Lincoln Educational Services (LINC) 10-Q 7 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 03, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	LINCOLN EDUCATIONAL SERVICES CORP
Entity Central Index Key	1,286,613
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	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		24,857,892
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 19,240	$ 38,420
Restricted cash	6,282	7,362
Accounts receivable, less allowance of $8,407 and $9,297 at September 30, 2016 and December 31, 2015, respectively	13,741	9,917
Inventories	1,146	1,182
Prepaid income taxes and income taxes receivable	274	349
Assets held for sale	48,297	45,258
Prepaid expenses and other current assets	2,181	2,601
Total current assets	91,161	105,089
PROPERTY, EQUIPMENT AND FACILITIES - At cost, net of accumulated depreciation and amortization of $126,877 and $122,037 at September 30, 2016 and December 31, 2015, respectively	57,956	66,508
OTHER ASSETS:
Noncurrent restricted cash	20,281	15,259
Noncurrent receivables, less allowance of $742 and $821 at September 30, 2016 and December 31, 2015, respectively	5,437	5,168
Goodwill	14,536	14,536
Other assets, net	1,023	1,190
Total other assets	41,277	36,153
TOTAL	190,394	207,750
CURRENT LIABILITIES:
Current portion of term loan	10,000	10,000
Current portion of capital lease obligations	0	114
Current portion of finance obligation	1,678	0
Unearned tuition	19,859	22,094
Accounts payable	17,137	12,863
Accrued expenses	11,828	12,263
Liabilities held for sale	15,958	13,426
Other short-term liabilities	157	686
Total current liabilities	76,617	71,446
NONCURRENT LIABILITIES:
Long-term term loan	31,734	32,124
Long-term capital lease obligations	0	3,785
Long-term finance obligation	0	9,672
Pension plan liabilities	5,476	5,549
Accrued rent	3,602	4,177
Total liabilities	117,429	126,753
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, no par value - 10,000,000 shares authorized, no shares issued and outstanding at September 30, 2016 and December 31, 2015	0	0
Common stock, no par value - authorized: 100,000,000 shares at September 30, 2016 and December 31, 2015; issued and outstanding: 30,768,433 shares at September 30, 2016 and 29,727,555 shares at December 31, 2015	141,377	141,377
Additional paid-in capital	28,271	27,292
Treasury stock at cost - 5,910,541 shares at September 30, 2016 and December 31, 2015	(82,860)	(82,860)
(Accumulated deficit) retained earnings	(7,417)	2,260
Accumulated other comprehensive loss	(6,406)	(7,072)
Total stockholders' equity	72,965	80,997
TOTAL	$ 190,394	$ 207,750

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Accounts receivable, allowance	$ 8,407	$ 9,297
PROPERTY, EQUIPMENT AND FACILITIES - accumulated depreciation and amortization	126,877	122,037
OTHER ASSETS :
Noncurrent receivables, allowance	$ 742	$ 821
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)	30,768,433	29,727,555
Common stock, shares outstanding (in shares)	30,768,433	29,727,555
Treasury stock, shares (in shares)	5,910,541	5,910,541

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract]
REVENUE	$ 49,803	$ 54,033	$ 138,444	$ 150,569
COSTS AND EXPENSES:
Educational services and facilities	24,398	25,000	70,975	72,330
Selling, general and administrative	24,361	22,718	76,090	81,024
Loss (gain) on sale of assets	1	227	(394)	192
Impairment of goodwill and long-lived assets	0	216	0	216
Total costs & expenses	48,760	48,161	146,671	153,762
OPERATING INCOME (LOSS)	1,043	5,872	(8,227)	(3,193)
OTHER:
Interest income	69	19	141	40
Interest expense	(1,478)	(2,085)	(4,572)	(5,114)
Other income	1,678	199	5,109	781
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	1,312	4,005	(7,549)	(7,486)
PROVISION FOR INCOME TAXES	50	50	150	150
INCOME (LOSS) FROM CONTINUING OPERATIONS	1,262	3,955	(7,699)	(7,636)
LOSS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES	(1,733)	(1,374)	(1,978)	(4,271)
NET (LOSS) INCOME	$ (471)	$ 2,581	$ (9,677)	$ (11,907)
Basic
Income (loss) per share from continuing operations (in dollars per share)	$ 0.05	$ 0.17	$ (0.33)	$ (0.33)
Loss per share from discontinued operations (in dollars per share)	(0.07)	(0.06)	(0.08)	(0.18)
Net (loss) income per share (in dollars per share)	(0.02)	0.11	(0.41)	(0.51)
Diluted
Income (loss) per share from continuing operations (in dollars per share)	0.05	0.17	(0.33)	(0.33)
Loss per share from discontinued operations (in dollars per share)	(0.07)	(0.06)	(0.08)	(0.18)
Net (loss) income per share (in dollars per share)	$ (0.02)	$ 0.11	$ (0.41)	$ (0.51)
Weighted average number of common shares outstanding:
Basic (in shares)	23,498,904	23,230,438	23,433,015	23,140,006
Diluted (in shares)	24,679,977	23,269,635	23,433,015	23,140,006

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) [Abstract]
Net (loss) income	$ (471)	$ 2,581	$ (9,677)	$ (11,907)
Other comprehensive income
Employee pension plan adjustments	222	231	666	694
Comprehensive (loss) income	$ (249)	$ 2,812	$ (9,011)	$ (11,213)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings (Accumulated Deficit) [Member]	Accumulated Other Comprehensive Loss [Member]	Total
BALANCE at Dec. 31, 2014	$ 141,377	$ 26,350	$ (82,860)	$ 5,610	$ (7,467)	$ 83,010
BALANCE (in shares) at Dec. 31, 2014	29,933,086
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ 0	0	0	(11,907)	0	(11,907)
Employee pension plan adjustments, net of taxes	0	0	0	0	694	694
Stock-based compensation expense
Restricted stock	$ 0	852	0	0	0	852
Restricted stock (in shares)	(106,269)
Stock options	$ 0	33	0	0	0	33
Net share settlement for equity-based compensation	$ 0	(104)	0	0	0	(104)
Net share settlement for equity-based compensation (in shares)	(49,075)
BALANCE at Sep. 30, 2015	$ 141,377	27,131	(82,860)	(6,297)	(6,773)	72,578
BALANCE (in shares) at Sep. 30, 2015	29,777,742
BALANCE at Dec. 31, 2015	$ 141,377	27,292	(82,860)	2,260	(7,072)	$ 80,997
BALANCE (in shares) at Dec. 31, 2015	29,727,555					29,727,555
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ 0	0	0	(9,677)	0	$ (9,677)
Employee pension plan adjustments, net of taxes	0	0	0	0	666	666
Stock-based compensation expense
Restricted stock	$ 0	1,086	0	0	0	1,086
Restricted stock (in shares)	1,079,267
Net share settlement for equity-based compensation	$ 0	(107)	0	0	0	(107)
Net share settlement for equity-based compensation (in shares)	(38,389)
BALANCE at Sep. 30, 2016	$ 141,377	$ 28,271	$ (82,860)	$ (7,417)	$ (6,406)	$ 72,965
BALANCE (in shares) at Sep. 30, 2016	30,768,433					30,768,433

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (9,677)	$ (11,907)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	8,590	10,727
Amortization of deferred finance charges	704	356
(Gain) loss on disposition of assets	(402)	188
Impairment of goodwill and long-lived assets	0	216
Gain on capital lease termination	(5,032)	0
Fixed asset donation	(123)	(20)
Provision for doubtful accounts	10,116	10,886
Stock-based compensation expense	1,086	885
Deferred rent	(358)	(505)
(Increase) decrease in assets:
Accounts receivable	(17,430)	(14,216)
Inventories	24	(135)
Prepaid income taxes and income taxes receivable	75	184
Prepaid expenses and current assets	763	1,128
Other assets, net	(1,401)	(1,382)
Increase (decrease) in liabilities:
Accounts payable	3,843	3,326
Accrued expenses	1,611	1,274
Unearned tuition	(1,966)	1,034
Other liabilities	64	453
Total adjustments	164	14,399
Net cash (used in) provided by operating activities	(9,513)	2,492
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(2,155)	(1,606)
Restricted cash	1,080	0
Proceeds from sale of property and equipment	432	447
Net cash used in investing activities	(643)	(1,159)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on borrowings	(386)	(38,850)
Reclassifications of payments of borrowings from restricted cash	0	30,000
Reclassifications of proceeds of borrowings from restricted cash	(5,022)	(22,612)
Payment of deferred finance fees	(645)	(2,794)
Proceeds from borrowings	0	53,500
Net share settlement for equity-based compensation	(107)	(104)
Principal payments under capital lease obligations	(2,864)	(350)
Net cash (used in) provided by financing activities	(9,024)	18,790
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(19,180)	20,123
CASH AND CASH EQUIVALENTS-Beginning of period	38,420	12,299
CASH AND CASH EQUIVALENTS-End of period	19,240	32,422
Cash paid during the year for:
Interest	4,020	5,162
Income taxes	122	79
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Liabilities accrued for or noncash purchases of fixed assets	$ 2,033	$ 757

