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FINANCE REPORT
INTRODUCTION
Our financial objectives for this year included:
a) earnings growth of 20%,
b) continued use of every available opportunity
to finance investment in the growth of our
businesses * * *,
c) optimization of the proceeds from the Mosby
Matthew Bender disposition so that future
year dilution is minimized, and
d) continuation of return on capital in excess
of 12%.
At mid-year we can report that we are still on this
course and all of our corporate objectives for the year
are both in sight and within reach. While there are
more “moving pieces” than usual, there are four major
items to note:
• First, as expected, following the Mosby Matthew
Bender (MMB) agreements, we are required to treat
MMB as discontinued operations and the “street”
has recalibrated our performance to a continuing
earnings basis and will track us this way from now
on.
* * * * * * *
• Third, in light of the very large MMB gain on
sale, we have begun to review our entire balance
sheet, our work processes, and all of our systems
to determine if appropriate charges, write-offs,
or buy-down/buy-outs of contracts might prove
beneficial. * * *
• Fourth, as is discussed under a separate tab
entitled Capitalization/Investment, following the
MMB sale, we will have a very substantial level of
resources for redeployment over time in operating
assets and for recapitalization.
* * * * * * *
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