Scholastic Corporation · NASDAQ:SCHL
Scholastic — Q1 FY2020 Earnings Presentation
17 slides from Scholastic's earnings presentation, Sep 19, 2019
Slide 1: First Quarter FY 2020 Earnings Call Presentation
ADD COVER IMAGE HERE First Quarter FY 2020 Earnings Call Presentation Thursday, September 19, 2019 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 the conditions of the children’s book and educational materials markets and acceptance of the Company’s products in thos
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: First Quarter FY 2020
First Quarter FY 2020 • The Company’s 99th back-to-school season, the results were led by trade globally. • First quarter revenue was $232.6 million, an increase of 7% compared to $218.4 million in the first quarter of 2019. • Adjusted EBITDA in the first quarter was a loss of $61.0 million, compare
Slide 6: Children's Book Publishing & Distribution
Children’s Book Publishing & Distribution • Clubs and fairs remain important access points for kids to find books they want to read and significant support for educators to build classroom libraries. • This year approximately 120,000 book fairs will be delivered in ADD IMAGE HERE; 60,000 plus school
Slide 7: Children's Book Publishing & Distribution
Children’s Book Publishing & Distribution • Strength and momentum continues in trade publishing. • Last week, Scholastic had seven out of the top 10 New York Times Children’s Series Bestsellers. ADD IMAGE HERE; • Dav Pilkey’s Dog Man: For Whom the Ball Rolls is the number FULL WIDTH AND one book in
Slide 8: International
International • Strong trade publishing globally. • Building upon global resources of print and digital content, and strong brand recognition. ADD IMAGE HERE; • Receiving positive responses to our English language learning FULL WIDTH AND programs, targeted to meet the needs of a growing middle HEIGH
Slide 9: Education
Education • Emphasizing a “comprehensive approach to literacy,” working with school districts and community-based organizations to build programs for 365-day learning. • Scholastic Literacy sales have begun but are not a driver in this ADD IMAGE HERE; year’s first quarter as the product is just comi
Slide 10: Kenneth Cleary
Kenneth Cleary Chief Financial Officer 10
Slide 11: Income Statement
Income Statement In $ Millions (except per share) First Quarter 2020 First Quarter 2019 As One-Time Excluding As One-Time Excluding Reported Items One-Time Items Reported Items One-Time Items Revenues $232.6 $0.0 $232.6 $218.4 $0.0 $218.4 Cost of goods sold 137.1 - 137.1 125.3 - 125.3 1 Selling, gen
Slide 12: Adjusted EBITDA
Adjusted EBITDA Three Months Ended 8/31/2019 8/31/2018 Earnings (loss) before income taxes as reported ($87.1) ($83.4) One-time items before income taxes 4.3 0.5 Earnings (loss) before income taxes excluding one-time items (82.8) (82.9) Interest (income) expense (0.7) (0.8) 1 Depreciation and amorti
Slide 13: Segment Results
Segment Results First Quarter 2020 First Quarter 2019 As One-Time Excluding As One-Time Excluding Reported Items One-Time Items Reported Items One-Time Items Children's Book Publishing and Distribution Revenue Book Clubs $8.0 $0.0 $8.0 $9.1 $0.0 $9.1 Book Fairs 27.5 - 27.5 25.2 - 25.2 Consolidated T
Slide 14: Selected Balance Sheet, Free Cash Flow & Net Debt
Selected Balance Sheet, Free Cash Flow & Net Debt 1. Free cash flow (use) is defined by the Company as net cash provided by or used in operating activities (which includes royalty advances) and cash acquired through acquisitions, reduced by spending on property, plant and equipment and prepublicatio
Slide 15: Fiscal 2020 Outlook - Affirmed
Fiscal 2020 Outlook - Affirmed • Affirming fiscal 2020 outlook for: 1. Adjusted EBITDA is defined by the Company as earnings (loss), excluding one-time items, before interest, taxes, depreciation and amortization. The Company believes that Adjusted EBITDA is a meaningful measure of operating profita
Slide 16: Question & Answer
Question & Answer Participants • Richard Robinson • Kenneth Cleary 16
Slide 17: RBASCHOLASTIC
RBASCHOLASTIC