Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)
−Removed: statements, as well as higher revenues from Dav Pilkey's Dog Man titles, especially Dog Man:
−Removed: Fetch 22 , Hunger Games backlist titles as the series' new release is planned for later this spring, and Scholastic Early Learners line of Wipe Clean Workbooks.
−Removed: Book fair channel revenue increased $2.7 million compared to the prior year fiscal quarter, primarily driven by an increase in revenue per fair.
−Removed: Book club channel sales decreased $11.6 million due to a lower number of events and lower revenue per event compared to the prior fiscal year quarter.
−Removed: Revenues for the nine months ended February 29, 2020 increased by $11.8 million to $743.4 million , compared to $731.6 million in the prior fiscal year period, primarily related to higher trade channel revenues of $31.5 million , driven by the additional revenues from the completion of the acquisition of a majority interest in MBI and its full consolidation in the financial statements and increased media and entertainment sales, as well as strong sales of core titles, including Dav Pilkey's Dog Man Series , Guts by Raina Telgemeier, The Wonky Donkey and The Dinky Donkey titles, the Wings of Fire series and the Hunger Games novels by Suzanne Collins leading up to the series' new release later this spring, partially offset by lower Harry Potter related sales due to the prior fiscal year release of Fantastic Beasts™:
−Removed: The Crimes of Grindelwald and the Brian Selznick cover editions of Harry Potter.
−Removed: Book fair channel revenues increased $8.4 million on lower fair count, primarily driven by revenue associated with higher net redemptions of incentive credits as well as an increase in revenue per fair when compared to the prior fiscal year period resulting from improved fair quality and selection and the introduction of an e-Wallet digital payment option at more fairs.
−Removed: Partially offsetting the higher segment revenues were lower book club channel sales of $28.1 million compared to the prior fiscal year period, due to lower sponsorship as well as a lower number of events and lower revenue per event compared to the prior fiscal year period.
−Removed: Cost of goods sold for the quarter ended February 29, 2020 was $106.1 million , or 48.2% of revenues, compared to $101.4 million , or 46.5% of revenues, in the prior fiscal year quarter.
−Removed: The increase in Cost of goods sold as a percentage of revenues was primarily due to the completion of the acquisition of the majority interest in MBI and its full consolidation in the financial statements.
−Removed: MBI manufacturing costs associated with specialty products represented a portion of the increase in Cost of goods sold as a percentage of revenues coupled with higher tariff costs recognized in the quarter ended February 29, 2020 , partially offset by product mix in the book club channel resulting in favorable postage, freight and shipping costs.
−Removed: Cost of goods sold for the nine months ended February 29, 2020 was $343.1 million , or 46.2% of revenues, compared to $325.6 million , or 44.5% of revenues, in the prior fiscal year period.
−Removed: The increase in Cost of goods sold as a percent of revenues was primarily due to the completion of the acquisition of the majority interest in MBI and its full consolidation in the financial statements.
−Removed: MBI manufacturing costs associated with specialty products represented a portion of the increase in Cost of goods sold as a percentage of revenues coupled with higher tariff costs recognized in the fiscal period ended February 29, 2020 .
−Removed: The Company continues to monitor and employ strategies to offset increased costs associated with higher tariffs.
−Removed: Tariffs will continue to impact the cost of goods sold in the course of the remaining fiscal year, especially in the domestic school-based channels.
−Removed: Other operating expenses for the quarter ended February 29, 2020 decreased to $111.9 million compared to $112.2 million in the prior fiscal year quarter.
−Removed: The decrease was driven by lower marketing expenses and net sales tax expense in the book club channel, partially offset by increased commissions in the book fair channel due to improved revenue per fair.
−Removed: Other operating expenses for the nine months ended February 29, 2020 decreased to $330.2 million , compared to $341.3 million in the prior fiscal year period.
−Removed: The decrease was primarily driven by business process improvements in the book club and book fair channels and lower net sales tax expense in the book club channel.
