RESTON, VA (December 10, 2009)
Learning Tree International, Inc. (NASDAQ: LTRE) announced today its revenues and results of operations for its fourth quarter and fiscal year 2009, which ended October 2, 2009. Revenues for the quarter ended October 2, 2009 were $31.8 million, a 28% decrease from the same quarter of the prior fiscal year.
During the quarter, the company recorded an estimated liability in anticipation of settling a previously disclosed prior period claim by the United States Government. This had the effect of increasing G&A expense and reducing operating income by $4.2 million. As a result, the company reported a loss from operations of $1.4 million for the fourth quarter of fiscal 2009. Excluding this one-time $4.2 million expense, the company would have reported income from operations of $2.8 million. This compares to income from operations of $3.2 million for the same quarter of fiscal year 2008.
For the fourth quarter of fiscal 2009, the company reported a net after-tax loss of $1.4 million which reflects a one-time reduction of $2.7 million from the U.S. Government claim discussed above as well as $0.7 million from income tax associated with one-time dividends totaling $17.5 million that the company received from its wholly owned foreign subsidiaries. Excluding these two non-recurring items, the company would have reported net income from operations of $2.0 million for the quarter. This compares with net income of $2.8 million for the fourth quarter of fiscal year 2008. Loss per share for the fourth quarter of fiscal year 2009 was $0.10, compared with earnings per share of $0.17 for the same quarter of fiscal year 2008.
Revenues for Learning Tree’s fiscal year 2009 were $132.6 million, a decrease of 27% compared with $181.3 million for fiscal year 2008. Learning Tree’s income from operations for fiscal year 2009 was $2.0 million. Excluding the $4.2 million increase to G&A expense, the company would have had income from operations of $6.2 million. This compares to income from operations of $17.7 million for fiscal 2008.
Net income for fiscal year 2009 was $1.2 million, or $.08 per share. Excluding the $2.7 million after-tax impact of the U.S. Government claim discussed above and the income tax of $0.7 million associated with the one-time dividends described above, the company would have had net income of $4.6 million, or $0.30 per share for fiscal year 2009. This compares to net income of $13.8 million, or $0.83 per share, for fiscal year 2008.
“This past year we faced the most severe economic conditions that we’ve seen during our company’s 35-year history, and in response we significantly adjusted our business model,” commented Learning Tree President and CEO Nicholas R. Schacht. “I am pleased that our rapid and concerted actions resulted in our achieving fourth quarter income from current operations that was almost equal to last year’s, despite a material reduction in our revenues.”
Mr. Schacht also commented on the recent introduction of the Learning Tree AnyWare™ e-Learning platform: “We are pleased by our customers’ enthusiastic response to the introduction of AnyWare, which allows individuals located anywhere in the world to use an ordinary Internet connection to attend a live instructor-led class being conducted in a Learning Tree Education Center or at a customer location. Remote participants have real-time video of their instructor, their classmates and their instructor’s annotations. They participate fully in discussions, ask questions, collaborate in breakout sessions and complete the same hands-on exercises (with the same personal assistance from the instructor) as their classroom-based counterparts. Because of this complete involvement, AnyWare participants gain the full benefit of our courses, and achieve the same level of knowledge and skill transfer as our in-class participants.”
The one-time $4.2 million charge in the fourth quarter of fiscal year 2009 related to an anticipated settlement of a previously disclosed claim by the United States Government relating to the expiration and prepayment terms of the company's voucher and passport programs relating to prior fiscal years. Learning Tree continues to believe that it complied with the terms of its contracts, but has offered to settle the dispute by making a cash payment to the Government. Although the positions of the parties are close, there can be no assurance that agreement on a settlement of the matter will be reached, and the ultimate payment could be more or less than the amount reserved.
About Learning Tree International
Learning Tree International is a leading global provider of highly effective, hands-on training to information technology professionals and managers. Since 1974, over 65,000 organizations have relied on Learning Tree to enhance the professional skills of more than 2.1 million employees. 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; and leadership, management and business skills. Courses are presented globally at Learning Tree Education Centers, on-site at client facilities, and can be attended via Learning Tree AnyWare™, the Company’s proprietary technology that connects participants via the web to the actual classroom, from their workplace or home. For more information about our products and services, call 1-888-THE-TREE (1-888-843-8733), visit www.learningtree.com, follow @LearningTree on Twitter or visit Learning Tree International's Facebook fan page.
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: 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.
An investor conference call to discuss fourth quarter results is scheduled at 4:30 pm EST December 10, 2009. Interested parties are invited to listen to the conference call by accessing the webcast live on Learning Tree’s website. The webcast will also be available for replay.
Learning Tree International
Phone: (703) 925-5590
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