Learning Tree International Inc · OTC:LTRE
Learning Tree International — Investor Presentation (June 2006)
20 slides from Learning Tree International's investor presentation, June 2006
Slide 1: Education Is Our Business
Education Is Our Business 2Q06 Learning Tree International • 400 N. Continental Blvd, Suite 200 • 1El Segundo, CA • 90245 • 310-417-9700 • www.learningtree.com
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 International—the world’s leading vendor-independent management and IT training company • Management and IT training—large, highly fragmented markets • Management--$50 billion US market, steady demand • IT--$20 billion US market, demand related to IT pro
Slide 5: Long Term Growth Strategy
Long Term Growth Strategy • Maintain IT training market share and presence • World leader • Strong brand recognition • Continue to invest in course library • Significantly increase penetration into management training market • Management training revenues growing significantly • Opportunity for glob
Slide 6: Learning Tree Market Expansion
Learning Tree Market Expansion ’00’s - Management and Business Skills - Internet Technology ’90’s - Client/Server Technology ’80’s - LAN & WAN Technology ’70’s - Microprocessor Technology Management Internet Client/Server LAN/WAN Microprocessors 1970s 1980s 1990s 2000s 6
Slide 7: Blue Chip Customer Base
Blue Chip Customer Base United States International * All trademarks are owned by their respective companies. 7
Slide 8: 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 1.6 million course participants • 49%
Slide 9: 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 Toronto Tokyo 9 Chicago Paris Stockholm London Atlanta
Slide 10: International Infrastructure Supports Rapid Growth
International Infrastructure Supports Rapid Growth Corporate Headquarters Wholly-owned subsidiaries Centralized Support Functions Los Angeles, CA and Reston, VA •• In place 18-28 years World-class course President and CEO • International development staff process CAO Administration • Uniform • World
Slide 11: Experienced Management Team
Experienced Management Team Yrs. With Yrs. Of Company Experience Name Nicholas R. Schacht President and CEO 3 24 Mary C. Adams Chief Administrative 30 33 Officer LeMoyne T. Zacherl Chief Financial Officer 1 30 Magnus Nylund Chief Information 14 14 Officer David E. Taylor, Jr. Worldwide VP, 3 12 Mark
Slide 12: Comprehensive Delivery Model
Comprehensive Delivery Model Education Center ILT Courses On-Site ILT Courses •Marketing •Content •Instructors •Operations ~80% of Revenue ~20% of Revenue 12
Slide 13: Proprietary Library of Instructor-Led Courses
Proprietary Library of 146 Instructor-Led Courses Number of Total Course Hours of Curriculum Titles Training • Windows Systems and Exchange 16 468 • SQL Server 12 289 • Windows Development 16 402 • RDBMS, and Oracle Databases 9 258 • Web Development and XML 12 264 • Applied Management 8 150 • Key Bu
Slide 14: High Quality Team of Instructors
High Quality Team of Instructors • Over 682 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 8-12 courses per year “as needed” 14
Slide 15: 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 15
Slide 16: Revenue
Revenue 250 200 $ Millions 150 100 50 0 2000 2001 2002 2003 2004 2005 Fiscal Year 16
Slide 17: Net Income
Net Income 50 40 30 $ Millions 20 10 0 - 10 2000 2001 2002 2003 2004 2005 Fiscal Year 17
Slide 18: Summary Operating Model
Summary Operating Model Potential(1) 2000 2001 2002 2003 2004 2005 Long Term Revenues 100% 100% 100% 100% 100% 100% 100% Gross Profit 64% 59% 54% 52% 52% 50% 58-60% Course Development 5% 5% 5% 5% 5% 5% 5% Sales and Marketing 25% 28% 29% 29% 31% 28% 27% General & Administrative 11% 12% 14% 15% 16% 17
Slide 19: Investment Opportunity
Investment Opportunity • Strong, clean balance sheet • $75 million in cash and available for sale securities at 3/31/06, and no debt • All receivables from corporations and governments • No off-balance sheet transactions • Clear growth strategy • Maintain IT training market presence • Significantly
Slide 20: Thank You
Education You Can Trust Thank You 20
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