−Removed: Segment operating income for the quarter ended February 29, 2020 was $2.2 million , compared to operating income of $4.4 million in the prior fiscal year quarter.
−Removed: Despite the lower sales in the book club channel and the absence of a prior period media sale of Scholastic's evergreen library of Clifford ® programming, the segment operating income was limited to a decrease of $2.2 million as a result of cost reduction strategies adopted in the book club and book fair channels, lower net sales tax expense in the book club channel and higher revenues driving profitability in the trade channel.
−Removed: Segment operating income for the nine months ended February 29, 2020 was $70.1 million , compared to $64.7 million in the prior fiscal year period.
−Removed: Despite the lower sales in the book club channel, the segment operating
−Removed: SCHOLASTIC CORPORATION
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)
−Removed: income increased by $5.4 million as a result of cost reduction strategies adopted in the book club and book fair channels, lower net sales tax expense in the book club channel and continued growth in the trade channel.
−Removed: Three months ended
−Removed: Nine months ended
−Removed: ($ amounts in millions)
−Removed: Cost of goods sold
−Removed: Other operating expenses (1)
−Removed: Operating income (loss)
−Removed: Operating margin
−Removed: (1) Other operating expenses include selling, general and administrative expenses, bad debt expenses and depreciation and amortization.
−Removed: Revenues for the quarter ended February 29, 2020 increased to $74.3 million , compared to $60.3 million in the prior fiscal year quarter.
−Removed: The $14.0 million increase was primarily driven by higher sales of the Company's classroom book collections and core instruction products, including Guided Reading Espanol and Leveled Bookrooms , primarily driven by a large school district sale as well as the delivery of more days of professional learning services associated with Scholastic Literacy in the current fiscal quarter.
−Removed: Additionally, higher classroom magazines revenue was primarily driven by higher sales from the Scholastic News ® line of current events magazines, with the Company's digital subscription product sales being relatively flat, when compared to the prior fiscal period.
−Removed: Revenues for the nine months ended February 29, 2020 increased to $192.6 million , compared to $179.7 million in the prior fiscal year period.
−Removed: The $12.9 million increase was primarily driven by higher sales of the Company's classroom book collections and core instruction products, primarily due to a large school district sale.
−Removed: Sales were also favorably impacted by higher revenues from delivery of professional learning services and classroom magazines.
−Removed: Cost of goods sold for the quarter ended February 29, 2020 was $23.9 million , or 32.2% of revenues, compared to $20.6 million , or 34.2% of revenues, in the prior fiscal year quarter.
−Removed: The decrease in Cost of goods sold as a percentage of revenues was primarily due to favorable product mix, partially offset by the increase in the amortization of prepublication costs related to digital subscription components of the recently launched Scholastic Literacy product.
−Removed: Cost of goods sold for the nine months ended February 29, 2020 was $68.0 million , or 35.3% of revenues, compared to $62.5 million , or 34.8% of revenues, in the prior fiscal year period.
−Removed: The increase in Cost of goods sold as a percentage of revenues was primarily due to an increase in the amortization of prepublication costs related to digital subscription components of the recently launched Scholastic Literacy product, partially offset by favorable product mix.
−Removed: Other operating expenses for the quarter ended February 29, 2020 increased to $40.6 million , compared to $39.4 million in the prior fiscal year quarter.
−Removed: The $1.2 million increase was primarily related to costs incurred in advance of the summer selling season for the comprehensive literacy curriculum product, Scholastic Literacy .
−Removed: Other operating expenses decreased to $122.0 million for the nine months ended February 29, 2020 , compared to $123.5 million in the prior fiscal year period.
−Removed: The $1.5 million decrease was primarily related to lower marketing expenses and a decrease in employee-related costs.
−Removed: Segment operating income for the quarter ended February 29, 2020 was $9.8 million , compared to operating income of $0.3 million in the prior fiscal year quarter.
−Removed: The increase was primarily driven by the higher sales of the Company's classroom book collections and core instruction products, partially offset by the increase in the amortization of prepublication costs related to digital subscription components of the recently launched Scholastic Literacy product.
