Scholastic Corporation · NASDAQ:SCHL
Scholastic — Q2 2021 Earnings Presentation
18 slides from Scholastic's earnings presentation, Dec 17, 2020
Slide 1: Second Quarter FY 2021 Earnings Call Presentation
ADD COVER IMAGE HERE Second Quarter FY 2021 Earnings Call Presentation Thursday, December 17, 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 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: Second Quarter FY 2021
Second Quarter FY 2021 • In the second quarter, schools opened late and only one third of U.S. schools were operating with in-person learning. This substantially affected our ability to run in-person book fairs, and we took action to preserve profitability and liquidity while also supporting our cus
Slide 6: Second Quarter FY 2021
Second Quarter FY 2021 • Second quarter revenue was $406.2 million, a decrease of 32% compared to last year. • Operating income was $48.8 million, compared to $105.1 million last year. • The Company had free cash flow of $30.9 million, compared to $87.7 million last year. • We are not providing fina
Slide 7: Children's Book Publishing & Distribution
Children’s Book Publishing & Distribution • Trade publishing saw 21% revenue growth over last year. • Strong trade performance was driven by: Dav Pilkey’s Dog Man: Grime and Punishment, J.K. Rowling’s The ADD IMAGE HERE; Ickabog®, Tami Charles’s All Because You Matter, and FULL WIDTH AND series incl
Slide 8: Children's Book Publishing & Distribution
Children’s Book Publishing & Distribution • Clubs orders ramped up in Q2, driven by great response to our ship-to-home fulfillment option. • Fairs continues to feel the impact of COVID-19 most acutely. However, we are cautiously optimistic about the ADD IMAGE HERE; spring based on our anticipation o
Slide 9: Education
Education • Education revenue was down by 3% versus last year, while operating income improved by $5.7 million over last year. • Digital subscriptions business recorded a 30% increase in revenues and a 43% increase in subscription billings. ADD IMAGE HERE; • Revenues from workbooks and early readers
Slide 10: International
International • In the International business, operating income was up, despite the revenue decreases from lower book fair sales in Canada and the U.K. • We had improved results in Australia and New ADD IMAGE HERE; FULL WIDTH AND Zealand, where the impact of COVID-19 has HEIGHT OF GREY BOX decreased
Slide 11: Fiscal Year 2021
Fiscal Year 2021 • Scholastic is continuing to lower costs and increase efficiency, taking major steps to reduce operating costs, right-size our employee base, and match our inventory purchases with customer demand. • We met our $100 million cost savings target, which will continue to benefit us thr
Slide 12: Kenneth Cleary
Kenneth Cleary Chief Financial Officer 12
Slide 13: Income Statement
Income Statement In $ Millions (except per share) Second Quarter 2021 Second Quarter 2020 Fiscal Year to Date 2021 Fiscal Year to Date 2020 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 Ite
Slide 14: Adjusted EBITDA
Adjusted EBITDA Three Months Ended Six Months Ended 11/30/2020 11/30/2019 11/30/2020 11/30/2019 Earnings (loss) before income taxes as reported $47.6 $104.9 ($4.2) $17.8 One-time items before income taxes 5.5 1.9 17.5 6.2 Earnings (loss) before income taxes excluding one-time items 53.1 106.8 13.3 2
Slide 15: Selected Balance Sheet, Free Cash Flow & Net Debt (Cash)
Selected Balance Sheet, Free Cash Flow & Net Debt (Cash) In $ Millions Nov 30, 2020 Nov 30, 2019 1 Free cash flow (use) (3 month period ending) $30.9 $87.7 Free cash flow (use) (6 month period ending) 1 ($4.0) ($30.8) Accounts receivable, net $304.7 $325.1 Inventories, net $306.5 $357.8 Accounts pay
Slide 16: Segment Results
Segment Results Second Quarter 2021 Second Quarter 2020 Fiscal Year to Date 2021 Fiscal Year to Date 2020 In $ Millions 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 Re
Slide 17: Question & Answer
Question & Answer Participants • Richard Robinson • Kenneth Cleary 17
Slide 18: Slide 18