SEGMENTS

We currently operate in three reportable segments: (a) Transportation and Skilled Trades segment (b) Healthcare and Other Professions segment and (c) Transitional segment. Our reportable segments represent a group of post-secondary education providers that offer a variety of degree and non-degree academic programs. These segments are organized by key market segments to enhance operational alignment within each segment to more effectively execute our strategic plan. Each of the Company’s schools is a reporting unit and an operating segment which have been determined based on a method by which we evaluate performance and allocate resources. Our operating segments have been aggregated into three reportable segments because, in our judgment, the operating segments have similar services, types of customers, regulatory environment and economic characteristics. Our reportable segments are described below.

Transportation and Skilled Trades – Transportation and Skilled Trades segment offers academic programs mainly in the career-oriented disciplines of transportation and skilled trades (e.g. automotive, diesel, HVAC, welding and manufacturing).

Healthcare and Other Professions – HOPS segment offers academic programs in the career-oriented disciplines of health sciences, hospitality and business and information technology (e.g. dental assistant, medical assistant, practical nursing, culinary arts and cosmetology).

Transitional – Transitional segment refers to operations that are being phased out or closed and our campuses that are currently being taught out. These schools are employing a gradual teach-out process that enables the schools to continue to operate while current students complete their course of study. These schools are no longer enrolling new students. During the year ended December 31, 2016, the Company announced the closings of our Northeast Philadelphia, Pennsylvania; Center City Philadelphia, Pennsylvania; and West Palm Beach, Florida facilities which were fully taught out in 2017. In the first quarter of 2016 we completed the teach-out of our Fern Park, Florida campus. Also, in the fourth quarter of 2016, we completed the teach-out of our Hartford, Connecticut and Henderson (Green Valley), Nevada campuses. In addition, in March 2017, the Board of Directors approved a plan to cease operations at our schools in Brockton, Massachusetts and Lowell, Massachusetts. These schools are being taught out and expected to be closed in December 2017.

The Company continually evaluates all campuses for profitability, earning potential, and customer satisfaction. This evaluation takes several factors into consideration, including the campus’s geographic location, the programs offered at the campus, as well as skillsets required of our students by their potential employers. The purpose of this evaluation is to ensure that our programs provide our students with the best possible opportunity to succeed in the marketplace with the goals of attracting more students to our programs and, ultimately, to provide the shareholders with the maximum return on their investment. Campuses in the Transitional segment have been subject to this process and have been strategically identified for closure.

We evaluate segment performance based on operating results. Adjustments to reconcile segment results to consolidated results are included under the caption “Corporate,” which primarily includes unallocated corporate activity.

Summary financial information by reporting segment is as follows:

	For the Three Months Ended September 30,
	Revenue										Operating Income (Loss)
	2017		% of Total			2016		% of Total			2017			2016
Transportation and Skilled Trades	$	47,694		70.9	%	$	47,939		64.5	%	$	6,061		$	6,120
Healthcare and Other Professions		18,428		27.4	%		18,559		25.0	%		(574	)		(41	)
Transitional		1,186		1.8	%		7,769		10.5	%		(2,495	)		(2,029	)
Corporate		-		0.0	%		-		0.0	%		(3,723	)		(4,721	)
Total	$	67,308		100.0	%	$	74,267		100.0	%	$	(731	)	$	(671	)

	For the Nine Months Ended September 30,
	Revenue										Operating Income (Loss)
	2017		% of Total			2016		% of Total			2017			2016
Transportation and Skilled Trades	$	131,169		67.5	%	$	131,243		61.6	%	$	8,960		$	11,916
Healthcare and Other Professions		55,199		28.4	%		57,030		26.8	%		(1,047	)		2,634
Transitional		8,084		4.2	%		24,718		11.6	%		(3,900	)		(7,132	)
Corporate		-		0.0	%		-		0.0	%		(16,503	)		(17,566	)
Total	$	194,452		100.0	%	$	212,991		100.0	%	$	(12,490	)	$	(10,148	)

	Total Assets
	September 30, 2017		December 31, 2016
Transportation and Skilled Trades	$	83,272	$	83,320
Healthcare and Other Professions		10,005		7,506
Transitional		4,219		18,874
Corporate		20,063		53,507
Total	$	117,559	$	163,207