RESTON, VA (April 7, 2010)
Learning Tree International (NASDAQ NGM: LTRE), the leading global provider of highly effective training for managers and information technology professionals, today announced that it has finalized a settlement with the U.S. Government of previously disclosed claims. The terms of the settlement, including a $4.5 million cash payment, were consistent with the Company’s previous announcements, and the Company had fully reserved for the impact in its financial statements before the end of its fiscal year 2009.
As previously disclosed, the disagreement concerned the terms of the Company’s passport and voucher programs, commencing in 1996. Although these terms were identical to the terms offered by Learning Tree to its other customers, the government contended that the program’s expiration and prepayment terms violated the contract and applicable government regulations.
“While we continue to believe that we complied with the terms of our contracts, we decided to settle this issue because it made no sense to continue a dispute with one of our best customers,” commented Nick Schacht, the Company’s Chief Executive Officer. “We are pleased that throughout our discussions, the United States government has continued to send tens of thousands of attendees to our courses each year, who continue to give our courses outstanding marks. With this behind us, we look forward to continuing this long and mutually beneficial relationship.”
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.
Safe Harbor Statement
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.