School Specialty (SCOO) 8-K Quarterly Results of Operations

Exhibit 99.1

Quarterly Results of Operations

Our business is subject to seasonal influences. Our historical revenues and profitability have been dramatically higher in the first two quarters of our fiscal year, primarily due to increased shipments to customers coinciding with the start of each school year. Quarterly results also may be materially affected by the timing of acquisitions, the timing and magnitude of costs related to such acquisitions, variations in our costs for the products sold, the mix of products sold and general economic conditions. Moreover, the operating margins of companies we acquire may differ substantially from our own, which could contribute to further fluctuation in quarterly operating results. Therefore, results for any quarter are not indicative of the results that we may achieve for any subsequent fiscal quarter or for a full fiscal year.

The following table sets forth certain unaudited consolidated quarterly financial data for fiscal years 2007 and 2006 (in thousands, except per share data). We derived this quarterly data from our unaudited consolidated financial statements.

	Fiscal 2007(1)
	First			Second			Third			Fourth			Total
	(13 weeks)			(13 weeks)			(13 weeks)			(13 weeks)			(52 weeks)
Revenues	$	377,071		$	371,225		$	128,816		$	166,040		$	1,043,152
Gross profit		167,911			154,821			50,856			72,049			445,637
Operating income (loss)		69,072			56,931			(20,725	)		(11,480	)		93,798
Earnings (loss) from continuing operations, net of income taxes		37,745			29,644			(16,906	)		(11,258	)		39,225
Earnings (loss) from discontinued operations, net of income taxes		(878	)		(442	)		(1,917	)		(17,942	)		(21,179	)
Net income		36,867			29,202			(18,823	)		(29,200	)		18,046
Basic earnings per share of common stock:
Earnings (loss) from continuing operations	$	1.65		$	1.33		$	(0.79	)	$	(0.53	)	$	1.79
Earnings (loss) from discontinued operations		(0.04	)		(0.02	)		(0.09	)		(0.85	)		(0.96	)
Total	$	1.61		$	1.31		$	(0.88	)	$	(1.38	)	$	0.83
Diluted earnings per share of common stock:
Earnings (loss) from continuing operations	$	1.60		$	1.29		$	(0.79	)	$	(0.53	)	$	1.74
Earnings (loss) from discontinued operations		(0.03	)		(0.01	)		(0.09	)		(0.85	)		(0.94	)
Total	$	1.57		$	1.28		$	(0.88	)	$	(1.38	)	$	0.80
	Fiscal 2006(1)
	First			Second			Third			Fourth			Total
	(13 weeks)			(13 weeks)			(13 weeks)			(13 weeks)			(52 weeks)
Revenues	$	347,335		$	331,733		$	126,863		$	171,371		$	977,302
Gross profit		150,331			137,897			49,458			70,993			408,679
Operating income (loss)		59,431			37,483			(28,617	)		(14,122	)		54,175
Earnings (loss) from continuing operations, net of income taxes		34,494			19,194			(21,789	)		(13,651	)		18,248
Earnings (loss) from discontinued operations, net of income taxes		102			1,374			(735	)		(18,928	)		(18,187	)
Net income		34,596			20,568			(22,524	)		(32,579	)		61
Basic earnings per share of common stock:
Earnings (loss) from continuing operations	$	1.50		$	0.84		$	(0.95	)	$	(0.59	)	$	0.80
Earnings (loss) from discontinued operations		0.01			0.06			(0.03	)		(0.83	)		(0.80	)
Total	$	1.51		$	0.90		$	(0.98	)	$	(1.42	)	$	0.00
Diluted earnings per share of common stock:
Earnings (loss) from continuing operations	$	1.43		$	0.79		$	(0.95	)	$	(0.59	)	$	0.77
Earnings (loss) from discontinued operations		0.01			0.06			(0.03	)		(0.83	)		(0.77	)
Total	$	1.44		$	0.85		$	(0.98	)	$	(1.42	)	$	0.00

(1) On August 31, 2005, we acquired Delta Education, a seasonal business that generated operating and net losses during the third and fourth quarters of fiscal 2006. Fiscal 2007 includes the results of Delta Education for all quarters listed.