-----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, BJabgLda4vkm52FRiq+ZaA27vSadPsfLQx9Ug/mg1srPn6Wy+bdGxiPf218+0I7P ZRjJe7opaBZ1ATSCXewHug== 0000950123-05-008956.txt : 20050727 0000950123-05-008956.hdr.sgml : 20050727 20050727111141 ACCESSION NUMBER: 0000950123-05-008956 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050727 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050727 DATE AS OF CHANGE: 20050727 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: 05976028 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 y11197e8vk.txt FORM 8-K ================================================================================ 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: JULY 27, 2005 DATE OF EARLIEST EVENT REPORTED: JULY 27, 2005 MARTHA STEWART LIVING OMNIMEDIA, INC. (Exact name of registrant as specified in its charter) DELAWARE 001-15395 52-2187059 (State or other jurisdiction of (Commission File Number) (I.R.S. Employer incorporation or organization) Identification Number) 11 WEST 42ND STREET NEW YORK, NY 10036 (Address of principal executive offices) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (212) 827-8000 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR240.13e-4(c)) ================================================================================ Item 2.02. Results of Operations and Financial Condition. On July 27, 2005, the Registrant issued a press release relating to its financial results for the second quarter of 2005. The full text of the press release is attached hereto as Exhibit 99.1 to this report. Item 9.01. Financial Statements and Exhibits. (c) Exhibit Description ------- ----------- 99.1 Martha Stewart Living Omnimedia, Inc. Press Release, dated July 27, 2005. 2 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: July 27, 2005 MARTHA STEWART LIVING OMNIMEDIA, INC. By: /s/ James Follo ------------------------------------ James Follo Executive Vice President, Chief Financial and Administrative Officer 3 INDEX OF EXHIBITS
Exhibit No. Description - ------- ----------- 99.1 Martha Stewart Living Omnimedia, Inc. press release, dated July 27, 2005.
4 EX-99.1 2 y11197exv99w1.txt PRESS RELEASE EXHIBIT 99.1 MARTHA STEWART LIVING OMNIMEDIA, INC. ANNOUNCES SECOND QUARTER 2005 RESULTS NEW YORK, NEW YORK, JULY 27, 2005 -- Martha Stewart Living Omnimedia, Inc. (NYSE: MSO) announced its results today for the second quarter of 2005. Revenues for the second quarter of 2005 were $46.0 million, compared to $44.1 million in the prior year's quarter. Operating income before depreciation and amortization, and non-cash equity compensation ("OIDA") for the second quarter of 2005 was a loss of $(11.2) million, compared to an OIDA loss of $(15.2) million in the same period last year. Operating loss for the second quarter was $(34.2) million, compared to an operating loss of $(17.8) million for the second quarter of 2004. Loss per share from continuing operations was $(0.65) for the second quarter of 2005, compared to a loss per share from continuing operations of $(0.36) in the second quarter of 2004. The current period results include a $16.8 million ($0.33 per share) non-cash charge related to the vesting of certain warrants granted in connection with the production of our new syndicated television show and certain other employee-related charges of $3.2 million ($0.06 per share). Susan Lyne, President and Chief Executive Officer, said: "The momentum we began to build early in 2005 is starting to deliver a quantifiable improvement in performance. We have exceeded our own plan both in terms of results and in the success of our efforts to leverage the consumer connection with Martha and the brand. We expect to achieve breakeven OIDA in the second half of 2005, an improvement of approximately $15 million over the second half of 2004. "In Publishing, our flagship magazine, Martha Stewart Living, continues to achieve solid increases in advertising. At this point in the selling cycle, we are feeling very good about indicators for 2006 advertising page growth. Everyday Food continues to please readers and win new advertisers. Importantly, we are working on numerous multi-platform opportunities that allow us to offer advertisers access to a common, loyal and engaged audience across print, broadcast and Internet. 