Learning Tree International, Inc. (NASDAQ:LTRE) announced today its revenues and results of operations for its third quarter of fiscal year 2007, which ended June 29, 2007. Revenues for the quarter ended June 29, 2007 were $42.7 million, a 4% increase from the same quarter of the prior year. Learning Tree reported income from operations for the quarter of $5.0 million compared with a loss from operations of $0.4 million (restated) for the same quarter of the prior year. Net income for the third quarter of fiscal 2007 was $3.7 million, compared with net income (restated) of $0.5 million for the third quarter of fiscal 2006. Earnings per share for the third quarter of fiscal 2007 were $0.22, compared with $0.03 (restated) for the same quarter of the prior year.
Revenues for the first nine months of Learning Tree’s fiscal year 2007 were $123.0 million compared with $115.3 million for the first nine months of fiscal year 2006. Income from operations for the first nine months of fiscal year 2007 was $12.2 million compared with a restated loss from operations of $2.0 million (restated) for the same period of the prior year. Net income for the first nine months of fiscal 2007 was $9.2 million compared to restated net income of $0.4 million for the same period in fiscal year 2006. Earnings per share for the first nine months of fiscal year 2007 were $0.56, compared to $0.03 (restated) for the same period in the prior year. The accompanying Table 1 presents Learning Tree’s results of operations for the third quarter and the first nine months of fiscal year 2007.
“The significant growth in our quarterly and year-to-date operating income reflects our ongoing efforts to improve our profitability by increasing the efficiency of our operations,” commented Learning Tree President and CEO Nicholas R. Schacht. “We are also pleased to see modest revenue growth. Although we will continue to pursue improvements in our profitability, we believe that our infrastructure remains capable of handling a significantly greater volume of business activity without a proportionate increase in operating expense. To realize this potential, we are now increasing our focus on developing sustainable higher revenue growth rates.”
Learning Tree also announced that it would be filing amended 10-Q reports for its first and second quarters of fiscal 2007 to correct a misclassification appearing only on its cash flow statements, between Effect of Exchange Rate Changes on Cash and Cash Equivalents and Cash Flows from Operating Activities. These corrections do not affect Learning Tree’s previously reported income statements, balance sheets, earnings, cash balances, or working capital balances.
Learning Tree International is a leading worldwide provider of vendor-independent education and training to IT professionals and managers in business and government organizations. Learning Tree develops, markets and delivers a broad, proprietary library of instructor-led courses focused on Web development, operating systems, programming languages, databases, computer networks, computer and network security, object-oriented technology, project management, leadership, communications, business analysis, and strategic business skills. Learning Tree also tests and certifies IT and business professionals, and Learning Tree courses are recommended for college credit by the American Council on Education. In addition, Learning Tree is on the National Association of State Boards of Accountancy National Registry of CPE sponsors and is a Registered Education Provider of the Project Management Institute (PMI). For more information about Learning Tree products and services, call 1-800-THE-TREE (1-800-843-8733), or visit the Learning Tree Web site at www.learningtree.com.
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 the discussion that follows, 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 Exhibit 99.1, “Risk Factors” to Learning Tree’s Annual Report on Form 10-K (“Exhibit 99.1”). Please read that exhibit carefully. Some of the factors discussed in Exhibit 99.1 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.