Drmicrocap
11 years ago
Martha Stewart Living Omnimedia Reports Fourth Quarter and Full Year 2013 Results
PR Newswire Martha Stewart Living Omnimedia, Inc.
2 minutes ago
NEW YORK, Feb. 25, 2014 /PRNewswire/ -- Martha Stewart Living Omnimedia, Inc. (MSO) today announced its results for the fourth quarter and full year ended December 31, 2013. The Company reported net income for the fourth quarter of $7.0 million and net loss for the full year of $(1.8) million.
"We ended the full year with a $54.5 million improvement in Operating Income from the prior year. In the fourth quarter just completed, growth in Merchandising was offset by anticipated lower revenues from Publishing which was expected due to the restructuring that took place in the prior year to reduce our print title count from four to two," said Dan Dienst, Chief Executive Officer. "As promised, we also took some aggressive and important steps in the last quarter of 2013 to align our cost structure with marketplace realities and more importantly to become nimbler, more efficient, generators of ideas, inspirations, content and product. We also promised to put to bed several pieces of notable and distracting litigation, and we did so." Mr. Dienst continued, "With some of the best, brightest and most passionate employees in our business lines – all of whom have embraced our new way of chasing opportunities as One Company - we are very excited about the groundwork we will lay in 2014 for tapping our esteemed brand's fullest potential."
Fourth Quarter 2013 Summary
Total revenues were $47.4 million in the fourth quarter of 2013, compared to $56.4 million in the fourth quarter of 2012 as the 2012 publishing restructuring resulted in lower revenues partially offset by growth in Merchandising.
Total operating income for the fourth quarter of 2013 was $5.9 million compared with $1.4 million in the prior-year period.
Basic and diluted net income per share was $0.12 for the fourth quarter of 2013, compared to $0.02 for the fourth quarter of 2012.
Full-Year 2013 Summary
Total revenues were $160.7 million in 2013, compared to $197.6 million in 2012.
Total operating loss for the full year 2013 was $(1.9) million compared to an operating loss of $(56.4) million in 2012. Included in 2012 results was a $(44.3) million non-cash impairment charge reflecting the write-down of goodwill related to the Company's publishing segment.
Net loss per share was $(0.03) for the full year 2013, compared to a net loss per share of $(0.83) in 2012.
Fourth Quarter 2013 Results by Segment
Three Months Ended December 31
(unaudited, in thousands)
2013
2012
REVENUES
Publishing
$
28,420
$
35,332
Merchandising
18,216
16,219
Broadcasting
769
4,812
Total Revenues
$
47, 405
$
56,363
OPERATING (LOSS) / INCOME
Publishing
$
(1,787)
$
(2,343)
Merchandising
13,640
11,330
Broadcasting
343
2,953
Corporate
(6,336)
(10,580)
Total Operating Income
$
5,860
$
1,360
Recent Business Highlights
MSLO continues to engage consumers via social media, demonstrated by almost 9 million fans and followers across all its platforms including 1 million fans on Facebook and almost 3 million followers on Twitter.
In December, Martha Stewart Living won Adweek's Hot List Award for Hottest Women's Magazine.
For the second year in a row, Martha Stewart Living was recognized by Apple as one of the best newsstand apps of the year.
After highly popular first and second seasons, the third season of Martha Stewart's Cooking School started airing on PBS this month and the third season of Martha Bakes is scheduled to air in April.
Unique visitors online and on mobile increased 13% in the fourth quarter over the prior year.
Total digital revenue for the full year 2013 grew 13% over the prior year period.
Publishing
Revenues in the fourth quarter of 2013 were $28.4 million, compared to $35.3 million in the prior year's fourth quarter. In the 2013 fourth quarter, MSLO published two issues of Martha Stewart Living, compared with three in the prior year period. The two published issues generated improved advertising sales compared with the same 2012 issues. Partially offsetting the decline in print revenue was an increase in digital revenue in the quarter.
Operating loss was $(1.8) million for the fourth quarter of 2013, compared to $(2.3) million in the prior year.
Merchandising
Revenues increased 12% to $18.2 million for the fourth quarter of 2013, as compared to $16.2 million in the prior year's fourth quarter, benefitting from royalty revenue recognition, new in 2013, from the Company's relationship with J.C. Penney.
Operating income was $13.6 million for the fourth quarter of 2013 as compared to $11.3 million in the fourth quarter of 2012.
Broadcasting
Revenue in the fourth quarter of 2013 was $0.8 million, compared to $4.8 million in the fourth quarter of 2012, primarily due to non-recurring items in the prior year related to our historical Broadcasting operations.
Operating income was $0.3 million for the fourth quarter of 2013 compared to operating income of $3.0 million in the fourth quarter of 2012.
