Scholastic Corporation · NASDAQ:SCHL
Scholastic — Q2 FY2011 Earnings Presentation
12 slides from Scholastic's earnings presentation, Dec 16, 2010
Slide 1: Fiscal 2011 Second Quarter Earnings Presentation
FISCAL 2011 SECOND QUARTER EARNINGS PRESENTATION 1 December 16, 2010
Slide 2: Forward-Looking Statements
Forward--Looking Statements Forward 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 oth
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 Solid growth in School Book Fairs, driven by higher revenue per fair Solid growth in Trade, reflecting best-selling series including The Hunger Games, The 39 Clues and Harry Potter Sustained sales and teacher participation in School Book Clubs, following successful implementation of
Slide 6: Digital Initiatives
Digital Initiatives Leveraging continued strength in traditional, print children’s book business to grow digital opportunities – ecommerce and ebooks Began end-to-end testing of ebook delivery system Successful initial tests of ereader software application with children Enthusiastic response to eboo
Slide 7: Educational Publishing
Educational Publishing Sales and profits lower than fiscal 2010, when federal stimulus funds drove record results – Revenue up strongly from fiscal 2009 (pre-stimulus) Strong growth in services to expanded customer base partially offset lower product sales Sustained higher service revenues and new p
Slide 8: Maureen O'Connell, Executive Vice President, Chief Administrative Officer and CFO
Maureen O’Connell Executive Vice President, Chief Administrative Officer and Chief Financial Officer 8
Slide 9: Income Statement
Income Statement $M (except per share) Q2 2011 Q2 2010 Revenue $675.7 $660.1 Cost of goods sold 296.2 273.6 1 Selling, general and administrative expenses 233.3 221.6 Bad debt expense 3.0 4.4 Depreciation and amortization 14.5 14.8 2 Impairment charges - 40.1 Total operating costs and expenses 547.0
Slide 10: Free Cash Flow and Balance Sheet
Free Cash Flow and Balance Sheet $M Nov 30, 2010 Nov 30, 2009 1 Free cash flow (3 month period) $132.8 $141.3 Accounts receivable, net $287.7 $284.6 Inventories, net $371.6 $374.7 Accounts payable $164.5 $134.4 Accrued royalties $48.8 $47.9 Total debt $231.2 $279.6 Cash and cash equivalents 54.4 178
Slide 11: Outlook
Outlook Revising FY11 outlook: Earnings per diluted share1 $1.80 to $2.05 Revenue $1.9 to $1.95 billion Maintaining other elements of FY11 outlook: Free cash flow $90 to $100 million Capital expenditures $50 to $60 million Prepublication and $65 to $75 million Production Spending 1Earnings per dilut
Slide 12: Questions & Answers
Questions & Answers Participants Richard Robinson Maureen O’Connell Ellie Berger, Scholastic Trade Publishing Deborah Forte, Scholastic Media Margery Mayer, Scholastic Education Judy Newman, Scholastic Book Clubs Hugh Roome, Scholastic Consumer and Professional Publishing 12