Scholastic releases Q4 and FY2012 results, and FY 2013 outlook

Scholastic has released its financial results for FY2012, and its outlook for FY2013. The company's results can be summed up in three words: "The Hunger Games." Here's a summary:

• Q4 revenues were up 24% year-over-year, to $678.5 million. 
• EPS (diluted) from continuing operations were $1.86, compared to $0.83 in Q4 2011. 
• FY2012 revenues were up 14% year-over-year, to $2,148.8 million. 
• EPS (diluted) from continuing operations were $3.41 vs. $1.34 in FY2011. 
• Year end cash and cash equivalents exceeded total debt by $35.6 million, compared to debt exceeding cash by $98.1 million a year earlier. 
• Children's Book Publishing and Distribution segment revenue in Q4 was $379.4 million, compared to $268.8 million in Q4 2011. Operating income was $82.4 million vs. $41.6 million in Q4 2011. Q4 School Book Fair revenues grew modestly, but School Book Club revenues declined.  FY2012 segment revenue was $1,111.3 million, up 21% from $922 million in FY2011. Operating income rose to $153 million in FY2012 vs. $78.1 million in FY2011. 
• Educational Technology and Services segment revenue declined to $52.7 million in Q4 from $61.4 million in Q4 2011. Operating income also fell, to $1.7 million in Q4 compared with $8.6 million in Q4 2011. However, FY2012 segment revenue rose to $254.7 million from $230.8 million in FY2011, while operating income increased to $49.2 million in FY2012 vs. $38 million in FY2011. 
• For FY2013, the company expects total revenue of between $1.9 and $2 billion, and EPS (diluted) from continuing operations of from $2.20 to $2.40 before one-time items. 
• Scholastic expects revenues and operating income in the Children's Book Publishing and Distribution segment to decline, due largely to declining sales of The Hunger Games trilogy. It expects Educational Technology and Services revenues to be flat, but operating income to decline slightly. 

Book Fairs are still a big part of Scholastic's marketing efforts

The Wall Street Journal reports that Scholastic's book fairs are still working for them. The fairs have been critical for launching several popular series, including "Goosebumps," "The Baby-sitter's Club" and "Captain Underpants." Book fair revenue increased 3% to $288.1 million for the first nine months of the current fiscal year, and rose 10% from 2007 to 2011. Al Greco (not to be confused with El Greco,) a professor at Fordham University, said that even though Scholastic has had great success with series such as "The Hunger Games" and "Twilight," the company's book fair business faces challenges from eBooks and brick & mortar booksellers such as Barnes & Noble, along with rising shipping and delivery costs. To that end, Scholastic is heavily promoting its new Storia eReader at book fairs, such as the recent one at the Nest, a K-12 school in Manhattan, whose PTA hosts a Scholastic book fair twice a year.

Scholastic to release 50th Anniversary "Clifford the Big Red Dog" titles as eBooks and apps

In time for the 50th anniversary of the "Clifford the Big Red Dog" series, Scholastic will publish Normal Bridwell's Clifford Collection this September, a set of six Clifford titles published between 1963 and 1977. In Spring 2013, the company will publish Clifford's Birthday Party and a new book, Clifford's Bedtime Story. Both the Clifford Collection and Clifford's Birthday Party will be published simultaneously in print, eBook and Spanish versions. In addition, more than 20 Clifford books will be made available as eBooks for Scholastic's Storia eReader.

Scholastic will also publish Clifford's Big Birthday App for iOS and Android in September. Both versions of the app will be priced at $0.99.