# Scholastic Corp: Form 10-Q for the period ended Nov 30, 2023

- Company: [Scholastic Corp](/companies/schl.md) (CIK 866729)
- Form: 10-Q
- Filed: 2023-12-15
- Accepted by EDGAR: Dec 15, 2023, 16:01 ET
- Period: 2023-11-30
- Accession: 0000866729-23-000045
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/866729/000086672923000045/schl-20231130.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/866729/000086672923000045/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2023-11-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2023-09-01 to 2023-11-30 | $562.6m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 6 months, 2023-06-01 to 2023-11-30 | $791.1m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2023-09-01 to 2023-11-30 | $234.1m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 6 months, 2023-06-01 to 2023-11-30 | $364.1m | us-gaap:CostOfGoodsAndServicesSold |
| Selling, general and administrative | 3 months, 2023-09-01 to 2023-11-30 | $213.1m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Selling, general and administrative | 6 months, 2023-06-01 to 2023-11-30 | $397.3m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2023-09-01 to 2023-11-30 | $101.3m | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months, 2023-06-01 to 2023-11-30 | $2.2m | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2023-09-01 to 2023-11-30 | $24.6m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2023-06-01 to 2023-11-30 | $800.0k | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2023-09-01 to 2023-11-30 | $76.9m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2023-06-01 to 2023-11-30 | $2.7m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2023-09-01 to 2023-11-30 | $2.45 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2023-06-01 to 2023-11-30 | $0.09 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2023-09-01 to 2023-11-30 | $2.51 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2023-06-01 to 2023-11-30 | $0.09 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2023-09-01 to 2023-11-30 | 31,400,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2023-06-01 to 2023-11-30 | 32,000,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2023-06-01 to 2023-11-30 | $71.6m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Dividends paid | 6 months, 2023-06-01 to 2023-11-30 | $12.8m | us-gaap:PaymentsOfDividendsCommonStock |
| Share repurchases | 6 months, 2023-06-01 to 2023-11-30 | $90.2m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2023-11-30 | $149.5m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2023-11-30 | $840.6m | us-gaap:AssetsCurrent |
| Total assets | at 2023-11-30 | $1.83bn | us-gaap:Assets |
| Current liabilities | at 2023-11-30 | $636.7m | us-gaap:LiabilitiesCurrent |
| Long-term debt | at 2023-11-30 | $0 | us-gaap:LongTermDebtNoncurrent |
| Shareholders' equity | at 2023-11-30 | $1.08bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 1,637 characters.

The following table provides information with respect to repurchases of shares of Common Stock by the Corporation during the three months ended November 30, 2023:

### Issuer Purchases of Equity Securities

### (Dollars in millions, except per share amounts)

| Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Maximum number of shares (or approximate dollar value) that may yet be purchased under the plans or programs (i) |
| --- | ---: | ---: | ---: | ---: |
| September 1 through September 30, 2023 | 152,850 | $39.23 | 152,850 | $79.7 |
| October 1 through October 31, 2023 | 704,958 | 37.41 | 704,958 | 53.3 |
| November 1 through November 30, 2023 | 497,469 | 39.07 | 497,469 | 33.8 |
| **Total** | **1,355,277** |  | **1,355,277** | **$33.8** |

*(i) Represents the amount remaining at November 30, 2023 under the current $100.0 Board authorization for Common share repurchases announced on July 19, 2023, which is available for further repurchases, from time to time as conditions allow, on the open market or through privately negotiated transactions. See Note 12 of Notes to Condensed Consolidated Financial Statements - unaudited in Item 1, “Financial Statements,” for a description of the Company’s share buy-back program and share repurchase authorizations. Subsequent to November 30, 2023, the Board authorized an increase of $66.2 for common stock repurchases, resulting in a current Board authorization of $100.0, which includes the remaining amount from the previous Board authorization.*

### SCHOLASTIC CORPORATION

## Risk factors

As filed, 4,070 characters.

In Item 1A (Risk Factors) in Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2023, the Company described material risk factors which could affect its business. Except as set forth below, as of the date of this Quarterly Report on Form 10-Q there have been no material changes to the risk factors described in the Company’s Annual Report for the fiscal year ended May 31, 2023. Any of the risks identified in such Annual Report, in this Quarterly Report on Form 10-Q or in other reports the Company files with the SEC, and other risks the Company has not anticipated or discussed, could have a material adverse impact on the Company’s business, financial condition or results of operations.

**If we fail to adapt to new purchasing patterns or trends, our business and financial results could be adversely affected.**

The Company’s business is affected significantly by changes in customer purchasing patterns or trends in, as well as the underlying strength of, the trade, educational and media markets for children. In particular, the Company’s educational publishing business may be adversely affected by budgetary restraints and other changes in educational funding as a result of new policies which could be implemented at the federal level or otherwise resulting from new legislation or regulatory action at the federal, state or local level, or by changes in the procurement process, to which the Company may be unable to adapt successfully. In addition, there are many competing demands for educational funds, and there can be no guarantee that the Company will be successful in continuing to obtain sales of its educational programs and materials from any available funding. Further, changes in educational practices affecting structure or content of educational materials or requiring adaption to new learning approaches, particularly in grades pre-K through 6, as well as those which may arise from new legislation or policies at the state or local level directed at content or teaching practices and materials, to which the Company is unable to successfully adapt could result in a loss of business adversely affecting the Company's business and financial performance. In particular, largely as a result of state curricular changes which have adversely impacted sales to schools of certain of the Company’s supplemental literacy instructional materials, including book collections, the Company is in the process of adapting current and creating new literacy materials to better align with evidence- and science-based approaches to literacy instruction which may not be successful in mitigating the current decrease in sales of such materials. In addition, in a highly politicized environment, the content or authors of some of the product being sold by the Company could become controversial, negatively impacting sales made to or through schools, through partnerships with government agencies or through sponsorships and funding programs. In particular, recently enacted or pending state legislation restricting certain content in schools may impact the Company’s ability to host fairs in certain states or result in cancelled fairs as the Company and school volunteers proceed to navigate the complex and difficult social, political and legal environment arising from such legislation, which actions may create negative publicity affecting the Company’s reputation, consequently adversely affecting the Company’s financial results in the short-term. Within the children's book publishing business, the Company's financial performance could also be adversely affected by the ability of the U.S. book clubs channel to complete its strategic integration with the U.S. book fairs channel. The Company has taken a holistic approach to serving its customers as part of the newly formed school reading events division and the Company's ability to execute on new strategies and operational improvements may not align with customer purchasing behaviors, which could negatively impact operating results.

### SCHOLASTIC CORPORATION

Filed Dec 15, 2023.
Source: SEC EDGAR, the filing index for accession 0000866729-23-000045. Last ingested by Listed: Oct 27, 2026, 17:32 ET. No prices; not investment advice.