Press Release: Scholastic Reports Q4 and Fiscal 2014 Results and Fiscal 2015 Outlook
New York - July 24, 2014 - Scholastic Corporation (NASDAQ: SCHL), the global children's publishing, education and media company, today reported financial results for the Company's fiscal fourth quarter and full year ended May 31, 2014.
Fiscal 2014 Highlights
- 2014 EPS increased +43% to $1.36, on +2% revenue growth.
- Excluding special one-time items, 2014 EPS climbed +51% to $1.84, exceeding outlook.
- Book Clubs revenue rose +12% in the year on higher engagement levels and popular titles.
- Ed Tech sales grew +9%, led by award-winning new MATH 180® intervention program.
- MinecraftTM books top best seller lists with more releases planned for fiscal 2015.
"We are pleased with our performance in fiscal 2014, a year in which we grew sales and profits in the Company's major businesses in the U.S. before the impact of one-time, mostly non-cash, charges," said Richard Robinson, Chairman, President and Chief Executive Officer. "We began the year with the successful introduction of our new innovative educational technology products, including the ground-breaking math intervention program, MATH 180, that, together with our aligned professional development and services offerings, further strengthened our ability to offer comprehensive solutions to raise the bar on performance in schools and classrooms. Our reenergized book clubs hit stride in the second half of the year, with new mailing and incentive marketing strategies that, combined with an expanded line of popular and engaging titles, resulted in higher value orders and increased ordering frequency. In Trade, new bestsellers drove frontlist growth although annual trade revenues were down slightly, as expected, on lower Hunger Games trilogy sales. We also achieved manufacturing and distribution efficiencies across our businesses over the course of the year."
Fourth Quarter 2014 Results
Scholastic reported fourth quarter 2014 revenues of $549.3 million, an increase of $42.4 million, or 8%, compared to $506.9 million in the fourth quarter of 2013, resulting from higher sales in four of the Company's five operating segments. Revenues of the Company's international business were impacted by unfavorable foreign exchange of $5.6 million in the quarter. Operating income in the fourth quarter increased 21% to $48.6 million, compared to $40.3 million a year ago, with increased profitability in Children's Book Publishing and Distribution, Educational Technology and Services, and Classroom and Supplemental Materials Publishing. Consolidated earnings were $0.85 per diluted share, compared to $0.66 per diluted share in the fourth quarter of 2013, an increase of 29%.