TORRANCE, Calif., May 27, 2004 (PRIMEZONE) -- Digital Learning Management Corporation (OTCBB:DGTL), a provider of private post-secondary education in North America, today reported financial results for the first quarter ended March 31, 2004.
Revenues for the quarter were $998,255, compared with $1,637,310 for the same period one year ago. The decrease was due in part to a decrease in student enrollment and the fact that revenue in the first quarter of 2003 included a transaction pursuant to which one of the customers had an extraordinary amount of funds available on a one-time basis to train a substantial number of students in that quarter. This sale opportunity accounted for $530,000 of additional revenue for the first quarter of 2003.
Education service expenses included direct operating expenses of the Company, consisting primarily of contract salaries, occupancy and supply expenses, and bad debt expenses. As a percentage of revenues, educational services expenses decreased to 21% of revenues in the first quarter of 2004 from 35% of revenues for the first quarter of 2003.
The Company was able to obtain efficiencies by matching student demand for classes with contract instructors for those classes.
Zeb Bhatti, CEO of Digital Learning Management Corporation stated, "The Company achieved significant milestones towards capitalization, restructuring and rolling out its growth strategy via acquisition during the first quarter of 2004." He added, "The numbers for our first quarter as a publicly traded company reflect certain non-recurring income and expense items, including expenses from the process of going public, which include acquisition of the shell, and legal and accounting costs. The Company is on-track with its growth plans, having completed its reverse merger, a $3.0 million convertible note offering and a definitive agreement for acquisition of two additional vocational schools. Overall we are pleased with the performance and execution of the Company's strategic long-term growth plan."
Net loss for the quarter totaled $3,040,043, reflecting ($0.15) per share, compared with $173,899, reflecting $0.01 per share for the same quarter one year ago. The current period included a $3,000,000 non-recurring, non-cash beneficial conversion feature interest expense and a one time non-recurring cash charge of $213,362 for costs incurred with the reverse merger.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the
Three Months Ended
March 31,
2004 2003
(Unaudited)
------------ ------------
REVENUES $ 998,255 $ 1,637,310
OPERATING EXPENSES:
Educational services 208,017 565,176
General and administrative 368,282 321,978
Depreciation expense 17,146 18,943
Marketing and advertising 230,213 409,081
Total Operating Expenses 823,658 1,315,178
INCOME FROM OPERATIONS 174,597 322,132
OTHER INCOME (EXPENSE)
Shell acquisition costs (213,362) --
Interest expense (31,193) (36,851)
Interest expense - non-cash beneficial
conversion feature charge (3,000,000) --
Total Other Income (Expense) (3,244,555) (36,851)
NET INCOME (LOSS) BEFORE INCOME TAXES (3,069,958) 285,281
Income tax (benefit) expense (29,915) 111,382
NET INCOME (LOSS) $ (3,040,043) $ 173,899
NET INCOME (LOSS) PER COMMON SHARE,
BASIC AND DILUTED $ (0.15) $ 0.01
Weighted Average Number of
Common Shares Outstanding,
Basic and Diluted 20,103,981 17,372,839
SELECTED BALANCE SHEET DATA
Cash and cash equivalents $ 1,981,865 $ 143,721
Accounts receivable 1,043,259 640,806
Advances to acquisition target 379,989 --
Prepaid expenses 35,528 80,330
Deferred offering costs 16,219 --
Total Assets $ 4,097,131 $ 1,039,763
Total Current Liabilities 658,579 671,048
Convertible notes payable 3,000,000 --
Total Liabilities 3,658,579 671,048
TOTAL STOCKHOLDERS EQUITY 438,552 368,715
About Digital Learning Management Corporation
Digital Learning Management Corporation (DLMC) is a provider of private post-secondary education in North America. Its education institutions offer a broad range of academic programs in Information Technology, Business & Management, Telecommunications and other Applied Industrial Technologies, culminating in the award of certificates through Bachelor degrees. With its proprietary Web-based Campus Management System (CourseMate Virtual University System), its learning institutions are able to seamlessly implement a 'Blended Learning' environment and provide a powerful learning experience, whether in a traditional classroom setting or delivered directly to a desktop computer. The CourseMate Virtual University System is an end-to-end Campus and Learning Management platform that leverages the Internet to fully integrate all aspects of education, resulting in a profoundly effective way to instruct and learn.
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date.