The company I was looking at was The Maridith Corporation attached is the information I could find.

EX-99 2 fy11q1ex99er.htm EXH 99 - PRESS RELEASE FY11 Q1 MEREDITH REPORTS STRONG FISCAL 2011 FIRST QUARTER EARNINGS GROWTH Television and digital advertising revenue growth drives earnings per share increase of 40 percent DES MOINES, IA (October 26, 2010) - Meredith Corporation (NYSE: MDP), the leading media and marketing company serving American women, today reported that fiscal 2011 first quarter earnings per share increased 40 percent to $0.56, compared to $0.40 in the year-ago period. Revenues rose 4 percent to $344 million. Fiscal 2011 first quarter highlights included: A 7 percent increase in total Company advertising revenues; Television spot advertising revenue growth of 27 percent, including $12 million in net political advertising and an 8 percent increase in non-political advertising; Higher magazine net advertising revenues per page, and more than 20 percent growth in online revenues across Meredith's national websites; Strong revenue growth from businesses not dependent on advertising including Meredith Integrated Marketing (+7 percent) and Brand Licensing (+17 percent); and A decline in total Company expenses, even with increased investment in emerging media platforms, including mobile and eTablets. \"We're off to a great start in fiscal 2011, with first quarter profit growth of 40 percent driven by record demand for political advertising, as well as strong non-political advertising growth at our Local Media Group properties,\" said Meredith Chairman and Chief Executive Officer Stephen M. Lacy. \"At the same time, our National Media Group increased magazine advertising rates per page, grew digital advertising revenues, and posted strong revenue growth in businesses not dependent on advertising. We also reduced total company expenses 1 percent, on top of an 8 percent decline in the year-ago period.\" OPERATING DETAIL LOCAL MEDIA GROUP Fiscal 2011 first quarter Local Media Group operating profit rose significantly to $17 million from $2 million in the year-ago period. Revenues rose 25 percent to $76 million. Looking more closely at advertising performance in the first quarter of fiscal 2011: Political advertising revenues were $12 million, a record high for a Meredith fiscal first quarter, led by strong political spending in the Hartford, Las Vegas and Nashville markets. Non-political revenues rose 8 percent to $58 million. Performance was particularly strong at Meredith's stations in Hartford, Phoenix and Las Vegas. Eight of Meredith's 10-largest non-political advertising categories grew revenues, led by automotive, retail and media-related advertisers. \"At Meredith, we continue to deliver strong advertising revenue growth, including the development and successful execution of innovative sales programs targeting non-traditional local television advertisers,\" Lacy said. \"Local broadcast television remains the most effective way for advertisers to efficiently reach large consumer audiences and drive them to retail.\" Meredith delivered strong ratings during the most recent July measurement period. Of note, Meredith's: CBS affiliate in Hartford was once again No. 1 in all newscasts, as well as sign-on to sign-off. NBC affiliate in Nashville was No. 2 in both late news and sign-on to sign-off, and also posted growth in morning news. CBS affiliates in Atlanta and Phoenix, and Fox affiliates in Greenville and Las Vegas, all grew evening news viewers. Meredith Video Studios fiscal 2011 first quarter revenues also grew as the daily Better syndicated television show increased its carriage to approximately 80 markets reaching nearly 60 percent of U.S. TV households. In November, Better will launch on KCAL in Los Angeles - the nation's second-largest television market - giving the show a presence in four of the top five markets in the country. NATIONAL MEDIA GROUP Fiscal 2011 first quarter National Media Group operating profit rose slightly from the year-ago period to $39 million. Revenues were $268 million, compared to $272 million in the year-ago period. Looking more closely at fiscal 2011 first quarter advertising performance: Total advertising revenues were $136 