News Releases

Meredith Corporation Reports Fiscal 2012 Second Quarter Results

Local Media Non-Political Ad Revenue Gains 9 Percent, its Ninth-Straight Quarterly Increase

Purchase of Allrecipes.com Doubles Meredith's Digital Scale; Supports Total Shareholder Return Strategy

Jan 24, 2012
9:15am

DES MOINES, Iowa, Jan. 24, 2012 /PRNewswire/ -- Meredith Corporation (NYSE: MDP), the leading media and marketing company serving American women, today reported fiscal 2012 second quarter earnings per share of $0.70, compared to $0.88 in the year-ago period.  Revenues were $329 million, compared to $366 million. Meredith recorded $21 million, or $0.28 per share, less of political advertising revenues in the second quarter of fiscal 2012 than in the year-ago period, which is expected in an off-election year.

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"Our Local Media Group delivered an industry-leading 9 percent gain in non-political advertising revenues during the second quarter of fiscal 2012," said Meredith Chairman and Chief Executive Officer Stephen M. Lacy.  "While the advertising market remained challenging for our National Media Group, we're seeing an improving trend as we look to early calendar 2012, particularly in the food and home advertising categories."

Lacy noted Meredith's Total Shareholder Return financial strategy, announced on October 25, has been very well received by the investment community.  Key elements include (1) A 50 percent annual dividend increase to $1.53 from $1.02 per share that produced yields of 5 to 6 percent during the quarter; (2) A new $100 million share repurchase authorization; and (3) Ongoing strategic investments to drive incremental revenue and profit growth over time, such as today's announcement that Meredith would acquire Allrecipes.com from The Reader's Digest Association, Inc.

The addition of Allrecipes.com, the world's No. 1 digital food site, doubles the scale of the Meredith Women's Network in terms of both audience reach and revenues.  It also fulfills two of Meredith's previously stated criteria for strategic acquisitions: (1) National media brands that provide access to new audiences and advertising categories; and (2) Digital platforms that significantly increase scale.  With Allrecipes.com, the Meredith Women's Network will be the No. 1 premium owned and operated website in the Women's Lifestyle Category, according to the most recent comScore data. 

"Allrecipes.com significantly enhances our digital platform," Lacy said.  "It increases our relevance with a large and loyal group of consumers, and strengthens our position in the marketplace by connecting advertisers with an audience of 100 million consumers.  It fits perfectly with our Total Shareholder Return Strategy, adding strategic value to Meredith, and is expected to drive incremental growth in revenues, profit and free cash flow over time."

Lacy noted that Meredith has executed the following strategic initiatives since the start of fiscal 2012:

  • Acquisition of the popular FamilyFun and Every Day with Rachael Ray brands.
  • Launch of tablet editions of Meredith's national brands across the iPad, NOOK Color, Kindle Fire and Samsung Galaxy platforms.
  • Extension of Meredith's very successful brand licensing arrangement for its Better Homes and Gardens line of home and garden products with Walmart through 2016. 
  • Investment in Iris, a leading global marketing company, and the creation of the Meredith-Iris Global Network to serve the increasing global needs of domestic clients, and open doors to international clients.
  • Expansion of Meredith's daily syndicated The Better Show's reach to 150 markets across the country.

"I'm particularly pleased about the ongoing execution of our digital and video expansion strategy," said Lacy.  "We've grown our audience online and on television, and we're aggressively extending our brands across tablet and mobile platforms.  Digital and video are perfect complements to our leading portfolio of national brands – both for consumers and advertisers alike.  We will continue to extend our reach on these platforms, and the acquisition of Allrecipes.com is our latest initiative."

For the first six months of fiscal 2012, earnings per share were $1.18, compared to $1.45 in the year-ago period. Revenues were $657 million, compared to $709 million.  Meredith recorded $32 million, or $0.43 per share, less of political advertising revenues in the first six months of fiscal 2012 than in the year-ago period, which is expected in an off-election year.

OPERATING DETAIL

LOCAL MEDIA GROUP

Fiscal 2012 second quarter Local Media Group operating profit was $27 million, compared to $39 million in the year-ago period.   Total revenues were $84 million, compared to $97 million.  Meredith recorded $21 million less of political advertising revenue in the second quarter of fiscal 2012 than in the year ago period, which is expected in an off-election year.  Expenses declined 3 percent, helping drive an EBITDA margin of nearly 40 percent.

Looking more closely at non-political advertising performance in the second quarter of fiscal 2012, compared to the year-ago period:

  • Revenues rose 9 percent to $75 million, the ninth-consecutive quarter of year-over-year improvement.  Performance was strongest at Meredith's stations in Atlanta, Hartford, Las Vegas and Portland.
  • Automotive advertising revenues increased 15 percent, on top of 17 percent growth in the year-ago period.  Professional services, the second-largest category, grew 19 percent, also on top of 17 percent growth in the year-ago period.
  • Digital advertising revenues increased more than 50 percent.

"Once again we were able to drive industry-leading performance in non-political advertising revenues through our very strong connection to local viewers," Lacy said.  "It was the second-best performance for a non-political second quarter in Meredith's history, and November 2011 was one of our strongest rating books in the last decade.  Television continues to be the most powerful medium to deliver customers to local businesses and service providers."

Meredith television stations delivered very strong year-over-year ratings growth during the most recent November measurement period in the important adults ages 25 to 54 demographic.  Of note:

  • WGCL (CBS Atlanta) delivered double-digit ratings growth in morning, afternoon and evening news viewership.
  • KPHO (CBS Phoenix) delivered double-digit ratings growth in morning, afternoon and late news.
  • KPDX (FOX Portland) delivered double-digit ratings growth in morning, evening and late news.
  • KVVU (FOX Las Vegas) delivered double-digit ratings growth in afternoon, evening and late news.
  • WFSB (CBS Hartford) retained its No. 1 position in all news periods and day parts.

Other revenues grew 31 percent in the second quarter of fiscal 2012, driven primarily by Meredith's management of Peachtree TV (WPCH-TV) in Atlanta, which began on March 28, 2011.  Also, Meredith Video Studios posted solid revenue growth, driven in part by The Better Show, which aired its 1,000th episode during the quarter, and the creation of custom video content for corporate marketing clients including Kraft Foods and Kmart.

For the first six months of fiscal 2012, Local Media Group operating profit was $38 million, compared to $55 million in the year-ago period.  Revenues were $154 million, compared to $173 million. Meredith recorded $32 million less of political advertising revenues in the first six months of fiscal 2012 than in the year-ago period, which is expected in an off-election year.  Expenses declined 2 percent.

NATIONAL MEDIA GROUP

Fiscal 2012 second quarter National Media Group operating profit was $36 million, compared to $42 million in the year-ago period.  Revenues were $244 million, compared to $268 million. Expenses decreased 8 percent.

Fiscal 2012 second quarter advertising revenues were $107 million, compared to $122 million in the year-ago period.  Fiscal 2012 second-quarter weighted average net advertising revenues per magazine page increased 8 percent, due primarily to a change in mix and stronger pricing. 

The advertising declines were primarily related to food and consumer packaged goods producers – who have been particularly impacted by higher commodity prices – and pharmaceutical companies – who brought fewer new drugs to market.  Meredith over-indexes the industry by more than 2 to 1 in these two categories.

The home, non-prescription drug and financial services-related advertising categories each posted double-digit revenue growth during the second quarter of fiscal 2012, their second-consecutive quarter of year-over-year growth.

"We are seeing gains in food-related advertising in early calendar 2012, and we believe overall advertising performance will improve as calendar 2012 progresses," Lacy said.  "Our largest clients have had time to adjust to economic conditions, and our innovative Meredith Engagement Dividend – which guarantees marketers a return on their advertising investment in Meredith magazines – is gaining traction in the marketplace.  Magazine industry advertising as a whole has held up fairly well in calendar 2011, particularly in categories such as beauty and financial services, where we are expanding our efforts via multi-platform marketing programs."

