Bookings Trends Accelerate into Important
Back-to-School Selling Season
Cambium Learning® Group, Inc. (Nasdaq: ABCD, the "Company"), a
leading educational technology solutions company committed to
helping all students reach their full potential, announced today
financial results for its second quarter ended June 30, 2018.
SECOND QUARTER 2018 RESULTS
"Cambium Learning Group's first half results were strong,
trending well as we head into the crucial third quarter
back-to-school selling season," stated John Campbell, Chief
Executive Officer. "Second quarter Bookings grew 11% compared to
the second quarter of 2017, led by double-digit increases in our
SaaS segments of 26% at Learning A-Z and 15% at ExploreLearning. We
executed well in the quarter on our planned strategic investments
in development, marketing and sales initiatives to support the
long-term growth of our digital solutions, which are reflected as
expected in first half results. Two of our Learning A-Z solutions
earned prestigious Software and Information Industry Association
CODiE Awards: Raz-Plus, for Best Solution for Special Needs
Students, and Science A-Z, for Best Science Instruction Solution,
marking the seventh consecutive year that one of our products has
won. Overall, we are well-positioned heading into the second half
selling season."
Financial Snapshot
For the quarter ended June 30, 2018, the Company reported
the following financial results:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(in
millions) |
2018 |
|
2017 |
|
$ Change |
|
2018 |
|
2017 |
|
$ Change |
GAAP net
revenues |
$ |
41.0 |
|
|
$ |
40.4 |
|
|
$ |
0.6 |
|
|
$ |
77.6 |
|
|
$ |
76.3 |
|
|
$ |
1.3 |
|
GAAP net
income |
4.4 |
|
|
5.8 |
|
|
(1.4 |
) |
|
7.0 |
|
|
8.3 |
|
|
(1.3 |
) |
Net income margin
% |
11 |
% |
|
14 |
% |
|
|
|
9 |
% |
|
11 |
% |
|
|
EBITDA |
11.1 |
|
|
12.5 |
|
|
(1.3 |
) |
|
19.7 |
|
|
21.1 |
|
|
(1.5 |
) |
Adjusted
EBITDA |
12.7 |
|
|
12.9 |
|
|
(0.2 |
) |
|
21.5 |
|
|
21.9 |
|
|
(0.4 |
) |
Adjusted EBITDA margin
% |
31 |
% |
|
32 |
% |
|
|
|
28 |
% |
|
29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings |
$ |
33.1 |
|
|
$ |
29.7 |
|
|
$ |
3.4 |
|
|
$ |
53.0 |
|
|
$ |
48.9 |
|
|
$ |
4.1 |
|
Cash
income |
1.9 |
|
|
(0.8 |
) |
|
2.7 |
|
|
(8.7 |
) |
|
(11.6 |
) |
|
2.9 |
|
Cash income margin
% |
6 |
% |
|
(3 |
)% |
|
|
|
(16 |
)% |
|
(24 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Half 2018 Financial Highlights
- Generally Accepted Accounting Principles (GAAP) net revenues
for the first half of 2018 increased by $1.3 million, or 2%, to
$77.6 million compared with $76.3 million in 2017. GAAP net
revenues by segment for the six months ended June 30, 2018,
and the change from the same period of 2017, were as
follows:○ Learning A-Z® - $39.6 million, increased $2.7
million or 7%○ ExploreLearning® - $15.2 million, increased
$1.7 million or 13%○ Voyager Sopris Learning® - $22.8
million, decreased $(3.2) million or (12)%
- Bookings for the first half of 2018 increased by 8% to $53.0
million, compared with $48.9 million in the first half of 2017,
with growth in all three segments.
- The Company reported GAAP net income of $7.0 million during the
first half of 2018, decreasing $1.3 million compared to net income
of $8.3 million during the first half of 2017. Net income includes
expenses of $1.1 million related to the Company's definitive
agreement to acquire VKIDZ Holdings Inc. ("VKidz") and its review
of strategic alternatives in addition to higher tax expense. The
Company's effective tax rate for the first half of 2018 is higher
than the effective tax rate for the first half of 2017 as a result
of reducing most of the valuation allowance against most of the
Company's deferred tax assets in the fourth quarter of 2017.
- Adjusted EBITDA was $21.5 million, decreasing $0.4 million from
$21.9 million in 2017, with the growth in GAAP net revenues in the
first half more than offset by planned strategic investments made
to development, marketing and sales initiatives to support
full-year and long-term growth of the Company's digital
solutions.
- Net interest expense was $1.8 million for the first half of
2018, down $0.8 million from the first half of 2017 as a result of
the scheduled debt amortization payments and voluntary prepayments
made during 2017.
