Tuesday October 29th, 2013 - 9:46AM
Martha Stewart Living Omnimedia, Inc. today announced its results for the third quarter ended September 30, 2013. The company reported revenue for the third quarter of $33.8 million.
Ken West, evp, CFO, said, "Third quarter results reflect solid growth in merchandising offset by lower publishing revenues. Merchandising generated improved operating income of 11%. Our recently announced revised agreement with J.C. Penney assures the availability of Martha-branded products in targeted categories at J.C. Penney stores and online. These recent developments are encouraging, but we have much more work ahead."
West continued: "Our primary objective remains driving sustainable performance improvement at MSLO over the long-term by capitalizing on the strong engagement that our brands have with consumers across our media platforms and at retail. We welcome our newly appointed CEO, Dan Dienst, who brings a strong operating background and financial discipline to the company, as we intensify our efforts to reposition the Company for profitability."
The company reported that merchandising revenues increased 7% to $14.2 million for the third quarter of 2013, as compared to $13.2 million in the prior year's third quarter, benefitting from royalty revenue recognition from the company's relationship with J.C. Penney.
Operating income was $9.5 million for the third quarter of 2013 as compared to $8.5 million in the third quarter of 2012.
Total revenues for MSLO were $33.8 million in the third quarter of 2013, compared to $43.5 million in the third quarter of 2012 as growth in merchandising revenues was offset by lower revenues from publishing and broadcasting, which reflect the company's strategic decisions last year to end the publication of two print titles and exit live television programming production, according to MSLO.
Total operating loss for the third quarter of 2013 was $4.1 million compared with a loss of $50.7 million in the prior-year period. Total operating loss for the third quarter of 2012 included a $44.3 million non-cash impairment charge reflecting the write-down of goodwill related to the company's publishing segment, the company reported.