EXHIBIT 99.1
MARTHA STEWART LIVING OMNIMEDIA, INC.
ANNOUNCES FOURTH QUARTER 2004 RESULTS
NEW YORK, NEW YORK, FEBRUARY 23, 2005 -- Martha Stewart Living Omnimedia, Inc.
(NYSE: MSO) announced its results today for the fourth quarter and full-year
period ended December 31, 2004.
Revenues for the fourth quarter of 2004 were $60.2 million, compared to $70.9
million in the prior year's quarter. Operating loss for the fourth quarter was
$(9.5) million, compared to operating income of $2.3 million for the fourth
quarter of 2003. Operating income before depreciation and amortization, and the
amortization of non-cash stock compensation ("OIDA") for the fourth quarter of
2004 was a loss of $(1.8) million, compared to OIDA of $7.0 million in the same
period last year. Loss per share from continuing operations was $(0.14) for the
fourth quarter of 2004, compared to income per share from continuing operations
of $0.05 in the fourth quarter of 2003.
Susan Lyne, President and Chief Executive Officer, said: "2004 was a year of
significant challenge for MSO, and we look at the coming year with both
realistic expectations and optimism for the future.
"We will focus our efforts on our greatest assets: the Martha Stewart brand, our
content and our creative capabilities. As the most comprehensive and trusted
source of `how-to' information for the home, we are actively exploring
opportunities to develop new content, launch new brands and leverage our
existing asset library through new distribution channels. We see opportunities
to use our brand strengths and design capabilities to forge new merchandising
and marketing partnerships.
"The vitality of our brands is underscored by the positive circulation trends
for both Martha Stewart Living and Everyday Food magazines, both of which
outperformed industry metrics. We will focus on profitable business prospects,
and our exit from the online and print catalog business during the fourth
quarter of 2004 speaks to that.
1
"As March approaches, all of us at MSO - just like our business partners and our
many millions of loyal consumers - are eager to welcome Martha back. Both
station affiliates and advertisers have embraced MSO's new syndicated television
program featuring Martha Stewart. Come fall, we're certain viewers will too."
FOURTH QUARTER 2004 RESULTS BY SEGMENT
PUBLISHING
Revenues in the fourth quarter of 2004 were $26.1 million, compared to $33.1
million in the fourth quarter of 2003. Operating loss was $(11.3) million for
the fourth quarter of 2004, compared to operating income of $0.4 million in the
fourth quarter of 2003. OIDA was a loss of $(11.1) million, compared to income
of $0.4 million in the fourth quarter of 2003. The loss for the quarter is due
mainly to a decline in advertising revenue in Martha Stewart Living, as well as
subscription acquisition spending for Everyday Food magazine and losses related
to Body & Soul magazine, which was acquired in August 2004. The decline in
advertising revenue from Martha Stewart Living magazine was due to both a
reduction in advertising pages as well as lower advertising rates due to the
rate base reduction effective with the January 2004 issue. Circulation revenue
declined in the quarter due primarily to lower subscription revenues from Martha
Stewart Living, due to fewer subscription copies sold. Everyday Food revenue
increased sharply in the quarter on strong circulation gains and higher
advertising revenue due principally to higher advertising rates related to our
rate base increase. Everyday Food, which launched in September of 2003 with an
initial rate base of 500,000, has increased its rate base to 800,000 effective
with the January 2005 issue. This represents the second increase since launch.
Based on the continued subscriber demand, we plan to increase the rate base to
850,000 in July 2005. This growth has been supported, in part, by our recent
media campaign, which targeted both advertisers and consumers.
TELEVISION
Revenues in the fourth quarter of 2004 were $1.1 million, compared to $5.9
million in the fourth quarter of 2003. Operating loss for the fourth quarter of
2004 was $(1.4) million, compared to an operating loss of $(2.8) in the fourth
quarter of 2003. OIDA was a loss of $(1.4) million for the fourth quarter of
2004, compared to OIDA of $(0.9) million in the prior year's fourth quarter. The
decline in revenue was due principally to the absence of our daily syndicated
show, which stopped airing in syndication in mid-September, as well as the
expiration of certain cable television agreements. In the second quarter of
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2005, we will begin production of a new syndicated daytime show. The program
will be distributed by NBC Universal Domestic Television Distribution under a
recently announced agreement. The prior year period included $1.7 million of
accelerated depreciation related to the write-down to fair-value of certain
television studio assets.
