (years) | - | 7 | Indefinite | 10 | - | ||||||||||||||||||||
Amortization of intangible assets was less than $0.1 million and $0.1 million for the three months ended September 30, 2014 and 2013, and approximately $0.1 million and $0.2 million for the nine months ended September 30, 2014 and 2013. | |||||||||||||||||||||||||
The following table summarizes the estimated future amortization expense: | |||||||||||||||||||||||||
Year Ending December 31, | |||||||||||||||||||||||||
Remainder of 2014 | $ | 21 | |||||||||||||||||||||||
2015 | 65 | ||||||||||||||||||||||||
2016 | 22 | ||||||||||||||||||||||||
2017 | 20 | ||||||||||||||||||||||||
2018 | 20 | ||||||||||||||||||||||||
Thereafter | 1 | ||||||||||||||||||||||||
$ | 149 |
LONGTERM_DEBT_AND_LEASE_OBLIGA
LONG-TERM DEBT AND LEASE OBLIGATIONS | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
LONG-TERM DEBT AND LEASE OBLIGATIONS [Abstract] | ' | ||||||||
LONG-TERM DEBT AND LEASE OBLIGATIONS | ' | ||||||||
5 | LONG-TERM DEBT AND LEASE OBLIGATIONS | ||||||||
Long-term debt and lease obligations consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Credit agreement (a) | $ | 7,500 | $ | 54,500 | |||||
Finance obligation (b) | 9,672 | 9,672 | |||||||
Capital lease-property (rate of 8.0%) (c) | 25,621 | 25,944 | |||||||
42,793 | 90,116 | ||||||||
Less current maturities | (7,962 | ) | (435 | ) | |||||
$ | 34,831 | $ | 89,681 | ||||||
(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 with a syndicate of four lenders led by Bank of America, N.A., as administrative agent and letter of credit issuer (the “Credit Facility”). The April 5, 2012 agreement, along with subsequent amendments dated June 18, 2013 and December 20, 2013, are collectively referred to as the “Credit Agreement.” | |||||||||
As of December 31, 2013, the aggregate principal amount available under the Credit Facility was $60 million. Under the terms of the Credit Agreement, amended January 16, 2014, this amount was reduced to $40 million. 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 $25 million letter of credit sublimit. The term of the Credit Facility is 36 months, maturing on April 5, 2015. | |||||||||
The Credit Agreement provides that the lenders will receive first priority lien on substantially all of the tangible and intangible non-real property assets of the Company and its subsidiaries as well as a first priority lien on substantially all real property owned by the Company and its subsidiaries and that all net proceeds of future sales of real property by the Company and its subsidiaries be used to prepay revolving loans and permanently reduce the principal amount of revolving loans available under the Credit Facility. | |||||||||
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 rate of interest announced from time to time by Bank of America, N.A. as its 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%. Pursuant to the Credit Agreement, the margin interest rate is subject to adjustment within a range of 2.50% to 6.00% 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. 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, 2014, 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 Credit Agreement contains 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, 2014 the Company is in compliance with all financial covenants. | |||||||||
During the three months ended September 30, 2014 the Company had net repayments of $7.5 under the Credit Facility. The Company had $7.5 million outstanding under the Credit Facility as of September 30, 2014. The interest rates on these borrowings ranged from 4.2% to 7.3%. The Company had $54.5 million outstanding under the Credit Agreement as of December 31, 2013 which was repaid on January 3, 2014. The interest rate on this borrowing was 7.3%. | |||||||||
(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, 2014 are as follows: | |||||||||
Year ending December 31, | |||||||||
2014 | $ | 7,962 | |||||||
2015 | 515 | ||||||||
2016 | 10,405 | ||||||||
2017 | 794 | ||||||||
2018 | 860 | ||||||||
Thereafter | 22,257 | ||||||||
$ | 42,793 |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
STOCKHOLDERS' EQUITY [Abstract] | ' | ||||||||||||||||||||||
STOCKHOLDERS' EQUITY | ' | ||||||||||||||||||||||
6 | 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. | |||||||||||||||||||||||
On June 2, 2014, performance-based shares were granted which vest over three 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, 2015 and ending December 31, 2017 and (ii) the attainment of earnings before interest, taxes, depreciation and amortization targets during each of the fiscal years ended December 31, 2015 through 2017. 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, 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, 2014 and 2013, the Company completed a net share settlement for 27,682 and 60,552 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 2014 and/or 2013, 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 $0.1 million and $0.4 million for the nine months ended September 30, 2014 and 2013, 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, 2013 | 1,247,946 | $ | 6.77 | ||||||||||||||||||||
Granted | 229,955 | 3.83 | |||||||||||||||||||||
Canceled | (150,372 | ) | 9 | ||||||||||||||||||||
Vested | (156,694 | ) | 4.52 | ||||||||||||||||||||
Nonvested restricted stock outstanding at September 30, 2014 | 1,170,835 | 5.8 | |||||||||||||||||||||
