PLATO Learning, Inc. Reports Fourth Quarter and Fiscal Year 2005 Results; Quarter Includes Restructuring and Asset Impairment Charges of $16.1 Million.MINNEAPOLIS Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. -- PLATO Learning, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :TUTR), a leading provider of K-adult computer-based and e-learning (Electronic-LEARNING) An umbrella term for providing computer instruction (courseware) online over the public Internet, private distance learning networks or inhouse via an intranet. See CBT. solutions, today announced revenues for its fourth quarter ended October October: see month. 31, 2005, totaling $33.7 million. This is an $8.7 million or a 21% decrease from the $42.4 million reported for the comparable period of fiscal 2004. The revenue decline was in line with expectations announced on September September: see month. 1, 2005, and was due to low sales productivity, caused by changes in sales processes A sales process is a systematic approach for performing product or service sales. The reasons for having a sales process include seller and buyer risk management, achieving standardized customer interaction in sales and scalable revenue generation. , procedures and organization during the year, and by attrition Attrition The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry. Notes: of sales personnel. Net loss for the fourth quarter of 2005 was $(13.9) million, or $(0.59) per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, as compared to net earnings of $2.2 million, or $0.09 per diluted share, for the same period of 2004. Net earnings, excluding restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and other charges and asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges totaling $16.1 million, were $2.2 million, or $0.09 per diluted share (a non-GAAP measure), for the fourth quarter of 2005. Gross margin was 23.1% for the fourth quarter versus 62.6% in the fourth quarter of 2004. Fourth quarter 2005 gross profit includes $13.2 million of asset impairment charges of certain capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. product development and purchased technology assets. These charges were primarily due to changes in the Company's product strategy and to lower expected future revenues for some purchased technology assets. Gross margin, excluding these charges (a non-GAAP measure), gross margin was 62.3%, similar to last year's fourth quarter. Lower subscription gross margins, resulting from additional, non-recurring royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. fees incurred in the quarter and from lower subscription revenue, were offset by higher service gross margins generated by higher service revenues and service cost reductions. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , excluding restructuring and other charges of $2.9 million, declined 18.3% for the quarter from 2004. The decrease resulted from cost reduction actions initiated throughout 2005, realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of service resources from sales support to billable activities, and reduced variable costs associated with reduced revenue. Restructuring and other charges for the quarter primarily include severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs of $2.2 million for workforce reductions, and facility and other costs of $0.7 million. Charges of $1.1 million were incurred for actions taken in the Company's U.K. operation and $1.8 million were incurred from actions in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . Revenues for the year ended October 31, 2005, were $121.8 million, a 14% decrease from 2004. Net loss for the year was $(27.7) million, or $(1.18) per diluted share, compared to a net loss of $(1.8) million, or $(0.08) per diluted share in 2004. Net loss, excluding restructuring and other charges and asset impairment charges totaling $19.2 million, was $(8.5) million, or $(0.36) per diluted share (a non-GAAP measure) for the year ended October 31, 2005. Restructuring and other charges of $6.0 million for the year primarily include severance payments, facility closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, , and amounts paid to terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: executives under employment agreements. Mike Morache, PLATO Learning President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "This has been a turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. year for PLATO Learning. Many of the systems and processes needed to sustain a growing profitable business had not been previously established. We worked diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d throughout 2005 to put the essential processes in place and to create plans for future success. Now that this is accomplished, we look forward to moving aggressively to grow our leadership position in the education market." "In 2005, we made some difficult decisions. Our work force was reduced and in some areas is being replaced with employees well suited for the new business direction, especially in our sales and development organizations. A thorough assessment of our products and development projects was completed and a new roadmap A roadmap may refer to:
