Caliber Learning Network, Inc. Reports Third Quarter 1999 Results and Announces Eight Internet Contracts.BALTIMORE--(BUSINESS WIRE)--Oct. 27, 1999-- Caliber Learning Network, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CLBR CLBR Costa Linda Beach Resort (Aruba) ) today reported financial results for the third quarter and nine months ended September 30, 1999 that exceeded analyst expectations. Net revenues for the third quarter of fiscal 1999 were $7.4 million, compared with $5.7 million in the third quarter of fiscal 1998, representing a 29% increase. The net loss for the quarter was $4.7 million, or a $0.38 loss per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, as compared to a net loss of $5.8 million, or a $0.48 loss per diluted share, in the third quarter of fiscal 1998. Weighted average number of shares outstanding for the quarter ended September 30, 1999 and September 30, 1998 were 12,349,521 and 12,293,642, respectively. For the first nine months of fiscal 1999, net revenues grew 71% to $18.5 million from $10.8 million in the same period last year. The net loss for the first nine months of 1999 was $16.9 million, or a $1.38 loss per diluted share, compared with a net loss of $20.7 million, or a $1.95 loss per diluted share, for the corresponding period last year. Weighted average number of shares outstanding for the nine months ended September 30, 1999 and September 30, 1998 were, 12,324,093 and 10,803,800, respectively. Growth in demand from corporate programs represented 56% of revenues during the quarter, with the balance of revenues generated from academic programs and other services. During the quarter, Caliber entered into new contracts with eleven corporations and three universities. The total value of these contracts is approximately $4.5 million. Also during the quarter, eight of the new and existing contracts have signed up for Caliber's Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the capabilities, whereby the client will have the option of broadcasting their events over the Internet and storing them for on-demand access. Chris Nguyen, President and Chief Executive Officer of Caliber Learning Network, Inc., commented, "During the third quarter of 1999, Caliber has continued to develop and generate significant interest its Internet services. To date, we have signed contracts with several new corporations, all of whom have already expressed their high level of satisfaction with our services. On the university front, we have continued to build solid relationships with prestigious institutions, which has resulted in three new partnerships - Georgetown's The Robert Emmett McDonough School of Business The McDonough School of Business is one of four undergraduate and one of five graduate schools at Georgetown University. Named for alumnus Robert Emmett McDonough, The McDonough School of Business ("MSB") is committed to developing leaders capable of making complex business , Dickinson College Dickinson College, at Carlisle, Pa.; coeducational; Methodist; founded 1773 as The Grammar School, chartered and opened as Dickinson College 1783. It was named for John Dickinson. and Babson College Babson College, located in Wellesley, Massachusetts (zoned as "Babson Park," ZIP code 02457),[1] is a private business school that grants all undergraduates a Bachelor of Science in Business Administration. The F. W. . Initial feedback from the faculty and students has been very positive. Together, these new corporate and academic contracts further evidence the growing demand for our Internet capabilities and we look forward to continue to develop Web-based programs for our current and future customers." $15 Million Equity Funding Equity funding An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund. In a separate press release, Caliber announced it has reached an agreement with Fleming Flem·ing , Sir Alexander 1881-1955. British bacteriologist who discovered penicillin in 1928. He shared a 1945 Nobel Prize for this achievement. Asset Management for $15 million in new equity funding. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). will be used for future development opportunities and general working capital purposes. The funding is in the form of a Series A Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". . The Series A is convertible into shares of Common Stock at a price of $5.50 per share. "We are very pleased that Fleming Asset Management has chosen to establish a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. relationship with Caliber. This investment gives Caliber greater financial flexibility and will allow us to further enhance our Internet objectives and build new partnerships with both corporations and universities," Mr. Nguyen concluded. Internet Services Caliber also announced during the quarter that it had launched WebCore Express Studios, which allow Caliber clients to produce professional-quality, Internet-ready learning products in less than 10 days for under $10,000. In order to use a WebCore Express Studio, a client needs an existing training or communication program. The Automotive Industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. Action Group (AIAG AIAG Automotive Industry Action Group AIAG Animal Industries Advisory Group ) has begun converting selected training programs for Internet distribution. About Caliber - Caliber offers interactive distance learning services for corporations and universities, enabling them to create training and education programs delivered through the Internet to desktops within its network of authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: centers, at the workplace, and in the home. These services give working adults access to live expert instruction, real-time two-way interactivity with instructors, and the ability to collaborate with other course participants. Caliber Learning Network, Inc. (NASDAQ: CLBR) is an affiliate of Sylvan Learning Sylvan Learning (formerly Sylvan Learning Center) is a chain of franchised tutoring centers which provide personalized tutoring in reading, writing, mathematics, study skills and test-prep for college entrance and state exams. Systems, Inc. (NASDAQ: SLVN). This release may include information that could constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provision of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Any such forward-looking statements may involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. Factors that could cause or contribute to such differences include those matters disclosed in the Company's Securities and Exchange Commission filings. -0-
CALIBER LEARNING NETWORK, INC.
STATEMENT OF OPERATIONS
(Amounts in 000s)
Three Months Nine Months
Ended September 30, Ended September 30,
------------------- ------------------
(Unaudited) (Unaudited)
1999 1998 1999 1998
---- ---- ---- ----
Net revenues $ 7,364 $ 5,699 $ 18,492 $ 10,787
Costs and expenses 11,989 11,878 35,326 31,465
--------- --------- --------- ---------
Loss before
interest and
taxes interest
and taxes (EBIT) (4,625) (6,179) (16,834) (20,678)
Interest income
(expense), net (80) 335 (107) (36)
--------- --------- --------- ---------
Loss before
income taxes (4,705) (5,844) (16,941) (20,714)
Provision for
income taxes -- -- -- --
Net loss $ (4,705) $ (5,844) $ (16,941) $ (20,714)
========= ========= ========= =========
Dividends accrued
on preferred
stock (15) (15) (45) (299)
Net loss
attributable to
common
stockholders $ (4,720) $ (5,859) $ (16,986) $ (21,013)
========= ========= ========= =========
Loss Per Share:
basic and
diluted $ (0.38) $ (0.48) $ (1.38) $ (1.95)
========= ========= ========= =========
Weighted
average number
of shares
outstanding:
basic and
diluted 12,349,521 12,293,642 12,324,093 10,803,800
Selected Balance Sheet Data:
----------------------------
As of September 30,
------------------
1999 1998
---- ----
Total cash and available-for-sale
securities $ 16,369 $ 40,588
Current assets 22,017 47,300
Total assets 44,093 68,030
Current liabilities 12,489 10,058
Long-term debt
(less current portion) 9,610 10,359
Shareholders' equity 20,677 45,759
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