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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) August 11, 2004
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 incorporation or organization) |
(I.R.S. Employer 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)
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INDEX TO CURRENT REPORT ON FORM 8-K DATED AUGUST 11, 2004
| Item No. |
Page | |||
| 7. | Financial Statements and Exhibits | 3 | ||
| 12. | Results of Operations and Financial Condition | 3 | ||
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Item 7. Financial Statements and Exhibits
| (c) | Exhibits |
99 Press release dated August 11, 2004.
Item 12. Results of Operations and Financial Condition
On August 11, 2004, we released information regarding our consolidated revenue for the month ended July 31, 2004 and updated guidance previously provided in our second quarter earnings release dated July 15, 2004 and in our report on Form 10-Q for the quarter ended June 30, 2004. 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. We undertake no obligation to publicly update any forward-looking statement to reflect events or circumstances after the date the statement is made.
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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/ Lori A. Hickok | |
| Lori A. Hickok | ||
| Vice President and Controller | ||
Dated: August 11, 2004
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| PRESS RELEASE | Exhibit 99 |
Scripps reports July revenues
| For immediate release |
(NYSE: SSP) | |
| Aug. 11, 2004 |
CINCINNATI – The E. W. Scripps Company’s consolidated revenue for July increased 11 percent year-over-year to $155 million.
Revenue for the company’s fastest growing division, Scripps Networks, was up 35 percent to $52.7 million. July advertising revenue at Scripps Networks was up 34 percent and affiliate fee revenue increased 41 percent. Scripps Networks includes the company’s portfolio of national cable and satellite television networks, including Home & Garden Television, Food Network, Fine Living and the DIY — Do It Yourself Network.
HGTV is available in about 86 million homes and Food Network reaches about 84 million homes. The company’s newer networks, DIY and Fine Living, can be seen in about 29 million and 22 million homes, respectively.
July revenue at Shop At Home Network, the company’s television retailing subsidiary, was down 1.6 percent to $19 million. Shop At Home was available to about 50 million full-time equivalent households during the month.
July revenue at the company’s newspapers was up 3.5 percent year-over-year to $53.5 million.
Newspaper advertising revenue for the month, broken down by category, was:
| • | Local, up 6.6 percent to $12.3 million. |
| • | Classified, up 8.4 percent to $17.8 million. |
| • | National, down 8.0 percent to $2.8 million. |
| • | Preprint and other, up 3.5 percent to $9.4 million. |
The company’s share of profits from its four joint newspaper operations, before editorial costs, was $5.4 million compared to $5.5 million in July 2003.
At the company’s broadcast television stations (excluding Shop At Home affiliated stations) revenue for the month was up 6.1 percent to $22.6 million. Broadcast television revenue reflects $2.2 million in political advertising during the month. Broadcast TV political advertising revenue was about $200,000 during the same month a year ago. Other than political, broadcast television advertising revenue, broken down by category, was:
| • | Local, down 4.8 percent to $12.4 million. |
| • | National, up 0.4 percent to $6.9 million. |
| • | Other, down 4.9 percent to $1.1 million. |
Guidance
Based on softer-than-expected local and political television advertising in July and advance sales in August, guidance for projected third-quarter revenue growth at the company’s network-affiliated broadcast television stations has been revised. The company now expects total advertising revenue in the third quarter to be up about 15 percent compared to the previous guidance of about 20 percent.
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 2003 SEC Form 10K and F-27 of its most recent Form 10Q.
About Scripps
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, 15 broadcast TV stations, four cable and satellite television programming networks and a television retailing network. All of the company’s media businesses provide content and advertising services via the Internet.
Scripps Networks brands include Home & Garden Television, Food Network, DIY — Do It Yourself Network and Fine Living. HGTV reaches about 85 million U.S. television households and Food Network can be seen in about 84 million households. Scripps Networks Web sites include FoodNetwork.com, HGTV.com, DIYnetwork.com and fineliving.com. Scripps Networks programming can be seen in 86 countries.
The company’s television retailing 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 50 million full-time equivalent U.S. households, including 5 million households via five Scripps owned, Shop At Home affiliated broadcast television stations.
