Meredith Corp. (MDP, Financial) filed Quarterly Report for the period ended 2010-03-31.
Meredith Corp. has a market cap of $1.69 billion; its shares were traded at around $37.22 with a P/E ratio of 19.3 and P/S ratio of 1.2. The dividend yield of Meredith Corp. stocks is 2.4%.MDP is in the portfolios of John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Chuck Royce of Royce& Associates, David Dreman of Dreman Value Management, Jeremy Grantham of GMO LLC, Jim Simons of Renaissance Technologies LLC.
While local media group total revenues declined 3 percent in the first nine months of fiscal 2010, they increased 20 percent in the third quarter. Non-political advertising revenues increased 16 percent in the third quarter and 2 percent for the first nine months of fiscal 2010. Local non-political advertising revenues increased 13 percent in the third quarter and were flat for the first nine months of fiscal 2010. National non-political advertising revenues increased 25 percent as compared to the prior-year quarter and were up 7 percent compared to the prior-year first nine months. Net political advertising revenues totaled $1.5 million in the third quarter and $5.4 million in the first nine months of the current fiscal year compared with $0.2 million in the prior-year third quarter and $23.1 million in the prior-year nine-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 revenues increased 20 percent as compared to the prior-year third quarter and were up 2 percent as compared to the prior-year nine months. Other revenue, which is primarily retransmission fees, increased 32 percent in the current quarter and 70 percent in the nine-month period. The increase is primarily due to new transmission agreements we have with cable and satellite operators in our markets.
Selling, general, and administrative expenses increased 14 percent in the third quarter and 2 percent in the nine-month period. Increases in performance-based incentive accruals, pension and other retirement plan costs, and consulting fees were partially offset by decreases in bad debt and legal expenses. While circulation expenses declined in the first nine months of fiscal 2010, they were higher in the third quarter. For the nine-month period, charitable contributions also decreased. 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 was a $1.3 million reversal of excess restructuring reserves recorded by the national media group. 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.
comparable prior-year quarter. For the nine months ended March 31, 2010, net interest expense was $14.7 million versus $15.4 million in the comparable prior-year period. Average long-term debt outstanding was $331 million in the third quarter of fiscal 2010 and $350 million for the nine-month period compared with $455 million in the prior- year third quarter and $462 million in the prior-year nine-month period. The Company's approximate weighted average interest rate was 5.4 percent in the first nine months of fiscal 2010 and 4.5 percent in the first nine months of fiscal 2009.
Earnings from continuing operations were $33.3 million ($0.73 per diluted share), an increase of 34 percent from fiscal 2009 third quarter earnings from continuing operations of $24.9 million ($0.55 per diluted share). For the nine months ended March 31, 2010, earnings were $70.6 million ($1.55 per diluted share), an increase of 15 percent from prior-year nine month earnings of $61.3 million ($1.36 per diluted share). The increase in the third quarter primarily reflects the increase in advertising revenues. For the nine-month period, the increase primarily reflects the reduction in operating expenses. In addition, the lower restructuring charges recorded in the current year compared to the prior year and the income tax benefits recorded in fiscal 2010 affected both the third quarter and nine-month period.
Net earnings were $33.3 million ($0.73 per diluted share) in the quarter ended March 31, 2010, up 31 percent from $25.4 million ($0.56 per diluted share) in the comparable prior-year quarter. For the nine months, net earnings were $70.6 million ($1.55 per diluted share), an increase of 25 percent from prior-year nine-month earnings of $56.6 million ($1.25 per diluted share). The increase in the third quarter primarily reflects the increase in advertising revenues. For the nine-month period, the increase primarily reflects the reduction in operating expenses in fiscal 2010 and the loss from discontinued operations in fiscal 2009. Lower restructuring charges recorded in the current year than in the prior year and the income tax benefits recorded in fiscal 2010 affected both the third quarter and nine-month period.
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Meredith Corp. has a market cap of $1.69 billion; its shares were traded at around $37.22 with a P/E ratio of 19.3 and P/S ratio of 1.2. The dividend yield of Meredith Corp. stocks is 2.4%.MDP is in the portfolios of John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Chuck Royce of Royce& Associates, David Dreman of Dreman Value Management, Jeremy Grantham of GMO LLC, Jim Simons of Renaissance Technologies LLC.
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 was a $1.3 million reversal of excess restructuring accrual 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 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.While local media group total revenues declined 3 percent in the first nine months of fiscal 2010, they increased 20 percent in the third quarter. Non-political advertising revenues increased 16 percent in the third quarter and 2 percent for the first nine months of fiscal 2010. Local non-political advertising revenues increased 13 percent in the third quarter and were flat for the first nine months of fiscal 2010. National non-political advertising revenues increased 25 percent as compared to the prior-year quarter and were up 7 percent compared to the prior-year first nine months. Net political advertising revenues totaled $1.5 million in the third quarter and $5.4 million in the first nine months of the current fiscal year compared with $0.2 million in the prior-year third quarter and $23.1 million in the prior-year nine-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 revenues increased 20 percent as compared to the prior-year third quarter and were up 2 percent as compared to the prior-year nine months. Other revenue, which is primarily retransmission fees, increased 32 percent in the current quarter and 70 percent in the nine-month period. The increase is primarily due to new transmission agreements we have with cable and satellite operators in our markets.
Selling, general, and administrative expenses increased 14 percent in the third quarter and 2 percent in the nine-month period. Increases in performance-based incentive accruals, pension and other retirement plan costs, and consulting fees were partially offset by decreases in bad debt and legal expenses. While circulation expenses declined in the first nine months of fiscal 2010, they were higher in the third quarter. For the nine-month period, charitable contributions also decreased. 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 was a $1.3 million reversal of excess restructuring reserves recorded by the national media group. 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.
comparable prior-year quarter. For the nine months ended March 31, 2010, net interest expense was $14.7 million versus $15.4 million in the comparable prior-year period. Average long-term debt outstanding was $331 million in the third quarter of fiscal 2010 and $350 million for the nine-month period compared with $455 million in the prior- year third quarter and $462 million in the prior-year nine-month period. The Company's approximate weighted average interest rate was 5.4 percent in the first nine months of fiscal 2010 and 4.5 percent in the first nine months of fiscal 2009.
Earnings from continuing operations were $33.3 million ($0.73 per diluted share), an increase of 34 percent from fiscal 2009 third quarter earnings from continuing operations of $24.9 million ($0.55 per diluted share). For the nine months ended March 31, 2010, earnings were $70.6 million ($1.55 per diluted share), an increase of 15 percent from prior-year nine month earnings of $61.3 million ($1.36 per diluted share). The increase in the third quarter primarily reflects the increase in advertising revenues. For the nine-month period, the increase primarily reflects the reduction in operating expenses. In addition, the lower restructuring charges recorded in the current year compared to the prior year and the income tax benefits recorded in fiscal 2010 affected both the third quarter and nine-month period.
Net earnings were $33.3 million ($0.73 per diluted share) in the quarter ended March 31, 2010, up 31 percent from $25.4 million ($0.56 per diluted share) in the comparable prior-year quarter. For the nine months, net earnings were $70.6 million ($1.55 per diluted share), an increase of 25 percent from prior-year nine-month earnings of $56.6 million ($1.25 per diluted share). The increase in the third quarter primarily reflects the increase in advertising revenues. For the nine-month period, the increase primarily reflects the reduction in operating expenses in fiscal 2010 and the loss from discontinued operations in fiscal 2009. Lower restructuring charges recorded in the current year than in the prior year and the income tax benefits recorded in fiscal 2010 affected both the third quarter and nine-month period.
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