INVESTMENT IN AFFILIATES:

3 Months Ended

Sep. 30, 2015

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

INVESTMENT IN AFFILIATES

INVESTMENT IN AFFILIATES:

Empire Education Group, Inc. (EEG)

As of September 30, 2015, the Company's ownership interest in EEG was 54.6% and the carrying amount of the Company's investment in EEG was $13.9 million. During the three months ended September 30, 2015 and 2014, the Company recorded $(0.9) and $0.4 million, respectively, of equity (loss) earnings related to its investment in EEG.

The Company utilized consolidation of variable interest entities guidance to determine whether or not its investment in EEG was a variable interest entity (VIE), and if so, whether the Company was the primary beneficiary of the VIE. The Company concluded EEG was not a VIE based on the fact that EEG had sufficient equity at risk. The Company accounts for EEG as an equity investment under the voting interest model, as the Company has granted the other shareholder of EEG an irrevocable proxy to vote a certain number of the Company’s shares such that the other shareholder of EEG has voting control of 51.0% of EEG’s common stock, as well as the right to appoint four of the five members of EEG’s Board of Directors.

Due to economic, regulatory and other factors, including declines in enrollment, revenue and profitability in the for-profit secondary educational market, the Company may be required to record additional non-cash impairment charges related to its investment in EEG and such non-cash impairments could be material to the Company's consolidated balance sheet and results of operations. The exposure to loss related to the Company's involvement with EEG is the carrying value of this investment.

The table below presents the summarized Statement of Operations information for EEG:

	For the Three Months Ended September 30,
	2015			2014
(Unaudited)	(Dollars in thousands)
Gross revenues	$	35,941		$	40,593
Gross profit	8,437			11,370
Operating (loss) income	(1,471		)	479
Net (loss) income	(1,553		)	442