−Removed: SCHOLASTIC CORPORATION
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)
−Removed: Segment operating income for the nine months ended February 29, 2020 was $2.6 million , compared to an operating loss of $6.3 million in the prior fiscal year period.
−Removed: The increase in operating income was primarily driven by the higher sales of the Company's classroom book collections and core instruction products, partially offset by the increase in the amortization of prepublication costs related to digital subscription components of the recently launched Scholastic Literacy product.
−Removed: International
−Removed: Three months ended
−Removed: Nine months ended
−Removed: ($ amounts in millions)
−Removed: Cost of goods sold
−Removed: Other operating expenses (1)
−Removed: Operating income (loss)
−Removed: Operating margin
−Removed: (1) Other operating expenses include selling, general and administrative expenses, bad debt expenses, severance and depreciation and amortization.
−Removed: Revenues for the quarter ended February 29, 2020 decreased to $78.8 million , compared to $81.8 million in the prior fiscal year quarter.
−Removed: Local currency revenues across the Company's foreign operations decreased by $2.5 million and were adversely impacted by foreign exchange of $0.5 million .
−Removed: Local currency revenues decreased in Canada by $2.0 million , primarily driven by lower school-based channel sales, due to a decline in sponsorship and an on-going teacher labor action in Ontario.
−Removed: Local currency revenues decreased in the Asia markets by $2.0 million driven by lower revenues from the English language tutorial centers in China resulting from the closing of centers due to the coronavirus and lower revenues from the direct sales channel throughout Asia due in part from the local actions taken to curtail the spread of the coronavirus.
−Removed: Local currency revenues in Australia and New Zealand increased $0.9 million primarily on higher trade channel revenues and local currency revenues increased in the UK by $0.6 million primarily driven by higher trade channel revenues due, in part, to the global success of Dav Pilkey's Dog Man series.
−Removed: Revenues for the nine months ended February 29, 2020 decreased to $267.1 million , compared to $271.9 million in the prior fiscal year period.
−Removed: Local currency revenues across the Company's foreign operations increased by $0.2 million , which was more than offset by the adverse impact in foreign exchange of $5.0 million .
−Removed: The local currency increase was primarily driven by higher revenues from the trade channel throughout the major markets due to the global success of Dav Pilkey's Dog Man series and locally published trade channel titles.
−Removed: In Canada, local currency revenues decreased $5.5 million primarily driven by lower school-based channel sales, due to a decline in sponsorship and an on-going teacher labor action in Ontario.
−Removed: In Asia, local currency revenues decreased $1.0 million primarily related to lower revenues from the direct sales channel due in part to the local actions taken to curtail the spread of the coronavirus.
−Removed: Local currency revenues in Australia and New Zealand increased $4.9 million on higher trade, book club and book fair channel revenues, and local currency revenues in the UK increased $1.1 million primarily driven by trade channel sales partially offset by lower book fair channel revenues.
−Removed: Cost of goods sold for the quarter ended February 29, 2020 was $43.1 million , or 54.7% of revenues, compared to $44.1 million , or 53.9% of revenues, in the prior fiscal year quarter.
−Removed: Cost of goods sold as a percentage of revenues increased primarily due to product mix across the major markets resulting in higher fulfillment costs on lower revenues.
−Removed: Cost of goods sold for the nine months ended February 29, 2020 was $141.1 million , or 52.8% of revenues, compared to $142.8 million , or 52.5% of revenues, in the prior fiscal year period.
−Removed: Cost of goods sold as a percentage of revenues was relatively flat with modest increases in Canada, Australia, New Zealand and Asia being offset by favorable product mix in the UK.
−Removed: Other operating expenses for the quarter ended February 29, 2020 were $39.4 million , compared to $40.7 million in the prior fiscal year quarter.
