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 9, 2006
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)) |
THE E.W. SCRIPPS COMPANY
INDEX TO CURRENT REPORT ON FORM 8-K
| Item No. |
Page | |||
| 8.01 |
Other Events | 3 | ||
| 9.01 |
Financial Statements and Exhibits | 3 | ||
2
Item 8.01 Other Events
On November 9, 2006, we released information regarding revenue for certain of our operating segments for the month and year-to-date periods ended October 31, 2006. 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 9, 2006. |
3
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/ Joseph G. NeCastro | |
| Joseph G. NeCastro | ||
| Executive Vice President and Chief Financial Officer | ||
Dated: November 9, 2006
4
EXHIBIT 99
PRESS RELEASE
Scripps reports October revenue, statistics
| For immediate release |
(NYSE: SSP) |
Nov. 9, 2006
CINCINNATI – The E. W. Scripps Company today reported October revenue and statistics for its Scripps Networks, newspaper and television station group divisions.
At Scripps Networks revenue was up 8.8 percent to $91.8 million in October compared with the same month a year ago.
October advertising revenue at Scripps Networks was up 6.6 percent and affiliate fee revenue increased 16 percent. The company, which expects advertising revenue growth to strengthen in November and December, reiterated its previously issued guidance of 11 to 13 percent total revenue growth at Scripps Networks for the fourth quarter.
Scripps Networks includes the company’s portfolio of national cable and satellite television networks, including HGTV, Food Network, DIY Network, Fine Living and Great American Country (GAC). HGTV and Food Network can each be seen in about 91 million U.S. television households. DIY Network and Fine Living each can be seen in about 40 million households and GAC reached about 45 million U.S. households in October.
At the company’s television station group, October revenue was up 47 percent to $45.1 million, due to the strength of political advertising. Political advertising was $18.7 million for the month compared with $1.0 million in the year-ago period.
Declines in the station group’s local and national advertising categories reflect the displacement of regular inventory to accommodate the increased volume of political advertising business that occurred during the month.
The company now expects total revenue at the television station group to be up about 20 percent in the fourth quarter based on the strength of political advertising. The company had previously forecast an 11 to 13 percent increase in station group revenue for the period.
At newspapers managed solely by Scripps, total revenue was $59.7 million compared with $61.3 million during the same period a year ago. Newspaper advertising revenue decreased 1.5 percent during October, year over year.
Broken down by category, newspaper advertising revenue during the month was:
| • | Local, down 2.6 percent to $13.1 million. |
| • | Classified, down 3.2 percent to $18.4 million. |
| • | National, down 13 percent to $3.3 million. |
| • | Preprint, online and other, up 5.8 percent to $13.3 million. |
For competitive reasons, Scripps does not report monthly revenue and statistics for its interactive media division, which includes online search and price comparison services Shopzilla and uSwitch. The company reports revenue from the interactive media division on a quarterly basis.
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 2005 SEC Form 10K.
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 (NYSE: SSP) is a diverse and growing media enterprise with interests in national cable networks, newspaper publishing, broadcast television stations, interactive media, and licensing and syndication.
The company’s portfolio of media properties includes: Scripps Networks, with such brands as HGTV, Food Network, DIY Network, Fine Living and Great American Country; daily and community newspapers in 18 markets and the Washington-based Scripps Media Center, home to the Scripps Howard News Service; 10 broadcast TV stations, including six ABC-affiliated stations, three NBC affiliates and one independent; Scripps Interactive Media, including leading online search and comparison shopping services, Shopzilla and uSwitch; and United Media, a leading worldwide licensing and syndication company that is the home of PEANUTS, DILBERT and approximately 150 other features and comics.
