Slide 1: First Quarter 2027 Earnings Call Presentation
First Quarter 2027 Earnings Call Presentation Thursday, September 24, 2026
Slide 2: Forward-Looking Statements / Regulation G
Forward-Looking Statements / Regulation G This presentation contains certain statements made today which will be forward-looking. These forward-looking statements, by their nature, are subject to various risks and uncertainties, and actual results may differ materially from those currently anticipat
Slide 3: Peter Warwick, President and Chief Executive Officer
Peter Warwick President and Chief Executive Officer
Slide 4: First Quarter 2027 Highlights
First Quarter 2027 Highlights ● Advanced fiscal 2027 priorities while positioning business for an important Q2 ● Operating loss in smallest revenue quarter reflected seasonality and expected impact of the sale-leaseback transactions completed last December ● Continued to invest in growth priorities
Slide 5: First Quarter 2027 Segment Highlights
First Quarter 2027 Segment Highlights ● Children’s Book Publishing & Distribution positioned for a strong back-to-school and fall selling season ○ Strong Book Fairs early indicators, with bookings and fair count ahead of prior year ○ Exciting Trade Publishing schedule, including Harry Potter® releas
Slide 6: Haji Glover, Chief Financial Officer and Executive Vice President
Haji Glover Chief Financial Officer and Executive Vice President
Slide 7: First Quarter Results
First Quarter Results First Quarter In $ Millions (except per share data) Fiscal 2027 Fiscal 2026 Change Revenues $ 216.8 $ 225.6 $ (8.8) (4)% Operating income (loss) $ (92.2) $ (92.2) $ — — % Earnings (loss) before taxes $ (93.7) $ (97.0) $ 3.3 3 % Diluted earnings (loss) per share $ (3.77) $ (2.83
Slide 8: Segment Results (excluding one-time items)
First Quarter Segment Results (excluding one-time items) First Quarter In $ Millions Fiscal 2027 Fiscal 2026 Change Children’s Book Publishing and Distribution School Reading Events $ 35.3 $ 35.9 (2) % Consolidated Trade 70.5 73.5 (4) % Total Revenues 105.8 109.4 (3) % Adjusted operating income (los
Slide 9: Balance Sheet and Cash Flow Results
First Quarter Balance Sheet and Cash Flow Results In $ Millions August 31, 2026 August 31, 2025 Free cash flow (use) (3 month period ending) (1) $ (110.8) $ (100.2) Accounts receivable, net $ 186.6 $ 187.0 Inventories, net 315.3 322.2 Accounts payable 150.2 175.8 Deferred revenue 171.6 181.0 Accrued
Slide 10: Fiscal 2027 Outlook
Fiscal 2027 Outlook ● Affirming fiscal year 2027 guidance: ● Revenue growth of 2% to 4% ● Adjusted EBITDA of $135 million to $145 million, representing year-over-year growth on a comparable basis (1) ● Free cash flow of $35 million to $40 million, representing modest growth on normalized basis (2) ●
Slide 11: Peter Warwick, President and Chief Executive Officer
Peter Warwick President and Chief Executive Officer
Slide 12: Q&A
Q&A
Slide 13: Appendix
Appendix
Slide 14: Adjusted EBITDA
First Quarter Adjusted EBITDA First Quarter In $ Millions Fiscal 2027 Fiscal 2026 Earnings (loss) before income taxes as reported $ (93.7) $ (97.0) One-time items before income taxes 3.5 10.3 Earnings (loss) before income taxes excluding one-time items (90.2) (86.7) Interest (income) expense (1) 1.6
Slide 15: Earnings (before and after one-time items)
First Quarter Earnings (before and after one-time items) First Quarter Fiscal 2027 First Quarter Fiscal 2026 Excluding One- Excluding One- In $ Millions (except per share data) As Reported One-Time Items Time Items As Reported One-Time Items Time Items Diluted earnings (loss) per share (1) $ (3.77)
Slide 16: Pro Forma Supplemental Information
Pro Forma Supplemental Information First Quarter First Quarter In $ Millions Fiscal 2027 Fiscal 2026 Variance on a comparable basis Adjusted operating Adjusted operating Incremental sale- Pro forma adjusted income (loss) income (loss) leaseback impact operating income (loss) (1) $ % Children’s Book