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SCHOLASTIC CORPORATION ANNOUNCES FIRST QUARTER RESULTS

 SCHOLASTIC CORPORATION ANNOUNCES FIRST QUARTER RESULTS
 NEW YORK, Sept. 18 /PRNewswire/ -- Scholastic Corporation (NASDAQ: SCHL) today reported revenues of $65.0 million for the three months ended Aug. 31, 1992, which was $7.2 million, or 12 percent greater than the comparable quarter last year. The majority of this revenue increase came from U.S. Book Publishing, which improved by $4.0 million, or 12 percent, and international operations, which improved by $3.1 million, or 16 percent.
 The company's first quarter seasonal operating loss was $14.8 million versus $12.9 million in the comparable quarter last year. Scholastic's first quarter is traditionally a loss period due to significantly lower revenues from the company's school-based book club, book fair, and classroom magazine businesses which operate at a significantly lower level during the summer months. The increase in the seasonal operating loss was offset by an interest expense savings of $2.6 million, primarily due to significantly lower debt levels as a result of the debt reduction with the proceeds of the company's February 1992 initial public offering, and lower interest rates. The net loss for the quarter was $9.9 million, or $0.87 per share on 11,357,000 weighted average shares outstanding, versus $10.5 million, or $1.54 per share on 6,789,000 weighted average shares outstanding for the same quarter in the prior fiscal year. The increase in the number of shares outstanding is primarily the result of the shares issued in connection with the company's February 1992 initial public offering.
 "Our first quarter loss was in line with expectations based on the growing size of the company because we experience a higher level of fixed expenses in the first quarter without accompanying revenues," said Richard Robinson, president, chief executive officer, and chairman of the board. "Looking ahead, the company's market for its core U.S. Book Publishing businesses should continue to benefit from increased elementary school enrollments, increased interest in literature-based instruction, and increased parental involvement in education."
 Scholastic, headquartered in New York, is among the leading publishers and distributors of children's books, classroom and professional magazines, and other educational materials. The company also publishes educational computer software and produces children and family-oriented video and television programming. Scholastic operates in the United States, Canada, Australia, the United Kingdom, and New Zealand.
 SCHOLASTIC CORPORATION
 CONSOLIDATED STATEMENT OF OPERATIONS
 FOR THE THREE MONTHS ENDED AUGUST 31, 1992 AND 1991
 (Amounts in thousands except per share data)
 INCREASE/
 (DECREASE)
 8/31/92 8/31/91 $ Percent
 Revenues
 Domestic
 Book Publishing $37,466 $33,497 $3,969 11.8
 Magazine Publishing 3,394 2,452 942 38.4
 Video and Software 1,521 2,346 (825) (35.2)
 International 22,586 19,486 3,100 15.9
 Total Revenues 64,967 57,781 7,186 12.4
 Costs and Expenses 78,481 69,222 9,259 13.4
 Other Operating Costs
 Depreciation 1,183 1,054 129 12.2
 Intangible Amortization 151 359 (208) (57.9)
 Total Other Operating
 Costs 1,334 1,413 (79) (5.6)
 Operating Loss (14,848) (12,854) (1,994) (15.5)
 Net Interest Expense 775 3,364 (2,589) (77.0)
 Earnings Before Taxes (15,623) (16,218) 595 3.7
 Tax Benefit (5,707) (5,739) 32 0.6
 Net Loss ($9,916) ($10,479) $563 5.4
 Weighted Average
 Shares Outstanding 11,357 6,789 -- --
 Net Loss Per Share ($0.87) ($1.54) $0.67 43.5
 -0- 9/18/92
 /CONTACT: Cynthia Harrison of Scholastic, 212-505-3410/
 (SCHL) CO: Scholastic Corporation ST: New York IN: PUB SU: ERN


PS -- NY002 -- 0930 09/18/92 07:01 EDT
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Date:Sep 18, 1992
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