Meredith Corp. (MDP, Financial) filed Quarterly Report for the period ended 2011-03-31.
Meredith Corp. has a market cap of $1.64 billion; its shares were traded at around $35.94 with a P/E ratio of 12.7 and P/S ratio of 1.2. The dividend yield of Meredith Corp. stocks is 2.9%. Meredith Corp. had an annual average earning growth of 4.2% over the past 10 years.
Local media group total revenues increased 3 percent in the third quarter and 19 percent in the first nine months of fiscal 2011. The three month increase primarily reflects higher non-political advertising revenues and the nine month increase was due primarily to higher political advertising related to the November 2010 elections. Political advertising revenues totaled $0.7 million in the third quarter and $34.3 million in the first nine months of the current fiscal year compared with $1.5 million in the prior-year third quarter and $5.4 million in the prior-year nine-
In the third quarter of fiscal 2010, the national media group recorded $1.7 million in severance and benefit costs related to the realignment of our digital operations. Partially offsetting this charge in the third quarter of fiscal 2010 was a $1.3 million reversal of excess restructuring reserves previously recorded by the national media group. In the second quarter of fiscal 2010, $2.2 million of severance and related benefit costs and the write-off of deferred subscription acquisition costs of $1.8 million related to the repositioning of our SIM operations were recorded in selling, general, and administrative expenses.
Net interest expense decreased to $3.1 million in the fiscal 2011 third quarter compared with $3.9 million in the comparable prior-year quarter. For the nine months ended March 31, 2011, net interest expense was $10.0 million versus $14.7 million in the comparable prior-year period. Average long-term debt outstanding was $230 million in the third quarter of fiscal 2011 and $263 million for the nine-month period compared with $331 million in the prior year third quarter and $350 million in the prior year nine-month period. The Company's approximate weighted average interest rate was 5.1 percent in the first nine months of fiscal 2011 and 5.4 percent in the first nine months of fiscal 2010.
Net earnings were $30.8 million ($0.67 per diluted share) in the quarter ended March 31, 2011, down 7 percent from $33.3 million ($0.73 per diluted share) in the comparable prior-year quarter. For the nine months ended March 31, 2011, earnings were $97.1 million ($2.12 per diluted share), an increase of 38 percent from prior-year nine month earnings of $70.6 million ($1.55 per diluted share). The decline in the third quarter is primarily due to lower operating profit in our magazine and interactive media operations in our national media segment. The improvements in the nine-month period were primarily the result of revenue growth and higher operating profit in our local media segment and improved profits in our brand licensing and interactive media operations partially offset by a decline in the operating profit of magazine operations. Both average basic and diluted shares outstanding increased slightly in the current quarter and in the nine-month period.
At March 31, 2011, long-term debt outstanding totaled $225.0 million ($175.0 million in fixed-rate unsecured senior notes and $50.0 million under an asset-backed bank facility). Of the senior notes, $50.0 million is due in the next 12 months. We expect to repay these senior notes with cash from operations and credit available under existing credit agreements. The weighted average effective interest rate for the fixed-rate notes was 5.72 percent. The interest rate on the asset-backed bank facility is variable based on the London Interbank Offered Rate (LIBOR) plus a fixed spread. As of March 31, 2011, the asset-backed bank facility had a capacity of up to $100 million. In April 2011, we renewed our asset-backed bank facility for an additional two year period under terms substantially similar to those previously in place. The renewed facility will expire in April 2013.
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Meredith Corp. has a market cap of $1.64 billion; its shares were traded at around $35.94 with a P/E ratio of 12.7 and P/S ratio of 1.2. The dividend yield of Meredith Corp. stocks is 2.9%. Meredith Corp. had an annual average earning growth of 4.2% over the past 10 years.
Highlight of Business Operations:
In the third quarter of fiscal 2010, the national media group recorded $1.7 million in severance and benefit costs related to the realignment of digital operations. Partially offsetting this charge in the third quarter of fiscal 2010 was a $1.3 million reversal of excess restructuring accrual previously recorded by the national media group. In the second quarter of fiscal 2010, the write-off of subscription acquisition costs of $1.8 million and manuscript and art inventory of $1.5 million, and severance and related benefit costs of $2.2 million related to the repositioning of our SIM operations, were recorded by the national media group segment.Local media group total revenues increased 3 percent in the third quarter and 19 percent in the first nine months of fiscal 2011. The three month increase primarily reflects higher non-political advertising revenues and the nine month increase was due primarily to higher political advertising related to the November 2010 elections. Political advertising revenues totaled $0.7 million in the third quarter and $34.3 million in the first nine months of the current fiscal year compared with $1.5 million in the prior-year third quarter and $5.4 million in the prior-year nine-
In the third quarter of fiscal 2010, the national media group recorded $1.7 million in severance and benefit costs related to the realignment of our digital operations. Partially offsetting this charge in the third quarter of fiscal 2010 was a $1.3 million reversal of excess restructuring reserves previously recorded by the national media group. In the second quarter of fiscal 2010, $2.2 million of severance and related benefit costs and the write-off of deferred subscription acquisition costs of $1.8 million related to the repositioning of our SIM operations were recorded in selling, general, and administrative expenses.
Net interest expense decreased to $3.1 million in the fiscal 2011 third quarter compared with $3.9 million in the comparable prior-year quarter. For the nine months ended March 31, 2011, net interest expense was $10.0 million versus $14.7 million in the comparable prior-year period. Average long-term debt outstanding was $230 million in the third quarter of fiscal 2011 and $263 million for the nine-month period compared with $331 million in the prior year third quarter and $350 million in the prior year nine-month period. The Company's approximate weighted average interest rate was 5.1 percent in the first nine months of fiscal 2011 and 5.4 percent in the first nine months of fiscal 2010.
Net earnings were $30.8 million ($0.67 per diluted share) in the quarter ended March 31, 2011, down 7 percent from $33.3 million ($0.73 per diluted share) in the comparable prior-year quarter. For the nine months ended March 31, 2011, earnings were $97.1 million ($2.12 per diluted share), an increase of 38 percent from prior-year nine month earnings of $70.6 million ($1.55 per diluted share). The decline in the third quarter is primarily due to lower operating profit in our magazine and interactive media operations in our national media segment. The improvements in the nine-month period were primarily the result of revenue growth and higher operating profit in our local media segment and improved profits in our brand licensing and interactive media operations partially offset by a decline in the operating profit of magazine operations. Both average basic and diluted shares outstanding increased slightly in the current quarter and in the nine-month period.
At March 31, 2011, long-term debt outstanding totaled $225.0 million ($175.0 million in fixed-rate unsecured senior notes and $50.0 million under an asset-backed bank facility). Of the senior notes, $50.0 million is due in the next 12 months. We expect to repay these senior notes with cash from operations and credit available under existing credit agreements. The weighted average effective interest rate for the fixed-rate notes was 5.72 percent. The interest rate on the asset-backed bank facility is variable based on the London Interbank Offered Rate (LIBOR) plus a fixed spread. As of March 31, 2011, the asset-backed bank facility had a capacity of up to $100 million. In April 2011, we renewed our asset-backed bank facility for an additional two year period under terms substantially similar to those previously in place. The renewed facility will expire in April 2013.
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