| Segment Information |
Note
9 - 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 (“CODM”)
and other members of the executive team.
The
proportion of our total revenue attributable to each segment is as follows:
| |
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
| |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
| As a percentage of total revenue |
|
|
|
|
|
|
|
|
|
|
|
|
| North America |
|
|
52.5 |
% |
|
|
58.2 |
% |
|
|
57.3 |
% |
|
|
58.0 |
% |
| U.K. |
|
|
23.6 |
% |
|
|
22.1 |
% |
|
|
22.0 |
% |
|
|
23.1 |
% |
| Other foreign markets |
|
|
23.9 |
% |
|
|
19.7 |
% |
|
|
20.7 |
% |
|
|
18.9 |
% |
| Total consolidated revenue |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
Operating
results for the segments are as follows:
| |
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
| Segment revenue |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
| (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
| North America |
|
$ |
13,237 |
|
|
$ |
15,262 |
|
|
$ |
29,186 |
|
|
$ |
27,944 |
|
| U.K. |
|
|
5,944 |
|
|
|
5,786 |
|
|
|
11,209 |
|
|
|
11,141 |
|
| Other foreign markets |
|
|
6,041 |
|
|
|
5,160 |
|
|
|
10,582 |
|
|
|
9,088 |
|
| Total consolidated revenue |
|
$ |
25,222 |
|
|
$ |
26,208 |
|
|
$ |
50,977 |
|
|
$ |
48,173 |
|
| |
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
| Segment gross profit contribution * |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
| (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
| North America |
|
$ |
(459 |
) |
|
$ |
2,961 |
|
|
$ |
3,397 |
|
|
$ |
4,514 |
|
| U.K. |
|
|
1,719 |
|
|
|
2,023 |
|
|
|
2,846 |
|
|
|
3,793 |
|
| Other foreign markets |
|
|
914 |
|
|
|
1,234 |
|
|
|
344 |
|
|
|
1,529 |
|
| Total consolidated gross profit |
|
$ |
2,174 |
|
|
$ |
6,218 |
|
|
$ |
6,587 |
|
|
$ |
9,836 |
|
| * |
Segment
gross profit is calculated as revenue less direct course expenses, advertising and sales expenses and royalty expense. |
| |
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
| Depreciation and amortization expenses |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
| (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
| North America |
|
$ |
28 |
|
|
$ |
27 |
|
|
$ |
53 |
|
|
$ |
56 |
|
| U.K. |
|
|
10 |
|
|
|
5 |
|
|
|
14 |
|
|
|
9 |
|
| Other foreign markets |
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
| Total consolidated depreciation and amortization expenses |
|
$ |
41 |
|
|
$ |
32 |
|
|
$ |
70 |
|
|
$ |
65 |
|
| |
|
June 30, |
|
|
December 31, |
|
| Segment identifiable assets |
|
2018 |
|
|
2017 |
|
| (In thousands) |
|
|
|
| North America |
|
$ |
10,449 |
|
|
$ |
15,364 |
|
| U.K. |
|
|
6,384 |
|
|
|
9,090 |
|
| Other foreign markets |
|
|
5,583 |
|
|
|
2,566 |
|
| Total consolidated identifiable assets |
|
$ |
22,416 |
|
|
$ |
27,020 |
|
|