Average Delivery Time Across Postal Service Network Remains Stable

The Association of American Publishers (AAP) today released its StatShot report for March 2023 reflecting reported revenue for Trade (Consumer Books), Higher Education Course Materials, and Professional Publishing. Total revenues across all categories for March 2023 were up 6.6% as compared to March 2022, coming in at $883.5 million. Year-to-date revenues were up 3.2%, at $3.2 billion for the first three months of the year. Trade (Consumer Books) revenues were up 0.2% in March, coming in at $710.9 million. In terms of physical paper format revenues during the month of March, in the Trade (Consumer Books) category, Hardback revenues were down 1.0%, coming in at $243.1 million; Paperbacks were up 0.3%, with $268.2 million in revenue; Mass Market was down 9.5% to $13.0 million; and Special Bindings were up 21.9%, with $18.9 million in revenue. Year-to-date Trade revenues were up 1.1%, at $2.2 billion for the first three months of the year.

FOURTH QUARTER 2018 HIGHLIGHTS • Reported results (GAAP) reflected growth in Revenue (+6%), Operating Income (+18%) and EPS (+16%), driven by strong operational performance and favorable impacts from foreign currency. • At constant currency, growth in Revenue (+1%), Adjusted Operating Income (+15%) and Adjusted EPS (+6%) resulted from strong performance in Research, growth in Solutions, and broader operating efficiencies. FISCAL YEAR 2018 HIGHLIGHTS • Reported results (GAAP) reflected growth in Revenue (+5%), Operating Income (+16%) and EPS (+70%), driven by strong operational performance, benefits from foreign currency, and a one-time benefit from US tax reform. • At constant currency, growth in Revenue (+1%), Adjusted Operating Income (+7%) and Adjusted EPS (+3%) resulted from strong performance in Research, growth in Solutions, and broader operating efficiencies, partially offset by higher taxes. Click Read More below for additional information.

Houghton Mifflin Harcourt Company announced that it has entered into a definitive merger agreement with certain affiliates of Veritas Capital, a leading private investment firm, for the acquisition of the Company. Pursuant to the terms of the agreement, HMH shareholders will be entitled to receive $21 in cash per share through a tender offer. The per share purchase price represents a 36% premium to the Company’s unaffected share price as of January 13, 2022 and implies an equity value of approximately $2.8 billion. The decision to enter into an agreement with Veritas was the result of a deliberate and thorough strategic review process overseen by HMH’s Board of Directors. As part of that review, the Company held discussions with several potential strategic and financial bidders, including Veritas, through a formal process. Further details of the transaction and background of the sale process will be included in the Company’s Schedule 14D-9 with respect to the tender offer.