Corporate
Corporate expenses were $(6.3) million in the fourth quarter of 2013 compared to $(10.6) million in the prior year's quarter, due to a reimbursement from our insurance carrier related to the Macy's litigation and lower executive compensation.
The Company will host a conference call with analysts and investors on February 25, 2014 at 8:30am EST that will be broadcast live over the Internet at www.marthastewart.com/ir, and an archived version will be available through March 11, 2014.
About Martha Stewart Living Omnimedia, Inc.
Martha Stewart Living Omnimedia, Inc. (MSLO) is a leading provider of original "how-to" information, inspiring and engaging consumers with unique lifestyle content and high-quality products. MSLO is organized into the following business segments: Publishing, Merchandising and Broadcasting. MSLO is listed on the New York Stock Exchange under the ticker symbol MSO.
Forward-Looking Statements
This press release may contain certain statements that we believe are, or may be considered to be, "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by the use of statements that include phrases such as we "may," "will," "should," "could," "expects," "intends," "plans," "anticipates," "believes," "estimates," "potential" or "continue" or other similar references to future periods or the negative of these terms.
Forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and our actual results may differ materially from those contemplated by the forward-looking statements. Such forward-looking statements include: adverse reactions to publicity relating to Martha Stewart or Emeril Lagasse by consumers, advertisers and business partners; loss of the services of Ms. Stewart or Mr. Lagasse; continued management turnover; inability to successfully capitalize on digital, mobile and video initiatives, including establishing relationships with additional distribution partners; softening of or increased competition in the domestic advertising market; failure by the economy to sustain any meaningful recovery and other economic developments that limit consumers' discretionary spending or affect the value of our assets or access to credit or other funds; inability to expand merchandising and licensing programs or the loss or failure of existing programs, including as a result of litigation or disputes with merchandising segment partners; inability to grow our online presence; failure to successfully implement our cost savings initiatives; failure to protect our intellectual property; changes in media consumption behavior; increases in paper, postage, freight or printing costs; weakening in circulation, particularly in newsstand sales; operational or financial problems at any of our business partners; our inability to successfully and profitably develop or introduce new products; consolidation of our principal print business vendors, which may lead to increased prices and service delays; and failure to predict, respond to and influence trends in consumer taste and/or shifts in business strategies.
Certain of these and other factors are discussed in more detail in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission, especially under the heading "Risk Factors," which may be accessed through the SEC's website at http://www.sec.gov/.
Martha Stewart Living Omnimedia, Inc.
Consolidated Statements of Operations
Three Months Ended December 31,
(unaudited, in thousands, except share and per share amounts)
REVENUES
2013
2012
Publishing
$ 28,420
$ 35,332
Merchandising
18,216
16,219
Broadcasting
769
4,812
Total revenues
47,405
56,363
Production, distribution and editorial
(16,789)
(24,470)
Selling and promotion
(12,685)
(14,499)
General and administrative
(8,489)
(11,512)
Depreciation and amortization
(818)
(979)
Restructuring charges
(2,764)
(3,543)
OPERATING INCOME
5,860
1,360
Interest income, net
222
294
Other expense, net
(97)
(150)
INCOME BEFORE INCOME TAXES
5,985
1,504
Income tax benefit / (provision)
991
(394)
NET INCOME
$ 6,976
$ 1,110
INCOME PER SHARE - BASIC AND DILUTED
Net income- Basic
$ 0.12
$ 0.02
Net income- Diluted
$ 0.12
$ 0.02
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic
57,630,635
67,330,288
Diluted
58,011,584
67,621,961
Martha Stewart Living Omnimedia, Inc.