MERCHANDISING
Revenues in the fourth quarter of 2004 were $23.7 million, compared to $22.5
million in the fourth quarter of 2003. The higher revenue is due in part to an
increase in revenue from Kmart resulting from contractual minimum royalty
guarantees, as well as revenue related to the dissolution of our Martha Stewart
Signature flooring program. Fourth-quarter 2004 operating income was $19.8
million, compared to $18.3 million in the fourth quarter of 2003. OIDA was $20.0
million in the current period, compared to $18.5 million in the prior year's
quarter. Currently we are expanding our successful Martha Stewart Signature(TM)
furniture line with Bernhardt, introducing at retail 43 new SKUs from the Lily
Pond(R), Skylands(TM), and Turkey Hill(TM) collections.
INTERNET/DIRECT COMMERCE
Revenues in the fourth quarter of 2004 were $9.3 million, compared to $9.4
million in the same period a year ago. The results for the quarter reflect the
Company's successful efforts at selling our remaining catalog-related inventory,
while continuing to grow our profitable flowers business and deliver content.
Operating loss was $(1.1) million for the fourth quarter of 2004, compared to
$(1.2) million in the fourth quarter of 2003. OIDA was $(0.8) million in the
fourth quarter of 2004, compared to $(1.0) million in the fourth quarter of
2003. The segment will focus its future efforts on delivering content and
increasing advertising revenues, while continuing to grow our marthasflowers.com
online flower business and to generate new subscribers to our magazines.
CORPORATE OVERHEAD
Corporate overhead, including depreciation and amortization and the amortization
of non-cash stock compensation, was $15.5 million, compared to $12.3 million in
the prior year's quarter. Corporate overhead, before depreciation and
amortization and the amortization of non-cash stock compensation, was $8.5
million for the fourth quarter of 2004 compared to $10.1 million in the fourth
quarter of 2003. The year-over-year reduction in OIDA was driven by lower
compensation-related costs and lower professional fees. Corporate overhead,
including depreciation and amortization, increased primarily due to the
amortization of non-cash compensation. Amortization of non-cash stock
compensation expense
3
was $6.0 million in the fourth quarter of 2004, compared to $1.1 million for the
fourth quarter of 2003. The majority of the increase in the 2004 quarter relates
to a non-cash equity compensation charge resulting from the modification of the
terms of certain previously granted employee stock options related to the
retirement of our former Chief Executive Officer.
DEPRECIATION AND AMORTIZATION
Depreciation and amortization was $1.7 million in the fourth quarter of 2004,
compared to $3.6 million for the fourth quarter of 2003. The lower depreciation
in the current quarter was primarily a result of the acceleration of
depreciation of $1.7 million recorded in the fourth quarter of 2003 related to
the write-down to fair-value of certain television studio assets.
FULL-YEAR 2004 OPERATING RESULTS
Revenues for the year ended December 31, 2004, were $187.4 million, compared to
$245.8 million for the year ended December 31, 2003. Operating income (loss) was
$(60.0) million for the year ended December 31, 2004, compared to $(6.4) million
for the year ended December 31, 2003, while OIDA for the year ended December 31,
2004, was $(43.8) million, compared to $4.8 million in the same period one year
ago. For the year ended December 31, 2004, net loss from continuing operations
was $(59.1) million or $(1.19) per share. This compares to net loss from
continuing operations of $(1.9) million, or $(0.04) per share, in the year
ending December 31, 2003.
TRENDS AND OUTLOOK
James Follo, Chief Financial and Administrative Officer, commented: "We continue
to focus on maintaining our strong balance sheet while supporting and investing
in long-term growth opportunities. Our results for the fourth quarter reflect a
careful deployment of our financial resources, which allowed us to finish the
year with cash and short-term investments of $140 million. Looking forward, we
will continue to focus on improving our operating trends. Our outlook for the
first quarter is for a loss of approximately $(0.35) per share."
BASIS OF PRESENTATION
The Company believes OIDA is an appropriate measure when evaluating the
operating performance of its business segments and the Company on a consolidated
basis. OIDA is used externally by the Company's investors, analysts, and
industry peers. OIDA is among the primary metrics used by management for
planning and forecasting of future periods, and is considered an important
indicator of the operational strength of the Company's businesses. The Company
believes the presentation of this
4
measure is relevant and useful for investors because it allows investors to view
performance in a manner similar to the method used by the Company's management
and makes it easier to compare the Company's results with other companies that
have different capital structures or tax rates. The Company believes OIDA should
be considered in addition to, not as a substitute for, operating income (loss),
net income (loss), cash flows, and other measures of financial performance
prepared in accordance with generally accepted accounting principles ("GAAP").
