Advertising Revenue in the Publishing Group Grew 23%;
Merchandising Initiatives on Track for Strong Second Half 2007
NEW YORK, Aug. 1 /PRNewswire-FirstCall/ -- Martha Stewart Living
Omnimedia, Inc. (NYSE: MSO) today announced its results for the second
quarter, showing revenue up 7.7% to $73.4 million, including 23.1% growth in
ad revenue for the company's Publishing segment. Excluding non-recurring
items, the loss was $(0.09) in the current period compared to a $(0.07) loss
in the prior year period.
President and Chief Executive Officer Susan Lyne said: "In the second
quarter of 2007, we continued to deliver solid, near-term gains and made
strategic adjustments to accelerate the company's long-term expansion. We're
on track to return to profitability this year and foresee a strong second
half. Advertising sales are thriving and our Martha Stewart Collection
exclusively at Macy's is currently rolling into stores. To improve our long-
term adjusted EBITDA performance, we are reallocating some of our investment
in Publishing to Internet.
"Advertising revenue is growing across our business segments. Publishing
was particularly strong with a 23% increase; advertising revenue growth
exceeded page growth, a significant trend that continues from previous
quarters. We also struck an agreement to publish 10 books over the next five
years with Clarkson Potter/Publishers, a deal that is already contributing to
our financial performance.
"Our Merchandising initiatives are all moving along well. In the second
quarter, we launched our Martha Stewart Crafts line at more than 900 Michaels
arts and crafts stores and on marthastewartcrafts.com. The initial performance
of the line has been solid, and we will be broadening our distribution to
independent retailers this fall.
"We recruited Wenda Harris Millard, former Chief Sales Officer of Yahoo!
and a founder of DoubleClick, to leverage our media assets in the newly
created position of President, Media. We now have in place the right people
and the right strategy to achieve our near and long-term objectives."
Second Quarter 2007 Summary
Revenues rose 7.7% to $73.4 million, compared to $68.2 million for the
second quarter of 2006. The second-quarter results benefited from ad revenue
growth and the Clarkson Potter deal.
Operating loss for the second quarter was $(7.8) million, compared to
$(1.8) million for the second quarter of 2006, due to previously discussed
investments in the Internet and Merchandising segments and a decline in sales
at Kmart. The Merchandising group is now fully staffed in advance of new
product launches in the second half. The results for the current period
include $2.2 million ($0.04) of non-recurring separation costs (cash and non-
cash equity compensation); the prior year included a one-time newsstand
expense reduction adjustment of $3.2 million ($0.06 per share) related to the
settlement of certain newsstand-related fees. Excluding these items, operating
loss would have been a loss of $(5.5) million compared to a loss of $(5.0)
million in the prior year period.
Adjusted EBITDA loss for the second quarter of 2007 was a loss of $(0.8)
million, including non-recurring cash separation costs of $1.3 million. This
compares to adjusted EBITDA of $3.2 million in the prior year period.
Excluding $1.3 million of non-recurring cash employee separation costs in the
current period and the $3.2 million reduction in newsstand-related fees in the
prior year period, adjusted EBITDA would have been $0.6 million in the current
period compared to breakeven in the prior year period.
Loss per share from continuing operations was $(0.13) for the second
quarter of 2007, compared to $(0.01) for the second quarter of 2006. Excluding
non-recurring items, the loss was $(0.09) in the current period compared to a
$(0.07) loss in the prior year period.
Second Quarter 2007 Results by Segment
Publishing
Revenues in the second quarter of 2007 rose 16% to $47.5 million from
$40.9 million, driven by ongoing growth in advertising revenue due to a
greater number of ad pages at higher rates. Pages increased 12% at Martha
Stewart Living and 22% at Everyday Food, while total ad revenue rose 23% in
the quarter. The Clarkson Potter agreement also contributed to results for the
quarter.
Operating income was $5.1 million for the second quarter of 2007, compared
to $6.1 million in the second quarter of 2006.
Adjusted EBITDA was $6.8 million, compared to an adjusted EBITDA of $6.9
million in the second quarter of 2006. The results for the current period
included $1.0 million of non-recurring cash separation costs for a senior
executive. The prior year included a one-time newsstand expense reduction
adjustment of $3.2 million related to the settlement of certain newsstand-
related fees. Excluding these items, adjusted EBITDA would have been $7.8
million in the current period and $3.7 million in the prior year period, an
increase of $4.1 million. This increase is driven by growth in ad pages and
rates in Living, Everyday Food and a new book deal with Clarkson Potter. The
current period included an investment of $2.0 million in Blueprint magazine.
