Learning Tree Expecting Lower Revenue

0

Shares of Learning Tree International Inc. slid Friday after announcing its fourth-quarter and full-year revenue will come in lower than a year earlier and that it expects a loss from operations for those periods.


Learning Tree fell 7.8 percent to settle at $12.89 on Thursday. Shares plunged as much as 9.4 percent to $12.68 in after-hours trading Thursday evening, shortly after the El Segundo-based provider of training courses for IT professionals made the announcement.


Learning Tree said after Thursday’s market close that it expects fourth-quarter revenue of about $36.5 million, 2 percent lower than a year earlier, and a loss from operations of about $400,000 to $600,000.


Its full-year revenue is anticipated to be $151.6 million, compared with $152.1 million the year before. Learning Tree also expects a loss from operations of about $1 million to $1.2 million.


The company said its results were hit by non-recurring lease expenses of $800,000 relating to the subleasing of space in its U.K. Education Center, and by $1.7 million of costs relating to its Sarbanes-Oxley compliance, which is expected to be substantially less in future years.


The company also noted that its restated financial statements for fiscal years 2001 to 2004, as well as all quarterly statements during fiscal 2004 and 2005, will be filed alongside its full-year results. The restatements will be made to correct its accounting for income taxes and leases. Learning Tree does not expect the restatements to affect reported revenues.

No posts to display