DES MOINES, Iowa, March 21, 2017 /PRNewswire/ -- Meredith
Corporation (NYSE: MDP; meredith.com) - the leading media and
marketing company with local television brands in large,
fast-growing markets and national brands serving more than 110
million American women - today raised its earnings-per-share
outlook for its fiscal 2017 third quarter and full year.
For the third quarter of fiscal 2017, Meredith now expects
earnings per share to range from $0.85 to
$0.87, driven by stronger than expected advertising
performance, particularly from digital operations in both its
National and Local Media Groups. The higher outlook compares
to the previous range of $0.75 to
$0.80 communicated on January
25, 2017. Meredith will provide more details when it
reports fiscal 2017 third-quarter results on Thursday, April 27, 2017.
For full-year fiscal 2017, Meredith now expects record earnings
per share of $4.13 to $4.18 on a GAAP
basis, and $3.85 to $3.90 excluding
special items recorded in fiscal 2017. These expectations compare
to a range of $3.50 to $3.80 first
communicated on July 28, 2016.
"We continue to successfully execute the multiplatform
strategies we've implemented across our business units, and are
pleased that performance for our digital activities is surpassing
expectations," said Meredith Chairman and CEO Stephen M. Lacy. "Additionally, our other
business activities are performing as originally anticipated."
Lacy noted that Meredith also continues to execute its
successful Total Shareholder Return program. Key elements of
this program include:
- Ongoing dividend increases - Meredith raised its regular
stock dividend by 5.1 percent to $2.08 on an annualized basis on January 28, 2017. This marked the 24th
straight year of dividend increases for Meredith, which has paid an
annual dividend for 70 consecutive years.
- Strategic investments to scale the business and increase
shareholder value - Over the last few years, Meredith has
invested approximately $1 billion to
acquire leading broadcast, digital and print properties.
- Share repurchases - Meredith's ongoing share repurchase
program has $75 million remaining
under current authorizations as of December
31, 2016.
"We remain laser focused on delivering on our pledge to increase
shareholder value over time," Lacy said. "Our combination of great
media brands, an outstanding workforce, and pinpoint execution of
our strategic imperatives continues to drive our strong financial
performance."
RATIONALE FOR USE AND ACCESS TO NON-GAAP RESULTS
Management uses and presents GAAP and non-GAAP results to
evaluate and communicate its performance. Non-GAAP measures should
not be construed as alternatives to GAAP measures. Results
excluding special items are supplemental non-GAAP financial
measures. While these adjusted results are not a substitute
for reported results under GAAP, management believes this
information is useful as an aid in further understanding Meredith's
current performance, performance trends and financial
condition. Reconciliations of GAAP to non-GAAP measures are
available in the attached table.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This release contains certain forward-looking statements that
are subject to risks and uncertainties. These statements are
based on management's current knowledge and estimates of factors
affecting the Company and its operations. Statements in this
release that are forward-looking include, but are not limited to,
the Company's earnings-per-share outlook for the third
quarter and full-year fiscal 2017.
Actual results may differ materially from those currently
anticipated. Factors that could adversely affect future
results include, but are not limited to, downturns in national
and/or local economies; a softening of the domestic advertising
market; world, national or local events that could disrupt
broadcast television; increased consolidation among major
advertisers or other events depressing the level of advertising
spending; the unexpected loss or insolvency of one or more major
clients or vendors; the integration of acquired businesses; changes
in consumer reading, purchasing and/or television viewing patterns;
increases in paper, postage, printing, syndicated programming or
other costs; changes in television network affiliation agreements;
technological developments affecting products or methods of
distribution; changes in government regulations affecting the
Company's industries; increases in interest rates; and the
consequences of acquisitions and/or dispositions. The Company
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events or
otherwise.
ABOUT MEREDITH CORPORATION
Meredith Corporation (NYSE: MDP; meredith.com) has been
committed to service journalism for 115 years. Today, Meredith uses
multiple distribution platforms - including broadcast television,
print, digital, mobile and video - to provide consumers with
content they desire and to deliver the messages of its advertising
and marketing partners.
Meredith's Local Media Group includes 17 owned or operated
television stations reaching 11 percent of U.S. households.
Meredith's portfolio is concentrated in large, fast-growing
markets, with seven stations in the nation's Top 25 - including
Atlanta, Phoenix, St.
Louis and Portland - and 13
in Top 50 markets. Meredith's stations produce 700 hours of local
news and entertainment content each week, and operate leading local
digital destinations.
Meredith's National Media Group reaches more than 110 million
unduplicated women every month, including nearly 75 percent of U.S.
Millennial women. Meredith is the leader in creating and
distributing content across platforms in key consumer interest
areas such as food, home, parenting and lifestyle through
well-known brands such as Better Homes and Gardens, Allrecipes,
Parents and Shape. Meredith also features robust brand
licensing activities, including more than 4,000 SKUs of branded
products at 5,000 Walmart stores across the U.S. and at
walmart.com. Meredith Xcelerated Marketing is an
award-winning, strategic and creative agency that provides fully
integrated marketing solutions for many of the world's top brands,
including The Kraft Heinz Co., Bank of America, WebMD, Volkswagen
and NBCUniversal.
Table
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Special
Items - The following table shows projected diluted
earnings per share and projected diluted earnings per share
excluding special items with the difference being the special
items. Projected diluted earnings per share excluding special items
is a non-GAAP measure. Management's rationale for presenting
non-GAAP measures is included in the text of this press
release.
|
|
Year ended June
30, 2017
|
Low
|
|
High
|
Projected diluted
earnings per share
|
$
|
4.13
|
|
|
$
|
4.18
|
|
Special
items
|
|
|
|
Write-down of
contingent consideration payable
|
(0.26)
|
|
|
(0.26)
|
|
Resolution of
certain federal and state tax matters
|
(0.15)
|
|
|
(0.15)
|
|
Severance and
related benefit costs
|
0.10
|
|
|
0.10
|
|
Write-down of
impaired assets
|
0.02
|
|
|
0.02
|
|
Other
|
0.01
|
|
|
0.01
|
|
Projected diluted
earnings per share excluding special items
(non-GAAP)
|
$
|
3.85
|
|
|
$
|
3.90
|
|
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SOURCE Meredith Corporation