Slide 1: Second Quarter 2025 Earnings Call Presentation
RBSCHOLASTIC Second Quarter 2025 Earnings Call Presentation Thursday, December 19, 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, President and Chief Executive Officer
Peter Warwick President and Chief Executive Officer
Slide 4: 2025 Highlights
Second Quarter 2025 Highlights e Strong execution across school channels, publishing and entertainment, despite lower Q2 results, primarily reflecting timing of publishing plan e Pursuing multiple long-term growth opportunities in core and adjoining markets, leveraging Scholastic’s brand, IP, scale
Slide 5: 2025 Segment Highlights
Second Quarter 2025 Segment Highlights e Children’s Books revenues decreased 6%, reflecting timing in Trade and School Reading Events o Book Fairs on track to achieve target of 90,000 fairs in FY25 o Updated offerings in Book Clubs drove higher student participation and revenue per sponsor Scholasti
Slide 6: Haji Glover, Chief Financial Officer and Executive Vice President
Haji Glover Chief Financial Officer and Executive Vice President
Slide 7: Results
Second Quarter Results Second Quarter In § Millions Fiscal 2025 Fiscal 2024 Change Revenues $ 5446 $ 5626 $ (18.0) (3)% Operating income (loss) $ 747 $ 101.3 $ (26.6) (26)% Earnings (loss) before taxes $ 70.0 $ 101.5 $ (31.5) (31)% Diluted earnings (loss) per share $ 171 $ 2.45 $ (0.74) (30)% Operat
Slide 8: Segment Results (excluding one-time items)
Second Quarter Segment Results (excluding one-time items) Second Quarter In $ Millions Fiscal 2025 Fiscal 2024 Change Children’s Book Publishing and Distribution) School Reading Events $ 264.2 $ 274.5 (4)% Consolidated Trade 102.8 117.9 (13) % Total Revenues 367.0 392.4 (6)% Operating income (loss)
Slide 9: Balance Sheet and Cash Flow Results
Second Quarter Balance Sheet and Cash Flow Results November 30, November 30, In $ Millions 2024 2023 Free cash flow (use) (3 month period ending) $ 42.4 $ 88.6 Accounts receivable, net $ 293.0 $ 311.8 Inventories, net 282.0 302.3 Accounts payable 157.2 159.5 Deferred revenue 225.0 225.0 Accrued roya
Slide 10: Fiscal 2025 Outlook
Fiscal 2025 Outlook e — Reaffirmed FY25 Guidance for revenue growth of 4% to 6% and Adjusted EBITDA of $140 million to $150 million e Free cash flow outlook remains between $20 to $30 million o Reflecting growth investments, larger than usual working capital needs e = Actively targeting additional c
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
Second Quarter Adjusted EBITDA Second Quarter In § Millions Fiscal 2025 Fisal 2024 Earnings (loss) before income taxes as reported $ 70.0 $ 101.5 One-time items before income taxes 42 = Earnings (loss) before income taxes excluding one-time items 74.2 101.5 Interest (income) expense 42 (0.4) Depreci
Slide 15: Earnings (before and after one-time items)
Second Quarter Earnings (before and after one-time items) Second Quarter Fiscal 2025 Second Quarter Fiscal 2024 _ One-Time Excluding One- One-Time Excluding One- In $ Millions (except per share) As Reported Items Time Items As Reported Items Time ltems Diluted earnings (loss) per share “) $ 171 = $§