−Removed: In local currencies, Other operating expenses decreased $1.1 million
−Removed: SCHOLASTIC CORPORATION
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)
−Removed: primarily related to lower promotional and marketing costs, partially offset by lower equity method investment income resulting from the completion of the acquisition of a majority interest in MBI and its full consolidation in the financial statements, an increase in employee related expenses and increased bad debt expense in the Asia direct sales channel.
−Removed: Other operating expenses for the nine months ended February 29, 2020 were $121.7 million , compared to $121.1 million in the prior fiscal year period.
−Removed: In local currencies, Other operating expenses increased by $2.3 million primarily related to lower equity method investment income resulting from the completion of the acquisition of a majority interest in MBI and its full consolidation in the financial statements, an increase in employee related expenses and increased bad debt expense in the Asia direct sales channel, partially offset by lower promotional and marketing costs.
−Removed: Segment operating loss for the quarter ended February 29, 2020 was $3.7 million , compared to segment operating loss of $3.0 million in the prior fiscal year quarter.
−Removed: The increase in the operating loss was primarily driven by lower revenues.
−Removed: Segment operating income for the nine months ended February 29, 2020 was $4.3 million , compared to segment operating income of $8.0 million in the prior fiscal year period.
−Removed: The decrease in operating income was primarily due to lower equity method investment income resulting from the completion of the acquisition of a majority interest in MBI and its full consolidation in the financial statements, an increase in employee related expenses and increased bad debt expense in the Asia direct sales channel, partially offset by lower promotional and marketing costs.
−Removed: Unallocated overhead expense for the quarter ended February 29, 2020 increased by $45.2 million to $68.3 million , from $23.1 million in the prior fiscal year quarter.
−Removed: The increase was primarily driven by the $40.0 million write down of inventory as changes were made to the Company's North American purchasing protocols, product offerings and inventory retention policies reducing the anticipated inventory requirements in the Company's school channels.
−Removed: Severance expense, related to cost reduction strategies, increased by $1.0 million to $ 3.2 million , compared to $ 2.2 million in the prior fiscal period.
−Removed: In addition, the Company incurred higher legal settlements and corresponding defense costs related to legacy photo license infringement claims that were resolved in the fiscal quarter ended February 29, 2020 .
−Removed: Unallocated overhead expense for the nine months ended February 29, 2020 increased by $45.9 million to $119.3 million , from $73.4 million in the prior fiscal year period.
−Removed: The increase was primarily driven by the $40.0 million write down of inventory as changes were made to the Company's North American purchasing protocols, product offerings and inventory retention policies reducing the anticipated inventory requirements in the Company's school channels.
−Removed: Severance expense, related to cost reduction strategies, increased by $3.8 million to $ 6.9 million , compared to $ 3.1 million in the prior fiscal period.
−Removed: The increase was also attributable to a $ 1.0 million pretax charge related to a settlement arising from an intellectual property producing agreement, a $1.5 million settlement, without admission of liability, for alleged patent infringement and higher legal settlements and corresponding defense costs related to legacy photo license infringement claims that were resolved in the fiscal period ended February 29, 2020 , partially offset by a $ 4.3 million pretax charge in the prior fiscal period related to a legacy sales tax assessment.
+Added: The increase was partially offset by lower employee-related costs and technology-related spending in an effort to mitigate the impact on operating income of lower sales volumes due to COVID-19, as well as the absence of a $1.5 million settlement, without admission of liability, for an alleged patent infringement that occurred in the prior year fiscal quarter.
The Company’s Children’s Book Publishing and Distribution school-based book club and book fair channels and most of its Education businesses operate on a school-year basis;
3 unchanged sentences
Trade sales can vary throughout the year due to varying release dates of published titles.
−Removed: The Company generally experiences a loss from operations in the first and third quarters of each fiscal year.
−Removed: As the Company's Education segment continues to sell its recently introduced core curriculum offering, Scholastic Literacy, these revenues are likely to be recognized in the first fiscal quarter, when schools and districts are preparing for the upcoming school year.
