Scholastic Corporation · NASDAQ:SCHL
Scholastic — Q1 FY2022 Earnings Presentation
18 slides from Scholastic's earnings presentation, Sep 23, 2021
Slide 1: First Quarter FY 2022 Earnings Call Presentation
ADD COVER IMAGE HERE First Quarter FY 2022 Earnings Call Presentation Thursday, September 23, 2021
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: Peter Warwick, President and Chief Executive Officer
Peter Warwick President and Chief Executive Officer 4
Slide 5: First Quarter FY 2022
First Quarter FY 2022 • In Q1, we worked to increase access to books and reading over the summer, and shifted to back-to-school offerings to support learning acceleration and social-emotional healing. • These efforts led to a 21% increase in revenue versus prior year and an improvement in our season
Slide 6: Children's Book Publishing & Distribution
Children’s Book Publishing & Distribution • In recent weeks, we have seen higher engagement from our book clubs teacher sponsors, and in fairs, higher revenue per fair. • There is an energy and appetite from school communities to ADD IMAGE HERE; FULL WIDTH AND host fairs. HEIGHT OF GREY BOX • Overal
Slide 7: Children's Book Publishing & Distribution
Children’s Book Publishing & Distribution • In Trade publishing, top-line growth increased 27% in Q1 versus FY21 in the same timeframe. • TIME included three Scholastic titles in “The 100 Best YA Books of All Time,” Brian Selznick’s Kaleidescope received a shining review ADD IMAGE HERE; in The New Y
Slide 8: Education Solutions
Education Solutions • Education Solutions reported an increase in revenues of 49% versus the prior year period. • Dr. Amanda Alexander, former Interim Chancellor of DC Public Schools, has joined Scholastic Education Solutions as Chief ADD IMAGE HERE; Academic Officer. FULL WIDTH AND HEIGHT OF GREY B
Slide 9: International
International • In International, a Q1 decrease in revenue is a reflection of how and where COVID-19 has caused new or continued disruptions. • Similar to the U.S., we anticipate that as restrictions lift in ADD IMAGE HERE; FULL WIDTH AND these disrupted areas, our recovery will resume, and we will
Slide 10: Fiscal Year 2022
Fiscal Year 2022 • Scholastic remains committed to our mission. We have unparalleled content, proprietary distribution, and deep relationships, which makes us unique in our ability to serve children. • Fairs are on the rise and educators are eager to refresh their classroom libraries through our col
Slide 11: Kenneth Cleary, Chief Financial Officer
Kenneth Cleary Chief Financial Officer 11
Slide 12: Q1 FY22 Earnings (before and after one-time items)
Q1 FY22 Earnings (before and after one-time items) In $ Millions (except per share) First Quarter 2022 First Quarter 2021 Excluding Excluding As One-Time One-Time As One-Time One-Time Reported Items Items Reported Items Items Diluted earnings (loss) per share (1) ($0.70) ($0.09) ($0.79) ($1.16) $0.2
Slide 13: Q1 FY22 Adjusted EBITDA
Q1 FY22 Adjusted EBITDA 8/31/2021 8/31/2020 Earnings (loss) before income taxes as reported ($33.3) ($51.8) One-time items before income taxes (4.2) 12.0 Earnings (loss) before income taxes excluding one-time items (37.5) (39.8) Interest (income) expense 1.3 1.2 1 Depreciation and amortization 16.4
Slide 14: Q1 FY22 Balance Sheet Items and Cash Flow
Q1 FY22 Balance Sheet Items and Cash Flow In $ Millions Aug 31, 2021 Aug 31, 2020 1 Free cash flow (use) (3 month period ending) $49.1 ($34.9) Accounts receivable, net $244.3 $219.6 Inventories, net $298.1 $323.2 Accounts payable $185.6 $168.3 Accrued royalties $65.8 $56.2 Total debt $89.5 $219.9 Ca
Slide 15: Q1 FY22 Revenues
Q1 FY22 Revenues In $ Millions Three Months Ended 8/31/2021 8/31/2020 Change Book Clubs $6.8 $5.8 $1.0 17% Book Fairs 16.0 13.2 2.8 21% Consolidated Trade 93.0 73.3 19.7 27% Total Children's Book Publishing and Distribution 115.8 92.3 23.5 25% Education Solutions 80.1 53.6 26.5 49% International 63.
Slide 16: FY22 Outlook
FY22 Outlook • Ramping up efforts to meet strong demand for products and solutions as schools return to in-person instruction. • Trade titles and series continue to lead best seller lists with a lot of enthusiasm for the Company's new fall releases. • Book fair bookings substantially higher than las
Slide 17: Questions
Questions For any questions, please contact Scholastic Investor Relations: [email protected] 17
Slide 18: RBASCHOLASTIC
RBASCHOLASTIC