Houghton Mifflin Harcourt Co

CIK:0001580156|SEC Filings

Consolidated Statements of Operations - USD ($)	12 Months Ended
Consolidated Statements of Operations - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Net sales	$ 1,050,802,000	$ 840,454,000	$ 1,211,790,000
Costs and expenses
Cost of sales, excluding publishing rights and pre-publication amortization	398,706,000	370,586,000	549,886,000
Publishing rights amortization	10,688,000	14,800,000	20,611,000
Pre-publication amortization	108,621,000	125,838,000	149,298,000
Cost of sales	518,015,000	511,224,000	719,795,000
Selling and administrative	445,660,000	442,355,000	619,811,000
Other intangible assets amortization	30,257,000	23,917,000	20,353,000
Impairment charge for goodwill	0	279,000,000	0
Restructuring/severance and other charges	12,349,000	31,874,000	20,692,000
Gain on sale of assets	(3,661,000)
Operating income (loss)	48,182,000	(447,916,000)	(168,861,000)
Other income (expense)
Retirement benefits non-service income (expense)	105,000	(856,000)	167,000
Interest expense	(34,998,000)	(37,931,000)	(29,770,000)
Interest income	77,000	899,000	3,157,000
Change in fair value of derivative instruments	(1,221,000)	672,000	(899,000)
Gain on investments	1,442,000	2,091,000
Income from transition services agreement	3,664,000		4,248,000
Loss on extinguishment of debt	(12,505,000)		(4,363,000)
Income (loss) from continuing operations before taxes	4,746,000	(483,041,000)	(196,321,000)
Income tax expense (benefit) for continuing operations	2,686,000	(12,351,000)	3,854,000
Income (loss) from continuing operations	2,060,000	(470,690,000)	(200,175,000)
Loss from discontinued operations, net of tax	(1,005,000)	(9,148,000)	(13,658,000)
Gain on sale of discontinued operations, net of tax	212,523,000
Income (loss) from discontinued operations, net of tax	211,518,000	(9,148,000)	(13,658,000)
Net income (loss)	$ 213,578,000	$ (479,838,000)	$ (213,833,000)
Basic:
Continuing operations	$ 0.02	$ (3.75)	$ (1.61)
Discontinued operations	1.66	(0.07)	(0.11)
Net income (loss)	1.68	(3.82)	(1.72)
Diluted:
Continuing operations	0.02	(3.75)	(1.61)
Discontinued operations	1.61	(0.07)	(0.11)
Net income (loss)	$ 1.63	$ (3.82)	$ (1.72)
Weighted average shares outstanding
Basic	127,337,815	125,455,487	124,152,984
Diluted	131,402,866	125,455,487	124,152,984

