Meredith Corp. (MDP, Financial) filed Quarterly Report for the period ended 2009-12-31.
Meredith Corp. has a market cap of $1.44 billion; its shares were traded at around $31.77 with a P/E ratio of 16.5 and P/S ratio of 1.1. The dividend yield of Meredith Corp. stocks is 2.8%. Meredith Corp. had an annual average earning growth of 6.3% over the past 10 years. GuruFocus rated Meredith Corp. the business predictability rank of 2-star.MDP is in the portfolios of John Rogers of ARIEL CAPITAL MANAGEMENT LLC, John Hussman of Hussman Economtrics Advisors, Inc., Chuck Royce of ROYCE & ASSOCIATES, David Dreman of Dreman Value Management, Jeremy Grantham of GMO LLC.
Local media group total revenues declined 10 percent in the second quarter and 12 percent in the first six months of fiscal 2010 compared with the respective prior-year periods. While non-political advertising revenues declined 4 percent for the first six months of fiscal 2010, they increased 4 percent in the second quarter. Local non-political advertising revenues were flat in the second quarter and decreased 7 percent for the first six months of fiscal 2010. National non-political advertising increased 11 percent as compared to the prior-year quarter and were flat compared to the prior-year first six months. Net political advertising revenues totaled $2.9 million in the second quarter and $3.8 million in the first six months of the current fiscal year compared with $17.0 million in the prior-year second quarter and $22.9 million in the prior-year six-month period. Fluctuations in political advertising revenues at our stations and throughout the broadcasting industry generally follow the biennial cycle of election campaigns. Political advertising may displace a certain amount of non-political advertising; therefore, the revenues may not be entirely incremental. Online advertising increased 12 percent as compared to the prior-year second quarter and declined 4 percent as compared to the prior year six months. Other revenue, which is primarily retransmission fees, approximately doubled in both the current quarter and in the six-month period. The increase is primarily due to new transmission agreements we have with the cable and satellite operators in our markets.
Second quarter selling, general, and administrative expenses decreased 4 percent in the second quarter and the six-month period. In the second quarter of fiscal 2009, severance and related benefit costs of $9.0 million related to the companywide reduction in workforce were recorded in selling, general, and administrative expenses. This compares to $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 being recorded in selling, general, and administrative expenses in the second quarter of fiscal 2010. With regard to on-going operating expenses, declines in circulation expenses, bad debt expenses, Meredith Foundation charitable contributions, advertising and promotion expenses, and research expenses were partially offset by increases in pension and other retirement plan costs, performance-based incentive accruals, and consulting fees.
Net interest expense increased to $5.7 million in the fiscal 2010 second quarter compared with $5.2 million in the comparable prior-year quarter. For the six months ended December 31, 2009, net interest expense was $10.8 million versus $10.6 million in the comparable prior-year period. Average long-term debt outstanding was $353 million in the second quarter of fiscal 2010 and $360 million for the six-month period compared with $460 million in the prior year second quarter and $465 million in the prior year six-month period. The Company's approximate weighted average interest rate was 5.7 percent in the first six months of fiscal 2010 and 4.6 percent in the first six months of fiscal 2009.
Earnings from continuing operations were $19.0 million ($0.42 per diluted share), an increase of 9 percent from fiscal 2009 second quarter earnings from continuing operations of $17.4 million ($0.39 per diluted share). For the six months ended December 31, 2009, earnings were $37.3 million ($0.82 per diluted share), an increase of 2 percent from prior-year six month earnings of $36.5 million ($0.81 per diluted share). The increase is primarily due to lower restructuring charges recorded in the current year than in the prior year and the income tax benefit recorded in the first quarter of fiscal 2010.
Net earnings were $19.0 million ($0.42 per diluted share) in the quarter ended December 31, 2009, up 51 percent from $12.5 million ($0.28 per diluted share) in the comparable prior-year quarter. For the six months ended December 31, 2009, earnings were $37.3 million ($0.82 per diluted share), an increase of 20 percent from prior-year six month earnings of $31.2 million ($0.69 per diluted share). The increases are primarily due to the loss from discontinued operations in fiscal 2009 and the income tax benefit recorded in the first quarter of fiscal 2010.