- Cash Income was $(8.7) million for the first half of 2018
compared to Cash Income of $(11.6) million for the first half of
2017. Cash Income is a highly seasonal metric and is historically
in a loss position for the first half of the year. Capital
expenditures totaled $8.0 million in the first half of 2018 versus
$8.8 million in the first half of 2017.
- The Company had cash and cash equivalents of $4.7 million at
June 30, 2018. For the six months ended June 30, 2018,
cash used in operations was $3.9 million, cash used in investing
activities was $8.0 million, and cash provided by financing
activities was $8.1 million. At June 30, 2018, the principal
amount of term loans outstanding was $45.6 million, the revolving
credit facility outstanding was $10.0 million and there was $19.8
million available under the revolving credit facility.
- The Company's technology-enabled products continue to receive
industry recognition. Learning A-Z was recently awarded two
Software and Information Industry Association (SIIA) CODiE Awards:
Raz-Plus™, for Best Solution for Special Needs Students, and
Science A-Z®, for Best Science Instruction Solution.
Second Quarter 2018 Financial Highlights
- GAAP net revenues for the second quarter of 2018 increased by
$0.6 million, or 2%, to $41.0 million compared with $40.4 million
in 2017. GAAP net revenues by segment for the three months ended
June 30, 2018, and the change from the same period of 2017,
were as follows:• Learning A-Z - $20.4 million, increased
$1.8 million or 10%• ExploreLearning - $7.7 million,
increased $1.0 million or 15%• Voyager Sopris Learning -
$12.8 million, decreased $(2.1) million or (14)%
- Bookings for the second quarter of 2018 were $33.1 million, an
increase of 11% compared with $29.7 million in the second quarter
of 2017.
- The Company reported net income of $4.4 million during the
second quarter of 2018, decreasing $1.4 million compared to net
income of $5.8 million during the second quarter of 2017. Net
income includes expenses of $1.1 million related to the Company's
definitive agreement to acquire VKIDZ Holdings Inc. and its review
of strategic alternatives in addition to higher tax expense.
- Adjusted EBITDA was $12.7 million, decreasing $0.2 million from
$12.9 million in 2017, with the growth in GAAP net revenues in the
second quarter more than offset by planned strategic investments
made to development, marketing and sales initiatives to support
full-year and long-term growth of the Company's digital
solutions.
- Cash Income was $1.9 million for the second quarter of 2018
compared to Cash Income of $(0.8) million for the second quarter of
2017. Capital expenditures totaled $4.0 million in the second
quarter of 2018 versus $4.3 million in the second quarter of
2017.
Second Quarter 2018 Segment Results
Net Revenues, Bookings, Net Income, and Cash Income changes by
segment for the three and six months ended June 30, 2018,
compared to the same period of 2017 were as follows:
|
Q2 - 2018 % Change |
|
YTD - 2018 % Change |
|
NetRevenues |
Bookings |
Net Income |
Cash Income |
|
NetRevenues |
Bookings |
Net Income |
Cash Income |
Learning A-Z |
10 |
% |
26 |
% |
2 |
% |
105 |
% |
|
7 |
% |
13 |
% |
1 |
% |
30 |
% |
ExploreLearning |
15 |
% |
15 |
% |
(1 |
)% |
(19 |
)% |
|
13 |
% |
14 |
% |
(3 |
)% |
(208 |
)% |
Voyager Sopris
Learning |
(14 |
)% |
(5 |
)% |
(14 |
)% |
2,174 |
% |
|
(12 |
)% |
1 |
% |
(6 |
)% |
81 |
% |
Shared Services |
|
|
(10 |
)% |
3 |
% |
|
|
|
(6 |
)% |
(3 |
)% |
Cambium
Learning Group, Inc. |
2 |
% |
11 |
% |
(23 |
)% |
342 |
% |
|
2 |
% |
8 |
% |
(15 |
)% |
25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Outlook
Mr. Campbell stated, "We are on track as we enter the
back-to-school selling season and are reiterating our full-year
outlook. We target higher Bookings growth than last year's, driven
by our SaaS businesses, and expansions in Adjusted EBITDA and Cash
Income as we make selected investments in development, marketing
and sales. Cambium Learning Group's solutions leverage technology
to offer unique, personalized, adaptive, scalable and effective
answers to the challenges students face, and we are focused on
increasing our share of market to drive returns for all
stakeholders."
Management's outlook for company-wide full-year 2018 Bookings
growth at a higher percentage than 2017 is unchanged, with most of
the growth expected in the second half of the year during the
Company's seasonally strong periods. Cambium Learning Group's
business is highly seasonal, with Bookings historically peaking
during the third quarter, which represents by far the preponderance
of Bookings, revenue and income each year.
The Company continues to expect its full-year 2018 Bookings
growth to be driven by its two 100% digital subscription
businesses, Learning A-Z and ExploreLearning. Voyager Sopris
Learning is expected to build on the momentum of the LANGUAGE! Live
solution and continue to make progress on repositioning the
segment's role in the intervention marketplace.
