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Scholastic Reports Fiscal 2025 Third Quarter Results

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2 weeks ago

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Over $35 Million Returned to Shareholders in Third Quarter; Share Repurchase Authorization Increased to $100 Million

Company Affirms Adjusted EBITDA Outlook at Low End of Range

NEW YORK, March 20, 2025 /PRNewswire/ — Scholastic Corporation (NASDAQ: SCHL), the global children’s publishing, education and media company, today reported financial results for the Company’s fiscal third quarter ended February 28, 2025.

Peter Warwick, President and Chief Executive Officer, said, “Scholastic achieved modest revenue growth and improved operating results in the third quarter. Despite increasing pressure on family and school spending on books and educational materials, strong performance by School Book Fairs and Clubs, successful new titles and the addition of 9 Story Media Group contributed to positive results, underscoring Scholastic’s unique strengths engaging kids with great books and quality children’s media.

“Scholastic’s winning record creating global children’s franchises continued last quarter. Dog Man: Big Jim Begins, the thirteenth book in Dav Pilkey’s global phenomenon, has been the top-selling book in the US and major English-speaking markets since its release in early December. Earlier this week Scholastic published the fifth book in Suzanne Collins’ bestselling Hunger Games® series, Sunrise on the Reaping, which is already topping some bestseller lists based on pre-orders. Last quarter Scholastic Entertainment also leveraged its new capabilities to greatly expand the distribution and monetization of the Company’s IP on YouTube, the dominant platform for kids’ media consumption. In February alone Scholastic’s branded channels drew almost 10 million views, up nearly 40 times from a year ago.

“The Education Solutions division was impacted by the continued slow-down in the supplemental curriculum market in the third quarter, but we remain encouraged by upcoming product launches. We have also begun a strategic review of this important and valuable business, as we explore options to optimize it for long-term success.

“Based on the intensifying spending pressure that we experienced last quarter and expect to continue into the fourth quarter, we forecast full-year Adjusted EBITDA at the low end of our fiscal 2025 guidance and more modest revenue growth year-over-year. We have taken a number of one-time and ongoing cost actions in response to these headwinds, as previously disclosed, benefiting both the current and next fiscal years. As we continue to focus on Scholastic’s long-term growth and profitability, we remain committed to our capital allocation priorities, expanding our share repurchase authorization to $100 million and after having returned over $35 million to shareholders through share repurchases and dividends last quarter.”

Outlook 

For fiscal year 2025, the Company has narrowed its outlook for Adjusted EBITDA (as defined in the accompanying tables) to approximately $140 million, from $140 million to $150 million previously. The Company now forecasts modest full-year revenue growth, compared to prior guidance of 4% to 6% growth.

Fiscal 2025 Q3 Review

In $ millions (except per share data)

Third Quarter

Change

Fiscal 2025

Fiscal 2024

$

%

Revenues

$

335.4

$

323.7

$

11.7

4 %

Operating income (loss)

$

(23.9)

$

(34.9)

$

11.0

32 %

Earnings (loss) before taxes

$

(28.4)

$

(34.6)

$

6.2

18 %

Diluted earnings (loss) per share

$

(0.13)

$

(0.91)

$

0.78

86 %

Operating income (loss), ex. one-time items *

$

(20.9)

$

(30.6)

$

9.7

32 %

Diluted earnings (loss) per share, ex. one-time items *

$

(0.05)

$

(0.80)

$

0.75

94 %

Adjusted EBITDA *

$

6.0

$

(7.2)

$

13.2

183 %

* Please refer to the non-GAAP financial tables attached

Revenues increased 4% to $335.4 million, reflecting the contribution of 9 Story Media Group, recorded in the Entertainment segment, and higher revenues in School Reading Events, partly offset by lower supplemental curriculum and collections product sales in Education Solutions.

Operating loss improved 32% to a loss of $23.9 million in the quarter compared to a loss of $34.9 million a year ago, including $3.0 million and $4.3 million in one-time charges in each period, respectively. Excluding one-time charges in both periods, operating loss improved $9.7 million. Adjusted EBITDA (a non-GAAP measure of operations explained in the accompanying tables) increased 183% to $6.0 million. The improved seasonal loss primarily reflects a reduction in discretionary overhead expenses and higher revenues in the Children’s Book Publishing and Distribution segment, which more than offset the impact of lower sales in Education Solutions.

Quarterly Results 

Children’s Book Publishing and Distribution

In the fiscal third quarter, the Children’s Book Publishing and Distribution segment’s revenues increased 5% to $203.3 million.

Book Fairs revenues were $110.7 million, up 8% from the prior year period, reflecting a larger number of fall-season fairs occurring in December compared to the prior year period, which contributed to higher fair count in the quarter. Fair count remains on track to achieve 90,000 fairs in fiscal 2025. Revenue per fair was in-line with prior year.Book Clubs revenues were $15.2 million, up 14% from the prior year period, primarily reflecting higher order volumes and revenue per sponsor.Consolidated Trade revenues were $77.4 million, in line with the prior year period, primarily reflecting the strong performance of the global bestselling Dog Man® series, offset by lower backlist sales as increasing pressure on consumer spending led to softness in the retail book market. Fourth quarter revenues are expected to benefit from the March 2025 release of Sunrise on the Reaping, the fifth book in Suzanne Collins’ Hunger Games® series.

Segment operating income was $7.6 million, compared to $2.3 million a year ago, which included one-time charges of $0.5 million in the prior year period. Excluding one-time charges, adjusted operating loss improved by $4.8 million. The year-over-year increase was primarily driven by higher revenue in School Reading Events.

Education Solutions

Education Solutions revenues decreased 16% to $57.2 million, on lower sales driven by the continuing headwinds in the supplemental curriculum market. Segment operating loss was $6.9 million, compared to segment operating loss of $0.8 million in the prior period, reflecting lower segment revenues. The segment continues to invest in new products for release in the 2025/2026 school year.

