MCGRAW HILL FINANCIAL INC NEW YORK, July 29, 2014 /PRNewswire-FirstCall/ -- McGraw Hill Financial, Inc. (NYSE: MHFI) today reported second quarter 2014 results with revenue of $1.35 billion, an increase of 8% compared to the same period last year. Taking into consideration the sale of Aviation Week as well as the sale of Financial Communications and the shutdown of several small products within S&P Capital IQ, organic revenue increased 9%. Net income and diluted earnings per share from continuing operations were $292 million and $1.06, respectively.
Adjusted net income from continuing operations increased 14% to $292 million and adjusted diluted earnings per share from continuing operations increased 15% to $1.06. The adjustments were in the second quarter of 2013 and included costs necessary to establish the separation of McGraw-Hill Education. There were no adjustments in the second quarter of 2014.
"Revenue growth was led by Standard & Poor's Ratings Services and J.D. Power, each with double-digit growth. Platts, S&P Capital IQ, and S&P Dow Jones Indices all contributed high-single digit growth. The strong performance across all of our business units exemplifies what an outstanding portfolio of assets McGraw Hill Financial possesses," said Douglas L. Peterson, President and Chief Executive Officer of McGraw Hill Financial. "In addition, the Company delivered adjusted diluted EPS growth of 15% despite facing the most difficult EPS comparison of the year in the second quarter."
The Outlook: Based upon the strong results in the quarter, and its view of the second half of the year, the Company is increasing its adjusted earnings per share guidance by $0.05 to a range of $3.80 to $3.90.
Standard & Poor's Ratings Services: Quarterly revenue increased 11% to $664 million compared to the same period last year. Revenue growth was driven by increased market demand for the Company's ratings as revenue from both global bond issuance and bank loan ratings experienced double-digit growth.
Transaction revenue increased 14% to $327 million compared to the same period last year. This was primarily driven by strong investor demand for high-yield debt as well as increased debt issuance by financial service firms bolstering their capital reserves to meet regulatory requirements. Bank loan ratings revenue continued to show strength with a 19% increase.
Non-transaction revenue increased 8% in the quarter and represented 51% of Standard & Poor's Ratings Services' total revenue compared to 52% for the same period last year. Non-transaction growth was driven primarily by annual fees as Standard & Poor's Ratings continues to expand its client coverage, as well as Rating Evaluation Service revenue.
Domestic revenue increased 10% and international revenue increased 12%. Foreign exchange rates had a negligible impact on results. International revenue represented 46% of Standard & Poor's Ratings Services' total second-quarter revenue.
Expenses in the quarter increased 8% primarily due to increased legal expenses as key court cases progressed and increased compensation expense.
Operating profit increased 15% to $308 million with an operating profit margin of 46%.
S&P Capital IQ: Revenue increased 7% to $307 million in the second quarter of 2014 compared to the same period last year. Excluding previous portfolio rationalization, organic revenue growth was 8%. Operating profit increased 10% to $54 million.
The two largest pieces of the business unit -- S&P Capital IQ Desktop & Enterprise Solutions and S&P Credit Solutions -- contributed the majority of the growth.
S&P Capital IQ's international revenue increased 9% to $106 million in the second quarter and represented 35% of the business unit's total revenue.
Product rollouts continue with a wave of new desktop capabilities that are all targeted to be launched before year-end. After introducing Credit Analytics in February, the Company released PresCenter in July. PresCenter is a productivity tool that embeds Microsoft Office® products within the S&P Capital IQ desktop platform to allow seamless links between data and presentations. Its "quick keys" feature can be customized and its "autocheck" function ensures compliance with corporate design guidelines. PresCenter streamlines pitchbook creation and ensures consistency with changes in source data.
S&P Dow Jones Indices: Revenue increased 8% to $133 million in the second quarter of 2014 compared to the same period last year. Expenses increased 10% driven by compensation and the timing of marketing costs. Quarterly operating profit increased 6% to $82 million. Quarterly operating profit attributable to the Company increased 5% to $60 million.
