Franchise News Release: (Feb-24-1999)


New Horizons Reports Record Financial Results

ANAHEIM, California (February 24, 1999) -- New Horizons Worldwide Inc., the world's largest independent computer training company, announced financial results for the fourth quarter and the year ended Dec. 31, 1998.

Revenues for the 1998 fourth quarter were $20.5 million, an increase of 48 percent from $13.8 million for the same period last year. Fourth quarter net income from continuing operations was $1.6 million, or $0.20 per diluted share, an increase of 130 percent compared to net income from continuing operations of $681,000, or $0.09 per diluted share for the fourth quarter of 1997.

For the full year, revenues grew 38 percent to $72.6 million from $52.6 million for 1997. Net income from continuing operations for 1998 was $5.9 million, or $0.77 per diluted share, a 181 percent increase compared to net income from continuing operations of $2.1 million, or $0.28 per diluted share for 1997, before the after tax one-time gain of $1.6 million, or $0.22 per diluted share, as a result of the release of certain Franchise obligations in the first quarter of 1997.

Operating income for the fourth quarter of 1998 was $2.4 million, an increase of $1.4 million from $966,000 for the same period last year. Operating income for the full year was $8.5 million, an increase of 248 percent from $2.5 million for the same period last year. Operating margins for the year improved to 11.7 percent compared to 4.7 percent in 1997. The significant margin improvement is a result of the Company's ability to effectively manage costs while increasing revenues.

Fourth quarter 1998 system-wide revenues were $96.5 million, up 33 percent from $72.8 million during the same period last year. For all of 1998 system-wide revenues grew 34 percent to $357.5 million from $267.4 million for 1997. System-wide revenues are revenues for all training centers, both company-owned and franchised. The increased revenues for 1998 are attributed to the 36 percent revenue growth in company-owned centers, 30 percent revenue growth for franchise locations operating more than 12 months, and the expansion of the network of open locations to 205 at Dec. 31, 1998, compared to 183 at Dec. 31, 1997.

During the first quarter of 1997 the Company incurred an after tax one-time gain of $1.6 million as a result of the release of contractual obligations with a franchisee that operated New Horizons Computer Learning Centers in Albany, Buffalo, Rochester and Syracuse, New York. New Horizons received a termination fee, which amounted to $0.22 per diluted share after tax. The transaction is presented in the financial statements as a gain from release of certain franchise obligations.

New Horizons Worldwide Inc. is the world's leading independent provider of computer training, offering more than 350,000 classes a year, in 30 countries. Founded in 1982, New Horizons is both an operator and franchisor of state-of-the-art computer learning centers. At the end of 1998, the New Horizons Computer Learning Centers network was composed of 194 franchised and 11 company-owned training centers.

New Horizons Worldwide, 714-438-9473




 






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