Highlights
- Publishing remains a key growth category. Advertising revenue rose
23.1% to $27.8 million. Ad revenue growth continues to exceed page
growth, a strong and consistent trend from last year that is continuing
through 2007. The March, June, August and September issues of Living,
the company's flagship magazine, are the largest issues for those
months since 2002.
- The company announced an agreement with Clarkson Potter/Publishers to
publish 10 books over a five-year period, beginning this fall with
Martha Stewart Living Cookbook Volume I: The Original Classics and
Martha Stewart Living Cookbook Volume II: The New Classics. This
important deal helps MSO achieve near- and long-term margin objectives.
The leading lifestyle and cookbook publisher, Clarkson Potter has been
publishing best-selling Martha Stewart books since Entertaining in
1982.
Merchandising
Revenues were $10.4 million for the second quarter of 2007, as compared to
$10.9 million in the prior year's second quarter. The current quarter included
revenue from new partnerships, including the Martha Stewart Crafts line at
Michaels and on marthastewartcrafts.com, the Martha Stewart Colors paint
palette at Lowe's, and the Martha Stewart Rugs program with Safavieh. The
increases were offset by declining sales of Martha Stewart Everyday product at
Kmart.
Operating income was $3.5 million for the second quarter of 2007, compared
to $5.1 million in the second quarter of 2006. The reduction in operating
income was due largely to the decline in sales of product at Kmart and an
anticipated investment in staff. The company is now fully staffed for second-
half launches.
Adjusted EBITDA was $3.9 million for the second quarter of 2007, compared
to $5.6 million in the prior year's second quarter.
Highlights
- The company launched its introductory Martha Stewart Crafts line of
paper-based crafting and storage products on May 1, which is delivering
solid results. The line, which features more than 650 SKUs, is
available exclusively in more than 900 Michaels arts and crafts stores
in the United States and Canada and on marthastewartcrafts.com. The
line will be rolling out to independent craft retailers this fall, and
more broadly in 2008.
- The Martha Stewart Collection exclusively at Macy's is rolling into
stores and will officially launch with an extensive marketing campaign
on September 10. The line encompasses a broad range of home goods-
including bed and bath textiles, housewares, casual dinnerware,
flatware and glassware, cookware, holiday decorating, and tree-trimming
items.
- The company continues to expand its home decorating portfolio with the
launch of Martha Stewart Floor Designs(TM) with FLOR(TM) on July 15,
followed by Martha Stewart Rugs, and the portable lighting component of
the Martha Stewart Lighting line in fall 2007. The rugs and lighting
products will be available at Macy's, as well as at independent
retailers. The carpet tiles are available online at flor.com.
Internet
Revenues rose 12% year-over-year to $5.2 million in the second quarter of
2007 from $4.6 million in the second quarter of 2006, driven by 17% growth in
ad revenue.
Operating loss was $(2.1) million in the second quarter of 2007, compared
with breakeven in the second quarter of 2006. Increased revenue was more than
offset by higher expenses associated with the new platform, including higher
technology and staffing costs.
Adjusted EBITDA loss was $(1.7) million in the second quarter of 2007,
compared to adjusted EBITDA income of $0.1 million in the second quarter of
2006.
Highlights
- Traffic on the new website increased modestly, from 36.5 million page
views/month in prior year to 38.0 million page views/month this
quarter. To ramp traffic, the company is focusing on two key
initiatives: significantly increasing the amount of content on the
site; and focusing on search engine optimization.
- One of the priorities is to reset the development road map to take
advantage of the company's assets-brand awareness, unique content and
engaged consumer base-to build a significant digital business.
Broadcasting
Revenues in the second quarter of 2007 were $10.4 million, down from $11.8
million in the second quarter of 2006. The prior year's quarter included
revenue from the cable distribution of the show. The conclusion of a cable
agreement along with the erosion of the daytime television audience were
partially offset by high-margin product integration revenue.
Operating loss was $(0.9) million for the second quarter of 2007, compared
to operating income of $0.4 million in the second quarter of 2006. Results
included a $0.9 million ($0.02 per share) non-cash compensation expense
associated with the amortization of the last tranche of a warrant granted in
connection with the production of a syndicated TV program.
