DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2014

DISCONTINUED OPERATIONS [Abstract]

DISCONTINUED OPERATIONS

4. DISCONTINUED OPERATIONS

2014 Event

On December 3, 2014, the Company’s Board of Directors approved a plan to cease operations at five training sites in Florida.  The Company performed a cost benefit analysis on several schools and concluded that the training sites contained a high fixed cost component and has had difficulty attracting enough students due to high competition to maintain a stable profit margin. Accordingly, the Company ceased operations at these campuses as of December 31, 2014.  This was a strategic shift to close all of the Company’s training sites and all locations at that do not accept Title IV payments.  The results of operations of these campuses are reflected as discontinued operations in the consolidated financial statements.

The results of operations at these five training sites for the three year periods ended December 31, 2014 were as follows (in thousands):

	Year Ended December 31,
	2014			2013			2012
Revenue	$	2,140		$	3,512		$	2,610
Loss before income tax		(6,731	)		(2,635	)		(1,274	)
Income tax benefit		(85	)		-			(508	)
Net loss from discontinued operations	$	(6,646	)	$	(2,635	)	$	(766	)

Amounts include impairments of goodwill and long-lived assets for these campuses of $2.1 million for the year ended December 31, 2014.

2013 Event

On June 18, 2013, the Company’s Board of Directors approved a plan to cease operations at four campuses in Ohio and one campus in Kentucky consisting of the Company’s Dayton institution and its branch campuses.  Federal legislation implemented on July 1, 2012 that prohibits “ability to benefit” (“ATB”) students from participating in federal student financial aid programs led to a dramatic decrease in the number of students attending these five campuses.  Accordingly, the Company ceased operations at these campuses as of December 31, 2013.  The results of operations of these campuses are reflected as discontinued operations in the consolidated financial statements.

The results of operations at these five campuses for the two year periods ended December 31, 2013 were as follows (in thousands):

	Year Ended December 31,
	2013			2012
Revenue	$	7,724		$	19,924
Loss before income tax		(17,287	)		(13,641	)
Income tax expense (benefit)		239			(5,444	)
Net loss from discontinued operations	$	(17,526	)	$	(8,197	)

Amounts include impairments of goodwill and long-lived assets for these campuses of $2.3 million and $8.7 million for the years ended December 31, 2013 and 2012, respectively.

2012 Event

On July 31, 2012, the Company’s Board of Directors approved a plan to cease operations at seven campuses.  The adjustments made to the Company’s business model to better align with the DOE’s increased emphasis on student outcomes and the Company’s efforts to comply with the 90/10 rule and cohort default rates greatly impacted the population at these campuses.  In addition, the current economic environment and regulatory changes under the Consolidated Appropriations Act, 2012, which eliminated the ability to enroll ATB students, have made these campuses no longer viable.  Accordingly, the Company ceased operations at these campuses as of December 31, 2012.  The results of operations are reflected as discontinued operations in the consolidated financial statements.

The results of operations at these seven campuses for the one year periods ended December 31, 2012 were as follows (in thousands):

	Year Ended December 31,
	2012
Revenue	$	8,500
Loss before income tax		(22,142	)
Income tax benefit		(8,837	)
Net loss from discontinued operations	$	(13,305	)

Amounts include impairments of goodwill and long-lived assets for these campuses of $9.5 million for the year ended December 31, 2012.