About Houghton Mifflin Harcourt Publishing Company
Houghton Mifflin Harcourt Company (HMH) would like to thank all the professional students out there. The firm is a publisher of educational material, covering areas from pre-K through grade 12, as well as adult learners. HMH publishes textbooks and printed materials, and provides digital content online to more than 50 million students and nearly 114,000 school districts in more than 150 countries. It also publishes fiction (including J.R.R. Tolkien's The Lord of the Rings series and the popular line of Curious George books), as well as nonfiction titles and reference materials, and offers professional resources and educational services to teachers. HMH primarily sells to customers in the US.
Since 2016 the unprofitable HMH has been undergoing a corporate restructuring designed to streamline operations and reduce expenses. Such efforts included a significant impairment charge in 2017 for intangible assets, as the Company made the strategic decision to migrate away from certain imprints. Like many educational publishing companies, HMH has struggled with challenges relating to a transition away from print as schools increase their use of digital materials in the classroom. Management is focused on executing a long-term strategy to return to profitability.
Sales in 2018 were essentially flat compared to 2017. The company relies on state curriculum adoptions and purchasing cycles and it attributes a decline in Core Solution sales (core curriculum mostly focused on reading, math, science, and social studies) to legacy products reaching the end of their lifecycle and needing to be replaced. Replacements are expected to occur in 2019.
HMH reported a net loss of $90.5 million in 2018 versus $135.1 million in 2017. Restructuring actions taken in 2018 helped the company reduce costs and narrow its loss that year.
HMH finished 2018 with $253.4 million in cash and cash equivalents. Net cash provided by operating activities was $114.9 million. Net cash used in investing activities was $6.4 million while net cash used in financing activities was $4.1 million.
HMH is organized along two business segments: Education and Books & Media (formerly Trade Publishing). Education is its largest segment representing approximately 85% of sales, while the former Trade Publishing accounts for approximately 15%. Revenue sources include the sale of print and digital content and instructional materials, trade books, multimedia instructional programs, license fees for book rights, content, software and services, consulting, and training.
The company continues to work towards its 2020 strategy of advancing its transformation from K-12 publisher to a comprehensive learning company. It aims to do so by enhancing its core offerings, developing more integrated solutions, and divesting certain products. To these ends, in 2018 it sold its Riverside clinical and standardized testing business and acquired Waggle, a web-based adaptive learning platform.
Meanwhile, the company's newly formed HMH Productions launched the series Carmen Sandiego on Netflix as part of its strategy to expand its content across media platforms. The segment also plans to release its own audiobooks through its newly launched HMH Audio. In 2019 the Trade segment, which houses HMH Productions and HMH Audio, was renamed Houghton Mifflin Harcourt Books & Media.
125 HIGH ST STE 900
Boston, MA 02110-2777
Phone: 1 (617) 351-5000
Employer Type: Privately Owned
Executive Vice President: Bill Bayers
Vice President: Tony Clancy
Vice President K 12 Finance: Prescott Taylor
Employees (This Location): 970
Employees (All Locations): 3,300
San Diego, CA
Pompano Beach, FL
Royal Palm Beach, FL
Rolling Meadows, IL
Villa Hills, KY
New York, NY
New Franklin, OH
Fort Worth, TX
Seoul, South Korea