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Jeffrey Mathews | Executive Vice President, Corporate Development and IR |
Peter Warwick | President and CEO |
Ken Cleary | Chief Financial Officer |
Good day and thank you for standing by. And welcome to Scholastic Reports Q2 Fiscal Year 2023 Results Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Jeffrey Mathews. ahead. go Please
our Scholastic’s on to Warwick, second earnings Ken quarter President Welcome, call, fiscal I Today Cleary, and Officer; the Chief Peter Financial am call. Officer. and everyone, Executive XXXX Chief joined our by
company we forward-looking now certain our download IR presentation usual, by like that results These have you be made anticipated. not currently investor.scholastic.com, As today risks various may and those so. investor you to We out differ at would which on nature, their are statements will the from materially posted to statements, may if website already uncertainties done forward-looking. point subject and actual
afternoon’s and the presentation release over after IR the Peter and measures can and accompanying non-GAAP the also In send directly measures encourage on Should been reports with call to The posted in in release review as the to website. addition, be company’s in you our investor_relations@scholastic.com. the presentation. company’s X-K. directly earnings this filed e-mail, Relations defined has and tables those now, a G. earnings the GAAP Warwick We to comparable quarterly found filed investor factors Form today’s annual will to we This Investor any most And discussing in to measures the have turn call, disclaimers some questions afternoon you SEC. the to this financial like risk please review Regulation our financial disclosed them to begin of be to reconciliation release I’d
continued season. higher the over fiscal acquisition growth have in opportunities. strong company’s first, Ovations our thanks taking to we and of and sustained reflected and things; the Learning and improved for navigated XXXX, and revenue its progress continued headwinds for strength past products; important our everyone, second momentum long-term technology you, Thank steps growth integrating third, channels, us. joining operating and second, children’s back-to-school of the afternoon, Scholastic our product, during good brand, we achieved and as cost market The We Scholastic’s efficiencies successfully three quarter unique continued Jeff, the delivered earnings and educational capital investments quarter, completed of three deploy content growth we team. value. in years; made shareholder Last long-term and
as to also shareholders, Dutch executing modified open tender accelerated afternoon. our Auction expanding returns authorization capital offer announced a We market share and this repurchase
momentum the nearly high important a as a XXXX. But and important our business and without through will power losing the afternoon, for opportunity, long-term fiscal discuss half our to to such and first, momentum enormous expect our guidance across literacy affirmed We Ken of encouraging our results, proud especially and supporting I’d mission perform in the seasonally fiscal Scholastic’s for have of of fourth Scholastic’s quarter expectations second am the and few but very then This results These continue X,XXX on are further of to this who especially focus review the year, at through like moment. I business. financial current in in walk level growth on our employees words outlook continue a children stories. XXXX, will environment. I
to into year in As and international But the our this In the decline cycles in has which bookselling This been lengthened of quarter, has been purchases we has the even calendar digest sales as the historically short fourth in across have XXXX. retail our year funding largest U.S. and quarter. continued confidence and selling at strong schools and fall, last state it’s staffing this expected product last compared fiscal districts, school remains reported, to two federal to industry levels. need widely environment, and has softer U.S. year’s shifted markets. discussed some high Canada, the a consumer impacted U.K. so more
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continue channels we First, capabilities. to capabilities strategic brand will that in our and acquiring products invest and leverage building or current
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will the otherwise the year refer adjusted refer quarter, period tables SEC recorded we our press Note discussion of to one-time indicated. filings excluding you, in our I Please Peter, to the second items items. second items afternoon. and one-time complete for in Today for release no one-time a unless Thank quarter. results good prior and
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therefore affirming XXXX. million of are fiscal guidance for our $XXX adjusted $XXX EBITDA We million to
year. XX% Turning last to $XXX.X million, share $XX.X net $XXX.X grew adjusted to last to to was per per quarter to XX% compared $XX.X income XX% million, year share and to up last our rose income $X.XX, EBITDA compared $X.XX the consolidated million, financial operating was revenues million, Earnings to year. earnings million was the second quarter diluted results, compared diluted $XXX.X of in
was operating provided million, million, six-month year. operating $XXX.X last was income compared For of million and compared million cash period last cash Net $XX.X $XX.X million, cash compared the $XX.X is $XX Free by million the million to million, year, EBITDA for to six-month flow period, $XXX revenue year. for year. six-month last $XX.X activities period was to million, compared last last million free the Six months compared to $XXX.X was year. used $XXX.X $XX.X adjusted to
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last for repurchases. spend market we shareholders In open distribution to year. year, and shares Solutions capital year, prepub shares, our the our for operations. today, $XX.X offer we CapEx our fiscal fiscal Through in in tender our exceed we the returning million reacquired current XXX,XXX and and have invest business We expect to Education as current returned
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mentioned, substantially about this strong product was As product year availability but the rising than year, previously costs were prior higher XX%.
