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Segment Information
 12 Months Ended
Aug. 31, 2015
Segment Information [Abstract]  
Segment Information

 

17.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, restructuring charges, depreciation expense, amortization expense, and certain other charges such as impaired asset charges and 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, 2015

 

Customers

 

Gross Profit

 

EBITDA

 

Depreciation

 

Amortization

 

 

Assets

 

Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S./Canada

$
161,859 

$
101,917 

$
16,405 

$
2,157 

$
3,722 

 

$
79,215 

$
3,618 

International

 
43,721 

 
33,981 

 
20,272 

 
322 

 
5 

 

 
17,899 

 
209 

Total

 
205,580 

 
135,898 

 
36,677 

 
2,479 

 
3,727 

 

 
97,114 

 
3,827 

Corporate and eliminations

 
4,361 

 
2,191 

 
(4,819)

 
1,663 

 

 -

 

 
103,531 

 
814 

Consolidated

$
209,941 

$
138,089 

$
31,858 

$
4,142 

$
3,727 

 

$
200,645 

$
4,641 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

August 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 

 

Capital expenditures in our U.S./Canada operations include $2.2 million, $7.8 million, and $2.6 million of spending on capitalized curriculum during the fiscal years ended August 31, 2015, 2014, and 2013.

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YEAR ENDED

 

 

 

 

 

 

AUGUST 31,

 
2015 

 
2014 

 
2013 

Enterprise Adjusted EBITDA

$
36,677 

$
38,878 

$
36,686 

Corporate expenses

 
(4,819)

 
(4,458)

 
(5,284)

Consolidated Adjusted EBITDA

 
31,858 

 
34,420 

 
31,402 

Share-based compensation

 
(2,536)

 
(3,534)

 
(3,589)

Reduction (increase) in

 

 

 

 

 

 

contingent earn out

 
(35)

 
1,579 

 

 -

Impaired assets

 
(1,302)

 
(363)

 

 -

Restructuring costs

 
(587)

 

 -

 

 -

Depreciation

 
(4,142)

 
(3,383)

 
(3,008)

Amortization

 
(3,727)

 
(3,954)

 
(3,191)

Income from operations

 
19,529 

 
24,765 

 
21,614 

Interest income

 
383 

 
427 

 
614 

Interest expense

 
(2,137)

 
(2,237)

 
(2,332)

Discount on related party receivable

 
(363)

 
(1,196)

 
(519)

Other, net

 

 -

 

 -

 
21 

Income before income taxes

$
17,412 

$
21,759 

$
19,398 

 

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,

 
2015 

 
2014 

 
2013 

United States

$
162,594 

$
153,999 

$
138,599 

Japan

 
14,446 

 
16,652 

 
19,594 

United Kingdom

 
8,997 

 
6,899 

 
5,428 

Canada

 
6,460 

 
8,780 

 
9,866 

China/Singapore

 
3,821 

 
3,322 

 
2,889 

Australia

 
3,774 

 
4,623 

 
4,536 

Thailand

 
1,055 

 
860 

 
860 

Mexico/Central America

 
974 

 
923 

 
955 

Denmark/Scandinavia

 
729 

 
831 

 
693 

India

 
708 

 
684 

 
559 

Middle East

 
670 

 
594 

 
472 

Indonesia

 
651 

 
761 

 
778 

Malaysia

 
511 

 
405 

 
427 

Central/Eastern Europe

 
492 

 
697 

 
551 

Brazil

 
321 

 
595 

 
495 

Korea

 
179 

 
725 

 
469 

Others

 
3,559 

 
3,815 

 
3,753 

 

$
209,941 

$
205,165 

$
190,924 

 

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, 2015 and 2014, 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,

 
2015 

 
2014 

United States/Canada

$
28,770 

$
30,445 

Japan

 
1,227 

 
1,351 

United Kingdom

 
101 

 
149 

Australia

 
208 

 
111 

 

$
30,306 

$
32,056 

 

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