Excelligence Learning Releases 2002 First Quarter Results; Company Continues Net Revenue Growth.Business Editors MONTEREY Monterey (mŏntərā`), city (1990 pop. 31,954), Monterey co., W Calif., a port on Monterey Bay; founded 1770, inc. 1850. It is a popular resort, the home of many artists and writers, and one of California's oldest cities. , Calif.--(BUSINESS WIRE)--May 8, 2002 Excelligence Learning Corporation (NASDAQSC: LRNS) formerly known as LearningStar Corp., a developer, manufacturer, and retailer of educational products to child care programs, preschools, schools, and consumers, today announced first quarter 2002 consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenue of $15.6 million, an increase of 11.8% over consolidated revenue of $13.9 million for the first quarter of 2001. For the quarter ended March 31, 2002, net loss on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis was $2.9 million, or $(0.35) per common share, compared with a net loss of $2.2 million, or $(0.40) per common share, for the same period in 2001. All financial information excludes the balances and results of SmarterKids.com prior to the combination of SmarterKids.com and Earlychildhood, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control on April 30, 2001. The quarter end results do not include the amortization of goodwill due to the implementation of a new accounting standard (see Note 3 in the attached financial information). During the first quarter of 2002, Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become loss for Excelligence Learning Corporation, which the Company believes is a meaningful supplemental measurement of its operating performance, was $2.1 million, or $(0.25) per common share, compared with an Adjusted EBITDA loss of $1.5 million, or $(0.27) per common share, in the first quarter of 2001. Adjusted EBITDA is calculated by presenting loss from operations and adding back depreciation and amortization, stock compensation and merger integration charges related to the combination. Please refer to Note 1 of the attached financial information for a description of the basis used for determining weighted average of common shares and a reconciliation of GAAP basis to Adjusted EBITDA results. As previously announced on May 3, 2002, the Company's name was changed from LearningStar Corp. to Excelligence Learning Corporation following stockholder approval of the name change at the Company's annual meeting held on May 1, 2002. In fiscal year 2001, the Company operated in three business segments, Educational Products, Fundraising
For the Early Childhood segment, 2002 first quarter net revenue was $13.7 million, a 14.9% increase over the $11.9 million generated in the first quarter of 2001. The revenue growth in the Early Childhood segment is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the expansion of its customer base, a more effective catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. distribution and strategic product marketing and pricing within the catalog. In addition, the inclusion of revenue from the former Consumer segment into the Early Childhood segment contributed $0.6 million to the increase. The Early Childhood segment's Adjusted EBITDA loss for the quarter was $1.0 million compared to Adjusted EBITDA loss of $0.5 million in the first quarter of 2001. For the Elementary School segment, 2002 first quarter net revenue was $1.9 million, a 6.7% decrease from the $2.0 million generated in the first quarter of 2001. This decrease was the result of lower sales for non-core, off-season products. The Elementary School segment's Adjusted EBITDA loss for the quarter was $1.1 million, compared to an Adjusted EBITDA loss of $1.0 million in the first quarter of 2001. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Chief Executive Officer, Ron Noun 1. Ron - a Chadic language spoken in northern Nigeria Bokkos, Daffo West Chadic - a group of Chadic languages spoken in northern Nigeria; Hausa in the most important member Elliott Elliott may refer to: possessing the best body in the whole world. like the hottest, sexiest body ever! the feeling of his skin kills me and sends me straight to heaven. , "Our first quarter results are consistent with the goals we have set for the year and lead us to believe we can reach our target figures for the year. We have begun to manage our expenses effectively, focusing on increasing revenues which will ultimately enable us to achieve our potential." Business Outlook The following forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. reflect Excelligence Learning Corporation's expectations as of May 8, 2002 and are subject to risks and uncertainties that could significantly affect anticipated results. Those risks and uncertainties include, but are not limited to, (1) changes in general economic and business conditions and in the e-retailing, or educational products industry in particular, (2) the impact of competition, including the development of competing proprietary products by the Company's competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , (3) the level of demand for the Company's products, (4) fluctuations in the value of the U.S. dollar and (5) the Company's inability to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. its product offerings and expand in new and existing markets. Additional information concerning potential risk factors affecting the Company's performance are described from time to time in the Company's reports filed with the Securities and Exchange Commission, including its annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December December: see month. 31, 2001. Actual results may differ materially from those expressed in these forward-looking statements. The Company intends to continue its practice of not updating forward-looking statements, except as required by applicable law. Second Quarter 2002 Expectations: Net revenues are expected to be between $20 and $23 million. Adjusted EBITDA is expected to be between a negative $500,000 and a positive $500,000. Full Year 2002 Expectations: Net revenues are expected to be between $90 and $105 million. Adjusted EBITDA is expected to be between $1.0 and $5.0 million. Adjusted EBITDA is calculated by adding back to operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (loss) depreciation and amortization, stock compensation, and merger integration charges. Conference Call Excelligence Learning Corporation will hold a conference call and Web cast to discuss its first quarter 2002 earnings. The conference call is scheduled for May 9, 2002 at 10:00 a.m. (ET), and the dial-in number is (800) 274-0251, event ID 697689. A replay of the call will be available after 1:00 p.m. (ET) and can be accessed until May 23, 2002 at the following replay number: (888) 203-1112, reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. 697689. About Excelligence Learning Corporation Excelligence Learning Corporation is a developer, manufacturer and retailer of educational products to child care programs, preschools, schools, and consumers. The company serves early childhood professionals, educators This is a list of educators. See also: Education, List of education topics.
