Learning Care (NASDAQ:LCGI)
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Learning Care Group, Inc. (NASDAQ:LCGI) today announced
operating results for the 12 weeks (fourth quarter 2005) and 52 weeks
(fiscal 2005) ended April 1, 2005. The Company's return to
profitability (first positive annual net income since fiscal 2000) and
continued strong comparable center revenues (centers opened more than
18 months) highlight the fiscal year end results.
Net revenue for fiscal 2005 increased $10.7 million, or 5.3%, from
fiscal 2004 to $212.2 million. This increase was net of a reduction of
$4.1 million due to an additional week in fiscal 2004 (53 weeks).
Learning Center revenues increased $10.2 million or 5.2% from fiscal
2004, of which $4.9 million related to Childtime centers and $5.3
million related to Tutor Time centers revenue. Childtime and Tutor
Time comparable center revenues increased 5.5% and 6.4%, respectively,
for fiscal 2005. Franchise Operations revenue increased $0.5 million
for fiscal 2005, primarily as a result of revenue increases
experienced by the Company's franchisees. Tutor Time franchisee-owned
centers reported revenue of $130.1 million for fiscal 2005, an
increase of 5.0% from the same period last year, with comparable
center revenues increasing 7.0% over fiscal 2004. Fiscal 2005
systemwide sales grew to $335.0 million, an increase of 5.1% from
fiscal 2004.
"We have made dramatic improvements in our operating performance
and have returned the company to profitability," stated Bill Davis,
President and Chief Executive Officer. "In fact, our fourth quarter
results, when compared to the same quarter in fiscal 2004, showed
significant improvement despite one less week in the accounting
calendar. Driven by strong comp revenue performance in each of our
brands, we are pleased to see this momentum continuing into the first
quarter of fiscal 2006."
Net revenue for fourth quarter 2005 decreased $0.8 million or 1.5%
from fourth quarter 2004 to $51.8 million. Net revenues were reduced
by $4.1 million as a result of an additional week in fourth quarter
2004 (13 weeks). Learning Center revenue decreased $0.6 million, of
which $0.4 million related to Childtime centers revenue and $0.2
million related to Tutor Time centers revenue. Childtime, Tutor Time
and Tutor Time franchisee-owned centers reported comparable center
revenues increased 6.6%, 6.8% and 8.2%, respectively, for the quarter.
Gross profit for fiscal 2005 increased $3.6 million, or 13.8%,
from fiscal 2004 to $29.8 million. Gross profit for fiscal 2005 was
14.0% of net revenue, an improvement of 1.0% from 13.0% in 2004. These
increases were a result of increased Learning Center Operations
revenues, improved labor efficiency and increased Franchise Operations
revenue.
Gross profit for fourth quarter 2005 increased $0.7 million, or
8.5%, to $8.9 million from the same period last year. Gross profit for
fourth quarter 2005 was 17.1% of net revenue, an improvement of 1.6%
from 15.5% in fourth quarter 2004.
Net income/loss for fiscal 2005 improved $4.1 million from fiscal
2004 to $3.1 million compared to a loss of ($0.9) million for fiscal
2004. The improvement was primarily attributable to increased gross
profit of $3.6 million, a gain on sale of centers and vacant land of
$0.7 million and increased contribution from discontinued operations
of $0.6 million, partially offset by increased general and
administrative expenses of $0.4 million, depreciation and amortization
expenses of $0.4 million and provision for doubtful accounts of $0.2
million.
Net income for fourth quarter 2005 improved to $2.3 million from
$1.5 million during the same period last year. The improvement was
primarily attributable to increased gross profit of $0.7 million and
an increase attributable to discontinued operations of $0.2 million,
partially offset by increased depreciation and amortization expenses
of $0.2 million and provisions for doubtful accounts of $0.2 million.
Fiscal 2005 income per share was $0.16 on a basic and $0.15 on a
diluted basis, as compared to ($0.05) on a basic and diluted basis for
fiscal 2004.
Fourth quarter 2005 income per share was $0.12 on a basic and
$0.11 on a diluted basis, as compared to $0.07 on a basic and diluted
basis for the same period last year.
"Now that we have strong foundations in place, we are pursuing a
growth strategy focused on our Tutor Time franchise business,"
explained Davis. "We are not only selling franchises to new prospects,
we are also growing the number of locations for our existing franchise
base. We are confident that this growth strategy, when partnered with
our focus on continued operational excellence, will allow us to
maximize profitable growth in the future."
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Selected Income Statement Data
(In thousands, except per share data)
======================================================================
12 Weeks Ended 13 Weeks Ended 52 Weeks Ended 53 Weeks Ended
======================================================================
April 1, 2005 April 2, 2004 April 1, 2005 April 2, 2004
----------------------------------------------------------------------
Revenue,
net $ 51,884 $ 52,678 $ 212,174 $ 201,463
----------------------------------------------------------------------
Gross
profit $ 8,859 $ 8,165 $ 29,777 $ 26,166
----------------------------------------------------------------------
Net income
(loss) $ 2,254 $ 1,452 $ 3,142 $ (923)
----------------------------------------------------------------------
Basic
income
(loss)
per share $ 0.12 $ 0.07 $ 0.16 $ (0.05)
----------------------------------------------------------------------
Diluted
income
(loss)
per share $ 0.11 $ 0.07 $ 0.15 $ (0.05)
======================================================================
Selected Balance Sheet Data
(in thousands)
======================================================================
April 1, April 2,
2005 2004
----------------------------------------------------------------------
Total Current Assets $ 15,771 $ 16,191
----------------------------------------------------------------------
Total Assets $ 87,357 $ 85,619
----------------------------------------------------------------------
Total Current Liabilities $ 25,126 $ 28,133
----------------------------------------------------------------------
Total Liabilities $ 47,023 $ 48,613
----------------------------------------------------------------------
Shareholders' Equity $ 40,334 $ 37,006
======================================================================
*T
About Learning Care Group, Inc.
Learning Care Group, Inc. is the parent company of Tutor Time
Child Care/Learning Centers and Childtime Learning Centers. As one of
the nation's premier child care providers, the Company has grown into
a network of 459 centers, including operations in 25 states and
internationally. For more information on the Learning Care Group
please call 248-697-9000 or visit www.learningcaregroup.com.
Statements included herein that are not historical facts are
forward-looking statements pursuant to the safe harbor provisions of
the Private/Securities Litigation Reform Act of 1995. Forward-looking
statements, including beliefs of future profitability, involve a
number of risks and uncertainties, including, but not limited to,
continuation of federal and state assistance programs, demand for
child care as well as general economic conditions, pricing and
competition. Accordingly, actual results could differ materially from
those projected in such forward-looking statements.