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8-K - FORM 8-K - LEARNING TREE INTERNATIONAL, INC.d8k.htm

Exhibit 99.1

 

            

Company Contact:

Charles R. Waldron

Chief Financial Officer

(703) 709-9119

bob_waldron@learningtree.com

LEARNING TREE ANNOUNCES THIRD QUARTER 2011 RESULTS

Reston, VA — August 10, 2011 — Learning Tree International, Inc. (NASDAQ: LTRE) announced today its revenues and results of operations for its third quarter of fiscal year 2011, which ended July 1, 2011.

In its third quarter of fiscal year 2011, Learning Tree reported revenues of $33.5 million, income from operations of $1.0 million, and net income of $0.6 million or $0.05 per share. These results compare with revenues of $32.8 million, income from operations of $1.3 million, and net income of $2.1 million or $0.15 per share in its third quarter of fiscal year 2010.

For the first nine months of fiscal year 2011, revenues were $99.5 million, income from operations was $2.3 million, and net income was $1.6 million or $0.12 per share. This compares to revenues of $93.6 million, income from operations of $3.0 million and net income of $3.2 million or $0.23 per share in for the first nine months of fiscal year 2010.

“We are far from satisfied with the results of our third quarter, and we are continuing to work on increasing revenue while reducing costs in a prudent fashion,” commented Learning Tree President and CEO Nicholas R. Schacht. “We have moved forward with the implementation of revenue growth initiatives aimed at increasing our revenues more quickly in fiscal year 2012 and beyond—accelerating our rate of new course title introduction, increasing our direct sales force and continuing the market expansion and customer adoption of Learning Tree AnyWare™, our live on-line learning platform which allows individuals located anywhere to fully participate in our instructor-led classes over the Internet.”

Learning Tree International is a leading global provider of highly effective, hands-on training to managers and information technology professionals. Since 1974, over 65,000 organizations have relied on Learning Tree to enhance the professional skills of more than 2 million employees. Learning Tree develops, markets and delivers a broad, proprietary library of instructor-led courses focused on people and project management; leadership and business skills; Web development; operating systems; databases; networking; IT security; and software development. Courses are presented globally at Learning Tree Education Centers, on site at client facilities, and are available via Learning Tree AnyWare™, the Company’s proprietary live, online instructor-led training delivery option, which connects online participants to the actual classroom. For more information about Learning Tree products and services, call 1-888-THE-TREE (1-888-843-8733), or visit the Learning Tree Web site at www.learningtree.com.

Except for historical information contained herein, the matters addressed in this press release are forward-looking statements. Please do not put undue reliance on these forward-looking statements, since they are based on key assumptions about future risks and uncertainties. Although Learning Tree believes that its assumptions are reasonable, inevitably some will prove to be incorrect. As a result, Learning Tree’s actual future results can be expected to differ from those in this release, and those differences may be material. Learning Tree is not undertaking any obligation to update forward-looking statements. In order to help the reader assess the major risks in Learning Tree’s business, Learning Tree has identified many, but not all, of these risks in Item 1A, “Risk Factors” in Learning Tree’s Annual Report on Form 10-K (“Item 1A”). Please read that exhibit carefully. Some of the factors discussed in Item 1A that could affect Learning Tree include the following: risks associated with the timely development, introduction, and customer acceptance of Learning Tree’s courses; competition; international operations, including currency fluctuations; changing economic and market conditions; technology development and new technology introduction; efficient delivery and scheduling of Learning Tree’s courses; adverse weather conditions, strikes, acts of war or terrorism and other external events; and attracting and retaining qualified personnel.


Webcast

An investor conference call to discuss third quarter fiscal year 2011 results is scheduled at 4:30 p.m. (EDT) August 10, 2011. Interested parties are invited to listen to the conference call by accessing the webcast live on Learning Tree’s website www.learningtree.com/investor. The webcast will also be available at www.learningtree.com/investor for replay.

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LEARNING TREE INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(all amounts in thousands, except per share amounts)

 

     Three Months Ended     Nine Months Ended  
      July 1,
2011
     July 2,
2010
    July 1,
2011
     July 2,
2010
 

Revenues

   $ 33,458       $ 32,781      $ 99,492       $ 93,579   

Cost of revenues

     15,913         15,713        46,522         43,436   
  

 

 

    

 

 

   

 

 

    

 

 

 

Gross profit

     17,545         17,068        52,970         50,143   
  

 

 

    

 

 

   

 

 

    

 

 

 

Operating expenses:

          

Course development

     1,872         1,768        5,691         5,358   

Sales and marketing

     7,811         7,777        23,536         22,257   

General and administrative

     6,901         6,215        21,420         19,506   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total operating expenses

     16,584         15,760        50,647         47,121   
  

 

 

    

 

 

   

 

 

    

 

 

 

Income from operations

     961         1,308        2,323         3,022   

Other income, net

     26         235        12         595   
  

 

 

    

 

 

   

 

 

    

 

 

 

Income before income taxes

     987         1,543        2,335         3,617   

Provision (benefit) for income tax

     342         (526     723         396   
  

 

 

    

 

 

   

 

 

    

 

 

 

Net income

   $ 645       $ 2,069      $ 1,612       $ 3,221   
  

 

 

    

 

 

   

 

 

    

 

 

 

Earnings per share — diluted

   $ 0.05       $ 0.15      $ 0.12       $ 0.23   
  

 

 

    

 

 

   

 

 

    

 

 

 

LEARNING TREE INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(all amounts in thousands)

 

     July 1,
2011
     October 1,
2010
 

Cash and cash equivalents

   $ 35,096       $ 34,449   

Available for sale securities

     5,148         4,997   

Trade accounts receivable, net

     18,139         18,311   

Prepaid expenses and other

     7,819         7,008   
  

 

 

    

 

 

 

Total current assets

     66,202         64,765   

Depreciable assets, net and other

     36,213         35,408   
  

 

 

    

 

 

 

Total assets

   $ 102,415       $ 100,173   
  

 

 

    

 

 

 

Accounts payable and accrued liabilities

   $ 17,631       $ 16,484   

Deferred revenues

     35,044         35,745   
  

 

 

    

 

 

 

Total current liabilities

     52,675         52,229   

Other

     12,956         13,172   
  

 

 

    

 

 

 

Total liabilities

     65,631         65,401   
  

 

 

    

 

 

 

Stockholders' equity

     36,784         34,772   
  

 

 

    

 

 

 

Total liabilities and stockholders' equity

   $ 102,415       $ 100,173