Legacy Education Alliance, Inc. Announces Second Quarter of 2017 Results
- Non-
U.S. Revenue increased 27.6% - Other Foreign Markets Segment Revenue increased 47.1%
- Total Revenue of
$24.8 Million - Cash Sales increased 18.1%
- Operating Cash Flows and Liquidity increased
$3.8 Million YoY
Company to hold Conference Call on
Second Quarter 2017 Highlights
- Net income was
$1.0 million or$0.04 per basic and diluted common share for the quarter endedJune 30, 2017 consistent with net income of$1.0 million or$0.05 per basic and$0.04 diluted common share for the quarter endedJune 30, 2016 ; - Revenue was
$24.8 million for the quarter endedJune 30, 2017 compared to$23.4 million for the quarter endedJune 30, 2016 , an increase of$1.4 million or 6.0%; - Non-
U.S. revenue was$11.1 million for the quarter endedJune 30, 2017 compared to$8.7 million for the quarter endedJune 30, 2016 , an increase of$2.4 million or 27.6%; - Other Foreign Markets segment revenue was
$5.0 million for the quarter endedJune 30, 2017 compared to$3.4 million for the quarter endedJune 30, 2016 , an increase of$1.6 million or 47.1%; - Cash sales were
$26.8 million for the quarter endedJune 30, 2017 compared to$22.7 million for the quarter endedJune 30, 2016 , an increase of$4.1 million or 18.1%; - Total operating costs and expenses were
$24.0 million for the quarter endedJune 30, 2017 compared to$22.7 million for the quarter endedJune 30, 2016 , an increase of$1.3 million or 5.7%; - Net cash provided by operating activities was
$3.2 million in the six months endedJune 30, 2017 compared to net cash used in operating activities of$0.6 million in the six months endedJune 30, 2016 , representing a period-over-period increase of$3.8 million .
“We are pleased to report another quarter of consistent financial and operational performance,” said
SECOND QUARTER 2017 VERSUS SECOND QUARTER 2016 RESULTS
Revenue was
Cash sales were
Total operating costs and expenses were
Net income was
YTD 2017 VERSUS YTD 2016 RESULTS
Revenue was
Cash sales were
Total operating costs and expenses were
Net income was
CASH FLOW AND CAPITAL STRUCTURE
Net cash provided by operating activities was
Our consolidated capital structure as of
CONFERENCE CALL
To listen to the conference call, interested parties within the
A replay of the call will be available approximately one hour after the conclusion of the call through
About
We offer our training through a variety of brands including Rich Dad® Education; Rich Dad® Stock Education; Making Money from Property with
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “prospects,” “outlook,” and similar words or expressions, or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company’s forward-looking statements, please see the Company’s Annual Report on Form 10-K (including but not limited to the discussion under “Risk Factors” therein) filed with the
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||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| |
|
|||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenue | $ | 24,780 | $ | 23,375 | $ | 47,595 | $ | 46,113 | ||||||||
| Operating costs and expenses: | ||||||||||||||||
| Direct course expenses | 13,007 | 12,584 | 25,836 | 24,238 | ||||||||||||
| Advertising and sales expenses | 5,131 | 5,322 | 9,722 | 10,589 | ||||||||||||
| Royalty expenses | 1,639 | 1,070 | 2,532 | 2,043 | ||||||||||||
| General and administrative expenses | 4,231 | 3,685 | 8,572 | 7,744 | ||||||||||||
| Total operating costs and expenses | 24,008 | 22,661 | 46,662 | 44,614 | ||||||||||||
| Income from operations | 772 | 714 | 933 | 1,499 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income (expense), net | (2 | ) | 1 | (5 | ) | (2 | ) | |||||||||
| Other income, net | 69 | 319 | 152 | 140 | ||||||||||||
| Total other income, net | 67 | 320 | 147 | 138 | ||||||||||||
| Income before income taxes | 839 | 1,034 | 1,080 | 1,637 | ||||||||||||
| Income tax benefit/(expense) | 156 | (9 | ) | 135 | (19 | ) | ||||||||||
| Net income | $ | 995 | $ | 1,025 | $ | 1,215 | $ | 1,618 | ||||||||
| Basic earnings per common share | $ | 0.04 | $ | 0.05 | $ | 0.05 | $ | 0.08 | ||||||||
| Diluted earnings per common share | $ | 0.04 | $ | 0.04 | $ | 0.05 | $ | 0.07 | ||||||||
| Basic weighted average common shares outstanding | 21,284 | 20,961 | 21,284 | 20,961 | ||||||||||||
| Diluted weighted average common shares outstanding | 22,763 | 21,846 | 22,697 | 21,846 | ||||||||||||