−Removed: SCHOLASTIC CORPORATION
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)
+Added: While the Company generally experiences a loss from operations in the first and third quarters of each fiscal year, the second quarter of fiscal 2021, ending November 30, 2020, which is traditionally an income quarter, is expected to be negatively impacted by the COVID-19 pandemic.
+Added: Presently, there are many uncertainties concerning the timing of, and any patterns which may emerge from, school re-openings for the new school year, and the nature and continuing magnitude of the negative impact of COVID-19 into and beyond the second quarter of fiscal 2021 will depend on the actual timing and emerging patterns of such re-openings throughout the United States.
Liquidity and Capital Resources
−Removed: Cash provided by operating activities was $44.0 million for the nine months ended February 29, 2020 , compared to cash provided by operating activities of $60.5 million for the prior fiscal year period, representing a decrease in cash provided by operating activities of $16.5 million .
−Removed: The decrease in cash provided was primarily due to lower customer remittances, the acceleration of vendor payments to increase rebates and discounts, higher royalty related payments driven by the higher sales of Scholastic-owned titles and higher income tax payments in the absence of a refund received in the prior fiscal year, partially offset by lower inventory purchases.
−Removed: The Company expects to incur increased usage of cash in the fourth quarter for working capital associated with the planned release of Suzanne Collins' The Ballard of Songbirds and Snakes .
−Removed: Cash used in investing activities was $74.4 million for the nine months ended February 29, 2020 , compared to cash used in investing activities of $103.8 million in the prior fiscal year period, representing a decrease in cash used in investing activities of $29.4 million .
−Removed: The decrease in cash used was primarily due to lower capital spending on the Company's now completed headquarters building modernization project, lower prepublication and production spending and a decrease in spending related to strategic technology initiatives, partially offset by increased capital spending relating to a UK warehouse optimization project.
−Removed: Cash used in financing activities was $39.7 million for the nine months ended February 29, 2020 , compared to cash used in financing activities of $9.9 million for the prior fiscal year period, representing an increase in cash used in financing activities of $29.8 million .
−Removed: The increase in cash used was primarily driven by common stock repurchases by the Company, which were $30.2 million higher in the current fiscal year period compared to the prior fiscal year period and higher net proceeds pursuant to stock option exercises last fiscal year of $5.1 million .
+Added: Cash used by operating activities was $26.0 million for the three months ended August 31, 2020, compared to cash used by operating activities of $97.6 million for the prior fiscal year quarter, representing a decrease in cash used by operating activities of $71.6 million.
+Added: While there were lower revenues in the quarter ended August 31, 2020, the cost-saving measures taken by the Company resulted in a decrease in cash used compared to the prior fiscal year quarter.
+Added: The Company modified inventory procurement and other activities, which usually ramp up in advance of the back-to-school selling season, to adapt to the anticipated impact of the COVID-related delays in school re-openings.
+Added: In addition, there was an overall reduction in general spending as part of the cost-saving programs, such as lower payroll spending due to employee furlough programs, lower spending on non-essential projects, and limitations on expenditures related to travel, events, and conferences.
+Added: The Company intends to continue to limit spending in view of the economic uncertainty brought on by the global pandemic.
+Added: Cash used in investing activities was $8.9 million for the three months ended August 31, 2020, compared to cash used in investing activities of $24.3 million in the prior fiscal year quarter, representing a decrease in cash used in investing activities of $15.4 million.
+Added: The decrease in cash used was primarily driven by the net proceeds from the sale of the Danbury facility of $12.3 million and the absence of the UK land acquisition of $3.3 million which occurred in the prior fiscal year quarter.
+Added: The Company intends to continue to limit investment spending in view of the economic uncertainty brought on by the global pandemic.
+Added: Cash used in financing activities was $5.3 million for the three months ended August 31, 2020, compared to cash used in financing activities of $12.3 million for the prior fiscal year quarter, representing a decrease in cash used in financing activities of $7.0 million.
+Added: The decrease in cash used is primarily related to the suspension of the Company's share buy back program pursuant to which $12.6 million of common stock was reacquired in the prior fiscal year quarter.
