Scholastic Reports Fourth Quarter and Fiscal 2023 Results
Fourth Quarter Operating Income Up 40% Driven by Improved Results in All Segments
Fiscal 2023 Results Meet or Exceed Company’s Revised Guidance
Board Approves $100 Million Increase in Share Repurchase Authorization, After Company Returns Over $160 Million to Shareholders in Fiscal Year
NEW YORK, July 20, 2023 /PRNewswire/ — Scholastic Corporation (NASDAQ: SCHL), the global children’s publishing, education and media company, today reported financial results for the Company’s fiscal fourth quarter and full year ended May 31, 2023.
Peter Warwick, President and Chief Executive Officer, said, “Scholastic finished fiscal 2023 strongly, with fourth quarter operating income up significantly from last year’s record level and full year results meeting or exceeding revised guidance. Successful performance management in response to this year’s short-term headwinds, plus the continued benefit of operational efficiencies achieved since the pandemic, contributed to higher margins and profits across all business segments. Last quarter we also continued our investments in long-term drivers of Scholastic’s growth and earnings, while returning over $63 million to shareholders through our dividend and share repurchases. In total in fiscal 2023, the Company returned $161 million to shareholders.
“Our Children’s Books segment continued to perform well in Q4. Segment sales grew 5%, outperforming continuing softness in retail, and profitability rose substantially, driven by operational excellence and operating leverage in Book Fairs. Multiple Scholastic titles, including the latest Dog Man® title, also ranked at the top of children’s bestseller lists during the quarter. Education Solutions also delivered higher sales and substantially improved margins last quarter, demonstrating the growing size and contribution of our summer reading business, even as some schools and districts continued to delay purchases of other supplemental programs.
“Looking ahead, we are committed to protecting margins and sustaining growth in fiscal 2024, as we execute a multi-year plan for growth, impact and shareholder value creation. Having combined our Book Fairs and Clubs channels into an integrated School Reading Events business last month, we are now in the process of executing against multiple opportunities to grow Scholastic’s reach, serve our customers better and improve efficiencies within Children’s Books. In Education Solutions we will continue to invest in new products and capabilities to grow our blended literacy solutions, as we maximize the value of our unique content offerings. We also remain focused on using our strong balance sheet and free cash flow outlook to enable growth and enhance shareholder returns.
“For more than 100 years Scholastic has been guided by a truth that is more relevant today than ever: all children need access to books, stories and the power of reading to understand the world around them and themselves. I am deeply proud of the work Scholastic and its employees are doing to serve kids – and the families, teachers and educators that tirelessly support them – while also creating long-term value for our shareholders and other stakeholders.”
Outlook
The Company expects fiscal 2024 revenue growth of 3% to 5% and is targeting Adjusted EBITDA (as defined in the accompanying tables) of $190 to $200 million, excluding the impact of one-time charges related to restructuring and cost-savings activities of approximately $7 to $10 million, including the integration of its School Reading Events division and reorganization of its Canada subsidiary, expected in the first and second quarters. In addition to focusing on protecting margins and sustaining growth in fiscal 2024, the Company is executing a longer-term strategy to drive growth, impact and shareholder value creation.
Fiscal 2023 Q4 Review
In $ millions | Fourth Quarter | Change | |||||||
2023 | 2022 | $ | % | ||||||
Revenues | $ | 528.3 | $ | 514.4 | $ | 13.9 | 3 % | ||
Operating income (loss) | $ | 92.0 | $ | 65.5 | $ | 26.5 | 40 % | ||
Earnings (loss) before taxes | $ | 95.6 | $ | 53.7 | $ | 41.9 | 78 % | ||
Operating income (loss), ex. one-time items* | $ | 92.0 | $ | 66.1 | $ | 25.9 | 39 % | ||
Earnings (loss) before taxes, ex. one-times * | $ | 95.6 | $ | 65.9 | $ | 29.7 | 45 % | ||
Adjusted EBITDA* | $ | 115.0 | $ | 88.5 | $ | 26.5 | 30 % | ||
* Please refer to the non-GAAP financial tables attached |
Revenues increased 3% to $528.3 million primarily driven by growth in the Children’s Book Publishing and Distribution segment, on higher fair count and revenue per fair in the Book Fairs channel. The Education Solutions segment outpaced a strong prior year period due, in part, to strong sales of summer reading programs and strength in state-sponsored programs. Lower International revenues reflected the negative impact of foreign currency exchange and the disposition of the unprofitable direct sales business earlier in the fiscal year, partially offset by higher international Book Fairs revenues and a modest recovery in Asia.
