Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 14, 2003
THE E.W. SCRIPPS COMPANY
(Exact name of registrant as specified in its charter)
Commission File Number 0-16914
| Ohio | 31-1223339 | |
| (State or other jurisdiction of | (I.R.S. Employer | |
| incorporation or organization) | Identification Number) |
| 312 Walnut Street Cincinnati, Ohio |
45202 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (513) 977-3000
Not Applicable
(Former name or former address, if changed since last report)
Table of Contents
THE E.W. SCRIPPS COMPANY
INDEX TO CURRENT REPORT ON FORM 8-K DATED OCTOBER 14, 2003
| Item No. |
Page | |||
| 7. | Financial Statements, Pro Forma Financial Information and Exhibits | 3 | ||
| 12. | Results of Operations and Financial Condition | 3 | ||
Table of Contents
| Item 7. | Financial Statements, Pro Forma Financial Information and Exhibits |
| (c) | Exhibits |
99 Press release dated October 14, 2003.
| Item 12. | Results of Operations and Financial Condition |
On October 14, 2003 we released information regarding results of operations for the quarter ended September 30, 2003. A copy of the press release is filed as Exhibit 99.
The discussion and the information contained in the press release contain certain forward-looking statements that are based on our current expectations. Forward-looking statements are subject to certain risks, trends, and uncertainties that could cause actual results to differ materially from the expectations expressed in the forward-looking statements. Such risks, trends and uncertainties, which in most instances are beyond our control, include changes in advertising demand and other economic conditions; consumers’ taste; newsprint prices; program costs; labor relations; technological developments; competitive pressures; interest rates; regulatory rulings; and reliance on third-party vendors for various products and services. The words “believe,” “expect,” anticipate,” “estimate,” “intend,” and similar expressions identify forward-looking statements. All forward-looking statements, which are as of the date of this filing, should be evaluated with the understanding of their inherent uncertainty.
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| THE E.W. SCRIPPS COMPANY | ||
| BY: |
/s/ JOSEPH G. NECASTRO | |
| Joseph G. NeCastro | ||
| Senior Vice President and Chief Financial Officer | ||
Dated: October 14, 2003
Exhibit 99
| THE E.W. SCRIPPS COMPANY P.O. BOX 5380 CINCINNATI, OHIO 45201 |
COMMUNICATIONS AND INVESTOR RELATIONS |
PHONE (513) 977-3825 FAX (513) 977-3721 | ||
| 312 WALNUT STREET, SUITE 2800 CINCINNATI, OHIO 45202 |
||||
 |
NEWS RELEASE | |||
Scripps reports third quarter results
| For immediate release |
(NYSE: SSP) | |
| Oct. 14, 2003 |
CINCINNATI—The E. W. Scripps Company today reported third quarter financial results which reflected continued strong performance at Home & Garden Television and Food Network.
Net income for the three-month period ended Sept. 30 was $51.9 million compared to $45.7 million for the same period a year ago. Third quarter earnings per share were 64 cents compared to 57 cents in the third quarter of 2002. Net income for the third quarter of 2002 included a write down of investments that lowered reported earnings by 8 cents per share.
At the company’s fastest growing business unit, Scripps Networks, third quarter segment profits increased 35 percent to $40.3 million. Scripps Networks revenues increased 25 percent to $122 million for the three-month period. Scripps Networks includes the company’s portfolio of growing cable and satellite television networks, Home & Garden Television, Food Network, DIY—Do It Yourself Network and Fine Living.
DIY and Fine Living, the company’s developing networks, now reach about 23 million and 19 million U.S. households, respectively. Programming from all of the company’s networks can be viewed on-demand on cable television systems in about 63 U.S. markets. Home & Garden Television and Food Network—the company’s flagship national networks—can be viewed in about 83 million and 82 million U.S. television households, respectively.
At the company’s newspapers, third quarter revenues of $164 million and segment profits of $60.9 million were about even with the same period in 2002. Newspaper division segment profits for the quarter included $2.4 million from the joint newspaper operations in Denver compared to about $1.0 million in the same period a year ago. Higher newsprint prices and continued weakness in local retail and help wanted advertising held back segment profits during the quarter.
1
Segment profits at the company’s broadcast television stations were down 9.3 percent to $18.7 million in the third quarter due primarily to the relative absence of political advertising and the loss of revenue tied to the power blackout in Detroit and Cleveland. Broadcast television revenues were down about 1.0 percent during the period to $72.3 million. Third quarter television revenues included $1.0 million in political advertising compared to $5.5 million in the same period a year ago.
“Strong performances by our flagship networks enabled the company to deliver solid third quarter results,” said Kenneth W. Lowe, president and chief executive officer for Scripps. “HGTV and Food Network each reported double-digit revenue and profit growth, reflecting their growing popularity and their increased value to advertisers who, more and more, are turning to targeted networks like ours to reach consumers.”
