Cengage sees $300.4 million of adjusted EBITDA in first fiscal quarter

By Caroline Salls

Pittsburgh, Oct. 21 - Cengage Learning, Inc. reported $300.4 million of adjusted EBITDA for its fiscal first quarter on $612.6 million in total revenue, according to a company release.

Those figures showed improvement over the $233.1 million of adjusted EBITDA posted for the fiscal first quarter of 2012 on $538.3 million in total revenue.

The company said the quarterly revenue growth was driven by domestic revenue, which grew by $77.9 million, or 16.2% over the first fiscal quarter of 2012, as a result of higher learning sales.

Cengage said domestic learning revenue grew by 19.4% because of increased gross sales, primarily in higher education, partially offset by a higher sales returns provision and deferred sales, both associated with the increase in gross sales.

Meanwhile, the company said the increase in adjusted EBITDA stemmed from the flow through on higher revenue and a favorable gross margin rate.

September results

In addition, Cengage reported $49.7 million of adjusted EBITDA for September on $132.5 million in total revenue.

The September results showed a decline from the $66 million of adjusted EBITDA posted for September 2012 on $150.7 million in total revenue.

According to the release, domestic revenue declined by $13.7 million in September, and international revenue declined by $4.5 million.

The company said the decline in September adjusted EBITDA resulted from the flow-through on lower sales, combined with an increase in selling, general and administrative expenses.

Cengage, a Stamford, Conn.-based provider of teaching, learning and research services for the academic, professional and library markets, filed for bankruptcy on July 2 in the U.S. Bankruptcy Court for the Eastern District of New York. The Chapter 11 case number is 13-44106.

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