Capital expenditures in 2018 are expected to be roughly
consistent with 2017, and the Company expects growth in its Cash
Income margin from 2017, with the impact of spending on strategic
investments in its technology subscription products offset by the
ongoing benefit of the transition in mix to these higher margin
product lines. The Company continues to expect cash generation
during the year from normal operations to be in line with previous
guidance. The Company will assess the impact of cash expenditures
related to the strategic alternatives process and the VKidz
acquisition as the year progresses.
REVIEW OF STRATEGIC ALTERNATIVES and VKIDZ
TRANSACTION
As previously announced in May 2018, the Company has an ongoing
review of strategic alternatives to maximize shareholder value.
Such strategic alternatives could include a sale of the Company or
a sale of a division or divisions thereof, a strategic merger, a
business combination or continuing as a standalone entity executing
on its business plan. The Company has not set a definitive
timetable for completion of its review of strategic alternatives,
nor has it made any decisions related to any such strategic
alternative at this time, and there can be no assurances that the
process will result in any transaction being announced or completed
in the future. The Company does not intend to make any further
announcements related to its review unless and until its Board of
Directors has approved a specific transaction or otherwise
determined that further disclosure is appropriate.
Also as previously announced, on May 13, 2018, the Company
entered into a definitive agreement to acquire VKIDZ Holdings Inc.
("VKidz"), an award winning Florida-based edtech company dedicated
to helping deliver the best education to students using digital
solutions. Organized in two business units, VKidz serves both
school systems and homeschooling families with 100% digital, 100%
subscription, innovative, research-based educational products. For
the first half of 2018, VKidz reported a Bookings increase of 12%
over prior year first half. The acquisition is expected to be
consummated, subject to all applicable approvals, after completion
of the Company's review of strategic alternatives. The terms of the
agreement provide the Company the right to terminate the agreement
prior to consummation.
Conference Call
Cambium Learning Group's management team will conduct a
conference call at 5 p.m. EDT today (August 13, 2018) to
discuss its financial results. In consideration of its review of
strategic alternatives, management does not plan to conduct a
question and answer session during the call. Participants are
encouraged to listen to the presentation via a live web broadcast
at www.cambiumlearning.com in the Investor Relations section. In
addition, a live dial-in is available at 844.707.0670 or
703.639.1224, passcode #6575109.
A replay will be available by dialing 855.859.2056 or
404.537.3406, passcode #6575109, until August 14, 2018. The webcast
will also be archived on the Company's Investor Relations page.
Cambium Learning Group also announces investor information,
including news about its business and financial performance, SEC
filings, notices of investor events, investor presentations, and
press and earnings releases, on its website in the Investor
Relations section.
Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, and Cash Income are not prepared in
accordance with GAAP and may be different from similarly named,
non-GAAP financial measures used by other companies. Non-GAAP
financial measures should not be considered a substitute for, or
superior to, measures of financial performance prepared in
accordance with GAAP. The Company believes these non-GAAP measures
provide useful information to investors because they reflect the
underlying performance of the ongoing operations of the Company and
provide investors with a view of the Company's operations from
management's perspective. Adjusted EBITDA and Cash Income remove
significant restructuring, non-operational, or certain non-cash
items from earnings. The Company uses Adjusted EBITDA and Cash
Income to monitor and evaluate the operating performance of the
Company and as the basis to set and measure progress toward
performance targets. Further, the Cash Income measure directly
affects compensation for employees and executives. The Company
generally uses these non-GAAP measures as measures of operating
performance and not as measures of the Company's liquidity. The
Company's presentation of EBITDA, Adjusted EBITDA, and Cash Income
should not be construed as an indication that our future results
will be unaffected by unusual, non-operational, or non-cash
items.
About Cambium Learning Group, Inc.
Cambium Learning® Group (Nasdaq: ABCD) is an award-winning
educational technology solutions leader dedicated to helping all
students reach their potential through individualized and
differentiated instruction. Using a research-based, personalized
approach, Cambium Learning Group delivers SaaS resources and
instructional products that engage students and support teachers in
fun, positive, safe and scalable environments. These solutions
are provided through Learning A-Z® (online differentiated
instruction for elementary school reading, writing and science),
ExploreLearning® (online interactive math and science simulations
and a math fact fluency solution) and Voyager Sopris Learning®
(blended solutions that accelerate struggling learners to achieve
in literacy and math and professional development for teachers). We
believe that every student has unlimited potential, that teachers
matter, and that data, instruction, and practice are the keys to
success in the classroom and beyond.
Come learn with us at www.cambiumlearning.com.
