Press Release: Scholastic Reports First Quarter Fiscal 2015 Results
New York - September 25, 2014 - Scholastic Corporation (NASDAQ: SCHL), the global children's publishing, education and media company, today reported results for the Company's fiscal 2015 first quarter ended August 31, 2014.
Revenue in the first quarter was $283.8 million, compared to $276.3 million a year ago, an increase of $7.5 million, or 3%. The Company reported first quarter loss per share of $1.05, versus a loss per share of $0.94 in the prior year period. Results for the first quarter of fiscal 2015 included one-time expenses of $0.02 per share related to severance as a result of the Company's cost reduction programs. The prior year period included one-time expenses of $0.04 per share. Scholastic typically records a loss in its fiscal first quarter, when most U.S. schools are not in session.
First quarter revenue increases primarily reflected gains in guided reading and classroom book collections, educational technology math products and programs, international channels, and school clubs and fairs. While the first quarter is not significant for clubs and fairs since most schools are not in session, their combined 20% revenue growth reflects a continuing positive trend. In Educational Technology, most of the revenue decline compared to the prior year came from a tough comparison due to the launch of a new slate of products in the first quarter of last year, including a significant delivery of the Company's Common Core Code X® middle school language arts print curriculum for New York City. First quarter operating loss increased $7.5 million, or 16% compared to the loss in the prior year period, primarily due to lower results in the Company's Educational Technology segment, including higher amortization costs related to the new programs, and slightly higher losses in certain international markets, as well as in the Company's media operations due to higher amortization costs for new programming.