Global learning company Houghton Mifflin Harcourt Company (“HMH” or the “Company”) (NASDAQ: HMHC) today announced its financial results for the fourth quarter and full year ended December 31, 2014.
Full Year 2014 Financial Highlights:
Billings grew 16%, or $222 million, to $1,602 million compared with $1,380 million in the full year 2013.
Net sales were $1,372 million compared with $1,379 million in 2013, while net deferred revenue increased $230 million in 2014, driven by higher billings and strong digital sales.
Adjusted cash EBITDA, which accounts for the change in deferred revenue, increased $168 million, or 51%, to $495 million in 2014 compared to $327 million in 2013. Adjusted EBITDA was $265 million for the full year 2014 compared with $325 million in the prior year.
Net loss was $111 million for the full year 2014 and 2013.
Linda K. Zecher, HMH’s President and Chief Executive Officer, commented, “2014 was an important year for HMH and a turning point for the market in terms of digital readiness. We believe our best in class products and leading-edge digital capabilities served as a catalyst for a learning transformation within the industry and enabled us to capture 52% share of a robust new adoption market. Looking ahead to 2015, we believe our learning solutions will continue to help us maintain a leading position in the education market. Simultaneously, we plan to intensify our focus on comprehensive education services, early childhood and direct-to-consumer markets to strengthen our long-term growth potential.”