Scholastic Corp (NASDAQ:SCHL) reported better-than-expected results for its second quarter.
The New York-based Scholastic came out with second-quarter revenue of $597.2 million, a decrease of 1% compared to $604.7 million in the second quarter of 2019.
Despite a decline in book clubs sales, revenue grew in book fairs, classroom collections and consulting services in Scholastic Education, Asia trade and education, and U.S. trade, which now includes the fully consolidated results of Make Believe Ideas.
Operating income in the second quarter was $105.1 million, a 7% increase as compared to $98.2 million a year ago, mainly attributable to process improvements in the Company's book fairs operations, better cost management in clubs, and lower technology-related overhead expense.
Excluding one-time items, operating income in the second quarter was $107.0 million, up 4% from the prior year period's operating income of $102.9 million.
Net cash provided by operating activities was $111.9 million in the current fiscal quarter compared to net cash provided by operating activities of $128.5 million in the second quarter of fiscal 2019.
The Company had free cash flow of $87.7 million in the current quarter, compared to a free cash flow of $93.5 million a year ago, mainly as a result of higher working capital usage and a reduction in payables.
Shares popped $5.15, or 13.4%, to $43.70.
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