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Legacy Education Alliance, Inc. Announces First Quarter 2016 Results

OTC Disclosure & News Service, LEAI

– Legacy Education Alliance, Inc. (OTCQB: LEAI) (www.legacyeducationalliance.com), a leading international provider of practical, high-quality, and value-based educational training on the topics of personal finance, entrepreneurship, real estate, and financial markets investing strategies and techniques, announces financial results for the three months ended March 31, 2016.

FIRST QUARTER 2016 OVERVIEW

  • Revenue increased $1.0 million or 5% to $22.7 million for the first quarter, up from $21.7 million in the year-ago period.
  • Revenue from attendance increased $3.1 million or 20% to $18.5 million in the first quarter, up from $15.4 million in the prior year period.
  • Non-U.S. revenue was $8.3 million in the first quarter compared to $6.3 million in the prior year period, an increase of $2.0 million or 32%.
  • Cash sales were $21.3 million for first quarter, compared to $22.7 million in the prior year period, a decrease of $1.4 million or 6%.
  • Net cash provided by operating activities was $0.3 million in the first quarter, compared to net cash provided by operating activities of $0.7 million in the prior year period, a decrease of $0.4 million.
  • Total operating costs were $22.0 million for the first quarter, compared to $22.5 million for the prior year period, a decrease of $0.5 million or 2%.
  • Net income was $0.6 million, or $0.03 per basic and diluted common share, for the first quarter, compared to a net loss of $(0.6) million, or $(0.03) per basic and diluted common share, for the prior year period.

“Legacy’s first quarter 2016 results reflect solid business performance and continued execution against our stated strategic objectives. Our first quarter 2016 revenue of $22.7 million, net income of $0.6 million, or $0.03 per basic and diluted common share, compared to the prior year period demonstrate this,” said Anthony Humpage, CEO of Legacy Education Alliance.

“Our performance has been driven primarily by foreign sales expansion, which remains a priority for us moving forward as non-U.S. revenue increased $2.0 million or 32%. We remain confident in our strategy of achieving growth through brand and channel diversification and geographic market expansion, particularly as new brands gain greater traction in our more established markets and as we hone our selling and marketing strategy in new markets.”

“The addition of our Elite Business Star™ brand in January, created in association with Kevin Harrington, one of the original Sharks from the television show Shark Tank, is a great example of our efforts to grow our revenue by diversifying our revenue sources. We also strengthened our Brick Buy Brick program in February with the signing of former NFL player Phillip Buchanon as a brand spokesperson,” concluded Humpage.

QUARTER-OVER-QUARTER RESULTS

Revenue was $22.7 million for the three months ended March 31, 2016 compared to $21.7 million for the three months ended March 31, 2015, an increase of $1.0 million or 5%. The increase was due to increased attendance (i.e. fulfillment) of $3.1 million or 20% and recognition of revenue from expired contracts of $0.3 million or 9%, partially offset by the decline in recognition of revenue of $2.4 million or 89%, due to the change in our revenue recognition policy with regards to DVD fulfillment. Cash sales were $21.3 million for the three months ended March 31, 2016 compared to $22.7 million for the three months ended March 31, 2015, a decrease of $1.4 million or 6%.

Total operating costs and expenses were $22.0 million for the three months ended March 31, 2016 compared to $22.5 million for the three months ended March 31, 2015, a decrease of $0.5 million or 2%. The decrease was due to a $0.2 million decrease in royalty expense and a $0.6 million decrease in general and administrative expenses, partially offset by a $0.2 million increase in direct course expenses and a $0.1 million increase in advertising and sales expenses.

Net income was $0.6 million or $0.03 per basic and diluted common share for the three months ended March 31, 2016, compared to a net loss of ($0.6) million or ($0.03) per basic and diluted common share for the three months ended March 31, 2015, an increase in net income of $1.2 million or $0.06 per basic and diluted common share. Net income for the three months ended March 31, 2016 was positively impacted by the increase in revenue primarily due to increased attendance (i.e. fulfillment) of $3.1 million or 20%.

CASH FLOW

Net cash provided by operating activities was $0.3 million and $0.7 million in the three months ended March 31, 2016 and 2015, representing a period-over-period decrease of $0.4 million.

CONFERENCE CALL

Legacy Education Alliance, Inc. will hold a conference call on May 18 at 2:00 p.m. ET to discuss its financial results for the quarter ended March 31, 2016. To participate in the call, please dial (888) 427-9376, or (719) 457-1512 for international calls, approximately 10 minutes prior to the scheduled start time. A replay of the call will be available for two weeks from 5:00 p.m. ET on May 18, 2016, until 11:59 p.m. ET on June 1, 2016. The number for the replay is (877) 870-5176, or (858) 384-5517 for international calls; the passcode for the replay is 1124732.

About Legacy Education Alliance, Inc.

Legacy Education Alliance, Inc. (http://www.legacyeducationalliance.com) is a leading international provider of practical, high-quality, and value-based educational training on the topics of personal finance, entrepreneurship, real estate and financial markets investing strategies and techniques. Legacy Education Alliance was founded in 1996, and through a reverse merger, became a publicly-held company in November 2014. Today we are a global company with approximately 200 employees that has cumulatively served more than two million students from more than 150 countries and territories over the course of our operating history. We manage our business in four segments based on geographic location. These segments include our historical core markets of the United States, Canada, and the United Kingdom, with the fourth segment including all other international markets.

We offer our training through a variety of brands including Rich Dad® Education; Rich Dad® Stock Education; Making Money from Property with Martin RobertsTM; Brick Buy BrickTM; Building Wealth; Robbie Fowler Property AcademyTM; Women in WealthTM; The Independent WomanTM; Trade Up Investor EducationTM; and Elite Business StarTM. For more information, visit our website atwww.legacyeducationalliance.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “prospects,” “outlook,” and similar words or expressions, or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company’s forward-looking statements, please see the Company’s Form 10-K, filed on March 27, 2015, including but not limited to the discussion under “Risk Factors” therein, which the Company has filed with the SEC and which may be viewed at http://www.sec.gov.

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