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American Learning Corp Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 14, 2011 11:49AM
American Learning Corp (ALRN) filed Quarterly Report for the period ended 2011-09-30.
Highlight of Business Operations:Revenues for the three months ended September 30, 2011 were $467,754, a decrease of less than 1.0% from the $471,591 reported for the three month period ended September 30, 2010. Revenues generated under our Special Education Itinerant Teachers (“SEIT”) program increased to $306,457 during the three months ended September 30, 2011 from $251,613 in the corresponding period in the prior fiscal year. We also achieved growth in school staffing services to charter schools during the current quarter, recording an increase in charter school revenue of $24,571, representing an increase of approximately 18.6% over the quarter ended September 30, 2010. However, during the three months ended September 30, 2011, revenues from early intervention (“EI”) services decreased $72,977 from EI revenues recorded in the three month period ended September 30, 2010. New York City will not be granting EI contracts to any new providers in the upcoming request for proposal process and our agreement to subcontract our services to another approved provider has not been renewed.
Cost of services as a percentage of revenues for the three and six month periods ended September 30, 2011 were approximately 68.7% and 68.4%, respectively. During the three and six months ended September 30, 2010, cost of services as a percentage of revenues was 65.0%. Each year, we are required to file a standardized fiscal cost report with New York State which is used to calculate reconciliation tuition rates/adjustment factors and prospective tuition rates for our SEIT program. As a result of this rate reconciliation process, the cost of services as a percentage of revenue for the three and six months ended September 30, 2011 increased due to a 4.0% reduction in fees paid by preschools under the rate reconciliation process. The cost of services as a percentage of revenues in the current three and six month periods also reflects an increase over the prior year s periods as a result of increased workers compensation premiums caused by a re-categorization of our clinicians into classifications that are associated with higher premium costs. The Company challenged this action and has successfully reversed this reclassification effective with its policy renewal in September 2011.