Welcome!

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)                                         
(unaudited)                                                                 
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 http://www.mheducation.ca.


                                                                            
               STATEMENTS OF INCOME AND COMPREHENSIVE INCOME                
    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)
Current                                                                     
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                                                      
Current                                                                     
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
----------------------------------------------------------------------------
Equity                                                                      
Share Capital                                                               
  Authorized 5,000,000 no par value common                                  
   shares                                                                   
  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)                                                   
                                             Accumulated                    
                                                   other                    
                             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 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            

Contacts:
McGraw-Hill Ryerson
Brenda Arseneault
Vice President and Chief Financial Officer
(905) 430-5223
www.mheducation.ca

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
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, provideed economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session also included a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Join Impiger for their featured webinar: ‘Cloud Computing: A Roadmap to Modern Software Delivery’ on November 10, 2016, at 12:00 pm CST. Very few companies have not experienced some impact to their IT delivery due to the evolution of cloud computing. This webinar is not about deciding whether you should entertain moving some or all of your IT to the cloud, but rather, a detailed look under the hood to help IT professionals understand how cloud adoption has evolved and what trends will impact th...
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, contrasted how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He showed how the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He also demoed building immutable pipelines in the cloud ...
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.