This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Martha Stewart Living Omnimedia's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Thank you, and now I'll turn the call over to Lisa.

Lisa Gersh

Thank you Katherine and good morning everyone. Our second quarter results were pretty much in line with our expectations.

Highlights include strong margins in Merchandising, as well as continued solid revenue growth and a modest profit in Broadcasting. Our Publishing results were weaker as we communicated they would be. More important is how we see the second half of the year as we execute on all of our turnaround plans, and I'll update you on where we are across each of our businesses. After that, I'll turn the call over to Ken and then we’ll take your questions.

I’d like to start with Merchandising. We had a solid quarter overall with adjusted EBITDA margins about 70%. Leading contributors to revenue growth in the quarter included J.C. Penney, where we continue our early design work as we prepare for the launch of that partnership in the first quarter of 2013. The Martha Stewart Home Office line with Avery sold exclusively at Staples in the United States, and now, the UK and strong performance in our pet’s line at Petsmart. Overall, our growth was offset by softness of the Home Depot relative to our expectations primarily in the soft flooring category.

I’d like to focus for a moment on recent developments with respect to J.C. Penney. First, we announced the substantial expansion of the commercial partnership, including additional product categories and an increase in the minimum guarantee. We will now receive a minimum of about $288 million over the course of the 10 year agreement, an increase of $110 million from what was originally planned. The opportunity to amend this agreement has been in place since the beginning. The decision to act on it now is a reflection of the great opportunities we and J.C. Penney see as the relationship builds.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs