NEW YORK, March 19, 2020 /PRNewswire/ -- Scholastic
Corporation (NASDAQ: SCHL), the global children's publishing,
education and media company, today reported financial results for
the Company's fiscal third quarter ended February 29, 2020.
Third quarter revenue was $373.3
million, an increase of $13.2
million or 4%, compared to $360.1
million in the third quarter of 2019. The year-over-year
increase in revenues was led by the Company's education and trade
businesses, which grew sales 23% and 17%, respectively, compared to
the prior year period.
Operating loss in the third quarter was $60.0 million, compared to an operating loss of
$21.4 million a year ago, largely
attributable to a one-time $40.0
million non-cash write down of inventory primarily resulting
from lower anticipated requirements in the Company's school
channels, in addition to $3.2 million
in pre-tax severance. Excluding these one-time items, the operating
loss in the seasonally lower third quarter was $16.8 million, a 10% improvement from the prior
year period's operating loss of $18.7
million.
Net loss as reported for the current period was $43.3 million, versus a net loss in the prior
year period of $12.6 million. Loss
per diluted share in the third quarter was $1.25 compared to a loss per diluted share of
$0.36 in the third quarter of 2019.
Excluding one-time items, third quarter 2020 loss per diluted share
was $0.34, compared to loss per
diluted share of $0.32 in the third
quarter of 2019.
"Following our strong third quarter with revenue gains of 4% and
a threefold improvement in adjusted EBITDA, and year-to-date
results trending ahead of our fiscal year targets, Scholastic's
business in the fourth quarter will be affected by
coronavirus-related school closings mandated by states and
districts, which will impact our school-based businesses directly.
Given this situation, we will no longer be affirming guidance for
the fiscal year," said Richard
Robinson, Chairman, President and Chief Executive Officer.
"While revenues will be lower in the seasonally important fourth
quarter, we are taking aggressive actions to reduce operating
expenses throughout the Company, including the temporary closing of
warehousing and distribution centers, and a freeze on hiring,
travel and other discretionary spending not directly tied to
short-term revenue, while working hard to ensure the safety and
well-being of our staff worldwide. And still, we remain
dedicated to our mission, providing the children and schools we
serve free access to Scholastic's Learn at Home digital hub
with learning content for children from Pre-K to 12, which has seen
over eight million visitors in less than one week as parents turn
to Scholastic for resources to help their children learn at
home."
Mr. Robinson continued, "Scholastic has significant cash
reserves and access to liquidity, and we have implemented immediate
actions to protect our strong financial position in this period of
uncertainty by discontinuing all non-essential cash outlays and
deferring capital spending plans. Additionally, the one-time
non-cash excess inventory write-off taken in the quarter, and
associated changes in inventory policies, will result in more
efficient asset utilization, lower obsolescence expense and reduced
warehouse labor costs in future periods."
Fiscal 2020 View
Through the nine months ended February
29, 2020, the Company remained on course to achieve its
operating goals for 2020 fiscal year revenues and Adjusted EBITDA
(as defined in the accompanying tables). The Company's long-term
capital investment plan also remained on target, although project
spending is now being deferred to safeguard the Company's cash
position against lower business volumes. Despite this solid
performance to-date, the Company has advised that it cannot affirm
its current guidance ranges as a direct result of mandated school
closings in North America, the
Company's largest market. The Company has already taken actions to
help mitigate any adverse impact to profitability and cash flow in
its fiscal fourth quarter, including: (1) a freeze on all spending
not directly tied to short-term revenue; (2) reduced inventory
purchasing; (3) a reduction in labor costs; and (4) temporary
closures of warehousing and distribution centers in highly impacted
regions, while working proactively with schools to support them
through this period of disruption.
Overall Results
(In $ Millions)
|
3Q FY2020
|
3Q FY2019
|
|
As
Reported
|
One-Time
Items
|
Ex.
One-Times
|
Ex.
One-Times
|
Earnings (loss)
before taxes
|
$
(60.1)
|
$
(43.2)
|
$
(16.9)
|
$
(18.1)
|
Interest
(income) expense
|
(0.3)
|
-
|
(0.3)
|
(1.0)
|
Depreciation
and amortization
|
16.1
|
-
|
16.1
|
14.6
|
Amortization of
prepublication costs
|
6.7
|
-
|
6.7
|
5.9
|
Adjusted
EBITDA
|
$
(37.6)
|
$
(43.2)
|
$
5.6
|
$
1.4
|
The Company had a loss before taxes for the quarter ended
February 29, 2020 of $60.1 million compared to a loss before taxes of
$20.8 million in the third quarter of
the prior fiscal year, primarily reflecting the previously detailed
non-cash inventory adjustment. Adjusted EBITDA (a non-GAAP
performance measure defined in the accompanying tables and
reconciled to net income) for the third quarter of 2020 was
$5.6 million, compared to
$1.4 million in the third quarter of
2019, a three-fold improvement.