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities
Net income (loss)	$ 213,578,000	$ (479,838,000)	$ (213,833,000)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Loss from discontinued operations, net of tax	1,005,000	9,148,000	13,658,000
Gain on sale of discontinued operations, net of tax	(212,523,000)
Gain on sale of assets	(3,661,000)
Depreciation and amortization expense	194,433,000	214,429,000	250,970,000
Operating lease assets, amortization and impairments	16,249,000	5,397,000	15,949,000
Amortization of debt discount and deferred financing costs	2,705,000	2,636,000	2,814,000
Gain on investments	(1,942,000)	(2,091,000)
Deferred income taxes	2,400,000	(14,355,000)	4,535,000
Stock-based compensation expense	12,217,000	11,160,000	13,196,000
Write-off of property, plant, and equipment	1,606,000
Loss on extinguishment of debt	12,505,000		4,363,000
Impairment charge for goodwill	0	279,000,000	0
Change in fair value of derivative instruments	1,221,000	(672,000)	899,000
Changes in operating assets and liabilities, net of acquisitions
Accounts receivable	(28,928,000)	32,369,000	21,856,000
Inventories	28,083,000	42,936,000	(29,509,000)
Other assets	(28,895,000)	(4,860,000)	(14,189,000)
Accounts payable and accrued expenses	18,788,000	(34,039,000)	(15,354,000)
Royalties payable and author advances, net	13,247,000	(18,095,000)	6,873,000
Deferred revenue	59,391,000	57,178,000	200,473,000
Interest payable	218,000	7,191,000	3,690,000
Severance and other charges	(19,185,000)	7,183,000	10,631,000
Accrued pension and postretirement benefits	(2,946,000)	3,443,000	(4,800,000)
Operating lease liabilities	(6,687,000)	(1,996,000)	(17,281,000)
Other liabilities	(9,090,000)	(9,639,000)	(6,401,000)
Net cash provided by operating activities - continuing operations	263,789,000	106,485,000	248,540,000
Net cash provided by operating activities - discontinued operations	3,880,000	8,763,000	6,435,000
Net cash provided by operating activities	267,669,000	115,248,000	254,975,000
Cash flows from investing activities
Proceeds from sales and maturities of short-term investments			50,000,000
Additions to pre-publication costs	(56,210,000)	(60,872,000)	(102,457,000)
Additions to property, plant, and equipment	(39,093,000)	(50,940,000)	(36,832,000)
Proceeds from sale of business	340,593,000
Acquisition of business, net of cash acquired			(5,447,000)
Investment in preferred stock			(750,000)
Proceeds from sale of assets	5,000,000
Net cash provided by (used in) investing activities - continuing operations	250,290,000	(111,812,000)	(95,486,000)
Net cash used in investing activities - discontinued operations	(647,000)	(459,000)	(834,000)
Net cash provided by (used in) investing activities	249,643,000	(112,271,000)	(96,320,000)
Cash flows from financing activities
Borrowings under revolving credit facility		150,000,000	60,000,000
Payments of revolving credit facility		(150,000,000)	(60,000,000)
Payments of long-term debt	(342,031,000)	(19,000,000)	(772,000,000)
Payments of deferred financing fees			(8,493,000)
Tax withholding payments related to net share settlements of restricted stock units		(48,000)	(2,018,000)
Issuance of common stock under employee stock purchase plan	410,000	918,000	1,028,000
Net collections under transition services agreement	6,240,000		1,136,000
Net cash used in financing activities - continuing operations	(335,381,000)	(18,130,000)	(115,667,000)
Net increase (decrease) in cash and cash equivalents	181,931,000	(15,153,000)	42,988,000
Cash and cash equivalents at beginning of the period	281,200,000	296,353,000	253,365,000
Cash and cash equivalents at end of the period	463,131,000	281,200,000	296,353,000
Supplemental disclosure of cash flow information
Interest paid - continuing operations	31,148,000	27,385,000	23,884,000
Interest paid - discontinued operations	9,143,000	25,557,000	17,175,000
Income taxes paid	1,571,000	1,883,000	671,000
Operating lease assets obtained in exchange for operating lease liabilities	7,911,000	6,889,000	324,000
Term Loan [Member]
Cash flows from financing activities
Proceeds from long-term debt, net of discount			364,800,000
Senior Secured Notes [Member]
Cash flows from financing activities
Proceeds from long-term debt, net of discount			299,880,000
Pre-publication Costs [Member]
Non-cash investing activities
Costs included in accounts payable and accruals	5,556,000	5,282,000	5,480,000
Property, Plant, and Equipment [Member]
Non-cash investing activities
Costs included in accounts payable and accruals	$ 1,025,000	$ 2,002,000	$ 3,039,000

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 463,131	$ 281,200
Accounts receivable, net of allowances for bad debts and book returns of $7.5 million and $8.4 million, respectively	135,495	88,830
Inventories	117,469	145,553
Prepaid expenses and other assets	43,339	19,276
Assets of discontinued operations		160,053
Total current assets	759,434	694,912
Property, plant, and equipment, net	80,445	88,801
Pre-publication costs, net	150,652	202,820
Goodwill	437,977	437,977
Other intangible assets, net	360,290	402,484
Operating lease assets	110,572	126,850
Deferred income taxes	4,997	2,415
Deferred commissions	35,083	30,659
Other assets	34,830	34,208
Total assets	1,974,280	2,021,126
Current liabilities
Current portion of long-term debt		19,000
Accounts payable	37,449	38,751
Royalties payable	45,166	34,765
Salaries, wages, and commissions payable	41,253	21,723
Deferred revenue	357,864	342,605
Interest payable	11,235	11,017
Severance and other charges	405	19,590
Accrued pension benefits	185	1,593
Accrued postretirement benefits	1,618	1,555
Operating lease liabilities	7,539	9,669
Other liabilities	43,297	22,912
Liabilities of discontinued operations		30,662
Total current liabilities	546,011	553,842
Long-term debt, net of discount and issuance costs	317,579	624,692
Operating lease liabilities	127,426	132,014
Long-term deferred revenue	606,811	562,679
Accrued pension benefits	8,484	24,061
Accrued postretirement benefits	15,940	16,566
Deferred income taxes	21,393	16,411
Other liabilities	212	398
Total liabilities	1,643,856	1,930,663
Commitments and contingencies (Note 14)
Stockholders’ equity
Preferred stock, $0.01 par value: 20,000,000 shares authorized; no shares issued and outstanding at December 31, 2021 and 2020
Common stock, $0.01 par value: 380,000,000 shares authorized; 152,267,951 and 150,459,034 shares issued at December 31, 2021 and 2020, respectively; 127,690,917 and 125,882,000 shares outstanding at December 31, 2021 and 2020, respectively	1,523	1,505
Treasury stock, 24,577,034 shares as of December 31, 2021 and 2020, respectively, at cost	(518,030)	(518,030)
Capital in excess of par value	4,931,357	4,918,542
Accumulated deficit	(4,042,252)	(4,255,830)
Accumulated other comprehensive loss	(42,174)	(55,724)
Total stockholders’ equity	330,424	90,463
Total liabilities and stockholders’ equity	$ 1,974,280	$ 2,021,126