- Rentrak's TV Essentials System to Include Data from the Nation's Fourth Largest Cable Provider To Analyze Relationship Between On Demand and Linear Viewing Trends -
PORTLAND, Ore., March 3 /PRNewswire-FirstCall/ -- Rentrak Corporation (Nasdaq: RENT) today announced it has reached an agreement with Charter Communications to begin a linear TV measurement trial. The trial, utilizing Rentrak's TV Essentials service will focus on the relationship between linear television and on demand viewing patterns.
Rentrak's TV Essentials system is a comprehensive suite of research tools that enables customers to analyze anonymous and aggregate audience viewing of programming and advertising for linear television. Features of TV Essentials include reports on audience flow, audience retention, day part analysis, and series/title comparison summarized at a national or market level.
"With the addition of the Charter data, Rentrak is uniquely qualified to provide unparalleled linear television insights," said Sandra Kilbridge, vice president of operations, Advanced Media and Information (AMI) division at Rentrak. "As the industry continues to demand greater accountability, Rentrak is leading the way to deliver timely, accurate, multi-platform media measurement."
"Consumers ultimately benefit from a better understanding of linear and on-demand television viewing habits through improved programming and easier access to that programming," said Jim Heneghan, Charter's Senior Vice President of Advertising Sales.
Rentrak's TV Essentials system processes data from more than seven million set top boxes to help advertising agencies, networks and local stations make business decisions to drive increased revenue. In addition to the TV Essentials system, Rentrak processes on demand television data representing more than 54 million set top boxes.
About TV Essentials(R)
Rentrak's TV Essentials is a comprehensive suite of research tools that enable customers to analyze anonymous audience viewing of programming and advertising across VOD, DVR, interactive and linear television. Utilizing proprietary technology to process massive amounts of click-stream data, the TV Essentials system is able to aggregate and report second-by-second information from millions of digital set-top boxes. The system can isolate individual market, network, series, or telecast performance, administer national and local estimates, and provide an evaluation of influencing factors such as psychographics and demographics.
About Rentrak Corporation
Rentrak Corporation, based in Portland, Oregon, is an information management company serving clients in the media, entertainment, retail, and advertising industries. The company's Entertainment Essentials(TM) suite of services is redefining media measurement in the digital broadband era. Entertainment Essentials provides customers with near-real-time, actionable insight into performance of content distributed over a wide variety of modern media technologies. Available by license or subscription, each Entertainment Essentials application allows executives to analyze detailed industry-wide and title-specific data to make decisions that enhance the bottom line and provide competitive advantage. For further information, please visit Rentrak's corporate Web site at Rentrak.com.
Agency builds website and communications portal for Extreme Makeover : Home Edition's 143rd build.
RALEIGH, N.C., March 3 /PRNewswire/ -- Included in the efforts, are a website, www.extremeEBheroes.com, which serves as a clearing house for information and a resource for volunteer and donation activities and an online logistics management portal to coordinate the thousands of people and supplies needed to successfully complete the build. Just as the show relies on the efforts of volunteers, Ulanguzi is donating all of the services needed to build and maintain these systems.
"An important part of Ulanguzi includes doing things that matter, that make a positive contribution to the world," remarks Ulanguzi Designer Matt Tarpley. "This is absolutely one of those things."
"Like so much of what we do, this project brought together disciplines from throughout the agency," adds Web Developer Ryan Keefer. "The real-time collaboration of our entire team was instrumental in completing this project in an impossibly short timeframe."
With the builder announced and the web system launched, Ulanguzi has met its first goal of creating an active information portal, and with the project build and show air dates approaching quickly, the website and their associated systems will prove to be instrumental to a successful home build for one very deserving family.
About Ulanguzi Creative Strategies
Founded in 2001, Ulanguzi, a Raleigh based design agency, brings together a talented group of marketing and advertising strategic thinkers and skilled designers and programmers from all parts of the country. Swahili for "spirit of revolutionary success," ulanguzi is the approach that is applied to solving an organization's marketing, communications, advertising and design challenges. Ulanguzi employs clear thinking, strategic planning and on-target creative solutions that propel companies confidently through the battle zones that face businesses every day. To participate in the revolution, call 919.899.3835 or visit Ulanguzi on the Web at http://www.ulanguzi.com.