The Company also had higher depreciation and amortization
year-over-year, as expected, tied directly to the timing of new
technology platforms being placed into service. Margins in
the quarter were also impacted by the recently imposed import
tariffs, which increased the Company's cost of product.
Cash Flow and Cash Position
Net cash provided by operating activities was $29.7 million in the current fiscal quarter
compared to net cash provided by operating activities of
$21.0 million in the third quarter of
fiscal 2019, a 41% improvement. The Company had free cash flow (a
non-GAAP liquidity measure defined in the accompanying tables and
reconciled to net cash use) of $4.9
million in the current quarter, compared to a free cash use
of $10.4 million a year ago, mainly
as a result of more efficient working capital utilization and lower
facilities-related spending.
At quarter end, the Company's cash and cash equivalents exceeded
its total debt by $247.7 million,
compared to $327.1 million a year
ago. The lower net cash position is due, in part, to planned
capital spending, including technology investments aligned with the
Company's business operation systems transformation and next
generation point-of-sale machines for book fairs, as well as
facilities-related investments, including a warehouse consolidation
project in the UK.
The Company reacquired $13.0
million of its common stock in open market transactions
pursuant to SEC Rule 10b-18 and
distributed $5.2 million in dividends
over the course of the third fiscal quarter. For the nine months
ended February 29, 2020, the Company
has reacquired $32.7 million of its
shares in dollar terms.
Capital expenditures in the third quarter were $17.7 million, $2.0
million lower than the prior year period, mainly the result
of lower facilities-related investments, as expected.
Segment Results
All comparisons detailed in this section refer to operating
results for the third quarter ended February
29, 2020 versus the third quarter ended February 28, 2019.
Children's Book Publishing and Distribution
In $
millions
|
Third
Quarter
|
|
|
|
2020
|
2019
|
$ Change
|
% Change
|
Revenue
|
|
|
|
|
Book
Clubs
|
$
43.4
|
$
55.0
|
$
(11.6)
|
(21%)
|
Book
Fairs
|
100.1
|
97.4
|
2.7
|
3%
|
Trade
|
76.7
|
65.6
|
11.1
|
17%
|
Total
revenue
|
220.2
|
218.0
|
2.2
|
1%
|
Operating income /
(loss)
|
2.2
|
4.4
|
(2.2)
|
(50%)
|
Third quarter revenues rose $2.2
million, or 1%, to $220.2
million, driven by a 17% increase in trade on strong sales
of Dav Pilkey's Dog Man
titles, especially Dog Man: Fetch 22, which was a #1
best-seller in the quarter, as well as the first three Hunger
Games novels by Suzanne Collins
leading up to the series' new release later this spring, and our
Scholastic Early Learners line of Wipe Clean Workbooks.
Additional top sellers released in the current quarter were Be
You! by Peter H. Reynolds and
Mañanaland by Pam Muñoz Ryan. The growth in trade was offset
by a decline in club events held and revenue per event in the
Company's book clubs channel, while the book fairs business had a
3% growth in revenue versus the prior period quarter on higher
revenue per fair. Segment operating income was $2.2 million, as compared to $4.4 million, mainly reflecting the higher
contribution on the one-time media sale of Scholastic's evergreen
library of Clifford®
programming in the prior period.
Education
In $
millions
|
Third
Quarter
|
|
|
|
2020
|
2019
|
$ Change
|
% Change
|
Revenue
|
$
74.3
|
$
60.3
|
$
14.0
|
23%
|
Operating income /
(loss)
|
9.8
|
0.3
|
9.5
|
nm
|
For the current quarter, segment revenue was $74.3 million, compared to $60.3 million a year ago, an increase of
$14.0 million, or 23%. The
year-over-year increase was primarily driven by higher sales of the
Company's classroom book collections and core instruction products,
including Guided Reading Español and Leveled
Bookroom, as well as the delivery of more days of professional
learning services associated with Scholastic Literacy in the
current quarter. Additionally, classroom magazines saw higher
revenues in the quarter from its Scholastic News®
line of current events magazines, while sales of the Company's
digital subscription products were basically on par with the prior
year period. Segment operating income was $9.8 million, a $9.5
million increase versus the prior year period, driven by the
higher revenues in the quarter.
International
In $
millions
|
Third
Quarter
|
|
|
|
2020
|
2019
|
$ Change
|
% Change
|
Revenue
|
$
78.8
|
$
81.8
|
$
(3.0)
|
(4%)
|
Operating income /
(loss)
|
(3.7)
|
(3.0)
|
(0.7)
|
(23%)
|
Operating income /
(loss), before one-time items*
|
(3.7)
|
(2.5)
|
(1.2)
|
(48%)
|
* Please
refer to the non-GAAP financial tables attached
|
Third quarter revenue was $78.8
million, a $3.0 million, or
4%, decline from the prior year period. Excluding the $0.5 million unfavorable impact of foreign
exchange in the current fiscal quarter, segment revenues were
$2.5 million lower in the current
period with softness in the Company's direct-to-consumer selling
operations throughout Asia and
education business in China, which
were impacted by local actions taken to curtail the spread of the
coronavirus late in the quarter, as well as in the Canada book club channel primarily due to a
labor action in Ontario schools.
