Nexient Learning Inc. Announces Results for the Second Quarter of 2008 and Appointment of New Board Member



    
    Second Quarter Highlights

    - On June 30, 2008, the announced recapitalization plan closed following
      approval of the plan by Shareholders at the Annual General Meeting held
      in Toronto on June 4, 2008.
    - Revenue for the second quarter was flat compared to second quarter of
      2007.
    - The declining trend in the IT line of business, particularly in IT Open
      Enrolment, appears to be slowing.
    - The top 25 revenue-generating accounts have increased their utilization
      of Nexient services, returning to the levels seen in 2007 following the
      implementation of our customer sector strategy.
    - Revenue in the Leadership and Business Skills and the Learning Services
      lines of business grew by 20% during the quarter as compared to the
      second quarter of 2007.
    - Accounts Payable and accrued liabilities were reduced by $2.8 million
      in the first six months of 2008.
    

    SYDNEY, NS, Aug. 15 /CNW/ - Nexient Learning Inc. (NXL.H: NEX), announced
today its unaudited financial results from the second quarter ended June 30,
2008. Revenue for the second quarter of 2008 was $16.6 million versus
$17.0 million in the second quarter of 2007. EBITDA was $1.7 million compared
to $1.9 million in the same period.
    After a disappointing first quarter of 2008, revenue for the second
quarter recovered to 2007 levels as the sales organization re-developed
individual customer relationships following the January 2008 announced
adjustments within our sales divisions. Under the leadership of new Chief
Executive Officer, Donna de Winter, Nexient has continued to invest in
personnel, training and resources directed toward its customer-facing service
organization in the second quarter of 2008. These efforts are starting to take
hold.
    While revenue continued to be negatively impacted by the decrease in
information technology training, it was offset in part by growth in the
Leadership and Business Skills and Learning Services lines of business.
    "In the first and second quarter of 2008, we introduced initiatives to
improve performance in the open enrolment business. In July 2008 we hired a
senior leader responsible for inside sales, customer service and our open
enrolment offering. We are excited to add Dean Nadorozny as the Senior Vice
President, Open Enrolment to our leadership team and access his strong
background in training, technology and general management", said Donna de
Winter, President & Chief Executive Officer.
    Gross margin as a percentage of revenue has stabilized in our variable
cost model. Although second quarter gross margin for 2008 decreased slightly
compared to the second quarter of 2007, we achieved a comparable margin for
the first six months of both years. Although already attractive, increases to
gross margin should occur with revenue growth, yield increases as a result of
open enrolment initiatives, and innovation in curriculum and training
delivery.

    
    Financial Results
                                  Three months ended        Six months ended
                                       June 30th                June 30th
    In millions, except
     per share data                    Unaudited                Unaudited

                                    2008        2007         2008       2007

    Revenues                      $16.62      $16.98       $29.82     $33.03

    EBITDA(*)                       1.71        1.87         2.28       3.01

    Net Income (Loss)              (0.11)       0.29        (1.76)     (0.60)

    Earnings (Loss) Per Share     ($0.01)      $0.03       ($0.20)    ($0.07)
    

    EBITDA - Earnings before interest, taxes, depreciation and amortization
    does not have a standardized meaning under GAAP. However, management
    believes that this is a useful performance measure as it approximates
    cash generated from operations.

    Ms. De Winter added: "During the quarter, Nexient completed the
previously-announced recapitalization, the implementation of its customer
sector strategy and the transition to a new Chief Executive Officer. Our
employees, partners and customers rallied around the Company in this
transformative quarter and their support is the reason we exited the second
quarter stronger than we started it. Our recruitment efforts for our customer
facing positions were hugely successful, but we are still in the recruitment
process for a chief financial officer. We have a strong and cohesive senior
management team, and it is critical that any additional executive talent fit
our new mindset. With the recapitalization and the customer strategy
implementation completed, the company is resourced and ready to capitalize on
its market leadership position to serve its customers and drive revenue
growth."
    The Board of Directors is pleased to announce that Rod Phillips has
agreed to join the Board of Directors. Mr. Phillips has been the President and
CEO of Shepell.fgi since 2002, one of North America's leading providers of
health and productivity solutions for employees and organizations. Under
Mr. Phillips' leadership, Shepell.fgi supports over 7,000 organizations and
8 million employees and their family members. Shepell-fgi is a division of
TSX-listed Morneau Sobeco. Prior to joining Shepell.fgi, Mr. Phillips was a
founder of the Goodmans Venture Group, the ventures group of Goodmans LLP and
Chief of Staff for Mayor Mel Lastman. Previously, he was a principal with KPMG
Consulting.

    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 17 locations across Canada, Nexient offers innovative
learning solutions in both classroom and online formats. Nexient is traded on
the NEX as "NXL.H". More information is available on the company's website at
www.nexientlearning.com.

    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 information is based upon certain material
factors or assumptions that were applied in drawing a conclusion or making a
forecast or projection as reflected in the forward looking statements,
including the perception of historical trends, current conditions and expected
future developments. Specifically, trends relating to market opportunity for
one or all lines of business can be impacted by market conditions, business
competition and technological change. The Company has initiated open enrolment
strategies to increase the number of students per class for the purpose of
increasing gross margin but there can be no assurances that number of students
will increase or that the margin will increase as a result. 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.
    %SEDAR: 00002373E




For further information:

For further information: Donna de Winter, Chief Executive Officer,
Nexient Learning Inc., (416) 964-8688 Ext. 2636,
ddewinter@nexientlearning.com

Organization Profile

NEXIENT LEARNING INC.

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