News Releases
Earnings in line with previously stated expectations
DES MOINES, Iowa, April 29 /PRNewswire-FirstCall/ -- Meredith Corporation , the leading media and marketing company serving American women, today reported fiscal 2009 third quarter earnings per share of $0.56, in line with stated expectations. Third quarter revenues were $338 million. This compares to fiscal 2008 third quarter earnings per share of $0.97, and revenues of $392 million.
For the first nine months of fiscal 2009, earnings per share were $1.25, including a special charge of $0.21 taken during the fiscal second quarter for the cost of a companywide workforce reduction and closing Country Home magazine. Excluding the special charge, earnings per share for the first nine months of fiscal 2009 were $1.46. Revenues for the first nine months of fiscal 2009 were $1.1 billion. This compares to earnings per share of $2.40 and revenues of $1.2 billion during the first nine months of fiscal 2008.
Fiscal 2009 third quarter advertising revenues continued to be impacted by the recession. Publishing advertising revenues declined 12 percent, an improvement over first half results, and significantly outperformed the industry in the quarter. Broadcasting advertising revenues declined 31 percent, primarily due to lower automotive spending along with weakness in the Phoenix and Las Vegas markets.
Meredith continues to execute its performance improvement plan, which was put in place at the end of fiscal 2008 and emphasizes (1) gaining market share; (2) growing new revenue streams; and (3) aggressively reducing costs and debt. Meredith experienced success against this plan in the quarter as evidenced by:
- Meredith's total share of magazine advertising increased to 11.1 percent from 9.4 percent, according to Publishers Information Bureau. Additionally, magazine subscription profitability grew and traffic rose across the Publishing Group's Websites. Viewership at Meredith's television stations also made strong gains in the recently completed March sweeps.
- Retransmission revenues doubled, and revenues at Meredith Integrated Marketing and Meredith Video Solutions grew as well.
- Meredith's total operating costs declined 6 percent in the third quarter, despite a 7 percent increase in paper prices over the prior-year period.
- Meredith generated $56 million in cash flow from operations and increased cash and cash equivalents by $41 million.
"The plan we proactively put in place nearly one year ago is yielding improving results across many of our businesses," said Meredith President and CEO Stephen M. Lacy. "Additionally, our careful and conservative financial management allowed us to raise our dividend 5 percent during the third quarter and further strengthen our balance sheet. We will eliminate approximately $100 million, or 20 percent, of our debt in fiscal 2009, and we continue to be well-positioned to make further investments in our business as strategic opportunities arise."
OPERATING RESULTS
Publishing
For the fiscal 2009 third quarter, Publishing operating profit was $48 million and revenues were $280 million. This compares to operating profit of $64 million and revenues of $315 million in the prior year. Advertising revenues were $132 million, versus $150 million in the prior year. Net advertising revenues per page were down 1 percent from the prior-year period.
For the first nine months of fiscal 2009, Publishing operating profit was $105 million, or $111 million excluding the special charge, and revenues were $851 million. This compares to operating profit of $164 million and revenues of $936 million in the prior year. Advertising revenues were $397 million, versus $472 million in the prior year. Net advertising revenues per page were up slightly from the prior-year period.
Publishing operating costs declined approximately 7 percent in the third quarter, and 4 percent for the first nine months of fiscal 2009, compared to the respective prior-year periods.
Advertising performance in seven of Meredith's Top 10 categories improved in the third quarter over the first half of fiscal 2009, including food and beverage, prescription and non-prescription drugs, and household supplies. Lacy credited the ongoing initiative to gain market share for the improved performance. "We are seeing stabilization and some improvement in magazine advertising compared to the first half of fiscal 2009," Lacy said. "We expect this trend to continue into the fourth quarter as well."
Both profit contribution and related margin in Meredith's subscription activities increased in the quarter. Meredith's total circulation revenues declined 12 percent, primarily a result of fewer Special Interest Media titles published and continued soft retail sales. Subscription revenues declined 1 percent.
