NEW YORK, Dec. 17, 2020 /PRNewswire/ -- Scholastic
Corporation (NASDAQ: SCHL), the global children's publishing,
education and media company, today reported financial results for
the Company's fiscal second quarter ended November 30, 2020. Scholastic's school-based
distribution channels, particularly its book fairs businesses in
the U.S., U.K. and Canada,
continued to see significant pressure on revenues due to
COVID-impacted delays in school openings and disruptions in school
instruction patterns and schedules in the Company's important
back-to-school second quarter. Scholastic's other major businesses
performed well and showed significant improvements in operating
income year-over-year.
Fiscal Second Quarter 2021 Review
(In $ Millions)
In $
millions
|
Second
Quarter
|
Variance
|
|
FY
2021
|
FY
2020
|
$
|
%
|
Revenues
|
$406.2
|
$597.2
|
($191.0)
|
(32%)
|
Operating income
(loss)
|
48.8
|
105.1
|
(56.3)
|
(54%)
|
One-time
items
|
5.5
|
1.9
|
3.6
|
-
|
Operating income
(loss), excluding one-time items*
|
54.3
|
107.0
|
(52.7)
|
(49%)
|
* Please
refer to the non-GAAP financial tables attached
|
Chairman's Commentary
"While fiscal second quarter book fairs' revenues were adversely
impacted by COVID, all of Scholastic's other major businesses, in
the U.S. and internationally, showed major improvements in
operating income, year-over-year. These gains, along with a
reduction in overhead expense, helped to lessen the impact of the
lower fairs' revenues on Scholastic's profitability and cash
position. Trade's strong fall frontlist, including the NY Times #1
Bestseller, The Ickabog® by J.K. Rowling, helped
propel a 21% increase in trade sales and we ended the quarter with
an impressive showing of 10 of our children's titles on the
incredibly competitive Amazon Best Books of 2020
list," said Richard Robinson,
Chairman, President and Chief Executive Officer. We continued
to take major steps to reduce our operating costs, right-size our
employee base, and match our inventory purchases to customer
demand. If school operations stabilize and business conditions
improve in the second half, as expected, the Company's new lower
cost structure should result in higher profit margins and increased
cash flow."
Mr. Robinson continued, "During the quarter, both the economy
and our educational systems continued to be upended by the
devastating pandemic and schools faced daily challenges in meeting
the needs of their students with only one-third of all schools open
for in-person learning. As a trusted partner to educators and
families all over the world, the passion and commitment of our
employees has provided innovative, practical literacy solutions to
these partners struggling to keep their children learning and safe.
With increased interest in our take-home reading packs, easy-to-use
digital programs, including our new "digital-only" classroom
magazines, virtual book fairs and ship-to-home options for clubs
and fairs, we were able to help teachers and schools to overcome
these obstacles, even as our own top line was significantly
impacted by the absence of traditional school-based in-person book
fairs, here and abroad."
Mr. Robinson concluded, "Getting all children back into the
classroom in the new calendar year, especially for grades K-5, is a
top priority of educators across the country and, as they do,
Scholastic will be there with our best-selling content, our safe
and easy book fairs, and our breakthrough print and digital
literacy programs, along with our unyielding commitment to teachers
and parents to turn around learning loss and the potential impact
on student achievement from months spent away from the
classroom."
Revenues
Second quarter revenue was $406.2
million, a decrease of 32% compared to $597.2 million in the second quarter of 2020,
predominantly due to lower sales in the Company's book fairs
operations as schools were unable to host premium in-person book
fairs as a result of coronavirus concerns and restrictions.
Although book clubs missed its September targets as school opening
dates were delayed due to COVID, sales grew stronger in subsequent
months as teacher and student engagement increased significantly
over the course of the quarter. Trade publishing revenues
remained very strong in the period, driven by bestsellers like
Dav Pilkey's Dog Man: Grime and
Punishment and J. K. Rowling's The Ickabog, as well as
best-selling series and a growing evergreen backlist of cherished
titles, while Education saw increased district sales of its Grab
and Go reading packs, mass market gains for workbooks, and
improved digital subscription revenues, including sales of
Scholastic Literacy Pro®, the Company's classroom
management tool for independent reading.
Income
Operating income in the second quarter was $48.8 million, compared to operating income of
$105.1 million a year ago.
During the quarter, the Company continued to take aggressive
actions to pare its operating costs resulting in a $69.5 million reduction in selling, general and
administrative expenses, or 33% below the prior year period.
Excluding one-time items in both periods, operating income in the
second quarter was $54.3 million, as
compared to $107.0 million in the
second quarter of the prior fiscal year.
Net income for the current period was $35.1 million, compared to net income in the
prior year period of $71.0 million, a
reduction of 51%. Earnings per diluted share in the second
fiscal quarter was $1.02 compared to
earnings per diluted share of $2.02
in the prior year period. Excluding one-time items, second quarter
2021 earnings per diluted share was $1.15, compared to earnings per diluted share of
$2.06 in the second quarter of
2020.
Capital Position and Liquidity
Net cash provided by operating activities was $46.1 million in the current fiscal quarter
compared to net cash provided by operating activities of
$111.9 million in the second quarter
of fiscal 2020. The Company had free cash flow (a non-GAAP
liquidity measure defined in the accompanying tables and reconciled
to net cash provided) of $30.9
million in the current quarter, compared to free cash flow
of $87.7 million a year ago.
The Company's cost savings initiatives continued to drive overall
lower net spending levels as the Company re-aligned its operations
and staffing levels to adapt to lower COVID-related customer demand
in its book fairs channel in the current quarter.
At quarter-end, the Company's cash and cash equivalents exceeded
total debt by $161.8 million,
compared to $261.7 million a year
ago. Net cash balances increased by $26.2
million from prior quarter-end. The Company continues to
believe that it has sufficient cash reserves to support its FY2021
business plan and has successfully amended its committed credit
facility to ensure continued access to necessary liquidity, if
needed, throughout the on-going COVID crisis.
Capital expenditures in the second quarter were $10.2 million, significantly below the current
period's depreciation and amortization expense and prior year
period outlays of $17.2 million.
Capital expenditures in the period were concentrated on targeted
enhancements to the Company's technology platforms and digital
services, as well for the relocation and consolidation of certain
distribution, warehousing and back-office operations. A number of
these investments will serve to lower the Company's fixed costs of
operations in future periods.
The Company also distributed $5.1
million in dividends in the second quarter.
Overall Results
(In $ Millions)
Second Quarter
FY2021
|
As
Reported
|
One-Time
Items
|
Ex.
One-Times
|
Earnings (loss)
before taxes
|
$47.6
|
($5.5)
|
$53.1
|
Interest
(income) expense
|
1.2
|
-
|
1.2
|
Depreciation
and amortization
|
17.0
|
-
|
17.0
|
Amortization
of prepublication costs
|
6.4
|
-
|
6.4
|
Adjusted
EBITDA
|
$72.2
|
($5.5)
|
$77.7
|
Earnings before taxes for the quarter ended November 30, 2020 was $47.6 million compared to earnings before taxes
of $104.9 million in the second
quarter of the prior fiscal year. Adjusted EBITDA (a non-GAAP
performance measure defined in the accompanying tables and
reconciled to earnings (loss) before taxes) for the second fiscal
quarter of 2021 was a gain of $77.7
million, compared to a gain of $129.3
million in the second quarter of 2020.
Fiscal 2021 Outlook
Scholastic believes that returning all children to the classroom
will be a top priority for school districts in the new calendar
year, setting the stage for higher levels of engagement and
providing motivation for schools to host in-person book fairs and
increase their purchases of classroom book collections and other
instructional resources. The Company is cautiously optimistic
that, after a ramp-up period in the third fiscal quarter, it should
see improved results, especially in its book fairs operations, in
the fourth quarter of the fiscal year as schools successfully
re-adjust to in-person learning. And, for those districts
continuing to operate in some form of remote learning or hybrid
model, the Company's expanded offering of digital subscription
programs should continue to see higher sales.
A strong second half pipeline of new releases will continue to
position the trade business for growth, and Scholastic's growing
media and entertainment business, through its production
partnerships and the licensing of Scholastic's content and
characters, should continue to complement the Company's book
sales. The Company has met its previously announced
$100 million cost savings target and
has identified opportunities for additional savings in the second
half of the fiscal year. These cost-cutting actions, along with
continued strong performance in the Company's trade and education
businesses, in the U.S. and internationally, should help mitigate
the impact of lower expected book fairs revenues in the third
quarter.
Although the Company remains optimistic about the prospects of
returning children to classrooms and the passage of a COVID
stimulus package for schools, given the on-going variability in
school instruction patterns and schedules and the possibility of
new COVID outbreaks and their potential impact on schools,
Scholastic is not providing a financial outlook for fiscal year
2021.
Segment Results
All comparisons detailed in this section refer to operating
results for the second quarter ended November 30, 2020 versus the second quarter ended
November 30, 2019.
