Learning Tree International Announces Third Quarter FY 2014 Results

Learning Tree International (NASDAQ: LTRE) announced today its revenues and results of operations for its third quarter of fiscal year 2014, which ended June 27, 2014.

In its third quarter of fiscal year 2014, Learning Tree reported revenues of $28.8 million, loss from operations of $2.7 million, and net loss of $2.7 million or ($0.21) per share. These results compare with revenues of $29.0 million, loss from operations of $1.0 million and net loss of $1.1 million, or ($0.08) per share in its third quarter of fiscal year 2013.

“Revenues in our third quarter of fiscal 2014 were relatively consistent with those of the same quarter of our prior year. The increase in our operating loss and net loss for our third quarter this year compared to the same quarter last year was largely the result of several one-time, non-recurring items,” said Learning Tree President, Max Shevitz. “These included certain restructuring and severance charges this year, in contrast with the reversal of a non-recurring charge in our third quarter of our prior fiscal year. Together, these one-time items account for approximately $1.5 million of the increase in operating loss quarter over quarter.”

Webcast

An investor conference call to discuss third quarter fiscal year 2014 results is scheduled for 4:30 p.m. (ET) August 7, 2014. Interested parties may access the conference call via live webcast at: www.learningtree.com/investor. The webcast will also be available for replay at: www.learningtree.com/investor.

About Learning Tree International

Established in 1974, Learning Tree International is a global provider of hands-on IT and management training. 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, leadership, and management and business skills. Participants can attend our courses at Learning Tree Education Centers around the world, on-site at client facilities, or over the Internet utilizing Learning Tree AnyWare™ from their home, their office, or at one of our AnyWare Learning Centers™. For more information about Learning Tree products and services, call 1-888-THE-TREE (1-888-843-8733), or visit the Learning Tree Web site at www.learningtree.com.

Cautionary Statement Regarding Forward Looking Statements

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 for fiscal year 2013 (“Item 1A”). Please read Item 1A carefully. Some of the factors discussed in Item 1A that could affect Learning Tree include 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; efficient delivery and scheduling of Learning Tree's courses; adverse weather conditions, strikes, acts of war or terrorism and other external events; reliance on key vendors for technical services and support; attracting and retaining qualified personnel; and continued uncertainty over the U. S. Government’s ability to resolve its budgetary issues and avoid further disruptions such as government shutdowns and debt ceiling limits.

Table 1

LEARNING TREE INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

        
      
      
        
          (all amounts in thousands, except per share amounts)
        
      
      
        
          (Unaudited)
        
      
      
        
           
        
      
      
        
        
        
           
        
        
           
        
        
        
        
        
        
        
        
           
        
        
           
        
        
        
        
        
        
        
        
           
        
        
           
        
        
        
        
        
        
        
        
           
        
        
           
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
          Three Months Ended
        
        
        
        
        
        
          Nine Months Ended
        
      
      
        
        
        
        
        
        
        
          June 27,
        
        
        
        
        
        
          June 28,
        
        
        
        
        
        
          June 27,
        
        
        
        
        
        
          June 28,
        
      
      
        
        
        
        
        
        
        
          2014
        
        
        
        
        
        
          2013
        
        
        
        
        
        
          2014
        
        
        
        
        
        
          2013
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Revenues
        
        
        
        
        
        
          $
        
        
          28,759
        
        
        
        
        
        
        
        
          $
        
        
          28,958
        
        
        
        
        
        
        
        
          $
        
        
          85,785
        
        
        
        
        
        
        
        
          $
        
        
          89,181
        
        
        
      
      
        
          Cost of revenues
        
        
        
        
        
        
           
        
        
          16,132
        
        
           
        
        
        
        
        
        
           
        
        
          16,141
        
        
           
        
        
        
        
        
        
           
        
        
          49,191
        
        
           
        
        
        
        
        
        
           
        
        
          47,421
        
        
           
        
      
      
        
          Gross profit
        
        
        
        
        
        
           
        
        
          12,627
        
        
           
        
        
        
        
        
        
           
        
        
          12,817
        
        
           
        
        
        
        
        
        
           
        
        
          36,594
        
        
           
        
        
        
        
        
        
           
        
        
          41,760
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Operating expenses:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Course development
        
        
        
        
        
        
        
        
          1,950
        
        
        
        
        
        
        
        
        
        
          1,998
        
        
        
        
        
        
        
        
        
        
          5,726
        
        
        
        
        
        
        
        
        
        
          6,029
        
        
        
      
      
        
          Sales and marketing
        
        
        
        
        
        
        
        
          6,283
        
        
        
        
        
        
        
        
        
        
          6,764
        
        
        
        
        
        
        
        
        
        
          18,634
        
        
        
        
        
        
        
        
        
        
          21,881
        
        
        
      
      
        
          General and administrative
        
        
        
        
        
        
           
        
        
          7,086
        
        
           
        
        
        
        
        
        
           
        
