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Feb 28, 2021
Scholastic Q3 2021 Earnings Report
Scholastic's Q3 2021 earnings were reported with a reduced operating loss driven by cost reductions.
Key Takeaways
Scholastic Corporation reported a decrease in revenue by 26% compared to the third quarter of 2020, mainly due to lower sales in the Company's book fairs operations impacted by COVID-related conditions. However, the impact on operating income from this revenue shortfall was offset by the continued effect of the Company's cost reduction program, resulting in a year-over-year improvement in the Company's quarterly operating loss.
Third quarter revenue was $277.5 million, a decrease of 26% compared to $373.3 million in the third quarter of 2020.
Operating loss in the third quarter was $24.2 million, compared to an operating loss of $60.0 million a year ago.
Net loss for the current period was $13.9 million, compared to a net loss in the prior year period of $43.3 million.
The Company had free cash flow of $5.5 million in the current quarter, up $0.6 million as compared to free cash flow of $4.9 million a year ago.
Scholastic
Scholastic
Scholastic Revenue by Segment
Scholastic Revenue by Geographic Location
Revenue by Segment
Children's Book Publishing & Dist. Revenue
CapyFin.comEducation Solutions Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
Scholastic sees increasing opportunities to help students returning to the classroom. However, given continued COVID-related uncertainty, Scholastic is not providing a financial outlook for the remainder of its 2021 fiscal year.
Positive Outlook
- Augmented marketing efforts are driving an increase in spring fair bookings.
- New summer reading campaigns in clubs, fairs and education are expected to have a favorable impact on the Company's fourth quarter revenues.
- Scholastic's trade spring frontlist features the next titles from a number of the Company's top-selling properties and authors, including Dav Pilkey and Wings of Fire™ author, Tui T. Sutherland.
Challenges Ahead
- Continued COVID-related uncertainty.
Revenue & Expenses
Visualization of income flow from segment revenue to net income