Company Overview - Scholastic Corporation has been a leader in children's publishing for over 100 years, focusing on literacy and educational content [1] - The company is the largest publisher and distributor of children's books globally, reaching over 135 countries [1] Earnings Announcement - Scholastic will release its fourth quarter and fiscal year 2025 earnings on July 24, 2025, at 4:00 PM ET [2] - A conference call will follow at 4:30 PM ET, hosted by the President and CEO, Peter Warwick, and CFO, Haji Glover [2] - Participants are encouraged to join the call five minutes early to avoid delays [2] Access Information - The earnings release will be available on the company's investor relations website [2] - A live webcast of the conference call can be accessed online, with archived materials available shortly after the call [2]

NEW YORK, June 23, 2025 /PRNewswire/ -- Scholastic Corporation (NASDAQ: SCHL), the global children's publishing, education and media company, today provides an update on key strategic and operational initiatives to enhance shareholder value. These actions accelerate Scholastic's ongoing efforts to achieve greater profitability and long-term growth and reinforce the Company's commitment to efficient capital allocation. In addition, the Company announced that it now expects fiscal 2025 Adjusted EBITDA (as def ...

Core Insights - Scholastic has announced the formation of a new Children's Book Group, integrating its Trade Publishing, Book Fairs, and Book Clubs divisions, effective June 1, 2025, under the leadership of Sasha Quinton [1][2] - The reorganization aims to enhance Scholastic's ability to reach children through a unified approach across various channels, maximizing the value of its intellectual property [2][3] Leadership Changes - Sasha Quinton, previously President of School Reading Events, will take on the role of Executive Vice President and President of the Scholastic Children's Book Group, expanding her responsibilities to include Trade Publishing [2][3] - Jackie De Leo joins as Publisher and Chief Merchant, starting June 2, 2025, bringing over 25 years of experience in trade publishing and bookselling [3][4] Strategic Focus - The new structure is designed to improve collaboration between editorial, distribution, and merchandising, thereby enhancing the company's 360-degree IP creation strategy [2][3] - Scholastic aims to maintain its leading position in children's publishing while creating new stories and characters that resonate with children [3] Future Outlook - The company plans to provide additional details regarding the organization and strategic outlook for the Children's Book Group during its fiscal 2025 results announcement in July [5]

Core Viewpoint - Scholastic has appointed Chris Lick as Executive Vice President, General Counsel, and Corporate Secretary, effective June 1, 2025, succeeding Andrew Hedden who retired after 17 years in the role [1][2]. Group 1: Leadership Transition - Chris Lick will report directly to President and CEO Peter Warwick and is recognized as a key strategic partner to the executive leadership [2]. - Lick has been with Scholastic since 2008, holding various senior positions, most recently as Senior Vice President and Deputy General Counsel [3]. Group 2: Responsibilities and Expertise - In his new role, Lick will provide strategic legal counsel for Scholastic and its Board, overseeing critical legal functions such as trademarks, litigation, compliance, information security, content development, and strategic alliances and acquisitions [2]. - Lick brings nearly 25 years of legal experience, including corporate governance, technology, and intellectual property, and has served as a key advisor at the senior executive level [3]. Group 3: Company Overview - Scholastic Corporation has been a leader in children's publishing and education for over 100 years, focusing on literacy and creating quality content for children [4]. - The company is the largest publisher and distributor of children's books globally, reaching over 135 countries and promoting lifelong reading and learning [4].

