-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BrWiQBM/71rToSdEtp3rA1VoZsKLt4OGKiLrW/v/kI+Nx9W6BFctIEPm0Cls9wnb tR0HR4+Z2G5aa7f7FzcXZA== 0000895345-03-000533.txt : 20030811 0000895345-03-000533.hdr.sgml : 20030811 20030811101549 ACCESSION NUMBER: 0000895345-03-000533 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030811 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030811 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MARTHA STEWART LIVING OMNIMEDIA INC CENTRAL INDEX KEY: 0001091801 STANDARD INDUSTRIAL CLASSIFICATION: PERIODICALS: PUBLISHING OR PUBLISHING AND PRINTING [2721] IRS NUMBER: 522187059 STATE OF INCORPORATION: DE FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15395 FILM NUMBER: 03833407 BUSINESS ADDRESS: STREET 1: 20 WEST 43RD STREET CITY: NEW YORK STATE: NY ZIP: 10036 BUSINESS PHONE: 2128278000 MAIL ADDRESS: STREET 1: 20 WEST 43RD STREET CITY: NEW YORK STATE: NY ZIP: 10036 8-K 1 wd8k.txt =============================================================================== SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ----------------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ----------------------------------- DATE OF REPORT: AUGUST 11, 2003 DATE OF EARLIEST EVENT REPORTED: AUGUST 11, 2003 MARTHA STEWART LIVING OMNIMEDIA, INC. (Exact name of registrant as specified in its charter) DELAWARE 001-15395 52-2187059 (State or other (Commission File Number) (I.R.S. Employer jurisdiction of Identification Number) incorporation or organization) 11 WEST 42ND STREET NEW YORK, NY 10036 (Address of principal executive offices) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (212) 827-8000 Item 7. Financial Statements and Exhibits. --------------------------------- (c) Exhibit Description ------- ----------- 99.1 Martha Stewart Living Omnimedia, Inc. Press Release, dated August 11, 2003. Item 12. Results of Operations and Financial Condition. --------------------------------------------- On August 11, 2003, the Registrant issued a press release relating to its financial results for the second quarter of 2003. The full text of the press release is attached hereto as Exhibit 99.1 to this report. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf of the undersigned hereunto duly authorized. Dated: August 11, 2003 MARTHA STEWART LIVING OMNIMEDIA, INC. By: /s/ James Follo ----------------------------------- James Follo Executive Vice President, Chief Financial Officer Index of Exhibits ----------------- Exhibit - ------- No. Description - --- ----------- 99.1 Martha Stewart Living Omnimedia, Inc. press release, dated August 11, 2003 EX-99.1 3 ex99_1.txt EXHIBIT 99.1 FOR IMMEDIATE RELEASE - --------------------- MARTHA STEWART LIVING OMNIMEDIA, INC. ANNOUNCES SECOND QUARTER 2003 RESULTS ------------------------------------- NEW YORK, NEW YORK, AUGUST 11, 2003 --- Martha Stewart Living Omnimedia, Inc. (NYSE: MSO) today announced its results for the second quarter and six-month period ended June 30, 2003. Revenues for the second quarter of 2003 were $65.8 million, compared to $78.6 million in the prior year's quarter. Operating income for the second quarter was $1.5 million compared to $13.1 million for the second quarter of 2002, while operating income before depreciation and amortization ("OIDA") for the second quarter of 2003 was $3.6 million, compared to $16.2 million in the same period last year. Earnings per share from continuing operations were $0.02 for the second quarter of 2003, compared to $0.16 in the 2002 quarter. Sharon L. Patrick, President and Chief Executive Officer, said, "During an exceptionally difficult quarter, our talented team responded to the challenges presented by the effects of Martha Stewart's personal legal situation and continued to earn the loyalty of readers, viewers, and customers by creating and producing the unique how-to information and quality products for the home that define our brand. "We believe that the Martha Stewart Living core brand will continue to be under pressure until resolution of Martha Stewart's personal legal situation. Our strategy until then will be to continue to invest in sustaining our core Martha Stewart Living brand equity, brand labels and other assets, all the while investing in new properties like Everyday Food and controlling costs wherever doing so does not conflict with those goals. "Highlights for the quarter included our recent decision to launch our new Everyday Food magazine, reflecting the strong consumer response to its four test issues. We believe this near-term investment will generate long-term profitability. We are excited by the