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LEAI: Outlining the Company's Growth Initiatives

09/06/2017
By M. Marin

OTC:LEAI

Florida-based Legacy Education Alliance (OTC:LEAI) is a global educational training company that has implemented several growth initiatives, including international expansion and increased focus on enhancing its online delivery of courses. Reflecting the company’s growth-oriented measures, Legacy’s total cash sales advanced 16.4% year-over-year in the first half of 2017 to $51.2 million.

The company expects to achieve continued growth and margin expansion through product mix shifts, as it expands its online course delivery and evaluates opportunities to expand its course offerings, brand development and price level improvements, as well as potential new business opportunities in related areas, either through organic development or acquisition. Management expects to introduce several new branded course offerings in the near-term.

In implementing its growth strategies, Legacy is benefitting from several positive trends, including rising interest in financial training within emerging markets and the industry shift to online delivery of training courses. With its International expansion, the company can leverage its expertise in new markets and, at the same time, benefit from positive underlying trends in several emerging markets as more and more people become interested in financial training and online learning. For instance, Africa has become one of the fastest growing e-learning markets in the world, according to recent studies, while Asia is also growing rapidly. The company opened new offices in South Africa and Hong Kong in 2015.

Legacy also has cost containment efforts underway that are expected to drive margin improvements. The benefits of these measures have been masked in 2017 by a $1.2 million investment in an ERP (Enterprise Resource Planning) system that Legacy is implementing to drive efficiencies. 

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