Exhibit 99.1
NOBEL LEARNING COMMUNITIES, INC. ANNOUNCES IMPROVED SECOND QUARTER AND SIX
MONTH EARNINGS
WEST CHESTER, Pa., Feb. 14 /PRNewswire-FirstCall/ -- Nobel Learning
Communities, Inc. (Nasdaq: NLCI), a leading for-profit provider of education
and school management services for the pre-elementary through 12th grade
market, reported improved financial results for the second quarter and six
month periods ended December 31, 2005.
Net Income for the second quarter of fiscal 2006 improved to $1,234,000 or
$0.12 per diluted share compared to second quarter fiscal 2005 net income of
$999,000 or $0.10 per diluted share. Second quarter revenues from continuing
operations for fiscal 2006 were $42,299,000, an increase of 2.4% over the
$41,288,000 reported for second quarter fiscal 2005. The Company ended the
second quarter of fiscal 2006 with 150 schools, versus 151 schools for the
comparable period in the prior year.
Gross profit for the second quarter of fiscal 2006 increased by $439,000 to
$6,109,000 or 14.4% of revenues, from $5,670,000 or 13.7% of revenues in the
prior year period. The improved results for second quarter fiscal 2006 resulted
primarily from tuition increases of approximately 4.0% to 4.5%, improved school
labor and operating expense management, and lower interest expense, partially
offset by higher general and administrative expenses. The higher general and
administrative expenses included increases in professional fees, consulting
fees, and stock option expense in accordance with Statement of Financial
Accounting Standard 123(R), offset by decreases in salaries, benefits and
recruiting fees.
The Company also reported that hurricane Wilma impacted the second quarter
results of its schools in South Florida, which represent approximately 7% of its
schools. The Company estimates the negative impact of this event on the
Company's second quarter performance was approximately $0.01 per share. While
the Company does not believe that the effects of the hurricane will have any
significant long-term negative impact, the Company cannot be certain of the
ongoing impact on its customers' homes and employment situations.
Net income for the six months ending December 31, 2005 improved to $521,000
or $0.05 per diluted share compared to fiscal 2005 net loss of $42,000 or $0.06
per diluted share for the six month period during fiscal 2005. Six month
revenues from continuing operations for fiscal 2006 were $79,801,000, an
increase of 2.9% over the $77,564,000 reported for the first six months of
fiscal 2005. The Company ended the first six months of fiscal 2006 with 150
schools, versus 151 schools for the comparable period in the prior year.
Gross profit for the first six months of fiscal 2006 increased by $831,000
to $8,919,000 or 11.2% of revenues, from $8,088,000 or 10.4% of revenues in the
prior year. The improved results for the six months of fiscal 2006 resulted
primarily from tuition increases of approximately 4.0% to 4.5%, improved school
labor and operating expense management, and lower interest expense, partially
offset by higher general and administrative expenses. The higher general and
administrative expenses included increases in professional fees, consulting
fees, and stock option expense in accordance with Statement of Financial
Accounting Standard 123(R), offset by lower salaries, benefits and recruiting
fees.
George Bernstein, President and Chief Executive Officer of Nobel Learning
Communities stated, "The Company's financial performance continues to improve,
with our best second quarter and six month results in a number of years. Our
gross profit margin and overall financial performance increased. However, as we
noted in our first quarter earnings release, our back-to-school enrollment base
was disappointing and that trend may continue through the year. We are intensely
focused on stimulating enrollments in order to enable us to reach our long-term
growth and performance objectives.
"During the next 90 days we will roll out several initiatives to support a
strong back-to-school for fiscal 2007, including our new 'Links to Learning'(TM)
pre-school curriculum, which will be used by all Nobel Learning Communities
schools across the country. We will also introduce new elementary school
curriculum guides, to enhance the communication of our kindergarten through
eighth grade curriculum to current and potential students and parents. In
addition, we are seeing encouraging results from the Internet marketing
campaigns we added this year.
"During January 2006 we completed the rollout of our new NetSuite(R)
information system to all our preschools and elementary schools. Our new system
provides increased breadth and timeliness of management information that we
believe will allow us to continue to improve our school processes, strengthen
our controls and provide a common measurement basis for our operations. With
this system in place, each school is now directly connected into our financial
systems. We have also recently completed our five-year strategic plan and
identified areas for investment and growth as well as the resources and funding
required for enhanced growth.
"We continue to strengthen our balance sheet. The Company's cash position is
stronger and our debt is lower than both the second quarter of last year and the
end of fiscal 2005. We opened one new school during the first six months of
fiscal 2006, and it is already profitable. We are confident that fiscal 2006
will continue our momentum in building long term stockholder value."
Nobel Learning Communities, Inc. operates 150 schools in 13 states,
consisting of private pre-elementary, elementary, middle, specialty high schools
and schools for learning challenged children clustered within established
regional learning communities.
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 condition and competitive activities, 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.
Nobel Learning Communities, Inc.
Consolidated Statements of Operations
For the Thirteen and Twenty Six Weeks Ended December 31, 2005 and
January 1, 2005
(In thousands except per share data)
(Unaudited)
Thirteen Weeks Twenty Six Weeks
Ended Ended
---------------------------- ----------------------------
Dec. 31, Jan. 1, Dec. 31, Jan. 1,
2005 2005 2005 2005
------------ ------------ ------------ ------------
Revenues $ 42,299 $ 41,288 $ 79,801 $ 77,564
Gross Profit 6,109 5,670 8,919 8,088
General and administrative expenses 3,675 3,180 7,197 6,463
Operating income 2,434 2,490 1,722 1,625
Interest expense 378 699 774 1,408
Other income (79) (37) (126) (91)
Income from continuing operations
before income taxes 2,135 1,828 1,074 308
Income taxes expense 833 694 419 117
Income from continuing operations 1,302 1,134 655 191
Loss from discontinued operations, net
of taxes (68) (135) (134) (233)
Net income (loss) 1,234 999 521 (42)
Preferred stock dividends 127 169 228 348
Income (loss) available to common
stockholders $ 1,107 $ 830 $ 293 $ (390)
Weighted average common shares:
Basic 7,469 6,748 7,463 6,695
Diluted 9,930 9,635 9,921 6,695
Basic income (loss) per share:
Income (loss) from continuing
operations $ 0.16 $ 0.14 $ 0.06 $ (0.03)
Discontinued operations (0.01) (0.02) (0.02) (0.03)
Income (loss) per share $ 0.15 $ 0.12 $ 0.04 $ (0.06)
Diluted income (loss) per share:
Income (loss) from continuing
operations $ 0.13 $ 0.11 $ 0.07 $ (0.03)
Discontinued operations (0.01) (0.01) (0.02) (0.03)
Income (loss) per share $ 0.12 $ 0.10 $ 0.05 $ (0.06)
As of As of
Dec. 31, July 2,
2005 2005
------------ ------------
Selected Balance sheet data:
Cash and cash equivalents $ 3,459 $ 2,925
Property and equipment, net 24,585 26,007
Goodwill and intangible assets, net 36,829 36,937
Total debt 14,312 15,461
Stockholders' equity 38,325 37,390
SOURCE Nobel Learning Communities, Inc.
-0- 02/14/2006
/CONTACT: Tom Frank, CFO of Nobel Learning Communities, Inc.,
+1-484-947-2000/
/Web site: http://www.nobellearning.com /