Media and Investor Contact:
Barbara BensonCambium Learning Group,
Inc.investorrelations@cambiumlearning.com
LHAJody Burfening/Carolyn
Capaccio212.838.3777ccapaccio@lhai.com
Forward-Looking Statements
Some of the statements contained herein constitute
forward-looking statements. These statements relate to future
events, including the future financial performance of Cambium
Learning Group, Inc., and involve known and unknown risks,
uncertainties, and other factors that may cause the markets, actual
results, levels of activity, performance, or achievements of
Cambium Learning Group, Inc., to be materially different from any
actual future results, levels of activity, performance, or
achievements. These risks and other factors you should consider
include, but are not limited to, the ability to successfully
attract and retain a broad customer base for current and future
products, changes in customer demands or industry standards,
success of ongoing product development, maintaining acceptable
margins, the ability to control costs, K-12 enrollment and
demographic trends, the level of educational funding, the impact of
federal, state, and local regulatory requirements on the business
of the company, the loss of key personnel, the impact of
competition, the uncertainty of general economic conditions and
financial market performance, explorations of possible transactions
and other strategic alternatives, and those other risks and
uncertainties listed under the heading "RISK FACTORS" in Cambium
Learning Group, Inc.'s Form 10-K and other reports filed with the
Securities and Exchange Commission. In some cases, you can identify
forward-looking statements by terminology such as "may," "should,"
"expects," "plans," "anticipates," "believes," "estimates,"
"predicts," "potential," "continue," "projects," "intends,"
"prospects," or "priorities," or the negative of such terms, or
other comparable terminology. These statements are only
predictions. Actual events or results may differ materially.
Cambium Learning Group, Inc., does not assume or undertake any
obligation to update the information contained in this press
release, and expressly disclaims any obligation to do so, whether
as a result of new information, future events, or otherwise.
|
Cambium Learning Group, Inc. and
Subsidiaries |
Condensed Consolidated Statements of
Operations |
(In thousands, except per share
data) |
(unaudited) |
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net revenues |
$ |
40,996 |
|
|
$ |
40,362 |
|
|
$ |
77,603 |
|
|
$ |
76,332 |
|
Cost of revenues: |
|
|
|
|
|
|
|
Cost of
revenues |
7,038 |
|
|
7,215 |
|
|
13,101 |
|
|
13,400 |
|
Amortization expense |
4,043 |
|
|
4,328 |
|
|
7,947 |
|
|
8,418 |
|
Total cost of
revenues |
11,081 |
|
|
11,543 |
|
|
21,048 |
|
|
21,818 |
|
Research and
development expense |
3,893 |
|
|
3,294 |
|
|
7,619 |
|
|
6,392 |
|
Sales and marketing
expense |
12,717 |
|
|
12,190 |
|
|
25,520 |
|
|
25,100 |
|
General and
administrative expense |
6,135 |
|
|
4,900 |
|
|
11,416 |
|
|
9,783 |
|
Shipping and handling
costs |
186 |
|
|
195 |
|
|
307 |
|
|
313 |
|
Depreciation and
amortization expense |
718 |
|
|
669 |
|
|
1,435 |
|
|
1,350 |
|
Total
costs and expenses |
34,730 |
|
|
32,791 |
|
|
67,345 |
|
|
64,756 |
|
Income before interest
and income taxes |
6,266 |
|
|
7,571 |
|
|
10,258 |
|
|
11,576 |
|
Net interest
expense |
(927 |
) |
|
(1,336 |
) |
|
(1,757 |
) |
|
(2,563 |
) |
Other income (expense),
net |
118 |
|
|
(109 |
) |
|
15 |
|
|
(217 |
) |
Income before income
taxes |
5,457 |
|
|
6,126 |
|
|
8,516 |
|
|
8,796 |
|
