Scholastic Corporation · NASDAQ:SCHL
Scholastic — Q3 FY2020 Earnings Presentation
18 slides from Scholastic's earnings presentation, Mar 19, 2020
Slide 1: Third Quarter FY 2020 Earnings Call Presentation
ADD COVER IMAGE HERE Third Quarter FY 2020 Earnings Call Presentation Thursday, March 19, 2020 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: Third Quarter FY 2020
Third Quarter FY 2020 • Trade and book fairs had strong quarters; education growth across all major lines of business. • Third quarter revenue was $373.3 million, an increase of 4% compared to $360.1 million in the third quarter of 2019. • Excluding one-time items, operating loss in the seasonally l
Slide 6: Coronavirus Response
Coronavirus Response • Aggressively reducing costs throughout the organization, with the safety of employees and customers as priority. o Ceased all non-essential business travel and functions; increased telecommuting. o High-level, rapid response team will implement mitigation plans. • In this unpr
Slide 7: Scholastic Learn At Home
Scholastic Learn At Home • Recently released a digital hub of up to four weeks of daily instructional content to support learning at home where schools are closed. ADD IMAGE HERE; • The positive response to Scholastic Learn at Home was FULL WIDTH AND immediate with administrators, teachers and paren
Slide 8: Children's Book Publishing & Distribution
Children’s Book Publishing & Distribution • Trade publishing recorded a 17% increase in revenue. • Bestsellers include Dog Man: Fetch 22, Tui Sutherland’s Wings of Fire Special Edition, and Mãnaland by Pam Muñoz Ryan. ADD IMAGE HERE; FULL WIDTH AND • New Suzanne Collins novel The Ballad of Songbirds
Slide 9: Education
Education • Education saw 23% sales growth across classroom books, professional learning, core instruction and classroom magazines. ADD IMAGE HERE; • In this unprecedented time for schools, teams are first FULL WIDTH AND assisting educators to meet their immediate needs to serve HEIGHT OF GREY BOX s
Slide 10: International
International • International success in trade publishing remains strong. • China franchise schools and direct-to-home market in Asia impacted due to coronavirus, but supply chain issues were ADD IMAGE HERE; successfully mitigated. FULL WIDTH AND HEIGHT OF GREY BOX • China and Korea teams created on
Slide 11: Kenneth Cleary
Kenneth Cleary Chief Financial Officer 11
Slide 12: Income Statement
Income Statement In $ Millions (except per share) Third Quarter 2020 Third Quarter 2019 Fiscal Year to Date 2020 Fiscal Year to Date 2019 As One-Time Excluding As One-Time Excluding As One-Time Excluding As One-Time Excluding Reported Items One-Time Items Reported Items One-Time Items Reported Items
Slide 13: Adjusted EBITDA
Adjusted EBITDA Three Months Ended Nine Months Ended 2/29/2020 2/28/2019 2/29/2020 2/28/2019 Earnings (loss) before income taxes as reported ($60.1) ($20.8) ($42.3) ($5.8) One-time items before income taxes 43.2 2.7 49.4 7.9 Earnings (loss) before income taxes excluding one-time items (16.9) (18.1)
Slide 14: Segment Results
Segment Results Third Quarter 2020 Third Quarter 2019 Fiscal Year to Date 2020 Fiscal Year to Date 2019 As One-Time Excluding As One-Time Excluding As One-Time Excluding As One-Time Excluding Reported Items One-Time Items Reported Items One-Time Items Reported Items One-Time Items Reported Items One
Slide 15: Selected Balance Sheet, Free Cash Flow & Net Debt
Selected Balance Sheet, Free Cash Flow & Net Debt In $ Millions Feb 29, 2020 Feb 28, 2019 1 Free cash flow (use) (3 month period ending) $4.9 ($10.4) 1 Free cash flow (use) (9 month period ending) ($25.9) ($42.8) Accounts receivable, net $281.2 $317.3 Inventories, net $307.7 $356.8 Accounts payable
Slide 16: Fiscal 2020 View
Fiscal 2020 View Through the nine months ended February 29, 2020, the Company remained on course to achieve its operating goals for 2020 fiscal year revenues and Adjusted EBITDA (as defined in the accompanying tables). The Company’s long-term capital investment plan also remained on target, although
Slide 17: Question & Answer
Question & Answer Participants • Richard Robinson • Kenneth Cleary 17
Slide 18: RBASCHOLASTIC
RBASCHOLASTIC