McGraw Hill Financial Reports 3rd Quarter Results

Revenue Increased 7% (8% Organic)

Diluted EPS from Continuing Operations Increased 58% to $0.84

Adjusted Diluted EPS from Continuing Operations Increased 13% to $0.80

Adjusted Diluted EPS Guidance Increased to a Range of $3.25 to $3.30

22 Oct, 2013, 07:10 ET from McGraw Hill Financial

NEW YORK, Oct. 22, 2013 /PRNewswire-FirstCall/ -- McGraw Hill Financial, Inc. (NYSE: MHFI) today reported third quarter 2013 results with revenue of $1.19 billion, an increase of 7% compared to the same period last year and 8% excluding the impact of the sale of Aviation Week.  Net income and diluted earnings per share from continuing operations were $235 million and $0.84, respectively. 

Adjusted net income from continuing operations increased 11% to $222 million and adjusted diluted earnings per share from continuing operations increased 13% to $0.80.  The adjustments exclude the impact of the gain on sale of Aviation Week and India Index Services by CRISIL, as well as one-time costs related primarily to the Growth and Value Plan.

"The strength of our portfolio was clearly demonstrated this quarter as both S&P Dow Jones Indices and S&P Capital IQ delivered record quarterly revenue, and Commodities & Commercial Markets reported record adjusted operating margin, driving each of these segments to double-digit adjusted operating profit growth," said Harold McGraw III, Chairman, President, and Chief Executive Officer of McGraw Hill Financial.  "As a leader in providing ratings, benchmarks and analytics, McGraw Hill Financial offers investors a unique opportunity to benefit from the essential intelligence that we provide to our customers.  This world-class portfolio of businesses is the culmination of my tenure as President and CEO of this Company.  As Doug Peterson assumes his new role as President and CEO on November 1, I couldn't be more pleased with his appointment or more proud of the strength of the portfolio we have assembled and the employees who made it happen."

The Outlook:  2013 adjusted earnings per share guidance is increased to a range of $3.25 to $3.30 from $3.15 to $3.25 despite likely market volatility due in part to the Federal debt debate as well as evolving expectations for interest rates. 

Standard & Poor's Ratings Services:  Despite a decrease in global debt issuance, quarterly revenue increased 8% to $540 million compared to the same period last year, driven by strength in bank loan ratings, entity credit ratings, and rating evaluation services.  Adjusted operating profit increased 5% to $227 million with a margin of 42%.  

Transaction revenue grew 6% to $227 million compared to the same period last year as a result of a 73% increase in bank loan ratings.  Issuance, the traditional driver of overall segment revenue growth, decreased during the quarter with a 9% increase in structured issuance more than offset by an 11% decrease in corporate and public issuance. 

Non-transaction revenue increased 9% in the quarter and represented 58% of Standard & Poor's Ratings' total revenue compared to 57% for the same period last year.  Non-transaction growth was driven primarily by entity credit ratings and rating evaluation services. 

Domestic revenue increased 6% and international revenue increased 10%.  Foreign exchange rates had a negligible impact on results. International revenue represented 46% of Standard & Poor's Ratings' total third-quarter revenue.

Tender for CRISIL Shares:  On August 6, the Company completed a voluntary tender offer for additional shares of CRISIL Limited, a publicly traded company in India.  As a result, the Company's ownership in CRISIL increased from 52.8% to 67.8% which represented an incremental investment of $214 million.

S&P Capital IQ:  Revenue increased 3% to $293 million in the third quarter of 2013 compared to the same period last year.  Excluding ongoing portfolio rationalization, organic revenue growth was 5%.  This was the highest revenue quarter for the segment.  Adjusted operating profit returned to growth with an increase of 10% to $59 million

Desktop Solutions, Enterprise Solutions and Ratings IP all delivered mid single-digit revenue growth while Proprietary Research revenue declined mid single-digits. 

S&P Capital IQ's international revenue increased by 8% to $100 million in the third quarter and represented 34% of the segment's total revenue.

