XML 42 R13.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Segment Information | 9 Months Ended
--- | ---
May 31, 2014
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 Chief Executive Officer, 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 from operations excluding share-based compensation, 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. There were no significant organizational or structural changes during the quarter or three quarters ended May 31, 201 4 that would affect the comparability of the enterprise information presented. We account for our enterprise information on the same basis as the accompanying condensed consolidated financial statements. ENTERPRISE INFORMATION (in thousands)
|  | Sales to |  |  |  |  |  |  |  |
Quarter Ended |  | External |  |  |  | Adjusted |  |  |  |
May 31, 2014 |  | Customers |  | Gross Profit |  | EBITDA |  | Depreciation |  | Amortization
U.S./Canada | $ | 36,318 | $ | 21,924 | $ | 1,950 | $ | 446 | $ | 943
International |  | 9,757 |  | 7,357 |  | 4,015 |  | 88 |  | 40
Total |  | 46,075 |  | 29,281 |  | 5,965 |  | 534 |  | 983
Corporate and eliminations |  | 1,056 |  | 603 |  | (832) |  | 332 |  | -
Consolidated | $ | 47,131 | $ | 29,884 | $ | 5,133 | $ | 866 | $ | 983
Quarter Ended |  |  |  |  |  |  |  |  |  |
June 1, 2013 |  |  |  |  |  |  |  |  |  |
U.S./Canada | $ | 35,198 | $ | 21,958 | $ | 3,651 | $ | 320 | $ | 957
International |  | 8,608 |  | 6,901 |  | 3,801 |  | 79 |  | 3
Total |  | 43,806 |  | 28,859 |  | 7,452 |  | 399 |  | 960
Corporate and eliminations |  | 1,053 |  | 576 |  | (1,190) |  | 353 |  | -
Consolidated | $ | 44,859 | $ | 29,435 | $ | 6,262 | $ | 752 | $ | 960
Three Quarters Ended |  |  |  |  |  |  |  |  |  |
May 31, 2014 |  |  |  |  |  |  |  |  |  |
U.S./Canada | $ | 103,522 | $ | 65,562 | $ | 7,434 | $ | 1,227 | $ | 2,917
International |  | 30,644 |  | 24,279 |  | 13,509 |  | 246 |  | 44
Total |  | 134,166 |  | 89,841 |  | 20,943 |  | 1,473 |  | 2,961
Corporate and eliminations |  | 2,889 |  | 1,484 |  | (3,169) |  | 993 |  | -
Consolidated | $ | 137,055 | $ | 91,325 | $ | 17,774 | $ | 2,466 | $ | 2,961
Three Quarters Ended |  |  |  |  |  |  |  |  |  |
June 1, 2013 |  |  |  |  |  |  |  |  |  |
U.S./Canada | $ | 94,803 | $ | 59,367 | $ | 8,135 | $ | 886 | $ | 2,193
International |  | 31,377 |  | 25,166 |  | 14,155 |  | 244 |  | 8
Total |  | 126,180 |  | 84,533 |  | 22,290 |  | 1,130 |  | 2,201
Corporate and eliminations |  | 3,170 |  | 1,744 |  | (3,375) |  | 1,045 |  | -
Consolidated | $ | 129,350 | $ | 86,277 | $ | 18,915 | $ | 2,175 | $ | 2,201
A reconciliation of our consolidated Adjusted EBITDA to consolidated income before income taxes is provided below (in thousands).
| Quarter Ended |  | Three Quarters Ended
|  | May 31, |  |  | June 1, |  |  | May 31, |  |  | June 1,
|  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013
Enterprise Adjusted EBITDA | $ | 5,965 |  | $ | 7,452 |  | $ | 20,943 |  | $ | 22,290
Corporate expenses |  | (832) |  |  | (1,190) |  |  | (3,169) |  |  | (3,375)
Consolidated Adjusted EBITDA |  | 5,133 |  |  | 6,262 |  |  | 17,774 |  |  | 18,915
Share-based compensation expense |  | (616) |  |  | (488) |  |  | (2,860) |  |  | (1,933)
Reduction of contingent earn out liability |  | 350 |  |  | - |  |  | 936 |  |  | -
Depreciation |  | (866) |  |  | (752) |  |  | (2,466) |  |  | (2,175)
Amortization |  | (983) |  |  | (960) |  |  | (2,961) |  |  | (2,201)
Income from operations |  | 3,018 |  |  | 4,062 |  |  | 10,423 |  |  | 12,606
Interest income |  | 74 |  |  | 158 |  |  | 325 |  |  | 446
Interest expense |  | (557) |  |  | (578) |  |  | (1,676) |  |  | (1,766)
Discount on related party receivable |  | (141) |  |  | (135) |  |  | (424) |  |  | (418)
Other income, net |  | - |  |  | 20 |  |  | - |  |  | 20
Income before income taxes | $ | 2,394 |  | $ | 3,527 |  | $ | 8,648 |  | $ | 10,888
We reassess the fair value of expected contingent consideration and the corresponding liability resulting from the fiscal 2013 acquisition of NinetyFive 5, LLC (Ninety Five 5) each period. The reduction of the liability for the quarter and three quarters ended May 31, 2014 totaled $0.4 million and $0.9 million and is reflected in selling, general, and administrative expenses on our consolidated income statements. However, the impact of these adjustments is not included in our consolidated Adjusted EBITDA

X
- Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration