Scholastic Corporation · NASDAQ:SCHL
Scholastic — Q3 FY2021 Earnings Presentation
19 slides from Scholastic's earnings presentation, Mar 18, 2021
Slide 1: Third Quarter FY 2021 Earnings Call Presentation
ADD COVER IMAGE HERE Third Quarter FY 2021 Earnings Call Presentation Thursday, March 18, 2021 Art © Dav Pilkey. DOG MAN ™/® Dav Pilkey
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements. Such forward-looking statements are subject to various risks and uncertainties, including those arising from the continuing impact of COVID-19 related measures taken by governmental authorities, school administ
Slide 3: Regulation G
Regulation G Today’s comments include references to certain non-GAAP financial measures as defined in Regulation G. The reconciliation of these non-GAAP financial measures with the relevant GAAP financial information and other information required by Regulation G is provided in the Company’s earning
Slide 4: Richard Robinson
Richard Robinson Chairman, President and Chief Executive Officer 4
Slide 5: Third Quarter FY 2021
Third Quarter FY 2021 • It has been one year since the pandemic shutdown began, closing schools throughout the U.S. and around the globe. ADD IMAGE HERE; • A recent feature on CBS Sunday Morning reminded us FULL WIDTH AND HEIGHT OF GREY BOX of the many times Scholastic has been there to support educ
Slide 6: Third Quarter FY 2021
Third Quarter FY 2021 • In the third quarter, despite a $96 million, or 26%, decline in revenue, mainly in Book Fairs, we were able to lower our seasonal operating loss year-over-year because of significant cost reductions. • For the nine months year-to-date, revenue declined by $304 million to appr
Slide 7: Children's Book Publishing & Distribution
Children’s Book Publishing & Distribution • As schools across the U.S. are returning to in-classroom instruction, the climate for book fairs is improving and we are continuing to tailor fair formats to enable safe, flexible experiences. • There is an uptick in Q4 fair bookings to-date, enabled by ou
Slide 8: Children's Book Publishing & Distribution
Children’s Book Publishing & Distribution • Fiscal 2018 to-date, Trade publishing revenues have grown by approximately 50% domestically and 30% internationally. • Publishers Weekly noted Scholastic’s “unstoppable” performance in children’s fiction. ADD IMAGE HERE; FULL WIDTH AND • We are building th
Slide 9: International
International • In our International segment, we have had significant growth in profits throughout the year, thanks in part to successful revenue increases in Trade. • Fair counts in Canada and the U.K. declined due to COVID-19, ADD IMAGE HERE; however the impact on income was mitigated, in part, by
Slide 10: Education
Education • We are forming a new Education Solutions group that combines our classroom books and curriculum division with the classroom Courtesy of: Governor's Early Literacy Foundation magazines, digital subscriptions, and teaching resources group, beginning June 1st. ADD IMAGE HERE; • This new str
Slide 11: Summer Learning 2021
Summer Learning 2021 • Scholastic is putting resources behind areas that address both the urgent and longer-term needs of educators and students. • Through book packs and other programs, we have a history of supporting summer learning success. • We are well-positioned to be the ideal partner this su
Slide 12: Scholastic Priorities
Scholastic Priorities • Our major opportunities and priorities over the next years lie in the following areas: o rebuilding Book Fair revenues; o expanding the reach of our intellectual property through trade and international businesses, and developing more streaming, television, and feature film p
Slide 13: Kenneth Cleary
Kenneth Cleary Chief Financial Officer 13
Slide 14: Q3 FY21 Earnings (before and after one-time items)
Q3 FY21 Earnings (before and after one-time items) In $ Millions (except per share) Third Quarter 2021 Third Quarter 2020 Fiscal Year to Date 2021 Fiscal Year to Date 2020 Excluding Excluding Excluding Excluding As One-Time One-Time As One-Time One-Time As One-Time One-Time As One-Time One-Time Repo
Slide 15: Q3 FY21 Adjusted EBITDA
Q3 FY21 Adjusted EBITDA Three Months Ended Nine Months Ended In $ Millions 2/28/2021 2/29/2020 2/28/2021 2/29/2020 Earnings (loss) before income taxes as reported ($22.0) ($60.1) ($26.2) ($42.3) One-time items before income taxes 12.3 43.2 29.8 49.4 Earnings (loss) before income taxes excluding one-
Slide 16: Q3 FY21 Balance Sheet Items and Cash Flow
Q3 FY21 Balance Sheet Items and Cash Flow In $ Millions Feb 28, 2021 Feb 29, 2020 1 Free cash flow (use) (3 month period ending) $5.5 $4.9 1 Free cash flow (use) (9 month period ending) $1.5 ($25.9) Accounts receivable, net $238.0 $281.2 Inventories, net $304.8 $307.7 Accounts payable $134.3 $187.9
Slide 17: Q3 FY21 Revenues
Q3 FY21 Revenues In $ Millions Three Months Ended Nine Months Ended 2/28/2021 2/29/2020 Change 2/28/2021 2/29/2020 Change Book Clubs $35.0 $43.4 ($8.4) (19%) $107.7 $137.3 ($29.6) (27%) Book Fairs 27.0 100.1 (73.1) (73%) 87.9 351.7 ($263.8) nm Consolidated Trade 79.3 76.7 2.6 3% 276.9 254.4 $22.5 8%
Slide 18: Questions
Questions For any questions, please contact Scholastic Investor Relations: Investor_Relations@Scholastic.com 18
Slide 19: RBASCHOLASTIC
RBASCHOLASTIC