Server: Netscape-Enterprise/2.0a Date: Mon, 29 Dec 1997 19:11:46 GMT Accept-ranges: bytes Last-modified: Fri, 05 Dec 1997 14:20:14 GMT Content-length: 6434 Content-type: text/html
FOR:Nobel Education Dynamics, Inc.
FOR IMMEDIATE RELEASE
CONTACT:
Jack Clegg
Chairman/Chief Executive Officer
Brian Zwaan
Executive Vice President/Chief Financial Officer
(610) 891-8200
INVESTOR RELATIONS:
Cheryl Schneider, Stacey Levitz
Michael McMullan (media)
Morgen-Walke Associates, Inc.
(212) 850-5600
NOBEL EDUCATION DYNAMICS, ANNOUNCES THIRD QUARTER
RESULTS AND RESTRUCTURING
MEDIA, PENNSYLVANIA, November 5, 1997 -- NOBEL EDUCATION
DYNAMICS, INC. (NEDI-OTC), announced a third quarter loss of $285,000
or $0.04 per share, which did not meet analyst expectations.
A.J. Clegg, Chairman/CEO indicated that three areas,
previously stated as potential challenges to earnings, performed
more negatively than expected; these areas are the summer programs,
Indiana operations and Merryhill (California) operations.
Clegg announced several restructuring initiatives which the Company
expects will reverse these performance shortfalls in 1998:
1. A Vice President of Western Operations has been hired, who
has over 14 years experience in managing multi-site educational
organizations. She will join the Company in November. She
will have her office at Merryhill in Sacramento, California so
that she can give priority to Merryhill's California operations.
2. A Director of Summer Programs has been hired to concentrate
on the elementary campus summer operations to reverse the seasonal
losses at these schools. Mr. Otto Paier has joined Nobel, bringing
years of professional experience managing successful summer camp
programs on private school campuses.
3. First line operations management has been enhanced with the
hiring of additional experienced field management in the Carolina's,
Virginia, New Jersey and Las Vegas. This represents the completion
of the field management restructuring previously announced by
the Company.
4. A search is continuing for an experienced President/COO. CEO
Jack Clegg, stated that as the Company approaches the $100,000,000
revenue level, it is necessary to have an experienced, nationwide,
multi-site COO to concentrate on the day-to-day operations, so
that he can concentrate on future planning. Mr. Clegg stated
that the search is concentrating on individuals who can take Nobel
to its maximum potential.
5. Clegg stated that the Indianapolis operation has continued
to disappoint Nobel, and that the Company is looking at all its
options to solve this problem.
Mr. Clegg stated that the loss of momentum in the third quarter,
coupled with the losses associated with the opening of several
new schools in the Fall, will cause the Company's fourth quarter
performance also to be below analysts' expectations. Furthermore,
the Company is considering taking a pretax restructuring charge
in the fourth quarter in the vicinity of $3 million, most of which
are non-cash in nature. Clegg stated that this restructuring
charge would in 1997 put bad news behind us and provide a much
firmer base for a 1998 performance rebound.
Nobel will hold a nationwide conference call to discuss its third
quarter earnings on November 6, 1997 at 10:00 a.m. EST. To participate
please call 703-736-7364 password NEDI.
Nobel operates 129 preschools, elementary and middle schools in
14 states, with the capacity to educate 18,200 children.
Except for historical information contained in this report, the
information in the report consists of forward looking statements.
These statements involve risks and uncertainties that could cause
actual results to differ materially from those in the forward
looking statements. Potential risks and uncertainties include
changes in market demand, market conditions, competitive activities,
as well as the acceptance of newly-developed and converted schools
and the performance of acquired businesses. Other risks and uncertainties
are discussed in the Company's filings with the Securities and
Exchange Commission.
NOBEL EDUCATION DYNAMICS,INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
September 30
September 30
Revenues
Net Income (loss)
Primary earnings per share
Fully diluted earnings per share