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) September 13, 2004
THE E.W. SCRIPPS COMPANY
(Exact name of registrant as specified in its charter)
| Ohio | 0-16914 | 31-1223339 | ||
| (State or other jurisdiction of incorporation or organization) |
(Commission File Number) | (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)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Table of Contents
INDEX TO CURRENT REPORT ON FORM 8-K DATED SEPTEMBER 13, 2004
| Item No. |
Page | |||
| 8.01. | Other Events | 3 | ||
| 9.01. | Financial Statements and Exhibits | 3 | ||
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Table of Contents
On September 13, 2004, we released information regarding our consolidated revenue for the month ended August 31, 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.
Item 9.01. Financial Statements and Exhibits
| (c) | Exhibits |
99 Press release dated September 13, 2004.
SIGNATURES
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 hereunto duly authorized.
| THE E.W. SCRIPPS COMPANY | ||
| BY: | /s/ Lori A. Hickok | |
| Lori A. Hickok | ||
| Vice President and Controller | ||
Dated: September 13, 2004
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Exhibit 99
PRESS RELEASE
Scripps reports August revenues
Third quarter results will be affected by Hurricane Frances
| For immediate release | (NYSE: SSP) | |
| Sept. 13, 2004 |
CINCINNATI – The E. W. Scripps Company’s consolidated revenue for August increased 13 percent year-over-year to $168 million.
Revenue for the company’s fastest growing division, Scripps Networks, was up 33 percent to $53.1 million. August advertising revenue at Scripps Networks was up 30 percent and affiliate fee revenue increased 48 percent. Scripps Networks includes the company’s portfolio of national cable and satellite television networks, including Home & Garden Television, Food Network, the DIY – Do It Yourself Network and Fine Living.
HGTV and Food Network could be seen in 86 million and 85 million U.S. television households, respectively, during August. DIY distribution reached 30 million households during the month. Fine Living can be seen in 23 million households.
At the company’s newspapers, August revenue was $58.8 million, about even with same month a year ago.
Newspaper advertising revenue for the month, broken down by category, was:
| • | Local, down 4.7 percent to $12.8 million. |
| • | Classified, up 0.5 percent to $18.9 million. |
| • | National, down 2.7 percent to $3.3 million. |
| • | Preprint and other, up 5.8 percent to $11.5 million. |
The company’s share of profits from its four joint newspaper operations, before editorial costs, was $6.3 million compared to $6.8 million in August 2003.
August revenue at Shop At Home Network, the company’s television retailing subsidiary, was up 11 percent to $19.9 million.
At the company’s broadcast television stations (excluding Shop At Home affiliated stations) revenue for the month was up 20 percent to $28.5 million. Broadcast television revenue reflects $3.8 million in political advertising during the month. Broadcast TV political advertising revenue was about $300,000 during the same month a year ago. The company’s three NBC affiliates reported a $2.3 million year-over-year increase in local and national advertising revenue for the month, most of which was attributable to the Olympics.
Other than political, broadcast television advertising revenue, broken down by category, was:
| • | Local, up 4.4 percent to $15.2 million. |
| • | National, up 8.7 percent to $8.4 million. |
| • | Other, down 2.6 percent to $1.1 million. |
Guidance
Third quarter financial results will reflect the effects of Hurricane Frances on some of the company’s Florida operations. The company’s television station in West Palm Beach, and Treasure Coast newspapers in Stuart, Vero Beach and Fort Pierce sustained wind and rain damage during the hurricane. The company is assessing the financial impact of the storm on third quarter results. The affected operations are covered by property, casualty and business interruption insurance.
Excluding the effects of the hurricane, the company expects third quarter earnings per share to be within the range of previously issued guidance of 35 to 39 cents per share vs. 32 cents in the same period last year. (The range and prior-year earnings per share are being stated on a post-split basis. The company’s previously announced 2 for 1 stock split was effective Sept. 10.)
The company will provide an estimate of the financial impact of Hurricane Frances when it reports its third quarter earnings.
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 2004 SEC Form 10K and F-27 of its most recent Form 10Q.
We undertake no obligation to publicly update any forward-looking statements to reflect events or circumstances after the date the statement is made.
About Scripps
The E.W. Scripps Company is a diverse media concern with interests in national lifestyle television networks, newspaper publishing, broadcast television, television retailing, interactive media and licensing and syndication. All of the company’s media businesses provide content and advertising services via the Internet.
Scripps is organized into the following operating divisions.
Scripps Networks, which includes the company’s growing portfolio of popular lifestyle television networks. Scripps Networks brands include Home & Garden Television, Food Network, DIY — Do It Yourself Network and Fine Living. Scripps Networks Web sites include FoodNetwork.com, HGTV.com, DIYnetwork.com and fineliving.com. Scripps Networks programming can be seen in 86 countries.
Scripps Newspapers, including daily and community newspapers in 17 markets and the Washington-based Scripps Media Center, home to the Scripps Howard News Service. Scripps newspapers include the Rocky Mountain News in Denver, the Commercial Appeal in Memphis, the Knoxville (Tenn.) News-Sentinel and the Ventura County (Calif.) Star.
Scripps Television Station Group, including six ABC-affiliated stations, three NBC affiliates and one independent. Scripps operates broadcast television stations in Detroit, Cleveland, Cincinnati, Phoenix, Tampa, Baltimore, Kansas City, Mo., West Palm Beach, Fla., Tulsa, Okla., and Lawrence, Kan.
Shop At Home Network, the company’s television retailing subsidiary, which 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 television stations.
