News Releases
DES MOINES, Iowa, Jan. 22 /PRNewswire-FirstCall/ -- Meredith Corporation , the leading media and marketing company serving American women, today reported fiscal 2009 second quarter earnings per share of $0.28, including a special charge of $0.21. Excluding the special charge, Meredith's earnings per share were $0.49, in-line with stated expectations. Second quarter revenues were $366 million. This compares to fiscal 2008 second quarter earnings per share of $0.75, and revenues of $396 million.
Meredith recorded a special charge of $16 million ($10 million after tax) in the fiscal second quarter. The charge includes the cost of a companywide workforce reduction of approximately 250 employees; the closure of Country Home magazine, effective with the March 2009 issue; and the relocation of the creative functions of the ReadyMade brand and Parents.com to Des Moines. Additional information on the special charge is available in Tables 1 and 2, and in Meredith's press release dated January 8, 2009.
For the first six months of fiscal 2009, earnings per share were $0.69, including the special charge. Excluding the special charge, earnings per share were $0.90. Fiscal 2009 first-half revenues were $737 million. This compares to fiscal 2008 first-half earnings per share of $1.43, and revenues of $800 million.
"Advertising revenues across our businesses continue to be significantly impacted by the recession," said Meredith President and Chief Executive Officer Stephen M. Lacy. "However, certain revenue streams not tied to advertising are growing, particularly our integrated marketing, brand licensing and video production activities. Also, even in these difficult economic times, our connection to the consumer is rock solid and strengthening. We've seen notable gains in magazine readership and circulation response rates for many of our national brands, as well as marked improvement in news ratings at our local television stations."
Meredith continues to execute its performance improvement plan, which is focused on gaining market share, growing new revenue streams and practicing aggressive expense control. Excluding the special charge and despite higher paper prices, total Meredith operating expenses declined 2.6 percent in the second fiscal quarter, and were down 2.8 percent for the first six months of fiscal 2009. Excluding acquisitions and the special charge, total company operating expenses declined 4.0 percent in the quarter, and were down 4.5 percent for the first six months of fiscal 2009.
"We possess a strong balance sheet, modest levels of debt at a low cost of funds, and adequate liquidity supported by strong operating cash flow," Lacy said. "We are continually taking steps to strengthen our solid financial position through disciplined expense and cash management. Our conservative financial practices and strong national and local brands position Meredith well for the future economic recovery."
OPERATING RESULTS
Publishing
Fiscal 2009 second quarter Publishing operating profit was $15 million. Excluding the special charge, operating profit was $28 million, compared to $45 million in the year-ago period. Revenues were $282 million, compared to $309 million in the year-ago period. Advertising revenues were $122 million, versus $153 million in the prior-year period, when advertising revenues increased 8 percent.
For the first six months of fiscal 2009, operating profit was $48 million. Excluding the special charge, operating profit was $61 million, compared to $100 million in the year-ago period. Revenues were $582 million, compared to $638 million in the year-ago period. Advertising revenues were $271 million, versus $333 million in the prior-year period, when advertising revenues increased 11 percent. Net advertising revenues per page rose approximately 1 percent in the first six months of fiscal 2009 compared to the prior-year period.
"Our consumer brands continue to demonstrate powerful and enduring appeal in print, online or via other platforms such as brand licensing," Lacy said. "Additionally, consumer response rates to our most recent direct mail activity exceeded our expectations."
Examples of Meredith's growing connection to the consumer include:
-- According to the fall 2008 Mediamark Research and Intelligence
study, readership for Meredith's major subscription magazines held
steady at a very strong 120 million. Average household incomes rose
and average reader age declined compared to the prior year study.
Meredith's two flagship brands -- Better Homes and Gardens and
Parents -- each increased readership and median household income,
while average reader age decreased for both titles.
-- Traffic on Meredith's consumer Web sites rose in the second quarter
of fiscal 2009 from the year-ago period. The number of unique
visitors rose 25 percent to nearly 16 million and page views
averaged nearly 200 million per month during the quarter. The
average time spent on the sites per visitor grew to nearly 13
minutes. The total number of videos viewed during the quarter rose
17 percent to 3.2 million.
-- Meredith now ranks in the Top 5 of online networks dedicated to
women. During the quarter, Meredith announced an investment in the
Real Girls Media Network -- a group of premium-branded online social
communities. Also, Meredith launched MixingBowl.com -- a branded
social networking site for women passionate about food and recipes.
-- Brand licensing delivered another outstanding quarter as revenues
rose 27 percent. Sales of Better Homes and Gardens-branded home
products at Walmart U.S. are meeting expectations following the
September 2008 launch of the program. Meredith and Walmart recently
reached agreement to increase the number of products to
approximately 1,000 SKUs in calendar 2009 from 550.
-- Internationally, Meredith completed multiple licensing agreements
during the quarter that will extend the Better Homes and Gardens,
Parents, More, and Diabetic Living brands to more than 20 countries,
including Italy, Mexico and Brazil.
Broadcasting
Fiscal 2009 second quarter Broadcasting operating profit was $22 million. Excluding the special charge, operating profit was $24 million, compared to $28 million in the year-ago period. Revenues were $84 million, compared to $88 million in the year-ago period. Net political revenues were $17 million, in-line with expectations, compared to $1 million in the year-ago period.
For the first six months of fiscal 2009, operating profit was $33 million. Excluding the special charge, operating profit was $35 million, compared to $41 million in the year-ago period. Revenues were $155 million, compared to $162 million in the year-ago period. Net political revenues were $23 million, in-line with expectations, compared to $3 million in the first half of fiscal 2008.
Broadcasting advertising revenues were particularly impacted by a 40 percent decline in automobile advertising -- its largest category -- during the second quarter of fiscal 2009. "While the automotive industry is facing unprecedented challenges, and our other advertisers are also feeling the impact of the recession, we are encouraged that our local television brands continue to resonate with our consumers," Lacy said. "Our investments in local news, combined with our online, video and retransmission initiatives, are laying an important foundation for future growth."
Meredith's television stations posted stronger ratings during the recently completed November sweeps. Highlights included market-leading performances for news programming in Portland, Hartford and Nashville, and a first-ever second-place finish in late news in Atlanta. Meredith's stations in Las Vegas, Kansas City and Greenville, SC, also had solid rating gains.
Meredith Video Solutions, the company's in-house production unit, posted strong revenue growth in the quarter. The Better show, Meredith's nationally syndicated lifestyle show featuring content inspired by Meredith's publishing brands, is now available in 43 markets, representing 30 percent of the country. Top 20 markets San Francisco, Cleveland and Denver recently cleared the program.
Meredith recently agreed to a new retransmission agreement with Comcast -- the largest carrier of Meredith's signal with customers in eight of its 10 television markets -- and also agreed to extend its successful video on demand (VOD) alliance with Comcast for Parents-branded video. Meredith has now successfully completed new retransmission agreements with six of seven major cable operators in its markets.
OTHER FINANCIAL INFORMATION
Meredith generated $83 million in cash flow from operations during the first six months of fiscal 2009. Meredith's total debt was $455 million at December 31, 2009, down $30 million from its prior fiscal year end, and its weighted average interest rate was approximately 4.4 percent as of December 31, 2008. Meredith's debt-to-EBITDA ratio was a conservative 1.7 to 1, under existing debt covenants. The company has repurchased 865,000 shares in fiscal 2009, leaving 1.5 million shares remaining under current share repurchase authorizations.
"We are well-positioned to weather the current softness in advertising and the turbulence in the financial markets, as well as make acquisitions and investments when opportunities arise," Lacy said. "We have a strong balance sheet with a low level of debt, and continue to exercise prudent cash management."
All earnings per share figures in the text of this release are diluted. Both basic and diluted earnings per share can be found in the attached condensed consolidated statements of earnings.
