TMCnet News
Legacy Education Alliance, Inc. Announces Second Quarter of 2017 ResultsLegacy Education Alliance, Inc. (OTCQB: LEAI) (www.legacyeducationalliance.com), a leading international provider of practical, high-quality, and value-based educational training on the topics of personal finance, entrepreneurship, real estate, and financial markets investing strategies and techniques, today announced financial results for the three months and six months ended June 30, 2017. Second Quarter 2017 Highlights
"We are pleased to report another quarter of consistent financial and operational performance," said Anthony Humpage, CEO of Legacy Education Alliance. "Our brand and channel diversification, as well as geographic market expansion, continues to gain traction as indicated by our overall non-U.S. revenue increase of 28%. Also, our cash sales grew over 18% for the second quarter," Mr. Humpage added. "We anticipate showing further increases in cash sales throughout 2017, particularly as new brands gain greater traction in our more established markets, and as we continue to expand internationally and hone our selling and marketing strategy in new markets." SECOND QUARTER 2017 VERSUS SECOND QUARTER 2016 RESULTS Revenue was $24.8 million for the three months ended June 30, 2017 compared to $23.4 million for the three months ended June 30, 2016. Revenue increased $1.4 million or 6.0% during the three months ended June 30, 2017 compared to the same period in 2016. The increase in revenue was due to increases in recognition of revenue from expired contracts of $1.7 million, which was partially offset by a decrease in recognition of revenue from attendance (i.e. fulfillment) of $0.3 million. Cash sales were $26.8 million for the three months ended June 30, 2017 compared to $22.7 million for the three months ended June 30, 2016, an increase of $4.1 million or 18.1%. The increase was driven primarily by a $3.0 million increase in our U.S. segment and a $1.8 million increase in our Other Foreign Markets segment, which was partially offset by a $0.3 million and a $0.4 million decline in our Canada and U.K. segments. Total operating costs and expenses were $24.0 million for the three months ended June 30, 2017 compared to $22.7 million for the three months ended June 30, 2016, an increase of $1.3 million or 5.7%, which is consistent with the increase in revenue. The increase was primarily due to a $0.6 million increase in royalty expense, a $0.5 million increase in general and administrative expenses, of which $0.3 million was due to our new Enterprise Resource Planning ("ERP") system upgrade, and a $0.4 million increase in direct course expenses, partially offset by a $0.2 million decrease in advertising and sales expenses. Net income was $1.0 million or $0.04 per basic and diluted common share for the three months ended June 30, 2017 consistent with net income of $1.0 million or $0.05 per basic and $0.04 per diluted common share for the three months ended June 30, 2016. YTD 2017 VERSUS YTD 2016 RESULTS Revenue was $47.6 million for the six months ended June 30, 2017 compared to $46.1 million for the six months ended June 30, 2016. Revenue increased $1.5 million or 3.3% during the six months ended June 30, 2017 compared to the same period in 2016. The increase in revenue was due to increased attendance (i.e. fulfillment) of $1.3 million and increases in recognition of revenue from expired contracts of $0.6 million, which was partially offset by the decline in recognition of revenue of $0.4 million due to the change in our revenue recognition policy with regards to DVD fulfillment. Cash sales were $51.2 million for the six months ended June 30, 2017 compared to $44.0 million for the six months ended June 30, 2016, an increase of $7.2 million or 16.4%. The increase was driven primarily by a $4.6 million increase in our Other Foreign Markets segment, a $1.9 million increase in our U.S. segment and a $1.4 million increase in our U.K. segment, which was partially offset by a $0.7 million decrease in our Canada segment. Total operating costs and expenses were $46.7 million for the six months ended June 30, 2017 compared to $44.6 million for the six months ended June 30, 2016, an increase of $2.1 million or 4.7%. The increase was primarily due to a $1.7 million increase in direct course expenses, a $0.9 million increase in general and administrative expenses, of which $0.6 million was due to our new ERP system upgrade, and a $0.4 million increase in royalty expense, partially offset by a $0.9 million decrease in advertising and sales expenses. Net income was $1.2 million or $0.05 per basic and diluted common share for the six months ended June 30, 2017 compared to a net income of $1.6 million or $0.08 per basic and $0.07 per diluted common share for the six months ended June 30, 2016, a decrease in net income of $0.4 million or $0.03 per basic and $0.02 per diluted common share. The decrease in net income was primarily driven by $0.6 million increase in general and administrative expenses related to the implementation of our new ERP system. CASH FLOW AND CAPITAL STRUCTURE Net cash provided by operating activities was $3.2 million in the six months ended June 30, 2017 compared to net cash used in operating activities of $0.6 million in the six months ended June 30, 2016, representing a period-over-period increase of $3.8 million. This increase was primarily the result of an increase in current liabilities for deferred revenue in 2017 as a result of increased cash sales. Our consolidated capital structure as of June 30, 2017 and December 31, 2016 was 100.0% equity. CONFERENCE CALL Legacy Education Alliance, Inc. will hold a conference call on Monday, August 14, 2017 at 4:30 p.m. ET to discuss its financial results for the second quarter that ended June 30, 2017. To listen to the conference call, interested parties within the U.S. should dial 1-800-946-0708 or 1- 719-325-4752 for international calls, approximately 10 minutes prior to the scheduled start time. Participants should ask for the Legacy Education Alliance conference call. Conference ID: 6338583. The conference call will also be available through a live webcast at http://public.viavid.com/index.php?id=125780. Management will answer pre-submitted questions gathered prior to the earnings conference call in the Question and Answer period of the call. Interested parties may submit questions for Management's review prior to the call by submitting them in writing to Legacy Education Alliance Investor Relations at [email protected]. A replay of the call will be available approximately one hour after the conclusion of the call through August 28, 2017. The number for the replay is (844) 512-2921 (US), or (412) 317-6671 for international calls; the passcode for the replay is 6338583. The replay will also be available via the internet at http://public.viavid.com/index.php?id=124384 and through the company's website at http://ir.legacyeducationalliance.com/ir-calendar. About Legacy Education Alliance Inc. Legacy Education Alliance, Inc. (http://www.legacyeducationalliance.com), is a leading international provider of practical, high-quality, and value-based educational training on the topics of personal finance, entrepreneurship, real estate, and financial markets investing strategies and techniques. Legacy Education Alliance was founded in 1996, today we are a global company with approximately 200 employees that has cumulatively served more than two million students from more than 150 countries and territories over the course of our operating history. We offer our training through a variety of brands including Rich Dad® Education; Rich Dad® Stock Education; Making Money from Property with Martin RobertsTM; Brick Buy BrickTM; Building Wealth; Robbie Fowler Property AcademyTM; Women in WealthTM; The Independent WomanTM; and Trade Up Investor EducationTM. For more information, please visit our website at www.legacyeducationalliance.com. 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 SEC (News - Alert) on March 31, 2017 and which may be viewed at http://www.sec.gov.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170814005847/en/ |