Operating Income increased 40% to $92.0 million in the quarter, while Adjusted EBITDA (a non-GAAP measure of operations explained in the accompanying tables) increased 30% to $115.0 million. These results primarily reflect higher contribution from the Children’s Book Publishing and Distribution segment, driven primarily by higher revenue and operating leverage in Book Fairs, and in Education Solutions, where profits improved on higher revenues, favorable product mix and lower marketing spend.
Quarterly Results
Children’s Book Publishing and Distribution
In the fiscal fourth quarter, the Children’s Book Publishing and Distribution segment’s revenues increased 5% to $291.0 million.
- Book Fairs revenues increased 12% to $180.5 million on increased fair count, which ended the year at approximately 85% of pre-pandemic levels compared to 72% in the prior fiscal year. Historically high revenue per fair also contributed to strong growth, driven by strong participation and successful customer-focused strategies.
- Book Clubs revenues decreased 4% to $26.2 million on lower revenue per order and lower sponsor participation. To address the continued decline, the Company has combined the U.S.-based Book Clubs and Book Fairs businesses into an integrated School Reading Events business effective June 1, 2023. The integration is expected to create synergies in customers and operations to result in additional opportunities and improved efficiencies.
- Trade revenues decreased 5% to $84.3 million in line with softness in the overall retail market. This was partially offset by revenues from the release of Eva the Owlet® on Apple TV+® and multiple frontlist bestsellers, including the latest in Dav Pilkey’s Dog Man® series.
Operating income increased 25% to $58.4 million, as the segment benefited from the improved and higher profitability of Book Fairs, partially offset by short-term retail market trends and cost pressures on the current Book Club model.
Education Solutions
Education Solutions segment revenues increased 4% to $163.4 million, driven by higher demand for the Company’s summer reading programs and state-sponsored programs, partially offsetting lower demand for supplemental instructional products.
Operating income increased 20% to $55.0 million, as the segment benefited from higher revenues and the timing of marketing costs.
International
International revenues declined 8%, reflecting the $4.7 million year-over-year impact of unfavorable foreign currency exchange and lower revenues of $4.4 million due to the disposition of the direct sales business in Asia. Excluding these factors, International revenues increased 3% or $2.6 million compared to the prior period. This increase was driven by higher revenues from book fairs in the UK and Canada, as they continued to rebook fairs canceled since the pandemic, and modest recovery of results in Asia.
Operating income was $2.2 million compared to $1.3 million in the prior year period, which included $0.6 million in one-time items, as the segment benefited from the recovery in Asia as well as the exit from the direct sales business which generated losses in the prior period.
Overhead
Overhead costs decreased $4.8 million to $23.6 million primarily resulting from lower employee-related expenses and ongoing efforts related to the Company’s cost saving initiatives.
Fiscal Year-To-Date 2023 Review
In $ millions | Fiscal Year | Change | |||||||
2023 | 2022 | $ | % | ||||||
Revenues | $ | 1,704.0 | $ | 1,642.9 | $ | 61.1 | 4 % | ||
Operating income (loss) | $ | 106.3 | $ | 97.4 | $ | 8.9 | 9 % | ||
Earnings (loss) before taxes | $ | 112.4 | $ | 89.7 | $ | 22.7 | 25 % | ||
Operating income (loss), ex. one-time items* | $ | 106.3 | $ | 97.5 | $ | 8.8 | 9 % | ||
Earnings (loss) ex. one-times * | $ | 112.4 | $ | 95.2 | $ | 17.2 | 18 % | ||
Adjusted EBITDA* | $ | 196.3 | $ | 188.9 | $ | 7.4 | 4 % | ||
* Please refer to the non-GAAP financial tables attached |
Revenues increased 4% to $1,704.0 million, primarily driven by growth in the Children’s Book Publishing and Distribution segment, on higher fair count and revenue per fair in the Book Fairs channel. The Education Solutions segment revenues were down as schools’ purchasing levels were lower compared to the prior year period, when schools were refilling classrooms with in-person learning materials as pandemic restrictions were fully lifted. In addition, demand for certain of the Company’s supplemental instructional products and programs was lower as customer purchasing shifted to the Company’s more customized products and blended reading solutions. Lower International revenues reflected the negative impact of foreign currency exchange and the disposition of the unprofitable direct sales business earlier in the fiscal year, partially offset by higher international book fairs revenues as Major Markets continued to recover from the pandemic.
