Computer Learning Centers Announces Fiscal 1998 Fourth Quarter and Year End Results
FAIRFAX, Va.--(BUSINESS WIRE)--March 12, 1998--Computer Learning Centers, Inc. (Nasdaq National Market: CLCX - news; ''CLC'') today announced financial results for the fourth quarter and fiscal year ended January 31, 1998 (see attached table). Net income per share and the weighted average number of common and common equivalent shares outstanding in both periods have been restated to reflect a two-for-one stock split, which became effective January 9, 1998, and a three-for-two stock split, which became effective on April 14, 1997.
Driven primarily by increased student enrollment and the popularity of CLC's longer programs, revenues for the three months ended January 31, 1998 increased 56% to $28,339,000 from $18,154,000 for the same period last year. Revenues generated from Associate Degree programs, available at eight Learning Centers during the fiscal 1998 fourth quarter, were $4,132,000, a 9% increase over the comparable prior year period when Associate Degrees were available at seven Learning Centers. Net income for the fiscal 1998 fourth quarter rose 54% to $2,664,000, or $.17 (basic)/$.15 per share (diluted), from net income of $1,735,000, or $.11 per share (basic and diluted), in the comparable prior year period. Results for the fiscal 1998 fourth quarter include approximately $670,000 in pre-tax charges related to acquisition costs of Boston Education Corp., d/b/a CLC Boston, and other expenses related to the early termination of a facility lease and certain operating equipment leases.
Revenues for fiscal year ended January 31, 1998 increased 51% to $96,989,000 from $64,025,000 last year. Revenues generated from Associate Degree programs during this period were $16,330,000, a 37% increase over revenues of $11,879,000 from the comparable prior year period. Net income for the 1998 fiscal year rose 71% to $9,580,000, or $.60 per share (basic)/$.56 (diluted), from net income of $5,601,000, or $.41 per share (basic)/$.37 per share (diluted), in the comparable prior year period.
Fiscal 1998 fourth quarter and year-end results do not include the operations of Delta College and Markerdowne Corporation, d/b/a CLC Paramus, both of which were acquired in February 1998. Delta College, with three campuses in Montreal, and CLC Paramus each had revenues of approximately $7 million U.S. for their most recent fiscal year end. After merger-related expenses, both of these acquisitions are expected to be accretive to earnings in late fiscal 1999.
The total number of students attending all of the Company's Learning Centers at January 31, 1998 was 10,112, a 56% increase from the prior year period and a 20% increase from the fiscal 1998 third quarter. Student enrollments during the fourth quarter rose 52% to 3,672 from 2,417 for the same period last year, and from 3,661 in the third quarter of fiscal 1998. Enrollments at the 12 Learning Centers which have been open for more than one year increased 19% during the fiscal 1998 fourth quarter compared to the prior year's fourth quarter, yielding an increase in same Center student population of 25%.
Reid Bechtle, President and Chief Executive Officer of CLC, commented, ''Fiscal 1998 was the most successful year in CLC's history and we are very pleased to report these continued favorable year-over-year comparisons. Our well-defined corporate strategy and its sound execution have remained constant, as has the implementation of our business model.
''During fiscal 1998 we opened four new Learning Centers and acquired or signed definitive agreements to acquire five additional Learning Centers. We now currently operate 25 Learning Centers in the United States and Canada, and have more than tripled our base of institutions since our initial public offering in June 1995. In addition to implementing CLC's first international operations with the acquisition of Delta College, we established a presence in the new domestic markets of Atlanta, New Jersey and Pittsburgh. During fiscal 1999, we intend to open five new Learning Centers in new markets or 'clustered' around existing Learning Center locations. We also intend to broaden the curriculum at each of our locations to fully reflect the demands of that region's employers and explore the possibility of increasing the number of Learning Centers that offer Associate Degrees.''
Computer Learning Centers provides information and computer-related education and training at 25 Learning Centers in the United States. The Company designs programs and courses to meet current information technology education needs, offering instruction focused on client/server systems and applications programming, networking administration and management, help desk operations and computer technical support.
This press release contains forward-looking statements. The words ''believe,'' ''expect,'' ''intend,'' ''anticipate,'' and ''project,'' and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
COMPUTER LEARNING CENTERS, INC.
STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Year Three Months
Ended Ended
January 31, January 31,
1998 1997 1998 1997
Revenues: $ 96,989 $ 64,025 $ 28,339 $ 18,154
Costs and Expenses:
Costs of instruction
and services $ 54,041 $ 35,475 $ 16,101 $ 10,372
Selling and promotional 15,289 11,407 4,257 3,192
General and administrative 7,657 5,584 2,249 1,546
Provision for doubtful
accounts 4,794 3,084 1,480 1,053
Amortization of intangibles 362 362 90 90
$ 82,143 $ 55,912 $ 24,177 $ 16,253
Income before interest 14,846 8,113 4,162 1,901
Interest (income)
expense, net (1,391) (721) (337) (324)
Gain on securities available
for sale 0 (332) 0 (332)
Income before income taxes 16,237 9,166 4,499 2,557
Provision for taxes 6,657 3,565 1,835 822
Net income $ 9,580 $ 5,601 $ 2,664 $1,735
Earnings per share:
Basic $ 0.60 $ 0.41 $ 0.17 $ 0.11
Diluted $ 0.56 $ 0.37 $ 0.15 $ 0.11
Weighted Avg. Shares:
Basic 15,893,000 13,719,000 16,123,000 15,542,000
Diluted 17,189,000 15,018,000 17,288,000 16,409,000
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COMPUTER LEARNING CENTERS, INC.
BALANCE SHEETS
(In Thousands)
As of As of
January 31, January 31,
1998 1997
ASSETS:
Current assets:
Cash and cash equivalents $ 24,377 $ 26,950
Accounts receivable, net
of allowance for
doubtful accounts
of $2,382 and $1,734 48,114 28,274
Prepaid expenses and other
current assets 5,719 3,581
Total current assets 78,210 58,805
Fixed assets, net 25,199 9,571
Intangible assets, net
of amortization 2,686 3,048
Long term accounts receivable,
net of allowance for
doubtful accounts of
$1,531 and $516 7,330 3,074
Other long term assets 1,846 1,229
Total assets $ 115,271 $ 75,727
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Trade accounts payable $ 1,574 $ 1,779
Accrued employee costs 3,025 2,134
Accrued other expenses 6,519 2,412
Deferred revenues 48,231 27,486
Total current liabilities 59,349 33,811
Other long-term liabilities 1,454 782
Long term deferred revenues 3,713 1,342
Total liabilities $ 64,516 $ 35,935
Stockholders' equity
Common stock 162 78
Additional paid-in-capital 34,525 32,182
Less - subscription note 0 0
Net unrealized gain on
securities available for sale 160 112
Retained earnings 15,908 7,420
Total stockholders' equity 50,755 39,792
Total liabilities and
stockholders' equity $ 115,271 $ 75,727
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Contact:
Computer Learning Centers, Inc.
Charles Cosgrove
Chief Financial Officer
(703) 359-7702
or
CLCX's INVESTOR RELATIONS COUNSEL:
The Equity Group
Devin Sullivan (212) 836-9608 |
