Scholastic Corporation · NASDAQ:SCHL
Scholastic — Q1 FY2024 Earnings Presentation
14 slides from Scholastic's earnings presentation, Sep 21, 2023
Slide 1: First Quarter 2024 Earnings Call Presentation
RBSCHOLASTIC First Quarter 2024 Earnings Call Presentation Thursday, September 21, 2023
Slide 2: Forward-Looking Statements / Regulation G
Forward-Looking Statements / Regulation G This presentation contains certain statements made today which will be forward-looking. These forward-looking statements, by their nature, are subject to various risks and uncertainties, and actual results may differ materially from those currently anticipat
Slide 3: Peter Warwick, President and Chief Executive Officer
Peter Warwick President and Chief Executive Officer
Slide 4: First Quarter 2024 Highlights
First Quarter 2024 Highlights e Well-positioned ahead of back-to-school season, building on last quarter's momentum and strong results e Steps taken to structure Scholastic for future growth, including reorganizations of U.S. and Canada Book Clubs and key leadership changes e Lower results in season
Slide 5: First Quarter 2024 Segment Highlights
First Quarter 2024 Segment Highlights e Children’s Books revenues decreased 18% e Consolidated Trade revenues declined 19%, reflecting industry-wide softness in retail book market; encouraged by exciting frontlist titles publishing and streaming series launching this year Revenue and profit trends i
Slide 6: Ken Cleary, Chief Financial Officer
Ken Cleary Chief Financial Officer
Slide 7: Children's Book Publishing and Distribution
Three Months Ended In $ Millions 08/31/2023 08/31/2022 Change Children’s Book Publishing and Distribution Book Clubs $ 2.6 $ 6.3 (59) % Book Fairs 27.3 28.3 (4)% School Reading Events 29.9 34.6 (14) % Consolidated Trade 72.9 90.1 (19) % Total Revenues 102.8 124.7 (18) % Operating income (loss) (41.5
Slide 8: Free Cash Flow and Balance Sheet Items
August 31, August 31, In $ Millions 2023 2022 Free cash flow (use) (3 month period ending) (1) $ (57.8) $ (76.5) Accounts receivable, net 201.9 242.9 Inventories, net 353.2 379.1 Accounts payable 167.7 208.9 Deferred revenue 171.1 182.6 Accrued royalties 72.0 85.0 Total debt 5.9 6.3 Cash and cash eq
Slide 9: Fiscal 2024 Outlook
Fiscal 2024 Outlook e = Affirming FY24 guidance for revenue growth of 3% to 5% and Adjusted EBITDA of $190 million to $200 million o Excludes impact of approximately $7 million to $10 million of one-time charges related to restructuring and cost-savings, of which $6.3 million were incurred in QL e P
Slide 10: Peter Warwick, President and Chief Executive Officer
Peter Warwick President and Chief Executive Officer
Slide 11: Q&A
Slide 12: Appendix
Appendix
Slide 13: Adjusted EBITDA Reconciliation
Three Months Ended In $ Millions 8/31/2023 8/31/2022 Earnings (loss) before income taxes as reported $ (98.0) $ (57.9) One-time items before income taxes 6.3 — Earnings (loss) before income taxes excluding one-time items (91.7) (57.9) Interest (income) expense (1.4) (0.2) Depreciation and amortizati
Slide 14: First Quarter 2024 Diluted Earnings (Loss) Per Share
In $ Millions (except per share) First Quarter 2024 First Quarter 2023 Excluding One- Excluding One- As Reported One-Time Items Time Items As Reported One-Time Items Time Items Diluted earnings (loss) per share (1) $ (2.35) $ 0.15 $ (2.20) $ (1.33) $ — $ (1.33) Net income (loss) (2) $ (74.2) $ 4.7 $