Operating Income increased 9% to $106.3 million, while Adjusted EBITDA (a non-GAAP measure of operations explained in the accompanying tables) increased 4% to $196.3 million. These results primarily reflect higher contribution from the Children’s Book Publishing and Distribution segment, driven by higher revenue and operating leverage in Book Fairs. In addition, the Company realized improved operating margin in Asia attributable to the exit from the direct sales business, which generated losses in the prior year.
Capital Position and Liquidity
In $ millions | Fiscal Year | Change | ||||||||
2023 | 2022 | $ | % | |||||||
Net cash provided by operating activities | $ | 148.9 | $ | 226.0 | $ | (77.1) | (34) % | |||
Additions to property, plant and equipment and prepublication | (88.9) | (59.2) | (29.7) | (50) % | ||||||
Net proceeds from sale of assets | — | 16.0 | (16.0) | NM | ||||||
Free cash flow (use)* | $ | 60.0 | $ | 182.8 | $ | (122.8) | (67) % | |||
Net cash (debt)* | $ | 218.5 | $ | 310.1 | $ | (91.6) | (30) % | |||
* Please refer to the non-GAAP financial tables attached | ||||||||||
NM – Not meaningful |
Year-to-date net cash provided by operating activities decreased $77.1 million compared to the prior period, primarily driven by higher inventory purchases of approximately $110.0 million as the Company replenished stock to meet demand and mitigate shipping delays, and by lower net refunds from income taxes of $51.3 million relative to the prior year. These factors were partially offset by higher customer remittances on receivable balances in fiscal 2023 of approximately $62.6 million. Free cash flow (a non-GAAP measure of operations explained in the accompanying tables) was $60.0 million in fiscal 2023, compared to free cash flow of $182.8 million in the prior period, reflecting lower cash from operating activities in addition to increased investments in product development and operational optimization efforts.
In fiscal 2023, the Company distributed $25.6 million in dividends, including $6.7 million in the fourth quarter, and repurchased 3,310,489 shares of its common stock for $135.1 million.
The Company’s Boards of Directors has authorized an additional $100 million for repurchases of its common stock under the Company’s stock repurchase program. Under this program, which will continue to be funded with available cash, 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.
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, July 20, 2023. Peter Warwick, Scholastic President and Chief Executive Officer, and Kenneth Cleary, the Company’s Chief Financial Officer, will moderate the call.
The conference call and accompanying slides will be webcast and accessible through the Investor Relations section of Scholastic’s website, www.investor.scholastic.com. To access the conference call by phone, please go to this link (registration link), and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. Shortly following the call, an archived webcast and accompanying slides from the conference call will also be posted at investor.scholastic.com.
