Simon & Schuster posted its second consecutive quarter of double-digit revenue gains as total sales for the third period, ended September 30, 2001, rose 10% to $183.6 million, following a 12% sales gain in the second quarter. EBITDA (earnings before interest, taxes, depreciation and amortization) fell 19%, to $22.4 million. Simon & Schuster president Jack Romanos said that, while sales were up, costs associated with transferring its information systems from Pearson to Lockheed Martin caused earnings to fall.
Romanos said that revenues were up across all S&S divisions, with sales in the adult division particularly strong. John Adams continues to do well, and the company received an unexpected boost from Germs. Sales slowed immediately after the September 11 attack, but Romanos said it is his sense that book sales "had a quick recovery." Romanos is optimistic about fourth-quarter prospects, noting that September "was the best month in our history" in terms of books shipped. "We still have quite a few cards to play," Romanos said.
For the first nine months of the year, sales were up 10%, to $454.9 million, although EBITDA fell 2%, to $33.8 million.