United Media, a leading licensing and syndication company. United Media is the worldwide licensing and syndication home of Peanuts, Dilbert, For Better or For Worse and about 150 other features and characters.
###
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: August |
The E.W. Scripps Company | |
| Report date: September 13, 2004 |
513-977-3826 |
| August |
Year-to-date |
|||||||||||||||||
| ( amounts in millions, unless otherwise noted )
|
2004 |
2003 |
% |
2004 |
2003 |
% |
||||||||||||
| SEGMENT OPERATING REVENUES |
||||||||||||||||||
| Newspapers |
$ | 58.8 | $ | 59.0 | (0.3 | )% | $ | 465.6 | $ | 456.2 | 2.1 | % | ||||||
| Scripps Networks |
53.1 | 39.9 | 33.0 | % | 457.4 | 337.4 | 35.5 | % | ||||||||||
| Broadcast Television |
28.5 | 23.7 | 20.1 | % | 214.1 | 194.1 | 10.3 | % | ||||||||||
| Shop At Home |
19.9 | 18.0 | 10.7 | % | 179.2 | 152.3 | 17.7 | % | ||||||||||
| Licensing and Other Media |
7.6 | 8.4 | (9.4 | )% | 67.8 | 69.1 | (1.8 | )% | ||||||||||
| TOTAL |
$ | 167.9 | $ | 149.0 | 12.7 | % | $ | 1,384.2 | $ | 1,209.1 | 14.5 | % | ||||||
| NEWSPAPERS |
||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Local |
$ | 12.8 | $ | 13.4 | (4.7 | )% | $ | 108.4 | $ | 108.5 | 0.0 | % | ||||||
| Classified |
18.9 | 18.8 | 0.5 | % | 147.6 | 142.6 | 3.5 | % | ||||||||||
| National |
3.3 | 3.4 | (2.7 | )% | 25.4 | 25.2 | 0.5 | % | ||||||||||
| Preprints and other |
11.5 | 10.9 | 5.8 | % | 85.1 | 79.9 | 6.5 | % | ||||||||||
| Newspaper advertising |
46.5 | 46.5 | 0.0 | % | 366.5 | 356.2 | 2.9 | % | ||||||||||
| Circulation |
11.1 | 11.4 | (2.7 | )% | 88.5 | 91.2 | (2.9 | )% | ||||||||||
| Other |
1.3 | 1.1 | 13.5 | % | 10.6 | 8.8 | 21.3 | % | ||||||||||
| Newspapers |
$ | 58.8 | $ | 59.0 | (0.3 | )% | $ | 465.6 | $ | 456.2 | 2.1 | % | ||||||
| Ad inches (excluding JOAs) (in thousands) (1) |
||||||||||||||||||
| Local |
415 | 448 | (7.4 | )% | 3,420 | 3,617 | (5.4 | )% | ||||||||||
| Classified |
753 | 802 | (6.1 | )% | 5,926 | 5,931 | (0.1 | )% | ||||||||||
| National |
74 | 76 | (2.7 | )% | 639 | 637 | 0.3 | % | ||||||||||
| Full run ROP |
1,242 | 1,326 | (6.3 | )% | 9,986 | 10,186 | (2.0 | )% | ||||||||||
| Share of JOA operating profits (2) |
$ | 6.3 | $ | 6.8 | (8.3 | )% | $ | 44.4 | $ | 48.2 | (7.8 | )% | ||||||
| SCRIPPS NETWORKS |
||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Advertising |
$ | 41.0 | $ | 31.6 | 29.6 | % | $ | 361.9 | $ | 272.3 | 32.9 | % | ||||||
| Affiliate fees, net |
11.4 | 7.8 | 47.7 | % | 90.0 | 61.2 | 47.0 | % | ||||||||||
| Other |
0.6 | 0.5 | 17.1 | % | 5.5 | 4.0 | 37.9 | % | ||||||||||
| Scripps Networks |
$ | 53.1 | $ | 39.9 | 33.0 | % | $ | 457.4 | $ | 337.4 | 35.5 | % | ||||||
| Subscribers (3) |
||||||||||||||||||
| HGTV |
86.4 | 82.4 | 4.9 | % | ||||||||||||||
| Food Network |
85.2 | 80.9 | 5.3 | % | ||||||||||||||
| BROADCAST TELEVISION |
||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Local |
$ | 15.2 | $ | 14.6 | 4.4 | % | $ | 122.1 | $ | 119.1 | 2.5 | % | ||||||
| National |
8.4 | 7.7 | 8.7 | % | 64.8 | 63.1 | 2.7 | % | ||||||||||
| Political |
3.8 | 0.3 | 16.3 | 1.5 | ||||||||||||||
| Other |
1.1 | 1.1 | (2.6 | )% | 10.9 | 10.3 | 5.7 | % | ||||||||||
| Broadcast Television |
$ | 28.5 | $ | 23.7 | 20.1 | % | $ | 214.1 | $ | 194.1 | 10.3 | % | ||||||
| SHOP AT HOME |
||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Shop At Home |
$ | 19.9 | $ | 18.0 | 10.7 | % | $ | 179.2 | $ | 152.3 | 17.7 | % | ||||||
| Avg. full-time equivalent homes |
51.2 | 44.7 | 14.5 | % | 48.9 | 47.0 | 4.0 | % | ||||||||||
| (1) | Due to Hurricane Frances, ad inches for our Treasure Coast newspaper were not available. For comparative purposes Treasure Coast ad inches have been removed from all periods presented. |
| (2) | Excludes editorial costs. |
| (3) | Subscriber counts are according to the Nielsen Homevideo Index of homes that receive cable networks. |
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