Server: Netscape-Enterprise/2.0a Date: Mon, 29 Dec 1997 19:11:46 GMT Accept-ranges: bytes Last-modified: Fri, 05 Dec 1997 14:20:14 GMT Content-length: 6434 Content-type: text/html Press Release - july 15

FOR:Nobel Education Dynamics, Inc.

FOR IMMEDIATE RELEASE

CONTACT:
Jack Clegg
Chairman/Chief Executive Officer
Brian Zwaan
Executive Vice President/Chief Financial Officer
(610) 891-8200

INVESTOR RELATIONS:
Cheryl Schneider, Stacey Levitz
Michael McMullan (media)
Morgen-Walke Associates, Inc.
(212) 850-5600

 

NOBEL EDUCATION DYNAMICS, ANNOUNCES THIRD QUARTER
RESULTS AND RESTRUCTURING


MEDIA, PENNSYLVANIA, November 5, 1997 --
NOBEL EDUCATION
DYNAMICS, INC. (NEDI-OTC), announced a third quarter loss of $285,000 or $0.04 per share, which did not meet analyst expectations. A.J. Clegg, Chairman/CEO indicated that three areas,
previously stated as potential challenges to earnings, performed more negatively than expected; these areas are the summer programs, Indiana operations and Merryhill (California) operations.

Clegg announced several restructuring initiatives which the Company expects will reverse these performance shortfalls in 1998:

1. A Vice President of Western Operations has been hired, who has over 14 years experience in managing multi-site educational organizations. She will join the Company in November. She
will have her office at Merryhill in Sacramento, California so that she can give priority to Merryhill's California operations.

2. A Director of Summer Programs has been hired to concentrate on the elementary campus summer operations to reverse the seasonal losses at these schools. Mr. Otto Paier has joined Nobel, bringing years of professional experience managing successful summer camp programs on private school campuses.

3. First line operations management has been enhanced with the hiring of additional experienced field management in the Carolina's, Virginia, New Jersey and Las Vegas. This represents the completion of the field management restructuring previously announced by the Company.

4. A search is continuing for an experienced President/COO. CEO Jack Clegg, stated that as the Company approaches the $100,000,000 revenue level, it is necessary to have an experienced, nationwide, multi-site COO to concentrate on the day-to-day operations, so that he can concentrate on future planning. Mr. Clegg stated that the search is concentrating on individuals who can take Nobel to its maximum potential.

5. Clegg stated that the Indianapolis operation has continued to disappoint Nobel, and that the Company is looking at all its options to solve this problem.

Mr. Clegg stated that the loss of momentum in the third quarter, coupled with the losses associated with the opening of several new schools in the Fall, will cause the Company's fourth quarter performance also to be below analysts' expectations. Furthermore, the Company is considering taking a pretax restructuring charge in the fourth quarter in the vicinity of $3 million, most of which are non-cash in nature. Clegg stated that this restructuring charge would in 1997 put bad news behind us and provide a much firmer base for a 1998 performance rebound.

Nobel will hold a nationwide conference call to discuss its third quarter earnings on November 6, 1997 at 10:00 a.m. EST. To participate please call 703-736-7364 password NEDI.

Nobel operates 129 preschools, elementary and middle schools in 14 states, with the capacity to educate 18,200 children.

Except for historical information contained in this report, the information in the report consists of forward looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. Potential risks and uncertainties include changes in market demand, market conditions, competitive activities, as well as the acceptance of newly-developed and converted schools and the performance of acquired businesses. Other risks and uncertainties are discussed in the Company's filings with the Securities and Exchange Commission.

NOBEL EDUCATION DYNAMICS,INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS

 

Third Quarter Ended
September 30
Nine Months Ended
September 30
1997
1996
1997
1996
Revenues
$18,926,298
$13,719,005
$58,590,684
$43,208,018
Net Income (loss)
$(285,175)
$209,627
$1,438,902
$1,810,240
Primary earnings per share
$(0.04)
$0.03
$0.19
$0.25
Fully diluted earnings per share
$(0.04)
$0.03
$0.19
$0.25

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