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Activities – Lincoln Educational Services Corporation and its subsidiaries (collectively, the “Company”) provide diversified career-oriented post-secondary education to recent high school graduates and working adults. The Company In the first quarter of 2015, the Company reorganized its operations into three reportable business segments: (a) Transportation and Skilled Trades, (b) Healthcare and Other Professions, and (c) Transitional which refers to businesses that have been or are currently being taught out. I results of operations of the 17 campuses included in the Healthcare and Other Professions segment that are being divested are reflected as discontinued operations in the condensed consolidated financial statements. Liquidity — In addition to the current sources of capital that will provide short term liquidity, the Company plans to sell approximately $32.3 million in assets net of liabilities, which are currently classified as held for sale and are expected to be sold within one year from the date of classification of which up to $10 million will be required to pay down debt. Basis of Presentation 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 New Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. In February 2016, the FASB issued ASU Topic 842, Leases In November 2015, the FASB issued guidance which simplifies the balance sheet classification of deferred taxes. The guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. This guidance is effective for public business entities for annual periods, and for interim periods within those periods, beginning after December 15, 2016 with early adoption permitted. The Company early adopted this guidance as of December 31, 2015. It did not have a material impact on the Company’s consolidated results of operations, financial condition or financial statement disclosures. In April 2015, the FASB issued accounting guidance related to the presentation of debt issuance costs in the balance sheet as a direct reduction from the carrying amount of the debt liability, consistent with debt discounts, rather than as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. Debt issuance costs related to revolving credit arrangements, however, will continue to be presented as an asset and amortized ratably over the term of the arrangement. In August 2015, the FASB issued accounting guidance related to the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements which clarifies that companies may continue to present unamortized debt issuance costs associated with line of credit arrangements as an asset. These pronouncements are effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption permitted. The guidance became effective for the Company on January 1, 2016 and did not have a material impact on the Company’s consolidated financial statements. In January 2015, the FASB issued ASU No. 2015-01, Income Statement – Extraordinary and Unusual Items. In August 2014, the FASB issued a new standard – ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers Stock-Based Compensation 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 Income Taxes 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, 2016 and 2015, the Company did not have any interest and penalties expense associated with uncertain tax positions. Reclassification

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES	9 Months Ended
	Sep. 30, 2016
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, 2016 and 2015 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Basic shares outstanding 23,498,904 23,230,438 23,433,015 23,140,006 Dilutive effect of stock options 1,181,073 39,197 - - Diluted shares outstanding 24,679,977 23,269,635 23,433,015 23,140,006 For the nine months ended September 30, 2016 and 2015, options to acquire 668,307 and 47,015 shares, respectively, were excluded from the above table because the Company recorded a net loss for each quarter and, therefore, their impact on reported loss per share would have been antidilutive. For the three and nine months ended September 30, 2016, options to acquire 224,667 shares 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 income (loss) per share would have been antidilutive. For the three and nine months ended September 30, 2015, options to acquire 540,567 shares 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 income (loss) per share would have been antidilutive. In 2013, and 2014, the Company issued performance shares that vest when certain performance conditions are satisfied. As of September 30, 2016, these performance conditions were not met for most of these shares. As a result, the Company has determined that most of these shares are contingently issuable. Accordingly, 998,827 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, 2016, and 152,837 shares have been excluded for the three and nine months ended September 30, 2015. Refer to Note 6 for more information on performance shares.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	9 Months Ended
	Sep. 30, 2016
DISCONTINUED OPERATIONS [Abstract]
DISCONTINUED OPERATIONS	3. DISCONTINUED OPERATIONS On November 3, 2015, the Board of Directors approved a plan for the Company to divest 17 of the 18 schools included in its Healthcare and Other Professions segment. The planned divestiture of the Company’s Healthcare and Other Professions segment constitutes a strategic shift for the Company. The results of operations of these campuses are reflected as discontinued operations in the condensed consolidated financial statements. Implementation of the plan will result in the Company’s operations being focused solely on the Transportation and Skilled Trades segment. The results of operations at these 17 campuses for the three and nine months ended September 30, 2016 and September 30, 2015 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenue $ 24,464 $ 25,013 $ 74,547 $ 77,590 Loss before income tax (1,733 ) (1,374 ) (1,978 ) (4,271 ) Income tax benefit - - - - Net loss from discontinued operations $ (1,733 ) $ (1,374 ) $ (1,978 ) $ (4,271 ) On December 3, 2015, the Board of Directors approved a plan to cease operations at the On July 1, 2016, New England Institute of Technology at Palm Beach, Inc. (“NEIT”), a wholly-owned subsidiary of the Company, entered into a purchase and sale agreement (the “WPB Sale Agreement”) with School Property Development Metrocentre, LLC (“SPD”), pursuant to which NEIT agreed to sell to SPD the real property owned by NEIT located at 2400 and 2410 Metrocentre Boulevard East, West Palm Beach, Florida, including the improvements and other personal property located thereon (the “WPB Property”) for a cash purchase price of approximately $15.9 million. In the third quarter of 2016, the Board of Directors approved a plan to teach-out certain programs at the West Palm Beach, Florida campus, which is expected to be completed in the first quarter of 2017. As a result, operations related to these programs have been included in the Transitional segment as of September 30, 2016. The remaining assets and liabilities at the West Palm Beach, Florida campus remain in classified as held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2016. The remaining operations at the West Palm Beach, Florida campus remain in classified as discontinued operations in the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2016. On September 1, 2016, the Company received notification of termination of the WPB Sale Agreement from SPD pursuant to the terms of the WPB Sale Agreement.

GOODWILL AND LONG-LIVED ASSETS

GOODWILL AND LONG-LIVED ASSETS	9 Months Ended
	Sep. 30, 2016
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. As of September 30, 2016 and 2015, long-lived assets were tested at certain 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 Company concluded that there was sufficient evidence to conclude that there was no impairment of long-lived assets as of September 30, 2016 and 2015. 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, 2016, there were no indicators of potential impairment and, accordingly, the Company did not test goodwill for impairment. The Company concluded that as of September 30, 2015 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 one of the Company’s reporting units was impaired, which resulted in a pre-tax non-cash charge of $0.2 million for the three months ended September 30, 2015. The carrying amount of goodwill at September 30, 2016 and 2015 is as follows: Gross Goodwill Balance Accumulated Impairment Losses Net Goodwill Balance Balance as of January 1, 2016 $ 108,417 $ (93,881 ) $ 14,536 Adjustments - - - Balance as of September 30, 2016 $ 108,417 $ (93,881 ) $ 14,536 Gross Goodwill Balance Accumulated Impairment Losses Net Goodwill Balance Balance as of January 1, 2015 $ 115,872 $ (93,665 ) $ 22,207 Adjustments - (216 ) (216 ) Balance as of September 30, 2015 $ 115,872 $ (93,881 ) $ 21,991 Intangible assets, which are included in other assets, net in the accompanying Condensed Consolidated Balance Sheets, consist of the following: Trade Name Curriculum Total Gross carrying amount at December 31, 2015 $ 310 $ 160 $ 470 Adjustments - - - Gross carrying amount at September 30, 2016 310 160 470 Accumulated amortization at December 31, 2015 308 112 420 Amortization 2 11 13 Accumulated amortization at September 30, 2016 310 123 433 Net carrying amount at September 30, 2016 $ - $ 37 $ 37 Weighted average amortization period (years) 7 10 Amortization of intangible assets was less than $0.1 million for each of the three and nine months ended September 30, 2016 and 2015. The following table summarizes the estimated future amortization expense: Year Ending December 31, Remainder of 2016 $ 4 2017 16 2018 17 $ 37

