Learning Tree International Announces Third Quarter FY 2013 Results

  Learning Tree International Announces Third Quarter FY 2013 Results

Business Wire

RESTON, Va. -- August 6, 2013

Learning Tree International (NASDAQ: LTRE) announced today its revenues and
results of operations for its third quarter of fiscal year 2013, which ended
June 28, 2013.

In its third quarter of fiscal year 2013, Learning Tree reported revenues of
$29.0 million, loss from operations of $1.0 million, and net loss of $1.1
million, or $0.08 per share. These results compare with revenues of $33.0
million, loss from operations of $2.1 million, and net loss of $6.8 million,
or $0.50 per share in its third quarter of fiscal year 2012.

“While we are beginning to realize the benefits of our commitment to further
improve the quality of the service and products that we provide to our
customers, sequestration and weak European economies continue to adversely
impact our financial results,” said Learning Tree President Max Shevitz. “We
have been through these interruptions in government spending several times
over our 39 year history and believe we have the experience to successfully
manage the business through this latest period of uncertainty in government
and government-contractor spending that has resulted from sequestration.”

Webcast

An investor conference call to discuss third quarter fiscal year 2013 results
is scheduled for 4:30 p.m. (ET)August 6, 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        Nine Months Ended
                             June 28,     June 29,     June 28,     June 29,
                             2013         2012         2013         2012
                                                                      
Revenues                     $ 28,958     $ 33,041     $ 89,181     $ 96,958
Cost of revenues               16,141      15,642      47,421      45,834 
Gross profit                   12,817      17,399      41,760      51,124 
                                                                      
Operating expenses:
Course development             1,998        2,165        6,029        6,356
Sales and marketing            6,764        9,707        21,881       25,577
General and administrative     5,043       7,652       20,037      22,009 
Total operating expenses       13,805      19,524      47,947      53,942 
                                                                      
Loss from operations           (988   )     (2,125 )     (6,187 )     (2,818 )
                                                                      
Other income (expense),        32          309         219         164    
net
                                                                      
Loss before income taxes       (956   )     (1,816 )     (5,968 )     (2,654 )
Provision (benefit) for        123         4,962       542         4,408  
income tax
                                                                      
Net loss                     $ (1,079 )   $ (6,778 )   $ (6,510 )   $ (7,062 )
                                                                      
Loss per share--diluted      $ (0.08  )   $ (0.50  )   $ (0.49  )   $ (0.52  )
                                                                      


LEARNING TREE INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(all amounts in thousands)
                                                        
                                             June 28,      September 28,
                                             2013          2012
                                             (unaudited)
                                                                
Cash and cash equivalents                    $   27,071    $    25,784
Available for sale securities                    -              6,131
Trade accounts receivable, net                   13,911         16,831
Prepaid expenses and other                       6,305          8,552
Total current assets                             47,287         57,298
Depreciable assets, net and other                22,779         31,748
Total assets                                 $   70,066    $    89,046
                                                                
Accounts payable and accrued liabilities     $   15,207    $    20,264
Deferred revenues                                29,456         31,899
Total current liabilities                        44,663         52,163
Other                                            8,302          12,377
Total liabilities                                52,965         64,540
                                                                
Stockholders' equity                             17,101         24,506
Total liabilities and stockholders' equity   $   70,066    $    89,046
                                                                

Contact:

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