Efforts continue to invest in the more promising pieces of the business to create unique product offerings such as the new Portfolio Risk Solution and Events Driven Alerts.  Simultaneously, the segment continued to fine tune its portfolio resulting in the sale of Financial Communications and the exploration of strategic options for FMR Europe.

S&P Dow Jones Indices:  Revenue increased 14% to $124 million in the third quarter of 2013 compared to the same period last year.  Adjusted quarterly operating profit increased 23% to $80 million.

Exchange-traded funds and exchange-traded derivatives were two key drivers of revenue growth.  Assets under management in exchange-traded funds based on the S&P Dow Jones Indices increased 29% to $585 billion at the end of the quarter.  Trading volume of the exchange-traded derivatives SPX (S&P 500 Index) and VIX (CBOE Volatility Index) increased 18% and 26%, respectively.   

Revenue growth was partially mitigated by declines in mutual funds and modest growth in the data subscription business. 

Commodities & Commercial Markets:  Revenue increased 7% to $255 million. Adjusted operating profit increased 24% to $82 million in the third quarter compared to the same period last year.

Platts continued to experience steady revenue growth, delivering a 17% increase to $142 million for the period.  Growth in petroleum product subscriptions continued to be the primary driver of double-digit growth.  In addition, metals & agriculture product subscriptions delivered double-digit revenue growth while petrochemicals and power & gas reported single-digit revenue increases.

Commercial Markets' revenue decreased 4%, however, organic revenue grew 1% excluding the sale of Aviation Week.  J.D. Power delivered mid single-digit growth primarily from its strong auto business in China.

Unallocated Expense:  Unallocated expense includes corporate functions and centrally managed costs.  Adjusted unallocated expense increased by 10% to $52 million in the third quarter primarily due to increased unoccupied office space.

Non-GAAP Adjustments to Continuing Operations:  During the third quarter, approximately $11 million of net pre-tax benefits were excluded from the adjusted results.  These included $27 million of gains on the sale of Aviation Week and the sale of India Index Services by CRISIL.  These gains more than offset restructuring and Growth and Value Plan costs as well as a loss from the sale of Financial Communications. 

Share Repurchase:  During the quarter, the Company repurchased approximately 5.7 million shares.  Year-to-date, the Company has spent $850 million and repurchased approximately 15 million shares.  The Company now has approximately 1.9 million shares remaining under the existing authorization from the Board of Directors and expects to continue share repurchases completing this authorization by year-end.

Balance Sheet and Cash Flow:  Cash and equivalents at the end of the third quarter were $1.6 billion, up from $760 million at the end of 2012.  In the first nine months of the year, free cash flow from continuing operations was $388 million, a decrease of $132 million from the same period in 2012. The decline was impacted by legal settlements and the timing of tax payments.

Comparison of Adjusted Information to U.S. GAAP Information:  Adjusted diluted earnings per share, adjusted diluted earnings per share from continuing operations, adjusted net income, adjusted operating profit, adjusted unallocated expense and free cash flow are non-GAAP financial measures contained in this earnings release that are derived from the Company's continuing operations.  This information is provided in order to allow investors to make meaningful comparisons of the Company's operating performance between periods and to view the Company's business from the same perspective as Company management.  These non-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 Exhibits 5 and 8.

Conference Call/Webcast Details:  The Company's senior management will review the third quarter earnings results on a conference call scheduled for this morning, October 22, 2013, at 8:30 a.m. Eastern Time.  This call is open to all interested parties.  Discussions may include forward-looking information.  Additional information presented on the conference call may be made available on the Company's Investor Relations Website at http://investor.mhfi.com.

The Webcast will be available live and in replay at http://investor.mhfi.com/phoenix.zhtml?p=irol-eventDetails&c=96562&eventID=5031496.  (Please copy and paste URL into Web browser.)