1 "We are now hard at work readying the first season of our new daily syndicated television show, 'Martha'. All business segments stand to benefit from increased brand visibility as we return to television this fall with both our new daytime show and 'The Apprentice: Martha Stewart'. Our recently announced partnership with Discovery Communications will give us a platform to create new lifestyle programming, while expanding the audience for our current product. "We are actively pursuing opportunities to capitalize on our libraries and expertise by developing products that will enrich the daily lives of women while generating cash flow for the Company. We are all mindful of the standard our customers expect from us and we are focused on execution as we look for new opportunities to inspire them." SECOND QUARTER 2005 RESULTS BY SEGMENT PUBLISHING Revenues in the second quarter of 2005 were $31.7 million, compared to $23.7 million in the second quarter of 2004, up 34%. Adjusting for Body + Soul, which was acquired in August 2004, revenue increased 24%. The revenue growth was driven by higher advertising revenue in both Everyday Food and Martha Stewart Living. Advertising pages in Martha Stewart Living increased 42% in the quarter, while Everyday Food increased advertising pages by 65%. Advertising revenue in both publications increased ahead of page growth. We are currently focused on 2006 advertising revenue growth and we are working on numerous multi-platform opportunities that allow us to offer a common brand with loyal audiences across print, broadcast and Internet. Building on our strong circulation trends, we will be raising the rate base of Martha Stewart Living to 1.9 million copies per issue effective with the January 2006 issue, up from 1.8 million. OIDA was a loss of $(2.6) million, compared to a loss of $(3.7) million in the second quarter of 2004. Operating loss was $(3.3) million for the second quarter of 2005, compared to an operating loss of $(3.9) million in the second quarter of 2004. The improved operating results are principally due to higher advertising revenue in both Martha Stewart Living and Everyday Food. The 2005 quarter includes losses related to Body + Soul magazine of $2.1 million. TELEVISION Revenues in the second quarter of 2005 were $1.8 million, compared to $3.1 million in the second quarter of 2004. The decline in revenue was primarily related to the absence of our daily syndicated show, which stopped airing in syndication in September 2004. During the quarter we have begun pre-production activities for our new nationally syndicated program, entitled 'Martha', which is expected to 2 begin airing on September 12th. The program has been cleared in more than 96% of the country and sold in all top 20 U.S. television markets. OIDA was a loss of $(2.7) million for the second quarter of 2005, compared to a loss of $(3.5) million in the prior year's second quarter. Operating loss for the second quarter of 2005 was $(20.0) million, compared to an operating loss of $(3.5) million in the second quarter of 2004. The second quarter of 2005 results were also impacted by severance costs of approximately $0.7 million, while the prior year quarter was impacted by the write-down of deferred television production costs of $1.5 million, resulting from the early termination of a cable television licensing agreement. The current quarter operating loss includes a non-cash charge of $16.8 million associated with the vesting of certain warrants granted in connection with the production of the syndicated program. MERCHANDISING Revenues in the second quarter of 2005 were $10.2 million, compared to $10.9 million in the second quarter of 2004. The lower revenue was principally due to lower sales of our Martha Stewart Everyday products at Kmart, with relative strength in garden and housewares, offsetting weakness in soft home. The decline in royalty revenue from sales at Kmart in the quarter will not impact full year results from operations, as we are paid based on guaranteed annual amounts. OIDA was $6.3 million in the current period, compared to $5.5 million in the prior year's quarter. Second-quarter 2005 operating income was $6.0 million, compared to $5.3 million in the second quarter