The restricted stock expense for the three months ended September 30, 2014 and 2013 was $0.8 million and $0.1 million, respectively. The restricted stock expense for the nine months ended September 30, 2014 and 2013 was $2.4 million and $2.3 million, respectively. The unrecognized restricted stock expense as of September 30, 2014 and December 31, 2013 was $4.5 million and $6.8 million, respectively. As of September 30, 2014, outstanding restricted shares under the LTIP had aggregate intrinsic value of $3.3 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 Average Exercise Price Per Share | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value (in thousands) | ||||||||||||||||||||
Outstanding at December 31, 2013 | 547,125 | $ | 14.73 | 4.56 years | $ | - | |||||||||||||||||
Canceled | (70,500 | ) | 20.76 | - | |||||||||||||||||||
Outstanding at September 30, 2014 | 476,625 | 13.84 | 4.14 years | - | |||||||||||||||||||
Vested or expected to vest | 467,493 | 13.96 | 4.07 years | - | |||||||||||||||||||
Exercisable as of September 30, 2014 | 430,965 | 14.48 | 3.79 years | - | |||||||||||||||||||
As of September 30, 2014, the unrecognized pre-tax compensation expense for all unvested stock option awards was less than $0.1 million. This amount will be expensed over the weighted-average period of approximately 1.26 years. | |||||||||||||||||||||||
The following table presents a summary of stock options outstanding: | |||||||||||||||||||||||
At September 30, 2014 | |||||||||||||||||||||||
Stock Options Outstanding | Stock Options Exercisable | ||||||||||||||||||||||
Range of Exercise Prices | Shares | Contractual Weighted Average Life (years) | Weighted Average Price | Shares | Weighted Average Exercise Price | ||||||||||||||||||
$ | 4.00-$13.99 | 244,792 | 5.36 | $ | 9.63 | 199,132 | $ | 10.05 | |||||||||||||||
$ | 14.00-$19.99 | 173,333 | 2.48 | 17.55 | 173,333 | 17.55 | |||||||||||||||||
$ | 20.00-$25.00 | 58,500 | 3.92 | 20.48 | 58,500 | 20.48 | |||||||||||||||||
476,625 | 4.14 | 13.84 | 430,965 | 14.48 |
INCOME_TAXES
INCOME TAXES | 9 Months Ended | |
Sep. 30, 2014 | ||
INCOME TAXES [Abstract] | ' | |
INCOME TAXES | ' | |
7 | INCOME TAXES | |
The benefit for income taxes for the three months ended September 30, 2014 was $5.7 million, or 13.0% of pretax loss, compared to a provision for income taxes of $0.1 million, or 49.0%, of pretax income for the quarter ended September 30, 2013. The benefit for income taxes for the nine months ended September 30, 2014 was $4.8 million, or 7.3% of pretax loss, compared to a benefit for income taxes of $7.5 million, or 38.8%, of pretax loss for the nine months ended September 30, 2013. | ||
Previously, the company had a deferred tax liability related to an indefinite life intangible that was not available to offset the net deferred tax asset of the Company when evaluating the amount of the valuation allowance needed. As a result of the Company’s impairment of goodwill this quarter, the deferred tax liability related to the indefinite life intangible reversed resulting in a decrease in the valuation allowance needed. This release of the valuation allowance resulted in an income tax benefit. | ||
The Company assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence was the cumulative losses incurred by the Company in recent years. On the basis of this evaluation the realization of the Company’s deferred tax assets was not deemed to be more likely than not and thus the Company maintained a valuation allowance on its net deferred tax assets as of September 30, 2014. |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended | |
Sep. 30, 2014 | ||
CONTINGENCIES [Abstract] | ' | |
CONTINGENCIES | ' | |
8 | 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, 2014 | ||
PENSION PLAN [Abstract] | ' | |
PENSION PLAN | ' | |
9 | PENSION PLAN | |
The Company sponsors a noncontributory defined benefit pension plan covering some of the Company's employees who were employed by the Company prior to 1995. Benefits are provided based on employees' years of service and earnings. This plan was frozen on December 31, 1994. The total amount of the Company's contributions paid under its pension plan was $0.2 million for the nine months ended September 30, 2014 and $0.7 million for the nine months ended September 30, 2013. The net periodic benefit cost was less than $0.1 million and $0.2 million for the three months ended September 30, 2014 and 2013, respectively, and $0.1 million and $0.5 million for the nine months ended September 30, 2014 and 2013 respectively. |
DIVIDENDS
DIVIDENDS | 9 Months Ended | |
Sep. 30, 2014 | ||
DIVIDENDS [Abstract] | ' | |
DIVIDENDS | ' | |
10 | DIVIDENDS | |
In August 2014, the Company’s Board of Directors declared a quarterly cash dividend of $0.02 per share of common stock outstanding, which was paid on September 30, 2014 to shareholders of record on September 12, 2014. 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, 2014 | |
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 31 campuses and five training sites in 15 states across the United States. | |
