WISCONSIN RAPIDS, Wis.,
April 19 /PRNewswire-FirstCall/ --
Renaissance Learning™, Inc. (Nasdaq: RLRN), a leading provider of
technology to support personalized practice, differentiated
instruction, and progress monitoring in reading, math, and writing
for pre-K-12 schools and districts, today announced financial
results for the quarter ended March 31,
2010. Revenues for the first quarter of 2010 were
$32.2 million, an increase of 11.6%
from first quarter 2009 revenues of $28.9
million. Net income was $5.8
million, or $0.20 per share,
an increase of 48% from first quarter 2009 income of $3.9 million or $0.13 per share for the first quarter last year.
First quarter 2010 net income included a tax benefit resulting from
an audit settlement with the state of Wisconsin of $1.1
million, or $0.04 per share.
(Logo:
http://www.newscom.com/cgi-bin/prnh/20001108/RENAISSANCELOGO)
"We are pleased to report strong financial results again this
quarter," commented Terrance D.
Paul, Chief Executive Officer. "In addition to good revenue
and income growth, cash flow was strong and first quarter orders
grew by 23%. While order growth benefited from one large district
order this quarter, even without that order, the underlying order
growth rate was strong at about 9%.
"Other key metrics continued their momentum as well. We added
more than 700 Accelerated Reader Enterprise schools in the quarter
and the recent price decrease for our hardware products helped us
achieve good unit growth," continued Paul. "While we are pleased
with these results, we remain cautious about the weak state revenue
situation and its implications on school funding for the 2011 and
2012 school years."
Renaissance Learning added approximately 500 new customer
schools during the quarter, bringing total schools worldwide that
are actively using the Company's products to over 72,000. Of these,
more than 31,000 are actively using at least one product running on
the Renaissance Place platform.
The Company will hold a conference call at 5:00 p.m. EDT today to discuss its financial
results, quarterly highlights, and business outlook. The
teleconference may be accessed in listen-only mode by dialing
877-869-3847 at 5:00 p.m. EDT. Please
call a few minutes before the scheduled start time to ensure a
proper connection.
A digital recording of the conference call will be made
available on April 19, 2010 at
8:00 p.m. through April 26, 2010 at 11:59
p.m. The replay dial-in is 877-660-6853. The conference
account number to access the replay is 350 and replay ID number is
347801.
Renaissance Learning, Inc.
Renaissance Learning, Inc. is the world's leading provider of
computer-based assessment technology for pre-K–12 schools. Adopted
by more than 72,000 schools, Renaissance Learning's tools provide
daily formative assessment and periodic progress-monitoring
technology to enhance core curriculum, support differentiated
instruction, and personalize practice in reading, writing and math.
Renaissance Learning products help educators make the practice
component of their existing curriculum more effective by providing
tools to personalize practice and easily manage the daily
activities for students of all levels. As a result, teachers using
Renaissance Learning products accelerate learning, get more
satisfaction from teaching, and help students achieve higher test
scores on state and national tests. Renaissance Learning has seven
U.S. locations and subsidiaries in Canada and the United Kingdom.
This press release contains forward-looking statements made
pursuant to the safe harbor provision of the Private Securities
Litigation Reform Act of 1995, including statements regarding
management's expectations for future periods. These forward-looking
statements are based on current expectations and various
assumptions which management believes are reasonable. However,
these statements involve risks and uncertainties that could cause
actual results to differ materially from any future results
encompassed within the forward-looking statements. Factors that
could cause or contribute to such differences include the failure
of AR and AM Enterprise and NEO orders to achieve expected growth
targets, a decline in quiz sales that exceeds forecasts, risks
associated with the implementation of the Company's growth
initiatives, dependence on educational institutions and government
funding, our ability to successfully implement cost savings
measures and achieve cost reductions, and other risks affecting the
Company's business as described in the Company's filings with the
Securities and Exchange Commission, including the Company's 2009
Annual Report on Form 10-K and later filed quarterly reports on
Form 10-Q and Current Reports on Form 8-K, which factors are
incorporated herein by reference. The Company expressly disclaims a
duty to provide updates to forward-looking statements, whether as a
result of new information, future events or other occurrences.
