Scripps Networks Lags 1Q Earnings - Analyst Blog

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Scripps Networks Interactive Inc. ( SNI ) reported adjusted earnings of 72 cents for the first quarter of 2013, which fell below the Zacks Consensus Estimate of 74 cents. Quarterly GAAP net income from continuing operations was $107.8 million or 72 cents per share compared with $114.9 million or 74 cents per share in the prior-year quarter. Quarterly total revenue of $594.4 million increased 11.0% on an annualized basis, and was also ahead of the Zacks Consensus Estimate of $580 million.

The first-quarter 2013 gross profit was $430.6 million compared with $397.6 million recorded in the prior-year quarter. Quarterly gross margin was 72.4% compared with 74.3% in the prior-year quarter. Quarterly operating income increased 2.4% year over year to $219.8 million. Operating margin in the reported quarter was 37.0% compared with 40.1% in the prior-year quarter.

At the end of the first quarter of 2013, Scripps Networks generated $268.1 million of cash from operations compared with $208.2 million in the prior-year quarter. Free cash flow at the end of the first quarter was $160.7 million compared with $153.0 million at the end of the same period last year. At the end of the first quarter, Scripps Networks had $421.2 million in cash & marketable securities and $1,384.3 million of outstanding debt on its balance sheet compared with $437.5 million in cash & marketable securities and $1,384.2 million of outstanding debt at the end of 2012. At the end of the reported quarter, the debt-to-capitalization ratio was 0.44 compared with 0.43 at the end of 2012.

Lifestyle Media Segment

Quarterly revenues came in at $581.0 million, showing an annualized growth of 9.9%. Within this segment, Advertisement revenues climbed 10.0% year over year to $391.2 million. Network Affiliate fee revenues were $180.6 million, up 8.5% year over year.Other revenues leaped 36.1% year over year to $9.3 million. Total segment profit was $247.4 million, up 3.4% year over year.

Brand wise, HGTV revenues were approximately $206.0 million, up 10.9% year over year. Food Network revenues were $208.3 million, up 4.8% year over year. Travel Channel revenues were was $76.7 million, up 15.1% year over year. DIY Network revenues were $31.9 million, up 15.4% year over year. Cooking Channel revenues were $26.3 million, up 32.7% year over year. Great American Country revenues were $6.4 million, up 28.2% year over year. SN Digital revenues increased 0.9% annually to $22.6 million. Other revenues were $3.9 million, up 47.2% year over year.

Corporate Segment

Quarterly total revenue of $13.3 million was up by a whopping 97.3% year over year. However, the loss in the segment was $34.6 million, up 36.4% year over year.

Other Stocks to Consider

Scripps Networks currently has a Zacks Rank #3 (Hold). Other stocks in the Media/Broadcast industry include Entravision Communications Corp. ( EVC ), LIN TV Corp. ( TVL ) and Discovery Communications Inc. ( DISCA ).



DISCOVERY COM-A (DISCA): Free Stock Analysis Report

ENTRAVISION COM (EVC): Free Stock Analysis Report

SCRIPPS NETWRKS (SNI): Free Stock Analysis Report

LIN TV CORP -A (TVL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: DISCA , EVC , SNI , TVL

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