Entertainment

Segment revenues were $12.8 million, primarily reflecting the addition of 9 Story Media Group. Segment operating loss was $3.9 million, which included one-time charges of $1.5 million, compared to $3.1 million in the prior year period, which included one-time charges of $3.0 million. Excluding one-time charges, adjusted segment operating loss increased $2.3 million. As part of the acquisition, the Company incurred $2.3 million of intangible amortization during the quarter. Excluding the amortization, operating loss was $0.1 million.

International

Excluding unfavorable foreign currency exchange of $2.7 million, International revenues increased 5% to $59.3 million, reflecting higher revenues in major markets. Segment operating loss was $2.1 million, which included one-time charges of $0.1 million, compared to a loss of $5.9 million in the prior year period. Excluding one-time charges, adjusted operating loss improved by $3.9 million, driven by higher revenues and operational efficiencies.

Overhead

Overhead costs were $18.6 million, which included one-time charges of $1.4 million, compared to $27.4 million in the prior year period, which included one-time charges of $0.8 million. Excluding one-time charges, adjusted overhead costs decreased $9.4 million driven by lower employee-related costs.

Capital Position and Liquidity 

In $ millions

Third Quarter

Change

Fiscal 2025

Fiscal 2024

$

%

Net cash (used) provided by operating activities

$

(12.0)

$

13.1

$

(25.1)

NM

Additions to property, plant and equipment and prepublication expenditures

(14.7)

(20.2)

5.5

27 %

Net borrowings (repayments) of film related obligations

(4.0)

—

(4.0)

NM

Free cash flow (use)*

$

(30.7)

$

(7.1)

$

(23.6)

NM

Net cash (debt)*

$

(189.4)

$

78.9

$

(268.3)

NM

NM – Not meaningful

* Please refer to the non-GAAP financial tables attached

Net cash used by operating activities was $12.0 million, compared to net cash provided of $13.1 million in the prior year period, primarily driven by lower customer remittances and higher interest payments, partly offset by lower taxes. Free cash use (a non-GAAP measure of operations explained in the accompanying tables) was $30.7 million in fiscal 2025, compared to free cash use of $7.1 million in the prior period.

Net debt was $189.4 million compared to a net cash position of $78.9 million in the prior year period, reflecting the Company’s borrowings under its recently upsized revolving credit facility to fund the acquisition of 9 Story Media Group. The Company believes its balance sheet provides significant flexibility, with modest debt and non-operating assets that could be monetized, if and when the Company chose to, market conditions permitting, in accordance with its capital allocation priorities.

The Company owns its headquarters building at 555 / 557 Broadway in Soho, New York City, with 355,000 square feet, of which 26,600 square feet is premium retail space that is currently under lease and is expected to generate $11.1 million in rental revenue in fiscal year 2026, based on currently held lease agreements. Of the remaining 328,400 square feet of Class A office space, 108,000 square feet are currently being marketed, as the Company consolidates its use of the building. Offsetting gains on any potential monetization transaction, the tax basis of the New York City headquarters reflects the purchase of 555 Broadway in 2014 for approximately $255 million and subsequent improvements, less accumulated depreciation.

In addition to the New York City headquarters building, the Company owns its distribution facilities, including three warehouses with 1,459,000 square feet of space and 162 acres of related land, situated in and around Jefferson City, MO. These facilities are approximately 70% utilized at the moment. The tax basis on this asset is low, reflecting many years of accumulated depreciation.

Consistent with its capital allocation priorities, the Company distributed $5.7 million in dividends and repurchased 1,450,274 shares of its common stock for $30.0 million in the third quarter.

The Company’s Board of Directors authorized an additional $53.4 million for repurchases of its common stock under the Company’s stock repurchase program increasing the authorization to $100 million. The Company expects to continue purchasing shares, from time to time as conditions allow, on the open market or in negotiated private transactions for the foreseeable future.

Fiscal Year-To-Date 2025 Review

In $ millions (except per share data)

Year-To-Date

Change

Fiscal 2025

Fiscal 2024

$

%

Revenues

$

1,117.2

$

1,114.8

$

2.4

0 %

Operating income (loss)

$

(37.7)

$

(32.7)

$

(5.0)

(15) %

Earnings (loss) before taxes

$

(50.2)

$

(31.1)

$

(19.1)

(61) %

Diluted earnings (loss) per share

$

(0.61)

$

(0.80)

$

0.19

24 %

Operating income (loss), ex. one-time items *

$

(27.6)

$

(22.1)

$

(5.5)

(25) %

Diluted earnings (loss) per share, ex. one-time items*

$

(0.34)

$

(0.53)

$

0.19

36 %

Adjusted EBITDA *

$

54.2

$

46.2

$

8.0

17 %

* Please refer to the non-GAAP financial tables attached

Revenues of $1,117.2 million year to date were in line with the prior year period, primarily reflecting the contribution of 9 Story Media Group, recorded in the Entertainment segment, offset by lower supplemental curriculum and collections product sales in Education Solutions.

Operating loss was $37.7 million year to date, compared to operating loss of $32.7 million a year ago, including $10.1 million and $10.6 million in one-time charges related to restructuring and cost-savings activities in each period, respectively. Excluding one-time charges, operating loss increased $5.5 million from a year ago. This primarily reflects the impact of lower sales in Education Solutions and the impact of the 9 Story Media Group acquisition. Adjusted EBITDA increased $8.0 million to $54.2 million, primarily reflecting the impact of the 9 Story Media Group acquisition. As part of the acquisition, the Company incurred $6.5 million of intangible amortization during the period. Excluding the amortization, operating loss was $31.2 million.

Additional Information

To supplement our financial statements presented in accordance with GAAP, we include certain non-GAAP calculations and presentations including, as noted above, “Adjusted EBITDA” and “Free Cash Flow”. Please refer to the non-GAAP financial tables attached to this press release for supporting details on the impact of one-time items on operating income, net income and diluted EPS, and the use of non-GAAP financial measures included in this release. This information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP.

Conference Call

The Company will hold a conference call to discuss its results at 4:30 p.m. ET today, March 20, 2025. Peter Warwick, Scholastic President and Chief Executive Officer, and Haji Glover, the Company’s Chief Financial Officer, Executive Vice President, will moderate the call.

A live webcast of the call can be accessed at https://edge.media-server.com/mmc/p/m98wgyws/. To access the conference call by phone, please go to https://register.vevent.com/register/BIba13029c72e1414fa441a92404a14a4d, which will provide dial-in details. To avoid delays, participants are encouraged to dial into the conference call five minutes ahead of the scheduled start time. Shortly following the call, an archived webcast and accompanying slides from the conference call will be posted at investor.scholastic.com.

About Scholastic

For more than 100 years, Scholastic Corporation (NASDAQ: SCHL) has been meeting children where they are – at school, at home and in their communities – by creating quality content and experiences, all beginning with literacy. Scholastic delivers stories, characters, and learning moments that empower all kids to become lifelong readers and learners through bestselling children’s books, literacy- and knowledge-building resources for schools including classroom magazines, and award-winning, entertaining children’s media. As the world’s largest publisher and distributor of children’s books through school-based book clubs and book fairs, classroom libraries, school and public libraries, retail, and online, and with a global reach into more than 135 countries, Scholastic encourages the personal and intellectual growth of all children, while nurturing a lifelong relationship with reading, themselves, and the world around them. Learn more at www.scholastic.com. 

Forward-Looking Statements

This news release contains certain forward-looking statements relating to future periods. Such forward-looking statements are subject to various risks and uncertainties, including the conditions of the children’s book and educational materials markets generally and acceptance of the Company’s products within those markets, and other risks and factors identified from time to time in the Company’s filings with the Securities and Exchange Commission. Actual results could differ materially from those currently anticipated.

SCHL: Financial

Table 1

Scholastic Corporation

Consolidated Statements of Operations

(Unaudited)

(In $ Millions, except shares and per share data)

Three months ended

Nine months ended

02/28/25

02/29/24

02/28/25

02/29/24

Revenues (1)

$

335.4

$

323.7

$

1,117.2

$

1,114.8

Operating costs and expenses:

Cost of goods sold

154.6

148.7

511.5

512.8

Selling, general and administrative expenses (2)

187.5

194.8

594.5

592.1

Depreciation and amortization

16.9

14.6

48.5

42.1

Asset impairments and write downs (3)

0.3

0.5

0.4

0.5

Total operating costs and expenses

359.3

358.6

1,154.9

1,147.5

Operating income (loss)

(23.9)

(34.9)

(37.7)

(32.7)

Interest income (expense), net

(4.3)

0.6

(11.7)

2.4

Other components of net periodic benefit (cost)

(0.2)

(0.3)

(0.8)

(0.8)

Earnings (loss) before income taxes

(28.4)

(34.6)

(50.2)

(31.1)

Provision (benefit) for income taxes (4)

(24.8)

(8.1)

(32.9)

(7.3)

Net income (loss) (1)

(3.6)

(26.5)

(17.3)

(23.8)

Basic and diluted earnings (loss) per share of Class A and Common Stock (5)

Basic

$

(0.13)

$

(0.91)

$

(0.61)

$

(0.80)

Diluted

$

(0.13)

$

(0.91)

$

(0.61)

$

(0.80)

Basic weighted average shares outstanding

27,778

29,052

28,135

29,906

Diluted weighted average shares outstanding

27,876

29,815

28,490

30,747

(1)

The financial results of 9 Story Media Group from the date of acquisition on June 20, 2024 through February 28, 2025 are included in
the Company’s consolidated results of operations as of February 28, 2025. The unaudited pro-forma consolidated results of operations
as if the acquisition had occurred on June 1, 2023, the beginning of fiscal 2024, includes revenues of $335.4 and $1,122.9 and net loss
of $3.6 and $19.1 for the three and nine months ended February 28, 2025, respectively, and revenues of $341.9 and $1,169.0 and net
loss of $29.3 and $34.2 for the three and nine months ended February 29, 2024, respectively.

(2)

In the three and nine months ended February 28, 2025, the Company recognized pretax severance of $1.8 and $6.8, respectively, related
to cost-savings initiatives and pretax costs of $0.9 and $3.0, respectively, related to the acquisition of 9 Story Media Group and other costs.
In the three and nine months ended February 29, 2024, the Company recognized pretax costs related to its planned investment in 9 Story
Media Group of $3.0 and pretax severance of $0.8 and $7.1, respectively, related to restructuring and cost-savings initiatives.

(3)

In the three and nine months ended February 28, 2025, the Company recognized pretax asset impairment of $0.3 related to an early exit
of an office lease. In the three and nine months ended February 29, 2024, the Company recognized pretax asset impairment of $0.5 related
to an early exit of a sales office lease.

(4)

In the three and nine months ended February 28, 2025, the Company recognized a benefit of $0.7 and $2.4, respectively, for income taxes
in respect to one-time pretax items. In the three and nine months ended February 29, 2024, the Company recognized a benefit of $1.1 and
$2.7, respectively, for income taxes in respect to one-time pretax items.

(5)

Earnings (loss) per share are calculated on non-rounded net income (loss) and shares outstanding. Recalculating earnings per share based
on numbers rounded to millions may not yield the results as presented.

