CAPE CORAL, Fla.--(BUSINESS WIRE)--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
- Cash sales increased 23.4% year-over-year
- 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.
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.