Press Release: Scholastic Reports First Quarter Fiscal 2015 Results

Classroom and Supplemental Materials Publishing. Segment revenue was $42.8 million, an increase of $5.0 million, or 13%, compared to $37.8 million in the prior year period. This increase was driven by higher sales of the Company's classroom books and guided and leveled reading programs, including the Guided Reading Blue 2^nd Edition with a non-fiction focus. Segment operating loss improved to $0.5 million, compared to the prior year operating loss of $1.6 million, due to the increased sales of the segment's guided reading programs and classroom books in the current quarter.

International. Segment revenue in the first quarter increased to $86.3 million, from $78.7 million in the prior year period, an increase of $7.6 million, or 10%, as a result of higher media and technology sales in Australia, improved performance across all key channels in the United Kingdom, and higher direct sales in Malaysia and Thailand. Foreign currency exchange rates favorably impacted revenue by $1.3 million in the quarter. Segment operating loss was $1.9 million, compared to a loss of $0.7 million in the prior year period, mainly as a result of a high margin education sale in the prior period along with costs associated with a one-time write-off of certain inventory and higher bad debt reserves in Canada in the current quarter, as well as increased investments associated with the segment's education publishing for international markets.

Media, Licensing and Advertising. Segment revenue in the first quarter was $10.6 million, up from $10.4 million in the prior year period, primarily as a result of higher sales of the Company's original animated programming, WordGirl® and Astroblast!^TM, and from increased advertising in the Company's consumer magazines group, as well as higher audio book sales. These results were partially offset by lower sales of interactive products and media content to streaming platforms. Segment operating loss was $3.9 million, compared to a loss of $1.9 million last year, primarily due to higher cost of product in consumer magazines and higher amortization of production expenses for new programming.