The fourth quarter operating gains pushed full-year diluted earnings per share from continuing operations to $2.50, up 49.7 percent from fiscal 1999.
Brian J. Knez, co-chief executive officer, stated that all four of the Company’s operating groups contributed to the fourth quarter earnings gains, paced by an increase in operating earnings of 90.8 percent in the Corporate and Professional Services Group.
We are particularly pleased by the broad-based strength in our businesses in the quarter, which caps off a year in which all four groups posted substantial gains in operating earnings, he said.
For the full year, Harcourt General reported revenues from continuing operations of $2.41 billion, up 12.4 percent from $2.14 billion in 1999. Operating earnings rose 31.5 percent to $367.7 million from $279.6 the prior year. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) increased 15.9 percent in fiscal 2000 to $620.3 million from $535.1 million in 1999. Amortization of goodwill and intangible assets in 2000 was $67.2 million compared to $76.0 million in 1999.
Net earnings from continuing operations were $182.8 million, equal to $2.50 per diluted share, a 51.9 percent gain from $120.3 million, equal to $1.67 per diluted share, from continuing operations a year ago.
Net earnings from continuing operations in 2000 include an after-tax gain of $9.8 million or 13 cents per diluted share from the sale of a business and an after-tax gain of $4.8 million or 7 cents per diluted share from the sale of securities.
Net earnings for the year were $79.8 million or $1.09 per diluted share and include a previously announced after-tax charge of $103.0 million or $1.41 per diluted share to cover lease liabilities arising from the bankruptcy reorganization filing by GC Companies, the movie theatre exhibition business that Harcourt General spun off to its shareholders in 1993.
In 1999, net earnings were $183.8 million or $1.67 per diluted share and include one-time after-tax gains from the sale of securities and a business of $5.9 million or 8 cents per diluted share as well as earnings from discontinued specialty retailing operations of $63.5 million, equal to $.88 per share.
For the fourth quarter ended October 31, 2000, Harcourt General had revenues of $723.8 million, up 5.9 percent from $683.6 million a year ago. Operating earnings climbed 12.7 percent to $157.8 million from $140.1 million the prior year. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) were $224.3 million in the 2000 quarter, an 8.7 percent increase from $206.3 million a year earlier.
Net earnings before the one-time charge in the fourth quarter were $82.9 million, or $1.12 per share, an 18.7 percent increase from $69.8 million, or $.97 per share, from continuing operations a year earlier. The previously discussed $103.0 million after-tax charge resulted in a net loss of $20.1 million, or $.27 per share, in the fourth quarter of fiscal 2000.
In the fourth quarter of fiscal 1999, earnings of $16.6 million from the discontinued specialty retailing operations increased net earnings to $86.4 million, or $1.20 per share.
Mr. Smith said, We are very pleased that the momentum from our exceptionally strong third quarter continued through year-end, with each of our four groups contributing to the fourth quarter operating earnings gains. This is an impressive performance given that the fourth quarter of 1999 was a very strong period. The Education Group had fourth quarter revenues of $242.2 million, up 14.0 percent from $212.4 million a year ago, and operating earnings of $69.4 million, a 5.8 percent increase from $65.6 million the prior year.
The Group’s performance in the quarter was led by Harcourt School, which had substantial double digit gains in both revenues and operating earnings, according to Mr. Smith.
Mr. Knez concluded, We are gratified by these fiscal 2000 operating results, which include continuing market share gains in our K-12 business, wider distribution of our health sciences and scientific content through new electronic media in the STM Group, and meaningful progress in growth initiatives in areas such as on-line higher education and internet-based testing and training.
