Content analysis
?Positive | ||
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Constraining | ||
Legalese | ||
Litigous | ||
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H.S. sophomore Avg
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New words:
abandoned, abandonment, Academy, acquiree, Antitrust, ASC, Bisexual, Circa, circumstance, climate, Codification, contemplated, deploy, elevated, enjoining, entry, expansion, fashion, frame, Gallup, HackerX, hand, Handshake, Harbor, HBCU, Id, illegal, impediment, imposition, inconsistency, inflationary, joined, landing, Lesbian, Lifestyle, main, mentoring, mission, momentum, motivate, nonprofit, occasional, outreach, overarching, Parent, pendency, portal, procedure, Prolonged, prospective, Queer, regulatory, reoccur, repayment, Rescue, restraining, resume, revert, Rotation, shape, singularly, SKU, slight, strength, strongly, superior, surviving, SV, tender, tendered, Transgender, turnover, unanimously, unvaccinated, unverified, USA, vaccine, validly, veteran, VII, waiting, waived, webpage, withdrawn
Removed:
acceptable, agreed, Alexander, Allsburg, animated, backlist, bankruptcy, bestselling, Betty, Blue, branding, brick, broad, caption, Carmen, clinical, closed, commensurate, confidence, contracted, contraction, converting, Cook, cookbook, Crocker, culinary, discovery, distinguished, distributed, dividend, division, earning, ebook, ecommerce, electronic, eliminate, ending, enjoyed, episodic, evolved, exclude, fiction, film, fire, flood, founded, genre, George, Giver, Gossie, Grandin, grew, guarantor, Handmaid, hardcover, heavily, impacting, Indiana, institution, introduced, iRead, Kwame, legally, library, licensing, limiting, literary, Lord, Lowry, machinery, Mariner, markedly, Martha, mortar, movie, Netflix, Nobel, nonfinancial, organized, originally, outsourcing, overhead, pace, paperback, partial, Peterson, Polar, popular, popularity, power, Prize, produced, prolific, proportionally, Pulitzer, PV, reader, reclassify, recourse, renowned, resurgence, retail, retailer, Sandiego, scheme, simplified, split, spur, standardized, subcontractor, television, Temple, Tim, today, Tolkien, topic, Truck, untaxed, Van, yield, young
Financial report summary
?Risks
- We may not complete the pending transaction with entities owned by Veritas within the time frame we anticipate or at all, which could have an adverse effect on our business, financial results and/or operations.
- The pendency of the transaction with Veritas could adversely affect our business, financial results and/or operations.
- While the Merger Agreement is in effect, we are subject to restrictions on our business activities.
- In certain instances, the Merger Agreement requires us to pay a termination fee to Veritas, which could require us to use available cash that would have otherwise been available for general corporate purposes.
- We have incurred, and will continue to incur, direct and indirect costs as a result of the pending transaction with Veritas.
- Our business and results of operations may be adversely affected by changes in federal, state and local education funding, and changes in legislation and public policy.
- State instructional materials adoptions, which account for a significant portion of our net sales of K-12 instructional materials, are highly cyclical and pose significant inherent risks that could materially impact our results of operations.
- Changes in state academic standards could affect our market and require investment in development of new programs or modifications to our existing programs and any delays or controversies in the implementation of such standards could impact our results of operations.
- We operate in a highly competitive environment where the risks from competition are intensified due to rapid changes in our markets and industry; as a result, we must continue to adapt to remain competitive.
- The availability of free and low-cost open education resources could adversely affect our net sales and exert downward pressure on prices for our education products.
- If we fail to maintain strong relationships with our authors, illustrators and other creative talent, as well as to develop relationships with new creative talent, our net sales and results of operations could be adversely affected.
- If we are unable to attract, retain and focus a strong leadership team, a dynamic sales force, software engineers and other key personnel, it could have an adverse effect on our business and ability to remain competitive, financial condition and results from operations.
- We may not be able to execute on our long-term growth strategy or achieve expected benefits from actions taken in furtherance of our strategy, which could materially and adversely affect our business, financial condition and results of operations and/or our growth.
- Our investments in new products, service offerings, platforms and/or technologies could impact our profitability.
- We rely on third-party software and technology development as part of our digital platform.
- Defects in our digital products and platforms could cause financial loss and reputational damage.
- We are dependent on a small number of third parties to print and bind our products and to supply paper, a principal material for our products. If we were to lose our relationship with our key print vendor and/or paper merchant, our business and results of operations may be materially and adversely affected.
- Prolonged inflation could result in higher costs and decreased margins and earnings.
- Operational disruption to our business caused by a major disaster or other external threats could restrict our ability to supply products and services to our customers.
- We are subject to risks based on information technology systems. A major breach in security or information technology system failure could interrupt the availability of our internet-based products and services, result in corruption and/or loss of data, cause liability or reputational damage to our brands and business and/or result in financial loss.
- Our operating results fluctuate on a seasonal and quarterly basis and our business has historically been dependent on our results of operations for the third quarter.
- Our history of operations includes periods of operating and net losses, and we may incur operating and net losses in the future. Such losses may impact our liquidity.
- Our major operating costs and expenses include employee compensation as well as paper, printing and binding costs and expenses for product-related manufacturing, and a significant increase in such costs and expenses could have a material adverse effect on our profitability.
- We are subject to contingent liabilities that may affect liquidity and our ability to meet our obligations.
- Our level of indebtedness could adversely affect our financial condition and results of operations.
- We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful.
- We may record future goodwill or additional indefinite-lived intangibles impairment charges which could have a material adverse impact on our results of operations.
- The shift to sales of greater digital content or an increase in consumable print core programs may affect the comparability of our revenue to prior periods and cause increases or decreases in our sales to be reflected in our results of operations on a delayed basis.
- Our ability to enforce our intellectual property and proprietary rights may be limited, which may harm our competitive position and materially and adversely affect our business and results of operations.
- Failure to comply with privacy laws or adequately protect personal data could cause financial loss and reputational damage.
- We may not be able to identify and complete any future acquisitions or achieve the expected benefits from any future acquisitions, which could materially and adversely affect our business, financial condition and results of operations and/or our growth.
- Exposure to litigation could have a material effect on our financial position and results of operations.
- We face risks of doing business abroad.
Management Discussion
- Net sales for the year ended December 31, 2021 increased $210.3 million, or 25.0%, from $840.5 million in 2020 to $1,050.8 million. Core Solutions increased by $91.0 million from $459.0 million in 2020 to $550.0 million, driven by strong open territory demand resulting from the strength of our connected solutions and the continued market recovery, as well as the success of our digital first, connected strategy. Further, net sales in Extensions, consisting of our Heinemann brand, intervention and supplemental products as well as professional services, increased by $120.0 million from $381.0 million in 2020 to $501.0 million. Within Extensions, net sales of our Heinemann products increased due to strong demand across most product portfolios.