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LEAI: Legacy Produces Another Strong Quarter

05/23/2018
By M. Marin

OTC:LEAI

Legacy Education Alliance (OTC:LEAI) reported a 17.4% year-over-year improvement in first quarter 2018 total revenue to $25.7 million. This was ahead of our forecast of $24.0 million. The company’s financial results reflect the benefits of growth initiatives such as international expansion, increased focus on online delivery of its courses and on boosting fulfillment.

The company also achieved a 13.1% year-over-year total cash sales advance to $27.6 million. With strong cash sales, the company generated robust cash from operations. The company is optimistic about its brand development initiatives. Its goals for 2018 and beyond also include further expansion in the delivery of content via digital channels, an initiative that is expected to drive margin expansion.

In total, reported revenue from the company’s UK and Other Foreign Market segments came in at $9.8 million, up 5.6% compared to the prior year.

Balance Sheet and Cash Flows

Legacy strengthened its balance sheet during the first quarter of 2018, ending the period with $7.2 million of cash, up from $6.0 million at the end of the fourth quarter of 2017. The company generated $1.4 million of cash from operations in the first quarter of 2018.

Setting New Records

International continues to represent a significant opportunity for growth, as the company opens new markets – often through digital channels. Legacy has actively developed programming in offshore markets, particularly in Australia, South Africa and Asia. Legacy recently announced that a basic training class it hosted in March in Hong Kong produced record sales for the company. In addition, a Legacy student symposium held in the UK last month also established a new attendance record for the company. The company intends to continue to introduce additional products and brands in Hong Kong and other offshore markets in 2018.

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