Scripps Networks Tops Q3 Earnings

Zacks

Scripps Networks Interactive Inc. (SNI) reported mixed financial results for the third quarter of 2013. Quarterly GAAP net income stood at $129 million or 87 cents per share compared with $118.4 million or 78 cents per share in the prior-year quarter. Third-quarter earnings per share of 87 cents outpaced the Zacks Consensus Estimate of 84 cents. Quarterly total revenue of $616.9 million increased 9% on an annualized basis, but lagged the Zacks Consensus Estimate of $619 million.

The third-quarter 2013 gross profit came in at $438.7 million against $409.9 million in the prior-year quarter. Quarterly gross margin was 71.1% compared with 72.4% in the prior-year quarter. Quarterly operating income increased 4.7% year over year to $232.4 million. Operating margin, in the reported quarter, was 37.7% against 39.2% in the prior-year quarter. In the reported quarter, Scripps Networks repurchased 46,000 shares for a total consideration of approximately $3.1 million.

During the third quarter of 2013, Scripps Networks generated $255.3 million of cash from operations compared with $187.3 million in the prior-year quarter. Free cash flow, in the reported quarter, was $224.6 million against $157 million in the prior-year quarter.

At the end of the third quarter of 2013, Scripps Networks had $556.6 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 0.38 compared with 0.43 at the end of 2012.

Lifestyle Media Segment

Quarterly revenues came in at $594.9 million, reflecting annualized growth of 7.8%. Within this segment, Advertisement revenues climbed 7.5% year over year to $402.7 million. Network Affiliate fee revenues were $183.3 million, up 8.9% year over year. Other revenues decreased 0.9% year over year to $8.9 million. Total segment profit was $291.3 million, up 6.7% from the prior-year quarter.

Brand wise, HGTV revenues were approximately $219.1 million, up 12.1% year over year. Food Network revenues were $202.4 million, up 1.8% year over year. Travel Channel revenues were $77.3 million, up 12.2% year over year. DIY Network revenues were $34 million, up 13.8% year over year. Cooking Channel revenues were $26.7 million, up 23.3% year over year. Great American Country revenues were $6.6 million, down 5.5% year over year. SN Digital revenues decreased 6.5% annually to $25.9 million. Other revenues were $3.1 million, up 16.1% year over year.

Corporate Segment

Quarterly total revenue of $23.2 million was up by a whopping 62.5% year over year. However, the loss in the segment was $29.3 million, up 33.4% year over year.

Other Stocks to Consider

Scripps Networks currently has a Zacks Rank #3 (Hold). Other stocks in the Media/Broadcast industry worth considering include Salem Communications Corp. (SALM), LIN TV Corp. (TVL) and Nexstar Broadcasting Group Inc. (NXST). All three stocks currently carry a Zacks Rank #2 (Buy).

Read the Full Research Report on SNI
Read the Full Research Report on TVL
Read the Full Research Report on NXST
Read the Full Research Report on SALM


Zacks Investment Research

Rates

View Comments (0)