prospects for this innovative magazine aimed directly at the burgeoning market of the busy home cook. In addition, the quarter included the successful launch of our Martha Stewart Signature furniture collection, which has met with an excellent response and attests to the enduring appeal of the brand. The Company also made further improvements in its Internet/Direct Commerce segment during the quarter, generating better results from increased operating efficiencies and a lower cost structure. Looking to the third quarter, we are excited about the launch of our Martha Stewart Everyday program with Sears Canada in September." SECOND QUARTER 2003 RESULTS - --------------------------- PUBLISHING - ---------- Revenues in the quarter were $39.6 million, compared to $47.3 million in the year-ago period. OIDA was $9.4 million for the quarter, compared to $16.6 million in the year-ago period. Operating income was $9.3 million, compared to $16.5 million in the second quarter of 2002. The results reflect lower advertising and circulation revenue in Martha Stewart Living magazine in the quarter, partially offset by higher revenues from Everyday Food and Martha Stewart Weddings. In addition to the publication of two issues of Everyday Food in the 2003 quarter, the Company also published two issues of Martha Stewart Weddings and two special issues, compared to one issue of Martha Stewart Weddings and two special issues in the second quarter of 2002. TELEVISION - ---------- Revenues in the second quarter of 2003 were $6.6 million, compared to $7.2 million in the prior year's quarter. OIDA was $0.4 million for this year's second quarter, compared to $1.4 million in the prior year's second quarter. Operating income for the second quarter of 2003 was breakeven, compared to $0.9 million in the second quarter of 2002. The decline in performance was due primarily to lower ratings and advertising revenue from the Company's nationally syndicated daily show, combined with higher year-over-year marketing expenses, as well as the loss of high margin revenues from CBS's The Early Show. MERCHANDISING - ------------- Revenues in the second quarter of 2003 were $11.8 million, compared to $16.0 million in the prior year quarter. Revenues in the 2003 quarter reflect the benefit of the launch of the Martha Stewart Signature line of furniture and a higher royalty rate on our Martha Stewart Everyday products sold at Kmart, offset by the impact on product sales of Kmart store closures and the elimination of certain garden products. Revenues recorded in the quarter from the Company's contract with Kmart reflect royalties earned on actual product sales, without giving effect to annual minimum royalty amounts that are payable in early 2004. OIDA was $8.0 million, compared to $12.5 million in the prior year's quarter. Second quarter 2003 operating income was $7.8 million, compared to $12.4 million in the second quarter of 2002. The declines in operating income and OIDA resulted from lower royalty revenue. INTERNET/DIRECT COMMERCE - ------------------------ Revenues were $7.8 million, compared to $8.1 million in the same period a year ago. Revenues declined in the quarter due to lower advertising revenues, partially offset by higher commerce revenues. OIDA was $(4.3) million in the 2003 quarter, compared to $(6.7) million in the year-ago period. The reduced loss resulted from significant progress made in reducing the cost structure of the segment, including improved product gross margin, more efficient fulfillment operations, as well as lower headcount and technology related costs. The second quarter results do not yet reflect the operating benefits the Company expects to achieve beginning in the third quarter resulting from reduced and more targeted catalog circulation and a more focused and improved product assortment. Operating loss was $(4.6) million for the second quarter of 2003, compared to $(7.4) million in the second quarter of 2002. Depreciation and amortization in the second quarter of 2003 was $0.2 million, compared to $0.7 million in the second quarter of 2002, primarily as a result of a write down of costs associated with the Company's website taken in the fourth quarter of 2002. CORPORATE OVERHEAD - ------------------ Corporate overhead, before depreciation and amortization, was $9.9 million for the second quarter of 2003, compared to $7.6 million in the second quarter of 2002. Corporate overhead, including depreciation and amortization, increased to $11.1 million, compared to $9.3 million in the prior year's quarter, primarily as a result of higher legal and professional fees