NEW YORK, July 20, 2017 /PRNewswire/ -- Scholastic
Corporation (NASDAQ: SCHL), the global children's publishing,
education and media company, today reported financial results for
the Company's fiscal fourth quarter and full year ended
May 31, 2017.
Fiscal 2017 Highlights
- Revenues grew 4% to $1.74
billion. Excluding the impact of foreign exchange, revenue
increased 5% versus the prior year period. Domestic trade
publishing revenues were up 45% on the performance of new
Harry Potter publishing and other
strong titles, including Dav
Pilkey's Captain Underpants and Dog Man series, while
children's trade publishing saw growth across international
markets.
- Education revenues increased 4% for the year and 12% in the
fourth quarter, driven by continued higher levels of market
penetration for the Company's balanced literacy programs, including
core guided reading and summer reading.
- Operating income from continuing operations was $88.9 million, up 32% from $67.6 million in the prior year. Excluding
one-time items, operating income from continuing operations was
$109.1 million, up 17% from prior
year. Operating margins improved in all three segments.
- Earnings per diluted share from continuing operations increased
17% to $1.48. Excluding one-time
items, earnings per diluted share was $1.83, an increase of 8% versus the prior year
period, exceeding guidance.
"In fiscal 2017, operating income grew by 17% driven by the
strong performance in trade in the first half of the year and the
strong finish in our Education business in the fourth quarter,"
said Richard Robinson, Chairman,
President and Chief Executive Officer. "We continue to see an
expanding market for our core Pre-K to 6 reading programs as a
substitute for basal textbooks, and we are in a strong position to
continue to grow market share with our comprehensive literacy
curriculum and professional learning services.
"Looking forward, we have launched Scholastic 2020, a
three-year plan to significantly improve operating income as we
approach our 100th anniversary in October
2020. This plan will align our investments in transformative
technology with our operations and publishing groups in order to
reduce costs, simplify business processes, and improve the use of
data analytics for more efficient marketing and sales. The
Scholastic 2020 plan will be based on a concentrated cross
company process which will both help manage our technology and
ensure that we work cooperatively on reaching specific goals
utilizing the information provided.
Mr. Robinson continued, "While we expect fiscal 2018 to show
lower results, particularly after the 2017 breakout performance of
the new Harry Potter titles, as well
as higher costs in technology, we anticipate double digit growth in
operating income in the following years as a result of the 2020
plan to drive process improvements across the company. This is
particularly important because Scholastic's book club and book fair
distribution programs include significant costs of handling,
fulfillment, and freight which need to be constantly managed for
greater efficiency. As we generate better-quality information as a
result of our investments in technology, we will realize lower
costs in our marketing and operations, as well as the benefits of
better digital communications with our customers so we can continue
to provide great products and services to schools and
families."
Fourth Quarter 2017 Results – Continuing Operations
Scholastic reported fourth quarter 2017 revenues of $499.6 million, a decrease of $14.2 million, or 3%, compared to $513.8 million in the fourth quarter of 2016,
reflecting lower sales in Children's Book Publishing and
Distribution and International, partially offset by higher sales in
Education on increased demand for the Company's core instruction
and summer literacy programs, along with the continued strength of
classroom books and magazines. Operating income in the fourth
quarter increased 10% to $64.2
million, compared to $58.4
million a year ago, on increased education sales and lower
costs. Earnings from continuing operations were $1.11 per diluted share, compared to $1.00 per diluted share in the fourth quarter of
2016.
Excluding one-time items (as detailed below), operating income
for the fourth quarter was $75.6
million, compared to $71.1
million a year ago, an increase of 6%. Fourth quarter
earnings per diluted share from continuing operations excluding
one-time items were $1.31 versus
$1.22 in the prior year period, an
increase of 7%.
Fiscal Year 2017 Results – Continuing Operations
Total revenues in 2017 were $1.74
billion, an increase of 4% from $1.67
billion in 2016, reflecting higher sales in all three
segments – Children's Book Publishing and Distribution, Education,
and International. Operating income from continuing operations for
the full year was $88.9 million,
compared to $67.6 million in 2016.
Earnings per diluted share from continuing operations were
$1.48 for the fiscal year, compared
to $1.26 in the prior year, which
include one-time charges of $0.35 and
$0.44 per diluted share,
respectively.
Excluding one-time items, operating income was $109.1 million, compared to $93.4 million a year ago, an increase of 17%. For
2017, earnings per diluted share from continuing operations
excluding one-time items were $1.83
versus $1.70 in 2016, an increase of
8%.
Cash Flow and Cash Position
Net cash provided by operating activities was $141.4 million in the current fiscal year
compared to net cash used in operating activities of $78.9 million in fiscal 2016. The Company had
free cash flow (as defined in the accompanying tables) of
$48.8 million in the current fiscal
year, compared to a free cash flow use (as defined) of $139.7 million in fiscal 2016. Free cash flow in
fiscal 2017 was at the high end of the Company's previously
reported guidance range of $40 to $50
million. At year-end, the Company's cash and cash
equivalents exceeded the Company's total debt by $437.9 million, compared to $393.4 million a year ago. The higher net cash
position is primarily due to the above-mentioned free cash flow,
which included $65.7 million in
capital expenditures, along with proceeds from employee stock
plans, partially offset by returns of capital to Company's
shareholders and bolt-on acquisitions.
The Company distributed $20.8
million in dividends and reacquired $7.0 million of its common stock in open market
transactions over the course of the fiscal year.
Acquisitions
The Company made two acquisitions aligned with its strategy to
expand its product offerings and extend its geographic reach,
including Ooka Island, a Canada-based developer of foundational skills
adaptive reading programs using gaming technology, and a small
regional book fairs operator in Northern
California.
One-Time Items
Non-recurring items reflected in the Company's pre-tax results
for the fiscal year totaled $20.2
million and included $12.9
million for one-time severance charges associated with the
Company's continuing cost reduction programs, the non-cash
write-down of certain legacy website development and prepublication
assets for $6.8 million, and
$0.5 million in costs related to the
wind-down of its software distribution business in Australia, as previously reported.
$11.4 million of these one-time
charges were recorded in the fourth quarter. Non-recurring items
reflected in the prior year pre-tax results totaled $25.8 million, of which $12.7 million were recorded in the fourth quarter
of fiscal 2016.
Fourth Quarter and Fiscal 2017 Segment Results
Children's Book Publishing and Distribution. Segment
revenues for the fiscal year increased $51.2
million, or 5%, to $1,052.1
million, as compared to the prior year, driven by a 45%
sales increase in trade. Sales gains were largely due to the
outstanding success of new Harry
Potter-related publishing and a strong core list of
children's titles including Dav
Pilkey's Captain Underpants and Dog Man series, partially
offset by reduced sales of adult coloring books in the Company's
trade channel and lower book fairs and book club revenues. Fourth
quarter sales were down $16.9
million, or 6%, versus the fourth quarter of 2016, as the
increase in Harry Potter-related
revenues occurred in the first half of the fiscal year. Operating
income for the year was $143.1
million, an increase of $22.5
million, or 19%, as compared to the prior year, including
the impact of $1.5 million of
one-time items in 2016. Segment operating income in the fourth
quarter declined $6.1 million, or
11%, as compared to the prior year period. Trade publishing ended
the fourth quarter with high demand for books from the Captain
Underpants series in advance of the release of the DreamWorks
Animation film based on the series in early June.
Education. Segment revenues for both the quarter and
fiscal year were driven by higher sales, particularly in balanced
literacy programs and classroom magazines. For the fiscal year,
segment revenue was $312.7 million,
compared to $299.7 million a year
ago, a 4% improvement. Segment revenue in the fourth quarter was
$126.3 million, an increase of
$13.3 million, or 12%, versus the
prior period revenue of $113.0
million. Segment operating income improved by 18% to
$50.7 million in fiscal 2017, up from
$42.8 million in fiscal 2016,
including one-time charges related to the write-down of legacy
prepublication assets of $1.1 million
in 2017 and $6.9 million in the prior
fiscal year. Segment operating income for the quarter was
$42.9 million, including the one-time
charges of $1.1 million noted above,
compared to $39.1 million in the
fourth quarter of fiscal 2016, an increase of 10%, driven mainly by
sales of core guided reading programs and summer reading products,
including the breakthrough summer literacy service, LitCamp. Other
standouts in the quarter included two professional books, The
Next Step Forward in Guided Reading and Disruptive Thinking:
Why How We Read Matters, as well as the Company's Next Step
Guided Reading Assessment product.
International. Segment revenues for the fiscal year
improved $4.6 million, or 1%, to
$376.8 million, compared to
$372.2 million in the prior year, as
a result of new Harry Potter content
in Canada and Export, and the
strength of trade publishing in Australia, Canada, the United
Kingdom and Asia. Sales in
the fourth quarter declined $10.6
million, or 10%, versus the prior year period due in part to
the Company's planned exit from a low margin software distribution
business in Australia, which
accounted for a revenue decline of $3.1
million and $15.9 million for
the quarter and full year, as well as softer performance in
the Philippines and Thailand, partially offset by higher trade
results in Canada driven by strong
demand for its Canada-themed books
in celebration of Canada's
150th birthday this month. Segment operating income in
fiscal 2017 was $18.7 million,
including one-time restructuring severance expense of $1.4 million, compared to $11.4 million in fiscal 2016, which included
one-time charges of $0.9 million.
Excluding these one-time items in both years, segment operating
income rose $7.8 million, or 63%.
Operating income for the quarter was $2.2
million versus $4.3 million in
the fourth quarter of fiscal 2016, including one-time charges of
$0.7 million in each
period.
