-----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, AksB7W0Mo5G/tMyhy+8IfVWTrr70Aive1PwvfzIP9JipSiQtnWW0/t2EG82raSud BhSUSXaMvvv613MOR0E7gA== 0000895345-03-000720.txt : 20031030 0000895345-03-000720.hdr.sgml : 20031030 20031030102910 ACCESSION NUMBER: 0000895345-03-000720 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031003 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031030 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: 03965441 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_stewart.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: OCTOBER 30, 2003 DATE OF EARLIEST EVENT REPORTED: OCTOBER 30, 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 October 30, 2003. Item 12. Results of Operations and Financial Condition. --------------------------------------------- On October 30, 2003, the Registrant issued a press release relating to its financial results for the third 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: October 30, 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 October 30, 2003. EX-99 3 exh99_1.txt EXHIBIT 99.1 FOR IMMEDIATE RELEASE MARTHA STEWART LIVING OMNIMEDIA, INC. ------------------------------------- ANNOUNCES THIRD QUARTER 2003 RESULTS ------------------------------------ NEW YORK, NEW YORK, OCTOBER 30, 2003 --- Martha Stewart Living Omnimedia, Inc. (NYSE: MSO) today announced its results for the third quarter and nine-month periods ended September 30, 2003. Revenues for the third quarter of 2003 were $51.2 million, compared to $70.9 million in the prior year's quarter. Operating income (loss) for the third quarter was ($6.2) million, compared to $4.5 million for the third quarter of 2002, while operating income (loss) before depreciation and amortization ("OIDA") for the third quarter of 2003 was ($4.3) million, compared to $7.3 million in the same period last year. Earnings (loss) per share from continuing operations were ($0.08) for the third quarter of 2003, compared to $0.06 in the 2002 quarter. Sharon L. Patrick, President and Chief Executive Officer, said, "Despite the challenges of the last five quarters, MSO is moving forward, managing with a commitment to the long-term prospects of the Company, preserving the excellence of our core media products and brand labels, safeguarding our quality standards, and continuing to invest in talented people and in our opportunities to grow the business. We are fortunate that our cash and short-term securities position, which grew this quarter to $175 million, allows these investments. As a result, consumer demand for our products indicates that we are retaining our large core of loyal readers, viewers, and shoppers. "The third quarter produced a slate of successful new brand label programs and product launches for MSO across business segments - Everyday Food magazine, Petkeeping with Marc Morrone syndicated television show, Martha Stewart Everyday exclusively at Sears Canada, and the introduction of the Martha Stewart Signature Turkey Hill Furniture collection. Consumer and market acceptance was strong across the board with all programs on track, and Everyday Food exceeding its plan. We have also improved the performance of our Internet/Direct Commerce segment, which is now operating on a "right-sized," more efficient strategy, resulting in substantially lower costs and an improved product offering. Additionally, we continue to take steps to ensure that our employees are motivated and focused on producing outstanding products that will lead to long-term growth in shareholder value. We are proceeding through this period with an appropriate mix of confidence and prudence, buoyed by the continued support from millions of our valued customers." THIRD QUARTER 2003 RESULTS BY SEGMENT - ------------------------------------- PUBLISHING - ---------- Revenues in the quarter were $29.1 million, compared to $46.5 million in the year-ago period. OIDA and operating income were $1.4 million for the quarter, compared to $15.3 million in the year-ago period. The results reflect lower advertising and circulation revenue from Martha Stewart Living magazine in the quarter, investment spending in Everyday Food, and a change in the timing of publication of Martha Stewart Weddings from the third quarter to the second quarter. In addition to the publication of two issues of Everyday Food in the 2003 quarter, the Company also published one Special Interest Publication, compared to two Special Interest