WISCONSIN RAPIDS, Wis.,
July 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 June 30,
2010. Revenues for the second quarter of 2010 were
$31.0 million, an increase of 9.1%
from second quarter 2009 revenues of $28.5
million. Net income was $4.3
million, or $0.15 per share,
an increase of 4.2% from second quarter 2009 income of $4.1 million or $0.14 per share for the second quarter last
year.
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Revenues for the six-month period ended June 30, 2010 were $63.3
million, up 10.4% from 2009 revenues of $57.3 million. Net income was $10.1 million for the six-month period ended
June 30, 2010, up 25.5% from the
prior year's net income of $8.0
million. Earnings per share for the first half of 2010 were
$.34, compared to $.28, in the first six months of 2009.
"Second quarter results continue to reflect the underlying
strength of our business," commented Terrance D. Paul, Chairman of the Board.
"Orders increased 11%, reported revenue was up 9% and our
cash flow was strong. We are satisfied with the earnings
growth despite being lower than the past several quarters as it was
affected by our investments in expanded sales resources and by
commissions paid on the order increases which are not yet fully
recorded in revenue."
"Despite state budgets remaining weak which will likely affect
education funding for at least the next school year, we remain
optimistic about our growth prospects," added Glenn R. James, Chief Executive Officer.
"All product lines are performing well and we intend to build
on that with our planned enhancements to the STAR(TM) assessment
products, with our focus on urban districts, and through other
initiatives and strategies. We believe we are well positioned
strategically and financially to handle any short-term funding
issues and to achieve solid long term growth."
Renaissance Learning added approximately 500 new customer
schools during the quarter and total schools worldwide that are
actively using the Company's products number over 72,000. Of these,
more than 32,000 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 July 19, 2010 at
8:00 p.m. through July 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
352637.
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 regarding future growth and the impact of
funding issues on Company results. 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 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.
(tables to follow)
RENAISSANCE LEARNING™,
INC.
|
|
|
|
CONSOLIDATED STATEMENTS OF
INCOME
|
|
|
|
(dollar amounts in thousands,
except per share amounts)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Six Months
|
|
|
|
|
Ended June 30,
|
|
Ended June 30,
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
Products
|
$
21,514
|
|
$
21,208
|
|
$
43,353
|
|
$
41,870
|
|
|
|
Services
|
9,533
|
|
7,256
|
|
19,917
|
|
15,465
|
|
|
|
Total
net sales
|
31,047
|
|
28,464
|
|
63,270
|
|
57,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
Products
|
3,700
|
|
3,913
|
|
7,197
|
|
6,910
|
|
|
|
Services
|
2,948
|
|
2,445
|
|
6,440
|
|
5,351
|
|
|
|
Total
cost of sales
|
6,648
|
|
6,358
|
|
13,637
|
|
12,261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
24,399
|
|
22,106
|
|
49,633
|
|
45,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Product
development
|
4,197
|
|
3,927
|
|
8,296
|
|
8,378
|
|
|
|
Selling and
marketing
|
10,158
|
|
8,403
|
|
20,504
|
|
17,325
|
|
|
|
General and
administrative
|
3,112
|
|
3,170
|
|
6,513
|
|
6,633
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
17,467
|
|
15,500
|
|
35,313
|
|
32,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
6,932
|
|
6,606
|
|
14,320
|
|
12,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
22
|
|
34
|
|
261
|
|
183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
6,954
|
|
6,640
|
|
14,581
|
|
12,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
2,650
|
|
2,510
|
|
4,494
|
|
4,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
4,304
|
|
$
4,130
|
|
$
10,087
|
|
$
8,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share:
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
$
0.15
|
|
$
0.14
|
|
$
0.34
|
|
$
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
29,309,059
|
|
29,056,023
|
|
29,299,214
|
|
29,056,023
|
|
|
|
Diluted
|
29,309,732
|
|
29,056,039
|
|
29,299,854
|
|
29,056,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RENAISSANCE LEARNING™,
INC.
CONSOLIDATED BALANCE
SHEETS
(dollar amounts in
thousands)
(unaudited)
|
|
|
June 30,
|
|
December 31,
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
41,029
|
|
$
36,207
|
|
|
|
Investment securities
|
5,086
|
|
3,278
|
|
|
|
Accounts receivable,
net
|
13,525
|
|
10,535
|
|
|
|
Inventories
|
2,266
|
|
4,290
|
|
|
|
Prepaid expenses
|
1,374
|
|
1,962
|
|
|
|
Income taxes
receivable
|
2,167
|
|
3,679
|
|
|
|
Deferred tax asset
|
3,827
|
|
3,827
|
|
|
|
Other current assets
|
597
|
|
629
|
|
|
|
Total current
assets
|
69,871
|
|
64,407
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
3,069
|
|
4,650
|
|
|
|
Property, plant and equipment,
net
|
6,862
|
|
6,848
|
|
|
|
Goodwill
|
2,828
|
|
2,827
|
|
|
|
Other non-current
assets
|
3,864
|
|
4,534
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
86,494
|
|
$
83,266
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
$
2,497
|
|
$
921
|
|
|
|
Deferred revenue
|
46,089
|
|
54,224
|
|
|
|
Payroll and employee
benefits
|
8,017
|
|
5,404
|
|
|
|
Other current
liabilities
|
2,446
|
|
2,648
|
|
|
|
Total current
liabilities
|
59,049
|
|
63,197
|
|
|
|
|
|
|
|
|
|
|
Deferred revenue
|
7,266
|
|
5,262
|
|
|
|
Deferred compensation and other
employee benefits
|
1,893
|
|
1,871
|
|
|
|
Income taxes payable
|
3,765
|
|
4,801
|
|
|
|
Other non-current
liabilities
|
264
|
|
184
|
|
|
|
Total
liabilities
|
72,237
|
|
75,315
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
14,257
|
|
7,951
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
86,494
|
|
$
83,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Renaissance Learning, Inc.