Other Financial Results. Corporate overhead for the
fiscal year was $105.9 million,
excluding one-time items of $17.7
million, pre-tax, which included restructuring severance
charges of $12.0 million and
$5.7 million for the write-down of
legacy website development assets, which compared unfavorably with
the $90.7 million recorded in the
prior year, after excluding $16.5
million in one-time items. The higher overhead expense in
the current fiscal year was primarily due to higher strategic
technology spending, as planned, partially offset by realized
savings from cost reduction programs.
As previously announced, the Company's Board of Directors
declared a quarterly cash dividend of $0.15 per share on the Company's Class A and
Common Stock for the first quarter of fiscal 2018. The dividend is
payable on September 15, 2017 to
shareholders of record as of the close of business on August 31, 2017.
Fiscal 2018 Outlook
Scholastic expects total revenue in fiscal 2018 of $1.65 to $1.70 billion, in the absence of new
Harry Potter titles in North America trade and export, and a
commensurate decline in operating profits on the lower projected
sales, as well as higher costs associated with strategic technology
initiatives and facilities upgrades, without any anticipated rise
in retail rents. Excluding the impact of new Harry Potter publishing in the prior fiscal
year, the Company expects operating income to show double digit
growth. Scholastic expects earnings per diluted share in the
range of $1.20 to $1.30, excluding
one-time items and the non-cash pension curtailment charge noted
below.
Fiscal 2018 free cash flow (as defined) is expected to be a use
of $10 to $20 million, compared to a
source of $48.8 million in fiscal
2017. This outlook includes capital expenditures of $90 to $100 million, compared to $65.7 million in fiscal 2017, and prepublication
and production spending of $30 to $40
million, compared to $26.9
million in fiscal 2017. The increase in projected capital
spending is primarily due to the Company's upgrades to its SoHo
headquarters and continuing investment in strategic technology
initiatives.
The Company has launched its three-year plan, Scholastic
2020 – a process driven approach to leveraging Scholastic's
investments in strategic technology, facilities, people and content
to drive increased profitability in all areas of the business.
Underlying these goals will be the use of new technology for
improved product information, as well as a wider application of
metrics, demographics and analytics to improve communication with
Scholastic's customers. It is expected that this plan will
substantially increase the Company's operating income in 2019, 2020
and 2021, based on revenue improvements and cost reductions. To
support these initiatives, the Company expects to make a higher
level of capital investment in fiscal 2018 in technology and
facilities, which is reflected in the free cash flow guidance and
earnings estimates for the year, as a portion of these investments
will be expensed and impact Scholastic's operating margins.
In Children's Book Publishing and Distribution, Scholastic
expects trade sales to return to more normal levels after the past
year's strong performance of Harry
Potter and the Cursed Child, Parts One and Two and the
original screenplay by J.K. Rowling
of Fantastic Beasts and Where to Find Them. Partially
offsetting this decline is anticipated low- to mid-single digit
revenue growth in the Company's book clubs and book fairs. While
the Company expects to see some increased marketing opportunities
in connection with the upcoming 20th anniversary of
Harry Potter in the U.S. in 2018,
its fiscal 2018 publishing plan will focus primarily on new books
in bestselling series like Dog Man, Wings of Fire and Jedi Academy
and licensed publishing against popular media properties like
American Girl, Five Nights at Freddy's, and Pokemon. It is expected
that book clubs will return to growth with new product, pricing and
merchandising strategies, including a greater focus on its
traditionally successful multi-grade club offerings, while book
fairs expects to improve revenue and profitability by increasing
revenue per fair, using more robust business analytics to
right-size fair types and target growth opportunities in the higher
demographic markets.
In Education, the Company believes it can continue to grow
revenues by focusing on the opportunity to provide a complete Pre-K
to 6 core literacy curriculum to school districts and increase its
market share for both core and supplemental literacy products, as
well as the expansion of the Company's services business focused on
product-aligned professional development and family and community
engagement. Revenue growth in the Education segment, predicated on
the Company's expanded market presence, is expected to be in the
mid-single digits in fiscal year 2018.
In International, revenue is expected to be on par with the past
year, with growth in most countries offset by a return to usual
levels in Canada and export in the
absence of new Harry Potter-related
publishing. Fiscal 2018 will see a greater emphasis on growing
Scholastic's international education business in both mature and
emerging markets with deeper penetration of key products as the
Company looks to build its position as a global partner with
schools in support of research-based instructional literacy and
mathematics programs. The Company also expects to see direct sales
in Asia grow as a result of
increased training and support of its large independent sales
force.
The Company expects to complete the previously reported
termination of its domestic defined benefit pension plan during the
fiscal year. The final step in this process will involve the
distribution of earned benefits to plan participants and the
purchase of annuity contracts from a third-party insurance company.
The final settlement of these liabilities will trigger the
recognition of a non-cash pension settlement expense currently
estimated to be approximately $50
million, which has been excluded from the Company's fiscal
2018 guidance.