Publications in the third quarter of 2002. The prior year quarter included the publication of the Summer issue of Martha Stewart Weddings, while this year's Summer issue was published in the second quarter. TELEVISION - ---------- Revenues in the third quarter of 2003 were $6.6 million, compared to $6.4 million in the prior year's quarter. OIDA was $0.2 million for this year's third quarter, compared to $1.5 million in the prior year's third quarter. Operating income for the third quarter of 2003 was breakeven, compared to $1.1 million in the third quarter of 2002. The decline in profitability was due primarily to higher production costs associated with the Company's nationally syndicated daily show, in addition to lower production costs recognized in the prior year's quarter resulting from the renewal of the Company's licensing agreement with the Food Network. MERCHANDISING - ------------- Revenues in the third quarter of 2003 were $8.9 million, compared to $10.1 million in the prior year quarter. Revenues in the 2003 quarter reflect the combined effect of strong sales of our Martha Stewart Everyday products sold at Kmart with a higher royalty rate on those products, as well as sales of the Martha Stewart Signature line of furniture, offset by the impact on product sales of Kmart store closures. 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 $4.7 million, compared to $6.2 million in the prior year's quarter. Third quarter 2003 operating income was $4.6 million, compared to $6.0 million in the third quarter of 2002. The declines in operating income and OIDA resulted principally from lower royalty revenue. INTERNET/DIRECT COMMERCE - ------------------------ Revenues were $6.6 million, compared to $8.0 million in the same period a year ago. The lower revenue in the quarter was due equally to lower advertising revenues and lower product sales. The lower product sales were primarily a result of planned lower circulation in the current year's quarter. OIDA was $(1.7) million in the 2003 quarter, compared to $(5.9) million in the year-ago period. The reduced loss is the result of the elimination of unprofitable catalog circulation, an improvement in product gross margins, favorable results of inventory disposition programs, as well as the benefits from cost savings initiatives begun in the earlier part of this year. Operating loss was $(2.0) million for the third quarter of 2003, compared to $(6.7) million in the third quarter of 2002. Depreciation and amortization in the third quarter of 2003 was $0.2 million, compared to $0.7 million in the third 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 $8.9 million for the third quarter of 2003, compared to $9.8 million in the third quarter of 2002. Corporate overhead, including depreciation and amortization, was $10.1 million, compared to $11.3 million in the prior year's quarter. The improvement in corporate expenses is primarily the result of lower legal fees and general cost savings, offset by higher insurance costs. DEPRECIATION AND AMORTIZATION - ----------------------------- Depreciation and amortization of $1.9 million in the third quarter of 2003 compares to $2.8 million for the third 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. NINE MONTH 2003 OPERATING RESULTS - --------------------------------- Revenues for the nine months ended September 30, 2003, were $175.0 million, compared to $217.5 million for the nine months ended September 30, 2002. Operating income (loss) was $(12.2) million for the nine months ended September 30, 2003, compared to $23.4 million for the nine months ended September 30, 2002, while OIDA for the nine months ended September 30, 2003, was $(6.1) million, compared to $32.4 million in the same period one year ago. For the nine month period ended September 30, 2003, net loss from continuing operations of $(6.8) million, or $(0.14) per share, compares to net income from continuing operations of $14.7 million, or $0.30 per share, in the nine month period ending September 30, 2002. The results for the nine months ended September 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, Chief Financial Officer, commented, "Our results in the quarter were better than expected in each business segment, primarily as a result of steps we took to reduce the losses in our Internet/Direct Commerce segment, our decision to adjust the rate base of Martha Stewart Living magazine, and good cost control throughout our businesses. Looking forward, we will continue to invest in products and people, while focusing on building long-term profitability. Our current expectations for the fourth quarter are for earnings per share of approximately $0.05 to $0.07." 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 11:30 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; 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 September 30, (unaudited, in thousands, except per share amounts)
