Printer Friendly

MEREDITH CORPORATION REPORTS THIRD QUARTER EARNINGS AND SPECIAL CHARGES AGAINST FOURTH QUARTER

 MEREDITH CORPORATION REPORTS THIRD QUARTER EARNINGS
 AND SPECIAL CHARGES AGAINST FOURTH QUARTER
 DES MOINES, Iowa /PRNewswire/ -- Meredith Corporation (NYSE: MDP) today announced fiscal 1992 third quarter net earnings of $5,061,000, or 32 cents per share, for the quarter ended March 31, 1992. This was a slight decrease from prior year third quarter net earnings of $5,932,000, or 32 cents per share. Fiscal 1992 third quarter earnings per share remained even with the prior year quarter due to a decrease in the number of shares outstanding.
 "Although a decline in nonoperating interest income held down third quarter net earnings, income from operations increased 18 percent for the period," said Jack D. Rehm, president and chief executive officer. "All operating groups, with the exception of the book operations, posted higher profits for the quarter.
 "Our Magazine Group recorded a significant increase in third quarter profits. The primary factors leading to the improvement included three additional Special Interest Publications titles, an increase in Traditional Home magazine ad pages, lower Ladies' Home Journal magazine overhead expense, and higher sales volume and improved operating margins in our custom publishing unit, Meredith Publishing Services. In addition, the prior year quarter was unfavorably impacted by start-up costs for a British version of Metropolitan Home. We suspended publication of this magazine last fall due to the weak British advertising climate.
 "Higher broadcasting profits reflect improved advertising sales at our two CBS affiliates and strong advertising growth at our Orlando, Fla. television station, WOFL-TV. The CBS affiliates, KCTV in Kansas City and WTVH in Syracuse, N.Y., benefited from coverage of the Winter Olympics as well as the NCAA basketball tournament.
 "Operating profits in our Real Estate Group improved in the current quarter due to the prior year write-off of nonperforming assets in this group.
 "A profit decline in our book operations was largely the result of softer book club acceptance rates and timing of book shipments. In addition, results were affected by a higher provision for inventory write-downs in the fiscal 1992 third quarter."
 A decline in net interest income for the third quarter occurred primarily due to debt repayments, the repurchase of company shares and lower interest rates.
 Revenues for the third quarter of fiscal 1992 were $180,348,000. This was a decline of $8,726,000 from prior year third quarter revenues of $189,074,000. The drop in revenues reflected lower sales volume in the book group and dispositions of the Fulfillment and Real Estate corporate relocation operations.
 "While I'm encouraged by the gains we made in our advertising-driven businesses this quarter," Rehm said, "we are currently facing restructuring charges which will hold the fourth quarter and fiscal year well below prior year levels." The first step in the restructuring process is the offer of a special, voluntary early retirement package to contain Meredith employees. The level of participation in the special, early retirement program will influence the next steps of the restructuring process: however, additional selective staff reductions by attrition, job elimination and realignments are expected. This will result in a before-tax charge against fourth quarter earnings in the amount of $9-11 million.
 "These restructuring efforts are a part of the company's continuing drive for improved efficiencies. We anticipate a reduction in our workforce in excess of 100 employees and expect to realize significant operating improvements in future years as a result of these measures," Rehm said.
 FIRST NINE MONTHS
 Net earnings for the nine months ended March 31, 1992 were $12,640,000, or 78 cents per share, compared with prior year earnings before dispositions of $12,376,000, or 74 cents per share. Prior year earnings from continuing operations, including the disposition of Sail magazine, were $15,929,000 or 95 cents per share. The post-tax gain on the disposition of Sail totaled $3,553,000, or 21 cents per share.
 Comparable operating earnings before the gain on the disposition of Sail magazine were up $264,000, or four cents per share. The net improvement in fiscal 1992 earnings from continuing operations before the disposition of Sail magazine was due to a $6 million legal reserve which held down the prior year earnings.