million, approximately even with the year-ago period, on higher net advertising revenue per magazine page. Meredith was cycling against its strongest quarter of industry outperformance (nearly 30 percentage points) in the prior-year period, according to Publishers Information Bureau data. Online advertising revenues increased 21 percent, led by growth in the pharmaceutical, consumer packaged goods and retail categories. Circulation revenues declined 4 percent in the first quarter of fiscal 2011, as expected, due primarily to Meredith's strategic decision in January 2010 to reposition its Special Interest Media business. Special Interest Media profit increased significantly in the quarter over the year-ago period as a result of the repositioning. Meredith continued to expand its consumer connection during the first quarter of fiscal 2011 as demonstrated by: Audience gains for Meredith's measured magazines, up 3 percent according to the most recent data from Mediamark Research and Intelligence. It currently stands at 113 million readers. Traffic to Meredith's digital properties. Monthly average unique visitors across Meredith's National Media websites were 16 million and monthly page views averaged 200 million. Monthly unique visitors from mobile devices to the new Better Homes and Gardens, Parents and Fitness mobile sites combined averaged nearly 1 million during the first full quarter of operation, while page views averaged approximately 6 million. Continued expansion of the Better Homes and Gardens-branded line of home products sold at Walmart. Today, the program encompasses approximately 2,500 SKUs, up from approximately 1,500 in the year-ago period. A new line of high-quality cookware and small appliances debuted earlier this month. Meredith Integrated Marketing's fiscal 2011 first quarter revenues rose 7 percent. Growth was driven by a cross-platform approach incorporating content development, CRM, digital and social capabilities for new and existing clients, including Lowe's, SunTrust Bank and Chrysler. \"The relevance of our national brands to consumers and marketers alike continues to increase,\" Lacy said. \"We remain focused on growing our already very strong connection to American women across multiple platforms - including print, online, mobile, social, events and licensed products sold at retail - and providing clients with innovative marketing solutions to reach their target audiences.\" National Media Group fiscal 2011 first quarter operating expenses declined 2 percent as efforts to improve efficiencies continued to be realized. OTHER FINANCIAL INFORMATION Meredith generated $27 million in cash flow from operations and reduced its total debt to $285 million during the first quarter of fiscal 2011. The weighted average interest rate on Meredith's debt was 4.7 percent, and its debt-to-EBITDA ratio was 1.1 to 1 at Sept. 30, 2010. 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 Meredith expects fiscal 2011 second quarter earnings per share to range from $0.75 to $0.80. Looking more closely at the second quarter of fiscal 2011 compared to the year-ago period: Total Company advertising revenues are expected to increase in the low double digits. Local Media Group non-political advertising revenues are expected to increase in the low- to mid-single digit range. The Company expects net political advertising revenues to range from $15-$18 million. Depending on the strength of political advertising and its related impact on total advertising inventory, non-political advertising results may differ from management's current expectations. National Media Group advertising revenues are expected to increase in the low- to midsingle digit range. Meredith expects fiscal 2011 full year earnings per share will range from $2.50 to $2.75. Looking more closely at full year fiscal 2011: Meredith continues to face a volatile advertising environment impacted by the uncertain economic climate. The Company expects high-single-digit increases in paper prices, and modest increases in postal rates. Meredith continues to expect investment spending of approximately $5-6 million related to the development of the eTablet platform. A number of uncertainties remain that may affect Meredith's outlook as stated