UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) March 8, 2000
Commission file number 1-5128
Meredith Corporation
(Exact name of registrant as specified in its charter)
Iowa 42-0410230
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1716 Locust Street, Des Moines, Iowa 50309-3023
(Address of principal executive offices) (ZIP Code)
515 - 284-3000
(Registrant's telephone number, including area code)
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Item 5. Other Events
On March 8, 2000, Meredith Corporation announced several strategic initiatives
designed to position the company for significant growth in a rapidly changing
business environment that stresses convergence, interactivity and greater
advertising accountability. These initiatives include:
1. Creation of the Meredith Interactive and Integrated Marketing Group to
complement Meredith's existing Publishing and Broadcasting Groups.
2. Expansion and acceleration of Internet-related efforts on a company-wide
basis.
3. Implementation of a series of consumer marketing initiatives designed to
grow the profit contribution of its circulation activities.
4. Closing certain operations that no longer fit its business objectives.
To move forward with these initiatives, Meredith is committing up to $100
million for investments in Internet and e-commerce activities, continued
development of its consumer database, and strategic alliances and partnerships.
Additionally, the company plans to provide at least $10 million annually in
marketing support to grow these businesses through advertising in its magazines
and at its television stations. Meredith will also increase its investments in
circulation initiatives and write down certain assets.
Meredith anticipates that incremental spending related to its investments in
Internet and e-commerce activities, continued development of its consumer
database and strategic alliances and partnerships will impact fiscal 2000
fourth quarter earnings per share between 2 to 3 cents. Investment spending
related to the circulation initiatives is expected to impact fiscal 2000 fourth
quarter earnings per share by 8 to 10 cents, due to accounting rules that
require expensing these costs at the time of mailing rather than over the term
of the subscription. One-time charges for the write-off of nondeductible
intangibles, severance payments and other charges related to the magazine
closings will cost between 35 to 37 cents per share in the fiscal 2000 fourth
quarter. The company believes the overall impact of these actions will be in
the 45 to 50 cents per share range for the fiscal 2000 fourth quarter.
Looking to fiscal 2001, the company expects incremental Internet investment to
be 10 to 15 cents per share for the year, while the incremental circulation
investments will be 8 to 10 cents per share.
Additional information regarding these initiatives is included in the news
release and conference call script which are attached as exhibits.
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Item 7. Financial Statements and Exhibits
(c) Exhibits
99.1 News release issued by Meredith Corporation dated March 8,
2000 concerning new strategic initiatives and related
financial impact.
99.2 Conference call script of conversation with analysts on
March 8, 2000 concerning news release of the same date.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
MEREDITH CORPORATION
Registrant
(Suku V. Radia)
Suku V. Radia
Vice President - Chief Financial Officer
(Principal Financial and
Accounting Officer)
Date: March 15, 2000
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Index to Exhibits
Exhibit
Number Item
------- -----------------------------------------------------------
99.1 News release issued by Meredith Corporation dated March 8,
2000 concerning new strategic initiatives and related
financial impact.
99.2 Conference call script of conversation with analysts on
March 8, 2000 concerning news release of the same date.
E-1