“We’ve also succeeded in raising the profile of our newer networks, gaining valuable distribution for DIY and Fine Living,” Lowe said. “DIY’s household distribution is up about 21 percent sequentially from the second quarter. At Fine Living, we’re quickly approaching 20 million households, which is quite an achievement for a network that’s just 18 months old. Deploying capital for the internal development of all of these growing media businesses continues to be our top priority at Scripps.”
“In addition to the stellar performance at Scripps Networks, our broadcast television stations came close to replacing all of the political advertising revenue from last year, a remarkable accomplishment in this difficult environment,” Lowe said. “Our focus on developing revenue from non-traditional advertisers in all of our TV markets is paying meaningful dividends.”
“Stubborn weakness in local retail and help wanted advertising coupled with higher newsprint prices continued to hold back profits in our newspaper group. The company’s third quarter results benefited from our newspaper partnership in Denver, where the improved results continue to be a function of the efficiencies we’ve achieved by combining the business and production operations of our Rocky Mountain News and MediaNews Group’s Denver Post. However, the prolonged slowdown in Denver’s local economy continues to hold back ad revenue growth.”
Here are third quarter operating results by segment:
Newspapers
Newspaper segment profits were $60.9 million, up 0.3 percent.
Newspaper advertising revenue was $128 million, up 1.1 percent. Broken down by category:
| • | Local retail decreased 4.4 percent to $37.5 million. |
| • | Classified was flat at $51.9 million. |
| • | National increased 12 percent to $9.5 million. |
2
| • | Preprint and other increased 7.7 percent to $29.3 million. |
Circulation revenues were $32.3 million, down 3.6 percent.
Newsprint expenses increased about 10 percent on an 11 percent increase in newsprint prices.
Scripps Networks
Scripps Networks segment profits were $40.3 million, up from $29.9 million in the prior year period.
Scripps Networks advertising revenue increased 29 percent to $96.6 million. Affiliate fee revenue was $23.5 million, up 12 percent.
Programming expense increased 24 percent to $34.4 million.
Home & Garden Television contributed $32.8 million to segment profits, up 28 percent from the year-ago period. HGTV revenues grew 22 percent to $70.1 million. Home & Garden Television now reaches 83 million domestic subscribers.
Food Network had revenues of $44.5 million, up 23 percent. Food Network contributed $15.4 million to segment profits compared to $11.3 million in the third quarter last year. Food Network reaches 82 million domestic subscribers.
Development of the DIY—Do It Yourself Network and Fine Living reduced segment profits by $8.8 million compared to $7.3 million in the year ago period. DIY can be seen in about 23 million U.S. television households and Fine Living now reaches about 19 million households.
Broadcast Television
Broadcast television segment profit decreased 9.3 percent to $18.7 million.
Broadcast television revenues decreased 0.7 percent to $72.3 million. Local broadcast television advertising rose 6.0 percent to $43.6 million. National broadcast television advertising was $23.7 million, up 3.9 percent from the year-ago period. Political advertising was $1.0 million compared to $5.5 million in 2002.
Shop At Home Network
Shop At Home Network revenues for the third quarter were $58.4 million. On a pro forma basis (as if the company had owned the business in the third quarter 2002), revenues were up 9.9 percent from the same year-ago period.
3
Shop At Home reported a segment loss of $3.8 million, or 4 cents per share, for the quarter.
The network reached an average 45.6 million full-time equivalent homes during the quarter, up 1.1 percent from the same period last year.
Scripps acquired Shop At Home in October 2002.
Licensing and Other Media
Segment profit was $4.5 million, about even with the previous year.
Revenues increased 14 percent to $24.4 million.
Fourth Quarter Guidance
Based on advance advertising sales, the company currently anticipates fourth quarter 2003 advertising revenue for Scripps Networks will be up 25 to 30 percent year over year. Affiliate fee revenue for Scripps Networks is expected to increase about 30 percent during the quarter, net of distribution fee amortization. Programming and marketing expenses are expected to increase 30 percent as the company continues to invest in building viewership across all four networks. Investments in the development of DIY and Fine Living are expected to reduce segment profits by about $8.4 million and earnings per share by about 7 cents.
Newspaper advertising revenues are expected to be up low single digits over the prior year in the fourth quarter.
At the company’s broadcast television stations, advertising revenues are expected to be up about 10 to 12 percent in the fourth quarter, excluding political advertising. Political advertising revenue was $17.3 million in the fourth quarter of 2002. Total fourth quarter revenues for broadcast television are expected to be down about 10 percent compared to the same period last year.
The company’s continuing investment in the Shop At Home Network is expected to reduce fourth quarter segment profits by about $3 million and earnings per share by about 4 cents.
Because of increased profitability of the Food Network, the company’s allocation of net income to Tribune Company—which owns 30 percent of the network—will increase minority interest from between $2 to $3 million in the fourth quarter compared to the same period a year ago.
