WRC Media Inc., The Leading Supplementary Education Publisher, Reports First Quarter Results

Apr 26, 2001, 01:00 ET from WRC Media Inc.

    NEW YORK, April 26 /PRNewswire/ -- WRC Media announced results for the
 first quarter ended March 31, 2001.
     WRC Media is off to a solid start in 2001.  Consolidated EBITDA for the
 first quarter was $7.6 million, 16.1% or $1.0 million greater than the same
 period in 2000.
     Martin E. Kenney, Chief Executive Officer, stated, "Significantly improved
 performance from CompassLearning was a key driver of our strong first quarter
 results.  New software revenue was up 42.7% versus the same period of 2000, an
 encouraging indicator of the prospects for the educational software
 marketplace for the remainder of the year.  The increase in CompassLearning
 new software sales, combined with the benefits resulting from the
 organizational initiatives we commenced in mid-2000, contributed significantly
 to the 16.1% increase in EBITDA over last year.  I am optimistic that
 CompassLearning is now headed in the right direction, and with our solid
 start, I am confident about our ability to grow our core business in 2001."
 Mr. Kenney continued, "On April 3, 2001, we reorganized WRC Media into two
 operating units:  The Assessment, Curriculum and Educational Technology Group
 (comprised of the CompassLearning and AGS operating units) and the Reference
 and Periodicals Group (comprised of the World Almanac and Weekly Reader
 operating units).  This is the next logical step in furthering our strategy
 for continued market leadership, fully integrating our substantial asset base,
 and fully leveraging our operating infrastructure to allow for future growth.
 I am confident our new organizational structure is more market focused, and it
 will allow us to capitalize efficiently on growth opportunities in the
 marketplace."
     Consolidated revenues for the first quarter of 2001 decreased
 $0.7 million, or 1.5%, to $49.5 million from $50.2 million for the same period
 in 2000.  This decrease was the result of an anticipated decrease in
 de-emphasized business lines; including, planned attrition of low margin
 hardware sales at CompassLearning, and Funk & Wagnalls Yearbook sales at World
 Almanac.  World Almanac is no longer soliciting new subscribers for its
 yearbooks since the print edition of the Funk & Wagnalls Encyclopedia was
 discontinued.  Accordingly, Funk & Wagnalls sales of Yearbooks are naturally
 declining year-over-year, as it is entirely dependent upon sales orders from
 existing customers via renewals.
     Net revenue for the first quarter of 2001 -- excluding non-core business
 lines of hardware and Yearbooks, increased $1.4 million, or 3.1%, to
 $47.1 million from $45.7 million for the same period in 2000.
 
 
      ($000)                                                   Variance to
                                       Q1           Q1           Q1 2000
      Net Revenue                     2001         2000         $       %
 
      Weekly Reader                  10,421       10,459       (38)   (0.4%)
      AGS                            12,119       11,940       179      1.5%
      World Almanac                  13,042       13,308      (266)   (2.0%)
      Compass                        13,909       14,527      (618)   (4.3%)
      WRC Media - Consolidated       49,491       50,234      (743)   (1.5%)
      Less: Noncore revenues:
        Compass Hardware business       848        2,690    (1,842)  (68.5%)
        World Almanac's Funk &
         Wagnall's Yearbook business  1,536        1,846      (310)  (16.8%)
      WRC Media - Core business      47,107       45,698     1,409      3.1%
 