As OIDA is not a measure of performance calculated in accordance with GAAP, this
measure may not be comparable to similarly titled measures employed by other
companies. A reconciliation of OIDA to operating income (loss) is provided in
the financial statements included with this release.
Martha Stewart Living Omnimedia, Inc. (MSO) is a leading provider of original
"how-to" information, inspiring and engaging consumers with unique lifestyle
content and high-quality products. MSO is organized into four business segments:
Publishing, Television, Merchandising, and Internet/Direct Commerce. Martha
Stewart Living Omnimedia, Inc. is listed on the New York Stock Exchange under
the ticker symbol MSO.
The Company will host a conference call with analysts and investors at 11:00
a.m. ET that will be broadcast live over the Internet at www.marthastewart.com.
###
This press release contains certain "forward-looking statements," as that term
is defined in the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are not historical facts but instead represent only
our current beliefs regarding future events, many of which, by their nature, are
inherently uncertain and outside of our control. These statements can be
identified by terminology such as "may," "will," "should," "could," "expects,"
"intends," "plans," "anticipates," "believes," "estimates," "potential" or
"continue" or the negative of these terms or other comparable terminology. The
Company's actual results may differ materially from those projected in these
statements, and factors that could cause such differences include further
adverse reaction to the prolonged and continued negative publicity relating to
Martha Stewart by consumers, advertisers and business partners; further adverse
reaction by the Company's consumers, advertisers and business partners to the
outcome of Ms. Stewart's trial and related sentencing arising from a sale of
non-Company stock by Ms. Stewart; a loss of the services of Ms. Stewart; a loss
of the services of other key personnel; an adverse resolution to the SEC
enforcement proceeding currently underway against Ms. Stewart arising from her
personal sale of non-Company stock; adverse resolution of some or all of the
Company's ongoing litigation; downturns
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in national and/or local economies; shifts in our business strategies; a
softening of the domestic advertising market; changes in consumer reading,
purchasing and/or television viewing patterns; unanticipated increases in paper,
postage or printing costs; operational or financial problems at any of our
contractual business partners; the receptivity of consumers to our new product
introductions; and changes in government regulations affecting the Company's
industries. Certain of these and other factors are discussed in more detail in
the Company's filings with the Securities and Exchange Commission, especially
under the heading "Management's Discussion and Analysis of Financial Condition
and Results of Operations", which may be accessed through the SEC's World Wide
Web site at http://www.sec.gov. The Company is under no obligation to update any
forward-looking statements after the date of this release.
CONTACT: Investors - Howard Hochhauser, VP Finance and Investor Relations of
Martha Stewart Living Omnimedia, Inc., 212-827-8530; Media - Elizabeth Estroff,
AVP, Corporate Communications, of Martha Stewart Living Omnimedia, Inc.,
212-827-8281.
6
Martha Stewart Living Omnimedia, Inc.
Consolidated Statements of Operations
Three Months Ended December 31,
(in thousands, except per share amounts)
2004 2003 % change
---- ---- --------
REVENUES
Publishing $ 26,130 $ 33,111 -21.1%
Television 1,069 5,922 -81.9%
Merchandising 23,680 22,452 5.5%
Internet/Direct Commerce 9,333 9,377 -0.5%
-------- -------- ------
Total revenues 60,212 70,862 -15.0%
-------- -------- ------
OPERATING COSTS AND EXPENSES
Production, distribution and editorial 29,447 33,777 12.8%
Selling and promotion 20,506 16,907 -21.3%
General and administrative 12,020 13,211 9.0%
Amortization of non-cash stock compensation expense 6,028 1,114 nm
Depreciation and amortization 1,696 3,589 52.7%
-------- -------- ------
Total operating costs and expenses 69,697 68,598 -1.6%
-------- -------- ------
OPERATING INCOME (LOSS) (9,485) 2,264 nm
Interest income, net 607 349 73.9%
-------- -------- ------
INCOME (LOSS) BEFORE INCOME TAXES (8,878) 2,613 nm
Income tax benefit/(provision) 1,658 (37) nm
-------- -------- ------
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE LOSS FROM
DISCONTINUED OPERATIONS (7,220) 2,576 nm
-------- -------- ------
Loss from discontinued operations (109) (204) 46.6%
-------- -------- ------
NET INCOME (LOSS) $ (7,329) $ 2,372 nm
======== ======== ======
INCOME (LOSS) PER SHARE - BASIC AND DILUTED
Income (Loss) from continuing operations $ (0.14) $ 0.05
Loss from discontinued operations (0.00) (0.00)
-------- --------
Net income (loss) $ (0.15) $ 0.05
======== ========
WEIGHTED AVERAGE SHARES OUTSTANDING
BASIC 50,119 49,451
DILUTED 50,119 49,581
7
Martha Stewart Living Omnimedia, Inc.