Fourth quarter earnings per share are expected to be between 87 cents and 97 cents, compared to 94 cents per share in the fourth quarter of 2002. Results in the fourth quarter
4
of 2002 included unusual items that increased net income by about $3.2 million. Without these items, fourth quarter 2002 earnings per share would have been 90 cents.
Conference call
The senior management team at Scripps will discuss the company’s third quarter results during a telephone conference call at 11 a.m. EDT today. Scripps will offer a live audio Web cast of the conference call. To access the Web cast, visit www.scripps.com, choose “Investor Relations,” then follow the “Live Web Cast” link at the top of the page. Listeners need Windows Media Player to access the call online.
To access the conference call by telephone, dial 1-888-428-4479 (U.S.) or 1-651-291-5254 (International), approximately 10 minutes before the start of the call. Callers will need the name of the call (third quarter earnings report) to be granted access. Callers also will be asked to provide their name and company affiliation. The media and general public are provided access to the conference call on a listen-only basis.
A replay line will be open from 2:30 p.m. EDT Oct. 14 until 11:59 p.m. EDT Friday, Oct. 17. The domestic number to access the replay is 1-800-475-6701 and the international number is 1-320-365-3844. The access code for both numbers is 699378.
A replay of the conference call will be archived and available online for an extended period of time following the call. To access the audio replay, visit www.scripps.com approximately four hours after the call, choose “Investor Relations” then follow the “Audio Archives” link at the top of the page.
Forward-looking statements
This press release contains certain forward-looking statements related to the company’s businesses that are based on management’s current expectations. Forward-looking statements are subject to certain risks, trends and uncertainties, including changes in advertising demand and other economic conditions that could cause actual results to differ materially from the expectations expressed in forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. The company’s written policy on forward-looking statements can be found on page F-5 of its 2002 SEC Form 10K and page F-20 of its most recent Form 10Q.
About Scripps
Celebrating its 125th anniversary, The E.W. Scripps Company is a diverse media concern with interests in newspaper publishing, broadcast television, national television networks, interactive media and television-retailing. Scripps operates 21 daily newspapers, 10 broadcast TV stations, four cable and satellite television networks and a home shopping network. All of the company’s media businesses provide content and advertising services via the Internet.
5
Scripps Networks brands include Home & Garden Television, Food Network, DIY—Do It Yourself Network and Fine Living. Home & Garden and Food Network each can be seen in about 80 million U.S. television households. Scripps Networks Web sites include FoodNetwork.com, hgtv.com, DIYnetwork.com and fineliving.com. Scripps Networks programming can be seen in 33 countries.
The company’s home shopping subsidiary, Shop At Home Network, markets a growing range of consumer goods directly to television viewers and visitors to the Shop At Home Web site, shopathometv.com. Shop At Home reaches about 44 million full-time equivalent U.S. households.
Scripps also operates Scripps Howard News Service and United Media, which is the worldwide licensing and syndication home of PEANUTS and DILBERT.
###
Contact: Tim Stautberg, The E.W. Scripps Company, 513-977-3826
Email: stautberg@scripps.com
6
THE E. W. SCRIPPS COMPANY
RESULTS OF OPERATIONS
| (in thousands, except per share data) | Three months ended Sept. 30, |
Nine months ended Sept. 30, |
||||||||||||||||||||
| 2003 |
2002 |
Fav(Unf) |
2003 |
2002 |
Fav(Unf) |
|||||||||||||||||
| Operating revenues |
$ | 440,481 | $ | 354,267 | 24.3 | % | $ | 1,360,521 | $ | 1,079,387 | 26.0 | % | ||||||||||
| Costs and expenses |
(349,068 | ) | (264,045 | ) | (32.2 | )% | (1,058,941 | ) | (803,760 | ) | (31.7 | )% | ||||||||||
| Depreciation and amortization of intangibles |
(17,156 | ) | (15,026 | ) | (14.2 | )% | (50,248 | ) | (44,337 | ) | (13.3 | )% | ||||||||||
| Operating income |
74,257 | 75,196 | (1.2 | )% | 251,332 | 231,290 | 8.7 | % | ||||||||||||||
| Interest expense |
(7,944 | ) | (7,843 | ) | (1.3 | )% | (23,779 | ) | (21,064 | ) | (12.9 | )% | ||||||||||
| Equity in earnings of JOAs and other joint ventures |
20,830 | 19,223 | 8.4 | % | 60,894 | 55,482 | 9.8 | % | ||||||||||||||
| Investment results, net of expenses |
(10,052 | ) | (3,200 | ) | (83,991 | ) | ||||||||||||||||
| Miscellaneous, net |
861 | 675 | 3,546 | 57 | ||||||||||||||||||
| Income before income taxes and minority interests |
88,004 | 77,199 | 288,793 | 181,774 | ||||||||||||||||||
| Provision for income taxes |
34,509 | 30,622 | 115,381 | 66,575 | ||||||||||||||||||
| Income before minority interests |
53,495 | 46,577 | 173,412 | 115,199 | ||||||||||||||||||
| Minority interests |
1,636 | 901 | 4,131 | 2,687 | ||||||||||||||||||
| Net income |
$ | 51,859 | $ | 45,676 | 13.5 | % | $ | 169,281 | $ | 112,512 | 50.5 | % | ||||||||||
| Net income per diluted share of common stock |
$ | .64 | $ | .57 | 12.3 | % | $ | 2.08 | $ | 1.40 | 48.6 | % | ||||||||||
| Weighted average diluted shares outstanding |
81,605 | 80,668 | 81,312 | 80,554 | ||||||||||||||||||
See notes to results of operations.
