Houghton Mifflin Harcourt : Announces Fourth Quarter and Full Year 2020 Results, Achieved 2020 Billings at the Top End of its Revised Guidance Range and Positive Free Cash Flow

BOSTON, Feb. 25, 2021 /PRNewswire/ -- Learning technology company Houghton Mifflin Harcourt ("HMH" or the "Company") (Nasdaq: HMHC) today announced financial results for the fourth quarter and full year ended December 31, 2020 and introduced new operational metrics HMH will use to track growth in recurring revenue and progress on connected solutions selling.

"As we head into a new year focused on executing against our Digital First, Connected strategy, we are supporting teaching and learning nationwide in every environment. HMH has unsurpassed reach to the nation's schools and we continue to see strong growth in important key performance indicators, including accelerating digital adoption of our platforms and tools, positioning HMH amongst the largest and fastest growing companies in the edtech market," said Jack Lynch, President and Chief Executive Officer of Houghton Mifflin Harcourt.

Q4 2020 Headlines:

HMH achieved 2020 billings at the top end of its revised guidance range and positive free cash flow, outperforming its revised guidance range for 2020. Additionally:

• Continued momentum with SaaS billings growth of 142% and digital platform user growth of 306% for full year 2020
• Annualized Recurring Revenue (ARR) ¹ of $58 million in 2020; HMH will report its Net Retention Rate (NRR) beginning in the first quarter of 2021
• Connected Sales¹ made up 50% of Education segment billings in 2020

		Three Months Ended December 31,												Years Ended December 31,
(in millions of dollars)		2020				2019				Change				2020				2019				Change
Net sales		$	204			$	241				(15.7)	%		$	1,031			$	1,391				(25.8)	%
Change in deferred revenue			(48)				(41)				(18.6)	%			58				201				(71.0)	%
Billings 1			155				201				(22.6)	%			1,089				1,591				(31.5)	%
Impairment charge for goodwill			17				—			NM					279				—			NM
Net loss			(83)				(125)				33.5	%			(480)				(214)			NM
Adjusted EBITDA 2			16				(4)			NM					132				166				(20.5)	%
Pre-publication or content development costs			(10)				(21)				52.4	%			(61)				(103)				40.2	%
Net cash provided by operating activities			40				128				(68.6)	%			115				255				(54.8)	%
Free cash flow 2			14				96				(85.0)	%			3				115				(97.4)	%
1     An operating measure. Please refer to "Operating Metrics" for an explanation.
2     Non-GAAP measure, please refer to Use of Non-GAAP Financial Measures for an explanation and reconciliation.
NM = not meaningful

Joe Abbott, HMH's Chief Financial Officer said, "During the quarter, we also continued to manage our expenses with discipline, and as a result, delivered higher adjusted EBITDA margins for the fourth quarter and for the full year. Additionally, we generated positive cash flow during the fourth quarter, resulting in positive free cash flow for the full year."

Outlook:

HMH expects 2021 billings in a range of $1.10 billion to $1.15 billion resulting in an unlevered free cash flow margin in a range of 9% to 11%.

Full year 2020 Financial Results:

Net Sales: HMH reported net sales of $1,031 million for the full year of 2020, down 26% compared to $1,391 million in 2019. The net sales decrease was driven by a $371 million decrease in our Education segment, offset by a $12 million increase in our HMH Books & Media segment. Within our Education segment, the decrease was primarily due to lower net sales in Extensions, which decreased $252 million from $632 million in 2019 to $380 million, due to lower sales and a difficult comparison to prior year Texas K-6 sales coupled with the impact of the COVID-19 pandemic in 2020. Also, contributing to the decrease was lower professional services with the decline of the in-person learning environment as a result of the COVID-19 pandemic. Further, there were lower net sales from Core Solutions which decreased by $119 million from $578 million in 2019 to $459 million, primarily due to the smaller new adoption market opportunity in Texas ELA, along with the impact of the COVID-19 pandemic. Within our HMH Books & Media segment, the increase in net sales was primarily due to an increase in licensing revenue of $13 million, which includes $10 million of licensing revenue from a new production series and $3 million from the Carmen Sandiego series on Netflix.  