The Company's international trade business performed well in all
major markets. Operating loss for the quarter was $3.7 million, an increase of $0.7 million, as compared to an operating loss of
$3.0 million in the prior year
period, mainly the result of the lower revenues in the current
quarter.
Overhead
In $
millions
|
Third
Quarter
|
|
|
|
2020
|
2019
|
$ Change
|
% Change
|
Overhead
expense
|
$
68.3
|
$
23.1
|
$
(45.2)
|
nm
|
Overhead expense,
excluding one-time items*
|
25.1
|
20.9
|
(4.2)
|
(20%)
|
* Please
refer to the non-GAAP financial tables attached
|
Corporate overhead for the third fiscal quarter was $25.1 million, excluding one-time, mostly
non-cash items of $43.2 million,
pre-tax, which compared unfavorably with the $20.9 million recorded in the prior year period,
after excluding $2.2 million in
one-time items. The higher overhead expense in the current fiscal
quarter was primarily due to higher legal settlements and
corresponding defense costs related to legacy photo license
infringement claims that were resolved in the period, as well as
higher salary-related expenses. Non-recurring items reflected in
overhead in the current period included the $40.0 million non-cash inventory write-down
resulting from an organizational shift to centralized procurement
and change in the Company's inventory retention policies, as well
as restructuring severance of $3.2
million.
Year-to-Date Results
For the first nine months of fiscal 2020, revenue was
$1,203.1 million, compared to
$1,183.2 million in the prior year
period, an increase of $19.9 million,
or 2%. The Company reported a loss per diluted share in the first
nine months of the fiscal year of $0.89, compared to a loss per diluted share of
$0.07 a year ago. Excluding one-time
items of $1.03 and $0.16 per diluted share, respectively, which
included the previously mentioned $40
million non-cash inventory write-down in the current period,
the Company's earnings per diluted share was $0.15 in the first nine months of fiscal 2020
versus $0.09 in the prior year
period, an increase of 67%. The favorable current period's results,
excluding one-time items, are mainly attributable to the
contribution from strong trade and education sales in the first
nine months of fiscal 2020, and lower operating expenses in the
Company's domestic club and fairs channels as a result of business
process improvements, as well as increased sales tax collections in
clubs.
Adjusted EBITDA (as defined) for the first nine months of fiscal
2020 was $73.9 million, compared to
$60.1 million in the first nine
months of fiscal 2019, an increase of $13.8
million, or 23%, and primarily the result of higher reported
earnings, excluding one-time items, and higher depreciation and
amortization in the current year period.
Net cash provided by operating activities was $44.0 million in the first nine months of the
current fiscal year compared to $60.5
million in the same period last year. The Company had a free
cash use (as defined) of $25.9
million in the current fiscal year-to-date, compared to a
free cash use of $42.8 million in the
prior year period. The current year-to-date's free cash use
includes $48.4 million in capital
expenditures and $21.5 million in net
prepublication spend, both below prior year's levels.
Other Matters
The Company's Board of Directors has authorized an additional
$50 million for repurchases of its
common stock under the Company's stock repurchase program,
consistent with previous actions taken in 2018 and 2015. Under this
program, which will continue to be funded with available cash, the
Company may purchase shares, from time to time as conditions allow,
on the open market or in negotiated private transactions. This
authorization increases the aggregate amount of shares, in dollar
terms, which may be repurchased to $67.3
million, after giving effect to remaining amounts available
for share repurchases under previous authorizations. The actual
number of shares to be purchased and the timing and pricing of any
purchases under the share repurchase program will depend on future
market conditions and upon potential alternative uses for the
Company's available cash. There is no assurance that any shares
will be purchased under the share repurchase program and the
Company may elect to modify, suspend or discontinue the program at
any time without prior notice. Any common stock acquired through
the share repurchase program will be held as treasury shares and
may be used for general corporate purposes.
As previously announced, the Board of Directors also declared a
quarterly cash dividend of $0.15 per
share on the Company's Class A and Common Stock for the fourth
quarter of fiscal 2020. The dividend is payable on June 15, 2020 to shareholders of record as of the
close of business on April 30,
2020.
Additional Information
To supplement our financial statements presented in accordance
with GAAP, we include certain non-GAAP calculations and
presentations including, as noted above, "Adjusted EBITDA" and
"Free Cash Use". Please refer to the non-GAAP financial tables
attached to this press release for supporting details on one-time
items and the use of non-GAAP financial measures included in this
release. This information should be considered as supplemental in
nature and not as a substitute for the related financial
information prepared in accordance with GAAP.
Conference Call
The Company will hold a conference call to discuss its results
at 4:30 p.m. ET today, March 19, 2020. Scholastic's Chairman, President
and CEO, Richard Robinson, and
Kenneth Cleary, the Company's Chief
Financial Officer, will moderate the call.
