Scholastic has reported strong results for the second quarter ended November 30th 2009.
The firm recorded a nearly 100 per cent increase in higher margin educational technology sales, as well as margin benefit from targeted price increases and company-wide cost reductions. Before one-time, mostly non-cash charges, the Scholastic recorded a 30 per cent increase in earnings.
On a continuing operations basis, revenue for the quarter was $660.1 million, up one per cent from $653.3 million in the prior period.
“Last quarter Scholastic delivered substantially higher operating margins, earnings and free cash flow, before one-time, primarily non-cash items, on a slight increase in revenue. These results position us well to achieve our fiscal 2010 plan, reaching nine per cent operating margins if we attain the upper end of our guidance," said Richard Robinson, chairman, president and CEO.
Within children’s book publishing and distribution, segment operating income increased three per cent to $107.8 million, compared to $105.1 million in the prior year period, while segment revenue declined by six per cent to $368.8 million from $392.9 million in the prior year period.
Meanwhile, for the first half of fiscal 2010, revenue from continuing operations was $975.7 million, compared to $929.7 million in the prior year period.