McGraw-Hill Ryerson Reports 2011 Annual Results
(firmenpresse) - WHITBY, ONTARIO -- (Marketwire) -- 02/03/12 -- McGraw-Hill Ryerson Limited (TSX: MHR) -
Attention: Business/Financial Editors
Annual Results
The Company's sales revenue, less returns, increased by 0.9% in 2011, with sales of $79.0 million, compared to $78.2 million in 2010.
The Company's Higher Education division experienced a decrease in sales of 2.4% compared to 2010, driven by a decline in sales of imported titles offset by an increase in sales of Canadian titles, and an acceleration of the transition to digitally delivered solutions. Higher Education continued its growth in the technology-enabled evolution with the success of McGraw-Hill Connect™, the next-generation online learning solution. The division continues to be a leader in the industry in partnership and development initiatives that provide educators the opportunity to evaluate our titles electronically and students the ability to purchase them in electronic form.
The School Division's sales increased by 15.4% compared to the previous year. Our Canadian publishing program experienced an increase in sales over the prior year, while our imported products experienced sales decreases. Imports are comprised solely of The McGraw-Hill Companies, Inc. imprints: Glencoe/McGraw-Hill, SRA, and The Wright Group. Digital products are also increasing in importance for this division.
Professional Division sales declined by 12.5% in 2011 compared to 2010. The decline in sales can be attributed to soft sales in the business, medical, and consumer categories. Digital sales out performed expectations in 2011 and will continue to perform well as a result of our product offerings and the market demand shift from print to digital content.
Cost of goods sold decreased to $29.5 million in 2011, from $30.9 million in 2010. Margins on sales improved as a result of a change in product mix compared to last year.
Operating expenses as a percentage of total revenue remained consistent in 2011 at 36.8% of total revenue compared to 2010. There were modest increases in several categories of expenses.
Amortization expenses for pre-publication costs increased to $9.0 million in 2011 compared to $7.9 million in 2010, driven by increases in the Company's pre-publication investment in the Higher Education and School divisions. Depreciation expense for capital assets remained consistent.
Finance income increased by $0.2 million, driven by higher average cash balances in 2011 compared to 2010. Finance costs in 2011, consisting mainly of banking charges, remained consistent in comparison to 2010.
Net income increased to $8.8 million from $7.6 million last year, mainly driven by the increased sales and improvement in gross margin.
Cash and cash equivalents as of December 31, 2011, decreased to $41.9 million from $44.4 million in 2010, mainly as a result of a $10.0 million special dividend paid in 2011. Excluding special dividends, cash and cash equivalents balances increased by $2.5 million in 2011 compared to 2010.
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 addition, in 2012 classes started one week later than the prior year which affects the timing of the placement of orders.
In the fourth quarter of 2011, total revenue decreased 3.5% compared to the prior quarter, caused by decreased sales in the Higher Education and Professional divisions. Higher Education sales decreased to $14.9 million from $15.6 million, mainly a result of a decline in sales of the imported products. School division sales increased $0.5 million, compared to the fourth quarter of 2010, to $3.2 million. Professional sales decreased $0.4 million from $2.4 million in 2010 as a result of the softening in consumer demand this year. Net income declined by $0.6 million in the fourth quarter compared to the corresponding quarter in 2010, mainly driven by the sales results.
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 2011 was $82 million. Additional information is available at .
Contacts:
McGraw-Hill Ryerson Limited
Brenda Arseneault
Vice President and Acting Chief Financial Officer
(905) 430-5223
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Datum: 03.02.2012 - 15:50 Uhr
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