2003 2002 % change ------------ ------------ ------------ REVENUES Publishing $ 29,147 $ 46,515 -37.3% Television 6,579 6,362 3.4% Merchandising 8,852 10,060 -12.0% Internet/Direct Commerce 6,602 7,994 -17.4% ------------ ------------ ------------ Total revenues 51,180 70,931 -27.8% ------------ ------------ ------------ OPERATING COSTS AND EXPENSES Production, distribution and editorial 31,212 38,853 -19.7% Selling and promotion 12,047 11,073 8.8% General and administrative 12,216 13,689 -10.8% Depreciation and amortization 1,885 2,841 -33.7% ------------ ------------ ------------ Total operating costs and expenses 57,360 66,456 -13.7% ------------ ------------ ------------ OPERATING INCOME (LOSS) (6,180) 4,475 nm Interest income, net 293 545 -46.2% ------------ ------------ ------------ INCOME (LOSS) BEFORE INCOME TAXES (5,887) 5,020 nm Income tax benefit (provision) 2,169 (2,058) nm ------------ ------------ ------------ INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE LOSS FROM DISCONTINUED OPERATIONS (3,718) 2,962 nm ------------ ------------ ------------ Loss from discontinued operations, net of tax benefit (122) (197) 38.1% ------------ ------------ ------------ NET INCOME (LOSS) $ (3,840) $ 2,765 nm ============ ============ ============ EARNINGS (LOSS) PER SHARE - BASIC AND DILUTED Income (loss) from continuing operations $ (0.08) $ 0.06 Loss from discontinued operations (0.00) (0.00) ------------ ------------ Net Income (loss) $ (0.08) $ 0.06 ============ ============ WEIGHTED AVERAGE SHARES OUTSTANDING- Basic 49,537 49,209 Diluted 49,537 49,316
Martha Stewart Living Omnimedia, Inc. Segment Information Three Months Ended September 30, (unaudited, in thousands)
2003 2002 % change ------------ ------------- ------------- REVENUES Publishing $ 29,147 $ 46,515 -37.3% Television 6,579 6,362 3.4% Merchandising 8,852 10,060 -12.0% Internet/Direct Commerce 6,602 7,994 -17.4% ------------ ------------- ------------- Total revenues 51,180 70,931 -27.8% ------------ ------------- ------------- OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION Publishing 1,436 15,335 -90.6% Television 202 1,534 -86.8% Merchandising 4,729 6,195 -23.7% Internet/ Direct Commerce (1,735) (5,919) 70.7% ------------ ------------- ------------- Operating Income before Depreciation and Amortization before Corporate Overhead 4,632 17,145 -73.0% Corporate Overhead (8,927) (9,829) 9.2% ------------ ------------- ------------- Operating Income (Loss) before Depreciation and Amortization (4,295) 7,316 nm Depreciation and amortization (1,885) (2,841) 33.7% ------------ ------------- ------------- OPERATING INCOME (LOSS) (6,180) 4,475 nm Interest income, net 293 545 -46.2% ------------ ------------- ------------- INCOME (LOSS) BEFORE INCOME TAXES (5,887) 5,020 nm Income tax benefit (provision) 2,169 (2,058) nm ------------ ------------- ------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE LOSS FROM DISCONTINUED OPERATIONS (3,718) 2,962 nm ------------ ------------- ------------- Loss from discontinued operations, net of tax benefit (122) (197) 38.1% ------------ ------------- ------------- NET INCOME (LOSS) $ (3,840) $ 2,765 nm ============ ============= =============
Martha Stewart Living Omnimedia, Inc. Consolidated Income Statement Nine Months Ended September 30, (unaudited, in thousands, except per share amounts)
