-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UfOAAifHinOq8DmzbK3ZFt9/igpCiB3AzQ4o3Zg9ih75YkEs/RFHCme4MO0Rnnbc 7HXFrsK+v+A8Q+hDkmVkoA== 0000889812-96-001912.txt : 19961213 0000889812-96-001912.hdr.sgml : 19961213 ACCESSION NUMBER: 0000889812-96-001912 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961211 ITEM INFORMATION: Other events FILED AS OF DATE: 19961212 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCHOLASTIC CORP CENTRAL INDEX KEY: 0000866729 STANDARD INDUSTRIAL CLASSIFICATION: BOOKS: PUBLISHING OR PUBLISHING AND PRINTING [2731] IRS NUMBER: 133385513 STATE OF INCORPORATION: DE FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19860 FILM NUMBER: 96679646 BUSINESS ADDRESS: STREET 1: 555 BROADWAY CITY: NEW YORK STATE: NY ZIP: 10012 BUSINESS PHONE: 2123436100 MAIL ADDRESS: STREET 1: 555 BROADWAY CITY: NEW YORK STATE: NY ZIP: 10012 8-K 1 CURRENT REPORT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of The Securities Act of 1934 Date of Report (date of earliest event reported): December 11, 1996 SCHOLASTIC CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 33-45022 13-3385513 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 555 Broadway, New York, New York 10012 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code 212-343-6100 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereto duly authorized. SCHOLASTIC CORPORATION By /s/ Kevin McEnery ---------------------------- Kevin McEnery Executive Vice President and Chief Financial Officer Dated: December 12, 1996 Item 5. Other Events Attached as Exhibit 1 hereto and incorporated herein by reference is a copy of the press release issued by Scholastic Corporation, a Delaware corporation (the "Registrant"), on December 11, 1996 relating to the second quarter earnings report of the Registrant. EXHIBIT 1 --------- FOR IMMEDIATE RELEASE Contact - Media: Gabrielle Torello, (212) 343-6897 Investor Relations: Ray Marchuk, (212) 343-6741 SCHOLASTIC CORPORATION ANNOUNCES SECOND QUARTER RESULTS New York, NY, December 10, 1996 -- Scholastic Corporation (NASDAQ: SCHL) today reported revenue of $342.2 million for the three months ended November 30, 1996 which was $47.6 million, or 16%, greater than the comparable quarter last year. Net income in the quarter was $38.5 million, an increase of $7.3 million, or 24%, over the comparable period last year. Fully diluted earnings per share grew to $2.21 in the second quarter from $1.81 last year, a 22% increase. Revenue for the six months ended November 30, 1996 totaled $500.8 million, which was $71.0 million, or 17%, greater than last year, and operating income rose 16% to $46.4 million. Net income rose 15% to $24.5 million, or $1.47 per share fully diluted. Domestic book publishing, up $22.6 million or 11%, was the largest contributor to the revenue growth in the quarter. The book fair channel had the largest growth rate resulting from an increased number of fairs and increased revenue per fair. The Company successfully integrated the Trumpet book club, which was acquired in January 1996 and provided the increase in total book club sales in the second quarter. Trade sales equaled last year's strong performance, which had been up 100% over the prior quarter. Media, TV/Movie Productions and Licensing realized a 129% increase in revenue this quarter primarily due to Goosebumps merchandise licensing royalties. International had a strong quarter with revenues up 27%, aided by good growth in the UK which benefited from the Pages book fair acquisition in March of 1996. Operating income grew faster than sales due to significant increase in high margin merchandise license product royalties, combined with improved international and children's book publishing margins. "We are pleased with the solid operating results for the quarter," said Richard Robinson, President, Chief Executive Officer, and Chairman of the Board of Scholastic. "In addition to the outstanding results in Scholastic Productions and International, Literacy Place in its first year of sales continues to be ranked as one of the top basal reading programs in the US. Indications from early selling efforts of Literacy Place are very positive in California, our largest opportunity for next summer." For more than 75 years, Scholastic has been committed to creating quality educational materials for students and teachers. The Company is one of the leading publishers and distributors of children's books, classroom and professional magazines, and other educational products. Scholastic also publishes educational software and produces children's and family-oriented video and television programming. The Company's international operations include Canada, Australia, New Zealand, the United Kingdom, France and Mexico. # # # ================================================================================ - -------------------------------------------------------------------------------- SCHOLASTIC CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED NOVEMBER 30, 1996 AND 1995 (AMOUNTS IN THOUSANDS EXCEPT PER SHARE DATA) - --------------------------------------------------------------------------------
-------------------------------------------------------- THREE MONTHS ENDED -------------------------------------------------------- Increase/(Decrease) 11/30/96 11/30/95 $ % ----------- ------------- ----------- ----------- Revenues Domestic Book publishing $234,681 $212,096 $22,585 11% Magazine publishing 28,787 27,861 926 3 Media, TV/Movie Productions & Licensing 20,995 9,149 11,846 129 International 57,711 45,504 12,207 27 ----------- ------------- ----------- Total revenues 342,174 294,610 47,564 16 Costs and expenses 276,607 241,400 35,207 15 ----------- ------------- ----------- Operating income 65,567 53,210 12,357 23 Net interest expense 4,211 3,014 1,197 40 ----------- ------------- ----------- Earnings before taxes 61,356 50,196 11,160 22 Tax provision 22,886 19,074 3,812 20 =========== ============= =========== Net income $38,470 $31,122 $7,348 24 =========== ============= =========== Weighted average shares outstanding Primary 16,322 16,180 Fully Diluted 17,781 17,661 Net income per share: Primary $2.36 $1.92 $0.44 23 Fully Diluted $2.21 $1.81 $0.40 22 ---------------------------------------------------------
--------------------------------------------------------- SIX MONTHS ENDED --------------------------------------------------------- Increase/(Decrease) 11/30/96 11/30/95 $ % ------------- ------------ ----------- ----------- Revenues Domestic Book publishing $347,143 $310,071 $37,072 12% Magazine publishing 35,135 34,011 1,124 3 Media, TV/Movie Productions & Licensing 28,843 11,476 17,367 151 International 89,642 74,243 15,399 21 ------------- ------------ ----------- Total revenues 500,763 429,801 70,962 17 Costs and expenses 454,391 389,851 64,540 17 ------------- ------------ ----------- Operating income 46,372 39,950 6,422 16 Net interest expense 7,582 5,365 2,217 41 ------------- ------------ ----------- Earnings before taxes 38,790 34,585 4,205 12 Tax provision 14,311 13,255 1,056 8 ============= ============ =========== Net income $24,479 $21,330 $3,149 15 ============= ============ =========== Weighted average shares outstanding Primary 16,254 16,100 Fully Diluted 17,763 17,009 Net income per share: Primary $1.51 $1.32 $0.19 14 Fully Diluted $1.47 $1.31 $0.16 12 ------------------------------------------------------------
- -------------------------------------------------------------------------------- FORWARD LOOKING STATEMENTS This press release contains certain forward looking statements. Such forward looking statements are subject to various risks and uncertainties. Actual results could differ materially from those currently anticipated. - -------------------------------------------------------------------------------- ================================================================================ -----END PRIVACY-ENHANCED MESSAGE-----