Meredith Interactive Media advertising revenues increased 7 percent in the third quarter, as clients and consumers alike responded positively to the launch of the Meredith Women's Network. Monthly unique visitors increased to approximately 15 million, and page views per month averaged nearly 170 million, an increase of 25 percent.
Meredith Integrated Marketing operating profit increased approximately 10 percent in the third quarter, driven by new business won in the past year, including Kraft's Food & Family custom marketing program, and growth from recent digital acquisitions.
Brand Licensing continued to benefit from the expansion of the Better Homes and Gardens line of home and garden-related products at Wal-Mart Stores Inc. across the country. Wal-Mart plans to nearly double the number of these products available for sale in calendar 2009 to approximately 1,000 SKUs.
"Our national consumer brands continue to demonstrate powerful and enduring appeal to consumers and advertisers alike across multiple platforms, be it print, online or brand licensing at retail," Lacy said.
Broadcasting
For the fiscal 2009 third quarter, Broadcasting operating profit was $1.3 million and revenues were $57 million. This compares to operating profit of $19 million and revenues of $78 million in the prior year period.
For the first nine months of fiscal 2009, Broadcasting operating profit was $34 million, or $36 million excluding the special charge, and revenues were $212 million. This compares to operating profit of $60 million and revenues of $240 million in the prior year period.
Broadcasting operating costs declined 5 percent in the third quarter, and 1 percent for the first nine months of fiscal 2009, compared to the respective prior-year periods. To further reduce expenses and improve efficiencies, Meredith is implementing a plan to centralize certain functions - including master control, traffic and research - across its television stations.
Broadcasting advertising revenues were down 31 percent in the third quarter, led by a significant decline in automotive. However, advertising revenues improved from when Meredith provided its outlook in late January.
To enhance local market performance, Meredith continues to focus on growing and monetizing viewership ratings. "We were pleased to see most of our television stations post stronger ratings during the recently completed March sweeps," said Lacy. "These ratings gains are key to commanding higher revenues for advertising spots in the future."
Highlights from the March sweeps included:
- Viewership gains in late news across most of Meredith's stations, including Phoenix (+60%), Greenville (+22%), Atlanta (+20%), Hartford (+18%), Las Vegas (+14%) and Kansas City (+14%).
- Viewership gains during the morning news in Atlanta (+100%), Kansas City (+27%), Las Vegas (+19%) and Greenville (+10%).
- Additionally, Meredith's powerhouse Hartford CBS station continued its market leadership across all news periods, and its Nashville NBC affiliate ranked #1 in all three evening newscasts.
Meredith continued to emphasize other new revenue streams including retransmission fees and Meredith Video Solutions, its in-house video production unit. Revenues from retransmission agreements more than doubled in the fiscal third quarter compared to the year-ago period. Meredith has successfully completed new retransmission agreements with six of seven major cable operators in its markets.
OTHER FINANCIAL INFORMATION
Meredith generated $56 million in cash flow from operations during the fiscal third quarter of 2009 and $139 million during the first nine months of fiscal 2009.
Meredith's total debt was $455 million at March 31, 2009, $30 million less than the prior fiscal year end. Cash and cash equivalents were $74 million, $37 million greater than the prior fiscal year end. The weighted average interest rate on debt was approximately 4.5 percent as of March 31, 2009. Meredith's debt-to-EBITDA ratio was well under existing debt covenants at a conservative 1.9 to 1.
During the third quarter of fiscal 2009, Meredith reclassified the results of Country Home to discontinued operations. 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 be impacted by the recession.
In Publishing, with two of the quarter's three magazine issues closed, fiscal 2009 fourth quarter advertising revenues are expected to be down approximately 12 percent.
In Broadcasting, with nine weeks left in the fourth quarter of fiscal 2009, advertising pacings are down 32 percent. In the third quarter of fiscal 2009, with nine weeks left to go, pacings were down 40 percent.