incurred as a result of corporate issues resulting from investigations into a personal sale of non-Company stock by Martha Stewart, as well as higher insurance and corporate promotion costs. DEPRECIATION AND AMORTIZATION - ----------------------------- Depreciation and amortization decreased $1.1 million to $2.1 million in the second quarter of 2003, compared to $3.1 million for the second quarter 2002, due primarily to lower depreciation resulting from a write down of costs associated with the Company's website taken in the fourth quarter of 2002. SIX MONTH 2003 OPERATING RESULTS - -------------------------------- Revenues for the six months ended June 30, 2003 were $123.8 million, compared to $146.6 million for the six months ended June 30, 2002. Operating income (loss) was $(6.0) million for the six months ended June 30, 2003, compared to $18.9 million for the six months ended June 30, 2002, while OIDA for the six months ended June 30, 2003 was $(1.8) million, compared to $25.0 million in the same period one year ago. For the six month period ending June 30, 2003, net loss from continuing operations of $(3.1) million, or $(0.06) per share, compares to net income from continuing operations of $11.8 million, or $0.24 per share, in the six month period ending June 30, 2002. The results for the six months ended June 30, 2002 included the cumulative effect of an accounting change resulting from the adoption of FAS 142 that resulted in the reduction to the carrying value of the Company's goodwill by $5.0 million ($3.1 million after tax). TRENDS AND OUTLOOK - ------------------ James Follo, the Company's Chief Financial Officer, commented, "We continue to maintain our strong financial position, including $172 million in cash and short-term investments at quarter-end. We recognize that the challenges we face are likely to persist for some time, and we are carefully balancing that against our opportunities for growth and our commitment to building value for the long-term. Our current outlook for the third quarter is for a loss per share of approximately $(0.15) and for the full-year 2003, a loss of approximately $(0.18) to $(0.20) 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 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 that turns dreamers into doers, inspiring and engaging consumers with unique content and high-quality products for the home. MSO's creative experts develop content within eight core areas - Home, Cooking and Entertaining, Gardening, Crafts, Holiday, Keeping, Weddings, and Baby and Kids - that provide consumers with ideas and products to celebrate their homes and the domestic arts. MSO is organized into four business segments - Publishing, Television, Merchandising and Internet/Direct Commerce. The Company will host a conference call with analysts and investors at 11:00 am ET that will be broadcast live over the Internet at www.marthastewart.com/ir. ### 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 and can be identified by the use of terminology such as "may," "will," "should," "could", "expects," "plans," and "intends." 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; a loss of the services, or diminution in the reputation, of Ms. Stewart; further adverse reaction by the Company's consumers, advertisers and business partners to the uncertainty relating to the nature of the resolution of the criminal and civil proceedings pending against Ms. Stewart concerning a sale of non-Company stock by Ms. Stewart and any adverse resolution of such proceedings; adverse resolution of some or all of the Company's ongoing litigation; any loss of the services of the Company's key personnel; downturns in national and/or local economies; an inability to execute the restructuring of our Internet/Direct Commerce segment as planned; 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", 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 - James Follo, Chief Financial Officer of Martha Stewart Living Omnimedia, Inc., 212-827-8218; Media - Elizabeth Estroff of Martha Stewart Living Omnimedia, Inc., 212-827-8281. Martha Stewart Living Omnimedia, Inc. Consolidated Income Statement Three Months Ended June 30, (unaudited, in thousands, except per share amounts)