LONG-TERM DEBT AND LEASE OBLIGA

LONG-TERM DEBT AND LEASE OBLIGATIONS	9 Months Ended
	Sep. 30, 2016
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, 2016 December 31, 2015 Term loan (a) $ 41,734 $ 42,124 Finance obligation (b) 1,678 9,672 Capital lease-property (with a rate of 8.0%) (c) - 3,899 43,412 55,695 Less current maturities (11,678 ) (10,114 ) $ 31,734 $ 45,581 (a) A portion of the proceeds of the Term Loan was used by the Company to (i) repay approximately $6.3 million in outstanding principal, accrued interest and fees due under the previously existing revolving credit facility, (ii) fund the $20.3 million cash collateral account securing the portion of the Term Loan provided by Alostar, (iii) fund approximately $7.4 million in a cash collateral account securing the letters of credit issued under the previously existing revolving credit facility that remain outstanding after the termination of that facility and (iv) pay transaction expenses in connection with the Term Loan and the termination of the previously existing revolving credit facility. The remaining proceeds of the Term Loan of approximately $11 million may be used by the Company to finance capital expenditures and for general corporate purposes consistent with the terms of the Credit Agreement. Interest will accrue on the Term Loan at a per annum rate equal to the greater of (i) 11% or (ii) 90-day LIBOR plus 9% determined monthly by the Agent and will be payable monthly in arrears. The principal balance of the Term Loan will be repaid in equal monthly installments, commencing on August 1, 2017, determined as the quotient of (i) 10% of the outstanding principal balance of the Term Loan as of July 2, 2017 divided by (ii) 12. A final installment of principal and all accrued and unpaid interest will be due on the maturity date of the Term Loan. The Term Loan may be prepaid, in whole or in part, at any time, subject to the payment of a prepayment premium equal to (i) 5% of the principal amount prepaid at any time up to but not including the second anniversary of the Closing Date and (ii) 3% of the principal amount prepaid at any time commencing on the second anniversary of the Closing Date up to but not including the third anniversary of the Closing Date. In the event of any sale or other disposition of a school or real property by the Company permitted under the Term Loan, the net proceeds of such sale or disposition must be used to prepay the Loan in an amount determined pursuant to the Credit Agreement, subject to the applicable prepayment premium; provided, however, that no prepayment premium will be due with respect to up to $15 million of aggregate repayments of the Term Loan made during the first year that the Term Loan is outstanding. A portion of the net cash proceeds of any disposition of a school in an amount determined pursuant to the terms of the Term Loan, must be deposited and held as cash collateral in a deposit account controlled by the Agent until the conditions for release set forth in the Term Loan are satisfied. In connection with the assets which are currently classified as held for sale and are expected to be sold within one year, the Company is required to classify $10 million as short term debt due to the Term Loan prepayment minimum required with respect to any such disposition. The Term Loan contains customary representations, warranties and covenants such as minimum financial responsibility composite score, cohort default rate, and other financial covenants, including minimum liquidity, maximum capital expenditures, maximum 90/10 ratio and minimum EBITDA (as defined in the Term Loan), as well as affirmative and negative covenants and events of default customary for facilities of this type. The Company was in compliance with all covenants as of September 30, 2016. Subsequent to the 2015 fiscal year end, pursuant to the Second Amendment, the financial covenants were adjusted and, at the Company’s election, will be adjusted for fiscal year 2017 and for each subsequent fiscal year until the maturity of the Term Loan at either the levels applicable to fiscal year 2016 (and each fiscal quarter thereof) contained in the Credit Agreement as of the Closing Date or the levels applicable to fiscal year 2016 (and each fiscal quarter thereof) contained in the Second Amendment. In the event that the Company elects to re-set the financial covenants at the 2016 covenant levels contained in the Second Amendment, the Company will be required to prepay on or before January 15, 2017, without prepayment penalty, amounts outstanding under the Term Loan up to $4 million. The Credit Agreement contains events of default, the occurrence and continuation of which provide the Company’s lenders with the right to exercise remedies against the Company and the collateral securing the Term Loan, including the Company’s cash. These events of default include, among other things, the Company’s failure to pay any amounts due under the Term Loan, a breach of covenants under the Credit Agreement, the Company’s insolvency and the insolvency of its subsidiaries, the occurrence of a material adverse event, the occurrence of any default under certain other indebtedness, and a final judgment against the Company in an amount greater than $1 million. Also, in connection with the Term Loan, the Company paid to the Agent a commitment fee of $1 million on the Closing Date and is required to pay to the Agent other customary fees for facilities of this type. Total fees for the Term Loan were $2.8 million during fiscal year 2015. During the first quarter of 2016, in connection with the effectiveness of the Second Amendment, the Company paid loan modification fees of $0.5 million. These deferred finance fees are netted against the Term Loan on the Condensed Consolidated Balance Sheets and amortized to interest expense on the Condensed Consolidated Statement of Operations. As of September 30, 2016 and December 31, 2015, the Company had $44.3 million and $44.7 million outstanding under the Term Loan; offset by $2.5 million and $2.5 million of deferred finance fees, respectively. (b) The Company completed a sale and a leaseback of four facilities on December 28, 2001. The Company retained a continuing involvement in the lease and, as a result, the Company was prohibited from utilizing sale-leaseback accounting. Accordingly, the Company had treated this transaction as a finance lease. In January 2016, the lease was amended to cure certain provisions related to continuing involvement and, as a consequence, achieved sales treatment. In the first quarter of 2016, the lease was converted to an operating lease and rent payments are included in educational, services and facilities expense in the Condensed Consolidated Statement of Operations. In addition, the finance obligation, net of land and buildings, is being amortized straight-line through December 31, 2016. (c) In 2009, the Company assumed a real estate capital lease for a property located in Fern Park, Florida having a term continuing through October 31, 2032. approved a plan to cease operations of its school located at the In connection with the closure of the Fern Park, Florida school, on February 12, 2016, the Company paid a $2.8 million lease termination fee to the landlord of the Fern Park, Florida property in connection with the amendment and early termination of the 2009 lease agreement. The amended lease agreement subsequently expired on April 10, 2016. (d) On April 12, 2016, the Company entered into a credit agreement (the “L/C Agreement”) with Sterling National Bank (“Sterling” under which Sterling has agreed to issue letters of credit from time to time at 100% margin against available funds in a cash collateral account maintained by the Company at Sterling. The maximum availability under the L/C Agreement is $9.5 million. The Company will pay Sterling a letter of credit fee equal to 1.75% on the daily amount available to be drawn under each outstanding letter of credit, which fee is payable in quarterly installments in arrears. The L/C Agreement matures on April 1, 2017 and replaces a letter of credit facility with a prior lender. The L/C Agreement contains representations, warranties, affirmative and negative covenants and events of default customary for facilities of this type. As of September 30, 2016 the Company has $5.5 million of letters of credit outstanding under the L/C Agreement. Scheduled maturities of long-term debt and lease obligations at September 30, 2016 are as follows: Year ending December 31, 2016 $ 10,000 2017 3,173 2018 3,462 2019 27,632 $ 44,267 The finance obligation of $1.7 million is excluded from the scheduled maturities schedule as it is a non-cash liability.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2016
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. On May 13, 2016, performance-based shares were granted which vest over two years on March 15, 2017 and March 15, 2018 based upon the attainment of a financial responsibility ratio during each fiscal year ending December 31, 2016 and 2017. There is no vesting period on the right to vote or the right to receive dividends on any of the restricted shares. On June 2, 2014 and December 18, 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. 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, 2016 and 2015, the Company completed a net share settlement for 38,389 and 49,075 restricted shares, respectively, on behalf of certain employees who 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 employees during 2016 and/or 2015, creating taxable income for the employees. 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 $0.1 million or less for each of the three and nine months ended September 30, 2016 and 2015, respectively, to equity on the Condensed 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, 2015 450,494 $ 3.69 Granted 1,105,487 1.67 Canceled (26,200 ) 5.63 Vested (244,029 ) 3.05 Nonvested restricted stock outstanding at September 30, 2016 1,285,752 2.03 The restricted stock expense for the three months ended September 30, 2016 and 2015 was $0.4 million and $0.1 million, respectively. The restricted stock expense for the nine months ended September 30, 2016 and 2015 was $1.1 million and $0.9 million, respectively. The unrecognized restricted stock expense as of September 30, 2016 and December 31, 2015 was $1.9 million and $1.3 million, respectively. As of September 30, 2016, outstanding restricted shares under the LTIP had aggregate intrinsic value of $2.8 million. Stock Options The fair value of the stock options used to compute stock-based compensation is the estimated present value at the date of grant using the Black-Scholes option pricing model. The following is a summary of transactions pertaining to stock options: Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2015 246,167 $ 12.52 3.98 years $ - Canceled (21,500 ) 15.63 - Outstanding at September 30, 2016 224,667 12.23 3.48 years - Vested or expected to vest 224,667 12.23 3.48 years - Exercisable as of September 30, 2016 224,667 12.23 3.48 years - As of September 30, 2016, there was no unrecognized pre-tax compensation expense. The following table presents a summary of stock options outstanding: At September 30, 2016 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-$13.99 165,167 3.60 $ 9.46 165,167 $ 9.46 $ 14.00-$19.99 28,500 2.40 19.12 28,500 19.12 $ 20.00-$25.00 31,000 3.85 20.62 31,000 20.62 224,667 3.48 12.23 224,667 12.23

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2016
INCOME TAXES [Abstract]
INCOME TAXES	7. INCOME TAXES The provision for income taxes for the three months ended September 30, 2016 and 2015 was $0.1 million, or 3.8% of pretax income, and $0.1 million, or 1.2% of pretax income, respectively. The provision for income taxes for the nine months ended September 30, 2016 and 2015 was $0.2 million, or 2.0% of pretax loss, and $0.2 million, or 2.0% of pretax loss, respectively. 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, 2016.

CONTINGENCIES

CONTINGENCIES	9 Months Ended
	Sep. 30, 2016
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. On December 15, 2015, the Company received an administrative subpoena from the Attorney General of the State of Maryland. Pursuant to the subpoena, Maryland’s Attorney General has requested from the Company documents and detailed information relating to its Columbia, Maryland campus. The Company has responded to this request and intends to continue cooperating with the Maryland Attorney General’s Office.