Consolidated Statements of Operations
Twelve Months Ended December 31,
(unaudited, in thousands, except share and per share amounts)
REVENUES
2013
2012
Publishing
$ 96,493
$ 122,540
Merchandising
59,992
57,574
Broadcasting
4,190
17,513
Total revenues
160,675
197,627
Production, distribution and editorial
(73,121)
(103,347)
Selling and promotion
(45,033)
(52,453)
General and administrative
(39,945)
(45,148)
Depreciation and amortization
(3,758)
(4,007)
Restructuring charges
(3,439)
(4,811)
Goodwill impairment
—
(44,257)
Gain on sale of subscriber list, net
2,724
—
OPERATING LOSS
(1,897)
(56,396)
Interest income, net
792
1,202
Other (expense) / income, net
(583)
711
LOSS BEFORE INCOME TAXES
(1,688)
(54,483)
Income tax provision
(84)
(1,602)
NET LOSS
$ (1,772)
$ (56,085)
LOSS PER SHARE - BASIC AND DILUTED
Net loss
$ (0.03)
$ (0.83)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic and diluted
64,912,368
67,231,463
Martha Stewart Living Omnimedia, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
December 31,
2013
(unaudited)
December 31,
2012
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ 21,884
$ 19,925
Short-term investments
19,268
29,182
Restricted cash and investments
5,072
—
Accounts receivable, net
39,694
38,073
Paper inventory
2,901
4,580
Deferred television production costs
228
434
Other current assets
3,648
3,335
Total current assets
92,695
95,529
PROPERTY AND EQUIPMENT, net
7,961
10,738
GOODWILL
850
850
OTHER INTANGIBLE ASSETS, net
45,200
45,203
OTHER NONCURRENT ASSETS
1,661
1,940
Total assets
$ 148,367
$ 154,260
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities
$ 12,464
$ 13,132
Accrued payroll and related costs
8,665
9,316
Current portion of deferred subscription revenue
7,632
13,168
Current portion of other deferred revenue
17,227
5,605
Total current liabilities
45,988
40,859
DEFERRED SUBSCRIPTION REVENUE
3,587
4,478
OTHER DEFERRED REVENUE
17,307
1,113
DEFERRED INCOME TAX LIABILITY
7,094
7,117
OTHER NONCURRENT LIABILITIES
3,916
4,815
Total liabilities
77,892
58,744
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Series A Preferred Stock, zero issued and outstanding in 2013,
1 share issued and outstanding in 2012
—
—
Class A Common Stock, $0.01 par value, 350,000,000 shares
authorized: 30,704,491 and 41,220,689 shares issues in 2013 and
2012, respectively; 30,645,091 and 41,161,289 shares outstanding
in 2013 and 2012, respectively
307
412
Class B Common Stock, $0.01 par value, 150,000,000 shares
authorized: 25,984,625 shares issued and outstanding in 2013 and
2012
260
260
Capital in excess of par value
342,213
340,586
Accumulated deficit
(271,051)
(244,529)
Accumulated other comprehensive loss
(479)
(438)
71,250
96,291
Less: Class A treasury stock - 59,400 shares at cost
(775)
(775)
Total shareholders' equity
70,475
95,516
Total liabilities and shareholders' equity
$ 148,367
$ 154,260
crookedneck
11 years ago
Despite our differences, this is the time of the year to put everything aside and reflect upon the important things that really matter the most for each of us. With that said I apologize for some of my past replies and extend my hand to you for a resolution to our differences for the new year.
NRTI, who is manufacturing, distributing, and selling the Martha Stewart Essentials, in which MSO gets substantial royalties on, just released huge news today! Cheers!
Inergetics Awarded $3.3 Million from New Jersey Technology Business Tax Certificate Transfer Program
NJ Economic Development Authority Grant Will be Reinvested in the Business to Enhance Product Development and Distribution Initiatives
PR Newswire Inergetics, Inc.
1 hour ago
NEWARK, N.J., Dec. 23, 2013 /PRNewswire/ -- Inergetics, Inc. (NRTI), a leading developer of nutritional supplements based in Newark, NJ, announced today that its application for the New Jersey Technology Business Tax Certificate Transfer Program has been approved for $3.357 million.
Inergetics, which employs twelve full time employees of which eleven are located in New Jersey, relocated to the Innovation Zone of Newark, NJ in 2013 and expects to receive cash after fees of $3.055 million in January of 2014. The state funding is non-dilutive and does not add shares or debt to the capital structure of the company.
"We are very pleased to have been selected for the New Jersey Economic Development Authority's program for the second year running. This funding will be reinvested into the business to help us expand the company within the great state of New Jersey," said Mike James, CEO. "We chose to locate our company in the Newark Innovation Zone and are thrilled to be a part of the state's growing health and science sector."
Inergetics will utilize these working capital funds to expand its product offerings and achieve greater distribution of its existing product lines, including Martha Stewart Essentials, Bikini Ready, SlimTrim and Surgex Sports Nutrition.
About Inergetics, Inc.
Inergetics' portfolio of brands includes: Martha Stewart™ Essentials, a complete line of whole-food based supplements created specifically for women; Surgex® Sports Nutrition, the preferred nutritional supplement of Army Sports; Bikini Ready®, a leader in weight loss lifestyle solutions; and SlimTrim™, the affordable, premium value diet brand.
To learn more about Inergetics, visit www.inergetics.com, and the Inergetics brands' websites at: www.marthastewartessentials.com, www.surgexsports.com, www.surgexsportsblitz.com, www.slimtrim1.com, www.slimtrim.net, www.bikinireadylifestyle.com, www.kahunasands.com.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of Inergetics set forth herein and those preceded by or that include the words "believes," "expects," "given," "targets," "intends," "anticipates," "plans," "projects," "forecasts," or similar expressions, are "forward-looking statements." Although Inergetics' management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties, which could cause Inergetics' future results to differ materially from those anticipated. Inergetics assumes no obligation to update any of the information contained or referenced in this press release.