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EX-99.2 - EXHIBIT 99.2 - CAMBIUM LEARNING GROUP, INC. | c12326exv99w2.htm |
8-K - FORM 8-K - CAMBIUM LEARNING GROUP, INC. | c12326e8vk.htm |
Exhibit 99.1
Cambium Learning Group, Inc. Provides Selected Preliminary Results and Announces
Year End Earnings Call
Year End Earnings Call
Dallas, February 8, 2010-Cambium Learning Group, Inc. [Nasdaq: ABCD, the Company], a leading
provider of research-based education solutions for students in Pre-K through 12th grade, including
intervention curricula, educational technologies and services, today provided selected preliminary
operating results for the year ended December 31, 2010, and announced that it will hold a
conference call to discuss 2010 full year results on March 3, 2011, at 5:00 p.m. Eastern Time. The
call will be based on unaudited results through December 31, 2010.
Selected Operating Results for Q4 and the Full year 2010
The Company expects to report fourth quarter adjusted sales between $49.0 and $49.5 million
compared with $43.8 million for the same period in 2009, representing an increase of approximately
12-13%. The Company expects to report fourth quarter adjusted EBITDA between $13.4 and $13.9
million compared with $8.8 million for the same period in 2009, representing an increase of 52% to
57%.
With the Companys strong sales in the fourth quarter, the expected adjusted sales for the full
year 2010 are $193.9 to $194.4 million, compared with the September 30, 2010 trailing twelve month
adjusted sales of $188.7 million. The strong fourth quarter sales results significantly reduced
the year-on-year sales decline experienced through the third quarter. The Companys projected full
year adjusted sales are now expected to be down versus prior year by 3% to 4%.
The improved sales along with the realization of approximately $10 million in full-year merger
related cost synergies and additional targeted cost savings in the fourth quarter provided improved
earnings for the Company for the year. As a result, the Company expects adjusted EBITDA to be in
the range of $54.5 to $55.0 million for the full year 2010 compared with $50.8 million for the full
year 2009.
Ron Klausner, Chief Executive Officer stated, Although 2010 proved to be challenging with state
and local budgets having impacted some of our products, we were pleased to see the improvement in
the fourth quarter as we put the merger related activities further behind us.
On our third quarter earnings call we referred to significant stimulus funded deals we were
pursuing for closure in 2010 for the Voyager segment. We successfully closed several sizable
transactions in the fourth quarter of 2010.
Klausner added, The recent Voyager sales wins, a strong finish in our online supplemental
subscription offerings and the realization of targeted merger cost synergies, allowed us to finish
2010 with an anticipated adjusted EBITDA increase of 7% to 8%. In addition, we were also able to
make $4 million in growth investments in the Sopris and Cambium Learning Technologies business
units.
The Company also reports that the ending cash and cash equivalent balance is expected to be $12
million. Due to the timing of the significant Voyager transactions late in 2010, accounts
receivable will temporarily rise by $13 million. The Company expects to report a year-end 2010
accounts receivable balance of approximately $32 million compared to a year-end 2009 balance of $19
million. The Companys 2010 year-end long term debt balance was $152 million which includes $1
million classified as the current portion on the balance sheet. The Company had no borrowings
outstanding on its revolving line of credit. Capital lease obligations were $13 million at year
end, including $0.4 million classified as the current portion on the balance sheet.
The Company will provide additional commentary and more detailed results on our upcoming conference
call. To listen to the Companys upcoming conference call, please dial (800) 860-2442 and
reference Cambium Learning at 5:00 p.m. Eastern Time on Thursday, March 3, 2011. The call will be
recorded and archived until Thursday, April 7, 2011, and can be replayed by calling (877) 344-7529
and entering ID# 448276. The conference call will also be Webcast and available on the Companys
Website at www.cambiumlearninggroup.com.
Non-GAAP Financial Measures
EBITDA, adjusted EBITDA and adjusted sales are not prepared in accordance with GAAP and may be
different from 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 that adjusted EBITDA and adjusted sales
provide useful information to investors because they reflect the underlying performance of the
ongoing operations of the Company, including the late 2009 acquisition of Voyager Learning Company,
and provide investors with a view of the combined Companys
operations from managements perspective. Adjusted EBITDA and adjusted sales exclude items that do
not reflect the underlying performance of the combined Company by removing significant one-time or
certain non-cash items. The primary adjustments items during 2010 related to one-time merger
integration costs and the impact of purchase accounting on acquired deferred revenue net of
deferred costs. These two items are expected to total a full year adjustment of $17 million at the
EBITDA level. As expected, these amounts declined throughout 2010 and in Q4 the total for these
items is expected to be $1 million. The Company uses these measures to monitor and evaluate the
operating performance of the Company and as the basis to set and measure progress towards
performance targets, which directly affect compensation for employees and executives. The Company
generally uses these non-GAAP measures as measures of operating performance and not as measures of
the Companys liquidity. Non-GAAP measures will be reconciled to GAAP results in the companies
final earnings release scheduled for March 3, 2011 and associated SEC filings for the year ending
2010.
About Cambium Learning Group, Inc.
Cambium Learning Group, Inc. (Nasdaq:ABCD) is based in Dallas, Texas, and operates three business
units: Voyager, a comprehensive intervention business; Sopris, a supplemental solutions business;
and Cambium Learning Technologies, which includes ExploreLearning, IntelliTools, Kurzweil and
Learning A-Z. Through its core divisions, Cambium Learning Group, Inc. provides research-based
education solutions for students in Pre-K through 12th grade, including intervention curricula,
educational technologies and services primarily focused on serving the needs of the nations most
challenged learners and enabling students to realize their full potential. The companys website is
www.cambiumlearninggroup.com.
Media and Investor Contact:
Shannan Overbeck
Cambium Learning Group, Inc.
214.932.9476
shannan.overbeck@cambiumlearning.com
Shannan Overbeck
Cambium Learning Group, Inc.
214.932.9476
shannan.overbeck@cambiumlearning.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 and education technology 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 and the risk that competitors will seek to capitalize on the
risks and uncertainties confronting the new combined company, the uncertainty of general economic
conditions and financial market performance, and those other risks and uncertainties listed under
the heading RISK FACTORS in Cambium
Learning Group, Inc.s Form 10-K. 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.
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