Scholastic Reports Fourth Quarter and Fiscal 2022 Results


  •  Fourth Quarter Operating Income Up $55.8M on 28% YOY Higher Revenue of $514.4M  
  • Company Expects Full Year 2023 Revenue to Increase 8%-10% Versus Fiscal 2022
  • Regular Quarterly Dividend Raised 33% to $0.20 Per Share
New York – July 21, 2022 - 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, 2022. Scholastic recorded significant revenue and operating income gains in both reporting periods, led by increased in-person book fairs and record revenue-per-fair levels in the U.S. book fairs channel, as well as strong demand for the Company’s educational offerings.
As previously announced, reflecting confidence in the Company’s performance and outlook, its Board of Directors also approved a 33% increase in its regular quarterly cash dividend to $0.20 per share from $0.15 per share on the Company’s Class A and Common Stock for the first quarter of fiscal 2023. The dividend is payable on September 15, 2022 to shareholders of record as of the close of business on August 31, 2022.
Company Commentary from Peter Warwick, Scholastic President & CEO
“Scholastic’s strong fourth fiscal quarter and full-year results were driven by the success of our strategic and operational initiatives, and the ever growing demand for our products by children, parents and our long-standing school partners.” 
“It’s clear that Scholastic has emerged from the challenges of the pandemic even stronger and better positioned for future sustainable growth, as indicated by our higher expectations for fiscal 2023 and the recently announced increase in our regular quarterly dividend. Scholastic’s employees did an amazing job fulfilling our Company mission during these uncertain times by embracing every opportunity to increase collaboration and foster innovation.”
“Looking ahead to fiscal 2023 and beyond, we see continuing demand for our products and services deeply rooted in the fundamental role of our engaging independent reading materials in the learning goals of children. This goes beyond recovery as there is a renewed focus on the benefits that independent reading and book ownership have for young readers and their overall development. As educators, parents and policymakers look to close the learning gaps exacerbated by the pandemic, Scholastic will continue to be a trusted and preferred partner. In addition, our popular and highly-valued intellectual property will fuel our growth and financial performance, as we continually expand and refresh our deep library of content."
Fiscal 2022 Q4 Review 


Revenues increased 28% driven primarily by the return of in-person book fairs and the historically high revenue-per-fair as well as the continued growth in educational product sales due to the high demand for independent reading for children.

Operating Income increased $55.8M to $65.5M while Adjusted EBITDA (a non-GAAP measure of operations explained in the accompanying tables) increased 39% to $88.5M. These increases are indicative of the Company’s ongoing efforts to improve operational efficiencies by streamlining distribution channels and focusing on intelligent spending throughout the Company.

Segment Results

Children’s Book Publishing and Distribution

Book Fairs revenues increased $85.1M on historically high revenue-per-fair levels on 72% of pre-pandemic in-person fair count. 

Trade revenues increased $6.6M primarily driven by key frontlist publishing and backlist titles from the Company’s best-selling series that continue to resonate with customers.

Book Clubs revenues decreased $10.3M as a result of the residual effects of the labor and system issues experienced earlier in the fiscal year.

Education Solutions

Higher revenues of $31.9M were driven by the increased demand for educational materials needed to support a generation of students affected by the COVID pandemic. The Company experienced an increase in sales of family and community engagement and summer reading offerings in the fourth quarter, as well as higher sales of its Scholastic LiteracyTM and Rising Voices Library®.

Demand continues to benefit, in part, from government financed programs such as ESSER, the Elementary and Secondary School Emergency Relief Fund, which provides direct funding to states and districts, and from state-driven programs as seen in the New Worlds Reading Initiative, which exceeded its enrollment target in the first year of a five year contract.


In the major markets, revenue increased $4.5M, primarily driven by the performance of the book fairs channel in both the UK and Canada markets. Business in Australia and New Zealand was adversely affected by the later timing of COVID-related shutdowns when compared to the other markets.

Revenues in Asia decreased as the Company exited its direct sales business, which is no longer a strategic fit for the Company’s future growth strategy, and China continued to be impacted by restrictive government regulations on after-school tutoring programs as well as pandemic-related shutdowns. 


Excluding one-time items, overhead costs increased $13.4M which was primarily related to an increase in employee-related costs arising from inflationary pressures on labor, including unallocated wages from the Company’s Missouri distribution facilities as well as higher accrued bonuses and salary-related benefit costs. 

Fiscal 2022 YTD Review 

Revenues increased 26% primarily driven by the return of in-person book fairs resulting in higher revenues of $265.4M. Education Solutions revenue increased $81.3M on overall higher demand with improved sales of the Company’s culturally-responsive products such as Rising Voices Library, early childhood products such as PreK On My WayTM, summer reading programs and Scholastic Literacy.

