SCHL - Scholastic jumps 5% post Q1 results; guidance withdrawn

Scholastic ([[SCHL]] +5.0%) typically reports an operating loss and high cash utilization in Q1, when most U.S. schools are not in session.Revenue declined 7% Y/Y to $215.2M, on lower sales in the Company's school distribution channels due to COVID-impacted delays in school openings.Children's Book Publishing and Distribution revenue declined 18.7%; International revenue declined 5% whereas; Education revenues rose 11%.At quarter-end, the Company's cash and equivalents exceeded total debt by $135.6M, compared to $186.4M Y/Y and believe that it has sufficient cash reserves to support its FY2021 business plan.Capital expenditures were $16M, slightly higher than D&A expenses and distributed $5.1M in dividends in Q1.The Company has substantially completed work on lowering its cost base by $100M, as well as new measures being taken, should continue to favorably impact future period results.Given the variability in school schedules, as well as the possibility of new COVID outbreaks, Scholastic is not providing a financial outlook for

For further details see:

Scholastic jumps 5% post Q1 results; guidance withdrawn