###
Contact: Tim Stautberg, The E. W. Scripps Company, 513-977-3826
Email: stautberg@scripps.com
| THE E.W. SCRIPPS COMPANY
Unaudited Revenue and Statistical Summary Period: October Report date: November 9, 2006 |
For more information: Tim Stautberg The E.W. Scripps Company
513-977-3826 | |
REVENUE AND STATISTICAL SUMMARY FOR SELECTED OPERATING SEGMENTS
| ( amounts in millions, unless otherwise noted ) |
October | Year-to-date | ||||||||||||||||
| 2006 | 2005 | % | 2006 | 2005 | % | |||||||||||||
| SCRIPPS NETWORKS |
||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Advertising |
$ | 74.1 | $ | 69.5 | 6.6 | % | $ | 686.0 | $ | 594.1 | 15.5 | % | ||||||
| Affiliate fees, net |
16.0 | 13.8 | 16.0 | % | 162.6 | 139.0 | 16.9 | % | ||||||||||
| Other |
1.7 | 1.0 | 60.8 | % | 16.0 | 7.3 | ||||||||||||
| Scripps Networks |
$ | 91.8 | $ | 84.3 | 8.8 | % | $ | 864.5 | $ | 740.4 | 16.8 | % | ||||||
| Subscribers (1) |
||||||||||||||||||
| HGTV |
91.0 | 89.1 | 2.1 | % | ||||||||||||||
| Food Network |
90.9 | 88.1 | 3.2 | % | ||||||||||||||
| Great American Country |
44.7 | 39.3 | 13.7 | % | ||||||||||||||
| NEWSPAPERS (2) |
||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Local |
$ | 13.1 | $ | 13.5 | (2.6 | )% | $ | 130.0 | $ | 128.9 | 0.9 | % | ||||||
| Classified |
18.4 | 19.0 | (3.2 | )% | 193.9 | 185.3 | 4.7 | % | ||||||||||
| National |
3.3 | 3.8 | (13.0 | )% | 30.9 | 34.6 | (10.6 | )% | ||||||||||
| Preprints, online and other |
13.3 | 12.6 | 5.8 | % | 122.3 | 110.5 | 10.7 | % | ||||||||||
| Newspaper advertising |
48.2 | 49.0 | (1.5 | )% | 477.2 | 459.2 | 3.9 | % | ||||||||||
| Circulation |
9.8 | 10.9 | (10.2 | )% | 103.0 | 105.1 | (2.0 | )% | ||||||||||
| Other |
1.7 | 1.4 | 17.9 | % | 13.5 | 13.0 | 3.8 | % | ||||||||||
| Newspapers managed solely by us |
$ | 59.7 | $ | 61.3 | (2.6 | )% | $ | 593.7 | $ | 577.3 | 2.8 | % | ||||||
| Ad inches (excluding JOAs) (in thousands) |
||||||||||||||||||
| Local |
428 | 445 | (3.8 | )% | 4,336 | 4,438 | (2.3 | )% | ||||||||||
| Classified |
771 | 762 | 1.2 | % | 8,006 | 7,397 | 8.2 | % | ||||||||||
| National |
81 | 98 | (17.5 | )% | 799 | 928 | (13.9 | )% | ||||||||||
| Full run ROP |
1,280 | 1,306 | (1.9 | )% | 13,141 | 12,763 | 3.0 | % | ||||||||||
| BROADCAST TELEVISION |
||||||||||||||||||
| Operating Revenues |
||||||||||||||||||
| Local |
$ | 16.0 | $ | 18.9 | (15.8 | )% | $ | 168.2 | $ | 161.6 | 4.1 | % | ||||||
| National |
9.3 | 9.9 | (6.1 | )% | 84.8 | 83.7 | 1.3 | % | ||||||||||
| Political |
18.7 | 1.0 | 34.1 | 2.5 | ||||||||||||||
| Other |
1.2 | 0.9 | 35.0 | % | 9.9 | 11.2 | (10.9 | )% | ||||||||||
| Broadcast Television |
$ | 45.1 | $ | 30.7 | 46.9 | % | $ | 297.0 | $ | 258.9 | 14.7 | % | ||||||
| (1) | Subscriber counts are according to the Nielsen Homevideo Index of homes that receive cable networks. |
| (2) | On February 1, 2006, we contributed the Boulder Daily Camera, the Colorado Daily and the twice-weekly Broomfield Enterprise in exchange for a 50% interest in a partnership we jointly operate with MediaNews Group Inc. To enhance comparability the reported revenues do not include operating revenues of these newspapers prior to the formation of the partnership. Our 50% share of the operating profit (loss) of the partnership is reported as “Equity in earnings of JOAs and other joint ventures” in our financial statements. |