For the last several years, the Company and the proprietary school sector has faced various forms of adversity which have contributed to deteriorating earnings growth. Government regulations have negatively impacted earnings by making it more difficult for potential students to obtain loans, which when coupled with the overall economic environment have hindered potential students from enrolling in our schools. In light of these factors, the Company has incurred significant operating losses as a result of lower student population. The Company also experienced a significant decline in market capitalization during the quarter ended September 30, 2014. Despite these events, management believes that its likely sources of cash should be sufficient to fund operations for the next twelve months. The Company's available sources of cash primarily include results of operations, cash and cash equivalents and available borrowings under the revolving line of credit. The Company's revolving credit facility expires in April 2015. To fund the Company's business plans, including any anticipated future losses, purchase commitments, capital expenditures, and principal and interest payments on borrowings, the Company has the ability to leverage up to $ 50 million of its existing properties. In addition, the Company is also continuing to take actions to improve cash flow by aligning its cost structure to its student population. However, if the Company is unable to leverage certain of its properties and improve operating performance, the Company's business plans may be adversely affected and the Company will have to modify its business plans to conserve available cash. | |
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, 2013 consolidated financial statements of the Company, reflect all adjustments, consisting of normal recurring adjustments and 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, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2014. | |
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 July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The amendments in this ASU provide guidance on the financial statement presentation of unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this ASU did not materially impact the presentation of the Company’s financial condition, results of operation and disclosures. | |
In April 2014, FASB issued amended guidance on the use and presentation of discontinued operations in an entity's consolidated financial statements. The new guidance restricts the presentation of discontinued operations to business circumstances when the disposal of business operations represents a strategic shift that has or will have a major effect on an entity's operations and financial results. The guidance becomes effective on January 1, 2015. Adoption is on a prospective basis. | |
In May 2014, FASB issued a new standard related to revenue recognition, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new standard will replace most of the existing revenue recognition standards in GAAP when it becomes effective on January 1, 2017. Early adoption is not permitted. | |
The new standard can be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of the change recognized at the date of the initial application. The Company is assessing the potential impact of the new standard on financial reporting and has not yet selected a transition method. | |
Stock-Based Compensation | ' |
Stock-Based Compensation – The Company measures the value of stock options on the grant date at fair value, using the Black-Scholes option valuation model. The Company amortizes the fair value of stock options, net of estimated forfeitures, utilizing straight-line amortization of compensation expense over the requisite service period of the grant. | |
The Company measures the value of service and performance-based restricted stock on the fair value of a share of common stock on the date of the grant. The Company amortizes the fair value of service-based restricted stock utilizing straight-line amortization of compensation expense over the requisite service period of the grant. | |
The Company amortizes the fair value of the performance-based restricted stock based on the determination of the probable outcome of the performance condition. If the performance condition is expected to be met, then the Company amortizes the fair value of the number of shares expected to vest utilizing straight-line basis over the requisite performance period of the grant. However, if the associated performance condition is not expected to be met, then the Company does not recognize the stock-based compensation expense. | |
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 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 its 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, the Company’s 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 the Company’s consolidated financial statements and/or tax returns. Differences between anticipated and actual outcomes of these future tax consequences could have a material impact on the Company’s 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 the Company’s valuation of income tax assets and liabilities and could cause the Company’s income tax provision to vary significantly among financial reporting periods. | |
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the three and nine months ended September 30, 2014 and 2013, the interest and penalties expense associated with uncertain tax positions did not materially impact the Company’s results of operations or financial position. | |
Reclassifications | ' |