The conference call and accompanying slides will be webcast and
accessible through the Investor Relations section of Scholastic's
website, www.scholastic.com. Participation by telephone will be
available by dialing (877) 654-5161 from within the U.S. or +1
(678) 894-3064 internationally. Shortly following the call, an
archived webcast and accompanying slides from the conference call
will also be posted to the Company's investor relations webpage at
www.investor.scholastic.com. An audio-only replay of the call will
be available by dialing (855) 859-2056 from within the U.S. or +1
(404) 537-3406 internationally, and entering access code 5685007.
The recording will be available through Friday, March 27, 2020.
About Scholastic
For 100 years, Scholastic Corporation (NASDAQ: SCHL) has been
encouraging the personal and intellectual growth of all children,
beginning with literacy. Having earned a reputation as a trusted
partner to educators and families, Scholastic is the world's
largest publisher and distributor of children's books, a leading
provider of literacy curriculum, professional services, and
classroom magazines, and a producer of educational and entertaining
children's media. The Company creates and distributes bestselling
books and e-books, print and technology-based learning programs for
pre-K to grade 12, and other products and services that support
children's learning and literacy, both in school and at home. With
15 international operations and exports to 165 countries,
Scholastic makes quality, affordable books available to all
children around the world through school-based book clubs and book
fairs, classroom libraries, school and public libraries, retail,
and online. Learn more at www.scholastic.com.
Forward-Looking Statements
This news release contains certain forward-looking statements
relating to future periods. Such forward-looking statements are
subject to various risks and uncertainties, including the
conditions of the children's book and educational materials markets
and acceptance of the Company's products within those markets, and
other risks and factors identified from time to time in the
Company's filings with the Securities and Exchange Commission.
Actual results could differ materially from those currently
anticipated.
SCHL: Financial
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Table 1
|
|
Scholastic
Corporation
|
|
|
Consolidated
Statements of Operations
|
|
|
(Unaudited)
|
|
|
(In $
Millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
NINE MONTHS
ENDED
|
|
|
|
|
|
02/29/20
|
02/28/19
|
|
|
02/29/20
|
02/28/19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$373.3
|
$360.1
|
|
|
$1,203.1
|
$1,183.2
|
|
|
|
|
|
|
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Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
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|
|
Cost of goods
sold
|
183.0
|
176.9
|
|
|
584.4
|
564.6
|
|
|
|
|
|
Selling, general and
administrative expenses (1)
|
191.9
|
189.3
|
|
|
567.5
|
578.6
|
|
|
|
|
|
Bad debt
expense
|
3.0
|
1.6
|
|
|
7.3
|
5.7
|
|
|
|
|
|
Depreciation and
amortization
|
15.4
|
13.7
|
|
|
46.2
|
41.3
|
|
|
|
|
|
Asset write down
(2)
|
40.0
|
-
|
|
|
40.0
|
-
|
|
|
|
|
|
|
|
|
|
|
|
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Total operating costs
and expenses
|
433.3
|
381.5
|
|
|
1,245.4
|
1,190.2
|
|
|
|
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|
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Operating income
(loss)
|
(60.0)
|
(21.4)
|
|
|
(42.3)
|
(7.0)
|
|
|
|
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|
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|
Interest income
(expense), net
|
0.3
|
1.0
|
|
|
1.0
|
2.3
|
|
|
|
|
Other components of
net periodic benefit (cost)
|
(0.4)
|
(0.4)
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|
|
(1.0)
|
(1.1)
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Earnings (loss)
before income taxes
|
(60.1)
|
(20.8)
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(42.3)
|
(5.8)
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Provision (benefit)
for income taxes (3)
|
(16.8)
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(8.2)
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(11.6)
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(3.5)
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Net income
(loss)
|
(43.3)
|
(12.6)
|
|
|
(30.7)
|
(2.3)
|
|
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Less: Net income
attributable to noncontrolling interests
|
-
|
-
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0.1
|
-
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Net income (loss)
attributable to Scholastic Corporation
|
($43.3)
|
($12.6)
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($30.8)
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($2.3)
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Basic and diluted
earnings (loss) per share of Class A and Common Stock
(4)
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Basic
|
($1.25)
|
($0.36)
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|
($0.89)
|
($0.07)
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Diluted
|
($1.25)
|
($0.36)
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($0.89)
|
($0.07)
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Basic weighted
average shares outstanding
|
34,544
|
35,265
|
|
|
34,750
|
35,204
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Diluted weighted
average shares outstanding
|
34,842
|
35,807
|
|
|
35,049
|
35,810
|
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(1)
|
In the three and nine
months ended February 29, 2020, the Company recognized pretax
severance of $3.2 and $6.9, respectively. In the nine months ended
February 29, 2020, the Company recognized a pretax charge of $1.0
related to a settlement of an intellectual property producing
agreement and a pretax settlement expense of $1.5. In the three and
nine months ended February 28, 2019, the Company recognized pretax
severance of $2.2 and $3.1, respectively and pretax branch
consolidation costs of $0.5 and $0.5, respectively. In the nine
months ended February 28, 2019, the Company recognized a $4.3
pretax charge related to a legacy sales tax assessment.
