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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) November 10, 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
| Item No. |
Page | |||
| 8.01 |
Other Events | 3 | ||
| 9.01 |
Financial Statements and Exhibits | 3 | ||
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On November 10, 2004, we released information regarding our consolidated revenue for the month ended October 31, 2004 and updated guidance previously provided in our third quarter earnings release dated October 14, 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 November 10, 2004. |
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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: November 10, 2004
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| PRESS RELEASE | Exhibit 99 |
Scripps reports October revenues
| For immediate release |
(NYSE: SSP) | |
| Nov. 10, 2004 |
CINCINNATI – The E. W. Scripps Company’s consolidated revenue for October increased 23 percent year-over-year to $204 million.
Revenue for the company’s fastest growing division, Scripps Networks, was up 25 percent to $65.0 million. October advertising revenue at Scripps Networks was up 21 percent and affiliate fee revenue increased 55 percent. Scripps Networks includes the company’s portfolio of national cable and satellite television networks, including Home & Garden Television, Food Network, DIY Network and Fine Living.
HGTV and Food Network could be seen in 87 million and 86 million U.S. television households, respectively, during October. The company’s newer networks, DIY and Fine Living, can be seen in about 30 million and 24 million households, respectively.
At the company’s newspapers, October revenue was $63.3 million, up 8.5 percent year over year. There was one additional Sunday during the month compared to the same year-ago period, which is reflected in the year-over-year comparisons for newspapers.
Newspaper advertising revenue for the month, broken down by category, was:
| • | Local, up 2.7 percent to $14.7 million. |
| • | Classified, up 12 percent to $19.3 million. |
| • | National, up 5.8 percent to $3.8 million. |
| • | Preprint and other, up 16 percent to $12.4 million. |
The company’s share of profits from its four joint newspaper operations, before editorial costs, was $8.7 million compared to $7.3 million in October 2003. The increase reflects the benefit of the additional Sunday during the month.
October revenue at Shop At Home Network, the company’s television retailing subsidiary, was up 47 percent to $24.3 million. Distribution for the network averaged 53 million full-time equivalent households in October, up 18 percent from the year-ago period.
At the company’s broadcast television stations (excluding Shop At Home affiliated stations) revenue for the month was up 44 percent to $42.7 million due to a surge of political advertising at most of the company’s television stations. Broadcast television revenue reflects $19.2 million in political advertising during the month vs. $800,000 in the year-ago period. Year-over-year comparisons of local and national broadcast television advertising during October, excluding political, reflect the displacement caused by the increased volume of political advertising during the month.
Guidance
Based on stronger-than-expected political advertising in October, the company now expects total broadcast television advertising revenues to grow 15 to 20 percent in the fourth quarter. The company had previously forecast broadcast television advertising revenues to be up about 13 percent in the fourth quarter.
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-29 of its most recent Form 10Q.