SEGMENTS

SEGMENTS	9 Months Ended
	Sep. 30, 2016
SEGMENTS [Abstract]
SEGMENTS	9. SEGMENTS The for-profit education industry has been impacted by numerous regulatory changes, the changing economy and an onslaught of negative articles in the press. As a result of these actions, student populations have declined and operating costs have increased. Over the past few years, the Company has closed over 10 locations and exited its online business. The Company reviewed how it has been structured and in the first quarter of 2015 decided to change its organization to enable the Company to better allocate financial and human resources to respond to its markets and with the goal of improving its profitability and competitive advantage. In the past, the Company offered any combination of programs at any campus. The Company has changed its focus to program offerings that create greater differentiation and attain excellence to attract more students and gain market share. Also strategically, the Company began offering continuing education training to employers who hire its students and this is best achieved at campuses focused on their professions. As a result of the regulatory environment, market forces and strategic decisions, the Company now operates in three reportable segments: a) Transportation and Skilled Trades, b) Healthcare and Other Professions, and c) Transitional which refers to businesses that have been or are currently being taught out. The Company’s reportable segments have been determined based on a method by which we now evaluate performance and allocate resources. Each reportable segment represents a group of post-secondary education providers that offer a variety of degree and non-degree academic programs. These segments are organized by key market segments to enhance operational alignment within each segment to more effectively execute the Company’s strategic plan. Each of the Company’s schools is a reporting unit and an operating segment. The Company’s operating segments have been aggregated into three reportable segments because, in the Company’s judgment, the reporting units have similar services, types of customers, regulatory environment and economic characteristics. On November 3, 2015 the Board of Directors approved a plan for the Company to divest 17 of the 18 schools included in the Healthcare and Other Professions business segment. Then, in December 2015, the Board of Directors approved a plan to cease operations of the remaining school in this segment located in Hartford, Connecticut, which is scheduled to close in the fourth quarter of 2016. The divestiture of the Company’s Healthcare and Other Professions business segment marks a strategic shift in business strategy. The results of operations of these 17 campuses are reflected as discontinued operations in the consolidated financial statements. The Company’s Transportation and Skilled Trades – Transitional – the The Company evaluates segment performance based on operating results. Adjustments to reconcile segment results to consolidated results are included under the caption “Corporate,” which primarily includes unallocated corporate activity. Summary financial information by reporting segment is as follows: For the Three Months Ended September 30, Revenue Operating Income (Loss) 2016 % of Total 2015 % of Total 2016 2015 Transportation and Skilled Trades $ 47,939 96.3 % $ 49,697 92.0 % $ 6,122 $ 10,588 Transitional 1,864 3.7 % 4,336 8.0 % (1,359 ) (1,312 ) Corporate - 0.0 % - 0.0 % (3,720 ) (3,404 ) Total $ 49,803 100.0 % $ 54,033 100.0 % $ 1,043 $ 5,872 For the Nine Months Ended September 30, Revenue Operating (Loss) Income 2016 % of Total 2015 % of Total 2016 2015 Transportation and Skilled Trades $ 131,242 94.8 % $ 136,988 91.0 % $ 11,920 $ 18,333 Transitional 7,202 5.2 % 13,581 9.0 % (5,579 ) (4,916 ) Corporate - 0.0 % - 0.0 % (14,568 ) (16,610 ) Total $ 138,444 100.0 % $ 150,569 100.0 % $ (8,227 ) $ (3,193 ) Total Assets September 30, 2016 December 31, 2015 Transportation and Skilled Trades $ 87,056 $ 90,045 Transitional 1,298 2,448 Corporate 53,743 69,999 Discontinued Operations 48,297 45,258 Total $ 190,394 $ 207,750

FAIR VALUE

FAIR VALUE	9 Months Ended
	Sep. 30, 2016
FAIR VALUE [Abstract]
FAIR VALUE	10. FAIR VALUE The carrying amount and estimated fair value of the Company’s financial instruments, assets and liabilities, which are not measured at fair value on the Condensed Consolidated Balance Sheets, are listed in the table below: At September 30, 2016 Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Financial Assets: Cash and cash equivalents $ 19,240 $ 19,240 $ - $ - $ 19,240 Restricted cash 6,282 6,282 - - 6,282 Prepaid expenses and other current assets 2,181 - 2,181 - 2,181 Noncurrent restricted cash 20,281 20,281 - - 20,281 Financial Liabilities: Accrued expenses $ 11,828 $ - $ 11,828 $ - $ 11,828 Other short term liabilities 157 - 157 - 157 Term loan 41,734 - 38,517 - 38,517 The fair value of the Term loan is estimated based on a present value analysis utilizing aggregate market yields obtained from independent pricing sources for similar financial instruments. The carrying amounts reported on the Condensed Consolidated Balance Sheets for Cash and cash equivalents, Restricted cash and Noncurrent restricted cash approximate fair value because they are highly liquid. The carrying amounts reported on the Condensed Consolidated Balance Sheets for Prepaid expenses and other current assets, Accrued expenses and Other short term liabilities approximate fair value due to the short-term nature of these items.

RELATED PARTY

RELATED PARTY	9 Months Ended
	Sep. 30, 2016
RELATED PARTY [Abstract]
RELATED PARTY	11. RELATED PARTY The Company has an agreement with MATCO Tools, whereby MATCO will provide the Company, on an advance commission basis, credits in MATCO-branded tools, tool storage, equipment, and diagnostics products. The CEO of the parent company of MATCO is considered an immediate family member of one of the Company’s board members. The Company’s payable balances from this third party was immaterial at September 30, 2016 and 2015. Management believes that such transactions are at arm’s length and on similar terms as would have been obtained from unaffiliated third parties.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2016
SUBSEQUENT EVENTS [Abstract]
SUBSEQUENT EVENTS	12. SUBSEQUENT EVENTS On November 1, 2016, the Board of Directors approved a plan for the Company to teach-out the Green Valley, Nevada and Center City, Philadelphia campuses. The teach-out of the Green Valley, Nevada campus is expected to be completed in the fourth quarter of 2016. The teach-out of the Center City, Philadelphia campus is expected to be completed by the second quarter of 2017. As of September 30, 2016, both the Green Valley, Nevada and the Center City, Philadelphia campuses financial results were included in discontinued operations on the statement of operations and held for sale on the statement of financial position.

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Business Activities	Business Activities – Lincoln Educational Services Corporation and its subsidiaries (collectively, the “Company”) provide diversified career-oriented post-secondary education to recent high school graduates and working adults. The Company In the first quarter of 2015, the Company reorganized its operations into three reportable business segments: (a) Transportation and Skilled Trades, (b) Healthcare and Other Professions, and (c) Transitional which refers to businesses that have been or are currently being taught out. I
Liquidity	Liquidity — In addition to the current sources of capital that will provide short term liquidity, the Company plans to sell approximately $32.3 million in assets net of liabilities, which are currently classified as held for sale and are expected to be sold within one year from the date of classification of which up to $10 million will be required to pay down debt.
Basis of Presentation	Basis of Presentation 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
New Accounting Pronouncements	New Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. In February 2016, the FASB issued ASU Topic 842, Leases In November 2015, the FASB issued guidance which simplifies the balance sheet classification of deferred taxes. The guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. This guidance is effective for public business entities for annual periods, and for interim periods within those periods, beginning after December 15, 2016 with early adoption permitted. The Company early adopted this guidance as of December 31, 2015. It did not have a material impact on the Company’s consolidated results of operations, financial condition or financial statement disclosures. In April 2015, the FASB issued accounting guidance related to the presentation of debt issuance costs in the balance sheet as a direct reduction from the carrying amount of the debt liability, consistent with debt discounts, rather than as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. Debt issuance costs related to revolving credit arrangements, however, will continue to be presented as an asset and amortized ratably over the term of the arrangement. In August 2015, the FASB issued accounting guidance related to the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements which clarifies that companies may continue to present unamortized debt issuance costs associated with line of credit arrangements as an asset. These pronouncements are effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption permitted. The guidance became effective for the Company on January 1, 2016 and did not have a material impact on the Company’s consolidated financial statements. In January 2015, the FASB issued ASU No. 2015-01, Income Statement – Extraordinary and Unusual Items. In August 2014, the FASB issued a new standard – ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers
Stock-Based Compensation	Stock-Based Compensation 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 Income Taxes 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, 2016 and 2015, the Company did not have any interest and penalties expense associated with uncertain tax positions.
Reclassification	Reclassification

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES (Tables)	9 Months Ended
	Sep. 30, 2016
WEIGHTED AVERAGE COMMON SHARES [Abstract]
Weighted average numbers of common shares used to compute basic and diluted loss 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, 2016 and 2015 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Basic shares outstanding 23,498,904 23,230,438 23,433,015 23,140,006 Dilutive effect of stock options 1,181,073 39,197 - - Diluted shares outstanding 24,679,977 23,269,635 23,433,015 23,140,006

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	9 Months Ended
	Sep. 30, 2016
DISCONTINUED OPERATIONS [Abstract]
Results of operations at campuses	The results of operations at these 17 campuses for the three and nine months ended September 30, 2016 and September 30, 2015 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenue $ 24,464 $ 25,013 $ 74,547 $ 77,590 Loss before income tax (1,733 ) (1,374 ) (1,978 ) (4,271 ) Income tax benefit - - - - Net loss from discontinued operations $ (1,733 ) $ (1,374 ) $ (1,978 ) $ (4,271 )

