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Scripps Networks Interactive Inc. (SNI - Analyst Report) 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 - Snapshot Report), LIN TV Corp. and Cumulus Media Inc. (CMLS - Snapshot Report). While Cumulus currently has a Zacks Rank #1 (Strong Buy), both Entravision and LIN TV carry a Zacks Rank #2 (Buy).

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