Revenues Rise 8% at Simon and Schuster
Jim Milliot -- Publishers Weekly, 4/30/2001
A revenue increase of 8%, to $121.9 million, helped Simon & Schuster rebound from a loss before taxes, depreciation and amortization of $1.7 million in the first quarter of 2000, to a positive EBITDA of $2 million for the first quarter ended March 31, 2001.
Company president Jack Romanos said sales were up in all publishing segments. "We had a strong close in 2000 that carried over into 2001. We entered the first quarter with quite a bit of momentum," Romanos told PW. He said the children's division has had a "remarkable run," particularly in the picture books area, and noted that the children's group is now large enough that a good performance "can move the needle" for the whole company. Romanos added that another positive factor in the quarter was that most of the revenues in the period came from books released in 2000 and not from the 2001 publishing program, which is just starting to kick in.
Romanos said that despite a slowdown in the economy he is expecting S&S to have a good year, although he noted, "We're mindful of marketplace conditions." The bankruptcies of Crown Books and Bibelot and the downsizing of Tower's book operations are concerns, Romanos acknowledged, but he was hopeful other retailers "will pick up the slack."
