Learning Tree International Announces Third Quarter FY 2014 Results

  Learning Tree International Announces Third Quarter FY 2014 Results

Business Wire

RESTON, Va. -- August 7, 2014

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.”


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 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

(all amounts in thousands, except per share amounts)

                       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 
Course development       1,950          1,998          5,726          6,029
Sales and                6,283          6,764          18,634         21,881
General and             7,086        5,043        18,290       20,037 
Total operating         15,319       13,805       42,650       47,947 
Loss from                (2,692 )       (988   )       (6,056 )       (6,187 )
Other income            22           32           (61    )      219    
(expense), net
Loss before income       (2,670 )       (956   )       (6,117 )       (5,968 )
Provision for           76           123          503          542    
income tax
Net loss               $ (2,746 )     $ (1,079 )     $ (6,620 )     $ (6,510 )
Loss per share         $ (0.21  )     $ (0.08  )     $ (0.50  )     $ (0.49  )

Table 2

(all amounts in thousands)
                                               June 27,        September 27,
                                               2014            2013
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 International
Max Shevitz
Tel: 703/925-5590
Email: max_shevitz@learningtree.com
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