Cash sales increased 23.4% YoY and 4.2% QoQ to $23.7M in Q2 2015
Legacy Education Alliance, Inc. (OTCQB:LEAI), a leading provider of
educational training seminars, conferences and services, announces its
financial results for the second quarter ended June 30, 2015.
Second Quarter Highlights
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Cash sales increased 23.4% year-over-year
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International sales expansion gained further momentum
“Our expansion from just four countries in 2013 to 21 countries
throughout North America, Africa, Europe, and Asia in 2014, has laid the
foundation for our future growth,” stated Anthony Humpage, CEO of Legacy
Education. “During the second quarter our non-U.S. revenue grew to
account for 35.1% of our total revenue, up from only 24.2% in the prior
year period. Overall, our cash sales showed marked improvement in the
quarter, up 23.4% versus the second quarter of 2014 and 4.2% higher than
our first quarter 2015 results.”
Humpage continued, “Moving forward, the development of our online
courses is expected to add significant revenue growth, and with the
coming launch of new affiliate marketing program, which is the first of
its kind in the industry, we believe we are well positioned to
accelerate online course sales. We also believe our new online courses
will accelerate revenue recognition, as students are provided more
options for fulfillment.”
“We anticipate cash sales to increase throughout 2015 and 2016,
particularly as new brands gain greater traction in our more established
markets and as we expand internationally and hone our selling and
marketing strategies in new markets. An example of this can be seen in
Hong Kong, where a three-day basic training program held in May 2015
increased its sales by 21% and the closing ratio by 34% as compared to a
three-day basic training program held in the same city in December 2014.
Additionally, we generated record-setting dollar-sales per customer and
higher than average closing rates at a recent training symposium in SE
Asia. This indicates rapid improvement for us, the results of which we
anticipate to begin showing up in our operating results in the second
half of this year and into 2016,” concluded Humpage.
Results of Operations
Cash sales were $23.7 million for the three months ended June 30, 2015
compared to $19.2 million for the three months ended June 30, 2014, an
increase of $4.5 million or 23.4%. GAAP Revenue for the three months
ended June 30, 2015 was $22.6 million compared to $25.8 million for the
three months ended June 30, 2014, a decrease of $3.2 million, or 12.4%.
The decrease was primarily due to a $4.0 million decline in recognition
of revenue from expired contracts resulting from the change in our
revenue recognition policy with regards to DVD fulfillment and an
aggregate decrease of $0.6 million in attendance (i.e. fulfillment) in
our U.S., Canadian, and U.K. segments that was partially offset by a
$0.2 million increase in recognition of revenue from expired contracts
and a $1.2 million increase in attendance in our international segment.
Total operating costs and expenses for the three months ended June 30,
2015 were $23.8 million compared to $22.8 million for the three months
ended June 30, 2014, an increase of $1.0 million, or 4.4%. The increase
was primarily driven by a $1.4 million increase in direct course
expenses partially offset by lower advertising and sales expenses of
$0.3 million and a $0.2 million reduction in royalty expenses.
Net loss on a GAAP basis was $1.0 million, or $0.05 per basic and
diluted share for the three months ended June 30, 2015, compared to net
income of $3.0 million, or $0.19 per basic and diluted share for the
year ago period.
About Legacy Education Alliance, Inc.
Legacy Education Alliance, Inc. (http://www.legacyeducationalliance.com)
is a leading provider of educational training seminars, conferences and
services. Founded in 1992, Legacy Education Alliance, Inc. is a global
company dedicated to providing quality financial education with
headquarters in the United States, Canada and the United Kingdom. With
more than 150 employees and nearly 60 independent contractors worldwide,
Legacy Education Alliance, Inc. is committed to bringing the message of
financial education to the people of the world.
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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