Herndon, VA., August 15, 2016
Learning Tree International, Inc. (OTCQX: LTRE) announced today its revenues and results of operations for its third quarter and the nine months to date of fiscal year 2016, which ended July 1, 2016.
In its third quarter of fiscal year 2016, Learning Tree reported revenues of $21.1 million, loss from continuing operations before income taxes of $2.8 million, and a net loss of $2.8 million, or $(0.21) per share. These results compare with revenues of $22.7 million, loss from continuing operations before income taxes of $4.1 million, and a net loss of $4.3 million, or $(0.33) per share, in Learning Tree’s third quarter of fiscal year 2015.
For the nine month period ended July 1, 2016, Learning Tree reported revenues of $59.9 million, loss from continuing operations before income taxes of $10.3 million, and a net loss of $10.5 million, or $(0.79) per share. These results compare with revenues of $69.3 million, loss from continuing operations before income taxes of $10.1 million, and a net loss of $13.3 million, or $(1.01) per share, for the nine month period ended July 3, 2015.
Learning Tree also announced that it has accelerated its comprehensive cost reduction program with the goal of significantly reducing its fiscal year 2017 overall expenses when compared to fiscal year 2016. These cost reductions are in addition to $6.2 million in reductions already achieved during the first nine months of fiscal year 2016. These further reductions are expected to right-size the Company’s operations, modernize its business operations to meet customer demand and preserve capital.
“In 2016 we have continued to examine all facets of our business, working to eliminate costs and improve efficiency while maintaining product and service quality” stated Richard Spires, the Chief Executive Officer of Learning Tree. “Our goal for fiscal year 2017 is for Learning Tree to have a positive operating income. We recognize the imperative to improve the financial performance of Learning Tree, with the objective of returning the Company to a growing and profitable business.”
Further, in addition to its cost reduction program, Learning Tree also announced it is exploring other strategic options available to it to enhance shareholder value. Learning Tree does not expect to comment further or update the market with any additional information on the strategic options it is evaluating, unless and until its Board of Directors deems disclosure appropriate or necessary.
Conference Call and Webcast
Learning Tree will host an investor conference call to discuss its results for the third quarter of fiscal year 2016 and future outlook at 4:30 p.m. ET, August 15, 2016. To participate, call (888) 339-2688 or +1 (617) 847-3007 (International Callers) and enter pass code: 798 807 73 at least five minutes before 4:30pm (ET) / 1:30pm (PT) on Monday, August 15, 2016; or, go to Learning Tree’s Investor website at www.learningtree.com/investor to gain access and listen to the live webcast. A webcast replay of the investor conference call is available for 90 days via the Internet through the Investor Relations section of Learning Tree’s website at www.learningtree.com/investor. We have also filed our Quarterly Report on Form 10-Q for our third quarter of fiscal year 2016 with the Securities and Exchange Commission (“SEC”) which is available at the SEC’s Internet site (http://www.sec.gov).
About Learning Tree International, Inc.
Established in 1974, Learning Tree International is a leading provider of IT training and management training to business and government organizations worldwide. In addition, Learning Tree provides IT Workforce Optimization Solutions – a modern approach that improves the adoption of skills and accelerates the implementation of technical and business processes required to improve IT service delivery.
To support both business and government organizations in their workforce optimization efforts, Learning Tree develops structured learning paths prior to training, and provides implementation services that extend the value of training long after a training event has concluded. These custom services include: needs assessments, skill gaps analyses, blended learning solutions, and project acceleration/process implementation workshops.
Over 2.4 million IT professionals have enhanced their knowledge, skills and abilities from Learning Tree’s hands-on instructor-led training by accessing a broad, proprietary library of courses on topics including: web development, cyber security, project management, Agile and best practice adoption, operating systems, database administration and programming, networking, cloud computing, big data, software design and development, business intelligence, activity-based intelligence, leadership, management and business skills, and more. Courses are offered at Learning Tree Education Centers around the world, on-site at client facilities, and live, online using AnyWare™ – Learning Tree’s superior, web-based attendance platform.
To learn more, call 1-888-THE-TREE (843-8733) or visit LearningTree.com
Cautionary Statement Regarding Forward Looking Statements
The statements contained herein that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on Learning Tree. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Learning Tree. There can be no assurance that future developments affecting Learning Tree will be the same as those anticipated. Learning Tree cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. Investors should not put undue reliance on these forward-looking statements, since they are based on key assumptions about future risks and uncertainties. Some of these risks and uncertainties that could affect Learning Tree and its business include, but are not limited to 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; a majority of our outstanding common stock is beneficially owned by our chairman and his spouse; efficient delivery and scheduling of Learning Tree’s courses; intellectual property, including having to defend potential infringement claims; risks associated with cyber security; adverse weather conditions, strikes, acts of war or terrorism and other external events; and attracting and retaining qualified personnel. Learning Tree is not undertaking any obligation to update forward-looking statements contained herein to reflect future events, developments or changed circumstances.
In order to help the reader assess the factors and risks in Learning Tree’s business that could cause actual results to differ materially from those expressed in the forward looking statements, Learning Tree discusses in its 2015 Annual Report on Form 10-K (“Form 10-K”) and in its 3rd Quarter 2016 Quarterly Report on Form 10-Q (“Form 10Q”) , those risks in Item 1A, “Risk Factors”. Please read the Form 10-K and the Form 10Q, including the Risk Factors included therein, which is filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).
Chief Financial Officer
Learning Tree International
Phone: (703) 925-6337
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Quarterly Consolidated Financial Statements PDF can be found here »