As a result of the transaction, HMH revised its outlook for 2018. The Company’s outlook for its continuing operations is unchanged, and the revision reflects changes resulting from the transaction only. HMH now expects 2018 net sales to be in a range of $1.270 to $1.350 billion and billings to be in the range of $1.285 to $1.365 billion. Content development spend for 2018 is expected to be in the range of $117 to $142 million, with total capital expenditures including non-plate capital expenditures in the range of $174 to $199 million. HMH continues to expect 2018 free cash flow from continuing operations to be negative (but improved from 2017 free cash flow from continuing operations) at the midpoint of the revised billings guidance range. In 2017, giving pro forma effect to the transaction as if it had occurred on January 1, 2017, HMH’s adjusted fixed and variable costs as a percentage of billings were 48% and 39%, respectively. For 2018, the Company expects its adjusted fixed and variable costs as a percentage of billings to be comparable to pro forma 2017 adjusted costs at the midpoint of the revised billings guidance range. Click read more below for additional detail.
4th Quarter and Full-Year Revenue Grew 2% and 7%, Respectively, Impacted by Divestitures
4th Quarter and Full-Year Organic Revenue Increased 11% and 6%, Respectively
Diluted EPS Increased 125% to $2.05 in the 4th Quarter and 89% to $7.94 for the Full Year
Adjusted Diluted EPS Increased 14% to $1.28 in the 4th Quarter and 14% to $5.35 for the Full Year
$1.5 billion Returned to Shareholders in Share Repurchases and Dividends in 2016
S&P Global (NYSE: SPGI) today reported fourth quarter and full-year 2016 results. The Company reported fourth quarter 2016 revenue of $1.40 billion, an increase of 2% compared to the same period last year. On an organic basis, fourth quarter revenue increased 11% with growth in every business segment.
Fourth quarter net income increased 117% to $537 million and diluted earnings per share grew 125% to $2.05. Adjusted net income for the quarter increased 10% to $334 million due to strong revenue growth and successful productivity efforts partially offset by higher taxes. Adjusted diluted earnings per share increased 14% to $1.28 bolstered by a 4% reduction in fully diluted shares outstanding. The adjustments in the fourth quarter were primarily related to net gains from business divestitures partially offset by increased legal reserves and expenses related to the early retirement of the 2017 notes.
For the full year, revenue increased 7% to $5.66 billion. On an organic basis, full-year revenue increased 6%. 2016 net income increased 82% to $2.11 billion and diluted earnings per share increased 89% to $7.94. 2016 adjusted net income increased 10% to $1.42 billion and adjusted diluted earnings per share increased 14% to $5.35.
“I am pleased with the strong financial performance we delivered in our first year as S&P Global and enthusiastic about the changes that we made to strengthen our portfolio as we head into 2017. Successfully integrating SNL into S&P Capital IQ has created a new platform with greater reach and scale. Acquiring PIRA Energy Group, RigData, and Commodity Flow has bolstered Platts’ ability to create world-class commodity supply/demand analytics. The addition of Trucost adds ESG capability to both our Indices and Ratings businesses. And, divesting non-core businesses has left us with a stronger, more cohesive set of businesses,” said Douglas L. Peterson, President and Chief Executive Officer of S&P Global. He added, “Our 2017 enterprise goals are centered around delivering financial performance, continuing to improve operational excellence, enhancing leadership and accountability, and thoughtfully deploying capital. These goals will keep us focused on building upon the outstanding businesses and iconic brands that are S&P Global.”
For the full year, the Company’s operating profit margin improved by 2,340 basis points to 60% due primarily to gains on business divestitures. The adjusted operating profit margin improved by more than 275 basis points for the third year in a row, increasing 300 basis points to 43% in 2016 as the Company achieved solid revenue growth and successfully delivered productivity improvements.
more at: http://investor.spglobal.com/file/Index?KeyFile=37918857