Summary
S&P Global Inc. (SPGI), formerly The McGraw-Hill Companies, Inc., reported its first-quarter results for 2010, showing a significant increase in net income and diluted EPS compared to the same period in 2009. Total revenue grew to $1.19 billion, up from $1.15 billion year-over-year, driven primarily by strong performance in the Financial Services segment. This segment benefited from increased transaction revenues due to high-yield corporate bond issuance and growth in credit ratings information products. The McGraw-Hill Education segment showed a narrower operating loss despite a slight revenue increase, attributed to higher education sales and cost-saving initiatives. The Information Media segment experienced a revenue decline, largely due to the divestiture of BusinessWeek, but saw a substantial improvement in operating profit. The company maintained a strong liquidity position, with cash and cash equivalents at $1.21 billion, and demonstrated effective cash flow management, with operating activities providing $102.8 million.
Financial Highlights
55 data points| Revenue | $1.17B |
| Cost of Revenue | $476.20M |
| Gross Profit | $694.80M |
| SG&A Expenses | $488.00M |
| Operating Expenses | $1.00B |
| Operating Income | $190.30M |
| Interest Expense | $22.10M |
| Net Income | $103.00M |
| EPS (Basic) | $0.33 |
| EPS (Diluted) | $0.33 |
| Shares Outstanding (Basic) | 313.40M |
| Shares Outstanding (Diluted) | 316.30M |
Key Highlights
- 1Net income attributable to The McGraw-Hill Companies, Inc. increased by 63.9% to $103.3 million for the three months ended March 31, 2010, compared to $63.0 million in the prior year.
- 2Diluted Earnings Per Share (EPS) rose by 65.0% to $0.33 for the first quarter of 2010, up from $0.20 in the first quarter of 2009.
- 3Total revenue for the first quarter of 2010 was $1.19 billion, a 3.7% increase from $1.15 billion in the same period last year.
- 4The Financial Services segment, operating under the Standard & Poor's brand, saw revenue grow by 9.3% to $667.0 million, with operating profit increasing by 12.3% to $260.0 million.
- 5Cash provided by operating activities increased significantly by 53.2% to $102.8 million in the first quarter of 2010, compared to $67.1 million in the prior year.
- 6The company's dividend declared per common share increased to $0.235 from $0.225 in the prior year.
- 7Despite revenue decline, the Information Media segment's operating profit improved substantially due to cost-saving initiatives and the divestiture of BusinessWeek.