Currently, Meredith expects fiscal fourth quarter earnings per share to range from $0.52 to $0.57. Full year fiscal 2009 earnings per share from continuing operations are expected to range from $2.00 to $2.05, excluding the special charge taken in the fiscal second quarter.
Meredith's average tax rate is expected to be approximately 40 percent in the fourth quarter, and 40 percent for the full fiscal 2009.
A number of uncertainties remain that may affect Meredith's outlook for results in the fourth 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 April 29, 2009, at 9:30 a.m. EDT (8:30 a.m. CDT) to discuss fiscal third quarter results. A live webcast will be accessible to the public on the company's Web site, 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 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 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 fourth 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 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. 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.
Meredith Corporation and Subsidiaries Consolidated Statements of Earnings (Unaudited) ------------- ------------ Three Months Nine Months ------------- ------------ Period Ended March 31, 2009 2008 2009 2008 ---------------------- ---- ---- ---- ---- (In thousands except per share data) Revenues Advertising $184,182 $225,367 $597,808 $708,082 Circulation 72,869 83,236 211,086 231,105 All other 80,543 83,675 254,054 236,986 --------- ------ ------ ------- ------- Total revenues 337,594 392,278 1,062,948 1,176,173 -------------- ------- ------- --------- --------- Operating expenses Production, distribution, and editorial 159,197 166,822 491,618 501,271 Selling, general, and administrative 124,323 135,638 421,523 435,962 Depreciation and amortization 10,714 11,852 32,346 35,986 ---------------- ------ ------ ------ ------ Total operating expenses 294,234 314,312 945,487 973,219 ------------------------ ------- ------- ------- ------- Income from operations 43,360 77,966 117,461 202,954 Interest income 121 250 348 898 Interest expense (4,911) (5,387) (15,698) (17,284) ---------------- ------ ------ ------- ------- Earnings from continuing operations before income taxes 38,570 72,829 102,111 186,568 Income taxes 13,696 26,647 40,766 72,157 ------------ ------ ------ ------ ------ Earnings from continuing operations 24,874 46,182 61,345 114,411 Income (loss) from discontinued operations, net of taxes 554 (98) (4,737) 1,102 ------------------- --- --- ------ ----- Net earnings $25,428 $46,084 $56,608 $115,513 ------------ ------- ------- ------- -------- Basic earnings per share Earnings from continuing operations $0.55 $0.99 $1.36 $2.42 Discontinued operations 0.01 - (0.11) 0.02 ----------------------- ---- - ----- ---- Basic earnings per share $0.56 $0.99 $1.25 $2.44 ------------------------ ----- ----- ----- ----- Basic average shares outstanding 44,961 46,672 45,051 47,251 -------------------- ------ ------ ------ ------ Diluted earnings per share Earnings from continuing operations $0.55 $0.97 $1.36 $2.38 Discontinued operations 0.01 - (0.11) 0.02 ----------------------- ---- - ----- ---- Diluted earnings per share $0.56 $0.97 $1.25 $2.40 ---------------- ----- ----- ----- ----- Diluted average shares outstanding 45,092 47,420 45,177 48,175 ---------------------- ------ ------ ------ ------ Dividends paid per share $0.225 $0.215 $0.655 $0.585 ------------------------ ------ ------ ------ ------ Meredith Corporation and Subsidiaries Segment Information - Unaudited ------------ ----------- Three Months Nine Months ------------ ----------- Period Ended March 31, 2009 2008 2009 2008 ------------------ ---- ---- ---- ---- (In thousands) Revenues Publishing $280,320 $314,732 $850,895 $936,439 Broadcasting Non-political advertising 51,778 74,016 178,143 231,676 Political advertising 245 1,432 23,121 3,940 Other revenues 5,251 2,098 10,789 4,118 ----------------- ----- ----- ------ ----- Total