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WHITBY, ONTARIO -- (Marketwired) -- 04/26/13 -- McGraw-Hill Ryerson (TSX: MHR) -
Attention: Business/Financial Editors
Three Months to March 31 ($000) 2013 2012--------------------------------------------------------(unaudited)Sales revenue, less returns $ 7,387 $ 7, 693Other income 302 217Rental income 182 115 --------- ----------Total Revenue $ 7,871 $ 8,025Net loss $ (1,763) $ (2,666)Net loss per share $ ( 0.88) $ ( 1.33)
Summary
The first quarter is historically the quarter with the lowest sales of the fiscal year, as sales are heavily weighted towards the second half of the calendar year leading up to the beginning of the school season. As expenses are more evenly distributed over the course of the year, the Company generally reports a net loss in the first quarter of each year. For the first quarter in 2013, the net loss is $1.8 million, compared to a net loss of $2.7 million in the first quarter of 2012.
Revenue
Total revenue for the first quarter decreased by 1.9% to $7.9 million in 2013 compared to $8.0 million in 2012.
The Higher Education Division sales increased by 6.5% to $4.2 million in the first quarter of 2013 compared to the first quarter of 2012. This increase was mainly the result of increased digital revenue and reduced returns.
The School Division sales decreased by $0.5 million to $2.2 million in the first quarter of 2013 from $2.7 million in the corresponding quarter of 2012 as a result of non-recurring contract business.
In the Professional Division, sales decreased by 3.5% in the first quarter of 2013 to $1.0 million due to a decrease in the wholesaler market.
Rental and other income, representing billed freight, copyright licensing, translation fees and rental income from the tenant at the Company's Whitby, Ontario facility, increased in the first quarter of 2013 by 45.8% to $0.5 million from $0.3 million in the corresponding quarter of 2012. The major contributing factor to the increase is increased digital commission income as well as increased rental income.
Expenses
Cost of goods sold remained consistent for the first quarter at $2.7 million when compared to the same quarter in 2012.
Operating expenses decreased for the first quarter to $6.4 million compared to $7.9 million for the same quarter in 2012. The decrease is a result of reduced sales and compensation expenses.
Amortization expense for pre-publication costs remained consistent at $0.8 million in the first quarter of 2013 compared to the same quarter in 2012. Depreciation expense for capital assets in the first quarter also remained consistent at $0.2 million.
Finance income and costs, consisting mainly of banking charges, in the first quarter of 2013 remained consistent with the same quarter of 2012.
