The McGraw-Hill Companies Reports 11.9% Growth in 2nd Quarter
The Texas Education Agency, which usually starts processing orders in May, did not accept any orders from local school districts in the second quarter of 2011, waiting for the state legislature to finalize the education budget in a special session, which adjourned on June 29, 2011. Now that appropriations providing $399 million for new instructional programs and $393 million for continuing contracts have been approved for the current year, the Texas Education Agency will begin processing orders on August 8, 2011.
Timing was also a factor in the modest decrease in open territory sales, as some orders anticipated in the second quarter are now scheduled for the third quarter. A major order for the School Education Group's Treasures elementary reading program from Anne Arundel County in Maryland helped to offset the decline in open territory revenue. Partially offsetting ordering delays in the adoption states during the second quarter were higher sales in California, where some districts are catching up with purchasing in the third year of the state's 2008 reading adoption. Most notably, Los Angeles Unified, the nation's second largest school district, purchased the Treasures K-5 reading program in the second quarter for use in the fall.
The testing market softened in the second quarter as some contracts called for reductions in the scope of work during the second quarter compared to the same period last year. Sales of shelf products also declined. In the second quarter, however, a new summative contract was awarded by Qatar and existing contracts were extended by Colorado, Wisconsin, and Georgia. In addition, new contracts were won for LAS Links, a suite of English- and Spanish-language proficiency assessments, in Nevada, Washington State, and Boston.
The McGraw-Hill Higher Education, Professional and International Group's revenue increased by 1.8% to $244.4 million in the second quarter compared to the same period last year. Spurred by increased investments, digital products and digital subscription Web sites againproduced strong double-digit growth in the second quarter in higher education and professional markets.