Reclassifications – During the nine months ended September 30, 2014, the Company reclassified amounts reflected in the 2013 consolidated balance sheet, to conform to the revised 2014 classification. For the year ended December 31, 2013, the Company had reported $89.7 million in long-term debt and lease obligations on the consolidated balance sheet. The Company reclassified $54.5 million of long-term credit agreement, $25.5 million of long-term capital lease obligations, and $9.7 million of long-term finance obligations into their own liability classifications on the consolidated balance sheet. |
WEIGHTED_AVERAGE_COMMON_SHARES1
WEIGHTED AVERAGE COMMON SHARES (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
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, 2014 and 2013 was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Basic shares outstanding | 22,843,247 | 22,528,478 | 22,789,254 | 22,480,308 | |||||||||||||
Dilutive effect of stock options | - | 282,678 | - | - | |||||||||||||
Diluted shares outstanding | 22,843,247 | 22,811,156 | 22,789,254 | 22,480,308 |
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
DISCONTINUED OPERATIONS [Abstract] | ' | ||||||||
Results of operations at campuses | ' | ||||||||
The results of operations at these five campuses for the three and nine months ended September 30, 2013 was as follows (in thousands): | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 30, | September 30, | ||||||||
2013 | 2013 | ||||||||
Revenue | $ | (18 | ) | $ | 7,261 | ||||
Operating expenses | (3,898 | ) | (19,322 | ) | |||||
Operating loss | $ | (3,916 | ) | $ | (12,061 | ) |
GOODWILL_AND_LONGLIVED_ASSETS_
GOODWILL AND LONG-LIVED ASSETS (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
GOODWILL AND LONG-LIVED ASSETS [Abstract] | ' | ||||||||||||||||||||||||
Changes in carrying amount of goodwill | ' | ||||||||||||||||||||||||
The carrying amount of goodwill at September 30, 2014 is as follows: | |||||||||||||||||||||||||
Gross Goodwill Balance | Accumulated Impairment Losses | Net Goodwill Balance | |||||||||||||||||||||||
Balance as of January 1, 2014 | $ | 117,176 | $ | (54,711 | ) | $ | 62,465 | ||||||||||||||||||
Impairment | - | (38,954 | ) | (38,954 | ) | ||||||||||||||||||||
Balance as of September 30, 2014 | $ | 117,176 | $ | (93,665 | ) | $ | 23,511 | ||||||||||||||||||
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: | |||||||||||||||||||||||||
Indefinite Trade Name | Trade Name | Accreditation | Curriculum | Non-compete | Total | ||||||||||||||||||||
Gross carrying amount at December 31, 2013 | $ | 180 | $ | 335 | $ | 1,166 | $ | 1,124 | $ | 200 | $ | 3,005 | |||||||||||||
Impairment | (180 | ) | (25 | ) | (102 | ) | (574 | ) | (200 | ) | (1,081 | ) | |||||||||||||
Gross carrying amount at September 30, 2014 | - | 310 | 1,064 | 550 | - | 1,924 | |||||||||||||||||||
Accumulated amortization at December 31, 2013 | - | 228 | - | 828 | 68 | 1,124 | |||||||||||||||||||
Amortization | - | 37 | - | 78 | 27 | 142 | |||||||||||||||||||
Impairment | (12 | ) | (448 | ) | (95 | ) | (555 | ) | |||||||||||||||||
Accumulated amortization at September 30, 2014 | - | 253 | - | 458 | - | 711 | |||||||||||||||||||
Net carrying amount at September 30, 2014 | $ | - | $ | 57 | $ | 1,064 | $ | 92 | $ | - | $ | 1,213 | |||||||||||||
Weighted average amortization period (years) | - | 7 | Indefinite | 10 | - | ||||||||||||||||||||
Summary of estimated future amortization expense | ' | ||||||||||||||||||||||||
The following table summarizes the estimated future amortization expense: | |||||||||||||||||||||||||
Year Ending December 31, | |||||||||||||||||||||||||
Remainder of 2014 | $ | 21 | |||||||||||||||||||||||
2015 | 65 | ||||||||||||||||||||||||
2016 | 22 | ||||||||||||||||||||||||
2017 | 20 | ||||||||||||||||||||||||
2018 | 20 | ||||||||||||||||||||||||
Thereafter | 1 | ||||||||||||||||||||||||
$ | 149 |
LONGTERM_DEBT_AND_LEASE_OBLIGA1
LONG-TERM DEBT AND LEASE OBLIGATIONS (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
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, | ||||||||
2014 | 2013 | ||||||||
Credit agreement (a) | $ | 7,500 | $ | 54,500 | |||||
Finance obligation (b) | 9,672 | 9,672 | |||||||
Capital lease-property (rate of 8.0%) (c) | 25,621 | 25,944 | |||||||
42,793 | 90,116 | ||||||||
Less current maturities | (7,962 | ) | (435 | ) | |||||
$ | 34,831 | $ | 89,681 | ||||||
Scheduled maturities of long-term debt and lease obligation | ' | ||||||||
Scheduled maturities of long-term debt and lease obligations at September 30, 2014 are as follows: | |||||||||
Year ending December 31, | |||||||||
2014 | $ | 7,962 | |||||||
2015 | 515 | ||||||||
2016 | 10,405 | ||||||||
2017 | 794 | ||||||||
2018 | 860 | ||||||||
Thereafter | 22,257 | ||||||||
$ | 42,793 |
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
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, 2013 | 1,247,946 | $ | 6.77 | ||||||||||||||||||||
Granted | 229,955 | 3.83 | |||||||||||||||||||||
Canceled | (150,372 | ) | 9 | ||||||||||||||||||||
Vested | (156,694 | ) | 4.52 | ||||||||||||||||||||
Nonvested restricted stock outstanding at September 30, 2014 | 1,170,835 | 5.8 | |||||||||||||||||||||
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 Average Exercise Price Per Share | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value (in thousands) | ||||||||||||||||||||
Outstanding at December 31, 2013 | 547,125 | $ | 14.73 | 4.56 years | $ | - | |||||||||||||||||
Canceled | (70,500 | ) | 20.76 | - | |||||||||||||||||||
Outstanding at September 30, 2014 | 476,625 | 13.84 | 4.14 years | - | |||||||||||||||||||
