10.

SEGMENTS

We operate our business in three reportable segments: (a) the Transportation and Skilled Trades segment; (b) the Healthcare and Other Professions segment; and (c) the Transitional segment. Our reportable segments have been determined based on a method by which we now evaluate performance and allocate resources. Each reportable segment represents 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. Our operating segments are described below.

Transportation and Skilled Trades – The 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 – The Healthcare and Other Professions 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 – The Transitional segment refers to our campus operations which have been closed. The schools in the Transitional segment employed a gradual teach-out process that enabled the schools to continue to operate to allow their current students to complete their course of study.

The Company continually evaluates each campus for profitability, earning potential, and customer satisfaction. This evaluation takes several factors into consideration, including the campus’s geographic location and program offerings, 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 our shareholders with the maximum return on their investment. Campuses classified in the Transitional segment have been subject to this process and have been strategically identified for closure. As of September 30, 2020 and 2019 and December 31, 2019, no campuses have been categorized in the Transitional segment.

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)
	2020		% of Total			2019		% of Total			2020			2019
Transportation and Skilled Trades	$	56,828		72.1	%	$	52,652		72.5	%	$	9,138		$	6,752
Healthcare and Other Professions		21,964		27.9	%		19,942		27.5	%		1,654			1,403
Corporate		-					-					(6,952	)		(6,012	)
Total	$	78,792		100.0	%	$	72,594		100.0	%	$	3,840		$	2,143

	For the Nine Months Ended September 30,
	Revenue										Operating Income (Loss)
		2020	% of Total				2019	% of Total				2020			2019
Transportation and Skilled Trades	$	148,799		70.4	%	$	141,005		70.7	%	$	18,848		$	11,051
Healthcare and Other Professions		62,504		29.6	%		58,422		29.3	%		6,388			4,214
Corporate		-					-					(21,581	)		(20,079	)
Total	$	211,303		100.0	%	$	199,427		100.0	%	$	3,655		$	(4,814	)

	Total Assets
	September 30, 2020		December 31, 2019
Transportation and Skilled Trades	$	138,123	$	121,611
Healthcare and Other Professions		34,628		27,945
Corporate		33,065		45,207
Total	$	205,816	$	194,763