Telephone access is available.  Domestic participants may call (888) 391-6568; international participants may call +1 (415) 228-4733 (long distance charges will apply).  The passcode is "McGraw Hill" and the conference leader is Harold McGraw III.  A recorded telephone replay will be available approximately two hours after the meeting concludes and will remain available until November 22, 2013.  Domestic participants may call (800) 839-1169; international participants may call +1 (203) 369-3036 (long distance charges will apply).  No passcode is required.

The forward-looking statements in this news release involve risks and uncertainties and are subject to change based on various important factors, including worldwide economic, financial, liquidity, political and regulatory conditions; the health of debt (including U.S. residential mortgage-backed securities and collateralized debt obligations) and equity markets, including possible future interest rate changes; the health of the economy; the successful marketing of competitive products; and the effect of competitive products and pricing.

About McGraw Hill Financial:  McGraw Hill Financial is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company's iconic brands include  Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com

Investor Relations:  http://investor.mhfi.com

Get news direct from McGraw Hill Financial via RSS: http://investor.mhfi.com/phoenix.zhtml?c=96562&p=rssSubscription&t=&id=& 

Release issued:  October 22, 2013

Contact:

Investor Relations: Chip Merritt Vice President, Investor Relations (212) 512-4321 (office) chip.merritt@mhfi.com  

News Media: Jason Feuchtwanger Director, Corporate Media Relations (212) 512-3151 (office) jason.feuchtwanger@mhfi.com

 

 

Exhibit 1

McGraw Hill Financial Condensed Consolidated Statements of Income Three and nine months ended September 30, 2013 and 2012 (dollars in millions, except per share data)

(unaudited)

Three Months

Nine Months

2013

2012

%

Change

2013

2012

%

Change

Revenue

$

1,194

$

1,116

7%

$

3,625

$

3,224

12%

Expenses

811

841

(4)%

2,528

2,359

7%

Other income

24

N/M

24

N/M

Operating profit

407

275

48%

1,121

865

30%

Interest expense, net

14

21

(31)%

45

63

(28)%

Income from continuing operations            before taxes on income

393

254

55%

1,076

802

34%

Provision for taxes on income

128

82

56%

364

287

27%

Income from continuing operations

265

172

54%

712

515

38%

Income (loss) from discontinued operations

165

(100)%

(27)

169

N/M

(Loss) gain on sale of discontinued operations

(20)

N/M

592

N/M

Discontinued operations, net of tax

(20)

165

N/M

565

169

N/M

Net income

245

337

(27)%

1,277

684

87%

Less: net income attributable to    noncontrolling interests - continuing

(30)

(21)

45%

(74)

(29)

N/M

Less: net (income) loss attributable to     noncontrolling interests - discontinued

(2)

N/M

1

(2)

N/M

Net income attributable to McGraw Hill Financial, Inc.

$

215

$

314

(31)%

$

1,204

$

652

85%

Amounts attributable to McGraw Hill   Financial, Inc. common shareholders:

Income from continuing operations

$

235

$

151

55%

$

638

$

486

31%

(Loss) income from discontinued operations

(20)

163

N/M

566

167

N/M

Net income

$

215

$

314

(31)%

$

1,204

$

653

84%

Earnings per share attributable to McGraw Hill    Financial, Inc. common shareholders:

Income from continuing operations:

Basic

$

0.86

$

0.54

59%

$

2.31

$

1.74

33%

Diluted

$

0.84

$

0.53

58%

$

2.27

$

1.71

33%

Income from discontinued operations:

Basic

$

(0.07)

$

0.58

N/M

$

2.05

$

0.60

N/M

Diluted

$

(0.07)

$

0.57

N/M

$

2.02

$

0.59

N/M

Net income:

Basic

$

0.79

$

1.13

(30)%

$

4.36

$

2.34

86%

Diluted

$

0.77

$

1.10

(30)%

$

4.29

$

2.29

87%

Weighted-average number of common shares    outstanding:

Basic

272.8

278.7

275.8

278.8

Diluted

278.8

284.6

280.4

284.6

N/M - not meaningful

Note - % change in the tables throughout the exhibits are calculated off of the actual number, not the rounded number presented.

