Press Releases
LEARNING TREE ANNOUNCES FISCAL YEAR 2006 RESULTS
Reston, VA — April 30, 2007 - Learning Tree International, Inc. (NASDAQ: LTRE) announced today its revenues and results of operations for its fourth quarter and fiscal year ended September 29, 2006. The results for the fiscal year include the impact of the previously announced restatement of Learning Tree’s consolidated financial statements for its fiscal year ended September 30, 2005 and the first three quarters in its fiscal year ended September 29, 2006.
Revenues for Learning Tree’s fourth quarter of fiscal year 2006 were $38.7 million, a 6% increase from the same quarter of the prior year. Learning Tree reported a loss from operations of $0.6 million for the fourth quarter of fiscal year 2006 compared with a loss from operations of $1.0 million (restated) for the same quarter of the prior year. Revenues for Learning Tree’s fiscal year ended September 29, 2006 were $154.0 million compared with $151.6 million for the fiscal year ended September 30, 2005. Loss from operations for the fiscal year ended September 29, 2006 was $2.6 million compared with a loss from operations of $2.2 million (restated) for the prior year. Table 1 presents Learning Tree’s results of operations for the fourth quarter and the fiscal year ended September 29, 2006.
A number of factors, including permanent tax differences, adjustments for prior period tax items of $1.1 million in fiscal 2005 and $0.8 million in fiscal 2006, and a $3.3 million valuation allowance in the fourth quarter of fiscal 2006 related to deferred tax assets, have caused Learning Tree’s quarterly and annual income tax provisions to vary widely with little relation to pretax income. Accordingly, investors should use extraordinary care in using Learning Tree’s net income to analyze its operations. Learning Tree reported a net loss of $3.5 million in the fourth quarter of fiscal 2006 as compared to restated net income of $16.0 million for the same quarter in fiscal 2005. Learning Tree’s net loss for fiscal 2006 was $3.1 million, compared to a restated net loss for fiscal 2005 of $1.7 million.
In addition to the tax entries noted above, the results for fiscal 2005 and the first three quarters of fiscal 2006 reflect the previously announced restatement to correct the accounting for a sublease loss provision relating to exited facilities in the United Kingdom. The restatement adversely affected Learning Tree’s net loss by approximately $1.0 million for fiscal 2005, and adversely affected Learning Tree’s net income by approximately $0.5 million for the first nine months of fiscal 2006. The impact of the restatement on the affected line items in Learning Tree’s consolidated statements of operations for certain periods is set forth in Table 2.
Learning Tree International is a leading worldwide provider of vendor-independent education and training to IT professionals and managers in business and government organizations. Learning Tree develops, markets and delivers a broad, proprietary library of instructor-led courses focused on Web development, operating systems, programming languages, databases, computer networks, computer and network security, object-oriented technology, applied management, project management and key business skills. Learning Tree also tests and certifies IT and business professionals, and Learning Tree courses are recommended for college credit by the American Council on Education. In addition, Learning Tree is on the National Association of State Boards of Accountancy National Registry of CPE sponsors and is a Registered Education Provider of the Project Management Institute (PMI). For more information about Learning Tree products and services, call
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 the discussion that follows, 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 Exhibit 99.1, “Risk Factors” to Learning Tree’s Annual Report on Form 10-K (“Exhibit 99.1”). Please read that exhibit carefully. Some of the factors discussed in Exhibit 99.1 that could affect Learning Tree include: 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.
Webcast
An investor conference call to discuss fourth quarter and year end results is scheduled at 8:00 am EST
Contact Information
Nicholas R. Schacht
President and CEO
Learning Tree International
Phone: (703) 925-5585
nick_schacht@learningtree.com
You can also request an investor information packet here »
President and CEO
Learning Tree International
Phone: (703) 925-5585
nick_schacht@learningtree.com
You can also request an investor information packet here »