OUTLOOK
Most of Meredith's advertising clients continue to experience a difficult economic environment. The resulting weakness will impact Meredith's revenues for the remainder of fiscal 2009.
While it's too early to predict an improving trend, fiscal 2009 third quarter Publishing advertising revenues are currently down nearly 15 percent, compared to a decline of nearly 20 percent in the first half of fiscal 2009. Additionally, fiscal third quarter paper prices are moderating compared to the first half. Still, paper prices are expected to be approximately 7 percent higher than the third quarter of fiscal 2008.
Broadcasting advertising pacings are currently down nearly 40 percent, driven by a 70 percent decline in automotive pacings.
Meredith's average tax rate is expected to be approximately 36 percent in the third quarter, and 40 percent for the full fiscal 2009.
Currently, Meredith expects third quarter earnings per share to range from approximately $0.55 to $0.60. Full year earnings per share are expected to range from $2.00 to $2.25, excluding the special charge taken in the fiscal second quarter.
A number of uncertainties remain that may affect our outlook for results in the third quarter and full fiscal year as stated in this press release. These include overall advertising volatility; the performance of the company's retail businesses; and paper prices and postal rates. These and other uncertainties are referenced below under "Safe Harbor" and in certain of the company's SEC filings.
CONFERENCE CALL WEBCAST
Meredith will host a conference call on January 22, 2009, at 11 a.m. EST (10 a.m. CST) to discuss fiscal second quarter results. A live webcast will be accessible to the public on the company's web site, http://www.meredith.com, and a replay will be available for one week after the call. A transcript will be available within 48 hours following the conference call at http://www.meredith.com.
RATIONALE FOR USE AND ACCESS TO NON-GAAP MEASURES
Management uses and presents GAAP and non-GAAP results to evaluate and communicate the performance of the company. Non-GAAP measures should not be construed as alternatives to GAAP measures. EBITDA and free cash flow are common supplemental measures of performance used by investors and financial analysts. Management believes that EBITDA and free cash flow provide additional analytical tools to clarify the company's results from core operations and delineate underlying trends. Meredith does not use EBITDA or free cash flow as a measure of liquidity or funds available for management's discretionary use because they include certain contractual and non- discretionary expenditures.
Results excluding the special charge recorded in the second quarter of fiscal 2009 are also supplemental non-GAAP financial measures. Management believes the special charge is not reflective of Meredith's ongoing business activities. While results excluding the special charge are not a substitute for reported earnings results under GAAP, management believes this information is useful as an aid in better understanding Meredith's current performance, performance trends and financial condition. Reconciliations of non-GAAP to GAAP measures are included in the attached tables. The attached consolidated financial statements and reconciliation tables will be made available at http://www.meredith.com
SAFE HARBOR
This release contains certain forward-looking statements that are subject to risks and uncertainties. These statements are based on management's current knowledge and estimates of factors affecting the company's operations. Statements in this announcement that are forward-looking include, but are not limited to, the statements regarding broadcasting pacings and publishing advertising revenues, along with the company's earnings per share outlook for the third quarter and all of fiscal 2009.
Actual results may differ materially from those currently anticipated. Factors that could adversely affect future results include, but are not limited to, downturns in national and/or local economies; a softening of the domestic advertising market; world, national or local events that could disrupt broadcast television; increased consolidation among major advertisers or other events depressing the level of advertising spending; the unexpected loss or insolvency of one or more major clients; the integration of acquired businesses; changes in consumer reading, purchasing and/or television viewing patterns; increases in paper, postage, printing or syndicated programming costs; changes in television network affiliation agreements; technological developments affecting products or methods of distribution; changes in government regulations affecting the company's industries; unexpected changes in interest rates; and the consequences of acquisitions and/or dispositions. The company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
ABOUT MEREDITH CORPORATION
Meredith Corporation is the leading media and marketing company serving American women. Meredith combines well- known national brands -- including Better Homes and Gardens, Parents, Ladies' Home Journal, Family Circle, American Baby, Fitness and More -- with local television brands in fast growing markets. Meredith is the industry leader in creating content in key consumer interest areas such as home, family, health and wellness and self-development. Meredith then uses multiple distribution platforms -- including print, television, online, mobile and video -- to give consumers content they desire and to deliver the messages of its marketing partners. Additionally, Meredith uses its many assets to create powerful custom marketing solutions for many of the nation's top brands and companies. The goals of these programs are to increase consumer loyalty and produce repeated consumer interaction. In the last two years, Meredith has significantly added to its capabilities in this area through the acquisition of cutting-edge companies in areas such as online, word-of-mouth and database marketing. Headquartered in Des Moines, Meredith has a nationwide workforce of approximately 3,500 employees.