broadcasting 57,274 77,546 212,053 239,734 -------------------- ------ ------ ------- ------- Total revenues $337,594 $392,278 $1,062,948 $1,176,173 -------------- -------- -------- ---------- ---------- Operating profits Publishing $47,971 $64,309 $105,069 $163,513 Broadcasting 1,348 18,689 34,373 59,830 Unallocated corporate (5,959) (5,032) (21,981) (20,389) ----------- ------ ------ ------- ------- Income from operations $43,360 $77,966 $117,461 $202,954 ----------- ------- ------- -------- -------- Depreciation and amortization Publishing $3,789 $5,088 $11,843 $15,584 Broadcasting 6,471 6,262 18,988 18,969 Unallocated corporate 454 502 1,515 1,433 ----------- --- --- ----- ----- Total depreciation and amortization $10,714 $11,852 $32,346 $35,986 ------------------ ------- ------- ------- ------- EBITDA(1) Publishing $51,760 $69,397 $116,912 $179,097 Broadcasting 7,819 24,951 53,361 78,799 Unallocated corporate (5,505) (4,530) (20,466) (18,956) ----------- ------ ------ ------- ------- Total EBITDA(1) $54,074 $89,818 $149,807 $238,940 ------------ ------- ------- -------- -------- (1) EBITDA is earnings from continuing operations before interest, taxes, depreciation, and amortization. Meredith Corporation and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) ----------- ---------- March 31, June 30, Assets 2009 2008 ------ ---- ---- (In thousands) Current assets Cash and cash equivalents $74,396 $37,644 Accounts receivable, net 210,539 230,978 Inventories 31,629 44,085 Current portion of subscription acquisition costs 60,611 59,939 Current portion of broadcast rights 12,692 10,779 Other current assets 17,280 19,665 -------------------- ------ ------ Total current assets 407,147 403,090 -------------------- ------- ------- Property, plant, and equipment 453,568 446,935 Less accumulated depreciation (259,304) (247,147) ----------------------------- -------- -------- Net property, plant, and equipment 194,264 199,788 Subscription acquisition costs 59,234 60,958 Broadcast rights 5,614 7,826 Other assets 73,080 74,472 Intangible assets, net 774,913 781,154 Goodwill 531,191 532,332 -------- ------- ------- Total assets $2,045,443 $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 14,635 11,141 Accounts payable 63,940 79,028 Accrued expenses and other liabilities 91,968 102,707 Current portion of unearned subscription revenues 173,522 175,261 ---------------------------------------- ------- ------- Total current liabilities 474,065 443,137 Long-term debt 325,000 410,000 Long-term broadcast rights payable 13,709 17,186 Unearned subscription revenues 153,384 157,872 Deferred income taxes 174,469 139,598 Other noncurrent liabilities 103,626 103,972 ---------------------------- ------- ------- Total liabilities 1,244,253 1,271,765 ----------------- --------- --------- Shareholders' equity Common stock 35,850 36,295 Class B stock 9,149 9,181 Additional paid-in capital 52,522 52,693 Retained earnings 715,546 701,205 Accumulated other comprehensive loss (11,877) (11,519) ------------------------------------ ------- ------- Total shareholders' equity 801,190 787,855 -------------------------- ------- ------- Total liabilities and shareholders' equity $2,045,443 $2,059,620 ------------------------------------------ ---------- ---------- Meredith Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) --------------------------- ---- ---- Nine Months Ended March 31, 2009 2008 --------------------------- ---- ---- (In thousands) Net cash provided by operating activities $138,611 $206,371 ----------------------------------------- -------- -------- Cash flows from investing activities Acquisitions of businesses (6,118) (16,525) Additions to property, plant, and equipment (18,642) (15,412) Proceeds from dispositions of assets 636 - ------------------------------------ --- - Net cash used in investing activities (24,124) (31,937) -------------------------------------- ------- ------- Cash flows from financing activities Proceeds