of 2004. We recently launched Everyday Rooms, an assortment of affordable, stylish, easy-to-assemble furniture, available exclusively at Kmart stores nationwide. These new products, which include 20 pieces for the bedroom, kitchen, and living room, have been well received by consumers. During the quarter we also previewed the fourth collection of Martha Stewart Signature Furniture - Opal Point. This line of furniture will officially launch at the October furniture market and hit retail floors in early January. The prior year quarter included $1.5 million of non-recurring professional fees. INTERNET/DIRECT COMMERCE Revenues in the second quarter of 2005 were $2.2 million, compared to $6.4 million in the same period a year ago. Revenue in the current quarter principally reflects our online flower business. Advertising revenue also increased in the quarter, although small in absolute terms. Total revenue would have increased 18% in the quarter excluding the results of the catalog operation, which was discontinued earlier this year. OIDA was a loss of $(0.9) million in the second quarter of 2005, compared to a loss of $(2.2) million in the second quarter of 2004. Operating loss was $(1.1) million for the second quarter of 2005, compared to an operating loss of $(2.4) million in the second quarter of 2004. As advertising 3 revenue continues to strengthen, and costs continue to moderate throughout the remainder of the year, we expect to further reduce our losses in this segment. CORPORATE EXPENSES Corporate overhead, before depreciation and amortization and non-cash equity compensation, was $11.3 million in second quarter of both 2005 and 2004. The current quarter includes certain non-recurring employee-related costs of $1.5 million. Corporate expenses, including depreciation and amortization and non-cash equity compensation, was $15.8 million, compared to $13.3 million in the prior year's quarter. Higher levels of non-cash equity compensation in the current year's quarter principally resulted from director compensation and accelerated vesting of equity associated with employee severance. TRENDS AND OUTLOOK James Follo, Chief Financial and Administrative Officer, commented: "We expect to report significant year-over-year improvements in the second half of 2005 operating results, reflecting continued improvements in circulation and advertising revenues, the September launch of new television and radio programs, as well as the benefits associated with our Kmart contract whereby we record the minimum payments due to MSLO in our fourth quarter. Accordingly, we expect to report an OIDA loss in the third quarter of approximately $12-$13 million, followed by fourth quarter OIDA profit of $11-$12 million. We expect to report a third quarter operating loss in the range of $25-$26 million and a fourth quarter operating loss in the range of $1-$2 million. Both quarters will include non-cash charges estimated at approximately $13 million, principally reflecting charges related to the vesting of warrants granted in connection with certain television programs. USE OF NON-GAAP FINANCIAL INFORMATION The Company believes OIDA, a non-GAAP financial measure, 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, 4 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 supplementary in the financial statements included with this release. Martha Stewart Living Omnimedia, Inc. (MSLO) is a leading provider of original "how-to" information, inspiring and engaging consumers with unique lifestyle content and high-quality products. MSLO 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 11:30 a.m. EDT that will be broadcast live over the Internet at www.marthastewart.com/ir. ### We have included in this press release 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: adverse reactions to publicity relating to Martha Stewart by consumers, advertisers and business partners; an adverse resolution to the pending SEC enforcement proceeding 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 in national and/or local economies; shifts in our business strategies; a loss of the services of Ms. Stewart; a loss of the services of other key personnel; 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 5 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 June 30, (in thousands, except per share amounts)
