Revenue from continuing operations at educational and reference publisher Haights Cross Communications rose 10% in 2002, to $163.4 million, while EBITDA increased 25%. Sales and earnings in 2002 benefited from a full year's results from Audio Adventures, which Haights Cross acquired in 2001.
Audio Adventures was integrated into the company's Recorded Books division and helped it post double-digit gains in sales and profits last year. Sales were particularly strong in Recorded Books' retail, direct marketing and e-commerce channels as well as in the U.K. and Canada. Its top selling title was the spoken-word audio of Lord of the Rings, narrated by Rob Inglis.
At other Haights's divisions, Newbridge Educational Publishers also had a double-digit sales increase in the year, led by sales of its Discovery Links Science and Social Studies series. Sales at Newbridge's sister company, Sundance Publishing, which specializes in fiction and nonfiction guided reading for grades k—8, were down slightly in the year.
Sales and earnings at test-preparation publisher Triumph Learning rose by more than 10% as the company introduced state test guides in Maryland, Kentucky, Colorado and Tennessee. Triumph also expanded its science and social studies offerings in existing markets. The Triumph State Software and Triumph College Admissions units were divested in the year.
Chelsea House Publishers was hurt the most by the softening school market, and sales fell in the year. Haights remains committed to Chelsea and plans to publish 336 new nonfiction titles under the imprint this year.
Oakstone Publishing posted high single-digit revenue growth and double-digit earnings gains last year. The division, which publishes continuing education materials for the medical market, benefited from its relationship with Johns Hopkins's school of medicine, the expansion of its Journalbytes.com Web-based information service, and sales growth in its Medical Knowledge Self-Appraisal Program. Oakstone's legal publishing unit, Andrews Publications, was sold to West earlier this year and was not included in the 2002 results. Oakstone's legal and business unit is also up for sale.
Haights executive v-p and chief financial officer Tim McEwen said the sale of the Oakstone properties is in keeping with the company's strategy to focus on the education and library markets. A priority for 2003, McEwen said, is to continue to stablize and integrate the company's existing businesses. The company recently consolidated some warehouses and other back-office operations among its different divisions.
McEwen said the first quarter "was a little soft," due to pressure on state budgets, but that sales were up at Recorded Books, Triumph and Sundance.
