Good day ladies and gentlemen and welcome to Scholastic Reports Fiscal 2015 First Quarter Results conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will follow at that time. If anyone should require operator assistance, please press star then zero on your touchtone telephone. As a reminder, this conference call is being recorded. I would like to introduce your host for today’s conference, Gil Dickoff, Senior Vice President, Treasurer, and Head of Investor Relations. You may begin.

Thank you very much, Nicole, and good morning everyone. Before we begin, I would like to point out that the slides for this presentation are available for simultaneous viewing on our Investor Relations website at investor.scholastic.com. I’d also like to note that this presentation contains certain forward-looking statements which are subject to various risks and uncertainties, including the condition of the children’s book and educational materials markets and acceptance of the company’s products in those markets, and other risks and factors identified from time to time in the company’s filings with the SEC. Actual results can differ materially from those currently anticipated. Our comments today include references to certain non-GAAP financial measures as defined in Regulation G. The reconciliation of these non-GAAP financial measures with the relevant GAAP financial information and other information required by Regulation G is provided in the company’s earnings release, which is posted on the Investor Relations website, again at investor.scholastic.com. Now, I would like to introduce Dick Robinson, the Chairman, CEO and President of Scholastic to begin our presentation.

Thank you, Gil. Good morning and thank you for joining our first quarter fiscal 2015 conference call. For this morning’s prepared remarks, I’m joined by Maureen O’Connell, CFO and CAO. Before I begin with today’s remarks, I would like to extend our warm wishes for those who are celebrating Rosh Hashanah today. The timing of our earnings announcement is tied to our board meetings, and we apologize for any inconvenience by the scheduling conflict. Scholastic reported first quarter revenue of $283.8 million, 3% growth versus last year, and a loss per share of $1.05 versus a loss per share of $0.94 in the prior year period. As you know, we typically record a loss in our fiscal first quarter, which is normally our smallest quarter of the year when most U.S. schools are closed. Education revenues are important to our first quarter and between our two education business segments, we offer a comprehensive diversified portfolio of products that include innovative technology programs, classroom support and other professional services, as well as engaging classroom books and magazines. Overall, our education business is performing well as our offering is aligned with the broader trends in education. We continue to be strongly positioned for reading and math intervention, where schools focus attention and resources and where we lead the market. Although revenues were down in ed tech versus last year, which included the launch of five new products including the significant adoption of Code X by the New York City Board of Education for over 4 million, we saw some encouraging trends in the quarter as follows: stronger math sales in the quarter, which demonstrated that we are continuing to gain traction and build a leadership position in math through our consultative selling model. Our team is also on track to release Math…

Thank you, and now Nicole, we are ready to take our first question.

[Operator instructions] Our first question comes from the line of Drew Crum with Stifel. Your line is now open. Drew Crum – Stifel Nicolaus: Okay, thanks. Good morning everyone. So I have a couple questions on the ed tech business to start. First of all, could you comment on Math 180 in the quarter – was it up year-on-year, and what you’re seeing in terms of penetration for that product at this point in the product’s release relative to some of your other marquee products, like Read 180 and System 44. And then longer term when you think about the expenditures on instruction materials by category, reading has generally outpaced math by a fairly wide margin, but just wanted to get a sense as to how you guys think about the opportunity with mathematics in ed tech for your business, relative to what you’ve experienced with reading. Thanks.

Thank you, Drew. We’ll have Margery turn to both of those questions. We can supplement her comments if needed, but I think she can answer them adequately and well for you.

