Scholastic Corporation (NASDAQ: SCHL) has released its financial results for the fourth quarter and fiscal year 2024, ending on May 31, 2024. The company reported a decrease in revenues from $528.3 million to $474.9 million, marking a 10% decrease compared to the previous year's fiscal fourth quarter. Operating income also experienced a significant decline, dropping from $92.0 million to $47.2 million, representing a 49% decrease. Additionally, earnings before taxes decreased from $95.6 million to $47.3 million, accounting for a 51% decrease.
The diluted earnings per share also saw a substantial decline, falling from $2.26 to $1.23, marking a 46% decrease. Adjusted EBITDA, a non-GAAP measure of operations, decreased from $115.0 million to $90.7 million, reflecting a 21% decrease.
The Children’s Book Publishing and Distribution segment's revenues decreased by 9% to $266.0 million. Book Fairs revenues were $169.5 million, down 6% from the previous year, while Book Clubs revenues declined by 45% to $14.4 million. The consolidated trade revenues were $82.1 million, a 3% decrease.
The Education Solutions segment experienced a 17% decrease in revenues, amounting to $135.7 million. The International segment also faced challenges, with revenues declining 4% or $2.7 million. Overhead costs improved to $20.5 million, representing a reduction from the prior year period.
For the fiscal year 2024, Scholastic reported a 7% decrease in revenues, which fell from $1,704.0 million to $1,589.7 million. Operating income decreased from $106.3 million to $14.5 million, marking an 86% decrease. Diluted earnings per share also saw a significant decline, dropping from $2.49 to $0.40, representing an 84% decrease. Adjusted EBITDA decreased by 30%, falling from $196.3 million to $136.9 million.
Net cash provided by operating activities increased by $5.7 million compared to the prior period, reaching $154.6 million for fiscal year 2024. The company distributed $24.7 million in dividends and repurchased 3,993,576 shares of its common stock for $156.8 million during the fiscal year. Notably, Scholastic currently has $86.6 million authorized for repurchases of the company’s common stock under its stock repurchase program.
Despite the challenges faced, Scholastic Corporation is targeting a modest growth in fiscal 2025, with continued investment in growth initiatives and cost management. The company expects fiscal 2025 revenue growth of 4% to 6% and is targeting adjusted EBITDA of $140 to $150 million.
Scholastic Corporation is a global children’s publishing, education, and media company, and it remains committed to realizing substantial multi-year opportunities to address the broader market for trusted children’s books, reading, and media. Following these announcements, the company's shares moved -3.7%, and are now trading at a price of $36.56. Check out the company's full 8-K submission here.