RENAISSANCE
LEARNING™, INC.
CONSOLIDATED
STATEMENTS OF INCOME
(dollar amounts in
thousands, except per share amounts)
(unaudited)
|
|
|
Three
Months
|
|
|
Ended March
31,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
Net sales:
|
|
|
|
|
Products
|
$
21,839
|
|
$
20,661
|
|
Services
|
10,384
|
|
8,209
|
|
Total net
sales
|
32,223
|
|
28,870
|
|
|
|
|
|
|
Cost of sales:
|
|
|
|
|
Products
|
3,498
|
|
2,996
|
|
Services
|
3,491
|
|
2,906
|
|
Total cost
of sales
|
6,989
|
|
5,902
|
|
|
|
|
|
|
Gross profit
|
25,234
|
|
22,968
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
Product
development
|
4,099
|
|
4,451
|
|
Selling and
marketing
|
10,345
|
|
8,921
|
|
General and
administrative
|
3,401
|
|
3,463
|
|
|
|
|
|
|
Total operating expenses
|
17,845
|
|
16,835
|
|
|
|
|
|
|
Operating income
|
7,389
|
|
6,133
|
|
|
|
|
|
|
Other income, net
|
239
|
|
148
|
|
|
|
|
|
|
Income before income taxes
|
7,628
|
|
6,281
|
|
|
|
|
|
|
Income taxes
|
1,845
|
|
2,374
|
|
|
|
|
|
|
Net income
|
$
5,783
|
|
$
3,907
|
|
|
|
|
|
|
Income per share:
|
|
|
|
|
Basic and Diluted
|
$
0.20
|
|
$
0.13
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
Basic
|
29,289,258
|
|
29,100,186
|
|
Diluted
|
29,289,865
|
|
29,100,186
|
|
|
|
|
|
|
|
|
|
|
|
|
RENAISSANCE
LEARNING™, INC.
CONSOLIDATED BALANCE
SHEETS
(dollar amounts in
thousands)
(unaudited)
|
|
|
March
31,
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
$
40,317
|
|
$
36,207
|
|
Investment securities
|
4,092
|
|
3,278
|
|
Accounts receivable, net
|
8,914
|
|
10,535
|
|
Inventories
|
3,142
|
|
4,290
|
|
Prepaid expenses
|
2,002
|
|
1,962
|
|
Income taxes receivable
|
1,584
|
|
3,679
|
|
Deferred tax asset
|
3,828
|
|
3,827
|
|
Other current assets
|
591
|
|
629
|
|
Total current assets
|
64,470
|
|
64,407
|
|
|
|
|
|
|
Investment securities
|
3,010
|
|
4,650
|
|
Property, plant and equipment,
net
|
6,741
|
|
6,848
|
|
Goodwill
|
2,843
|
|
2,827
|
|
Other non-current assets
|
4,017
|
|
4,534
|
|
|
|
|
|
|
Total assets
|
$
81,081
|
|
$
83,266
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY:
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
$
1,410
|
|
$
921
|
|
Deferred revenue
|
45,306
|
|
54,224
|
|
Payroll and employee
benefits
|
7,944
|
|
5,404
|
|
Other current liabilities
|
2,686
|
|
2,648
|
|
Total current
liabilities
|
57,346
|
|
63,197
|
|
|
|
|
|
|
Deferred revenue
|
5,707
|
|
5,262
|
|
Deferred compensation and other
employee benefits
|
1,971
|
|
1,871
|
|
Income taxes payable
|
3,765
|
|
4,801
|
|
Other non-current
liabilities
|
147
|
|
184
|
|
Total liabilities
|
68,936
|
|
75,315
|
|
|
|
|
|
|
Total shareholders'
equity
|
12,145
|
|
7,951
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
81,081
|
|
$
83,266
|
|
|
|
|
|
|
|
|
|
|
SOURCE Renaissance Learning, Inc.