Drew – hey, it’s Margery. So Math 180 was up in the quarter. We sold it into 48 states, which we think is a great success in 12 months. That was not true with Read 180 – we were not able to penetrate so much, so we’ve been really pleased with the fact that our sales force has embraced math the way they have, and I think it speaks to that strategy that we’ve laid out of Math Solutions, Do the Math—Math Solutions, of course, is our PD company that we bought that’s located in Sausalito. Do the Math was an intervention program for K-5. All this became a ramp for our sales force for the introduction of Math 180. As Dick mentioned in his comments, Course 2 for Math 180 will be coming out towards the end of this fiscal year, and in addition we’re also making Course 1 mobile and tablet-ready, and that will be coming out in the middle of the year. So in terms of the math market, the reading market—you know, we use a rule of thumb here that the reading market is 50 to 60% of the total instructional material market for intervention and that math is another 30%, so that gets you close to 90%. It’s not as big as reading, but there’s enormous demand for math intervention, and we think we’re making really great progress there. We have a lot of customers that started with us last year and upped—increased their position with us this summer, so our momentum is strong. Drew Crum – Stifel Nicolaus: Great, very helpful, Margery. Then just continuing with ed tech, for Maureen, do you still expect ed tech to be up for the entire fiscal 2015? I think you alluded to the fact that you’re expecting improvement over the balance of the year, but does that translate to growth year-on-year both in terms of sales and profits for this segment? Maureen O’Connell: Yes, we are expecting growth throughout the remainder of the year, and it’s really as we have put in place the people in the right regions and the districts. We’ve expanded the sales force, we’ve filled open positions, we have greater analytic capabilities, and we’re building our pipeline. I think Margery can talk about, we just came off a very successful educational sales meeting and we think the sales force is really energized and will result in growth for the remainder of the year.

Yeah, everything Maureen said is how we’re feeling about things. We reorganized the sales force last November, and we’ve had some growing pains for that but we’ve refined it, we’ve strengthened—the biggest thing we’ve done is we’ve really strengthened our management team throughout all levels of management. We’ve totally clarified what each account executive’s role is, and we’ve put best practices in place across the sales organization. So we had a fantastic sales meeting. People left there a couple of weeks ago highly energized, excited about what we’re doing, and—yeah, we’re feeling like we’re doing all the right things. Drew Crum – Stifel Nicolaus: Okay, then just shifting gears to the clubs business, Dick, could you expound on your commentary concerning the early trends you’re seeing with the clubs business as you start a new school year? Maybe some commentary around number of orders or revenue per order, and talk about what you’re doing to tweak the model or are you keeping it consistent with what worked in the fiscal fourth quarter last year.

I’ll ask Judy to answer that, Drew, and I’ll add anything if necessary.

Hi Drew, how are you? Nice to talk to you. So as Dick said, we’re seeing this renewed energy in independent reading, and clubs are perfectly positioned to take advantage and capitalize on that. So as we’ve been saying, we revamped our product strategy, we made it more kid-friendly, we’ve reached out to teachers with a very exciting promotion program and they have been responding to it last spring and this first quarter, as you can see. So our budget predicts that continued growth for this year, and we’re very excited and optimistic that we’re going to be meeting those goals, so it’s all looking very good. Teachers are responding well, and kids and parents, so it’s kind of a really nice resurgence for clubs right now. Drew Crum – Stifel Nicolaus: Okay, last question and I’ll jump back into the queue, you noted that Hunger Games and Harry Potter were a negative on the comp. When does that stop becoming an issue in terms of sales and/or profits for the trade business?

Well, Harry Potter sells well consistently, as does Hunger Games, so both of them continue to be major revenue producers and a staple of our business. Last August in 2013, we launched an amazing new set of paperbacks with new covers that were wonderful and sold extremely well during the year, but the revenue for that was in the August period last year so even though Harry Potter did fine over the summer, it didn’t match that particular jump in the August 2013 period from these great new covers. Hunger Games generally tends to ramp up closer to the movie date, which is in November, as you know, and we’re expecting to see activity there. But I think the main thing here, Drew, is that these are both classics, they’re amazingly well adopted all around the world. People continue to read them. The print sales have continued to be very strong; they are also strong digital performers, so there is nothing—it’s more of a blip in the sales pattern that caused the Harry Potter to be so strong in August 2013. But it continues to be good throughout the year and throughout the years, and will continue to be, and we’re finding new ways to market Harry Potter to new 8-year-olds to get them introduced to the first book in the Harry Potter series, and we have a school-based program to make that happen and that seems to be working well, so we’re confident that both of these series will continue to sell for many years. Drew Crum – Stifel Nicolaus: Got it, okay. Thanks guys.

Thank you, Drew.

Thank you, and I am showing no further questions at this time. I’d like to hand the call over to Mr. Robinson for any closing remarks.

Well, thank you all for your continued support. We are confident that both our educational technology sales will pick up in the balance of the year. As we said, our initial metrics on book clubs and book fairs are strong. We’re confident it’s going to be a good year and we appreciate your continued support. We’ll be back in December to follow up. Thank you so much.