Slide 1: Fourth Quarter 2024 Earnings Call Presentation
Fourth Quarter 2024 Earnings Call Presentation Thursday, July 18, 2024
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
Peter Warwick President and Chief Executive Officer
Slide 4: Fourth Quarter & Fiscal 2024 Results
Fourth Quarter & Fiscal 2024 Results ● Q4 adjusted operating income* of $66.8 million, excluding one-time items of $19.6 million, compared to prior year record of $92.0 million ○ Revenue down 10%, driven by Education Solutions and Children’s Books segments, versus expectations of modest growth ○ SG&
Slide 5: Fourth Quarter 2024 Operating Highlights
Fourth Quarter 2024 Operating Highlights ● Advanced 360-degree content creation strategy, expanding Scholastic’s growth opportunity as global children’s media company ○ Closed investment to acquire 100% economic interest in 9 Story Media Group ○ Trade Publishing sales up 3%, excluding Scholastic Ent
Slide 6: Scholastic's Growth Strategy & Vectors
Scholastic’s Growth Strategy & Vectors Strategic Pillars Growth Vectors Build on Unique Driving Value from Scholastic’s Trusted Brand Competitive and Children’s Content & Franchises Advantages Expanding Our Reach to Kids Where They Are, Protect on Screens and the Page Profitability and Cash Flow Dev
Slide 7: Fiscal 2025 and Long-Term Growth Outlook
Fiscal 2025 and Long-Term Growth Outlook Targeting modest growth in revenue and Adjusted EBITDA in FY25, with continued headwinds and investment in compelling growth opportunities 1. New integrated Entertainment segment to benefit from acquisition of 9 Story, with expanded development and production
Slide 8: Haji Glover
Haji Glover Chief Financial Officer and Executive Vice President
Slide 9: Fourth Quarter Results
Fourth Quarter Results Fourth Quarter In $ Millions 05/31/2024 05/31/2023 Change Revenues $ 474.9 $ 528.3 $ (53.4) (10)% Operating income (loss) $ 47.2 $ 92.0 $ (44.8) (49)% Earnings (loss) before taxes $ 47.3 $ 95.6 $ (48.3) (51)% Diluted earnings (loss) per share $ 1.23 $ 2.26 $ (1.03) (46)% Opera
Slide 10: Fourth Quarter Segment Results (excluding one-time items)
Fourth Quarter Segment Results (excluding one-time items) Three Months Ended In $ Millions 05/31/2024 05/31/2023 Change Children’s Book Publishing and Distribution Revenues Book Clubs $ 14.4 $ 26.2 (45)% Book Fairs 169.5 180.5 (6)% School Reading Events 183.9 206.7 (11)% Consolidated Trade 82.1 84.3
Slide 11: Fourth Quarter Balance Sheet and Cash Flow Results
Fourth Quarter Balance Sheet and Cash Flow Results In $ Millions May 31, 2024 May 31, 2023 Free cash flow (use) (3 month period ending) (1) $ 49.7 $ 85.7 Free cash flow (use) (12 month period ending) (1) $ 73.4 $ 60.0 Accounts receivable, net $ 235.0 $ 278.0 Inventories, net $ 264.2 $ 334.5 Accounts
Slide 12: Adjusted EBITDA for Scholastic Entertainment Inc. and 9 Story
Adjusted EBITDA for Scholastic Entertainment Inc. and 9 Story Twelve Months Ended Twelve Months Ended 5/31/2024 5/31/2023 In $ Millions SEI (1) 9 Story (2) SEI (1) 9 Story (2) Revenues $ 1.9 $ 81.7 $ 19.0 $ 114.6 Earnings (loss) before income taxes as reported $ (11.2) $ (15.9) $ 1.2 $ (4.1) One-tim
Slide 13: Fiscal 2025 Outlook
Fiscal 2025 Outlook ● Revenue growth of 4% to 6% and Adjusted EBITDA of $140 million to $150 million, including partial year contribution of 9 Story ● Free cash flow of $20 to $30 million, reflecting growth investments, anticipated working capital needs and lower expected earnings ● Continued commit
Slide 14: Peter Warwick
Peter Warwick President and Chief Executive Officer
Slide 15: Q&A
Q&A
Slide 16: Appendix
Appendix
Slide 17: Fourth Quarter Adjusted EBITDA
Fourth Quarter Adjusted EBITDA Three Months Ended Twelve Months Ended In $ Millions 05/31/2024 05/31/2023 05/31/2024 05/31/2023 Earnings (loss) before income taxes as reported $ 47.3 $ 95.6 $ 16.2 $ 112.4 One-time items before income taxes 19.6 — 30.2 — Earnings (loss) before income taxes excluding
Slide 18: Fourth Quarter Earnings (before and after one-time items)
Fourth Quarter Earnings (before and after one-time items) In $ Millions (except per share) Fourth Quarter 2024 Fourth Quarter 2023 Full Year Fiscal 2024 Full Year Fiscal 2023 Excluding Excluding Excluding Excluding As One-Time One-Time As One-Time One-Time As One-Time One-Time As One-Time One-Time R