Capital Investment Update
In addition to the normal maintenance levels of capital
expenditures and prepublication expense related to the development
of new products and platforms, in fiscal 2017 the Company spent
$30.6 million of capital on strategic
technology upgrades and initiatives forming part of its previously
announced multi-year transformational technology investment
program. These technology investments are designed to enable the
Company to better utilize data to go to market, simplify and
standardize business processes across divisions, and communicate
more effectively with its customers. The Company also paid out
$20.6 million towards the redesign
and upgrade of its headquarters building in New York City. The investment in the building
is creating a 21st century workplace that integrates
seamless and scalable technology to improve capacity and
productivity, as well as freeing higher value Broadway-facing
retail space on the lower levels. The Company is now completing the
agreement reached with LVMH's Sephora unit to occupy the newly
designed retail space at 557 Broadway, preserving this high quality
retailer as tenant for 15 years.
In fiscal year 2018, the Company will continue to invest in its
overarching strategic technology innovation program as it looks to
complete the final year of a previously announced plan of
investment, as well as the commencement of a new multi-year program
seeking to upgrade its Oracle enterprise-wide platforms for
financial management, supply chain, transportation and logistics.
The Company expects these spending levels to be marginally higher
than 2017 levels and has included these amounts in its fiscal 2018
guidance range for capital expenditures. The Company will complete
all construction work on its headquarters building in the coming
year, and these amounts, which will exceed 2017 levels, have also
been included in the Company's fiscal 2018 outlook.
Additional Information
To supplement our financial statements presented in accordance
with GAAP, we include certain non-GAAP calculations and
presentations. Please refer to the non-GAAP financial tables
attached to this press release for supporting details on one-time
items and other 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 8:30 am ET today, July 20, 2017. Scholastic's Chairman, President
and CEO, Richard Robinson, and
Executive Vice President, CAO and CFO, Maureen O'Connell, 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 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 44394460. The recording will be available through
Friday, July 28, 2017.
About Scholastic
Scholastic Corporation (NASDAQ: SCHL) is the world's largest
publisher and distributor of children's books, a leading provider
of print and digital instructional materials for pre-K to grade 12,
and a producer of educational and entertaining children's media.
The Company creates quality books and ebooks, print and
technology-based learning programs, classroom magazines and other
products that, in combination, offer schools customized solutions
to support children's learning both at school and at home. The
Company also makes quality, affordable books available to all
children through school-based book clubs and book fairs. With a 96
year history of service to schools and families, Scholastic
continues to carry out its commitment to "Open a World of Possible"
for all children. Learn more at www.scholastic.com.
Forward-Looking Statements
This news release contains certain forward-looking statements.
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.
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SCHOLASTIC
CORPORATION
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CONSOLIDATED
STATEMENTS OF OPERATIONS
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(UNAUDITED)
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(Amounts in
millions except per share data)
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THREE MONTHS
ENDED
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TWELVE MONTHS
ENDED
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05/31/17
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05/31/16
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05/31/17
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05/31/16
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Revenues
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$499.6
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$513.8
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$1,741.6
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$1,672.8
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Operating costs and
expenses:
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Cost of goods sold
(1)
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213.2
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212.7
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814.5
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762.3
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Selling, general and
administrative expenses (2)
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203.6
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223.2
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781.7
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777.3
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Bad debt
expense
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1.7
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3.4
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11.0
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12.3
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Depreciation and
amortization
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10.1
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8.6
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38.7
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38.9
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Asset impairments
(3)
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6.8
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7.5
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6.8
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14.4
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Total operating costs
and expenses
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435.4
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455.4
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1,652.7
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1,605.2
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Operating income
(loss)
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64.2
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58.4
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88.9
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67.6
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Other expense
(income)
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-
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-
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-
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-
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Interest expense,
net
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-
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0.3
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1.0
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1.1
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(Gain) loss on
investments (4)
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-
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(2.2)
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Earnings (loss) from
continuing operations before income taxes
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64.2
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58.1
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87.9
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68.7
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Provision (benefit)
for income taxes
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24.6
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23.2
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35.4
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24.7
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Earnings (loss) from
continuing operations
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39.6
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34.9
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52.5
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44.0
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Earnings (loss) from
discontinued operations, net of tax
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(0.2)
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(0.9)
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(0.2)
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(3.5)
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Net income
(loss)
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$39.4
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$34.0
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$52.3
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$40.5
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Basic and diluted
earnings (loss) per Share of Class A and Common Stock:
(5)
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Basic:
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Earnings (loss) from
continuing operations
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1.13
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1.02
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1.51
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1.29
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Earnings (loss) from
discontinued operations, net of tax
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(0.01)
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(0.03)
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(0.00)
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(0.11)
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Net income
(loss)
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1.12
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0.99
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1.51
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1.18
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Diluted:
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Earnings (loss) from
continuing operations
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1.11
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1.00
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1.48
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1.26
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Earnings (loss) from
discontinued operations, net of tax
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(0.01)
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(0.03)
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(0.01)
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(0.10)
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Net income
(loss)
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1.10
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0.97
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1.47
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1.16
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Basic weighted
average shares outstanding
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34,983
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34,221
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34,694
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34,092
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Diluted weighted
average shares outstanding
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35,709
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34,832
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35,430
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34,900
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(1)
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In the twelve months
ended May 31, 2017, the Company recognized pretax exit costs
related to its software distribution business in Australia of
$0.5.