+Added: This was partially offset by lower short-term credit facility net borrowings of $7.8 million.
Cash Position
−Removed: The Company’s cash and cash equivalents totaled $263.8 million at February 29, 2020 , $334.1 million at May 31, 2019 and $338.1 million at February 28, 2019 .
+Added: The Company’s cash and cash equivalents totaled $355.5 million at August 31, 2020, $393.8 million at May 31, 2020 and $199.4 million at August 31, 2019.
Cash and cash equivalents held by the Company’s U.S.
−Removed: operations totaled $240.2 million at February 29, 2020 , $308.7 million at May 31, 2019 and $317.4 million at February 28, 2019 .
+Added: operations totaled $323.7 million at August 31, 2020, $364.2 million at May 31, 2020 and $177.5 million at August 31, 2019.
+Added: SCHOLASTIC CORPORATION
+Added: Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)
Due to the seasonal nature of its business as discussed under “Seasonality” above, the Company usually experiences negative cash flows in the June through October time period.
As a result of the Company’s business cycle, borrowings have historically increased during June, July and August, have generally peaked in September or October, and have been at their lowest point in May.
+Added: The Company expects lower cash receipts from its school channel businesses in the second quarter of fiscal 2021 as a result of the effects of COVID-19 on school re-openings, resulting in lower book fairs and book clubs revenues.
+Added: As a precautionary measure in the context of the COVID-19 pandemic, the Company accessed its $375.0 million committed bank credit facility in the fourth quarter of fiscal 2020 by taking a U.S.
+Added: dollar LIBOR-based advance for $200.0 million, although there continues to be no immediate working capital requirement.
The Company’s operating philosophy is to use cash provided by operating activities to create value by paying down debt, reinvesting in existing businesses and, from time to time, making acquisitions that will complement its portfolio of businesses or acquiring other strategic assets, as well as engaging in shareholder enhancement initiatives, such as share repurchases or dividend declarations.
−Removed: The Company has maintained, and expects to maintain for the foreseeable future, sufficient liquidity to fund ongoing operations, including working capital requirements, pension contributions, postretirement benefits, dividends, currently authorized Common share repurchases, debt service, planned capital expenditures and other investments.
−Removed: As of February 29, 2020 , the Company’s primary sources of liquidity consisted of cash and cash equivalents of $263.8 million , cash from operations and the Company has loan agreements in the US and the UK totaling approximately $386.0 million, less borrowings of $6.4 million, resulting in $379.6 million of availability at February 29, 2020.
+Added: The Company’s open-market buy-back program continues to be suspended in the face of COVID-19 uncertainties.
+Added: The Company has maintained, and expects to maintain for the foreseeable future, sufficient liquidity to fund ongoing operations, including working capital requirements, pension contributions, postretirement benefits, debt service, planned capital expenditures and other investments, as well as dividends and share repurchases as appropriate in the context of COVID-19 considerations.
+Added: As of August 31, 2020, the Company’s primary sources of liquidity consisted of cash and cash equivalents of $355.5 million, cash from operations and the Company's loan agreements in the US and the UK totaling $386.4 million, less borrowings of $211.4 million and commitments of $0.4 million, resulting in $174.6 million of availability.
The Company may at any time, but in any event not more than once in any calendar year, request that the aggregate availability of credit under the US Loan Agreement be increased by an amount of $10.0 million or an integral multiple of $10.0 million (but not to exceed $150.0 million).
−Removed: Additionally, the Company has short-term credit facilities of $50.5 million , less current borrowings of $9.7 million and commitments of $4.9 million , resulting in $35.9 million of current availability at February 29, 2020 .
−Removed: SCHOLASTIC CORPORATION
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)
−Removed: The Company believes that these sources of liquidity, including the Company's unencumbered real estate holdings, are sufficient to finance its ongoing operating needs, as well as its financing and investing activities.
−Removed: The Company further believes that its financial resources will allow it to manage the anticipated impact of COVID-19 on the Company's business operations for the foreseeable future which will include materially reduced revenue and profits for the Company, primarily in the school markets.
