McGraw-Hill Ryerson Reports First Quarter Results
(firmenpresse) - WHITBY, ONTARIO -- (Marketwire) -- 04/27/12 -- McGraw-Hill Ryerson Limited (TSX: MHR) -
Attention: Business/Financial Editors
Summary
The first quarter is historically the quarter with the lowest sales of the fiscal year, as sales are heavily weighted towards the second half of the calendar year leading up to the beginning of the school season. As expenses are more evenly distributed over the course of the year, the Company generally reports a net loss in the first quarter of each year. For the first quarter in 2012, the net loss is $2.7 million, compared to a net loss of $2.2 million in the first quarter of 2011.
Revenue
Total revenue for the first quarter decreased by 8.7% to $7.9 million in 2012 compared to $8.7 million in 2011.
The Higher Education Division sales decreased by $0.2 million in the first quarter of 2012 to $3.9 million. Despite this modest decline, digital and custom products continue to be a growth area for this Division.
The School Division sales decreased 13.7% to $2.7 million in the first quarter of 2012, from $3.1 million in the corresponding quarter of 2011. This decrease was mainly driven by nonrecurring orders placed in 2011 by the Atlantic provinces.
In the Professional Division, sales remained consistent in the first quarter of 2012 when compared to the same period in the prior year at $1.1 million.
Other income, representing billed freight, content licensing, and translation fees, decreased as sales have decreased. Rental income from the tenant at the Company's Whitby, Ontario facility decreased slightly in the first quarter of 2012 compared to the first quarter of 2011 as a result of lower rental escalation charges.
Expenses
Cost of goods sold decreased slightly to $2.7 million from $2.8 million in the first quarter of last year, in line with lower sales.
Operating expenses increased to $8.0 million during the first quarter of 2012 from $7.7 million in the comparative period of the prior year, as a result of a shift in promotional expenses from later in the year to the first quarter.
Amortization expense for pre-publication costs decreased to $0.8 million in 2012 compared to $1.0 million in 2011. Depreciation expense for capital assets remained consistent at $0.2 million.
Finance income remained at $0.1 million in the first quarter of 2012, as in the first quarter of 2011. The finance costs, consisting mainly of banking charges, have increased slightly in the first quarter of 2012.
In the first quarter, the Company reported a foreign exchange gain of $0.1 million which was consistent with the gain reported in the comparative period of 2011. The Company incurs foreign exchange gains and losses throughout the year as a result of the volume of related-party transactions, most of which are denominated in U.S. dollars. The Company continues to employ policies to minimize the impact of these currency fluctuations.
Net Income/Loss
The Company reported a net loss of $2.7 million for the quarter compared to $2.2 million last year. This decline was driven mainly by decreased sales and increased expenses.
Notice to Reader
The attached financial statements have been prepared by management of McGraw-Hill Ryerson Limited. The financial statements for the three month period ended March 31, 2012 and March 31, 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. Revenue in 2011 was $82 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: 27.04.2012 - 14:00 Uhr
Sprache: Deutsch
News-ID 1108194
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