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™, integrated eContent and online homework solutions, and the LearnSmart Advantage™ 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
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER gives detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPOalso offers sp...
Today, we have more data to manage than ever. We also have better algorithms that help us access our data faster. Cloud is the driving force behind many of the data warehouse advancements we have enjoyed in recent years. But what are the best practices for storing data in the cloud for machine learning and data science applications?
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science" is responsible for guiding the technology strategy within Hitachi Vantara for IoT and Analytics. Bill brings a balanced business-technology approach that focuses on business outcomes to drive data, analytics and technology decisions that underpin an organization's digital transformation strategy.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
They say multi-cloud is coming, but organizations are leveraging multiple clouds already. According to a study by 451 Research, only 21% of organizations were using a single cloud. If you've found yourself unprepared for the barrage of cloud services introduced in your organization, you will need to change your approach to engaging with the business and engaging with vendors. Look at technologies that are on the way and work with the internal players involved to have a plan in place when the ine...
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
CI/CD is conceptually straightforward, yet often technically intricate to implement since it requires time and opportunities to develop intimate understanding on not only DevOps processes and operations, but likely product integrations with multiple platforms. This session intends to bridge the gap by offering an intense learning experience while witnessing the processes and operations to build from zero to a simple, yet functional CI/CD pipeline integrated with Jenkins, Github, Docker and Azure...