Circulation revenues increased during the second quarter of fiscal 2012, driven by a gain in subscription revenues.  Online orders for print magazine subscriptions nearly doubled to more than 500,000 compared to the year-ago period, due primarily to more aggressive website and email marketing programs as well as efforts to shift to online billing and renewals.  Meredith is particularly focused on driving online subscriptions and paperless transactions because of cost saving and up-selling opportunities.

Meredith's brands continued their strong engagement with American consumers in the second quarter of fiscal 2012 compared to the prior-year period, as demonstrated by:

  • An increase in readership of Meredith's magazines, which stood at a record 113 million according to Fall 2011 data from Mediamark Research and Intelligence.
  • Strong traffic growth for Meredith's branded websites, as monthly unique visitors and page views rose more than 50 percent each to 20 million, and 450 million, respectively.  The multi-channel brand Recipe.com has grown to approximately 2 million monthly unique visitors in its first six months of operation.  The acquisition of Allrecipes.com will double the Meredith Women's Network's monthly unique visitors to 40 million.
  • Expansion of Meredith's electronic tablet issues and capabilities, including a strong presence on the newly launched Amazon Kindle Fire and Barnes & Noble NOOK Tablet, as well as product availability on the Apple iPad and NOOK Color devices.
  • More magazine's second annual television special was aired in 145 markets reaching 85 percent of U.S. television households.

Fiscal 2012 second quarter other revenues were $73 million, compared to $82 million in the year-ago period.  Results were primarily due to select clients within Meredith Xcelerated Marketing that scaled back programs for the same commodity-related reasons that impacted advertising results earlier in calendar 2011. Meredith Xcelerated Marketing's programs are typically long-term in nature, and its results typically lag shorter-term changes in economic conditions.

For the first six months of fiscal 2012, National Media Group operating profit was $72 million, compared to $82 million in the year-ago period.  Revenues were $503 million, compared to $535 million.  Expenses decreased 5 percent.  

OTHER FINANCIAL INFORMATION

For the trailing 12 month period ended December 31, 2011, Meredith:

  • Generated nearly $200 million in cash flow from operations.
  • Repurchased approximately 1.2 million shares of Company stock.
  • Maintained a conservative debt-to-EBITDA ratio of approximately 1 to 1.  The weighted average interest rate on Meredith's debt was 4.4 percent at December 31, 2011.

In addition, total Company expenses declined 7 percent in the second quarter of fiscal 2012, the sixth consecutive sequential quarter of year-over-year expense reductions.  For the first half of fiscal 2012, total Company expenses declined 4 percent, compared to the year-ago period.

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

Looking at the third quarter of fiscal 2012, compared to the year-ago period:

  • With two of three magazine issues closed, Meredith expects third quarter National Media Group advertising revenue performance to be flat to up in the low-single digits. 
  • With nine weeks remaining in the quarter, Local Media Group non-political advertising revenues are currently pacing up in the mid-single digits.

Meredith currently expects fiscal 2012 third quarter earnings per share to range from $0.65 to $0.70. Meredith expects fiscal 2012 earnings per share to range from $2.55 to $2.75.  Both estimates exclude the anticipated effects of the acquisition of Allrecipes.com, as noted in the press release that Meredith issued earlier today.

A number of uncertainties remain that may affect Meredith's outlook as stated in this press release for the third fiscal quarter and full year of fiscal 2012.  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 January 24, 2012 at 11 a.m. EST to discuss second quarter fiscal 2012 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 two weeks.  A transcript will be available within 48 hours of the call at www.meredith.com.

RATIONALE FOR USE AND ACCESS TO NON-GAAP RESULTS

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 they include certain contractual and non-discretionary expenditures.

Reconciliations of non-GAAP to GAAP measures are included in the attached tables.  The attached condensed 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 and its operations.  Statements in this announcement that are forward-looking include, but are not limited to, the statements regarding advertising revenues and investment spending, along with the Company's revenue and earnings per share outlook for the third fiscal quarter and full year fiscal 2012.

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, American Baby, Every Day with Rachael Ray and FamilyFun– 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, tablets, and video – to give consumers content they desire and to deliver the messages of its advertising and 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 Xcelerated Marketing has significantly added to its capabilities in recent years through the acquisition of cutting-edge companies in digital, mobile, social, healthcare, database, and international marketing.  Most recently, Meredith made a strategic investment in London-based Iris Worldwide, a leader in experiential marketing.