Meredith Corporation and Subsidiaries
Consolidated Statements of Earnings (Unaudited)
Three Months Six Months
Period Ended December 31, 2008 2007 2008 2007
(In thousands except per share
data)
Revenues
Advertising $204,213 $239,256 $419,749 $493,591
Circulation 69,274 72,959 143,296 153,245
All other 92,753 84,030 173,633 153,482
Total revenues 366,240 396,245 736,678 800,318
Operating expenses
Production, distribution, and
editorial 165,744 166,122 338,956 341,830
Selling, general, and
administrative 161,735 153,046 310,658 308,616
Depreciation and amortization 10,778 12,025 21,636 24,143
Total operating expenses 338,257 331,193 671,250 674,589
Income from operations 27,983 65,052 65,428 125,729
Interest income 107 296 227 648
Interest expense (5,353) (5,734) (10,787) (11,897)
Earnings from continuing
operations before income taxes 22,737 59,614 54,868 114,480
Income taxes 10,194 24,401 23,688 45,799
Earnings from continuing
operations 12,543 35,213 31,180 68,681
Income from discontinued
operations, net of taxes - 846 - 748
Net earnings $12,543 $36,059 $31,180 $69,429
Basic earnings per share
Earnings from continuing
operations $0.28 $0.74 $0.69 $1.44
Discontinued operations - 0.02 - 0.02
Basic earnings per share $0.28 $0.76 $0.69 $1.46
Basic average shares outstanding 44,951 47,287 45,096 47,541
Diluted earnings per share
Earnings from continuing
operations $0.28 $0.73 $0.69 $1.41
Discontinued operations - 0.02 - 0.02
Diluted earnings per share $0.28 $0.75 $0.69 $1.43
Diluted average shares
outstanding 45,072 48,325 45,219 48,576
Dividends paid per share $0.215 $0.185 $0.430 $0.370
Meredith Corporation and Subsidiaries
Segment Information (Unaudited)
Three Months Six Months
Period Ended December 31, 2008 2007 2008 2007
(In thousands)
Revenues
Publishing $281,864 $308,608 $581,899 $638,130
Broadcasting
Non-political advertising 64,717 85,168 126,365 157,660
Political advertising 17,005 1,436 22,876 2,508
Other revenues 2,654 1,033 5,538 2,020
Total broadcasting 84,376 87,637 154,779 162,188
Total revenues $366,240 $396,245 $736,678 $800,318
Operating profits
Publishing $15,241 $44,512 $48,425 $99,945
Broadcasting 22,329 27,564 33,025 41,141
Unallocated corporate (9,587) (7,024) (16,022) (15,357)
Income from operations $27,983 $65,052 $65,428 $125,729
Depreciation and amortization
Publishing $4,230 $5,305 $8,058 $10,505
Broadcasting 6,448 6,329 12,517 12,707
Unallocated corporate 100 391 1,061 931
Total depreciation and
amortization $10,778 $12,025 $21,636 $24,143
EBITDA
Publishing $19,471 $49,817 $56,483 $110,450
Broadcasting 28,777 33,893 45,542 53,848
Unallocated corporate (9,487) (6,633) (14,961) (14,426)
Total EBITDA $38,761 $77,077 $87,064 $149,872
Meredith Corporation and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
December 31, June 30,
Assets 2008 2008
(In thousands)
Current assets
Cash and cash equivalents $33,359 $37,644
Accounts receivable, net 217,091 230,978
Inventories 40,659 44,085
Current portion of subscription
acquisition costs 60,988 59,939
Current portion of broadcast rights 17,391 10,779
Other current assets 20,500 19,665
Total current assets 389,988 403,090
Property, plant, and equipment 457,469 446,935
