HarperCollins reported sales for their fiscal first quarter, ending September 30. Total revenues rose $3 million, or 1 percent to $406 million for the quarter, while EBITDA dropped 24 percent to $42 million (compared to $55 million a year ago). But “adjusted” revenues, setting aside the addition of Harlequin (which was acquired during the third quarter in 2014) fell by $7 million, and adjusted EBITDA declined $20 million, to $40 million. While the Harlequin acquisition has gone well for the company, the core HarperCollins sales have declined (or been flat) the last four straight quarters. And the company did get […]
Earnings Reports
HMH Stumbles On Soft Education Market
Houghton Mifflin Harcourt reported a difficult third quarter and reduced their expectations for the full year. Sales were up $25 million to $576 million for the quarter — but that include $82 million from the recently-acquired EdTech business they bought from Scholastic. Without that addition, sales would have been down $58 million. Operating income fell $13.5 million to $102.6 million. “In light of a softer open territory market and smaller supplemental and residual market,” the company reduced its guidance for the full year, and the stock is down more than 7 percent this morning. To appease investors, they authorized another […]
Quarterly Briefs: Continued Improvement For Indigo; Quarto Stays Flat
Canada’s Indigo reported second quarter results on Tuesday, with sales rising $16.7 million (CA), or 8.8 percent, to $206 million, and a reduced net loss of $1.8 million, compared to a loss of $8.5 million a year ago. As in the previous year, “revenue growth was driven by the continued double digit growth of the general merchandise business” mainly in “paper and toys,” with changes to the paper business to account for the weakness of the Canadian dollar. The company’s core book business growth also got a big boost “by the trend for adult coloring books,” while reducing costs related […]
Simon & Schuster Has Modest Gain in Third Quarter
After four straight quarters of declining sales, Simon & Schuster gained $4 million (or 2 percent) in the third quarter, with sales of $203 million. (While that’s an improvement from $199 million in the same quarter a year ago, it’s still well below where third quarter sales have been previously: $224 million recorded in 2013, $220 million in 2012, and $210 million in 2011.) More consistent are the division’s profits, which have remained robust even as sales have generally ebbed over recent quarters: They had OIBDA of $42 million in the third quarter, up $1 million from the previous year, and operating income […]
Bloomsbury’s Sales Rise On Children’s and Acquisitions, But Profit Declines
In line with their brief first quarter report, Bloomsbury announced more detailed results for the first half of 2015. Overall sales 13 percent, up £6.1 million to £52.7 million, but profit before tax fell by £200,000 to £300,000. (Sales and profits are “significantly second-half weighted.”) The company had £600,000 in restructuring costs related to acquisitions and the restructuring of the Bloomsbury Information, an another £900,000 of amortization related to acquisitions. Continuing the story from last year, children’s division sales rose £16.3 million (up £5.1 million) on John Green’s Paper Towns and new Harry Potter editions, while underlying adult sales fell again. The adult division was up […]
“Solid Growth” in Trade Business In Otherwise Lackluster First Quarter for Scholastic
In Scholastic’s fiscal first quarter, ending August 31, adjusted sales were just above flat at $191.2 million, after account for the education unit sold to Houghton Mifflin Harcourt, now reported as discontinued operations. Their seasonal net loss of $49.4 million was larger than the $34.1 million adjusted loss of a year ago — typical in that Scholastic generally has a loss in the first quarter, since schools are not in session, but different since it the absence of the EdTech business made the seasonal loss higher. The strong dollar pulled down international sales by $11.7 million. Trade book sales of $47.3 million were […]