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calendar Accordingly, kick annual summer is integration the largely development of AXi. higher is staff, the not we schools earnings investment, current in the this federal CapEx XXXX. and for are and funding through in. work, our and seasonally contemplated integration costs million for expect fiscal in capabilities, to by spend on upon building funding OpEx plan. other spending was original and impact year we to reading segment the The AXi current upcoming The impact increased which expected year the of ultimate expected dependent increasing programs out quarter, sales results this of Solutions segment and districts products curriculum when fourth $X approximately in on Overall, result now Education a positively As when this increasing state are year. for year, and
strong unfavorable $XX.X $XX.X of widespread the was period International prior million prior of revenues of While $X material period outperformed quarter the company’s of two operating second New $XX.X decline fiscal Zealand rates in exceeding have last of we sales year results. million prior impacts the quarters, and the the fiscal dollar. U.S. trailed volume each segment fiscal million. period of for Operating $X.X the Australia the current saw fourth million exchange expectations are our million, with income in the recovered due to now driving income revenues have and of on timing expectations foreign but can our this in year period. and to lockdowns the
continued are impacted Canada these economic nations higher by activities are Fairs New the Zealand lowering U.K. to demand each Canada, fine. worsening and now and operations While the and operations the their pandemic, Book income the for disposable driving customers. Australia, from being event-based recover conditions the U.K. U.S., in costs Much is of of like bright that and
to struggle some at signed to to long-term year’s in in actions have happy restrictions lease but agreement report in business retail continue relatively we to and improved efficiencies tightly second restrictions to return for encouraging. estate content, remaining centralized costs COVID recently property our real normalcy China market. million York foreign our but experiencing at government quarter, are market City I Broadway regulations are and around New tutoring and second spending $XX.X of discretionary that flat the control fiscal year’s rates distribution overhead COVID as this am in signaling space Unallocated continued quarter, the recent prior facility. facing headquarters Our regarding a under we
year. fiscal occupancy later We commence expect the to this
performance we than is expectations affirming our our a of to $XXX of higher estimate current year-to-date adjusted modestly freight higher Cost of of trending result initial result million a our are forecast, million. as product EBITDA our As and $XXX costs.
these We decline. are to starting see costs
our notably in declines teachers have discretionary our offset exceeded by on Book participating our revenue were discipline channels, Book per spending. strong expectations, Clubs show Fairs’ in to results, programs. continue In partially We fair school-based
engagement our solutions, building are current the demand delivering customer encouraged strong are economic but for we by We our opportunities on products, for risks our remain, growth content External and focused on and and past future. call be I and results, today. any resilient while through economic for proven modest. impact you now businesses we will to have the the to Peter. back downturns time hand to expect be Thank in your
Thank you, Ken.
a closing, As and support environment. goals. both of more this this tirelessly afternoon, thank are positive and partner holiday as leaned us for for to you. the strongly want that’s to for Scholastic XXXX continued our In are advantages into including demand joining shareholders working stories, as business families on second who literacy want fourth full call Thank I while community, serve Based I employees again Jeff educator, again strong discussed our up you growth unique the our happy family well wish our conclude our current and the for and everyone performed in students future have us. about kids, will helping thank long-term to support to and and afternoon’s our in a achieving raise their outlook, every also schools, presentation for season. their momentum I in a quarter, and our competitive quarter growing we today. all optimistic we strengths as a complex successfully near-term navigating our in
you, Thank Peter.
to support. directed We and be appreciate As your e-mail, IR investor_relations@scholastic.com. a questions our to we time invite continued reminder,
conference call. for you This participating. Thank today’s concludes
now may disconnect. You
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