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Scholastic Reports Fiscal 2021 Third Quarter Results Sinvestor.scholastic.com/news-releases/news-release-details/scholastic-reports-fiscal-2021-third-quarter-results Improvement in Seasonal Operating Loss Driven by Cost Reductions NEW YORK , March 18 , 2021Scholastic Corporation ( NASDAQ : SCHL ) , the global children's publishing , education and media company , today reported financial results for the Company's fiscal third quarter ended February 28 , 2021. The third quarter is a seasonally lower revenue quarter for the Company in which it typically records a loss . School book fairs revenues declined in the quarter , as many schools were still operating in remote or hybrid mode . The impact on operating income from this revenue shortfall was offset by the continued effect of the Company's cost reduction program , resulting in a year - over - year improvement in the Company's quarterly operating loss , both before and after one - time items . Fiscal Third Quarter 2021 Review ( In $ Millions ) Revenues Operating income ( loss ) One - time items Third Quarter FY 2021 FY 2020 $ ( 24.2 ) SCHOLASTIC 12.3 Variance $ 277.5 $ 373.3 ( $ 95.8 ) ( 26 % ) ( 60.0 ) % 35.8 60 % 43.2 ( 30.9 ) ( 72 % ) Operating income ( loss ) , ( 11.9 ) ( 16.8 ) 4.9 excluding one - time items * Please refer to the non - GAAP financial tables attached 29 % Chairman's Commentary " Getting kids back into school is now a clear national priority and we are experiencing growth in spring fair bookings as more districts offer in - person learning . We are seeing expanded opportunities in all of Scholastic's channels for summer reading , helped by the urgency of parents and educators to accelerate the reading growth of their children . In addition , significant federal stimulus dollars will be supporting K - 12 education , " said Richard Robinson , Chairman , President and Chief Executive Officer . " These trends support our confidence in a strong recovery for our school - related businesses in our coming fiscal year . " Mr. Robinson continued , " Although school book fairs revenues declined in the quarter , as expected , our trade , teaching resources and digital education businesses continue to perform extremely well . Scholastic's trade group was recently cited as ' untouchable ' by Publishers Weekly as evidenced by our top position in their children's fiction bestseller list for 2020 , where we held nearly 50 % of the bestsellers for the entire year . We are excited about our spring frontlist of new trade titles including Dog Man : Mothering Heights , and we have just released The Power of Story 2021 , a valuable resource for parents , teachers , librarians and booksellers seeking diverse books . Responding to new opportunities in the K - 12 education market , in the quarter we announced the combination of two education businesses into a new Education Solutions group , with greater focus on digital learning and curriculum programs . This new strategic direction will allow for increased investment in education content , as well as greater market penetration and cross - selling opportunities across our portfolio of both print and digital curriculum and supplemental literacy products and book collections . " Mr. Robinson concluded , " We have successfully delivered on our committed $ 100 million of cost savings and continue to reduce our cost base in response to lower revenues due to COVID - related school closings , while also continuing to make strategic investments in new trade titles and educational products , including our new early childhood curriculum , as well as technology . Our solid balance sheet and market leading publishing and education content have enabled us to navigate through this challenging period , while strengthening our capacities for greater success long - term in the U.S. and internationally . " Revenues Third quarter revenue was $ 277.5 million , a decrease of 26 % compared to $ 373.3 million in the third quarter of 2020 , mainly due to lower sales in the Company's book fairs operations that were adversely impacted by continuing COVID - related conditions in schools across the United States and Canada . Partially offsetting the shortfall in book fairs ' revenues was continued strength in the Company's trade , 1/12