Children's Book Publishing and Distribution
In $
millions
|
Second
Quarter
|
|
|
|
2021
|
2020
|
$ Change
|
% Change
|
Revenue
|
|
|
|
|
Book
Clubs
|
$
66.9
|
$
85.9
|
$
(19.0)
|
(22%)
|
Book
Fairs
|
47.7
|
224.1
|
(176.4)
|
(79%)
|
Trade
|
125.7
|
103.6
|
22.1
|
21%
|
Total
revenue
|
240.3
|
413.6
|
(173.3)
|
(42%)
|
Operating income /
(loss)
|
37.7
|
109.6
|
(71.9)
|
(66%)
|
Operating income /
(loss), before one-time items*
|
37.7
|
109.6
|
(71.9)
|
(66%)
|
* Please
refer to the non-GAAP financial tables attached
|
Second quarter segment revenues fell $173.3 million, or 42%, to $240.3 million, driven by a decline in book fairs
held as schools hosted a much reduced number of in-person fairs
on-site due to COVID, even as many school customers converted their
cancelled fairs to the Company's new on-line book fair model. Book
club's revenues finished the quarter strong with direct
ship-to-home order fulfillment after a slow start in the early
back-to-school period. Trade enjoyed a very strong quarter with
improved sales levels across all categories – frontlist, backlist,
digital, audio, co-editions, and its Klutz® line of
book-based activity kits. Major revenue drivers in the period
included Dog Man: Grime and Punishment, J.K. Rowling's
The Ickabog, a NY Times #1 Bestseller, and All Because
You Matter by Tami Charles, as
well as new title releases in best-selling series including The
Bad Guys in The One?! (The Bad Guys™ #12), Pig
the Slob (Pig the Pug), and Logan
Likes Mary Anne! (The Baby-Sitters Club Graphic Novel
#8). Segment operating income was $37.7
million, $71.9 million, or
66%, below the prior year period's level, reflecting the sharp
decline in book fair revenues, partially offset by cost savings and
other restructuring activities that helped to reduce the Segment's
cost of operations in the current quarter.
Education
In $
millions
|
Second
Quarter
|
|
|
|
2021
|
2020
|
$ Change
|
% Change
|
Revenue
|
$
67.5
|
$
69.9
|
$
(2.4)
|
(3%)
|
Operating income /
(loss)
|
11.9
|
6.2
|
5.7
|
92%
|
Operating income /
(loss), before one-time items*
|
11.9
|
6.2
|
5.7
|
92%
|
* Please
refer to the non-GAAP financial tables attached
|
For the current fiscal quarter, segment revenue was $67.5 million, compared to $69.9 million a year ago, a 3% decrease,
predominantly due to lower custom publishing revenues, as expected,
as the Company winds down that line of business. While the segment
also saw lower sales of its traditional classroom book collections
and magazines as many school districts chose to operate remotely,
full or part-time, sales of the Company's Grab and Go
take-home book packs to school districts and community-based
services were robust in the current quarter. Additionally,
the Company's line of workbooks and early readers saw increased
sales in all channels, with a strong pipeline of orders for the
second half of the fiscal year, and digital subscription products,
including Scholastic Literacy Pro,
F.I.R.S.T.® and BookFlix®,
realized a 30% increase in revenues in the aggregate and a 43%
increase in bookings, where additional revenue will be recognized
in future periods as product is delivered. Segment operating
income was $11.9 million, a
$5.7 million, or 92%, improvement
versus the prior year period due to product mix and lower operating
costs in the current quarter.
International
In $
millions
|
Second
Quarter
|
|
|
|
2021
|
2020
|
$ Change
|
% Change
|
Revenue
|
$
98.4
|
$
113.7
|
$
(15.3)
|
(13%)
|
Operating income /
(loss)
|
19.2
|
11.7
|
7.5
|
64%
|
Operating income /
(loss), before one-time items*
|
20.8
|
11.7
|
9.1
|
78%
|
* Please
refer to the non-GAAP financial tables attached
|
Second quarter segment revenues were $98.4 million, down $15.3
million, or 13%, as compared to the second quarter of fiscal
2020, mainly due to lower book fair events held as a result of
COVID restrictions in Canada and
the U.K., as well as lower direct-to-home sales in Asia. The Company's operations in
Australia/New Zealand outperformed the prior year period
and the trade publishing business in all of the Company's
international major markets saw increased sales. During the fiscal
second quarter, foreign exchange benefited the top line by
$2.5 million as a result of the
weakening U.S. dollar. International recorded operating income of
$19.2 million, a $7.5 million, or 64%, improvement as compared to
$11.7 million in the prior period
driven by reduced costs and COVID-related wage subsidies in
Australia, Canada, and the U.K. Excluding one-time
severance and branch consolidation restructuring charges taken in
the current quarter, the segment's adjusted operating income was
$20.8 million, or a $9.1 million improvement versus the prior year
period.
Overhead
In $
millions
|
Second
Quarter
|
|
|
|
2021
|
2020
|
$ Change
|
% Change
|
Overhead
expense
|
$
20.0
|
$
22.4
|
$
2.4
|
11%
|
Overhead expense,
excluding one-time items*
|
16.1
|
20.5
|
4.4
|
21%
|
* Please
refer to the non-GAAP financial tables attached
|
Corporate overhead for the second fiscal quarter was
$16.1 million, excluding one-time
items of $3.9 million, pre-tax, which
compared favorably with the $20.5
million recorded in the prior year period, after excluding
$1.9 million in one-time items. The
lower overhead expense in the current fiscal quarter was due to
favorable staffing levels and lower contracted services, as
planned. Non-recurring items reflected in overhead in the
current period included $3.9 million
in pre-tax severance associated with the Company's previously
announced cost savings and restructuring programs.
Year-to-Date Results
For the first six months of fiscal 2021, revenue was
$621.4 million, compared to
$829.8 million in the prior year
period, a decrease of $208.4 million,
or 25%. The Company reported a net loss per diluted share in the
first six months of the fiscal year of $0.14, compared to earnings per diluted share of
$0.35 a year ago. Excluding one-time
items of $0.39 and $0.13 per diluted share, respectively, the
Company's earnings per diluted share was $0.25 in the first six months of fiscal 2021
versus earnings per diluted share of $0.48 in the prior year period. The unfavorable
current period's results are mainly attributable to lower demand in
the Company's book fairs channels in the U.S., Canada and the U.K. in the first six months of
fiscal 2021, due to the global pandemic, partially offset by better
operating margins resulting from the Company's cost savings and
restructuring initiatives in the current fiscal year.
Adjusted EBITDA (as defined) for the first six months of fiscal
2021 was a gain of $61.8 million,
compared to a gain of $68.3 million
in the first six months of fiscal 2020, a decrease of $6.5 million, or 10%.
Net cash provided by operating activities was $20.1 million in the first six months of the
current fiscal year compared to net cash provided by operating
activities of $14.3 million in the
same period last year. The Company had a free cash use (as defined)
of $4.0 million in the current fiscal
year-to-date, compared to a free cash use of $30.8 million in the prior year period. The
current year-to-date's free cash use includes $26.2 million in capital expenditures and
$10.2 million in net prepublication
spend.
Dividend
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 third quarter of fiscal 2021. The dividend is
payable on March 15, 2021 to
shareholders of record as of the close of business on January 29, 2021.
Credit Agreement Amendment
The Company has entered into an amendment to its existing credit
agreement, including adjustments to, and suspension of, certain
covenant thresholds. The revised terms of the amended agreement
include temporary covenant relief made available by the Company's
lenders that provides the Company with financial assurance and
flexibility as it navigates through the COVID-19 pandemic. Key
highlights of the amended terms include the suspension of an
interest coverage covenant until after the end of the Company's
fiscal fourth quarter ending May 31,
2021, the addition of a minimum liquidity covenant, the
securitization of the Company's inventory and accounts receivable,
and changes in the interest rate and fees during the remaining term
of the existing facility, which expires on January 5, 2022, unless terminated earlier by the
Company. In addition, the lenders' aggregate maximum
commitments under the credit agreement have been reduced to
$250 million, of which a maximum of
$225 million is available until the
Company satisfies its original financial covenants and the minimum
liquidity covenant that has been added by the amendment. With
approximately $357 million of cash on
the balance sheet as of November 30,
2020, the Company believes the amended credit agreement
provides it with the appropriate level of flexibility to
strategically manage the business through this global pandemic.
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.
Investor Conference Call
The Company will hold a conference call to discuss its results
at 4:30 p.m. ET today, December 17, 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 4347558.
The recording will be available through Thursday, December 24, 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 those arising
from the continuing impact of COVID-19 related measures taken by
governmental authorities, school administrators, or suppliers or
customers which may curtail or otherwise adversely affect certain
of the Company's business operations, and the conditions of the
children's book and educational materials markets generally 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
|
|
SIX MONTHS
ENDED
|
|
|
|
|
11/30/20
|
11/30/19
|
|
|
11/30/20
|
11/30/19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$406.2
|
$597.2
|
|
|
$621.4
|
$829.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
199.3
|
264.3
|
|
|
322.5
|
401.4
|
|
|
|
|
Selling, general and
administrative expenses (1)
|
140.2
|
209.7
|
|
|
272.3
|
375.6
|
|
|
|
|
Bad debt
expense
|
2.1
|
2.7
|
|
|
3.5
|
4.3
|
|
|
|
|
Depreciation and
amortization
|
15.8
|
15.4
|
|
|
31.3
|
30.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs
and expenses
|
357.4
|
492.1
|
|
|
629.6
|
812.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
48.8
|
105.1
|
|
|
(8.2)
|
17.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(expense), net
|
(1.2)
|
0.0
|
|
|
(2.4)
|
0.7
|
|
|
|
Other components of
net periodic benefit (cost)
|
(0.0)
|
(0.2)
|
|
|
(0.2)
|
(0.6)
|
|
|
|
Gain (loss) on sale
of assets and other (2)
|
(0.0)
|
-
|
|
|
6.6
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before income taxes
|
47.6
|
104.9
|
|
|
(4.2)
|
17.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes (3)
|
12.4
|
33.8
|
|
|
0.4
|
5.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
35.2
|
71.1
|
|
|
(4.6)
|
12.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to noncontrolling interest
|
0.1
|
0.1
|
|
|
0.1
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Scholastic Corporation
|
$35.1
|
$71.0
|
|
|
($4.7)
|
$12.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings (loss) per share of Class A and Common Stock
(4)
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$1.02
|
$2.04
|
|
|
($0.14)
|
$0.36
|
|
|
|
|
Diluted
|
$1.02
|
$2.02
|
|
|
($0.14)
|
$0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
34,345
|
34,774
|
|
|
34,315
|
34,849
|
|
|
|
Diluted weighted
average shares outstanding
|
34,407
|
35,112
|
|
|
34,438
|
35,151
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
In the three and six
months ended November 30, 2020, the Company recognized pretax
severance of $5.2 and $17.2, respectively, and pretax branch
consolidation costs of $0.3. In the three and six months ended
November 30, 2019, the Company recognized pretax severance of
$0.9 and $3.7, respectively, and pretax settlement charges of $1.0
and $2.5, respectively.
|
|
|
|
|
|
|
(2)
|
In the six months
ended November 30, 2020, the Company recognized pretax gain on the
sale of its Danbury facility of $6.6.
|
|
|
|
|
|
|
(3)
|
In the three and six
months ended November 30, 2020, the Company recognized a benefit
for income taxes in respect to one-time pretax charges of $1.2 and
$4.3, respectively. In the three and six months ended November 30,
2019, the Company recognized a benefit for income taxes in respect
to one-time pretax charges of $0.5 and $1.7,
respectively.
|
|
|
|
|
|
|
(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
|
|
SIX MONTHS
ENDED
|
|
|
|
|
11/30/20
|
11/30/19
|
|
Change
|
|
11/30/20
|
11/30/19
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Children's Book
Publishing and Distribution
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Clubs
|
$66.9
|
$85.9
|
|
($19.0)
|
(22%)
|
|
$72.7
|
$93.9
|
|
($21.2)
|
(23%)
|
|
|
|
Book Fairs
|
47.7
|
224.1
|
|
(176.4)
|
(79%)
|
|
60.9
|
251.6
|
|
(190.7)
|
(76%)
|
|
|
|
Consolidated
Trade
|
125.7
|
103.6
|
|
22.1
|
21%
|
|
197.6
|
177.7
|
|
19.9
|
11%
|
|
|
|
Total
revenues
|
240.3
|
413.6
|
|
(173.3)
|
(42%)
|
|
331.2
|
523.2
|
|
(192.0)
|
(37%)
|
|
|
|
Operating income
(loss)
|
37.7
|
109.6
|
|
(71.9)
|
(66%)
|
|
8.5
|
67.9
|
|
(59.4)
|
(87%)
|
|
|
|
Operating
margin
|
15.7%
|
26.5%
|
|
|
|
|
2.6%
|
13.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
67.5
|
69.9
|
|
(2.4)
|
(3%)
|
|
121.1
|
118.3
|
|
2.8
|
2%
|
|
|
|
Operating income
(loss)
|
11.9
|
6.2
|
|
5.7
|
92%
|
|
9.7
|
(7.2)
|
|
16.9
|
|
|
|
|
Operating
margin
|
17.6%
|
8.9%
|
|
|
|
|
8.0%
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
98.4
|
113.7
|
|
(15.3)
|
(13%)
|
|
169.1
|
188.3
|
|
(19.2)
|
(10%)
|
|
|
|
Operating income
(loss)
|
19.2
|
11.7
|
|
7.5
|
64%
|
|
24.4
|
8.0
|
|
16.4
|
|
|
|
|
Operating
margin
|
19.5%
|
10.3%
|
|
|
|
|
14.4%
|
4.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overhead
expense
|
20.0
|
22.4
|
|
2.4
|
11%
|
|
50.8
|
51.0
|
|
0.2
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$48.8
|
$105.1
|
|
($56.3)
|
(54%)
|
|
($8.2)
|
$17.7
|
|
($25.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 3
|
Scholastic
Corporation
|
|
Supplemental
Information
|
|
(Unaudited)
|
|
(In $
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Balance Sheet Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11/30/20
|
11/30/19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$356.6
|
$277.8
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
304.7
|
325.1
|
|
|
|
|
|
|
|
|
Inventories,
net
|
306.5
|
357.8
|
|
|
|
|
|
|
|
|
Accounts
payable
|
165.5
|
188.9
|
|
|
|
|
|
|
|
|
Accrued
royalties
|
60.1
|
54.7
|
|
|
|
|
|
|
|
|
Lines of credit and
current portion of long-term debt
|
19.8
|
13.5
|
|
|
|
|
|
|
|
|
Long-term
debt
|
175.0
|
2.6
|
|
|
|
|
|
|
|
|
Total debt
|
194.8
|
16.1
|
|
|
|
|
|
|
|
|
Total finance lease
liabilities
|
12.0
|
11.8
|
|
|
|
|
|
|
|
|
Net debt (cash)
(1)
|
(161.8)
|
(261.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
1,187.9
|
1,261.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Cash Flow Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
SIX MONTHS
ENDED
|
|
|
|
|
11/30/20
|
11/30/19
|
|
|
11/30/20
|
11/30/19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
$46.1
|
$111.9
|
|
|
$20.1
|
$14.3
|
|
|
|
|
Add:
|
Net proceeds from
sale of assets
|
0.0
|
0.0
|
|
|
12.3
|
0.0
|
|
|
|
|
Less:
|
Additions to
property, plant and equipment
|
10.2
|
17.2
|
|
|
26.2
|
30.7
|
|
|
|
|
|
Pre-publication
expenditures
|
5.0
|
7.0
|
|
|
10.2
|
14.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow (use)
(2)
|
$30.9
|
$87.7
|
|
|
($4.0)
|
($30.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Net debt (cash) 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 and from sale of assets, reduced by
spending on property, plant and equipment and prepublication 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
|
|
|
|
|
|
|
|
11/30/20
|
items
|
One-time
items
|
|
11/30/19
|
items
|
One-time
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$406.2
|
$0.0
|
$406.2
|
|
$597.2
|
$0.0
|
$597.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
199.3
|
-
|
199.3
|
|
264.3
|
-
|
264.3
|
|
|
|
|
|
Selling, general and
administrative expenses (1)
|
|
140.2
|
(5.5)
|
134.7
|
|
209.7
|
(1.9)
|
207.8
|
|
|
|
|
|
Bad debt
expense
|
|
2.1
|
-
|
2.1
|
|
2.7
|
-
|
2.7
|
|
|
|
|
|
Depreciation and
amortization
|
|
15.8
|
-
|
15.8
|
|
15.4
|
-
|
15.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs
and expenses
|
|
357.4
|
(5.5)
|
351.9
|
|
492.1
|
(1.9)
|
490.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
48.8
|
5.5
|
54.3
|
|
105.1
|
1.9
|
107.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(expense), net
|
|
(1.2)
|
-
|
(1.2)
|
|
0.0
|
-
|
0.0
|
|
|
|
|
Other components of
net periodic benefit (cost)
|
|
(0.0)
|
-
|
(0.0)
|
|
(0.2)
|
-
|
(0.2)
|
|
|
|
|
Gain (loss) on sale
of assets and other (2)
|
|
(0.0)
|
-
|
(0.0)
|
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before income taxes
|
|
47.6
|
5.5
|
53.1
|
|
104.9
|
1.9
|
106.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes (3)
|
|
12.4
|
1.2
|
13.6
|
|
33.8
|
0.5
|
34.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
35.2
|
4.3
|
39.5
|
|
71.1
|
1.4
|
72.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to noncontrolling interest
|
|
0.1
|
-
|
0.1
|
|
0.1
|
-
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Scholastic Corporation
|
|
$35.1
|
$4.3
|
$39.4
|
|
$71.0
|
$1.4
|
$72.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
$1.02
|
$0.13
|
$1.15
|
|
