The McGraw-Hill Companies Reports 11.9% Growth in 2nd Quarter
The Business-to-Business Group's revenue increased by 11.7% to $222.2 million while the Broadcasting Group's revenue declined 6.0% to $23.8 million in the second quarter compared to last year.
Strong growth by Platts' proprietary content in global energy markets and improvement in syndicated studies and consulting services in automotive and non-automotive markets at J.D. Power contributed to the performance of the Business-to-Business Group, which includes the following brands: Aviation Week, J.D. Power and Associates, McGraw-Hill Construction, and Platts. There was continued softness in the construction market in the second quarter.
The Broadcasting Group's results were affected by the decline in political advertising in a non-election year, which offset an increase in retransmission revenue.
Corporate expense: Second quarter expense increased $6.6 million compared to the same period last year, primarily due to increased incentive compensation. For the first half of the year, corporate expense increased $5.0 million, or 6.9%.
Balance sheet: Cash and short-term investments at the end of the second quarter was approximately $1.3 billion, a $223 million decline from December 31, 2010. Share repurchases and acquisitions were primarily responsible for the decline. In the second quarter, the Corporation repurchased 4.4 million shares for $177 million. For the first half of 2011, the Corporation repurchased 7.7 million shares for $300 million at an average price of $38.96.
Comparison of Adjusted Information to U.S. GAAP Information: Adjusted revenue is a non-GAAP financial measure contained in this earnings release that is derived from the Company's continuing operations. This information is provided in order to allow investors to make meaningful comparisons of the Company'soperating performance between periods and to view the Company's business from the same perspective as Company management. Ournon-GAAP measures may be different than similar measures used by other companies. Reconciliations for the differences between non-GAAP measures used in this earnings release and comparable financial measures calculated in accordance with U.S. GAAP are attached as Exhibit 7.