Segment Information
Three Months Ended December 31,
(in thousands)
2004 2003 % change
---- ---- --------
REVENUES
Publishing $ 26,130 $ 33,111 -21.1%
Television 1,069 5,922 -81.9%
Merchandising 23,680 22,452 5.5%
Internet/Direct Commerce 9,333 9,377 -0.5%
-------- -------- ------
Total revenues 60,212 70,862 -15.0%
-------- -------- ------
OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION
Publishing (11,116) 442 nm
Television (1,355) (853) -58.9%
Merchandising 20,009 18,493 8.2%
Internet/Direct Commerce (824) (1,005) 18.0%
-------- -------- ------
Operating Income (Loss) before Depreciation and Amortization 6,714 17,077 -60.7%
and Corporate Overhead
Corporate Overhead (8,475) (10,110) 16.2%
-------- -------- ------
Operating Income (Loss) before Depreciation and Amortization (1,761) 6,967 nm
Amortization of non-cash stock compensation expense (6,028) (1,114) nm
Depreciation and amortization (1,696) (3,589) 52.8%
-------- -------- ------
OPERATING INCOME (LOSS) (9,485) 2,264 nm
Interest income, net 607 349 74.0%
-------- -------- ------
INCOME (LOSS) BEFORE INCOME TAXES (8,878) 2,613 nm
Income tax benefit/(provision) 1,658 (37) nm
-------- -------- ------
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE LOSS FROM
DISCONTINUED OPERATIONS (7,220) 2,576 nm
-------- -------- ------
Income (Loss) from discontinued operations (109) (204) 46.6%
-------- -------- ------
NET INCOME (LOSS) $ (7,329) $ 2,372 nm
======== ======== ======
8
Martha Stewart Living Omnimedia, Inc.
Consolidated Statements of Operations
Twelve Months Ended December 31,
(in thousands, except per share amounts)
2004 2003 % change
---- ---- --------
REVENUES
Publishing $ 96,035 $ 135,936 -29.4%
Television 10,505 25,704 -59.2%
Merchandising 53,386 53,395 0.0%
Internet/Direct Commerce 27,512 30,813 -10.8%
---------- ----------- -------
Total revenues 187,438 245,848 -23.8%
---------- ----------- -------
OPERATING COSTS AND EXPENSES
Production, distribution and editorial 116,204 136,269 14.8%
Selling and promotion 59,351 51,621 -15.0%
General and administrative 55,716 53,170 -4.8%
Amortization of non-cash stock compensation expense 9,499 1,524 nm
Depreciation and amortization 6,672 9,669 31.0%
---------- ----------- -------
Total operating costs and expenses 247,442 252,253 1.9%
---------- ----------- -------
OPERATING LOSS (60,004) (6,405) nm
Interest income, net 1,799 1,439 25.1%
---------- ----------- -------
LOSS BEFORE INCOME TAXES (58,205) (4,966) nm
Income tax benefit/(provision) (868) 3,043 nm
---------- ----------- -------
LOSS FROM CONTINUING OPERATIONS BEFORE LOSS FROM DISCONTINUED
OPERATIONS (59,073) (1,923) nm
---------- ----------- -------
Loss from discontinued operations, net of tax benefit in 2003 (526) (848) 38.0%
---------- ----------- -------
NET LOSS $ (59,599) $ (2,771) nm
========== =========== ======
LOSS PER SHARE - BASIC AND DILUTED
Loss from continuing operations $ (1.19) $ (0.04)
Loss from discontinued operations (0.01) (0.02)
---------- -----------
Net Loss $ (1.20) $ (0.06)
========== ===========
WEIGHTED AVERAGE SHARES OUTSTANDING
BASIC and DILUTED 49,712 49,389
9
Martha Stewart Living Omnimedia, Inc.
