Slide 1: Fiscal Year 2016 Second Quarter Financial Update
Fiscal Year 2016 Second Quarter Financial Update August 2, 2016
Slide 2: Fiscal Year 2016 — Second Quarter Highlights
Fiscal Year 2016 — Second Quarter Highlights (| School Specialty. eg = Growth continues - Total revenues of $145.9 million, increased by $4.9 million or 3.5%, driven by strength in Furniture and Science categories. This marks five (5) consecutive quarters of YOY growth. Important year-to-date trend-
Slide 3: Fiscal Year 2016 — Second Quarter Revenue Review
Fiscal Year 2016 — Second Quarter Revenue Review N (| School Specialty. Distribution segment revenues of $119.2 million versus $116.2 million, an increase of $3.0 million or 2.5% a a a a Supplies category revenue essentially flat with the prior year period (down $90K); YTD trend-line is positive. Fu
Slide 4: Fiscal Year 2016 — Second Quarter Financial Review
Fiscal Year 2016 — Second Quarter Financial Review 4 School &” 8 Specialty. Gross margins of 38.1% vs. 35.5%, an increase of 260 basis points (“bps”) 5 _ Distribution segment margins of 25.0% vs. 25.2%; decline is related toa change in mix(-100 bps) and increased direct freightrates (-30 bps), parti
Slide 5: Fiscal Year 2016 - Second Quarter Business Update
Fiscal Year 2016 - Second Quarter Business Update (| Soooelty. Til = Official launch of internal Lean Six Sigma and Process Excellence team to occur in Q3 - Objective isto not only drive continued improvements in Fulfillment Center operations, but also process improvements in all departments company
Slide 6: Consolidated Combined Statement of Operations
Consolidated Combined Statement of Operations (| School Specialty. a ThreeMontls Ended © ThreeMonthsEmieadSixMoue End SixMouthsEndal Tee MonthsEndel Teh Mont Ended June 25,2016 Jone27,2015, June 28.2016 Jone 7.2015, June25,2016 Jume27.2015, Reeme. s wees mas 2358S ms2 $ ous s x06 Cost ofrevemes 229
Slide 7: Adjusted EBITDA Comparisons
Adjusted EBITDA Comparisons (| School Specialty. a ‘Three Months Ended Three Months Ended Six Months Ended SixMonthsEnded Twelve Months Ended Twelve Monts Ended June 25,2016, Sune 7.2018, June 25,2016 une 7.2018, June 25,2016 June 72018 Adjusted Earnings before interest, tes, depreciation, amortizat
Slide 8: Balance Sheet Review
School Specialty. Y, Balance Sheet Review
Slide 9: Consolidated Balance Sheet Comparison
Consolidated Balance Sheet Comparison ASSETS Caet assets: (Cash and cash equivalents, Apcounts ecerabl, bss allowance for of 073 SL077 and $99 cesgectiety Inventories, et. Defered catalog costs eal exenses and othercurentasseis andable income taxes ful accounts Property, plant and equipment, net Goo
Slide 10: Working Capital Comparison
Working Capital Comparison (| School Specialty. ‘Accounts Receivable s sig $ sols sO 5 sea 5 77 5 7SS5 785.5 783 5 M25 MEIS UEr S sas HOS 7 Invertonas 5 5245 875 S$ so $ MOS S$ m7 S$ imo $ UB7 5 uB7 S$ HOS B25 13 S 725 725 mE Prepadexperseandottercunertanits S$ 27 S$ 73S US 5 WI $ MSS 9S MSS 1s 5 ME
Slide 11: Balance Sheet Review
Balance Sheet Review (| School Specialty. a Asof 6/25/16 As of 6/27/15 Key Q2 2016 Highlights = ABL balance of $46.4 million was $14.6 million below Cash and cash equivalents $857 8 86$ = 9,157 BaGryeae. = Excessavailability of $58.4 millionas of June 25, ABLFacility, maturingin 2019 46,400 61,000 2
Slide 12: Free Cash Flow Analysis
Free Cash FlowAnalysis (| School Specialty. Adused EBITDA Capex Prod Dev Proceeds fom aks ‘Unalzed FX (it) bss Otter Change in WC Unkveraged fee CF Cashinterest ‘Taes Levenged fiee CF 6 Months cy2016 C201S_ TIM thru Q2 16 12 Months TIM thru Q? 15 S385 S$ 158 $4730 «$ | A8M 7.490) G57) (10,799) (10.5
Slide 13: 2016 Outlook — Guidance Reiterated
Fiscal 2016 Outlook— Guidance Reiterated (| School &” 8 Specialty. Metric FY 2016 Outlool Revenue Growth of 25%-3.0% anticipated Gross Margin (Exdl. PD Amort.) [Anticipate 30-50 bps GPM decling product margins stable negativeimpact of mix. Gross Margin % Reported Gl% anticipated to show 30-50 bps im
Slide 14: Safe Harbor Statement / Non-GAAP Financial Information
Safe Harbor Statement/ Le / School Non-GAAP Financial Information (| Specialty. Safe Harbor Statement This presentation contains statements about School Specialty's future financial condition, results of operations, expectations, plans, or prospects, including the information under the heading “Corp
Slide 15: Investor Contacts
Investor Contacts: Ryan M. Bohr EVP & Chief Financial Officer 920-882-5868 Ryan.bohr@schoolspecialty.com Glenn Wiener Investor Relations 212-786-6011 IR@schoolspecialty.com