Meredith Corporation to Record Special Charge
14 Gennaio 2010 - 6:00PM
PR Newswire (US)
DES MOINES, Iowa, Jan. 14 /PRNewswire-FirstCall/ -- Meredith
Corporation (NYSE:MDP) said today that it will record a special
charge of approximately $5.5 million (approximately $3.5 million
after-tax or $0.07 per share) in its fiscal 2010 second quarter.
The charge - including severance, creative and distribution costs -
is related to a repositioning of its Special Interest Media (SIM)
business, a collection of primarily newsstand publications focused
on home improvement and do-it-yourself projects in niche content
areas such as remodeling, decorating, food and entertaining, and
gardening and outdoor living. "The recessionary economy has
impacted the consumer's ability to execute these types of projects
and led to a decrease in advertising spending," said Meredith
President and Chief Executive Officer Stephen M. Lacy. "As a
result, we are repositioning our SIM portfolio to focus on certain
home and food verticals, in particular those aligned with the
Better Homes and Gardens brand. We continue to believe in the
long-term viability of this business and believe this strategy will
deliver substantially higher profitability going forward."
Meredith, the industry leader in Special Interest Media, plans to
produce approximately 90 SIM issues in fiscal 2011, compared to
approximately 150 in fiscal 2010. Approximately 45 positions are
being impacted as part of this repositioning. Meredith currently
employs more than 3,000 employees nationwide. Meredith will provide
an update on the current advertising environment and its earnings
outlook when it releases fiscal 2010 second-quarter earnings on
January 21, 2010. ABOUT MEREDITH CORPORATION Meredith Corporation
(http://www.meredith.com/) is the leading media and marketing
company serving American women. Meredith combines well-known
national brands - including Better Homes and Gardens, Parents,
Ladies' Home Journal, Family Circle, American Baby, Fitness and
More - with local television brands in fast-growing markets.
Meredith is the industry leader in creating content in key consumer
interest areas such as home, family, health and wellness and
self-development. Meredith uses multiple distribution platforms -
including print, television, online, mobile and video - to give
consumers content they desire and to deliver the messages of its
marketing partners. Additionally, Meredith uses its many assets to
create powerful custom marketing solutions for many of the nation's
top brands and companies. SAFE HARBOR This release contains certain
forward-looking statements that are subject to risks and
uncertainties. These statements are based on management's current
knowledge and estimates of factors affecting the company and its
operations. DATASOURCE: Meredith Corporation CONTACT: Art Slusark,
+1-515-284-3404, , or Patrick Taylor, +1-212-551-6984, , both of
Meredith Corporation Web Site: http://www.meredith.com/
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