Revenue increased primarily due to growth in exchange-traded funds and mutual fund licensing revenue, offset somewhat by a decline in derivative trading licensing revenue due to subdued trading volumes. Assets under management in exchange-traded funds based on the S&P Dow Jones Indices increased 32% to a record $719 billion at the end of the quarter. Trading volume of the exchange-traded derivatives generally declined; notably, the SPX (S&P 500 Index) and E-mini S&P 500 futures decreased 13% and 26%, respectively.
Commodities & Commercial Markets: Revenue increased 1% to $263 million. Operating profit was unchanged at $83 million in the second quarter compared to the same period last year. Excluding the impact of the sale of Aviation Week in 2013, revenue increased 8% and operating profit increased approximately 6%.
Platts continued to experience steady revenue growth, delivering a 9% increase to $149 million for the period. During the quarter, Platts' price assessment and market data subscriptions continued to deliver double-digit revenue growth while Global Trading Services licensing revenue decreased due to weaker trading volumes for natural gas and petroleum.
Commercial Markets' revenue decreased 7%; however, organic revenue grew 7% excluding the sale of Aviation Week as growth was led by J.D. Power which delivered double-digit gains.
The Company continues to evaluate strategic alternatives for McGraw Hill Construction.
Unallocated Expense: Unallocated expense includes corporate center functions and certain specific non-performance related items. Adjusted unallocated expense increased by 31% to $41 million in the second quarter due to a non-cash impairment charge associated with the pending sale of the corporate aircraft as well as a one-time expense associated with the sale of the Company's data center in East Windsor, New Jersey.
Share Repurchase: During the quarter, the Company repurchased approximately 2.2 million shares bringing the year-to-date total to 4.4 million shares. The Company now has approximately 45.6 million shares remaining under the existing authorization from the Board of Directors.
Balance Sheet and Cash Flow: Cash and equivalents at the end of the second quarter were $1.6 billion, up slightly from the end of 2013. In the first six months of the year, free cash flow from continuing operations was $392 million, an increase of $247 million from the same period in 2013. The increase was impacted by 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 second quarter earnings results on a conference call scheduled for this morning, July 29, 2014, at 8:30 a.m. EDT. 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.mcgraw-hill.com/phoenix.zhtml?c=96562&p=irol-EventDetails&EventId=5164936. (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 "MHFI" and the conference leader is Douglas Peterson. A recorded telephone replay will be available approximately two hours after the meeting concludes and will remain available until August 29, 2014. Domestic participants may call (866) 501-2973; international participants may call +1 (203) 369-1832 (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 29 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=&
* * *
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 six months ended June 30, 2014 and 2013
(dollars in millions, except per share data)
(unaudited) Three Months Six Months
------------ ----------
2014 2013 % 2014 2013 %
Change Change
------ ------
Revenue $1,346 $1,250 8% $2,581 $2,431 6%
Expenses 851 814 5% 1,656 1,717 (4)%
Other loss 9 - N/M 9 - N/M
--- --- --- ---
Operating profit (a) 486 436 12% 916 714 28%
Interest expense, net 14 16 (10)% 28 31 (10)%
--- --- --- ---
Income from continuing operations 472 420 12% 888 683 30%
before taxes on income
Provision for taxes on income 156 147 6% 298 236 26%
--- --- --- ---
Income from continuing operations 316 273 16% 590 447 32%
Income (loss) from discontinued operations - 4 N/M - (27) N/M
Gain on sale of discontinued operations - - N/M - 612 N/M
--- --- --- ---
Discontinued operations, net of tax - 4 N/M - 585 N/M
--- --- --- ---
Net income 316 277 14% 590 1,032 (43)%
Less: net income attributable to noncontrolling (24) (23) 3% (50) (44) 14%
interests - continuing
Less: net loss attributable to noncontrolling - - N/M - 1 N/M
interests - discontinued
Net income attributable to McGraw Hill $292 $254 15% $540 $989 (45)%
Financial, Inc.