Notes to Results of Operations
1. RESTRUCTURING CHARGES AND OTHER ITEMS
Net investment results
Net investment results include (i) net realized gains and losses and (ii) accrued performance-based compensation and other expenses associated with the management of Scripps Ventures Funds I and II (“Scripps Ventures”).
2003 - Year-to-date net investment results were a pre-tax charge of $3.2 million for write-downs associated with declines in value of certain investments in development-stage businesses. Investment results reduced net income by $2.1 million, $.03 per share.
2002 - Third quarter net investment results were a pre-tax charge of $10.1 million, reducing net income by $6.5 million, $.08 per share. Included in net investment results were $9.6 million of write-downs associated with declines in value of the Scripps Ventures investment portfolios and other investments in development-stage businesses. Year-to-date net investment results were a pre-tax charge of $84.0 million, reducing net income by $54.6 million, $.68 per share. Year-to-date investment results include a $35.1 million write-down of our investment in AOL Time Warner and $43.6 million of write-downs associated with declines in value of the Scripps Ventures investment portfolios and other investments in development-stage business. Also included in net investment results were $3.6 million of costs associated with winding down active management of Scripps Ventures.
Prior year tax liability adjustment
2002 - We reached an agreement with the Internal Revenue Service to settle the audits of our 1992 through 1995 consolidated federal income tax returns in the second quarter of 2002. As a result, we reduced our estimated liability for prior year income taxes by $8.0 million. Net income was increased by $8.0 million, $.10 per share.
2. SEGMENT INFORMATION
Our reportable segments are strategic businesses that offer different products and services. The performance measure (“Segment Profit”) used by our chief operating decision maker (as defined by FAS 131—Segment Reporting) to assess the operating performance of our business segments and to make decisions about the allocation of resources to our business segments. Segment profit excludes interest, income taxes, depreciation and amortization, divested operating units, restructuring charges, investment results and certain other items.
Items excluded from segment profit generally result from prior decisions or from decisions made by corporate executives rather than the managers of the business segments. Depreciation and amortization charges are the result of past decisions regarding the allocation of resources and are therefore excluded from the measure. Financing, tax structure and divestiture decisions are generally made by corporate executives. Excluding these items from our business segment performance measure enables our chief operating decision maker to evaluate business segment operating performance for the current period based upon current economic conditions and decisions made by the managers of those business segments in the current period.
We account for our share of the earnings of JOAs using the equity method of accounting. Our share of the earnings of JOAs is included in “Equity in earnings of JOAs and other joint ventures” in our Results of Operations. Newspaper segment profits include equity in earnings of JOAs. Scripps Networks segment profits include equity in earnings of FOX Sports Net South and certain other joint ventures.