About Scholastic
For more than 100 years, Scholastic Corporation (NASDAQ: SCHL) has been encouraging the personal and intellectual growth of all children, beginning with literacy. Having earned a reputation as a trusted partner to educators and families, Scholastic is the world’s largest publisher and distributor of children’s books, a leading provider of literacy curriculum, professional services, and classroom magazines, and a producer of educational and entertaining children’s media. The Company creates and distributes bestselling books and e-books, print and technology-based learning programs for pre-K to grade 12, and other products and services that support children’s learning and literacy, both in school and at home. With 15 international operations and exports to 165 countries, Scholastic makes quality, affordable books available to all children around the world through school-based book clubs and book fairs, classroom libraries, school and public libraries, retail, and online. 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 | Twelve months ended | ||||||||
05/31/23 | 05/31/22 | 05/31/23 | 05/31/22 | ||||||
Revenues | $ | 528.3 | $ | 514.4 | $ | 1,704.0 | $ | 1,642.9 | |
Operating costs and expenses: | |||||||||
Cost of goods sold | 220.4 | 224.6 | 786.4 | 765.5 | |||||
Selling, general and administrative expenses (1) | 202.2 | 210.1 | 756.6 | 722.8 | |||||
Depreciation and amortization | 13.7 | 13.8 | 54.7 | 56.8 | |||||
Asset impairments and write downs | — | 0.4 | — | 0.4 | |||||
Total operating costs and expenses | 436.3 | 448.9 | 1,597.7 | 1,545.5 | |||||
Operating income (loss) | 92.0 | 65.5 | 106.3 | 97.4 | |||||
Interest income (expense), net | 3.5 | (0.2) | 5.8 | (2.4) | |||||
Other components of net periodic benefit (cost) | 0.1 | 0.0 | 0.3 | 0.1 | |||||
Gain (loss) on assets held for sale (2) | — | (15.1) | — | (15.1) | |||||
Gain (loss) on sale of assets and other (3) | — | 3.5 | — | 9.7 | |||||
Earnings (loss) before income taxes | 95.6 | 53.7 | 112.4 | 89.7 | |||||
Provision (benefit) for income taxes (4) | 19.8 | 1.6 | 25.9 | 8.7 | |||||
Net income (loss) | 75.8 | 52.1 | 86.5 | 81.0 | |||||
Less: Net income (loss) attributable to noncontrolling interest | 0.1 | 0.0 | 0.2 | 0.1 | |||||
Net income (loss) attributable to Scholastic Corporation | $ | 75.7 | $ | 52.1 | $ | 86.3 | $ | 80.9 | |
Basic and diluted earnings (loss) per share of Class A and Common | |||||||||
Basic | $ | 2.33 | $ | 1.51 | $ | 2.56 | $ | 2.33 | |
Diluted | $ | 2.26 | $ | 1.46 | $ | 2.49 | $ | 2.27 | |
Basic weighted average shares outstanding | 32,585 | 34,382 | 33,780 | 34,527 | |||||
Diluted weighted average shares outstanding | 33,498 | 35,434 | 34,732 | 35,564 | |||||
(1) | In the three and twelve months ended May 31, 2022, the Company recognized pretax severance and related charges of $0.5 and $6.2, | |||||||||
(2) | In the three and the twelve months ended May 31, 2022, the Company recognized pretax loss on assets held for sale related to the | |||||||||
(3) | In the three and twelve months ended May 31, 2022, the Company recognized pretax gain on the sale of its UK distribution facility located | |||||||||
(4) | In the three and twelve months ended May 31, 2022, the Company recognized a benefit of $3.1 and $1.3, respectively, for income taxes in | |||||||||
(5) | Earnings (loss) per share are calculated on non-rounded net income (loss) and shares outstanding. Recalculating earnings per share based |
Table 2 | |||||||||||||||
Scholastic Corporation | |||||||||||||||
Segment Results | |||||||||||||||
(Unaudited) | |||||||||||||||