from issuance of long-term debt 120,000 120,000 Repayments of long-term debt (150,000) (150,000) Purchases of Company stock (21,763) (123,827) Dividends paid (29,573) (27,659) Proceeds from common stock issued 3,178 13,218 Excess tax benefits from share-based payments 673 205 Other (250) (113) ----- ---- ---- Net cash used in financing activities (77,735) (168,176) -------------------------------------- ------- -------- Net increase in cash and cash equivalents 36,752 6,258 Cash and cash equivalents at beginning of period 37,644 39,220 ----------------------------------------- ------ ------ Cash and cash equivalents at end of period $74,396 $45,478 ------------------------------------------ ------- ------- Meredith Corporation and Subsidiaries Table 1 Supplemental Disclosures Regarding Non-GAAP Financial Measures 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 March 31, 2009 Nine Months --------------------------- ------------ Excluding Special As Charge Special Charge Reported ----------------------- --------- -------------- --------- (In thousands except per share data) Revenues Advertising $597,808 $- $597,808 Circulation 211,086 - 211,086 All other 254,054 - 254,054 --------- ------- - ------- Total revenues 1,062,948 - 1,062,948 -------------- --------- - --------- Operating expenses Production, distribution, and editorial 491,618 - 491,618 Selling, general, and administrative 412,490 9,033 (a) 421,523 Depreciation and amortization 32,346 - 32,346 ----------------------------- ------ - ------ Total operating expenses 936,454 9,033 945,487 ------------------------ ------- ----- ------- Income from operations 126,494 (9,033) 117,461 Interest income 348 - 348 Interest expense (15,698) - (15,698) ---------------- ------- - ------- Earnings before income taxes 111,144 (9,033) 102,111 Income taxes 44,288 (3,522) 40,766 ------------ ------ ------ ------ Earnings from continuing operations 66,856 (5,511) 61,345 Loss from discontinued operations, net of taxes (613) (4,124) (b) (4,737) ------------------------- ---- ------ ------ Net earnings $66,243 $(9,635) $56,608 ------------ ------- ------- ------- Basic earnings per share Earnings from continuing operations $1.48 $(0.12) $1.36 Discontinued operations (0.02) (0.09) (0.11) ----------------------- ----- ----- ----- Basic earnings per share $1.46 $(0.21) $1.25 ------------------------ ----- ------ ----- Basic average shares outstanding 45,051 45,051 45,051 -------------------------------- ------ ------ ------ Diluted earnings per share Earnings from continuing operations $1.48 $(0.12) $1.36 Discontinued operations (0.02) (0.09) (0.11) ----------------------- ----- ----- ----- Diluted earnings per share $1.46 $(0.21) $1.25 -------------------------- ----- ------ ----- Diluted average shares outstanding 45,177 45,177 45,177 ---------------------- ------ ------ ------ Notes (a) Severance expense (b) Severance expense and the write-down of art and manuscript inventory and subscription acquisition costs, net of taxes Meredith Corporation and Subsidiaries Table 2 Segment Information (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 March 31, 2009 Nine Months --------------------------- ------------ Excluding Special Charge Special Charge As Reported ------------- --------- -------------- ----------- (In thousands) Revenues Publishing $850,895 $- $850,895 Broadcasting Non-political advertising 178,143 - 178,143 Political advertising 23,121 - 23,121 Other revenues 10,789 - 10,789 ----------------- ------ - ------ Total broadcasting 212,053 - 212,053 ------------------ ------- - ------- Total revenues $1,062,948 $- $1,062,948 -------------- ---------- -- ---------- Operating profit Publishing $111,109 $(6,040) (a) $105,069 Broadcasting 36,386 (2,013) (b) 34,373 Unallocated corporate (21,001) (980) (c) (21,981) ---------------------- ------- ---- ------- Income from operations $126,494 $(9,033) $117,461 ---------------------- -------- ------- -------- Depreciation and