Earlier today, Scholastic reported its first quarter Fiscal 2016 results, which you can read in full here in the press release.
Revenue in the first quarter was $191.2 million, compared to $190.5 million a year ago, an increase of $0.7 million. Reported revenues no longer include the Company’s former educational technology and services business (EdTech), which was sold at the end of the prior fiscal year. The Company reported a first quarter loss per share from continuing operations of $1.46, versus a loss per share from continuing operations of $1.67 in the prior year period. Scholastic typically records a loss in its fiscal first quarter, when most U.S. schools are not in session.
“Operating results were in line with our expectations for the seasonally small quarter. We were pleased with the solid growth in our trade business, both in the U.S. and internationally, confirming the expanding market for quality children’s books,” said Richard Robinson, Chairman, President and Chief Executive Officer. “As we begin the new school year, educators and families are still adapting to higher standards and more challenging tests, and are more focused than ever on independent reading as a critical tool to help young people develop higher level thinking skills that lead to success. The need for more books that kids want to read is a key growth driver for all of our businesses, including our Education segment which delivered first quarter gains in classroom books and summer reading book packs. With its closely aligned core businesses, Scholastic is in a unique position to offer customizable, comprehensive literacy solutions, including books for independent reading delivered through clubs and fairs, classroom magazines and instructional reading and writing programs, along with consulting and services for Professional Learning and Family and Community Engagement and Learning Supports, in tailored offerings to meet the specific needs of its customers.”
First quarter revenue increases primarily reflected gains in classroom books, branded libraries and summer reading programs in the Education segment and higher custom and digital sales in the segment’s consumer magazine channel, as well as higher sales in trade. The first quarter is not significant for clubs and fairs since most schools are not in session. The continued strength of the U.S. dollar overseas resulted in unfavorable foreign currency translation on International revenues of $11.7 million. Excluding the effects of foreign currency, International revenues in the current quarter were marginally better than the prior year period in local currency terms.
You can find more information about the company's first quarter Fiscal 2016 results in this morning's press release.