Print page
Email page
Download PDF
« Previous Release | Next Release »
New York, NY, May 9, 2006 -- The Princeton Review, Inc. (Nasdaq: REVU), a leading provider of test preparation, educational support, and college admissions services, today announced financial results for its first quarter ended March 31, 2006.
First Quarter 2006 Financial Highlights
"This quarter, we took a significant step in our efforts to reduce the Company's cost structure and we expect to be profitable for the year," said John Katzman, Chief Executive Officer of The Princeton Review. "Revenue is expected to be strong, especially those related to SES and K-12, where we are currently negotiating several significant contracts with some major school districts. We will continue to address our expense base and drive productivity."
Test Preparation Services
For the quarter, Test Preparation Services revenue increased by $2.1 million, or 9.3%, from $22.9 million to $25.0 million in 2006. The division experienced solid growth in its SES business. However, retail classroom revenue was down due to the significant enrollment experienced during the first quarter of 2005 as a result of preparation for the then-newly redesigned SAT test.
K-12 Services
For the quarter, K-12 Services revenue declined by $1.0 million, or 13.2%, from $7.9 million to $6.9 million in 2006. This decline was primarily the result of lower sales related to intervention materials as well as a decrease in SES professional development course revenue now recorded primarily by the Test Preparation Services division. Additionally, there was a reduction in assessment fees related to the New York City Department of Education Interim Assessment Contract, which decided to forgo customary math and reading tests for grades 3 through 8 in the first quarter this year. Total Assessment Services revenue is up primarily due to several new contracts.
Admissions Services
For the quarter, Admissions Services revenue grew by $0.4 million, or 13.6%, from $2.8 million to $3.2 million in 2006 due to an increase in counseling revenue.
Business Outlook
Since the beginning of 2006, the Company has made progress in improving its cost structure. For the remainder of the year, management expects to further reduce costs and increase revenue. The Company's K-12 Services division is currently negotiating several significant, new contracts with school districts which, if closed, will contribute to revenue growth for the balance of the year.
The Princeton Review will review its first quarter 2006 financial results and provide additional business highlights on a conference call at 10:00 a.m. Eastern Standard Time today. A copy of this earnings release is available at http://ir.princetonreview.com/releases.cfm?type=earnings. To participate on the live call, investors should dial (719) 457-2638 approximately ten minutes prior to the start time. In addition, the call will be available via live webcast over the Internet. To access the live webcast of the conference call, please go to http://ir.princetonreview.com/medialist.cfm 15 minutes prior to the start time of the call to register. An archived webcast will be available on the Company's website at http://ir.princetonreview.com/medialist.cfm. Additionally, a replay of the call can be accessed by dialing either (888) 203-1112 or (719) 457-0820, passcode 1768974, through May 12, 2006.
About The Princeton Review
The Princeton Review (Nasdaq: REVU) is a pioneer in the world of education. Founded in 1981 and headquartered in New York City, the Company offers private tutoring and classroom and online test preparation to help students improve their scores in college and graduate school admissions tests. The Company's free website, www.PrincetonReview.com, helps over half of university-bound students research, apply to, prepare for, and learn how to pay for their higher education, and helps hundreds of colleges and universities streamline their admissions and recruiting activities. In addition, The Princeton Review works with school districts around the U.S. to measurably strengthen students' academic skills by connecting ongoing assessment with professional development and instruction and by providing districts with college and career resources for both students and guidance counselors. The Company also authors more than 200 print and software titles on test preparation, college and graduate school selection and admissions, and related topics.
Safe Harbor Statement
All statements in this press release that are not historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by words such as "believe", "intend," "expect", "may", "could", "would", "will", "should", "plan", "project", "contemplate", "anticipate", or similar statements. Because these statements reflect The Princeton Review's current views concerning future events, these forward-looking statements are subject to risks and uncertainties. The Princeton Review's actual results could differ materially from those anticipated in these forward-looking statements as a result of many factors, including, but not limited to, demand for the company's products and services; the company's ability to compete effectively and adjust to rapidly changing market dynamics; the timing of revenue recognition from significant contracts with schools and school districts; market acceptance of the company's newer products and services; continued federal and state focus on assessment and remediation in K-12 education; and the other factors described under the caption "Risk Factors" in The Princeton Review's Form 10-K for the year ended December 31, 2005 filed with the Securities and Exchange Commission. The Princeton Review undertakes no obligation to update publicly any forward-looking statements contained in this press release.
Contacts:
Harriet Brand
The Princeton Review
(212) 874-8282 ext. 1091
Robin Raskin
The Princeton Review
(212) 874-8282 ext. 1647