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Part I - Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements for Q3 FY2025, covering operations, balance sheets, cash flows, and notes [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 FY2025 revenues increased, operating loss narrowed, and net loss significantly improved to $(3.6) million Q3 & YTD FY2025 vs FY2024 Statement of Operations (in millions, except per share data) | Metric | Three Months Ended Feb 28, 2025 | Three Months Ended Feb 29, 2024 | Nine Months Ended Feb 28, 2025 | Nine Months Ended Feb 29, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $335.4 | $323.7 | $1,117.2 | $1,114.8 | | **Operating income (loss)** | $(23.9) | $(34.9) | $(37.7) | $(32.7) | | **Net income (loss)** | $(3.6) | $(26.5) | $(17.3) | $(23.8) | | **Diluted earnings (loss) per share** | $(0.13) | $(0.91) | $(0.61) | $(0.80) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $1,961.3 million due to the 9 Story acquisition, with rising liabilities and decreasing equity Balance Sheet Summary (in millions) | Metric | Feb 28, 2025 | May 31, 2024 | Feb 29, 2024 | | :--- | :--- | :--- | :--- | | **Total current assets** | $757.0 | $676.9 | $728.7 | | **Total assets** | $1,961.3 | $1,671.2 | $1,715.2 | | **Total current liabilities** | $616.7 | $534.7 | $608.5 | | **Total liabilities** | $1,020.0 | $653.1 | $717.6 | | **Total stockholders' equity** | $941.3 | $1,018.1 | $997.6 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased, investing cash flow surged for the 9 Story acquisition, and financing cash flow turned positive Nine-Month Cash Flow Summary (in millions) | Cash Flow Activity | Nine Months Ended Feb 28, 2025 | Nine Months Ended Feb 29, 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $17.3 | $84.7 | | **Net cash provided by (used in) investing activities** | $(232.0) | $(69.5) | | **Net cash provided by (used in) financing activities** | $197.6 | $(129.4) | | **Net increase (decrease) in cash and cash equivalents** | $(19.0) | $(114.1) | | **Cash and cash equivalents at end of period** | $94.7 | $110.4 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, 9 Story acquisition, amended credit agreement, and subsequent events including dividends and share repurchases - The company completed the acquisition of 9 Story on June 20, 2024, for an aggregate purchase price of **$193.7 million**, funded through borrowings. This acquisition enhances the company's development, production, and licensing capabilities[62](index=62&type=chunk) - The acquisition of 9 Story resulted in the recognition of **$71.0 million** in Goodwill and **$85.3 million** in amortizable intangible assets, which were allocated to the new Entertainment segment[65](index=65&type=chunk)[72](index=72&type=chunk)[74](index=74&type=chunk) - On November 26, 2024, the company amended its credit agreement, increasing the unsecured revolving credit facility to **$400.0 million** from **$300.0 million** and extending the maturity date to November 26, 2029[45](index=45&type=chunk)[46](index=46&type=chunk)[48](index=48&type=chunk) - Subsequent to the quarter's end, on March 19, 2025, the Board declared a quarterly dividend of **$0.20 per share** and increased the share repurchase authorization by **$53.4 million**, bringing the total current authorization to **$100.0 million**[104](index=104&type=chunk)[105](index=105&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A discusses Q3 FY2025 revenue growth, improved operating loss, segment performance, liquidity, and future outlook [Overview and Outlook](index=29&type=section&id=Overview%20and%20Outlook) Q3 FY2025 revenues grew and net loss per share improved, but the outlook anticipates continued spending headwinds and production delays Q3 FY2025 Key Metrics | Metric | Q3 FY2025 | Q3 FY2024 | Change | | :--- | :--- | :--- | :--- | | **Revenues** | $335.4M | $323.7M | +4% | | **Net Loss per Diluted Share** | $(0.13) | $(0.91) | Improved | - Future outlook is cautious, expecting increased spending headwinds to impact the trade channel and book fairs, and delays in production greenlights to affect the Entertainment segment in the near-term[107](index=107&type=chunk) [Results of Operations by Segment](index=31&type=section&id=Results%20of%20Operations%20by%20Segment) Q3 segment performance was mixed, with Children's Book Publishing growth, Education Solutions decline, and new Entertainment segment results Q3 FY2025 Segment Performance (in millions) | Segment | Revenue | % Change YoY | Operating Income (Loss) | Operating Income (Loss) YoY | | :--- | :--- | :--- | :--- | :--- | | **Children's Book Publishing & Distribution** | $203.3 | +5.3% | $7.6 | $2.3 | | **Education Solutions** | $57.2 | -16.5% | $(6.9) | $(0.8) | | **Entertainment** | $12.8 | NM | $(3.9) | $(3.1) | | **International** | $59.3 | +0.3% | $(2.1) | $(5.9) | - Children's Book Publishing and Distribution growth was driven by a $9.9 million increase in School Reading Events, particularly a higher fair count in the book fairs channel[122](index=122&type=chunk) - Education Solutions' decline was attributed to school districts decreasing spending on supplemental programs to focus on new core programs[129](index=129&type=chunk) - The Entertainment segment's results reflect the addition of 9 Story, though revenues have been impacted by delays in production greenlights from major platforms[139](index=139&type=chunk)[140](index=140&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity changed significantly due to the 9 Story acquisition, with decreased operating cash flow and increased financing from borrowings - Cash provided by operating activities decreased by **$67.4 million** for the nine-month period, primarily due to lower customer remittances and increased inventory and royalty payments[159](index=159&type=chunk) - Cash used in investing activities increased by **$162.5 million**, driven by the **$176.2 million** net cash paid for the 9 Story acquisition[160](index=160&type=chunk) - Cash provided by financing activities increased by **$327.0 million**, mainly due to **$275 million** in borrowings to fund the 9 Story acquisition, while share repurchases decreased to **$40.0 million** from **$143.0 million** YoY[161](index=161&type=chunk) - As of February 28, 2025, the company had **$124.6 million** of availability under its U.S. Credit Agreement and **$16.2 million** under other short-term facilities[165](index=165&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Outlines primary market risks from foreign currency and interest rate fluctuations, detailing debt obligations and risk management - The company's main market risks stem from foreign currency exchange rate changes and interest rate volatility on its variable-rate borrowings[169](index=169&type=chunk)[170](index=170&type=chunk) Debt Obligations as of February 28, 2025 (in millions) | Debt Type | Total Fair Value | Average Interest Rate | | :--- | :--- | :--- | | **Lines of credit and current portion of long-term debt** | $5.8 | 4.9% | | **Long-term debt** | $275.0 | 6.1% | | **Film related obligations** | $18.8 | ~6.3% (weighted avg) | [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) CEO and CFO concluded disclosure controls and procedures were effective, with no material changes to internal financial reporting controls - The CEO and CFO have certified that the company's disclosure controls and procedures were effective as of the end of the quarter[173](index=173&type=chunk) - There were no material changes to the company's internal control over financial reporting during the third fiscal quarter[173](index=173&type=chunk) Part II - Other Information [Business](index=40&type=section&id=Item%201.%20Business) Confirms no material business changes except for the new Entertainment segment, incorporating 9 Story for content development and licensing - The company has established a new fourth reportable segment: Entertainment[176](index=176&type=chunk) - The Entertainment segment includes the newly acquired 9 Story and the existing Scholastic Entertainment Inc. (SEI), which was previously part of the Children's Book Publishing and Distribution segment[176](index=176&type=chunk) - The segment's activities include content development, production via its in-house animation studio Brown Bag Films, and global distribution and licensing of its large programming library[177](index=177&type=chunk) [Risk Factors](index=41&type=page&id=Item%201a.%20Risk%20Factors) Introduces new risk factors post-9 Story acquisition, including potential loss of Canadian tax credits, content buyer dependence, and integration risks - A new risk is the potential loss of Canadian government tax credits, which are crucial for financing productions, if the acquired entity (9 Story) ceases to be controlled by Canadian nationals[181](index=181&type=chunk) - The entertainment business faces risks from the rapidly evolving media industry, including consolidation of platforms and changing consumer habits, which could impact demand for its content[182](index=182&type=chunk) - There is a risk that the company may not achieve the expected synergies and financial benefits from the 9 Story acquisition, which could adversely affect financial performance[183](index=183&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details common stock repurchases during Q3 FY2025, with 1,450,274 shares repurchased, and a subsequent increase in authorization Share Repurchases for Q3 FY2025 | Period | Total Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | Dec 2024 | 235,336 | $21.23 | | Jan 2025 | 237,344 | $21.05 | | Feb 2025 | 977,594 | $20.44 | | **Total** | **1,450,274** | **N/A** | - Subsequent to February 28, 2025, the Board authorized an increase of **$53.4 million** for common stock repurchases, bringing the total current authorization to **$100 million**[184](index=184&type=chunk) [Other Information](index=43&type=section&id=Item%205.%20Other%20Information) Reports no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q3 FY2025 - No directors or officers informed the company of the adoption or termination of a Rule 10b5-1 trading arrangement during the third quarter[187](index=187&type=chunk) [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including the Third Amendment to the Credit Agreement and CEO/CFO certifications - Key exhibits filed include the Third Amendment to the Credit Agreement and CEO/CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act[189](index=189&type=chunk)[190](index=190&type=chunk)

