Archipelago Learning (ARCL) 10-K 2011 FY Annual report

Exhibit 99.1

Schedule Condensed Financial Information of Registrant

Schedule I Condensed Financial Information of Registrant

ARCHIPELAGO LEARNING, INC.

BALANCE SHEETS

	As of December 31,
	2011		2010
	(in thousands)
Assets
Cash and cash equivalents	$	15,411	$	15,373
Deferred tax assets		—		2,875
Receivable from subsidiary		382		200
Note receivable from subsidiary		25,650		25,650
Investment in subsidiaries		80,903		66,173
Total assets	$	122,346	$	110,271
Liabilities and Equity
Income taxes payable	$	157	$	—
Long-term deferred tax liabilities		—		2,954
Total liabilities		157		2,954
Commitments and contingencies
Stockholders’ Equity:
Preferred stock ($0.001 par value, 10,000,000 shares authorized, none issued and outstanding at December 31, 2011 and 2010)		—		—
Common stock ($0.001 par value, 200,000,000 shares authorized, 26,340,135 and 26,354,198 shares issued and outstanding at December 31, 2011 and 2010, respectively)		26		26
Additional paid-in capital		98,356		95,395
Accumulated other comprehensive income		1,497		1,531
Retained earnings		22,310		10,365
Total stockholders’ equity		122,189		107,317
Total liabilities and stockholders’ equity	$	122,346	$	110,271

STATEMENTS OF INCOME

	Years Ended December 31,
	2011		2010
	(in thousands)
Interest income	$	220	$	253
Gain on investment in subsidiaries		11,802		3,299
Net income before tax		12,022		3,552
Provision for income tax		77		100
Net income	$	11,945	$	3,452

STATEMENTS OF CASH FLOWS

	Years Ended December 31,
	2011			2010
	(in thousands)
Cash flows from operating activities
Net income	$	11,945		$	3,452
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Accrued interest on intercompany note		(182	)		(182	)
Deferred income taxes		(80	)		79
Gain on investment in subsidiary		(11,802	)		(3,299	)
Changes in operating assets and liabilities:
Investment in subsidiaries		—			(32,792	)
Change in taxes payable		157			(540	)
Net cash provided by (used in) operating activities		38			(33,282	)
Cash flows from investing activities
Net cash used in investing activities		—			—
Cash flows from financing activities
Net cash provided by financing activities		—			—
Net change in cash and cash equivalents		38			(33,282	)
Beginning of period		15,373			48,655
End of period	$	15,411		$	15,373