2003 2002 % change ------------ ------------ ------------ REVENUES Publishing $ 102,825 $ 136,932 -24.9% Television 19,782 20,323 -2.7% Merchandising 30,943 37,110 -16.6% Internet/Direct Commerce 21,436 23,127 -7.3% ------------ ------------ ------------ Total revenues 174,986 217,492 -19.5% ------------ ------------ ------------ OPERATING COSTS AND EXPENSES Production, distribution and editorial 101,255 115,005 -12.0% Selling and promotion 39,647 33,411 18.7% General and administrative 40,218 36,715 9.5% Depreciation and amortization 6,080 8,976 -32.3% ------------ ------------ ------------ Total operating costs and expenses 187,200 194,107 -3.6% ------------ ------------ ------------ OPERATING INCOME (LOSS) (12,214) 23,385 nm Interest income, net 1,090 1,603 -32.0% ------------ ------------ ------------ INCOME (LOSS) BEFORE INCOME TAXES (11,124) 24,988 nm Income tax benefit (provision) 4,353 (10,245) nm ------------ ------------ ------------ INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE LOSS FROM DISCONTINUED OPERATIONS AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE (6,771) 14,743 nm ------------ ------------ ------------ Loss from discontinued operations, net of tax benefit (644) (2,336) 72.4% ------------ ------------ ------------ INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE (7,415) 12,407 nm Cumulative effect of accounting change, net of tax benefit - (3,137) nm ------------ ------------ ------------ NET INCOME (LOSS) $ (7,415) $ 9,270 nm ============ ============ ============ EARNINGS (LOSS) PER SHARE - BASIC AND DILUTED Income (loss) from continuing operations $ (0.14) $ 0.30 Loss from discontinued operations (0.01) (0.05) Cumulative effect of accounting change - (0.06) ------------ ------------ Net Income (Loss) $ (0.15) $ 0.19 ============ ============ WEIGHTED AVERAGE SHARES OUTSTANDING- Basic 49,553 49,050 Diluted 49,553 49,205
Martha Stewart Living Omnimedia, Inc. Segment Information Nine Months Ended September 30, (unaudited, in thousands)
2003 2002 % change ------------ ------------- ------------- REVENUES Publishing $ 102,825 $ 136,932 -24.9% Television 19,782 20,323 -2.7% Merchandising 30,943 37,110 -16.6% Internet/Direct Commerce 21,436 23,127 -7.3% ------------ ------------- ------------- Total revenues 174,986 217,492 -19.5% ------------ ------------- ------------- OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION Publishing 15,825 47,157 -66.4% Television 1,210 3,696 -67.3% Merchandising 19,909 26,301 -24.3% Internet/ Direct Commerce (14,048) (19,357) 27.4% ------------ ------------- ------------- Operating Income before Depreciation and 22,896 57,797 -60.4% Amortization before Corporate Overhead Corporate Overhead (29,030) (25,436) -14.1% ------------ ------------- ------------- Operating Income (Loss) before Depreciation and Amortization (6,134) 32,361 nm Depreciation and amortization (6,080) (8,976) 32.3% ------------ ------------- ------------- OPERATING INCOME (LOSS) (12,214) 23,385 nm Interest income, net 1,090 1,603 -32.0% ------------ ------------- ------------- INCOME (LOSS) BEFORE INCOME TAXES (11,124) 24,988 nm Income tax benefit (provision) 4,353 (10,245) nm ------------ ------------- ------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE LOSS FROM DISCONTINUED OPERATIONS AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE (6,771) 14,743 nm ------------ ------------- ------------- Loss from discontinued operations, net of tax benefit (644) (2,336) 72.4% ------------ ------------- ------------- INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE (7,415) 12,407 nm Cumulative effect of accounting change, net of tax benefit - (3,137) nm ------------ ------------- ------------- NET INCOME (LOSS) $ (7,415) $ 9,270 nm ============ ============= =============
Martha Stewart Living Omnimedia, Inc. Consolidated Balance Sheets (in thousands, except per share amounts)
September 30, December 31, 2003 2002 ------------- --------------- ASSETS (unaudited) CURRENT ASSETS Cash and cash equivalents $ 141,666 $ 131,664 Short-term investments 33,730 47,286 Accounts receivable, net 25,958 37,796 Inventories, net 9,666 8,654 Deferred television production costs 4,060 4,179 Income taxes receivable 5,334 - Deferred income taxes 7,028 7,028 Other current assets 5,874 4,756 ------------- --------------- TOTAL CURRENT ASSETS 233,316 241,363 ------------- --------------- PROPERTY, PLANT, AND EQUIPMENT, net 26,217 31,288 ------------- --------------- INTANGIBLE ASSETS, net 44,257 44,257 ------------- --------------- DEFERRED INCOME TAXES 2,827 2,827 ------------- --------------- OTHER NONCURRENT ASSETS 4,575 4,807 ------------- --------------- TOTAL ASSETS $ 311,192 $ 324,542 ============= =============== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 38,290 $ 40,517 Accrued payroll and related costs 9,243 9,385 Income taxes payable - 323 Current portion of deferred subscription income 22,744 24,932 ------------- --------------- TOTAL CURRENT LIABILITIES 70,277 75,157 ------------- --------------- DEFERRED SUBSCRIPTION INCOME 6,653 7,715 OTHER NONCURRENT LIABILITIES 4,454 5,035 ------------- --------------- TOTAL LIABILITIES 81,384 87,907 ------------- --------------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY Class A common stock, $0.01 par value, 350,000 shares authorized: 19,517 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 181,705 181,629 Unamortized restricted stock (480) (993) Retained earnings 48,862 56,277 ------------- --------------- 230,583 237,410 Less class A treasury stock - 59 shares at cost (775) (775) ------------- --------------- TOTAL SHAREHOLDERS' EQUITY 229,808 236,635 ------------- --------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 311,192 $ 324,542 ============ ==============