GOODWILL AND LONG-LIVED ASSETS

GOODWILL AND LONG-LIVED ASSETS (Tables)	9 Months Ended
	Sep. 30, 2016
GOODWILL AND LONG-LIVED ASSETS [Abstract]
Changes in carrying amount of goodwill	The carrying amount of goodwill at September 30, 2016 and 2015 is as follows: Gross Goodwill Balance Accumulated Impairment Losses Net Goodwill Balance Balance as of January 1, 2016 $ 108,417 $ (93,881 ) $ 14,536 Adjustments - - - Balance as of September 30, 2016 $ 108,417 $ (93,881 ) $ 14,536 Gross Goodwill Balance Accumulated Impairment Losses Net Goodwill Balance Balance as of January 1, 2015 $ 115,872 $ (93,665 ) $ 22,207 Adjustments - (216 ) (216 ) Balance as of September 30, 2015 $ 115,872 $ (93,881 ) $ 21,991
Summary of finite-lived intangible assets	Intangible assets, which are included in other assets, net in the accompanying Condensed Consolidated Balance Sheets, consist of the following: Trade Name Curriculum Total Gross carrying amount at December 31, 2015 $ 310 $ 160 $ 470 Adjustments - - - Gross carrying amount at September 30, 2016 310 160 470 Accumulated amortization at December 31, 2015 308 112 420 Amortization 2 11 13 Accumulated amortization at September 30, 2016 310 123 433 Net carrying amount at September 30, 2016 $ - $ 37 $ 37 Weighted average amortization period (years) 7 10
Summary of estimated future amortization expense	The following table summarizes the estimated future amortization expense: Year Ending December 31, Remainder of 2016 $ 4 2017 16 2018 17 $ 37

LONG-TERM DEBT AND LEASE OBLI24

LONG-TERM DEBT AND LEASE OBLIGATIONS (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2016 December 31, 2015 Term loan (a) $ 41,734 $ 42,124 Finance obligation (b) 1,678 9,672 Capital lease-property (with a rate of 8.0%) (c) - 3,899 43,412 55,695 Less current maturities (11,678 ) (10,114 ) $ 31,734 $ 45,581 (a) A portion of the proceeds of the Term Loan was used by the Company to (i) repay approximately $6.3 million in outstanding principal, accrued interest and fees due under the previously existing revolving credit facility, (ii) fund the $20.3 million cash collateral account securing the portion of the Term Loan provided by Alostar, (iii) fund approximately $7.4 million in a cash collateral account securing the letters of credit issued under the previously existing revolving credit facility that remain outstanding after the termination of that facility and (iv) pay transaction expenses in connection with the Term Loan and the termination of the previously existing revolving credit facility. The remaining proceeds of the Term Loan of approximately $11 million may be used by the Company to finance capital expenditures and for general corporate purposes consistent with the terms of the Credit Agreement. Interest will accrue on the Term Loan at a per annum rate equal to the greater of (i) 11% or (ii) 90-day LIBOR plus 9% determined monthly by the Agent and will be payable monthly in arrears. The principal balance of the Term Loan will be repaid in equal monthly installments, commencing on August 1, 2017, determined as the quotient of (i) 10% of the outstanding principal balance of the Term Loan as of July 2, 2017 divided by (ii) 12. A final installment of principal and all accrued and unpaid interest will be due on the maturity date of the Term Loan. The Term Loan may be prepaid, in whole or in part, at any time, subject to the payment of a prepayment premium equal to (i) 5% of the principal amount prepaid at any time up to but not including the second anniversary of the Closing Date and (ii) 3% of the principal amount prepaid at any time commencing on the second anniversary of the Closing Date up to but not including the third anniversary of the Closing Date. In the event of any sale or other disposition of a school or real property by the Company permitted under the Term Loan, the net proceeds of such sale or disposition must be used to prepay the Loan in an amount determined pursuant to the Credit Agreement, subject to the applicable prepayment premium; provided, however, that no prepayment premium will be due with respect to up to $15 million of aggregate repayments of the Term Loan made during the first year that the Term Loan is outstanding. A portion of the net cash proceeds of any disposition of a school in an amount determined pursuant to the terms of the Term Loan, must be deposited and held as cash collateral in a deposit account controlled by the Agent until the conditions for release set forth in the Term Loan are satisfied. In connection with the assets which are currently classified as held for sale and are expected to be sold within one year, the Company is required to classify $10 million as short term debt due to the Term Loan prepayment minimum required with respect to any such disposition. The Term Loan contains customary representations, warranties and covenants such as minimum financial responsibility composite score, cohort default rate, and other financial covenants, including minimum liquidity, maximum capital expenditures, maximum 90/10 ratio and minimum EBITDA (as defined in the Term Loan), as well as affirmative and negative covenants and events of default customary for facilities of this type. The Company was in compliance with all covenants as of September 30, 2016. Subsequent to the 2015 fiscal year end, pursuant to the Second Amendment, the financial covenants were adjusted and, at the Company’s election, will be adjusted for fiscal year 2017 and for each subsequent fiscal year until the maturity of the Term Loan at either the levels applicable to fiscal year 2016 (and each fiscal quarter thereof) contained in the Credit Agreement as of the Closing Date or the levels applicable to fiscal year 2016 (and each fiscal quarter thereof) contained in the Second Amendment. In the event that the Company elects to re-set the financial covenants at the 2016 covenant levels contained in the Second Amendment, the Company will be required to prepay on or before January 15, 2017, without prepayment penalty, amounts outstanding under the Term Loan up to $4 million. The Credit Agreement contains events of default, the occurrence and continuation of which provide the Company’s lenders with the right to exercise remedies against the Company and the collateral securing the Term Loan, including the Company’s cash. These events of default include, among other things, the Company’s failure to pay any amounts due under the Term Loan, a breach of covenants under the Credit Agreement, the Company’s insolvency and the insolvency of its subsidiaries, the occurrence of a material adverse event, the occurrence of any default under certain other indebtedness, and a final judgment against the Company in an amount greater than $1 million. Also, in connection with the Term Loan, the Company paid to the Agent a commitment fee of $1 million on the Closing Date and is required to pay to the Agent other customary fees for facilities of this type. Total fees for the Term Loan were $2.8 million during fiscal year 2015. During the first quarter of 2016, in connection with the effectiveness of the Second Amendment, the Company paid loan modification fees of $0.5 million. These deferred finance fees are netted against the Term Loan on the Condensed Consolidated Balance Sheets and amortized to interest expense on the Condensed Consolidated Statement of Operations. As of September 30, 2016 and December 31, 2015, the Company had $44.3 million and $44.7 million outstanding under the Term Loan; offset by $2.5 million and $2.5 million of deferred finance fees, respectively. (b) The Company completed a sale and a leaseback of four facilities on December 28, 2001. The Company retained a continuing involvement in the lease and, as a result, the Company was prohibited from utilizing sale-leaseback accounting. Accordingly, the Company had treated this transaction as a finance lease. In January 2016, the lease was amended to cure certain provisions related to continuing involvement and, as a consequence, achieved sales treatment. In the first quarter of 2016, the lease was converted to an operating lease and rent payments are included in educational, services and facilities expense in the Condensed Consolidated Statement of Operations. In addition, the finance obligation, net of land and buildings, is being amortized straight-line through December 31, 2016. (c) In 2009, the Company assumed a real estate capital lease for a property located in Fern Park, Florida having a term continuing through October 31, 2032. approved a plan to cease operations of its school located at the In connection with the closure of the Fern Park, Florida school, on February 12, 2016, the Company paid a $2.8 million lease termination fee to the landlord of the Fern Park, Florida property in connection with the amendment and early termination of the 2009 lease agreement. The amended lease agreement subsequently expired on April 10, 2016. (d) On April 12, 2016, the Company entered into a credit agreement (the “L/C Agreement”) with Sterling National Bank (“Sterling” under which Sterling has agreed to issue letters of credit from time to time at 100% margin against available funds in a cash collateral account maintained by the Company at Sterling. The maximum availability under the L/C Agreement is $9.5 million. The Company will pay Sterling a letter of credit fee equal to 1.75% on the daily amount available to be drawn under each outstanding letter of credit, which fee is payable in quarterly installments in arrears. The L/C Agreement matures on April 1, 2017 and replaces a letter of credit facility with a prior lender. The L/C Agreement contains representations, warranties, affirmative and negative covenants and events of default customary for facilities of this type. As of September 30, 2016 the Company has $5.5 million of letters of credit outstanding under the L/C Agreement.
Scheduled maturities of long-term debt and lease obligations	Scheduled maturities of long-term debt and lease obligations at September 30, 2016 are as follows: Year ending December 31, 2016 $ 10,000 2017 3,173 2018 3,462 2019 27,632 $ 44,267

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2015 450,494 $ 3.69 Granted 1,105,487 1.67 Canceled (26,200 ) 5.63 Vested (244,029 ) 3.05 Nonvested restricted stock outstanding at September 30, 2016 1,285,752 2.03
Summary of transactions pertaining to option plans	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, 2015 246,167 $ 12.52 3.98 years $ - Canceled (21,500 ) 15.63 - Outstanding at September 30, 2016 224,667 12.23 3.48 years - Vested or expected to vest 224,667 12.23 3.48 years - Exercisable as of September 30, 2016 224,667 12.23 3.48 years -
Summary of options outstanding	The following table presents a summary of stock options outstanding: At September 30, 2016 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-$13.99 165,167 3.60 $ 9.46 165,167 $ 9.46 $ 14.00-$19.99 28,500 2.40 19.12 28,500 19.12 $ 20.00-$25.00 31,000 3.85 20.62 31,000 20.62 224,667 3.48 12.23 224,667 12.23

SEGMENTS (Tables)