2005 2004 % change -------- -------- -------- REVENUES Publishing $ 31,707 $ 23,748 33.5% Television 1,847 3,056 -39.6% Merchandising 10,162 10,903 -6.8% Internet/Direct Commerce 2,235 6,365 -64.9% -------- -------- -------- 45,951 44,072 4.3% -------- -------- -------- OPERATING COSTS AND EXPENSES Production, distribution and editorial 24,872 30,412 18.2% Selling and promotion 16,148 12,924 -24.9% General and administrative 16,145 15,903 -1.5% Non-cash equity compensation 21,276 1,025 nm Depreciation and amortization 1,720 1,635 -5.2% -------- -------- -------- Total operating costs and expenses 80,161 61,899 -29.6% -------- -------- -------- (34,210) (17,827) -91.9% OPERATING LOSS Interest income, net 890 319 179.0% -------- -------- -------- LOSS BEFORE INCOME TAXES (33,320) (17,508) -90.3% Income tax provision (59) (189) 68.8% -------- -------- -------- LOSS FROM CONTINUING OPERATIONS BEFORE LOSS FROM DISCONTINUED OPERATIONS (33,379) (17,697) -88.6% -------- -------- -------- Loss from discontinued operations (120) (127) 5.5% -------- -------- -------- NET LOSS $(33,499) $(17,824) -87.9% ======== ======== ======== LOSS PER SHARE - BASIC AND DILUTED Loss from continuing operations $ (0.65) $ (0.36) Loss from discontinued operations (0.00) (0.00) -------- -------- Net loss $ (0.65) $ (0.36) ======== ======== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic and Diluted 51,166 49,572
7 Martha Stewart Living Omnimedia, Inc. Segment Information Three Months Ended June 30, (in thousands)
2005 2004 % change -------- -------- -------- REVENUES Publishing $ 31,707 $ 23,748 33.5% Television 1,847 3,056 -39.6% Merchandising 10,162 10,903 -6.8% Internet/Direct Commerce 2,235 6,365 -64.9% -------- -------- -------- Total revenues 45,951 44,072 4.3% -------- -------- -------- OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION AND NON-CASH EQUITY COMPENSATION Publishing (2,595) (3,743) 30.7% Television (2,663) (3,472) 23.3% Merchandising 6,274 5,517 13.7% Internet/Direct Commerce (897) (2,177) 58.8% -------- -------- -------- Operating Income (Loss) before Depreciation and Amortization and Corporate Expense and Non-Cash Equity Compensation 119 (3,875) nm Corporate Expense (11,333) (11,292) -0.4% -------- -------- -------- Operating Loss before Depreciation and Amortization and Corporate Expense and Non-Cash Equity Compensation (11,214) (15,167) 26.1% Non-cash equity compensation (21,276) (1,025) nm Depreciation and amortization (1,720) (1,635) -5.2% -------- -------- -------- OPERATING LOSS (34,210) (17,827) -91.9% Interest income, net 890 319 179.0% -------- -------- -------- LOSS BEFORE INCOME TAXES (33,320) (17,508) -90.3% Income tax provision (59) (189) 68.8% -------- -------- -------- LOSS FROM CONTINUING OPERATIONS BEFORE LOSS FROM DISCONTINUED OPERATIONS (33,379) (17,697) -88.6% -------- -------- -------- Loss from discontinued operations (120) (127) 5.5% -------- -------- -------- NET LOSS $(33,499) $(17,824) -87.9% ======== ======== ========
8 Martha Stewart Living Omnimedia, Inc. Consolidated Statements of Operations Six Months Ended June 30, (in thousands, except per share amounts)
2005 2004 % change --------- --------- --------- REVENUES Publishing $ 57,062 $ 47,670 19.7% Television 2,644 7,233 -63.4% Merchandising 19,554 21,692 -9.9% Internet/Direct Commerce 5,357 11,978 -55.3% --------- --------- --------- 84,617 88,573 -4.5% --------- --------- --------- OPERATING COSTS AND EXPENSES Production, distribution and editorial 48,368 59,352 18.5% Selling and promotion 32,744 26,372 -24.2% General and administrative 29,595 31,426 5.7% Non-cash equity compensation 24,495 2,480 nm Depreciation and amortization 3,407 3,309 -3.0% --------- --------- --------- Total operating costs and expenses 138,609 122,939 -12.7% --------- --------- --------- OPERATING LOSS (53,992) (34,366) -57.1% Interest income, net 1,659 681 143.6% --------- --------- --------- LOSS BEFORE INCOME TAXES (52,333) (33,685) -55.4% Income tax provision (82) (3,332) nm --------- --------- --------- (52,415) (37,017) -41.6% LOSS FROM CONTINUING OPERATIONS BEFORE LOSS FROM DISCONTINUED OPERATIONS --------- --------- --------- Loss from discontinued operations (252) (288) 12.5% --------- --------- --------- NET LOSS $ (52,667) $ (37,305) -41.2% ========= ========= ========= LOSS PER SHARE - BASIC AND DILUTED Loss from continuing operations $ (1.03) $ (0.75) Loss from discontinued operations (0.00) (0.01) --------- --------- Net loss $ (1.03) $ (0.75) ========= ========= WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic and Diluted 51,015 49,518
