SYDNEY, NS, March 31 /CNW/ - Nexient Learning Inc. (NEX: NXN.H) Canada's
largest provider of skills development, announced today its financial results
for the fourth quarter and audited financial results year ended December 31,
"We are pleased to report our fourth quarter and audited 2007 financial
results. The results for the quarter and the year end demonstrate the
leveragability and value of the national model. We continue to improve
performance from our national service platform, streamlined processes and
focus on operational excellence." said Colleen Moorehead, President & CEO.
"Revenues were relatively flat for the year at $61,239,016 versus $62,750,401,
while gross margin increased by 2% and EBITDA had a significant recovery of
$4,903,144 from $3,764,641 in 2007 versus a loss in 2006 of $1,138,503. The
line of business mix demonstrates significant growth in leadership and
business skills of 30%, and Business Process Improvement of 11% while
registering a decline in technology of 18%. The technology revenue decline is
the result of a drive for enhanced profitability as we chose to exit
unprofitable branches and partner relationships. We were cash flow positive
from operations throughout the fiscal year."
In the 2007 financial results, the company determined that its goodwill
was impaired by $11,199,780 based on the results of the capital market
activities and financial valuation that were part of the Company's review of
strategic alternatives. As a result, net loss for the year was $14,599,471 in
2007 versus $8,881,748 in 2006. Excluding the goodwill impairment, net loss
for 2007 improved by $5.5 million compared to 2006.
Ms. Moorehead continued: "During the year the Company has been engaged in
activities to better meet our customer's needs, position the Company
competitively and deliver improved financial performance to our key
stakeholders. Our activities included managing vendor relationships on a
national basis, streamlining activities and systems, and role specialization.
We also analyzed our customer markets to develop revenue growth strategies
that include sales segmentation, product innovation and partnering." Added Ms.
Moorehead, "Throughout the year, the company engaged in capital market
activities to retire debt obligations that were scheduled to mature in late
2007. Our lenders extended their debt beyond the November 2007 maturity date.
As a subsequent event in 2008, the company has reached a memorandum of
understanding with these lenders on a recapitalization plan that will provide
a decrease in absolute debt level and annual debt service costs, improved
working capital and will prepare the Company for growth."
Three months ended Twelve months ended
In millions, except per December 31st December 31st
share data Unaudited Audited
2007 2006 2007 2006
Revenues $16.55 $18.00 $61.24 $62.75
EBITDA (*) 1.31 (0.93) 3.76 (1.14)
Net Income (Loss), Cont.
Operations (11.82) (3.13) (14.60) (8.72)
Net Income (Loss), Disc.
Operations - 0.15 - (0.16)
Net Income (Loss) (11.82) (2.98) (14.60) (8.88)
Earnings (Loss) Per Share ($0.34) ($0.08) ($0.42) ($0.31)
1 EBITDA - Earnings before interest, taxes, depreciation and amortization
does not have a standardized meaning under GAAP. For our purposes it is
calculated as revenues minus cost of revenues, general and
administrative, sales and marketing, and restructuring expenses. However,
management believes that this is a useful performance measure as it
approximates cash generated from operations.
Nexient Learning Inc. has filed via SEDAR its audited annual consolidated
financial statements and Management's Discussion and Analysis for the year
ended December 31, 2007, including further discussion and analysis of fourth
quarter events or items that affected results of operations, financial
position and cash flows. These filings will be available via www.sedar.com and
is currently available on the Company's website at www.nexientlearning.com.
The Company's Annual General and Special Meeting of shareholders will be
held in May or early June in Toronto subsequent to the preparation and
circulation of the 2007 Annual Report and management information circular.
Specific details to follow.
On March 26, 2008, Nexient announced that it has entered into a
memorandum of understanding with certain of its lenders with respect to a
proposed recapitalization of the Company. The full details are disclosed in a
separate press release on this date and also detailed in the MD&A. The
independent directors of the Company, after consultation with their legal and
financial advisors, have approved the recapitalization, subject to stock
exchange approval, and have determined to recommend the recapitalization for
approval by Nexient's shareholders. Shareholders will be asked to approve the
recapitalization and related transactions at an upcoming annual and special
meeting of shareholders expected to be held in the second quarter of 2008. A
management information circular and other meeting materials detailing the
terms of the recapitalization will be mailed to shareholders in advance of the
meeting, in accordance with stock exchange and securities law requirements.
About Nexient Learning Inc.
Nexient Learning Inc. is the largest corporate training and consulting
company in Canada. Nexient delivers the broadest choice of top calibre,
industry-recognized curricula in information technology, business process
improvement and leadership and business skills. Nexient's learning services
include learning management systems, curriculum development and strategic
consulting. With 18 locations across Canada, Nexient offers innovative
learning solutions in both classroom and online formats. Nexient is traded on
the NEX as "NXN.H. More information is available on the company's website at
Forward Looking Statements
This press release contains forward-looking statements. Forward-looking
statements involve known and unknown risks, uncertainties and other factors
including economic conditions which may cause the actual results, performance
or achievements of the Corporation to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements. The recapitalization remains subject to customary
conditions including receipt of shareholder approval, and there can be no
assurance that the recapitalization will be completed as scheduled or at all.
The Company specifically disclaims any obligation to update these
forward-looking statements, except as required by applicable securities laws.
There can be no assurance that the recapitalization will be completed or that
other forward-looking statements will prove to be accurate and readers should
not place undue reliance on forward-looking statements.
For further information:
For further information: Donna de Winter, Chief Financial Officer,
Nexient Learning Inc., (416) 964-8688 ext. 2636,