 

Table 2

Scholastic Corporation

Segment Results

(Unaudited)

(In $ Millions)

Three months ended

Change

Nine months ended

Change

02/28/25

02/29/24

$

%

02/28/25

02/29/24

$

%

Children’s Book Publishing and Distribution (1)

Revenues

Books Clubs

$

15.2

$

13.3

$

1.9

14 %

$

51.1

$

48.3

$

2.8

6 %

Book Fairs

110.7

102.7

8.0

8 %

370.5

372.1

(1.6)

(0) %

School Reading Events

125.9

116.0

9.9

9 %

421.6

420.4

1.2

0 %

Consolidated Trade

77.4

77.1

0.3

0 %

254.1

267.5

(13.4)

(5) %

Total Revenues

203.3

193.1

10.2

5 %

675.7

687.9

(12.2)

(2) %

Operating income (loss)

7.6

2.3

5.3

NM

73.1

72.9

0.2

0 %

Operating margin

3.7 %

1.2 %

10.8 %

10.6 %

Education Solutions

Revenues

57.2

68.5

(11.3)

(16) %

184.1

215.5

(31.4)

(15) %

Operating income (loss)

(6.9)

(0.8)

(6.1)

NM

(24.4)

(13.7)

(10.7)

(78) %

Operating margin

NM

NM

NM

NM

Entertainment (1)

Revenues

12.8

0.5

12.3

NM

46.2

1.3

44.9

NM

Operating income (loss)

(3.9)

(3.1)

(0.8)

(26) %

(9.1)

(4.4)

(4.7)

(107) %

Operating margin

NM

NM

NM

NM

International

Revenues

59.3

59.1

0.2

0 %

202.8

202.8

0.0

0 %

Operating income (loss)

(2.1)

(5.9)

3.8

64 %

(4.7)

(6.1)

1.4

23 %

Operating margin

NM

NM

NM

NM

Overhead

Revenues

2.8

2.5

0.3

12 %

8.4

7.3

1.1

15 %

Operating income (loss)

(18.6)

(27.4)

8.8

32 %

(72.6)

(81.4)

8.8

11 %

Operating income (loss)

$

(23.9)

$

(34.9)

$

11.0

32 %

$

(37.7)

$

(32.7)

$

(5.0)

(15) %

NM – Not meaningful

(1)

The newly formed Entertainment segment includes the operations of Scholastic Entertainment Inc. (SEI), which were included
in the Children’s Book Publishing and Distribution segment in prior periods, and 9 Story Media Group. The financial results for
SEI for the three and nine months ended February 29, 2024 have been reclassified to Entertainment to reflect this change.

 

Table 3

Scholastic Corporation

Supplemental Information

(Unaudited)

(In $ Millions)

Selected Balance Sheet Items

02/28/25

02/29/24

Cash and cash equivalents

$

94.7

$

110.4

Accounts receivable, net

255.9

253.0

Inventories, net

270.8

282.5

Accounts payable

133.5

126.1

Deferred revenue

205.2

193.8

Accrued royalties

85.1

75.1

Film related obligations

18.8

—

Lines of credit and long-term debt

280.8

31.5

Net cash (debt) (1)

(189.4)

78.9

Total stockholders’ equity

941.3

997.6

Selected Cash Flow Items

Three months ended

Nine months ended

02/28/25

02/29/24

02/28/25

02/29/24

Net cash provided by (used in) operating activities

$

(12.0)

$

13.1

$

17.3

$

84.7

Property, plant and equipment additions

(9.0)

(14.7)

(39.9)

(43.8)

Prepublication expenditures

(5.7)

(5.5)

(15.8)

(17.2)

Net borrowings (repayments) of film related obligations

(4.0)

—

(18.6)

—

Free cash flow (use) (2)

$

(30.7)

$

(7.1)

$

(57.0)

$

23.7

(1)

Net cash (debt) is defined by the Company as cash and cash equivalents less production cash of $3.3
as of February 28, 2025, net of lines of credit and short-term and long-term debt. Film related obligations
are not included. The Company utilizes this non-GAAP financial measure, and believes it is useful to
investors, as an indicator of the Company’s effective leverage and financing needs.

(2)

Free cash flow (use) is defined by the Company as net cash provided by or used in operating activities
(which includes royalty advances) and cash acquired through acquisitions and from the sale of assets,
reduced by spending on property, plant and equipment and prepublication costs and adjusted for net
cash flows from film related obligations. The Company believes that this non-GAAP financial measure
is useful to investors as an indicator of cash flow available for debt repayment and other investing
activities, such as acquisitions. The Company utilizes free cash flow as a further indicator of operating
performance and for planning investing activities.

 

Table 4

Scholastic Corporation

Supplemental Results – Excluding One-Time Items

(Unaudited)

(In $ Millions, except per share data)

Three months ended

02/28/2025

02/29/2024

Reported

One-time
items

Excluding
One-time
items

Reported

One-time
items

Excluding
One-time
items

Diluted earnings (loss) per share (1)

$

(0.13)

$

0.08

$

(0.05)

$

(0.91)

$

0.11

$

(0.80)

Net income (loss)

$

(3.6)

$

2.3

$

(1.3)

$

(26.5)

$

3.2

$

(23.3)

Earnings (loss) before income taxes

$

(28.4)

$

3.0

$

(25.4)

$

(34.6)

$

4.3

$

(30.3)

Children’s Book Publishing and Distribution (2)

$

7.6

$

—

$

7.6

$

2.3

$

0.5

$

2.8

Education Solutions

(6.9)

—

(6.9)

(0.8)

—

(0.8)

Entertainment (3)

(3.9)

1.5

(2.4)

(3.1)

3.0

(0.1)

International (4)

(2.1)

0.1

(2.0)

(5.9)

—

(5.9)

Overhead (5)

(18.6)

1.4

(17.2)

(27.4)

0.8

(26.6)

Operating income (loss)

$

(23.9)

$

3.0

$

(20.9)

$

(34.9)

$

4.3

$

(30.6)

Nine months ended

02/28/2025

02/29/2024

Reported

One-time
items

Excluding
One-time
items

Reported

One-time
items

Excluding
One-time
items

Diluted earnings (loss) per share (1)

$

(0.61)

$

0.27

$

(0.34)

$

(0.80)

$

0.26

$

(0.53)

Net income (loss)

$

(17.3)

$

7.7

$

(9.6)

$

(23.8)

$

7.9

$

(15.9)

Earnings (loss) before income taxes

$

(50.2)

$

10.1

$

(40.1)

$

(31.1)

$

10.6

$

(20.5)

Children’s Book Publishing and Distribution (2)

$

73.1

$

—

$

73.1

$

72.9

$

0.5

$

73.4

Education Solutions

(24.4)

—

(24.4)

(13.7)

—

(13.7)

Entertainment (3)

(9.1)

4.0

(5.1)

(4.4)

3.0

(1.4)

International (4)

(4.7)

1.5

(3.2)

(6.1)

1.2

(4.9)

Overhead (5)

(72.6)

4.6

(68.0)

(81.4)

5.9

(75.5)

Operating income (loss)

$

(37.7)

$

10.1

$

(27.6)

$

(32.7)

$

10.6

$

(22.1)

(1)

Earnings (loss) per share are calculated on non-rounded net income (loss) and shares outstanding. Recalculating earnings per
share based on rounded numbers may not yield the results as presented.

(2)

In the three and nine months ended February 29, 2024, the Company recognized pretax asset impairment of $0.5 related to an
early exit of a sales office lease.

(3)

In the three and nine months ended February 28, 2025, the Company recognized pretax severance of $0.7 and $1.1, respectively,
related to cost-savings initiatives, pretax costs of $0.5 and $2.6, respectively, related to the acquisition of 9 Story Media Group and
pretax asset impairment of $0.3 related to an early exit of an office lease. In the three and nine months ended February 29, 2024,
the Company recognized pretax costs associated with its planned investment in 9 Story Media Group of $3.0.

(4)

In the three and nine months ended February 28, 2025, the Company recognized pretax severance of $0.1 and $1.5, respectively,
related to cost-savings initiatives. In the nine months ended February 29, 2024, the Company recognized pretax severance of $1.2
related to cost-savings initiatives.

(5)

In the three and nine months ended February 28, 2025, the Company recognized pretax severance of $1.0 and $4.2, respectively,
related to cost-savings initiatives and other pretax expenses of $0.4. In the three and nine months ended February 29, 2024, the
Company recognized pretax severance of $0.8 and $5.9, respectively, related to restructuring and cost-savings initiatives.

 

Table 5

Scholastic Corporation

Consolidated Statements of Operations – Supplemental

Adjusted EBITDA

(Unaudited)

(In $ Millions)

Three months ended

02/28/25

02/29/24

Earnings (loss) before income taxes as reported

$

(28.4)

$

(34.6)

One-time items before income taxes

3.0

4.3

Earnings (loss) before income taxes excluding one-time items

(25.4)

(30.3)

Interest (income) expense (1)

4.3

(0.6)

Depreciation and amortization

27.1

23.7

Adjusted EBITDA (2)

$

6.0

$

(7.2)

Nine months ended

02/28/25

02/29/24

Earnings (loss) before income taxes as reported

$

(50.2)

$

(31.1)

One-time items before income taxes

10.1

10.6

Earnings (loss) before income taxes excluding one-time items

(40.1)

(20.5)

Interest (income) expense (1)

11.9

(2.4)

Depreciation and amortization

82.4

69.1

Adjusted EBITDA (2)

$

54.2

$

46.2

(1)

For the three and nine months ended February 28, 2025, amounts include production loan
interest amortized into cost of goods sold.

(2)

Adjusted EBITDA is defined by the Company as earnings (loss), excluding one-time items,
before interest, taxes, depreciation and amortization. The Company believes that Adjusted
EBITDA is a meaningful measure of operating profitability and useful for measuring returns
on capital investments over time as it is not distorted by unusual gains, losses, or other items.

 

Table 6

Scholastic Corporation

Consolidated Statements of Operations – Supplemental

Adjusted EBITDA by Segment

(Unaudited)

(In $ Millions)

Three months ended

02/28/25

CBPD (1)

EDUC (1)

ENT (1)

INTL (1)

OVH (1)

Total

Earnings (loss) before income taxes as reported

$

7.5

$

(6.9)

$

(4.6)

$

(2.5)

$

(21.9)

$

(28.4)

One-time items before income taxes

—

—

1.5

0.1

1.4

3.0

Earnings (loss) before income taxes excluding one-time items

7.5

(6.9)

(3.1)

(2.4)

(20.5)

(25.4)

Interest (income) expense (2)

0.0

0.0

0.7

0.0

3.6

4.3

Depreciation and amortization (3)

7.8

6.2

5.0

1.9

6.2

27.1

Adjusted EBITDA

$

15.3

$

(0.7)

$

2.6

$

(0.5)

$

(10.7)

$

6.0

Three months ended

02/29/24

CBPD (1)

EDUC (1)

ENT (1)

INTL (1)

OVH (1)

Total

Earnings (loss) before income taxes as reported

$

2.3

$

(0.8)

$

(3.1)

$

(6.3)

$

(26.7)

$

(34.6)

One-time items before income taxes

0.5

—

3.0

—

0.8

4.3

Earnings (loss) before income taxes excluding one-time items

2.8

(0.8)

(0.1)

(6.3)

(25.9)

(30.3)

Interest (income) expense (2)

0.0

0.0

—

(0.0)

(0.6)

(0.6)

Depreciation and amortization (3)

8.3

7.7

0.0

2.0

5.7

23.7

Adjusted EBITDA

$

11.1

$

6.9

$

(0.1)

$

(4.3)

$

(20.8)

$

(7.2)

Nine months ended

02/28/25

CBPD (1)

EDUC (1)

ENT (1)

INTL (1)

OVH (1)

Total

Earnings (loss) before income taxes as reported

$

73.0

$

(24.4)