A hallmark of Meredith's business model and financial profile is its ability to consistently generate substantial free cash flow by leveraging the strength of its multi-platform portfolio.  Meredith is committed to increasing Total Shareholder Return through dividend payments, share repurchases and strategic business investments.  Meredith has paid a dividend for 64 straight years and increased its dividend for 18 consecutive years. 

Meredith Corporation and Subsidiaries

 

 

 

 

 

 

 

Condensed Consolidated Statements of Earnings (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months

 

Six Months

Periods Ended December 31,

2011

 

2010

 

2011

 

2010

(In thousands except per share data)

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

Advertising

$ 183,636

 

$ 213,755

 

$ 367,953

 

$ 418,580

Circulation

63,902

 

63,737

 

130,491

 

129,677

All other

81,179

 

88,441

 

158,182

 

160,416

Total revenues

328,717

 

365,933

 

656,626

 

708,673

Operating expenses

 

 

 

 

 

 

 

Production, distribution, and editorial

128,412

 

137,251

 

265,303

 

280,092

Selling, general, and administrative

134,940

 

148,506

 

277,905

 

290,438

Depreciation and amortization

10,505

 

9,663

 

20,337

 

19,448

Total operating expenses

273,857

 

295,420

 

563,545

 

589,978

Income from operations

54,860

 

70,513

 

93,081

 

118,695

Interest expense, net

(2,897)

 

(3,351)

 

(5,616)

 

(6,862)

Earnings from continuing operations before income taxes

51,963

 

67,162

 

87,465

 

111,833

Income taxes

(20,369)

 

(26,065)

 

(34,244)

 

(44,674)

Earnings from continuing operations

31,594

 

41,097

 

53,221

 

67,159

Loss from discontinued operations, net of taxes

-

 

(540)

 

-

 

(895)

Net earnings

$ 31,594

 

$ 40,557

 

$ 53,221

 

$ 66,264

 

 

 

 

 

 

 

 

Basic earnings per share

 

 

 

 

 

 

 

Earnings from continuing operations

$ 0.70

 

$ 0.90

 

$ 1.18

 

$ 1.48

Discontinued operations

-

 

(0.01)

 

-

 

(0.02)

Basic earnings per share

$ 0.70

 

$ 0.89

 

$ 1.18

 

$ 1.46

Basic average shares outstanding

44,838

 

45,571

 

44,923

 

45,527

 

 

 

 

 

 

 

 

Diluted earnings per share

 

 

 

 

 

 

 

Earnings from continuing operations

$ 0.70

 

$ 0.89

 

$ 1.18

 

$ 1.47

Discontinued operations

-

 

(0.01)

 

-

 

(0.02)

Diluted earnings per share

$ 0.70

 

$ 0.88

 

$ 1.18

 

$ 1.45

Diluted average shares outstanding

45,044

 

45,912

 

45,115

 

45,849

 

 

 

 

 

 

 

 

Dividends paid per share

$ 0.3825

 

$ 0.2300

 

$ 0.6375

 

$ 0.4600

Meredith Corporation and Subsidiaries

 

 

 

 

 

 

Segment Information (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months

 

Six Months

Periods Ended December 31,

2011

 

2010

 

2011

 

2010

(In thousands)

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

National media group

 

 

 

 

 

 

 

 Advertising

$ 107,180

 

$ 122,352

 

$ 231,637

 

$ 257,854

 Circulation

63,902

 

63,737

 

130,491

 

129,677

 Other revenues

73,233

 

82,394

 

140,799

 

147,667

 

Total national media group

244,315

 

268,483

 

502,927

 

535,198

Local media group

 

 

 

 

 

 

 

 Non-political advertising

75,382

 

69,376

 

134,659

 

127,124

 Political advertising

1,074

 

22,027

 

1,657

 

33,602

 Other revenues

7,946

 

6,047

 

17,383

 

12,749

 