Amounts attributable to McGraw Hill
Financial, Inc. common shareholders:
Income from continuing operations $292 $250 17% $540 $403 34%
Income from discontinued operations - 4 N/M - 586 N/M
--- ---
Net income $292 $254 15% $540 $989 (45)%
==== ==== ==== ====
Earnings per share attributable to
McGraw Hill Financial, Inc. common
shareholders:
Income from continuing operations:
Basic $1.08 $0.91 18% $1.99 $1.45 37%
Diluted $1.06 $0.90 18% $1.95 $1.43 36%
Income from discontinued operations:
Basic $ - $0.01 N/M $ - $2.11 N/M
Diluted $ - $0.01 N/M $ - $2.08 N/M
Net income:
Basic $1.08 $0.93 16% $1.99 $3.57 (44)%
Diluted $1.06 $0.91 16% $1.95 $3.52 (44)%
Weighted-average number of common shares
outstanding:
Basic 271.5 274.3 271.7 277.4
Diluted 276.1 278.3 276.7 281.3
N/M - not meaningful
Note -% change in the tables
throughout the exhibits are calculated
off of the actual number, not the
rounded number presented.
(a) The three and six months ended
June 30, 2013 include costs
necessary to enable the
separation of MHE and reduce our
cost structure of $10 million and
$54 million, respectively. The
six months ended June 30, 2013
also includes pre-tax legal
settlements of approximately $77
million.
Exhibit 2
McGraw Hill Financial
Condensed Consolidated Balance Sheets
June 30, 2014 and December 31, 2013
(dollars in millions)
(unaudited) June 30, December 31,
2014 2013
---- ----
Assets:
Cash and equivalents $1,617 $1,542
Other current assets 1,376 1,394
Total current assets 2,993 2,936
----- -----
Property and equipment, net 209 249
Goodwill and other intangible assets, net 2,440 2,445
Asset for pension benefits 230 261
Other non-current assets 185 170
--- ---
Total assets $6,057 $6,061
====== ======
Liabilities and Equity:
Unearned revenue $1,322 $1,309
Other current liabilities 930 1,063
Long-term debt 799 799
Pension, other postretirement benefits and other non-current liabilities 707 736
Total liabilities 3,758 3,907
----- -----
Redeemable noncontrolling interest 810 810
Total equity 1,489 1,344
----- -----
Total liabilities and equity $6,057 $6,061
====== ======
Exhibit 3
McGraw Hill Financial
Condensed Consolidated Statements of Cash Flows
Six months ended June 30, 2014 and 2013
(dollars in millions)
(unaudited) 2014 2013
---- ----
Operating Activities:
Income from continuing operations $590 $447
Adjustments to reconcile income from operations to cash provided by operating
activities from continuing operations:
Depreciation 42 45
Amortization of intangibles 24 25
Stock-based compensation 48 47
Other 22 27
Net changes in operating assets and liabilities (267) (365)
Cash provided by operating activities from continuing operations 459 226
--- ---
Investing Activities:
Capital expenditures (37) (43)
Acquisitions, net of cash acquired (16) -
Other 1 -
Cash used for investing activities from continuing operations (52) (43)
--- ---
Financing Activities:
Repayments of short-term debt, net - (457)
Dividends paid to shareholders (163) (156)
Dividends and other payments paid to noncontrolling interests (30) (38)
Repurchase of treasury shares (362) (500)
Exercise of stock options, excess tax benefits from share-based payments and other 204 107
Cash used for financing activities from continuing operations (351) (1,044)
---- ------
Effect of exchange rate changes on cash from continuing operations 19 (36)
Cash provided by (used for) continuing operations 75 (897)
Cash provided by discontinued operations - 2,037
--- -----
Net change in cash and equivalents 75 1,140
Cash and equivalents at beginning of period 1,542 760
----- ---
Cash and equivalents at end of period $1,617 $1,900
====== ======
Exhibit 4
McGraw Hill Financial
Operating Results
Three and six months ended June 30, 2014 and 2013
(dollars in millions)
(unaudited) Three Months Six Months
------------ ----------
Revenue Revenue
------- -------
2014 2013 % Change 2014 2013 % Change
---- ---- -------- ---- ---- --------
S&P Ratings Services $664 $599 11% $1,233 $1,161 6%
S&P Capital IQ 307 287 7% 608 575 6%
S&P Dow Jones Indices 133 123 8% 269 238 13%
Commodities & Commercial Markets 263 259 1% 514 496 4%
Intersegment Elimination (21) (18) (10)% (43) (39) (11)%
--- --- --- ---
Total revenue $1,346 $1,250 8% $2,581 $2,431 6%
====== ====== ====== ======
Expenses Expenses
-------- --------
2014 2013 % Change 2014 2013 % Change
---- ---- -------- ---- ---- --------
S&P Ratings Services $356 $331 8% $685 $644 7%
S&P Capital IQ 253 238 6% 501 476 5%
S&P Dow Jones Indices 51 46 10% 95 97 (2)%
Commodities & Commercial Markets 180 176 2% 355 353 1%
Intersegment Elimination (21) (18) (10)% (43) (39) (11)%
Total expenses $819 $773 6% $1,593 $1,531 4%
==== ==== ====== ======
Operating Profit Operating Profit
---------------- ----------------
2014 2013 % Change 2014 2013 % Change
---- ---- -------- ---- --------
S&P Ratings Services $308 $268 15% $548 $517 6%
S&P Capital IQ 54 49 10% 107 99 8%
S&P Dow Jones Indices 82 77 6% 174 141 23%
Commodities & Commercial Markets 83 83 -% 159 143 12%
Total operating segments 527 477 10% 988 900 10%
Unallocated expense (a) (41) (41) (1)% (72) (186) (61)%
--- --- --- ----
Total operating profit $486 $436 12% $916 $714 28%
==== ==== ==== ====
(a) The three and six months ended
June 30, 2013 include costs
necessary to enable the
separation of MHE and reduce our
cost structure of $10 million and
$54 million, respectively. The
six months ended June 30, 2013
also includes pre-tax legal
settlements of approximately $77
million.
Exhibit 5
McGraw Hill Financial
Operating Results - Reported vs. Performance
Three and six months ended June 30, 2014 and 2013
(dollars in millions, except per share amounts)
Three Months
------------
(unaudited) 2014 2013 % Change
---- ---- --------
Reported Reported Non-GAAP Performance Reported Performance
Adjustments
-----------
S&P Ratings Services $308 $268 $ - $268 15% 15%
S&P Capital IQ 54 49 - 49 10% 10%
S&P Dow Jones Indices 82 77 - 77 6% 6%
Commodities & Commercial Markets 83 83 - 83 -% -%
--- --- --- ---
Segment operating profit 527 477 - 477 10% 10%
Unallocated expense (41) (41) 10 (a) (31) (1)% 31%
--- --- --- ---
Operating profit 486 436 10 446 12% 9%
Interest expense, net 14 16 - 16 (10)% (10)%
--- --- --- ---
Income before taxes on income 472 420 10 430 12% 10%
Provision for taxes on income 156 147 3 150 6% 4%
--- --- --- ---
Income from continuing operations 316 273 7 280 16% 13%
Income from discontinued operations - 4 (4) - N/M -%
--- --- --- ---
Net income 316 277 3 280 14% 13%
Less: NCI net income - continuing (24) (23) - (23) 3% 3%
--- --- --- ---
Net income - continuing 292 250 7 257 17% 14%
Net income - discontinued - 4 (4) - N/M N/M
--- --- ---
Net income attributable to MHFI $292 $254 $3 $257 15% 14%
==== ==== === ====
Diluted EPS - continuing $1.06 $0.90 $0.02 $0.92 18% 15%
Diluted EPS - total $1.06 $0.91 $0.01 $0.92 16% 15%
----- ----- ----- ----- --- ---
Six Months
(unaudited) 2014 2013 % Change
