Sylvan's earnings nearly double

April 26, 1996|By Michael Dresser | Michael Dresser,SUN STAFF

Sylvan Learning Systems Inc. reported yesterday that its revenues doubled and its profits came close to doing the same during the first quarter.

The Columbia-based educational services company reported that its net income increased to $2.1 million compared with $1.3 million during the comparable quarter of 1995.

Per-share earnings were 13 cents in each quarter because 15.7 million shares were on the market this year, compared with 10.1 million last year.

Sylvan's stock price jumped $1.75 yesterday, to close at $38.75.

The company said its strong 1996 profit growth came in spite of $1.2 million in nonrecurring expenses related to the acquisition of Drake Prometric L.P.

Revenues for the first quarter totaled, $34.5 million, up from $17 million in the first quarter of 1995.

Sylvan said it recorded revenue gains in each of its lines of business.

The company reported that it more than tripled its revenue from computerized educational testing, increasing its sales by $12.5 million to a total of $17.8 million. Meanwhile, its contract educational services revenue increased $3.6 million, or 61 percent, to $9.5 million.

The core tutoring-center business posted smaller gains. Franchise royalties increased 19 percent, while company-owned centers reported a 37 percent gain.

Pub Date: 4/26/96

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