Press Release: Scholastic Reports Fiscal 2015 Second Quarter Results
Classroom and Supplemental Materials Publishing. Segment revenue in the quarter increased 6% to $64.8 million, compared to $60.9 million in the prior year period, as a result of higher sales of guided reading and other classroom book collections and higher circulation in classroom magazines. Segment operating income was $12.7 million, versus $11.6 million in the prior year period, an increase of 9%, primarily due to higher circulation in classroom magazines.
International. Segment revenue in the quarter was $132.8 million, versus $135.6 million in the prior year period, primarily due to unfavorable foreign exchange translation of $5.4 million as the result of a strengthening U.S. dollar. Higher local currency sales in the United Kingdom, Australia, the Asia-Pacific region and Export were partially offset by lower revenues in Canada due largely to the effect of a teachers' strike in British Columbia early in the quarter. In the United Kingdom, the Company's Chicken House imprint continued to perform well on the strength of its frontlist, including the top-selling The Maze Runner by James Dashner. Segment operating income was $19.9 million, compared to $22.2 million in the prior year period, primarily the result of the lower sales in Canada, as well as increased investment spending on new products and infrastructure.
Media, Licensing and Advertising. Segment revenue in the quarter was $14.5 million, compared to $13.7 million in the prior year period, an increase of 6%, primarily as a result of higher sales of both the Company's evergreen programming library of television shows to streaming platforms and original animated programs for the PBS and Sprout networks, partially offset by lower consumer magazines revenue. Segment operating loss was $0.7 million, compared to a loss of $1.3 million in the prior period, largely as a result of the higher programming revenues.
Other Financial Results. Corporate overhead in the second quarter was $18.7 million, excluding one-time items of $7.5 million, compared to $8.1 million in the prior year period, after excluding $5.5 million in one-time items. This increase was primarily due to higher investment in information technology in the current quarter, as well as higher depreciation expense related to the purchase of the Company's headquarters building.