McGraw-Hill Ryerson Reports Third Quarter Results
(firmenpresse) - WHITBY, ONTARIO -- (Marketwire) -- 10/31/12 -- McGraw-Hill Ryerson Limited (TSX: MHR) -
Attention: Business/Financial Editors
Summary
The Company's revenues are typically more heavily weighted towards the second half of the calendar year leading up to the beginning of the school year. In the third quarter, McGraw-Hill Ryerson's revenues generally exceed the first two quarters combined. Net income was $6.2 million in the third quarter compared to $7.8 million in the third quarter of 2011 as a result of lower sales. For the nine months ended September 30, 2012, net income was $3.7 million compared to $6.1 million in the first nine months of 2011.
Three Months Ended September 30, 2012
Total revenue for the third quarter decreased by 11.0% to $31.9 million in 2012 compared to $35.9 million in 2011.
The Higher Education Division sales decreased by $2.3 million in the third quarter of 2012 to $22.2 million compared to the third quarter of 2011. This decrease was mainly the result of a reduction in the ratio of bookstore orders to class enrolments. Digital usage and revenues continue to grow but did not make up for downward pressure on print sales in the quarter.
The School Division sales decreased slightly by $0.3 million to $7.8 million in the third quarter of 2012 from $8.1 million in the corresponding quarter of 2011.
In the Professional Division, sales decreased by $0.5 million in the third quarter of 2012 to $1.3 million. Cost of goods sold decreased for the third quarter to $11.7 million when compared to $13.0 million for the same quarter in 2011. The decrease of 10.1% is consistent with the decrease in sales.
Operating expenses decreased for the third quarter to $7.5 million when compared to $7.9 for the same quarter in 2011. The decrease in the third quarter is a result of a shift in promotional expenses to previous quarters in 2012 when compared to the prior year comparable period.
Income before taxes was $8.4 million compared to $10.9 million in the third quarter last year, mainly the result of the decrease in sales.
Nine Months Ended September 30, 2012
Total revenue for the first nine months decreased by 10.5% to $54.8 million in 2012 compared to $61.3 million in 2011.
The Higher Education Division sales decreased $3.4 million to $33.0 million compared to the first nine months of 2011. This decrease was mostly the result of lower bookstore orders, partially offset by growth in digital revenue.
The School Division sales decreased 8.1% to $16.8 million in the first nine months of 2012 from $18.2 million in the corresponding period of 2011. This decrease was mainly driven by nonrecurring orders placed in 2011 by the Atlantic and Western provinces for math resources, along with decreased spending in Ontario.
In the Professional Division, sales decreased by $0.7 million in the first nine months of 2012 to $3.6 million from $4.2 million in the comparative period of the prior year. This decrease was caused by reduced orders and increased returns from retailers. Sales of print products have migrated to e-book offerings where the channel is still being developed.
Cost of goods sold decreased to $19.2 million, for the nine months of 2012, from $21.3 million for the first nine months of 2011, which is consistent with the sales decline.
Operating expenses decreased slightly to $23.2 million during the first nine months of 2012 compared to $23.3 million in the comparative period of the prior year.
Year to date income before taxes was $5.2 million compared to $8.8 million for the same period in 2011. The variance was mainly a reflection of the decrease in sales.
Notice to Reader
The attached financial statements have been prepared by management of McGraw-Hill Ryerson Limited. The financial statements for the three and nine month period ended September 30, 2012 and September 30, 2011 have not been reviewed by the auditors of McGraw-Hill Ryerson Limited.
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 2011 was $82 million. Additional information is available at .
McGraw-Hill Ryerson Limited
Contacts:
McGraw-Hill Ryerson Limited
Brenda Arseneault
Vice-President and Chief Financial Officer
(905) 430-5223
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Datum: 31.10.2012 - 20:00 Uhr
Sprache: Deutsch
News-ID 198266
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