Saturday, November 04, 2017 3:19:09 PM
Zacks Small Cap Research
November 3, 2017
Legacy Education Alliance (LEAI), a global educational training company that has served more than two million students internationally since it first began operations, announced this week that it has settled credit card litigation and will receive an aggregate sum of $5.0 million in the settlement. The suit was originally filed in 2013.
On October 31, 2017, Legacy entered into an agreement with several financial institutions to settle litigation that had been pending in New York. Among other things, Legacy sought to recover $8.3 million in reserve funds. Legacy agreed to settle this case. The agreement stipulates that the funds will be transferred to Legacy within seven business days and will therefore be included in the company’s 4Q17 financial statements and will generate a one-time EPS benefit, which we estimate at $0.18 to $0.22 per share.
Consistent with the company’s goal to be the leading global provider of services and products that enable people to assume control of their finances, Legacy has implemented several growth initiatives. These include international expansion and increased focus on enhancing the online delivery of its courses in order to provide greater flexibility in a digital world. With Legacy’s domestic operations accounting for over 50% of total revenue, international presents a significant opportunity for growth. The funds from the settlement will bolster the cash reserves that the company can tap to further its growth initiatives.
Thus far, the company’s measures have resulted in strong growth. For example, in the first half of 2017, Legacy’s total cash sales advanced 16.4% year-over-year to $51.2 million. The company expects to achieve continued growth and margin expansion through product mix shifts, as it expands its online course delivery and evaluates opportunities to expand its course offerings, and brand development and price level improvements. Management also expects to introduce several new branded course offerings in the near-term and has indicated that it would consider potential new business opportunities in related areas, either through organic development or acquisition. The settlement funds will help Legacy with these strategies.
READ THE FULL RESEARCH REPORT HERE
SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR.
DISCLOSURE: Zacks SCR has received compensation from the issuer directly or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks provides and Zacks receives quarterly payments totaling a maximum fee of $30,000 annually for these services. Full Disclaimer HERE.
Recent LEAI News
- Form 10-Q/A - Quarterly report [Sections 13 or 15(d)]: [Amend] • Edgar (US Regulatory) • 07/17/2024 10:43:40 AM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 07/15/2024 09:28:31 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/08/2024 09:26:26 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/08/2024 09:25:58 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/08/2024 09:23:20 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 11/20/2023 10:25:54 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 11/15/2023 07:36:27 PM
North Bay Resources Commences Operations at Bishop Gold Mill, Inyo County, California; Engages Sabean Group Management Consulting • NBRI • Sep 25, 2024 9:15 AM
CEO David B. Dorwart Anticipates a Bright Future at Good Gaming Inc. Through His Most Recent Shareholder Update • GMER • Sep 25, 2024 8:30 AM
Cannabix Technologies and Omega Laboratories Inc. Advance Marijuana Breathalyzer Technology - Dr. Bruce Goldberger to Present at Society of Forensic Toxicologists Conference • BLOZF • Sep 24, 2024 8:50 AM
Integrated Ventures, Inc Announces Strategic Partnership For GLP-1 (Semaglutide) Procurement Through MedWell USA, LLC. • INTV • Sep 24, 2024 8:45 AM
Avant Technologies Accelerates Creation of AI-Powered Platform to Revolutionize Patient Care • AVAI • Sep 24, 2024 8:00 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM