Company Overview of Scholastic Corporation
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 ...
New York, NY 10012
Founded in 1920
Key Executives for Scholastic Corporation
Chairman, President & CEO
Total Annual Compensation: $970.0K
Executive VP and President of Book Clubs & E-Commerce
Total Annual Compensation: $674.5K
President of Scholastic Book Fairs Inc
Total Annual Compensation: $550.0K
Executive VP, General Counsel & Secretary
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
Mar 21 18
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
Mar 21 18
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
Mar 14 18
Scholastic Corporation announced that they will report Q3, 2018 results at 4:30 PM, US Eastern Standard Time on Mar 21, 2018
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