Billings¹: Billings for 2020 decreased $502 million, or 32%, from 2019. The billings decrease was driven by a $515 million decrease in our Education segment offset by a $13 million increase in our HMH Books & Media segment. Within our Education segment, the decrease was primarily due to lower Core Solutions billings which decreased $306 million due to the smaller new adoption market opportunity in Texas ELA, along with the impact of the COVID-19 pandemic. Further, Extensions billings decreased by $209 million due to lower billings of the Heinemann products due to a difficult comparison to prior year Texas K-6 billings coupled with the impact of the COVID-19 pandemic in 2020 and reduced face-to-face delivery of professional services. HMH Books & Media billings increased primarily due to an increase in licensing revenue of $13 million, which includes $10 million of licensing revenue from a new production series and $3 million from the Carmen Sandiego series on Netflix.

Cost of Sales: Overall cost of sales decreased by $200 million to $644 million in 2020 from $844 million in 2019, primarily due to lower billings and to a lesser extent, lower amortization expense.

Selling and Administrative Costs: Selling and administrative costs decreased by $185 million in 2020, primarily due to lower labor costs of $77 million, resulting from cost savings associated with our employee furlough initiative in response to COVID-19, our 2020 Restructuring Plan and a freeze on hiring. Further, there was a decrease in variable expenses of $52 million, including reduced commissions and transportation expenses due to lower billings and $44 million of lower discretionary costs related to travel, decreased marketing activities and other expense reduction measures. There was also lower depreciation expense of $11 million.

Restructuring/severance: Our restructuring/severance and other charges for the full year ended December 31, 2020 increased by $12 million primarily due to severance costs associated with the 2020 restructuring plan.

Operating Loss: Operating loss for 2020 was $429 million, a $266 million unfavorable change from the $163 million operating loss in 2019 primarily due to a non-cash impairment charge for goodwill in 2020 of $279 million. This charge was a direct result of the adverse impact that the COVID-19 pandemic had on our Company. Additionally, lower net sales contributed to the operating loss. Partially offsetting the unfavorable operating loss was a decrease in selling and administrative expenses.

Net Loss: Net loss of $480 million for 2020 was a $266 million unfavorable change from the net loss of $214 million in 2019, due primarily to the same factors impacting operating loss along with an increase in interest expense of $17 million resulting from the debt refinancing during the fourth quarter of 2019 and a favorable change in income taxes of $17 million due primarily to the non-cash impairment on goodwill.

Adjusted EBITDA: Adjusted EBITDA for 2020 was $132 million, a $34 million unfavorable change from $166 million in 2019.  

Cash Flows and Liquidity: Net cash provided by operating activities for 2020 was $115 million compared with $255 million in 2019. HMH's free cash flow, defined as net cash from operating activities minus capital expenditures, for 2020 was $3 million, a $112 million unfavorable change compared to $115 million in 2019. The primary driver of the unfavorable change in net cash provided by operating activities and free cash flow was the COVID-19 pandemic in 2020.

As of February 25, 2021, there were no amounts outstanding under our revolving credit facility. We expect our net cash from operations combined with our cash and cash equivalents and borrowing availability under our revolving credit facility to provide sufficient liquidity to fund our current obligations, capital spending, debt service requirements and working capital requirements over at least the next twelve months.

Conference Call:

At 9:30 a.m. ET on Thursday, February 25, 2021, HMH will host a conference call to discuss the results and management's outlook with its investors. The call will be webcast live at ir.hmhco.com. The following information is provided for investors who would like to participate:

Toll Free: [phone]
International: [phone]
Passcode: 1675959  
Moderator: Brian Shipman, Senior Vice President, Investor Relations
Webcast Link: https://edge.media-server.com/mmc/p/oyi49sqv   

An archived webcast with the accompanying slides will be available at ir.hmhco.com for one year for those unable to participate in the live event. An audio replay of this conference call will also be available until March 7, 2021 via the following telephone numbers: [phone] in the United States and [phone] internationally using passcode 1675959.