 Although Real Estate Group proadvertising revenues during the first six months of the current year. Book Group results were flat for the period ended March 31, 1992.
 Net earnings for the nine-month period ended March 31, 1992, were $12,640,000, or 78 cents per share. Prior year net earnings were $76,231,000, or $4.53 per share. Prior year net earnings included earnings from discontinued operations in the amount of $60,302,000, or $3.58 per share. These earnings were from the September 1990 sale of the Meredith/Burda printing operations and income tax credits from the dispositions of other subsidiary operations.
 Fiscal 1992 year-to-date revenues were $531,665,000. Revenues for the same period in the prior year were $559,322,000. The decline was largely due to the dispositions of the Fulfillment and Real Estate corporate relocation business units, and lower Book Group sales volume.
 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
 (In thousands, except per share)
 Three Months Ended
 3/31/92 3/31/91
 Revenues (less returns and allowances) $180,348 $189,074
 Operating costs and expenses:
 Production, distribution and editorial 86,321 91,047
 Selling, general and administrative 81,925 86,911
 Depreciation and amortization 4,606 4,766
 Total operating costs and expenses 172,852 182,724
 Income from operations 7,496 6,350
 Gain on disposition of SAIL -- --
 Interest income 1,333 3,436
 Interest expense (393) (798)
 Earnings from continuing operations
 before income taxes 8,436 8,988
 Income taxes 3,375 3,596
 Earnings from continuing operations 5,061 5,392
 Discontinued operations:
 Income from printing operations, net
 of income taxes $847 -- --
 Gain on disposition of printing operations,
 net of income taxes of $70,003 -- --
 Gain from other operations, including
 income tax benefits of $12,604 -- --
 Earnings from discontinued operations -- --
 Net earnings $5,061 $5,392
 Net earnings per share of common stock:
 Earnings from continued operations $.32 $.32
 Earnings from discontinued operations -- --
 Net earnings per share $.32 $.32
 Dividends paid per share .16 .16
 Average number of shares outstanding 15,919,000 16,824,000
 Nine Months Ended
 3/31/92 3/31/91
 Revenues (less returns and allowances) $531,665 $559,322
 Operating costs and expenses:
 Production, distribution and editorial 252,748 266,820
 Selling, general and administrative 249,626 264,154
 Depreciation and amortization 12,615 13,683
 Total operating costs and expenses 514,989 544,657
 Income from operations 16,676 14,665
 Gain on disposition of SAIL -- 5,922
 Interest income 5,054 8,667
 Interest expense (661) (2,705)
 Earnings from continuing operations
 before income taxes 21,069 26,549
 Income taxes 8,429 10,620
 Earnings from continuing operations 12,640 15,929
 Discontinued operations:
 Income from printing operations, net
 of income taxes $847 -- 2,717
 Gain on disposition of printing operations,
 net of income taxes of $70,003 -- 49,305
 Gain from other operations, including
 income tax benefits of $12,604 -- 8,280
 Earnings from discontinued operations -- 60,302
 Net earnings $12,640 $76,231
 Net earnings per share of common stock:
 Earnings from continued operations $.78 $.95
 Earnings from discontinued operations -- $3.58
 Net earnings per share $.78 $4.53
 Dividend paid per share .48 .48
 Average number of shares outstanding 16,265,000 16,826,000
 Note: Subject to fiscal year-end adjustments and audit.
 -0- 4/20/92
 /CONTACT: Robin Lenocker of Meredith Corporation, 515-284-3386 or 515-279-3744 (after hours)/
 (MDP) CO: Meredith Corporation ST: Iowa IN: PUB SU: ERN


MA -- MN019 -- 0292 04/20/92 18:12 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 20, 1992
Words:1320
Previous Article:SAN ONOFRE UNIT 3 OUT OF SERVICE FOR TURBINE MAINTENANCE
Next Article:LAKEHEAD PIPE LINE PARTNERS, L.P. REPORTS FIRST QUARTER 1992 FINANCIAL RESULTS


Related Articles
MEREDITH ANNOUNCES SPECIAL CHARGES TO FOURTH QUARTER EARNINGS
MEREDITH CORPORATION REPORTS FOURTH QUARTER AND FISCAL YEAR RESULTS
MEREDITH CORPORATION REPORTS GAIN IN FISCAL 1993 EARNINGS; MAGAZINE GROUP POSTS RECORD PROFITS
/Repeating from yesterday for points missed/
STRONG FOURTH QUARTER CAPS RECORD YEAR FOR MEREDITH CORPORATION
Meredith Corporation Continues Record Financial Performance.
Meredith Corporation Reports Fiscal 2000 Results.
Meredith Corporation Reports Fourth Quarter and Fiscal Year 2001 Results.
Meredith Reports Fiscal 2009 Third Quarter Earnings.
Meredith Reports Fiscal 2009 and Fourth Quarter Results.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters