WISCONSIN RAPIDS, Wis.,
July 21, 2011 /PRNewswire/ --
Renaissance Learning, Inc. (Nasdaq: RLRN), a leading provider of
technology-based school improvement and student assessment programs
for K12 schools, today announced financial results for the quarter
ended June 30, 2011. Revenues for the
second quarter of 2011 were $35.7
million, an increase of 15.0% from second quarter 2010
revenues of $31.0 million. Net income
was $5.3 million, or $0.18 per share, 23.4 % higher than second
quarter 2010 net income of $4.3
million, or $0.15 per
share.
(Logo:
http://photos.prnewswire.com/prnh/20001108/RENAISSANCELOGO)
Revenues for the six-month period ended June 30, 2011 were $69.2
million, up 9.4% from revenues of $63.3 million for the first half of 2010.
Net income was $10.8 million
for the first six months of 2011, up 7.1% from the prior year's net
income of $10.1 million.
Earnings per share for the six months ending June 30, 2011 were $0.37 compared to $0.34 for the same period in 2010. Net
income in 2010 included a tax benefit resulting from a tax audit
settlement of $1.1 million, or
$0.04 per share. Excluding the tax
benefit in last year's results, year over year net income per share
for the six month period increased by $0.07.
"We are pleased to have achieved continued growth and solid
financial results for the second quarter, especially considering
the challenging funding environment," commented Glenn R. James, Chief Executive Officer.
"Orders for the quarter were 18% higher than the prior year,
offsetting a similar percentage decline in the first quarter and
reflecting the continued seasonal shift of orders to Q2 and Q3.
"The strong order performance was highlighted by a solid start
to the launch of the STAR Enterprise product line," continued
James. "Orders also were boosted by a large NEO order and by
a number of customers renewing their subscriptions early.
"Despite the strength of our second quarter orders, we remain
cautious in the near term as states are continuing to cut or delay
education funding, and the third quarter is our largest order
period," added James. "However, in spite of the school budget
challenges, we believe we are well positioned strategically and
financially to achieve solid growth over the longer term."
Renaissance Learning added approximately 600 new customer
schools during the quarter, and total schools worldwide that are
actively using the Company's products number approximately 70,000.
Of these, approximately 36,000 are actively using at least
one product running on the Renaissance Place platform.
The Company expanded the presentation of revenue on its
financial statements to make it clearer what portion of both the
product and service revenue is generated from subscriptions and
other time-based items. Prior period results have been
expanded to conform to the new presentation.
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 21, 2011 at
8:00 p.m. through July 28, 2011 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
375568.
Renaissance Learning, Inc.
Renaissance Learning, Inc. is a leading provider of
technology-based school improvement and student assessment programs
for K12 schools. Adopted by approximately 70,000 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 and school
improvement programs 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 and programs 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 current
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, 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 2010 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,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Product revenue:
|
|
|
|
|
|
|
|
|
Subscription
|
$
14,828
|
|
$
12,094
|
|
$
29,345
|
|
$
23,528
|
|
Non-subscription
|
10,147
|
|
9,420
|
|
18,190
|
|
19,825
|
|
Total
product revenue
|
24,975
|
|
21,514
|
|
47,535
|
|
43,353
|
|
|
|
|
|
|
|
|
|
|
Service revenue:
|
|
|
|
|
|
|
|
|
Subscription
|
6,911
|
|
5,698
|
|
13,647
|
|
11,248
|
|
Non-subscription
|
3,830
|
|
3,835
|
|
8,065
|
|
8,669
|
|
Total
service revenue
|
10,741
|
|
9,533
|
|
21,712
|
|
19,917
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
35,716
|
|
31,047
|
|
69,247
|
|
63,270
|
|
|
|
|
|
|
|
|
|
|
Cost of sales:
|
|
|
|
|
|
|
|
|
Products
|
4,858
|
|
3,700
|
|
8,173
|
|
7,197
|
|
Services
|
3,131
|
|
2,948
|
|
6,570
|
|
6,440
|
|
|
|
|
|
|
|
|
|
|
Total cost of sales
|
7,989
|
|
6,648
|
|
14,743
|
|
13,637
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
27,727
|
|
24,399
|
|
54,504
|
|
49,633
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Product
development
|
4,257
|
|
4,197
|
|
8,476
|
|
8,296
|
|
Selling and
marketing
|
10,975
|
|
10,158
|
|
21,204
|
|
20,504
|
|
General and
administrative
|
4,029
|
|
3,112
|
|
7,555
|
|
6,513
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
19,261
|
|
17,467
|
|
37,235
|
|
35,313
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
8,466
|
|
6,932
|
|
17,269
|
|
14,320
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
30
|
|
22
|
|
17
|
|
261
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
8,496
|
|
6,954
|
|
17,286
|
|
14,581
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
3,186
|
|
2,650
|
|
6,482
|
|
4,494
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
5,310
|
|
$
4,304
|
|
$
10,804
|
|
$
10,087
|
|
|
|
|
|
|
|
|
|
|
Income per share:
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
$
0.18
|
|
$
0.15
|
|
$
0.37
|
|
$
0.34
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
29,326,158
|
|
29,309,059
|
|
29,309,400
|
|
29,299,214
|
|
Diluted
|
29,326,353
|
|
29,309,732
|
|
29,309,600
|
|
29,299,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RENAISSANCE
LEARNING™, INC.
CONSOLIDATED
BALANCE SHEETS
(dollar
amounts in thousands)
(unaudited)
|
|
|
June
30,
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$ 6,702
|
|
$
9,845
|
|
Investment securities
|
2,607
|
|
6,630
|
|
Accounts receivable,
net
|
17,942
|
|
7,873
|
|
Inventories
|
3,434
|
|
5,042
|
|
Prepaid expenses
|
1,560
|
|
1,668
|
|
Income taxes
receivable
|
-
|
|
327
|
|
Deferred tax asset
|
4,073
|
|
2,615
|
|
Other current assets
|
630
|
|
711
|
|
Total current
assets
|
36,948
|
|
34,711
|
|
|
|
|
|
|
Investment securities
|
2,731
|
|
3,661
|
|
Property, plant and equipment,
net
|
6,382
|
|
6,720
|
|
Goodwill
|
2,868
|
|
2,854
|
|
Other non-current
assets
|
8,120
|
|
5,843
|
|
|
|
|
|
|
Total assets
|
$ 57,049
|
|
$
53,789
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY:
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
$ 3,108
|
|
$
2,874
|
|
Deferred revenue
|
54,323
|
|
64,791
|
|
Payroll and employee
benefits
|
7,258
|
|
5,609
|
|
Income taxes payable
|
432
|
|
-
|
|
Other current
liabilities
|
3,195
|
|
2,340
|
|
Total current
liabilities
|
68,316
|
|
75,614
|
|
|
|
|
|
|
Deferred revenue
|
9,963
|
|
7,051
|
|
Deferred compensation and other
employee benefits
|
2,731
|
|
2,538
|
|
Income taxes payable
|
3,427
|
|
3,426
|
|
Other non-current
liabilities
|
772
|
|
213
|
|
Total
liabilities
|
85,209
|
|
88,842
|
|
|
|
|
|
|
Total shareholders'
equity
|
(28,160)
|
|
(35,053)
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$ 57,049
|
|
$
53,789
|
|
|
|
|
|
SOURCE Renaissance Learning, Inc.