DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2016

DISCONTINUED OPERATIONS [Abstract]

DISCONTINUED OPERATIONS

3. DISCONTINUED OPERATIONS

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 condensed consolidated financial statements.  Implementation of the plan will result in the Company’s operations being focused solely on the Transportation and Skilled Trades segment.

The results of operations at these 17 campuses for the three and nine months ended September 30, 2016 and September 30, 2015 were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Revenue	$	24,464		$	25,013		$	74,547		$	77,590
Loss before income tax		(1,733	)		(1,374	)		(1,978	)		(4,271	)
Income tax benefit		-			-			-			-
Net loss from discontinued operations	$	(1,733	)	$	(1,374	)	$	(1,978	)	$	(4,271	)

On December 3, 2015, the 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 and is included in the Transitional segment.

On July 1, 2016, New England Institute of Technology at Palm Beach, Inc. (“NEIT”), a wholly-owned subsidiary of the Company, entered into a purchase and sale agreement (the “WPB Sale Agreement”) with School Property Development Metrocentre, LLC (“SPD”), pursuant to which NEIT agreed to sell to SPD the real property owned by NEIT located at 2400 and 2410 Metrocentre Boulevard East, West Palm Beach, Florida, including the improvements and other personal property located thereon  (the “WPB Property”) for a cash purchase price of approximately $15.9 million.

In the third quarter of 2016, the Board of Directors approved a plan to teach-out certain programs at the West Palm Beach, Florida campus, which is expected to be completed in the first quarter of 2017.  As a result, operations related to these programs have been included in the Transitional segment as of September 30, 2016. The remaining assets and liabilities at the West Palm Beach, Florida campus remain in classified as held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2016.  The remaining operations at the West Palm Beach, Florida campus remain in classified as discontinued operations in the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2016.

On September 1, 2016, the Company received notification of termination of the WPB Sale Agreement from SPD pursuant to the terms of the WPB Sale Agreement.