Nobel Learning Communities, Inc. Reports Record
Fiscal Year 2007 Revenues and Profits
Earnings per Share for Year Rise 59%
WEST CHESTER, Pa., Sept. 10 /PRNewswire-FirstCall/ -- Nobel Learning
Communities, Inc. (Nasdaq: NLCI), a leading operator of private preschools,
elementary schools, and middle schools, today reported record revenues, net
income and fully diluted earnings per share for the fiscal year ended June 30,
2007.
Net income for fiscal 2007 increased 64.4% to $7,365,000 compared to net
income of $4,479,000 for fiscal 2006 while earnings increased 59.1% to $0.70 per
fully diluted share from $0.44 per fully diluted share for fiscal 2006. Results
for the year reflect outstanding performance across key metrics including
increased revenues and comparable school enrollment, higher margins, and lower
borrowing costs, as well as gains from the disposition of non-strategic assets.
Fiscal 2007 results include a net gain in operating income of $2,694,000
($1,643,000 net of tax), or $0.16 per fully diluted share, related to
non-recurring gains for asset sales and charges for the extinguishment of
deferred loan origination fees and for a change in accounting estimate. Fiscal
2007 results also include a net loss in discontinued operations of $127,000
($77,500 net of tax), or $0.01 per fully diluted share, related to non-recurring
gains for asset sales and charges for lease reserves.
Revenue for the fiscal year ended June 30, 2007 rose 13.0% to
$182,817,000. Gross margin for fiscal 2007 expanded to 15.0% of revenue, from
14.2% of revenue in fiscal 2006. The rise in gross margin is an indicator of
improvement in the company's core operations.
For the fourth quarter of fiscal 2007, net income was $3,351,000, or $0.31
per fully diluted share, compared to fourth quarter fiscal 2006 net income of
$2,206,000, or $0.22 per diluted share. Fourth quarter fiscal 2007 results
include a gain of $1,087,000, ($678,000 net of tax) or $0.06 per fully diluted
share, from the disposition of six schools during the quarter. Revenue for the
fourth quarter of fiscal 2007 rose 13.4% to $48,935,000. Fourth quarter
performance from continuing operations reflected sustained double digit revenue
growth, a 100 basis point expansion of gross margin to 17.6% consistent with
improved school operations, and lower interest expense, partially offset by
higher general and administrative expenses.
George Bernstein, President and Chief Executive Officer of Nobel Learning
Communities, Inc. commented: "Fiscal 2007 was a record year for Nobel Learning
in every respect with record revenue, net income and earnings per share. In
addition to improved performance in almost every one of our key business
metrics, we also successfully transitioned the company to a growth phase. Our
goal is to grow organically and leverage our business model through increased
enrollment and new school development, while also adding to our national
footprint through opportunistic acquisitions. The success we have enjoyed both
in the classroom and on the bottom line clearly demonstrates that we have a well
developed strategy that can generate attractive growth and returns through
disciplined implementation. With a strong balance sheet providing Nobel Learning
with unprecedented financial flexibility, we are well positioned to profitably
increase our share of the private pay, preschool through eighth grade education
market in a manner that increases shareholder value."
About Nobel Learning Communities
Nobel Learning Communities, Inc. is a national network of over 155
nonsectarian private schools, including preschools, elementary schools, and
middle schools in 13 states across the nation and the District of Columbia.
Nobel Learning Communities provides high-quality private education, with small
class sizes, caring and skilled teachers, and attention to individual learning
styles. Nobel Learning Communities also offers an array of supplemental
educational services, including before- and after-school programs, the Camp
Zone(R) summer program, learning support programs, and specialty high schools.
For more information on Nobel Learning Communities, please visit
http://www.NobelLearning.com.
Except for historical information contained in this press release, the
information in this press release consists of forward looking statements
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These statements involve risks and uncertainties that could
cause actual results to differ materially from those in the forward looking
statements. Potential risks and uncertainties include changes in market demand,
market conditions, competitive conditions including tuition price sensitivity,
execution of growth strategy, changes in labor force reducing demand or need for
private schools and the acceptance of newly developed and converted schools.
Other risks and uncertainties are discussed in the Company's filings with the
SEC. These statements are based only on management's knowledge and expectations
on the date of this press release. The Company will not necessarily update these
statements or other information in this press release based on future events or
circumstances.
NLCI-F
Nobel Learning Communities, Inc.
Consolidated Statements of Operations
For the Thirteen and Fifty Two Weeks Ended June 30, 2007 and July 1, 2006
(In thousands except per share data)
(Unaudited)
Thirteen Weeks Ended Fifty Two Weeks Ended
--------------------- ---------------------
June 30, July 1, June 30, July 1,
2007 2006 2007 2006
--------- --------- --------- ---------
Revenues $ 48,935 $ 43,143 $ 182,817 $ 161,757
--------- --------- --------- ---------
Gross Profit 8,614 7,175 27,492 23,047
General and administrative expenses 4,137 3,103 16,993 13,523
--------- --------- --------- ---------
Operating income 4,477 4,072 10,499 9,524
Interest expense 70 313 1,385 1,469
Other income (26) (126) (3,871) (350)
--------- --------- --------- ---------
Income from continuing operations
before income taxes 4,433 3,885 12,985 8,405
Income tax expense 1,729 1,522 5,064 3,285
--------- --------- --------- ---------
Income from continuing operations 2,704 2,363 7,921 5,120
Income (loss) from discontinued
operations, net of taxes 647 (157) (556) (641)
--------- --------- --------- ---------
Net income 3,351 2,206 7,365 4,479
Preferred stock dividends -- 131 325 487
--------- --------- --------- ---------
Income available to common
stockholders $ 3,351 $ 2,075 $ 7,040 $ 3,992
========= ========= ========= =========
Weighted average common shares -
diluted 10,646 10,143 10,580 10,080
Diluted income per share:
Income from continuing operations $ 0.25 $ 0.23 $ 0.75 $ 0.51
Income (loss) from discontinued
operations 0.06 (0.01) (0.05) (0.07)
--------- --------- --------- ---------
Income per share $ 0.31 $ 0.22 $ 0.70 $ 0.44
========= ========= ========= =========
As of As of
Selected Balance Sheet data: June 30, 2007 July 1, 2006
- ----------------------------------- ----------------- ---------------
Cash and cash equivalents $ 3,814 $ 9,837
Property and equipment, net 24,412 25,707
Goodwill and intangible assets, net 51,681 39,902
Deferred revenue 12,835 11,885
Total debt -- 13,180
Stockholders' equity 54,218 46,280
Certain reclassifications have been made to the prior year condensed
financial statements to conform to current period presentation. Certain
financial information is presented on a rounded basis, which may cause minor
differences.