NEW YORK, May 30, 2019 /PRNewswire/
-- Scholastic Corporation (NASDAQ:SCHL),
the global children's publishing, education and media company,
today announced a revised outlook for the fiscal year ending
May 31, 2019. The Company noted that
most of its annual operating income is typically recorded in its
fourth fiscal quarter.
Scholastic now expects fiscal 2019 revenue to be approximately
$1.64 billion. The Company also
expects fiscal 2019 Adjusted EBITDA to be in the range of
$120 to $130
million and earnings per diluted share, excluding one-time
items, to be in the range of $0.83 to
$1.03. The revised outlook includes
an adverse accounting impact of approximately $7.7 million in Adjusted EBITDA and $0.16 in earnings per diluted share from the
application of the new ASC 606 revenue recognition guidelines to
its Book Fairs incentive program, which had not been included in
the Company's prior outlook.
The Company has revised its estimates primarily as a result of
certain factors affecting its Children's Book Publishing and
Distribution segment in the fourth quarter. In Book Clubs, the
Company had lower than expected revenue largely due to the March
implementation of its sales tax collection program in response to
the Supreme Court Wayfair ruling. In Book Fairs, expenses were
higher than originally planned primarily due to increased
incentive-based promotions to address a more competitive
environment.
ASC 606, referred to above, requires that revenue attributable
to incentives provided in connection with each book fair held
during the accounting period be deferred until the actual
redemption of such incentives. In past years, the revenue
associated with such incentives was recognized immediately upon
completion of the book fair. The Company will recognize this
deferred revenue, and the resultant operating profit, in fiscal
2020, as the incentives are redeemed.
Scholastic will announce its fourth quarter and fiscal year
earnings results in July. The Company's Chairman, President and
Chief Executive Officer, Richard
Robinson, and its CFO, Ken
Cleary, will host a conference call and webcast to discuss
the fourth quarter and fiscal year earnings at that time. Further
details on the call and webcast will be issued in the coming
weeks.
About Scholastic
Scholastic Corporation (NASDAQ: SCHL) is the world's largest
publisher and distributor of children's books, a leading provider
of literacy curriculum, professional services and classroom
magazines, and a producer of educational and entertaining
children's media. The Company creates and distributes quality books
and e-books, print and technology-based learning programs for pre-K
to grade 12 and other products and services that support children's
learning and literacy both in school and at home. With 14
international operations and exports to 165 countries, Scholastic
makes quality, affordable books available to all children around
the world through school-based book clubs and book fairs, classroom
libraries, school and public libraries, retail and online. True to
its mission of 98 years to encourage the personal and intellectual
growth of all children beginning with literacy, the Company has
earned a reputation as a trusted partner to educators and families.
Learn more at www.scholastic.com.
Forward-Looking Statements
This news release contains certain forward-looking statements.
Such forward-looking statements are subject to various risks and
uncertainties, including the conditions of the children's book and
educational materials markets and acceptance of the Company's
products within those markets, and other risks and factors
identified from time to time in the Company's filings with the
Securities and Exchange Commission. Actual results could differ
materially from those currently anticipated.
SCHL: Financial
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SOURCE Scholastic Corporation