Key Developments For The Princeton Review, Inc.
The Princeton Review, Inc. (REVU.O) (Consolidated Issue listed on NASDAQ Global Market)
The Princeton Review, Inc. Agrees To Acquire Penn Foster Education Group, Inc.
The Princeton Review, Inc. announced that it has entered into a definitive agreement to acquire Penn Foster Education Group, Inc., one of online career education company in the United States. The purchase price is $170 million in cash, subject to post closing adjustments. Under the terms of the agreement, Penn Foster will become a wholly owned subsidiary of The Princeton Review. It is expected to operate as a standalone unit of the combined company, using its existing brands and under the leadership of the current management team, maintaining its headquarters in Scranton, Pennsylvania. The Princeton Review has obtained financing commitments for the deal, comprised of approximately $155 million of debt financing and $30 million of equity financing led by Bain Capital Venture Partners and Falcon Investment Advisors, LLC, and expects to complete the transaction before the end of the year.
The Princeton Review, Inc. Issues FY 2009 Outlook Below Analysts' Estimates-Conference Call
The Princeton Review, Inc. announced that for fiscal 2009, it expect revenues to increase in the range of 16% to 20% of fiscal 2008. Excluding restructuring expenses we expect to generate EBITDA in the range of 10% to 13% on fiscal 2009 revenues. The Company reported revenue of $138.77 million in fiscal 2008. According to Reuters Estimates, analysts on an average were expecting the Company to report EBITDA of $24 million on revenue of $171 million for fiscal 2009.
The Princeton Review, Inc. Completes Sale of K-12 Services Division
The Princeton Review, Inc. announced the completion of its previously announced sale of the assets of its K-12 Services Division to CORE Education and Consulting Solutions, Inc., a subsidiary of CORE Projects & Technologies Limited, an education technology company based in India. As consideration for the sale, The Princeton Review received $9.5 million in cash, which will be used to reduce debt. The sale agreement also includes a working capital adjustment approximately six months following the closing. The Princeton Review announced in November 2008 that it planned to divest the K-12 Services business.
Core Projects & Technologies Ltd. Announces Acquisition Of K-12 Division Of The Princeton Review Inc.
Core Projects & Technologies Ltd. announced the acquisition of the K-12 Division of The Princeton Review Inc., a NASDAQ listed Education Company. The acquisition will involve an investment of about USD 20 million and will be completed through its wholly owned subsidiary CORE Education & Consulting Solutions Inc., USA (CECS). The acquisition is expected to be funded out of debt being raised by CECS.
The Princeton Review, Inc. Issues FY 2008 Outlook Below Analysts' Estimates; Comments On 2009 EBITDA Outlook-Conference Call
The Princeton Review, Inc. announced that for fiscal 2008, it expects revenue from continuing operations to increase approximately 23% to 26% and EBITDA to be in a range of 5% to 7%. The Company reported revenue of $146.61million and EBITDA of $(2.24) million in fiscal 2007. The current year EBITDA projections include approximately $400,000 of overhead previously allocated to the K-12 division under general accepted accounting principles that cannot be allocated to discontinued operations, that must be allocated to discontinued operations. The Company expects to achieve the longer term goals of delivering 12% to 15% EBITDA as early as next year. According to Reuters Estimates, analysts were expecting the Company to report revenue of $153 million and EBITDA of $12 million for fiscal 2008; EBITDA of $25 million for fiscal 2009.
