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Martha Stewart Announces Third Quarter Results

 Martha Stewart Living Omnimedia, Inc. announced its results for the third quarter ended September 30, 2009. The Company reported revenue for the third quarter of $49.8 million, compared to $66.5 million in the third quarter of 2008. The decrease was attributed by the company to declines in advertising revenue and lower merchandising revenues partially due to the final “revenue true-up” from Sears Canada in last year’s third quarter.
Operating loss for the third quarter of 2009 was $11.7 million, compared to $3.5 million for the third quarter of 2008.
Adjusted EBITDA loss for the third quarter of 2009 was $5.6 million, compared to Adjusted EBITDA of $0.6 million in the prior-year period. The third quarter of 2008 included charges related to staff reductions and other non-recurring corporate costs, which negatively impacted the operating loss by $3.5 million and Adjusted EBITDA by $3.2 million. Net loss per share was $0.22 for the third quarter of 2009, compared to $0.07 for the third quarter of 2008.
Merchandising revenues were $8.9 million for the third quarter of 2009, as compared to $14.6 million in the prior year’s third quarter. The prior-year results benefited from the final revenue true-up from Sears Canada, a relationship that ended in the third quarter of 2008. In addition, the 2009 third quarter results include expected lower royalty revenue from Kmart as the relationship winds down. Operating income was $3.5 million for the third quarter of 2009, compared to $8.6 million in the third quarter of 2008. Adjusted EBITDA was $4.3 million for the third quarter of 2009, compared to $8.8 million in the prior year’s third quarter. Excluding Kmart and Sears Canada in both periods, Adjusted EBITDA increased 27% from the prior year’s third quarter.
Robin Marino, president and CEO/merchandising, stated: “Retail sales of Martha Stewart products were solid in the quarter, with a strong performance by the Martha Stewart Collection at Macy’s and Martha Stewart Crafts at Michaels. Our new relationship with The Home Depot and our upcoming pet accessories line at PetSmart further diversify our business and broaden our reach.”
The Martha Stewart Living brand of home improvement products will launch at The Home Depot in select categories, including Outdoor Living, Home Storage and Organization and Home Decor, rolling out beginning in January 2010. MSLO’s multi-year relationship with Age Group Ltd. to manufacture, market and sell pet-care products will launch at PetSmart in the second quarter of 2010.