About ABC's-TVs Extreme Makeover: Home Edition
"Extreme Makeover: Home Edition, "which has won back-to-back Emmy Awards as Best Reality Program (non-competitive), is entering its 6th season on ABC. The program is produced by Endemol USA, a division of Endemol Holding. Anthony Dominici is the executive producer; and David Goldberg is the president of Endemol USA.
CHAPPAQUA, N.Y., March 3 /PRNewswire/ -- Kids get the key to hours of fun and entertainment with Hannah Montana Secrets Unlocked Online, new this spring from Reader's Digest. Fans will covet the collectible charm with secret password that comes with the book. It enables readers to access a special website, www.hannahwebpass.com, that's chock-full of fun online activities. Kids can read about Hannah, her friends Lily and Oliver, and even heartthrob Jake Ryan, then log on to the website, plug in the secret code, and discover a treasure chest full of pictures, posters, printables and interactive activities.
The book and website each include three separate sections -- "Fashion Focus," "School, Friends, and More," and "Family Rocks" -- that not only show what makes Hannah so cool, but also give kids a chance to explore their own fashion style, relationships, and more. Fans will want to share with each other the book's familiar Hannah Montana moments -- silly, goofy, funky, and, of course, romantic. The website extends the fun.
Online, kids can design a room, guitar, bulletin board, birthday card, or concert t-shirt, choose outfits for Hannah, edit a magazine cover or yearbook, and print out a fashion calendar or a birthday keeper. Whether fans want to read Miley's diary, find out their "crush style," or create a Hannah Montana family scrapbook, it's all there at www.hannahwebpass.com. A special bonus page even allows kids to download and print posters and stickers.
The Hannah Montana Secrets Unlocked Online book and secret website are the ultimate key to fun for Hannah Montana fans.
AUSTIN, Texas, March 2 /PRNewswire/ -- The Direct Response Academy is introducing the first course on infomercial marketing to the U.S. Hispanic consumer. Hispanic DRTV Marketing will be held on March 24 & 25 in Austin, Texas.
"This new program is very timely," says Greg Sarnow, Academy CEO. "Marketers are being challenged today to introduce their brands to the Hispanic market using infomercial television advertising. But first, they need to understand the distinct differences in approach to this sector."
Attendees at the Austin course will explore the nuances of marketing to the Hispanic consumer and the tactical differences in approach to Hispanic marketing vs. general marketing. Challenges like the vendors needed for Hispanic DRTV, how to solve the issue of COD, and the truth about credit cards in marketing to Hispanics will be thoroughly evaluated.
The Hispanic DRTV Marketing course is built on the curriculum of the Academy's cornerstone program, DRTV Management Boot Camp, which covers the full spectrum of an infomercial campaign. Participants will learn to:
Determine if a product is feasible for a Hispanic infomercial campaign
Build a compelling product offer
Choose the best creative approach and production format for a Hispanic program
Build a sound financial model
Analyze media placement results
Maximize effectiveness of telemarketing and product fulfillment vendors
Integrate web sales with a DRTV campaign
Brand DRTV products for sale at the retail level
An added bonus is that the course dovetails with Austin's annual SXSW festival. Information on the festival can be found at http://sxsw.com/.
Hispanic DRTV Marketing will be held in Austin, Texas on March 24th and 25th. For more information, contact Mark Warren at courses@directresponseacademy.com, or call (512) 301-5900. Visit: www.DirectResponseAcademy.com/courses-hispanic-drtv-marketing.html
The Direct Response Academy in Austin, Texas is the only educational company dedicated to teaching the best practices of direct response television marketing. The Academy offers on-site and public training, infomercial campaign management, and consulting services for companies and individuals who are launching or managing DRTV campaigns.
Titillating 2009 Season Features Hot Male Athletes in World Locations
NEWPORT BEACH, Calif., March 2 /PRNewswire/ -- Soccer in the United States has failed to capture the same viewership as it has around the world; but don't tell that to Esad Pepic and Dominic Fratantaro, creators of the new reality series One Shot One Dream.
In this reality series, twenty-three hopefuls will live out their dream as professional soccer players in Europe, hitting the road on a 14-day glimpse into soccer madness, fame, and European attractions. The team will be led by their hard-nosed former professional coach turned ultimate fighter, preparing the players for harsh realities when they play six showcase matches against top European teams in search of a professional contract.
Between games the team will tour Europe on their two story bus adorned with International Soccer Star artwork, compete in street soccer games in historic European cities, mingle with the hard core soccer hooligans, dine on authentic European cuisine, and travel the Adriatic Sea by yacht.
International Soccer Star F.C., the independent international traveling soccer club behind the One Shot One Dream reality show will be a groundbreaking show for soccer in the United States. "Forget about Beckham and the MLS, this series will be the most talked by all American sports lovers ... it has something for everybody!" Pepic voiced. The production expects to attract thousands of young hopefuls from across the country that will have their climb to soccer stardom recorded in detail.
"This series takes the drama of the Real World, shoves it in a bus and punches it in the face," said Pepic. Fratantaro added, "This is not the soccer you see in America ... it has sex appeal, passion, and intense drama." Check out the 2008 season to see how the first tour rocked Europe at www.OneShotOneDream.com.
The buzz surrounding the first season demonstrates that major network interest will be high. Pepic noted, "We will be showcasing to FOX, WB, HBO, ESPN and many more networks in the weeks ahead ... you add team in-fighting, night clubs, world class soccer, fashion shows, Europe, and the opportunity to be offered a contract, and you get a recipe for a fantastic reality series ... we were blown away at what happened and now it's time for us to officially launch."
The 2008 season ended with six players receiving trials and three players offered contracts. Who will be the next International Soccer Star on the One Shot One Dream Reality Series? It could be you!
Hopefuls for the One Shot One Dream Reality TV Series can sign up early on the official site www.oneshotonedream.com . For further information: 1 (949) 610-4353.
Location: Irvine, California
Cost: $145 Registration Fee
Tryouts: June 13-14, 2009
Camp: June 22 - July 17, 2009
Europe: July 20th - August 3, 2009
****All Times and Locations are Subject to Change****
Soccer Gear Awarded To All Participants
LOS ANGELES, March 2 /PRNewswire/ -- Comcast Interactive Media (CIM), a division of Comcast Corporation dedicated to developing and operating online and cross-platform entertainment and media businesses, announced today that it is appointing entertainment media and digital advertising industry veteran Scott Schiller as its Senior Vice President of Advertising Sales, overseeing sales for Fandango, Fancast, Movies.com and Plaxo.
A co-founder of the Interactive Advertising Bureau (IAB), and its first vice-chairman, Schiller has more than 25 years of advertising, sales management and start-up media experience, in leading positions at worldwide entertainment brands including Disney, AOL, Sony, Prodigy and MTV Networks.
As a key member of the CIM executive team, Schiller will be based in New York City, but he will staff and manage CIM sales offices throughout the country. Schiller will report directly to Chuck Davis, Executive Vice President of Comcast Interactive Media and Chief Executive Officer of Fandango.
"We are pleased to welcome Scott to the Comcast Interactive Media family," says Chuck Davis, Executive Vice President of Comcast Interactive Media and Chief Executive Officer of Fandango. "CIM has a growing number of trusted brands, and Scott has a long track record of building highly motivated advertising sales teams. We think his experience, combined with our highly-trafficked sites, creates a winning formula."
Schiller joins CIM from Glam Media, Inc., one of the fastest-growing women's Web properties, where he was the Executive Vice President of Global Marketing and its original Chief Revenue Officer. Earlier in his career, Schiller served as Senior Vice President of Interactive Marketing for America Online; Senior Vice-President of Strategic Partnership Marketing for the Walt Disney Internet Group (where he ran advertising sales and sponsorship for such Disney-branded sites as ABC.com, ABCNews.com, Disney.com, Family.com and ESPN.com); Vice President of Advertising and Partnership Marketing for Sony Online Ventures; Vice President of Advertising Sales for Prodigy; and account director for MTV Networks, during the cable network's earliest days.
About Comcast Interactive Media
Comcast Interactive Media (CIM), is a division of Comcast Corporation (Nasdaq: CMCSA, CMCSK) dedicated to developing and operating online and cross-platform entertainment and media businesses, including Comcast.net (www.comcast.net), one of the country's most visited websites. CIM's other properties include Fandango, a top movie and entertainment destination, selling tickets for more than 16,000 screens across the country; Fancast.com, a national online entertainment site; Movies.com, a top information site for film fans; DailyCandy, the daily e-mail newsletter and website; thePlatform, the industry-leading provider of digital media publishing solutions over broadband and wireless networks; and Plaxo, an online social networking based platform.
PHILADELPHIA, March 2 /PRNewswire/ -- With Major League Baseball spring
training underway, it's a signal for fans and advertisers that the official
season is just around the corner. The Spanish Beisbol Network (SBN) is
gearing up for the season with the addition of a new MLB team to its roster
and the extension of its marketing platform to help sponsors effectively reach
the growing Hispanic demographic.
Recently, SBN inked a five-year deal with the Oakland A's. It marks the
first time in Oakland A's history that fans will be able to listen to Spanish
broadcasts for every regular season game, home and away. SBN also has the
broadcast rights for the Boston Red Sox, Philadelphia Phillies and Washington
Nationals, and provides feeds for mlb.com and SAP-TV in some markets.
"This announcement represents a milestone for SBN," states Bill Kulik,
president of SBN. "It expands our network to the West Coast. And, it gives
us great pleasure to bring our first rate Spanish language baseball
programming to the San Francisco Bay Area Latino community. We thank our radio
station partners, KDIA and KDYA, and the Oakland A's for their tremendous
cooperation in making this deal a reality."
According to Scarborough Research, 62% of all U.S. Hispanics are MLB fans,
compared to 59% of the total population. For this reason, advertisers looking
for a low-cost, multi-platform approach to reach the Hispanic audience are
responding to the new elements that SBN has to offer. In April, SBN is
re-launching its website, http://www.beisbol.net, in conjunction with the
start of the season to be a more fan-friendly, interactive Spanish-language
baseball source. This new site will be promoted on every SBN broadcast, and
provides measureable exposure for a brand in the form of banner ads, contest
and fan poll sponsorships, branded features as well as links to an
advertiser's site.
"In addition, Latino youth baseball clinics, pre-game hospitality events,
in-game promotions, sweepstakes and online contests are just some of the ways
we're working with sponsors to develop fully integrated programs beyond the
traditional radio spot buy," says Kulik. "With 162 games, the SBN platform is
a relatively low-cost, yet effective way to connect with Hispanic sports fans
and provides the frequency needed to build brand awareness."
About Spanish Beisbol Network
The Spanish Beisbol Network (SBN) was founded in 2001 as a premier sports
media broadcasting and content company for Spanish-language sports
programming. SBN currently has contracts with the Boston Red Sox, Philadelphia
Phillies, Washington Nationals, Oakland A's and the Caribbean World Series. In
2008, SBN was acquired by Celeritas Management Inc., a portfolio management
company, based in Virginia. Celeritas partners with companies at the
intersection of sports, entertainment and lifestyle pursuits whose products
and services strike a chord with the passions of American consumers,
especially the Hispanic demographic. For more information about SBN, please
visit http://www.beisbol.net.
Contacts:
Bill Kulik, SBN President, 215-518-2376, william.kulik@beisbol.net
Beth Woerner, Celeritas Sr. VP of Marketing, 804-230-4235,
beth.woerner@celeritasmgmt.com
ENGLEWOOD, Colo., March 2 /PRNewswire-FirstCall/ -- DISH Network Corporation (Nasdaq: DISH) today reported total revenue of $2.92 billion for the quarter ended Dec. 31, 2008, a 1 percent increase compared with $2.89 billion for the corresponding period in 2007.
Net income totaled $217 million for the quarter ended Dec. 31, 2008, compared with $175 million during the corresponding period in 2007. Diluted earnings per share were $0.48 for the quarter ended Dec. 31, 2008, compared with $0.39 during the corresponding period in 2007.
For the year ended Dec. 31, 2008, DISH Network reported total revenue of $11.62 billion compared with $11.09 billion for the year ended Dec. 31, 2007, an increase of 5 percent. DISH Network's net income for the year ended Dec. 31, 2008, totaled $903 million, compared with $756 million for the year ended Dec. 31, 2007. Diluted earnings per share were $1.98 for the year ended Dec. 31, 2008, compared with $1.68 during the corresponding period in 2007.
DISH Network lost approximately 102,000 net subscribers during the quarter ended Dec. 31, 2008, giving the company approximately 13.678 million subscribers at year-end. The number of net subscribers lost for the full year ended Dec. 31, 2008 was also approximately 102,000.
