CAMBIUM LEARNING GROUP, INC. - 10-Q filing on 2015-08-13

Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2015

Effect of Reclassifications on Prior Period Disclosures

The following table reports the effect of these reclassifications on prior period disclosures:

	Three Months Ended June 30, 2014
(in thousands)	Learning A-Z		Voyager Sopris Learning		ExploreLearning		Other			Consolidated
Operating expense	$	36	$	170	$	—	$	(206	)	$	—
Expenditures for property, equipment, software and pre-publication costs		406		89		66		(561	)		—

	Six Months Ended June 30, 2014
(in thousands)	Learning A-Z		Voyager Sopris Learning		ExploreLearning		Other			Consolidated
Operating expense	$	69	$	343	$	—	$	(412	)	$	—
Expenditures for property, equipment, software and pre-publication costs		627		208		258		(1,093	)		—

Revenue, Operating Expenses and Income (Loss) from Operations

The following tables present the net revenues, operating expenses, income (loss) from operations, and capital expenditures which are used by the Company’s chief operating decision maker to measure the segments’ operating performance. The Company does not track assets directly by segment and the chief operating decision maker does not use assets to measure a segment’s operating performance, and therefore this information is not presented.

	Three Months Ended June 30, 2015
(in thousands)	Learning A-Z		Voyager Sopris Learning		ExploreLearning		Other			Consolidated
Net revenues	$	13,262	$	19,265	$	4,927	$	—		$	37,454
Cost of revenues		404		7,209		664		—			8,277
Amortization expense		—		—		—		4,275			4,275
Total cost of revenues		404		7,209		664		4,275			12,552
Other operating expenses		5,664		6,616		2,366		3,698			18,344
Depreciation and amortization expense		—		—		—		1,000			1,000
Total costs and expenses		6,068		13,825		3,030		8,973			31,896

Income (loss) before interest, other income (expense) and income taxes		7,194		5,440		1,897		(8,973	)		5,558

Net interest expense		—		—		—		(3,626	)		(3,626	)
Other income, net		—		—		—		260			260
Income tax expense		—		—		—		(186	)		(186	)
Segment net income (loss)	$	7,194	$	5,440	$	1,897	$	(12,525	)	$	2,006
Expenditures for property, equipment, software and pre-publication costs	$	1,885	$	2,389	$	634	$	141		$	5,049

	Three Months Ended June 30, 2014
(in thousands)	Learning A-Z		Voyager Sopris Learning		ExploreLearning		Other			Consolidated
Net revenues	$	10,549	$	21,147	$	4,547	$	—		$	36,243
Cost of revenues		472		8,745		713		—			9,930
Amortization expense		—		—		—		4,438			4,438
Total cost of revenues		472		8,745		713		4,438			14,368
Other operating expenses		4,327		7,424		2,512		3,279			17,542
Depreciation and amortization expense		—		—		—		1,036			1,036
Total costs and expenses		4,799		16,169		3,225		8,753			32,946

Income (loss) before interest, other income (expense) and income taxes		5,750		4,978		1,322		(8,753	)		3,297

Net interest expense		—		—		—		(4,420	)		(4,420	)
Loss on extinguishment of debt		—		—		—		(357	)		(357	)
Other income, net		—		—		—		215			215
Income tax expense		—		—		—		(23	)		(23	)
Segment net income (loss)	$	5,750	$	4,978	$	1,322	$	(13,338	)	$	(1,288	)
Expenditures for property, equipment, software and pre-publication costs	$	1,698	$	1,998	$	457	$	221		$	4,374

	Six Months Ended June 30, 2015
(in thousands)	Learning A-Z		Voyager Sopris Learning		ExploreLearning		Other			Consolidated
Net revenues	$	26,197	$	33,011	$	9,717	$	—		$	68,925
Cost of revenues		870		12,951		1,342		—			15,163
Amortization expense		—		—		—		8,278			8,278
Total cost of revenues		870		12,951		1,342		8,278			23,441
Other operating expenses		11,260		13,264		4,963		7,367			36,854
Depreciation and amortization expense		—		—		—		1,993			1,993
Total costs and expenses		12,130		26,215		6,305		17,638			62,288

Income (loss) before interest, other income (expense) and income taxes		14,067		6,796		3,412		(17,638	)		6,637

Net interest expense		—		—		—		(7,300	)		(7,300	)
Other income, net		—		—		—		475			475
Income tax expense		—		—		—		(304	)		(304	)
Segment net income (loss)	$	14,067	$	6,796	$	3,412	$	(24,767	)	$	(492	)
Expenditures for property, equipment, software and pre-publication costs	$	3,697	$	4,674	$	1,248	$	213		$	9,832

	Six Months Ended June 30, 2014
(in thousands)	Learning A-Z		Voyager Sopris Learning		ExploreLearning		Other			Consolidated
Net revenues	$	20,730	$	37,572	$	9,021	$	—		$	67,323
Cost of revenues		894		16,594		1,453		—			18,941
Amortization expense		—		—		—		8,518			8,518
Total cost of revenues		894		16,594		1,453		8,518			27,459
Other operating expenses		8,764		15,396		5,216		6,871			36,247
Depreciation and amortization expense		—		—		—		2,100			2,100
Total costs and expenses		9,658		31,990		6,669		17,489			65,806

Income (loss) before interest, other income (expense) and income taxes		11,072		5,582		2,352		(17,489	)		1,517

Net interest expense		—		—		—		(9,158	)		(9,158	)
Loss on extinguishment of debt		—		—		—		(570	)		(570	)
Other income, net		—		—		—		430			430
Income tax expense		—		—		—		(94	)		(94	)
Segment net income (loss)	$	11,072	$	5,582	$	2,352	$	(26,881	)	$	(7,875	)
Expenditures for property, equipment, software and pre-publication costs	$	3,363	$	3,732	$	990	$	275		$	8,360