Learning Tree International Inc · OTC:LTRE
Learning Tree International — Investor Presentation (February 2006)
21 slides from Learning Tree International's investor presentation, February 2006
Slide 1: Education Is Our Business
Education Is Our Business 4Q05 Learning Tree International® • 400 N. Continental Blvd, Suite 200 • 1El Segundo, CA • 90245 • 1-310-417-9700 • 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: 3
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Slide 4: Learning Tree Market Position
Learning Tree Market Position • Learning Tree - The world’s leading vendor-independent IT and management training company • IT and management training – large, highly fragmented markets • IT market – estimated at $20 billion • Management market – estimated at $50 billion • No competitor has a large
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 were still customers 5 years later • Over 1.6 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 Toronto Tokyo 10 Chicago Paris Stockholm London Atlanta
Slide 11: 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 17-27 years World-class course President and CEO • International development staff process CAO Administration • Uniform • World
Slide 12: Experienced Management Team
Experienced Management Team Yrs. With Yrs. Of Name Company Experience Dr. David C. Collins Chairman 32 38 Eric R. Garen Vice Chairman 32 38 Nicholas R. Schacht President and CEO 3 24 Mary C. Adams Chief Administrative 30 38 Officer LeMoyne T. Zacherl Chief Financial Officer 1 30 Magnus Nylund Chief
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 14 408 • SQL Server 7 186 • Visual Studio and .NET Development 14 348 • Access 3 78 • RDBMS, Oracle10g and Oracle9i 10 288 • Web Development and XML 14 318 • Ap
Slide 15: High Quality Team of Instructors
High Quality Team of Instructors • Over 675 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” 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 2000 2001 2002 2003 2004 2005 Fiscal Year 17
Slide 18: Net Income
Net Income 50 40 30 $ Millions 20 10 0 - 10 2000 2001 2002 2003 2004 2005 Fiscal Year 18
Slide 19: 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% 60-62% 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 20: Investment Opportunities and Long Term Growth Strategy
Investment Opportunities and Long Term Growth Strategy • Strong, clean balance sheet • $78.0 million in cash and available for sale securities at 12/30/2005, and no debt • All receivables are from corporations and governments • No off-balance sheet transactions • Outperform long-term market growth •
Slide 21: Thank You
Education Is Our Business Thank You 21
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