World News: 01:30 GMT Friday 9th November 2018. [School Specialty, Inc via Globe Newswire via SPi World News]
GREENVILLE, Wis., Nov. 08, 2018 (GLOBE NEWSWIRE) -- School Specialty, Inc. (OTCQB: SCOO) (“School Specialty”, “SSI” or the “Company”), home of the 21 Century Safe School™ and leading provider of products and innovative solutions that support integrated learning environments for improved student social, emotional, mental and physical well-being, today announced financial results for its fiscal 2018 third quarter ended September 29, 2018.
Joseph M. Yorio, President and Chief Executive Officer, stated, “Throughout the year, we have focused on generating growth and positioning School Specialty for the future. We continue to make progress, particularly as it relates to the realignment and buildout of our sales team and repositioning our Company as a comprehensive 21 Century Safe School partner. However, we experienced some operational challenges in the third quarter, primarily related to staffing levels to support peak-season needs. From a top-line perspective, we saw modest revenue growth in the quarter and year-to-date revenue is up over 2%. This is very encouraging given the anticipated decline in Curriculum this year due to the lack of statewide science adoptions and fewer large non-adoption opportunities in the market; importantly, we are preparing for what is expected to be very strong Curriculum years ahead. Our efforts to better optimize pricing has contributed to lower gross margins in certain areas, but they have enabled growth and we believe they position us well moving into 2019. We believe we have a real opportunity to improve the mix of products we provide our customers and drive revenue from higher-margin proprietary products.”
Mr. Yorio continued, “Our competitive position continues to improve, as evidenced by strong order momentum heading into the peak season. Challenges in our fulfillment centers slowed our momentum, but we have recovered. Growth trends are strengthening once again, and we expect this momentum to carry through into 2019. We are well positioned to take market share and develop deeper, more valued customer relationships. While our results for 2018 will come in lower than expected, we believe School Specialty is poised for a sharp rebound with strong top-line growth and improved profitability in 2019.”
Within the Distribution segment:
Within the Distribution segment:
Information on the Company’s outlook for 2018 can be found in the investor presentation on page 15, which will be posted shortly in the Investor Relations section of the Company’s website.
School Specialty will be hosting a teleconference and webcast on Friday, November 9, 2018 at 8:00 a.m. ET to discuss its results and outlook. Speaking from management will be Joseph M. Yorio, President and Chief Executive Officer; Ryan M. Bohr, Executive Vice President and Chief Operating Officer; and Kevin Baehler, Executive Vice President and Chief Financial Officer.
Interested parties can also participate on the webcast by visiting the Investor Relations section of School Specialty’s website at . For those who are unable to participate on the live conference call and webcast, a replay will be available approximately one hour after the completion of the call.
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The Company considers Adjusted EBITDA a relevant supplemental measure of its financial performance. The Company believes this non-GAAP financial measure provides useful supplemental information for investors regarding trends and performance of our ongoing operations and is useful for year-over-year comparisons of such results. We also use this non-GAAP financial measure in making operational and financial decisions and in establishing operational goals.
In summary, we believe that providing this non-GAAP financial measure to investors, as a supplement to GAAP financial measures, helps investors to (i) evaluate our operating and financial performance and future prospects, (ii) compare financial results across accounting periods, (iii) better understand the long-term performance of our core business, and (iv) evaluate trends in our business, all consistent with how management evaluates such performance and trends.
Adjusted EBITDA does not represent, and should not be considered, an alternative to net income or operating income as determined by GAAP, and our calculation may not be comparable to similarly titled measures reported by other companies.
Globe Newswire: 01:30 GMT Friday 9th November 2018
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