Click here to close now.


News Feed Item

McGraw-Hill Ryerson Reports 2013 Annual Results

WHITBY, ONTARIO -- (Marketwired) -- 02/07/14 -- McGraw-Hill Ryerson Limited (TSX:MHR)

Attention: Business/Financial Editors

Three Months to December 31 ($000)                                          
(unaudited)                                            This Year    Year Ago
Sales, less returns                                       18,943 $    18,931
Other                                                      1,098       2,876
Rental                                                       132         182
Total Revenue                                        $    20,173 $    21,989
Net Income                                                 2,023       4,362
Net Income per share                                 $      1.01 $      2.18
Twelve Months to December 31 ($000)                                         
Sales, less returns                                  $    68,204 $    72,258
Other                                                      2,273       4,283
Rental                                                       640         541
Total Revenue                                        $    71,117 $    77,082
Net Income                                                 5,819       8,145
Net Income per share                                 $      2.91 $      4.08

Annual Results

The Company's sales revenue, less returns, decreased by 5.6% in 2013, with sales of $68.2 million, compared to $72.3 million in 2012.

The Higher Education Division reported consistent sales with a slight increase of 0.4% in a market that was lower year over year. Sales were supported by the continued increase in adoption of its digital solutions. Higher Education accelerated its leadership in the technology-enabled evolution of education with the continued growth of McGraw-Hill Connect(TM), integrated eContent and online homework solutions, and the LearnSmart Advantage(TM) suite of adaptive learning solutions. The Division continues to be a leader in the industry in partnership and development initiatives that provide educators and students the opportunity to evaluate and purchase our learning solutions directly, and in the forms they prefer, seamlessly integrated into institutions' learning management systems and devices of their choice.

The School Division's sales decreased by 26.7% compared to the previous year. The decline in revenue is a function of non-repeating 2012 sole source contracts and industry-wide sales declines, partly the result of a slow release of new curricula. Industry sales declined by 12.0% relative to 2012 (based on Canadian Education Resource Council data).

The Professional Division net sales grew by 17.9% in 2013 compared to 2012. The improvement in sales was partly the result of a decrease in returns, along with continued growth in eBook sales and our Access suite of digital products.

Cost of goods sold decreased to $25.4 million in 2013, from $26.8 million in 2012. This is consistent with the decrease in sales.

Operating expenses decreased to $29.4 million, from $30.2 million in 2012. There were reductions in compensation, promotion, and legal expenses that were offset by a restructuring charge of $2.9 million. This restructuring will allow us to manage our operating expenses while improving our support for evolving areas such as digital product development and technical support for our customers.

Amortization expenses for pre-publication costs decreased to $7.5 million in 2013 compared to $8.5 million in 2012. The decrease is partly attributable to delays in the release of curricular revisions that impact the School publishing program.

Finance income decreased by $0.2 million, driven by lower average cash balances in 2013 compared to 2012. Finance costs in 2013, consisting mainly of banking charges, remained consistent with prior year.

Net income decreased to $5.8 million from $8.1 million last year, mainly driven by the sales decrease.

Cash increased to $26.4 million as of December 31, 2013 from $15.1 million in 2012, which is mainly a result of the special dividend payments made during the prior year. Total dividend payments were $2.5 million in 2013 compared to $40.3 million in 2012.

Q4 Results

Most of the Company's sales revenue is seasonal, based on the education industry's school terms for the School and Higher Education divisions. As a result, the Company earns a significant amount of its total sales revenue in the third and fourth quarters of each year.

In the fourth quarter of 2013, total revenue decreased 8.3% compared to the fourth quarter of 2012, as a result of a non-recurring retroactive copyright payment received in the prior year. Higher Education sales decreased to $14.5 million from $15.0 million. School division sales decreased $0.4 million, compared to the fourth quarter of 2012, to $2.2 million. Professional sales increased $0.9 million from $1.3 million in 2012. Net income decreased by $2.3 million in the fourth quarter compared to the corresponding quarter in 2012 mainly driven by the non-recurring copyright payment received in 2012.

The accompanying financial statements should be read in conjunction with the "Notes to Financial Statements" included in McGraw-Hill Ryerson's Annual Report.

In business since 1944, McGraw-Hill Ryerson Limited is a leading Canadian publisher of educational resources, and information products and services for lifelong learning and enjoyment. Total revenue in 2013 was $71 million. Additional information is available at

    McGraw-Hill Ryerson Limited. Incorporated under the laws of Ontario     
(In thousands of dollars-except per share data)                             
Year ended December 31                                      2013       2012 
Revenue                                                            (note 2) 
Sales revenue, less returns                               68,204     72,258 
Other income                                               2,273      4,283 
Rental income                                                640        541 
Total revenue                                             71,117     77,082 
Cost of goods sold (note 11)                              25,353     26,754 
Gross profit                                              45,764     50,328 
Operating expenses (notes 5, 7 and 8)                     29,422     30,208 
Amortization, net of impairment-pre-publication costs                       
 (note 6)                                                  7,520      8,477 
Depreciation-property, plant and equipment (note 12)         785        842 
Operating income                                           8,037     10,801 
Finance income (note 14)                                     152        323 
Finance costs                                                191        178 
Foreign exchange gain (loss)                                 (90)       282 
Income before income taxes                                 7,908     11,228 
Income tax expense (note 9)                                2,089      3,083 
Net income for the year attributable to equity holders                      
 of the Company                                            5,819      8,145 
Other comprehensive income (loss)                                           
Actuarial gain (loss) on employee future benefits, net                      
 of tax (note 7)                                             468       (122)
Total comprehensive income for the year attributable                        
 to equity holders of the Company                          6,287      8,023 
Earnings per share                                                          
Basic and diluted                                      $    2.91  $    4.08 
                      STATEMENTS OF FINANCIAL POSITION                      
(In thousands of dollars)                                                   
                                               December  December January 1,
As at                                          31, 2013  31, 2012       2012
Assets                                                   (note 2)   (note 2)
Cash (note 14)                                   26,370    15,146     41,926
Marketable securities (note 14)                     998       799        716
Trade and other receivables, net (note 14)        8,976    10,463     11,429
Inventories, net (note 11)                        3,312     4,601      6,123
Due from parent and affiliated companies                                    
 (note 10)                                          559     1,783      1,925
Prepaid expenses and other assets                   401       333        280
Income taxes receivable                             293         -          -
Total current assets                             40,909    33,125     62,399
Property, plant and equipment, net (note 12)     12,757    13,423     14,071
Intangible assets (note 6)                       11,118    13,754     16,439
Deferred tax assets, net (note 9)                 1,013       773        469
Total non-current assets                         24,858    27,950     30,979
Total assets                                     65,797    61,075     93,378
Liabilities and Equity                                                      
Trade and other payables                         10,817    10,045     10,849
Realignment payable (note 5)                      1,776       646        273
Income taxes payable                                  -       265        713
Due to parent and affiliated companies (note                                
 10)                                              3,709     4,693      4,784
Total current liabilities                        16,302    15,649     16,619
Employee future benefits (note 7)                 1,894     2,517      2,185
Long-term payable (note 5)                        1,003       350         44
Total liabilities                                19,199    18,516     18,848
Share Capital                                                               
  Authorized 5,000,000 no par value common                                  
  Issued and outstanding 1,996,638 common                                   
   shares                                         1,997     1,997      1,997
Paid in capital                                   1,319     1,081        702
Accumulated other comprehensive income (loss)       346      (122)        71
Retained earnings                                42,936    39,603     71,760
Total equity                                     46,598    42,559     74,530
Total liabilities and equity                     65,797    61,075     93,378
                      STATEMENTS OF CHANGES IN EQUITY                       
(In thousands of dollars)                                                   
                             Share Paid-in comprehensive  Retained          
                           capital capital        income  earnings    Total 
Balance, December 31, 2011   1,997     702             -    71,760   74,459 
Dividends paid ($20.185                                                     
 per share)                      -       -             -   (40,302) (40,302)
Additional paid-in capital                                                  
 (note 8)                        -     379             -         -      379 
Net Income                       -       -             -     8,145    8,145 
Items not to be reclassified to profit or loss in subsequent periods:       
Other comprehensive loss         -       -          (122)        -     (122)
Balance, December 31, 2012   1,997   1,081          (122)   39,603   42,559 
Dividends paid ($1.245 per                                                  
 share)                          -       -             -    (2,486)  (2,486)
Additional paid-in capital                                                  
 (note 8)                        -     238             -         -      238 
Net Income                       -       -             -     5,819    5,819 
Items not to be reclassified to profit or loss in subsequent periods:       
Other comprehensive income       -       -           468         -      468 
Balance, December 31, 2013   1,997   1,319           346    42,936   46,598 
                          STATEMENT OF CASH FLOWS                           
(In thousands of dollars)                                                   
Years ended December 31                                       2013     2012 
Operating Activities                                                        
Net income for the year                                      5,819    8,145 
Add (deduct) non-cash items                                                 
  Amortization, net of impairment-pre-publication costs                     
   (note 6)                                                  7,520    8,477 
  Depreciation-property, plant and equipment (note 12)         785      842 
  Increase (decrease) in employee future benefits             (155)      72 
Deferred taxes (note 9)                                       (240)    (237)
                                                            13,729   17,299 
Net change in non-cash working capital balances related to                  
 operations (note 15)                                        4,973    1,941 
Cash provided by operating activities                       18,702   19,240 
Investing Activities                                                        
Investment in pre-publication costs (note 6)                (4,912)  (5,820)
Investment in property, plant and equipment (note 12)         (119)    (194)
Increase in marketable securities                             (199)     (83)
Cash used in investing activities                           (5,230)  (6,097)
Financing Activities                                                        
Dividends paid to shareholders                              (2,486) (40,302)
Change in paid-in capital (note 8)                             238      379 
Cash used in financing activities                           (2,248) (39,923)
Net increase (decrease) in cash during the year             11,224  (26,780)
Cash, beginning of year                                     15,146   41,926 
Cash end of year                                            26,370   15,146 

McGraw-Hill Ryerson
Brenda Arseneault
Vice President and Chief Financial Officer
(905) 430-5223

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNu...
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem"...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
There are over 120 breakout sessions in all, with Keynotes, General Sessions, and Power Panels adding to three days of incredibly rich presentations and content. Join @ThingsExpo conference chair Roger Strukhoff (@IoT2040), June 7-9, 2016 in New York City, for three days of intense 'Internet of Things' discussion and focus, including Big Data's indespensable role in IoT, Smart Grids and Industrial Internet of Things, Wearables and Consumer IoT, as well as (new) IoT's use in Vertical Markets.
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at, examined how Docker has evolved into a highly effective tool for application del...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...