UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended August 31, 2004 |
|
Commission File No. 000-19860 |
SCHOLASTIC CORPORATION
(Exact name of Registrant as specified in its charter)
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Delaware |
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13-3385513 |
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(State or other jurisdiction of incorporation or organization) |
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(IRS Employer Identification No.) |
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557 Broadway, New York, New York |
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10012 |
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(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code (212) 343-6100
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý No o
Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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Title |
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Number of shares outstanding |
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|
|
|
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Common Stock, $.01 par value |
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38,017,861 |
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Class A Stock, $.01 par value |
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1,656,200 |
SCHOLASTIC CORPORATION
FORM 10-Q FOR THE QUARTERLY PERIOD ENDED AUGUST 31, 2004
INDEX
PART I - FINANCIAL INFORMATION
SCHOLASTIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - - UNAUDITED
(Amounts in millions, except per share data)
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Three months ended |
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||||
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2004 |
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2003 |
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Revenues |
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$ |
323.7 |
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$ |
475.4 |
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|
|
|
|
|
|
|
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Operating costs and expenses: |
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|
|
|
|
||
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Cost of goods sold |
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176.4 |
|
281.4 |
|
||
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Selling, general and administrative expenses |
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185.1 |
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188.1 |
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||
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Selling, general and administrative expenses – Continuity charges |
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3.6 |
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— |
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||
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Bad debt expense |
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16.2 |
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20.7 |
|
||
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Depreciation and amortization |
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13.4 |
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13.0 |
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||
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Special severance charges |
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— |
|
2.0 |
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||
|
|
|
|
|
|
|
||
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Total operating costs and expenses |
|
394.7 |
|
505.2 |
|
||
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|
|
|
|
|
|
||
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Operating loss |
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(71.0 |
) |
(29.8 |
) |
||
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|
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|
|
|
|
||
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Interest expense, net |
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7.0 |
|
8.9 |
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||
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|
|
|
|
|
|
||
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Loss before income taxes |
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(78.0 |
) |
(38.7 |
) |
||
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|
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|
|
|
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||
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Benefit from income taxes |
|
27.7 |
|
13.9 |
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||
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|
|
|
|
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Net loss |
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$ |
(50.3 |
) |
$ |
(24.8 |
) |
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|
|
|
|
|
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Basic and diluted loss per Share of Class A and Common Stock: |
|
$ |
(1.27 |
) |
$ |
(0.63 |
) |
See accompanying notes
1
SCHOLASTIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in millions, except per share data)
|
|
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August 31, 2004 |
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May 31, 2004 |
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August 31, 2003 |
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|||
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|
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(Unaudited) |
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(Unaudited) |
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ASSETS |
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Current Assets: |
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|
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Cash and cash equivalents |
|
$ |
13.3 |
|
$ |
17.8 |
|
$ |
9.1 |
|
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Accounts receivable, net |
|
242.0 |
|
265.7 |
|
365.1 |
|
|||
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Inventories |
|
533.7 |
|
402.6 |
|
491.9 |
|
|||
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Deferred promotion costs |
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41.9 |
|
40.6 |
|
57.7 |
|
|||
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Deferred income taxes |
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104.0 |
|
73.4 |
|
90.9 |
|
|||
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Prepaid and other current assets |
|
49.6 |
|
42.6 |
|
49.5 |
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|||
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Total current assets |
|
984.5 |
|
842.7 |
|
1,064.2 |
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|||
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|
|
|
|
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Property, plant and equipment, net |
|
331.2 |
|
334.6 |
|
336.8 |
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|||
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Prepublication costs |
|
114.1 |
|
116.7 |
|
121.2 |
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|||
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Installment receivables |
|
13.0 |
|
13.1 |
|
14.1 |
|
|||
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Production costs |
|
8.1 |
|
5.5 |
|
12.6 |
|
|||
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Goodwill |
|
250.3 |
|
250.3 |
|
254.8 |
|
|||
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Other intangibles |
|
78.8 |
|
78.9 |
|
74.2 |
|
|||
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Other assets and deferred charges |
|
113.5 |
|
114.0 |
|
120.3 |
|
|||
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Total assets |
|
$ |
1,893.5 |
|
$ |
1,755.8 |
|
$ |
1,998.2 |
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