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Aug 31, 2021
Scholastic Q1 2022 Earnings Report
Revenues increased driven by children's books and education, and book fair bookings continued to increase.
Key Takeaways
Scholastic reported a 21% increase in revenues for the first quarter of fiscal year 2022, primarily driven by growth in the U.S. trade and education channels. The company's operating loss improved by 44% compared to the prior year period, and net cash provided by operating activities increased by $89.6 million.
Consolidated revenues increased 21% to $259.8 million driven by the U.S. trade and education channels.
First quarter operating loss improved 44% to $32.0 million versus the prior year period.
Net cash provided by operating activities was $63.6 million compared to net cash used in operating activities of $26.0 million in the prior year period.
The Company had free cash flow of $49.1 million compared to a free cash use of $34.9 million in the prior year period.
Scholastic
Scholastic
Scholastic Revenue by Segment
Scholastic Revenue by Geographic Location
Revenue by Segment
Children's Book Publishing & Dist. Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
The Company is currently experiencing strong demand for its products and programs as schools begin to re-open this fall with rising book club sponsorship and increased book fair bookings and expects sequential improvements in its school-based distribution channels in each quarter of the current fiscal year.
Positive Outlook
- Rising book club sponsorship.
- Increased book fair bookings.
- Sequential improvements in school-based distribution channels expected.
- Well-positioned to meet expected demand in book fairs businesses in the U.S., Canada and UK.
- Benefit from a portion of new federal stimulus funds.
Challenges Ahead
- Higher labor costs.
- Discontinuation of certain COVID-related government subsidies.
- Inflationary pressures that could impact paper, freight and other operating costs.
- Supply chain issues.
- Potential labor shortages could adversely impact operating income through higher costs and/or revenue shortfalls.