After selling or closing a number of businesses in the previous three years, fiscal 2011, ended May 31, was relatively quiet for Scholastic with no significant changes to its portfolio. The biggest deal in the year was the $24.3 million the company paid to acquire the land under its New York City headquarters, according to the publisher's recently released 10-k filing (it also paid $8.2 million to buy Math Solutions). The just concluded fiscal year also saw Scholastic post its second consecutive year of net income after reporting net losses in fiscal 2009 and 2008.
Scholastic's largest group, the children's book publishing and distribution group, reported a 1% increase in sales in the year, although operating income fell to $78.1 million, from $117.9 million, due mainly to increased digital investments and higher promotional spending. Within the group, revenue from school book clubs fell 2%, to $298.2 million, due to lower revenue per order, slightly offset by a higher number of orders. Trade sales increased 8%, to $189.4 million, driven by increased sales of e-books including the Hunger Games trilogy. Revenue from school book fairs rose 1%, to $434.4 million, which was due to higher revenue per fair and a higher number of fairs, partially offset by lower warehouse sales.
For the current fiscal year, Scholastic expects book fair sales to increase, driven by higher revenue per fair, while trade sales will have a modest decline. Club sales are expected to be flat. For the entire company, revenue is once again projected to be around $1.9 billion.
Scholastic Results 2010–2011
($ in millions)
|Children's Book Publishing & Distribution||$910.6||$922.0||1%|