in this press release for the second fiscal quarter and full year of fiscal 2011. These uncertainties are referenced below under \"Safe Harbor\" and in certain filings with the U.S. Securities and Exchange Commission. CONFERENCE CALL WEBCAST Meredith will host a conference call on October 26, 2010 at 11:00 a.m. EDT to discuss first quarter fiscal 2011 results. A live webcast will be accessible to the public on the Company's website, www.meredith.com, and a replay will be available for one week. A transcript will be available within 48 hours of the 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 is a common supplemental measure of performance used by investors and financial analysts. Management believes that EBITDA provides an additional analytical tool to clarify the Company's results from core operations and delineate underlying trends. Meredith does not use EBITDA as a measure of liquidity or funds available for management's discretionary use because it includes certain contractual and non-discretionary expenditures. Reconciliations of non-GAAP to GAAP measures are included in the attached table. The attached condensed consolidated financial statements and reconciliation table will be made available at www.meredith.com. SAFE HARBOR This release contains 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 and its operations. Statements in this announcement that are forwardlooking include, but are not limited to, the statements regarding advertising revenues, paper and postage costs and investment spending, along with the Company's earnings per share outlook for the second fiscal quarter and full year fiscal 2011. 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, syndicated programming or other 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 (NYSE: MDP; www.meredith.com) is the leading media and marketing company serving American women. Meredith features multiple well-known national brands including Better Homes and Gardens, Parents, Family Circle, Ladies' Home Journal, Fitness, More and American Baby - along 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. Meredith has significantly added to its capabilities in this area through the acquisition of cuttingedge companies in areas such as digital, mobile, word-of-mouth, social and database marketing. -- # # # # -- Shareholder/Financial Analyst Contact: Mike Lovell Director of Investor Relations Phone: (515) 284-3622 E-mail: Mike.Lovell@Meredith.com Media Contact: Art Slusark Vice President/Corporate Communications Phone: (515) 284-3404 E-mail: Art.Slusark@Meredith.com Meredith Corporation and Subsidiaries Condensed Consolidated Statements of Earnings (Unaudited) Three Months Ended September 30, 2010 2009 (In thousands except per share data) Revenues Advertising Circulation All other Total revenues Operating expenses Production, distribution, and editorial Selling, general, and administrati ve Depreciatio n and amortizatio n Total operating expenses Income from operations Interest income Interest expense Earnings before income taxes $ 205,503 66,928 71,991 69,879 70,720 344,422 332,415 143,633 151,093 143,402 139,637 9,787 10,103 296,822 300,833 47,600 31,582 11 10 (3,522) (5,041) 44,089 26,551 $ 191,816 Income taxes Net earnings (18,382) (8,210) $ 25,707 18,341 $ 0.57 $ 0.41 $ 0.56 $ 0.40 $ Basic earnings per share Basic average shares outstanding 45,483 $ 0.230 $ 0.225 45,158 Diluted earnings per share Diluted average shares outstanding 45,748 45,317 Dividends paid per share Meredith Corporation and Subsidiaries Segment Information (Unaudited) Three Months Ended September 30, 2010 (In thousands) Revenues National media group Advertising $ Circulation 66,928 Other revenues 65,289 Total national media group 268,397 Local media group Nonpolitical advertising 57,748 Political advertising 11,575 Other revenues 6,702 136,180 $ 69,879 64,523 271,604 53,671 943 6,197 137,202 2009 Total local media group Total revenues $ 76,025 60,811 344,422 Operating profit National media group $ Local media group 16,728 Unallocated corporate (8,176) Income from operations $ $ 332,415 39,048 $ 38,593 2,400 (9,411) 47,600 Depreciation and amortization National media group $ 3,354 Local media group 5,928 Unallocated corporate 505 Total depreciatio n and amortizati on $ 9,787 EBITDA National media group $ Local media group Unallocated corporate Total EBITDA $ $ 31,582 $ 3,507 6,122 474 $ 10,103 $ 42,100 1 1 1 42,402 22,656 8,522 (7,671) (8,937) 57,387 $ EBITDA is net earnings before interest, taxes, depreciation, and amortization. 