Press Release: Houghton Mifflin Harcourt Reports Significant Revenue Growth in Q2 Earnings Report
Second Quarter Business Highlights:
Education segment: HMH has captured 50% market share among the 90% of adoption school districts that have announced content provider selections. In particular, GO Math! and ScienceFusion sales were very strong in Texas, while increased penetration within California and Florida also contributed to overall increased sales. The Company had a solid performance in open territories as it grew in Illinois, Washington, and Connecticut. HMH's new Woodcock Johnson assessment solution had an immediate positive impact to the Company's Riverside Assessment business, growing over 10% year over year.
Trade Publishing segment: The segment reported the second highest second quarter net sales in the history of the business despite a year-over-year decline following an exceptionally strong performance in the second quarter of 2013. The Giver by Lois Lowry, which has been a top-selling print and e-book title, will have its movie release this month which could to provide ongoing tie-in sales in the coming quarters.
Acquisitions: HMH executed on initiatives to enhance its presence in the Early Childhood segment and build on its best-in-class digital capabilities through a series of strategic acquisitions in the second quarter.
- Channel One News: HMH's acquisition of Channel One News brings expertise in digital content tailored to the K-12 market, strengthening the Company's ability to develop and distribute information across multiple media modalities. With a 25 year track record and award-winning programming, Channel One News is broadcast to nearly five million upper elementary, middle and high school students across the U.S. via satellite and at ChannelOne.com. The acquisition will enable HMH to further integrate video content into its current product lineup.
- Curiosityville: In line with its focus on creating a meaningful presence in the Early Childhood space, in the second quarter HMH completed the acquisition of subscription-based, personalized learning platform Curiosityville. Founded on extensive research and promoting at-home and online learning, Curiosityville leverages unique characters as well as a proprietary analytics engine to better prepare children for classroom learning.
- SchoolChapters: HMH acquired ePortfolio company SchoolChapters, which offers cloud-based applications for education providers to organize credentials and assessments, as well as share and discuss classroom planning with an online community.
Digital Expansions: This quarter, in addition to newly acquired assets, HMH extended its digital leadership with the launch of HMH Player for Google Chrome and the iPad. The HMH Player creates a new category in our market and enables districts considering 1:1 technology implementations to execute on those plans. This application creates a solution to ensure a more consistent, engaging and effective learning environment fueled by technology.