9 Martha Stewart Living Omnimedia, Inc. Segment Information Six Months Ended June 30, (in thousands except per share amounts)
2005 2004 % change -------- -------- -------- REVENUES Publishing $ 57,062 $ 47,670 19.7% Television 2,644 7,233 -63.4% Merchandising 19,554 21,692 -9.9% Internet/Direct Commerce 5,357 11,978 -55.3% -------- -------- -------- Total revenues 84,617 88,573 -4.5% -------- -------- -------- OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION AND NON-CASH EQUITY COMPENSATION Publishing (10,287) (7,478) -37.6% Television (4,825) (5,362) 97% Merchandising 12,375 12,209 1.4% Internet/Direct Commerce (2,145) (4,613) 53.5% -------- -------- -------- Operating Loss before Depreciation and Amortization (4,882) (5,244) 6.5% and Corporate Expense and Non-Cash Equity Compensation Corporate Expense (21,208) (23,333) 6.2% -------- -------- -------- Operating Loss before Depreciation and Amortization and Non-Cash (26,090) (28,577) 8.7% Equity Compensation Non-cash equity compensation (24,495) (2,480) nm Depreciation and amortization (3,407) (3,309) -3.0% -------- -------- -------- OPERATING LOSS (53,992) (34,366) -57.1% Interest income, net 1,659 681 143.6% -------- -------- -------- LOSS BEFORE INCOME TAXES (52,333) (33,685) -55.4% Income tax provision (82) (3,332) nm -------- -------- -------- LOSS FROM CONTINUING OPERATIONS BEFORE LOSS FROM DISCONTINUED OPERATIONS (52,415) (37,017) -41.6% -------- -------- -------- Loss from discontinued operations (252) (288) -------- -------- -------- NET LOSS $(52,667) $(37,305) -41.2% ======== ======== ========
10 Martha Stewart Living Omnimedia, Inc. Consolidated Balance Sheets (in thousands, except per share amounts)
June 30, December 31, 2005 2004 --------- ------------ ASSETS CURRENT ASSETS Cash and cash equivalents $ 28,203 $ 104,647 Short-term investments 107,352 35,309 Accounts receivable, net 21,520 31,332 Inventories, net 3,787 5,229 Deferred television production costs 1,997 -- Income taxes receivable 5,107 6,321 Other current assets 5,432 3,573 --------- ------------ TOTAL CURRENT ASSETS 173,398 186,411 PROPERTY, PLANT, AND EQUIPMENT, net 16,091 17,175 INTANGIBLE ASSETS, net 53,973 54,264 OTHER NONCURRENT ASSETS 5,755 6,828 --------- ------------ TOTAL ASSETS $ 249,217 $ 264,678 ========= ============ LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 23,596 $ 25,604 Accrued payroll and related costs 10,658 9,407 Income taxes payable 394 412 Current portion of deferred subscription income 32,005 27,160 --------- ------------ TOTAL CURRENT LIABILITIES 66,653 62,583 --------- ------------ DEFERRED SUBSCRIPTION INCOME 6,697 7,668 DEFERRED ROYALTY REVENUE 5,423 3,438 OTHER NONCURRENT LIABILITIES 3,135 3,361 --------- ------------ TOTAL LIABILITIES 81,908 77,050 --------- ------------ COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY Class A common stock, $0.01 par value, 350,000 shares authorized: 22,731 and 21,660 shares issued in 2005 and 2004, respectively 227 217 Class B common stock, $0.01 par value, 150,000 shares authorized: 28,701 and 29,123 shares outstanding in 2005 and 2004, respectively 287 291 Capital in excess of par value 237,771 196,781 Unamortized restricted stock (11,441) (2,793) Accumulated deficit (58,760) (6,093) --------- ------------ 168,084 188,403 Less class A treasury stock - 59 shares at cost (775) (775) --------- ------------ TOTAL SHAREHOLDERS' EQUITY 167,309 187,628 --------- ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 249,217 $ 264,678 ========= ============
11 Martha Stewart Living Omnimedia, Inc. Supplemental Disclosures Regarding Non-GAAP Financial Information Three Months Ended June 30, (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 equity compensation, (OIDA), a non-GAAP measure. In order to reconcile OIDA to operating income, depreciation and amortization and non-cash equity compensation are added back to operating income.
