Message #4 From:
Stock News Bot Date: August 11, 2005 02:06:00 AM
RUSS News Whitney Information Network, Inc. Posts Record Sales of $46.5 Million and Net Income of $3.1 Million for the Second Quarter of 2005
CAPE CORAL, Fla.--(BUSINESS WIRE)--Aug. 11, 2005--Whitney Information Network, Inc. (OTCBB:RUSS), an international provider of post secondary career education programs, today reported record results for the second quarter ended June 30, 2005. Major achievements for the quarter include:
-- Record Sales of $46.5 Million for the quarter
-- Operating Cash Flow of $8.9 Million
-- Net Income of $3.1 Million for the quarter
-- Cash and equivalents of $16.0 Million at June 30
-- Strong sales, earnings and cash flow continuing throughout 2005
Sales revenue for the second quarter showed an increase of $7.9 million, or 20.5%, over the comparable period in 2004 while total revenue for the first six months of the year increased $9.6 million, or 12%, over the previous year. The strong showing for the second quarter resulted in net income of $3.1 million or $0.36 per share (basic) and $0.35 (fully diluted). Year-to-date net income totaled $7.3 million or $0.84 per share and $0.83 per share (fully diluted).
Operating cash flow was $8.9 million for the six months or $1.02 per share (basic) and $0.99 per share (fully diluted).
A key dynamic driving the Company's sales growth was an optimization of its pricing strategy that resulted in a 105% increase in attendance at the Company's 3-Day Basic Training Courses and an increase of 33% in Advanced Trainings attendance as compared to the corresponding period in 2004.
Among the successful second quarter initiatives deployed by the Company was an aggressive campaign to test new marketing vehicles and messages. This effort led to significantly improved response rates for all of the Company's core brands, particularly in major markets where these brands have been well established.
In the last six months the company's marketing research identified which market segments were most responsive to the Company's message, resulting in more efficient use of its advertising dollars.
As the leading provider of advanced course offerings in its market segment, the Company continued to capitalize on its unique position by expanding both the number and diversity of Advanced Trainings offered to students via alternate delivery methods. In particular, the Company cited its expansion of on-demand and real-time Advanced Training delivered over the Internet as a key factor favorably impacting the Company's bottom line.
The company's business outlook for the remainder of the year is positive and is in line with first half performance.
About Whitney Information Network
Whitney Information Network, Inc. (OTCBB:RUSS) is a leading provider of post-secondary education focused on individual wealth creation and personal success. Through its wholly-owned subsidiary, Wealth Intelligence Academy, Whitney Information Network provides its students with comprehensive instruction and mentorship in real estate investment, stock trading, business development and individual investment strategies. Additional information can be found at http://www.russwhitney.com.
Information included in this news release contains forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995 ("Reform Act"). Such statements are based on current expectations and involve a number of known and unknown risks and uncertainties that could cause the actual results and performance of the Company to differ materially from any expected future results or performance, expressed or implied, by the forward-looking statements. In connection with the safe harbor provisions of the Reform Act, the Company has identified important factors that could cause actual results to differ materially from such expectations, including operating uncertainties, uncertainties relating to economic issues and competition. Reference is made to all the Company's SEC filings, including the Company's Reports on Forms 10K, 10Q and other periodic reports.
