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8-K - FORM 8-K - LEARNING TREE INTERNATIONAL, INC.ltre20150810_8k.htm

Exhibit 99.1

 

Contact: Max Shevitz

FOR IMMEDIATE RELEASE

President

Tel: 703/925-5590

Email: max_shevitz@learningtree.com

 

LEARNING TREE INTERNATIONAL ANNOUNCES RESULTS FOR THIRD QUARTER FISCAL YEAR 2015

 

RESTON, VA., August 11, 2015 – Learning Tree International, Inc. (OTCQX: LTRE) announced today its revenues and results of operations for its third quarter of fiscal year 2015, which ended July 3, 2015.

 

In its third quarter of fiscal year 2015, Learning Tree reported revenues from continuing operations of $22.7million, loss from continuing operations of $4.3 million, and net loss of $4.3 million, or ($0.33) per share. These results compare with revenues from continuing operations of $25.7 million, loss from continuing operations of $2.9 million, income from discontinued operations of $0.2 million, and net loss of $2.7 million, or ($0.21) per share, in its third quarter of fiscal year 2014.

 

As previously reported, on March 3, 2015, Learning Tree completed the sale of its subsidiary in France, Learning Tree International S.A. to Educinvest SPRL. The sale of Learning Tree France resulted in a loss of $2.5 million. This loss plus the results of operations for Learning Tree France for the nine month period ended July 3, 2015 and the three and nine month periods ended June 27, 2014, respectively, have been reclassified to the income (loss) from discontinued operations line on the Condensed Consolidated Statements of Operations table presented below. In addition, historical Condensed Consolidated Balance Sheet amounts for Learning Tree France have been reclassified as discontinued operations in the tables presented below.

 

Conference Call and Webcast 

Learning Tree will host an investor conference call to discuss its results for the third quarter of fiscal year 2015 at 4:30 p.m. ET, August 11, 2015. To participate, call (888) 339-2688 or +1 (617) 847-3007 (International Callers) and enter pass code: 220 179 24 at least five minutes before 4:30pm (ET) / 1:30pm (PT) on Tuesday, August 11, 2015; or, go to Learning Tree’s Investor website at www.learningtree.com/investor to gain access and listen to the live webcast. A webcast replay of the investor conference call is available for 90 days via the Internet through the Investor Relations section of Learning Tree’s website at www.learningtree.com/investor.

 

About Learning Tree International 

Established in 1974, Learning Tree International is a leading worldwide vendor-independent provider to business and government organizations for the training and education of their information technology (“IT”) professionals and managers. In addition to training, we support our customers by providing a suite of skills enhancement services which help business and government organizations assess the skill level of their IT staff & new hires, determine skill gaps, and define learning paths to enhance the competences of their IT workforce. Learning Tree develops, markets, and delivers a broad, proprietary library of instructor-led courses focused on: web development, IT security, project management, operating systems, databases, networking, software development, leadership, and management and business skills. Courses are offered at Learning Tree Education Centers and training locations around the world, on-site at client facilities, or via the Internet with Learning Tree AnyWare™, our web-based, remote-attendance platform. For more information about Learning Tree and its products and services, call 1-888-THE-TREE (1-888-843-8733), or visit the Learning Tree Web site at www.learningtree.com.

 

Cautionary Statement Regarding Forward Looking Statements 

The statements contained herein that are not historical facts are forward-looking statements based on management's current expectations and beliefs concerning future developments and their potential effects on Learning Tree. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Learning Tree. There can be no assurance that future developments affecting Learning Tree will be the same as those anticipated. Learning Tree cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. Investors should not put undue reliance on these forward-looking statements, since they are based on key assumptions about future risks and uncertainties. Some of these risks and uncertainties that could affect Learning Tree and its business include, but are not limited to 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; intellectual property, including having to defend potential infringement claims; risks associated with cyber security; adverse weather conditions, strikes, acts of war or terrorism and other external events; and attracting and retaining qualified personnel. Learning Tree is not undertaking any obligation to update forward-looking statements contained herein to reflect future events, developments or changed circumstances.