Use of Non-GAAP Financial Measures:

To supplement our financial statements presented in accordance with Generally Accepted Accounting Principles (GAAP) and to provide additional insights into our performance (for a completed period and/or on a forward-looking basis), we have presented adjusted EBITDA and free cash flow. These measures are not prepared in accordance with GAAP. This information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. Management believes that the presentation of these non-GAAP measures provides useful information to investors regarding our results of operations and/or our expected results of operations because it assists both investors and management in analyzing and benchmarking the performance and value of our business.

Management believes that the presentation of adjusted EBITDA provides useful information to our investors and management as an indicator of our performance that is not affected by debt restructurings, fluctuations in interest rates or effective tax rates, gain or losses on investments, non-cash charges and impairment charges, or levels of depreciation or amortization along with costs such as severance, separation and facility closure costs, acquisition/disposition-related activity costs, restructuring costs and integration costs. Accordingly, management believes that this measure is useful for comparing our performance from period to period and makes decisions based on it. In addition, targets in adjusted EBITDA (further adjusted to include the change in deferred revenue) are used as performance measures to determine certain incentive compensation of management. Management also believes that the presentation of free cash flow provides useful information to our investors because management regularly reviews these metrics as an important indicator of how much cash is generated by general business operations, excluding capital expenditures, and makes decisions based on it.

Other companies may define these non-GAAP measures differently and, as a result, our use of these non-GAAP measures may not be directly comparable to adjusted EBITDA and free cash flow used by other companies. Although we use these non-GAAP measures as financial measures to assess our business, the use of non-GAAP measures is limited as they include and/or do not include certain items not included and/or included in the most directly comparable GAAP measure. Adjusted EBITDA should be considered in addition to, and not as a substitute for, net income or loss prepared in accordance with GAAP as a measure of performance; and free cash flow should be considered in addition to, and not as a substitute for, net cash from operating activities prepared in accordance with GAAP. Adjusted EBITDA is not intended to be a measure of liquidity nor is free cash flow intended to be a measure of residual cash flow available for discretionary use. You are cautioned not to place undue reliance on these non-GAAP measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures (to the extent available without unreasonable efforts in the case of forward-looking measures) and related disclosure is provided in the appendix to this news release.

Operating Metrics:

Annualized Recurring Revenue (ARR) for a given period is the annualized revenues derived from termed subscription contracts existing at the end of the period. ARR excludes contracts that are one-time in nature. ARR is currently one of the key performance metrics being used by management to assess the health and trajectory of our business. ARR does not have a standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of U.S. GAAP revenue, deferred revenue and unbilled revenue and is not intended to be combined with or to replace those items. ARR does not represent revenue for any particular period or remaining revenue that will be recognized in future periods. ARR is not a forecast and the active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers. 

Connected Sales are billings from the sale of core, intervention, supplemental, assessment and service offerings hosted on or transitioning to be hosted on our Ed: Your Friend in Learning® teaching and learning platform.

Billings is an operating measure which we derive from net sales taking into account the change in deferred revenue. Education and HMH Books & Media segment billings represent an operating measure which we derive from net sales taking into account the change in deferred revenue. Billings for Core Solutions and Extensions is an operating measure based on invoiced sales adjusted for returns, other publishing income and change in deferred revenue.

About Houghton Mifflin Harcourt

Houghton Mifflin Harcourt (Nasdaq: HMHC) is a learning technology company committed to delivering connected solutions that engage learners, empower educators and improve student outcomes. As a leading provider of K–12 core curriculum, supplemental and intervention solutions, and professional learning services, HMH partners with educators and school districts to uncover solutions that unlock students' potential and extend teachers' capabilities. HMH serves more than 50 million students and 3 million educators in 150 countries, while its award-winning children's books, novels, non-fiction, and reference titles are enjoyed by readers throughout the world. For more information, visit www.hmhco.com.  

Follow HMH on Twitter, Facebook and YouTube.

