Scholastic reported financial results for the Company’s fiscal 2016 second quarter ended November 30, 2015. The complete press release is available here.
Revenue in the second quarter, excluding the effects of foreign exchange on the Company’s international operations, was $619.0 million, compared to $611.1 million a year ago. Including the negative foreign exchange impact of $17.2 million in the current quarter, revenue as reported was $601.8 million, versus $611.1 million in the prior year period, a decrease of less than 2%. The Company reported second quarter earnings per diluted share from continuing operations of $1.85, versus $2.02 in the prior year period. Operating profit for the second quarter of fiscal year 2016 of $105.1 million was down 5% versus the prior year period. Results for the second quarter of the current fiscal year include one-time expenses of $0.04 per diluted share, which are detailed below. The prior year period included one-time expenses of $0.19 per diluted share. Excluding one-time items, second quarter earnings from continuing operations per diluted share were $1.89 versus $2.21 in the prior year period.
Second quarter results were bolstered by sales growth in the Company’s book fairs and trade channels in the Children’s Book Publishing and Distribution segment and classroom magazines, custom publishing and teaching resources in the Education segment, along with sales gains in the majority of the Company’s overseas markets before the effects of currency translation. These gains were more than offset by the unfavorable impact of foreign currency on the sales and profits of the Company’s international operations and the effects of a now settled labor action in Ontario schools that resulted in a substantial drop in reading club and book fair revenues in the important fall back-to-school months. In addition, the Company’s domestic reading club business was impacted by later school openings largely as a result of the late Labor Day holiday.
Also today, Scholastic announced an intent to return up to $200 million to shareholders through modified Dutch auction tender offer, which you can read more about here.