- Q2 revenue was $1.547 billion, down 1% year-over-year, due to a 12% decline in revenues at McGraw-Hill Education that wasn't compensated for by a 5% increase in revenues at McGraw-Hill Financial.
- Net income from continuing operations increased 2% to $216 million, and diluted EPS increased 11% to $0.76.
- When one-time costs related to the company's Growth and Value Plan (planning for a sell-off or spin-off of McGraw-Hill Education) are subtracted out, adjusted net income from continuing operations increased 15% to $243 million, and adjusted diluted EPS increased 25% to $0.85. (That's where the "record quarter" came from.)
- McGraw-Hill Education's revenue for the quarter declined 12% to $474 million, but operating profit increased by 36% to $57 million, due primarily to restructuring and cost controls.
- Revenues in the Higher Education, Professional and International (HPI) Group declined 2% to $241 million.
- 34% of HPI's revenue in the quarter came from digital products and services; digital subscription platforms grew 33%.
- Revenues in the School Education Group declined 20% to $233 million, and the Group expects an overall 10% reduction in the K-12 market this year, the lowest spending level in over a decade.
Thursday, July 26, 2012
McGraw-Hill has released its Q2 financial results. The company is headlining its record adjusted diluted earnings per share of $0.85, but that's mainly to deflect attention from what's overall a disappointing report: