Slide 1: Fourth Quarter 2023 Earnings Call Presentation
RBSCHOLASTIC Fourth Quarter 2023 Earnings Call Presentation Thursday, July 20, 2023
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: Fourth Quarter and Fiscal 2023 Results
Fourth Quarter and Fiscal 2023 Results e Record Q4 operating income, up 40% versus prior year period on modest growth o Performance management, operating leverage and improved efficiencies helped overcome headwinds o Profits rose across all business segments as teams aligned spending and unlocked sa
Slide 5: Fourth Quarter 2023 Segment Highlights
Fourth Quarter 2023 Segment Highlights e Children’s Books revenues rose 5%, outperforming overall children’s book market, with operating income up 25% o Book Fairs revenues up 12% on increased fair count and higher revenue per fair, contributing to segment operating leverage o Book Clubs revenues de
Slide 6: Leverage scale and competitive advantages to sustain revenue growth
Leverage scale and competitive advantages to sustain revenue growth and higher earnings in Children’s Books Invest to grow digital sales in Education Solutions, building on strengths of profitable print offerings Improve operating efficiencies – and hold gains achieved since pandemic – across Compan
Slide 7: Driving Long-Term Earnings Growth in Children's Books
Driving Long-Term Earnings Growth in Children’s Books e Scholastic's scale, content and direct access to customers provide unique position to drive revenue growth and operating leverage in Children’s Books e Newly integrated School Reading Events division expected to be key driver of future profitab
Slide 8: Building Blended Offerings in Education Solutions
Building Blended Offerings in Education Solutions e Investments to grow digital sales with new blended literacy programs builds on long-time strengths of profitable print content businesses o Leveraging strong reputation in schools, unique literacy content, and distribution capabilities to grow blen
Slide 9: Improving Cross-Company Efficiencies
Improving Cross-Company Efficiencies e Committed to protecting efficiency improvements while investing in new capabilities to support long-term strategy e Gains in overhead and fixed costs enabled strong operating leverage and earnings growth in Q4 o More efficient organization today in centralized
Slide 10: Deploying Capital for Growth and Shareholder Returns
Deploying Capital for Growth and Shareholder Returns e Continuing to leverage strong free cash flow and balance sheet to invest in profitable growth e Investing organically and inorganically to grow Education Solutions business e Exploring additional opportunities to profitably grow Children’s Books
Slide 11: Ken Cleary, Chief Financial Officer
Ken Cleary Chief Financial Officer
Slide 12: Fiscal 2023 Highlights
Fiscal 2023 Highlights e Strong FY23 results demonstrate Company's operating leverage and improved efficiencies achieved since pandemic o Invested to transform components of supply chain, operations, logistics and go-to-market capabilities over last 36 months o Greater efficiencies helped preserve s
Slide 13: Fourth Quarter Segment Results (excluding one-time items)
Fourth Quarter Segment Results (excluding one-time items) Three Months Ended Twelve Months Ended In $ Millions 05/31/2023 _ 05/31/2022 Change 05/31/2023 05/31/2022 Change Children’s Book Publishing and Distribution Revenues Book Clubs $ 262 S$ 272 (4)% $ 1178 $ 126.4 (7)% Book Fairs 180.5 161.5 12%
Slide 14: Fourth Quarter Balance Sheet and Cash Flow Results
Fourth Quarter Balance Sheet and Cash Flow Results In $ Millions May 31,2023. May 31, 2022 Free cash flow (use) (3 month period ending)! S 85.7 S 34.9 Free cash flow (use) (12 month period ending)! $ 60.0 S$ 182.8 Accounts receivable, net $ 278.0 $ 299.4 Inventories, net $ 3345 $ 281.4 Accounts paya
Slide 15: Fiscal 2024 Outlook
Fiscal 2024 Outlook e Focus on protecting margins and sustaining growth, while executing on long-term growth and shareholder value creation strategy e Expect FY24 revenue growth of 3% to 5% and Adjusted EBITDA of $190 million to $200 million, excluding impact of approximately $7 million to $10 milli
Slide 16: Peter Warwick, President and Chief Executive Officer
Peter Warwick President and Chief Executive Officer
Slide 17: Q&A
Slide 18: Appendix
Appendix
Slide 19: Q4 FY23 Adjusted EBITDA
Q4 FY23 Adjusted EBITDA Three Months Ended Twelve Months Ended In $ Millions 05/31/2023 05/31/2022 05/31/2023 05/31/2022 Earnings (loss) before income taxes as reported S$ 95.6 S$ 53.7 S$ 112.4 S$ 897 One-time items before income taxes = 12.2 = 5S Earnings (loss) before income taxes excluding one-ti
Slide 20: Q4 FY23 Earnings (before and after one-time items)
Q4 FY23 Earnings (before and after one-time items) In $ Millions (except per share) Fourth Quarter 2023 Fourth Quarter 2022 Fiscal Year to Date 2023 Fiscal Year to Date 2022 One- Excluding One- Excluding One- Excluding One- Excluding As Time One-Time As Time One-Time As Time One-Time As Time One-Tim