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 THIRD QUARTER RESULTS

RESTON, VA—August 8, 2006—Learning Tree International, Inc. (NASDAQ: LTRE) announced today consolidated revenues and earnings for the third quarter and the first nine months of its 2006 fiscal year.

Revenues for the quarter ended June 30, 2006 were $41.2 million compared with $40.5 million for the same quarter of the prior year. Loss from operations for the quarter was $0.3 million compared with income from operations of $0.5 million for the same quarter of the prior year. Net income for the quarter was $0.6 million compared to a net loss of $0.8 million for the same quarter of the prior year. Net income per diluted share for the third quarter was $0.04 compared with a net loss per diluted share of $0.05 for the same quarter of the prior year. In the previous year’s quarter, a one-time tax expense of $1.1 million was recorded which resulted in a net loss for the third quarter of 2005.

Revenues for the nine months ended June 30, 2006 were $115.3 million compared with $115.1 million for the same period of the prior year. Loss from operations for the nine months was $1.2 million compared with a loss from operations of $0.6 million for the same period of the prior year. Net income for the nine months was $1.0 million compared with a net loss of $0.7 million for the same period of the prior year. Net income per diluted share for the first nine months ended June 30, 2006 was $0.06 compared with a net loss per diluted share of $0.04 for the same period of the prior year.

“We are pleased to have improved our gross margin compared with the same quarter last year and also to have exceeded our revenue expectations for this quarter,” commented Nicholas Schacht, Learning Tree’s President and CEO. “Our total operating expenses this quarter included increased investment in our course development program as well as one-time costs incurred related to our new Education Center in New York City. These initiatives reflect our continued commitment to investing in our business to improve our profitability, grow our revenues and expand 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     Nine Months Ended  
     (Unaudited)     (Unaudited)  
     June 30,
2006
    July 1,
2005
    June 30,
2006
   

July 1,

2005

 
           (restated)           (restated)  

Revenues

   $ 41,218     $ 40,474     $ 115,305     $ 115,101  

Costs of revenues

     20,321       20,465       57,546       57,766  
                                

Gross profit

     20,897       20,009       57,759       57,335  
                                

Operating expenses:

        

Course development

     2,854       2,028       7,588       5,843  

Sales and marketing

     11,515       11,421       32,240       32,657  

General and administrative

     6,823       6,079       19,090       19,399  
                                

Total operating expenses

     21,192       19,528       58,918       57,899  
                                

(Loss) income from operations

     (295 )     481       (1,159 )     (564 )

Other income, net

     998       548       2,501       1,672  
                                

Income before income taxes

     703       1,029       1,342       1,108  

Income tax provision

     97       1,789       390       1,842  
                                

Net income (loss)

   $ 606     $ (760 )   $ 952     $ (734 )
                                

Earnings (loss) per share - basic

   $ 0.04     $ (0.05 )   $ 0.06     $ (0.04 )
                                

Earnings (loss) per share - diluted

   $ 0.04     $ (0.05 )   $ 0.06     $ (0.04 )
                                

LEARNING TREE INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(all amounts in thousands)

 

    

June 30,

2006

   September 30,
2005
     (Unaudited)     

Cash and investments

   $ 70,693    $ 75,291

Accounts receivable

     18,349      15,568

Prepaid taxes and other expenses

     7,930      8,078
             

Total current assets

     96,972      98,937

Equipment, long-term investments and other

     40,427      33,041
             

Total assets

   $ 137,399    $ 131,978
             

Accounts payable and accrued liabilities

   $ 18,685    $ 19,064

Deferred revenue

     48,875      44,956
             

Total current liabilities

     67,560      64,020

Other

     8,095      6,949
             

Total liabilities

     75,655      70,969
             

Stockholders’ equity

     61,744      61,009
             

Total liabilities and stockholders’ equity

   $ 137,399    $ 131,978
             

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