Press Release: Scholastic Reports Fiscal 2015 Second Quarter Results

Second Quarter Results
Children's Book Publishing and Distribution. Segment revenue in the second quarter was $402.6 million, compared to $352.1 million in the prior year period, an increase of $50.5 million, or 14%. In School Book Clubs, higher engagement levels of both teachers and parents, evidenced by a higher number of orders, drove a $32.2 million, or 33%, increase in revenues to $129.6 million, compared to $97.4 million in the prior year period. In School Book Fairs, revenue increased by 8% to $217.4 million, reflecting higher revenue per fair and an increase in the number of fairs held, as compared to $202.2 million in the prior year period. In Trade, sales of the successful Minecraft handbook series helped drive a 6% increase in revenues. Overall segment operating income improved by $39.4 million, or 57%, to $108.3 million versus $68.9 million in the prior year period as a result of the higher sales volume, together with lower investment in Storia in the current quarter. This favorable comparison also benefitted from an impairment charge of $13.4 million related to goodwill from legacy acquisitions taken in the prior year period.