2003 2002 % change --------------- --------------- --------------- REVENUES Publishing $ 39,617 $ 47,323 -16.3% Television 6,588 7,249 -9.1% Merchandising 11,763 15,974 -26.4% Internet/Direct Commerce 7,814 8,056 -3.0% --------------- --------------- --------------- Total revenues 65,782 78,602 -16.3% --------------- --------------- --------------- OPERATING COSTS AND EXPENSES Production, distribution and editorial 35,473 39,380 -9.9% Selling and promotion 13,724 11,656 17.7% General and administrative 13,028 11,368 14.6% Depreciation and amortization 2,054 3,118 -34.1% --------------- --------------- --------------- Total operating costs and expenses 64,279 65,522 -1.9% --------------- --------------- --------------- OPERATING INCOME 1,503 13,080 -88.5% Interest income, net 395 568 -30.5% --------------- --------------- --------------- INCOME BEFORE INCOME TAXES 1,898 13,648 -86.1% Income tax (provision) (665) (5,596) 88.1% --------------- --------------- --------------- INCOME FROM CONTINUING OPERATIONS BEFORE LOSS FROM DISCONTINUED OPERATIONS 1,233 8,052 -84.7% -------------- --------------- --------------- Loss from discontinued operations, net of tax benefit (302) (1,313) 77.0% --------------- --------------- --------------- NET INCOME $ 931 $ 6,739 -86.2% =============== =============== =============== EARNINGS PER SHARE - BASIC AND DILUTED Income from continuing operations $ 0.02 $ 0.16 Loss from discontinued operations (0.01) (0.03) --------------- --------------- Net Income $ 0.02 $ 0.14 =============== =============== WEIGHTED AVERAGE SHARES OUTSTANDING- Basic 49,488 49,166 Diluted 49,627 49,373
Martha Stewart Living Omnimedia, Inc. Segment Information Three Months Ended June 30, (unaudited, in thousands) 2003 2002 % change --------------- --------------- --------------- REVENUES Publishing $ 39,617 $ 47,323 -16.3% Television 6,588 7,249 -9.1% Merchandising 11,763 15,974 -26.4% Internet/Direct Commerce 7,814 8,056 -3.0% --------------- --------------- --------------- Total revenues 65,782 78,602 -16.3% --------------- --------------- --------------- OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION Publishing 9,376 16,569 -43.4% Television 387 1,373 -71.8% Merchandising 7,976 12,508 -36.2% Internet/ Direct Commerce (4,308) (6,693) 35.6% --------------- --------------- --------------- Operating Income (Loss) before Depreciation and Amortization 13,431 23,757 -43.5% before Corporate Overhead Corporate Overhead (9,874) (7,559) -30.6% --------------- --------------- --------------- Operating Income before Depreciation and Amortization 3,557 16,198 -78.0% Depreciation and amortization (2,054) (3,118) 34.1% --------------- --------------- --------------- OPERATING INCOME 1,503 13,080 -88.5% Interest income, net 395 568 -30.5% --------------- --------------- --------------- INCOME BEFORE INCOME TAXES 1,898 13,648 -86.1% Income tax (provision) (665) (5,596) 88.1% --------------- --------------- --------------- INCOME FROM CONTINUING OPERATIONS BEFORE LOSS FROM DISCONTINUED OPERATIONS 1,233 8,052 -84.7% --------------- --------------- --------------- Loss from discontinued operations, net of tax benefit (302) (1,313) 77.0% --------------- --------------- --------------- NET INCOME $ 931 $ 6,739 -86.2% =============== =============== ===============
Martha Stewart Living Omnimedia, Inc. Consolidated Income Statement Six Months Ended June 30, (unaudited, in thousands, except per share amounts) 2003 2002 % change --------------- --------------- --------------- REVENUES Publishing $ 73,678 $ 90,417 -18.5% Television 13,203 13,960 -5.4% Merchandising 22,091 27,050 -18.3% Internet/Direct Commerce 14,833 15,134 -2.0% --------------- --------------- --------------- Total revenues 123,805 146,561 -15.5% --------------- --------------- --------------- OPERATING COSTS AND EXPENSES Production, distribution and editorial 71,099 76,151 -6.6% Selling and promotion 26,545 22,338 18.8% General and administrative 28,003 23,027 21.6% Depreciation and amortization 4,195 6,135 -31.6% --------------- --------------- --------------- Total operating costs and expenses 129,842 127,651 1.7% --------------- --------------- --------------- OPERATING INCOME (LOSS) (6,037) 18,910 nm Interest income, net 797 1,058 -24.7% --------------- --------------- --------------- INCOME (LOSS) BEFORE INCOME TAXES (5,240) 19,968 nm Income tax benefit (provision) 2,184 (8,187) nm --------------- --------------- --------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE LOSS FROM DISCONTINUED OPERATIONS AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE (3,056) 11,781 nm --------------- --------------- --------------- Loss from discontinued operations, net of tax benefit (523) (2,139) 75.5% --------------- --------------- --------------- INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE (3,579) 9,642 nm Cumulative effect of accounting change, net of tax benefit - (3,137) nm --------------- --------------- --------------- NET INCOME (LOSS) $ (3,579) $ 6,505 nm =============== =============== =============== EARNINGS (LOSS) PER SHARE - BASIC AND DILUTED Income (loss) from continuing operations $ (0.06) $ 0.24 Loss from discontinued operations (0.01) (0.04) Cumulative effect of accounting change - (0.06) --------------- --------------- Net Income (Loss) $ (0.07) $ 0.13 =============== =============== WEIGHTED AVERAGE SHARES OUTSTANDING- Basic 49,560 48,968 Diluted 49,560 49,147
