Business
Scholastic Reports Q4 And Fiscal 2020 Results
School Distribution Channels Significantly Impacted by COVID-19 Mandated School Closings Trade Publishing Up 45% in Fourth Quarter on Strong Frontlist,
About this update from Scholastic Corporation
[{"type":"text","content":"School Distribution Channels Significantly Impacted by COVID-19 Mandated School Closings\n Trade Publishing Up 45% in Fourth Quarter on Strong Frontlist, Despite Bookstore Closures\n Maintaining Strong Balance Sheet and Cash Position at Fiscal Year-End\n $100 MM Cost Savings Actions Underway in FY2021\n\n\nNEW YORK, July 23, 2020 /PRNewswire/ -- Scholastic Corporation (NASDAQ: SCHL), the global children's publishing, education and media company, today reported financial results for the Company's fiscal fourth quarter and full year ended May 31, 2020.\n\n \n \n \n \n \n \n\n \nFiscal 2020 Review\nIn $ millions\nFiscal 2020\nFiscal 2019\nFY20 vs. FY19\n4Q\nFY\n4Q\nFY\n4Q\nFY\nRevenues\n$284.0\n$1,487.1\n$470.7\n$1,653.9\n($186.7)\n($166.8)\nOperating income (loss)\n(46.2)\n(88.5)\n32.0\n25.0\n(78.2)\n(113.5)\n One-time items\n(6.8)\n(56.2)\n(8.1)\n(16.0)\nna\nna\nOperating income (loss), excluding one-time items*\n(39.4)\n(32.3)\n40.1\n41.0\n(79.5)\n(73.3)\n* Please refer to the non-GAAP financial tables attached\nRevenues\nAs more than 120,000 U.S. schools serving 55 million students were closed from March through May, fourth quarter revenues fell $186.7 million, or 40%, versus the prior year period on a significantly lower number of school-based book clubs and book fairs events that led to a $151.7 million reduction in combined quarterly revenues in those two channels. School closings also adversely impacted the Company's international revenues ($37 million) and the U.S. education business ($23 million). These revenue declines in this important quarter were partially offset by a $25.0 million, or 45%, increase in domestic trade sales, anchored by a solid frontlist including the widely anticipated The Ballad of Songbirds and Snakes, the fourth title in The Hunger Games® series by Suzanne Collins, even as industry-wide bookstore sales declined as a result of brick-and-mortar store closures in the quarter.\nFiscal 2020 full-year revenues declined $166.8 million, or 10%, as compared to the prior year, to $1.49 billion. \nOperating Income\nFourth quarter operating income fell $78.2 million, versus the prior year period, to an operating loss of $46.2 million. The fourth quarter decline in operating income was directly attributable to the pandemic-related drop in sales of $186.7 million, as well as approximately $19.9 million (net) in ...