     At American Guidance Service, Inc., sales increased $0.2 million, or 1.5%,
 to $12.1 million for the first quarter of 2001 from $11.9 million for the same
 period in 2000, primarily due to higher sales of curriculum products.  At
 Weekly Reader Corporation, sales of $10.4 million were flat for the first
 quarter of 2001 compared to the same period in 2000.  At World Almanac
 Education Group, Inc., first quarter sales decreased by $0.3 million, or 2.0%,
 to $13.0 million from $13.3 million for the same period in 2000, as a result
 of anticipated lower sales of Funk & Wagnalls Yearbook business.  Net revenue
 for the first quarter of 2001 excluding non-core Yearbook sales increased
 $0.1 million, or 0.4%, to $11.5 million from $11.4 million for the same period
 in 2000.
     Mr. Kenney stated, "I am pleased with the first quarter results at AGS,
 Weekly Reader and World Almanac.  At AGS, the division was able to post a
 quarter-over-quarter gain in revenues despite being up against a year 2000
 quarter that was significantly up over 1999 ($1.2 million and 11.5%) and
 despite the harsh winter in the Midwest and Northeast that delayed purchasing
 decisions and shipment of product to certain customers.  We expect those sales
 to materialize in the second quarter of 2001.
     "At Weekly Reader, I am encouraged by the recent changes we have made in
 sales and marketing.  These changes include an increased marketing budget
 related to direct mail of 14%; a research based circulation recapture plan
 with a goal of increasing our market share, and the addition of talented
 executives to the Weekly Reader team.  We have hired a Senior Executive to
 manage the Weekly Reader sales and marketing initiatives.  This position was
 vacant for most of 2000.  We expect an increased focus in this area to
 positively impact our top line growth.
     "At World Almanac, I am encouraged by our 2001 quarter-over quarter
 revenue gain in the core business.  I base this primarily on the fact that the
 2000 first quarter included a spillover effect of sales of the World Almanac
 Millennium edition, which was a significant nonrecurring revenue stream in
 2000.  For the first quarter of 2001, World Almanac's Facts.com -- the web
 authority of fully integrated, highly respected research and reference
 materials- which is still in its embryonic stage of development -- grew an
 impressive 81.6% compared to the same period in 2000 offsetting the fall-off
 from World Almanac 2000.  This 2001 growth follows 2000 results in which
 Facts.com revenues increased from $390 thousand in 1999 to $1.6 million in
 2000 -- or 311%.  We have great confidence that we are positioned to continue
 to grow both revenues and margins from this website."
     At CompassLearning, revenue decreased $0.6 million, or 4.3%, to
 $13.9 million for the first quarter of 2001 from $14.5 million for the same
 period in 2000, as a direct result of the planned attrition of low margin,
 non-core hardware sales that was almost entirely offset by higher margin
 software sales.  Net revenue for the first quarter of 2001 excluding the
 planned attrition of hardware sales increased $1.2 million, or 10.3%, to
 $13.0 million from $11.8 million for the same period in 2000.  Software sales
 for the first quarter of 2001 increased significantly by $2.1 million or 42.7%
 to $7.0 million from $4.9 million for the same period in 2000.  Mr. Kenney
 stated "At CompassLearning, it is our strategy to grow our core business;
 which is the high margin electronic courseware business and the related
 professional development services that emanate from that business, and
 continue to de-emphasize the significantly lower margin hardware revenues, as
 well as the technical support service revenue streams which have a declining
 service life cycle."
 
 
      CompassLearning, Inc.
      Analysis of revenue for the three
      months ended March 31, (in 000's)                          Variance
                                         2001      2000        $        %
 
      Software                          $6,972    $4,887    $2,085     42.7%
      Professional Development           2,484     2,695      (211)    (7.8%)
      Technical Support                  3,605     4,255      (650)   (15.3%)
      Hardware                             848     2,690    (1,842)   (68.5%)
      Total revenue, Net               $13,909   $14,527     $(618)    (4.3%)
      Less: Non-core hardware revenue      848     2,690    (1,842)  (217.2%)
      Core revenues                    $13,061   $11,837    $1,224     10.3%
 
     Sales mix, in part, explains the significantly reduced operating loss
 (measured in terms of EBITDA) at CompassLearning for the first quarter ended
 March 31, 2001 versus 2000.  CompassLearning gross profit increased
 $1.4 million, or 20.9%, for the first quarter of 2001 compared to the same
 period in 2000, primarily due to the replacement of $500 thousand of hardware
 gross margin with $1.5 million of higher software gross margin attributable to
 higher software sales.  CompassLearning's gross profit margin improved to
 59.0% for the first quarter -- from 46.8% for the same period in 2000.
 CompassLearning's pre-corporate EBITDA for the first quarter increased
 $2.3 million, or 97.4% to a $62 thousand loss compared to a $2.4 million
 EBITDA loss for the same period last year (CompassLearning's first quarter is
 historically its weakest).
     WRC Media Inc.'s EBITDA increased by $1.0 million, or 16.1%, to
 $7.6 million for the first quarter of 2001 from $6.5 million for the same
 period in 2000.  This increase is primarily attributable to $1.9 million of
 greater gross profit for the first quarter of this year compared to the same
 period in 2000, offset by $0.8 million of higher selling, general and
 administrative expenses.  CompassLearning contributed $1.4 million of the
 $1.9 million higher gross profit in the quarter resulting from higher software
 sales.  Operating income before amortization expense increased $0.9 million,
 or 15.8% to $6.7 million for the first quarter of 2001 from $5.8 million for
 the same period in 2000.
     Net loss increased by $7.3 million, or 63.1%, to $18.9 million compared to
 $11.6 million last year, directly as a result of an $8.4 million increase in
 non-cash depreciation and amortization expenses for intangible assets,
 partially offset by the $1.4 million higher gross profit.
     As of March 31, 2001, WRC Media Inc.'s cash balance was $2.9 million and
 consolidated debt was $285.0 million.  During the three months ended March 31,
 2001, WRC Media Inc. made scheduled principal payments of $1.0 million on its
 senior credit facilities and as of March 31, 2001, the Company had $12 million
 outstanding under its revolving credit facility.  Capital expenditures
 (including prepublication costs) for the three months ended March 31, 2001
 were $1.8 million.
 
     WRC Media Inc. (www.wrcmedia.com), a publishing and media company, creates
 and distributes innovative quality supplementary educational materials for use
 in schools, libraries, and the home.  According to Educational Marketer, WRC
 Media was the nation's largest supplementary materials publisher for 1999.
 WRC Media Inc has four principal operating subsidiaries.
     CompassLearning(TM) Inc. is the leader in research-driven, standards-based
 digital learning solutions that provide choices to help teachers manage
 student performance, personalize learning, and connect communities of
 learners.  With over 7,000 hours of curriculum and instruction, more than
 20,000 schools use CompassLearning(TM) solutions.
     Weekly Reader Corporation publishes Weekly Reader periodicals serving over
 7 million school children.  It also publishes other branded periodicals and
 instructional materials, including Teen Newsweek, published for middle and
 high school students.
     World Almanac Education Group, Inc. publishes the World Almanac and World
 Almanac for Kids, Facts On File news periodicals and Internet services, Gareth
 Stevens books and the Funk & Wagnalls encyclopedia.  The company distributes
 high quality books to schools and libraries through its Library Services
 division.
     American Guidance Service, Inc. is a leader in producing highly reliable
 and valid behavior, ability, achievement, and speech-language assessments, and
 publishes a variety of high-interest, low-reading-level textbooks for middle
 and high school students.
 
     Information in this press release contains forward-looking statements,
 including statements regarding our expectations, beliefs, intentions or
 strategies that involve a number of risks, uncertainties, and assumptions.
 Should any of the risks or uncertainties develop into actual events, or our
 assumptions prove to be inaccurate, actual outcomes and results could differ
 materially from what is expressed in such forward-looking statements and these
 developments or inaccuracies could materially and adversely affect our
 business, financial condition and results of operations.  Risks and
 uncertainties relating to WRC Media's and its subsidiaries' businesses are set
 forth in the documents and reports filed from time to time with the Securities
 and Exchange Commission.
 
 
                                 WRC Media Inc.
               For the three months ended March 31, 2001 and 2000
                                ($ in thousands)
 
                                          Actual          Increase/(Decrease)
                                  3/31/2001   3/31/2000       $          %
     Revenues
       Weekly Reader               $10,421     $10,459        $(38)    (0.4%)
       American Guidance Service    12,119      11,940         179      1.5%
       World Almanac Education      13,042      13,308        (266)    (2.0%)
       Compass Learning             13,909      14,527        (618)    (4.3%)
     Total Revenue                 $49,491     $50,234       $(743)    (1.5%)
 
     Costs and Expenses:
       Operating costs and
        expenses                    41,964      43,776     $(1,812)    (4.1%)
       Depreciation                    782         634         148     23.3%
 
     Operating Income before
      amortization expense          $6,745      $5,824        $921     15.8%
 
       Amortization of goodwill
        and other intangibles       16,853       8,655       8,198     94.7%
 
     Operating Loss after
      amortization expense        $(10,108)    $(2,831)    $(7,277)  (257.0%)
 
     Interest expense                8,611       8,354         257      3.1%
     Other, (income)/expense, net       --         (11)         11    100.0%
     Income Taxes                      234         450        (216)   (48.0%)
 
     Net Loss                     $(18,953)   $(11,624)    $(7,329)   (63.1%)
 
     EBITDA
       Net Loss                   $(18,953)   $(11,624)    $(7,329)   (63.1%)
       Depreciation and
        amortization of intangibles 17,635       9,289       8,346     89.8%
       Amortization of deferred
        financing costs                288         174         114     65.5%
       Income taxes                    234         450        (216)   (48.0%)
       Interest expense              8,358       8,226         132      1.6%
     EBITDA                         $7,562      $6,515      $1,047     16.1%
 
 
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SOURCE WRC Media Inc.
    NEW YORK, April 26 /PRNewswire/ -- WRC Media announced results for the
 first quarter ended March 31, 2001.
     WRC Media is off to a solid start in 2001.  Consolidated EBITDA for the
 first quarter was $7.6 million, 16.1% or $1.0 million greater than the same
 period in 2000.
     Martin E. Kenney, Chief Executive Officer, stated, "Significantly improved
 performance from CompassLearning was a key driver of our strong first quarter
 results.  New software revenue was up 42.7% versus the same period of 2000, an
 encouraging indicator of the prospects for the educational software
 marketplace for the remainder of the year.  The increase in CompassLearning
 new software sales, combined with the benefits resulting from the
 organizational initiatives we commenced in mid-2000, contributed significantly
 to the 16.1% increase in EBITDA over last year.  I am optimistic that
 CompassLearning is now headed in the right direction, and with our solid
 start, I am confident about our ability to grow our core business in 2001."
 Mr. Kenney continued, "On April 3, 2001, we reorganized WRC Media into two
 operating units:  The Assessment, Curriculum and Educational Technology Group
 (comprised of the CompassLearning and AGS operating units) and the Reference
 and Periodicals Group (comprised of the World Almanac and Weekly Reader
 operating units).  This is the next logical step in furthering our strategy
 for continued market leadership, fully integrating our substantial asset base,
 and fully leveraging our operating infrastructure to allow for future growth.
 I am confident our new organizational structure is more market focused, and it
 will allow us to capitalize efficiently on growth opportunities in the
 marketplace."
     Consolidated revenues for the first quarter of 2001 decreased
 $0.7 million, or 1.5%, to $49.5 million from $50.2 million for the same period
 in 2000.  This decrease was the result of an anticipated decrease in
 de-emphasized business lines; including, planned attrition of low margin
 hardware sales at CompassLearning, and Funk & Wagnalls Yearbook sales at World
 Almanac.  World Almanac is no longer soliciting new subscribers for its
 yearbooks since the print edition of the Funk & Wagnalls Encyclopedia was
 discontinued.  Accordingly, Funk & Wagnalls sales of Yearbooks are naturally
 declining year-over-year, as it is entirely dependent upon sales orders from
 existing customers via renewals.
     Net revenue for the first quarter of 2001 -- excluding non-core business
 lines of hardware and Yearbooks, increased $1.4 million, or 3.1%, to
 $47.1 million from $45.7 million for the same period in 2000.
 
 
      ($000)                                                   Variance to
                                       Q1           Q1           Q1 2000
      Net Revenue                     2001         2000         $       %
 
      Weekly Reader                  10,421       10,459       (38)   (0.4%)
      AGS                            12,119       11,940       179      1.5%
      World Almanac                  13,042       13,308      (266)   (2.0%)
      Compass                        13,909       14,527      (618)   (4.3%)
      WRC Media - Consolidated       49,491       50,234      (743)   (1.5%)
      Less: Noncore revenues:
        Compass Hardware business       848        2,690    (1,842)  (68.5%)
        World Almanac's Funk &
         Wagnall's Yearbook business  1,536        1,846      (310)  (16.8%)
      WRC Media - Core business      47,107       45,698     1,409      3.1%
 
