CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--New Horizons Worldwide, Inc. (OTCBB:NEWH) today reported financial results for the first quarter ended March 31, 2008.
Revenue for the quarter ended March 31, 2008 totaled $9.4 million, compared to $14.8 million in the comparable 2007 period. Revenue from Company-owned training centers declined to $3.3 million in the quarter ended March 31, 2008 from $9.3 million in the comparable period of 2007, as a result of the disposal and re-franchising of four Company-owned training centers during 2007. Franchising revenue increased to $6.1 million in the first quarter of 2008 as compared to $5.6 million in the first quarter of 2007. Royalty revenue increased by $936,000 in the quarter ended March 31, 2008 to $5.1 million from $4.2 million in the comparable 2007 period, partially due to the re-franchising of Company-owned training centers.
The Company had operating income of $1.5 million in the first quarter of 2008, compared to an operating income of $977,000 in the first quarter of 2007. The Company defines operating income as income before gains (losses) from the sale of assets, interest and income taxes. The improvement reflects increased margins in both the Company's Franchising segment and its Company-owned training centers segment. The Company's net income was $1.4 million for the three months ended March 31, 2008 compared to a net income of $1.2 million in the comparable 2007 period. The first quarter of 2007 benefited from $555,000 of non-recurring gain on sale of Company-owned training centers.
For the three months ended March 31, 2008, total system-wide revenue from all franchised and Company-owned training centers was $100.0 million compared to total system-wide revenue for the comparable 2007 period of $91.6 million, an increase of 9.2%.
Mark A. Miller, President and Chief Executive Officer of New Horizons, stated, "We are pleased with the way we have started 2008. The impact from the strategic plan we put in place a year ago is benefiting the business. We have continued the roll-out of our proprietary delivery methodology - Mentored Learning, and we have introduced a new and more robust career development offering for individuals. We also continue to enhance our infrastructure and are working to expand our product offerings and brand recognition. As always, we appreciate the efforts of our employees, and the support of our franchise owners and their staffs, our industry partners and everyone in the New Horizons network in making our results possible."
With over 300 centers in 60 countries, Conshohocken, Pennsylvania based New Horizons Worldwide, Inc. (OTC Bulletin Board: NEWH) is the world's largest independent IT training company. Through an integrated learning approach that ensures that new knowledge can be applied to real life situations, New Horizons delivers a full range of technology and business skills training from basic application and desktop productivity tools to complex and integrated business systems. New Horizons continues to expand its offerings, locations, and solutions to meet the growing demands placed on organizations and their employees. For more information, or to find a local New Horizons Computer Learning Center, visit www.newhorizons.com.
Certain matters discussed in this press release are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and as such involve risks and uncertainties. Any statements about expectations, beliefs, plans, objectives, assumptions, future events or performance are not historical facts and are forward-looking statements. The forward-looking statements in this press release are based upon beliefs, assumptions and expectations of the Company's management as to the Company's future operations and economic performance, taking into account the information currently available and include comments regarding management's future outlook and financial performance of the Company. These statements are not statements of historical fact, and the Company's actual results may differ significantly from the results discussed in the forward-looking statements. Readers should not place undue reliance on these forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, achievements or transactions of the Company or the benefits of the proposed transaction to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Many of the factors which could impact the Company and the forward-looking statements contained herein are included in the Company's filings with the Securities and Exchange Commission.