amortization Publishing $11,843 $- $11,843 Broadcasting 18,988 - 18,988 Unallocated corporate 1,515 - 1,515 ---------------------- ----- - ----- Total depreciation and amortization $32,346 $- $32,346 ---------------------- ------- -- ------- EBITDA(1) Publishing $122,952 $(6,040) $116,912 Broadcasting 55,374 (2,013) 53,361 Unallocated corporate (19,486) (980) (20,466) ---------------------- ------- ---- ------- Total EBITDA(1) $158,840 $(9,033) $149,807 ------------- -------- ------- -------- (1) EBITDA is earnings from continuing operations before interest, taxes, depreciation, and amortization. Notes (a) 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 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 March 31, 2009 --------------------------------- Unallocated Publishing Broadcasting Corporate Total ------------- ---------- ------------ ----------- ----- (In thousands) Revenues $280,320 $57,274 $- $337,594 -------- ------- -- -------- Operating profit $47,971 $1,348 $(5,959) $43,360 Depreciation and amortization 3,789 6,471 454 10,714 ----- ----- --- EBITDA $51,760 $7,819 $(5,505) 54,074 ------- ------ ------- Less: Depreciation and amortization (10,714) Net interest expense (4,790) Income taxes (13,696) ------- Earnings from continuing operations $24,874 ------- Segment EBITDA margin 18.5% 13.7% ---- ---- -------------------------------- Nine Months Ended March 31, 2009 -------------------------------- Unallocated Publishing Broadcasting Corporate Total ------------- ---------- ------------ ----------- ----- (In thousands) Revenues $850,895 $212,053 $- $1,062,948 -------- -------- -- ---------- Operating profit $105,069 $34,373 $(21,981) $117,461 Depreciation and amortization 11,843 18,988 1,515 32,346 ------ ------ ----- EBITDA $116,912 $53,361 $(20,466) 149,807 -------- ------- -------- Less: Depreciation and amortization (32,346) Net interest expense (15,350) Income taxes (40,766) ------- Earnings from continuing operations $61,345 ------- Segment EBITDA margin 13.7% 25.2% ---- ---- --------------------------------- Three Months Ended March 31, 2008 --------------------------------- Unallocated Publishing Broadcasting Corporate Total ------------- ---------- ------------ ----------- ----- (In thousands) Revenues $314,732 $77,546 $- $392,278 -------- ------- -- -------- Operating profit $64,309 $18,689 $(5,032) $77,966 Depreciation and amortization 5,088 6,262 502 11,852 ----- ----- --- EBITDA $69,397 $24,951 $(4,530) 89,818 ------- ------- ------- Less: Depreciation and amortization (11,852) Net interest expense (5,137) Income taxes (26,647) ------- Earnings from continuing operations $46,182 ------- Segment EBITDA margin 22.0% 32.2% -------------- ---- ---- Nine Months Ended March 31, 2008 -------------------------------- Unallocated Publishing Broadcasting Corporate Total ------------- ---------- ------------ ----------- ----- (In thousands) Revenues $936,439 $239,734 $- $1,176,173 -------- -------- -- ---------- Operating profit $163,513 $59,830 $(20,389) $202,954 Depreciation and amortization 15,584 18,969 1,433 35,986 ------ ------ ----- EBITDA $179,097 $78,799 $(18,956) 238,940 -------- ------- -------- Less: Depreciation and amortization (35,986) Net interest expense (16,386) Income taxes (72,157) ------- Earnings from continuing operations $114,411 -------- Segment EBITDA margin 19.1% 32.9% -------------- ---- ---- 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 Nine Months ------------ ----------- Period Ended March 31, 2009 2008 2009 2008 ----------------------- ---- ---- ---- ---- (In thousands) Free cash flow $32,131 $52,832 $75,049 $134,985 Depreciation and amortization (10,714) (11,852) (32,346) (35,986) Capital expenditures 3,457 5,202 18,642 15,412 -------------------- ----- ----- ------ ------ Earnings from continuing operations $24,874 $46,182 $61,345 $114,411 ---------------------- ------- ------- ------- --------
SOURCE: Meredith Corporation
Web site: http://www.meredith.com/