Scholastic Corporation (NASDAQ:SCHL) Q1 2021 Earnings Conference Call - Final Transcript
Sep 24, 2020 • 04:30 pm ET
Kenneth J. Cleary
in overhead. Looking ahead, we're not relenting in our focus on our goals of preserving profitability and maintain liquidity because we know we face a tough second quarter in our school channels while teachers and students adjust to new schedules and therefore slower to sponsor clubs and host fairs as the school year begins.
When teachers and book fair hosts are ready to order, Scholastic will meet their needs including virtual fairs, better digital tools to engage students and parents and more flexible distribution methods such a ship to home options. Our outlook for our trade and education businesses remain positive and we have robust frontlist of best-selling series and authors scheduled for release over the course of the fiscal year and our digital education programs are steadily gaining traction as we are able to provide schools the blended learning solutions they need for students in the classroom and at home. Additionally, we have broadened the usage of our magazines by offering digital only subscriptions for schools that prefer online learning. As administrators teachers, parents and students become more acclimated to operating in their new learning models, teachers and parents will continue to seek books and other educational resources for their children, which will support learning both in school and at home.
We have new offerings to meet the needs of this new environment by virtual fairs, which provide panoramic walk-throughs of our top selling books and collections and connects seamlessly to our online fair point of sale. Additionally, many schools who are resuming traditional in-person learning are asking for the in-person book fair options that they expect from Scholastic and we have a variety of formats to offer them. As more people resume these favorite choices, we expect improved results for the second half of our fiscal year, but we are not providing financial outlook for this fiscal year. As we look ahead, we remain focused, disciplined and driven to reduce costs while we navigate this disruptive period. We're carefully monitoring the data on a daily basis, especially in the crucial second quarter and we continue to leverage this period to reduce our costs in the near term. Longer term, we believe our efforts to streamline processes and implement a more flexible operating platform will improve operating leverage and lower our relative cost base, which will provide long-term benefits to our company and customers.
And with that, I will hand the call back to Gil for the Q&A session.
Thanks so much Ken. Liz, if you would, we are now ready to open the lines for questions.