$

(11.4)

$

(6.0)

$

(81.4)

$

(50.2)

One-time items before income taxes

—

—

4.0

1.5

4.6

10.1

Earnings (loss) before income taxes excluding one-time items

73.0

(24.4)

(7.4)

(4.5)

(76.8)

(40.1)

Interest (income) expense (2)

0.1

0.0

2.5

0.0

9.3

11.9

Depreciation and amortization (3)

23.1

18.6

16.5

5.9

18.3

82.4

Adjusted EBITDA

$

96.2

$

(5.8)

$

11.6

$

1.4

$

(49.2)

$

54.2

Nine months ended

02/29/24

CBPD (1)

EDUC (1)

ENT (1)

INTL (1)

OVH (1)

Total

Earnings (loss) before income taxes as reported

$

72.8

$

(13.7)

$

(4.4)

$

(7.2)

$

(78.6)

$

(31.1)

One-time items before income taxes

0.5

—

3.0

1.2

5.9

10.6

Earnings (loss) before income taxes excluding one-time items

73.3

(13.7)

(1.4)

(6.0)

(72.7)

(20.5)

Interest (income) expense (2)

0.1

0.0

—

(0.1)

(2.4)

(2.4)

Depreciation and amortization (3)

24.0

23.3

0.2

5.5

16.1

69.1

Adjusted EBITDA

$

97.4

$

9.6

$

(1.2)

$

(0.6)

$

(59.0)

$

46.2

(1)

The Company’s segments are defined as the following: CBPD – Children’s Book Publishing and Distribution segment; EDUC – Education
Solutions segment; ENT – Entertainment segment; INTL – International segment; OVH – unallocated overhead.

(2)

For the three and nine months ended February 28, 2025, amounts include production loan interest amortized into cost of goods sold.

(3)

Depreciation and amortization in the Children’s Book Publishing and Distribution, Education Solutions and International segments includes
amounts allocated from overhead.

 

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Technology

Industrial Robotics Market to Reach $37.1 Billion by 2031, Growing at a CAGR of 6.8% — Exclusive Report by Meticulous Research®

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Market Growth Driven by Increasing Automation Demand and Advancements in AI-Powered Robotics

REDDING, Calif., April 2, 2025 /PRNewswire/ — According to a new market research report titled Industrial Robotics Market Size, Share, Forecast, & Trends Analysis by Component (Robots, Robot Accessories), Payload (Up to 60 Kg, 60 to 100 KG), Application (Material Handling, Welding & Soldering), End-use Industry, Geography – Global Forecast to 2031®, the global industrial robotics market is expected to grow from $23.4 billion in 2024 to $37.1 billion by 2031, at a CAGR of 6.8% during the forecast period of 2024 to 2031.

Browse in-depth scope of Industrial Robotics Market Report:

513 – Tables43 – Figures300 – Pages

For more comprehensive insights, download the FREE report sample: https://www.meticulousresearch.com/download-sample-report/cp_id=5278

Key Market Growth Drivers and Trends:

The rapid adoption of automation across manufacturing and logistics industries is propelling the growth of the industrial robotics market. Companies are increasingly investing in robotics to enhance efficiency, reduce operational costs, and address labor shortages.

Advancements in artificial intelligence (AI), machine learning, and sensor technologies are driving the next generation of intelligent robots capable of performing complex tasks with high precision. The rise of smart factories and Industry 4.0 is further accelerating the adoption of robotics in production lines, with collaborative robots (cobots) gaining traction for their ability to work alongside human operators.

Additionally, government incentives and funding for automation in key industries, such as automotive, electronics, and pharmaceuticals, are fostering market expansion. The growing need for sustainable manufacturing practices is also influencing robotics development, with a focus on energy-efficient and eco-friendly robotic systems.

Adoption of Robots in Manufacturing Industries: Increased usage of robots globally to boost efficiency and productivity in the manufacturing industries.Government Support: Implementation of favourable policies and incentives that aid the use of industrial robots.Collaborative Robots Implementation: Increasing use of collaborative robots that work with human operators.Integration of IoT Technology: Increased use of monitoring and control of robotic systems through IoT technology.Focus on Electronics and Automotive: Increasing use of automation within the manufacturing of electronics and automobiles sectors.Labor Reduction Initiatives: Increasing robotics usage for the purpose of saving manual labour in various sectors.Smart Factory Development: The combination of robotics and artificial intelligence, machine learning, and the Internet of Things (IoT) devise to create smart manufacturing ecosystems.

Market Opportunities:

Emerging markets in Asia-Pacific and Latin America present significant opportunities for industrial robotics due to increasing industrialization, growing demand for smart manufacturing, and supportive government policies. The development of robotics-as-a-service (RaaS) models is enabling small and medium enterprises (SMEs) to adopt automation without high upfront costs, driving broader market penetration.

Industrial Robotics Market Challenges:

Despite strong growth potential, the industrial robotics market faces challenges such as high initial investment costs, integration complexities, and concerns over job displacement due to automation. Additionally, cybersecurity threats associated with connected robotic systems pose risks to data integrity and operational security.

Get Insightful Data on Regions, Market Segments, Customer Landscape, and Top Companies (Charts, Tables, Figures and More) – https://www.meticulousresearch.com/product/industrial-robotics-market-5278

Segment Insights:

By Component: Hardware components, including robotic arms, controllers, and actuators, hold the largest market share, while software solutions and services are gaining traction as robotics become more AI-driven.

By Payload: Robots with payloads of 10-100 kg dominate the market due to their widespread use in automotive and electronics manufacturing. Lightweight robots (<10 kg) are increasingly used in precision applications, while heavy payload robots (>100 kg) are essential in heavy industries.

By Application: Material handling leads the market, followed by assembly and welding applications. Robotics use in painting, packaging, and other automated tasks is growing due to advancements in vision systems and AI-powered decision-making.

