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Learning Tree International Inc. Reports Operating Results (10-Q)

May 12, 2009 | About:

Learning Tree International Inc. (LTRE) filed Quarterly Report for the period ended 2009-04-03.

Learning Tree International Inc. is a leading worldwide provider of education and training to information technology professionals in business and government organizations. The company develops markets and delivers a broad proprietary library of instructor-led course titles focused on client/server systems internet/intranet technologies computer networks operating systems databases programming languages graphical user interfaces and object-oriented technology. Learning Tree International Inc. has a market cap of $143.9 million; its shares were traded at around $9 with a P/E ratio of 15.2 and P/S ratio of 0.8.

Highlight of Business Operations:

attributable to a reduction of $0.9 million in the expenses incurred for the production and mailing of our catalogs due to mailing fewer catalogs. The remaining difference is due to reductions in sales expense of $0.6 million and decreases in advertising expense of $0.2 million. Changes in foreign exchange rates included in these figures caused sales and marketing expenses to decline by about 9.0%.

Our sales and marketing expenses in our first six months of fiscal year 2009 increased to 26.2% from 23.4% in our first six months of fiscal year 2008, as a result of the declines in revenue, partly offset by lower spending. Sales and marketing expense decreased by $3.1 million to $18.0 million for our first six months of fiscal year 2009 from the same period of our prior fiscal year. The decrease was primarily attributable to reductions of $1.9 million in the expenses incurred for the production and mailing of our catalogs due to mailing fewer catalogs, $0.9 million in sales expense, and $0.6 million in professional service fees. These reductions were offset by increases of $0.3 million in marketing personnel costs. Changes in foreign exchange rates included in these figures caused sales and marketing expenses to decline by about 8.4%.

General and Administrative Expenses. G&A expense during our second quarter of fiscal year 2009 was $7.8 million, an increase of $0.1 million compared to $7.7 million in our second quarter of fiscal year 2008. Our second quarter of fiscal year 2009 included significant items not associated with current operations:

G&A expense during the first six months of fiscal year 2009 was $15.4 million, a decrease of $1.8 million compared to $17.2 million in the same period during fiscal year 2008. Approximately $0.8 million of this decrease was due to reductions in equity and incentive compensation, $0.5 million for reductions in payroll and benefits, $0.4 million for reductions in professional service fees and $0.4 million across other areas. Additionally, our first six months of both fiscal years 2009 and 2008 included significant items not associated with current operations.

During the second quarter of fiscal year 2009, other income, net totaled $0.3 million compared to $1.5 million in the same period of fiscal year 2008. The net decrease was primarily due to a reduction in interest income of $0.7 million due to lower interest rates and lower cash balances. In the second quarter of fiscal year 2009, we had a foreign currency transaction loss of $0.1 million compared to a foreign currency transaction gain of $0.3 million in the same period of our prior year.

During the first six months of fiscal year 2009, other income, net totaled $0.7 million compared to $2.4 million in the same period of fiscal year 2008. The net decrease was primarily due to a reduction in interest income of $1.2 million due to lower interest rates and lower cash balances, an increase of $0.2 million in foreign currency transaction losses and $0.1 million of receipts on the liquidation of an investment in Rasmussen College in fiscal year 2008.

Read the The complete ReportLTRE is in the portfolios of Arnold Van Den Berg of Century Management.

Rating: 2.8/5 (4 votes)

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