Vested or expected to vest | 467,493 | 13.96 | 4.07 years | - | |||||||||||||||||||
Exercisable as of September 30, 2014 | 430,965 | 14.48 | 3.79 years | - | |||||||||||||||||||
Summary of options outstanding | ' | ||||||||||||||||||||||
The following table presents a summary of stock options outstanding: | |||||||||||||||||||||||
At September 30, 2014 | |||||||||||||||||||||||
Stock Options Outstanding | Stock Options Exercisable | ||||||||||||||||||||||
Range of Exercise Prices | Shares | Contractual Weighted Average Life (years) | Weighted Average Price | Shares | Weighted Average Exercise Price | ||||||||||||||||||
$ | 4.00-$13.99 | 244,792 | 5.36 | $ | 9.63 | 199,132 | $ | 10.05 | |||||||||||||||
$ | 14.00-$19.99 | 173,333 | 2.48 | 17.55 | 173,333 | 17.55 | |||||||||||||||||
$ | 20.00-$25.00 | 58,500 | 3.92 | 20.48 | 58,500 | 20.48 | |||||||||||||||||
476,625 | 4.14 | 13.84 | 430,965 | 14.48 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Site | ||
School | ||
StudyArea | ||
State | ||
Business Activities [Abstract] | ' | ' |
Principal areas of study | 5 | ' |
Schools operated across the United States | 31 | ' |
Training sites operated across the United States | 5 | ' |
Number of states in which schools operate | 15 | ' |
Additional leverage capacity | $50,000,000 | ' |
Reclassifications [Abstract] | ' | ' |
Long-term debt and lease obligations, net of current portion | 34,831,000 | 89,681,000 |
Long-term credit agreement | 0 | 54,500,000 |
Long-term capital lease obligations | 25,159,000 | 25,509,000 |
Long-term finance obligation | $9,672,000 | $9,672,000 |
WEIGHTED_AVERAGE_COMMON_SHARES2
WEIGHTED AVERAGE COMMON SHARES (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Shares used to compute basic and diluted loss income per share [Abstract] | ' | ' | ' | ' |
Basic shares outstanding (in shares) | 22,843,247 | 22,528,478 | 22,789,254 | 22,480,308 |
Dilutive effect of stock options (in shares) | 0 | 282,678 | 0 | 0 |
Diluted shares outstanding (in shares) | 22,843,247 | 22,811,156 | 22,789,254 | 22,480,308 |
Stock Option 2 [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive shares excluded from computation of income (loss) per share (in shares) | 132,595 | 282,678 | 121,269 | 234,073 |
Stock Option 1 [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive shares excluded from computation of income (loss) per share (in shares) | 476,625 | 785,768 | 476,625 | 785,768 |
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) | 398,250 | 441,552 | 398,250 | 441,552 |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 18, 2013 | |
Campus | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Number of campuses | ' | ' | ' | ' | 5 |
Result of discontinued operations [Abstract] | ' | ' | ' | ' | ' |
OPERATING (LOSS) INCOME | ($42,312,000) | $1,219,000 | ($61,719,000) | ($16,092,000) | ' |
Ohio [Member] | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Number of campuses | ' | ' | ' | ' | 4 |
Kentucky [Member] | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Number of campuses | ' | ' | ' | ' | 1 |
Five Campuses [Member] | ' | ' | ' | ' | ' |
Result of discontinued operations [Abstract] | ' | ' | ' | ' | ' |
Revenue | ' | -18,000 | ' | 7,261,000 | ' |
Operating expenses | ' | -3,898,000 | ' | -19,322,000 | ' |
OPERATING (LOSS) INCOME | ' | -3,916,000 | ' | -12,061,000 | ' |
Impairments of goodwill and long-lived assets | ' | ' | ' | $2,300,000 | ' |
GOODWILL_AND_LONGLIVED_ASSETS_1
GOODWILL AND LONG-LIVED ASSETS (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Unit | Unit | Campus | Campus | |||||
Campus | Campus | |||||||
GOODWILL AND LONG-LIVED ASSETS [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of asset groups impaired | 6 | ' | 2 | ' | 2 | 6 | ' | ' |
Pre tax charge for impairment of leasehold improvements | $1,900,000 | ' | $1,400,000 | $1,700,000 | $1,400,000 | $1,900,000 | ' | ' |
Pre tax charge for impairment of intangible assets | 500,000 | ' | ' | ' | ' | 500,000 | ' | ' |
Asset impairment charges including discontinued operations | ' | ' | ' | 1,600,000 | 700,000 | ' | ' | ' |
Changes in carrying amount of goodwill [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Gross Goodwill Balance | 117,176,000 | ' | ' | ' | ' | 117,176,000 | ' | 117,176,000 |
Accumulated Impairment Losses | -93,665,000 | ' | ' | ' | ' | -93,665,000 | ' | -54,711,000 |
Net Goodwill Balance | 23,511,000 | ' | ' | ' | ' | 23,511,000 | ' | 62,465,000 |
Goodwill impairment | -39,000,000 | ' | -3,100,000 | ' | ' | -38,954,000 | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization | 100,000 | 100,000 | ' | ' | ' | 100,000 | 200,000 | ' |
Net carrying amount at end of period | 149,000 | ' | ' | ' | ' | 149,000 | ' | ' |
Intangible Assets (Excluding Goodwill) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Gross carrying amount, Total | ' | ' | ' | ' | ' | 3,005,000 | ' | ' |
Impairment | ' | ' | ' | ' | ' | -1,081,000 | ' | ' |
Gross carrying amount, Total | 1,924,000 | ' | ' | ' | ' | 1,924,000 | ' | ' |
Accumulated amortization, Total | ' | ' | ' | ' | ' | 1,124,000 | ' | ' |
Amortization | ' | ' | ' | ' | ' | 142,000 | ' | ' |
Impairment | ' | ' | ' | ' | ' | -555,000 | ' | ' |
Accumulated amortization, Total | 711,000 | ' | ' | ' | ' | 711,000 | ' | ' |
Net carrying amount | 1,213,000 | ' | ' | ' | ' | 1,213,000 | ' | ' |
Amortization of intangible assets | 100,000 | 100,000 | ' | ' | ' | 100,000 | 200,000 | ' |
