Onetime Charge Negates McGaw Profit

IRVINE — McGaw Inc. posted record revenue for the first quarter, but what would have been a small profit was wiped out by a onetime expense that resulted in a $7.2-million net loss.

McGaw linked the loss to a $7.2-million prepayment penalty in March when McGaw used proceeds from its initial public stock offering to repay debt accumulated when the company was acquired in 1990. Without that onetime charge, McGaw would have reported a $20,000 profit. For the first quarter a year earlier, McGaw reported a $3.6-million loss.

Revenue for the latest three months grew by 12% to $79.4 million.