Learning Tree International Announces Second Quarter FY 2014 Results

  Learning Tree International Announces Second Quarter FY 2014 Results

Business Wire

RESTON, Va. -- May 8, 2014

Learning Tree International (NASDAQ: LTRE) announced today its revenues and
results of operations for its second quarter of fiscal year 2014, which ended
March 28, 2014.

In its second quarter of fiscal year 2014, Learning Tree reported revenues of
$25.0 million, loss from operations of $4.3 million, and net loss of $4.6
million or ($0.35) per share. These results compare with revenues of $26.9
million, loss from operations of $3.8 million and net loss of $4.0 million, or
($0.30) per share in its second quarter of fiscal year 2013.

“The harsh winter weather we experienced in North America during our second
quarter of fiscal year 2014 adversely impacted our results of operations,”
said Learning Tree President, Max Shevitz. “The scope of the impact, however,
was less than it might have been, because many of the affected course
participants were able to change their plans from attending their courses at
our education centers to attending from their homes or offices by using
AnyWare™, our proprietary web-based attendance platform.”

Webcast

An investor conference call to discuss second quarter fiscal year 2014 results
is scheduled for 4:30 p.m. (ET)May 8, 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 atLearning 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        Six Months Ended
                             March 28,    March 29,    March 28,    March 29,
                             2014         2013         2014         2013
                                                                    
Revenues                     $ 25,004     $ 26,933     $ 57,026     $ 60,223
Cost of revenues              15,711     14,859     33,059     31,280 
Gross profit                  9,293      12,074     23,967     28,943 
                                                                    
Operating expenses:
Course development             1,839        1,930        3,776        4,031
Sales and marketing            6,195        7,312        12,351       15,117
General and administrative    5,571      6,667      11,204     14,994 
Total operating expenses      13,605     15,909     27,331     34,142 
                                                                    
Loss from operations           (4,312 )     (3,835 )     (3,364 )     (5,199 )
                                                                    
Other income (expense),       (47    )    206        (83    )    187    
net
                                                                    
Loss before income taxes       (4,359 )     (3,629 )     (3,447 )     (5,012 )
Provision for income tax      244        386        427        419    
                                                                    
Net loss                     $ (4,603 )   $ (4,015 )   $ (3,874 )   $ (5,431 )
                                                                    
Loss per share--diluted      $ (0.35  )   $ (0.30  )   $ (0.29  )   $ (0.41  )
                                                                    


LEARNING TREE INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(all amounts in thousands)
                                                        
                                             March 28,     September 27,
                                             2014          2013
                                             (unaudited)
                                                           
Cash and cash equivalents                    $   23,325    $    26,583
Trade accounts receivable, net                   13,887         14,057
Prepaid expenses and other                      6,260         6,152
Total current assets                             43,472         46,792
Depreciable assets, net and other               19,548        22,170
Total assets                                 $   63,020    $    68,962
                                                           
Accounts payable and accrued liabilities     $   14,877    $    15,317
Deferred revenues                               28,192        29,780
Total current liabilities                        43,069         45,097
Other                                           7,884         8,204
Total liabilities                               50,953        53,301
                                                           
Stockholders' equity                            12,067        15,661
Total liabilities and stockholders' equity   $   63,020    $    68,962
                                                           

Contact:

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