Less accumulated depreciation (258,292) (247,147)
Net property, plant, and equipment 199,177 199,788
Subscription acquisition costs 60,588 60,958
Broadcast rights 6,816 7,826
Other assets 73,653 74,472
Intangible assets, net 777,309 781,154
Goodwill 531,256 532,332
Total assets $2,038,787 $2,059,620
Liabilities and Shareholders' Equity
Current liabilities
Current portion of long-term debt $130,000 $75,000
Current portion of long-term broadcast rights
payable 18,702 11,141
Accounts payable 67,174 79,028
Accrued expenses and other liabilities 101,589 102,707
Current portion of unearned subscription
revenues 177,263 175,261
Total current liabilities 494,728 443,137
Long-term debt 325,000 410,000
Long-term broadcast rights payable 15,512 17,186
Unearned subscription revenues 160,124 157,872
Deferred income taxes 153,303 139,598
Other noncurrent liabilities 107,215 103,972
Total liabilities 1,255,882 1,271,765
Shareholders' equity
Common stock 35,795 36,295
Class B stock 9,161 9,181
Additional paid-in capital 50,365 52,693
Retained earnings 699,948 701,205
Accumulated other comprehensive income
(loss) (12,364) (11,519)
Total shareholders' equity 782,905 787,855
Total liabilities and shareholders'
equity $2,038,787 $2,059,620
Meredith Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
Six Months Ended December 31, 2008 2007
(In thousands)
Net cash provided by operating activities $83,028 $142,919
Cash flows from investing activities
Acquisitions of businesses (5,195) (1,920)
Additions to property, plant, and
equipment (15,185) (10,210)
Proceeds from dispositions of assets 636 -
Net cash used in investing activities (19,744) (12,130)
Cash flows from financing activities
Proceeds from issuance of long-term debt 120,000 90,000
Repayments of long-term debt (150,000) (145,000)
Purchases of Company stock (21,562) (77,482)
Dividends paid (19,430) (17,607)
Proceeds from common stock issued 2,457 9,442
Excess tax benefits from share-based
payments 966 360
Net cash used in financing activities (67,569) (140,287)
Net decrease in cash and cash
equivalents (4,285) (9,498)
Cash and cash equivalents at beginning of
period 37,644 39,220
Cash and cash equivalents at end of period $33,359 $29,722
Meredith Corporation and Subsidiaries Table 1
Supplemental Disclosures Regarding Non-GAAP Financial Measures
(Unaudited)
Special Charge -- During the second quarter of fiscal 2009, Meredith
recorded a special charge which relates primarily to the cost of a
companywide workforce reduction of approximately 250 employees; the
closure of Country Home magazine, effective with the March 2009 issue;
and the relocation of the creative functions of the ReadyMade brand and
Parents.com to Des Moines. Please see Meredith's press release dated
January 8, 2009, for additional information relating to the special
charge.
The following table shows results of operations excluding the special
charge and as reported with the difference being the special charge.
Results of operations excluding the special charge are non-GAAP
measures. Management's rationale for presenting non-GAAP measures is
included in the text of this earnings release.