 

 

Exhibit 2

McGraw Hill Financial Condensed Consolidated Balance Sheets September 30, 2013 and December 31, 2012 (dollars in millions)

(unaudited)

September 30,

December 31,

2013

2012

Assets:

Cash and equivalents

$

1,577

$

760

Other current assets

1,251

1,199

Assets held for sale (a)

1,940

     Total current assets

2,828

3,899

Property and equipment, net

336

368

Goodwill and other intangible assets, net

2,429

2,519

Other non-current assets

255

266

     Total assets

$

5,848

$

7,052

Liabilities and Equity:

Short-term debt

$

$

457

Unearned revenue

1,240

1,229

Other current liabilities

1,119

1,317

Liabilities held for sale (a)

664

Long-term debt

799

799

Pension, other postretirement benefits and other non-current liabilities

865

936

     Total liabilities

4,023

5,402

Redeemable noncontrolling interest

810

810

     Total equity

1,015

840

     Total liabilities and equity

$

5,848

$

7,052

(a) Includes McGraw-Hill Education as of December 31, 2012.

 

 

Exhibit 3

McGraw Hill Financial Condensed Consolidated Statements of Cash Flows Nine months ended September 30, 2013 and 2012 (dollars in millions)

(unaudited)

2013

2012

Operating Activities:

Income from continuing operations

$

712

$

515

Adjustments to reconcile income from operations to cash provided by operating    activities from continuing operations:

Depreciation (including amortization of technology projects)

65

69

Amortization of intangibles

38

35

Stock-based compensation

73

63

Other

7

71

Net changes in operating assets and liabilities

(396)

(155)

Cash provided by operating activities from continuing operations

499

598

Investing Activities:

Capital expenditures

(55)

(70)

Acquisitions, net of cash acquired

(156)

Proceeds from dispositions

52

Changes in short-term investments

(15)

27

Cash used for investing activities from continuing operations

(18)

(199)

Financing Activities:

Repayments of short-term debt, net

(457)

Dividends paid to shareholders

(232)

(216)

Dividends and other payments paid to noncontrolling interests

(56)

(8)

Purchase of CRISIL shares

(214)

Repurchase of treasury shares

(850)

(269)

Exercise of stock options and other

209

271

Cash used for financing activities from continuing operations

(1,600)

(222)

Effect of exchange rate changes on cash from continuing operations

(7)

9

Cash (used for) provided by continuing operations

(1,126)

186

Cash provided by discontinued operations

1,943

114

Net change in cash and equivalents

817

300

Cash and equivalents at beginning of period

760

835

Cash and equivalents at end of period

$

1,577

$

1,135

 

 

Exhibit 4

McGraw Hill Financial Operating Results by Segment Three and nine months ended September 30, 2013 and 2012 (dollars in millions)

(unaudited)

Three Months

Nine Months

Revenue

Revenue

2013

2012

% Change

2013

2012

% Change

S&P Ratings

$

540

$

502

8%

$

1,701

$

1,451

17%

S&P Capital IQ

293

284

3%

868

835

4%

S&P Dow Jones Indices

124

109

14%

363

277

31%

Commodities & Commercial Markets

255

239

7%

750

713

5%

Intersegment Elimination

(18)

(18)

(6)%

(57)

(52)

(11)%

     Total revenue

$

1,194

$

1,116

7%

$

3,625

$

3,224

12%

Segment Expenses

Segment Expenses

2013

2012

% Change

2013

2012

% Change

S&P Ratings

$

297

$

293

1%

$

922

$

848

9%

S&P Capital IQ

239

244

(2)%

703

675

4%

S&P Dow Jones Indices

44

48

(7)%

136

129

5%

Commodities & Commercial Markets

164

179

(8)%

514

518

(1)%

Intersegment Elimination

(18)