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Meredith Corp. has a market cap of $1.44 billion; its shares were traded at around $31.77 with a P/E ratio of 16.5 and P/S ratio of 1.1. The dividend yield of Meredith Corp. stocks is 2.8%. Meredith Corp. had an annual average earning growth of 6.3% over the past 10 years. GuruFocus rated Meredith Corp. the business predictability rank of 2-star.MDP is in the portfolios of John Rogers of ARIEL CAPITAL MANAGEMENT LLC, John Hussman of Hussman Economtrics Advisors, Inc., Chuck Royce of ROYCE & ASSOCIATES, David Dreman of Dreman Value Management, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
National media group operating costs decreased 10 percent in both the second quarter and first six months of fiscal 2010. Integrated marketing production expenses decreased due to the decline in integrated marketing revenues. Book manufacturing costs decreased due to the changes made in the book business model. Circulation expenses, employee compensation costs, LIFO reserve expense, other delivery costs, and advertising and promotion expenses declined in the second quarter and the first six months of fiscal 2010. Paper costs decreased primarily due to a reduction in average paper prices of approximately 16 percent in the second quarter and 12 percent for the first six months. These cost reductions were partially offset by increased processing costs, pension expenses and performance-based incentive accruals. In addition, in the second quarter of fiscal 2010, the write-off of subscription acquisition costs of $1.8 million and of 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. In the second quarter of fiscal 2009, severance and related benefit costs of $6.0 million recorded on the national media group segment related to the companywide reduction in workforce.Local media group total revenues declined 10 percent in the second quarter and 12 percent in the first six months of fiscal 2010 compared with the respective prior-year periods. While non-political advertising revenues declined 4 percent for the first six months of fiscal 2010, they increased 4 percent in the second quarter. Local non-political advertising revenues were flat in the second quarter and decreased 7 percent for the first six months of fiscal 2010. National non-political advertising increased 11 percent as compared to the prior-year quarter and were flat compared to the prior-year first six months. Net political advertising revenues totaled $2.9 million in the second quarter and $3.8 million in the first six months of the current fiscal year compared with $17.0 million in the prior-year second quarter and $22.9 million in the prior-year six-month period. Fluctuations in political advertising revenues at our stations and throughout the broadcasting industry generally follow the biennial cycle of election campaigns. Political advertising may displace a certain amount of non-political advertising; therefore, the revenues may not be entirely incremental. Online advertising increased 12 percent as compared to the prior-year second quarter and declined 4 percent as compared to the prior year six months. Other revenue, which is primarily retransmission fees, approximately doubled in both the current quarter and in the six-month period. The increase is primarily due to new transmission agreements we have with the cable and satellite operators in our markets.
Second quarter selling, general, and administrative expenses decreased 4 percent in the second quarter and the six-month period. In the second quarter of fiscal 2009, severance and related benefit costs of $9.0 million related to the companywide reduction in workforce were recorded in selling, general, and administrative expenses. This compares to $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 being recorded in selling, general, and administrative expenses in the second quarter of fiscal 2010. With regard to on-going operating expenses, declines in circulation expenses, bad debt expenses, Meredith Foundation charitable contributions, advertising and promotion expenses, and research expenses were partially offset by increases in pension and other retirement plan costs, performance-based incentive accruals, and consulting fees.
Net interest expense increased to $5.7 million in the fiscal 2010 second quarter compared with $5.2 million in the comparable prior-year quarter. For the six months ended December 31, 2009, net interest expense was $10.8 million versus $10.6 million in the comparable prior-year period. Average long-term debt outstanding was $353 million in the second quarter of fiscal 2010 and $360 million for the six-month period compared with $460 million in the prior year second quarter and $465 million in the prior year six-month period. The Company's approximate weighted average interest rate was 5.7 percent in the first six months of fiscal 2010 and 4.6 percent in the first six months of fiscal 2009.
Earnings from continuing operations were $19.0 million ($0.42 per diluted share), an increase of 9 percent from fiscal 2009 second quarter earnings from continuing operations of $17.4 million ($0.39 per diluted share). For the six months ended December 31, 2009, earnings were $37.3 million ($0.82 per diluted share), an increase of 2 percent from prior-year six month earnings of $36.5 million ($0.81 per diluted share). The increase is primarily due to lower restructuring charges recorded in the current year than in the prior year and the income tax benefit recorded in the first quarter of fiscal 2010.
Net earnings were $19.0 million ($0.42 per diluted share) in the quarter ended December 31, 2009, up 51 percent from $12.5 million ($0.28 per diluted share) in the comparable prior-year quarter. For the six months ended December 31, 2009, earnings were $37.3 million ($0.82 per diluted share), an increase of 20 percent from prior-year six month earnings of $31.2 million ($0.69 per diluted share). The increases are primarily due to the loss from discontinued operations in fiscal 2009 and the income tax benefit recorded in the first quarter of fiscal 2010.
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