Segment Information

12 Months Ended

Aug. 31, 2013

Segment Information [Abstract]

Segment Information

17.SEGMENT INFORMATION

Operating Segment Information

Our sales are primarily comprised of training and content 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 foreign direct offices and royalty revenues from international 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 earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA), which may not be calculated as similarly titled amounts calculated by other companies.  For enterprise reporting purposes, our consolidated Adjusted EBITDA can be calculated as our income or loss from operations excluding share-based compensation, severance, depreciation expense, amortization expense, and certain other charges.

In the normal course of business, we may make structural and cost allocation revisions to our enterprise information to reflect new reporting responsibilities within the organization.  All prior period enterprise information has been revised to conform to the most recent classifications and organizational changes.  We account for our enterprise information on the same basis as the accompanying consolidated financial statements.

ENTERPRISE INFORMATION

		Sales to
Fiscal Year Ended		External				Adjusted								Capital
August 31, 2013		Customers		Gross Profit		EBITDA		Depreciation		Amortization		Assets		Expenditures
U.S./Canada	$	142,616	$	91,637	$	16,419	$	1,286	$	3,180	$	83,391	$	4,106
International		44,154		35,146		20,267		327		11		13,567		146
Total		186,770		126,783		36,686		1,613		3,191		96,958		4,252
Corporate and eliminations		4,154		2,206		(5,284)		1,395		-		92,447		166
Consolidated	$	190,924	$	128,989	$	31,402	$	3,008	$	3,191	$	189,405	$	4,418
Fiscal Year Ended
August 31, 2012
U.S./Canada	$	125,183	$	78,618	$	15,144	$	1,436	$	2,483	$	74,387	$	3,934
International		42,052		32,616		16,874		365		16		12,436		289
Total		167,235		111,234		32,018		1,801		2,499		86,823		4,223
Corporate and eliminations		3,221		1,449		(4,962)		1,341		-		77,257		507
Consolidated	$	170,456	$	112,683	$	27,056	$	3,142	$	2,499	$	164,080	$	4,730
Fiscal Year Ended
August 31, 2011
U.S./Canada	$	118,420	$	71,782	$	12,947	$	1,722	$	3,525	$	76,152	$	4,020
International		40,011		31,037		15,068		436		15		10,902		938
Total		158,431		102,819		28,015		2,158		3,540		87,054		4,958
Corporate and eliminations		2,373		655		(6,858)		1,409		-		64,373		507
Consolidated	$	160,804	$	103,474	$	21,157	$	3,567	$	3,540	$	151,427	$	5,465

Capital expenditures in our U.S./Canada operations include $2.6million, $2.1million, and $3.1million of spending on capitalized curriculum during the fiscal years ended August 31, 2013, 2012 and 2011.

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

YEAR ENDED
AUGUST 31,		2013		2012		2011
Enterprise Adjusted EBITDA	$	36,686	$	32,018	$	28,015
Corporate expenses		(5,284)		(4,962)		(6,858)
Consolidated Adjusted EBITDA		31,402		27,056		21,157
Share-based compensation		(3,589)		(3,835)		(2,788)
Severance costs		-		-		(150)
Depreciation		(3,008)		(3,142)		(3,567)
Amortization		(3,191)		(2,499)		(3,540)
Income from operations		21,614		17,580		11,112
Interest income		614		18		21
Interest expense		(2,332)		(2,482)		(2,687)
Discount on related party receivable		(519)		(1,369)		-
Other, net		21		-		-
Income before income taxes	$	19,398	$	13,747	$	8,446

Interest expense and interest income are primarily generated at the corporate level and are not allocated.  Income taxes are likewise calculated and paid on a corporate level (except for entities that operate in foreign jurisdictions) and are not allocated for analysis purposes.

Enterprise-Wide Information

Our revenues are derived primarily from the United States.  However, we also operate wholly-owned offices or contract with licensees to provide our services in various countries throughout the world.  Our consolidated revenues from were derived from the following countries (in thousands):

YEAR ENDED
AUGUST 31,		2013		2012		2011
United States	$	138,599	$	121,328	$	115,709
Japan		19,594		19,440		17,263
Canada		9,866		8,574		7,080
United Kingdom		5,428		5,341		5,143
Australia		4,536		3,992		5,058
China/Singapore		2,889		2,512		2,185
Mexico/Central America		955		913		837
Thailand		860		693		729
Indonesia		778		705		610
Denmark/Scandanavia		693		660		725
India		559		576		515
Brazil		495		509		567
Korea		469		607		861
Malaysia		427		458		429
Others		4,776		4,148		3,093
	$	190,924	$	170,456	$	160,804

During fiscal 2011, we recognized $16.8million in sales from contracts with a division of the United States federal government, which was more than ten percent of our consolidated revenues for the year.  In fiscal years 2013 and 2012, there were no customers that accounted for more than ten percent of our consolidated revenues.  At August 31, 2013 and 2012 we had $5.3million and $7.6million receivable from these government contracts that were included in our consolidated accounts receivable.

At August 31, 2013 and 2012, we had wholly owned direct offices in Australia, Japan, and the United Kingdom.  Our long-lived assets, excluding intangible assets and goodwill, were held in the following locations for the periods indicated (in thousands):

AUGUST 31,		2013		2012
United States/Canada	$	30,301	$	29,851
Japan		924		1,342
United Kingdom		212		199
Australia		69		116
	$	31,506	$	31,508

Inter-segment sales were immaterial and were eliminated in consolidation.