School Specialty, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Tax Rate Guidance for the Year 2018
August 07, 2018 at 10:30 pm
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School Specialty, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported revenues of $169,272,000 against $160,177,000 for the same period a year ago. Operating income was $4,765,000 against $8,730,000 for the same period a year ago. Income before benefit for income taxes was $1,077,000 against $235,000 for the same period a year ago. Net income was $18,000 or net income per diluted share of $0.00 against $136,000 or net income per diluted share of $0.02 for the same period a year ago. Adjusted EBITDA was $11,534,000 as compared to $14,601,000 a year ago. The provision for income taxes was $1.1 million for the three months ended June 30, 2018, as compared to $0.1 million for the three months ended July 1, 2017.
For the six months, the company reported revenues of $268,559,000 against $257,288,000 for the same period a year ago. Operating loss was $16,563,000 against $4,387,000 for the same period a year ago. Loss before benefit for income taxes was $23,757,000 against $16,932,000 for the same period a year ago. Net loss was $18,660,000 or net income per diluted share of $2.67 against $16,640,000 or net income per diluted share of $2.38 for the same period a year ago. Adjusted LBITDA was $477,000 as compared to Adjusted EBITDA of $7,568,000 a year ago. The benefit from income taxes was $5.1 million for the six months ended June 30, 2018, as compared to $0.3 million for the six months ended July 1, 2017.
The company expected full year effective income tax rate to be in the mid-30% range. This estimate is higher than both the combined statutory federal and state tax rates and prior guidance, due to the impact of some discrete tax adjustments related to a combination of realized built-in losses, interest expense limitations and foreign tax adjustments. The increase in the effective tax rate as compared to the rate for the first 6 months of 2017, which was 1.7%, was related primarily to the reversal of valuation allowances in the fourth quarter of 2017. The company continues to expect full year cash tax rate for 2018 to be significantly lower than effective tax rate. For 2018, the company expected cash tax rate to be in the mid- to upper single digits, a modest increase from previous expectations of low single digits.
SSI Liquidating, Inc., formerly School Specialty, Inc. (SSI), is a distributor of supplies, furniture, technology products, supplemental learning products (instructional solutions) and curriculum solutions, primarily to the education marketplace. It designs, develops and provides educators with its own products and services. Its segments include Distribution and curriculum. Distribution segment offers products that include basic classroom supplies and office products, supplemental learning materials, physical education equipment and classroom technology. Curriculum segment is a PreK-12 curriculum-based publisher of products in the categories of science and reading and literacy. Through its SSI Guardian subsidiary, the Company provides curriculum, training and safety and security products for school, healthcare and corporate workplace. Its SOAR life products are a customized offering for hospitals, long-term care, therapeutic facilities, home care, surgery centers and clinics.
School Specialty, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Tax Rate Guidance for the Year 2018
SCHOOL SPECIALTY, LLC 