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(2)
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In the three and
twelve months ended May 31, 2017, the Company recognized pretax
severance expense as part of cost reduction programs of $4.6 and
$12.9, respectively. In the three and twelve months ended May
31, 2016, the Company recognized pretax severance expense as part
of cost reduction programs of $5.2 and $9.5, respectively. In
the twelve months ended May 31, 2016, the Company recognized a
pretax charge related to a warehouse optimization project in the
Company's book fairs operations of $1.5 and pretax transaction
costs of $0.4.
|
|
|
|
(3)
|
In the three and
twelve months ended May 31, 2017, the Company recognized a pretax
impairment charge related to certain website development assets of
$5.7 and certain legacy prepublication assets of $1.1. In the three
and twelve months ended May 31, 2016, the Company recognized a
pretax impairment charge related to legacy building improvements of
$7.5. In the twelve months ended May 31, 2016, the Company
recognized pretax impairment charges related to certain legacy
prepublication assets of $6.9.
|
|
|
|
(4)
|
In the twelve months
ended May 31, 2016, the Company recognized a pretax gain on sale of
investment of $2.2 related to an investment in China.
|
|
|
|
(5)
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
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|
|
|
|
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|
|
|
|
|
|
|
SCHOLASTIC
CORPORATION
|
|
RESULTS OF
CONTINUING OPERATIONS - SEGMENTS
|
|
(UNAUDITED)
|
|
(Amounts in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
TWELVE MONTHS
ENDED
|
|
|
|
|
05/31/17
|
05/31/16
|
|
Change
|
|
05/31/17
|
05/31/16
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Children's Book
Publishing and Distribution
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Clubs
|
$59.5
|
$67.9
|
|
($8.4)
|
(12%)
|
|
$235.8
|
$268.8
|
|
($33.0)
|
(12%)
|
|
|
|
Book Fairs
|
180.0
|
186.1
|
|
(6.1)
|
(3%)
|
|
508.4
|
520.4
|
|
(12.0)
|
(2%)
|
|
|
|
Consolidated
Trade
|
43.3
|
45.7
|
|
(2.4)
|
(5%)
|
|
307.9
|
211.7
|
|
96.2
|
45%
|
|
|
|
Total
revenue
|
282.8
|
299.7
|
|
(16.9)
|
(6%)
|
|
1,052.1
|
1,000.9
|
|
51.2
|
5%
|
|
|
|
Operating income
(loss)
|
51.9
|
58.0
|
|
(6.1)
|
(11%)
|
|
143.1
|
120.6
|
|
22.5
|
19%
|
|
|
|
Operating
margin
|
18.4%
|
19.4%
|
|
|
|
|
13.6%
|
12.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
126.3
|
113.0
|
|
13.3
|
12%
|
|
312.7
|
299.7
|
|
13.0
|
4%
|
|
|
|
Operating income
(loss)
|
42.9
|
39.1
|
|
3.8
|
10%
|
|
50.7
|
42.8
|
|
7.9
|
18%
|
|
|
|
Operating
margin
|
34.0%
|
34.6%
|
|
|
|
|
16.2%
|
14.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
90.5
|
101.1
|
|
(10.6)
|
(10%)
|
|
376.8
|
372.2
|
|
4.6
|
1%
|
|
|
|
Operating income
(loss)
|
2.2
|
4.3
|
|
(2.1)
|
(49%)
|
|
18.7
|
11.4
|
|
7.3
|
64%
|
|
|
|
Operating
margin
|
2.4%
|
4.3%
|
|
|
|
|
5.0%
|
3.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overhead
expense
|
32.8
|
43.0
|
|
10.2
|
24%
|
|
123.6
|
107.2
|
|
(16.4)
|
(15%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$64.2
|
$58.4
|
|
$5.8
|
10%
|
|
$88.9
|
$67.6
|
|
$21.3
|
32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHOLASTIC
CORPORATION
|
|
SUPPLEMENTAL
INFORMATION
|
|
(UNAUDITED)
|
|
(Amounts in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
BALANCE SHEET ITEMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
05/31/17
|
05/31/16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$444.1
|
$399.7
|
|
|
|
|
|
|
|
|
Restricted
cash
|
0.0
|
9.9
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
199.2
|
196.3
|
|
|
|
|
|
|
|
|
Inventories,
net
|
282.5
|
271.2
|
|
|
|
