What is the current Varsity Grp (MM) share price?

The current share price of Varsity Grp (MM) is US$ 0.197

What is the 1 year trading range for Varsity Grp (MM) share price?

Varsity Grp (MM) has traded in the range of US$ 0.00 to US$ 0.00 during the past year

Varsity【VSTY】銘柄情報

期間 †	前日比	前日比 %	始値	高値	安値	平均出来高	VWAP
1	0	0	0	0	0	0	0	CS
4	0	0	0	0	0	0	0	CS
12	0	0	0	0	0	0	0	CS
26	0	0	0	0	0	0	0	CS
52	0	0	0	0	0	0	0	CS
156	0	0	0	0	0	0	0	CS
260	0	0	0	0	0	0	0	CS

期間 †

前日比

前日比 %

始値

高値

安値

平均出来高

VWAP

156

260

Varsity Group Inc. Reports Third Quarter Results
Varsity Group Inc. (NASDAQ: VSTY) today reported financial results for the third quarter of 2007. Net revenue decreased 17.2%, or $8.1 million, to $39.1 million for the three months ended September 30, 2007. This revenue decrease included a decrease of $6.2 million for the book operations and a decrease of $1.3 million from the uniform business. Pre-tax income was $3.2 million, a 32.6% increase from the pre-tax income of $2.4 million recorded for the third quarter of 2006. Net income was $3.2 million, or $0.17 per diluted share, for the three months ending September 30, 2007, compared to a net loss of $15.6 million, or $(0.86) per diluted share, for the three months ending September 30, 2006.

Non-GAAP operating income in the third quarter of 2007 increased 23.8% to $3.7 million, compared with $3.0 million in the same period last year. Non-GAAP operating figures exclude depreciation and amortization expense, interest income and expense, income taxes, and SFAS 123(R) stock-based compensation expense.

Varsity Group Chief Financial Officer, President and CEO Jim Craig commented, "While we are disappointed in our third quarter revenue performance, we believe strides made during 2007 to improve the customer experience while reducing costs will contribute significantly to future performance."

This press release includes certain non-GAAP financial measures that involve adjustments to GAAP figures. Varsity Group believes that these non-GAAP financial measures, when considered together with the GAAP figures, can enhance an overall understanding of Varsity Group's past performance. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for GAAP figures. A reconciliation of the non-GAAP to GAAP figures follows this press release.

ABOUT VARSITY GROUP INC.

Varsity Group Inc. is an outsource solution provider to education institutions nationwide. Under the brands Varsity Books and Campus Outfitters, Varsity provides solutions that enable schools to focus on their core educational mission. Varsity Group's solutions include online textbook, school supply and full-service school uniform services.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Varsity Group's business that are not historical facts are "Forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2006.

VARSITY GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)

Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Net sales:
Textbooks $ 32,377 $ 38,564 $ 34,261 $ 40,721
Uniforms 3,825 5,131 5,048 6,740
Solutions -- 126 -- 217
Shipping 2,856 3,344 3,119 3,659
--------- --------- --------- ---------
Total net sales 39,058 47,165 42,428 51,337
--------- --------- --------- ---------

Operating expenses:
Cost of textbooks 21,730 25,998 22,827 27,506
Cost of uniforms 2,015 3,004 2,696 3,736
Cost of solutions -- 68 -- 104
Cost of shipping 2,888 3,294 3,235 3,675
Sales and marketing 6,517 9,064 10,035 12,617
General and administrative 2,602 3,282 6,362 7,373
Amortization of acquired
intangibles -- 66 -- 163
--------- --------- --------- ---------
Total operating expenses 35,752 44,776 45,155 55,174
--------- --------- --------- ---------

Income (loss) from operations 3,306 2,389 (2,727) (3,837)
--------- --------- --------- ---------

Other (expense) income, net:
Interest (expense) income,
net (34) 48 (80) 265
Other (expense), net (51) (8) (90) (7)
--------- --------- --------- ---------
Other (expense), income, net (85) 40 (170) 258
--------- --------- --------- ---------

Income (loss) before income
taxes 3,221 2,429 (2,897) (3,579)

Income tax expense (1) (18,031) (16) (15,574)
--------- --------- --------- ---------

Net income (loss) $ 3,220 $ (15,602) $ (2,913) $ (19,153)
========= ========= ========= =========

Net income (loss) per share:
Basic $ 0.17 $ (0.86) $ (0.16) $ (1.09)
========= ========= ========= =========
Diluted $ 0.17 $ (0.86) $ (0.16) $ (1.09)
========= ========= ========= =========

Weighted average shares:
Basic 18,961 18,254 18,682 17,646
========= ========= ========= =========
Diluted 19,001 18,254 18,682 17,646
========= ========= ========= =========

VARSITY GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)

September 30, December 31,
2007 2006
------------- -------------
ASSETS
Current Assets:
Cash and cash equivalents $ 70 $ 436
Restricted cash 2,050 --
Short-term investments -- 2,498
Accounts receivable, net 3,243 1,673
Inventory 8,550 8,636
Other 3,451 2,532
------------- -------------
Total current assets 17,364 15,775

Property, plant and equipment, net 697 1,156
Software developed for internal use, net 2,326 2,090
Intangible assets, net of amortization 5 8
Goodwill 511 511
Long-term investments -- 3,949
Other assets 209 159
------------- -------------
Total assets $ 21,112 $ 23,648
============= =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 4,329 $ 2,384
Line of credit 2,172 --
Margin loan -- 4,205
Other accrued expenses and other current
liabilities 2,209 2,654
Taxes payable 480 56
------------- -------------
Total current liabilities 9,190 9,299
Long-term liabilities:
Other non-current liabilities 190 157
------------- -------------
Total liabilities 9,380 9,456
------------- -------------

Commitments and contingencies
Stockholders' equity:
Preferred stock -- --
Common stock 2 2
Additional paid-in capital 91,171 90,721
Accumulated unrealized loss on securities -- (2)
Accumulated deficit (77,708) (74,796)
Treasury stock (1,733) (1,733)
------------- -------------
Total stockholders' equity 11,732 14,192
------------- -------------
Total liabilities and stockholders' equity $ 21,112 $ 23,648
============= =============

VARSITY GROUP INC.
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP OPERATING LOSS
(in thousands)

Three months ended Nine months ended
September 30, September 30,
2007 2006 2007 2006
--------- -------- -------- --------
Net income (loss), as reported 3,220 (15,602) (2,913) (19,153)
--------- -------- -------- --------
Adjustments:
Depreciation and Amortization 298 416 831 934
Interest expense (income) 34 (48) 79 (265)
Income taxes (benefit) 1 18,031 17 15,574
SFAS 123(R) stock-based
compensation 135 182 327 379
--------- -------- -------- --------
Total Non-GAAP adjustments 468 18,581 1,254 16,622
--------- -------- -------- --------
Non-GAAP operating loss (a) 3,688 2,979 (1,659) (2,531)
--------- -------- -------- --------

(a) Non-GAAP operating loss for this financial presentation represents net
loss from continuing operations for the respective periods excluding
depreciation and amortization expense, interest expense (income),
income taxes (benefit) and SFAS 123(R) stock-based compensation.

Management believes these non-GAAP financial measures, when considered
together with the GAAP figures, can enhance an overall understanding of
Varsity Group’s past performance. These non-GAAP financial measures
are not intended to be considered in isolation or as a substitute for
GAAP figures.

Contact:
Jim Craig
Chief Financial Officer
President and CEO
Email Contact
202-349-1231

Source: Marketwire (November 14, 2007 - 4:15 PM EST)

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