{"id":828226,"date":"2025-03-20T16:06:24","date_gmt":"2025-03-20T20:06:24","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/scholastic-reports-fiscal-2025-third-quarter-results\/"},"modified":"2025-03-20T16:06:24","modified_gmt":"2025-03-20T20:06:24","slug":"scholastic-reports-fiscal-2025-third-quarter-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/scholastic-reports-fiscal-2025-third-quarter-results\/","title":{"rendered":"Scholastic Reports Fiscal 2025 Third Quarter Results"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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Over $35 Million<\/span> Returned to Shareholders in Third Quarter; Share Repurchase Authorization Increased to $100 Million<\/span><\/p>\n

Company Affirms Adjusted EBITDA Outlook at Low End of Range<\/p>\n

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\n NEW YORK<\/span>
\n <\/span>, March 20, 2025<\/span><\/span> \/PRNewswire\/ —\u00a0Scholastic Corporation (NASDAQ: SCHL), the global children’s publishing, education and media company, today reported financial results for the Company’s fiscal third quarter ended February 28, 2025<\/span>.<\/p>\n

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\n
\n \"Scholastic
\n <\/a>\n <\/p>\n<\/p><\/div>\n

\n Peter Warwick<\/span>, President and Chief Executive Officer, said, “Scholastic achieved modest revenue growth and improved operating results in the third quarter. Despite increasing pressure on family and school spending on books and educational materials, strong performance by School Book Fairs and Clubs, successful new titles and the addition of 9 Story Media Group contributed to positive results, underscoring Scholastic’s unique strengths engaging kids with great books and quality children’s media.<\/p>\n

“Scholastic’s winning record creating global children’s franchises continued last quarter. Dog Man: Big Jim Begins<\/i>, the thirteenth book in Dav Pilkey’s<\/span> global phenomenon, has been the top-selling book in the US and major English-speaking markets since its release in early December. Earlier this week Scholastic published the fifth book in Suzanne Collins’<\/span> bestselling Hunger Games\u00ae<\/sup> series, Sunrise on the Reaping, <\/i>which\u00a0is already topping some bestseller lists based on pre-orders. Last quarter Scholastic Entertainment also leveraged its new capabilities to greatly expand the distribution and monetization of the Company’s IP on YouTube, the dominant platform for kids’ media consumption. In February alone Scholastic’s branded channels drew almost 10 million views, up nearly 40 times from a year ago.<\/p>\n

“The Education Solutions division was impacted by the continued slow-down in the supplemental curriculum market in the third quarter, but we remain encouraged by upcoming product launches. We have also begun a strategic review of this important and valuable business, as we explore options to optimize it for long-term success.<\/p>\n

“Based on the intensifying spending pressure that we experienced last quarter and expect to continue into the fourth quarter, we forecast full-year Adjusted EBITDA at the low end of our fiscal 2025 guidance and more modest revenue growth year-over-year. We have taken a number of one-time and ongoing cost actions in response to these headwinds, as previously disclosed, benefiting both the current and next fiscal years. As we continue to focus on Scholastic’s long-term growth and profitability, we remain committed to our capital allocation priorities, expanding our share repurchase authorization to $100 million<\/span> and after having returned over $35 million<\/span> to shareholders through share repurchases and dividends last quarter.”<\/p>\n

\n Outlook\u00a0<\/b>\n <\/p>\n

For fiscal year 2025, the Company has narrowed its outlook for Adjusted EBITDA (as defined in the accompanying tables) to approximately $140 million<\/span>, from $140 million<\/span> to $150 million<\/span> previously. The Company now forecasts modest full-year revenue growth, compared to prior guidance of 4% to 6% growth.<\/p>\n

\n Fiscal 2025 Q3 Review<\/b>\n <\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\n In $ millions (except per share data)<\/span>\n <\/p>\n<\/td>\n

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\n
\n Third Quarter<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Change<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n
\n Fiscal 2025<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Fiscal 2024<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Revenues<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 335.4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 323.7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 11.7<\/span>\n <\/p>\n<\/td>\n

\n

\n 4\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Operating income (loss)<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (23.9)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (34.9)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 11.0<\/span>\n <\/p>\n<\/td>\n

\n

\n 32\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Earnings (loss) before taxes<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (28.4)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (34.6)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 6.2<\/span>\n <\/p>\n<\/td>\n

\n

\n 18\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Diluted earnings (loss) per share<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (0.13)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (0.91)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.78<\/span>\n <\/p>\n<\/td>\n

\n

\n 86\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Operating income (loss), ex. one-time items *<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (20.9)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (30.6)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 9.7<\/span>\n <\/p>\n<\/td>\n

\n

\n 32\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Diluted earnings (loss) per share, ex. one-time items *<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (0.05)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (0.80)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.75<\/span>\n <\/p>\n<\/td>\n

\n

\n 94\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Adjusted EBITDA *<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 6.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (7.2)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 13.2<\/span>\n <\/p>\n<\/td>\n

\n

\n 183\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n * Please refer to the non-GAAP financial tables attached<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Revenues<\/b>\u00a0increased 4% to $335.4 million<\/span>, reflecting\u00a0the contribution of 9 Story Media Group, recorded in the Entertainment<\/i> segment, and higher revenues in School Reading Events<\/i>, partly offset by lower supplemental curriculum and collections product sales in Education Solutions.<\/i><\/p>\n

\n Operating<\/b>
\n \u00a0loss <\/b>improved 32% to a loss of $23.9 million<\/span> in the quarter compared to a loss of $34.9 million<\/span> a year ago, including $3.0 million<\/span> and $4.3 million<\/span> in one-time charges in each period, respectively. Excluding one-time charges in both periods, operating loss improved $9.7 million<\/span>. Adjusted EBITDA (a non-GAAP measure of operations explained in the accompanying tables) increased 183% to $6.0 million<\/span>. The improved seasonal loss primarily reflects a reduction in discretionary overhead expenses and higher revenues in the Children’s Book Publishing and Distribution<\/i> segment, which more than offset the impact of lower sales in Education Solutions<\/i>.<\/p>\n

\n Quarterly Results\u00a0<\/b>\n <\/p>\n

\n Children’s Book Publishing and Distribution<\/i>\n <\/p>\n

In the fiscal third quarter, the Children’s Book Publishing and Distribution<\/i> segment’s revenues increased 5% to $203.3 million<\/span>.<\/p>\n