Adjusted EBITDA was $1.1 million for the second quarter of 2007, compared
to $1.2 million in the prior year's second quarter. The decline in revenue was
partially offset by an increase in high-margin product integrations which,
combined with cost controls, allowed the segment to deliver approximately flat
adjusted EBITDA.
Highlights
- The second season of The Martha Stewart Show wrapped in June and
preparations are underway for the third season, which begins in
September and will be broadcast in more than 95 percent of the United
States.
- The company announced a distribution deal with the DIY Network for a
new half-hour series. The Martha Stewart Crafts TV show is a "best of"
compilation of "how-to" segments about scrapbooking, handmade gifts,
paper cards, decoupage, glittering, framing, rubber-stamping and more.
Set to premiere on Thanksgiving Day, the initial 39 episodes will be
culled from MSO's original lifestyles series, Martha Stewart Living.
Corporate Expenses
Corporate expenses, including depreciation and amortization and non-cash
equity compensation were $(13.3) million, compared to $(13.4) million in the
prior year's quarter. Adjusted EBITDA was a loss of $(10.9) in the current
period, compared to a loss of $(10.7) million in the prior year period. The
current period includes $0.4 million of cash and $0.4 of non-cash separation
costs related to the departure of a corporate employee. Excluding the current
period cost, adjusted EBITDA would have been $(10.5) in the current period,
compared to $(10.7) million in the prior year period.
Trends and Outlook
Howard Hochhauser, Chief Financial Officer, commented: "We are well-
positioned at the close of the second quarter, and highly encouraged that ad
revenue growth across our media business segments continues to be strong.
"We have returned to growth armed with a strong balance sheet, and are
actively evaluating how best to deploy our capital. To this end, we anticipate
moving certain spending from Publishing to Internet. Our financial strength,
marked by our substantial free cash flow-generating characteristic and our
strong balance sheet, gives us the flexibility to execute on our strategy.
"As we look ahead to the coming quarters, we are maintaining our full-year
revenue guidance in the range of $330.0 - $340.0 million, operating income
guidance in the range of $9.5 - $12.5 million and adjusted EBITDA guidance in
the range of $34.0 - $37.0 million.
"For the third quarter of 2007, we are expecting revenue in the range of
$68.0 - $70.5 million, operating loss in the range of $(7.5) - $(8.5) million
and adjusted EBITDA loss in the range of $(2.5) - $(3.5) million, including an
investment of $2.0 million in Blueprint magazine."
Use of Non-GAAP Financial Information
In addition to using net income to assess the organization's overall
financial health, Company management uses net income before interest, taxes,
depreciation, amortization and non-cash equity compensation ("adjusted
EBITDA"), a non-GAAP financial measure, to evaluate the performance of our
businesses on a real-time basis. Adjusted EBITDA is considered an important
indicator of operational strength, is a direct component of the Company's
annual compensation program, and is a significant factor in helping our
management determine how to allocate resources and capital. Adjusted EBITDA
is used in addition to and in conjunction with results presented in accordance
with GAAP. Management considers adjusted EBITDA to be a critical measure of
operational health because it captures all of the revenue and ongoing
operating expenses of our businesses without the influence of (i) interest
charges, which result from our capital structure, not our ongoing business
efforts, (ii) taxes, which relate to the overall organizational financial
return, not that of any one business, (iii) the capital expenditure costs
associated with depreciation and amortization, which are a function of
historical decisions on infrastructure and capacity, and (iv) the cost of non-
cash equity compensation which, as a function of our stock price, can be
highly variable, is not necessarily an indicator of current operating
performance for any individual business unit, and is amortized over the
appropriate period.
Adjusted EBITDA provides a means to directly evaluate the ability of our
business operations to generate returns on a real-time basis. We provide
disclosure of adjusted EBITDA because we believe it is useful for investors to
have means to assess our performance as we do. While adjusted EBITDA is a
customized non-GAAP measure, it also provides a means to analyze, value and
compare our operating capabilities to those of companies with whom we compete,
many of which have different compensation plans, depreciation and amortization
costs, capital structures and tax burdens. But please note that our non-GAAP
results may differ from similar measures used by other companies, even if
similar terms are used to identify such measures.