Detailed financial data and other information are available in DISH Network's Form 10-K for the annual period ended Dec. 31, 2008, filed today with the Securities and Exchange Commission.
About DISH Network Corporation
DISH Network Corporation (Nasdaq: DISH) provides approximately 13.678 million satellite TV customers as of Dec. 31, 2008 with the highest quality programming and technology at the best value, including the lowest all-digital price nationwide. Customers have access to hundreds of video and audio channels, the most international channels in the U.S., state-of-the-art interactive TV applications, and award-winning HD and DVR technology including 1080p Video on Demand and the DuoDVR(TM) ViP(R) 722 DVR, a CNET and PC Magazine "Editors' Choice." DISH Network is included in the Nasdaq-100 Index (NDX) and is a Fortune 250 company. Visit www.dishnetwork.com.
DISH Network will host its Fourth Quarter and year-end 2008 financial results conference call today at noon ET. The dial-in number is (800) 616-6729.
FORT LAUDERDALE, Fla., Feb. 28 /PRNewswire/ -- Totally free, personalized fundraising consulting is now available for all Florida nonprofits 24/7 at www.fundraisershotline.com.
"Florida nonprofit fundraisers may ask anything they want - like How can I find donors? or How can I get my board to give more and to ask others to give? It's absolutely one-on-one attention. They won't be getting boilerplate answers," says Dr. Stephen L. Goldstein, creator of the hotline and president of The Nonprofit Institute, Educational Marketing Services in Fort Lauderdale.
"Nonprofits always have a hard time raising money. But many are really struggling in today's bad economy, especially in Florida. They need immediate professional advice tailored to their specific needs. But most nonprofits cannot afford to hire an expert to give them quick answers to their pressing questions. So, www.fundraisershotline.com gives them personal access to an experienced professional to be their sounding-board to increase their fundraising success," Goldstein adds.
That's what's so unique about the hotline. It's quick, efficient, direct --and free, of course. Getting answers from the hotline is simple. Go to www.fundraisershotline.com, fill out the short user form, ask a question, then send it to Dr. Goldstein. There is absolutely no cost or obligation. Every question is answered personally and within 24 hours.
Columnist, author, consultant, TV and radio personality, and workshop leader - Dr. Stephen L. Goldstein is a nationally recognized marketing, communications, and fundraising executive, as well as a trends analyst and forecaster. For more than 30 years, he has developed strategies for nonprofit success.
Dr. Goldstein is now the co-producer and host of "The Forum for Nonprofits," which airs on WNN & WSBR and may be heard 24/7 at www.forumfornonprofits.com. He was the producer and host of "Fundraising Success," a weekly radio program on WXEL, 90.7FM/National Public Radio and still available at any time from anywhere in the world at www.wxelpodcasts.org.
Dr. Goldstein's "Fundraising Guru" columns have appeared in The South Florida Sun-Sentinel and have been a regular feature of the Scripps papers on Florida's Treasure Coast. He is the author of the bestseller, 30 Days to Successful Fundraising.
Goldstein is also the developer of "Fundraising Briefing Books," the basis for the workshops and tailored consulting programs he offers nationwide.
Media contact:
Stephen Goldstern
954-772-4455
trendsman@aol.com
The Country's Newest Company to Compete with Cable and Dish Satellite
SCRANTON, Pa., Feb. 27 /PRNewswire/ -- While reports of rising unemployment rates and job cuts have dominated the news recently, a new company, Home Stations Installations, opened in West Pittston, Pennsylvania.
"For the past year, I've been working on this new business," says President/CEO Gary Zurenda of Exeter, Pennsylvania. The business has to do with DTV converter boxes and digital antennas. "I have kept it very quiet due to the fact that I'm a new company, and the cable and satellite companies are established corporations that have been around for the last 30 years. It's a great feeling knowing I can help free people from a monthly bill so they can put that savings towards their family."
Now the secret is out; he has opened a 50/100 person call center and is putting 10,000 plus installers nationwide to work immediately. Thanks to President Barack Obama, he feels confident that the government will encourage and assist the everyday person in taking the plunge into a new business during these difficult times.