Financial Performance - Scholastic's Q3 2025 revenues increased by 4% year-over-year, reaching $335.4 million compared to $323.7 million in Q3 2024 [8] - The company's operating loss improved by 32%, with a loss of $23.9 million in Q3 2025 compared to a loss of $34.9 million in Q3 2024 [8] - Adjusted EBITDA for Q3 2025 was $6.0 million, a 183% increase compared to $(7.2) million in Q3 2024 [8, 18] - Diluted loss per share improved by 86%, from $(0.91) in Q3 2024 to $(0.13) in Q3 2025 [8] Segment Performance - Children's Book Publishing and Distribution revenues increased by 5%, totaling $203.3 million in Q3 2025 compared to $193.1 million in Q3 2024 [6, 10] - Education Solutions revenues decreased by 16%, amounting to $57.2 million in Q3 2025 compared to $68.5 million in Q3 2024 [6, 10] - Entertainment revenues significantly increased, reaching $12.8 million in Q3 2025 compared to $0.5 million in Q3 2024, driven by the acquisition of 9 Story Media Group [6, 10] - International revenues increased by 5% excluding FX impact [6] Fiscal Year 2025 Outlook - The company refined its FY25 Adjusted EBITDA outlook to approximately $140 million [4, 14] - Modest revenue growth is expected year-over-year [4, 14] - Free cash flow outlook remains between $20 million and $30 million [14]