Contact

Investor Relations
Brian S. Shipman, CFA
SVP, Investor Relations
[phone]
[e-mail]

Media Relations
Bianca Olson
SVP, Corporate Affairs
[phone]
[e-mail]

Forward-Looking Statements

The statements contained herein include forward-looking statements, which involve risks and uncertainties. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes," "estimates," "projects," "anticipates," "expects," "could," "intends," "may," "will," "should," "forecast," "intend," "plan," "potential," "project," "target" or, in each case, their negative, or other variations or comparable terminology. Forward-looking statements include all statements that are not statements of historical facts. They include statements regarding our intentions, beliefs or current expectations concerning, among other things: 2021 outlook for billings and unlevered free cash flow margin; the expected impact of our Digital First, Connected strategy and the actions described in this press release; the expected impact of the COVID-19 pandemic; our future results of operations, financial condition, liquidity, prospects, growth and strategies; the timing, structure and expected impact of our operational efficiency and cost-reduction initiatives and the estimated savings and amounts expected to be incurred in connection therewith; and potential business decisions. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. We caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors that could affect our actual results. All forward-looking statements are based upon information available to us on the date of this report.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that actual results may differ materially from those made in or suggested by the forward-looking statements contained herein. In addition, even if actual results are consistent with the forward-looking statements contained herein, those results or developments may not be indicative of results or developments in subsequent periods.

Important factors that could cause actual results to vary from expectations include, but are not limited to: the duration and severity of the COVID-19 pandemic and its impact on the federal, state and local economies and on K-12 schools; the rate and state of technological change; state requirements related to digital instructional materials; our ability to execute on our Digital First, Connected growth strategy; increases in our operating costs; management and personnel changes; timing, higher costs and unintended consequences of our operational efficiency and cost-reduction initiatives, including the actions described in this press release; our ability to sell the HMH Books & Media business and the terms of any such potential sale; and other factors discussed in the "Risk Factors" section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. In light of these risks, uncertainties and assumptions, the forward-looking events described herein may not occur.

We undertake no obligation, and do not expect, to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained herein.

Houghton Mifflin Harcourt Company
Consolidated Balance Sheets
		December 31,
(in thousands of dollars, except share information)		2020				2019
Assets
Current assets
Cash and cash equivalents		$	281,200			$	296,353
Accounts receivable, net			152,832				184,425
Inventories			166,963				213,059
Prepaid expenses and other assets			19,931				19,257
Total current assets			620,926				713,094
Property, plant, and equipment, net			93,202				100,388
Pre-publication costs, net			203,149				268,197
Royalty advances to authors, net			42,485				44,743
Goodwill			437,977				716,977
Other intangible assets, net			428,584				474,225
Operating lease assets			126,850				132,247
Deferred income taxes			2,415				2,520
Deferred commissions			30,659				29,291
Other assets			34,879				31,490
Total assets		$	2,021,126			$	2,513,172
Liabilities and Stockholders' Equity
Current liabilities
Current portion of long-term debt		$	19,000			$	19,000
Accounts payable			49,104				52,128
Royalties payable			50,771				72,985
Salaries, wages, and commissions payable			21,944				54,938
Deferred revenue			342,605				305,285
Interest payable			11,017				3,826
Severance and other charges			19,590				12,407
Accrued pension benefits			1,593				—
Accrued postretirement benefits			1,555				1,571
Operating lease liabilities			9,669				8,685
Other liabilities			24,973				24,325
Total current liabilities			551,821				555,150
Long-term debt, net of discount and issuance costs			624,692				638,187
Operating lease liabilities			132,014				134,994
Long-term deferred revenue			562,679				542,821
Accrued pension benefits			24,061				23,648
Accrued postretirement benefits			16,566				15,113
Deferred income taxes			16,411				30,871
Other liabilities			2,419				6,028
Total liabilities			1,930,663				1,946,812
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.01 par value: 20,000,000 shares authorized; no shares issued      and outstanding at December 31, 2020 and 2019			—				—
Common stock, $0.01 par value: 380,000,000 shares authorized; 150,459,034 and      148,928,328 shares issued at December 31, 2020 and 2019, respectively; 125,852,000      and 124,351,294 shares outstanding at December 31, 2020 and 2019, respectively			1,505				1,489
Treasury stock, 24,577,034 shares as of December 31, 2020 and 2019, respectively, at cost			(518,030)				(518,030)
Capital in excess of par value			4,918,542				4,906,165
Accumulated deficit			(4,255,830)				(3,775,992)
Accumulated other comprehensive loss			(55,724)				(47,272)
Total stockholders' equity			90,463				566,360
Total liabilities and stockholders' equity		$	2,021,126			$	2,513,172