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(2)
|
In the three and nine
months ended February 29, 2020, the Company recognized a pretax
asset write down of $40.0 primarily resulting from lower
anticipated requirements in the Company's club and fair
channels.
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(3)
|
In the three and nine
months ended February 29, 2020, the Company recognized a benefit
for income taxes in respect to one-time pretax charges of $11.8 and
$13.5, respectively. In the three and nine months ended February
28, 2019, the Company recognized a benefit for income taxes in
respect to one-time pretax charges of $0.7 and $2.1, respectively
and $0.5 and $0.3, respectively, related to the remeasurement of
the Company's state deferred tax balances.
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(4)
|
Earnings (loss) per
share are calculated on non-rounded net income (loss) and shares
outstanding. Recalculating earnings per share based on numbers
rounded to millions may not yield the results as
presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 2
|
Scholastic
Corporation
|
|
Segment
Results
|
|
(Unaudited)
|
|
(In $
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
NINE MONTHS
ENDED
|
|
|
|
|
02/29/20
|
02/28/19
|
|
Change
|
|
02/29/20
|
02/28/19
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Children's Book
Publishing and Distribution
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Clubs
|
$43.4
|
$55.0
|
|
($11.6)
|
(21%)
|
|
$137.3
|
$165.4
|
|
($28.1)
|
(17%)
|
|
|
|
Book Fairs
|
100.1
|
97.4
|
|
2.7
|
3%
|
|
351.7
|
343.3
|
|
8.4
|
2%
|
|
|
|
Consolidated
Trade
|
76.7
|
65.6
|
|
11.1
|
17%
|
|
254.4
|
222.9
|
|
31.5
|
14%
|
|
|
|
Total
revenue
|
220.2
|
218.0
|
|
2.2
|
1%
|
|
743.4
|
731.6
|
|
11.8
|
2%
|
|
|
|
Operating income
(loss)
|
2.2
|
4.4
|
|
(2.2)
|
(50%)
|
|
70.1
|
64.7
|
|
5.4
|
8%
|
|
|
|
Operating
margin
|
1.0%
|
2.0%
|
|
|
|
|
9.4%
|
8.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
74.3
|
60.3
|
|
14.0
|
23%
|
|
192.6
|
179.7
|
|
12.9
|
7%
|
|
|
|
Operating income
(loss)
|
9.8
|
0.3
|
|
9.5
|
|
|
2.6
|
(6.3)
|
|
8.9
|
141%
|
|
|
|
Operating
margin
|
13.2%
|
0.5%
|
|
|
|
|
1.3%
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
78.8
|
81.8
|
|
(3.0)
|
(4%)
|
|
267.1
|
271.9
|
|
(4.8)
|
(2%)
|
|
|
|
Operating income
(loss)
|
(3.7)
|
(3.0)
|
|
(0.7)
|
|
|
4.3
|
8.0
|
|
(3.7)
|
(46%)
|
|
|
|
Operating
margin
|
-
|
-
|
|
|
|
|
1.6%
|
2.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overhead
expense
|
68.3
|
23.1
|
|
(45.2)
|
|
|
119.3
|
73.4
|
|
(45.9)
|
(63%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
($60.0)
|
($21.4)
|
|
($38.6)
|
|
|
($42.3)
|
($7.0)
|
|
($35.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 3
|
Scholastic
Corporation
|
|
Supplemental
Information
|
|
(Unaudited)
|
|
(In $
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Balance Sheet Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
02/29/20
|
02/28/19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$263.8
|
$338.1
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
281.2
|
317.3
|
|
|
|
|
|
|
|
|
Inventories,
net
|
307.7
|
356.8
|
|
|
|
|
|
|
|
|
Accounts
payable
|
187.9
|
215.3
|
|
|
|
|
|
|
|
|
Accrued
royalties
|
77.3
|
76.8
|
|
|
|
|
|
|
|
|
Lines of credit,
short-term debt and current portion of long-term debt
|
9.7
|
11.0
|
|
|
|
|
|
|
|
|
Long-term debt,
excluding current portion
|
6.4
|
-
|
|
|
|
|
|
|
|
|
Total debt
|
16.1
|
11.0
|
|
|
|
|
|
|
|
|
Total finance lease
obligations
|
12.1
|
10.5
|
|
|
|
|
|
|
|
|
Net debt
(1)
|
(247.7)
|
(327.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
1,199.3
|
1,269.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Cash Flow Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
NINE MONTHS
ENDED
|
|
|
|
|
02/29/20
|
02/28/19
|
|
|
02/29/20
|
02/28/19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
$29.7
|
$21.0
|
|
|
$44.0
|
$60.5
|
|
|
|
|
Less: Additions to property, plant
and equipment
|
17.7
|
19.7
|
|
|
48.4
|
71.0
|
|
|
|
|
Pre-publication and production costs
|
7.1
|
11.7
|
|
|
21.5
|
32.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow (use)
(2)
|
$4.9
|
($10.4)
|
|
|
($25.9)
|
($42.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Net debt is defined
by the Company as lines of credit and short-term debt plus
long-term-debt, net of cash and cash equivalents. The Company
utilizes this non-GAAP financial measure, and believes it is useful
to investors, as an indicator of the Company's effective leverage
and financing needs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Free cash flow (use)
is defined by the Company as net cash provided by or used in
operating activities (which includes royalty advances) and cash
acquired through acquisitions, reduced by spending on property,
plant and equipment and prepublication and production costs. The
