April 19, 2018 1:16 PM ET

Media

Company Overview of Scholastic Corporation

Company Overview

Scholastic Corporation, together with its subsidiaries, publishes and distributes children’s books worldwide. It operates through three segments: Children’s Book Publishing and Distribution, Education, and International. The Children’s Book Publishing and Distribution segment engages in the publication and distribution of children’s books, e-books, media, and interactive products through its school book clubs and book fairs, and trade channel. Its original publications include Harry Potter, The Hunger Games, The 39 Clues, Spirit Animals, The Magic School Bus, I Spy, Captain Underpants, Goosebumps, and Clifford The Big Red Dog; and licensed properties consist of Star Wars, Lego, Pokemon, and ...

557 Broadway

New York, NY 10012

United States

Founded in 1920

9,000 Employees

Phone:

212-343-6100

Key Executives for Scholastic Corporation

Chairman, President & CEO
Age: 80
Total Annual Compensation: $970.0K
Executive VP and President of Book Clubs & E-Commerce
Age: 59
Total Annual Compensation: $674.5K
President of Scholastic Book Fairs Inc
Age: 63
Total Annual Compensation: $550.0K
Executive VP, General Counsel & Secretary
Age: 76
Total Annual Compensation: $600.0K
Compensation as of Fiscal Year 2017.

Scholastic Corporation Key Developments

Scholastic Corporation Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended February 28, 2018; Reports Asset Impairments for the Third Quarter Ended February 28, 2018; Revised Earnings Results Guidance for Fiscal 2018; Provides Cash Flow Guidance for Fiscal 2019

Scholastic Corporation reported unaudited consolidated earnings results for the third quarter and nine months ended February 28, 2018. For the quarter, the company reported revenues of $344.7 million against $336.2 million a year ago. Operating loss was $23.7 million against $24.7 million a year ago. Loss from continuing operations before income taxes was $63.3 million against $23.9 million a year ago. Loss from continuing operations was $49.2 million or $1.41 per basic and diluted share against $15.5 million or $0.45 per basic and diluted share a year ago. Net loss was $49.2 million or $1.41 per basic and diluted share against $15.4 million or $0.44 per basic and diluted share a year ago. Net cash provided by operating activities was $36.5 million against $39.2 million a year ago. Additions to property, plant and equipment was $38.4 million against $16.6 million a year ago. The third quarter is a lower revenue quarter for the Company in which it typically records a loss. Third quarter 2018 results include a non-cash pre-tax charge of $39.6 million, or $0.76 per share, related to the termination of the Company's domestic defined benefit retirement plan and $8.3 million, or $0.24 per share, for the re-measurement of the Company's U.S. deferred tax balance in connection with the passage of the Tax Cuts and Jobs Act of 201. Excluding these and other one-time items in each period described below, third quarter 2018 loss per diluted share was $0.30, compared to a loss of $0.35 per diluted share in the third quarter of 2017. The third quarter's operating results were mainly driven by top line growth in each business segment with trade publishing performing well globally. There was an unfavorable impact on margins in the quarter due to the planned expansion of the Company's education sales teams to meet the anticipated demand for its comprehensive core literacy programs, higher licensing fees related to the roll-out of a new point-of-sale system for the Company's book fairs operations, and the effect of a beneficial inventory adjustment taken in the prior year period in book clubs. Overhead benefited from lower salary-related expenses in the current period. The Company's effective federal tax rate decreased as a result of the passage of tax reform, although the full effect of the lower corporate tax rate will not be realized until next fiscal year. For the nine months, the company reported revenues of $1,132.2 million against $1,242.0 million a year ago. Operating loss was $18.3 million against operating income of $24.9 million a year ago. Loss from continuing operations before income taxes was $73.2 million against earnings from continuing operations before income taxes of $23.7 million a year ago. Loss from continuing operations was $56.8 million or $1.59 per diluted share against earnings from continuing operations of $12.9 million or $0.36 per diluted share a year ago. Net loss was $55.8 million or $1.59 per diluted share against net income of $12.9 million or $0.36 per diluted share a year ago. Net cash provided by operating activities was $64.9 million against $113.4 million a year ago. Additions to property, plant and equipment was $92.4 million against $36.1 million a year ago. Net debt was $354.9 million against $456.0 million a year ago. For the quarter, the company reported asset impairments of $4.3 million. The company revised earnings results guidance for fiscal 2018. Scholastic affirmed its fiscal 2018 outlook for total revenue of $1.65 to $1.70 billion. The company now expects earnings per diluted share from continuing operations in the range of $1.35 to $1.45, excluding one-time items, an increase from its earlier guidance of $1.20 to $1.30 per diluted share. The revised EPS guidance range reflects the partial fiscal year impact of the 2017 U.S. tax reform legislation. The Company continues to expect free cash use in the range of $10 to $20 million. The company's effective tax rate is expected to drop to approximately 34% in the current fiscal year, given this recent change in tax legislation impacting corporate tax rates, but before the effect of the one-time tax charge. The company expects to return to free cash generation in fiscal year 2019, as cash usage will fall from peak levels as the company completed its headquarters redesign.

Scholastic Corporation Declares Quarterly Cash Dividend on Class A and Common Stock for the Fourth Quarter of Fiscal 2018, Payable on June 15, 2018

Scholastic Corporation announced that its Board of Directors declared a quarterly cash dividend of $0.15 per share on the company's Class A and Common Stock for the fourth quarter of fiscal 2018. The dividend is payable on June 15, 2018 to all shareholders of record as of the close of business on April 30, 2018.

Scholastic Corporation to Report Q3, 2018 Results on Mar 21, 2018

Scholastic Corporation announced that they will report Q3, 2018 results at 4:30 PM, US Eastern Standard Time on Mar 21, 2018

Similar Private Companies By Industry

Company Name Region
SmarterChaos.com, LLC United States
"It" Girl Public Relations United States
+SmithGifford, Inc. United States
.TV Technologies, Inc. United States
@International Services, Inc. United States

Recent Private Companies Transactions

Type
Date
Target
No transactions available in the past 12 months.
\
 

The information and data displayed in this profile are created and managed by S&P Global Market Intelligence, a division of S&P Global. Bloomberg.com does not create or control the content. For inquiries, please contact S&P Global Market Intelligence directly by clicking here.

Stock Quotes

Market data is delayed at least 15 minutes.

Company Lookup

Most Searched Private Companies

Company Name Geographic Region
Lawyers Committee for Civil Rights Under Law United States
The Advertising Council, Inc. United States
Tax Management Inc United States
John F. Kennedy Center For The Performing Arts United States
NYC2012, Inc. United States

Sponsored Financial Commentaries

Sponsored Links

Request Profile Update

Only a company representative may request an update for the company profile. Documentation will be required.

To contact Scholastic Corporation, please visit www.scholastic.com. Company data is provided by S&P Global Market Intelligence. Please use this form to report any data issues.

Please enter your information in the following field(s):
Update Needed*

All data changes require verification from public sources. Please include the correct value or values and a source where we can verify.

Your requested update has been submitted

Our data partners will research the update request and update the information on this page if necessary. Research and follow-up could take several weeks. If you have questions, you can contact them at bwwebmaster@businessweek.com.