Martha Stewart Living Omnimedia posts narrow loss, publishing revenue falls
NEW YORK, July 30, 2013 /PRNewswire/ — Martha Stewart Living Omnimedia, Inc. (NYSE: MSO) today announced its results for the second quarter ended June 30, 2013. The Company reported revenue for the second quarter of $42.2 million.
Dan Taitz, Interim Principal Executive Officer, said, “MSLO generated a narrower net loss in the quarter due primarily to growth in Merchandising and the positive impact on our bottom line of strategic actions taken over the last 18 months. Our publishing business produced higher print advertising revenue compared with last year’s second quarter, after excluding last year’s contribution from titles that we no longer publish, and digital advertising revenue grew strongly. While much remains to be done to drive sustainable performance improvement, we are encouraged with the results this quarter and the steps we have taken across our media and merchandising operations to position the Company to drive greater engagement with consumers.”
Second Quarter 2013 Summary
Total revenues were $42.2 million in the second quarter of 2013, compared to $47.9 million in the second quarter of 2012 as growth in Merchandising revenues was offset by lower revenues from Publishing and Broadcasting, which reflect the Company’s strategic decisions to end the publication of two print titles and exit live television programming production.
Total operating loss for the second quarter of 2013 was $(0.6) million compared with a loss of $(2.9) million in the prior-year period.
Basic and diluted net loss per share was $(0.02) for the second quarter of 2013, compared to a loss of $(0.04) for the second quarter of 2012.
Recent Business Highlights
- According to comScore data, MSLO’s websites averaged 5.4 million monthly unique visitors in the quarter, an 8% increase over the prior year.
- In June, the Company launched a redesigned marthastewart.com, which included enhancements such as responsive web design and practical, short-form video.
- MSLO launched MarthaCelebrations, MarthaPantry, MarthaWindow, MarthaRugs, MarthaLighting and MarthaMirrors at 550 jcpenney stores in the quarter.
- In the quarter, MSLO published its 79th and 80th books, Living the Good Long Life and Martha Stewart’s Favorite Crafts for Kids.
- In May, MSLO announced a new partnership with nutraceuticals and nutritional supplement developer Inergetics to develop Martha Stewart Essentials, the first branded line of women’s supplements in the market. The product line will be sold at retailers and drugstores in the fall.
- On April 6, PBS began airing the second season of Martha Stewart’s Cooking School and also debuted Martha Bakes, sponsored by J.C. Penney and Kitchen Aid along with charitable partner March of Dimes.
- In the quarter, the Company announced its second annual “American Made” program, a celebration of the spirit of innovation with a spotlight on the new generation of entrepreneurs. The program will culminate in a two-day celebration in New York City on October 16-17, 2013.
Revenues in the second quarter of 2013 were $24.2 million, compared to $28.8 million in the prior year’s second quarter, attributable to the transition of Everyday Food and closing of Whole Living. Excluding the impact of these two titles, print advertising revenue increased modestly in the quarter. The Company also generated strong growth in digital advertising revenues.
Operating loss was $(5.7) million for the second quarter of 2013, compared to $(5.0) million in prior year as a result of lower circulation revenue and planned increases in marketing expenses and digital investments. The Company continues to anticipate that operating performance in Publishing will begin to improve in the second half of the year.
Revenues increased 11% to $16.1 million for the second quarter of 2013, as compared to $14.5 million in the prior year’s second quarter. Results benefited from the commencement of royalty revenue recognition from J.C. Penney.
Operating income was $11.7 million for the second quarter of 2013 as compared to $10.2 million in the second quarter of 2012.
Revenue in the second quarter of 2013 was $1.9 million, compared to $4.6 million in the second quarter of 2012, reflecting the Company’s exit from live television programming production last year.
Operating income was $1.1 million for the second quarter of 2013 compared to operating income of $0.5 million in the second quarter of 2012.
Corporate expenses were $(7.7) million in the second quarter of 2013 compared to $(8.6) million in the prior year’s quarter, due to a temporary reduction in executive compensation related to the open chief executive officer position and decreased legal expenses.