A limitation of adjusted EBITDA is that it does not reflect the periodic
costs of certain capitalized tangible and intangible assets used in generating
revenues for our overall organization. Management evaluates the costs of such
tangible and intangible assets through other financial measures such as
capital expenditures. Management also evaluates the cost of capitalized
tangible and intangible assets by analyzing returns provided on the capital
dollars deployed. A further limitation of adjusted EBITDA is that it does not
include stock compensation expense related to our workforce. Adjusted EBITDA
should be considered in addition to, and not as a substitute for, net income
or other measures of financial performance reported in accordance with GAAP.
Martha Stewart Living Omnimedia, Inc. (MSLO) is a leading provider of
original "how-to" information, inspiring and engaging consumers with unique
lifestyle content and high-quality products. MSLO is organized into four
business segments: Publishing, Broadcasting, Merchandising, and Internet.
Martha Stewart Living Omnimedia, Inc. is listed on the New York Stock Exchange
under the ticker symbol MSO.
The Company will host a conference call with analysts and investors on
August 1st, at 10:00 a.m. ET that will be broadcast live over the Internet at
www.marthastewart.com/ir.
We have included in this press release certain "forward-looking
statements," as that term is defined in the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are not historical facts
but instead represent only our current beliefs regarding future events, many
of which, by their nature, are inherently uncertain and outside of our
control. These statements can be identified by terminology such as "may,"
"will," "should," "could," "expects," "intends," "plans," "anticipates,"
"believes," "estimates," "potential" or "continue" or the negative of these
terms or other comparable terminology. The Company's actual results may differ
materially from those projected in these statements, and factors that could
cause such differences include: adverse reactions to publicity relating to
Martha Stewart by consumers, advertisers and business partners; downturns in
national and/or local economies; shifts in our business strategies; a loss of
the services of Ms. Stewart; a loss of the services of other key personnel; a
softening of the domestic advertising market; changes in consumer reading,
purchasing and/or television viewing patterns; unanticipated increases in
paper, postage or printing costs; operational or financial problems at any of
our contractual business partners; the receptivity of consumers to our new
product introductions; and changes in government regulations affecting the
Company's industries. Certain of these and other factors are discussed in
more detail in the Company's Annual Report on Form 10-K filed with the
Securities and Exchange Commission, especially under the heading "Risk
Factors", which may be accessed through the SEC's World Wide Web site at
http://www.sec.gov. The Company is under no obligation to update any forward-
looking statements after the date of this release.
Martha Stewart Living Omnimedia, Inc.
Consolidated Statements of Operations
Three Months Ended, June 30,
(unaudited, in thousands, except per share amounts)
2007 2006 % change
REVENUES
Publishing $47,478 $40,888 16.1%
Merchandising 10,352 10,891 -4.9%
Internet 5,183 4,634 11.8%
Broadcasting 10,433 11,757 -11.3%
Total revenues 73,446 68,170 7.7%
OPERATING COSTS AND EXPENSES
Production, distribution
and editorial 38,881 35,498 -9.5%
Selling and promotion 22,172 14,787 -49.9%
General and administrative 17,920 17,447 -2.7%
Depreciation and amortization 2,263 2,236 -1.2%
Total operating costs
and expenses 81,236 69,968 -16.1%
OPERATING LOSS (7,790) (1,798) nm
Interest income, net 775 1,356 -42.8%
Legal settlement 432 - nm
LOSS BEFORE INCOME TAXES (6,583) (442) nm
Income tax provision (154) (229) nm
LOSS FROM CONTINUING
OPERATIONS BEFORE LOSS FROM
DISCONTINUED OPERATIONS (6,737) (671) nm
Loss from discontinued operations - (499) nm
NET LOSS $(6,737) $(1,170) nm
LOSS PER SHARE - BASIC AND DILUTED
Loss from continuing operations $(0.13) $(0.01)
Loss from discontinued operations (0.00) (0.01)
Net loss $(0.13) $(0.02)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic and Diluted 52,386 51,176
Martha Stewart Living Omnimedia, Inc.
