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May 30, 2015 10:36 AM ET

Media

Company Overview of Cengage Learning, Inc.

Company Overview

Cengage Learning, Inc. provides educational content, technology, and services for higher education and K-12, professional, and library markets worldwide. The company specializes in publishing mathematics and the physical science materials; and offers print and technology-based products focusing on computer concepts, information technology, and software applications. It also provides learning solutions in healthcare, technology, trades, and career education; digital and print product solutions that support education and research in public, academic, and K-12 libraries; imprints that deliver multi-level English language programs for the primary, secondary, post-secondary, and adult markets; le...

20 Channel Center Street

Boston, MA 02210

United States

Founded in 1994

Phone:

617-289-7700

Fax:

617-289-7844

Key Executives for Cengage Learning, Inc.

Chief Executive Officer and Director
Age: 52
Executive Chairman
Age: 67
Chief Executive Officer of EMEA and President of EMEA
President of International
Age: 49
Chief Technology Officer and Executive Vice President
Age: 42
Compensation as of Fiscal Year 2014.

Cengage Learning, Inc. Key Developments

Cengage Learning Reports Earnings Results for the Third Quarter and Nine Months Ended December 31, 2014

Cengage Learning reported earnings results for the third quarter and nine months ended December 31, 2014. For the quarter, the company reported on GAAP basis, third quarter revenue decreased by $39.7 million to $374.9 million. While $3.7 million of this decline was due to the continued flow-through of the fresh-start accounting adjustment to deferred revenue. Operating loss for the quarter was $27.4 million compared to operating income of $48.6 million in third quarter last year. $45.8 million of the decline was due to the flow-through of a portion of the inventory step up recognized in connection with fresh start. For the third quarter, adjusted revenue declined $32.6 million or 7.9% to $382.3 million and adjusted EBITDA declined $23.9 million or 16.4% to $121.7 million. Adjusted revenue from domestic segment declined by 9.6% to $314.5 million. This decrease was primarily due to the expected decline in sales of standalone print products. International adjusted revenue grew 1.2% for the quarter to $67.8 million. CapEx grew $3.8 million, largely driven by increased spend on digital platforms. The company generated adjusted EBITDA less plate and CapEx of $70.8 million for the quarter, a decline of $26.5 million versus last year. Again, this decline was largely due to lower adjusted revenue. For the nine months revenues decreased by $68.4 million to $1.3 billion, $30.8 million of this reduction was attributable to fresh-start accounting adjustments to deferred revenue, while the remainder was due to the decline in sales of print product, primarily, in third quarter. The year-to-date operating loss was $58.3 million compared with operating income of $420.8 million for the same period last year. The $479.1 million decrease was primarily due to the combination of the year-to-date flow-through of the inventory step up, the company recorded under fresh-start accounting of $242.3 million in third quarter and a favorable adjustment related to goodwill impairment of $185.4 million in third quarter last year. The company generated $1.4 billion in adjusted revenue, a slight decline of 2.5%. Adjusted EBITDA declined by $47 million to $517.1 million. The reduction was, primarily, driven by a $55.2 million decline in the domestic segment due to lower adjusted revenues, including the impact from digital sales deferrals. The decline in domestic adjusted EBITDA was partially offset by an $8.2 million increase in international. International's EBITDA performance was largely revenue-driven. CapEx grew $13.1 million, again, largely driven by increased spend on digital platforms. Year-to-date adjusted EBITDA less plate and CapEx was $354.8 million, a decline of $57.5 million versus last year. The decline was the result of the lower adjusted revenue, which was driven by the print decline and higher revenue deferrals as well as increased investments to support the execution of digital strategy. The company generated $376 million of cash from operations during the first nine months of the year.

Cengage Learning, Inc. Appoints Sandi Kirshner as Chief Marketing Officer

Cengage Learning, Inc. announced the appointment of Sandi Kirshner as Chief Marketing Officer. She will be based in the company's Boston, MA office and will serve on the executive team reporting to Kevin Stone, Chief Sales and Marketing Officer. In this role, Kirshner will be responsible for all marketing and communications activities within the company. Kirshner joins the company from Pearson. In these roles, Kirshner developed a deep sense of the challenges and opportunities that exist in present higher education marketplace.

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