Press Release: Houghton Mifflin Harcourt Reports Significant Revenue Growth in Q2 Earnings Report
BOSTON, Mass. - August 14, 2014 - Global education leader Houghton Mifflin Harcourt Company today announced its financial results for the second quarter ended June 30, 2014.
Second Quarter 2014 Financial Highlights:
- Net sales in the second quarter 2014 increased 11% from 2013 to $402 million.
- Adjusted EBITDA rose 12% to $109 million from the second quarter of 2013.
- Net income for the quarter was $12 million compared with a loss of $14 million in the second quarter of 2013.
- New sales orders for the first six months of 2014 increased approximately 40% compared with the same period in 2013.
- Gross sales or billings increased 31% for the second quarter of 2014 compared with the same period in 2013. Deferred revenue grew $114 million from March 31, 2014 to June 30 2014, primarily from increased digital content sales.
Linda K. Zecher, HMH's President and Chief Executive Officer, commented, "The opportunity within the U.S. adoption market is on pace to exceed initial expectations for 2014 and, as evidenced by our strong second quarter results and substantial market share, we are capitalizing on these positive dynamics. Our successful efforts to bundle digital components into new orders positions us for growth as our best-in-class technology fuels a broader industry and learning transformation. We also remain focused on pursuing complementary growth initiatives that will expand our presence beyond the K-12 classroom to more holistically meet the needs of lifelong learners."
Eric Shuman, Chief Financial Officer of HMH, stated, "The strength of our strategy and execution ability is reflected in our financial performance, which includes double-digit sales growth and approximately 40% new order growth. As the percentage of new orders evolves toward digital, our revenue cycles have naturally extended, and, as a result, we generated a $114 million quarter over quarter increase in deferred revenue."