Consolidated Statements of Operations
Six Months Ended June 30,
(unaudited, in thousands, except per share amounts)
2007 2006 % change
REVENUES
Publishing $88,096 $77,176 14.1%
Merchandising 23,952 22,418 6.8%
Internet 8,713 7,582 14.9%
Broadcasting 19,389 23,077 -16.0%
Total revenues 140,150 130,253 7.6%
OPERATING COSTS AND EXPENSES
Production, distribution and editorial 78,609 68,247 -15.2%
Selling and promotion 42,403 31,781 -33.4%
General and administrative 35,239 35,269 0.1%
Depreciation and amortization 4,241 4,444 4.6%
Total operating costs and expenses 160,492 139,741 -14.8%
OPERATING LOSS (20,342) (9,488) nm
Interest income, net 1,547 2,402 -35.6%
Legal settlement 432 - nm
LOSS BEFORE INCOME TAXES (18,363) (7,086) nm
Income tax provision (243) (296) nm
LOSS FROM CONTINUING OPERATIONS BEFORE
LOSS FROM DISCONTINUED OPERATIONS (18,606) (7,382) nm
Loss from discontinued operations - (622) nm
NET LOSS $(18,606) $(8,004) nm
LOSS PER SHARE - BASIC AND DILUTED
Loss from continuing operations $(0.36) $(0.14)
Loss from discontinued operations - (0.01)
Net loss $(0.36) $(0.16)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic and Diluted 52,382 51,192
Martha Stewart Living Omnimedia, Inc.
Consolidated Balance Sheets
(in thousands, except per share amounts)
June 30, December 31,
2007 2006
(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 36,571 $28,528
Short-term investments 45,304 35,321
Accounts receivable, net 45,007 70,319
Inventories, net 5,114 4,448
Deferred television production costs 4,844 4,609
Income taxes receivable 482 482
Other current assets 2,592 3,857
Total current assets 139,914 147,564
PROPERTY, PLANT AND EQUIPMENT, net 18,055 19,616
INTANGIBLE ASSETS, net 53,605 53,605
OTHER NONCURRENT ASSETS 8,401 7,262
Total assets $219,975 $228,047
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 23,702 $28,053
Accrued payroll and related costs 13,882 13,646
Income taxes payable 1,946 1,011
Current portion of deferred subscription income 26,687 28,884
Current portion of deferred royalty revenue 7,245 3,159
Total current liabilities 73,462 74,753
DEFERRED SUBSCRIPTION REVENUE 9,124 10,032
DEFERRED REVENUE 13,163 9,845
OTHER NONCURRENT LIABILITIES 2,244 2,460
Total liabilities 97,993 97,090
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Class A common stock, $0.01 par value,
350,000 shares authorized: 26,608 and
26,109 shares issued in 2007 and 2006,
respectively 266 261
Class B common stock, $0.01 par value,
150,000 shares authorized: 26,722 and
26,791 shares outstanding in 2007 and 2006,
respectively 268 268
Capital in excess of par value 267,479 257,014
Accumulated deficit (145,256) (125,811)
122,757 131,732
Less class A treasury stock - 59 shares at cost (775) (775)
Total shareholders' equity 121,982 130,957
Total liabilities and shareholders' equity $219,975 $228,047
Martha Stewart Living Omnimedia, Inc.
Supplemental Disclosures Regarding Non-GAAP Financial Information
Three Months Ended June 30,
(unaudited, in thousands)
The following table presents segment and consolidated financial information, including a reconciliation of operating income/(loss), a GAAP measure, and adjusted EBITDA, a non-GAAP measure. In order to reconcile adjusted EBITDA to operating income, depreciation and amortization and non-cash equity compensation are added back to operating income/(loss).
2007 2006
ADJUSTED EBITDA
Publishing $6,779 $6,905
Merchandising 3,902 5,610
Internet (1,705) 110
Broadcasting 1,126 1,238
Adjusted EBITDA before Corporate Expenses 10,102 13,863
Corporate Expenses (10,889) (10,690)
Adjusted EBITDA (787) 3,173
NON-CASH EQUITY COMPENSATION
Publishing 1,434 708
Merchandising 355 238
Internet 90 36
Broadcasting 1,160 59
Corporate Expenses 1,701 1,694
Total Non-Cash Equity Compensation 4,740 2,735
DEPRECIATION AND AMORTIZATION
Publishing 295 135
Merchandising 97 254
Internet 349 68
Broadcasting 837 755
Corporate Expenses 685 1,024
Total Depreciation and Amortization 2,263 2,236
OPERATING INCOME (LOSS)
Publishing 5,050 6,062
Merchandising 3,450 5,118
Internet (2,144) 6
Broadcasting (871) 424
Operating Income before Corporate Expenses 5,485 11,610
Corporate Expenses (13,275) (13,408)
Total Operating Loss (7,790) (1,798)
Interest income, net 775 1,356
Legal settlement 432 -
LOSS BEFORE INCOME TAXES (6,583) (442)
Income tax provision (154) (229)
LOSS FROM CONTINUING OPERATIONS BEFORE
LOSS FROM DISCONTINUED OPERATIONS (6,737) (671)
Loss from discontinued operations - (499)
NET LOSS $(6,737) $(1,170)
Martha Stewart Living Omnimedia, Inc.
