The operating loss for the quarter increased to $26.9 million from $23.9 million a year ago, reflecting ongoing challenges in the market. The company also noted that adjusted EBITDA was flat at $0.0 million, down from $6.0 million in the prior year period. Excluding the impact of sale-leaseback transactions, adjusted operating loss was reported at $21.3 million.
Peter Warwick, President and CEO, emphasized the company's commitment to enhancing shareholder value, stating, "Last quarter, Scholastic made significant progress in its ongoing plan to enhance shareholder value, including optimizing our balance sheet with over $400 million in net proceeds from two sale-leaseback transactions."
In addition to the financial results, Scholastic's Board of Directors has authorized a new $300 million share repurchase program, which includes a planned $200 million modified Dutch auction tender offer. This initiative is part of the company's strategy to manage its balance sheet effectively and return capital to shareholders.
Looking ahead, Scholastic has reaffirmed its outlook for full-year adjusted EBITDA between $146 million and $156 million, with free cash flow expected to exceed $430 million. However, the company anticipates that full-year revenue will remain approximately flat compared to the previous year, reflecting ongoing challenges in the Education segment.
Overall, while Scholastic's strategic initiatives and shareholder returns are positive, the current financial performance indicates challenges that may impact investor sentiment in the short term.