(18)

(6)%

(57)

(52)

(11)%

     Total segment expenses

$

726

$

746

(3)%

$

2,218

$

2,118

5%

Operating Profit

Operating Profit

2013

2012

% Change

2013

2012

% Change

S&P Ratings

$

243

$

209

16%

$

779

$

603

29%

S&P Capital IQ

54

40

37%

165

160

3%

S&P Dow Jones Indices

80

61

32%

227

148

53%

Commodities & Commercial Markets

91

60

52%

236

195

21%

     Total operating segments

468

370

27%

1,407

1,106

27%

Unallocated expense

(61)

(95)

(36)%

(286)

(241)

19%

     Total operating profit

$

407

$

275

48%

$

1,121

$

865

30%

 

 

Exhibit 5

McGraw Hill Financial Operating Results by Segment - Reported vs. Performance Three and nine months ended September 30, 2013 and 2012 (dollars in millions, except per share amounts)

(unaudited)

2013

2012

% Change

Reported

Non-GAAP Adjustments

Performance

Reported

Non-GAAP Adjustments

Performance

Reported

Performance

Three Months

S&P Ratings

$

243

$

(16)

a

$

227

$

209

$

8

b

$

217

16%

5%

S&P Capital IQ

54

5

a

59

40

14

b

54

37%

10%

S&P Dow Jones Indices

80

80

61

4

b

65

32%

23%

Commodities & Commercial Markets

91

(9)

a

82

60

7

b

67

52%

24%

Segment operating profit

468

(20)

448

370

33

403

27%

11%

Unallocated expense  

(61)

9

c

(52)

(95)

48

c

(47)

(36)%

10%

Operating profit

407

(11)

396

275

81

356

48%

12%

Interest expense, net  

14

14

21

21

(31)%

(31)%

Income before taxes on income

393

(11)

382

254

81

335

55%

14%

Provision for taxes on income

128

6

134

82

30

112

56%

19%

Income from continuing operations

265

(17)

248

172

51

223

54%

12%

Income from discontinued operations

(20)

20

165

(165)

N/M

N/M

Net income

245

3

248

337

(114)

223

(27)%

12%

Less: NCI net income - continuing

(30)

4

(26)

(21)

(1)

(22)

45%

21%

Less: NCI net income - discontinued

(2)

2

N/M

N/M

Net income - continuing

235

(13)

222

151

50

201

55%

11%

Net income - discontinued

(20)

20

163

(163)

N/M

N/M

Net income attributable to MHFI

$

215

$

7

$

222

$

314

$

(113)

$

201

(32)%

12%

Diluted EPS - continuing

$

0.84

$

(0.04)

$

0.80

$

0.53

$

0.17

$

0.71

58%

13%

Diluted EPS - total

$

0.77

$

0.03

$

0.80

$

1.10

$

(0.40)

$

0.71

(30)%

13%

Nine Months

S&P Ratings

$

779

$

(16)

a

$

763

$

603

$

8

b

$

611

29%

25%

S&P Capital IQ

165

5

a

170

160

15

b

175

3%

(3)%

S&P Dow Jones Indices

227

227

148

19

b

167

53%

36%

Commodities & Commercial Markets

236

(9)

a

227

195

6

b

201

21%

13%

Segment operating profit

1,407

(20)

1,387

1,106

48

1,154

27%

20%

Unallocated expense  

(286)

140

c

(146)

(241)

101

c

(140)

19%

4%

Operating profit

1,121

120

1,241

865

149

1,014

30%

22%

Interest expense, net  

45

45

63

63

(28)%

(30)%

Income before taxes on income

1,076

120

1,196

802

149

951

34%

26%

Provision for taxes on income

364

55

419

287

56

343

27%

21%

Income from continuing operations

712

65

777

515

93

608

38%

28%

Income from discontinued operations

565

(565)

169

(169)

N/M

N/M

Net income

1,277

(500)