$2.02
|
$0.04
|
$2.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SIX MONTHS
ENDED
|
|
|
|
|
|
|
Reported
|
One-time
|
Excluding
|
|
Reported
|
One-time
|
Excluding
|
|
|
|
|
|
|
|
11/30/20
|
items
|
One-time
items
|
|
11/30/19
|
items
|
One-time
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$621.4
|
$0.0
|
$621.4
|
|
$829.8
|
$0.0
|
$829.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
322.5
|
-
|
322.5
|
|
401.4
|
-
|
401.4
|
|
|
|
|
|
Selling, general and
administrative expenses (1)
|
|
272.3
|
(17.5)
|
254.8
|
|
375.6
|
(6.2)
|
369.4
|
|
|
|
|
|
Bad debt
expense
|
|
3.5
|
-
|
3.5
|
|
4.3
|
-
|
4.3
|
|
|
|
|
|
Depreciation and
amortization
|
|
31.3
|
-
|
31.3
|
|
30.8
|
-
|
30.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs
and expenses
|
|
629.6
|
(17.5)
|
612.1
|
|
812.1
|
(6.2)
|
805.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(8.2)
|
17.5
|
9.3
|
|
17.7
|
6.2
|
23.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(expense), net
|
|
(2.4)
|
-
|
(2.4)
|
|
0.7
|
-
|
0.7
|
|
|
|
|
Other components of
net periodic benefit (cost)
|
|
(0.2)
|
-
|
(0.2)
|
|
(0.6)
|
-
|
(0.6)
|
|
|
|
|
Gain (loss) on sale
of assets and other (2)
|
|
6.6
|
-
|
6.6
|
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before income taxes
|
|
(4.2)
|
17.5
|
13.3
|
|
17.8
|
6.2
|
24.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes (3)
|
|
0.4
|
4.3
|
4.7
|
|
5.2
|
1.7
|
6.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(4.6)
|
13.2
|
8.6
|
|
12.6
|
4.5
|
17.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to noncontrolling interest
|
|
0.1
|
-
|
0.1
|
|
0.1
|
-
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Scholastic Corporation
|
|
($4.7)
|
$13.2
|
$8.5
|
|
$12.5
|
$4.5
|
$17.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
($0.14)
|
$0.39
|
$0.25
|
|
$0.35
|
$0.13
|
$0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
In the three and six
months ended November 30, 2020, the Company recognized pretax
severance of $5.2 and $17.2, respectively, and pretax branch
consolidation costs of $0.3. In the three and six months ended
November 30, 2019, the Company recognized pretax severance of
$0.9 and $3.7, respectively, and pretax settlement charges of $1.0
and $2.5, respectively.
|
|
|
|
|
|
|
(2)
|
In the six months
ended November 30, 2020, the Company recognized pretax gain on the
sale of its Danbury facility of $6.6.
|
|
|
|
|
|
|
(3)
|
In the three and six
months ended November 30, 2020, the Company recognized a benefit
for income taxes in respect to one-time pretax charges of $1.2 and
$4.3, respectively. In the three and six months ended November 30,
2019, the Company recognized a benefit for income taxes in respect
to one-time pretax charges of $0.5 and $1.7,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5
|
Scholastic
Corporation
|
|
Consolidated
Statements of Operations - Supplemental
|
|
Adjusted
EBITDA
|
|
(Unaudited)
|
|
(In $
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
|
|
|
11/30/20
|
|
11/30/19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before income taxes as reported
|
|
$47.6
|
|
|
$104.9
|
|
|
|
|
One-time items before
income taxes
|
|
5.5
|
|
|
1.9
|
|
|
|
|
Earnings (loss)
before income taxes excluding one-time items
|
|
53.1
|
|
|
106.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (income)
expense
|
|
1.2
|
|
|
(0.0)
|
|
|
|
|
|
Depreciation and
amortization(1)
|
|
17.0
|
|
|
15.9
|
|
|
|
|
|
Amortization of
prepublication costs
|
|
6.4
|
|
|
6.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(2)
|
|
$77.7
|
|
|
$129.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SIX MONTHS
ENDED
|
|
|
|
|
|
|
11/30/20
|
|
11/30/19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before income taxes as reported
|
|
($4.2)
|
|
|
$17.8
|
|
|
|
|
One-time items before
income taxes
|
|
17.5
|
|
|
6.2
|
|
|
|
|
Earnings (loss)
before income taxes excluding one-time items
|
|
13.3
|
|
|
24.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (income)
expense
|
|
2.4
|
|
|
(0.7)
|
|
|
|
|
|
Depreciation and
amortization(1)
|
|
33.4
|
|
|
32.0
|
|
|
|
|
|
Amortization of
prepublication costs
|
|
12.7
|
|
|
13.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(2)
|
|
$61.8
|
|
|
$68.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
For the three and six
months ended November 30, 2020, amounts include depreciation of
$0.8 and $1.6, 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
$0.3 and $0.3, respectively, recognized in selling, general and
administrative expenses. For the three and six months ended
November 30, 2019, amounts include depreciation of $0.5 and $1.1,
respectively, recognized in cost of goods sold, amortization of
deferred financing costs of $0.0 and $0.1, respectively, and
amortization of capitalized cloud software of $0.0 and $0.0,
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
|
|
|
|
|
|
|
|
|
11/30/20
|
items
|
One-time
items
|
|
11/30/19
|
items
|
One-time
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Children's Book
Publishing and Distribution
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Clubs
|
|
$66.9
|
|
$66.9
|
|
$85.9
|
|
$85.9
|
|
|
|
|
|
|
Book Fairs
|
|
47.7
|
|
47.7
|
|
224.1
|
|
224.1
|
|
|
|
|
|
|
Consolidated
Trade
|
|
125.7
|
|
125.7
|
|
103.6
|
|
103.6
|
|
|
|
|
|
|
Total
Revenues
|
|
240.3
|
|
240.3
|
|
413.6
|
|
413.6
|
|
|
|
|
|
|
Operating income
(loss)
|
|
37.7
|
-
|
37.7
|
|
109.6
|
-
|
109.6
|
|
|
|
|
|
|
Operating
margin
|
|
15.7%
|
|
15.7%
|
|
26.5%
|
|
26.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
67.5
|
|
67.5
|
|
69.9
|
|
69.9
|
|
|
|
|
|
|
Operating income
(loss)
|
|
11.9
|
-
|
11.9
|
|
6.2
|
-
|
6.2
|
|
|
|
|
|
|
Operating
margin
|
|
17.6%
|
|
17.6%
|
|
8.9%
|
|
8.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
98.4
|
|
98.4
|
|
113.7
|
|
113.7
|
|
|
|
|
|
|
Operating income
(loss) (1)
|
|
19.2
|
1.6
|
20.8
|
|
11.7
|
-
|
11.7
|
|
|
|
|
|
|
Operating
margin
|
|
19.5%
|
|
21.1%
|
|
10.3%
|
|
10.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overhead expense
(2)
|
|
20.0
|
(3.9)
|
16.1
|
|
22.4
|
(1.9)
|
20.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$48.8
|
$5.5
|
$54.3
|
|
$105.1
|
$1.9
|
$107.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SIX MONTHS
ENDED
|
|
|
|
|
|
|
|
Reported
|
One-time
|
Excluding
|
|
Reported
|
One-time
|
Excluding
|
|
|
|
|
|
|
|
|
11/30/20
|
items
|
One-time
items
|
|
11/30/19
|
items
|
One-time
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Children's Book
Publishing and Distribution
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Clubs
|
|
$72.7
|
|
$72.7
|
|
$93.9
|
|
$93.9
|
|
|
|
|
|
|
Book Fairs
|
|
60.9
|
|
60.9
|
|
251.6
|
|
251.6
|
|
|
|
|
|
|
Consolidated
Trade
|
|
197.6
|
|
197.6
|
|
177.7
|
|
177.7
|
|
|
|
|
|
|
Total
Revenues
|
|
331.2
|
|
331.2
|
|
523.2
|
|
523.2
|
|
|
|
|
|
|
Operating income
(loss)
|
|
8.5
|
-
|
8.5
|
|
67.9
|
-
|
67.9
|
|
|
|
|
|
|
Operating
margin
|
|
2.6%
|
|
2.6%
|
|
13.0%
|
|
13.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
121.1
|
|
121.1
|
|
118.3
|
|
118.3
|
|
|
|
|
|
|
Operating income
(loss)
|
|
9.7
|
-
|
9.7
|
|
(7.2)
|
-
|
(7.2)
|
|
|
|
|
|
|
Operating
margin
|
|
8.0%
|
|
8.0%
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
169.1
|
|
169.1
|
|
188.3
|
|
188.3
|
|
|
|
|
|
|
Operating income
(loss) (1)
|
|
24.4
|
2.6
|
27.0
|
|
8.0
|
-
|
8.0
|
|
|
|
|
|
|
Operating
margin
|
|
14.4%
|
|
16.0%
|
|
4.2%
|
|
4.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overhead expense
(2)
|
|
50.8
|
(14.9)
|
35.9
|
|
51.0
|
(6.2)
|
44.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
($8.2)
|
$17.5
|
$9.3
|
|
$17.7
|
$6.2
|
$23.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
In the three and six
months ended November 30, 2020, the Company recognized pretax
severance of $1.3 and $2.3, respectively, and branch consolidation
costs of $0.3.
|
|
|
|
|
|
|
(2)
|
In the three and six
months ended November 30, 2020, the Company recognized pretax
severance of $3.9 and $14.9, respectively. In the three and six
months ended November 30, 2019, the Company recognized pretax
severance of $0.9 and $3.7, respectively, and pretax settlement
charges of $1.0 and $2.5, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/scholastic-reports-fiscal-2021-second-quarter-results-301195585.html
SOURCE Scholastic Corporation