The Company highlighted additional key financial information for the fourth quarter of 2005: --Earnings Before Interest Taxes Depreciation and Amortization (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 ), excluding restructuring and other charges and asset impairment charges (a non-GAAP measure), were $7.0 million for the quarter, compared to $8.3 million for the same period in 2004. --Cash and cash equivalents and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has were $47.1 million at October 31, 2005, compared to $38.9 million at July July: see month. 31, 2005, and $45.5 million at October 31, 2004. --Deferred revenue was $40.4 million at October 31, 2005, versus $41.9 million at July 31, 2005, and $51.6 million at October 31, 2004. Fiscal year 2006 financial guidance: The Company expects increased order growth in 2006 of 15% to 20% over 2005, as a result of increased sales productivity and new product introduction. Revenue growth, however, is not expected to be greater than 4% over 2005, due to several factors. Much of the order growth is expected to be from sales of new products introduced later in 2006 and from sales of subscription products that are recognized as revenue over time rather than up front. International revenues will decline due to the downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing of the Company's U.K. operation. In addition, the Company has decided to participate in the Supplemental Educational Services market by providing its products to other service providers, rather than providing the services directly, which will reduce service revenues. Total gross margin for the year is expected to be between 62% and 64%, depending on product mix, as cost reductions and pricing controls established during 2005 will be in place for the entire year in 2006, and due to lower amortization expense as a result of 2005 asset impairment charges. Operating expenses, excluding restructuring and other charges, should decline; however much of the decline will be offset by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.0 million of stock-based compensation expense, as the Company adopts FASB Statement FASB Statement A standard set by the Financial Accounting Standards Board regarding a financial accounting and reporting method. Essentially, FASB statements determine the acceptable accounting practices that Certified Public Accountants use in reporting No. 123(R). Restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , resulting from actions taken in 2005 that were not accruable at that time, are expected to be less than $1.0 million. The tax provision is expected to be $600,000 higher than the expected amount calculated using a 40% tax rate, due to tax deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). goodwill from a previous acquisition that creates a deferred tax liability that cannot be offset against deferred tax assets. The Company expects to be profitable for the full year 2006. Cash and investments are expected to decline, as investments in product development will be increased to accelerate release of new products. Spending on capitalized product development projects is expected to range from $19.0 to $23.0 million, depending on the timing of those projects. Use of Non-GAAP Financial Measures The non-GAAP financial measures used in this press release exclude the impact of 2005 restructuring and other charges and asset impairment charges from our operating results, as well as present EBITDA. These non-GAAP financial measures are not prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . We view these non-GAAP financial measures to be helpful in assessing the Company's ongoing operating results. In addition, these non-GAAP financial measures facilitate our internal comparisons to historical operating results and comparisons to competitors' operating results. We include these non-GAAP financial measures in our earnings announcement because we believe they are useful to investors in allowing for greater transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. related to supplemental information we use in our financial and operational analysis. Investors are encouraged to review the reconciliations of the non-GAAP financial measures used in this press release to their most directly comparable GAAP financial measures as provided with the financial statements attached to this press release. Quarterly Conference Call A conference call to discuss this announcement is scheduled for today at 3:45 p.m. (CT). The dial-in number for this call is 1.800.230.1085 in the U.S. and Canada and 1.612.288.0318 for international calls. Please call 10 minutes prior to the start of the call and inform the operator you are participating in PLATO Learning's quarterly earnings call. Should you be unable to attend the live conference call, a recording will be available to you from 7:15 p.m. (CT) on December December: see month. 13, 2005, through midnight on December 20, 2005. To access the recording, call 1.800.475.6701 in the U.S. and Canada and 1.320.365.3844 internationally. At the prompt, enter pass code number 800449. Additionally, investors have the opportunity to listen to the conference call over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the through PLATO Learning's web site at http://www.plato.com/aboutus/investor_calls.asp. About PLATO Learning PLATO Learning, Inc. is a leading provider of computer-based and e-learning instruction for kindergarten kindergarten [Ger.,=garden of children], system of preschool education. Friedrich Froebel designed (1837) the kindergarten to provide an educational situation less formal than that of the elementary school but one in which children's creative play instincts would be through adult learners Adult learner is a term used to describe any person socially accepted as an adult who is in a learning process, whether it is formal education, informal learning, or corporate-sponsored learning. , offering curricula in reading, writing, math, science, social studies, and life and job skills. The Company also offers innovative online assessment and accountability The traceability of actions performed on a system to a specific system entity (user, process, device). For example, the use of unique user identification and authentication supports accountability; the use of shared user IDs and passwords destroys accountability. solutions and standards-based professional development services. With over 6,000 hours of objective-based, problem-solving problem-solving n → resolución f de problemas; problem-solving skills → técnicas de resolución de problemas problem-solving n → courseware Educational software. See CBT and OpenCourseWare. (application) courseware - Programs and data used in Computer-Based Training. , plus assessment, alignment Alignment is the adjustment of an object in relation with other objects, or a static orientation of some object or set of objects in relation to others.