Supplemental Disclosures Regarding Non-GAAP Financial Information
Six Months Ended June 30,
(unaudited, in thousands)
The following table presents segment and consolidated financial
information, including a reconciliation of operating income/(loss), a GAAP
measure, and adjusted EBITDA, a non-GAAP measure. In order to reconcile
adjusted EBITDA to operating income, depreciation and amortization and non-
cash equity compensation are added back to operating income/(loss).
2007 2006
ADJUSTED EBITDA
Publishing $9,157 $7,746
Merchandising 11,134 12,334
Internet (3,978) 159
Broadcasting 1,776 1,886
Adjusted EBITDA before Corporate Expenses 18,089 22,125
Corporate Expenses (21,318) (21,462)
Adjusted EBITDA (3,229) 663
NON-CASH EQUITY COMPENSATION
Publishing 2,219 1,418
Merchandising 715 515
Internet 164 53
Broadcasting 7,046 279
Corporate Expenses 2,728 3,442
Total Non-Cash Equity Compensation 12,872 5,707
DEPRECIATION AND AMORTIZATION
Publishing 588 319
Merchandising 193 508
Internet 505 103
Broadcasting 1,699 1,500
Corporate Expenses 1,256 2,014
Total Depreciation and Amortization 4,241 4,444
OPERATING INCOME (LOSS)
Publishing 6,350 6,009
Merchandising 10,226 11,311
Internet (4,647) 3
Broadcasting (6,969) 107
Operating Income before Corporate Expenses 4,960 17,430
Corporate Expenses (25,302) (26,918)
Total Operating Loss (20,342) (9,488)
Interest income, net 1,547 2,402
Legal settlement 432 -
LOSS BEFORE INCOME TAXES (18,363) (7,086)
Income tax provision (243) (296)
LOSS FROM CONTINUING OPERATIONS BEFORE
LOSS FROM DISCONTINUED OPERATIONS (18,606) (7,382)
Loss from discontinued operations - (622)
NET LOSS $(18,606) $(8,004)
Martha Stewart Living Omnimedia, Inc.
Supplemental Disclosures Regarding Non-GAAP Financial Information
Guidance Reconciliation
(in millions)
The following table presents segment and consolidated financial
information, including a reconciliation of operating income/(loss), a GAAP
measure, and adjusted EBITDA, a non-GAAP measure. In order to reconcile
adjusted EBITDA to operating income, depreciation and amortization and non-
cash equity compensation are added back to operating income/(loss).
Third Quarter Guidance Reconciliation
Guidance Range
Adjusted EBITDA $(3.5) - $(2.5)
Depreciation and Amortization (1.5) (1.5)
Non-Cash Equity Compensation (3.5) (3.5)
Operating Loss (8.5) - (7.5)
Interest Income 1.0 1.0
Pre-tax Loss (7.5) - (6.5)
Income Taxes -- - --
Net Loss (7.5) - (6.5)
Loss Per Share $(0.14) - $(0.13)
Avg. Diluted Shares Outstanding 52.0 52.0
Full Year 2007 Guidance Reconciliation
Guidance Range
Adjusted EBITDA $34.0 - $37.0
Depreciation and Amortization (6.5) (6.5)
Non-Cash Equity Compensation (18.0) (18.0)
Operating Income 9.5 - 12.5
Interest Income 4.0 4.0
Pre-tax Income 13.5 - 16.5
Income Taxes -- - --
Net Income 13.5 - 16.5
Earnings Per Share $0.26 - $0.32
Avg. Diluted Shares Outstanding 52.0 52.0
SOURCE Martha Stewart Living Omnimedia, Inc.
CONTACT: Investors, Howard Hochhauser, Chief Financial Officer, of
Martha Stewart Living Omnimedia, Inc., +1-212-827-8530; Media, Diana Pearson,
SVP, Corporate Communications and Media Relations, of Martha Stewart Living
Omnimedia, Inc., +1-212-827-8915 /
Web site: http://www.marthastewart.com /
(MSO)