(In $ Millions) | |||||||||||||||
Three months ended | Change | Twelve months ended | Change | ||||||||||||
05/31/23 | 05/31/22 | $ | % | 05/31/23 | 05/31/22 | $ | % | ||||||||
Children’s Book Publishing and | |||||||||||||||
Revenues | |||||||||||||||
Books Clubs | $ | 26.2 | $ | 27.2 | $ | (1.0) | (4) % | $ | 117.8 | $ | 126.4 | $ | (8.6) | (7) % | |
Book Fairs | 180.5 | 161.5 | 19.0 | 12 % | 553.1 | 429.7 | 123.4 | 29 % | |||||||
Consolidated Trade | 84.3 | 88.5 | (4.2) | (5) % | 367.1 | 390.4 | (23.3) | (6) % | |||||||
Total Revenues | 291.0 | 277.2 | 13.8 | 5 % | 1,038.0 | 946.5 | 91.5 | 10 % | |||||||
Operating income (loss) | 58.4 | 46.8 | 11.6 | 25 % | 143.4 | 115.3 | 28.1 | 24 % | |||||||
Operating margin | 20.1 % | 16.9 % | 13.8 % | 12.2 % | |||||||||||
Education Solutions | |||||||||||||||
Revenues | 163.4 | 156.8 | 6.6 | 4 % | 386.6 | 393.6 | (7.0) | (2) % | |||||||
Operating income (loss) | 55.0 | 45.8 | 9.2 | 20 % | 58.4 | 81.8 | (23.4) | (29) % | |||||||
Operating margin | 33.7 % | 29.2 % | 15.1 % | 20.8 % | |||||||||||
International | |||||||||||||||
Revenues | 73.9 | 80.4 | (6.5) | (8) % | 279.4 | 302.8 | (23.4) | (8) % | |||||||
Operating income (loss) | 2.2 | 1.3 | 0.9 | 69 % | (3.6) | 3.3 | (6.9) | NM | |||||||
Operating margin | 3.0 % | 1.6 % | — % | 1.1 % | |||||||||||
Overhead expense | 23.6 | 28.4 | (4.8) | (17) % | 91.9 | 103.0 | (11.1) | (11) % | |||||||
Operating income (loss) | $ | 92.0 | $ | 65.5 | $ | 26.5 | 40 % | $ | 106.3 | $ | 97.4 | $ | 8.9 | 9 % | |
NM – Not meaningful |
Table 3 | |||||||||
Scholastic Corporation | |||||||||
Supplemental Information | |||||||||
(Unaudited) | |||||||||
(In $ Millions) | |||||||||
Selected Balance Sheet Items | |||||||||
05/31/23 | 05/31/22 | ||||||||
Cash and cash equivalents | $ | 224.5 | $ | 316.6 | |||||
Accounts receivable, net | 278.0 | 299.4 | |||||||
Inventories, net | 334.5 | 281.4 | |||||||
Accounts payable | 170.9 | 162.3 | |||||||
Deferred revenue | 169.1 | 172.8 | |||||||
Accrued royalties | 52.8 | 61.3 | |||||||
Lines of credit and current portion of long-term debt | 6.0 | 6.5 | |||||||
Long-term debt | — | — | |||||||
Total debt | 6.0 | 6.5 | |||||||
Net cash (debt) (1) | 218.5 | 310.1 | |||||||
Total stockholders’ equity | 1,164.5 | 1,218.4 | |||||||
Selected Cash Flow Items | |||||||||
Three months ended | Twelve months ended | ||||||||
05/31/23 | 05/31/22 | 05/31/23 | 05/31/22 | ||||||
Net cash provided by (used in) operating activities | $ | 120.0 | $ | 47.5 | $ | 148.9 | $ | 226.0 | |
Add: | |||||||||
Net proceeds from sale of assets | — | 5.6 | — | 16.0 | |||||
Less: | |||||||||
Additions to property, plant and equipment | 25.2 | 14.0 | 62.0 | 42.0 | |||||
Prepublication expenditures | 9.1 | 4.2 | 26.9 | 17.2 | |||||
Free cash flow (use) (2) | $ | 85.7 | $ | 34.9 | $ | 60.0 | $ | 182.8 | |
(1) | Net cash (debt) is defined by the Company as cash and cash equivalents, net of lines of credit and short-term | |||||||||
(2) | Free cash flow (use) is defined by the Company as net cash provided by or used in operating activities (which |
Table 4 | |||||||||||||||||
Scholastic Corporation | |||||||||||||||||
Supplemental Results – Excluding One-Time Items | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(In $ Millions, except per share data) | |||||||||||||||||
Three months ended | |||||||||||||||||
05/31/2023 | 05/31/2022 | ||||||||||||||||
Reported | One-time | Excluding | Reported | One-time | Excluding | ||||||||||||
Diluted earnings (loss) per share (1) | $ | 2.26 | $ | — | $ | 2.26 | $ | 1.46 | $ | 0.26 | $ | 1.72 | |||||