Information regarding the operating performance of our business segments determined in accordance with FAS 131 and a reconciliation to our Results of Operations is as follows:
| (in thousands) | Three months ended Sept. 30, |
Nine months ended Sept. 30, |
||||||||||||||||||||
| 2003 |
2002 |
Fav(Unf) |
2003 |
2002 |
Fav(Unf) |
|||||||||||||||||
| Segment operating revenues: |
||||||||||||||||||||||
| Newspapers managed solely by us |
$ | 163,828 | $ | 162,959 | 0.5 | % | $ | 509,202 | $ | 502,071 | 1.4 | % | ||||||||||
| Joint operating agencies |
56 | 42 | 33.3 | % | 174 | 140 | 24.3 | % | ||||||||||||||
| Total newspapers |
163,884 | 163,001 | 0.5 | % | 509,376 | 502,211 | 1.4 | % | ||||||||||||||
| Scripps Networks |
121,549 | 97,069 | 25.2 | % | 380,042 | 296,737 | 28.1 | % | ||||||||||||||
| Broadcast television |
72,257 | 72,745 | (0.7 | )% | 221,300 | 213,987 | 3.4 | % | ||||||||||||||
| Shop At Home |
58,425 | 173,380 | ||||||||||||||||||||
| Licensing and other media |
24,366 | 21,452 | 13.6 | % | 76,423 | 66,452 | 15.0 | % | ||||||||||||||
| Total operating revenues |
$ | 440,481 | $ | 354,267 | 24.3 | % | $ | 1,360,521 | $ | 1,079,387 | 26.0 | % | ||||||||||
| Segment profit (loss): |
||||||||||||||||||||||
| Newspapers managed solely by us |
$ | 52,069 | $ | 52,241 | (0.3 | )% | $ | 165,363 | $ | 169,764 | (2.6 | )% | ||||||||||
| Joint operating agencies |
8,811 | 8,465 | 4.1 | % | 26,390 | 25,275 | 4.4 | % | ||||||||||||||
| Total newspapers |
60,880 | 60,706 | 0.3 | % | 191,753 | 195,039 | (1.7 | )% | ||||||||||||||
| Scripps Networks |
40,277 | 29,872 | 34.8 | % | 137,821 | 82,722 | 66.6 | % | ||||||||||||||
| Broadcast television |
18,713 | 20,621 | (9.3 | )% | 58,841 | 61,398 | (4.2 | )% | ||||||||||||||
| Shop At Home |
(3,753 | ) | (15,293 | ) | ||||||||||||||||||
| Licensing and other media |
4,489 | 4,493 | (0.1 | )% | 12,977 | 13,237 | (2.0 | )% | ||||||||||||||
| Corporate |
(8,363 | ) | (6,247 | ) | (33.9 | )% | (23,625 | ) | (21,287 | ) | (11.0 | )% | ||||||||||
| Total segment profit |
112,243 | 109,445 | 2.6 | % | 362,474 | 331,109 | 9.5 | % | ||||||||||||||
| Depreciation and amortization of intangibles |
(17,156 | ) | (15,026 | ) | (14.2 | )% | (50,248 | ) | (44,337 | ) | (13.3 | )% | ||||||||||
| Interest expense |
(7,944 | ) | (7,843 | ) | (1.3 | )% | (23,779 | ) | (21,064 | ) | (12.9 | )% | ||||||||||
| Investment results, net of expenses |
(10,052 | ) | (3,200 | ) | (83,991 | ) | ||||||||||||||||
| Miscellaneous, net |
861 | 675 | 3,546 | 57 | ||||||||||||||||||
| Income before income taxes and minority interests |
$ | 88,004 | $ | 77,199 | $ | 288,793 | $ | 181,774 | ||||||||||||||
| Depreciation: |
||||||||||||||||||||||
| Newspapers managed solely by us |
$ | 5,692 | $ | 6,011 | 5.3 | % | $ | 17,122 | $ | 18,272 | 6.3 | % | ||||||||||
| Joint operating agencies |
324 | 326 | 0.6 | % | 966 | 784 | (23.2 | )% | ||||||||||||||
| Total newspapers |
6,016 | 6,337 | 5.1 | % | 18,088 | 19,056 | 5.1 | % | ||||||||||||||
| Scripps Networks |
2,815 | 2,239 | (25.7 | )% | 7,759 | 6,527 | (18.9 | )% | ||||||||||||||
| Broadcast television |
4,889 | 4,938 | 1.0 | % | 14,568 | 14,355 | (1.5 | )% | ||||||||||||||
| Shop At Home |
1,581 | 4,226 | ||||||||||||||||||||
| Licensing and other media |
153 | 199 | 23.1 | % | 476 | 583 | 18.4 | % | ||||||||||||||
| Corporate |
567 | 340 | (66.8 | )% | 1,668 | 849 | (96.5 | )% | ||||||||||||||
| Total depreciation |
$ | 16,021 | $ | 14,053 | (14.0 | )% | $ | 46,785 | $ | 41,370 | (13.1 | )% | ||||||||||
| Amortization of intangible assets: |
||||||||||||||||||||||
| Newspapers managed solely by us |
$ | 107 | $ | 103 | (3.9 | )% | $ | 318 | $ | 307 | (3.6 | )% | ||||||||||
| Joint operating agencies |
67 | 67 | 200 | 200 | ||||||||||||||||||
| Total newspapers |
174 | 170 | (2.4 | )% | 518 | 507 | (2.2 | )% | ||||||||||||||
| Scripps Networks |
548 | 771 | 28.9 | % | 1,721 | 2,365 | 27.2 | % | ||||||||||||||
| Broadcast television |
