/Repeating from yesterday for points missed/
MEREDITH CORPORATION REPORTS GAIN IN FISCAL 1993 EARNINGS; MAGAZINE GROUP POSTS RECORD PROFITS DES MOINES, Iowa, Aug. 5 /PRNewswire/ -- Meredith Corporation (NYSE: MDP) today reported net earnings of $18,626,000, or $1.22 per share, for the fiscal year ended June 30, 1993, up from a net loss of $6,331,000, or a negative 39 cents per share, in the prior year. Fiscal 1992 results reflect the adoption of Statement of Financial Accounting Standards (SFAS) No. 106 and the recognition of unusual items. Excluding those items, comparable prior-year earnings were $17,326,000, or $1.07 per share. Meredith's year-end results reflect four consecutive quarters of improved operating earnings when compared with prior-year quarters. Fourth quarter net earnings were $5,124,000, or 34 cents per share, compared with earnings before unusual items of $5,046,000, or 31 cents per share, in fiscal 1992. "We're extremely pleased with our improved performance in the most recent fiscal year," said Jack D. Rehm, Meredith Corporation chairman, president and chief executive officer. "When we exclude the impact of our cable investment, earnings were up approximately 37 percent. This increase is due primarily to improvements in our magazine and book operations. "Our performance this year reflects continued progress in each of our businesses," Rehm said. "While these numbers demonstrate that we're on target internally, we remain cautious about the future. We're beginning to see a retreat in the advertising climate. Based on what we know today, we expect the coming months to be characterized by little or no growth." Revenues jumped nine percent in fiscal 1993 due primarily to the company's cable acquisitions. Magazine advertising and circulation revenues also increased. Net revenues were $768,848,000 in fiscal 1993, compared with $706,662,000 in the prior fiscal year. Revenues for the fourth quarter ended June 30, 1993, were $202,561,000, a 10 percent increase over revenues of $184,373,000 in the prior-year quarter. -- Magazine Group Results Growth in magazine ad pages and revenues led to a record profit performance in the Magazine Group. Most Meredith magazines recorded strong ad-page gains in fiscal 1993, with ad revenues for existing titles growing by more than 8 percent. Country America, Golf for Women, Traditional Home, and WOOD magazines, and the Better Homes and Gardens Special Interest Publications all posted double-digit ad-revenue growth. In addition, the company's two largest titles, Better Homes and Gardens and Ladies' Home Journal magazines, closed the year with ad-revenue gains of 8 and 6 percent, respectively. Fourth quarter results were bolstered by strong newsstand sales and ad-revenue gains in Better Homes and Gardens Special Interest Publications. -- Book Group Results The Book Group continued to rebuild in fiscal 1993. Improvements in book clubs, including increased acceptance rates and a decline in product returns, led the group's improvement. The fiscal 1992 downsizing and repositioning of the direct mail efforts resulted in fewer resources spent recruiting new club members in fiscal 1993. Increased sales and lower product returns boosted retail marketing to an all-time high in operating profits. Fourth quarter results improved substantially due to the prior-year recognition of unusual charges related to downsizing and repositioning direct mail operations. -- Broadcast Group Results Local revenues were strong in most Meredith Broadcast Group markets in fiscal 1993, with five of the group's seven stations reporting local revenue increases over fiscal 1992. However, national revenues remained sluggish, leading to a slight decline in the group's annual profits. Fourth quarter results were flat with the prior year. However, three stations turned in local revenue gains in excess of 10 percent during the fiscal 1993 fourth quarter. -- Real Estate Group Results Fiscal 1993 profits improved slightly in the company's Real Estate Group due to increased joining fee revenues and higher profits from custom product sales. -- Other The adoption of SFAS No. 106 related to postretirement benefits in fiscal 1992 resulted in a one-time charge of $7,300,000. The fiscal
1992 charge for unusual items consisted primarily of restructuring charges and costs associated with downsizing and repositioning the Book Group's direct mail operations. The company, through a wholly owned subsidiary, acquired an ownership interest in its second cable system in fiscal 1993. As expected and previously reported, net earnings were negatively impacted by this acquisition.
Meredith Corporation, headquartered in Des Moines, Iowa, is a Fortune 500 diversified media company involved in magazine and book publishing, television broadcasting, residential real estate marketing and franchising, and investments in cable television. MEREDITH CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollar amounts in thousands, except per share) Three Months Ended 12 Months Ended 6/30/93 6/30/92(a) 6/30/93 6/30/92(a) Revenues (less returns and allowances): Advertising $88,998 $90,585 $334,475 $327,895 Circulation 64,225 61,269 245,693 235,734 Consumer books 18,833 16,252 81,390 80,452 All other 30,505 16,267 107,290 62,581 Total revenues 202,561 184,373 768,848 706,662 Operating costs and expenses: Production, distribution and editorial 80,729 79,460 320,501 322,520 Selling, general and administrative 102,049 93,458 375,045 343,986 Depreciation and amortization 8,706 4,930 32,393 17,545 Unusual items -- 26,383 -- 26,383 Total operating costs and expenses 191,484 204,231 727,939 710,434 Income (loss) from operations 11,077 (19,858) 40,909 (3,772) Interest income 526 1,285 2,141 6,339 Interest expense (3,068) (66) (9,925) (727) Minority interests 188 (1) 1,219 (11) Earnings (loss) before income taxes and cumulative effect of change in accounting principle 8,723 (18,640) 34,344 1,829 Income taxes 3,599 (7,329) 15,718 860 Earnings (loss) from continuing operations before cumulative effect of change in accounting principle $5,124 $(11,311) $18,626 $969 Cumulative effect of change in accounting principle SFAS No. 106, net of tax benefit of $4,475 -- -- -- (7,300) Net earnings (loss) $5,124 $(11,311) $18,626 $(6,311) Net earnings (loss) per share of common stock: Earnings (loss) from continuing operations before cumulative effect of change in accounting principle $.34 $(.70) $1.22 $.06 Cumulative effect of change in accounting principle -- -- -- (.45) Net earnings (loss) per share .34 (.70) 1.22 (.39) Dividends paid per share $.16 $.16 $.64 $.64 Average number of shares outstanding 14,953,000 16,125,000 15,266,000 16,141,000 (a) Fiscal 1992 has been restated to conform with current year presentation and to reflect the adoption of SFAS No. 106 as of July 1, 1991. -0- 8/05/93 R /CONTACT: Robin Lenocker of Meredith Corporation, 515-284-3386, or (Home) 515-279-3744/ (MDP)
CO: Meredith Corporation ST: Iowa IN: PUB SU: ERN
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