Scholastic maintains annual guidance despite weaker first-quarter revenue

Scholastic ($SCHL) reported fiscal first-quarter revenue of $216.8 million, down 4%, while its operating loss was broadly unchanged at $92.2 million. Education revenue declined 24% to $30.4 million, partly offset by 48% growth in entertainment revenue to $20.1 million. The quarter is seasonally small for the publisher, limiting its usefulness as a direct guide to annual profitability.

Management maintained its full-year outlook for revenue growth of 2–4%, adjusted EBITDA of $135–145 million and free cash flow of $35–40 million. Adjusted quarterly EBITDA was a $63.6 million loss, compared with $55.7 million a year earlier; the comparison is affected by sale-and-leaseback accounting. The reaffirmed outlook therefore accompanies weaker reported quarterly sales, rather than a guidance increase.

Sources:

• Scholastic — fiscal first-quarter results, PR Newswire release