Income tax expense |
(1,022 |
) |
|
(334 |
) |
|
(1,474 |
) |
|
(474 |
) |
Net income |
$ |
4,435 |
|
|
$ |
5,792 |
|
|
$ |
7,042 |
|
|
$ |
8,322 |
|
Net income per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.09 |
|
|
$ |
0.13 |
|
|
$ |
0.15 |
|
|
$ |
0.18 |
|
Diluted |
$ |
0.09 |
|
|
$ |
0.12 |
|
|
$ |
0.15 |
|
|
$ |
0.18 |
|
Average number of
common shares and equivalents outstanding: |
|
|
|
|
|
|
|
Basic |
47,172 |
|
|
46,283 |
|
|
47,036 |
|
|
46,243 |
|
Diluted |
48,385 |
|
|
47,476 |
|
|
48,250 |
|
|
47,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cambium Learning Group, Inc. and
Subsidiaries |
Condensed Consolidated Balance
Sheets |
(In thousands, except per share
data) |
|
|
|
|
|
June 30, 2018 |
|
December 31, 2017 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
4,680 |
|
|
$ |
8,493 |
|
Accounts
receivable, net |
13,277 |
|
|
12,937 |
|
Inventory |
1,813 |
|
|
2,382 |
|
Restricted assets, current |
961 |
|
|
961 |
|
Other
current assets |
9,731 |
|
|
11,193 |
|
Total current
assets |
30,462 |
|
|
35,966 |
|
Property,
equipment and software at cost |
62,966 |
|
|
65,250 |
|
Accumulated depreciation and amortization |
(42,006 |
) |
|
(43,164 |
) |
Property, equipment and
software, net |
20,960 |
|
|
22,086 |
|
Goodwill |
43,518 |
|
|
43,518 |
|
Other intangible
assets, net |
3,108 |
|
|
3,607 |
|
Pre-publication costs,
net |
17,986 |
|
|
17,758 |
|
Restricted assets, less
current portion |
839 |
|
|
1,293 |
|
Deferred tax
assets |
30,020 |
|
|
30,614 |
|
Other assets |
3,372 |
|
|
3,712 |
|
Total assets |
$ |
150,265 |
|
|
$ |
158,554 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT) |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
2,075 |
|
|
$ |
2,388 |
|
Accrued
expenses |
13,770 |
|
|
12,121 |
|
Revolving
credit facility |
10,000 |
|
|
— |
|
Current
portion of long-term debt |
6,651 |
|
|
5,958 |
|
Deferred
revenue, current |
61,286 |
|
|
86,913 |
|
Total current
liabilities |
93,782 |
|
|
107,380 |
|
Long-term
liabilities: |
|
|
|
Long-term
debt |
38,477 |
|
|
41,841 |
|
Deferred
revenue, less current portion |
15,232 |
|
|
13,995 |
|
Other
liabilities |
9,257 |
|
|
9,630 |
|
Total long-term
liabilities |
62,966 |
|
|
65,466 |
|
Stockholders' equity
(deficit): |
|
|
|
Preferred
stock ($.001 par value, 15,000 shares authorized, zero shares
issued and outstanding at June 30, 2018 and December 31, 2017) |
— |
|
|
— |
|
Common
stock ($.001 par value, 150,000 shares authorized, 53,789 and
53,333 shares issued, and 47,257 and 46,800 shares outstanding at
June 30, 2018 and December 31, 2017, respectively) |
54 |
|
|
53 |
|
Capital
surplus |
290,468 |
|
|
289,022 |
|
Accumulated deficit |
(282,199 |
) |
|
(288,490 |
) |
Treasury
stock at cost (6,532 shares at June 30, 2018 and December 31,
2017) |
(12,784 |
) |
|
(12,784 |
) |
Accumulated other comprehensive loss: |
|
|
|
Pension
and postretirement plans |
(2,022 |
) |
|
(2,093 |
) |
Accumulated other comprehensive loss |
(2,022 |
) |
|
(2,093 |
) |
Total stockholders'
equity (deficit) |
(6,483 |
) |
|
(14,292 |
) |
Total liabilities and
stockholders' equity (deficit) |
$ |
150,265 |
|
|
$ |
158,554 |
|
|
|
|
|
|
|
|
|
|
Cambium Learning Group, Inc. and
Subsidiaries |
Reconciliation of Net Income to EBITDA,
Adjusted EBITDA and Cash Income |
(unaudited) |
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(in
thousands) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Net income |
$ |
4,435 |
|
|
$ |
5,792 |
|
|
$ |
7,042 |
|
|
$ |
8,322 |
|
Reconciling items
between net income and EBITDA: |
|
|
|
|
|
|
|
