McGraw-Hill Ryerson Reports Third Quarter Results
(firmenpresse) - WHITBY, ONTARIO -- (Marketwired) -- 10/30/13 -- 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 season, while expenses are more evenly distributed over the course of the year. In the third quarter, McGraw-Hill Ryerson's revenues generally exceed the first two quarters combined. For the third quarter in 2013, the net income is $6.1 million, compared to net income of $6.2 million in the third quarter of 2012. For the nine months ended September 30, 2013, net income was $3.8 million, consistent with the first nine months of 2012.
Three Months Ended September 30, 2013
Total revenue for the third quarter decreased by 3.2% to $31.0 million in 2013 compared to $32.0 million in 2012.
While industry sales data indicate a decrease in spending year to date, Higher Education Division sales increased by $0.6 million to $22.7 million in the third quarter of 2013 compared to the third quarter of 2012. This increase was mainly the result of strong sales from our digital initiatives.
The School Division sales decreased by $1.7 million to $6.1 million in the third quarter of 2013 from $7.8 million in the corresponding quarter of 2012 as a result of non-recurring product sales tied to final phase of curriculum changes in the Western provinces last year. This is consistent with industry sales data which show a significant decline in the K-12 space.
In the Professional Division, sales increased by $0.2 million in the third quarter of 2013 to $1.5 million as a result of an increase in orders from the campus store and wholesaler channels.
Other income, representing billed freight, copyright licensing, and translation fees, decreased in the third quarter of 2013 by 16.3% to $0.6 million from $0.7 million in the corresponding quarter of 2012. The major contributing factor to the decrease is copyright licensing income.
Income before taxes was $8.2 million compared to $8.4 million in the third quarter last year, mainly the result of the decrease in sales.
Nine Months Ended September 30, 2013
Total revenue for the first nine months decreased by 7.5% to $51.0 million in 2013 compared to $55.1 million in 2012.
While industry sales data indicate a decrease in spending year to date, Higher Education Division sales increased 1.3% to $33.4 million compared to the first nine months of 2012. The slight increase can be attributed to the success of our digital initiatives.
The School Division sales decreased by $4.4 million to $12.3 million in the first nine months of 2013 from $16.8 million in the corresponding period of 2012 as a result of non-recurring product sales tied to final phase of curriculum changes in the Western provinces last year as well as the closing of the Alberta Learning Resource Centre. This is consistent with industry sales data which show a significant decline in the K-12 space.
In the Professional Division, sales remained consistent in the first nine months of 2013 at $3.5 million.
Other income, representing billed freight, copyright licensing, and translation fees, decreased in the first nine months of 2013 to $1.2 million when compared to the corresponding period of 2012. The major contributing factor to the decrease is copyright licensing income.
Rental income from the tenant at the Company's Whitby, Ontario facility fluctuates based on escalation charges.
Cost of goods sold decreased to $18.6 million by the compared to $19.5 million for the same period in 2012. lower sales in the first nine months of the year.
end of the third quarter of 2013 The decrease is consistent with the
Operating expenses decreased for the nine months of 2013 to $20.5 million compared to $23.2 million for the same period in 2012. The decrease is a result of selling, compensation, and professional expense savings.
Year to date income before taxes was $5.3 million, consistent with $5.3 million in the third quarter of last year. The decrease in sales has been offset by a decrease in operating expense and amortization savings.
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 2012 was $77 million. Additional information is available at .
Contacts:
McGraw-Hill Ryerson Limited
Brenda Arseneault
Vice-President and Chief Financial Officer
(905) 430-5223
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Datum: 30.10.2013 - 20:00 Uhr
Sprache: Deutsch
News-ID 311073
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