Period Ended December 31, 2008 Three Months
Excluding
Special Special
Charge Charge As Reported
(In thousands except per share data)
Revenues
Advertising $204,213 $- $204,213
Circulation 69,274 - 69,274
All other 92,753 92,753
Total revenues 366,240 - 366,240
Operating expenses
Production, distribution, and
editorial 165,115 629 (a) 165,744
Selling, general, and administrative 146,569 15,166 (b) 161,735
Depreciation and amortization 10,778 - 10,778
Total operating expenses 322,462 15,795 338,257
Income from operations 43,778 (15,795) 27,983
Interest income 107 - 107
Interest expense (5,353) - (5,353)
Earnings before income taxes 38,532 (15,795) 22,737
Income taxes 16,354 (6,160) 10,194
Net earnings $22,178 $(9,635) $12,543
Basic earnings per share $0.49 $(0.21) $0.28
Basic average shares outstanding 44,951 44,951 44,951
Diluted earnings per share $0.49 $(0.21) $0.28
Diluted average shares outstanding 45,072 45,072 45,072
Period Ended December 31, 2008 Six Months
Excluding
Special Special
Charge Charge As Reported
(In thousands except per share data)
Revenues
Advertising $419,749 $- $419,749
Circulation 143,296 - 143,296
All other 173,633 - 173,633
Total revenues 736,678 - 736,678
Operating expenses
Production, distribution, and
editorial 338,327 629 (a) 338,956
Selling, general, and administrative 295,492 15,166 (b) 310,658
Depreciation and amortization 21,636 - 21,636
Total operating expenses 655,455 15,795 671,250
Income from operations 81,223 (15,795) 65,428
Interest income 227 - 227
Interest expense (10,787) - (10,787)
Earnings before income taxes 70,663 (15,795) 54,868
Income taxes 29,848 (6,160) 23,688
Net earnings $40,815 $(9,635) $31,180
Basic earnings per share $0.91 $(0.21) $0.69
Basic average shares outstanding 45,096 45,096 45,096
Diluted earnings per share $0.90 $(0.21) $0.69
Diluted average shares outstanding 45,219 45,219 45,219
Notes
(a) Write-down of art and manuscript inventory
(b) Severance expense and write-down of subscription acquisition costs
Meredith Corporation and Subsidiaries Table 2
Supplemental Disclosures Regarding Non-GAAP Financial Measures
(Unaudited)
The following table shows results of operations excluding the special
charge and as reported with the difference being the special charge.
Results of operations excluding the special charge are non-GAAP
measures. Management's rationale for presenting non-GAAP measures is
included in the text of this earnings release.
Period Ended December 31, 2008 Three Months
Excluding
Special Special
Charge Charge As Reported
(In thousands)
Revenues
Publishing $281,864 $- $281,864
Broadcasting
Non-political advertising 64,717 - 64,717
Political advertising 17,005 - 17,005
Other revenues 2,654 - 2,654
Total broadcasting 84,376 - 84,376
Total revenues $366,240 $- $366,240
Operating profit
Publishing $28,043 $(12,802)(a) $15,241
Broadcasting 24,342 (2,013)(b) 22,329
Unallocated corporate (8,607) (980)(c) (9,587)
Income from operations $43,778 $(15,795) $27,983
Depreciation and amortization
Publishing $4,230 $- $4,230
Broadcasting 6,448 - 6,448
Unallocated corporate 100 - 100
Total depreciation and amortization $10,778 $- $10,778
EBITDA(1)
Publishing $32,273 $(12,802) $19,471
Broadcasting 30,790 (2,013) 28,777
Unallocated corporate (8,507) (980) (9,487)
Total EBITDA(1) $54,556 $(15,795) $38,761
Period Ended December 31, 2008 Six Months
Excluding
Special Special
Charge Charge As Reported
(In thousands)
Revenues
Publishing $581,899 $- $581,899
Broadcasting
Non-political advertising 126,365 - 126,365
Political advertising 22,876 - 22,876
Other revenues 5,538 - 5,538
Total broadcasting 154,779 - 154,779
Total revenues $736,678 $- $736,678
Operating profit
Publishing $61,227 $(12,802)(a) $48,425
Broadcasting 35,038 (2,013)(b) 33,025
Unallocated corporate (15,042) (980)(c) (16,022)
Income from operations $81,223 $(15,795) $65,428
Depreciation and amortization
Publishing $8,058 $- $8,058
Broadcasting 12,517 - 12,517
Unallocated corporate 1,061 - 1,061
Total depreciation and amortization $21,636 $- $21,636
EBITDA(1)
Publishing $69,285 $(12,802) $56,483
Broadcasting 47,555 (2,013) 45,542
Unallocated corporate (13,981) (980) (14,961)
Total EBITDA(1) $102,859 $(15,795) $87,064
(1) EBITDA is earnings before interest, taxes, depreciation, and
amortization.
