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Scholastic Q1 Loss Widens On Weak Revenues; Affirms FY18 View - Quick Facts

Scholastic Corp. (SCHL), a children's publishing, education and media company, reported Thursday that its first-quarter net loss widened to $63.7 million or $1.81 per share from last year's loss of $39.6 million or $1.15 per share.

Scholastic typically records a loss in its fiscal first quarter, when most U.S. schools are not in session.

Operating loss from continuing operations was $101.8 million versus a loss of $62.5 million in the prior year period.

Revenue in the first quarter was $189.2 million, down 33 percent from $282.7 million a year ago.

Children's Book Publishing and Distribution segment's revenue plunged 52 percent to $66.8 million. Education revenues declined 18 percent and international revenues fell 14 percent.

The company expected first quarter revenue declines, particularly in its Children's Book Publishing and Distribution and International segments, following the July 2016 publication of Harry Potter and the Cursed Child, Parts One and Two, the best-selling book in North America last year.

While Education sales were lower in the quarter based on timing, the Company expects to meet its revenue plan for the education business for the fiscal year.

Further, Scholastic affirmed its fiscal 2018 outlook for total revenue of $1.65 to $1.70 billion and earnings per share from continuing operations in the range of $1.20 to $1.30, excluding one-time items.

The Company continues to expect free cash use in the range of $10 to $20 million.

The company also announced the launch of Scholastic 2020 plan to drive profitability and sales growth.

by RTT Staff Writer

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