By End-User Industry: The automotive sector holds the largest market share, driven by increasing automation in assembly lines and quality control. The electronics industry is witnessing rapid growth as manufacturers adopt robotics for precision assembly and component handling.

Request a customized research analysis tailored to your specific requirements: https://www.meticulousresearch.com/request-customization/cp_id=5278

Regional/Geographic Analysis

Asia-Pacific leads the global industrial robotics market, driven by strong manufacturing activity in China, Japan, and South Korea. The region benefits from high investments in automation, government initiatives supporting smart manufacturing, and a well-established robotics ecosystem. Meanwhile, North America and Europe are seeing steady growth, supported by increasing adoption in advanced manufacturing and logistics applications.

Competitive Insights

The industrial robotics market is highly competitive, with key players such as ABB, Fanuc Corporation, Yaskawa Electric, KUKA AG, and Mitsubishi Electric leading the industry. Companies are focusing on technological innovations, strategic partnerships, and geographic expansions to strengthen their market position.

Startups specializing in AI-driven robotics, autonomous mobile robots (AMRs), and cloud-based robotic control platforms are emerging as disruptive forces in the industry. Collaborations between robotics manufacturers and industrial automation solution providers are further advancing the capabilities of next-generation robotics systems.

As industries embrace automation to enhance productivity and sustainability, the industrial robotics market is poised for significant transformation. [Company Name]’s market research report offers in-depth insights and strategic guidance for stakeholders looking to navigate this evolving landscape.

Immediate Delivery Available | Buy this Research Report (Insights, Charts, Tables, Figures and More)- https://www.meticulousresearch.com/view-pricing/592

Related Reports:

Inspection Robots Market

Robots-as-a-Service Market

Collaborative Robots Market

Disinfection Robots Market

Surgical Robots Market

About Meticulous Research

We are a trusted research partner for leading businesses worldwide, empowering Fortune 500 organizations and emerging enterprises with market intelligence designed to drive revenue transformation and strategic growth. Our insights reveal future growth opportunities, equipping clients with a competitive edge through a versatile suite of research solutions—including syndicated reports, custom research, and direct analyst engagement. Each year, we conduct over 300 syndicated studies and manage 60+ consulting engagements across eight major sectors and 20+ geographic markets, all to deliver targeted business insights that help our clients lead in a rapidly evolving global market.

With a strong focus on problem-solving for complex business challenges, our research enables organizations to navigate change with assertion, aligning it with strategic pathways for sustainable growth. By identifying innovative and effective solutions, we empower leaders to make impactful decisions that drive operational excellence and fuel innovation. We are committed to crafting insights that enhance business performance and help our clients unlock new revenue opportunities, positioning them for long-term success in the competitive global marketplace.

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Smokeball and LAWCLERK Announce First-of-Its-Kind Embedded Hiring Integration for Law Firms

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2 minutes ago

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April 2, 2025

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New Feature Expands Law Firm Capacity and Provides On-Demand Attorney Support Inside Smokeball

CHICAGO, April 2, 2025 /PRNewswire/ — Smokeball, the industry-leading legal practice management software, has partnered with LAWCLERK, the nation’s premier marketplace for freelance and contract attorneys, to launch an exclusive, first-of-its-kind embedded hiring integration. This integration brings on-demand hiring directly into where law firms manage their work—inside their Smokeball matters—allowing firms to scale up or down, expand practice areas, and collaborate seamlessly with freelance attorneys.

Through this powerful partnership, law firms can now hire remote associates directly from within a matter file in Smokeball, with the ability to share documents, track billable time, and manage projects in one consistent workflow. Firms leveraging LAWCLERK associates report a 2-3X ROI on the remote attorneys they hire, making this integration a profitability accelerator for law firms looking to grow without taking on the risk of full-time hires.

Following the successful launch of the “Hire a Lawyer” feature, Smokeball and LAWCLERK are now rolling out the “Get Work” functionality for attorneys in Smokeball Boost, a tier designed for solo and small firms. This new feature enables solo and small firm attorneys to pick up project work between cases, freelance while growing their practice, and stabilize cash flow—offering a critical safety net in an industry where many small firms struggle to get off the ground.

“People are the lifeblood of a law firm—driving work product, client satisfaction, and profitability. For two consecutive years, Smokeball’s State of the Law report has identified hiring as both a key growth strategy and the leading bottleneck for small firms. We’re proud to combine the power of on-demand hiring with Smokeball’s productivity tools through the embedded Hire a Lawyer feature—and even prouder to have LAWCLERK as our partner, delivering concierge-level service and excellence at every step. The feedback from our clients has been phenomenal, with many firms hiring multiple remote associates to grow their practices. As we expand into the Get Work experience, we’re excited to help solo and micro firms supplement income and stabilize the cash flow swings that so often stand in the way of sustainable growth.” – Chelsey Lambert, VP of Partnerships, Smokeball

“We’re having a fantastic experience partnering with Smokeball, and this integration is already proving to be a game-changer for many law firms,” said Gregory Garman, CEO of LAWCLERK. “From the beginning, this collaboration was built on a shared vision to transform how law firms scale and eliminate the challenges of traditional associate hiring. With the Smokeball and LAWCLERK integration, law firms can seamlessly find top talent and have them onboarded within days, all directly from their Smokeball dashboard.”

Smokeball continues to redefine legal technology by embedding powerful, practice-expanding tools directly into its platform. With the LAWCLERK partnership, law firms can take on cases of any size at a moment’s notice, increase revenue potential, and maximize efficiency—all without leaving Smokeball.

For more information or to schedule a demo, visit https://www.lawclerk.legal/attorney-resources/book-a-demo-smokeball/.

About Smokeball

Smokeball is a leading cloud-based legal practice management software designed to help small law firms manage their matters, automate workflows, and maximize profitability. With built-in AI-powered tools and seamless integrations, Smokeball enables attorneys to increase efficiency, improve client service, and streamline daily operations. For more information, visit www.smokeball.com.

