Segment Information

3 Months Ended

Dec. 01, 2012

Segment Information [Abstract]

Segment Information

NOTE 6 – 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 Adjusted EBITDA, which may not be calculated as similarly titled amounts calculated by other companies.  For segment reporting purposes, our consolidated Adjusted EBITDA can be calculated as our income or loss from operations excluding share-based compensation, depreciation expense, amortization expense, and certain other 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 ended December 1, 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				Adjusted
December 1, 2012		Customers		Gross Profit		EBITDA		Depreciation		Amortization
U.S./Canada	$	30,343	$	18,830	$	2,326	$	267	$	619
International		12,663		10,162		5,917		81		3
Total		43,006		28,992		8,243		348		622
Corporate and eliminations		1,055		567		(1,154)		354		-
Consolidated	$	44,061	$	29,559	$	7,089	$	702	$	622
Quarter Ended
November 26, 2011
U.S./Canada	$	27,446	$	17,145	$	2,434	$	419	$	627
International		11,399		9,106		5,119		90		4
Total		38,845		26,251		7,553		509		631
Corporate and eliminations		695		291		(1,193)		325		-
Consolidated	$	39,540	$	26,542	$	6,360	$	834	$	631

A reconciliation of our U.S./Canada and international Adjusted EBITDA to consolidated income from continuing operations before taxes is provided below (in thousands):

	Quarter Ended
		December 1,		November 26,
		2012		2011
Enterprise Adjusted EBITDA	$	8,243	$	7,553
Corporate expenses		(1,154)		(1,193)
Consolidated Adjusted EBITDA		7,089		6,360
Share-based compensation		(473)		(1,191)
Depreciation		(702)		(834)
Amortization		(622)		(631)
Consolidated income from operations		5,292		3,704
Interest income		137		3
Interest expense		(589)		(633)
Discount on related party receivable		(147)		-
Income before taxes	$	4,693	$	3,074