New Horizons Reports Third Quarter and Nine Months Ended September 30, 2009 Results
CONSHOHOCKEN, Pa.–(BUSINESS WIRE)– New Horizons Worldwide, Inc. (Pink Sheets: NWRZ) today reported financial results for the third quarter and the nine months ended September 30, 2009.
Third Quarter 2009 Highlights
Third Quarter 2009 Results
Revenue for the quarter ended September 30, 2009 totaled $8.9 million, compared to $9.2 million in the comparable 2008 period. Revenue from Company-owned training centers increased to $3.4 million in the quarter ended September 30, 2009 from $3.0 million in the comparable period of 2008. Franchising revenue decreased to $5.4 million in the third quarter of 2009 as compared to $6.2 million in the third quarter of 2008.
The Company had operating income of $205,000 in the third quarter of 2009, compared to an operating income of $1.6 million in the third quarter of 2008. The Company defines operating income as income before gains (losses) from the sale of assets, interest and income taxes. The Company’s net income was $70,000 for the three months ended September 30, 2009 compared to net income of $1.2 million in the comparable 2008 period.
For the three months ended September 30, 2009, total system-wide revenue from all franchised and Company-owned training centers was $79.5 million compared to total system-wide revenue for the comparable 2008 period of $96.1 million, a decrease of 17.3%. On a constant currency basis, system-wide revenue declined 16.8% from the prior year.
Nine Months Ended September 30, 2009 Highlights
Nine Months Ended September 30, 2009 Results
Revenue for the nine months ended September 30, 2009 totaled $25.5 million, compared to $28.5 million in the comparable 2008 period. Revenue from Company-owned training centers for the nine months ended September 30, 2009 were $9.7 million, which was flat versus the comparable period of 2008. Franchising revenue decreased to $15.9 million in the nine months ended September 30, 2009 as compared to $18.8 million in the nine months ended September 30, 2008.
The Company had operating income of $607,000 in the nine months ended September 30, 2009, compared to operating income of $4.6 million in the nine months ended September 30, 2008. The Company defines operating income as income before gains (losses) from the sale of assets, interest and income taxes. The Company’s net income was $91,000 for the nine months ended September 30, 2009 compared to a net income of $3.7 million in the comparable 2008 period.
For the nine months ended September 30, 2009, total system-wide revenue from all franchised and Company-owned training centers was $238.1 million compared to total system-wide revenue for the comparable 2008 period of $301.9 million, a decrease of 21.1%. On a constant currency basis, system-wide revenue declined 20.6% from the prior year.
Current Outlook
Operations
Mark A. Miller, President and Chief Executive Officer of New Horizons, stated, “We are encouraged by New Horizon’s ability to deliver positive financial results despite the continued difficult economic climate. We believe the recent moderation in the rate of year-on-year revenue decline suggests a recovery in the training market may now be beginning. We continue to focus on field support to our network of centers around the world and on controlling costs while improving the operating efficiency of our Company-owned training centers. We have invested in our business during 2009 and remain committed to the strategic initiatives that we believe will provide for meaningful revenue and operating profit growth to the network as well as providing the services and programs our students require.
“As always, we appreciate the dedication and efforts of our employees, the commitment and partnership of our franchise owners and their staffs and the support of our industry partners in making our success possible.”
Reporting Status
As a result of the Company’s reverse stock split, which was approved by the Company’s shareholders at the Annual Shareholders’ Meeting held on July 28, 2009, the Company’s trading symbol changed to “NWRZ.PK” on September 17, 2009. The Company began trading on the Pink Sheets in August 2009 and is currently listed as a Pink Sheet “Current Filer” under the Pink Sheets terms and definitions.
The Company’s Quarterly Report for the third quarter is available on the Company’s website (www.newhorizons.com) under “About Us” under the “Investor Relations” section and on the Pink Sheets website (www.pinksheets.com).
About New Horizons Computer Learning Centers
With over 300 centers in 60 countries, Conshohocken, Pennsylvania based New Horizons Worldwide, Inc. (Pink Sheets: NWRZ) is the world’s largest independent IT training company. Through an integrated learning approach that ensures that new knowledge can be applied to real life situations, New Horizons delivers a full range of technology and business skills training from basic application and desktop productivity tools to complex and integrated business systems. New Horizons continues to expand its offerings, locations, and solutions to meet the growing demands placed on organizations and their employees. For more information, or to find a local New Horizons Computer Learning Center, visit www.newhorizons.com.
Certain matters discussed in this press release are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and as such involve risks and uncertainties. Any statements about expectations, beliefs, plans, objectives, assumptions, future events or performance are not historical facts and are forward-looking statements. The forward-looking statements in this press release are based upon beliefs, assumptions and expectations of the Company’s management as to the Company’s future operations and economic performance, taking into account the information currently available and include comments regarding management’s future outlook and financial performance of the Company. These statements are not statements of historical fact, and the Company’s actual results may differ significantly from the results discussed in the forward-looking statements. Readers should not place undue reliance on these forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, achievements or transactions of the Company or the benefits of the proposed transaction to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Many of the factors which could impact the Company and the forward-looking statements contained herein are included in the Company’s filings with the Securities and Exchange Commission and Pink Sheets.
NEW HORIZONS WORLDWIDE, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
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Treasury stock at cost – 185,000 shares of common stock at September 30, 2009 and December 31, 2008, respectively
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Total liabilities and shareholders’ equity
NEW HORIZONS WORLDWIDE, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
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