Business
School Specialty Announces Fiscal Year 2018 Second Quarter Financial Results
School Specialty Announces Fiscal Year 2018 Second Quarter Financial Results.
About this update from School Speciality Inc
[{"type":"text","content":"\nGREENVILLE, Wis., Aug. 07, 2018 (GLOBE NEWSWIRE) -- School Specialty, Inc. (OTCQB: SCOO) (“School Specialty”, “SSI” or “the Company”), home of the 21st Century Safe School™ and leading provider of products and innovative solutions that support integrated learning environments for improved student social, emotional, mental and physical well-being, today announced financial results for its fiscal 2018 second quarter ended June 30, 2018.\n Joseph M. Yorio, President and Chief Executive Officer, stated, “The first half of 2018 is very encouraging as the sales momentum we are experiencing is the strongest we have seen in the last several years. Importantly, the momentum is strong across our broad Supplies category, all aspects of our Furniture business and in strategic areas of focus such as our relationship with Amazon and in Safety & Security. This being said, much of the benefit of executing the team-sell model and effectively engaging the market with our 21st Century Safe School value proposition is still in front of us. In 2018, we deployed strategies to more effectively price key elements of our offering and ensure we maintain leadership positions on key strategic purchasing agreements. These efforts have coincided with initiatives to drive growth in higher margin elements of our offering. The strategies we are deploying are clearly beginning to enable market penetration which will pave the way to bring a more comprehensive set of solutions to our customers. Now we need to execute on those opportunities to better balance our mix and strengthen margins. We continue to manage our cost structure effectively and see opportunity for SG&A favorability in the second half of the year. This should enable us to offset near-term margin pressure and cost pressures in transportation and wages, and still deliver bottom-line growth in 2018.” Q2 Results (for the three months ended June 30, 2018 and July 1, 2017) In the first quarter of fiscal 2018, the Company adopted a new accounting principle (“ASC 606”) which addressed the timing of both revenue recognition and catalog costs. While the Company expects the full year impact of ASC 606 to be minimal as it relates to the Company’s revenues, gross profit, SG&A, and Adjusted EBITDA, the ...