Company believes that this non-GAAP financial measure is useful to
investors as an indicator of cash flow available for debt repayment
and other investing activities, such as acquisitions. The Company
utilizes free cash flow as a further indicator of operating
performance and for planning investing activities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 4
|
Scholastic
Corporation
|
|
Consolidated
Statements of Operations - Supplemental
|
|
Excluding
One-Time Items
|
|
(Unaudited)
|
|
(In $
Millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
|
|
|
Reported
|
One-time
|
Excluding
|
|
Reported
|
One-time
|
Excluding
|
|
|
|
|
|
|
|
02/29/20
|
items
|
One-time
items
|
|
02/28/19
|
items
|
One-time
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$373.3
|
$0.0
|
$373.3
|
|
$360.1
|
$0.0
|
$360.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
183.0
|
-
|
183.0
|
|
176.9
|
-
|
176.9
|
|
|
|
|
|
Selling, general and
administrative expenses (1)
|
|
191.9
|
(3.2)
|
188.7
|
|
189.3
|
(2.7)
|
186.6
|
|
|
|
|
|
Bad debt
expense
|
|
3.0
|
-
|
3.0
|
|
1.6
|
-
|
1.6
|
|
|
|
|
|
Depreciation and
amortization
|
|
15.4
|
-
|
15.4
|
|
13.7
|
-
|
13.7
|
|
|
|
|
|
Asset write down
(2)
|
|
40.0
|
(40.0)
|
-
|
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs
and expenses
|
|
433.3
|
(43.2)
|
390.1
|
|
381.5
|
(2.7)
|
378.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(60.0)
|
43.2
|
(16.8)
|
|
(21.4)
|
2.7
|
(18.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(expense), net
|
|
0.3
|
-
|
0.3
|
|
1.0
|
-
|
1.0
|
|
|
|
|
Other components of
net periodic benefit (cost)
|
|
(0.4)
|
-
|
(0.4)
|
|
(0.4)
|
-
|
(0.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before income taxes
|
|
(60.1)
|
43.2
|
(16.9)
|
|
(20.8)
|
2.7
|
(18.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes (3)
|
|
(16.8)
|
11.8
|
(5.0)
|
|
(8.2)
|
1.2
|
(7.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(43.3)
|
31.4
|
(11.9)
|
|
(12.6)
|
1.5
|
(11.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to noncontrolling interests
|
|
-
|
-
|
-
|
|
0.0
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Scholastic Corporation
|
|
($43.3)
|
$31.4
|
($11.9)
|
|
($12.6)
|
$1.5
|
($11.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
($1.25)
|
$0.91
|
($0.34)
|
|
($0.36)
|
$0.04
|
($0.32)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NINE MONTHS
ENDED
|
|
|
|
|
|
|
Reported
|
One-time
|
Excluding
|
|
Reported
|
One-time
|
Excluding
|
|
|
|
|
|
|
|
02/29/20
|
items
|
One-time
items
|
|
02/28/19
|
items
|
One-time
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$1,203.1
|
$0.0
|
$1,203.1
|
|
$1,183.2
|
$0.0
|
$1,183.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
584.4
|
-
|
584.4
|
|
564.6
|
-
|
564.6
|
|
|
|
|
|
Selling, general and
administrative expenses (1)
|
|
567.5
|
(9.4)
|
558.1
|
|
578.6
|
(7.9)
|
570.7
|
|
|
|
|
|
Bad debt
expense
|
|
7.3
|
-
|
7.3
|
|
5.7
|
-
|
5.7
|
|
|
|
|
|
Depreciation and
amortization
|
|
46.2
|
-
|
46.2
|
|
41.3
|
-
|
41.3
|
|
|
|
|
|
Asset write down
(2)
|
|
40.0
|
(40.0)
|
-
|
|
0.0
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs
and expenses
|
|
1,245.4
|
(49.4)
|
1,196.0
|
|
1,190.2
|
(7.9)
|
1,182.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(42.3)
|
49.4
|
7.1
|
|
(7.0)
|
7.9
|
0.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(expense), net
|
|
1.0
|
-
|
1.0
|
|
2.3
|
-
|
2.3
|
|
|
|
|
Other components of
net periodic benefit (cost)
|
|
(1.0)
|
-
|
(1.0)
|
|
(1.1)
|
-
|
(1.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before income taxes
|
|
(42.3)
|
49.4
|
7.1
|
|
(5.8)
|
7.9
|
2.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes (3)
|
|
(11.6)
|
13.5
|
1.9
|
|
(3.5)
|
2.4
|
(1.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(30.7)
|
35.9
|
5.2
|
|
(2.3)
|
5.5
|
3.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to noncontrolling interests
|
|
0.1
|
-
|
0.1
|
|
0.0
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Scholastic Corporation
|
|
($30.8)
|
$35.9
|
$5.1
|
|
($2.3)
|
$5.5
|
$3.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
($0.89)
|
$1.03
|
$0.15
|
|
($0.07)
|
$0.16
|
$0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
In the three and nine
months ended February 29, 2020, the Company recognized pretax
severance of $3.2 and $6.9, respectively. In the nine months ended
February 29, 2020, the Company recognized a pretax charge of $1.0
related to a settlement of an intellectual property producing
agreement and a pretax settlement expense of $1.5. In the three and
nine months ended February 28, 2019, the Company recognized pretax
severance of $2.2 and $3.1, respectively and pretax branch
consolidation costs of $0.5 and $0.5, respectively. In the nine
months ended February 28, 2019, the Company recognized a $4.3
pretax charge related to a legacy sales tax assessment.
