Scholastic Reports Fiscal 2020 Second Quarter Results

About this update from Scholastic Corporation

[{"type":"text","content":"NEW YORK, Dec. 19, 2019 /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, 2019. \n\n \nFiscal Second Quarter 2020 Review(In $ Millions, except per share data)\n\"In the second quarter, Scholastic continued to stand out as the world's leading children's book publisher and distributor, at a time when the category is viewed as the most stable part of the market, with our new titles and series performing at the top of bestsellers' lists,\" said Richard Robinson, Chairman, President and Chief Executive Officer. \"Trade revenues grew 8% despite difficult comparisons with last year. Book fairs increased revenues in a more competitive environment in this important back-to-school period. With actions taken to improve fair quality and selection, and the introduction of our e-Wallet digital payment option at more fairs, we saw an increasing number of transactions per fair. With additional steps taken to contain costs, fair profitability increased. While book clubs sales declined due to a lower number of teacher sponsors and the effect of sales tax collection, significant cost reductions largely mitigated the impact on club profitability in the quarter. Internationally, we saw growth in China in local currency terms, where we continue to expand our position as a leading provider of educational books for English language learning.\" \nMr. Robinson continued, \"Based on our overall year-to-date results and margin improvements from the on-going Scholastic 2020 process, we expect to remain on plan for the year, and are therefore affirming our guidance for revenues and adjusted EBITDA.\" \nSecond quarter revenue was $597.2 million, a decrease of 1% compared to $604.7 million in the second quarter of 2019. Despite a decline in book clubs sales, revenue grew in book fairs, classroom collections and consulting services in Scholastic Education, Asia trade and education, and U.S. trade, which now includes the fully consolidated results of Make Believe Ideas. The Company's trade channels performed well comparatively, especially in light of last year's blockbuster release Fantastic Beasts™: The Crimes of Grindelwald, as well as the viral sensation, The Wonky Donkey, which together accounted for ...

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