Martha Stewart Living Omnimedia, Inc. Segment Information Six Months Ended June 30, (unaudited, in thousands) 2003 2002 % change --------------- --------------- --------------- REVENUES Publishing $ 73,678 $ 90,417 -18.5% Television 13,203 13,960 -5.4% Merchandising 22,091 27,050 -18.3% Internet/Direct Commerce 14,833 15,134 -2.0% --------------- --------------- --------------- Total revenues 123,805 146,561 -15.5% --------------- --------------- --------------- OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION Publishing 14,388 31,821 -54.8% Television 1,008 2,162 -53.4% Merchandising 15,179 20,107 -24.5% Internet/ Direct Commerce (12,313) (13,442) 8.4% --------------- --------------- --------------- Operating Income (Loss) before Depreciation and Amortization 18,262 40,648 -55.1% before Corporate Overhead Corporate Overhead (20,104) (15,603) -28.8% -------------- --------------- --------------- Operating Income (Loss) before Depreciation and (1,842) 25,045 nm Amortization Depreciation and amortization (4,195) (6,135) 31.6% --------------- --------------- --------------- OPERATING INCOME (LOSS) (6,037) 18,910 nm Interest income, net 797 1,058 -24.7% --------------- --------------- --------------- INCOME (LOSS) BEFORE INCOME TAXES (5,240) 19,968 nm Income tax benefit (provision) 2,184 (8,187) nm --------------- --------------- --------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE LOSS FROM DISCONTINUED OPERATIONS AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE (3,056) 11,781 nm --------------- --------------- --------------- Loss from discontinued operations, net of tax benefit (523) (2,139) 75.5% --------------- --------------- --------------- INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE (3,579) 9,642 nm Cumulative effect of accounting change, net of tax benefit - (3,137) nm --------------- --------------- --------------- NET INCOME (LOSS) $ (3,579) $ 6,505 nm =============== =============== ===============
Martha Stewart Living Omnimedia, Inc. Consolidated Balance Sheets (in thousands, except per share amounts) June 30, December 31, 2003 2002 ---------------- ------------------ ASSETS (unaudited) CURRENT ASSETS Cash and cash equivalents $ 125,487 $ 131,664 Short-term investments 46,986 47,286 Accounts receivable, net 28,943 37,796 Inventories, net 7,234 8,654 Deferred television production costs 4,195 4,179 Income taxes receivable 2,932 - Deferred income taxes 7,028 7,028 Other current assets 3,092 4,756 ---------------- ------------------ TOTAL CURRENT ASSETS 225,897 241,363 ---------------- ------------------ PROPERTY, PLANT, AND EQUIPMENT, net 27,730 31,288 ---------------- ------------------ INTANGIBLE ASSETS, net 44,257 44,257 ---------------- ------------------ DEFERRED INCOME TAXES 2,827 2,827 ---------------- ------------------ OTHER NONCURRENT ASSETS 4,466 4,807 ---------------- ------------------ TOTAL ASSETS $ 305,177 $ 324,542 ================ ================== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 30,154 $ 40,517 Accrued payroll and related costs 5,318 9,385 Income taxes payable - 323 Current portion of deferred subscription income 25,148 24,932 ---------------- ------------------ TOTAL CURRENT LIABILITIES 60,620 75,157 ---------------- ------------------ DEFERRED SUBSCRIPTION INCOME 6,465 7,715 OTHER NONCURRENT LIABILITIES 4,685 5,035 ---------------- ------------------ TOTAL LIABILITIES 71,770 87,907 --------------- ----------------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY Class A common stock, $0.01 par value, 350,000 shares authorized: 19,459 and 19,342 shares issued in 2003 and 2002, respectively 195 194 Class B common stock, $0.01 par value, 150,000 shares authorized: 30,059 and 30,295 shares outstanding in 2003 and 2002, respectively 301 303 Capital in excess of par value 181,612 181,629 Unamortized restricted stock (624) (993) Retained earnings 52,698 56,277 ---------------- ------------------ 234,182 237,410 Less class A treasury stock - 59 shares at cost (775) (775) ---------------- ------------------ TOTAL SHAREHOLDERS' EQUITY 233,407 236,635 --------------- ----------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 305,177 $ 324,542 =============== =================