Depreciation and amortization expense |
4,761 |
|
|
4,997 |
|
|
9,382 |
|
|
9,768 |
|
Net
interest expense |
927 |
|
|
1,336 |
|
|
1,757 |
|
|
2,563 |
|
Income
tax expense |
1,022 |
|
|
334 |
|
|
1,474 |
|
|
474 |
|
Income from operations
before interest, income taxes, and depreciation and amortization
(EBITDA) |
11,145 |
|
|
12,459 |
|
|
19,655 |
|
|
21,127 |
|
Non-operational or
non-cash costs included in EBITDA but excluded from Adjusted
EBITDA: |
|
|
|
|
|
|
|
Income
from sale of excess state tax credits |
(222 |
) |
|
— |
|
|
(222 |
) |
|
— |
|
Merger,
acquisition and disposition activities |
1,499 |
|
|
212 |
|
|
1,621 |
|
|
339 |
|
Stock-based compensation and expense |
252 |
|
|
224 |
|
|
479 |
|
|
424 |
|
Adjusted EBITDA |
12,674 |
|
|
12,895 |
|
|
21,533 |
|
|
21,890 |
|
Change in
deferred revenues |
(7,900 |
) |
|
(10,576 |
) |
|
(24,814 |
) |
|
(27,419 |
) |
Change in
deferred costs |
1,132 |
|
|
1,168 |
|
|
2,589 |
|
|
2,731 |
|
Capital
expenditures |
(3,980 |
) |
|
(4,284 |
) |
|
(7,988 |
) |
|
(8,816 |
) |
Cash income |
$ |
1,926 |
|
|
$ |
(797 |
) |
|
$ |
(8,680 |
) |
|
$ |
(11,614 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cambium Learning Group, Inc. and
Subsidiaries |
Reconciliation of Bookings to Net Revenues by
Segment – 2018 |
(unaudited) |
|
|
|
Three Months Ended June 30, 2018 |
(in
thousands) |
Learning A-Z |
|
ExploreLearning |
|
Voyager Sopris Learning |
|
Consolidated |
Bookings |
$ |
14,683 |
|
|
$ |
6,797 |
|
|
$ |
11,636 |
|
|
$ |
33,116 |
|
Change in deferred
revenues |
5,752 |
|
|
991 |
|
|
1,157 |
|
|
7,900 |
|
Other |
— |
|
|
(56 |
) |
|
36 |
|
|
(20 |
) |
Net
revenues |
$ |
20,435 |
|
|
$ |
7,732 |
|
|
$ |
12,829 |
|
|
$ |
40,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2018 |
(in
thousands) |
Learning A-Z |
|
ExploreLearning |
|
Voyager Sopris Learning |
|
Consolidated |
Bookings |
$ |
24,282 |
|
|
$ |
9,970 |
|
|
$ |
18,717 |
|
|
$ |
52,969 |
|
Change in deferred
revenues |
15,289 |
|
|
5,338 |
|
|
4,187 |
|
|
24,814 |
|
Other |
— |
|
|
(72 |
) |
|
(108 |
) |
|
(180 |
) |
Net
revenues |
$ |
39,571 |
|
|
$ |
15,236 |
|
|
$ |
22,796 |
|
|
$ |
77,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to EBITDA,
Adjusted EBITDA and Cash Income by Segment – 2018 |
(unaudited) |
|
|
|
Three Months Ended June 30, 2018 |
(in
thousands) |
Learning A-Z |
|
Explore Learning |
|
Voyager Sopris Learning |
|
Other |
|
Consolidated |
Net income |
$ |
9,888 |
|
|
$ |
2,776 |
|
|
$ |
2,937 |
|
|
$ |
(11,166 |
) |
|
$ |
4,435 |
|
Reconciling items
between net income and EBITDA: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
4,761 |
|
|
4,761 |
|
Net
interest expense |
— |
|
|
— |
|
|
— |
|
|
927 |
|
|
927 |
|
Income
tax expense |
— |
|
|
— |
|
|
— |
|
|
1,022 |
|
|
1,022 |
|
Income from operations
before interest, income taxes, and depreciation and amortization
(EBITDA) |
9,888 |
|
|
2,776 |
|
|
2,937 |
|
|
(4,456 |
) |
|
11,145 |
|
Non-operational or
non-cash costs included in EBITDA but excluded from Adjusted
EBITDA: |
|
|
|
|
|
|
|
|
|
Income
from sale of excess state tax credits |
— |
|
|
— |
|
|
— |
|
|
(222 |
) |
|
(222 |
) |
Merger,
acquisition and disposition activities |
— |
|
|
— |
|
|
— |
|
|
1,499 |
|
|
1,499 |
|
Stock-based compensation and expense |
70 |
|
|
55 |
|
|
59 |
|
|
68 |
|
|
252 |
|
Adjusted EBITDA |
9,958 |
|
|
2,831 |
|
|
2,996 |
|
|
(3,111 |
) |
|
12,674 |
|
Change in
deferred revenues |
(5,752 |
) |
|
(991 |
) |
|
(1,157 |
) |
|
— |
|
|
(7,900 |
) |
Change in
deferred costs |
597 |
|
|
282 |
|
|
253 |
|
|
— |
|
|
1,132 |
|
Capital
expenditures - product development |
