Slide 1: Third Quarter 2025 Earnings Call Presentation
RBSCHOLASTIC Third Quarter 2025 Earnings Call Presentation Thursday, March 20, 2025
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: 2025 Highlights
Third Quarter 2025 Highlights e Modest revenue growth in Q3, reflecting strong performance in Children’s Books segment and addition of 9 Story Media Group, and improved operating results e Returned over $35 million to shareholders in quarter through share repurchases and dividend e Strong balance sh
Slide 5: 2025 Segment Highlights
Third Quarter 2025 Segment Highlights e Children’s Books revenues up 5%, reflecting improved results in Book Fairs and Book Clubs o Book Fairs on track to achieve target of 90,000 fairs in FY25 o Updated offerings in Book Clubs drove higher participation and order volumes o Newly published titles to
Slide 6: Haji Glover, Chief Financial Officer and Executive Vice President
Haji Glover Chief Financial Officer and Executive Vice President
Slide 7: Results
Third Quarter Results Third Quarter In $ Millions (except per share data) Fiscal 2025 Fiscal 2024 Change Revenues $ 335.4 $ 323.7 $ 117 4% Operating income (loss) $ (23.9) $ (349) $ 110 32% Earnings (loss) before taxes $ (284) $ (346) $ 62 18% Diluted earnings (loss) per share $ (013) $ (091) $ 078
Slide 8: Segment Results (excluding one-time items)
Third Quarter Segment Results (excluding one-time items) Third Quarter In §$ Millions Fiscal 2025 Fiscal 2024 Change Children’s Book Publishing and Distribution School Reading Events $ 1259 $ 116.0 9% Consolidated Trade 774 774 0% Total Revenues 203.3 193.1 5% Operating income (loss) 76 2.8 171 % Ed
Slide 9: Balance Sheet and Cash Flow Results
Third Quarter Balance Sheet and Cash Flow Results In $ Millions February 28, 2025 _ February 29, 2024 Free cash flow (use) (3 month period ending) ‘?) $ (30.7) $ (7.1) Accounts receivable, net $ 255.9 $ 253.0 Inventories, net 270.8 282.5 Accounts payable 133.5 126.1 Deferred revenue 205.2 193.8 Accr
Slide 10: Fiscal 2025 Outlook
Fiscal 2025 Outlook e Refined FY25 outlook o Adjusted EBITDA of approximately $140 million, from $140 million to $150 million previously o Modest revenue growth year-over-year, compared to prior guidance of 4% to 6% e Free cash flow outlook remains between $20 to $30 million o Reflecting growth inve
Slide 11: Peter Warwick, President and Chief Executive Officer
Peter Warwick President and Chief Executive Officer
Slide 12: Q&A
Slide 13: Appendix
Appendix
Slide 14: Adjusted EBITDA
Third Quarter Adjusted EBITDA Third Quarter In $ Millions Fiscal 2025 Fisal 2024 Earnings (loss) before income taxes as reported $ (28.4) $ (34.6) One-time items before income taxes 3.0 43 Earnings (loss) before income taxes excluding one-time items (25.4) (30.3) Interest (income) expense 43 (0.6) D
Slide 15: Earnings (before and after one-time items)
Third Quarter Earnings (before and after one-time items) Third Quarter Fiscal 2025 Third Quarter Fiscal 2024 _ One-Time Excluding One- One-Time —_ Excluding One- In $ Millions (except per share data) As Reported Items Time Items As Reported Items Time Items Diluted earnings (loss) per share (1) $ (0