Segment Information

12 Months Ended

Aug. 31, 2014

Segment Information [Abstract]

Segment Information

15.SEGMENT INFORMATION

Enterprise 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 such as adjustments for changes in the fair value of contingent earn out liabilities from previous business acquisitions.

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, 2014		Customers		Gross Profit		EBITDA		Depreciation		Amortization		Assets		Expenditures
U.S./Canada	$	156,537	$	101,214	$	18,990	$	1,704	$	3,869	$	85,847	$	10,008
International		44,701		35,047		19,888		338		85		15,220		401
Total		201,238		136,261		38,878		2,042		3,954		101,067		10,409
Corporate and eliminations		3,927		2,005		(4,458)		1,341		-		104,119		852
Consolidated	$	205,165	$	138,266	$	34,420	$	3,383	$	3,954	$	205,186	$	11,261
Fiscal Year Ended
August 31, 2013
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

Capital expenditures in our U.S./Canada operations include $7.8 million, $2.6 million, and $2.1 million of spending on capitalized curriculum during the fiscal years ended August 31, 2014, 2013, and 2012.

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

YEAR ENDED
AUGUST 31,		2014		2013		2012
Enterprise Adjusted EBITDA	$	38,878	$	36,686	$	32,018
Corporate expenses		(4,458)		(5,284)		(4,962)
Consolidated Adjusted EBITDA		34,420		31,402		27,056
Share-based compensation		(3,534)		(3,589)		(3,835)
Reduction of contingent earn out		1,579		-		-
Impairment of related-party receivable		(363)		-		-
Depreciation		(3,383)		(3,008)		(3,142)
Amortization		(3,954)		(3,191)		(2,499)
Income from operations		24,765		21,614		17,580
Interest income		427		614		18
Interest expense		(2,237)		(2,332)		(2,482)
Discount on related party receivable		(1,196)		(519)		(1,369)
Other, net		-		21		-
Income before income taxes	$	21,759	$	19,398	$	13,747

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.

Geographic 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 were derived from the following countries (in thousands):

YEAR ENDED
AUGUST 31,		2014		2013		2012
United States	$	153,999	$	138,599	$	121,328
Japan		16,652		19,594		19,440
Canada		8,780		9,866		8,574
United Kingdom		6,899		5,428		5,341
Australia		4,623		4,536		3,992
China/Singapore		3,322		2,889		2,512
Mexico/Central America		923		955		913
Thailand		860		860		693
Denmark/Scandanavia		831		693		660
Indonesia		761		778		705
Korea		725		469		607
India		684		559		576
Central/Eastern Europe		697		551		548
Brazil		595		495		509
Middle East		594		472		444
Malaysia		405		427		458
Others		3,815		3,753		3,156
	$	205,165	$	190,924	$	170,456

During the periods presented in this report, there were no customers that accounted for more than ten percent of our consolidated revenues.

At August 31, 2014 and 2013, we had wholly owned direct offices in Australia, Japan, and the United Kingdom.  Our long-lived assets, excluding intangible assets, goodwill, and the long-term portion of the FCOP receivable were held in the following locations for the periods indicated (in thousands):

AUGUST 31,		2014		2013
United States/Canada	$	30,445	$	25,848
Japan		1,351		924
United Kingdom		149		212
Australia		111		69
	$	32,056	$	27,053

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