Meredith to Take $5.5 Million Charge
DES MOINES, IOWA: Meredith Corp. intends to take a $5.5 million charge in its fiscal second
quarter of 2010, the company said today. The charge will amount to around $3.5
million, or 7 cents a share, after taxes. It will cover severance, creative and
distribution costs related to a repositioning of its Special Interest Media
business. The division includes nearly 150 magazines focused on health, home
decorating, do-it-yourself projects and the like. Titles include “Diabetic
Living,” “Nature’s Garden,” “Decorating,” and others.
“The recessionary economy has impacted the consumer's ability to execute these
types of projects and led to a decrease in advertising spending,” said Meredith
president and CEO, Stephen M. Lacy. “As a result, we are repositioning our SIM
portfolio to focus on certain home and food verticals, in particular those
aligned with the ‘Better Homes and Gardens’ brand. We continue to believe in
the long-term viability of this business and believe this strategy will deliver
substantially higher profitability going forward.”
Meredith will hone the number of SIM publications down to 90 as of next year,
it said. About 45 jobs will be cut as a result.
Print provides the largest chunk of Meredith’s revenues. It’s 12 TV stations
brought in $61 million during its first fiscal quarter of 2010, or around 18
percent of total revenues. Meredith said it “will provide an update on the
current advertising environment and its earnings outlook when it releases
fiscal 2010 second-quarter earnings on Jan. 21, 2010.”
More on Meredith:
October 29, 2009: “Meredith Stations Down on Political and Auto”
Fiscal 2010 first-quarter revenues for Meredith’s 12 TV
stations came in at $61 million, down from $70 million last year.
July 29, 2009: “Meredith Fiscal 4Q TV
Revenues Drop 21 Percent”
Shares of Meredith Corp. slipped this morning on the company’s reported loss of
$3.64 a share for its fiscal fourth quarter and $2.28 for its fiscal year
ending June 30.
May 15, 2009: “Meredith Declares Dividend”
Meredith Corp. declared a dividend Wednesday of 22.5 cents a share.
January 21, 2009: “Meredith 2Q Station Revenue
Down 20 Percent”
The company’s 12 TV stations generated $84 million in the quarter compared
to $88 million a year ago.
November 24, 2008: “Meredith TV Station
The 12 Meredith Corp. stations generated $70 million in revenue for the
company’s first quarter of fiscal 2009 compared to $75 million a year ago.