Scholastic Q1 2022 Earnings Report
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
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income