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
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| THE E.W. SCRIPPS COMPANY | For more information: | |
| Unaudited Revenue and Statistical Summary | Tim Stautberg | |
| Period: July | The E.W. Scripps Company | |
| Report date: August 11, 2004 | 513-977-3826 |
| ( amounts in millions, unless otherwise noted ) | July |
Year-to-date |
||||||||||||||||
| 2004 |
2003 |
% |
2004 |
2003 |
% |
|||||||||||||
| SEGMENT OPERATING REVENUES | ||||||||||||||||||
| Newspapers |
$ | 53.5 | $ | 51.7 | 3.5 | % | $ | 406.8 | $ | 397.2 | 2.4 | % | ||||||
| Scripps Networks |
52.7 | 39.1 | 35.0 | % | 404.3 | 297.5 | 35.9 | % | ||||||||||
| Broadcast Television |
22.6 | 21.3 | 6.1 | % | 185.7 | 170.4 | 9.0 | % | ||||||||||
| Shop At Home |
19.0 | 19.3 | (1.6 | )% | 159.3 | 134.3 | 18.6 | % | ||||||||||
| Licensing and Other Media |
7.5 | 8.6 | (13.6 | )% | 60.2 | 60.7 | (0.8 | )% | ||||||||||
| TOTAL |
$ | 155.3 | $ | 140.0 | 10.9 | % | $ | 1,216.3 | $ | 1,060.1 | 14.7 | % | ||||||
| NEWSPAPERS | ||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Local |
$ | 12.3 | $ | 11.6 | 6.6 | % | $ | 95.6 | $ | 95.0 | 0.6 | % | ||||||
| Classified |
17.8 | 16.4 | 8.4 | % | 128.7 | 123.8 | 3.9 | % | ||||||||||
| National |
2.8 | 3.1 | (8.0 | )% | 22.1 | 21.9 | 1.0 | % | ||||||||||
| Preprints and other |
9.4 | 9.1 | 3.5 | % | 73.6 | 69.0 | 6.6 | % | ||||||||||
| Newspaper advertising |
42.3 | 40.1 | 5.5 | % | 320.0 | 309.7 | 3.3 | % | ||||||||||
| Circulation |
10.1 | 10.5 | (4.5 | )% | 77.4 | 79.8 | (3.0 | )% | ||||||||||
| Other |
1.1 | 1.0 | 4.1 | % | 9.4 | 7.7 | 22.4 | % | ||||||||||
| Newspapers |
$ | 53.5 | $ | 51.7 | 3.5 | % | $ | 406.8 | $ | 397.2 | 2.4 | % | ||||||
| Ad inches (excluding JOAs) (in thousands) |
||||||||||||||||||
| Local |
529 | 512 | 3.4 | % | 4,119 | 4,144 | (0.6 | )% | ||||||||||
| Classified |
903 | 860 | 5.0 | % | 6,220 | 6,135 | 1.4 | % | ||||||||||
| National |
94 | 98 | (4.4 | )% | 742 | 755 | (1.8 | )% | ||||||||||
| Full run ROP |
1,526 | 1,470 | 3.8 | % | 11,081 | 11,035 | 0.4 | % | ||||||||||
| Share of JOA operating profits (1) |
$ | 5.4 | $ | 5.5 | (1.2 | )% | $ | 38.1 | $ | 41.3 | (7.7 | )% | ||||||
| SCRIPPS NETWORKS | ||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Advertising |
$ | 41.0 | $ | 30.7 | 33.5 | % | $ | 320.8 | $ | 240.6 | 33.3 | % | ||||||
| Affiliate fees, net |
11.1 | 7.9 | 40.7 | % | 78.5 | 53.4 | 46.9 | % | ||||||||||
| Other |
0.6 | 0.5 | 33.3 | % | 4.9 | 3.5 | 40.9 | % | ||||||||||
| Scripps Networks |
$ | 52.7 | $ | 39.1 | 35.0 | % | $ | 404.3 | $ | 297.5 | 35.9 | % | ||||||
| Subscribers (2) |
||||||||||||||||||
| HGTV |
85.6 | 80.9 | 5.8 | % | ||||||||||||||
| Food Network |
84.1 | 79.2 | 6.2 | % | ||||||||||||||
| BROADCAST TELEVISION | ||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Local |
$ | 12.4 | $ | 13.0 | (4.8 | )% | $ | 106.9 | $ | 104.5 | 2.3 | % | ||||||
| National |
6.9 | 6.9 | 0.4 | % | 56.4 | 55.4 | 1.8 | % | ||||||||||
| Political |
2.2 | 0.2 | 12.5 | 1.2 | ||||||||||||||
| Other |
1.1 | 1.2 | (4.9 | )% | 9.9 | 9.2 | 6.7 | % | ||||||||||
| Broadcast Television |
$ | 22.6 | $ | 21.3 | 6.1 | % | $ | 185.7 | $ | 170.4 | 9.0 | % | ||||||
| SHOP AT HOME | ||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Shop At Home |
$ | 19.0 | $ | 19.3 | (1.6 | )% | $ | 159.3 | $ | 134.3 | 18.6 | % | ||||||
| Avg. full-time equivalent homes |
50.2 | 47.7 | 5.2 | % | 48.6 | 47.3 | 2.7 | % | ||||||||||
| (1) | Excludes editorial costs and proportionate share of JOA activities. |
| (2) | Subscriber counts are according to the Nielsen Homevideo Index of homes that receive cable networks. |