Press Release: Scholastic Reports Fiscal 2015 Third Quarter Results
Real Estate Update
As previously announced, the Company closed its retail store in the SoHo neighborhood of New York City in mid-January 2015 as part of its effort to maximize the value of space suitable for retail at its headquarters location at 557 Broadway.
For the first nine months of fiscal 2015, revenue was $1,331.5 million, compared to $1,273.0 million in the prior year period, an increase of $58.5 million, or 5%. Earnings per diluted share in the first nine months of the fiscal year were $0.37, compared to $0.50 a year ago, including one-time mostly non-cash charges of $0.24 and $0.09 per diluted share, respectively. The higher revenues are mainly attributable to stronger performance of the Company's book clubs and book fairs, and also in classroom books, all evidence of a greater focus on the impact of independent reading on improved student performance, as well as increased circulation of classroom magazines, whose print and digital offerings are a low-cost supplement to address the Common Core's requirement for non-fiction reading. This was partially offset by lower sales and profits in the Company's Educational Technology and Services operations and the impact of foreign exchange on the Company's international operations. On a year-to-date basis, the Company generated free cash flow of $44.2 million, compared to $18.6 million in the previous year.
To supplement our financial statements presented in accordance with GAAP, we include certain non-GAAP calculations and presentations. Please refer to the non-GAAP financial tables attached to this press release for supporting details on special one-time items and other financial measures included in this release. This information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP.
The Company will hold a conference call to discuss its results at 8:30 am ET today, March 26, 2015. Scholastic's Chairman, President and CEO, Richard Robinson, and Executive Vice President, CAO and CFO, Maureen O'Connell, will moderate the call.
The conference call and accompanying slides will be webcast and accessible through the Investor Relations section of Scholastic's website, scholastic.com. Participation by telephone will be available by dialing (877) 654-5161 from within the U.S. or +1 (678) 894-3064 internationally. Shortly following the call, an archived webcast and accompanying slides from the conference call will also be posted at investor.scholastic.com. An audio-only replay of the call will be available until Friday, April 3, 2015 by dialing (855) 859-2056 from within the U.S. or +1 (404) 537-3406 internationally, and entering access code 84964715.