Operating Income of $97.4M (and Adjusted EBITDA of $188.9M) are indicative of the recovery of the U.S. book fairs business which benefited from minimal incremental distribution costs associated with higher revenue per fair. The Company also had overall lower selling, general and administrative expenses as a percentage of revenue which is indicative of the effectiveness of the Company’s cost saving initiatives and improved operational efficiencies.

Capital Position and Liquidity

The $155.0M increase in cash provided by operating activities and the $162.3M increase in free cash flow (a non-GAAP measure of operations explained in the accompanying tables) versus the prior period were primarily driven by $390.0M in higher customer collections on the increase in revenues as well as $54.0M in higher net federal tax refunds. This was partially offset by higher inventory purchases of $112.4M, increased payroll related payments, higher postage and freight charges, and a $13.4M net settlement of an intellectual property litigation matter. Higher cash balances will afford the Company financial flexibility to pursue strategic growth initiatives. 

The Company distributed $5.2M in dividends in the fourth quarter and has reacquired 870,258 shares of its common stock for $33.4M in fiscal year 2022. As previously disclosed, this included a privately negotiated transaction with a related party for 300,000 common shares at a 4.2% discount to market prices. In addition, during the fourth fiscal quarter, the Company entered into a privately negotiated transaction with a third party for the repurchase of 190,290 common shares at a 4.0% discount to market prices. The Company expects to continue open market repurchases of its shares for the foreseeable future.


In fiscal 2023, the Company expects the overall demand for independent reading resources at home and in school to remain strong, and management will continue to reallocate investments to yield the best returns by focusing on the value of the Company’s intellectual property, expanding its education solutions channel and, where appropriate, adjust product pricing.

In the book fairs channel, the Company will strategically increase fair count, anticipating 85% pre-pandemic levels, while maintaining strong revenue per fair, continuing to leverage improved distribution efficiencies and sales and marketing efforts. Labor and system issues in the book clubs channel have been mitigated and higher operating incomes are expected on improved customer confidence. The Company is also excited about new releases in the trade channel from some of the most popular best-selling series and authors such as Wings of FireTM GraphixTM by Tui Sutherland, Cat Kid Comic Club®: Collaborations by Dav Pilkey, Brian Selznick’s Big Tree and many more. The Company’s content benefited from on-screen adaptations such as Dreamworks’ The Bad GuysTM and Netflix’s HeartstopperTM in fiscal 2022 and moving forward Scholastic Entertainment has 35+ projects in development, some of which will impact next fiscal year, such as Eva the OwletTM, a new animated kids and family series on AppleTV+ based on the New York Times bestselling Scholastic book series “Owl Diaries”TM by award-winning author Rebecca Elliott.

The Company anticipates increased demand of its educational products supported by continued government-related funding programs, as well as improvements in Education Solutions’ sales and marketing efforts. The Company will enter its second year of the New Worlds Reading Initiative, which will begin in the second fiscal quarter, and will look for future state-sponsored programs opportunities as they arise. The sales of Scholastic Magazines+TM have reached near pre-pandemic levels with distribution of over 125M units of digital and physical product to children throughout the U.S. The Company will prudently increase spending to improve cross-selling initiatives and data-driven selling opportunities which will benefit future periods but will impact next fiscal year, decreasing operating income.

Internationally, the Company is expecting modest improvement in operating profits as the major markets continue to recover from the impacts of the global pandemic and Asia benefits from the Company’s strategic exit of the low-margin direct sales business. 

Overhead costs are expected to increase next year due to higher salary related costs as a result of continuing inflationary pressures and an increase in spending on transformative and digital services as the Company invests in future growth opportunities. The Company will continue to explore further opportunities for measured cost savings with process improvements and automation, product rationalization and overall improvements in resource allocation to increase shareholder value. 

The Company expects fiscal year 2023 revenues to increase 8%-10% and has set an Adjusted EBITDA (as defined in the accompanying tables) target for fiscal year 2023 of $195M to $205M, up from $188.9M in fiscal 2022.

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 21, 2022. 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, 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

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

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 those arising from the continuing impact of COVID-19 related measures taken by governmental authorities, school administrators, or suppliers or customers which may curtail or otherwise adversely affect certain of the Company’s business operations, and 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

Contact: Scholastic Corporation

Investors: Paul Hukkanen, (212) 343-6741 

Media: Anne Sparkman, (212) 343-6657

Click here to download a PDF version of this release with tables.