Notes
(a) Write-down of art and manuscript inventory and severance expense
for Publishing operations
(b) Severance expense for Broadcasting operations
(c) Severance expense for Corporate personnel
Meredith Corporation and Subsidiaries Table 3
Supplemental Disclosures Regarding Non-GAAP Financial Measures
(Unaudited)
EBITDA
Consolidated EBITDA, which is reconciled to earnings from continuing
operations in the following tables, is defined as earnings from
continuing operations before interest, taxes, depreciation, and
amortization.
Segment EBITDA is a measure of segment earnings before depreciation and
amortization.
Segment EBITDA margin is defined as segment EBITDA divided by segment
revenues.
Three Months Ended December 31, 2008
Unallocated
Publishing Broadcasting Corporate Total
(In thousands)
Revenues $281,864 $84,376 $- $366,240
Operating profit $15,241 $22,329 $(9,587) $27,983
Depreciation and amortization 4,230 6,448 100 10,778
EBITDA $19,471 $28,777 $(9,487) 38,761
Less:
Depreciation and amortization (10,778)
Net interest expense (5,246)
Income taxes (10,194)
Earnings from continuing operations $12,543
Segment EBITDA margin 6.9% 34.1%
Six Months Ended December 31, 2008
Unallocated
Publishing Broadcasting Corporate Total
(In thousands)
Revenues $581,899 $154,779 $- $736,678
Operating profit $48,425 $33,025 $(16,022) $65,428
Depreciation and amortization 8,058 12,517 1,061 21,636
EBITDA $56,483 $45,542 $(14,961) 87,064
Less:
Depreciation and amortization (21,636)
Net interest expense (10,560)
Income taxes (23,688)
Earnings from continuing
operations $31,180
Segment EBITDA margin 9.7% 29.4%
Three Months Ended December 31, 2007
Unallocated
Publishing Broadcasting Corporate Total
(In thousands)
Revenues $308,608 $87,637 $- $396,245
Operating profit $44,512 $27,564 $(7,024) $65,052
Depreciation and amortization 5,305 6,329 391 12,025
EBITDA $49,817 $33,893 $(6,633) 77,077
Less:
Depreciation and amortization (12,025)
Net interest expense (5,438)
Income taxes (24,401)
Earnings from continuing operations $35,213
Segment EBITDA margin 16.1% 38.7%
Six Months Ended December 31, 2007
Unallocated
Publishing Broadcasting Corporate Total
(In thousands)
Revenues $638,130 $162,188 $- $800,318
Operating profit $99,945 $41,141 $(15,357) $125,729
Depreciation and amortization 10,505 12,707 931 24,143
EBITDA $110,450 $53,848 $(14,426) 149,872
Less:
Depreciation and amortization (24,143)
Net interest expense (11,249)
Income taxes (45,799)
Earnings from continuing
operations $68,681
Segment EBITDA margin 17.3% 33.2%
Table 4
FREE CASH FLOW
Free cash flow, which is reconciled to earnings from continuing operations
in the following table, is defined as earnings from continuing operations
plus depreciation and amortization less capital expenditures.
Three Months Six Months
Period Ended December 31, 2008 2007 2008 2007
(In thousands)
Free cash flow $17,744 $41,301 $37,631 $82,614
Depreciation and amortization (10,778) (12,025) (21,636) (24,143)
Capital expenditures 5,577 5,937 15,185 10,210
Earnings from continuing operations $12,543 $35,213 $31,180 $68,681
SOURCE: Meredith Corporation
Web site: http://www.meredith.com/