Scholastic Corporation (NASDAQ:SCHL) Q3 2025 Earnings Conference Call March 20, 2025 4:30 PM ET Company Participants Jeffrey Mathews - Chief Growth Officer and Executive Vice President Peter Warwick - President and Chief Executive Officer Haji Glover - Chief Financial Officer and Executive Vice President Conference Call Participants Brendan McCarthy - Sidoti Operator Good day, and thank you for standing by. Welcome to the Scholastic Reports Third Quarter Fiscal Year 2025 Results. [Operator Instructions] Ple ...

Scholastic (SCHL) Q3 2025 Earnings Call March 20, 2025 10:31 PM ET Company Participants Jeffrey Mathews - Executive VP & Chief Growth OfficerPeter Warwick - President & CEOHaji Glover - CFO & Executive Vice President Conference Call Participants Brendan McCarthy - Equity Analyst Operator Good day and thank you for standing by. Welcome to the Scholastic Reports Third Quarter Fiscal Year twenty twenty five Results. At this time, all participants are in a listen only mode. Please be advised that today's confer ...

Core Insights - Scholastic reported a quarterly loss of $0.05 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.78, and an improvement from a loss of $0.80 per share a year ago, indicating an earnings surprise of 93.59% [1] - The company posted revenues of $335.4 million for the quarter ended February 2025, missing the Zacks Consensus Estimate by 3.53%, but showing an increase from $323.7 million in the same quarter last year [2] - Scholastic shares have declined approximately 10.2% year-to-date, underperforming the S&P 500, which has seen a decline of 3.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.93 on revenues of $521.52 million, and for the current fiscal year, it is $0.84 on revenues of $1.65 billion [7] - The estimate revisions trend for Scholastic is mixed, leading to a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Publishing - Books industry, to which Scholastic belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% of industries [8]