LONDON (Thomson Financial) - Children's book publisher and educational group
Scholastic Corporation said third-quarter net losses from continuing operations
were $4.6 million or 12 cents a share compared with $3.8 million or 9 cents a
share in the same quarter a year ago, while revenues from continuing operations
edged higher to $458.4 million from $446 million.
Total net losses came in at $2.14 a share on non-cash write-downs as it
divests direct-to-home continuities, which it now reports as discontinued
operations.
"Last quarter we also moved forward with our plan to divest direct-to-home
continuities, which we hope to substantially complete in the fourth quarter.
While we are reporting a net loss on a GAAP basis because of resulting non-cash
write-downs on discontinued operations, this action is an important catalyst to
improve Scholastic's profitability next year and beyond," said Richard Robinson,
chairman and chief executive.
Average estimates by analysts polled by Thomson Financial predicted a loss
of 21 cents a share and revenues of $458.7 million.
The results included a one-off cost of 2 cents a share related to the
termination of a sublease and a one-off gain of 4 cents a share on the sale of
an investment in the preceding year.
Mr Robinson described the quarter as solid thanks to improving margins in
school book fairs and clubs, strong sales of print products in its Educational
Publishing division and rising international profits and sales.
"Looking ahead we expect the ongoing businesses to meet our fiscal 2008
goals and are on track to achieve 9 to 10% operating margins in fiscal 2010," he
added.
The Company updated its fiscal 2008 outlook for continuing operations for
revenue of $2.2 to $2.3 billion and earnings of $2.50 to $2.85 per diluted
share. Free cash flow, including both continuing and discontinued operations, is
now forecast to be between $90 and $100 million.
tf.TFN-Europe_newsdesk@thomson.com
jlc
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