777

684

(76)

608

87%

28%

Less: NCI net income - continuing

(74)

4

(70)

(29)

(1)

(30)

N/M

N/M

Less: NCI net loss - discontinued

1

(1)

(2)

2

N/M

N/M

Net income - continuing

638

69

707

486

92

578

31%

22%

Net income - discontinued

566

(566)

167

(167)

N/M

N/M

Net income attributable to MHFI

$

1,204

$

(497)

$

707

$

653

$

(75)

$

578

84%

22%

Diluted EPS - continuing

$

2.27

$

0.25

$

2.52

$

1.71

$

0.32

$

2.03

33%

24%

Diluted EPS - total

$

4.29

$

(1.77)

$

2.52

$

2.29

$

(0.26)

$

2.03

87%

24%

N/M - not meaningful

Note - Totals presented may not sum due to rounding

(a)    S&P Ratings includes a gain on the sale of an equity investment held by CRISIL; S&P Capital IQ includes a loss on the sale of Financial Communications and restructuring charges; and Commodities & Commercial Markets includes a gain on the sale of Aviation Week and restructuring charges.

(b)   Includes restructuring charges for the nine months of 2012, and S&P Dow Jones Indices also includes transaction costs associated with our S&P Dow Jones LLC joint venture.

(c)    Includes Growth and Value Plan related costs necessary to enable the separation of MHE and reduce our cost structure, which primarily includes professional fees, restructuring charges and other non-recurring costs. The nine months of 2013 also includes pre-tax legal settlements of approximately $77 million and the nine months of 2012 also includes a charge related to a reduction in our lease commitments.

 

Exhibit 6

McGraw Hill Financial Subscription / Non-Transaction vs. Non-Subscription / Transaction Revenue Three and nine months ended September 30, 2013 and 2012 (dollars in millions)

(unaudited)

Subscription / Non-Transaction

Non-Subscription / Transaction

2013

2012

% Change

2013

2012

% Change

Three Months

S&P Ratings (a)

$

313

$

287

9%

$

227

$

215

6%

S&P Capital IQ (b)

265

257

3%

28

27

5%

S&P Dow Jones Indices (c)

25

24

5%

99

85

17%

Commodities Markets (d)

128

111

15%

14

10

46%

Commercial Markets (e)

36

38

(7)%

77

80

(3)%

Intersegment elimination

(18)

(18)

6%

Total revenue

$

749

$

699

7%

$

445

$

417

7%

Nine Months

S&P Ratings (a)

$

923

$

839

10%

$

778

$

612

27%

S&P Capital IQ (b)

785

755

4%

83

80

4%

S&P Dow Jones Indices (c)

77

61

25%

286

216

33%

Commodities Markets (d)

370

330

12%

39

30

30%

Commercial Markets (e)

111

114

(3)%

230

239

(4)%

Intersegment elimination

(57)

(52)

11%

     Total revenue

$

2,209

$

2,047

8%

$

1,416

$

1,177

20%

(a)    Non-transaction revenue is primarily related to annual fees for frequent issuer programs and surveillance, while transaction revenue is related to ratings of publicly-issued debt, bank loan ratings and corporate credit estimates. Non-transaction revenue also includes an intersegment revenue elimination, which mainly consists of the royalty of $18 million and $54 million for the three and nine months ended September 30, 2013, respectively, and $17 million and $51 million for three and nine months ended September 30, 2012, respectively, charged to S&P Capital IQ for the rights to use and distribute content and data developed by S&P Ratings.

(b)   Subscription revenue is related to credit ratings-related information products, S&P Capital IQ platform, investment research products and other data subscriptions, while non-subscription revenue is related to certain advisory, pricing and analytical services.

(c)    Subscription revenue is related to data subscriptions, which support index fund management, portfolio analytics and research, while non-subscription revenue is related to fees based on assets underlying exchange-traded funds, as well as certain advisory, pricing and analytical services.