|
|
|
|
|
Accounts
payable
|
141.3
|
138.2
|
|
|
|
|
|
|
|
|
Accrued
royalties
|
34.2
|
31.6
|
|
|
|
|
|
|
|
|
Lines of credit,
short-term debt and current portion of long-term debt
|
6.2
|
6.3
|
|
|
|
|
|
|
|
|
Long-term debt,
excluding current portion
|
0.0
|
0.0
|
|
|
|
|
|
|
|
|
Total debt
|
6.2
|
6.3
|
|
|
|
|
|
|
|
|
Total capital lease
obligations
|
7.6
|
8.6
|
|
|
|
|
|
|
|
|
Net debt
(1)
|
(437.9)
|
(393.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations
|
|
|
|
|
|
|
|
|
|
|
Total assets of
discontinued operations
|
0.4
|
0.5
|
|
|
|
|
|
|
|
|
Total liabilities of
discontinued operations
|
0.5
|
1.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
1,307.9
|
1,257.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
CASH FLOW ITEMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
TWELVE MONTHS
ENDED
|
|
|
|
|
05/31/17
|
05/31/16
|
|
|
05/31/17
|
05/31/16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
$28.0
|
$72.7
|
|
|
$141.4
|
($78.9)
|
|
|
|
|
Less: Additions to property, plant
and equipment
|
29.6
|
13.6
|
|
|
65.7
|
35.6
|
|
|
|
|
Pre-publication
and production costs
|
7.9
|
7.0
|
|
|
26.9
|
25.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow (use)
(2) (3)
|
($9.5)
|
$52.1
|
|
|
48.8
|
(139.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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), reduced by
spending on property, plant and equipment and pre-publication 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Free cash flow (use)
includes discontinued operations for the three and twelve months
ended May 31, 2017 and May 31, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHOLASTIC
CORPORATION
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS SUPPLEMENTAL
|
|
(UNAUDITED)
|
|
(Amounts in
millions except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
|
|
|
Reported
|
One-time
|
Excluding
|
|
|
Reported
|
One-time
|
Excluding
|
|
|
|
|
|
|
|
05/31/17
|
items
|
One-time
items
|
|
|
05/31/16
|
items
|
One-time
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$499.6
|
$0.0
|
$499.6
|
|
|
$513.8
|
$0.0
|
$513.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
(1)
|
|
213.2
|
-
|
213.2
|
|
|
212.7
|
-
|
212.7
|
|
|
|
|
|
Selling, general and
administrative expenses (2)
|
|
203.6
|
(4.6)
|
199.0
|
|
|
223.2
|
(5.2)
|
218.0
|
|
|
|
|
|
Bad debt
expense
|
|
1.7
|
-
|
1.7
|
|
|
3.4
|
-
|
3.4
|
|
|
|
|
|
Depreciation and
amortization
|
|
10.1
|
-
|
10.1
|
|
|
8.6
|
-
|
8.6
|
|
|
|
|
|
Asset impairments
(3)
|
|
6.8
|
(6.8)
|
-
|
|
|
7.5
|
(7.5)
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs
and expenses
|
|
435.4
|
(11.4)
|
424.0
|
|
|
455.4
|
(12.7)
|
442.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
64.2
|
11.4
|
75.6
|
|
|
58.4
|
12.7
|
71.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense
(income)
|
|
-
|
|
-
|
|
|
-
|
|
-
|
|
|
|
|
Interest expense,
net
|
|
-
|
-
|
-
|
|
|
0.3
|
-
|
0.3
|
|
|
|
|
(Gain) loss on
investments (4)
|
|
-
|
-
|
-
|
|
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
continuing operations before income taxes
|
|
64.2
|
11.4
|
75.6
|
|
|
58.1
|
12.7
|
70.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
24.6
|
4.4
|
29.0
|
|
|
23.2
|
5.1
|
28.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
continuing operations
|
|
39.6
|
7.0
|
46.6
|
|
|
34.9
|
7.6
|
42.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
discontinued operations, net of tax
|
|
(0.2)
|
-
|
(0.2)
|
|
|
(0.9)
|
-
|
(0.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$39.4
|
$7.0
|
$46.4
|
|
|
$34.0
|
$7.6
|
$41.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
diluted share from continuing operations
|
|
1.11
|
0.20
|
1.31
|
|
|
1.00
|
0.22
|
1.22
|
|
|
