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Scholastic Reports Fiscal 2026 First Quarter Results
Prnewswire· 2025-09-18 20:01
Core Insights - Scholastic Corporation reported financial results for the fiscal first quarter ended August 31, 2025, affirming its fiscal 2026 guidance despite a seasonal operating loss [1][2][6] - The company experienced a decrease in revenues by 5% to $225.6 million, primarily due to lower sales in the Education Solutions segment [6][7] - Adjusted EBITDA improved by 8% to a loss of $55.7 million, reflecting a reduction in discretionary overhead expenses and higher revenues in the Children's Book Publishing and Distribution segment [7][8] Financial Performance - Revenues decreased from $237.2 million in fiscal 2025 to $225.6 million in fiscal 2026, a decline of $11.6 million or 5% [6][7] - Operating loss increased to $92.2 million from $88.5 million year-over-year, with one-time charges impacting both periods [7][8] - Diluted earnings per share fell to $(2.83) from $(2.21), a decrease of 28% [6][7] Segment Analysis - Children's Book Publishing and Distribution segment revenues increased by 4% to $109.4 million, driven by strong performances in book fairs and franchises like Hunger Games [9][11] - Education Solutions revenues decreased by 28% to $40.1 million due to funding uncertainties affecting school purchases [12][13] - Entertainment segment revenues fell by 18% to $13.6 million, primarily due to anticipated production delays [13][14] Capital Position and Liquidity - Net cash used by operating activities was $81.8 million, compared to $41.9 million in the prior year, reflecting lower net income and seasonal working capital needs [16][18] - Free cash flow usage increased to $100.2 million from $68.7 million year-over-year, driven by higher operating cash use [16][18] - Net debt rose to $242.8 million from $152.1 million, influenced by working capital requirements and dividends [18][19] Strategic Initiatives - The company is focused on optimizing capital allocation and strengthening its balance sheet, including evaluating potential sale-leaseback transactions for key real estate assets [6][20] - Scholastic is expanding its digital and licensing revenue streams through new initiatives, including a Scholastic-branded streaming app and tie-in products for new IP [4][6] - The company aims to enhance its Education division by refining its product portfolio and aligning marketing strategies to better meet educators' needs [5][12]
Forget QQQ: This ETF Marries the Magnificent 7 and Communications
MarketBeat· 2025-09-10 17:13
Group 1 - The technology sector is favored by financial media, retail investors, and sell-side firms, particularly due to its association with AI and the Magnificent Seven stocks [1] - Invesco QQQ Trust is a leading tech-focused ETF with $364.41 billion in assets under management, heavily weighted towards the Magnificent Seven stocks, with NVIDIA being the largest holding at 9.95% [2] - The top 10 holdings of QQQ account for 52.2% of the portfolio, indicating a concentration risk [3] Group 2 - The Communication Services sector has shown strong performance since the S&P 500's rebalancing in September 2018, finishing in the top three sectors four times and achieving an average annual return of 16.33% [4][5] - In 2023, the Communication Services sector has a year-to-date gain of 18.60%, outperforming all other sectors [6] - The sector combines growth potential, consistent consumer demand, and defensive characteristics during market downturns [7] Group 3 - The Communication Services Select Sector SPDR Fund (XLC) has gained 127.41% since its launch in June 2018, outperforming QQQ's 91.69% increase over the same period [10] - XLC has lower assets under management at $26.14 billion but offers a lower expense ratio of 0.08% and a higher dividend yield of 0.92% compared to QQQ [11] - XLC's largest holding, Meta Platforms, has an 18.81% weighting, contributing to greater diversification and lower implied volatility of 10.9% compared to QQQ's 17.45% [12] Group 4 - XLC is currently trading at a price-to-earnings (P/E) multiple of 19.40, which is considered fair in a market with high valuations, while QQQ's P/E is 33.33 [13] - XLC has seen a significant decrease in short interest, dropping from 12-14 million shares in July to 5.8 million shares, indicating a reduction in bearish sentiment [15][16] - Institutional buying has outpaced selling, with inflows of $21.59 million exceeding outflows of $2.77 billion over the past 12 months [17]
Comcast Supports American Small Business Growth Awarding 100 Grant Packages to Entrepreneurs in Grand Rapids & Muskegon
Prnewswire· 2025-08-19 14:05
Group 1 - Comcast RISE has provided $160 million in support to 14,500 small businesses nationwide since its launch, now in its fifth year [1][4] - The initiative is part of Project UP, a $1 billion commitment by Comcast to enhance digital opportunities and connectivity [4] - Comcast is awarding 100 new grant packages to entrepreneurs in the Grand Rapids and Muskegon areas, with grants to be awarded in September 2025 [1][2] Group 2 - Each grant package includes a $5,000 monetary grant, technology makeover, creative production, educational resources, and business consultation services [2][9] - Notable grant recipients include Mitch Ermatinger of Speciation Cellars, Michael Hyacinthe of Wimee's World, and Laura Kruisenga of Kennari Consulting [2][3] - Comcast RISE aims to support local entrepreneurs, emphasizing the importance of small businesses in driving community innovation and job creation [5] Group 3 - The initiative also announced grant recipients in four other regions: Boston, Nashville, Seattle, and South Valley, totaling 500 recipients this year [5] - Comcast Business provides advanced technology solutions to small businesses, while Comcast Advertising leads in data and media connections [7]
Comcast Supports American Small Business Growth Awarding 100 Grant Packages to Entrepreneurs in Nashville, TN
Prnewswire· 2025-08-19 14:05
Core Insights - Comcast RISE has provided $160 million in support to 14,500 small businesses across the U.S. since its launch, emphasizing the importance of small businesses in community growth [1][3] - In 2025, Comcast RISE awarded 100 new grant packages in Nashville, which will include a $5,000 monetary grant, technology makeover, creative production, educational resources, and business consultation services [1][4][9] Comcast RISE Initiative - Comcast RISE is part of Project UP, a $1 billion initiative aimed at enhancing digital opportunities and connectivity for communities [3] - The program aims to equip small businesses with necessary resources to thrive in a digital economy [4][6] Grant Recipients and Impact - In addition to Nashville, grants were awarded in Boston, Grand Rapids, Seattle, and South Valley, totaling 500 recipients for the year [4] - Notable Nashville recipients include Third Coast Comedy Club, Voces De Nashville, and Neely's Nashville, each expressing gratitude for the support and resources provided [4][5] Grant Package Components - Each grant package includes a technology makeover with computer equipment and 12 months of internet and cybersecurity services [6] - Recipients will receive a professionally produced 30-second TV commercial, media strategy consultation, and a 180-day media schedule [6][9] - Additional resources include 24/7 access to online entrepreneurship courses, a $5,000 monetary grant, and personalized business coaching [9]