32 | 32 | 95 | 95 | ||||||||||||||||||
| Shop At Home |
381 | 1,129 | ||||||||||||||||||||
| Total amortization of intangible assets |
$ | 1,135 | $ | 973 | (16.6 | )% | $ | 3,463 | $ | 2,967 | (16.7 | )% | ||||||||||
3. ROCKY MOUNTAIN NEWS
Information related to operating results of the Rocky Mountain News is as follows:
| (in thousands, except per share data) | Three months ended Sept. 30, |
Nine months ended Sept. 30, |
||||||||||||||||
| 2003 |
2002 |
Fav(Unf) |
2003 |
2002 |
Fav(Unf) |
|||||||||||||
| Operating revenues |
$ | 32 | $ | 40 | (20.0 | )% | $ | 113 | $ | 119 | (5.0 | )% | ||||||
| Equity in earnings of Denver JOA |
8,051 | 6,097 | 32.0 | % | 24,345 | 19,499 | 24.9 | % | ||||||||||
| Contribution to segment profit |
2,375 | 923 | 157.3 | % | 7,671 | 3,901 | 96.6 | % | ||||||||||
| Net income effect |
1,372 | 493 | 178.3 | % | 4,318 | 2,198 | 96.5 | % | ||||||||||
| Net income effect per share of common stock – assuming dilution |
$ | .02 | $ | .01 | 100.0 | % | $ | .05 | $ | .03 | 66.7 | % | ||||||
4. SCRIPPS NETWORKS
Financial information for each of our four national networks is as follows:
| (in thousands, except per share data) | Three months ended Sept. 30, |
Nine months ended Sept. 30, |
||||||||||||||||||||
| 2003 |
2002 |
Fav(Unf) |
2003 |
2002 |
Fav(Unf) |
|||||||||||||||||
| HGTV: |
||||||||||||||||||||||
| Operating revenues |
$ | 70,074 | $ | 57,586 | 21.7 | % | $ | 216,124 | $ | 178,192 | 21.3 | % | ||||||||||
| Contribution to segment profit |
32,828 | 25,623 | 28.1 | % | 108,208 | 78,121 | 38.5 | % | ||||||||||||||
| Net income effect |
18,784 | 14,814 | 26.8 | % | 62,251 | 45,246 | 37.6 | % | ||||||||||||||
| Net income effect per share of common stock – assuming dilution |
$ | .23 | $ | .18 | 27.8 | % | $ | .77 | $ | .56 | 37.5 | % | ||||||||||
| Food Network: |
||||||||||||||||||||||
| Operating revenues |
$ | 44,464 | $ | 36,241 | 22.7 | % | $ | 145,446 | $ | 111,027 | 31.0 | % | ||||||||||
| Contribution to segment profit |
15,440 | 11,289 | 36.8 | % | 57,194 | 33,846 | 69.0 | % | ||||||||||||||
| Net income effect: |
||||||||||||||||||||||
| Income before minority share |
8,315 | 5,472 | 52.0 | % | 30,491 | 16,411 | 85.8 | % | ||||||||||||||
| Minority owner share of net income |
969 | 3,405 | ||||||||||||||||||||
| Net income effect |
7,346 | 5,472 | 34.2 | % | 27,086 | 16,411 | 65.0 | % | ||||||||||||||
| Net income effect per share of common stock – assuming dilution |
$ | .09 | $ | .07 | 28.6 | % | $ | .33 | $ | .20 | 65.0 | % | ||||||||||
| DIY: |
||||||||||||||||||||||
| Operating revenues |
$ | 4,997 | $ | 2,900 | 72.3 | % | $ | 13,426 | $ | 6,931 | 93.7 | % | ||||||||||
| Contribution to segment profit (loss) |
(2,510 | ) | (2,635 | ) | 4.7 | % | (8,769 | ) | (10,037 | ) | 12.6 | % | ||||||||||
| Net income (loss) effect |
(1,796 | ) | (1,854 | ) | 3.1 | % | (6,031 | ) | (6,824 | ) | 11.6 | % | ||||||||||
| Net income (loss) effect per share of common stock – assuming dilution |
$ | (.02 | ) | $ | (.02 | ) | $ | (.07 | ) | $ | (.08 | ) | 12.5 | % | ||||||||
| Fine Living: |
||||||||||||||||||||||
| Operating revenues |
$ | 1,973 | $ | 257 | $ | 4,794 | $ | 416 | ||||||||||||||
| Contribution to segment profit (loss) |
(6,309 | ) | (4,632 | ) | (36.2 | )% | (19,992 | ) | (18,660 | ) | (7.1 | )% | ||||||||||
| Net income (loss) effect |
(3,868 | ) | (2,922 | ) | (32.4 | )% | (12,418 | ) | (11,625 | ) | (6.8 | )% | ||||||||||
| Net income (loss) effect per share of common stock – assuming dilution |
$ | (.05 | ) | $ | (.04 | ) | (25.0 | )% | $ | (.15 | ) | $ | (.14 | ) | (7.1 | )% | ||||||
| THE E.W. SCRIPPS COMPANY |
For more information: | |
| Unaudited Revenue and Statistical Summary |
Tim Stautberg | |
| Period: September |
The E.W. Scripps Company | |
| Report date: October 14, 2003 |
513-977-3826 |
For comparative purposes, this report excludes divested operations and unusual items,
and includes acquired operations as if they had been purchased January 1, 2002.
