Learning Tree International Inc · OTC:LTRE
Learning Tree International — Investor Presentation (2005)
21 slides from Learning Tree International's investor presentation, Nov 4, 2005
Slide 1: Education Is Our Business
Education Is Our Business 3Q05 1 Angeles, CA • 90045 • 1-310-417-9700 • www.learningtree.com Learning Tree International® • 6053 W. Century Blvd, Ste. 200 • Los
Slide 2: Forward-Looking Statements
Forward-Looking Statements Except for historical statements and discussions, this discussion consists of "forward-looking statements." All plans, projections, and future estimates are forward-looking statements, which in some, but not all, cases, are identified by words such as "anticipate," "estima
Slide 3: Slide 3
Slide 4: Learning Tree Market Position
Learning Tree Market Position • Learning Tree - The world’s leading vendor-independent IT training company • IT Training – A $20 Billion, highly fragmented market • No competitor has a large market share • The Big have the advantage and are accelerating market capture • Learning Tree – Market Streng
Slide 5: Investment Opportunities and Long Term Growth Strategy
Investment Opportunities and Long Term Growth Strategy • Outperform long-term market growth • Expand course library • Leverage & expand geographic presence • Increase investment in multi-tiered marketing • Increase penetration of long-term global customer base • Well positioned to capitalize on the
Slide 6: Expansion of the IT Training Market
Expansion of the IT Training Market ’00’s - Internet Technology - Management ’90’s - Client/Server Technology ’80’s - LAN & WAN Technology ’70’s - Microprocessor Technology 6
Slide 7: Size (and Independence) Matters!
Size (and Independence) Matters! Software and High Hardware Vendors s Revenue g i n a r d M a n ATEC’s* t h Small o w Low &G r Vendor-Independent er Providers i gh CTEC’s * H Vendor-Dependent Vendor-Independent Vendor Relationships 7 * ATEC (CTEC) = Authorized (Certified) Training & Education Center
Slide 8: Blue Chip Customer Base
Blue Chip Customer Base United States International * All trademarks are owned by their respective companies. 8
Slide 9: Strong Base of Loyal, Repeat Customers
Strong Base of Loyal, Repeat Customers • 13,000 corporate clients • Developed over 31 years • Diversity of revenues across many clients, industries & countries • Customer loyalty: Of top 100 corporate clients in 2000, All are still customers 5 years later • Over 1.5 million course participants • 49%
Slide 10: Longstanding Global Presence
Longstanding Global Presence Los Angeles Washington, D.C. Boston Ottawa New York • International focus since inception in 1974 • Uniform systems and infrastructure • Consistent, high-quality content worldwide Tokyo Toronto 10 Chicago Paris Stockholm London Atlanta
Slide 11: International Infrastructure Supports Rapid Growth
International Infrastructure Supports Rapid Growth Wholly-owned subsidiaries Centralized Support Functions Corporate Headquarters Los Angeles •• In place 15-25 years CEO World-class course CAO Administration • International development staff process President & Chief • Uniform CFO Finance • World-cl
Slide 12: Experienced Management Team
Experienced Management Team Yrs. With Yrs. Of Company Experience Name Dr. David C. Collins Chairman & CEO 31 37 Eric R. Garen Vice Chairman 31 37 Nicholas R. Schacht President and COO 3 24 Mary C. Adams Chief Administrative 29 31 Officer LeMoyne T. Zacherl Chief Financial Officer - 30 W. Mathew Juec
Slide 13: Comprehensive Delivery Model
Comprehensive Delivery Model Education Center ILT Courses On-Site ILT Courses •Marketing •Content •Instructors •Operations ~80% of Revenue ~20% of Revenue 13
Slide 14: Proprietary Library of Instructor-Led Courses
Proprietary Library of 139 Instructor-Led Courses Number of Total Course Hours of Curriculum Titles Training • Windows Systems and Exchange 16 468 • SQL Server 7 182 • Windows Development 16 402 • RDBMS, Oracle9i and Oracle8i 10 282 • Web Development and XML 13 300 • Applied Management 7 138 • Key B
Slide 15: High Quality Team of Instructors
High Quality Team of Instructors • Over 650 highly qualified instructors • Independent contractors • Exclusive to Learning Tree • “Real world” IT and management professionals • Average of 20 years of practical experience • Teach an average of 8-10 courses per year “as needed” 15
Slide 16: Multi-tiered Sales and Marketing
Multi-tiered Sales and Marketing Direct Sales Worldwide Headquarters Telemarketing National Headquarters Direct Marketing – Mail Company Sites: – Email Line Managers First-line Supervisors IT Professionals 16
Slide 17: Revenue
Revenue 250 200 $ Millions 150 100 50 0 1998 1999 2000 2001 2002 2003 2004 Fiscal Year 17
Slide 18: Net Income
Net Income 50 40 $ Millions 30 20 10 0 1998 1999 2000 2001 2002 2003 2004 Fiscal Year * 1999 Results exclude the third quarter FY’99 write-off of $5.9 million associated with the discontinuation of further development of our CBT product line 18
Slide 19: Summary Operating Model
Summary Operating Model Potential(2) 1999(1) 2000 2001 2002 2003 2004 Long Term Revenues 100% 100% 100% 100% 100% 100% 100% Gross Profit 60% 64% 59% 54% 52% 52% 60-62% Course Development 7% 5% 5% 5% 5% 5% 5% Sales and Marketing 29% 25% 28% 29% 29% 31% 27% General & Administrative 13% 11% 12% 14% 15%
Slide 20: Investment Opportunities and Long Term Growth Strategy
Investment Opportunities and Long Term Growth Strategy • Strong, clean balance sheet • $75.4 million in cash at 07/01/2005 and no debt • All receivables are from corporations and governments • No off-balance sheet transactions • Outperform long-term market growth • Expand course library • Leverage &
Slide 21: Thank You
Education Is Our Business Thank You 21
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