They are starting to regain some rankings, but only for various other subpages. I looked into Webmaster Tools and noticed 81% of the linked pages listed in there were to those two URLs.
This made me think it wasn't a Penguin 1.1 hammering, but just a simple algo filter that could be removed if more links were built to their other 20+ subpages, however, I've never come across a filter that removes rankings for specific URLs, so I figured I'd ask some of you for your opinions on the matter.
I've scoured the whole website and the only thing about the website that caused me concern was the majority of backlinks going to just those two URLs. The on-page is okay, nothing spammy about it or their backlinks...just a regular business website.