General
v. 1. To give more force or effectiveness to something; strengthen. 2. To reward an individual, especially an experimental subject, with a reinforcer subsequent to a desired response or performance. 3. the connection between learning at school and at home. The company is comprised of two business divisions, Early Childhood and Elementary School. Through its Early Childhood division, the company develops, markets and sells educational products to early childhood professionals and parents for use in preschools and child care programs. Through its Elementary School division, the company sells school supplies and other products specifically targeted for use by children in the first through sixth grade to elementary schools, teachers and parents or community organizations to be resold as a fundraising device for the benefit of a particular school. Excelligence Learning Corporation is headquartered in Monterey, California For other uses, see Monterey (disambiguation). The City of Monterey is located on Monterey Bay along the Pacific coast in central California. As of 2005, the city population was 30,641. . THE PRIVATE SECURITIES LITIGATION REFORM ACT The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and OF 1995 PROVIDES A "SAFE HARBOR Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " FOR FORWARD-LOOKING STATEMENTS. CERTAIN INFORMATION INCLUDED IN THIS PRESS RELEASE (AS WELL AS INFORMATION INCLUDED IN ORAL STATEMENTS OR OTHER WRITTEN STATEMENTS MADE OR TO BE MADE BY EXCELLIGENCE) CONTAINS STATEMENTS THAT ARE FORWARD-LOOKING for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , INCLUDING SECOND QUARTER AND FULL YEAR 2002 EXPECTATIONS, FINANCIAL PROJECTIONS, SUCH AS PROJECTIONS OF REVENUE, STATEMENTS OF MANAGEMENT'S PLANS, OBJECTIVES OR EXPECTATIONS, INFORMATION REGARDING NEW PRODUCTS OR SERVICES, STATEMENTS OF BELIEF AND OTHER MATTERS RELATING TO relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc EXPECTATIONS AND STRATEGIES REGARDING THE FUTURE. SUCH FORWARD-LOOKING INFORMATION IS BASED ON OUR CURRENT EXPECTATIONS AND INVOLVES IMPORTANT RISKS AND UNCERTAINTIES THAT COULD SIGNIFICANTLY AFFECT ANTICIPATED RESULTS IN THE FUTURE AND, ACCORDINGLY, ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED IN ANY FORWARD-LOOKING STATEMENTS MADE BY EXCELLIGENCE: ADDITIONAL INFORMATION CONCERNING POTENTIAL RISK FACTORS AFFECTING THE COMPANY'S PERFORMANCE, SUCH AS THOSE DESCRIBED IN THE BUSINESS OUTLOOK SECTION OF THIS RELEASE AS WELL AS THOSE DESCRIBED FROM TIME TO TIME IN THE COMPANY'S REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 2001. SUCH FILINGS MAY BE VIEWED FREE OF CHARGE AT THE FOLLOWING WEBSITE: WWW WWW or W3: see World Wide Web. (World Wide Web) The common host name for a Web server. The "www-dot" prefix on Web addresses is widely used to provide a recognizable way of identifying a Web site. .SEC.GOV.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - in thousands except shares and per share data)
Three Months Ended March 31,
2002 2001
Revenues $ 15,574 $ 13,929
Cost of goods sold 9,952 8,331
Gross Profit 5,621 5,598
Operating expenses:
Selling, general and administrative 8,371 7,598
Amortization of goodwill and other
intangible assets (Note 3) 72 317
Loss from operations (2,822) (2,317)
Net interest and other expense 91 290
Net loss before income taxes (2,912) (2,607)
Income tax benefit -- 376
Net loss $ (2,912) $ (2,231)
Net Loss Per Share Calculation:
Net loss per share - basic and diluted $ (0.35) $ --
Pro Forma C Corporation Disclosure:
Loss before income taxes -- $ (2,607)
Pro forma income tax benefit -- 924
Pro forma net loss -- $ (1,683)
Pro forma net loss per share
- basic and diluted -- $ (0.30)
Weighted average shares used in
