Exhibit 99.1
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MEREDITH CORPORATION REPORTS
FISCAL 2000 RESULTS
Company Reports Record EPS and 10 Percent EBITDA Growth
Publishing Group Achieves Strong Revenue and Profit Results
DES MOINES, Iowa -- (August 8, 2000) -- Meredith Corporation (NYSE: MDP) today
reported earnings before nonrecurring items for the fiscal 2000 fourth quarter
ended June 30, 2000, of $21.8 million or 42 cents per share, compared to $23.3
million or 44 cents per share in the prior-year fourth quarter. For the fiscal
year, earnings before nonrecurring items were $90.1 million or $1.71 per share
versus $88.2 million or $1.64 per share in the prior year.
The company reported fiscal 2000 fourth quarter earnings before interest,
taxes, depreciation and amortization (EBITDA) of $57.7 million versus $59.3
million in the prior-year quarter. For fiscal 2000, EBITDA grew 10 percent to
$236.8 million from $215.2 million in the prior year. Nonrecurring items are
excluded from the EBITDA numbers in both years.
As expected and previously announced, the company incurred, in the Publishing
Group, a fourth quarter pre-tax charge of $10.2 million, or 12 cents per share,
for circulation initiatives, Internet and e-commerce activities and development
of its consumer database. It impacted corporate profit, publishing profit and
EBITDA for the quarter and the year.
"Even with the fourth quarter circulation and Internet charge, publishing had a
record year," said William T. Kerr, Meredith Corporation Chairman and CEO.
"Our position as the leading provider of home and family service journalism
continues to serve us well."
Fourth quarter and fiscal year 2000 net earnings included a nonrecurring
after-tax charge of $19.1 million or 36 cents per share for the write-down of
nondeductible intangibles, severance payments and other charges primarily
related to the closing of certain magazine titles announced on March 8. Net
earnings for fiscal 1999 included an after-tax gain of $1.4 million, or 3 cents
per share, from the first quarter sale of the net assets of the Better Homes
and Gardens Real Estate Service.
Company revenues for the fiscal 2000 fourth quarter grew 5 percent to $283.7
million from $270.2 million in the prior-year quarter. Revenues for fiscal
2000 grew 6 percent to $1.10 billion versus $1.04 billion in fiscal 1999.
Comparable fourth quarter and fiscal-year revenues grew 6 percent when adjusted
for discontinued magazine titles and the impact of acquiring WGCL-TV, the CBS
affiliate in Atlanta (prior to July 4, 2000, the station's call letters were
WGNX).
Fiscal 2000 fourth quarter and year-to-date earnings include dilution of 6
cents per share and 27 cents per share, respectively, from the prior-year
acquisition of the Atlanta station. In fiscal 1999, dilution related to the
acquisition was 6 cents for the quarter and 8 cents from the acquisition date
of March 1, 1999.
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OPERATING RESULTS
PUBLISHING
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Fourth quarter Publishing operating profit was $31.3 million versus $31.0
million in the prior-year quarter. For the full year, operating profit grew 17
percent, to $139.9 million from $119.6 million in fiscal 1999.
Publishing revenues grew 6 percent in the fourth quarter to $210.8 million,
from $198.3 million in fiscal 1999. For the full year, revenues also grew 6
percent to $817.7 million from $774.0 million in the prior year. Comparable
fourth quarter and year-to-date publishing revenues increased 8 percent, when
adjusted for discontinued titles.
Strong fiscal 2000 fourth quarter revenues and operating profits were reported
by Better Homes and Gardens, Country Home, Renovation Style and Golf for Women
magazines, along with the company's lineup of Better Homes and Gardens Special
Interest Publications and Meredith Integrated Marketing.
For the fiscal year, strong revenues and operating profits were reported by
Better Homes and Gardens, Country Home, Renovation Style, Successful Farming
and Traditional Home magazines. The Better Homes and Gardens Special Interest
Publications, Meredith Integrated Marketing and the company's book business
also reported strong fiscal-year results.
"The fourth quarter and fiscal year revenue strength in our Publishing Group
was broad-based. Our new titles -- specifically More and Renovation Style --
performed well in both periods, contributing to our strong revenue results.
Also, we continue to add significant new integrated marketing clients," said
Kerr.
Interactive Media
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Although reported in the publishing segment, Meredith is now disclosing results
for its interactive media operations because of the company's planned expansion
and acceleration of Internet-related efforts.
Fiscal 2000 interactive media revenues were $3.5 million versus $1.1 million
last year. Operating losses were ($6.3 million), versus ($4.0 million) in
fiscal 1999.
"For the fiscal 2000 fourth quarter versus the same period last year, page
views for all of our sites grew 76 percent and unique visitors grew 144
percent. We also generated 240 percent more subscriptions online. Even
starting from a relatively small base, this growth demonstrates the potential
for significant cost savings by generating subscriptions using the Internet,"
said Kerr.
