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

May 11, 2010 | About:
10qk

10qk

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Learning Tree International Inc. (LTRE) filed Quarterly Report for the period ended 2010-04-02.

Learning Tree International Inc. has a market cap of $206.3 million; its shares were traded at around $14.98 with a P/E ratio of 39.4 and P/S ratio of 1.6. LTRE is in the portfolios of Arnold Van Den Berg of Century Management, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

During the first six months of fiscal year 2010 course development expenses were 5.9% of revenues, compared to 6.1% in the same period of fiscal year 2009. Overall spending on course development in the first six months of fiscal year 2010 was $3.6 million, a 14.3% decrease from the $4.2 million spent on course development in the first six months of fiscal year 2009. The decrease in expense reflects the development of fewer courses as well as cost savings in the development process of $0.4 million and reductions in royalties to course authors of $0.3 million, partially offset by consulting expenses of $0.1 million on the development of AnyWare.

Sales and marketing expense in our second quarter of fiscal year 2010 was 27.2% of revenues, compared with 29.0% for the same quarter in fiscal year 2009. Sales and marketing expense was $7.7 million in our second quarter of fiscal year 2010, compared to $8.8 million during our second quarter of fiscal year 2009. During our second quarter of this fiscal year, we reduced the number of catalogs produced and mailed, lowering our expense by $0.9 million. Reductions of personnel and related benefits accounted for an additional reduction of $0.4 million, partially offset by other increases of $0.1 million. Changes in foreign exchange rates included in these figures caused total sales and marketing expenses to increase by about 3.6% for our second quarter of fiscal year 2010 compared to the same quarter of the prior fiscal year.

Sales and marketing expense in the first six months of fiscal year 2010 was 23.8% of revenues, compared with 26.2% for the same period in fiscal year 2009. Sales and marketing expense was $14.5 million in the first six months of fiscal year 2010, compared to $18.0 million during the first six months of fiscal year 2009. During the first six months of this fiscal year, we reduced the number of catalogs produced and mailed, lowering our expense by $2.0 million. Reductions of personnel and related benefits accounted for an additional reduction of $1.2 million. Other marketing reductions included $0.2 million of advertising expense, and other reductions of $0.1 million. Changes in foreign exchange rates included in these figures caused total sales and marketing expenses to increase by about 3.1% for the first six months of fiscal year 2010 compared to the same period of the prior fiscal year.

General and Administrative Expenses. General and Administrative expense during our second quarter of fiscal year 2010 was $7.2 million, a decrease of $0.6 million compared to $7.8 million in our second quarter of fiscal year 2009. This decrease related primarily to $0.2 million in payroll and benefits, $0.2 million in equity and incentive compensation and $0.1 million of other reductions. Additionally, our second quarter of fiscal years 2010 and 2009 included significant items not associated with current operations:

General and Administrative expense during the first six months of fiscal year 2010 was $13.3 million, a decrease of $2.1 million compared to $15.4 million in the same period of fiscal year 2009. This decrease related primarily to $0.8 million in payroll and benefits, $0.4 million in professional services (primarily auditing and legal fees) and various other reductions of $0.1 million. Additionally, the six months ended April 2, 2010 and April 3, 2009 included significant items not associated with current operations:

At April 2, 2010 our net working capital (current assets minus current liabilities) was $37.9 million, a $1.6 million increase from our working capital balance at October 2, 2009 as a result of a decrease in accounts payable of $2.2 million, a decrease in deferred revenues of $2.3 million, a $0.8 million decrease in income taxes payable, a $0.4 million decrease in accrued payroll and benefits and other accrued liabilities and an increase of $0.4 million in prepaid and other current assets, all offset by a decrease in accounts receivable of $2.2 million and $2.4 million of tax payments.

Read the The complete Report

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