Princeton Review Inc. (REVU, Financial) filed Quarterly Report for the period ended 2010-03-31.
Princeton Review Inc. has a market cap of $95.2 million; its shares were traded at around $2.82 with a P/E ratio of 47 and P/S ratio of 0.7. REVU is in the portfolios of Jim Simons of Renaissance Technologies LLC.
For the three months ended March 31, 2010, depreciation and amortization expense increased by $9.0 million to $10.6 million from $1.5 million in the three months ended March 31, 2009. The increase is primarily the result of $5.5 million of new depreciation and amortization on the fixed and intangible assets acquired with Penn Foster on December 7, 2009, coupled with $2.4 million of accelerated depreciation and amortization charges associated with actions taken in connection with the planned closing of our administrative office in New York City and to cease use of our legacy ERP system and utilize Penn Fosters ERP system prospectively. In addition, we changed the estimated useful lives for certain legacy fixed assets under a revised depreciation policy developed to standardize and conform legacy and Penn Foster depreciation methods and lives, resulting in additional depreciation and amortization of $1.1 million.
For the three months ended March 31, 2010, interest expense increased by $6.3 million, to $6.6 million from $329,000 in the three months ended March 31, 2009, primarily as a result of the financings undertaken to fund the Penn Foster acquisition on December 7, 2009. In April 2010, we repaid our bridge notes in full with proceeds from a public stock offering and as a result, expect to save approximately $1.6 million in quarterly interest charges.
Our primary sources of liquidity during the three months ended March 31, 2010 were cash and cash equivalents on hand, cash flow generated from operations and net proceeds from the issuance of additional Series E Preferred Stock. Our primary uses of cash during the three months ended March 31, 2010 were capital expenditures and scheduled repayments of our term loan credit facility. At March 31, 2010 we had $15.5 million of cash and cash equivalents and $9.7 million of unused borrowing capacity available under our new credit agreement. In addition, in September 2009 we filed a registration statement on Form S-3 with the SEC utilizing a shelf registration process whereby we may from time to time offer and sell common stock, preferred stock, warrants or units, or any combination of these securities, in one or more offerings up to a total amount of $75.0 million. On April 20, 2010, we sold 14.0 million shares of common stock through this shelf registration process for a public offering price of $42.0 million (before underwriting discounts and commissions) and received $39.9 million of net proceeds, before expenses. On April 28, 2010, we sold an additional 2.1 million shares of common stock upon the exercise of the underwriters over-allotment option for a public offering price of $6.3 million (before underwriting discounts and commissions) and received $6.0 million of additional net proceeds, before expenses.
Cash flows used for investing activities from continuing operations during the three months ended March 31, 2010 were $4.7 million as compared to $2.4 million used during the comparable period in 2009. The increase was primarily due to a $1.9 million increase in capital expenditures including the development of internal use software and a $497,000 settlement payment relating to the Penn Foster post-closing working capital adjustment. The increase was partially offset by a release of cash that was previously restricted under landlord contractual provisions. Under a contribution agreement entered into with National Labor College in April 2010, we expect to fund $10.8 million in contributions to a newly formed limited liability company throughout the remainder of 2010.
Cash flows provided by financing activities from continuing operations for the three months ended March 31, 2010 were $7.7 million as compared to $10.1 million used for financing activities for the three months ended March 31, 2009. Cash provided by financing activities in 2010 primarily consisted of $9.7 million in net proceeds from the issuance of Series E Preferred Stock, offset by a $1.0 million scheduled principal payment under our term loan credit facility and $922,000 of cash paid for debt issuance costs. Cash used for financing activities in 2009 primarily consisted of $10.0 million in repayments of our former credit facility term loan, $9.5 million of which represented a required non-recurring installment payment from the cash proceeds of the K-12 Services division sale.
Read the The complete Report
Princeton Review Inc. has a market cap of $95.2 million; its shares were traded at around $2.82 with a P/E ratio of 47 and P/S ratio of 0.7. REVU is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Corporate selling, general and administrative expenses increased by $1.2 million, or 34%, to $5.0 million from $3.7 million in the three months ended March 31, 2009, due primarily to $1.0 million of expenses associated with new strategic ventures.For the three months ended March 31, 2010, depreciation and amortization expense increased by $9.0 million to $10.6 million from $1.5 million in the three months ended March 31, 2009. The increase is primarily the result of $5.5 million of new depreciation and amortization on the fixed and intangible assets acquired with Penn Foster on December 7, 2009, coupled with $2.4 million of accelerated depreciation and amortization charges associated with actions taken in connection with the planned closing of our administrative office in New York City and to cease use of our legacy ERP system and utilize Penn Fosters ERP system prospectively. In addition, we changed the estimated useful lives for certain legacy fixed assets under a revised depreciation policy developed to standardize and conform legacy and Penn Foster depreciation methods and lives, resulting in additional depreciation and amortization of $1.1 million.
For the three months ended March 31, 2010, interest expense increased by $6.3 million, to $6.6 million from $329,000 in the three months ended March 31, 2009, primarily as a result of the financings undertaken to fund the Penn Foster acquisition on December 7, 2009. In April 2010, we repaid our bridge notes in full with proceeds from a public stock offering and as a result, expect to save approximately $1.6 million in quarterly interest charges.
Our primary sources of liquidity during the three months ended March 31, 2010 were cash and cash equivalents on hand, cash flow generated from operations and net proceeds from the issuance of additional Series E Preferred Stock. Our primary uses of cash during the three months ended March 31, 2010 were capital expenditures and scheduled repayments of our term loan credit facility. At March 31, 2010 we had $15.5 million of cash and cash equivalents and $9.7 million of unused borrowing capacity available under our new credit agreement. In addition, in September 2009 we filed a registration statement on Form S-3 with the SEC utilizing a shelf registration process whereby we may from time to time offer and sell common stock, preferred stock, warrants or units, or any combination of these securities, in one or more offerings up to a total amount of $75.0 million. On April 20, 2010, we sold 14.0 million shares of common stock through this shelf registration process for a public offering price of $42.0 million (before underwriting discounts and commissions) and received $39.9 million of net proceeds, before expenses. On April 28, 2010, we sold an additional 2.1 million shares of common stock upon the exercise of the underwriters over-allotment option for a public offering price of $6.3 million (before underwriting discounts and commissions) and received $6.0 million of additional net proceeds, before expenses.
Cash flows used for investing activities from continuing operations during the three months ended March 31, 2010 were $4.7 million as compared to $2.4 million used during the comparable period in 2009. The increase was primarily due to a $1.9 million increase in capital expenditures including the development of internal use software and a $497,000 settlement payment relating to the Penn Foster post-closing working capital adjustment. The increase was partially offset by a release of cash that was previously restricted under landlord contractual provisions. Under a contribution agreement entered into with National Labor College in April 2010, we expect to fund $10.8 million in contributions to a newly formed limited liability company throughout the remainder of 2010.
Cash flows provided by financing activities from continuing operations for the three months ended March 31, 2010 were $7.7 million as compared to $10.1 million used for financing activities for the three months ended March 31, 2009. Cash provided by financing activities in 2010 primarily consisted of $9.7 million in net proceeds from the issuance of Series E Preferred Stock, offset by a $1.0 million scheduled principal payment under our term loan credit facility and $922,000 of cash paid for debt issuance costs. Cash used for financing activities in 2009 primarily consisted of $10.0 million in repayments of our former credit facility term loan, $9.5 million of which represented a required non-recurring installment payment from the cash proceeds of the K-12 Services division sale.
Read the The complete Report