---- ---- --------
Reported Reported Non-GAAP Performance Reported Performance
Adjustments
-----------
S&P Ratings Services $548 $517 $ - $517 6% 6%
S&P Capital IQ 107 99 - 99 8% 8%
S&P Dow Jones Indices 174 141 - 141 23% 23%
Commodities & Commercial Markets 159 143 - 143 12% 12%
--- --- --- ---
Segment operating profit 988 900 - 900 10% 10%
Unallocated expense (72) (186) 131 (a) (55) (61)% 29%
--- ---- --- ---
Operating profit 916 714 131 845 28% 8%
Interest expense, net 28 31 - 31 (10)% (10)%
--- --- --- ---
Income before taxes on income 888 683 131 814 30% 9%
Provision for taxes on income 298 236 49 285 26% 4%
--- --- --- ---
Income from continuing operations 590 447 82 529 32% 12%
Income from discontinued operations - 585 (585) - N/M N/M
--- --- ---
Net income 590 1,032 (503) 529 (43)% 12%
Less: NCI net income - continuing (50) (44) - (44) 14% 14%
Less: NCI net loss - discontinued - 1 (1) - N/M N/M
--- --- --- ---
Net income - continuing 540 403 82 485 34% 11%
Net income - discontinued - 586 (586) - N/M N/M
Net income attributable to MHFI $540 $989 $(504) $485 (45)% 11%
==== ==== ===== ====
Diluted EPS - continuing $1.95 $1.43 $0.29 $1.72 36% 13%
Diluted EPS - total $1.95 $3.52 $(1.79) $1.72 (45)% 13%
----- ----- ------ ----- ---- ---
N/M -not
meaningful
Note -Totals
presented may not
sum due to
rounding
(a) The three and six months ended
June 30, 2013 include costs
necessary to enable the
separation of MHE and reduce our
cost structure of $10 million and
$54 million, respectively. The
six months ended June 30, 2013
also includes pre-tax legal
settlements of approximately $77
million.
Exhibit 6
McGraw Hill Financial
Subscription / Non-Transaction vs. Non-Subscription / Transaction Revenue
Three and six months ended June 30, 2014 and 2013
(dollars in millions)
(unaudited) Subscription / Non-Transaction Non-Subscription / Transaction
------------------------------ ------------------------------
2014 2013 % Change 2014 2013 % Change
---- ---- -------- ---- ---- --------
Three Months
------------
S&P Ratings Services (a) $337 $312 8% $327 $287 14%
S&P Capital IQ (b) 278 260 7% 29 27 9%
S&P Dow Jones Indices (c) 28 26 8% 105 97 8%
Commodities Markets (d) 136 123 11% 13 14 (8)%
Commercial Markets (e) 37 40 (8)% 77 82 (6)%
Intersegment elimination (21) (18) 10% - -
--- ---
Total revenue $795 $743 7% $551 $507 9%
==== ==== ==== ====
Six Months
----------
S&P Ratings Services (a) $661 $610 8% $572 $551 4%
S&P Capital IQ (b) 552 520 6% 56 55 3%
S&P Dow Jones Indices (c) 54 51 5% 215 187 15%
Commodities Markets (d) 271 242 12% 26 25 2%
Commercial Markets (e) 75 81 (8)% 142 148 (3)%
Intersegment elimination (43) (39) 11% - -
--- ---
Total revenue $1,570 $1,465 7% $1,011 $966 5%
====== ====== ====== ====
(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 $19 million and $38
million for the three and six
months ended June 30, 2014,
respectively, and $18 million and
$35 million for the three and six
months ended June 30, 2013,
respectively, charged to S&P
Capital IQ for the rights to use
and distribute content and data
developed by S&P Ratings Services.
(b) Subscription revenue is related to
credit ratings-related
information products, S&P Capital
IQ Desktop, 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 relates 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
licensing of its proprietary
market price data and price
assessments to commodity
exchanges, conference sponsorship,
consulting engagements and events.
