| Segment Information |
Note 10 - Segment Information
We historically managed
our business in four segments based on geographic location for which operating managers are responsible to the Chief Executive
Officer. Our historical segments were the United States, Canada, the United Kingdom, and Other Foreign Markets. During the three
months ended December 31, 2017, the Company’s management decided to combine the United States and Canada segments into the
North America segment effective for the 2017 year-end reporting and since such date, our operations have been managed through
three operating segments: (i) North America, (ii) United Kingdom, (iii) Other Foreign Markets. Operating results, as reported
below, are reviewed regularly by our Chief Executive Officer, or Chief Operating Decision Maker and other
members of the executive team.
The proportion of our total revenue attributable
to each segment is as follows:
| |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
| As a percentage of total revenue |
|
|
|
|
|
|
|
|
|
|
|
|
| North America |
|
|
56.1 |
% |
|
|
59.8 |
% |
|
|
56.9 |
% |
|
|
58.6 |
% |
| U.K. |
|
|
23.0 |
% |
|
|
21.6 |
% |
|
|
22.3 |
% |
|
|
22.6 |
% |
| Other foreign markets |
|
|
20.9 |
% |
|
|
18.6 |
% |
|
|
20.8 |
% |
|
|
18.8 |
% |
| Total consolidated revenue |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
Operating results
for the segments are as follows:
| |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| Segment revenue |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
| (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
| North America |
|
$ |
12,662 |
|
|
$ |
15,091 |
|
|
$ |
41,848 |
|
|
$ |
43,035 |
|
| U.K. |
|
|
5,191 |
|
|
|
5,457 |
|
|
|
16,400 |
|
|
|
16,598 |
|
| Other foreign markets |
|
|
4,704 |
|
|
|
4,687 |
|
|
|
15,286 |
|
|
|
13,775 |
|
| Total consolidated revenue |
|
$ |
22,557 |
|
|
$ |
25,235 |
|
|
$ |
73,534 |
|
|
$ |
73,408 |
|
| |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| Segment gross profit contribution * |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
| (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
| North America |
|
$ |
1,621 |
|
|
$ |
4,224 |
|
|
$ |
5,018 |
|
|
$ |
8,738 |
|
| U.K. |
|
|
845 |
|
|
|
1,222 |
|
|
|
3,691 |
|
|
|
5,015 |
|
| Other foreign markets |
|
|
299 |
|
|
|
249 |
|
|
|
643 |
|
|
|
1,778 |
|
| Total consolidated gross profit |
|
$ |
2,765 |
|
|
$ |
5,695 |
|
|
$ |
9,352 |
|
|
$ |
15,531 |
|
| * |
Segment gross profit
is calculated as revenue less direct course expenses, advertising and sales expenses and royalty expense. |
| |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| Depreciation and amortization expenses |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
| (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
| North America |
|
$ |
26 |
|
|
$ |
24 |
|
|
$ |
79 |
|
|
$ |
80 |
|
| U.K. |
|
|
11 |
|
|
|
5 |
|
|
|
25 |
|
|
|
14 |
|
| Other foreign markets |
|
|
1 |
|
|
|
1 |
|
|
|
4 |
|
|
|
1 |
|
| Total consolidated depreciation and amortization expenses |
|
$ |
38 |
|
|
$ |
30 |
|
|
$ |
108 |
|
|
$ |
95 |
|
| |
|
September 30, |
|
|
December 31, |
|
| Segment identifiable assets |
|
2018 |
|
|
2017 |
|
| (In thousands) |
|
|
|
| North America |
|
$ |
11,263 |
|
|
$ |
15,364 |
|
| U.K. |
|
|
7,468 |
|
|
|
9,090 |
|
| Other foreign markets |
|
|
5,565 |
|
|
|
2,566 |
|
| Total consolidated identifiable assets |
|
$ |
24,296 |
|
|
$ |
27,020 |
|
|