 

 
 

 

 

In order to help the reader assess the factors and risks in Learning Tree's business that could cause actual results to differ materially from those expressed in the forward looking statements, Learning Tree discusses in its 2014 Annual Report on Form 10-K (“Form 10-K”) and Quarterly Reports on Form 10-Q for the quarterly periods ended April 3, 2015 and July 3, 2015 (“Form 10-Q’s”), those risks in Item 1A, “Risk Factors”. Please read the Form 10-K and the Form 10-Q’s, including the Risk Factors included therein, which are filed with the Securities and Exchange Commission (“SEC”) and available at the SEC's Internet site (http://www.sec.gov).

# # #

 

Release Summary: Learning Tree International announced today its revenues and results of operations for its third quarter of fiscal year 2015, which ended July 3, 2015.

 

 
 

 

 

Table 1

LEARNING TREE INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(all amounts in thousands, except per share data)

 

   

Three Months Ended

   

Nine Months Ended

 
   

July 3,

   

June 27,

   

July 3,

   

June 27,

 
   

2015

   

2014

   

2015

   

2014

 
   

(unaudited)

   

(unaudited)

   

(unaudited)

   

(unaudited)

 
                                 

Revenues

  $ 22,703     $ 25,718     $ 69,255     $ 77,012  

Cost of revenues

    14,361       14,532       42,049       44,655  

Gross profit

    8,342       11,186       27,206       32,357  
                                 

Operating expenses:

                               

Course development

    2,575       1,813       6,395       5,398  

Sales and marketing

    5,387       5,638       16,999       16,475  

General and administrative

    4,420       6,599       14,275       16,774  

Total operating expenses

    12,382       14,050       37,669       38,647  
                                 

Loss from operations

    (4,040 )     (2,864 )     (10,463 )     (6,290 )

Other income (expense), net

    (41 )     18       346       (74 )

Loss from continuing operations before income taxes

    (4,081 )     (2,846 )     (10,117 )     (6,364 )

Provision for income tax

    222       104       432       498  
                                 

Loss from continuing operations

    (4,303 )     (2,950 )     (10,549 )     (6,862 )
                                 

Income (loss) from discontinued operations, net of tax

    0       204       (264 )     242  

Loss on disposal of discontinued segment

    0       0       (2,501 )     0  
                                 

Income (loss) from discontinued operations

    0       204       (2,765 )     242  
                                 

Net loss

  $ (4,303 )   $ (2,746 )   $ (13,314 )   $ (6,620 )
                                 

Earnings (loss) per share basic and diluted:

                               

Continuing operations

  $ (0.33 )   $ (0.22 )   $ (0.80 )   $ (0.52 )

Discontinued operations

    0.00       0.01       (0.21 )     0.02  

Basic and diluted loss per share

  $ (0.33 )   $ (0.21 )   $ (1.01 )   $ (0.50 )

 

 
 

 

 

Table 2

LEARNING TREE INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(all amounts in thousands)

 

   

July 3,

   

October 3,

 
   

2015

   

2014

 
   

(unaudited)

         
                 

Cash and cash equivalents

  $ 18,682     $ 29,881  

Trade accounts receivable, net

    9,906       13,523  

Prepaid expenses and other

    4,915       4,968  

Current assets of continuing operations

    33,503       48,372  

Current assets of discontinued operations

    0       4,472  

Total current assets

    33,503       52,844  

Depreciable assets, net and other

    11,294       12,718  

Depreciable assets, net and other of discontinued operations

    0       638  

Total assets

  $ 44,797     $ 66,200  
                 

Accounts payable and accrued liabilities

  $ 12,345     $ 14,191  

Deferred revenues

    24,210       26,572  

Current liabilities of continuing operations

    36,555       40,763  

Current liabilities of discontinued operations

    0       2,593  

Total current liabilities

    36,555       43,356  

Other long term liabilities of continuing operations

    5,796       6,800  

Other long term liabilities of discontinued operations

    0       247  

Total liabilities

    42,351       50,403  
                 

Stockholders' equity

    2,446       15,797  

Total liabilities and stockholders' equity

  $ 44,797     $ 66,200