| (amounts in millions, unless otherwise noted) | September (5) |
Year-to-date |
||||||||||||||||
| 2003 |
2002 |
% |
2003 |
2002 |
% |
|||||||||||||
| SEGMENT OPERATING REVENUES |
||||||||||||||||||
| Newspapers |
$ | 53.2 | $ | 56.7 | (6.2 | )% | $ | 509.4 | $ | 502.2 | 1.4 | % | ||||||
| Scripps Networks |
42.6 | 33.9 | 25.5 | % | 380.0 | 296.7 | 28.1 | % | ||||||||||
| Broadcast Television |
27.2 | 26.6 | 2.2 | % | 221.3 | 214.0 | 3.4 | % | ||||||||||
| Shop At Home (1) |
21.1 | 19.8 | 6.3 | % | 173.4 | 156.4 | 10.9 | % | ||||||||||
| Licensing and Other Media |
7.3 | 5.9 | 23.1 | % | 76.4 | 66.5 | 15.0 | % | ||||||||||
| TOTAL |
$ | 151.4 | $ | 143.0 | 5.9 | % | $ | 1,360.5 | $ | 1,235.7 | 10.1 | % | ||||||
| NEWSPAPERS (2) |
||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Local |
$ | 12.5 | $ | 13.7 | (9.3 | )% | $ | 120.9 | $ | 125.0 | (3.2 | )% | ||||||
| Classified |
16.7 | 18.0 | (7.0 | )% | 159.3 | 158.6 | 0.4 | % | ||||||||||
| National |
3.0 | 3.0 | 1.3 | % | 28.3 | 24.7 | 14.3 | % | ||||||||||
| Preprints and other |
9.3 | 9.4 | (0.7 | )% | 89.3 | 81.7 | 9.3 | % | ||||||||||
| Newspaper advertising |
41.6 | 44.1 | (5.8 | )% | 397.8 | 390.0 | 2.0 | % | ||||||||||
| Circulation |
10.4 | 11.6 | (10.7 | )% | 101.6 | 103.4 | (1.7 | )% | ||||||||||
| Other |
1.2 | 0.9 | 33.7 | % | 10.0 | 8.9 | 12.9 | % | ||||||||||
| Newspapers |
$ | 53.2 | $ | 56.7 | (6.2 | )% | $ | 509.4 | $ | 502.2 | 1.4 | % | ||||||
| Ad inches (excluding JOAs) (in thousands) |
||||||||||||||||||
| Local |
532 | 598 | (11.0 | )% | 5,254 | 5,535 | (5.1 | )% | ||||||||||
| Classified |
833 | 856 | (2.7 | )% | 7,916 | 7,701 | 2.8 | % | ||||||||||
| National |
107 | 98 | 8.9 | % | 966 | 827 | 16.8 | % | ||||||||||
| Full run ROP |
1,472 | 1,552 | (5.1 | )% | 14,136 | 14,063 | 0.5 | % | ||||||||||
| Share of JOA operating profits (3) |
$ | 5.7 | $ | 5.7 | 0.8 | % | $ | 54.1 | $ | 51.8 | 4.4 | % | ||||||
| SCRIPPS NETWORKS |
||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Advertising |
$ | 34.3 | $ | 26.2 | 30.9 | % | $ | 306.6 | $ | 233.3 | 31.4 | % | ||||||
| Affiliate fees, net |
7.8 | 7.1 | 10.0 | % | 69.0 | 59.4 | 16.2 | % | ||||||||||
| Other |
0.4 | 0.6 | (26.9 | )% | 4.4 | 4.0 | 11.4 | % | ||||||||||
| Scripps Networks |
$ | 42.6 | $ | 33.9 | 25.5 | % | $ | 380.0 | $ | 296.7 | 28.1 | % | ||||||
| Subscribers (4) |
||||||||||||||||||
| HGTV |
82.7 | 79.8 | 3.6 | % | ||||||||||||||
| Food Network |
81.6 | 76.6 | 6.5 | % | ||||||||||||||
| BROADCAST TELEVISION |
||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Local |
$ | 16.0 | $ | 14.8 | 7.9 | % | $ | 135.1 | $ | 126.2 | 7.0 | % | ||||||
| National |
9.0 | 8.3 | 8.6 | % | 72.2 | 70.5 | 2.4 | % | ||||||||||
| Network compensation |
0.7 | 0.6 | 17.3 | % | 6.8 | 5.8 | 17.1 | % | ||||||||||
| Political |
0.5 | 2.0 | 2.0 | 6.5 | ||||||||||||||
| Other |
1.0 | 0.8 | 17.4 | % | 5.3 | 5.0 | 5.0 | % | ||||||||||
| Broadcast Television |
$ | 27.2 | $ | 26.6 | 2.2 | % | $ | 221.3 | $ | 214.0 | 3.4 | % | ||||||
| SHOP AT HOME (1) |
||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| As reported |
$ | 21.1 | $ | 173.4 | ||||||||||||||
| Pro forma |
21.1 | $ | 19.8 | 6.3 | % | 173.4 | $ | 156.4 | 10.9 | % | ||||||||
| Avg. full-time equivalent homes |
44.3 | 46.3 | (4.3 | )% | 46.7 | 40.8 | 14.5 | % | ||||||||||
| (1) | Shop At Home was acquired October 31, 2002. |
| (2) | For comparative purposes, certain 2002 newspaper revenues have been reclassified to conform to 2003 classifications. |
| (3) | Excludes editorial costs. |
| (4) | Subscriber counts are according to the Nielsen Homevideo Index of homes that receive cable networks. |
| (5) | September 2003 had 4 Sundays, versus 5 in 2002. |
| THE E.W. SCRIPPS COMPANY |
For more information: | |
| Unaudited Revenue and Statistical Summary |
Tim Stautberg | |
| Period: September |
The E.W. Scripps Company | |
| Report date: October 14, 2003 |
513-977-3826 |
For comparative purposes, this report excludes divested operations and unusual items,
and includes acquired operations as if they had been purchased January 1, 2002.
