Segment Information |
Note
9 - Segment Information
We manage our business
in three segments based on geographic location for which operating managers are responsible to the Chief Executive Officer. These
segments include: (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, |
|
As
a percentage of total revenue |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
North America |
|
|
59.0 |
% |
|
|
52.5 |
% |
|
|
60.0 |
% |
|
|
57.3 |
% |
U.K. |
|
|
20.7 |
% |
|
|
23.6 |
% |
|
|
22.2 |
% |
|
|
22.0 |
% |
Other foreign
markets |
|
|
20.3 |
% |
|
|
23.9 |
% |
|
|
17.8 |
% |
|
|
20.7 |
% |
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 |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
(In thousands) |
|
|
(In
thousands) |
|
North America |
|
$ |
13,980 |
|
|
$ |
13,237 |
|
|
$ |
28,967 |
|
|
$ |
29,186 |
|
U.K. |
|
|
4,898 |
|
|
|
5,944 |
|
|
|
10,702 |
|
|
|
11,209 |
|
Other foreign
markets |
|
|
4,820 |
|
|
|
6,041 |
|
|
|
8,605 |
|
|
|
10,582 |
|
Total
consolidated revenue |
|
$ |
23,698 |
|
|
$ |
25,222 |
|
|
$ |
48,274 |
|
|
$ |
50,977 |
|
|
|
Three
Months Ended
June 30, |
|
|
Six
Months Ended
June 30, |
|
Segment gross profit
contribution * |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
(In thousands) |
|
|
(In thousands) |
|
North America |
|
$ |
3,472 |
|
|
$ |
(459 |
) |
|
$ |
7,767 |
|
|
$ |
3,397 |
|
U.K. |
|
|
565 |
|
|
|
1,719 |
|
|
|
1,455 |
|
|
|
2,846 |
|
Other foreign
markets |
|
|
451 |
|
|
|
914 |
|
|
|
(37 |
) |
|
|
344 |
|
Total
consolidated gross profit |
|
$ |
4,488 |
|
|
$ |
2,174 |
|
|
$ |
9,185 |
|
|
$ |
6,587 |
|
|
* |
Segment
gross profit is calculated as revenue less direct course expenses, advertising and sales
expenses and royalty expenses. |
|
|
Three
Months Ended
June 30, |
|
|
Six
Months Ended
June 30, |
|
Depreciation and
amortization expenses |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
(In thousands) |
|
|
(In thousands) |
|
North America |
|
$ |
41 |
|
|
$ |
28 |
|
|
$ |
72 |
|
|
$ |
53 |
|
U.K. |
|
|
18 |
|
|
|
10 |
|
|
|
28 |
|
|
|
14 |
|
Other foreign
markets |
|
|
1 |
|
|
|
3 |
|
|
|
2 |
|
|
|
3 |
|
Total
consolidated depreciation and amortization expenses |
|
$ |
60 |
|
|
$ |
41 |
|
|
$ |
102 |
|
|
$ |
70 |
|
|
|
June 30, |
|
|
December 31, |
|
Segment identifiable
assets |
|
2019 |
|
|
2018 |
|
|
|
(In thousands) |
|
North America |
|
$ |
15,399 |
|
|
$ |
11,566 |
|
U.K. |
|
|
8,547 |
|
|
|
4,956 |
|
Other foreign
markets |
|
|
3,589 |
|
|
|
4,038 |
|
Total
consolidated identifiable assets |
|
$ |
27,535 |
|
|
$ |
20,560 |
|
|