Sylvan Learning Systems Inc., the Columbia-based tutoring and computerized testing company, said yesterday that it eked out a tiny third-quarter profit despite a previously announced $3.2 million charge against earnings.
The company reported net income of $137,000, or 1 cent per share, for the period ended Sept. 30 compared with net income of $1.5 million, or 15 cents per share, for the third quarter of 1994.
Sylvan said that without the nonrecurring loss it recorded for assets that were made redundant by the acquisition of Drake Prometric L.P., its earnings would have come to $2.5 million, or 23 cents per share.
The healthy gains in operating earnings reflect booming growth in the company's revenues. Sylvan reported that revenues increased 49 percent, to $20.6 million, compared with $13.8 million in the third quarter of 1994.
Sylvan stock closed up 25 cents yesterday at $24.75.
Sylvan said growth was strong in all of its lines of business. Revenues from computerized testing were up 26 percent, while revenue in its core business of operating a nationwide chain of tutoring centers rose 32 percent.
The company's contract educational services business, which includes its tutoring programs in Baltimore schools, nearly doubled, going from $3.7 million to $6.7 million -- largely as a result of its acquisition of Pace Learning.
Company officials declined to elaborate on their press release because the company is in the registration process for a secondary stock offering. Corporate officials' statements are restricted during such periods.
Sylvan said the acquisition of Minneapolis-based Drake Prometric, which was announced this summer, is expected to be completed by late next month. Results of operations from the computerized testing company are not in cluded in Sylvan's operating results for the third quarter.
In a separate matter, Sylvan disclosed that on Monday the Educational Testing Service exercised its option to buy 115,942 shares of Sylvan common stock at $17.25 per share under a 1994 agreement that made it a leading investor in Sylvan.