Children's books publisher Scholastic Corp. (SCHL) reported Thursday wider loss in its first quarter, mainly reflecting higher costs, despite increased revenues. The company also affirmed its forecast for fiscal 2015 earnings and revenues.
The first-quarter net loss widened to $34.1 million or $1.05 per share from a loss of $29.9 million or $0.94 per share in the prior-year period.
The latest quarter results included one-time expenses of $0.02 per share related to severance as a result of the company's cost reduction programs. The year-ago quarter included one-time expenses of $0.04 per share. Scholastic typically records a loss in its fiscal first quarter, when most U.S. schools are not in session.
First-quarter operating loss widened primarily due to lower results in the company's Educational Technology segment, including higher amortization costs related to the new programs, and slightly higher losses in certain international markets. It also includes the company's media operations due to higher amortization costs for new programming.
Revenue for the latest quarter, however, grew 3 percent to $283.8 million from $276.3 million last year.
The company attributed the revenue increases primarily to gains in guided reading and classroom book collections, educational technology math products and programs, international channels, and school clubs and fairs.
Clubs and fairs' combined 20 percent revenue growth reflected a continuing positive trend, the firm said.
Educational Technology business was hurt by a tough comparison due to the launch of a new slate of products in the first quarter of last year.
International segment revenue increased 10 percent, as a result of higher media and technology sales in Australia, improved performance across all key channels in the United Kingdom, and higher direct sales in Malaysia and Thailand.
Looking ahead, Scholastic continues to expect fiscal 2015 earnings per share from continuing operations in the range of $1.80 to $2.00, and total revenue of approximately $1.9 billion.
Regarding its Educational Technology segment, Chairman, President and Chief Executive Officer Richard Robinson said the company expects to see higher revenues from its various initiatives over the remainder of the fiscal year.
The company continues to expect free cash flow in the range of $65 to $85 million.
The company's Board of Directors recently declared a quarterly cash dividend of $0.15 per share for the second quarter.
On Nasdaq, Scholastic shares settled at $34.02 on Wednesday, up 1.37 percent.
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