The Princeton Review Set to Exit SES Business
The Princeton Review, Inc. (Nasdaq: REVU), a leading provider of test preparation and online career education services, today announced that it will no longer participate in the SES business effective at the end of the current 2009 – 2010 school year. The Company intends to complete all SES tutoring programs in operation and will work with school districts under contract to ensure a smooth transition. This decision will not affect The Princeton Review’s Test Preparation business.
As part of this decision, The Princeton Review will close certain SES offices and offer severance to full-time employees of its SES business, and will incur lease and employee termination costs and other write-offs of approximately $2.6 million to be expensed and recorded in the quarters ended June 30, 2010 and September 30, 2010.
Recent philosophical changes at the state and federal levels have significantly altered the landscape for private SES providers, making both the short and long term growth opportunities less attractive.
“After careful evaluation of the long-term opportunities in the SES market, we decided that exiting the business after this school year is the best course of action for both The Princeton Review and for our current school district customers, who will have ample time to reach agreements with new SES partners for the 2010-2011 school year,” said Michael Perik, Chief Executive Officer of The Princeton Review. ”This decision also allows us to deploy our resources into other, higher potential business areas. I would like to thank our employees and our customers in the SES business for their loyal support and commitment to serving the needs of the students.”
The Princeton Review recently announced several strategic alliances designed to expand the scope of the Company’s offering and capitalize on developing business trends. In January, it announced a partnership with the National Labor College to provide career development courses to the 11.5 million AFL-CIO members and their families. In March the Company announced a new Allied Health Care Institute venture being developed in partnership with Bristol Community College of Massachusetts.
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Posted by Curtis Walters
on May 18 2010. Filed under Business, Featured News.
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