Quarto Group reported results for the first half of 2013, with sales down slightly to $72.2 million (declining $1 million) and operating profit up slightly at $4 million (rising $100,000). CEO Marcus Leaver said in the release, “These results are encouraging overall but much remains to do. They show a portfolio in transition; where we have taken action, the results have begun to show, and more action is to come. Importantly we are clearly bringing down our debt levels and shall continue to do so.” Sales at their US division Quayside led the group, rising almost $2 million at $29 million. […]
Earnings Reports
Houghton Files SEC Papers for $100 Million IPO
Houghton Mifflin Harcourt formally filed a preliminary prospectus with the SEC last Friday, preparing to offer shares to public worth up to $100 million. As reported earlier, Goldman Sachs and Morgan Stanley are the lead underwriters, joined by Citigroup, Credit Suisse and Wells Fargo. None of the proceeds will go to the company however; this offering is all returning some cash to HMH’s backers, and giving them a liquid public market to trade (and value) their shares. Houghton will not formally release second quarter 2013 results until later this month, on August 15 — though they essentially disclosed those results […]
Profits Rebound At Simon & Schuster As Sales Are Flat
Simon & Schuster reported flat sales of $189 million for the second quarter — which represents a bit of forward movement, after sales had declined modestly in each of the previous three quarters. As usual, parent company CBS commented that “continued growth in digital book sales was offset by lower print book sales.” OIBDA was $21 million, “back to normal” in comparison to last year’s $9 million, which reflected some of the settlement of the ebook pricing case, and helped “as the more profitable digital book sales continued to grow.” Total digital revenues (including audio) were 29 percent for the […]
Sales Fall Again At Harlequin, As Higher Digital Royalties Bring Down Profits
Harlequin’s parent company Torstar reported second quarter results Wednesday morning. The book publishing unit had sales of $99.5 million (CA), down by $7.5 million. EBITDA was down $7.6 million in the quarter at $11.5 million, which Torstar attributed to “a combination of lower revenues, higher author royalties for digital sales and less favorable adjustments to prior year returns provisions partially offset by lower costs and savings from restructuring initiative.” The unit also took another $1 million charge — half for staff reductions as part of their ongoing restructuring, and half for “other charges.” As in the past, the 7 percent […]
Barnes & Noble Increases Historical Earnings, Pays Lynch Severance, and Postpones Nook International Rollout
Barnes & Noble filed restated historical financial statements with the SEC after concluding that they had “overstated certain accruals for the periods prior to April 27, 2013, as a result of inadequate controls over the accrual reconciliation process at its distribution centers.” The company made a few other historical restatements as well. The primary effect was to increase their reportable earnings from the past three years–so the 2012 net loss got $4 million smaller; the 2011 loss got $5 million smaller; and the 2010 earnings rose $6 million. With those corrections, the company also filed their delayed annual report with […]
Penguin Sales Rise 16 Percent, But Unit Loses Money On Settlements and Merger
Pearson reported sales for Penguin for the last time, covering the first six months of 2013, right up to the creation of Penguin Random House. The trade publisher had a strong start, with books from Khaled Hosseini and Sylvia Day helping to power a 16 percent overall (and 6 percent underlying) growth in sales, to £513 pounds, up from £441 a year ago (which had been a weak report for Penguin). Adjusted operating profit rose £6 million, to £28 million for the period — but that was more than wiped out by £46 million in “costs relating to the formation […]