Cambium Learning Group, Inc. Announces Second Quarter Earnings

DALLAS, Aug. 12 /PRNewswire-FirstCall/ -- 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, will hold a conference call today at 4:00 p.m. Eastern Time to discuss second quarter 2010 financial results. The call will be based on unaudited results through June 30, 2010.

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The Company reported sales of $76 million for the six months ended June 30, 2010 compared with $37 million in sales for the same period in 2009.  The leading contributor to the increase is the inclusion of Voyager Learning Company's results following the December 8, 2009 completion of the merger. The Company reported a net loss of $22 million for the six months ended June 30, 2010 compared with a net loss of $21 million for the same period in 2009.  The significant impact of the Voyager Learning Company merger affects the year-over-year comparability of the Company's results.

To provide additional business context and to present the results in the same manner as measured by management, the Company continues to provide non-GAAP Adjusted numbers for both 2009 and 2010 which are described below as non-GAAP Financial Measures and primarily include adjustments to reflect the impact of the merger.  Reconciliation tables are presented in the Q2 2010 Earnings Tables at the link below.

On an adjusted basis, which includes the combined results of Voyager Learning Company, the Company reported Adjusted Sales of $86 million for the six months ended June 30, 2010 versus $84 million for the same period in 2009.  While Adjusted Sales for the Company increased 2.5% during the first six months, the Company experienced a decline in order volume of 10% compared with the same prior year period. Order volume is a management metric used as a leading indicator of sales, and measures shipment of products plus orders for subscription products and services.  Adjusted Sales increased as order volume declined because the Company recognized deferred revenues from prior periods.  As the Company defers a significant portion of sales until services are rendered and products delivered, there is a delayed effect between order volume and sales.  

The Company reported Adjusted EBITDA, which includes the combined results of Voyager Learning Company, of $20 million for the first six months ended June 30, 2010 versus $14 million for the same period in 2009, resulting in an increase of $6 million.  The increase is due to increased sales recognition, on an adjusted basis, and decreased adjusted spending as a result of continued integration synergy savings partially offset with planned investments in the Sopris and Cambium Learning Technologies business units.  

Click here to view 2010 Earnings Tables

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 recent acquisition of Voyager Learning Company, and provide investors with a view of the combined Company's operations from management's 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 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 Company's liquidity.  

Investor Conference Call

The Company will hold a conference call today at 4:00 p.m. Eastern Time. The call will address unaudited financial results through June 30, 2010.

To listen to the Company's upcoming conference call, please dial (877) 317-6789 and reference "Cambium Learning" at 4:00 p.m. Eastern Time on Thursday, August 12, 2010. The call will be recorded and archived until Thursday, September 9, 2010, and can be replayed by calling (877) 344-7529 and entering ID# 442507. The conference call will also be Webcast and available on the Company's Website at www.cambiumlearninggroup.com.

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 nation's most challenged learners and enabling students to realize their full potential. The company's website is www.cambiumlearninggroup.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.

SOURCE Cambium Learning Group, Inc.