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May 31, 2023
Scholastic Q4 2023 Earnings Report
Scholastic's Q4 2023 earnings increased, driven by improved results across all segments.
Key Takeaways
Scholastic reported a strong finish to fiscal 2023, with fourth-quarter operating income up significantly. Revenue increased by 3% to $528.3 million, and operating income rose by 40% to $92.0 million. The Children's Book Publishing and Distribution segment and Education Solutions segment drove the revenue growth.
Revenues increased 3% to $528.3 million, driven by growth in the Children’s Book Publishing and Distribution segment.
Operating income increased 40% to $92.0 million.
Children’s Book Publishing and Distribution segment revenues increased 5% to $291.0 million.
Education Solutions segment revenues increased 4% to $163.4 million.
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 expects fiscal 2024 revenue growth of 3% to 5% and is targeting Adjusted EBITDA of $190 to $200 million, excluding one-time charges.
Positive Outlook
- Focusing on protecting margins and sustaining growth in fiscal 2024.
- Executing a multi-year plan for growth, impact and shareholder value creation.
- Integrating Book Fairs and Clubs channels into an integrated School Reading Events business.
- Investing in new products and capabilities to grow blended literacy solutions.
- Using strong balance sheet and free cash flow to enable growth and enhance shareholder returns.
Challenges Ahead
- One-time charges related to restructuring and cost-savings activities of approximately $7 to $10 million.
- Integration of its School Reading Events division.
- Reorganization of its Canada subsidiary.
- Softness in the overall retail market.
- Schools and districts continue to delay purchases of other supplemental programs.