|
|
|
|
|
|
|
(2)
|
In the three and nine
months ended February 29, 2020, the Company recognized a pretax
asset write down of $40.0 primarily resulting from lower
anticipated requirements in the Company's club and fair
channels.
|
|
|
|
|
|
|
(3)
|
In the three and nine
months ended February 29, 2020, the Company recognized a benefit
for income taxes in respect to one-time pretax charges of $11.8 and
$13.5, respectively. In the three and nine months ended February
28, 2019, the Company recognized a benefit for income taxes in
respect to one-time pretax charges of $0.7 and $2.1, respectively
and $0.5 and $0.3, respectively, related to the remeasurement of
the Company's state deferred tax balances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5
|
Scholastic
Corporation
|
|
Consolidated
Statements of Operations - Supplemental
|
|
Adjusted
EBITDA
|
|
(Unaudited)
|
|
(In $
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
|
|
|
02/29/20
|
|
02/28/19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before income taxes as reported
|
|
($60.1)
|
|
|
($20.8)
|
|
|
|
|
One-time items before
income taxes
|
|
43.2
|
|
|
2.7
|
|
|
|
|
Earnings (loss)
before income taxes excluding one-time items
|
|
(16.9)
|
|
|
(18.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (income)
expense
|
|
(0.3)
|
|
|
(1.0)
|
|
|
|
|
|
Depreciation and
amortization (1)
|
|
16.1
|
|
|
14.6
|
|
|
|
|
|
Amortization of
prepublication and production costs
|
|
6.7
|
|
|
5.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
|
$5.6
|
|
|
$1.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NINE MONTHS
ENDED
|
|
|
|
|
|
|
02/29/20
|
|
02/28/19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before income taxes as reported
|
|
($42.3)
|
|
|
($5.8)
|
|
|
|
|
One-time items before
income taxes
|
|
49.4
|
|
|
7.9
|
|
|
|
|
Earnings (loss)
before income taxes excluding one-time items
|
|
7.1
|
|
|
2.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (income)
expense
|
|
(1.0)
|
|
|
(2.3)
|
|
|
|
|
|
Depreciation and
amortization (1)
|
|
48.1
|
|
|
43.7
|
|
|
|
|
|
Amortization of
prepublication and production costs
|
|
19.7
|
|
|
16.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
|
$73.9
|
|
|
$60.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
For the three and
nine months ended February 29, 2020, amounts include depreciation
of $0.6 and $1.7, respectively, recognized in cost of goods sold,
amortization of deferred financing costs of $0.1 and $0.2,
respectively, and amortization of capitalized cloud software of
$0.0 recognized in selling, general and administrative expenses. In
the three and nine months ended February 28, 2019, amounts include
depreciation of $0.8 and $2.2, respectively, recognized in cost of
goods sold, and amortization of deferred financing costs of $0.1
and $0.2, respectively, recognized in selling, general and
administrative expenses.