computing net loss per share
- basic and diluted 8,364,260 --
Weighted average shares used in
computing pro forma net loss per share
- basic and diluted -- 5,576,067
Segment Information and Reconciliation of loss from operations to
Adjusted EBITDA loss (Notes 1 and 2) (unaudited - in thousands):
Three Months Ended March 31,
Early Childhood Elementary School Consolidated
2002 2001 2002 2001 2002 2001
Net Revenues $13,722 $11,945 $1,852 $1,984 $15,574 $13,929
Loss from
operations $(1,629) $(1,103) $(1,193) $(1,214) $(2,822) $(2,317)
Depreciation
and
amortization 285 428 94 229 379 657
EBITDA loss (1,344) (675) (1,099) (985) (2,443) (1,660)
Stock
Compensation 143 138 -- -- 143 138
Merger
integration
charges 226 -- -- -- 226 --
Adjusted
EBITDA loss $(975) $(537) $(1,099) $(985) $(2,074) $(1,522)
Basic and diluted
Adjusted EBITDA
loss per common
share (Notes 1 and 2) $(0.25) $(0.27)
Note 1: Per share data reflects the conversion of all
Earlychildhood membership interests into common shares of Excelligence
Learning Corporation in conjunction with the combination of
Earlychildhood, LLC and SmarterKids.com for all periods presented. For
periods after the combination with SmarterKids.com, shares issued to
SmarterKids.com stockholders are also considered as outstanding on a
weighted average basis.
Note 2: Excelligence Learning Corporation's profit measure is
Adjusted EBITDA, which is represented by loss from operations and
adding back depreciation and amortization, stock compensation, and
merger integration charges.
Note 3: Pursuant to Excelligence Learning Corporation's adoption
of SFAS No. 142 "Goodwill and Other Intangible Assets," the Company
intends to perform a transitional impairment test for all recorded
goodwill by June 30, 2002. Going forward, the annual impairment test
required by SFAS No. 142 will be performed in the 4th quarter. The
following table reflects the consolidated results of operations
adjusted as though the adoption of Statement No. 142 occurred at the
beginning of the three month period ended March 31, 2001 (in
thousands, except per share amounts):
Three months ended
March 31,
2002 2001
Net loss:
As Reported $(2,912) $(2,231)
Goodwill amortization - net of tax effect -- 125
Adjusted net loss $(2,912) $(2,106)
Net Loss Per Share Basic and Diluted:
As Reported $ (0.35) $ (0.40)
Goodwill amortization - net of tax effect -- 0.02
Adjusted basic and diluted net loss per share $ (0.35) $ (0.38)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited - in thousands except par value and share amounts)
March 31, December 31,
2002 2001
ASSETS
Current assets:
Cash and cash equivalents $ -- $ 1,623
Accounts receivable, net 4,789 5,284
Inventories 23,424 19,118
Prepaid expenses and other current assets 2,929 3,161
Total current assets 31,142 29,186
Receivable from member 139 139
Property and equipment, net 4,379 4,368
Deferred income taxes 3,774 3,774
Other assets 1,124 1,112
Goodwill, net 4,701 4,701
Other intangible assets, net 1,300 1,372
Total assets $ 46,559 $ 44,652
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Bank overdraft $ 450 $ --
Short-term debt 6,423 5,589
Accounts payable 9,120 5,015
Accrued expenses 5,066 5,905
Other liabilities 333 193
Total current liabilities 21,392 16,702
Deferred income taxes 362 362
Notes payable - 14
Total liabilities 21,754 17,078
Common stock, $0.01 par value; 11,250,000
shares authorized; 8,364,260 issued and
outstanding at March 31, 2002 and
December 31, 2001 84 84
Additional paid-in capital 62,194 62,194
Deferred stock compensation (1,911) (2,054)
Accumulated deficit (35,562) (32,650)
Total stockholders' equity 24,805 27,574
Total liabilities and
stockholders' equity $ 46,559 $ 44,652
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