WISCONSIN RAPIDS, Wis., Jan. 25 /PRNewswire-FirstCall/ --
Renaissance Learning(TM), 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 December 31, 2009. Revenues for the
fourth quarter of 2009 were $32.4 million, an increase of 9.6% from
fourth quarter 2008 revenues of $29.6 million. Net income was $6.7
million, or $.23 per share, an increase of 64% from fourth quarter
2008 income of $4.1 million or $.14 per share adjusted to exclude
the charges for impairment of intangible assets and restructuring,
which resulted in a fourth quarter loss last year of $43.0 million
or $1.47 per share. (Logo:
http://www.newscom.com/cgi-bin/prnh/20001108/RENAISSANCELOGO)
Revenues for the twelve-month period ended December 31, 2009 were
$121.5 million, up 5.5% from 2008 revenues of $115.2 million. Net
income was $19.9 million, or $.68 per share, for the twelve-month
period ended December 31, 2009. The net loss for the twelve month
period ended December 31, 2008 was $34.4 million, or $1.18 per
share. Excluding the fourth quarter charge for impairment and
restructuring costs, net income in 2008 was $12.6 million, or $.43
per share. "The momentum from the third quarter continued and we
achieved very solid fourth quarter results," commented Terrance D.
Paul, Chief Executive Officer. "Fourth quarter order rates grew by
20%, revenue is the highest quarterly revenue since 2003, and net
income was up 64% excluding last year's charge for intangible asset
impairment and restructuring. In addition, cash flow continues to
be strong. "While we are pleased with our recent results, we are
moving ahead aggressively with initiatives to drive further growth.
These include significantly reducing the price of our NEO 2 laptop,
a focused effort to better serve large urban accounts, and the
introduction of the SetPoint(TM) program aimed at transforming low
performing schools," continued Paul. "The one area of concern
continues to be the weak state revenue situation that will likely
force states to reduce educational spending. However, we believe
that our current product offerings and financial strength, along
with the new initiatives, should position us well over the next
several years, even in the face of a more difficult school funding
environment." 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
73,000. 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. EST 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. EST. 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 January
25, 2010 at 8:00 p.m. through February 1, 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 342271.
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 73,000 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 laptop 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 2008 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. (tables to follow) RENAISSANCE
LEARNING(R), INC. CONSOLIDATED STATEMENTS OF INCOME (dollar amounts
in thousands, except per share amounts) (unaudited) Three Months
Ended December 31, 2009 2008 Net sales: Products $22,220 $21,007
Services 10,205 8,583 Total net sales 32,425 29,590 Cost of sales:
Products 3,127 3,319 Services 2,921 3,269 Total cost of sales 6,048
6,588 Gross profit 26,377 23,002 Operating expenses: Product
development 4,006 4,574 Selling and marketing 9,078 9,023 General
and administrative 3,083 3,501 Impairment of goodwill and other
intangible assets - 47,945 Total operating expenses 16,167 65,043
Operating income (loss) 10,210 (42,041) Other income, net 50 204
Income (loss) before income taxes 10,260 (41,837) Income taxes
3,579 1,125 Net income (loss) $6,681 $(42,962) Income (loss) per
share: Basic and Diluted $0.23 $(1.47) Weighted average shares
outstanding: Basic 29,261,998 29,160,429 Diluted 29,262,154
29,160,429 Twelve Months Ended December 31, 2009 2008 Net sales:
Products $86,030 $84,540 Services 35,483 30,683 Total net sales
121,513 115,223 Cost of sales: Products 13,730 14,494 Services
11,691 13,263 Total cost of sales 25,421 27,757 Gross profit 96,092
87,466 Operating expenses: Product development 16,494 17,396
Selling and marketing 35,960 36,253 General and administrative
13,113 15,283 Impairment of goodwill and other intangible assets -
47,945 Total operating expenses 65,567 116,877 Operating income
(loss) 30,525 (29,411) Other income, net 452 819 Income (loss)
before income taxes 30,977 (28,592) Income taxes 11,054 5,848 Net
income (loss) $19,923 $(34,440) Income (loss) per share: Basic and
Diluted $0.68 $(1.18) Weighted average shares outstanding: Basic
29,222,327 29,101,765 Diluted 29,222,387 29,103,795 RENAISSANCE
LEARNING(TM), INC. CONSOLIDATED BALANCE SHEETS (dollar amounts in
thousands) (unaudited) December 31, December 31, 2009 2008 ASSETS:
Current assets: Cash and cash equivalents $36,207 $9,509 Investment
securities 3,278 4,894 Accounts receivable, net 10,535 8,083
Inventories 4,290 5,504 Prepaid expenses 1,962 1,999 Income taxes
receivable 3,679 3,301 Deferred tax asset 3,827 4,183 Other current
assets 629 144 Total current assets 64,407 37,617 Investment
securities 4,650 3,383 Property, plant and equipment, net 6,848
8,621 Goodwill 2,827 2,750 Other non-current assets 4,534 4,555
Total assets $83,266 $56,926 LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities: Accounts payable $921 $1,712 Deferred revenue
54,224 43,975 Payroll and employee benefits 5,404 3,981 Other
current liabilities 2,648 3,284 Total current liabilities 63,197
52,952 Deferred revenue 5,262 2,950 Deferred compensation and other
employee benefits 1,871 1,342 Income taxes payable 4,801 4,868
Other non-current liabilities 184 133 Total liabilities 75,315
62,245 Total shareholders' equity 7,951 (5,319) Total liabilities
and shareholders' equity $83,266 $56,926
http://www.newscom.com/cgi-bin/prnh/20001108/RENAISSANCELOGO
http://photoarchive.ap.org/ DATASOURCE: Renaissance Learning, Inc.
CONTACT: Susan Sutherland of Renaissance Learning, Inc.,
+1-877-988-8048, fax, +1-715-424-3414, Web Site:
http://www.renlearn.com/
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