Number of reporting unit tested for recoverability of long-lived assets | 10 | ' | 2 | ' | ' | ' | ' | ' |
Goodwill impairment | 39,000,000 | ' | 3,100,000 | ' | ' | 38,954,000 | ' | ' |
Estimated future amortization expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Remainder of 2014 | 21,000 | ' | ' | ' | ' | 21,000 | ' | ' |
2015 | 65,000 | ' | ' | ' | ' | 65,000 | ' | ' |
2016 | 22,000 | ' | ' | ' | ' | 22,000 | ' | ' |
2017 | 20,000 | ' | ' | ' | ' | 20,000 | ' | ' |
2018 | 20,000 | ' | ' | ' | ' | 20,000 | ' | ' |
Thereafter | 1,000 | ' | ' | ' | ' | 1,000 | ' | ' |
Total | 149,000 | ' | ' | ' | ' | 149,000 | ' | ' |
Indefinite Trade Name [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Gross carrying amount, beginning balance | ' | ' | ' | ' | ' | 180,000 | ' | ' |
Impairment | ' | ' | ' | ' | ' | -180,000 | ' | ' |
Gross carrying amount, ending balance | 0 | ' | ' | ' | ' | 0 | ' | ' |
Accumulated amortization, beginning balance | ' | ' | ' | ' | ' | 0 | ' | ' |
Amortization | ' | ' | ' | ' | ' | 0 | ' | ' |
Impairment | ' | ' | ' | ' | ' | 0 | ' | ' |
Accumulated amortization, ending balance | 0 | ' | ' | ' | ' | 0 | ' | ' |
Net carrying amount | 0 | ' | ' | ' | ' | 0 | ' | ' |
Accreditation [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Gross carrying amount, beginning balance | ' | ' | ' | ' | ' | 1,166,000 | ' | ' |
Impairment | ' | ' | ' | ' | ' | -102,000 | ' | ' |
Gross carrying amount, ending balance | 1,064,000 | ' | ' | ' | ' | 1,064,000 | ' | ' |
Accumulated amortization, beginning balance | ' | ' | ' | ' | ' | 0 | ' | ' |
Amortization | ' | ' | ' | ' | ' | 0 | ' | ' |
Impairment | ' | ' | ' | ' | ' | 0 | ' | ' |
Accumulated amortization, ending balance | 0 | ' | ' | ' | ' | 0 | ' | ' |
Net carrying amount | 1,064,000 | ' | ' | ' | ' | 1,064,000 | ' | ' |
Trade Name [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Gross carrying amount, beginning balance | ' | ' | ' | ' | ' | 335,000 | ' | ' |
Impairment | ' | ' | ' | ' | ' | -25,000 | ' | ' |
Gross carrying amount, ending balance | 310,000 | ' | ' | ' | ' | 310,000 | ' | ' |
Accumulated amortization, beginning balance | ' | ' | ' | ' | ' | 228,000 | ' | ' |
Amortization | ' | ' | ' | ' | ' | 37,000 | ' | ' |
Impairment | ' | ' | ' | ' | ' | -12,000 | ' | ' |
Accumulated amortization, ending balance | 253,000 | ' | ' | ' | ' | 253,000 | ' | ' |
Net carrying amount at end of period | 57,000 | ' | ' | ' | ' | 57,000 | ' | ' |
Weighted average amortization period | ' | ' | ' | ' | ' | '7 years | ' | ' |
Intangible Assets (Excluding Goodwill) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of intangible assets | ' | ' | ' | ' | ' | 37,000 | ' | ' |
Estimated future amortization expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Total | 57,000 | ' | ' | ' | ' | 57,000 | ' | ' |
Curriculum [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Gross carrying amount, beginning balance | ' | ' | ' | ' | ' | 1,124,000 | ' | ' |
Impairment | ' | ' | ' | ' | ' | -574,000 | ' | ' |
Gross carrying amount, ending balance | 550,000 | ' | ' | ' | ' | 550,000 | ' | ' |
Accumulated amortization, beginning balance | ' | ' | ' | ' | ' | 828,000 | ' | ' |
Amortization | ' | ' | ' | ' | ' | 78,000 | ' | ' |
Impairment | ' | ' | ' | ' | ' | -448,000 | ' | ' |
Accumulated amortization, ending balance | 458,000 | ' | ' | ' | ' | 458,000 | ' | ' |
Net carrying amount at end of period | 92,000 | ' | ' | ' | ' | 92,000 | ' | ' |
Weighted average amortization period | ' | ' | ' | ' | ' | '10 years | ' | ' |
Intangible Assets (Excluding Goodwill) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of intangible assets | ' | ' | ' | ' | ' | 78,000 | ' | ' |
Estimated future amortization expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Total | 92,000 | ' | ' | ' | ' | 92,000 | ' | ' |
Non-compete [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Gross carrying amount, beginning balance | ' | ' | ' | ' | ' | 200,000 | ' | ' |
Impairment | ' | ' | ' | ' | ' | -200,000 | ' | ' |
Gross carrying amount, ending balance | 0 | ' | ' | ' | ' | 0 | ' | ' |
Accumulated amortization, beginning balance | ' | ' | ' | ' | ' | 68,000 | ' | ' |
Amortization | ' | ' | ' | ' | ' | 27,000 | ' | ' |
Impairment | ' | ' | ' | ' | ' | -95,000 | ' | ' |
Accumulated amortization, ending balance | 0 | ' | ' | ' | ' | 0 | ' | ' |
Net carrying amount at end of period | 0 | ' | ' | ' | ' | 0 | ' | ' |
Weighted average amortization period | ' | ' | ' | ' | ' | '0 years | ' | ' |
Intangible Assets (Excluding Goodwill) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of intangible assets | ' | ' | ' | ' | ' | 27,000 | ' | ' |
Estimated future amortization expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Total | $0 | ' | ' | ' | ' | $0 | ' | ' |
LONGTERM_DEBT_AND_LEASE_OBLIGA2
LONG-TERM DEBT AND LEASE OBLIGATIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | ||||
Lender | ||||||
Long-term debt and lease obligations [Abstract] | ' | ' | ' | |||
Credit agreement | $7,500,000 | [1] | $7,500,000 | [1] | $54,500,000 | [1] |
Long term debt and capital lease obligations | 42,793,000 | 42,793,000 | 90,116,000 | |||
Less current maturities | -7,962,000 | -7,962,000 | -435,000 | |||
Long-term debt and lease obligations | 34,831,000 | 34,831,000 | 89,681,000 | |||
Outstanding amount of credit facility | 7,500,000 | [1] | 7,500,000 | [1] | 54,500,000 | [1] |
Sale and a leaseback of several facilities, Date | ' | 'December 28, 2001 | ' | |||
