Meredith Delivers Strong Fiscal Results
DES MOINES, Iowa, April 25, 2013 — Meredith Corporation, the leading media and marketing company serving American women, today reported fiscal 2013 third quarter earnings per share of $0.65, compared to $0.47 in the prior-year period. Excluding special items in both periods, fiscal 2013 third quarter earnings per share grew 9 percent to $0.72, compared to $0.66 in the prior-year period. Total Company revenues rose 7 percent to $370 million.
For the first nine months of fiscal 2013, Meredith's earnings per share were $2.00, compared to $1.65 in the prior-year period. Excluding special items in both periods, earnings per share rose 18 percent to $2.17, compared to $1.84 in the prior-year period. Total Company revenues increased 8 percent to $1.1 billion, including an 11 percent increase in advertising revenues. Cash flow from operations increased 7 percent to $113 million.
"Our diversified business model delivered solid growth in revenues, operating profit and cash flow for the third quarter and first nine months of fiscal 2013," said Meredith Chairman and CEO Stephen M. Lacy. "And we continued to demonstrate our ongoing commitment to Total Shareholder Return by raising our dividend 7 percent, our 20th straight annual dividend increase."
Lacy noted the following fiscal 2013 third quarter business highlights:
- National Media Group advertising revenues increased 5 percent, driven by the recent acquisitions of the Allrecipes, EveryDay with Rachael Ray and FamilyFun brands. Circulation revenues also increased, benefitting from growth at comparable titles; contributions from EveryDay with Rachael Ray and FamilyFun magazines; and a test issue of a magazine based on the Allrecipes brand.
- Local Media Group non-political advertising revenues were slightly lower than the prior year. However, automotive advertising, the largest category, increased 6 percent. Total revenues also benefitted from an increase in retransmission fees.
- Total Company digital advertising revenues grew 45 percent and reached a record high for a fiscal third quarter, driven by strong performance in the National Media Group.
- Consumer engagement strengthened across all of Meredith's media platforms. Meredith magazine readership is at an all-time high of 116 million, while Meredith's local television station group delivered strong performance during the February ratings period. Traffic to Meredith's websites rose approximately 40 percent to 40 million average monthly unique visitors.
- Meredith raised its annual dividend to $1.63 per share. Over the last decade, Meredith has grown its dividend at an average annual rate of approximately 15 percent. Meredith also repurchased approximately 380,000 shares of its stock during the third quarter of fiscal 2013, and has repurchased 1.1 million shares in the first nine months of fiscal 2013.
- Fiscal 2013 third quarter results included a special item of $5 million ($3 million after tax, or $0.07 per share) for professional fees and expenses related to a previously disclosed transaction that did not materialize. Information on the special items in fiscal 2013 and fiscal 2012 is available in Tables 1-4 of this press release.
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