Scholastic Misses Q3 Views

posted a wider-than-expected third-quarter loss on Thursday. The New York-based company reported a quarterly loss of $22.1 million, or $0.68 per share, versus a year-ago loss $12.1 million, or $0.38 per share. Excluding one-time items, the company posted a loss of $0.59 per share, versus a year-earlier loss of $0.68 per share. Its revenue gained 2% to $382.1 million. However, analysts were projecting a loss of $0.56 per share on revenue of $388.5 million. Revenue for Children's Book Publishing and Distribution segment rose to $202.9 million in the latest quarter, from $190.0 million in the year-ago period. Revenue for Educational Technology and Services segment slipped 4% to $34.3 million, while Classroom and Supplemental Materials Publishing segment revenue rose 7% to $49.1 million. International segment revenue fell to $86.3 million from $91.0 million, while Media, Licensing and Advertising segment revenue dropped to $9.5 million from $10.7 million. At quarter-end, Scholastic's net debt was $69.5 million, versus $157.7 million a year earlier. "We continued our positive trajectory of profitable year-over-year sales growth in the third quarter, which is typically a lower revenue quarter for the Company. Our turnaround in Clubs performance, which began in January 2014 on the strength of new marketing initiatives and promotion strategies, has progressed a full year, now providing for tougher comparisons. We remain excited about the longer-term growth prospects for children's books and supplemental education publishing in terms of higher teacher-sponsor engagement and increased student participation in our reading clubs, higher revenue per school book fair, and our ability to customize classroom collections of books and materials to meet school districts' needs as they face more exacting proficiency standards for all students," commented Richard Robinson, Chairman, President and Chief Executive Officer. Scholastic reaffirmed its forecast for the year. Scholastic shares fell 3.12% to close at $38.25 yesterday.