Lease expiration date | ' | 31-Dec-16 | ' | |||
Scheduled maturities of long-term debt and lease obligations [Abstract] | ' | ' | ' | |||
2014 | 7,962,000 | 7,962,000 | ' | |||
2015 | 515,000 | 515,000 | ' | |||
2016 | 10,405,000 | 10,405,000 | ' | |||
2017 | 794,000 | 794,000 | ' | |||
2018 | 860,000 | 860,000 | ' | |||
Thereafter | 22,257,000 | 22,257,000 | ' | |||
Long term debt and capital lease obligations | 42,793,000 | 42,793,000 | 90,116,000 | |||
Credit Agreement [Member] | ' | ' | ' | |||
Long-term debt and lease obligations [Abstract] | ' | ' | ' | |||
Credit agreement | ' | ' | 54,500,000 | |||
Number of lenders led by Bank of America | ' | 4 | ' | |||
Maximum borrowing capacity of credit facility | ' | ' | 60,000,000 | |||
Reduced amount of credit facility | 40,000,000 | ' | ' | |||
Expiration date of credit facility | ' | 5-Apr-15 | ' | |||
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% | 1.00% | ' | |||
Interest rate of credit facility (in hundredths) | 7.30% | ' | ' | |||
Amount outstanding under letter of credit | 5,300,000 | 5,300,000 | ' | |||
Outstanding amount of credit facility | ' | ' | 54,500,000 | |||
Letter of Credit [Member] | ' | ' | ' | |||
Long-term debt and lease obligations [Abstract] | ' | ' | ' | |||
Maximum borrowing capacity of credit facility | ' | ' | 25,000,000 | |||
Minimum [Member] | Credit Agreement [Member] | ' | ' | ' | |||
Long-term debt and lease obligations [Abstract] | ' | ' | ' | |||
Interest rate of credit facility (in hundredths) | ' | 2.50% | ' | |||
Minimum [Member] | Letter of Credit [Member] | ' | ' | ' | |||
Long-term debt and lease obligations [Abstract] | ' | ' | ' | |||
Interest rate of credit facility (in hundredths) | ' | 4.20% | ' | |||
Maximum [Member] | Credit Agreement [Member] | ' | ' | ' | |||
Long-term debt and lease obligations [Abstract] | ' | ' | ' | |||
Interest rate of credit facility (in hundredths) | ' | 6.00% | ' | |||
Maximum [Member] | Letter of Credit [Member] | ' | ' | ' | |||
Long-term debt and lease obligations [Abstract] | ' | ' | ' | |||
Interest rate of credit facility (in hundredths) | ' | 7.30% | ' | |||
Finance Obligation [Member] | ' | ' | ' | |||
Long-term debt and lease obligations [Abstract] | ' | ' | ' | |||
Capital lease and finance obligation | 9,672,000 | [2] | 9,672,000 | [2] | 9,672,000 | [2] |
Capital Lease-Property (with a rate of 8.0%) [Member] | ' | ' | ' | |||
Long-term debt and lease obligations [Abstract] | ' | ' | ' | |||
Capital lease and finance obligation | $25,621,000 | [3] | $25,621,000 | [3] | $25,944,000 | [3] |
Interest rate of debt instrument (in hundredths) | 8.00% | 8.00% | ' | |||
[1] | On April 5, 2012, the Company, as borrower, and certain of its wholly-owned subsidiaries, as guarantors, entered into a secured revolving credit agreement with a syndicate of four lenders led by Bank of America, N.A., as administrative agent and letter of credit issuer (the "Credit Facility"). The April 5, 2012 agreement, along with subsequent amendments dated June 18, 2013 and December 20, 2013, are collectively referred to as the "Credit Agreement." As of December 31, 2013, the aggregate principal amount available under the Credit Facility was $60 million. Under the terms of the Credit Agreement, amended January 16, 2014, this amount was reduced to $40 million. 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 $25 million letter of credit sublimit. The original term of the Credit Facility is 36 months, maturing on April 5, 2015. The Credit Agreement provides that the lenders will receive first priority lien on substantially all of the tangible and intangible non-real property assets of the Company and its subsidiaries as well as a first priority lien on substantially all real property owned by the Company and its subsidiaries and that all net proceeds of future sales of real property by the Company and its subsidiaries be used to prepay revolving loans and permanently reduce the principal amount of revolving loans available under the Credit Facility. 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 rate of interest announced from time to time by Bank of America, N.A. as its 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%. Pursuant to the Credit Agreement, the margin interest rate is subject to adjustment within a range of 2.50% to 6.00% 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. 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, 2014, 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 Credit Agreement contains 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, 2014 the Company is in compliance with all financial covenants. During the three months ended September 30, 2014 the Company had net repayments of $7.5 under the Credit Facility during the three months ended September 30, 2014. The Company had $7.5 million outstanding under the Credit Facility as of September 30, 2014. The interest rates on these borrowings ranged from 4.2% to 7.3%. The Company had $54.5 million outstanding under the Credit Agreement as of December 31, 2013 which was repaid on January 3, 2014. The interest rate on this borrowing was 7.3%. | |||||
[2] | 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] | 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, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | |
