The McGrawHill Companies Inc. (MHP, Financial) filed Quarterly Report for the period ended 2010-06-30.
The Mcgrawhill Companies Inc. has a market cap of $9.69 billion; its shares were traded at around $30.71 with a P/E ratio of 12.4 and P/S ratio of 1.7. The dividend yield of The Mcgrawhill Companies Inc. stocks is 3.1%. 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, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Pioneer Investments, Bruce Kovner of Caxton Associates, Manning & Napier Advisors, Inc, Richard Aster Jr of Meridian Fund, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC.
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 second quarter of 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 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.
Foreign exchange rates had favorable impacts of $3.3 million on revenue and $2.3 million on operating profit for the quarter, and a favorable impact of $9.1 million on revenue and an immaterial impact on operating loss for the six months.
The environment for 2010 is positive as the total available state new adoption market in 2010 is currently estimated at between $825 million and $875 million, depending on state funding levels, 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.
Foreign exchange rates had an immaterial impact on revenue and a favorable impact of $5.2 million on operating profit for the quarter, and favorable impacts of $11.6 million on revenue and $5.0 million on operating profit for the six months.
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The Mcgrawhill Companies Inc. has a market cap of $9.69 billion; its shares were traded at around $30.71 with a P/E ratio of 12.4 and P/S ratio of 1.7. The dividend yield of The Mcgrawhill Companies Inc. stocks is 3.1%. 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, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Pioneer Investments, Bruce Kovner of Caxton Associates, Manning & Napier Advisors, Inc, Richard Aster Jr of Meridian Fund, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
Foreign exchange rates had favorable impacts of $21.3 million on revenue and $3.3 million on operating results.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 second quarter of 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 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.
Foreign exchange rates had favorable impacts of $3.3 million on revenue and $2.3 million on operating profit for the quarter, and a favorable impact of $9.1 million on revenue and an immaterial impact on operating loss for the six months.
The environment for 2010 is positive as the total available state new adoption market in 2010 is currently estimated at between $825 million and $875 million, depending on state funding levels, 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.
Foreign exchange rates had an immaterial impact on revenue and a favorable impact of $5.2 million on operating profit for the quarter, and favorable impacts of $11.6 million on revenue and $5.0 million on operating profit for the six months.
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