XML 83 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Information
 12 Months Ended
Aug. 31, 2012
Segment Information [Abstract]  
Segment Information

17.   SEGMENT INFORMATION

 

Operating 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 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 earnings before interest, taxes, depreciation, and amortization (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, 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 segment information to reflect new reporting responsibilities within the organization.  During the fourth quarter of fiscal 2010, we sold the products division of our wholly owned subsidiary in Japan (Note 13).  We determined that the operating results of the Japan products division should be presented as discontinued operations and we have excluded the operating results of this discontinued operation from the following table.  All prior period segment information has been revised to conform to the most recent classifications and organizational changes.  We account for our segment information on the same basis as the accompanying consolidated financial statements. 

 

 

ENTERPRISE INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales to

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year Ended

 

External

 

 

 

Adjusted

 

 

 

 

 

 

Segment

 

Capital

August 31, 2012

 

Customers

 

Gross Profit

 

EBITDA

 

Depreciation

 

Amortization

 

 

Assets

 

Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

August 31, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S./Canada

$
98,344 

$
60,367 

$
7,956 

$
1,825 

$
3,746 

 

$
74,527 

$
1,966 

International

 
35,309 

 
27,148 

 
10,456 

 
352 

 
14 

 

 
13,205 

 
86 

Total

 
133,653 

 
87,515 

 
18,412 

 
2,177 

 
3,760 

 

 
87,732 

 
2,052 

Corporate and eliminations

 
3,221 

 
1,556 

 
(3,972)

 
1,492 

 

 -

 

 
61,273 

 
60 

Consolidated

$
136,874 

$
89,071 

$
14,440 

$
3,669 

$
3,760 

 

$
149,005 

$
2,112 

 

Capital expenditures in the U.S./Canada segment include $2.1 million, $3.1 million, and $0.7 million of spending on capitalized curriculum during the fiscal years ended August 31, 2012, 2011 and 2010.

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YEAR ENDED

 

 

 

 

 

 

AUGUST 31,

 
2012 

 
2011 

 
2010 

Enterprise Adjusted EBITDA

$
32,018 

$
28,015 

$
18,412 

Corporate expenses

 
(4,962)

 
(6,858)

 
(3,972)

Consolidated Adjusted EBITDA

 
27,056 

 
21,157 

 
14,440 

Share-based compensation

 
(3,835)

 
(2,788)

 
(1,099)

Severance costs

 

 -

 
(150)

 
(920)

Other

 

 -

 

 -

 
(954)

Depreciation

 
(3,142)

 
(3,567)

 
(3,669)

Amortization

 
(2,499)

 
(3,540)

 
(3,760)

Consolidated income from

 

 

 

 

 

 

operations

 
17,580 

 
11,112 

 
4,038 

Interest income

 
18 

 
21 

 
34 

Interest expense

 
(2,482)

 
(2,687)

 
(2,892)

Discount on related party receivable

 
(1,369)

 

 -

 

 -

Income from continuing operations

 

 

 

 

 

 

before income taxes

$
13,747 

$
8,446 

$
1,180 

 

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.

 

Corporate assets, such as cash, accounts receivable, and other assets are not generally allocated for business analysis purposes.  However, inventories, intangible assets, goodwill, identifiable fixed assets, and certain other assets are allocated for analysis purposes.  A reconciliation of enterprise assets to consolidated assets is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUGUST 31,

 
2012 

 
2011 

 
2010 

Reportable unit assets

$
86,823 

$
87,054 

$
87,732 

Corporate assets

 
77,323 

 
64,421 

 
61,323 

Intercompany accounts receivable

 
(66)

 
(48)

 
(50)

 

$
164,080 

$
151,427 

$
149,005 

 

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 products and services in various countries throughout the world.  Our consolidated revenues from continuing operations were derived from the following countries (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YEAR ENDED

 

 

 

 

 

 

AUGUST 31,

 
2012 

 
2011 

 
2010 

United States

$
121,328 

$
115,709 

$
97,286 

Japan

 
19,440 

 
17,263 

 
13,935 

Canada

 
8,574 

 
7,080 

 
6,157 

United Kingdom

 
5,341 

 
5,143 

 
5,751 

Australia

 
3,992 

 
5,058 

 
4,545 

China/Singapore

 
2,512 

 
2,185 

 
1,900 

Mexico/Central America

 
913 

 
837 

 
590 

Indonesia

 
705 

 
610 

 
461 

Thailand

 
693 

 
729 

 
505 

Denmark/Scandanavia

 
660 

 
725 

 
568 

Korea

 
607 

 
861 

 
1,028 

India

 
576 

 
515 

 
422 

Brazil

 
509 

 
567 

 
460 

Malaysia

 
458 

 
429 

 
362 

Others

 
4,148 

 
3,093 

 
2,904 

 

$
170,456 

$
160,804 

$
136,874 

 

During fiscal 2011, we recognized $16.8 million in sales from our 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 2012 and 2010, there were no customers that accounted for more than ten percent of our consolidated revenues.  At August 31, 2012 and 2011 we had $7.6 million and $6.9 million receivable from these government contracts that were included in our consolidated accounts receivable.

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUGUST 31,

 
2012 

 
2011 

 
2010 

United States/Canada

$
98,211 

$
97,455 

$
96,512 

Japan

 
1,359 

 
1,690 

 
1,962 

United Kingdom

 
199 

 
100 

 
145 

Australia

 
116 

 
126 

 
108 

 

$
99,885 

$
99,371 

$
98,727 

 

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