(2,006 |
) |
|
(1,017 |
) |
|
(548 |
) |
|
— |
|
|
(3,571 |
) |
Capital
expenditures - general expenditures |
(318 |
) |
|
(65 |
) |
|
(9 |
) |
|
(17 |
) |
|
(409 |
) |
Cash income |
$ |
2,479 |
|
|
$ |
1,040 |
|
|
$ |
1,535 |
|
|
$ |
(3,128 |
) |
|
$ |
1,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2018 |
(in
thousands) |
Learning A-Z |
|
Explore Learning |
|
Voyager Sopris Learning |
|
Other |
|
Consolidated |
Net income |
$ |
18,777 |
|
|
$ |
5,347 |
|
|
$ |
3,790 |
|
|
$ |
(20,872 |
) |
|
$ |
7,042 |
|
Reconciling items
between net income and EBITDA: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
9,382 |
|
|
9,382 |
|
Net
interest expense |
— |
|
|
— |
|
|
— |
|
|
1,757 |
|
|
1,757 |
|
Income
tax expense |
— |
|
|
— |
|
|
— |
|
|
1,474 |
|
|
1,474 |
|
Income from operations
before interest, income taxes, and depreciation and amortization
(EBITDA) |
18,777 |
|
|
5,347 |
|
|
3,790 |
|
|
(8,259 |
) |
|
19,655 |
|
Non-operational or
non-cash costs included in EBITDA but excluded from Adjusted
EBITDA: |
|
|
|
|
|
|
|
|
|
Income
from sale of excess state tax credits |
— |
|
|
— |
|
|
— |
|
|
(222 |
) |
|
(222 |
) |
Merger,
acquisition and disposition activities |
— |
|
|
— |
|
|
— |
|
|
1,621 |
|
|
1,621 |
|
Stock-based compensation and expense |
127 |
|
|
100 |
|
|
118 |
|
|
134 |
|
|
479 |
|
Adjusted EBITDA |
18,904 |
|
|
5,447 |
|
|
3,908 |
|
|
(6,726 |
) |
|
21,533 |
|
Change in
deferred revenues |
(15,289 |
) |
|
(5,338 |
) |
|
(4,187 |
) |
|
— |
|
|
(24,814 |
) |
Change in
deferred costs |
1,292 |
|
|
657 |
|
|
640 |
|
|
— |
|
|
2,589 |
|
Capital
expenditures - product development |
(3,874 |
) |
|
(2,036 |
) |
|
(1,195 |
) |
|
— |
|
|
(7,105 |
) |
Capital
expenditures - general expenditures |
(576 |
) |
|
(161 |
) |
|
(115 |
) |
|
(31 |
) |
|
(883 |
) |
Cash income |
$ |
457 |
|
|
$ |
(1,431 |
) |
|
$ |
(949 |
) |
|
$ |
(6,757 |
) |
|
$ |
(8,680 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Revenue by Segment –
2018 |
(unaudited) |
|
|
|
June 30, 2018 |
(in
thousands) |
Learning A-Z |
|
ExploreLearning |
|
Voyager Sopris Learning |
|
Consolidated |
Deferred revenue,
current |
$ |
36,251 |
|
|
$ |
13,432 |
|
|
$ |
11,603 |
|
|
$ |
61,286 |
|
Deferred revenue, less
current portion |
7,533 |
|
|
3,802 |
|
|
3,897 |
|
|
15,232 |
|
Deferred revenue |
$ |
43,784 |
|
|
$ |
17,234 |
|
|
$ |
15,500 |
|
|
$ |
76,518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Costs by Segment – 2018 |
(unaudited) |
|
|
|
June 30, 2018 |
(in
thousands) |
Learning A-Z |
|
ExploreLearning |
|
Voyager Sopris Learning |
|
Consolidated |
Deferred costs,
current |
$ |
3,499 |
|
|
$ |
1,222 |
|
|
$ |
1,705 |
|
|
$ |
6,426 |
|
Deferred costs, less
current portion |
492 |
|
|
177 |
|
|
753 |
|
|
1,422 |
|
Deferred costs |
$ |
3,991 |
|
|
$ |
1,399 |
|
|
$ |
2,458 |
|
|
$ |
7,848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cambium Learning Group, Inc. and
Subsidiaries |
Reconciliation of Bookings to Net Revenues by
Segment – 2017 |
(unaudited) |
|
|
|
Three Months Ended June 30, 2017 |
(in
thousands) |
Learning A-Z |
|
ExploreLearning |
|
Voyager Sopris Learning |
|
Consolidated |
Bookings |
$ |
11,661 |
|
|
$ |
5,888 |
|
|
$ |
12,192 |
|
|
$ |
29,741 |
|
Change in deferred
revenues |
6,990 |
|
|
873 |
|
|
2,713 |
|
|
10,576 |
|
Other |
(1 |
) |
|
(26 |
) |
|
72 |
|
|
45 |
|
Net
revenues |
$ |
18,650 |
|
|
$ |
6,735 |
|
|
$ |
14,977 |
|
|
$ |
40,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2017 |
(in
thousands) |
Learning A-Z |
|
ExploreLearning |
|
Voyager Sopris Learning |
|
Consolidated |
Bookings |
$ |