−Removed: The challenges posed by COVID-19 on the Company's business have evolved rapidly in the past two months and are likely to evolve further.
−Removed: Consequently, the Company will continue to evaluate its financial position in light of future developments, particularly those relating to COVID-19.
−Removed: The Company is party to the US and UK Loan Agreements and certain credit lines with various banks as described in Note 5 of Notes to Condensed Consolidated Financial Statements - unaudited in Item 1, “Financial Statements." There were no outstanding borrowings under the US Loan Agreement as of February 29, 2020 .
+Added: Additionally, the Company has short-term credit facilities of $55.2 million, less current borrowings of $8.5 million and commitments of $3.9 million, resulting in $42.8 million of current availability at August 31, 2020.
+Added: Accordingly, the Company believes these sources of liquidity are sufficient to finance its currently anticipated ongoing operating needs, as well as its financing and investing activities, taking COVID-19 into consideration.
+Added: The Company is party to the US and UK Loan Agreements and certain credit lines with various banks as described in Note 4 of Notes to Condensed Consolidated Financial Statements - unaudited in Item 1, “Financial Statements." The Company had $200.0 million in outstanding borrowings under the US Loan Agreement as of August 31, 2020.
On September 23, 2019, Scholastic Limited UK entered into a term loan agreement to borrow £2.0 million to fund a land purchase in connection with the construction of the new UK facility.
The loan has a maturity date of July 31, 2021.
−Removed: As of February 29, 2020 , the Company had $2.6 million outstanding on the loan.
+Added: As of August 31, 2020, the Company had $2.7 million outstanding on the loan.
On January 24, 2020, Scholastic Limited UK entered into a term loan facility with a borrowing limit of £6.6 million to fund the construction of the new UK facility.
The loan has a maturity date of July 31, 2021.
−Removed: As of February 29, 2020 , the Company had $3.8 million outstanding on the loan.
+Added: As of August 31, 2020, the Company had $8.7 million outstanding on the loan.
New Accounting Pronouncements
Reference is made to Note 1 of Notes to Financial Statements - unaudited in Item 1, “Financial Statements,” for information concerning recent accounting pronouncements since the filing of the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2020.
+Added: SCHOLASTIC CORPORATION
+Added: Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)
Forward Looking Statements
1 unchanged sentence
Additional written and oral forward-looking statements may be made by the Company from time to time in Securities and Exchange Commission ("SEC") filings and otherwise.
−Removed: The Company cautions readers that results or expectations expressed by forward-looking statements, including, without limitation, those relating to the Company’s future business prospects, strategic 2020 Plan and other plans, ecommerce and digital initiatives, new product introductions, strategies, new education standards, goals, revenues, improved efficiencies, general costs, manufacturing costs, medical costs, potential cost savings, merit pay, operating margins, working capital, liquidity, capital needs, the cost and timing of capital projects, interest costs, cash flows and income, are subject to risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, due to factors including those noted in the Annual Report and this Quarterly Report and other risks and factors identified from time to time in the Company’s filings with the SEC.
+Added: The Company cautions readers that results or expectations expressed by forward-looking statements, including, without limitation, those relating to the Company’s future business prospects and strategic plans, ecommerce and digital initiatives, new product introductions, strategies, new education standards, goals, revenues, improved efficiencies, general costs, manufacturing costs, medical costs, potential cost savings, merit pay, operating margins, working capital, liquidity, capital needs, the cost and timing of capital projects, interest costs, cash flows and income, are subject to risks and uncertainties, including, in particular, how the foregoing may be affected by developments in the context of the current COVID-19 pandemic and measures or responses of governmental authorities, business suppliers or customers, which may have an impact on the Company's operations and could cause actual results to differ materially from those indicated in the forward-looking statements, due to factors including those noted in the Annual Report and this Quarterly Report and other risks and factors identified from time to time in the Company’s filings with the SEC.
The Company disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.