Martha Stewart Living Omnimedia, Inc. Supplemental Disclosures Regarding Non-GAAP Financial Information Three Months Ended September 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 $ 29,147 $ 46,515 -37.3% Television 6,579 6,362 3.4% Merchandising 8,852 10,060 -12.0% Internet/Direct Commerce 6,602 7,994 -17.4% --------------- --------------- ---------------- TOTAL REVENUES 51,180 70,931 -27.8% =============== =============== ================ OPERATING INCOME (LOSS) Publishing 1,395 15,295 -90.9% Television (34) 1,117 nm Merchandising 4,561 6,037 -24.4% Internet/Direct Commerce (1,970) (6,660) 70.4% --------------- --------------- ---------------- Operating Income before Corporate Overhead 3,952 15,789 -75.0% Corporate Overhead (10,132) (11,314) 10.4% --------------- --------------- ---------------- TOTAL OPERATING INCOME (6,180) 4,475 nm =============== =============== ================ DEPRECIATION AND AMORTIZATION Publishing 41 40 2.5% Television 236 417 -43.4% Merchandising 168 158 6.3% Internet/Direct Commerce 235 741 -68.3% Corporate Overhead 1,205 1,485 -18.9% --------------- --------------- ---------------- TOTAL DEPRECIATION AND AMORTIZATION 1,885 2,841 -33.7% =============== =============== ================ OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION Publishing 1,436 15,335 -90.6% Television 202 1,534 -86.8% Merchandising 4,729 6,195 -23.7% Internet/Direct Commerce (1,735) (5,919) 70.7% --------------- --------------- ---------------- Operating Income before Depreciation and Amortization before Corporate Overhead 4,632 17,145 -73.0% --------------- --------------- ---------------- Corporate Overhead (8,927) (9,829) 9.2% --------------- --------------- ---------------- TOTAL OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION $ (4,295) $ 7,316 nm =============== =============== ================
Martha Stewart Living Omnimedia, Inc. Supplemental Disclosures Regarding Non-GAAP Financial Information Nine Months Ended September 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 $ 102,825 $ 136,932 -24.9% Television 19,782 20,323 -2.7% Merchandising 30,943 37,110 -16.6% Internet/Direct Commerce 21,436 23,127 -7.3% --------------- --------------- ---------------- TOTAL REVENUES 174,986 217,492 -19.5% =============== =============== ================ OPERATING INCOME (LOSS) Publishing 15,702 47,038 -66.6% Television 195 2,409 -91.9% Merchandising 19,406 25,826 -24.9% Internet/Direct Commerce (14,775) (21,478) 31.2% --------------- --------------- ---------------- Operating Income before Corporate 20,528 53,795 -61.8% Overhead Corporate Overhead (32,742) (30,410) -7.7% --------------- --------------- ---------------- TOTAL OPERATING INCOME (LOSS) (12,214) 23,385 nm =============== =============== ================ DEPRECIATION AND AMORTIZATION Publishing 123 119 3.4% Television 1,015 1,287 -21.1% Merchandising 503 475 5.9% Internet/Direct Commerce 727 2,121 -65.7% Corporate Overhead 3,712 4,974 -25.4% --------------- --------------- ---------------- TOTAL DEPRECIATION AND AMORTIZATION 6,080 8,976 -32.3% =============== =============== ================ OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION Publishing 15,825 47,157 -66.4% Television 1,210 3,696 -67.3% Merchandising 19,909 26,301 -24.3% Internet/Direct Commerce (14,048) (19,357) 27.4 --------------- --------------- ---------------- Operating Income before Depreciation and Amortization before Corporate Overhead 22,896 57,797 -60.4% --------------- --------------- ---------------- Corporate Overhead (29,030) (25,436) -14.1% --------------- --------------- ---------------- TOTAL OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION $ (6,134) $ 32,361 nm =============== =============== ================
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