On March 23, Scholastic (NASDAQ:SCHL) released Q3 2006 earnings for the period ended Feb. 28, 2006.

  • Revenues of $488 million are only a 1.4% increase and miss analysts' expectations by a wide mark.
  • The loss of $0.37 per share is much worse than the Street expected.
  • Forward guidance of $1.70 to $1.80 per share includes $0.15 per share in expected severance charges.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

% Change

Sales

$503

$488

$481

1.4

Net Profit

--

($16)

($1)

N/A

EPS

($0.07)

($0.37)

($0.02)

N/A



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

%Change

Gross Margin

50.34%

51.35%

(1.01)

Op. Margin

(3.65%)

1.64%

(5.29)

Net Margin

(3.18%)

(0.17%)

(3.01)



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

% Change

Cash+ ST Invest.

$220

$22

900

Inventory

$481

$468

2.7

Accounts Rec.

$242

$249

(2.9)



Liabilities

Q3 2006

Q3 2005

% Change

Long-Term Debt

$173

$489

(64.6)

Accounts Pay.

No Data

No Data

No Data



Learn the ways of the balance sheet.

Cash Flow Highlights

Q3 2006

Q3 2005

% Change

Cash From Ops

$210

$112

87.6%

Capital Expend.

$47

$31

48.4%

Free Cash Flow*

$164

$81

102.9%

*Cumulative through Q3. This FCF measure excludes only capex, and is therefore different from Scholastic's more conservative FCF number.

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Related companies:

  • McGraw-Hill (NYSE:MHP)
  • Pearson (NYSE:PSO)
  • Amazon.com (NASDAQ:AMZN)
  • Barnes & Noble (NYSE:BKS)
  • Borders Group (NYSE:BGP)

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Seth Jayson had no positions in any company mentioned here. Fool rules are here.