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HOUGHTON MIFFLIN REPORTS SECOND QUARTER RESULTS

 HOUGHTON MIFFLIN REPORTS SECOND QUARTER RESULTS
 BOSTON, July 14 /PRNewswire/ -- Houghton Mifflin Company (NYSE: HTN)


today reported net sales and net income for the second quarter ended June 30, 1992. Net sales were $125.7 million, a 1.2 percent decrease from 1991's record second quarter when net sales were $127.2 million. Net income was $11.7 million, or 82 cents per share, compared with last year's $12.4 million, or 87 cents per share. The second quarter of 1991 included significant net sales and operating income from statewide purchases of school textbooks while, as reported previously, state adoption opportunities in 1992 are minimal in comparison with those of 1991.
 For six months ended June 30, 1992, net sales were $177.8 million compared with $177.1 million reported for 1991. Because sales to schools and colleges are seasonal, the company normally incurs a loss in the first six months of the year. The company's seasonal loss for the first half of 1992 was $2.3 million, or 16 cents per share, compared with a net loss of $3.2 million, or 22 cents per share, in 1991.
 The educational publishing segment's sales declined 4.7 percent in the second quarter. Sales of School Division publications were approximately $8 million below last year's second quarter due primarily to lower revenue from elementary school reading and social studies textbooks. The aggregate net sales of both programs in the second quarter of 1991, due almost entirely to last year's favorable elementary school adoption opportunities, exceeded net sales in the second quarter of 1992 by more than $23 million. Significantly higher sales of secondary school programs made up a portion of this shortfall. The Riverside Publishing Company continued its exceptional first-quarter performance with double-digit gains in net sales and operating income. The College Division reported higher sales for the quarter.
 The general publishing segment's second-quarter net sales increased by nearly 20 percent. The Trade & Reference Division reported higher net sales with adult trade book sales continuing ahead of last year. The Software Division's sales and operating income were both ahead of 1991's strong performance.
 Nader F. Darehshori, chairman and chief executive officer, said, "The company's net sales results for the first half of 1992 were somewhat better than our business plan even though limited funding and postponed sales opportunities continue in the school market. Three states that had scheduled the adoption of reading or elementary school social studies textbooks for 1992 have delayed purchase to future years. As a result, the company now expects that consolidated net sales for 1992 will approximate those of 1991, while net income is expected to exceed last year's $1.75 per share."
 HOUGHTON MIFFLIN COMPANY AND SUBSIDIARIES
 Unaudited Consolidated Financial Information
 (Dollars in thousands except per share amounts)
 Three months ended Six months ended
 June 30 June 30
 1992 1991 1992 1991
 Net sales $125,670 $127,199 $177,766 $177,116
 Costs and expenses:
 Cost of sales 60,622 57,516 96,051 92,852
 Selling & administrative 45,321 48,019 83,941 87,094
 Total 105,943 105,535 179,992 179,946
 Operating income (loss) 19,727 21,664 (2,226) (2,830)(a)
 Net interest expense (864) (1,316) (1,527) (1,933)
 Income (loss) before
 income taxes 18,863 20,348 (3,753) (4,763)
 Provision (credit) for
 income taxes 7,166 7,935 (1,428) (1,607)
 Net income (loss) $11,697 $12,413 $(2,325) $(3,156)
 Net income (loss) per
 share 82 cents 87 cents (16 cents) (22 cents)
 Avg. shares outstanding
 during each period 14,197,395 14,345,169 14,241,467 14,319,942
 12 months ended
 June 30
 1992 1991
 Net sales $467,451 $432,454
 Costs and expenses:
 Cost of sales 232,129 210,355
 Selling & administrative 190,566 191,077
 Total 422,695 401,432
 Operating income (loss) 44,756(b) 31,022(c)
 Net interest expense (3,300) (3,635)
 Income (loss) before
 income taxes 41,456 27,387
 Provision (credit) for
 income taxes 15,548 11,954
 Net income (loss) $25,908 $15,433
 Net income (loss) per
 share $1.81 $1.08
 Avg. shares outstanding
 during each period 14,277,121 14,291,651
 ---
 Notes:
 (a)-Includes $1.3 million in operating losses (6 cents per share) incurred by the company's Australian subsidiary.
 (b)-Includes operating costs and losses totaling $3.6 million (16 cents per share) related to the sale of the company's Australian business and provisions for U.S. cost reductions and reorganization.
 (c)-Includes a $3.6 million pre-tax charge for the write-down of intangible assets, a pre-tax gain of $1.4 million from the sale of a secondary school list, and $1.5 million in operating losses related to the Australian subsidiary's fiscal-year results. The net effect of these activities reduced earnings per share by 24 cents.
 -0- 7/14/92
 /CONTACT: Stephen O. Jaeger, executive vice president and chief financial officer, 617-725-5017/
 (HTN) CO: Houghton Mifflin Company ST: Massachusetts IN: PUB SU: ERN


TM-SH -- NE007 -- 9033 07/14/92 10:52 EDT
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