Segment Information
Twelve Months Ended December 31,
(in thousands)
2004 2003 % change
---- ---- --------
REVENUES
Publishing $ 96,035 $ 135,936 -29.4%
Television 10,505 25,704 -59.2%
Merchandising 53,386 53,395 0.0%
Internet/Direct Commerce 27,512 30,813 -10.8%
-------- ----------- ------
Total revenues 187,438 245,848 -23.8%
-------- ----------- ------
OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION
Publishing (23,996) 19,964 nm
Television (8,482) 358 nm
Merchandising 37,115 38,439 -3.5%
Internet/Direct Commerce (7,874) (15,074) 47.8%
-------- ----------- ------
Operating Income (Loss) before Depreciation and Amortization (3,237) 43,687 nm
and Corporate Overhead
Corporate Overhead (40,596) (38,899) -4.4%
-------- ----------- ------
Operating Income (Loss) before Depreciation and Amortization (43,833) 4,788 nm
Amortization of non-cash stock compensation expense (9,499) (1,524) nm
Depreciation and amortization (6,672) (9,669) 31.0%
-------- ----------- ------
OPERATING LOSS (60,004) (6,405) nm
Interest income, net 1,799 1,439 25.1%
-------- ----------- ------
LOSS BEFORE INCOME TAXES (58,205) (4,966) nm
Income tax benefit/(provision) (868) 3,043 nm
-------- ----------- ------
LOSS FROM CONTINUING OPERATIONS BEFORE LOSS FROM DISCONTINUED
OPERATIONS (59,073) (1,923) nm
-------- ----------- ------
Loss from discontinued operations, net of tax benefit in 2003 (526) (848) 38.0%
-------- ----------- ------
NET LOSS $(59,599) $ (2,771) nm
======== =========== ======
10
Martha Stewart Living Omnimedia, Inc.
Consolidated Balance Sheets
(in thousands, except per share amounts)
December 31, December 31,
2004 2003
------------ ------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $104,647 $165,566
Short-term investments 35,309 3,100
Accounts receivable, net 27,894 39,758
Inventories, net 5,229 7,485
Deferred television production costs - 3,465
Income taxes receivable 6,321 5,658
Deferred income taxes, net - 5,024
Other current assets 3,573 4,422
-------- --------
TOTAL CURRENT ASSETS 182,973 234,478
-------- --------
PROPERTY, PLANT, AND EQUIPMENT, net 17,175 22,673
-------- --------
INTANGIBLE ASSETS, net 54,264 44,257
-------- --------
DEFERRED INCOME TAXES - 3,224
-------- --------
OTHER NONCURRENT ASSETS 6,828 4,470
-------- --------
TOTAL ASSETS $261,240 $309,102
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $25,604 $26,628
Accrued payroll and related costs 9,407 10,360
Income taxes payable 412 167
Current portion of deferred subscription income 27,160 23,833
-------- --------
TOTAL CURRENT LIABILITIES 62,583 60,988
-------- --------
DEFERRED SUBSCRIPTION INCOME 7,668 7,133
OTHER NONCURRENT LIABILITIES 3,361 4,316
-------- --------
TOTAL LIABILITIES $73,612 $72,437
-------- --------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Class A common stock, $0.01 par value, 350,000 shares authorized:
21,660 and 19,628 shares issued in 2004 and 2003, respectively 217 196
Class B common stock, $0.01 par value, 150,000 shares authorized:
29,123 and 30,059 shares outstanding in 2004 and 2003, respectively 291 301
Capital in excess of par value 196,781 183,744
Unamortized restricted stock (2,793) (307)
Retained earnings (6,093) 53,506
-------- --------
188,403 237,440
Less class A treasury stock - 59 shares at cost (775) (775)
-------- --------
TOTAL SHAREHOLDERS' EQUITY 187,628 236,665
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $261,240 $309,102
======== ========
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Martha Stewart Living Omnimedia, Inc.
Supplemental Disclosures Regarding Non- GAAP Financial Information
Three Months Ended December 31,
(in thousands)
The following table presents segment and consolidated financial
information, including a reconciliation of operating income, a GAAP measure, and
Operating Income before Depreciation and Amortization, including the
amortization of non-cash stock compensation, (OIDA), a non-GAAP measure. In
order to reconcile OIDA to operating income, depreciation and amortization are
added back to operating income.
