Learning Tree International Announces Second Quarter FY 2013 Results

  Learning Tree International Announces Second Quarter FY 2013 Results

Business Wire

RESTON, Va. -- May 09, 2013

Learning Tree International (NASDAQ: LTRE) announced today its revenues and
results of operations for its second quarter of fiscal year 2013, which ended
March 29, 2013.

In its second quarter of fiscal year 2013, Learning Tree reported revenues of
$26.9 million, loss from operations of $3.8 million, and net loss of $4.0
million or $0.30 per share. These results compare with revenues of $28.9
million, loss from operations of $3.5 million and net loss of $2.1 million, or
$0.16 per share in its second quarter of fiscal year 2012.

“The economic conditions that exist in Europe and the effect of federal budget
cuts on our US business due to sequestration may continue to adversely impact
our financial results in the near future,” said Learning Tree President Max
Shevitz. “However, over the past year, we have made significant improvements
to the quality of the service and products which we provide to our customers.
We believe that these improvements have already partially offset the effects
of the adverse headwinds we’ve been facing, and will position us well for the
future.”

Webcast

An investor conference call to discuss second quarter fiscal year 2013 results
is scheduled for 4:30 p.m. (ET)May 9, 2013. 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. Courses are offered atLearning Tree Education Centers and
training locations around the world, on-site at client facilities, or via the
Internet with Learning Tree AnyWare™, the company’s web-based,
remote-attendance platform. 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
(“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; and attracting and retaining qualified
personnel.

                                                               
                                                                      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        Six Months Ended
                             March 29,    March 30,    March 29,    March 30,
                             2013         2012         2013         2012
                                                                      
Revenues                     $ 26,933     $ 28,942     $ 60,223     $ 63,917
Cost of revenues               14,859      14,558      31,280      30,192 
Gross profit                   12,074      14,384      28,943      33,725 
                                                                      
Operating expenses:
Course development             1,930        2,070        4,031        4,191
Sales and marketing            7,312        8,360        15,117       15,870
General and administrative     6,667       7,468       14,994      14,357 
Total operating expenses       15,909      17,898      34,142      34,418 
                                                                      
Loss from operations           (3,835 )     (3,514 )     (5,199 )     (693   )
                                                                      
Other income (expense),        206         (191   )     187         (145   )
net
                                                                      
Loss before income taxes       (3,629 )     (3,705 )     (5,012 )     (838   )
Provision (benefit) for        386         (1,586 )     419         (554   )
income tax
                                                                      
Net loss                     $ (4,015 )   $ (2,119 )   $ (5,431 )   $ (284   )
                                                                      
Loss per share--diluted      $ (0.30  )   $ (0.16  )   $ (0.41  )   $ (0.02  )


LEARNING TREE INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(all amounts in thousands)
                                                        
                                             March 29,     September 28,
                                             2013          2012
                                             (unaudited)
                                                                
Cash and cash equivalents                    $   26,317    $    25,784
Available for sale securities                    -              6,131
Trade accounts receivable, net                   13,307         16,831
Prepaid expenses and other                       8,953          8,552
Total current assets                             48,577         57,298
Depreciable assets, net and other                23,473         31,748
Total assets                                 $   72,050    $    89,046
                                                                
Accounts payable and accrued liabilities     $   15,976    $    20,264
Deferred revenues                                29,084         31,899
Total current liabilities                        45,060         52,163
Other                                            8,627          12,377
Total liabilities                                53,687         64,540
                                                                
Stockholders' equity                             18,363         24,506
Total liabilities and stockholders' equity   $   72,050    $    89,046

Contact:

Learning Tree International
Max Shevitz
President
703-925-5590
max_shevitz@learningtree.com
 
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