| (amounts in millions, unless otherwise noted) | Third Quarter |
||||||||
| 2003 |
2002 |
% |
|||||||
| SEGMENT OPERATING REVENUE |
|||||||||
| Newspapers |
$ | 163.9 | $ | 163.0 | 0.5 | % | |||
| Scripps Networks |
121.5 | 97.1 | 25.2 | % | |||||
| Broadcast Television |
72.3 | 72.7 | (0.7 | )% | |||||
| Shop At Home (1) |
58.4 | 53.1 | 9.9 | % | |||||
| Licensing and Other Media |
24.4 | 21.5 | 13.6 | % | |||||
| TOTAL |
$ | 440.5 | $ | 407.4 | 8.1 | % | |||
| NEWSPAPERS (2) |
|||||||||
| Operating Revenue |
|||||||||
| Local |
$ | 37.5 | $ | 39.2 | (4.4 | )% | |||
| Classified |
51.9 | 51.9 | 0.0 | % | |||||
| National |
9.5 | 8.5 | 11.9 | % | |||||
| Preprints and other |
29.3 | 27.2 | 7.7 | % | |||||
| Newspaper advertising |
128.2 | 126.8 | 1.1 | % | |||||
| Circulation |
32.3 | 33.6 | (3.6 | )% | |||||
| Other |
3.4 | 2.6 | 27.7 | % | |||||
| Newspapers |
$ | 163.9 | $ | 163.0 | 0.5 | % | |||
| Ad inches (excluding JOAs) (in thousands) |
|||||||||
| Local |
1,622 | 1,759 | (7.8 | )% | |||||
| Classified |
2,638 | 2,541 | 3.8 | % | |||||
| National |
309 | 268 | 15.4 | % | |||||
| Full run ROP |
4,568 | 4,567 | 0.0 | % | |||||
| Share of JOA operating profits (3) |
$ | 18.1 | $ | 17.2 | 5.0 | % | |||
| SCRIPPS NETWORKS |
|||||||||
| Operating Revenue |
|||||||||
| Advertising |
$ | 96.6 | $ | 74.8 | 29.2 | % | |||
| Affiliate fees |
23.5 | 20.9 | 12.4 | % | |||||
| Other |
1.4 | 1.4 | 4.7 | % | |||||
| Scripps Networks |
$ | 121.5 | $ | 97.1 | 25.2 | % | |||
| Subscribers (4) |
|||||||||
| HGTV |
82.7 | 79.8 | 3.6 | % | |||||
| Food Network |
81.6 | 76.6 | 6.5 | % | |||||
| BROADCAST TELEVISION |
|||||||||
| Operating Revenue |
|||||||||
| Local |
$ | 43.6 | $ | 41.1 | 6.0 | % | |||
| National |
23.7 | 22.8 | 3.9 | % | |||||
| Network compensation |
2.2 | 1.9 | 19.1 | % | |||||
| Political |
1.0 | 5.5 | |||||||
| Other |
1.7 | 1.5 | 16.8 | % | |||||
| Broadcast Television |
$ | 72.3 | $ | 72.7 | (0.7 | )% | |||
| SHOP AT HOME (1) |
|||||||||
| Operating Revenue |
|||||||||
| As reported |
$ | 58.4 | |||||||
| Pro forma |
58.4 | $ | 53.1 | 9.9 | % | ||||
| Avg. full-time equivalent homes |
45.6 | 45.1 | 1.1 | % | |||||
| (1) | Shop At Home was acquired October 31, 2002. |
| (2) | For comparative purposes, certain 2002 newspaper revenues have been reclassified to conform to 2003 classifications. |
| (3) | Excludes editorial costs. |
| (4) | Subscriber counts are according to the Nielsen Homevideo Index of homes that receive cable networks. |