Scripps Networks Tops Q2 Earnings

Zacks

Scripps Networks Interactive Inc. (SNI) reported strong financial results for the second quarter of 2013, beating both the top and the bottom line of the Zacks Consensus Estimate.

Quarterly GAAP net income was $159.7 million or $1.08 per share compared with $142.4 million or 93 cents per share in the prior-year quarter. Second-quarter earnings per share of $1.08 outpaced the Zacks Consensus Estimate of $1.06. Quarterly total revenue of $665.1 million increased 10.7% on an annualized basis, and was well ahead of the Zacks Consensus Estimate of $657 million.

The second-quarter 2013 gross profit was $496.5 million compared with $450.1 million in the prior-year quarter. Quarterly gross margin was 74.6% compared with 74.9% in the prior-year quarter. Quarterly operating income increased 11.9% year over year to $289.6 million. Operating margin, in the reported quarter, was 43.5% compared with 43.1% in the prior-year quarter.

During the second quarter of 2013, Scripps Networks generated $160 million of cash from operations compared with $38.1 million in the prior-year quarter. Free cash flow, in the reported quarter, was $104.1 million compared with a negative $58.7 million in the prior-year quarter.

At the end of the second quarter of 2013, Scripps Networks had $347.5 million in cash & marketable securities and $1,384.4 million of outstanding debt on its balance sheet compared with $437.5 million in cash & marketable securities and $1,384.2 million of outstanding debt at the end of 2012. At the end of the reported quarter, the debt-to-capitalization ratio was 0.40 compared with 0.43 at the end of 2012.

Lifestyle Media Segment

Quarterly revenues came in at $647.1 million, showing an annualized growth of 9.5%. Within this segment, Advertisement revenues climbed 9.9% year over year to $456.2 million. Network Affiliate fee revenues were $181.9 million, up 9.5% year over year. Other revenues decreased 8.8% year over year to $9 million. Total segment profit was $347.9 million, up 12.1% year over year.

Brand wise, HGTV revenues were approximately $231.7 million, up 13.1% year over year. Food Network revenues were $224.5 million, up 2.8% year over year. Travel Channel revenues were $83.9 million, up 13.7% year over year. DIY Network revenues were $38.7 million, up 14.6% year over year. Cooking Channel revenues were $28.6 million, up 27.7% year over year. Great American Country revenues were $7 million, up 40.7% year over year. SN Digital revenues increased 0.9% annually to $28.6 million, up 1.1% year over year. Other revenues were $4.2 million, down 6.5% year over year.

Corporate Segment

Quarterly total revenue of $18 million was up by a whopping 80.7% year over year. However, the loss in the segment was $28.2 million, up 9.6% year over year.

Other Stocks to Consider

Scripps Networks currently has a Zacks Rank #3 (Hold). Other stocks in the Media/Broadcast industry worth consideration include Entravision Communications Corp. (EVC), LIN TV Corp. (:TVL) and Cumulus Media Inc. (CMLS). While Cumulus currently has a Zacks Rank #1 (Strong Buy), both Entravision and LIN TV carry a Zacks Rank #2 (Buy).

Read the Full Research Report on SNI

Read the Full Research Report on CMLS

Read the Full Research Report on TVL

Read the Full Research Report on EVC

Zacks Investment Research



More From Zacks.com

Rates

View Comments (0)