Business
Scholastic Reports Fiscal 2021 First Quarter Results
NEW YORK, Sept. 24, 2020 /PRNewswire/ -- Scholastic Corporation (NASDAQ: SCHL), the global children's publishing, education and media company, today reported
About this update from Scholastic Corporation
[{"type":"text","content":"NEW YORK, Sept. 24, 2020 /PRNewswire/ -- Scholastic Corporation (NASDAQ: SCHL), the global children's publishing, education and media company, today reported financial results for the Company's fiscal first quarter ended August 31, 2020. Scholastic typically reports an operating loss and high cash utilization in its fiscal first quarter, when most U.S. schools are not in session. \n\n \n \n \n \n \n \n\n \nFiscal First Quarter 2021 Review(In $ Millions)\nIn $ millions\nFirst Quarter\nVariance\nFY 2021\nFY 2020\n$\n%\nRevenues\n$215.2\n$232.6\n($17.4)\n(7%)\nOperating income (loss)\n(57.0)\n(87.4)\n30.4\n35%\n One-time items\n12.0\n4.3\n7.7\n-\nOperating income (loss), excluding one-time items*\n(45.0)\n(83.1)\n38.1\n46%\n* Please refer to the non-GAAP financial tables attached\nChairman's Commentary\n\"The successful execution of our previously announced $100 million cost savings program significantly improved the Company's quarterly operating loss and cash used in operating activities year-over-year, and preserved our strong capital position. Scholastic's trade and education businesses performed well and remain positioned for further growth, and we are proud of the work we have done to deepen our digital connections with customers, with digital billings up 15% in the quarter,\" said Richard Robinson, Chairman, President and Chief Executive Officer. While the first quarter is not traditionally a significant quarter for the Company's school-based distribution channels, the benefits realized from cost savings actions taken this quarter have improved our operations and should help mitigate lower revenue expectations for clubs and fairs in the second quarter as schools adapt to COVID-19 disruptions and delays. In addition, the cost savings measures should bring permanent improvements to the Company's cost structure and opportunities for substantial gains in profitability as normal sales levels return.\"\nMr. Robinson continued, \"We continue to leverage our amazing intellectual properties in the trade and media businesses. The Ballad of Songbirds and Snakes, published at the end of May, remained on bestsellers lists throughout the summer, while our entertainment unit announced development deals for live-action feature films of beloved book series, including Caster™, Goosebumps®, Animorphs®, and The Magic School Bus®. While not refle...