Scripps Networks Interactive Inc.
) has reported weak financial results for the fourth quarter of
2012, which fell below the Zacks Consensus Estimate.Quarterly
GAAP net income from continuing operations was $305.8 million or
$2.02 per share compared with $135 million or 84 cents per share
in the prior-year quarter. However, the fourth-quarter 2012
adjusted earnings per share of 84 cents were way below the Zacks
Consensus Estimate of 91 cents. Quarterly total revenue of $604.7
million increased 9.2% on an annualized basis, but fell below the
Zacks Consensus Estimate of $617 million.
The fourth-quarter gross profit was $438.8 million compared
with $409.9 million recorded in the prior-year quarter. Quarterly
gross margin was 72.6% compared with 74.1% in the prior-year
quarter. Quarterly operating income dropped 6.1% year over year
to $218.9 million. Operating margin in the reported quarter was
36.2% compared with 42.1% in the prior-year quarter.
During fiscal 2012, Scripps Networks generated $614.7 million
of cash from operations compared with $728.9 million in fiscal
2011. Free cash flow in fiscal 2012 was $384.9 million compared
with $591.1 million in fiscal 2011. At the end of fiscal 2012,
Scripps Networks had $437.5 million in cash & marketable
securities and $1,384.2 million of outstanding debt on its
balance sheet compared with $760.1 million in cash &
marketable securities and $1,383.9 million of outstanding debt at
the end of 2011. At the end of 2012, debt-to-capitalization ratio
was 0.21 compared with 0.45 at the end of 2011.
Lifestyle Media Segment
Quarterly revenue came in at $584.9 million, showing an
annualized growth of 6.8%. Within this segment, Advertising
revenue climbed 4.3% year-over-year to $409.4 million. Network
Affiliate fee revenue stood at $167 million, up 14.7% year over
year and Other revenue slipped 13.9% year over year to $8.5
million. Total segment profit was $287.5 million, up 2.4% year
Brand wise, HGTV revenue was approximately $200.2 million, up
5.1% year over year. Total subscriber base was 98.8 million, down
0.1% year over year. Food Network revenue was $214.6 million, up
5.2% year over year. Total subscriber base stood at 99.7 million,
up 0.1% year over year. Travel Channel revenue was $71.1 million,
up 5.9% year over year. Total subscriber base slid 0.2% year over
year to 94.7 million.
DIY Network revenue was $30.4 million, up 12.9% year over
year. Total subscriber base was 58.4 million, up 3.4% year over
year. Cooking Channel revenue was $24.7 million, up 38.4% year
over year. Total subscriber base was 60.1 million, up 3.3% year
over year. Great American Country revenue was $7.6 million, up
15.8% year over year. Total subscriber base stood at 62.7
million, up 0.8% year over year. SN Digital revenue increased
9.1% annually to $33.2 million. Other revenue was $3.2 million,
down 26.7% year over year.
Quarterly total revenue of around $19.8 million was up by a
whopping 252.4% year over year. However, segment loss was $21.6
million, down 7.3% year over year.
Other Stocks to Consider
Scripps Networks currently has a Zacks Rank #4 (Sell).
However, other stocks in the Media/Broadcast industry, which look
Entravision Communications Corp.
LIN TV Corp.
Discovery Communications Inc.
). While Entravision and LIN TV both carry a Zacks Rank #1
(Strong Buy), Discovery has a Zacks Rank #2 (Buy).
DISCOVERY COM-A (DISCA): Free Stock Analysis
ENTRAVISION COM (EVC): Free Stock Analysis
SCRIPPS NETWRKS (SNI): Free Stock Analysis
LIN TV CORP -A (TVL): Free Stock Analysis
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