BROADCASTING
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Broadcasting Group operating profit for the fiscal 2000 fourth quarter was
$16.9 million, compared to $18.6 million in the prior year. For the full year,
operating profit was $59.6 million compared to $72.3 million in fiscal 1999.
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Reported fourth quarter Broadcasting Group revenues were $72.9 million,
compared to $72.0 million in fiscal 1999. For the year, reported Broadcasting
Group revenues grew 7 percent to $279.5 million versus $262.1 million in the
prior-year period. Without WGCL-TV, Broadcasting Group revenues were flat for
the fiscal year. Stations reporting particularly solid operating profit and
revenue results for the fourth quarter and the fiscal year included WSMV-TV
(NBC) in Nashville and WFSB-TV (CBS) in Hartford/New Haven.
"We are implementing a plan to improve our Broadcasting Group's performance,"
said Kerr. "The plan focuses on improving the performance of WGCL-TV, and on
growing revenues and margins across the group -- particularly by boosting our
sales efforts, expanding and enhancing our local news and containing costs."
OTHER
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Fiscal 2000 interest expense increased versus fiscal 1999 as a result of debt
related to the acquisition of WGCL-TV (CBS) in Atlanta. Unallocated corporate
expenses declined year-over-year primarily as a result of cost containment
activities.
In addition, the company's fourth quarter and fiscal 2000 results reflect a
higher income tax rate due to the write-down of nondeductible intangibles.
Meredith repurchased approximately 1.7 million shares of stock in fiscal 2000
in conjunction with the company's ongoing share repurchase program. About 1.3
million of those shares were purchased in the second half of the year.
Meredith repurchased 1.1 million shares in fiscal 1999. Approximately 1.7
million shares are currently authorized for repurchase.
ABOUT MEREDITH CORPORATION
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Meredith Corporation (www.meredith.com) is one of the nation's leading media
and marketing companies with businesses centering on magazine and book
publishing, television broadcasting, and interactive and integrated marketing.
The Meredith Publishing Group includes more than 20 magazine brands, including
Better Homes and Gardens and Ladies' Home Journal, and more than 100 special
interest publications. Meredith owns 12 television stations -- including
properties in top 25 markets such as Atlanta, Phoenix, Orlando and Portland --
and produces original television programming based on its strong brands.
Meredith has nearly 300 books in print and has established marketing
relationships with some of America's leading companies, including The Home
Depot, Kraft Foods and Nestle USA. Meredith's consumer database, which contains
more than 60 million names, is the largest domestic database among media
companies and enables magazine and television advertisers to precisely target
marketing campaigns. Additionally, Meredith has an extensive Internet presence,
which includes 26 web sites, strategic alliances with leading specialty
Internet destinations and branded anchor tenant positions on America Online.
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MEREDITH CORPORATION
FISCAL 2000 FOURTH QUARTER AND FISCAL YEAR
EARNINGS PER SHARE AT A GLANCE
(Note: All figures are adjusted for stock splits)
The chart below depicts comparable quarterly and fiscal year diluted earnings
per share (EPS) before nonrecurring items and discontinued operations.
1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Fiscal Year
-------- -------- -------- -------- -----------
F1993 .06 .09 .10 .10 .35
F1994 .08 .13 .16 .13 .50
F1995 .14 .19 .18 .20 .71
F1996 .17 .22 .24 .28 .91
F1997 .22 .31 .33 .36 1.22
F1998 .27 .40 .37 .42 1.46
F1999 .32 .47 .41 .44 1.64
F2000 .34 .48 .47 .42 1.71
- -- Earnings before nonrecurring items for the fiscal 2000 fourth quarter ended
June 30, 2000, were 42 cents per share, compared to 44 cents per share in
the prior-year fourth quarter.
- -- For the fiscal year, earnings before nonrecurring items were $1.71 per
share versus $1.64 per share in the prior year.
- -- The company incurred, in the Publishing Group, a fourth quarter charge of
12 cents per share for circulation initiatives, Internet and e-commerce
activities and development of its consumer database.
- -- Fourth quarter and fiscal year 2000 net earnings included a nonrecurring
charge of 36 cents per share for the write-off of nondeductible
intangibles, severance payments and other charges primarily related to the
closing of certain magazine titles announced on March 8.
- -- Net earnings for fiscal 1999 included a gain of 3 cents per share from the
first quarter sale of the net assets of the Better Homes and Gardens Real
Estate Service.
