Learning Tree International Announces Third Quarter FY 2013 Results

Learning Tree International Announces Third Quarter FY 2013 Results

RESTON, Va.--(BUSINESS WIRE)-- Learning Tree International (NAS: LTRE) announced today its revenues and results of operations for its third quarter of fiscal year 2013, which ended June 28, 2013.

In its third quarter of fiscal year 2013, Learning Tree reported revenues of $29.0 million, loss from operations of $1.0 million, and net loss of $1.1 million, or $0.08 per share. These results compare with revenues of $33.0 million, loss from operations of $2.1 million, and net loss of $6.8 million, or $0.50 per share in its third quarter of fiscal year 2012.


"While we are beginning to realize the benefits of our commitment to further improve the quality of the service and products that we provide to our customers, sequestration and weak European economies continue to adversely impact our financial results," said Learning Tree President Max Shevitz. "We have been through these interruptions in government spending several times over our 39 year history and believe we have the experience to successfully manage the business through this latest period of uncertainty in government and government-contractor spending that has resulted from sequestration."

Webcast

An investor conference call to discuss third quarter fiscal year 2013 results is scheduled for 4:30 p.m. (ET) August 6, 2013. Interested parties may access the conference call via live webcast at: www.learningtree.com/investor. The webcast will also be available for replay at: www.learningtree.com/investor.

About Learning Tree International

Established in 1974, Learning Tree International is a global provider of hands-on IT and management training. 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™, the company's web-based, remote-attendance platform. 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.

Cautionary Statement Regarding Forward Looking Statements

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 Item 1A 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.

Table 1

LEARNING TREE INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(all amounts in thousands, except per share amounts)

(Unaudited)

Three Months Ended

Nine Months Ended

June 28,

June 29,

June 28,

June 29,

2013

2012

2013

2012

Revenues

$

28,958

$

33,041

$

89,181

$

96,958

Cost of revenues

16,141

15,642

47,421

45,834

Gross profit

12,817

17,399

41,760

51,124

Operating expenses:

Course development

1,998

2,165

6,029

6,356

Sales and marketing

6,764

9,707

21,881

25,577

General and administrative

5,043

7,652

20,037

22,009

Total operating expenses

13,805

19,524

47,947

53,942

Loss from operations

(988

)

(2,125

)

(6,187

)

(2,818

)

Other income (expense), net

32

309

219

164

Loss before income taxes

(956

)

(1,816

)

(5,968

)

(2,654

)

Provision (benefit) for income tax

123

4,962

542

4,408

Net loss

$

(1,079

)

$

(6,778

)

$

(6,510

)

$

(7,062

)

Loss per share--diluted

$

(0.08

)

$

(0.50

)

$

(0.49

)

$

(0.52

)

LEARNING TREE INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(all amounts in thousands)

June 28,

September 28,

2013

2012

(unaudited)

Cash and cash equivalents

$

27,071

$

25,784

Available for sale securities

-

6,131

Trade accounts receivable, net

13,911

16,831

Prepaid expenses and other

6,305

8,552

Total current assets

47,287

57,298

Depreciable assets, net and other

22,779

31,748

Total assets

$

70,066

$

89,046

Accounts payable and accrued liabilities

$

15,207

$

20,264

Deferred revenues

29,456

31,899

Total current liabilities

44,663

52,163

Other

8,302

12,377

Total liabilities

52,965

64,540

Stockholders' equity

17,101

24,506

Total liabilities and stockholders' equity

$

70,066

$

89,046



Learning Tree International
Max Shevitz
President
703-925-5590
max_shevitz@learningtree.com

KEYWORDS: United States North America Virginia

INDUSTRY KEYWORDS:

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