SEGMENTS (Tables)	9 Months Ended
	Sep. 30, 2016
SEGMENTS [Abstract]
Summary financial information by reporting segment	Summary financial information by reporting segment is as follows: For the Three Months Ended September 30, Revenue Operating Income (Loss) 2016 % of Total 2015 % of Total 2016 2015 Transportation and Skilled Trades $ 47,939 96.3 % $ 49,697 92.0 % $ 6,122 $ 10,588 Transitional 1,864 3.7 % 4,336 8.0 % (1,359 ) (1,312 ) Corporate - 0.0 % - 0.0 % (3,720 ) (3,404 ) Total $ 49,803 100.0 % $ 54,033 100.0 % $ 1,043 $ 5,872 For the Nine Months Ended September 30, Revenue Operating (Loss) Income 2016 % of Total 2015 % of Total 2016 2015 Transportation and Skilled Trades $ 131,242 94.8 % $ 136,988 91.0 % $ 11,920 $ 18,333 Transitional 7,202 5.2 % 13,581 9.0 % (5,579 ) (4,916 ) Corporate - 0.0 % - 0.0 % (14,568 ) (16,610 ) Total $ 138,444 100.0 % $ 150,569 100.0 % $ (8,227 ) $ (3,193 ) Total Assets September 30, 2016 December 31, 2015 Transportation and Skilled Trades $ 87,056 $ 90,045 Transitional 1,298 2,448 Corporate 53,743 69,999 Discontinued Operations 48,297 45,258 Total $ 190,394 $ 207,750

FAIR VALUE (Tables)

FAIR VALUE (Tables)	9 Months Ended
	Sep. 30, 2016
FAIR VALUE [Abstract]
Fair value, by balance sheet grouping	The carrying amount and estimated fair value of the Company’s financial instruments, assets and liabilities, which are not measured at fair value on the Condensed Consolidated Balance Sheets, are listed in the table below: At September 30, 2016 Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Financial Assets: Cash and cash equivalents $ 19,240 $ 19,240 $ - $ - $ 19,240 Restricted cash 6,282 6,282 - - 6,282 Prepaid expenses and other current assets 2,181 - 2,181 - 2,181 Noncurrent restricted cash 20,281 20,281 - - 20,281 Financial Liabilities: Accrued expenses $ 11,828 $ - $ 11,828 $ - $ 11,828 Other short term liabilities 157 - 157 - 157 Term loan 41,734 - 38,517 - 38,517

SUMMARY OF SIGNIFICANT ACCOUN28

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions	Nov. 30, 2015School	Nov. 03, 2015School	Sep. 30, 2016USD ($)SchoolSegment
Business Activities [Abstract]
Number of schools			30
Number of states in which schools operate across the United States			15
Number of campuses treated as destination schools			5
Number of reportable segments | Segment			3
Liquidity [Abstract]
Cash and cash equivalents | $			$ 45.8
Restricted cash | $			26.6
Net, assets held for sale | $			32
Amount required to pay down debt | $			$ 10
Healthcare and Other Professions Business Segment [Member]
Business Activities [Abstract]
Number of schools	18	18
Number of schools approved to divest	17	17

WEIGHTED AVERAGE COMMON SHARE29

WEIGHTED AVERAGE COMMON SHARES (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Shares used to compute basic and diluted loss income per share [Abstract]
Basic shares outstanding (in shares)	23,498,904	23,230,438	23,433,015	23,140,006
Dilutive effect of stock options (in shares)	1,181,073	39,197	0	0
Diluted shares outstanding (in shares)	24,679,977	23,269,635	23,433,015	23,140,006
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)			668,307	47,015
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)	224,667	540,567	224,667	540,567
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)	998,827	152,837	998,827	152,837

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details) $ in Thousands	Jul. 01, 2016USD ($)	Nov. 30, 2015School	Nov. 03, 2015School	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)School	Sep. 30, 2015USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of schools | School						30
Result of discontinued operations [Abstract]
Revenue				$ 24,464	$ 25,013	$ 74,547	$ 77,590
Loss before income tax				(1,733)	(1,374)	(1,978)	(4,271)
Income tax benefit				0	0	0	0
Net loss from discontinued operations				$ (1,733)	$ (1,374)	$ (1,978)	$ (4,271)
West Palm Beach Property [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash purchase price	$ 15,900
Healthcare and Other Professions Business Segment [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of schools approved to divest | School		17	17
Number of schools | School		18	18

GOODWILL AND LONG-LIVED ASSET31

GOODWILL AND LONG-LIVED ASSETS (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)Unit	Sep. 30, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
GOODWILL AND LONG-LIVED ASSETS [Abstract]
Number of reporting units impaired | Unit				1
Impairment of long-lived assets	$ 0	$ 0	$ 0	$ 0
Changes in carrying amount of goodwill [Abstract]
Gross Goodwill Balance		115,872		115,872	$ 108,417	$ 108,417	$ 115,872
Accumulated Impairment Losses		(93,881)		(93,881)	(93,881)	(93,881)	(93,665)
Adjustments			0	(216)
Net Goodwill Balance		21,991		21,991	14,536	$ 14,536	$ 22,207
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount, beginning balance			470
Adjustments			0
Gross carrying amount, ending balance	470		470
Accumulated amortization, beginning balance			420
Amortization			13
Accumulated amortization, ending balance	433		433
Net carrying amount	37		37
Amortization of intangible assets			13
Estimated future amortization expense [Abstract]
Remainder of 2016					4
2,017					16
2,018					17
Total	37		37		37
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization	100	100	100	100
Amortization of intangible assets	100	$ 100	100	$ 100
Trade Name [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount, beginning balance			310
Adjustments			0
Gross carrying amount, ending balance	310		310
Accumulated amortization, beginning balance			308
Amortization			2
Accumulated amortization, ending balance	310		310
Net carrying amount	0		$ 0
Weighted average amortization period			7 years
Amortization of intangible assets			$ 2
Estimated future amortization expense [Abstract]
Total	0		0		0
Curriculum [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount, beginning balance			160
Adjustments			0
Gross carrying amount, ending balance	160		160
Accumulated amortization, beginning balance			112
Amortization			11
Accumulated amortization, ending balance	123		123
Net carrying amount	37		$ 37
Weighted average amortization period			10 years
Amortization of intangible assets			$ 11
Estimated future amortization expense [Abstract]
Total	$ 37		$ 37		$ 37

