Printer Friendly

New Horizons Worldwide Reports 18% Increase in Revenues for Third Quarter.

Business Editors

SANTA ANA, Calif.--(BUSINESS WIRE)--Oct. 25, 2000

New Horizons Worldwide, Inc. (NASDAQ: NEWH), the world's largest independent provider of computer training, today announced revenues of $36.0 million for the third quarter ending September 30, 2000.

This represents an increase of 18 percent over $30.6 million for the same period last year.

The Company also reported that its third-quarter financial results were at the upper end of the revised guidance announcement released September 26, 2000. Third-quarter net income was $2.8 million, or $0.26 per diluted share, compared with the $3.0 million, or $0.30 per diluted share, for the third quarter of 1999. System-wide revenues, which include revenues for both company-owned and franchise training centers, totaled $135.8 million, up 20 percent from $113.3 million for the same quarter last year.

For the first nine months of 2000, revenues grew 32 percent to $106.6 million from $80.6 million for the same period in 1999. Net income for the first nine months of 2000 was $8.6 million, or $0.84 per diluted share, a 21-percent increase compared to net income of $7.1 million, or $0.71 per diluted share for the first nine months of 1999. System-wide revenues for the first nine months of this year totaled $395.3 million, up 21 percent from $325.7 million for the same period in 1999.

President and CEO Thomas J. Bresnan commented, "Our franchise business continued to experience excellent growth as expected. Our same-center sales growth for the franchise network was 15 percent, and our overall same-center growth was 13 percent. As we stated previously, our third-quarter 2000 results were impacted by lower-than-expected revenues in certain company-owned locations, particularly in Southern California. We are implementing tighter management control to improve sales results and realize enhanced margins across all our company-owned centers."

Bresnan noted additional highlights of the past quarter in which New Horizons:
-- Increased training center locations to 255 centers in 44 countries, compared
to 224 centers in 38 countries at this time a year ago.

-- Sold master, unit and subfranchise agreements in Ecuador, Israel, Central
America (Costa Rica, Panama, Guatemala, El Salvador and three new territories
that include Honduras, Nicaragua and Belize), Dominican Republic and
Bangladesh.

-- Opened international centers in Taiwan and Germany.

-- Signed training contracts with Lockheed Martin, Verizon, JD Power &
Associates and Hallmark.

-- Launched Center Management System (CMS), which enables enhanced
customer-relationship management by delivering class registration, session and
resource availability, accounts receivable and invoicing, all in one complete
view.

-- Reduced long-term debt to zero.

-- Was named to FORBES magazine's list of "Best 200 Small Companies in
America."

-- Was named to FORTUNE magazine's list of "Top 100 Fastest-Growing Companies
in America."

-- Was named revenue growth leader for European IT training providers by
International Data Corporation (IDC).


About New Horizons

New Horizons Worldwide, operating as New Horizons Computer Learning Centers, operates more than 250 training centers in 44 countries and trains over 2.4 million students per year. In addition to instructor-led classes and training via CD-ROM, the Santa Ana-based company offers Web-based training, computer labs, certification exam preparation tools and 24-hour, seven-day-a-week help desk support through both company-owned and franchise-operated computer learning centers. For more information, visit www.newhorizons.com.

Except for historical information contained herein, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in such forward-looking statements. Such risks and uncertainties include, without limitation, the company's dependence on the timely development, introduction and customer acceptance of courses and new products, the impact of competition and downward pricing pressures, the effect of changing economic conditions, risks in technology development and the other risks and uncertainties detailed from time to time in the company's filings with the Securities and Exchange Commission.

 CONSOLIDATED STATEMENTS OF EARNINGS
 NEW HORIZONS WORLDWIDE, INC. AND SUBSIDIARIES
 (In thousands, except for per share amounts)

 (Unaudited)

 Three Months Three Months
 Ended Ended
 September 30, 2000 September 30, 1999
Revenues
 Franchising
 Franchise fees $ 813 $ 810
 Royalties 6,166 5,120
 Other 1,627 670
 -------------------------------
 Total franchising revenues 8,606 6,600
 Company-owned training centers 27,364 23,981
 -------------------------------
 Total revenues 35,970 30,581
Cost of revenues 16,397 13,184
Selling, general and administrative
 expenses 15,040 12,685
 -------------------------------
Operating income 4,533 4,712
Investment income, net 54 60
 -------------------------------
Income before income taxes 4,587 4,772
Provision for income taxes 1,835 1,761
 -------------------------------
Net income $ 2,752 $ 3,011
 ===============================

Basic Earnings Per Share $ 0.28 $ 0.32

Diluted Earnings Per Share $ 0.26 $ 0.30

Average common shares outstanding 9,853 9,545
Average common shares and
 equivalents outstanding 10,572 10,135


 CONSOLIDATED STATEMENTS OF EARNINGS
 NEW HORIZONS WORLDWIDE, INC. AND SUBSIDIARIES
 (In thousands, except for per share amounts)

 (Unaudited)

 Nine Months Nine Months
 Ended Ended
 September 30, 2000 September 30, 1999
Revenues
 Franchising
 Franchise fees $ 1,682 $ 1,879
 Royalties 17,611 14,756
 Other 4,114 1,987
 ---------------------------------
 Total franchising revenues 23,407 18,622
 Company-owned training centers 83,237 61,961
 ---------------------------------
 Total revenues 106,644 80,583
Cost of revenues 48,834 35,445
Selling, general and administrative
 expenses 43,466 34,094
 ---------------------------------
Operating income 14,344 11,044
Investment income (expense), net 31 393
 ---------------------------------
Income before income taxes 14,375 11,437
Provision for income taxes 5,750 4,333
 ---------------------------------
Net income $ 8,625 $ 7,104
 =================================

Basic Earnings Per Share $ 0.89 $ 0.75

Diluted Earnings Per Share $ 0.84 $ 0.71

Average common shares outstanding 9,739 9,495
Average common shares and
 equivalents outstanding 10,328 10,044
COPYRIGHT 2000 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2000, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Geographic Code:1USA
Date:Oct 25, 2000
Words:944
Previous Article:Essex Corporation Reports Third Quarter Results.
Next Article:Communications Systems Reports Third Quarter Earnings.
Topics:


Related Articles
New Horizons Worldwide Reports Record Third Quarter Results.
New Horizons Worldwide Reports Record Second Quarter Results; Net Income Increases 51 Percent.
New Horizons Worldwide Reports Record Third Quarter Results; Revenues Increase 56%; Net Income Increases 61%.
New Horizons Worldwide Reports Fourth Quarter Results; Revenues Increase 51%; Net Income Excluding One-time Charges Increases 51%.
New Horizons Worldwide Reports 67% Net Income Growth for First Quarter, Substantially Exceeding Expectations; Revenues Increase 54%.
New Horizons Worldwide Reports 13th Consecutive Quarter of Revenue and Income Growth; Revenue Increases 31%; Net Income Up 28%.
New Horizons Worldwide Provides Guidance On Third-quarter Earnings Outlook.
New Horizons Among FORBES ``Best Small Companies in America''; Solid Performance in a Wide Range of Financial Criteria Wins Spot On America's Elite...
New Horizons Worldwide Reports 28% Revenue Increase For Fiscal 2000; Net Income Up 51%.
VIACOM EARNINGS LEAP IN STRONG 3RD QUARTER.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters