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Renaissance Learning Inc (RLRN) SEC Filing 10-K Annual report for the fiscal year ending Friday, December 31, 2010

Renaissance Learning Inc

CIK: 1030484 Ticker: RLRN

Exhibit 99.1

[exh991001.jpg]

NEWS RELEASE

For release at 4:00 p.m. EST, 1/27/11

Contact:  Susan Sutherland

Toll free ofc. (877) 988-8048

Fax: (715) 424-3414

Email: pr@renlearn.com


2911 Peach Street • P.O. Box 8036 • Wisconsin Rapids, WI 54495-8036




Renaissance Learning, Inc. Announces Fourth Quarter, 2010 Results



WISCONSIN RAPIDS, WI — January 27, 2011 — 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.


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.”  



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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)


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RENAISSANCE LEARNING™, INC.

CONSOLIDATED STATEMENTS OF INCOME

(dollar amounts in thousands, except per share amounts)

(unaudited)


 

Three Months

 

Twelve Months

 

 Ended December 31,  

 

 Ended December 31,

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

 

 

 

    Products

 $        22,156

 

 $        22,220

 

 $        86,660

 

 $        86,030

    Services

12,067

 

10,205

 

43,434

 

           35,483

        Total net sales

34,223

 

32,425

 

130,094

 

         121,513

 

 

 

 

 

 

 

 

Cost of sales:

 

 

 

 

 

 

 

    Products

3,299

 

3,128

 

13,770

 

           13,730

    Services

3,461

 

2,921

 

13,560

 

           11,691

        Total cost of sales

6,760

 

6,049

 

27,330

 

           25,421

 

 

 

 

 

 

 

 

Gross profit

27,463

 

26,376

 

102,764

 

           96,092

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

    Product development

3,943

 

4,006

 

16,369

 

           16,494

    Selling and marketing

8,865

 

9,078

 

38,710

 

           35,960

    General and administrative

3,450

 

3,083

 

13,427

 

           13,113

 

 

 

 

 

 

 

 

Total operating expenses

16,258

 

16,167

 

68,506

 

           65,567

 

 

 

 

 

 

 

 

Operating income

11,205

 

10,209

 

34,258

 

           30,525

 

 

 

 

 

 

 

 

Other income (expense), net

60

 

52

 

284

 

                452

 

 

 

 

 

 

 

 

Income before income taxes

           11,265

 

           10,261

 

           34,542

 

           30,977

 

 

 

 

 

 

 

 

Income taxes

             3,690

 

             3,580

 

           10,654

 

           11,054

 

 

 

 

 

 

 

 

Net income

 $          7,575

 

 $          6,681

 

 $        23,888

 

 $        19,923

 

 

 

 

 

 

 

 

Income per share:

 

 

 

 

 

 

 

  Basic and Diluted

 $            0.26

 

 $            0.23

 

 $            0.82

 

 $            0.68

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

  Basic

29,259,860

 

29,261,998

 

29,292,879

 

29,222,327

  Diluted

29,260,037

 

29,262,154

 

29,293,420

 

29,222,387






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RENAISSANCE LEARNING™, INC.

CONSOLIDATED BALANCE SHEETS

(dollar amounts in thousands)

(unaudited)



 

December 31,

 

December 31,

 

2010

 

2009

 

 

 

 

 

 

 

 

ASSETS:

 

Current assets:

 

 

 

Cash and cash equivalents

 $             9,845

 

 $          36,207

Investment securities

                6,630

 

               3,278

Accounts receivable, net

                7,873

 

             10,535

Inventories

                5,042

 

               4,290

Prepaid expenses

                1,668

 

               1,962

Income taxes receivable

                   327

 

               3,679

Deferred tax asset

                5,008

 

               3,827

Other current assets

                   711

 

                  629

  Total current assets

              37,104

 

             64,407

 

 

 

 

Investment securities

                3,661

 

               4,650

Property, plant and equipment, net

                6,720

 

               6,848

Goodwill

                2,854

 

               2,827

Other non-current assets

                3,450

 

               4,534

 

 

 

 

  Total assets

 $           53,789

 

 $          83,266

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY:

 

 

 

Current liabilities:

 

 

 

Accounts payable

 $             2,874

 

 $               921

Deferred revenue

              64,791

 

             54,224

Payroll and employee benefits

                5,609

 

               5,404

Other current liabilities

                2,340

 

               2,648

  Total current liabilities

              75,614

 

             63,197

 

 

 

 

Deferred revenue  

                7,051

 

               5,262

Deferred compensation and other employee benefits

                2,538

 

               1,871

Income taxes payable

                3,426

 

               4,801

Other non-current liabilities

                   213

 

                  184

  Total liabilities

              88,842

 

             75,315

 

 

 

 

  Total shareholders' equity

            (35,053)

 

               7,951

 

 

 

 

  Total liabilities and shareholders' equity

 $           53,789

 

 $          83,266

 

 

 

 






The following information was filed by Renaissance Learning Inc (RLRN) on Tuesday, February 1, 2011 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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SEC Filing Tools
Ticker: RLRN
CIK: 1030484
Form Type: 10-K Annual Report
Accession Number: 0001140361-11-015012
Submitted to the SEC: Tue Mar 08 2011 2:17:10 PM EST
Accepted by the SEC: Tue Mar 08 2011
Period: Friday, December 31, 2010
Industry: Prepackaged Software

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