LONG-TERM DEBT AND LEASE OBLI32

LONG-TERM DEBT AND LEASE OBLIGATIONS (Details)		Apr. 12, 2016USD ($)	Feb. 29, 2016USD ($)	Feb. 12, 2016USD ($)	Jul. 31, 2015USD ($)	Sep. 30, 2016USD ($)Lender	Dec. 31, 2015USD ($)
Long-term debt and lease obligations [Abstract]
Long-term line of credit						$ 44,300,000	$ 44,700,000
Long term debt and capital lease obligations						43,412,000	55,695,000
Less current maturities						(11,678,000)	(10,114,000)
Long-term debt and lease obligations						$ 31,734,000	45,581,000
Interest rate of debt instrument						11.00%
Percentage of outstanding principal balance of loan						10.00%
Percentage of principal amount prepaid but not including in the second anniversary						5.00%
Percentage of principal amount prepaid but not including in the third anniversary						3.00%
Deferred finance fee, offset						$ 2,500,000	2,500,000
Sale and a leaseback of several facilities, Date						December 28, 2001
Scheduled maturities of long-term debt and lease obligations [Abstract]
2,016						$ 10,000,000
2,017						3,173,000
2,018						3,462,000
2,019						27,632,000
Long term debt and capital lease obligations						$ 44,267,000
Fern Park [Member]
Long-term debt and lease obligations [Abstract]
Lease termination fee				$ 2,800,000
90-day LIBOR [Member]
Long-term debt and lease obligations [Abstract]
Debt instrument, basis spread on variable rate						9.00%
Credit Agreement [Member]
Long-term debt and lease obligations [Abstract]
Number of lenders | Lender						3
Revolving Credit Facility [Member]
Long-term debt and lease obligations [Abstract]
Expiration date of credit facility						Apr. 5, 2016
Repayment of outstanding principal, accrued interest and fees					$ 6,300,000
Proceeds for remaining loan amount					11,000,000
Revolving Credit Facility [Member] | Bank of America and Other Lenders [Member]
Long-term debt and lease obligations [Abstract]
Long-term line of credit					20,000,000
Letter of Credit [Member]
Long-term debt and lease obligations [Abstract]
Cash collateral amount					7,400,000
Expiration date of credit facility		Apr. 1, 2017
Percentage of margin against available funds in cash collateral account		100.00%
Maximum availability under the facility		$ 9,500,000
Letter of credit fee percentage		1.75%
Letters of credit outstanding						$ 5.5
Term Loan Agreement [Member]
Long-term debt and lease obligations [Abstract]
Long-term line of credit	[1]					$ 41,734,000	42,124,000
Outstanding term loan			$ 45,000,000		45,000,000
Expiration date of credit facility						Jul. 31, 2019
Short-term debt						$ 10,000,000
Term loan maximum amount required for repayment			4,000,000
Judgment amount to cause breach of covenant						1,000,000
Commitment fee						1,000,000
Amount of fees for term loan						500,000	2,800,000
Term Loan A [Member]
Long-term debt and lease obligations [Abstract]
Outstanding term loan			25,000,000
Term Loan A [Member] | HPF Holdco, LLC, Rushing Creek 4, LLC and Tiger Capital Group, LLC [Member]
Long-term debt and lease obligations [Abstract]
Outstanding term loan					30,000,000
Term Loan A [Member] | Alostar Bank of Commerce [Member]
Long-term debt and lease obligations [Abstract]
Term loan principal repayment					5,000,000
Term Loan B [Member]
Long-term debt and lease obligations [Abstract]
Outstanding term loan			20,000,000
Cash collateral amount			$ 20,300,000
Term Loan B [Member] | Alostar Bank of Commerce [Member]
Long-term debt and lease obligations [Abstract]
Outstanding term loan					15,000,000
Cash collateral amount					15,300,000
Outstanding term loan additional amount					$ 5,000,000
Maximum [Member] | Term Loan Agreement [Member]
Long-term debt and lease obligations [Abstract]
Aggregate repayments of the Loan						15,000,000
Finance Obligation [Member]
Long-term debt and lease obligations [Abstract]
Finance obligation	[2]					1,678,000	9,672,000
Capital Lease-Property (rate of 8.0%) [Member]
Long-term debt and lease obligations [Abstract]
Finance obligation	[3]					$ 0	$ 3,899,000
Interest rate of debt instrument						8.00%
[1]	On July 31, 2015, the Company entered into a credit agreement with three lenders, Alostar Bank of Commerce ("Alostar"), HPF Holdco, LLC and Rushing Creek 4, LLC, led by HPF Service, LLC, as administrative agent and collateral agent (the "Agent"), for an aggregate principal amount of $45 million (the "Term Loan"). The July 31, 2015 credit agreement, along with subsequent amendments to the Credit Agreement dated December 31, 2015 and February 29, 2016, are collectively referred to as the "Credit Agreement." As of December 31, 2015 and prior to the effectiveness of a second amendment to the Credit Agreement on February 29, 2016 (the "Second Amendment"), the Term Loan consisted of a $30 million term loan (the "Term Loan A") from HPF Holdco, LLC, Rushing Creek 4, LLC and Tiger Capital Group, LLC, secured by a first priority lien in favor of the Agent on substantially all of the real and personal property owned by the Company, and a $15 million term loan (the "Term Loan B") from Alostar secured by a $15.3 million cash collateral account. Pursuant to the Second Amendment, the Company received an additional $5 million term loan from Alostar with which the Company repaid $5 million of the principal amount of the Term Loan A. Accordingly, upon the effectiveness of the Second Amendment, the aggregate term loans outstanding under the Credit Agreement remained at approximately $45 million, consisting of an approximate $25 million Term Loan A and a $20 million Term Loan B. In addition, pursuant to the Second Amendment, the amount of cash collateral securing the Term Loan B was increased to $20.3 million. At the Company's request, a percentage of the cash collateral may be released to the Company at the Agent's sole discretion and with the consent of Alostar upon the satisfaction of certain criteria as outlined in the Credit Agreement. The Term Loan, which matures on July 31, 2019, replaced a previously existing $20 million revolving credit facility with Bank of America, N.A. and other lenders, which was due to expire on April 5, 2016. The previously existing revolving credit facility was terminated concurrently with the effective date of the Credit Agreement on July 31, 2015 (the "Closing Date"). A portion of the proceeds of the Term Loan was used by the Company to (i) repay approximately $6.3 million in outstanding principal, accrued interest and fees due under the previously existing revolving credit facility, (ii) fund the $20.3 million cash collateral account securing the portion of the Term Loan provided by Alostar, (iii) fund approximately $7.4 million in a cash collateral account securing the letters of credit issued under the previously existing revolving credit facility that remain outstanding after the termination of that facility and (iv) pay transaction expenses in connection with the Term Loan and the termination of the previously existing revolving credit facility. The remaining proceeds of the Term Loan of approximately $11 million may be used by the Company to finance capital expenditures and for general corporate purposes consistent with the terms of the Credit Agreement. Interest will accrue on the Term Loan at a per annum rate equal to the greater of (i) 11% or (ii) 90-day LIBOR plus 9% determined monthly by the Agent and will be payable monthly in arrears. The principal balance of the Term Loan will be repaid in equal monthly installments, commencing on August 1, 2017, determined as the quotient of (i) 10% of the outstanding principal balance of the Term Loan as of July 2, 2017 divided by (ii) 12. A final installment of principal and all accrued and unpaid interest will be due on the maturity date of the Term Loan. The Term Loan may be prepaid, in whole or in part, at any time, subject to the payment of a prepayment premium equal to (i) 5% of the principal amount prepaid at any time up to but not including the second anniversary of the Closing Date and (ii) 3% of the principal amount prepaid at any time commencing on the second anniversary of the Closing Date up to but not including the third anniversary of the Closing Date. In the event of any sale or other disposition of a school or real property by the Company permitted under the Term Loan, the net proceeds of such sale or disposition must be used to prepay the Loan in an amount determined pursuant to the Credit Agreement, subject to the applicable prepayment premium; provided, however, that no prepayment premium will be due with respect to up to $15 million of aggregate repayments of the Term Loan made during the first year that the Term Loan is outstanding. A portion of the net cash proceeds of any disposition of a school in an amount determined pursuant to the terms of the Term Loan, must be deposited and held as cash collateral in a deposit account controlled by the Agent until the conditions for release set forth in the Term Loan are satisfied. In connection with the assets which are currently classified as held for sale and are expected to be sold within one year, the Company is required to classify $10 million as short term debt due to the Term Loan prepayment minimum required with respect to any such disposition. The Term Loan contains customary representations, warranties and covenants such as minimum financial responsibility composite score, cohort default rate, and other financial covenants, including minimum liquidity, maximum capital expenditures, maximum 90/10 ratio and minimum EBITDA (as defined in the Term Loan), as well as affirmative and negative covenants and events of default customary for facilities of this type. The Company was in compliance with all covenants as of September 30, 2016. Subsequent to the 2015 fiscal year end, pursuant to the Second Amendment, the financial covenants were adjusted and, at the Company's election, will be adjusted for fiscal year 2017 and for each subsequent fiscal year until the maturity of the Term Loan at either the levels applicable to fiscal year 2016 (and each fiscal quarter thereof) contained in the Credit Agreement as of the Closing Date or the levels applicable to fiscal year 2016 (and each fiscal quarter thereof) contained in the Second Amendment. In the event that the Company elects to re-set the financial covenants at the 2016 covenant levels contained in the Second Amendment, the Company will be required to prepay on or before January 15, 2017, without prepayment penalty, amounts outstanding under the Term Loan up to $4 million. The Credit Agreement contains events of default, the occurrence and continuation of which provide the Company's lenders with the right to exercise remedies against the Company and the collateral securing the Term Loan, including the Company's cash. These events of default include, among other things, the Company's failure to pay any amounts due under the Term Loan, a breach of covenants under the Credit Agreement, the Company's insolvency and the insolvency of its subsidiaries, the occurrence of a material adverse event, the occurrence of any default under certain other indebtedness, and a final judgment against the Company in an amount greater than $1 million. Also, in connection with the Term Loan, the Company paid to the Agent a commitment fee of $1 million on the Closing Date and is required to pay to the Agent other customary fees for facilities of this type. Total fees for the Term Loan were $2.8 million during fiscal year 2015. During the first quarter of 2016, in connection with the effectiveness of the Second Amendment, the Company paid loan modification fees of $0.5 million. These deferred finance fees are netted against the Term Loan on the Condensed Consolidated Balance Sheet and amortized to interest expense on the Condensed Consolidated Statement of Operations. As of September 30, 2016 and December 31, 2015, the Company had $44.3 million and $44.7 million outstanding under the Term Loan; offset by $2.5 million and $2.5 million of deferred finance fees, respectively.
[2]	The Company completed a sale and a leaseback of several facilities on December 28, 2001. The Company retained a continuing involvement in the lease and, as a result, it is prohibited from utilizing sale-leaseback accounting. Accordingly, the Company had treated this transaction as a finance lease. In January 2016, the lease was amended to cure certain provisions related to continuing involvement and, as a consequence, achieved sales treatment. In the first quarter of 2016, the lease was converted to an operating lease and rent payments are included in educational, services and facilities expense in the Condensed Consolidated Statement of Operations. In addition, the finance obligation, net of land and buildings, is being amortized straight-line through December 31, 2016.
[3]	In 2009, the Company assumed a real estate capital lease for a property located in Fern Park, Florida having a term continuing through October 31, 2032. On February 27, 2015, the Company's Board of Directors approved a plan to cease operations of its school located at the Fern Park, Florida property, which school closed in the first quarter of 2016. In connection with the closure of the Fern Park, Florida school, on February 12, 2016, the Company paid a $2.8 million lease termination fee to the landlord of the Fern Park, Florida property in connection with the amendment and early termination of the 2009 lease agreement. The amended lease agreement subsequently expired on April 10, 2016.

