Learning Tree Announces Preliminary Quarterly Results
Learning Tree International, Inc. (NASDAQ NM:LTRE – news) today released preliminary results for its quarter ended September 30, 2001, and disclosed that its rate of new enrollments had rebounded after the events of September 11.
“During the two weeks after the attacks on the World Trade Center and the Pentagon, the disruption of our courses in the United States reduced our revenue by about $2.3 million,” commented Dr. David C. Collins, Learning Tree’s Chairman and CEO. “Because the Company had already committed to almost all of the costs for those courses, the effect on net income is expected to be approximately $0.06 per diluted share. On the other hand, there was no discernable impact from the events of September 11 on our operations in the rest of the world, which accounts for approximately half of our revenues.”
Based on preliminary results, Learning Tree expects that revenue for the quarter ended September 30 will be between $48 million and $50 million and that net income per diluted share for the quarter is expected to be between $0.11 and $0.14. Based on these preliminary results, Learning Tree expects to report revenue of between $226 million and $228 million and net income per diluted share of between $1.16 and $1.19 for the fiscal year ended September 30, 2001.
“After new enrollments for future Learning Tree courses slowed by about 11% to 12% during the two weeks following the September 11 attacks, enrollment rates have since returned to their August levels,” continued Dr. Collins. “Additionally, a number of people who had enrolled before September 11 have subsequently changed their plans. As a result, our September 30, 2001 backlog for future events, as well as our September revenue, was adversely affected.”
At September 30, 2001, Learning Tree had a backlog of orders for instructor-led courses of $35.6 million. This represented a 4% decrease compared to the backlog at June 30, 2001.
Dr. Collins concluded, “While we are encouraged by the rebound in our most recent enrollment rates, we remain cautious about projections based on these short-term results in the face of the current uncertain climate. Political and military developments and changing economic conditions may affect our future performance.”
Learning Tree will broadcast a conference call live over the Internet beginning at 2:30 pm PDT (5:30 EDT) on Wednesday, October 10, 2001. To participant in the live call, please dial 212-896-6052 at least 10 minutes prior to the beginning of the call. To listen to the call over the Internet, please go to Learning Tree’s web site at http://www.learningtree.com and click on the Investor Relations tab. If you cannot participate in the live call, an archived replay will be available for 48 hours following the call by dialing 800-633-8284 and entering Reservation No. 19864062. In addition the replay will be available on the Learning Tree website.
Learning Tree International is a leading worldwide provider of education and training to information technology (“IT”) professionals in business and government organizations. The Company develops, markets and delivers a broad, proprietary library of instructor-led courses focused on client/server systems, intranet/Internet technologies, computer networks, operating systems, programming languages, databases, object-oriented technology and IT management. The Company also tests and certifies IT professionals, and the American Council on Education recommends its courses for college credit. For more information about Learning Tree products and services, call 1-800-THE-TREE, or visit us on the World Wide Web at: http://www.learningtree.com.
The actual results for the Company’s fourth quarter and fiscal year ended September 30, 2001, will be available in early November. The estimates contained in this release were prepared prior to completing the accounting for September, the normal quarterly review of financial and operating results, and the year-end audit — any of which could materially affect the estimates provided above. Accordingly, the actual results for the quarter and fiscal year could vary from the estimates in this release.
Except for historical information contained herein, the matters addressed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in such forward-looking statements. Such risks and uncertainties include, without limitation, the Company’s dependence on the timely development, introduction and customer acceptance of courses and products; risks in technology development and introduction; risks associated with the introduction of distance learning both by the Company and its competitors; the impact of competition and pricing pressures; the Company’s ability to attract and retain key management and other personnel; risks associated with international operations, including currency fluctuations; the effect of changing economic conditions; the Company’s ability to maintain its current operating margins; the effect of adverse weather conditions, strikes and other external events; and the other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including the Company’s 2000 Annual Report on Form 10-K and in Exhibit 99 “Risk Factors” thereto.