PLATO Learning, Inc. is a publicly held company traded as TUTR on the NASDAQ. PLATO Learning educational software delivered via networks, CD-ROM CD-ROM: see compact disc. CD-ROM in full compact disc read-only memory Type of computer storage medium that is read optically (e.g., by a laser). , the Internet, and private intranets, is primarily marketed to K-12 schools and colleges. The Company also sells to job training programs, correctional institutions Noun 1. correctional institution - a penal institution maintained by the government detention camp, detention home, detention house, house of detention - an institution where juvenile offenders can be held temporarily (usually under the supervision of a juvenile , military education programs, corporations, and individuals. PLATO Learning is headquartered at 10801 Nesbitt Nesbitt is a family and place name. People:
This announcement includes 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. . PLATO Learning has based these forward-looking statements on its current expectations and projections about future events. Although PLATO Learning believes that its assumptions made in connection with the forward-looking statements are reasonable, no assurances can be given that its assumptions and expectations will prove to have been correct. These forward-looking statements are subject to various risks, uncertainties and assumptions. PLATO Learning undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward looking statements made are subject to the risks and uncertainties as those described in the Company's 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 year ended October 31, 2004. Actual results may differ materially from anticipated results. (R) PLATO is a registered trademark of PLATO Learning, Inc. PLATO Learning is a trademark of PLATO Learning, Inc.
PLATO Learning, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share amounts)
----------------------------------------------------------------------
Three Months Ended Twelve Months Ended
October 31, October 31,
------------------- -------------------
2005 2004 2005 2004
--------- --------- --------- ---------
Revenues:
License fees $15,728 $24,385 $57,803 $80,078
Subscriptions 4,547 5,073 17,997 20,718
Services 11,798 9,093 38,342 30,030
Other 1,608 3,869 7,662 10,975
--------- --------- --------- ---------
Total revenues 33,681 42,420 121,804 141,801
--------- --------- --------- ---------
Cost of revenues:
License fees 3,051 5,107 12,353 15,060
Subscriptions 3,341 1,984 9,576 7,506
Services 4,683 4,846 21,809 17,373
Other 1,631 3,916 7,876 10,614
Impairment charges 13,194 - 13,194 -
--------- --------- --------- ---------
Total cost of revenues 25,900 15,853 64,808 50,553
--------- --------- --------- ---------
Gross profit 7,781 26,567 56,996 91,248
--------- --------- --------- ---------
Operating expenses:
Sales and marketing 11,740 15,711 49,996 61,586
General and administrative 4,227 5,022 18,420 19,469
Product development 1,726 1,131 5,646 5,973
Amortization of intangibles 1,075 1,111 4,322 4,308
Restructuring and other
charges 2,904 - 6,025 -
--------- --------- --------- ---------
Total operating expenses 21,672 22,975 84,409 91,336
--------- --------- --------- ---------
Operating income (loss) (13,891) 3,592 (27,413) (88)
Interest income 395 134 1,026 432
Interest expense (1) (22) (90) (122)
Other income (expense), net 12 89 (350) (20)
--------- --------- --------- ---------
Earnings (loss) before income
taxes (13,485) 3,793 (26,827) 202
Income tax expense 410 1,580 860 2,030
--------- --------- --------- ---------
Net earnings (loss) $(13,895) $2,213 $(27,687) $(1,828)
========= ========= ========= =========
Earnings (loss) per share:
Basic $(0.59) $0.10 $(1.18) $(0.08)
========= ========= ========= =========
Diluted $(0.59) $0.09 $(1.18) $(0.08)
========= ========= ========= =========
Weighted average common shares
outstanding:
Basic 23,550 23,050 23,381 22,637