Plan | $ 4.00-$13.99 [Member] | $ 14.00-$19.99 [Member] | $ 20.00-$25.00 [Member] | Stock Options [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 | '3 years | '4 years | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Specified operating income margin period | 'one or more of the fiscal years | 'one or more of the fiscal years | 'one or more of the fiscal years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net share settlement for restricted stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,682 | 60,552 | ' |
Net share settlement for stock options (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,682 | 60,552 | ' | ' | ' |
Decrease in equity due to payment of tax for employee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000 | $400,000 | ' | ' | ' |
Shares [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested restricted stock outstanding, beginning balance (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,247,946 | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 229,955 | ' | ' | ' | ' | ' | ' | ' |
Canceled (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | -150,372 | ' | ' | ' | ' | ' | ' | ' |
Vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | -156,694 | ' | ' | ' | ' | ' | ' | ' |
Nonvested restricted stock outstanding, ending balance (in shares) | ' | ' | ' | ' | ' | ' | ' | 1,170,835 | ' | 1,170,835 | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested restricted stock outstanding, beginning balance (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.77 | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.83 | ' | ' | ' | ' | ' | ' | ' |
Canceled (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9 | ' | ' | ' | ' | ' | ' | ' |
Vested (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.52 | ' | ' | ' | ' | ' | ' | ' |
Nonvested restricted stock outstanding, ending balance (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $5.80 | ' | $5.80 | ' | ' | ' | ' | ' | ' | ' |
Recognized restricted stock expense | ' | ' | ' | ' | ' | ' | ' | 800,000 | 100,000 | 2,400,000 | 2,300,000 | ' | ' | ' | ' | ' | ' |
Unrecognized restricted stock expense | ' | ' | ' | ' | ' | ' | ' | 4,500,000 | ' | 4,500,000 | ' | 6,800,000 | ' | ' | ' | ' | ' |
Outstanding restricted shares, intrinsic value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,300,000 |
Shares [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning balance (in shares) | 547,125 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Canceled (in shares) | -70,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, ending balance (in shares) | 476,625 | 547,125 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest (in shares) | 467,493 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable, ending balance (in shares) | 430,965 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning balance (in dollars per share) | $14.73 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Canceled (in dollars per share) | $20.76 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, ending balance (in dollars per share) | $13.84 | $14.73 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest (in dollars per share) | $13.96 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable, ending balance (in dollars per share) | $14.48 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Remaining Contractual Term [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning balance | '4 years 1 month 20 days | '4 years 6 months 22 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, ending balance | '4 years 1 month 20 days | '4 years 6 months 22 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest | '4 years 0 months 25 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable, ending balance | '3 years 9 months 14 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 | ' | ' | ' | ' | ' | ' | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period of unrecognized pre-tax compensation | ' | ' | ' | ' | ' | ' | '1 year 3 months 4 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Range of Exercise Prices [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Options Outstanding [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares (in shares) | 476,625 | ' | ' | 244,792 | 173,333 | 58,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual Weighted Average Life | '4 years 1 month 20 days | ' | ' | '5 years 4 months 10 days | '2 years 5 months 23 days | '3 years 11 months 1 day | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Price (in dollars per share) | $13.84 | ' | ' | $9.63 | $17.55 | $20.48 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Options Exercisable [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares (in shares) | 430,965 | ' | ' | 199,132 | 173,333 | 58,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Exercise Price (in dollars per share) | $14.48 | ' | ' | $10.05 | $17.55 | $20.48 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
INCOME TAXES [Abstract] | ' | ' | ' | ' |
Benefit for income taxes | ($5,666) | $74 | ($4,805) | ($7,526) |
Effective income tax rate (in hundredths) | 13.00% | 49.00% | 7.30% | 38.80% |
PENSION_PLAN_Details
PENSION PLAN (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
PENSION PLAN [Abstract] | ' | ' | ' | ' |
Employer contributions under pension plan | ' | ' | $0.20 | $0.70 |
Net periodic benefit cost | $0.10 | $0.20 | $0.10 | $0.50 |
DIVIDENDS_Details
DIVIDENDS (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
DIVIDENDS [Abstract] | ' | ' |
Cash dividend declared (in dollars per share) | $0.02 | $0.16 |