SEC Filing Summary: McGraw-Hill, Inc. (10-K)
Business Context and Reporting Period
This Form 10-K covers the fiscal year ended December 31, 1993, for McGraw-Hill, Inc. (Note: The input metadata references S&P Global, but the filing text explicitly identifies the registrant as McGraw-Hill, Inc., which owned the Standard & Poor's Ratings Group at the time). The company operates as a multimedia publishing and information provider serving finance, business, education, law, and other professional markets globally. In 1993, the company realigned its reporting segments, combining Broadcasting, Information and Publication Services, and Tower Group International into a single "Information and Media Services" segment.
Key Financial Metrics
Based on the unaudited quarterly data provided in the filing:
- Total Revenue (1993): $2,195,453,000
- Total Operating Profit (1993): $352,583,000
- Operating Margin (1993): Approximately 16.1%
- Dividends: $2.28 per share for the year ($0.57 per quarter).
- Stockholders: Approximately 5,724 holders as of February 28, 1994.
- Outstanding Shares: 49,485,689 shares as of February 28, 1994.
- Market Value: Aggregate market value of voting stock held by nonaffiliates was $3,412,401,842 as of February 28, 1994.
Note: Specific figures for net income, cash flow, total debt, and liquidity ratios are incorporated by reference from the Annual Report to Shareholders and are not explicitly detailed in the provided text.
Material Changes vs. Prior Period
Comparing 1993 to 1992:
- Revenue Growth: Total revenue increased from $2,050,491,000 in 1992 to $2,195,453,000 in 1993 (approx. 7.1% increase).
- Operating Profit Growth: Total operating profit increased from $344,338,000 in 1992 to $352,583,000 in 1993 (approx. 2.4% increase).
- Segment Performance:
- Financial Services: Revenue grew significantly from $617.6M to $696.9M, with operating profit rising from $168.4M to $200.9M.
- Educational and Professional Publishing: Revenue increased from $567.4M to $667.4M, driven largely by the acquisition of the remaining 50% of Macmillan/McGraw-Hill School Publishing Company in October 1993. Operating profit decreased from $62.7M to $49.4M.
- Information and Media Services: Revenue declined from $865.6M to $831.1M, and operating profit decreased from $113.2M to $102.3M.
Outlook, Risks, and Unusual Items
- Acquisition: The company acquired the remaining 50% interest in the Macmillan/McGraw-Hill School Publishing Company in October 1993, fully consolidating this business unit.
- Legal Proceedings: The company is a defendant in numerous legal proceedings but states that none are expected to have a material adverse effect on financial statements or operations.
- Properties: The company leases 394 locations and owns 25. A major lease covers 950,000 square feet in New York City with renewal options. Plans are in place to consolidate domestic book distribution operations.
- Management Commentary: Detailed Management's Discussion and Analysis (MD&A) and guidance are incorporated by reference from the 1993 Annual Report to Shareholders and are not present in the text of this filing.
Investor Verification Checklist
- Verify the full consolidated financial statements (Balance Sheet, Income Statement, Cash Flow) in the 1993 Annual Report to Shareholders, as specific net income and cash flow figures are not in this text.
- Review the impact of the Macmillan/McGraw-Hill School Publishing acquisition on future earnings and integration costs.
- Confirm the details of the 30-year lease renewal options for the New York City headquarters.
- Check the "Selected Financial Data" table in the Annual Report for a 5-year trend analysis of debt and liquidity.
- Review the definitive proxy statement for details on executive compensation and director ownership.