About LAWCLERK

LAWCLERK is the industry’s leading freelance marketplace that connects law firms with a nationwide network of thousands of experienced, U.S.-licensed freelance attorneys. LAWCLERK’s innovative platform provides firms with flexible staffing solutions, allowing them to scale without the overhead of traditional hiring. Learn more at www.lawclerk.legal.

Media Contact

Smokeball Media Relations

media@smokeball.com

855-668-3207 

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DJI Presents Best-In-Class Creator Tools at 2025 NAB Show

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April 2, 2025

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 Leading Pioneer in Creative Camera Technology Displays Latest Osmo and Ronin Products for Creators and Professional Filmmakers

LAS VEGAS, April 2, 2025 /PRNewswire/ — DJI, the world’s leader in creative camera technology, is returning to NAB, showcasing its integrated ecosystem of cameras, stabilizers, gimbals, microphones, and power solutions for creators of all levels. DJI’s commitment to innovation and creativity will be on display from April 6-9, and attendees will have the exclusive opportunity to experience DJI’s best-in-class product lineup through hands-on demos, interactive workshops, and first looks at the latest releases.

“DJI remains committed to empowering filmmakers and creators, and we are thrilled to return to  NAB this year. With the newest additions to our Osmo and Ronin product lines, we continue to revolutionize their work through innovative technology solutions,” said Christina Zhang, Senior Director of Corporate Strategy and Communication at DJI. “With DJI’s showcase at this event, we aim to showcase how innovation meets creativity throughout the DJI ecosystem to transform storytelling for a new generation. “

Experience Ronin: The Ultimate Tools for Cinematic Storytelling

With features tailored to meet the evolving needs of filmmakers, DJI’s tools empower creators to unleash their creativity like never before. DJI’s technology provides the essential tools to transform creative visions into cinematic reality.

Attendees visiting the DJI booth at this year’s NAB Show can experience the latest advancements in filmmaking technology with hands-on access to the Oscar and Emmy award-winning Ronin series. The booth will feature a professional grade film set, allowing guests to try the recently-launched RS 4 Mini compact gimbal for cameras and smartphones with intelligent subject tracking. The DJI SDR Transmission will especially appeal to filmmakers on small- and medium-sized productions looking for a reliable and accessible video transmission system. Other Ronin products to be showcased include the groundbreaking Ronin 4D, Ronin 2, RS 4 Pro, RS 4, DJI Transmission, and DJI Focus Pro.

Filmmakers’ creativity knows no bounds with DJI’s car solutions, bringing movement, speed, and unique points of view to on-the-move shots. The booth will feature a car outfitted with DJI’s  diverse creative car shooting solutions:

Ronin 2 Russian Arm SolutionRonin 4D Internal Remote Head SolutionRonin 4D External Suction Cup Mount SolutionRS 4 Pro External Suction Cup Mount Solution

Discover Osmo: Making Storytelling Possible for Everyone

Visual storytelling has become more accessible thanks to DJI’s versatile and intuitive Osmo product ecosystem with solutions for every level of creator.

DJI Osmo recently introduced the Osmo Mobile 7 Series, DJI’s feature-packed flagship gimbal that elevates smartphone photography with 3-axis stabilization and intelligent subject tracking. NAB attendees will be among the first to be able to experience the cinema-quality footage that the Osmo Mobile 7P and Osmo Mobile 7 can deliver.

Other Osmo products on display include the popular Osmo Pocket 3 – the versatile pocket-sized gimbal camera with a 1-inch CMOS sensor – and the ultimate action cameras for adventurers with excellent low-light image quality – Osmo Action 5 Pro and Osmo Action 4.

Additionally, DJI will spotlight its pro audio recording solutions, DJI Mic Mini and DJI Mic 2.

Keep the Cameras Rolling with Reliable DJI Power

Launched in 2024, DJI’s portable power stations and renewable energy solutions provide filmmakers and content creators with reliable power for their productions and film sets, improving their efficiency and workflows. Attendees can test the charging limits of the DJI Power 1000, DJI Power 500, DJI Power Expansion Battery 2000, and DJI Power Super Fast Car Chargers.

Learn, Create, and Share

To foster creativity and skill development, DJI will host a series of workshops with filmmaking experts and talented content creators. Full Time Filmmaker, MAKE. ART. NOW., Drex Lee, and Jeven Dovey will share their expert insights into how DJI’s suite of creative tools bolster visual storytelling. These workshops are open to all NAB visitors. 

See You at NAB Show

NAB Show will open its doors at the Las Vegas Convention Center from April 6-9, 2025. Visitors can find DJI at North Hall, Booth Number N1959.

About DJI

Since 2006, DJI has led the world with civilian drone innovations that have empowered individuals to take flight for the first time, visionaries to turn their imagination into reality, and professionals to transform their work entirely. Today, DJI serves to build a better world by continuously promoting human advancement. With a solution-oriented mindset and genuine curiosity, DJI has expanded its ambitions into areas such as cycling, renewable energy, agriculture, public safety, surveying and mapping, and infrastructure inspection. In every application, DJI products deliver experiences that add value to lives around the world in more profound ways than ever before.

For more information, visit our:
DJI Ronin Website: pro.dji.com
DJI Ronin Instagram: instagram.com/dji_ronin
DJI Ronin YouTube: youtube.com/@DJI_Ronin
DJI Ronin Facebook: facebook.com/DJIRoninOfficial

Please also visit our official DJI channels:
Website: dji.com
Online Store: store.dji.com
Facebook: facebook.com/DJI
Instagram: instagram.com/DJIGlobal
X: x.com/DJIGlobal   
LinkedIn: linkedin.com/company/dji
Subscribe to our YouTube Channel: youtube.com/DJI

 

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