Martha Stewart Living Omnimedia, Inc. Supplemental Disclosures Regarding Non- GAAP Financial Information Three Months Ended June 30, (unaudited, 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 (OIDA), a non-GAAP measure. In order to reconcile OIDA to operating income, depreciation and amortization are added back to operating income. 2003 2002 % change ------------------- ------------------- -------------------- REVENUES Publishing 39,617 47,323 -16.3% Television 6,588 7,249 -9.1% Merchandising 11,763 15,974 -26.4% Internet/Direct Commerce 7,814 8,056 -3.0% ------------------- ------------------- -------------------- TOTAL REVENUES 65,782 78,602 -16.3% =================== =================== ==================== OPERATING INCOME (LOSS) Publishing 9,335 16,530 -43.5% Television 2 937 -99.8% Merchandising 7,808 12,350 -36.8% Internet/ Direct Commerce (4,552) (7,434) 38.8% ------------------- ------------------- -------------------- Operating Income before Corporate Overhead 12,593 22,383 -43.7% Corporate Overhead (11,090) (9,303) -19.2% ------------------- ------------------- -------------------- TOTAL OPERATING INCOME 1,503 13,080 -88.5% =================== =================== ==================== DEPRECIATION AND AMORTIZATION Publishing 41 39 5.1% Television 385 436 -11.7% Merchandising 168 158 6.3% Internet/ Direct Commerce 244 741 -67.1% Corporate Overhead 1,216 1,744 -30.3% ------------------- ------------------- -------------------- TOTAL DEPRECIATION AND AMORTIZATION 2,054 3,118 -34.1% =================== =================== ==================== OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION Publishing 9,376 16,569 -43.4% Television 387 1,373 -71.8% Merchandising 7,976 12,508 -36.2% Internet/ Direct Commerce (4,308) (6,693) 35.6% ---------------- ------------------- -------------------- Operating Income before Depreciation and Amortization before Corporate Overhead 13,431 23,757 -43.5% ------------------- ------------------- -------------------- Corporate Overhead (9,874) (7,559) -30.6% ------------------- ------------------- -------------------- TOTAL OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION 3,557 16,198 -78.0% =================== =================== ====================
Martha Stewart Living Omnimedia, Inc. Supplemental Disclosures Regarding Non- GAAP Financial Information Six Months Ended June 30, (unaudited, 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 (OIDA), a non-GAAP measure. In order to reconcile OIDA to operating income, depreciation and amortization are added back to operating income. 2003 2002 % change ------------------- ------------------- -------------------- REVENUES Publishing 73,678 90,417 -18.5% Television 13,203 13,960 -5.4% Merchandising 22,091 27,050 -18.3% Internet/Direct Commerce 14,833 15,134 -2.0% ------------------ ------------------- -------------------- TOTAL REVENUES 123,805 146,561 -15.5% =================== =================== ==================== OPERATING INCOME (LOSS) Publishing 14,306 31,742 -54.9% Television 229 1,293 -82.3% Merchandising 14,842 19,790 -25.0% Internet/ Direct Commerce (12,804) (14,819) 13.6% ------------------- ------------------- -------------------- Operating Income before Corporate Overhead 16,573 38,006 -56.4% Corporate Overhead (22,610) (19,096) -18.4% ------------------- ------------------- -------------------- TOTAL OPERATING INCOME (LOSS) (6,037) 18,910 nm =================== =================== ==================== DEPRECIATION AND AMORTIZATION Publishing 82 79 3.8% Television 779 869 -10.4% Merchandising 337 317 6.3% Internet/ Direct Commerce 491 1,377 -64.3% Corporate Overhead 2,506 3,493 -28.3% ------------------- ------------------- -------------------- TOTAL DEPRECIATION AND AMORTIZATION 4,195 6,135 -31.6% =================== =================== ==================== OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION Publishing 14,388 31,821 -54.8% Television 1,008 2,162 -53.4% Merchandising 15,179 20,107 -24.5% Internet/ Direct Commerce (12,313) (13,442) 8.4% ------------------- ------------------- -------------------- Operating Income before Depreciation and Amortization before Corporate Overhead 18,262 40,648 -55.1% ------------------- ------------------- -------------------- Corporate Overhead (20,104) (15,603) -28.8% ------------------- ------------------- -------------------- TOTAL OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION (1,842) 25,045 nm =================== =================== ====================
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