Business
School Specialty Announces Fiscal Year 2019 Second Quarter Financial Results
School Specialty Announces Fiscal Year 2019 Second Quarter Financial Results.
About this update from School Speciality Inc
[{"type":"text","content":"\nSecond quarter revenue of $160.6 millionSecond quarter operating income of $1.8 millionSecond quarter Adjusted EBITDA of $10.3 millionExecutes new 10-year exclusive licensing agreement for FOSS Science CurriculumLowering 2019 Revenue guidance to $640 million to $650 millionConfirming 2019 gross margin guidance of 50 bps improvementWith additional cost savings expected, guiding to lower end of adjusted EBITDA guidance range of $42 million to $46 million GREENVILLE, Wis., Aug. 12, 2019 (GLOBE NEWSWIRE) -- School Specialty, Inc. (OTCQB: SCOO) (“School Specialty”, “SSI” or “the Company”), a leading provider of innovative products and solutions that support integrated learning environments for improved student social, emotional, mental and physical well-being, today provided results for its fiscal second quarter ended June 29, 2019.\n Michael Buenzow, Interim Chief Executive Officer, stated, “Current bookings gross margin trends for late Q2 and early Q3 indicate solid gross margin improvement within the Distribution segment for the second half of 2019. Our variable and fixed cost savings initiatives are gaining traction as we continue to aggressively manage the SG&A expense structure, and we plan on accelerating those initiatives in the second half of 2019 to increase our profitability. With an emphasis and focus on higher margin revenue opportunities, we have taken a very disciplined and focused approach to our business, which in some cases includes walking away from certain large revenue opportunities with low margins. This, along with a delayed recovery in our Science Curriculum segment, has contributed to revenue softness in the first half of the year and our lower overall revenue outlook for 2019. Small district and non-district accounts have experienced some weakness and, as a result, we have engaged in a proactive direct marketing campaign to address these customer segments. Importantly, our business is trending favorably year-over-year within large school districts, major purchasing cooperatives, and state contracts. We remain committed to driving long term organic growth, focusing on cost efficiency, expanding margins, and generating strong free cash flow.” Ryan M. Bohr, Executive Vice President and Chief Operating Officer, stated, “From an operations...