Total local media group

84,402

 

97,450

 

153,699

 

173,475

Total revenues

$ 328,717

 

$ 365,933

 

$ 656,626

 

$ 708,673

 

 

 

 

 

 

 

 

 

Operating profit

 

 

 

 

 

 

 

National media group

$ 35,797

 

$ 42,200

 

$ 71,801

 

$ 81,830

Local media group

27,156

 

38,549

 

38,213

 

55,277

Unallocated corporate

(8,093)

 

(10,236)

 

(16,933)

 

(18,412)

Income from operations

$ 54,860

 

$ 70,513

 

$ 93,081

 

$ 118,695

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

National media group

$ 3,832

 

$ 3,337

 

$ 7,193

 

$ 6,689

Local media group

6,175

 

5,816

 

12,164

 

11,744

Unallocated corporate

498

 

510

 

980

 

1,015

Total depreciation and amortization

$ 10,505

 

$ 9,663

 

$ 20,337

 

$ 19,448

 

 

 

 

 

 

 

 

 

EBITDA(1)

 

 

 

 

 

 

 

National media group

$ 39,629

 

$ 45,537

 

$ 78,994

 

$ 88,519

Local media group

33,331

 

44,365

 

50,377

 

67,021

Unallocated corporate

(7,595)

 

(9,726)

 

(15,953)

 

(17,397)

Total EBITDA(1)

$ 65,365

 

$ 80,176

 

$ 113,418

 

$ 138,143

 

 

 

 

 

 

 

 

 

(1) EBITDA is earnings from continuing operations before interest, taxes, depreciation, and amortization.

Meredith Corporation and Subsidiaries

 

 

 

Condensed Consolidated Balance Sheets (Unaudited)

 

 

 

 

 

 

 

 

December 31,

 

June 30,

Assets

2011

 

2011

(In thousands)

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$ 26,118

 

$ 27,721

Accounts receivable, net

210,126

 

212,365

Inventories

21,107

 

21,529

Current portion of subscription acquisition costs

56,410

 

54,581

Current portion of broadcast rights

7,870

 

3,974

Other current assets

21,987

 

13,568

Total current assets

343,618

 

333,738

Property, plant, and equipment

458,583

 

459,257

Less accumulated depreciation

(260,660)

 

(272,819)

Net property, plant, and equipment

197,923

 

186,438

Subscription acquisition costs

65,947

 

54,286

Broadcast rights

1,655

 

1,292

Other assets

75,039

 

66,940

Intangible assets, net

554,866

 

545,101

Goodwill

566,894

 

525,034

Total assets

$ 1,805,942

 

$ 1,712,829

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

Current liabilities

 

 

 

Current portion of long-term debt

$ 50,000

 

$ 50,000

Current portion of long-term broadcast rights payable

10,942

 

8,548

Accounts payable

52,882

 

82,878

Accrued expenses and other liabilities

106,420

 

115,735

Current portion of unearned subscription revenues

166,841

 

151,831

Total current liabilities

387,085

 

408,992

Long-term debt

200,000

 

145,000

Long-term broadcast rights payable

5,937

 

5,431

Unearned subscription revenues

143,330

 

120,024

Deferred income taxes

176,853

 

160,709

Other noncurrent liabilities

99,674

 

97,688

Total liabilities

1,012,879

 

937,844

Shareholders' equity

 

 

 

Common stock

36,049

 

36,282

Class B stock

8,740

 

8,776

Additional paid-in capital

51,666

 

58,274

Retained earnings

712,315

 

687,816

Accumulated other comprehensive loss

(15,707)

 

(16,163)

Total shareholders' equity

793,063

 

774,985

Total liabilities and shareholders' equity

$ 1,805,942

 

$ 1,712,829

Meredith Corporation and Subsidiaries

 

 

 

Condensed Consolidated Statements of Cash Flows (Unaudited)

 

 

 

 

 

 

 

 

 

 

Six Months Ended December 31,

2011

 

2010

(In thousands)

 

 

 

Net cash provided by operating activities

$ 68,747

 

$ 84,524

 

 

 

 

Cash flows from investing activities

 