        
          5,043
        
        
           
        
        
        
        
        
        
           
        
        
          18,290
        
        
           
        
        
        
        
        
        
           
        
        
          20,037
        
        
           
        
      
      
        
          Total operating expenses
        
        
        
        
        
        
           
        
        
          15,319
        
        
           
        
        
        
        
        
        
           
        
        
          13,805
        
        
           
        
        
        
        
        
        
           
        
        
          42,650
        
        
           
        
        
        
        
        
        
           
        
        
          47,947
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loss from operations
        
        
        
        
        
        
        
        
          (2,692
        
        
          )
        
        
        
        
        
        
        
        
          (988
        
        
          )
        
        
        
        
        
        
        
        
          (6,056
        
        
          )
        
        
        
        
        
        
        
        
          (6,187
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Other income (expense), net
        
        
        
        
        
        
           
        
        
          22
        
        
           
        
        
        
        
        
        
           
        
        
          32
        
        
           
        
        
        
        
        
        
           
        
        
          (61
        
        
          )
        
        
        
        
        
        
           
        
        
          219
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loss before income taxes
        
        
        
        
        
        
        
        
          (2,670
        
        
          )
        
        
        
        
        
        
        
        
          (956
        
        
          )
        
        
        
        
        
        
        
        
          (6,117
        
        
          )
        
        
        
        
        
        
        
        
          (5,968
        
        
          )
        
      
      
        
          Provision for income tax
        
        
        
        
        
        
           
        
        
          76
        
        
           
        
        
        
        
        
        
           
        
        
          123
        
        
           
        
        
        
        
        
        
           
        
        
          503
        
        
           
        
        
        
        
        
        
           
        
        
          542
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net loss
        
        
        
        
        
        
          $
        
        
          (2,746
        
        
          )
        
        
        
        
        
        
          $
        
        
          (1,079
        
        
          )
        
        
        
        
        
        
          $
        
        
          (6,620
        
        
          )
        
        
        
        
        
        
          $
        
        
          (6,510
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loss per share diluted
        
        
        
        
        
        
          $
        
        
          (0.21
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.08
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.50
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.49
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    
      
        
           
        
      
      
        
          

Table 2

LEARNING TREE INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

        
      
      
        
          (all amounts in thousands)
        
      
      
        
        
        
           
        
        
           
        
        
        
        
        
        
           
        
        
           
        
        
        
        
        
      
      
        
        
        
        
        
        
        
          June 27,
        
        
        
        
        
        
          September 27,
        
      
      
        
        
        
        
        
        
        
          2014
        
        
        
        
        
        
          2013
        
      
      
        
        
        
        
        
        
        
          (unaudited)
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cash and cash equivalents
        
        
        
        
        
        
          $
        
        
          21,591
        
        
        
        
        
        
          $
        
        
          26,583
        
      
      
        
          Trade accounts receivable, net
        
        
        
        
        
        
        
        
          16,204
        
        
        
        
        
        
        
        
          14,057
        
      
      
        
          Prepaid expenses and other
        
        
        
        
        
        
        
        
          6,310
        
        
        
        
        
        
        
        
          6,152
        
      
      
        
          Assets held for sale
        
        
        
        
        
        
           
        
        
          3,582
        
        
        
        
        
        
           
        
        
          -
        
      
      
        
          Total current assets
        
        
        
        
        
        
        
        
          47,687
        
        
        
        
        
        
        
        
          46,792
        
      
      
        
          Depreciable assets, net and other
        
        
        
        
        
        
           
        
        
          14,997
        
        
        
        
        
        
           
        
        
          22,170
        
      
      
        
          Total assets
        
        
        
        
        
        
          $
        
        
          62,684
        
        
        
        
        
        
          $
        
        
          68,962
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Accounts payable and accrued liabilities
        
        
        
        
        
        
          $
        
        
          16,833
        
        
        
        
        
        
          $
        
        
          15,317
        
      
      
        
          Deferred revenues
        
        
        
        
        
        
           
        
        
          28,384
        
        
        
        
        
        
           
        
        
          29,780
        
      
      
        
          Total current liabilities
        
        
        
        
        
        
        
        
          45,217
        
        
        
        
        
        
        
        
          45,097
        
      
      
        
          Other
        
        
        
        
        
        
           
        
        
          7,818
        
        
        
        
        
        
           
        
        
          8,204
        
      
      
        
          Total liabilities
        
        
        
        
        
        
           
        
        
          53,035
        
        
        
        
        
        
           
        
        
          53,301
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Stockholders' equity
        
        
        
        
        
        
           
        
        
          9,649
        
        
        
        
        
        
           
        
        
          15,661
        
      
      
        
          Total liabilities and stockholders' equity
        
        
        
        
        
        
          $
        
        
          62,684
        
        
        
        
        
        
          $
        
        
          68,962
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    

Learning Tree InternationalMax ShevitzPresidentTel: 703/925-5590Email: [e-mail]