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Meredith Corporation and Subsidiaries
Consolidated Statements of Earnings (Unaudited)
Three Months Twelve Months
Ended June 30 Ended June 30
------------------- -------------------
2000 1999 2000 1999
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(In thousands except per share)
Revenues:
Advertising $170,918 $161,721 $658,049 $613,400
Circulation 67,552 68,603 275,642 273,621
All other 45,219 39,916 163,474 149,101
-------- -------- --------- ---------
Total revenues 283,689 270,240 1,097,165 1,036,122
-------- -------- --------- ---------
Operating costs and expenses:
Production, distribution and edit 115,909 111,519 453,684 427,556
Selling, general & administrative 110,099 99,414 406,699 393,396
Depreciation and amortization 13,328 13,158 52,349 44,083
Nonrecurring items * 23,096 -- 23,096 --
-------- -------- -------- --------
Total operating costs and expenses 262,432 224,091 935,828 865,035
-------- -------- -------- --------
Income from operations 21,257 46,149 161,337 171,087
Gain from disposition * -- -- -- 2,375
Interest income 359 163 1,195 710
Interest expense (8,240) (8,983) (34,946) (21,997)
-------- -------- -------- --------
Earnings before income taxes 13,376 37,329 127,586 152,175
Income taxes 10,644 13,993 56,556 62,518
-------- -------- -------- --------
Net earnings $ 2,732 $ 23,336 $ 71,030 $ 89,657
======== ======== ======== ========
Basic earnings per share $ 0.06 $ 0.45 $ 1.38 $ 1.72
======== ======== ======== ========
Basic average shares outstanding 50,606 51,871 51,313 52,188
======== ======== ======== ========
Diluted earnings per share $ 0.06 $ 0.44 $ 1.35 $ 1.67
======== ======== ======== ========
Diluted average shares outstanding 51,801 53,404 52,774 53,761
======== ======== ======== ========
Dividends paid per share $ 0.080 $ 0.075 $ 0.310 $ 0.290
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* Note: Nonrecurring items in fiscal 2000 included a charge of $23.1 million
($19.1 million after tax), or 36 cents per share, for the write-down of
nondeductible intangibles, severance payments and other charges primarily
related to the closing of certain magazine titles announced on March 8, 2000.
The nonrecurring item in fiscal 1999 was a post-tax gain of $1.4 million, or
3 cents per share, from the sale of the net assets of the Better Homes and
Gardens Real Estate Service.
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Meredith Corporation and Subsidiaries
Segment Information (Unaudited)
Three Months Twelve Months
Ended June 30 Ended June 30
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2000 1999 2000 1999
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(In thousands)
Revenues
Publishing $210,837 $198,286 $817,715 $774,031
Broadcasting 72,852 71,954 279,450 262,091
-------- -------- --------- ---------
Total revenues $283,689 $270,240 $1,097,165 $1,036,122
======== ======== ========= =========
Operating Profit
Publishing $ 31,296 $ 30,980 $139,905 $119,581
Broadcasting 16,887 18,644 59,594 72,347
Unallocated corporate expense (3,830) (3,475) (15,066) (20,841)
-------- -------- -------- --------
Segment operating profit $ 44,353 $ 46,149 $184,433 $171,087
Nonrecurring items * (23,096) -- (23,096) --
-------- -------- -------- --------
Income from operations 21,257 46,149 161,337 171,087
Gain from disposition * -- -- -- 2,375
Interest income 359 163 1,195 710
Interest expense (8,240) (8,983) (34,946) (21,997)
-------- -------- -------- --------
Earnings before income taxes 13,376 37,329 127,586 152,175
Income taxes 10,644 13,993 56,556 62,518
-------- -------- -------- --------
Net earnings $ 2,732 $ 23,336 $ 71,030 $ 89,657
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Depreciation & Amortization
Publishing $ 2,929 $ 2,848 $ 11,586 $ 11,368
Broadcasting 9,929 9,775 38,713 30,735
Unallocated corporate 470 535 2,050 1,980
-------- -------- -------- --------
Total depreciation & amortization $ 13,328 $ 13,158 $ 52,349 $ 44,083
======== ======== ======== ========
EBITDA
Publishing $ 34,225 $ 33,828 $151,491 $130,949
Broadcasting 26,816 28,419 98,307 103,082
Unallocated corporate (3,360) (2,940) (13,016) (18,861)
-------- -------- -------- --------
Total EBITDA $ 57,681 $ 59,307 $236,782 $215,170
======== ======== ======== ========
* Note: Nonrecurring items in fiscal 2000 included a charge of $23.1 million
($19.1 million after tax), or 36 cents per share, for the write-down of
nondeductible intangibles, severance payments and other charges primarily
related to the closing of certain magazine titles announced on March 8, 2000.
The nonrecurring item in fiscal 1999 was a post-tax gain of $1.4 million, or
3 cents per share, from the sale of the net assets of the Better Homes and
Gardens Real Estate Service.
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