|
|
Earnings (loss) per
diluted share from discontinued operations, net of tax
|
(0.01)
|
-
|
(0.01)
|
|
|
(0.03)
|
-
|
(0.03)
|
|
|
|
|
Net income (loss) per
diluted share
|
|
1.10
|
0.20
|
1.30
|
|
|
0.97
|
0.22
|
1.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TWELVE MONTHS
ENDED
|
|
|
|
|
|
|
Reported
|
One-time
|
Excluding
|
|
|
Reported
|
One-time
|
Excluding
|
|
|
|
|
|
|
|
05/31/17
|
items
|
One-time
items
|
|
|
05/31/16
|
items
|
One-time
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$1,741.6
|
$0.0
|
$1,741.6
|
|
|
$1,672.8
|
$0.0
|
$1,672.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
(1)
|
|
814.5
|
(0.5)
|
814.0
|
|
|
762.3
|
-
|
762.3
|
|
|
|
|
|
Selling, general and
administrative expenses (2)
|
|
781.7
|
(12.9)
|
768.8
|
|
|
777.3
|
(11.4)
|
765.9
|
|
|
|
|
|
Bad debt
expense
|
|
11.0
|
-
|
11.0
|
|
|
12.3
|
-
|
12.3
|
|
|
|
|
|
Depreciation and
amortization
|
|
38.7
|
-
|
38.7
|
|
|
38.9
|
-
|
38.9
|
|
|
|
|
|
Asset impairments
(3)
|
|
6.8
|
(6.8)
|
-
|
|
|
14.4
|
(14.4)
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs
and expenses
|
|
1,652.7
|
(20.2)
|
1,632.5
|
|
|
1,605.2
|
(25.8)
|
1,579.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
88.9
|
20.2
|
109.1
|
|
|
67.6
|
25.8
|
93.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense
(income)
|
|
-
|
|
-
|
|
|
-
|
|
-
|
|
|
|
|
Interest expense,
net
|
|
1.0
|
-
|
1.0
|
|
|
1.1
|
-
|
1.1
|
|
|
|
|
(Gain) loss on
investments (4)
|
|
-
|
-
|
-
|
|
|
(2.2)
|
-
|
(2.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
continuing operations before income taxes
|
|
87.9
|
20.2
|
108.1
|
|
|
68.7
|
25.8
|
94.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
35.4
|
7.8
|
43.2
|
|
|
24.7
|
10.3
|
35.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
continuing operations
|
|
52.5
|
12.4
|
64.9
|
|
|
44.0
|
15.5
|
59.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
discontinued operations, net of tax
|
|
(0.2)
|
-
|
(0.2)
|
|
|
(3.5)
|
-
|
(3.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$52.3
|
$12.4
|
$64.7
|
|
|
$40.5
|
$15.5
|
$56.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
diluted share from continuing operations
|
|
1.48
|
0.35
|
1.83
|
|
|
1.26
|
0.44
|
1.70
|
|
|
|
|
Earnings (loss) per
diluted share from discontinued operations, net of tax
|
(0.01)
|
-
|
(0.01)
|
|
|
(0.10)
|
-
|
(0.10)
|
|
|
|
|
Net income (loss) per
diluted share
|
|
1.47
|
0.35
|
1.82
|
|
|
1.16
|
0.44
|
1.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
In the twelve months
ended May 31, 2017, the Company recognized pretax exit costs
related to its software distribution business in Australia of
$0.5.
|
|
|
(2)
|
In the three and
twelve months ended May 31, 2017, the Company recognized pretax
severance expense as part of cost reduction programs of $4.6 and
$12.9, respectively. In the three and twelve months ended May 31,
2016, the Company recognized pretax severance expense as part of
cost reduction programs of $5.2 and $9.5, respectively. In the
twelve months ended May 31, 2016, the Company recognized a pretax
charge related to a warehouse optimization project in the Company's
book fairs operations of $1.5 and pretax transaction costs of
$0.4.
|
|
|
(3)
|
In the three and
twelve months ended May 31, 2017, the Company recognized a pretax
impairment charge related to certain website development assets of
$5.7 and certain legacy prepublication assets of $1.1. In the three
and twelve months ended May 31, 2016, the Company recognized a
pretax impairment charge related to legacy building improvements of
$7.5. In the twelve months ended May 31, 2016, the Company
recognized pretax impairment charges related to certain legacy
prepublication assets of $6.9.
|
|
|
(4)
|
In the twelve months
ended May 31, 2016, the Company recognized a pretax gain on sale of
investment of $2.2 related to an investment in China.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHOLASTIC
CORPORATION
|
|
RESULTS OF
CONTINUING OPERATIONS - SEGMENT SUPPLEMENTAL
|
|
(UNAUDITED)
|
|
(Amounts in
millions except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
|
|
|
|
Reported
|
One-time
|
Excluding
|
|
|
Reported
|
One-time
|
Excluding
|
|
|
|
|
|
|
|
|
05/31/17
|
items
|
One-time
items
|
|
|
05/31/16
|
items
|
One-time
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Children's Book
Publishing and Distribution
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Clubs
|
|
$59.5
|
|
$59.5
|
|
|
$67.9
|
|
$67.9
|
|
|
|
|
|
|
Book Fairs
|
|
180.0
|
|
180.0
|
|
|
186.1
|
|
186.1
|
|
|
|
|
|
|
Consolidated
Trade
|
|
43.3
|
|
43.3
|
|
|
45.7
|
|
45.7
|
|
|
|
|
|
|
Total
revenue
|
|
282.8
|
|
282.8
|
|
|
299.7
|
|
299.7
|
|
|
|
|
|
|
Operating income
(loss) (1)
|
|
51.9
|
-
|
51.9
|
|
|
58.0
|
-
|
58.0
|
|
|
|
|
|
|
Operating
margin
|
|
18.4%
|
|
18.4%
|
|
|
19.4%
|
|
19.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
126.3
|
|
126.3
|
|
|
113.0
|
|
113.0
|
|
|
|
|
|
|
Operating income
(loss) (2)
|
|
42.9
|
1.1
|
44.0
|
|
|
39.1
|
-
|
39.1
|
|
|
|
|
|
|
Operating
margin
|
|
34.0%
|
|
34.8%
|
|
|
34.6%
|
|
34.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
90.5
|
|
90.5
|
|
|
101.1
|
|
101.1
|
|
|
|
|
|
|
Operating income
(loss) (3)
|
|
2.2
|
0.7
|
2.9
|
|
|
4.3
|
0.7
|
5.0
|
|
|
|
|
|
|
Operating
margin
|
|
2.4%
|
|
3.2%
|
|
|
4.3%
|
|
4.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overhead
expense (4)
|
|
32.8
|
(9.6)
|
23.2
|
|
|
43.0
|
(12.0)
|
31.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$64.2
|
$11.4
|
$75.6
|
|
|
$58.4
|
$12.7
|
$71.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TWELVE MONTHS
ENDED
|
|
|
|
|
|
|
|
Reported
|
One-time
|
Excluding
|
|
|
Reported
|
One-time
|
Excluding
|
|
|
|
|
|
|
|
|
05/31/17
|
items
|
One-time
items
|
|
|
05/31/16
|
items
|
One-time
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Children's Book
Publishing and Distribution
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Clubs
|
|
$235.8
|
|
$235.8
|
|
|
$268.8
|
|
$268.8
|
|
|
|
|
|
|
Book Fairs
|
|
508.4
|
|
508.4
|
|
|
520.4
|
|
520.4
|
|
|
|
|
|
|
Consolidated
Trade
|
|
307.9
|
|
307.9
|
|
|
211.7
|
|
211.7
|
|
|
|
|
|
|
Total
revenue
|
|
1,052.1
|
|
1,052.1
|
|
|
1,000.9
|
|
1,000.9
|
|
|
|
|
|
|
Operating income
(loss) (1)
|
|
143.1
|
|
143.1
|
|
|
120.6
|
1.5
|
122.1
|
|
|
|
|
|
|
Operating
margin
|
|
13.6%
|
|
13.6%
|
|
|
12.0%
|
|
12.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
312.7
|
|
312.7
|
|
|
299.7
|
|
299.7
|
|
|
|
|
|
|
Operating income
(loss) (2)
|
|
50.7
|
1.1
|
51.8
|
|
|
42.8
|
6.9
|
49.7
|
|
|
|
|
|
|
Operating
margin
|
|
16.2%
|
|
16.6%
|
|
|
14.3%
|
|
16.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
376.8
|
|
376.8
|
|
|
372.2
|
|
372.2
|
|
|
|
|
|
|
Operating income
(loss) (3)
|
|
18.7
|
1.4
|
20.1
|
|
|
11.4
|
0.9
|
12.3
|
|
|
|
|
|
|
Operating
margin
|
|
5.0%
|
|
5.3%
|
|
|
3.1%
|
|
3.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overhead
expense (4)
|
|
123.6
|
(17.7)
|
105.9
|
|
|
107.2
|
(16.5)
|
90.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$88.9
|
$20.2
|
$109.1
|
|
|
$67.6
|
$25.8
|
$93.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
In the twelve months
ended May 31, 2016, the Company recognized a pretax charge related
to a warehouse optimization project in the Company's book fairs
operations of $1.5.
|
|
|
(2)
|
In the three and
twelve months ended May 31, 2017, the Company recognized a pretax
impairment charge associated with certain legacy prepublication
assets of $1.1. In the twelve months ended May 31, 2016, the
Company recognized a pretax impairment charge associated with
certain legacy prepublication assets of $6.9.
|
|
|
(3)
|
In the three and
twelve months ended May 31, 2017, the Company recognized pretax
severance expense as part of cost reduction programs of $0.7 and
$0.9, respectively. In the twelve months ended May 31, 2017, the
Company recognized pretax exit costs related to its software
distribution business in Australia of $0.5. In the three and
twelve months ended May 31, 2016, the Company recognized pretax
severance expense as part of cost reduction programs of $0.7 and
$0.9, respectively.
|
|
|
(4)
|
In the three and
twelve months ended May 31, 2017, the Company recognized a pretax
impairment charge related to certain website development assets of
$5.7. In the three and twelve months ended May 31, 2017, the
Company recognized pretax severance expense as part of cost
reduction programs of $3.9 and $12.0, respectively. In the three
and twelve months ended May 31, 2016, the Company recognized a
pretax impairment charge related to legacy building improvements of
$7.5 and pretax severance expense as part of cost reduction
programs of $4.5 and $8.6, respectively. In the twelve months ended
May 31, 2016, the Company recognized pretax transaction costs of
$0.4.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHL: Financial
View original content with
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SOURCE Scholastic Corporation