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) $ / shares in Units, $ in Thousands	May 13, 2016	Sep. 30, 2016USD ($)$ / sharesshares	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)Plan$ / sharesshares	Sep. 30, 2015USD ($)shares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock incentive plans | Plan				2
Vesting period of performance-based shares	2 years						3 years	4 years
Specified operating income margin period							1 year	1 year
Shares [Abstract]
Outstanding, beginning balance (in shares) | shares				246,167
Canceled (in shares) | shares				(21,500)
Outstanding, ending balance (in shares) | shares		224,667		224,667		246,167
Vested or expected to vest (in shares) | shares		224,667		224,667
Exercisable, ending balance (in shares) | shares		224,667		224,667
Weighted Average Exercise Price Per Share [Abstract]
Outstanding, beginning balance (in dollars per share)				$ 12.52
Cancelled (in dollars per share)				15.63
Outstanding, ending balance (in dollars per share)		$ 12.23		12.23		$ 12.52
Vested or expected to vest (in dollars per share)		12.23		12.23
Exercisable, ending balance (in dollars per share)		$ 12.23		$ 12.23
Weighted Average Remaining Contractual Term [Abstract]
Outstanding				3 years 5 months 23 days		3 years 11 months 23 days
Vested or expected to vest				3 years 5 months 23 days
Exercisable				3 years 5 months 23 days
Aggregate Intrinsic Value [Abstract]
Outstanding, beginning balance | $				$ 0
Canceled | $				0
Outstanding, ending balance | $		$ 0		0		$ 0
Vested or expected to vest | $		0		0
Exercisable, ending balance | $		$ 0		$ 0
Stock Options Outstanding [Abstract]
Shares (in shares) | shares		224,667		224,667
Contractual Weighted Average Life				3 years 5 months 23 days
Weighted Average Price (in dollars per share)		$ 12.23		$ 12.23
Stock Options Exercisable [Abstract]
Shares (in shares) | shares		224,667		224,667
Weighted Exercise Price (in dollars per share)		$ 12.23		$ 12.23
Stock Options [Member]
Aggregate Intrinsic Value [Abstract]
Unrecognized pre-tax compensation expense | $		$ 0		$ 0
Restricted Stock [Member]
Shares [Abstract]
Nonvested restricted stock outstanding, beginning balance (in shares) | shares				450,494
Granted (in shares) | shares				1,105,487
Canceled (in shares) | shares				(26,200)
Vested (in shares) | shares				(244,029)
Nonvested restricted stock outstanding, ending balance (in shares) | shares		1,285,752		1,285,752		450,494
Weighted Average Grant Date Fair Value [Abstract]
Nonvested restricted stock outstanding, beginning balance (in dollars per share)				$ 3.69
Granted (in dollars per share)				1.67
Canceled (in dollars per share)				5.63
Vested (in dollars per share)				3.05
Nonvested restricted stock outstanding, ending balance (in dollars per share)		$ 2.03		$ 2.03		$ 3.69
Recognized restricted stock expense | $		$ 400	$ 100	$ 1,100	$ 900
Unrecognized restricted stock expense | $		1,900		$ 1,900		$ 1,300
LTIP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net share settlement for restricted stock (in shares) | shares				38,389	49,075
Decrease in equity due to payment of tax for employee | $		100	$ 100	$ 100	$ 100
LTIP [Member] | Restricted Stock [Member]
Weighted Average Grant Date Fair Value [Abstract]
Outstanding restricted shares, intrinsic value | $		$ 2,800		$ 2,800
$ 4.00-$13.99 [Member]
Range of Exercise Prices [Abstract]
Range of Exercise Prices, Minimum (in dollars per share)				$ 4
Range of Exercise Prices, Maximum (in dollars per share)				$ 13.99
Stock Options Outstanding [Abstract]
Shares (in shares) | shares		165,167		165,167
Contractual Weighted Average Life				3 years 7 months 6 days
Weighted Average Price (in dollars per share)		$ 9.46		$ 9.46
Stock Options Exercisable [Abstract]
Shares (in shares) | shares		165,167		165,167
Weighted Exercise Price (in dollars per share)		$ 9.46		$ 9.46
$ 14.00-$19.99 [Member]
Range of Exercise Prices [Abstract]
Range of Exercise Prices, Minimum (in dollars per share)				14
Range of Exercise Prices, Maximum (in dollars per share)				$ 19.99
Stock Options Outstanding [Abstract]
Shares (in shares) | shares		28,500		28,500
Contractual Weighted Average Life				2 years 4 months 24 days
Weighted Average Price (in dollars per share)		$ 19.12		$ 19.12
Stock Options Exercisable [Abstract]
Shares (in shares) | shares		28,500		28,500
Weighted Exercise Price (in dollars per share)		$ 19.12		$ 19.12
$ 20.00-$25.00 [Member]
Range of Exercise Prices [Abstract]
Range of Exercise Prices, Minimum (in dollars per share)				20
Range of Exercise Prices, Maximum (in dollars per share)				$ 25
Stock Options Outstanding [Abstract]
Shares (in shares) | shares		31,000		31,000
Contractual Weighted Average Life				3 years 10 months 6 days
Weighted Average Price (in dollars per share)		$ 20.62		$ 20.62
Stock Options Exercisable [Abstract]
Shares (in shares) | shares		31,000		31,000
Weighted Exercise Price (in dollars per share)		$ 20.62		$ 20.62

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
INCOME TAXES [Abstract]
Provision for income taxes	$ 50	$ 50	$ 150	$ 150
Effective income tax rate	3.80%	1.20%	2.00%	2.00%

SEGMENTS (Details)

SEGMENTS (Details) $ in Thousands	Nov. 30, 2015School	Nov. 03, 2015School	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)SchoolSegmentLocation	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
SEGMENTS [Abstract]
Number of locations closed | Location					10
Number of remaining reportable segments | Segment					2
Number of reportable segments | Segment					3
Segment Reporting Information [Line Items]
Number of schools | School					30
Summary financial information by reporting segment [Abstract]
Revenues			$ 49,803	$ 54,033	$ 138,444	$ 150,569
Percentage of Total Revenue			100.00%	100.00%	100.00%	100.00%
Operating (Loss) Income			$ 1,043	$ 5,872	$ (8,227)	$ (3,193)
Assets			190,394		190,394		$ 207,750
Healthcare and Other Professions Business Segment [Member]
Segment Reporting Information [Line Items]
Number of schools approved to divest | School	17	17
Number of schools | School	18	18
Discontinued Operations [Member]
Summary financial information by reporting segment [Abstract]
Assets			48,297		48,297		45,258
Reportable Segments [Member] | Transportation and Skilled Trades [Member]
Summary financial information by reporting segment [Abstract]
Revenues			$ 47,939	$ 49,697	$ 131,242	$ 136,988
Percentage of Total Revenue			96.30%	92.00%	94.80%	91.00%
Operating (Loss) Income			$ 6,122	$ 10,588	$ 11,920	$ 18,333
Assets			87,056		87,056		90,045
Reportable Segments [Member] | Transitional [Member]
Summary financial information by reporting segment [Abstract]
Revenues			$ 1,864	$ 4,336	$ 7,202	$ 13,581
Percentage of Total Revenue			3.70%	8.00%	5.20%	9.00%
Operating (Loss) Income			$ (1,359)	$ (1,312)	$ (5,579)	$ (4,916)
Assets			1,298		1,298		2,448
Corporate [Member]
Summary financial information by reporting segment [Abstract]
Revenues			$ 0	$ 0	$ 0	$ 0
Percentage of Total Revenue			0.00%	0.00%	0.00%	0.00%
Operating (Loss) Income			$ (3,720)	$ (3,404)	$ (14,568)	$ (16,610)
Assets			$ 53,743		$ 53,743		$ 69,999

FAIR VALUE (Details)

FAIR VALUE (Details) $ in Thousands	Sep. 30, 2016USD ($)
Carrying Amount [Member]
Financial Assets [Abstract]
Cash and cash equivalents	$ 19,240
Restricted cash	6,282
Prepaid expenses and other current assets	2,181
Noncurrent restricted cash	20,281
Financial Liabilities [Abstract]
Accrued expenses	11,828
Other short-term liabilities	157
Term loan	41,734
Fair Value [Member]
Financial Assets [Abstract]
Cash and cash equivalents	19,240
Restricted cash	6,282
Prepaid expenses and other current assets	2,181
Noncurrent restricted cash	20,281
Financial Liabilities [Abstract]
Accrued expenses	11,828
Other short-term liabilities	157
Term loan	38,517
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member]
Financial Assets [Abstract]
Cash and cash equivalents	19,240
Restricted cash	6,282
Prepaid expenses and other current assets	0
Noncurrent restricted cash	20,281
Financial Liabilities [Abstract]
Accrued expenses	0
Other short-term liabilities	0
Term loan	0
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member]
Financial Assets [Abstract]
Cash and cash equivalents	0
Restricted cash	0
Prepaid expenses and other current assets	2,181
Noncurrent restricted cash	0
Financial Liabilities [Abstract]
Accrued expenses	11,828
Other short-term liabilities	157
Term loan	38,517
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member]
Financial Assets [Abstract]
Cash and cash equivalents	0
Restricted cash	0
Prepaid expenses and other current assets	0
Noncurrent restricted cash	0
Financial Liabilities [Abstract]
Accrued expenses	0
Other short-term liabilities	0
Term loan	$ 0