Scholastic Corp (NASDAQ:SCHL) stock rose 6.78% (As on Dec 17, 11:22:38 AM UTC-4, Source: Google Finance) after the company in the second quarter of FY 22 has reported 29% increase in consolidated revenues to $524.2 million in the second quarter versus the prior year period, primarily driven by higher revenues in the U.S. book fairs and education channels. With schools back in session, the demand for in-person book fairs returned and the Company experienced higher than expected revenue per fair. Second quarter operating profit improved 71% to $83.4 million versus the prior year period primarily due to the favorable results in the U.S. book fairs channel and the higher revenues from the education solutions business.

Net cash provided by operating activities was $78.0 million in the second quarter compared to $46.1 million in the prior year period, an increase of $31.9 million. The Company had free cash flow (a non-GAAP liquidity measure defined in the accompanying tables and reconciled to net cash provided) of $75.4 million in the second quarter compared to $30.9 million in the prior year period. As of November 30, 2021, the Company’s cash and cash equivalents exceeded total debt by $286.4 million, compared to $161.8 million a year ago. The higher net cash position and the $44.5 million increase in free cash flow was primarily driven by the increase in revenues resulting in higher cash collections in the quarter compared to the prior period.

Additionally, during the quarter, the Company paid down the remaining $75.0 million in outstanding borrowings under its domestic revolving credit facility. On October 27, 2021, the Company entered into an amended and restated 5-year credit agreement which increased the borrowing capacity to $300 million and provides for an accordion feature to increase the facility by up to an additional $150 million. In September, the Company made a one-time cash payment of $20.0 million related to a previous disclosed legal matter for which the Company had already received $6.6 million in recoveries from its insurance programs during the first fiscal quarter. The Company has distributed $5.1 million in dividends over the course of the second quarter and reacquired $5.0  million of its common stock in fiscal year open market transactions to date. The company has declared a quarterly cash dividend of $0.15 per share on the Company’s Class A and Common Stock for the second quarter of fiscal 2022. The dividend is payable on March 15, 2022 to shareholders of record as of the close of business on January 31, 2022.