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New York, NY, August 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 the second quarter ended June 30, 2006.
Second Quarter & Six-Month 2006 Financial Highlights
"Revenue and bookings remain strong, and we're particularly gratified by large orders in Los Angeles, New York, and Florida. At the same time, we're making strides in streamlining the Company and cutting G&A, as evidenced by our restructuring charge," said John Katzman, CEO. "Our cost reductions continue, and we are taking further action during this next quarter."
Test Preparation Services
For the second quarter, Test Preparation Services revenue increased by $1.1 million, or 5.1%, from $20.6 million in 2005 to $21.7 million in 2006. SES revenue grew by $766,000, reflecting strong enrollment in the cities where the Company was selected as an after-school provider.
For the six months ended June 30, Test Preparation Services revenue increased by $3.2 million, or 7.4%, from $43.5 million in 2005 to $46.7 million in 2006. This increase is primarily comprised of SES revenue, which increased by $3.0 million.
K-12 Services
For the second quarter, K-12 Services revenue increased by $2.7 million, or 38.0%, from $7.1 million in 2005 to $9.8 million in 2006. Assessment revenue increased by $1.3 million and revenue related to intervention increased by $1.5 million.
For the six months ended June 30, K-12 Services revenue increased by $1.7 million, or 11.0%, from $15.0 million in 2005 to $16.7 million in 2006, primarily related to an increase in intervention revenue of $1.8 million.
Admissions Services
For the second quarter, Admissions Services revenue increased by $472,000, or 23.1%, from $2.0 million in 2005 to $2.5 million in 2006. This increase was primarily related to an increase in counseling services revenue of $638,000.
For the six months ended June 30, Admissions Services revenue increased by $852,000 or 17.6%, from $4.8 million in 2005 to $5.7 million in 2006 primarily related to an increase in counseling services revenue of $1.0 million.
The Princeton Review will review its second 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) 457-2728 approximately ten minutes prior to the start time. In addition, the call will be available via live web cast over the Internet. To access the live web cast 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 web cast 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 1456782, through August 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 most recent Forms 10-K and 10-Q 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.
Contact:
Harriet Brand
The Princeton Review
(212) 874-8282 ext. 1091