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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) February 28, 2007
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)) |
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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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| Item 8.01 | Other Events |
On February 28, 2007, we released information updating the Company’s first quarter and full year financial outlook for 2007. 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 February 28, 2007. | ||||
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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/ Kennneth W. Lowe | |||
| Kennneth W. Lowe | ||||
| President and Chief Executive Officer | ||||
| Dated: February 28, 2007 | ||||
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| PRESS RELEASE |
EXHIBIT 99 |
Scripps updates financial outlook
| For immediate release | (NYSE: SSP) |
Feb. 28, 2007
CINCINNATI - The E. W. Scripps Company has updated its financial outlook for the first quarter and full-year 2007 to reflect changing business conditions for its newspaper publishing and interactive media businesses.
First quarter income from continuing operations is now expected to be 33 cents to 37 cents per share compared with the previously issued guidance of 39 cents to 43 cents per share. Income from continuing operations during the first quarter of 2006 was 49 cents per share.
The revised earnings forecast is due to softer-than-expected newspaper advertising sales, costs related to the transition in leadership at Shopzilla, and relative softness in activity at the company’s Internet search businesses.
Scripps has made no changes to its financial forecasts for Scripps Networks, its biggest operating division and home to its portfolio of popular national lifestyle television networks.
As previously forecast, Scripps Networks total revenue is expected to be up 10 to 12 percent in the first quarter and up 10 to 13 percent for the full year. Scripps Networks expenses are expected to be up 9 percent in the first quarter and up 8 to 10 percent for the full year, which is no change from the previously issued guidance.
At Scripps newspapers, the company expects total revenue to be down 6 to 8 percent in the first quarter compared to the same period a year ago. The company had previously forecast newspaper revenue for the first quarter to decline 5 to 7 percent year over year.
For the full year, the company expects the percentage decrease in newspaper revenue to be in the low single digits, as previously forecast. Likewise, there has been no change in anticipated newspaper expenses, which are expected to be up 1 to 3 percent in the first quarter and for the full year.
The company also has revised its first-quarter and full-year segment profit forecast for its Scripps Interactive Media division, which includes comparison shopping services Shopzilla and uSwitch.
The company now expects Interactive Media segment profit to break even for the first quarter compared with the previous forecast of $9 million in segment profit for the period.
For the full year, Interactive Media segment profit is now expected to be $60 million to $70 million, including costs related to the transition in leadership at Shopzilla. The company previously had said that it expected full-year segment profit for the interactive media division to be $80 million to $85 million.
The company has not revised financial forecasts for its Scripps Television Station Group. Television station revenue is expected to be down 7 to 10 percent in the first quarter and down 3 to 5 percent for the full year as earlier anticipated. Previously issued guidance for the percentage increase in TV station expenses, which are expected to be up in the low single digits, also has not changed.
The company reiterated its previously issued full-year guidance for other items. Those items include:
| • | Capital expenditures, about $125 million. |
| • | Depreciation and amortization, $130 million. |
| • | Interest expense, $37 million. |
| • | Minority interest, $83 million. |
The company’s 2007 tax rate is expected to be 33 percent, as previously anticipated.
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.
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Contact: Tim Stautberg, The E. W. Scripps Company, 513-977-3826
Email: stautberg@scripps.com