Summary
This 8-K filing from The McGraw-Hill Companies, Inc. (now S&P Global Inc.) on January 25, 2006, primarily discloses their fourth-quarter and full-year 2005 financial results. The company reported a 12.8% increase in diluted earnings per share (EPS) from continuing operations for the full year 2005, reaching $2.21. This figure includes the impact of a gain on the sale of Corporate Value Consulting, a restructuring charge, and increased income taxes due to fund repatriation. Of particular interest to investors are the non-GAAP financial metrics highlighted. The company emphasized a 16.4% increase in Financial Services revenue on a non-GAAP basis for Q4 2005, excluding the divested Corporate Value Consulting business. This segmentation provides a clearer view of the ongoing operational performance of their core businesses. The company also provided an optimistic outlook for 2006, anticipating continued earnings growth despite expected challenges in the K-12 education market, while projecting another strong performance from Financial Services with double-digit revenue and operating profit growth.
Key Highlights
- 1Full-year 2005 diluted EPS from continuing operations increased by 12.8% to $2.21.
- 2Fourth-quarter 2005 diluted EPS from continuing operations was $0.50, compared to $0.49 in Q4 2004.
- 3Financial Services revenue grew by 10% to $650.4 million in Q4 2005 on a GAAP basis.
- 4On a non-GAAP basis, excluding the divested Corporate Value Consulting, Financial Services revenue increased by 16.4% in Q4 2005.
- 5The company sold Corporate Value Consulting during 2005.
- 6The McGraw-Hill Companies provided a positive outlook for 2006, expecting earnings growth.
- 7Financial Services is projected to achieve double-digit revenue and operating profit growth in 2006, excluding Corporate Value Consulting's prior year revenue.