The McGrawHill Companies Inc. (MHP, Financial) filed Quarterly Report for the period ended 2010-09-30.
The Mcgrawhill Companies Inc. has a market cap of $11.55 billion; its shares were traded at around $37.53 with a P/E ratio of 14.8 and P/S ratio of 1.9. The dividend yield of The Mcgrawhill Companies Inc. stocks is 2.5%. The Mcgrawhill Companies Inc. had an annual average earning growth of 8.4% over the past 10 years. GuruFocus rated The Mcgrawhill Companies Inc. the business predictability rank of 4.5-star.MHP is in the portfolios of Michael Price of MFP Investors LLC, Brian Rogers of T Rowe Price Equity Income Fund, John Hussman of Hussman Economtrics Advisors, Inc., Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Pioneer Investments, Mario Gabelli of GAMCO Investors, Jeremy Grantham of GMO LLC, Richard Aster Jr of Meridian Fund, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Steven Cohen of SAC Capital Advisors, Manning & Napier Advisors, Inc.
Foreign exchange rates had a favorable impact of $15.6 million on revenue and an unfavorable impact of $3.8 million on operating profit.
During the second quarter of 2009, we initiated a restructuring plan that included a realignment of select business operations within the MHE segment to further strengthen our position in the market by creating a market focused organization that enhances our ability to address the changing needs of our customers. Additionally, we continued to implement restructuring plans related to a limited number of our business operations. As a result of these plans we recorded a pre-tax restructuring charge of $24.3 million, consisting primarily of employee severance costs related to a workforce reduction of approximately 550 positions. In addition, during the second quarter of 2009, we revised our estimate for previously recorded restructuring charges and reversed approximately $9.1 million. The net pre-tax charge recorded was $15.2 million ($9.7 million after-tax, or $0.03 per diluted share) and was classified as selling and general expenses within the Consolidated Statement of Income.
In May 2009, we sold our Vista Research, Inc. business which was part of our Financial Services segment. During the nine months ended September 30, 2009, we recognized a pre-tax loss of $13.8 million ($8.8 million after-tax, or $0.03 per diluted share), recorded as other (income) loss within the Consolidated Statement of Income. This business was selected for divestiture, as it no longer fit within our strategic plans. This divestiture enabled our Financial Services segment to focus on its core business of providing independent research, ratings, data indices and portfolio services. The impact of this divestiture on comparability of results is immaterial.
The environment in 2010 has been more favorable than last year because of increased sales potential of the available state new adoption market, which is currently estimated at between $825 million and $875 million depending on spending through the fourth quarter, compared to approximately $500 million in 2009. In addition, total U.S. PreK-12 enrollment for 2009-2010 is estimated at nearly 56 million students, up slightly from 2008-2009, according to the National Center for Education Statistics.
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The Mcgrawhill Companies Inc. has a market cap of $11.55 billion; its shares were traded at around $37.53 with a P/E ratio of 14.8 and P/S ratio of 1.9. The dividend yield of The Mcgrawhill Companies Inc. stocks is 2.5%. The Mcgrawhill Companies Inc. had an annual average earning growth of 8.4% over the past 10 years. GuruFocus rated The Mcgrawhill Companies Inc. the business predictability rank of 4.5-star.MHP is in the portfolios of Michael Price of MFP Investors LLC, Brian Rogers of T Rowe Price Equity Income Fund, John Hussman of Hussman Economtrics Advisors, Inc., Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Pioneer Investments, Mario Gabelli of GAMCO Investors, Jeremy Grantham of GMO LLC, Richard Aster Jr of Meridian Fund, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Steven Cohen of SAC Capital Advisors, Manning & Napier Advisors, Inc.
Highlight of Business Operations:
Foreign exchange rates had unfavorable impacts of $5.7 million on revenue and $7.1 million on operating profit. This impact refers to constant currency comparisons and the remeasurement of monetary assets and liabilities. Constant currency impacts are estimated by re-calculating current year results of foreign operations using the average exchange rate from the prior year. Remeasurement impacts are based on the variance between current-year and prior-year foreign exchange rate fluctuations on assets and liabilities denominated in currencies other than the individual business functional currency.Foreign exchange rates had a favorable impact of $15.6 million on revenue and an unfavorable impact of $3.8 million on operating profit.
During the second quarter of 2009, we initiated a restructuring plan that included a realignment of select business operations within the MHE segment to further strengthen our position in the market by creating a market focused organization that enhances our ability to address the changing needs of our customers. Additionally, we continued to implement restructuring plans related to a limited number of our business operations. As a result of these plans we recorded a pre-tax restructuring charge of $24.3 million, consisting primarily of employee severance costs related to a workforce reduction of approximately 550 positions. In addition, during the second quarter of 2009, we revised our estimate for previously recorded restructuring charges and reversed approximately $9.1 million. The net pre-tax charge recorded was $15.2 million ($9.7 million after-tax, or $0.03 per diluted share) and was classified as selling and general expenses within the Consolidated Statement of Income.
In May 2009, we sold our Vista Research, Inc. business which was part of our Financial Services segment. During the nine months ended September 30, 2009, we recognized a pre-tax loss of $13.8 million ($8.8 million after-tax, or $0.03 per diluted share), recorded as other (income) loss within the Consolidated Statement of Income. This business was selected for divestiture, as it no longer fit within our strategic plans. This divestiture enabled our Financial Services segment to focus on its core business of providing independent research, ratings, data indices and portfolio services. The impact of this divestiture on comparability of results is immaterial.
The environment in 2010 has been more favorable than last year because of increased sales potential of the available state new adoption market, which is currently estimated at between $825 million and $875 million depending on spending through the fourth quarter, compared to approximately $500 million in 2009. In addition, total U.S. PreK-12 enrollment for 2009-2010 is estimated at nearly 56 million students, up slightly from 2008-2009, according to the National Center for Education Statistics.
Read the The complete Report
