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8-K - FORM 8-K - LEARNING TREE INTERNATIONAL, INC.d392044d8k.htm

Exhibit 99.1

LEARNING TREE ANNOUNCES THIRD QUARTER FISCAL YEAR 2012 RESULTS

RESTON, VA (August 7, 2012) Learning Tree International, Inc. (NASDAQ: LTRE) announced today its revenues and results of operations for its third quarter of fiscal year 2012, which ended June 29, 2012.

In its third quarter of fiscal year 2012, Learning Tree reported revenues of $33.0 million, loss from operations of $2.1 million, and net loss of $6.8 million or $0.50 per share. During the third quarter, the Company took a one-time charge of $4.2 million to establish a valuation allowance against deferred tax assets in the U.S. These results compare with revenues of $33.5 million, income from operations of $1.0 million, and net income of $0.6 million or $0.05 per share in its third quarter of fiscal year 2011.

“Our focus continues to be on those investments we expect will ultimately result in long-term growth for the company,” said Learning Tree President Max Shevitz. “We believe that we are on the right path with the changes we are implementing and have metrics in place to continuously gauge the effects of our changes on the company’s performance. Over time, these changes have the potential to achieve our goals of revenue growth and improved margins; however, the positive impact of those changes may not be felt for several quarters to come.”

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 2012 results is scheduled at 4:30 p.m. (EST) August 7, 2012. Interested parties are invited to listen to the conference call by accessing the webcast live on Learning Tree’s web site www.learningtree.com/investor. The webcast will also be available at www.learningtree.com/investor for replay.

Contact Information

Max Shevitz

President

Learning Tree International

Phone: (703) 709-9119

max_shevitz@learningtree.com


Table 1

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  
     June 29,     July 1,      June 29,     July,  
     2012     2011      2012     2011  

Revenues

   $ 33,041      $ 33,458       $ 96,958      $ 99,492   

Cost of revenues

     15,642        15,913         45,834        46,522   
  

 

 

   

 

 

    

 

 

   

 

 

 

Gross profit

     17,399        17,545         51,124        52,970   
  

 

 

   

 

 

    

 

 

   

 

 

 

Operating expenses:

         

Course development

     2,165        1,872         6,356        5,691   

Sales and marketing

     9,707        7,811         25,577        23,536   

General and administrative

     7,652        6,901         22,009        21,420   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total operating expenses

     19,524        16,584         53,942        50,647   
  

 

 

   

 

 

    

 

 

   

 

 

 

Income (loss) from operations

     (2,125     961         (2,818     2,323   

Other income, net

     309        26         164        12   
  

 

 

   

 

 

    

 

 

   

 

 

 

Income (loss) before income taxes

     (1,816     987         (2,654     2,335   

Provision for income tax

     4,962        342         4,408        723   
  

 

 

   

 

 

    

 

 

   

 

 

 

Net income (loss)

   $ (6,778   $ 645       $ (7,062   $ 1,612   
  

 

 

   

 

 

    

 

 

   

 

 

 

Earnings (loss) per share—diluted

   $ (0.50   $ 0.05       $ (0.52   $ 0.12   
  

 

 

   

 

 

    

 

 

   

 

 

 

LEARNING TREE INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(all amounts in thousands)

 

     June 29,      September 30,  
     2012      2011  

Cash and cash equivalents

   $ 31,731       $ 40,293   

Available for sale securities

     8,473         2,352   

Trade accounts receivable, net

     15,107         18,220   

Prepaid expenses and other

     8,567         6,373   
  

 

 

    

 

 

 

Total current assets

     63,878         67,238   

Depreciable assets, net and other

     28,280         34,914   
  

 

 

    

 

 

 

Total assets

   $ 92,158       $ 102,152   
  

 

 

    

 

 

 

Accounts payable and accrued liabilities

   $ 19,801       $ 16,893   

Deferred revenues

     31,249         34,572   
  

 

 

    

 

 

 

Total current liabilities

     51,050         51,465   

Other

     12,174         12,936   
  

 

 

    

 

 

 

Total liabilities

     63,224         64,401   
  

 

 

    

 

 

 

Stockholders’ equity

     28,934         37,751   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 92,158       $ 102,152