Net income (loss) (2) | $ | 75.7 | $ | — | $ | 75.7 | $ | 52.1 | $ | 9.1 | $ | 61.2 | |||||
Earnings (loss) before income taxes (3) | $ | 95.6 | $ | — | $ | 95.6 | $ | 53.7 | $ | 12.2 | $ | 65.9 | |||||
Children’s Book Publishing and | $ | 58.4 | $ | — | $ | 58.4 | $ | 46.8 | $ | — | $ | 46.8 | |||||
Education Solutions | 55.0 | — | 55.0 | 45.8 | — | 45.8 | |||||||||||
International (4) | 2.2 | — | 2.2 | 1.3 | 0.6 | 1.9 | |||||||||||
Overhead (5) | (23.6) | — | (23.6) | (28.4) | 0.0 | (28.4) | |||||||||||
Operating income (loss) | $ | 92.0 | $ | — | $ | 92.0 | $ | 65.5 | $ | 0.6 | $ | 66.1 | |||||
Twelve months ended | |||||||||||||||||
05/31/2023 | 05/31/2022 | ||||||||||||||||
Reported | One-time | Excluding | Reported | One-time | Excluding | ||||||||||||
Diluted earnings (loss) per share (1) | $ | 2.49 | $ | — | $ | 2.49 | $ | 2.27 | $ | 0.12 | $ | 2.38 | |||||
Net income (loss) (2) | $ | 86.3 | $ | — | $ | 86.3 | $ | 80.9 | $ | 4.2 | $ | 85.1 | |||||
Earnings (loss) before income taxes (3) | $ | 112.4 | $ | — | $ | 112.4 | $ | 89.7 | $ | 5.5 | $ | 95.2 | |||||
Children’s Book Publishing and | $ | 143.4 | $ | — | $ | 143.4 | $ | 115.3 | $ | — | $ | 115.3 | |||||
Education Solutions | 58.4 | — | 58.4 | 81.8 | — | 81.8 | |||||||||||
International (4) | (3.6) | — | (3.6) | 3.3 | 1.7 | 5.0 | |||||||||||
Overhead (5) | (91.9) | — | (91.9) | (103.0) | (1.6) | (104.6) | |||||||||||
Operating income (loss) | $ | 106.3 | $ | — | $ | 106.3 | $ | 97.4 | $ | 0.1 | $ | 97.5 | |||||
(1) | Earnings (loss) per share are calculated on non-rounded net income (loss) and shares outstanding. Recalculating earnings | |||||||||||||||||
(2) | In the three and twelve months ended May 31, 2022, the Company recognized a benefit of $3.1 and $1.3, respectively, for | |||||||||||||||||
(3) | In the three and the twelve months ended May 31, 2022, the Company recognized pretax loss on assets held for sale | |||||||||||||||||
(4) | In the three and twelve months ended May 31, 2022, the Company recognized pretax severance of $0.5 and $1.2, | |||||||||||||||||
(5) | In the twelve months ended May 31, 2022, the Company recognized pretax insurance proceeds related to an intellectual |
Table 5 | ||||||
Scholastic Corporation | ||||||
Consolidated Statements of Operations – Supplemental | ||||||
Adjusted EBITDA | ||||||
(Unaudited) | ||||||
(In $ Millions) | ||||||
Three months ended | ||||||
05/31/23 | 05/31/22 | |||||
Earnings (loss) before income taxes as reported | $ | 95.6 | $ | 53.7 | ||
One-time items before income taxes | — | 12.2 | ||||
Earnings (loss) before income taxes excluding one-time items | 95.6 | 65.9 | ||||
Interest (income) expense | (3.5) | 0.2 | ||||
Depreciation and amortization (1) | 16.3 | 15.9 | ||||
Amortization of prepublication costs | 6.6 | 6.5 | ||||
Adjusted EBITDA (2) | $ | 115.0 | $ | 88.5 | ||
Twelve months ended | ||||||
05/31/23 | 05/31/22 | |||||
Earnings (loss) before income taxes as reported | $ | 112.4 | $ | 89.7 | ||
One-time items before income taxes | — | 5.5 | ||||
Earnings (loss) before income taxes excluding one-time items | 112.4 | 95.2 | ||||
Interest (income) expense | (5.8) | 2.4 | ||||
Depreciation and amortization (1) | 64.6 | 64.9 | ||||
Amortization of prepublication costs | 25.1 | 26.4 | ||||
Adjusted EBITDA (2) | $ | 196.3 | $ | 188.9 | ||
(1) | For the three and twelve months ended May 31, 2023, amounts include depreciation of $0.8 and | ||||||
(2) | Adjusted EBITDA is defined by the Company as earnings (loss), excluding one-time items, before |
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SOURCE Scholastic Corporation