 

Houghton Mifflin Harcourt Company
Consolidated Statements of Operations
		(Unaudited) Three Months Ended December 31,								Years Ended December 31,
(in thousands of dollars, except share and per share data)		2020				2019				2020				2019
Net sales		$	203,561			$	241,475			$	1,031,292			$	1,390,674
Costs and expenses
Cost of sales, excluding publishing rights and pre-publication amortization			100,677				134,695				497,816				668,108
Publishing rights amortization			4,761				6,340				20,056				26,557
Pre-publication amortization			32,137				41,375				126,180				149,515
Cost of sales			137,575				182,410				644,052				844,180
Selling and administrative			111,095				146,400				478,101				662,606
Other intangible asset amortization			6,766				5,791				25,585				25,310
Impairment charge for goodwill			17,000				—				279,000				—
Restructuring/severance and other charges			98				15,821				33,643				21,742
Operating loss			(68,973)				(108,947)				(429,089)				(163,164)
Other income (expense)
Retirement benefits non-service (expense) income			(1,039)				42				(856)				167
Interest expense			(15,526)				(13,636)				(65,959)				(48,778)
Interest income			26				1,459				899				3,157
Change in fair value of derivative instruments			500				272				672				(899)
Gain on investments			353				—				2,091				—
Income from transition services agreement			—				—				—				4,248
Loss on extinguishment of debt			—				(4,363)				—				(4,363)
Loss before taxes			(84,659)				(125,173)				(492,242)				(209,632)
Income tax (benefit) expense			(1,514)				(55)				(12,404)				4,201
Net loss		$	(83,145)			$	(125,118)			$	(479,838)			$	(213,833)
Net loss per share attributable to common stockholders
Basic and diluted		$	(0.66)			$	(1.01)			$	(3.82)			$	(1.72)
Weighted average shares outstanding
Basic and diluted			125,867,093				124,342,086				125,455,487				124,152,984

 

Houghton Mifflin Harcourt Company
Consolidated Statements of Cash Flows
		Years Ended December 31,
(in thousands of dollars)		2020				2019
Cash flows from operating activities
Net loss		$	(479,838)			$	(213,833)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization expense			236,489				272,692
Operating lease assets, amortization and impairments			5,397				15,949
Amortization of debt discount and deferred financing costs			6,004				4,286
Gain on investments			(2,091)				—
Deferred income taxes			(14,355)				4,535
Stock-based compensation expense			11,573				13,968
Impairment charge for goodwill			279,000				—
Loss on extinguishment of debt			—				4,363
Change in fair value of derivative instruments			(672)				899
Changes in operating assets and liabilities, net of acquisitions
Accounts receivable			31,593				19,182
Inventories			46,096				(28,850)
Other assets			(11,425)				(20,155)
Accounts payable and accrued expenses			(34,941)				(12,136)
Royalties payable and author advances, net			(19,956)				9,342
Deferred revenue			57,178				200,473
Interest payable			7,191				3,690
Severance and other charges			7,183				10,631
Accrued pension and postretirement benefits			3,443				(4,800)
Operating lease liabilities			(1,996)				(17,281)
Other liabilities			(10,625)				(7,980)
Net cash provided by operating activities			115,248				254,975
Cash flows from investing activities
Proceeds from sales and maturities of short-term investments			—				50,000
Additions to pre-publication costs			(61,331)				(102,562)
Additions to property, plant, and equipment			(50,940)				(37,561)
Acquisition of business, net of cash acquired			—				(5,447)
Investment in preferred stock			—				(750)
Net cash used in investing activities			(112,271)				(96,320)
Cash flows from financing activities
Proceeds from term loan, net of discount			—				364,800
Proceeds from senior secured notes, net of discount			—				299,880
Borrowings under revolving credit facility			150,000				60,000
Payments of revolving credit facility			(150,000)				(60,000)
Payments of long-term debt			(19,000)				(772,000)
Payments of deferred financing fees			—				(8,493)
Tax withholding payments related to net share settlements of restricted stock units			(48)				(2,018)
Issuance of common stock under employee stock purchase plan			918				1,028
Net collections under transition service agreement			—				1,136
Net cash used in financing activities			(18,130)				(115,667)
Net increase (decrease) in cash and cash equivalents			(15,153)				42,988
Cash and cash equivalents at the beginning of the period			296,353				253,365
Cash and cash equivalents at the end of the period		$	281,200			$	296,353