2005 2004 -------- -------- OPERATING INCOME (LOSS) Publishing $ (3,264) $ (3,852) Television (20,027) (3,531) Merchandising 5,988 5,314 Internet/ Direct Commerce (1,146) (2,426) -------- -------- Operating Loss before Corporate Expenses (18,449) (4,495) Corporate Expenses (15,761) (13,332) -------- -------- TOTAL OPERATING LOSS (34,210) (17,827) -------- -------- DEPRECIATION AND AMORTIZATION Publishing 248 58 Television 101 59 Merchandising 209 191 Internet/ Direct Commerce 239 249 Corporate Expenses 923 1,078 -------- -------- TOTAL DEPRECIATION AND AMORTIZATION 1,720 1,635 -------- -------- NON-CASH EQUITY COMPENSATION Publishing 421 51 Television 17,263 -- Merchandising 77 12 Internet/ Direct Commerce 10 -- Corporate Expenses 3,505 962 -------- -------- TOTAL NON-CASH EQUITY COMPENSATION 21,276 1,025 -------- -------- OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION AND NON-CASH EQUITY COMPENSATION Publishing (2,595) (3,743) Television (2,663) (3,472) Merchandising 6,274 5,517 Internet/ Direct Commerce (897) (2,177) -------- -------- Operating Income (Loss) before Depreciation and Amortization, Non-Cash Equity Compensation, and Corporate Expenses 119 (3,875) Corporate Expenses (11,333) (11,292) -------- -------- OPERATING LOSS BEFORE DEPRECIATION AND AMORTIZATION AND NON-CASH EQUITY COMPENSATION $(11,214) $(15,167) ======== ========
12 Martha Stewart Living Omnimedia, Inc. Supplemental Disclosures Regarding Non-GAAP Financial Information Six Months Ended June 30, (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 equity compensation, (OIDA), a non-GAAP measure. In order to reconcile OIDA to operating income, depreciation and amortization and non-cash equity compensation are added back to operating income.
2005 2004 -------- -------- OPERATING INCOME (LOSS) Publishing $(11,982) $ (7,700) Television (22,299) (5,478) Merchandising 11,803 11,803 Internet/ Direct Commerce (2,655) (5,105) -------- -------- Operating Loss before Corporate Expenses (25,133) (6,480) Corporate Expenses (28,859) (27,886) -------- -------- TOTAL OPERATING LOSS (53,992) (34,366) -------- -------- DEPRECIATION AND AMORTIZATION Publishing 495 120 Television 147 116 Merchandising 418 381 Internet/ Direct Commerce 491 492 Corporate Expenses 1,856 2,200 -------- -------- TOTAL DEPRECIATION AND AMORTIZATION 3,407 3,309 -------- -------- NON-CASH EQUITY COMPENSATION Publishing 1,200 102 Television 17,327 -- Merchandising 154 25 Internet/ Direct Commerce 19 -- Corporate Expenses 5,795 2,353 -------- -------- TOTAL NON-CASH EQUITY COMPENSATION 24,495 2,480 -------- -------- OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION AND NON-CASH EQUITY COMPENSATION Publishing (10,287) (7,478) Television (4,825) (5,362) Merchandising 12,375 12,209 Internet/ Direct Commerce (2,145) (4,613) -------- -------- Operating Loss before Depreciation and Amortization, Non-Cash Equity Compensation, and Corporate Expenses (4,882) (5,244) Corporate Expenses (21,208) (23,333) -------- -------- OPERATING LOSS BEFORE DEPRECIATION AND AMORTIZATION AND NON-CASH EQUITY COMPENSATION $(26,090) $(28,577) ======== ========
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