2004 2003 % change
---- ---- --------
OPERATING INCOME (LOSS)
Publishing $ (11,333) $ 350 nm
Television (1,412) (2,812) 49.8%
Merchandising 19,819 18,312 8.3%
Internet/ Direct Commerce (1,071) (1,239) 13.6%
--------- ------- ------
Operating Income (Loss) before Corporate Overhead 6,003 14,611 -59.0%
Corporate Overhead (15,488) (12,347) -25.5%
--------- ------- ------
TOTAL OPERATING INCOME (LOSS) (9,485) 2,264 nm
--------- ------- ------
DEPRECIATION AND AMORTIZATION
Publishing 203 42 -383.4%
Television 57 1,959 nm
Merchandising 190 168 -13.1%
Internet/ Direct Commerce 247 234 -5.6%
Corporate Overhead 999 1,186 15.8%
--------- ------- ------
TOTAL DEPRECIATION AND AMORTIZATION 1,696 3,589 52.8%
--------- ------- ------
AMORTIZATION OF NON-CASH STOCK COMPENSATION
Publishing 14 50 72.0%
Television - - -
Merchandising - 13 nm
Internet/ Direct Commerce - - -
Corporate Overhead 6,014 1,051 nm
--------- ------- ------
TOTAL AMORTIZATION 6,028 1,114 nm
--------- ------- ------
OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION AND
AMORTIZATION OF NON-CASH STOCK COMPENSATION
Publishing (11,116) 442 nm
Television (1,355) (853) -58.9%
Merchandising 20,009 18,493 8.2%
Internet/ Direct Commerce (824) (1,005) 18.0%
--------- ------- ------
Operating Income (Loss) before Depreciation and
Amortization, Amortization of Non-Cash Stock
Compensation and before Corporate Overhead 6,714 17,077 -60.7%
Corporate Overhead (8,475) (10,110) 16.2%
--------- ------- ------
OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND
AMORTIZATION AND AMORTIZATION OF NON-CASH STOCK
COMPENSATION $ (1,761) $ 6,967 nm
========= ======= ======
12
Martha Stewart Living Omnimedia, Inc.
Supplemental Disclosures Regarding Non- GAAP Financial Information
Twelve Months Ended December 31,
(in thousands)
The following table presents segment and consolidated financial
information, including a reconciliation of operating income, a GAAP measure, and
Operating Income before Depreciation and Amortization, including the
amortization of non-cash stock compensation, (OIDA), a non-GAAP measure. In
order to reconcile OIDA to operating income, depreciation and amortization are
added back to operating income.
2004 2003 % change
---- ---- --------
OPERATING INCOME (LOSS)
Publishing $ (24,611) $ 19,597 nm
Television (8,712) (2,616) 233.1%
Merchandising 36,427 37,717 -3.5%
Internet/ Direct Commerce (8,861) (16,013) 44.7%
--------- -------- --------
Operating Income (Loss) before Corporate Overhead (5,757) 38,685 nm
Corporate Overhead (54,247) (45,090) -20.3%
--------- -------- --------
TOTAL OPERATING LOSS (60,004) (6,405) -836.9%
--------- -------- --------
DEPRECIATION AND AMORTIZATION
Publishing 472 165 -186.1%
Television 230 2,974 92.3%
Merchandising 760 671 -13.3%
Internet/ Direct Commerce 987 960 -2.8%
Corporate Overhead 4,223 4,899 13.8%
--------- -------- --------
TOTAL DEPRECIATION AND AMORTIZATION 6,672 9,669 31.0%
--------- -------- --------
AMORTIZATION OF NON-CASH STOCK COMPENSATION EXPENSE (BENEFIT)
Publishing 143 202 nm
Television - - -
Merchandising (72) 51 nm
Internet/ Direct Commerce - (21) nm
Corporate Overhead 9,428 1,292 nm
--------- -------- --------
TOTAL AMORTIZATION 9,499 1,524 nm
--------- -------- --------
OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION AND
AMORTIZATION OF NON-CASH STOCK COMPENSATION
Publishing (23,996) 19,964 nm
Television (8,482) 358 nm
Merchandising 37,115 38,439 -3.5%
Internet/ Direct Commerce (7,874) (15,074) 47.8%
--------- -------- --------
Operating Income (Loss) before Depreciation and Amortization,
Amortization of Non-Cash Stock Compensation and before
Corporate Overhead (3,237) 43,687 nm
Corporate Overhead (40,596) (38,899) -4.4%
--------- -------- --------
OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND
AMORTIZATION AND AMORTIZATION OF NON-CASH STOCK
COMPENSATION $ (43,833) $ 4,788 nm
========= ======== ========
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