Legacy Education Alliance, Inc. Announces Consolidated Financial Results for the Fiscal Year Ended December 31, 2017; Provides Cash Sales Guidance for the Fiscal Year 2018
April 02, 2018 at 09:01 pm
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Legacy Education Alliance, Inc. announced consolidated financial results for the fiscal year ended December 31, 2017. Net income was $4.3 million or $0.18 per diluted common share for the year ended December 31, 2017 compared to net income of $3.9 million or $0.17 per diluted common share for the year ended December 31, 2016, an increase in net income of $0.4 million or 10.7%. Net income for the year ended December 31, 2017 was positively impacted by the increase in revenue primarily due to increased attendance (i.e. fulfillment) of $6.9 million or 9.2% and by the increase in other income of $4.0 million, partially offset by the increase in operating and income tax expenses. Net income was negatively impacted by a $2.9 million increase in income tax expense or $0.14 per basic and $0.13 per diluted common share year over year. Revenue was $97.7 million for the year ended December 31, 2017 compared to $89.2 million for the year ended December 31, 2016, an increase of $8.5 million or 9.5%. Net cash provided by operating activities was $5.4 million in the year ended December 31, 2017 compared to net cash used in operating activities of $1.6 million in the year ended December 31, 2016, representing a period-over-period increase of $7.0 million. This increase was primarily the result of an increase in current liabilities for deferred revenue in 2017 as a result of increased cash sales and the proceeds received from the settlement of litigation. The increase in revenue was due to increased attendance (i.e. fulfillment) of $6.9 million or 9.2% and the increase in recognition of revenue from expired contracts of $2.0 million or 13.9%, partially offset by the decline in recognition of revenue of $0.4 million, due to the change in the company's revenue recognition policy with regards to DVD fulfillment. Income from operations was $1,814,000 against $2,473,000 a year ago. Income before income taxes was $6,285,000 against $2,940,000 a year ago. Purchases of property and equipment were $181,000 against $55,000 a year ago.
The company expects the company's cash sales will continue to increase throughout 2018, through broader brand development and traction and improved sales and marketing strategies in new markets, which the company's envision driving improved shareholder value throughout the year. The company will continue to fund the company's working capital, capital expenditures, and 2018 key strategic initiatives with cash on hand and cash provided by the company's operations.
Legacy Education Alliance, Inc. is a provider of practical and value-based educational training on the topics of personal finance, entrepreneurship, real estate, and financial markets, including investment strategies and techniques. Its programs are offered through a variety of formats and channels, including free workshops, basic trainings, forums, telephone mentoring, one-on-one mentoring, coaching, and e-learning. The Company marketed its products and services under the brand Building Wealth with Legacy. The Companyâs students pay for their courses in full up-front or through payment agreements with independent third parties. The Company also provides one-on-one mentoring (two to four days in length, on site or remotely) and telephone mentoring (10 to 16 weekly one-on-one or one-on-many telephone sessions). Its training programs include basic training courses (live and online), elite level training courses (live and online), and individualized mentoring programs.
Legacy Education Alliance, Inc. Announces Consolidated Financial Results for the Fiscal Year Ended December 31, 2017; Provides Cash Sales Guidance for the Fiscal Year 2018