41,685 Meredith Corporation and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) Assets September 30, 2010 (In thousands) Current assets Cash and cash equivalents Accounts receivable, net Inventories Current portion of subscription acquisition costs Current portion of broadcast rights Other current assets Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Subscription acquisition costs Broadcast rights Other assets Intangible assets, net June 30, 2010 $ 231,960 25,100 223,630 26,807 57,607 57,917 14,985 5,423 16,746 19,076 368,061 381,427 451,103 450,966 (268,275) (263,964) 182,828 187,002 53,749 55,228 2,454 53,074 2,977 59,138 556,022 552,210 21,663 $ 48,574 Goodwill Total assets 498,388 489,334 $ 1,714,576 $ 1,727,316 $ 50,000 $ 50,000 Liabilities and Sharehol ders' Equity Current liabilities Current portion of long-term debt Current portion of long-term broadcast rights payable 18,849 Accounts payable 68,645 Accrued expenses and other liabilities 113,658 Current portion of unearned subscription revenues 161,199 Total current liabilities 412,351 Long-term debt 235,000 Long-term broadcast rights payable 8,591 Unearned subscription revenues 126,451 Deferred income taxes 122,008 Other noncurrent liabilities 104,479 Total liabilities 1,008,880 Shareholde rs' equity Common stock 36,492 Class B stock 9,064 9,892 109,897 109,225 159,292 438,306 250,000 8,961 130,699 114,240 96,765 1,038,971 36,329 9,086 Additional paid-in capital 67,660 Retained earnings 619,828 Accumulate d other comprehensi ve loss (27,348) Total shareholder s' equity 705,696 Total liabilities and shareholders' equity 66,311 604,624 (28,005) 688,345 $ 1,714,576 $ 1,727,316 Meredith Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended September 30, 2010 2009 (In thousands) Net cash provided by operating activities Cash flows from investing activities Acquisition s of businesses Additions to property, plant, and equipment Net cash used in investing activities Cash flows from financing $ 27,122 (25,020) (5,124) (2,910) (8,101) (27,930) (13,225) $ 29,043 activities Proceeds from issuance of long-term debt 12,500 Repayment s of longterm debt (27,500) Purchases of Company stock (5,523) Dividends paid (10,503) Proceeds from common stock issued 4,746 Excess tax benefits from sharebased payments 228 Other (51) Net cash used in financing activities (26,103) Net decrease in cash and cash equivalents (26,911) Cash and cash equivalents at beginning of period 48,574 Cash and cash equivalents at end of period 75,000 (95,000) (18) (10,209) 713 67 (22) (29,469) (13,651) 27,910 $ 21,663 $ 14,259 Table 1 Meredith Corporation and Subsidiaries Supplemental Disclosures Regarding Non-GAAP Financial Measures EBITDA Consolidated EBITDA, which is reconciled to net earnings in the following tables, is defined as net earnings from continuing operations before interest, taxes, depreciation, and amortization. Segment EBITDA is a measure of segment earnings before depreciation and amortization. Nation al Media Three Months Ended September 30, 2010 Unallo cated Corpo rate Total Local Media (In thousa nds) Reve nues $ 268,3 97 Oper ating 39,04 profit $ 8 Depr eciati on and amort izatio n 3,354 EBIT 42,40 DA $ 2 Less: Depr eciati on and amort izatio n Net intere st expen se $ 76,02 5 $ $ 16,72 8 $ $ 5,928 $ 505 22,65 6 (9,78 7) (3,51 1) $ 344,4 22 (8,17 6) $ 47,60 0 9,787 (7,67 1) 57,38 7 Inco me taxes Net earni ngs (18,3 82) $ 25,70 7 Segment EBITDA margin Nation al Media 15.8% 29.8% Three Months Ended September 30, 2009 Unallo cated Corpo rate Total Local Media (In thousa nds) Reve nues $ 271,6 04 Oper ating 38,59 profit $ 3 Depr eciati on and amort izatio n 3,507 EBIT 42,10 DA $ 0 Less: Depr eciati on and amort izatio n Net intere st expen se Inco me $ $ 60,81 1 $ 332,4 15 $ (9,41 1) $ 31,58 2 $ 2,400 6,122 $ 10,10 3 (8,93 7) 41,68 5 $ 474 8,522 (10,1 03) (5,03 1) (8,21) 0 taxes Net earni ngs Segment EBITDA margin $ 18,34 1 15.5% 14.0%