     At American Guidance Service, Inc., sales increased $0.2 million, or 1.5%,
 to $12.1 million for the first quarter of 2001 from $11.9 million for the same
 period in 2000, primarily due to higher sales of curriculum products.  At
 Weekly Reader Corporation, sales of $10.4 million were flat for the first
 quarter of 2001 compared to the same period in 2000.  At World Almanac
 Education Group, Inc., first quarter sales decreased by $0.3 million, or 2.0%,
 to $13.0 million from $13.3 million for the same period in 2000, as a result
 of anticipated lower sales of Funk & Wagnalls Yearbook business.  Net revenue
 for the first quarter of 2001 excluding non-core Yearbook sales increased
 $0.1 million, or 0.4%, to $11.5 million from $11.4 million for the same period
 in 2000.
     Mr. Kenney stated, "I am pleased with the first quarter results at AGS,
 Weekly Reader and World Almanac.  At AGS, the division was able to post a
 quarter-over-quarter gain in revenues despite being up against a year 2000
 quarter that was significantly up over 1999 ($1.2 million and 11.5%) and
 despite the harsh winter in the Midwest and Northeast that delayed purchasing
 decisions and shipment of product to certain customers.  We expect those sales
 to materialize in the second quarter of 2001.
     "At Weekly Reader, I am encouraged by the recent changes we have made in
 sales and marketing.  These changes include an increased marketing budget
 related to direct mail of 14%; a research based circulation recapture plan
 with a goal of increasing our market share, and the addition of talented
 executives to the Weekly Reader team.  We have hired a Senior Executive to
 manage the Weekly Reader sales and marketing initiatives.  This position was
 vacant for most of 2000.  We expect an increased focus in this area to
 positively impact our top line growth.
     "At World Almanac, I am encouraged by our 2001 quarter-over quarter
 revenue gain in the core business.  I base this primarily on the fact that the
 2000 first quarter included a spillover effect of sales of the World Almanac
 Millennium edition, which was a significant nonrecurring revenue stream in
 2000.  For the first quarter of 2001, World Almanac's Facts.com -- the web
 authority of fully integrated, highly respected research and reference
 materials- which is still in its embryonic stage of development -- grew an
 impressive 81.6% compared to the same period in 2000 offsetting the fall-off
 from World Almanac 2000.  This 2001 growth follows 2000 results in which
 Facts.com revenues increased from $390 thousand in 1999 to $1.6 million in
 2000 -- or 311%.  We have great confidence that we are positioned to continue
 to grow both revenues and margins from this website."
     At CompassLearning, revenue decreased $0.6 million, or 4.3%, to
 $13.9 million for the first quarter of 2001 from $14.5 million for the same
 period in 2000, as a direct result of the planned attrition of low margin,
 non-core hardware sales that was almost entirely offset by higher margin
 software sales.  Net revenue for the first quarter of 2001 excluding the
 planned attrition of hardware sales increased $1.2 million, or 10.3%, to
 $13.0 million from $11.8 million for the same period in 2000.  Software sales
 for the first quarter of 2001 increased significantly by $2.1 million or 42.7%
 to $7.0 million from $4.9 million for the same period in 2000.  Mr. Kenney
 stated "At CompassLearning, it is our strategy to grow our core business;
 which is the high margin electronic courseware business and the related
 professional development services that emanate from that business, and
 continue to de-emphasize the significantly lower margin hardware revenues, as
 well as the technical support service revenue streams which have a declining
 service life cycle."
 
 
      CompassLearning, Inc.
      Analysis of revenue for the three
      months ended March 31, (in 000's)                          Variance
                                         2001      2000        $        %
 
      Software                          $6,972    $4,887    $2,085     42.7%
      Professional Development           2,484     2,695      (211)    (7.8%)
      Technical Support                  3,605     4,255      (650)   (15.3%)
      Hardware                             848     2,690    (1,842)   (68.5%)
      Total revenue, Net               $13,909   $14,527     $(618)    (4.3%)
      Less: Non-core hardware revenue      848     2,690    (1,842)  (217.2%)
      Core revenues                    $13,061   $11,837    $1,224     10.3%
 
     Sales mix, in part, explains the significantly reduced operating loss
 (measured in terms of EBITDA) at CompassLearning for the first quarter ended
 March 31, 2001 versus 2000.  CompassLearning gross profit increased
 $1.4 million, or 20.9%, for the first quarter of 2001 compared to the same
 period in 2000, primarily due to the replacement of $500 thousand of hardware
 gross margin with $1.5 million of higher software gross margin attributable to
 higher software sales.  CompassLearning's gross profit margin improved to
 59.0% for the first quarter -- from 46.8% for the same period in 2000.
 CompassLearning's pre-corporate EBITDA for the first quarter increased
 $2.3 million, or 97.4% to a $62 thousand loss compared to a $2.4 million
 EBITDA loss for the same period last year (CompassLearning's first quarter is
 historically its weakest).
     WRC Media Inc.'s EBITDA increased by $1.0 million, or 16.1%, to
 $7.6 million for the first quarter of 2001 from $6.5 million for the same
 period in 2000.  This increase is primarily attributable to $1.9 million of
 greater gross profit for the first quarter of this year compared to the same
 period in 2000, offset by $0.8 million of higher selling, general and
 administrative expenses.  CompassLearning contributed $1.4 million of the
 $1.9 million higher gross profit in the quarter resulting from higher software
 sales.  Operating income before amortization expense increased $0.9 million,
 or 15.8% to $6.7 million for the first quarter of 2001 from $5.8 million for
 the same period in 2000.
     Net loss increased by $7.3 million, or 63.1%, to $18.9 million compared to
 $11.6 million last year, directly as a result of an $8.4 million increase in
 non-cash depreciation and amortization expenses for intangible assets,
 partially offset by the $1.4 million higher gross profit.
     As of March 31, 2001, WRC Media Inc.'s cash balance was $2.9 million and
 consolidated debt was $285.0 million.  During the three months ended March 31,
 2001, WRC Media Inc. made scheduled principal payments of $1.0 million on its
 senior credit facilities and as of March 31, 2001, the Company had $12 million
 outstanding under its revolving credit facility.  Capital expenditures
 (including prepublication costs) for the three months ended March 31, 2001
 were $1.8 million.
 
