Legacy Education Alliance, Inc. Announces Third Quarter 2016 Results

Legacy Education Alliance, Inc. (OTCQB: LEAI) ( www.legacyeducationalliance.com), a leading international provider of practical, high-quality, and value-based educational training on the topics of personal finance, entrepreneurship, real estate, and financial markets investing strategies and techniques, announces financial results for the three months ended September 30, 2016.

2016 THIRD QUARTER FINANCIAL HIGHLIGHTS
  • Net income was $1.2 million, or $0.05 per basic and diluted common share, for the third quarter 2016, compared to a net loss of $(1.0) million, or $(0.04) per basic and diluted common share, for the third quarter 2015.
  • Non-U.S. revenue was $8.7 million in the third quarter 2016, compared to $8.1 million in the third quarter 2015, an increase of $0.6 million or 7.4%.
  • Total operating costs and expenses were $21.7 million for the third quarter 2016, compared to $23.7 million for the third quarter 2015, a decrease of $2.0 million or 8.4%.

"We generated significant year-over-year improvement in net income for both the three and nine month periods ended September 30, 2016," said Anthony Humpage, CEO of Legacy Education Alliance.

"Our focus remains on brand and channel diversification, and we're just scratching the surface of the potential in international markets. With our strengthening financial position, we believe we can capitalize on growth opportunities that will drive long-term shareholder value improvement," concluded Humpage.

Q3 2016 VERSUS Q3 2015 RESULTS

Revenue was $22.5 million for the three months ended September 30, 2016 compared to $22.5 million for the three months ended September 30, 2015. Revenue was flat year over year, as the increase in recognition of revenue from expired contracts of $1.2 million or 39.6% and increased attendance (i.e. fulfillment) of $0.4 million or 2.1%, was offset by the decline in recognition of revenue of $1.6 million or 100.0%, due to the change in our revenue recognition policy with regards to DVD fulfillment. Cash sales were $21.5 million for the three months ended September 30, 2016 compared to $24.2 million for the three months ended September 30, 2015, a decrease of $2.7 million or 11.2%. The decrease was driven primarily by a $4.8 million decrease in our U.S. segment related to the effects of a sluggish U.S. economy, which was partially offset by $3.3 million increase in our International segment.