| Comprehensive income/(loss): | ||||||||||||||||
| Net income | $ | 995 | $ | 1,025 | $ | 1,215 | $ | 1,618 | ||||||||
| Foreign currency translation adjustments, net of tax of |
(980 | ) | 1,474 | (1,278 | ) | 1,959 | ||||||||||
| Total comprehensive income (loss) | $ | 15 | $ | 2,499 | $ | (63 | ) | $ | 3,577 | |||||||
| |
||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| (In thousands, except share data) | ||||||||
| |
|
|||||||
| 2017 | 2016 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 4,705 | $ | 1,711 | ||||
| Restricted cash | 3,403 | 3,148 | ||||||
| Deferred course expenses | 9,711 | 9,067 | ||||||
| Prepaid expenses and other current assets | 4,083 | 3,458 | ||||||
| Inventory | 373 | 348 | ||||||
| Total current assets | 22,275 | 17,732 | ||||||
| Property and equipment, net | 1,170 | 1,130 | ||||||
| Deferred tax asset, net | 1,563 | 1,295 | ||||||
| Other assets | 305 | 207 | ||||||
| Total assets | $ | 25,313 | $ | 20,364 | ||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,049 | $ | 3,344 | ||||
| Royalties payable | 376 | 175 | ||||||
| Accrued course expenses | 1,840 | 1,082 | ||||||
| Accrued salaries, wages and benefits | 1,127 | 840 | ||||||
| Other accrued expenses | 2,583 | 2,052 | ||||||
| Long-term debt, current portion | 11 | 11 | ||||||
| Deferred revenue, current portion | 57,397 | 54,389 | ||||||
| Total current liabilities | 66,383 | 61,893 | ||||||
| Long-term debt, net of current portion | 26 | 31 | ||||||
| Deferred revenue, net of current portion | 555 | 235 | ||||||
| Other liabilities | 479 | 379 | ||||||
| Total liabilities | 67,443 | 62,538 | ||||||
| Commitments and contingencies (Note 10) | ||||||||
| Stockholders’ deficit: | ||||||||
| Preferred stock, |
||||||||
| issued | — | — | ||||||
| Common stock, |
||||||||
| and 22,630,927 shares issued and outstanding at |
||||||||
| |
2 | 2 | ||||||
| Additional paid-in capital | 11,180 | 11,073 | ||||||
| Cumulative foreign currency translation adjustment | 1,390 | 2,668 | ||||||
| Accumulated deficit | (54,702 | ) | (55,917 | ) | ||||
| Total stockholders’ deficit | (42,130 | ) | (42,174 | ) | ||||
| Total liabilities and stockholders’ deficit | $ | 25,313 | $ | 20,364 | ||||
| |
||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (Unaudited) | ||||||||
| (In thousands) | ||||||||
| Six Months Ended | ||||||||
| |
||||||||
| 2017 | 2016 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net income | $ | 1,215 | $ | 1,618 | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 65 | 78 | ||||||
| Gain on change in fair value of derivatives | (87 | ) | (3 | ) | ||||
| Share-based compensation | 107 | 74 | ||||||
| Deferred income taxes | (264 | ) | (1 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Restricted cash | (186 | ) | (721 | ) | ||||
| Deferred course expenses | (487 | ) | (161 | ) | ||||
| Prepaid expenses and other receivable | (539 | ) | (447 | ) | ||||
| Inventory | (18 | ) | 180 | |||||
| Other assets | (27 | ) | (3 | ) | ||||
| Accounts payable-trade | (388 | ) | 2,153 | |||||
| Royalties payable | 201 | 103 | ||||||
| Accrued course expenses | 725 | 390 | ||||||
| Accrued salaries, wages and benefits | 280 | (618 | ) | |||||
| Other accrued expenses | 656 | (1,124 | ) | |||||
| Deferred revenue | 1,832 | (2,089 | ) | |||||
| Other liabilities | 100 | — | ||||||
| Net cash provided by (used in) operating activities | 3,185 | (571 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchases of property and equipment | (103 | ) | (37 | ) | ||||
| Net cash used in investing activities | (103 | ) | (37 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Principal payments on debt | (5 | ) | (5 | ) | ||||
| Net cash used in financing activities | (5 | ) | (5 | ) | ||||
| Effect of exchange rate differences on cash | (83 | ) | 703 | |||||
| Net increase in cash and cash equivalents | 2,994 | 90 | ||||||
| Cash and cash equivalents, beginning of period | $ | 1,711 | $ | 4,881 | ||||
| Cash and cash equivalents, end of period | $ | 4,705 | $ | 4,971 | ||||
| Supplemental disclosures: | ||||||||
| Cash paid during the period for interest | $ | 5 | $ | 5 | ||||
| Cash paid during the period for income taxes, net of refunds received | $ | 30 | $ | 34 | ||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170814005847/en/
CORE IR
Investor Contact:
President
[email protected]
Source:
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