     WRC Media Inc. (www.wrcmedia.com), a publishing and media company, creates
 and distributes innovative quality supplementary educational materials for use
 in schools, libraries, and the home.  According to Educational Marketer, WRC
 Media was the nation's largest supplementary materials publisher for 1999.
 WRC Media Inc has four principal operating subsidiaries.
     CompassLearning(TM) Inc. is the leader in research-driven, standards-based
 digital learning solutions that provide choices to help teachers manage
 student performance, personalize learning, and connect communities of
 learners.  With over 7,000 hours of curriculum and instruction, more than
 20,000 schools use CompassLearning(TM) solutions.
     Weekly Reader Corporation publishes Weekly Reader periodicals serving over
 7 million school children.  It also publishes other branded periodicals and
 instructional materials, including Teen Newsweek, published for middle and
 high school students.
     World Almanac Education Group, Inc. publishes the World Almanac and World
 Almanac for Kids, Facts On File news periodicals and Internet services, Gareth
 Stevens books and the Funk & Wagnalls encyclopedia.  The company distributes
 high quality books to schools and libraries through its Library Services
 division.
     American Guidance Service, Inc. is a leader in producing highly reliable
 and valid behavior, ability, achievement, and speech-language assessments, and
 publishes a variety of high-interest, low-reading-level textbooks for middle
 and high school students.
 
     Information in this press release contains forward-looking statements,
 including statements regarding our expectations, beliefs, intentions or
 strategies that involve a number of risks, uncertainties, and assumptions.
 Should any of the risks or uncertainties develop into actual events, or our
 assumptions prove to be inaccurate, actual outcomes and results could differ
 materially from what is expressed in such forward-looking statements and these
 developments or inaccuracies could materially and adversely affect our
 business, financial condition and results of operations.  Risks and
 uncertainties relating to WRC Media's and its subsidiaries' businesses are set
 forth in the documents and reports filed from time to time with the Securities
 and Exchange Commission.
 
 
                                 WRC Media Inc.
               For the three months ended March 31, 2001 and 2000
                                ($ in thousands)
 
                                          Actual          Increase/(Decrease)
                                  3/31/2001   3/31/2000       $          %
     Revenues
       Weekly Reader               $10,421     $10,459        $(38)    (0.4%)
       American Guidance Service    12,119      11,940         179      1.5%
       World Almanac Education      13,042      13,308        (266)    (2.0%)
       Compass Learning             13,909      14,527        (618)    (4.3%)
     Total Revenue                 $49,491     $50,234       $(743)    (1.5%)
 
     Costs and Expenses:
       Operating costs and
        expenses                    41,964      43,776     $(1,812)    (4.1%)
       Depreciation                    782         634         148     23.3%
 
     Operating Income before
      amortization expense          $6,745      $5,824        $921     15.8%
 
       Amortization of goodwill
        and other intangibles       16,853       8,655       8,198     94.7%
 
     Operating Loss after
      amortization expense        $(10,108)    $(2,831)    $(7,277)  (257.0%)
 
     Interest expense                8,611       8,354         257      3.1%
     Other, (income)/expense, net       --         (11)         11    100.0%
     Income Taxes                      234         450        (216)   (48.0%)
 
     Net Loss                     $(18,953)   $(11,624)    $(7,329)   (63.1%)
 
     EBITDA
       Net Loss                   $(18,953)   $(11,624)    $(7,329)   (63.1%)
       Depreciation and
        amortization of intangibles 17,635       9,289       8,346     89.8%
       Amortization of deferred
        financing costs                288         174         114     65.5%
       Income taxes                    234         450        (216)   (48.0%)
       Interest expense              8,358       8,226         132      1.6%
     EBITDA                         $7,562      $6,515      $1,047     16.1%
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X65697678
 
 SOURCE  WRC Media Inc.