The Princeton Review reported substantial improvement in its operating results in 2002. Total revenue rose 29%, to $89.2 million, and the company's net loss was cut to $1.1 million from $14.6 million in 2001. All three of Princeton Review's operating segments posted gains in sales and profits in the year.
In its largest segment, test preparation services, revenue increased 22%, to $65.9 million. The increase was attributed to the acquisition of several Princeton Review franchises that had been independently owned and a $1 million increase in royalties from franchises plus enrollment increases and price hikes.
Revenue in the admissions services division jumped 56%, to $14 million. The gain was driven by a full year's results from Embark, an online provider of college and graduate school information and application services, which Princeton Review bought in October 2001. The company's publishing venture with Random House generated revenue of $3.5 million last year compared to $2.5 million in 2001. Random publishes and distributes about 190 book and software titles authored by Princeton Review, and in 2002 the parties signed an agreement for 55 new titles.
Revenue in Princeton Review's newest and smallest division, k-12 services, rose 49%, to $9.3 million. The jump came from more subscriptions to its homeroom.com service and higher sales from the sale of workbooks and other Princeton Review—branded content published by McGraw-Hill. Princeton Review's deal with M-H generated revenue of $3.5 million in 2002.
John Katzman, Princeton Review CEO, said he expects another year of growth in 2003.
