EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

    Company Contact:
    Mary C. Adams, Chief Administrative Officer
    310-342-2229
    madams@learningtree.com

LEARNING TREE ANNOUNCES SECOND QUARTER RESULTS

EL SEGUNDO, CA—May 9, 2006—Learning Tree International, Inc. (NASDAQ: LTRE) announced today consolidated revenues and earnings for the second quarter and the first six months of its 2006 fiscal year.

Revenues for the quarter ended March 31, 2006 were $34.3 million compared with $34.9 million for the same quarter of the prior year. Loss from operations for the quarter was $3.8 million compared with a loss of $3.6 million for the same quarter of the prior year. Net loss for the quarter was $1.9 million compared to a net loss of $0.9 million for the same quarter of the prior year. Net loss per diluted share for the second quarter was $0.11 compared with a net loss per diluted share of $0.05 for the same quarter of the prior year. The disparity in net loss relates primarily to differences in the effective tax rates between the two years.

Revenues for the six months ended March 31, 2006 were $74.1 million compared with $74.6 million for the same period of the prior year. Loss from operations for the six months of $0.9 million compares with loss from operations of $1.0 million for the same period of the prior year. Net income for the six months was $0.3 million compared with net income of $0.0 million for the same period of the prior year. Net income per diluted share for the first six months ended March 31, 2006 was $0.02 compared with net income per diluted share of $0.00 for the same period of the prior year.

“While our results for the quarter were in line with our prior guidance, we are not satisfied with the company’s performance at this point in time,” commented Nicholas Schacht, Learning Tree’s President and CEO. “We continue to focus on returning our business to growth and consistent profitability. We have already taken a number of steps to reduce long-term infrastructure costs in future quarters, and we are working hard to identify additional opportunities to improve profitability and grow our business.”

Learning Tree International is a leading worldwide provider of vendor-independent education and training to IT professionals and managers in business and government organizations. Learning Tree develops, markets and delivers a broad, proprietary library of instructor-led courses focused on Web development, operating systems, programming languages, databases, computer networks, computer and network security, object-oriented technology, applied management, project management and key business skills. Learning Tree also tests and certifies IT and business professionals, and Learning Tree courses are recommended for college credit by the American Council on Education. In addition, Learning Tree is on the National Association of State Boards of Accountancy National Registry of CPE sponsors and is a Registered Education Provider of the Project Management Institute (PMI). For more information about Learning Tree products and services, call 1-800-THE-TREE (1-800-843-8733), 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 the discussion that follows, 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 Exhibit 99.1, “Risk Factors” to Learning Tree’s Annual Report on


Form 10-K (“Exhibit 99.1”). Please read that exhibit carefully. Some of the factors discussed in Exhibit 99.1 that could affect Learning Tree include: 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.

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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     Six Months Ended  
     (Unaudited)     (Unaudited)  
     March 31,
2006
    April 1,
2005
    March 31,
2006
    April 1,
2005
 
           (restated)           (restated)  

Revenues

   $ 34,282     $ 34,865     $ 74,087     $ 74,627  

Costs of revenues

     18,272       18,459       37,225       37,301  
                                

Gross profit

     16,010       16,406       36,862       37,326  
                                

Operating expenses:

        

Course development

     2,436       2,010       4,734       3,815  

Sales and marketing

     11,384       11,448       20,725       21,236  

General and administrative

     6,012       6,570       12,267       13,320  
                                

Total operating expenses

     19,832       20,028       37,726       38,371  
                                

Loss from operations

     (3,822 )     (3,622 )     (864 )     (1,045 )

Other income, net

     842       649       1,502       1,124  
                                

(Loss) Income before income taxes

     (2,980 )     (2,973 )     638       79  

Income tax (benefit) provision

     (1,082 )     (2,112 )     293       53  
                                

Net (loss) income

   $ (1,898 )   $ (861 )   $ 345     $ 26  
                                

(Loss) earnings per common share

   $ (0.11 )   $ (0.05 )   $ 0.02     $ 0.00  
                                

(Loss) earnings per common share assuming dilution

   $ (0.11 )   $ (0.05 )   $ 0.02     $ 0.00  
                                

LEARNING TREE INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(all amounts in thousands)

 

    

March 31,

2006

  

September 30,

2005

     
     (Unaudited)     

Cash and investments

   $ 75,071    $ 75,291

Accounts receivable

     13,671      15,568

Prepaid taxes and other expenses

     8,635      8,078
             

Total current assets

     97,377      98,937

Equipment, long-term investments and other

     35,156      33,041
             

Total assets

   $ 132,533    $ 131,978
             

Accounts payable and accrued liabilities

   $ 16,750    $ 19,064

Deferred revenue

     47,278      44,956
             

Total current liabilities

     64,028      64,020

Other

     7,488      6,949
             

Total liabilities

     71,516      70,969
             

Stockholders’ equity

     61,017      61,009
             

Total liabilities and stockholders’ equity

   $ 132,533    $ 131,978
             

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