========= ========= ========= =========
Diluted 23,550 23,468 23,381 22,637
========= ========= ========= =========
PLATO Learning, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except per share amounts)
----------------------------------------------------------------------
October 31, October 31,
2005 2004
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $46,901 $29,235
Marketable securities 213 12,615
Accounts receivable, net 22,768 41,852
Inventories, net 4,026 2,683
Other current assets 6,351 6,777
----------- -----------
Total current assets 80,259 93,162
Long-term marketable securities - 3,608
Equipment and leasehold improvements, net 5,711 7,946
Product development costs, net 14,753 17,116
Goodwill 71,865 71,267
Identified intangible assets, net 22,505 39,432
Other assets 2,235 213
----------- -----------
Total assets $197,328 $232,744
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,938 $5,196
Accrued employee salaries and benefits 7,772 8,772
Accrued liabilities 8,933 6,383
Deferred revenue 35,218 43,042
----------- -----------
Total current liabilities 54,861 63,393
Long-term deferred revenue 5,213 8,533
Deferred income taxes 1,931 1,322
Other liabilities 496 46
----------- -----------
Total liabilities 62,501 73,294
----------- -----------
Stockholders' equity:
Common stock 236 231
Additional paid in capital 166,295 162,956
Treasury stock at cost (205) (205)
Accumulated deficit (30,537) (2,850)
Accumulated other comprehensive loss (962) (682)
----------- -----------
Total stockholders' equity 134,827 159,450
----------- -----------
Total liabilities and stockholders'
equity $197,328 $232,744
=========== ===========
PLATO Learning, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
----------------------------------------------------------------------
Twelve Months Ended
October 31,
-------------------
2005 2004
---------- --------
Operating activities:
Net loss $(27,687) $(1,828)
---------- --------
Adjustments to reconcile net loss to net cash
provided by operating activities:
Realization of acquired deferred tax assets - 1,422
Deferred income taxes 628 608
Impairment charges 13,194 -
Amortization of capitalized product development
costs 7,272 6,941
Amortization of identified intangible and other
noncurrent assets 8,352 7,648
Depreciation and amortization of equipment and
leasehold improvements 3,393 3,358
Provision for doubtful accounts 1,245 2,305
Stock-based compensation 39 217
Loss on disposal of equipment 289 53
Changes in assets and liabilities, net of effects
of acquisitions:
Accounts receivable 17,839 4,786
Inventories (1,343) (22)
Other current and long-term assets (1,846) (1,986)
Accounts payable (2,258) (164)
Other current and long-term liabilities 1,863 (4,183)
Deferred revenue (11,144) 7,838
---------- --------
Total adjustments 37,523 28,821
---------- --------
Net cash provided by operating activities 9,836 26,993
---------- --------
Investing activities:
Acquisitions, net of cash acquired - 2,460
Capitalized product development costs (9,440) (9,238)
Purchases of equipment and leasehold improvements (1,400) (3,615)
Purchases of marketable securities (9,474) (13,176)
Sales and maturities of marketable securities 25,559 741
---------- --------
Net cash provided by (used in) investing
activities 5,245 (22,828)
---------- --------
Financing activities:
Net proceeds from issuance of common stock 2,764 1,941
Repurchase of common stock - (205)
Repayments of capital lease obligations (225) (239)
---------- --------
Net cash provided by financing activities 2,539 1,497
---------- --------
Effect of currency exchange rate changes on cash
and cash equivalents 46 (261)
---------- --------
Net increase in cash and cash equivalents 17,666 5,401
Cash and cash equivalents at beginning of period 29,235 23,834
---------- --------
Cash and cash equivalents at end of period $46,901 $29,235
========== ========
PLATO Learning, Inc.
