Scholastic Corporation · NASDAQ:SCHL
Scholastic — FY2012 Earnings Presentation
15 slides from Scholastic's earnings presentation, Jul 19, 2012
Slide 1: Fiscal 2012 Year End Earnings Presentation
FISCAL 2012 YEAR END EARNINGS PRESENTATION 1 July 19, 2012
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements, which 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 those markets and other risks
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 earnin
Slide 4: Dick Robinson, Chief Executive Officer, President and Chairman
Dick Robinson Chief Executive Officer, President and Chairman 4
Slide 5: Children's Books
Children’s Books Segment sales up 20%, profits nearly doubled in fiscal 2012 Extraordinary Trade sales driven by The Hunger Games and multiple best-sellers Solid growth in School Book Fairs, driven by strong participation by families Targeted promotions yielding higher profits on lower reven
Slide 6: Storia Ereader App and System
Storia™ Ereader App and System Introduced Storia in spring 2012 to broad praise Over 2,000 titles (incl. 350 enriched) to be available for purchase in fall Strong positive reaction from teachers and parents Continuing roll out to teachers through Clubs and to families in Fairs this fall 6
Slide 7: Education
Education Profits in Educational Technology and Services up significantly in fiscal 2012, driven by READ 180® Next Generation launch Focus on Common Core State Standards (CCSS), as positive catalyst for U.S. education and Scholastic Major, CCSS-aligned Educational Technology products to launch
Slide 8: International
International Strong, profitable growth in fiscal 2012, driven by success of The Hunger Games, improvements in UK Growth in Asia and continued improvement in UK to partly offset lower sales of The Hunger Games in fiscal 2013 Progress developing new curriculum programs for Asian and emerging ma
Slide 9: Maureen O'Connell, EVP, Chief Administrative Officer and CFO
Maureen O’Connell Executive Vice President, Chief Administrative Officer and Chief Financial Officer 9
Slide 10: Income Statement
Income Statement Fiscal Year $M (except per share) 2012 2011 Revenues $2,148.8 $1,887.9 Cost of goods sold 989.2 873.7 Selling, general and administrative expenses1 885.2 833.1 Bad debt expense2 12.3 13.6 Depreciation and amortization 68.8 60.1 Loss on leases and asset impairments3 7.0 3.4 Total ope
Slide 11: Segment Results
Segment Results Fiscal Year $M 2012 2011 Children's Book Publishing and Distribution Revenue $1,111.3 $922.0 1 Operating income (loss) 153.0 78.1 Educational Technology and Services Revenue $254.7 $230.8 Operating income (loss) 49.2 38.0 Classroom and Supplemental Materials Publishing Revenue $208.2
Slide 12: Free Cash Flow and Balance Sheet
Free Cash Flow and Balance Sheet $M May 31, 2012 May 31, 2011 1 Free cash flow (use) (12 month period ending) $147.6 $120.5 Accounts receivable, net $314.1 $220.3 Inventories, net $295.3 $308.7 Accounts payable $119.6 $120.1 Accrued royalties $92.7 $35.4 Total debt $159.3 $203.4 Cash and cash equiva
Slide 13: Key Elements of Fiscal 2013 Outlook
Key Elements of Fiscal 2013 Outlook In Children’s Books, lower expected sales of The Hunger Games, partially offset by new Trade releases and modest growth in Fairs In Educational Technology and Services, lower product sales, relative to prior year launch of READ 180 Next Generation, offset by g
Slide 14: Financial Guidance
Financial Guidance Revenue $1.9 to $2.0 billion Earnings from $2.20 to $2.40 per diluted share Continuing Operations Free Cash Flow $120 to $140 million Capital $65 to $75 million Expenditures Prepublication and $65 to $75 million Production Spending Note: Outlook for EPS and operating income exclud
Slide 15: Questions & Answers Participants
Questions & Answers Participants Richard Robinson Maureen O’Connell Ellie Berger, Trade Publishing Margery Mayer, Educational Technology & Services Judy Newman, School Book Clubs and E-Commerce 15