Renaissance Learning, Inc. Announces Fourth Quarter, 2010 Results

WISCONSIN RAPIDS, Wis., Jan. 27, 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 December 31, 2010. Revenues for the fourth quarter of 2010 were $34.2 million, an increase of 5.5% from fourth quarter 2009 revenues of $32.4 million. Net income was $7.6 million, or $0.26 per share, an increase of 13.4 % from fourth quarter 2009 income of $6.7 million, or $0.23 per share.

(Logo:  http://photos.prnewswire.com/prnh/20001108/RENAISSANCELOGO)

Revenues for the twelve-month period ended December 31, 2010 were $130.1 million, up 7.1% from 2009 revenues of $121.5 million. Net income was $23.9 million for the twelve-month period ended December 31, 2010, up 19.9% from the prior year's net income of $19.9 million. Earnings per share for the twelve months of 2010 were $0.82, compared to $0.68 for the twelve months of 2009.  Net income for 2010 includes a tax benefit that resulted from an audit settlement in the first quarter 2010 for $1.1 million, or $0.04 per share.

"We are pleased to report solid financial results in the midst of a difficult education funding environment," commented Glenn R. James, Chief Executive Officer.  "Revenue and earnings both achieved steady growth compared to fourth quarter 2009, operating margins remained strong at nearly 33%, and cash flow was healthy.  However, orders declined by 11% in the quarter, reflecting both a continuation of the seasonal shift in our order pattern and the economic environment.

"We expect school funding to remain challenging for at least the next school year," continued James, "On the other hand, we believe the long term potential for our business is outstanding, and that we have the right products at the right time. Therefore, in the face of the current difficult environment, we are continuing to make investments in our products and resources, which we believe will improve our growth trajectory in the future."  

Renaissance Learning added approximately 500 new customer schools during the quarter, and total schools worldwide that are actively using the Company's products number over 70,000. Of these, approximately 34,000 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. EST 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. EST. 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 January 27, 2011 at 8:00 p.m. through February 3, 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 364648.

Renaissance Learning, Inc.

Renaissance Learning, Inc. is a leading provider of technology-based school improvement and student assessment programs for K12 schools.  Adopted by more than 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, 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 2009 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)

SOURCE Renaissance Learning, Inc.