Slide 1: Fiscal Year 2016 First Quarter Financial Update
ey School Y 4 Specialty. Fiscal Year 2016 First Quarter Financial Update May 3, 2016
Slide 2: Fiscal Year 2016 — First Quarter Revenue Review
Fiscal Year 2016 — First Quarter Revenue Review Distribution segment revenues of $77.8 million versus $78.6 million, a decrease of $0.8 million or 1.0% Supplies category revenue increased by $1.5 milion or 3.5%; building on momentum established post-2015 peak season; YOY bookings trends through Apri
Slide 3: Fiscal Year 2016 — First Quarter Financial Review
Fiscal Year 2016 — First Quarter Financial Review 4 School a” 6 Specialty. Gross margins of 37.8% vs. 37.5%, an increase of 30 basis points (“bps”) 5 Distribution segment margins of 35.3% vs. 36.2%; 90 bps decline primarily due to a change in mix (70 bpsimpact] and the remaining decrease was related
Slide 4: Consolidated Combined Statement of Operations
Consolidated Combined Statement of Operations NY School Specialty. \ March 26,2016 March 28, 2015 March 26, 2016 March 28, 2015 Revenues, s 9375 $ 91582 $ 639,607 $ 623,308 Cost of revenues. 58,260 57,250 406,133 388,567 Gross profit 35.465 34352 233.474 234,781 Selling, general and administrative e
Slide 5: Adjusted EBITDA Comparisons
Adjusted EBITDA Comparisons Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 amortization, bankruptcy-related costs, restructuring and impairment ‘charges (EBITDA) reconciliation: ‘Net income (oss) s (230) $ @ai
Slide 6: Balance Sheet Review
School Specialty. Y Balance Sheet Review
Slide 7: Consolidated Balance Sheet Comparison
Consolidated Balance Sheet Comparison N ( Spec elty March26,2016 _March28,2015 March26,2016 _March28,2018 ASSEIS LIABILITIES AND STOCKHOLDERS’ EQUTY Curent assets: Curest init (Cash and cashequivalents $8 868 Conent matures -gtomnett. Se $e Accounts resiabl, bss allowance for éaubtl accounts Account
Slide 8: Working Capital Comparison
Working Capital Comparison N 4 Spec elty March 205 20142032015 2013 Accounts Receivable sid SQL 500 S44 HS SB ORS TKD ATRL B40 GLO 7 Inventories s24 878 830 8 LOR? RT. 0 782783 72 752-708 Prepaid expenseandothercurentassets 127 173 «145 «21st “a 7578 B10 16637 Accounts Payable sos 28579 BD 8B 3B BLL
Slide 9: Balance Sheet Review
Balance Sheet Review 4 School Specialty. oo Cash and cash eq $7,914 ABLFacility, maturi 11,600 Term Loan, maturing 130,279 Total 1st Lien Debt 141,879 Deferred Cash Payment Obligations 18,949 Total Debt 160,828 Net Debt (Total Debt - Cash and CE) 152,914 Equity Market Capitalization 100,000 Enterpri
Slide 10: Free Cash Flow Analysis
Free Cash Flow Analysis 4 School Specialty. RI 3 Months 12 Months CY2016 —_CY2015__TTM thmQl16 _TTM thuQlis ‘Adjusted EBITDA, $ ¢ S@MI) S 4 $41,368 Caper ang a4) (6564) (3,349) ProdDev (4) 0.463) 4375) (6483) Proceeds ftom soles - 1 1682 23 Uneaized FX (gain) loss (619) 509 68) 383 Otter (68) 873) 4
Slide 11: Corporate Updates / Financial Outlook
School Specialty. Y, Corporate Updates Financial Outlook
Slide 12: FY16 First Quarter — Corporate Updates
FY16 First Quarter — Corporate Updates ( School Specialty. DS ee The Business Transformation Continues — Delivering Value for our Customers and Shareholders Q Improved productivity within Fulfillment Center continues to drive bottom-line improvement and strong service levels. O _Lines Per Hour (LPH)
Slide 13: FY16 First Quarter — Key Growth Initiative Updates
FY16 First Quarter— Key Growth InitiativeUpdates (| Spec elty Additional Growth Initiative Updates Furniture: Key growth driver within Distribution business; positive industry drivers given outlook for new school construction and refurbishments; uniquely positioned with PbD sales model and operation
Slide 14: 2016: An Important Year of Brand Anniversaries
2016: An Important Year of Brand Anniversaries 4 School Specialty. Customers choose School Specialty because of our assortment and commitment to service. We provide schools and educators with a diverse 1atched within the industry. Our strategy last year, and which continues today, ON) CHILDCRAFT’ EA
Slide 15: Fiscal 2016 Outlook — Guidance Reiterated
Fiscal 2016 Outlook— Guidance Reiterated 4 School &” 6 Specialty. Metric 16 Outlook Revenue 9637.5 Growhof 25%- 3.0% anticipates Gross Margin (Excl. PD Amort.) % 38.2% Anticipate 30-50 bps GPM decline; product margins stable, negative impact of mix. Gross Margin % 36.4% Reported GMS anticipated to s
Slide 16: Safe Harbor Statement / Non-GAAP Financial Information
Safe Harbor Statement/ Le / School Non-GAAP Financial Information (| Specialty. meee 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
Slide 17: Investor Contacts
OY scroa1. eee —~—-—“™rs=—=—C*r 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