Scholastic Buys Back Stock with Real Estate Cash

Scholastic has announced plans to repurchase up to $200 million of its stock via a modified Dutch Auction tender offer. This share buyback program is made possible by the company's recent sale of its real-estate assets, which generated significant capital. The tender offer is scheduled to commence on March 23 and conclude on April 20, with an anticipated cash purchase price for shares ranging between $36 and $40. This initiative is part of a new $300 million stock buyback authorization approved by the board of directors. The company's strategic real-estate divestitures, including its New York City headquarters and a Missouri distribution facility, were completed in December, netting approximately $400 million. Scholastic has already repurchased $147 million worth of shares since these transactions closed. The company is now aiming for a long-term net leverage target between two and two-and-a-half times adjusted earnings. In other news, Scholastic anticipates full-year revenue to remain relatively flat year-over-year, citing softness in its Education segment. The company reported a third-quarter profit of $62.5 million, or $2.55 per share, a substantial improvement from the prior year's loss.