Supplemental Financial Information
(Unaudited)
----------------------------------------------------------------------
Revenues Three Months Ended Twelve Months Ended
($000's) October 31, October 31,
------------------- -------------------
% %
2005 2004 Change 2005 2004 Change
--------- --------- ------ --------- --------- ------
License fees $15,728 $24,385 -36% $57,803 $80,078 -28%
Subscriptions 4,547 5,073 -10% 17,997 20,718 -13%
Services 11,798 9,093 30% 38,342 30,030 28%
Other 1,608 3,869 -58% 7,662 10,975 -30%
--------- --------- --------- ---------
$33,681 $42,420 -21% $121,804 $141,801 -14%
========= ========= ========= =========
----------------------------------------------------------------------
Operating Expenses Three Months Ended October 31,
---------------------------------
($000's) 2005 2004
---------------- ----------------
% of % of
Revenue Revenue % Change
------- ------- --------
Total operating expenses $21,672 64% $22,975 54% -6%
Restructuring and other
charges (2,904) -
-------- --------
Operating expenses before
restructuring and other
charges $18,768 56% $22,975 54% -18%
======== ========
Twelve Months Ended October 31,
---------------------------------
2005 2004
---------------- ----------------
% of % of
Revenue Revenue % Change
------- ------- --------
Total operating expenses $84,409 69% $91,336 64% -8%
Restructuring and other
charges (6,025) -
-------- --------
Operating expenses before
restructuring and other
charges $78,384 64% $91,336 64% -14%
======== ========
----------------------------------------------------------------------
Reconciliation of GAAP Earnings
(Loss) Per Share to Non-GAAP
Earnings (Loss) Per Share Before Three Months Twelve Months
Impairment, Restructuring and Ended Ended
Other Charges October 31, October 31,
----------------- ------------------
($000's, except per share
amounts) 2005 2004 2005 2004
--------- ------- --------- --------
Net earnings (loss) $(13,895) $2,213 $(27,687) $(1,828)
Add back impairment charges 13,194 - 13,194 -
Add back restructuring and other
charges 2,904 - 6,025 -
--------- ------- --------- --------
Net earnings (loss) before
impairment, restructuring and
other charges $2,203 $2,213 $(8,468) $(1,828)
========= ======= ========= ========
Earnings (loss) per share before
impairment, restructuring and
other charges -
Basic $0.09 $0.10 $(0.36) $(0.08)
========= ======= ========= ========
Diluted $0.09 $0.09 $(0.36) $(0.08)
========= ======= ========= ========
Weighted average common shares
outstanding -
Basic 23,550 23,050 23,381 22,637
========= ======= ========= ========
Diluted 23,687 23,468 23,381 22,637
========= ======= ========= ========
----------------------------------------------------------------------
PLATO Learning, Inc.
Supplemental Financial Information
(Unaudited)
----------------------------------------------------------------------
Order Size Three Months Ended October 31,
-----------------------------------
($000's) 2005 2004 % Change
----------------- ----------------- ----------------
Number Value Number Value Number Value
-------- -------- -------- -------- -------- -------
$100 to $249 38 $5,598 28 $4,335 36% 29%
$250 or greater 8 3,692 20 15,470 -60% -76%
-------- -------- -------- --------
46 $9,290 48 $19,805 -4% -53%
======== ======== ======== ========
Twelve Months Ended October 31,
-----------------------------------
2005 2004 % Change
----------------- ----------------- ----------------
Number Value Number Value Number Value
-------- -------- -------- -------- -------- -------
$100 to $249 115 $17,518 150 $22,304 -23% -21%
$250 or greater 39 18,385 63 45,013 -38% -59%
-------- -------- -------- --------
154 $35,903 213 $67,317 -28% -47%
======== ======== ======== ========
----------------------------------------------------------------------
Reconciliation of GAAP Net Earnings (Loss) to Non-GAAP
EBITDA (excluding impairment, restructuring and other charges)
($000's)
Twelve Months
Ended
October 31,
Q4-2005 Q3-2005 Q2-2005 Q1-2005 2005
--------- -------- -------- --------- ------------
Net earnings (loss) $(13,895) $(311) $(2,954) $(10,527) $(27,687)
Income taxes 410 150 150 150 860
Interest expense 1 46 28 15 90
Depreciation and
amortization 4,374 5,074 4,585 4,984 19,017
Impairment charges 13,194 - - - 13,194
Restructuring and
other charges 2,904 200 632 2,289 6,025
--------- -------- -------- --------- ------------
$6,988 $5,159 $2,441 $(3,089) $11,499
========= ======== ======== ========= ============
Twelve Months
Ended
October 31,
Q4-2004 Q3-2004 Q2-2004 Q1-2004 2004
--------- -------- -------- --------- ------------
Net earnings (loss) $2,213 $6,724 $(3,230) $(7,535) $(1,828)
Income taxes 1,580 150 150 150 2,030
Interest expense 22 28 37 35 122
Depreciation and
amortization 4,481 4,388 4,623 4,455 17,947
Impairment charges - - - - -
Restructuring and
other charges - - - - -
--------- -------- -------- --------- ------------
$8,296 $11,290 $1,580 $(2,895) $18,271
========= ======== ======== ========= ============
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