DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2015

DISCONTINUED OPERATIONS [Abstract]

DISCONTINUED OPERATIONS

4. DISCONTINUED OPERATIONS

2015 Event

On November 3, 2015 the Board of Directors approved a plan for the Company to divest 17 of the 18 schools included in its Healthcare and Other Professions segment.  The planned divestiture of the Company’s Healthcare and Other Professions segment constitutes a strategic shift for the Company.  The results of operations of these campuses are reflected as discontinued operations in the consolidated financial statements.  Implementation of the plan will result in the Company’s operations focused solely on the Transportation and Skilled Trades segment.

On December 3, 2015, our Board of Directors approved a plan to cease operations at the Hartford, Connecticut school which is scheduled to close in the fourth quarter of 2016.

In addition, as of September 30, 2015 the Company had two campuses held for sale.  With the approval of the plan to divest the Healthcare and Other Professions segment one of the campuses is no longer included as held for sale as the Company plans to sell this campus have changed; the campus is included in the transportation and skilled trades segment.

The results of operations at these 17 campuses for the three year periods ended December 31, 2015 were as follows (in thousands):

	Year Ended December 31,
	2015			2014			2013
Revenue	$	112,882		$	122,133		$	125,916
Loss before income tax		(642	)		(37,411	)		(3,870	)
Income tax benefit		-			(2,746	)		-
Net loss from discontinued operations	$	(642	)	$	(34,665	)	$	(3,870	)

Amounts include impairments of goodwill and long-lived assets for these campuses of $37.6 million and $3.9 million for the year ended December 31, 2014 and 2013, respectively.

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 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 two year periods ended December 31, 2014 were as follows (in thousands):

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

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 year ended December 31, 2013 were as follows (in thousands):

	Year Ended December 31,
	2013
Revenue	$	7,724
Loss before income tax		(17,287	)
Income tax expense (benefit)		239
Net loss from discontinued operations	$	(17,526	)

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