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We undertake no obligation to publicly update any forward-looking statements to reflect events for 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 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 19 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 53 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: October |
The E.W. Scripps Company | |
| Report date: November 10, 2004 |
513-977-3826 |
| ( amounts in millions, unless otherwise noted ) |
October |
Year-to-date |
||||||||||||||||
| 2004 |
2003 |
% |
2004 |
2003 |
% |
|||||||||||||
| SEGMENT OPERATING REVENUES |
||||||||||||||||||
| Newspapers |
$ | 63.3 | $ | 58.3 | 8.5 | % | $ | 582.4 | $ | 567.7 | 2.6 | % | ||||||
| Scripps Networks |
65.0 | 51.8 | 25.4 | % | 584.1 | 431.9 | 35.3 | % | ||||||||||
| Broadcast Television |
42.7 | 29.8 | 43.5 | % | 286.4 | 251.1 | 14.1 | % | ||||||||||
| Shop At Home |
24.3 | 16.6 | 46.5 | % | 228.1 | 190.0 | 20.0 | % | ||||||||||
| Licensing and Other Media |
9.0 | 9.7 | (6.7 | )% | 84.1 | 86.1 | (2.3 | )% | ||||||||||
| TOTAL |
$ | 204.3 | $ | 166.2 | 23.0 | % | $ | 1,765.1 | $ | 1,526.7 | 15.6 | % | ||||||
| NEWSPAPERS (1) |
||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Local |
$ | 14.7 | $ | 14.4 | 2.7 | % | $ | 135.8 | $ | 135.3 | 0.4 | % | ||||||
| Classified |
19.3 | 17.3 | 11.5 | % | 182.9 | 176.6 | 3.5 | % | ||||||||||
| National |
3.8 | 3.6 | 5.8 | % | 32.8 | 31.8 | 3.0 | % | ||||||||||
| Preprints and other |
12.4 | 10.7 | 15.7 | % | 107.7 | 100.0 | 7.8 | % | ||||||||||
| Newspaper advertising |
50.2 | 45.9 | 9.3 | % | 459.2 | 443.7 | 3.5 | % | ||||||||||
| Circulation |
11.5 | 11.0 | 5.1 | % | 109.7 | 112.6 | (2.6 | )% | ||||||||||
| Other |
1.6 | 1.4 | 10.8 | % | 13.5 | 11.4 | 18.6 | % | ||||||||||
| Newspapers |
$ | 63.3 | $ | 58.3 | 8.5 | % | $ | 582.4 | $ | 567.7 | 2.6 | % | ||||||
| Ad inches (excluding JOAs) (in thousands) |
||||||||||||||||||
| Local |
656 | 601 | 9.1 | % | 5,893 | 5,855 | 0.7 | % | ||||||||||
| Classified |
892 | 873 | 2.2 | % | 8,773 | 8,786 | (0.1 | )% | ||||||||||
| National |
120 | 123 | (2.8 | )% | 1,073 | 1,090 | (1.5 | )% | ||||||||||
| Full run ROP |
1,668 | 1,597 | 4.4 | % | 15,739 | 15,731 | 0.1 | % | ||||||||||
| Share of JOA operating profits (2) |
$ | 8.7 | $ | 7.3 | 19.3 | % | $ | 60.6 | $ | 61.2 | (1.0 | )% | ||||||
| SCRIPPS NETWORKS |
||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Advertising |
$ | 52.6 | $ | 43.4 | 21.0 | % | $ | 460.6 | $ | 350.0 | 31.6 | % | ||||||
| Affiliate fees, net |
11.8 | 7.6 | 54.5 | % | 116.3 | 76.7 | 51.7 | % | ||||||||||
| Other |
0.6 | 0.8 | (14.7 | )% | 7.2 | 5.2 | 39.4 | % | ||||||||||
| Scripps Networks |
$ | 65.0 | $ | 51.8 | 25.4 | % | $ | 584.1 | $ | 431.9 | 35.3 | % | ||||||
| Subscribers (3) |
||||||||||||||||||
| HGTV |
87.3 | 83.9 | 4.1 | % | ||||||||||||||
| Food Network |
85.6 | 82.5 | 3.8 | % | ||||||||||||||
| BROADCAST TELEVISION |
||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Local |
$ | 14.4 | $ | 17.5 | (17.5 | )% | $ | 151.3 | $ | 152.5 | (0.8 | )% | ||||||
| National |
7.9 | 10.2 | (23.2 | )% | 81.3 | 82.4 | (1.3 | )% | ||||||||||
| Political |
19.2 | 0.8 | 39.7 | 2.8 | ||||||||||||||
| Other |
1.3 | 1.3 | (4.8 | )% | 14.1 | 13.4 | 5.4 | % | ||||||||||
| Broadcast Television |
$ | 42.7 | $ | 29.8 | 43.5 | % | $ | 286.4 | $ | 251.1 | 14.1 | % | ||||||
| SHOP AT HOME |
||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Shop At Home |
$ | 24.3 | $ | 16.6 | 46.5 | % | $ | 228.1 | $ | 190.0 | 20.0 | % | ||||||
| Avg. full-time equivalent homes |
53.2 | 45.0 | 18.2 | % | 49.7 | 46.5 | 6.9 | % | ||||||||||
| (1) | October 2004 had 5 Sundays, versus 4 Sundays in 2003. |
| (2) | Excludes editorial costs. |
| (3) | Subscriber counts are according to the Nielsen Homevideo Index of homes that receive cable networks. |
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