Learning Tree International Receives Non-Compliance Notice From NASDAQ
May 21 15
On May 20, 2015, Learning Tree International, Inc. received notice from The NASDAQ Stock Market LLC (Nasdaq) that the Company is not in compliance with Rule 5450 of the Nasdaq Listing Rules. Rule 5450 of the Listing Rules requires a company to maintain a minimum of $10,000,000 in stockholders’ equity for continued listing on The Nasdaq Global Market. The Company reported stockholders’ equity of $6,479,000 in its quarterly report on Form 10-Q for the period ended April 3, 2015, and no longer complies with Rule 5450 of the Listing Rules. The Listing Rules provide a period of 45 calendar days after receiving the Notice for the Company to submit a plan to regain compliance with the requirement for a minimum stockholders’ equity. In determining whether to accept the Company’s plan, Nasdaq will consider such things as the likelihood that the plan will result in compliance with Nasdaq’s continued listing criteria, the Company’s past compliance history, the reasons for the Company’s current non-compliance, other corporate events that may occur within Nasdaq’s review period, the Company’s overall financial condition and its public disclosures. If the Company’s plan, if any, were to be accepted, Nasdaq can grant an extension of up to 180 calendar days from the date of the Notice to evidence compliance. If Nasdaq were not to accept the plan, the Company would have the opportunity to appeal that decision to a Hearings Panel under Rule 5815 of the Listing Rules. Alternatively, the Company may consider applying to transfer its securities to The Nasdaq Capital Market (the “Capital Market”), provided it then meets the Capital Market’s listing requirements. The Company intends to consider all available options to regain compliance with the Global Market listing requirements. There can be no assurance that the Company will develop a plan to regain compliance with Rule 5450, that Nasdaq will accept such plan, that any such plan will be successful, that the Company will appeal any determination by Nasdaq to reject the plan, that Nasdaq will grant any such appeal, that the Company will meet the listing requirements of the Capital Market, or that the Company will be able to regain or subsequently maintain compliance with the requirements for continued listing under the Listing Rules for the Global Market or the Capital Market (including, but not limited to, with respect to the failure to maintain a minimum stockholders’ equity). Failure to maintain listing on Nasdaq of the Company’s common stock may have a material adverse effect on the price or liquidity of the common stock.
Learning Tree International Inc. Announces Unaudited Consolidated Financial Results for the Second Quarter and Six Months Ended April 3, 2015; Provides Earnings Guidance for the Third Quarter of Fiscal 2015
May 14 15
Learning Tree International Inc. announced unaudited consolidated financial results for the second quarter and six months ended April 3, 2015. In its second quarter of fiscal year 2015, the company reported revenues from continuing operations of $22.2 million, loss from continuing operations of $4.9 million, loss from discontinued operations of $3.0 million, and net loss of $7.9 million, or $0.60 per diluted share. These results compare with revenues from continuing operations of $23.2 million, loss from continuing operations of $3.9 million, loss from discontinued operations of $0.7 million, and net loss of $4.6 million, or $0.35 per diluted share in its second quarter of fiscal year 2014. Loss from operations was $4,992,000 against $3,580,000 for the same period of last year. Loss from continuing operations before income taxes was $4,826,000 against $3,636,000 for the same period of last year. Earnings per basic and diluted share from continuing operations was $0.37 for the same period of last year.
For the six months, revenues were $46,552,000 against $51,295,000 for the same period of last year. Loss from operations was $6,423,000 against $3,427,000 for the same period of last year. Loss from continuing operations before income taxes was $6,036,000 against $3,519,000 for the same period of last year. Loss from continuing operations was $6,246,000 against $3,913,000 for the same period of last year. Net loss was $9,011,000 against $3,874,000 for the same period of last year. Earnings per basic and diluted share from continuing operations was $0.47 against $0.30 for the same period of last year. Basic and diluted loss per share was $0.68 against $0.29 for the same period of last year. During the first six months of fiscal year 2015, the total cash and cash equivalents from continuing operations decreased by $7.6 million to $22.3 million at April 3, 2015. This decrease primarily resulted from cash used in operating activities of $4.9 million, capital expenditures of $2.2 million and the effects of exchange rate changes on cash and cash equivalent of $0.5 million. The decline in operating performance has resulted in an increase in net cash used in operating activities, and it expects continued net cash usage in operating activities as it go forward.
For the third quarter of fiscal 2015, the company currently expects revenues from continuing operations of between $22.6 million and $23.6 million compared to revenues of $25.7 million in the third quarter of fiscal 2014. Expects gross profit percentage in the third quarter of fiscal 2015 of between 37.5% and 38.7% compared to 43.5% in the third quarter of fiscal 2014. It expects to incur a third quarter operating loss from continuing operations of between $3.9 million and $5 million compared with an operating loss from continuing operations of $2.8 million in the third quarter of fiscal 2014. Overall, the company expects to report pretax results from continuing operations for the third quarter of fiscal 2015 of between a loss of $3.9 million and a loss of $5.1 million compared with a pretax loss from continuing operations of $2.8 million in the third quarter of fiscal 2014. The valuation allowance against deferred tax assets in the U.S. makes the effective tax rate subject to significant fluctuation depending on small changes in the pretax income.
Learning Tree International Inc. to Report Q1, 2015 Results on May 14, 2015
May 5 15
Learning Tree International Inc. announced that they will report Q1, 2015 results at 4:30 PM, US Eastern Standard Time on May 14, 2015