Whitney Information Network, Inc. Reports Results for Year Ending December 31, 2008
CAPE CORAL, Fla.,
"Revenues for the year ended
Net income in 2008 included
"We believe 2008 was a stabilizing year for our company and we are now
well positioned for an improved 2009," commented
Peck continued, "Decreased sales in 2008 were affected by the suspension
of proprietary brands. The company is proud to have recently announced a
strategic alliance with media celebrity and motivational speaker, Montel
Williams, to provide training designed to help people enhance their wellbeing
- financially, physically, emotionally and spiritually. Additionally, Whitney
has announced a strategic alliance with personal finance experts, Ken and
About
Special Note Regarding Forward Looking Statements:
This press release includes certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements include all statements other than those made solely with respect to
historical facts. These statements involve known and unknown risks,
uncertainties and other factors that may cause the registrant's actual results
or performance to be materially different from any future results or
performance expressed or implied by these forward-looking statements. These
factors include those factors which can be found in our Form 10-K for the year
ended
WHITNEY INFORMATION NETWORK, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except share data)
Years ended
December 31,
------------
2008 2007
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Assets
Current assets:
Cash and cash equivalents $23,594 $33,012
Restricted cash 13,492 8,449
Accounts receivable, net 172 439
Notes receivable, current portion 204 88
Deferred course expenses, current portion 22,070 19,251
Prepaid advertising and other prepaid expenses 2,076 3,896
Inventory 953 1,437
Assets held for sale 3,748 2,874
----- -----
Total current assets 66,309 69,446
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Notes receivable, net of current portion 9,677 10,073
Property and equipment, net 4,046 11,165
Investment and development costs in real estate 1,227 321
Intangible assets, net 195 432
Deferred course expenses, net of current portion 13 4
Other assets 141 243
--- ---
Total assets $81,608 $91,684
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Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable $4,516 $6,768
Income taxes payable 799 777
Accrued course expenses 1,440 2,886
Other accrued expenses 6,611 7,190
Accrued salaries, wages and benefits 851 2,874
Accrued executive severance - 1,950
Long-term debt, current portion 87 125
Deferred rental incentives, current portion 201 114
Deferred revenue, current portion 116,642 120,821
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Total current liabilities 131,147 143,505
------- -------
Long-term debt, net of current portion 2,913 2,952
Deferred rental incentives, net of current
portion 152 451
Deferred revenue, net of current portion 70 16
-- --
Total liabilities 134,282 146,924
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Commitments and contingencies
Stockholders' deficit:
Preferred stock, no par value, 10,000,000 shares
authorized, no shares issued and outstanding - -
Common stock, no par value, 25,000,000 shares
authorized, 11,738,587 shares issued and
outstanding, as of December 31, 2008 and 2007 2,591 2,591
Paid-in capital 2,507 1,842
Cumulative foreign currency translation
adjustment 1,236 (1,659)
Accumulated deficit (59,008) (58,014)
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Total stockholders' deficit (52,674) (55,240)
-------- --------
Total liabilities and stockholders' deficit $81,608 $91,684
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WHITNEY INFORMATION NETWORK, INC. AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Income (Loss)
(in thousands, except per share data)
Years ended
December 31,
------------
2008 2007
---- ----
Revenue $171,735 $207,634
Operating costs and expenses:
Direct course expenses 81,459 103,533
Advertising and sales expenses 51,083 61,314
General and administrative expenses 34,784 38,437
Impairment of assets 3,056 -
Special items 1,559 12,410
Total operating costs and expenses 171,941 215,694
Loss from operations (206) (8,060)
Other income:
Other income 179 191
Interest income 1,300 2,193
Interest expense (217) (283)
Equity loss from related parties (163) (489)
Gain on sale of assets 994 35
Total other income 2,093 1,647
Income (loss) before income taxes 1,887 (6,413)
Income tax provision (1,305) (225)
Net income (loss) $582 $(6,638)
Net income (loss) per share:
Basic $0.05 $(0.57)
Diluted $0.05 $(0.57)
Weighted average common shares outstanding:
Basic 11,739 11,739
Diluted 11,739 11,739
Comprehensive income (loss):
Net income (loss) $582 $(6,638)
Cumulative foreign currency translation adjustments 2,895 (499)
Comprehensive income (loss) $3,477 $(7,137)
WHITNEY INFORMATION NETWORK, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
Years ended
December 31,
------------
2008 2007
---- ----
Cash flows from operating activities:
Net income (loss) $582 $(6,638)
Adjustments to reconcile net income (loss) to net
cash (used in) provided by operating activities:
Depreciation and amortization 1,382 1,620
Impairment of assets 3,056 -
Deferred rental incentives (212) 100
Stock-based compensation costs 665 753
Gain on sale of assets (994) (35)
Equity loss 163 489
Changes in operating assets and liabilities:
Restricted cash (5,043) (924)
Accounts receivable, net (68) 2,934
Prepaid advertising and other prepaid expenses 1,820 (1,377)
Inventory 484 (376)
Deferred course expenses (2,828) (4,525)
Other assets 102 (177)
Accounts payable (2,252) 795
Accrued course expenses (1,446) 1,636
Deferred revenue (4,125) 4,466
Other accrued expenses (579) 1,370
Accrued salaries, benefits and wages (2,023) (1,091)
Accrued executive severance (1,950) 1,950
Income taxes payable 22 232
-- ---
Net cash (used in) provided by operations (13,244) 1,202
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Cash flows from investing activities:
Purchase of property and equipment (364) (1,825)
Proceeds from notes receivable 115 84
Proceeds from the sale of assets 3,032 5,038
Investments in and advances to related parties,
net (137) (961)
----- -----
Net cash provided by investing activities 2,646 2,336
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Cash flows from financing activities:
Proceeds from issuance of long-term debt 7 70
Principal payments on long-term debt (146) (3,318)
Distributions to RDE partner (1,576) -
------- -
Net cash used in financing activities (1,715) (3,248)
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Effect of foreign currency translation 2,895 (499)
----- -----
Net decrease in cash and cash equivalents (9,418) (209)
Cash and cash equivalents at beginning of year 33,012 33,221
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Cash and cash equivalents at end of year $23,594 $33,012
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SOURCE
CONTACT:
+1-212-490-9095