|
|
|
|
|
|
|
(2)
|
Adjusted EBITDA is
defined by the Company as earnings (loss), excluding one-time
items, before interest, taxes, depreciation and amortization. The
Company believes that Adjusted EBITDA is a meaningful measure of
operating profitability and useful for measuring returns on capital
investments over time as it is not distorted by unusual gains,
losses, or other items.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 6
|
Scholastic
Corporation
|
|
Segment
Results - Supplemental
|
|
Excluding
One-Time Items
|
|
(Unaudited)
|
|
(In $
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
|
|
|
|
Reported
|
One-time
|
Excluding
|
|
Reported
|
One-time
|
Excluding
|
|
|
|
|
|
|
|
|
02/29/20
|
items
|
One-time
items
|
|
02/28/19
|
items
|
One-time
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Children's Book
Publishing and Distribution
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Clubs
|
|
$43.4
|
|
$43.4
|
|
$55.0
|
|
$55.0
|
|
|
|
|
|
|
Book Fairs
|
|
100.1
|
|
100.1
|
|
97.4
|
|
97.4
|
|
|
|
|
|
|
Consolidated
Trade
|
|
76.7
|
|
76.7
|
|
65.6
|
|
65.6
|
|
|
|
|
|
|
Total
revenue
|
|
220.2
|
|
220.2
|
|
218.0
|
|
218.0
|
|
|
|
|
|
|
Operating income
(loss)
|
|
2.2
|
-
|
2.2
|
|
4.4
|
-
|
4.4
|
|
|
|
|
|
|
Operating
margin
|
|
1.0%
|
|
1.0%
|
|
2.0%
|
|
2.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
74.3
|
|
74.3
|
|
60.3
|
|
60.3
|
|
|
|
|
|
|
Operating income
(loss)
|
|
9.8
|
-
|
9.8
|
|
0.3
|
-
|
0.3
|
|
|
|
|
|
|
Operating
margin
|
|
13.2%
|
|
13.2%
|
|
0.5%
|
|
0.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
78.8
|
|
78.8
|
|
81.8
|
|
81.8
|
|
|
|
|
|
|
Operating income
(loss) (1)
|
|
(3.7)
|
-
|
(3.7)
|
|
(3.0)
|
0.5
|
(2.5)
|
|
|
|
|
|
|
Operating
margin
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overhead expense
(2)
|
|
68.3
|
(43.2)
|
25.1
|
|
23.1
|
(2.2)
|
20.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
($60.0)
|
$43.2
|
($16.8)
|
|
($21.4)
|
$2.7
|
($18.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NINE MONTHS
ENDED
|
|
|
|
|
|
|
|
Reported
|
One-time
|
Excluding
|
|
Reported
|
One-time
|
Excluding
|
|
|
|
|
|
|
|
|
02/29/20
|
items
|
One-time
items
|
|
02/28/19
|
items
|
One-time
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Children's Book
Publishing and Distribution
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Clubs
|
|
$137.3
|
|
$137.3
|
|
$165.4
|
|
$165.4
|
|
|
|
|
|
|
Book Fairs
|
|
351.7
|
|
351.7
|
|
343.3
|
|
343.3
|
|
|
|
|
|
|
Consolidated
Trade
|
|
254.4
|
|
254.4
|
|
222.9
|
|
222.9
|
|
|
|
|
|
|
Total
revenue
|
|
743.4
|
|
743.4
|
|
731.6
|
|
731.6
|
|
|
|
|
|
|
Operating income
(loss)
|
|
70.1
|
-
|
70.1
|
|
64.7
|
-
|
64.7
|
|
|
|
|
|
|
Operating
margin
|
|
9.4%
|
|
9.4%
|
|
8.8%
|
|
8.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
192.6
|
|
192.6
|
|
179.7
|
|
179.7
|
|
|
|
|
|
|
Operating income
(loss)
|
|
2.6
|
-
|
2.6
|
|
(6.3)
|
-
|
(6.3)
|
|
|
|
|
|
|
Operating
margin
|
|
1.3%
|
|
1.3%
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
267.1
|
|
267.1
|
|
271.9
|
|
271.9
|
|
|
|
|
|
|
Operating income
(loss) (1)
|
|
4.3
|
-
|
4.3
|
|
8.0
|
0.5
|
8.5
|
|
|
|
|
|
|
Operating
margin
|
|
1.6%
|
|
1.6%
|
|
2.9%
|
|
3.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overhead expense
(2)
|
|
119.3
|
(49.4)
|
69.9
|
|
73.4
|
(7.4)
|
66.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
($42.3)
|
$49.4
|
$7.1
|
|
($7.0)
|
$7.9
|
$0.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
In the three and nine
months ended February 28, 2019, the Company recognized pretax
branch consolidation costs of $0.5.
|
|
|
|
|
|
|
(2)
|
In the three and nine
months ended February 29, 2020, the Company recognized a pretax
asset write down of $40.0 primarily resulting from lower
anticipated requirements in the Company's club and fair channels
and pretax severance of $3.2 and $6.9, respectively. In the nine
months ended February 29, 2020, the Company recognized a pretax
charge of $1.0 related to a settlement of an intellectual property
producing agreement and a pretax settlement expense of $1.5. In the
three and nine months ended February 28, 2019, the Company
recognized pretax severance of $2.2 and $3.1, respectively. In the
nine months ended February 28, 2019, the Company recognized a $4.3
pretax charge related to a legacy sales tax assessment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/scholastic-reports-fiscal-2020-third-quarter-results-301027061.html
SOURCE Scholastic Corporation