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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (89348)	3/21/2000 10:13:00 AM
From: Jenna	Read Replies (1) \| Respond to of 120523

SLVN began stock repurchase plan today. It has been an earnings play 5 quarters. Editorials, Sunday, 03/19/2000 -------------------------------------------------------------------------------- Sylvan Learning Systems: Giving E-Commerce the Old College Try It's not very often that you can buy shares in a company that has a worldwide leadership position in any industry for just $15 per share. On top of that, this company just completed a multi-million dollar restructuring effort with new management, and is funding an Internet incubator. Even though the name may not ring a bell, you have probably driven by a Sylvan Learning Center (SLVN) at one time or another. Sylvan Learning Systems, Inc. is the leading provider of educational services to families, schools and industry. Sylvan provides its services through three separate business segments: Sylvan Prometric delivers computer-based testing for academic admissions, information technology (IT) and professional certification programs. Sylvan Learning Centers furnishes personalized instructional services to students of all ages. Founded in 1979, there are currently more than 780 Sylvan Learning Centers in North America and Asia. Finally, the Sylvan Contract Educational Services division provides supplemental educational services and professional development through contracts with school systems and other organizations. Sylvan has been in a restructuring phase, selling some of its assets to focus on the opportunities and higher growth-rate potential of the Internet. One of Sylvan's divisions, PACE, a corporate consulting and workforce development firm, was sold to privately-held Frontline Group in the third quarter of last year. Last week, the company completed the sale of its Prometric (mentioned earlier) division to Thomson Corp., another education services provider, for $775 million, or roughly $600 million net after taxes and transaction costs. It was quite the coup for Sylvan, as Prometric, a Sylvan incubatee, had grown from just $3 million in sales in 1993 to more than $200 million before it was sold. Sylvan said that approximately $130 million of the proceeds would be used to pay down SLVN's revolving credit line; $100 million would be used for expansion of its International University initiative; and additional funds will be used to repurchase the company's shares. Here's what has perked up ears on Wall Street, however. All together, the company plans to commit $300 million, part of a total $500 million, to launch an Internet incubator that will focus on bringing emerging internet technology solutions to the education and training marketplace. Of the remaining $200 million, $100 million will come from private investment firm Apollo Management and publicly-traded Internet professional services firm Rare Medium Group (RRRR). The other $100 million will come from other potential investors. The company said it still plans on growing and building its existing Sylvan Learning Centers division and other educational-services businesses, expected to grow 10-15 percent annually. "We think the next generation of Internet incubators will be in specific industry groups," said Douglas Becker, Sylvan's co-Chief Executive, who will be the sole CEO after Christopher Hoehn-Saric becomes chairman and CEO of the Internet incubator. Hoehn-Saric was the man who engineered Prometric's meteoric growth up to its sale last week. Because of the number of transactions booked during the fourth quarter of last year, Sylvan's financials were a bit muddled. Fourth quarter losses from continuing operations were $20 million, or 39 cents a share. First Call was expecting profits of 20 cents. Results included $5.1 million in restructuring expenses, approximately $10.3 million in non-recurring expenses, and $13.4 million in reserves. Full year revenues were $341 million versus $247 million, with earnings per share of 2 cents versus 32 cents per share for fiscal 1998. Despite the lack of earnings visibility due to the launch of the incubator, Wall Street has high hopes for shares of SLVN. The day after the Prometric announcement, U.S. Bancorp Piper Jaffray raised its rating on Sylvan to Buy from Neutral. Eight of the 10 analysts surveyed by Zack's Investment Research rate the stock either a Buy or Moderate Buy. Fiscal 2000 earnings estimates for Sylvan (ending December) are for profits of 97 cents (revised down from $1.41), and $1.70 for fiscal 2001. If management of Sylvan's new e-commerce incubator can pull off the kinds of results it did with Prometric, Sylvan shareholders could be handsomely rewarded. Shares look to be at a good entry point, down 50 percent from last year's highs of $30 per share.

To: Jenna who wrote (89348)	3/21/2000 10:21:00 AM
From: Jenna	Read Replies (1) \| Respond to of 120523

Earnings Play BMET Biomet shares (BMET: news, msgs) put on 4 11/16 to 32 3/4 after its earnnings report on Wednesday March 15. It was one of the few earnings plays we had for that week. Another one that did well was MANU although that has given back its gains (like everything else). The company registered third-quarter earnings of 38 cents a shares, matching the First Call estimate. BMET is continuing its ascent as this is the first time in over a year BMET was not at its 52 week high when earnings came out.