Learning Care (NASDAQ:LCGI)
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Learning Care Group Reports Improved Comparable Center Revenue
and Operating Results for the First Quarter of Fiscal 2005
NOVI, Mich., Sept. 7 /PRNewswire-FirstCall/ -- Learning Care Group, Inc.
(NASDAQ:LCGI) today announced operating results for the 16 weeks (first quarter
2005) ended July 23, 2004. Improved comparable center revenue (centers opened
18 months or longer) and operating results were the highlights for the quarter.
Net revenue for first quarter 2005 increased $4.2 million, or 6.8%, from the
same period last year to $66.5 million. Learning Center revenue increased $3.7
million. Increased revenue was achieved through a combination of increased
tuition rates and enrollments. Childtime Learning Centers revenue increased
$2.0 million, with comparable Childtime center revenue increasing 5.0%. Tutor
Time Learning Centers revenue increased $1.7 million, with comparable Tutor
Time center revenue increasing 6.8%. Franchise Operations revenue increased
$0.5 million, or 25.5%, from the same period last year to $2.3 million.
The increase in Franchise Operations revenue is a result of royalties generated
from revenue increases experienced by the Company's franchisees and franchise
fees. Tutor Time franchisee-owned centers reported revenue of $40.2 million
for the quarter, an increase of 11.4% from the same period last year, with
comparable center revenue increasing 8.7% for the quarter. First quarter 2005
systemwide sales, which includes revenue from franchisee-owned and
company-owned centers, grew to $104.0 million, an increase of 8.1% from the
same period last year.
Gross profit for first quarter 2005 increased $1.4 million, or 17.4%, from the
same period last year to $9.4 million. This increase consisted of a $0.9
million increase in Learning Center gross profit and a $0.5 million increase in
Franchise Operations gross profit. The increase in Learning Center gross
profit was primarily a result of revenue increases and decreases in personnel
expenses as a percentage of net revenue resulting from improved labor
efficiencies. The increase in Franchise Operations gross profit was the result
of increased revenue.
Operating income for first quarter 2005 increased $1.3 million from the same
period last year to $1.9 million. The improvement was primarily attributable
to increased gross profit ($1.4 million), and a gain on the sale of assets
($0.5 million) offset by increased general and administrative expenses ($0.6
million) and an increase in depreciation and amortization ($0.1 million).
Net income improved to $1.0 million for first quarter 2005, compared to a net
loss of ($0.3 million) for the same period last year. The improvement was
primarily attributable to increased operating income of $1.3 million.
First quarter 2005 net income per share was $0.05 on a basic and diluted basis
as compared to a net loss of ($0.02) on a basic and diluted basis for the same
period last year. On May 16, 2003, the Company completed a rights offering
under which it issued 14.1 million shares of common stock. Accordingly, the
weighted average shares outstanding were 19.8 million and 13.3 million for the
16 weeks ended July 23, 2004 and July 18, 2003, respectively.
Bill Davis, President and Chief Executive Officer commented, "During all of
fiscal 2004, we reported quarterly year over year improvements in operating
results, which were achieved primarily as a result of cost reductions. While
we continue to achieve cost reductions, we have increased our focus on revenue
growth, and this quarter our initiatives have resulted in strong comparable
center revenue gains. Comparable center revenue for the quarter increased 5.0%
for our Childtime centers and 6.8% for our Tutor Time centers, which compare to
less than 2.0% for fiscal 2003 and 2004. We are excited about the continued
operating improvements and the second consecutive quarter of positive net
income. We expect to see a continuation of strong comparable center revenue
and improvements in year over year operating results."
Selected Income Statement Data
($ in thousands, except per share data)
16 Weeks Ended
July 23, 2004 July 18, 2003
Revenue, net $66,525 $62,296
Gross profit $9,402 $8,011
Operating income $1,911 $640
Net income (loss) $957 $(270)
Basic and diluted net
income (loss) per share $0.05 $(0.02)
Selected Balance Sheet Data
(in thousands)
July 23, 2004 April 2, 2004
Total Current Assets $18,025 $16,191
Total Assets $87,775 $85,619
Total Current Liabilities $33,697 $28,133
Total Liabilities $49,782 $48,613
Shareholders' Equity $37,993 $37,006
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 465
centers, including operations in 27 states and internationally. For more
information on the Learning Care Group please call 248-697-9000 or visit
http://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.
DATASOURCE: Learning Care Group, Inc.
CONTACT: Frank M. Jerneycic of Learning Care Group, Inc.,
+1-248-697-9000
Web site: http://www.learningcaregroup.com/