March 18, 2014
/PRNewswire/ -- McGraw Hill Financial (NYSE: MHFI) will hold its inaugural Investor Day today to introduce its strategy to drive growth and performance over the next three years and will showcase its latest innovative products.
"McGraw Hill Financial will create growth and drive performance with its exceptional talent and leading brands that are well positioned to capitalize on secular trends in dynamic global capital, commodity and corporate markets," said
Douglas L. Peterson
, president and chief executive officer of McGraw Hill Financial.
Three-year Performance Goals Established
The Company is setting annual growth goals (2014-2016) of:
Evaluating Strategic Alternatives for McGraw Hill Construction
- Mid to high single-digit revenue growth;
- Sustained margin expansion;
- Mid-teens EPS growth; and
- $1 billion of free cash flow.
The Company plans to complete its portfolio rationalization by exploring strategic alternatives for McGraw Hill Construction, a leading provider of essential data, news and insights to better inform construction professionals' decisions in the United States. McGraw Hill Construction has approximately
in annual revenue and stand-alone operating margins approaching 20%. The business has shifted away from legacy print products to new, innovative data and analytics offerings, which are generating double-digit growth. Evercore Partners is acting as a financial advisor to the Company in this matter.
Targeting at Least $100 Million in Productivity Savings
The Company is targeting at least
in cost savings over the next three years. Multiple initiatives are underway to realize this goal, such as enterprise-wide process simplification, reducing its real estate portfolio, leveraging technology and rationalizing procurement.
2014 Outlook Reaffirmed
The Company is affirming its 2014 guidance and continues to expect mid-single‐digit revenue growth in 2014 compared to 2013, adjusted diluted EPS of
$3.75 to $3.85
, and free cash flow of approximately
Strong Record of Financial Performance and Shareholder Returns
Over the last three years, McGraw Hill Financial has produced 11% annualized revenue growth, expanded adjusted operating margins from 28% to 33%, and grown adjusted earnings per share at a 26% annualized rate. With strong free cash flow, McGraw Hill Financial has returned significant capital to shareholders. From 2011-2013, the Company returned approximately
in the form of dividends and share repurchases, including approximately
The Company will provide additional detail around its strategic priorities and showcase innovative product offerings at its Investor Day today. Presentations will be made by: Mr. Peterson;
, EVP and CFO, McGraw Hill Financial;
, EVP and General Counsel, McGraw Hill Financial;
, President, Platts;
, CEO, S&P Dow Jones Indices;
, President, J.D. Power;
, President, S&P Capital IQ;
, President, Standard & Poor's Ratings Services and
, MD and CEO, CRISIL.
The event is by invitation only to attend in person. The Company will video webcast all the presentations and will make them available, live and in replay, for all interested parties at
(please copy and paste URL into web browser).
The video webcast will begin streaming live at
1:00 p.m. Eastern Time
March 18, 2014
and will conclude at
4:30 p.m. Eastern Time
. Discussions may include forward-looking information. Additional information presented during Investor Day may be made available on the Company's Investor Relations website at
A limited number of telephone lines will be available for participants without access to the video webcast. Domestic participants may call +1 (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
. A recorded telephone replay will be available approximately two hours after the meeting concludes and will remain available until
April 18, 2014
. Domestic participants may call +1 (800) 945-2458; international participants may call +1 (203) 369-3946 (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
Get news direct from McGraw Hill Financial via RSS:
Vice President, Investor Relations (212) 512-4321 (office)
Director, Corporate Media Relations (212) 512-3151 (office)
Emily Fredrix Goodman
Manager, Corporate Communications and Social Media(212) 512-2825 (office)
SOURCE McGraw Hill Financial