(e) Subscription revenue is related to
print and digital information
products primarily serving
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 six months ended June 30, 2014 and 2013
(dollars in millions)
(unaudited) Domestic International
-------- -------------
2014 2013 % Change 2014 2013 % Change
---- ---- -------- ---- ---- --------
Three Months
------------
S&P Ratings Services $356 $323 10% $308 $276 12%
S&P Capital IQ 201 190 6% 106 97 9%
S&P Dow Jones Indices 105 99 7% 28 24 13%
Commodities Markets 58 55 7% 91 82 10%
Commercial Markets 85 92 (9)% 29 30 (1)%
Intersegment elimination (11) (9) 13% (10) (9) 6%
Total revenue $794 $750 6% $552 $500 10%
==== ==== ==== ====
Six Months
----------
S&P Ratings Services $661 $637 4% $572 $524 9%
S&P Capital IQ 400 380 5% 208 195 6%
S&P Dow Jones Indices 213 187 14% 56 51 11%
Commodities Markets 115 104 11% 182 163 11%
Commercial Markets 162 174 (7)% 55 55 2%
Intersegment elimination (23) (21) 18% (20) (18) 5%
Total revenue $1,528 $1,461 4% $1,053 $970 9%
====== ====== ====== ====
Exhibit 8
McGraw Hill Financial
Non-GAAP Financial Information
Three and six months ended June 30, 2014 and 2013
(dollars in millions)
Computation of Free Cash Flow
(unaudited) 2014 2013
---- ----
Cash provided by operating activities from continuing operations $459 $226
Capital expenditures (37) (43)
Dividends and other payments paid to noncontrolling interests (30) (38)
Free Cash Flow $392 $145
==== ====
McGraw Hill Financial Organic Revenue
(unaudited) Three Months Six Months
----------
2014 2013 % Change 2014 2013 % Change
---- ---- -------- ---- ---- --------
Total revenue $1,346 $1,250 8% $2,581 $2,431 6%
Aviation Week - (16) - (24)
S&P Capital IQ product closures and (1) (4) (2) (10)
divestitures
Total Adjusted Revenue $1,345 $1,230 9% $2,579 $2,397 8%
====== ====== ====== ======
Adjusted S&P Capital IQ Revenue
(unaudited) Three Months Six Months
----------
2014 2013 % Change 2014 2013 % Change
---- ---- -------- ---- ---- --------
S&P Capital IQ $307 $287 7% $608 $575 6%
Product closures and divestitures (1) (4) (2) (10)
--- --- --- ---
Adjusted S&P Capital IQ $306 $283 8% $606 $565 7%
==== ==== ==== ====
Adjusted Commodities & Commercial Markets Revenue and Operating Profit
(unaudited) Three Months Six Months
------------ ----------
2014 2013 % Change 2014 2013 % Change
---- ---- -------- ---- ---- --------
C&C Revenue $263 $259 1% $514 $496 4%
Aviation Week - (16) - (24)
--- ---
Adjusted C&C Revenue $263 $243 8% $514 $472 9%
==== ==== ==== ====
Commercial Markets Revenue $114 $122 (7)% $217 $229 (5)%
Aviation Week - (16) - (24)
--- ---
Adjusted Commercial Revenue $114 $106 7% $217 $205 6%
==== ==== ==== ====
C&C Operating Profit $83 $83 -% $159 $143 12%
Aviation Week - (5) - (2)
--- ---
Adjusted C&C Operating Profit $83 $78 6% $159 $141 14%
=== === ==== ====
Adjusted S&P Dow Jones Indices Net Operating Profit
(unaudited) Three Months Six Months
---------- ------------ ----------
2014 2013 % Change 2014 2013 % Change
---- ---- -------- ---- ---- --------
Operating profit $82 $77 6% $174 $141 23%
Operating profit attributable to 22 20 46 38
noncontrolling interests
Adjusted Net Operating Profit $60 $57 5% $128 $103 24%
=== === ==== ====
SOURCE McGraw Hill Financial, Inc.
