Segment Information

6 Months Ended

Feb. 25, 2012

Segment Information [Abstract]

Segment Information

NOTE 8 – SEGMENT INFORMATION

Our sales are primarily comprised of training and consulting sales and related products. Based on the consistent nature of our services and products and the types of customers for these services, we function as a single operating segment. However, to improve comparability with previous periods, operating information for our U.S./Canada, international, and corporate services operations is presented below. Our U.S./Canada operations are responsible for the sale and delivery of our training and consulting services in the United States and Canada. Our international sales group includes the financial results of our directly owned foreign offices and royalty revenues from licensees. Our corporate services information includes leasing income and certain corporate operating expenses.

The Company's chief operating decision maker is the CEO, and the primary measurement tool used in business unit performance analysis is earnings before interest, taxes, depreciation, and amortization (EBITDA), which is a non-GAAP measure and may not be calculated as similarly titled amounts

calculated by other companies. For segment reporting purposes, our consolidated EBITDA can be calculated as our income from operations excluding depreciation and amortization charges.

In the normal course of business, we may make structural and cost allocation revisions to our segment information to reflect new reporting responsibilities within the organization. There were no significant organizational or structural changes during the quarter and two quarters ended February 25, 2012. We account for our segment information on the same basis as the accompanying condensed consolidated financial statements.

ENTERPRISE INFORMATION

(in thousands)

		Sales to
Quarter Ended		External
February 25, 2012		Customers		Gross Profit		EBITDA			Depreciation		Amortization
U.S./Canada	$	27,320	$	16,664	$	2,482		$	450	$	622
International		10,589		8,025		3,941			101		4
Total		37,909		24,689		6,423			551		626
Corporate and eliminations		718		292		(2,156	)		309		-
Consolidated	$	38,627	$	24,981	$	4,267		$	860	$	626
Quarter Ended
February 26, 2011
U.S./Canada	$	25,379	$	15,512	$	1,705		$	417	$	916
International		9,501		7,405		3,357			72		4
Total		34,880		22,917		5,062			489		920
Corporate and eliminations		598		194		(1,866	)		299		-
Consolidated	$	35,478	$	23,111	$	3,196		$	788	$	920
Two Quarters Ended
February 25, 2012
U.S./Canada	$	54,767	$	33,808	$	4,916		$	869	$	1,248
International		21,987		17,131		9,061			191		8
Total		76,754		50,939		13,977			1,060		1,256
Corporate and eliminations		1,413		584		(4,541	)		634		-
Consolidated	$	78,167	$	51,523	$	9,436		$	1,694	$	1,256
Two Quarters Ended
February 26, 2011
U.S./Canada	$	53,549	$	31,904	$	4,776		$	874	$	1,842
International		20,163		15,914		7,697			144		8
Total		73,712		47,818		12,473			1,018		1,850
Corporate and eliminations		1,183		369		(3,990	)		680		-
Consolidated	$	74,895	$	48,187	$	8,483		$	1,698	$	1,850

A reconciliation of operating segment EBITDA to consolidated income before income taxes is provided below (in thousands):

		Quarter Ended						Two Quarters Ended
		February 25,		February 26,				February 25,		February 26,
		2012			2011			2012			2011
Reportable segment EBITDA	$	6,423		$	5,062		$	13,977		$	12,473
Corporate expenses		(2,156	)		(1,866	)		(4,541	)		(3,990	)
Consolidated EBITDA		4,267			3,196			9,436			8,483
Depreciation		(860	)		(788	)		(1,694	)		(1,698	)
Amortization		(626	)		(920	)		(1,256	)		(1,850	)
Income from operations		2,781			1,488			6,486			4,935
Interest income		4			6			7			11
Interest expense		(626	)		(642	)		(1,260	)		(1,351	)
Income before income taxes	$	2,159		$	852		$	5,233		$	3,595