Page 1

SCHOLASTIC REPORTS FISCAL 2022 SECOND QUARTER RESULTS Book Fairs Achieves 70 % of Pre - Pandemic Levels with $ 176M in Revenue Operating Profit Improves 71 % on a 29 % Increase in Revenues New York December 16 , 2021 Scholastic Corporation ( NASDAQ : SCHL ) , the global children's publishing , education and media company , today reported financial results for the Company's fiscal second quarter ended November 30 , 2021 . Fiscal Second Quarter 2022 Review ( In $ Millions ) Revenues SCHOLASTIC Operating income ( loss ) One - time items Operating income ( loss ) , ex . one - time items * * Please refer to the non - GAAP financial tables attached Second Quarter Fiscal 2022 $ 524.2 $ 83.4 0.9 Ś 84.3 1 Fiscal 2021 $ 406.2 $ 48.8 5.5 $ 54.3 Change $ $ 118.0 $ 34.6 % 29 % 71 % Company Commentary " Building on the momentum in the first three months of the fiscal year , we had a strong second quarter with the book fairs channel leading the way and outperforming management's expectations . The number of in - person book fairs is approximately 70 % of pre - pandemic levels and revenue - per - fair has been better than anticipated , " said Peter Warwick , President and Chief Executive Officer . " Our education solutions business has seen higher sales of physical and digital product for both curriculum and supplemental materials including PreK On My Way and our new Rising Voices offering , which provides culturally relevant texts celebrating the stories of the historically underrepresented . " " While we are facing cost pressures in our supply chain and labor pools , and some of our international businesses continue to be adversely affected by COVID - related restrictions , we remain optimistic in our ability to generate strong free cash flow and sustainable value for all of our stakeholders in large part due to our previous digital and infrastructure investments . These investments have brought increased sophistication to our data analytics which we are utilizing to balance printing capacity constraints against top selling products , asses rising overseas freight costs compared to domestic manufacturing , and optimize revenue per fair based on available inventory and resource capacity . Our award winning books , exceptional education materials and successful on - screen adaptations continue to drive demand for the rich content we produce across all of Scholastic's businesses . " Revenues Consolidated revenues increased 29 % to $ 524.2 million in the second quarter versus the prior year period , primarily driven by higher revenues in the U.S. book fairs and education channels . With schools back in session , the demand for in - person book fairs returned and the Company experienced higher than expected revenue per fair . Comprehensive instruction offerings , including Prek On My Way , and professional learning services continued to drive revenue in the quarter , however the primary driver was revenues from the Company's new Rising Voices Library offering which meets the increasing demand for culturally responsive content and instruction . The book clubs channel experienced a 10 % increase in revenue per event , but due to industry - wide labor shortages and a discrete systems issue in the Company's fulfillment operations , revenues fell short of prior period due to an increase in backlog . The trade channel continues to perform well with the release of Cat Kid Comic Club : Perspectives , the second title in the bestselling series by Dav Pilkey , and J.K. Rowling's The Christmas Pig . Internationally , Canada performed well in the quarter with higher revenues in all channels and the UK remained relatively consistent when compared to the prior period . However ,