(d)   Subscription revenue is related to Platts real-time news, market data, and price assessments, along with other print and digital information products, while non-subscription revenue is related to consulting engagements, events, and transactional activity related to licensing.

(e)    Subscription revenue is related to print and digital information products primarily serving the automotive and construction markets, while non-subscription revenue is related to syndicated and proprietary research studies, advertising, consulting engagements and events.

 

 

Exhibit 7

McGraw Hill Financial Domestic vs. International Revenue Three and nine months ended September 30, 2013 and 2012 (dollars in millions)

(unaudited)

Domestic

International

2013

2012

% Change

2013

2012

% Change

Three Months

S&P Ratings

$

290

$

275

6%

$

250

$

227

10%

S&P Capital IQ

193

191

1%

100

93

8%

S&P Dow Jones Indices

99

85

16%

25

24

6%

Commodities Markets

57

46

24%

85

75

13%

Commercial Markets

82

88

(7)%

31

30

4%

Intersegment elimination

(9)

(9)

11%

(9)

(9)

6%

Total revenue

$

712

$

676

5%

$

482

$

440

10%

Nine Months

S&P Ratings

$

927

$

785

18%

$

774

$

666

16%

S&P Capital IQ

573

559

2%

295

276

7%

S&P Dow Jones Indices

286

214

34%

77

63

21%

Commodities Markets

161

142

14%

248

218

13%

Commercial Markets

256

273

(6)%

85

80

7%

Intersegment elimination

(28)

(26)

8%

(29)

(26)

14%

     Total revenue

$

2,175

$

1,947

12%

$

1,450

$

1,277

14%

 

 

Exhibit 8

McGraw Hill Financial Non-GAAP Financial Information Three and nine months ended September 30, 2013 and 2012

 

(dollars in millions)

Computation of Free Cash Flow

(unaudited)

Nine Months

2013

2012

Cash provided by operating activities

$

499

$

598

Capital expenditures

(55)

(70)

Dividends and other payments paid to noncontrolling interests

(56)

(8)

Free cash flow

$

388

$

520

 

McGraw Hill Financial Organic Revenue

(unaudited)

Three Months

Nine Months

2013

2012

% Change

2013

2012

% Change

Total Revenue

$

1,194

$

1,116

7%

$

3,625

$

3,224

12%

Aviation Week

(2)

(9)

(26)

(34)

Product closures at S&P Capital IQ

(1)

(5)

(6)

(16)

Total Organic Revenue

$

1,191

$

1,102

8%

$

3,593

$

3,174

13%

 

Adjusted S&P Capital IQ Revenue

(unaudited)

Three Months

Nine Months

2013

2012

% Change

2013

2012

% Change

S&P Capital IQ

$

293

$

284

3%

$

868

$

835

4%

Product closures

(1)

(5)

(6)

(16)

Adjusted S&P Capital IQ

$

292

$

279

5%

$

862

$

819

5%

 

Adjusted Commodities & Commercial Markets Revenue

(unaudited)

Three Months

Nine Months

2013

2012

% Change

2013

2012

% Change

Commodities & Commercial Markets

$

255

$

239

7%

$

750

$

713

5%

Aviation Week

(2)

(9)

(26)

(34)

Adjusted Commodities &          Commercial Markets

$

253

$

230

10%

$

724

$

679

7%

Commercial Markets

$

113

$

118

(4)%

$

341

$

353

(3)%

Aviation Week

(2)

(9)

(26)

(34)

Adjusted Commercial Markets

$

111

$

109

1%

$

315

$

319

(1)%

 

Adjusted S&P Dow Jones Indices Net Operating Profit

Three Months

Nine Months

(unaudited)

2013

2012

% Change

2013

2012

% Change

Operating profit

$

80

$

65

23%

$

227

$

167

36%

Operating profit attributable to NCI

22

18

60

18

Net operating profit

$

58

$

47

23%

$

167

$

149

11%

 

 

SOURCE McGraw Hill Financial



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