 

 

 Acquisitions of businesses

(55,548)

 

(28,556)

 Additions to property, plant, and equipment

(26,621)

 

(11,168)

 Other

(1,563)

 

-

Net cash used in investing activities

(83,732)

 

(39,724)

 

 

 

 

Cash flows from financing activities

 

 

 

 Proceeds from issuance of long-term debt

85,000

 

12,500

 Repayments of long-term debt

(30,000)

 

(67,500)

 Purchases of Company stock

(15,311)

 

(6,030)

 Dividends paid

(28,722)

 

(21,017)

 Proceeds from common stock issued

2,332

 

6,622

 Excess tax benefits from share-based payments

83

 

317

 Other

-

 

(51)

Net cash provided by (used in) financing activities

13,382

 

(75,159)

Net decrease in cash and cash equivalents

(1,603)

 

(30,359)

Cash and cash equivalents at beginning of period

27,721

 

48,574

Cash and cash equivalents at end of period

$ 26,118

 

$ 18,215

Meredith Corporation and Subsidiaries

 

 

 

 

 

 

Table 1

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 December 31, 2011

 

Six Months Ended December 31, 2011

 

National
Media

Local
Media

Unallocated Corporate

Total

 

National
Media

Local
Media

Unallocated Corporate

Total

(In thousands)

 

 

 

 

 

 

 

 

 

Revenues

$ 244,315

$ 84,402

$ -

$ 328,717

 

$ 502,927

$ 153,699

$ -

$ 656,626

 

 

 

 

 

 

 

 

 

 

Operating profit

$ 35,797

$ 27,156

$ (8,093)

$ 54,860

 

$ 71,801

$ 38,213

$ (16,933)

$ 93,081

Depreciation and amortization

3,832

6,175

498

10,505

 

7,193

12,164

980

20,337

EBITDA

$ 39,629

$ 33,331

$ (7,595)

65,365

 

$ 78,994

$ 50,377

$ (15,953)

113,418

Less:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

(10,505)

 

 

 

 

(20,337)

Net interest expense

 

 

 

(2,897)

 

 

 

 

(5,616)

Income taxes

 

 

 

(20,369)

 

 

 

 

(34,244)

Earnings from continuing operations

 

 

$ 31,594

 

 

 

 

$ 53,221

 

 

 

 

 

 

 

 

 

 

Segment EBITDA margin

16.2%

39.5%

 

 

 

15.7%

32.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2010

 

Six Months Ended December 31, 2010

 

National
Media

Local
Media

Unallocated Corporate

Total

 

National
Media

Local
Media

Unallocated Corporate

Total

(In thousands)

 

 

 

 

 

 

 

 

 

Revenues

$ 268,483

$ 97,450

$ -

$ 365,933

 

$ 535,198

$ 173,475

$ -

$ 708,673

 

 

 

 

 

 

 

 

 

 

Operating profit

$ 42,200

$ 38,549

$ (10,236)

$ 70,513

 

$ 81,830

$ 55,277

$ (18,412)

$ 118,695

Depreciation and amortization

3,337

5,816

510

9,663

 

6,689

11,744

1,015

19,448

EBITDA

$ 45,537

$ 44,365

$ (9,726)

80,176

 

$ 88,519

$ 67,021

$ (17,397)

138,143

Less:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

(9,663)

 

 

 

 

(19,448)

Net interest expense

 

 

 

(3,351)

 

 

 

 

(6,862)

Income taxes

 

 

 

(26,065)

 

 

 

 

(44,674)

Earnings from continuing operations

 

 

$ 41,097

 

 

 

 

$ 67,159

 

 

 

 

 

 

 

 

 

 

Segment EBITDA margin

17.0%

45.5%

 

 

 

16.5%

38.6%

 

 



 

SOURCE Meredith Corporation

For further information: CONTACT: Shareholder/Financial Analyst, Mike Lovell, Director of Investor Relations,+1-515-284-3622, Mike.Lovell@Meredith.com, or Media, Art Slusark, Vice President/Corporate Communications, +1-515-284-3404, Art.Slusark@Meredith.com