21,560 |
|
|
$ |
8,764 |
|
|
$ |
18,529 |
|
|
$ |
48,853 |
|
Change in deferred
revenues |
15,275 |
|
|
4,854 |
|
|
7,290 |
|
|
27,419 |
|
Other |
— |
|
|
(105 |
) |
|
165 |
|
|
60 |
|
Net
revenues |
$ |
36,835 |
|
|
$ |
13,513 |
|
|
$ |
25,984 |
|
|
$ |
76,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to EBITDA,
Adjusted EBITDA and Cash Income by Segment – 2017 |
(unaudited) |
|
|
|
Three Months Ended June 30, 2017 |
(in
thousands) |
Learning A-Z |
|
Explore Learning |
|
VoyagerSopris Learning |
|
Other |
|
Consolidated |
Net income |
$ |
9,688 |
|
|
$ |
2,814 |
|
|
$ |
3,408 |
|
|
$ |
(10,118 |
) |
|
$ |
5,792 |
|
Reconciling items
between net income and EBITDA: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
4,997 |
|
|
4,997 |
|
Net
interest expense |
— |
|
|
— |
|
|
— |
|
|
1,336 |
|
|
1,336 |
|
Income
tax expense |
— |
|
|
— |
|
|
— |
|
|
334 |
|
|
334 |
|
Income from operations
before interest, income taxes, and depreciation and amortization
(EBITDA) |
9,688 |
|
|
2,814 |
|
|
3,408 |
|
|
(3,451 |
) |
|
12,459 |
|
Non-operational or
non-cash costs included in EBITDA but excluded from Adjusted
EBITDA: |
|
|
|
|
|
|
|
|
|
Merger,
acquisition and disposition activities |
— |
|
|
— |
|
|
— |
|
|
212 |
|
|
212 |
|
Stock-based compensation and expense |
53 |
|
|
30 |
|
|
75 |
|
|
66 |
|
|
224 |
|
Adjusted EBITDA |
9,741 |
|
|
2,844 |
|
|
3,483 |
|
|
(3,173 |
) |
|
12,895 |
|
Change in
deferred revenues |
(6,990 |
) |
|
(873 |
) |
|
(2,713 |
) |
|
— |
|
|
(10,576 |
) |
Change in
deferred costs |
547 |
|
|
104 |
|
|
517 |
|
|
— |
|
|
1,168 |
|
Capital
expenditures - product development |
(1,869 |
) |
|
(721 |
) |
|
(1,316 |
) |
|
— |
|
|
(3,906 |
) |
Capital
expenditures - general expenditures |
(220 |
) |
|
(77 |
) |
|
(45 |
) |
|
(36 |
) |
|
(378 |
) |
Cash income |
$ |
1,209 |
|
|
$ |
1,277 |
|
|
$ |
(74 |
) |
|
$ |
(3,209 |
) |
|
$ |
(797 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2017 |
(in
thousands) |
Learning A-Z |
|
Explore Learning |
|
VoyagerSopris Learning |
|
Other |
|
Consolidated |
Net income |
$ |
18,556 |
|
|
$ |
5,490 |
|
|
$ |
4,043 |
|
|
$ |
(19,767 |
) |
|
$ |
8,322 |
|
Reconciling items
between net income and EBITDA: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
9,768 |
|
|
9,768 |
|
Net
interest expense |
— |
|
|
— |
|
|
— |
|
|
2,563 |
|
|
2,563 |
|
Income
tax expense |
— |
|
|
— |
|
|
— |
|
|
474 |
|
|
474 |
|
Income from operations
before interest, income taxes, and depreciation and amortization
(EBITDA) |
18,556 |
|
|
5,490 |
|
|
4,043 |
|
|
(6,962 |
) |
|
21,127 |
|
Non-operational or
non-cash costs included in EBITDA but excluded from Adjusted
EBITDA: |
|
|
|
|
|
|
|
|
|
Merger,
acquisition and disposition activities |
— |
|
|
— |
|
|
— |
|
|
339 |
|
|
339 |
|
Stock-based compensation and expense |
100 |
|
|
54 |
|
|
145 |
|
|
125 |
|
|
424 |
|
Adjusted EBITDA |
18,656 |
|
|
5,544 |
|
|
4,188 |
|
|
(6,498 |
) |
|
21,890 |
|
Change in
deferred revenues |
(15,275 |
) |
|
(4,854 |
) |
|
(7,290 |
) |
|
— |
|
|
(27,419 |
) |
Change in
deferred costs |
1,162 |
|
|
493 |
|
|
1,076 |
|
|
— |
|
|
2,731 |
|
Capital
expenditures - product development |
(3,798 |
) |
|
(1,481 |
) |
|
(2,809 |
) |
|
— |
|
|
(8,088 |
) |
Capital
expenditures - general expenditures |
(393 |
) |
|
(167 |
) |
|
(115 |
) |
|
(53 |
) |
|
(728 |
) |
Cash income |
$ |
352 |
|
|
$ |
(465 |
) |
|
$ |
(4,950 |
) |
|
$ |
(6,551 |
) |
|
$ |
(11,614 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cambium Learning Grp., Inc. (delisted) (NASDAQ:ABCD)
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