WISCONSIN RAPIDS, Wis., Oct. 19, 2009 (GLOBE NEWSWIRE) -- 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 September 30, 2009. Revenues for the third quarter of 2009 were $31.8 million, an increase of 12.6% from third quarter 2008 revenues of $28.2 million. Net income was $5.2 million, or $.18 per share, compared to net income of $2.6 million, or $.09 per share, for the third quarter last year.
Revenues for the nine-month period ended September 30, 2009 were $89.1 million, up 4.0% from 2008 revenues of $85.6 million. Net income was $13.2 million for the nine-month period ended September 30, 2009, up 55.4% from the prior year's net income of $8.5 million. Earnings per share for the nine months of 2009 were $.45, compared to $.29, in the first nine months of 2008.
"I am pleased to report these excellent third quarter results," commented Terrance D. Paul, Chief Executive Officer. "Third quarter revenue is the highest quarterly revenue since 2003, earnings doubled from last year's third quarter, and operating cash flow of $16.7 million was a new quarterly high. Orders were up 34% for the quarter.
"As good as this quarter was, future periods will likely be more challenging due to seasonal variations and to recession-related pressure on school funding, especially as stimulus dollars are used up," continued Paul. "On the other hand, our customers understand the value of our products to accelerate learning, and with our growing customer base, exceptional product lineup, strong balance sheet and solid cash flow, we believe we are positioned to achieve solid growth in the longer term."
Renaissance Learning added approximately 800 new customer schools during the quarter, bringing total schools worldwide that are actively using the Company's products to over 74,000. Of these, more than 30,000 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 October 19, 2009 at 8:00 p.m. through October 26, 2009 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 332624.
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 74,000 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 growth prospects and management's expectations regarding orders and financial results for 2009 and 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 strategic growth plan, 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.
RENAISSANCE LEARNING(TM), INC.
CONSOLIDATED STATEMENTS OF INCOME
(dollar amounts in thousands, except per share amounts)
(unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
2009 2008 2009 2008
Net sales:
Products $ 21,941 $ 19,439 $ 63,811 $ 63,532
Services 9,813 8,761 25,278 22,100
Total net sales 31,754 28,200 89,089 85,632
Cost of sales:
Products 3,693 3,176 10,603 11,175
Services 3,419 3,664 8,771 9,993
Total cost of sales 7,112 6,840 19,374 21,168
Gross profit 24,642 21,360 69,715 64,464
Operating expenses:
Product development 4,110 4,521 12,488 12,822
Selling and marketing 9,558 8,953 26,882 27,230
General and
administrative 3,397 4,226 10,030 11,783
Total operating expenses 17,065 17,700 49,400 51,835
Operating income 7,577 3,660 20,315 12,629
Other income
(expense), net 218 275 401 616
Income before income
taxes 7,795 3,935 20,716 13,245
Income taxes 2,590 1,365 7,474 4,722
Net income $ 5,205 $ 2,570 $ 13,242 $ 8,523
Income per share:
Basic and Diluted $ 0.18 $ 0.09 $ 0.45 $ 0.29
Weighted average
shares outstanding:
Basic 29,224,309 29,118,309 29,208,957 29,082,067
Diluted 29,224,376 29,120,940 29,208,985 29,085,529
RENAISSANCE LEARNING(TM), INC.
CONSOLIDATED BALANCE SHEETS
(dollar amounts in thousands)
(unaudited)
September 30, December 31,
2009 2008
ASSETS:
Current assets:
Cash and cash equivalents $ 28,481 $ 9,509
Investment securities 3,120 4,894
Accounts receivable, net 19,839 8,083
Inventories 4,680 5,504
Prepaid expenses 1,778 1,999
Income taxes receivable 5,118 3,301
Deferred tax asset 4,184 4,183
Other current assets 213 144
Total current assets 67,413 37,617
Investment securities 2,165 3,383
Property, plant and equipment, net 6,857 8,621
Goodwill 2,809 2,750
Other non-current assets 4,737 4,555
Total assets $ 83,981 $ 56,926
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 2,536 $ 1,712
Deferred revenue 56,887 43,975
Payroll and employee benefits 5,964 3,981
Other current liabilities 3,246 3,284
Total current liabilities 68,633 52,952
Deferred revenue 5,565 2,950
Deferred compensation and other
employee benefits 1,711 1,342
Income taxes payable 4,868 4,868
Other non-current liabilities 213 133
Total liabilities 80,990 62,245
Total shareholders' equity 2,991 (5,319)
Total liabilities and shareholders'
equity $ 83,981 $ 56,926