Nobel Learning Communities, Inc. Reports Significantly Improved First Quarter
Results
Fastest First Quarter Revenue Increase in over Six Years, Margins Expand
WEST CHESTER, Pa., Nov. 8 /PRNewswire-FirstCall/ -- Nobel Learning
Communities, Inc. (Nasdaq: NLCI), a leading operator of private preschools,
elementary schools, and middle schools, today reported improved financial
results for the first quarter of fiscal 2008, which ended September 29, 2007.
First quarter net loss was $290,000, or $(0.03) per share, compared to a
first quarter fiscal 2007 net loss of $670,000, or $(0.10) per share. Excluding
discontinued operations, the loss for the quarter was $(0.02) per share compared
to $(0.07) per share in the year earlier period. First quarter revenues rose to
$44,633,000, an increase of 14.1% compared to the first quarter of fiscal 2007.
The increase in revenue included a comparable school revenue increase of
5.4%, which consisted of a 3.6% - 4.0% tuition increase and an increase in
average enrollments. Schools open or acquired over the past year contributed the
balance of the revenue increase.
School gross profit for the first quarter of fiscal 2008 was $4,114,000, or
9.2% of revenue, up from $3,190,000, or 8.2%, of revenue in the first quarter of
fiscal 2007. This 100 basis point improvement in the gross profit margin
resulted from leveraging our school staffing costs and strong control of school
operating costs. First quarter 2008 general and administrative expenses were up
21.0% compared to a year ago primarily due to a rise in personnel, consulting
and acquisition related amortization.
George Bernstein, President and Chief Executive Officer of Nobel Learning
Communities, Inc., stated, "In the first quarter we successfully executed on
virtually every one of our strategic initiatives, growing through tuition rate
and enrollment increases, opening new schools and making opportunistic,
accretive acquisitions. As a result, both total revenue and comparable school
revenue grew at the fastest first quarter rates in over six years. Our strong
revenue growth combined with our disciplined cost management enabled us to
significantly expand our gross margin. We are very proud that we have been able
to balance our new school openings, acquisitions and comparable schools growth
in a manner that accelerates both our top line growth and bottom line financial
performance.
"During the first quarter we began migrating our successful preschool model
to our elementary and middle schools to further strengthen our curriculum and
develop a differentiated educational product. This strategy is building interest
and loyalty from students and parents alike. By effectively implementing this
strategy, we have three consecutive years of consistently improving financial
performance and tremendous momentum entering this new school and fiscal year."
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 Weeks Ended September 29, 2007 and September
30, 2006 (In thousands except per share data)
(Unaudited)
Thirteen Weeks Ended
---------------------------------------
September 29, 2007 September 30, 2006
------------------ ------------------
Revenues $ 44,633 $ 39,108
-------- --------
Gross Profit 4,114 3,190
General and administrative expenses 4,460 3,686
-------- --------
Operating loss (346) (496)
Interest expense 47 322
Other income (16) (136)
-------- --------
Loss from continuing operations
before income taxes (377) (682)
Income tax benefit (147) (266)
-------- --------
Loss from continuing operations (230) (416)
Loss from discontinued operations,
net of taxes (60) (254)
-------- --------
Net loss (290) (670)
Preferred stock dividends -- 132
-------- --------
Loss applicable to common
stockholders $ (290) $ (802)
======== ========
Weighted average common shares -
diluted 10,367 8,093
Diluted loss per share:
Loss from continuing operations $ (0.02) $ (0.07)
Loss from discontinued operations (0.01) (0.03)
-------- --------
Loss per share $ (0.03) $ (0.10)
======== ========
As of As of
Selected Balance Sheet data: September 29, 2007 June 30, 2007
- ---------------------------- ------------------ -------------
Cash and cash equivalents $ 1,521 $ 3,814
Property and equipment, net 26,934 24,412
Goodwill and intangible assets, net 53,232 51,681
Deferred revenue 17,225 12,835
Total debt -- --
Stockholders' equity $54,063 $54,218
Number of schools 157 151
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.