 

	Houghton Mifflin Harcourt Company
	Non-GAAP Reconciliations (Unaudited)
Adjusted EBITDA
Consolidated
(in thousands of dollars)
			Three Months Ended December 31,								Years Ended December 31,
			2020				2019				2020				2019
	Net loss		$	(83,145)			$	(125,118)			$	(479,838)			$	(213,833)
	Interest expense			15,526				13,636				65,959				48,778
	Interest income			(26)				(1,459)				(899)				(3,157)
	Provision (benefit) for income taxes			(1,514)				(55)				(12,404)				4,201
	Depreciation expense			12,699				14,530				50,715				61,475
	Amortization expense – film asset			9,099				3,063				13,953				9,835
	Amortization expense			43,664				53,506				171,821				201,382
	Non-cash charges – goodwill impairment			17,000				—				279,000				—
	Non-cash charges – stock compensation			2,822				2,874				11,573				13,968
	Non-cash charges – loss on derivative instruments			(500)				(272)				(672)				899
	Inventory obsolescence related to strategic transformation plan			—				9,758				—				9,758
	Fees, expenses or charges for equity offerings, debt or    acquisitions/dispositions			714				5,596				1,080				6,327
	Restructuring/severance and other charges			98				15,821				33,643				21,742
	Gain on investments			(353)				—				(2,091)				—
	Loss on extinguishment of debt			—				4,363				—				4,363
	Adjusted EBITDA		$	16,084			$	(3,757)			$	131,840			$	165,738
Free Cash Flow
Consolidated
(in thousands of dollars)
			Three Months Ended December 31,								Years Ended December 31,
			2020				2019				2020				2019
	Cash flows from operating activities
	Net cash provided by operating activities		$	40,082			$	127,603			$	115,248			$	254,975
	Cash flows from investing activities
	Additions to pre-publication costs			(10,010)				(21,030)				(61,331)				(102,562)
	Additions to property, plant, and equipment			(15,665)				(10,211)				(50,940)				(37,561)
	Free Cash Flow		$	14,407			$	96,362			$	2,977			$	114,852
We are unable to reconcile forward looking cash flow (both before and after interest payments) and related margin without unreasonable efforts. Unlevered free cash flow margin is the ratio of free cash flow before interest payments to billings.

 

Houghton Mifflin Harcourt Company
Calculation of Billings (Unaudited)
Billings (in thousands of dollars)
Consolidated
			Three Months Ended December 31,								Years Ended December 31,
			2020				2019				2020				2019
	Net sales		$	203,561			$	241,475			$	1,031,292			$	1,390,674
	Change in deferred revenue			(48,169)				(40,618)				58,178				200,662
	Billings		$	155,392			$	200,857			$	1,089,470			$	1,591,336
Education
			Three Months Ended December 31,								Years Ended December 31,
			2020				2019				2020				2019
	Net sales		$	140,979			$	189,387			$	839,553			$	1,210,646
	Change in deferred revenue			(48,294)				(40,514)				58,281				201,621
	Education Billings		$	92,685			$	148,873			$	897,834			$	1,412,267
HMH Books & Media
			Three Months Ended December 31,								Years Ended December 31,
			2020				2019				2020				2019
	Net sales		$	62,582			$	52,088			$	191,739			$	180,028
	Change in deferred revenue			125				(104)				(103)				(959)
	HMH Books & Media Billings		$	62,707			$	51,984			$	191,636			$	179,069
Billings is an operating measure utilized by the Company derived as shown above.

 

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SOURCE Houghton Mifflin Harcourt