"We can easily install thousands of homes per week," says Executive Director Colleen Daly. "I want my free DTV; that is what I hear most. It is important that the poor, shut-ins, and misfortunate have at least 1 television working in case of a crisis because this is the emergency frequency. I met with two high ranking Senators' offices and one high ranking Congressman's office, and they are still not sure how to help. I suggested a government coupon to the very needy." The company gives a 10% discount to seniors and veterans.
Finally, there is a national company that has professional technicians that will come to your home and hook up your products or their products for a one time affordable fee. For those that are in need, Home Stations Installations can be reached at 1-877-474-3887 or by visiting them on the web at www.iwantmyfreedtv.com. Who would ever think that cable/satellite would be a luxury -- not a necessity?
Jason Mesnick to Propose with Three-Carat Neil Lane Diamond Ring
LOS ANGELES, Feb. 27 /PRNewswire/ -- Celebrity jeweler extraordinaire Neil Lane (www.neillanejewelry.com ) adds sparkle to ABC's "The Bachelor," from Warner Horizon Television, when Jason Mesnick proposes to one lucky bachelorette on Monday, March 2nd. The top-rated reality series will come to a close as Mesnick will get down on one knee and propose with a hand-crafted Neil Lane marquise-cut diamond and platinum ring which is encrusted and set with 170 smaller diamonds for a total weight of 3.18 carats. The center diamond is a 1.94-carat marquise-cut diamond, which is D in color, a top grade, and VS1 clarity with a GIA certificate. The ring, designed by Lane, bears the signature Neil Lane script in the shank.
Mesnick who had been courting women for seven weeks on the ABC series, selected this ring from three Neil Lane designs with different cuts of diamonds, including oval and pear. Neil Lane, with a fabulous eye for elegance and style, is the favorite for Hollywood brides to be. Neil Lane has supplied engagement rings for everyone from Reese Witherspoon and Kate Hudson to Sandra Bullock, Brooke Shields and Jennifer Hudson.
As an avid collector of fine jewelry with an eye for designing pieces exuding both style and elegance, Neil Lane has earned the respect and admiration of an all-star crowd. Whether worn for the Oscars, or other red-carpet events or engagements, his iconic jewelry designs have been adorned by some of the most beautiful and powerful women in Hollywood, including Angelina Jolie, Charlize Theron, Elizabeth Taylor, Gwyneth Paltrow, Jennifer Garner, Jennifer Lopez, Madonna, and many others.
Neil Lane jewelry has graced the covers of Vogue, Harper's Bazaar, W and many other high-end fashion publications. As a leading Hollywood jewelry designer, hailed in the media as The King of Bling, the Ace of Diamonds, Neil Lane has influence and impact both domestically and internationally.
Neil Lane
708 N. La Cienega Boulevard
Los Angeles, CA 90069
For more information on Neil Lane Jewelry, please contact info@neillanejewelry.com
SHANGHAI, Feb. 27 /PRNewswire-Asia-FirstCall/ -- Acorn International, Inc.
("Acorn") (NYSE: ATV), a leading integrated multi-platform marketing company
in China, will release its financial results for the fourth quarter and fiscal
year ended December 31, 2008 before the market opens on Monday, March 9, 2009.
A copy of the earnings release will be available on the company's website at
http://www.chinadrtv.com .
Acorn's management has scheduled a conference call at 8:00 a.m. ET on
March 9, 2009 (8:00 p.m. Beijing Time) to discuss the Company's perspective on
the results and answer questions. You may access the live interactive call via:
Please dial-in approximately 10 minutes in advance to facilitate an
on-time start.
A replay will be available for approximately two weeks after the call and
may be accessed via:
-- +852 3005 2020 (International)
-- Passcode: 136511#
A live and archived webcast of the call will be available on the Company's
website at http://www.chinadrtv.com .
About Acorn
Acorn International (NYSE: 'ATV') is a leading integrated
multi-platform marketing company in China, operating China's largest TV direct
sales business in terms of revenues and TV air time and a nationwide off-TV
distribution network. Acorn's TV direct sales platform consists of airtime
purchased from both national and local channels. In addition to marketing and
selling through its TV direct sales programs and its off-TV nationwide
distribution network, Acorn also offers consumer products and services through
catalogs, an outbound telemarketing center and an e-commerce website.
Leveraging its integrated multiple sales and marketing platforms, Acorn has
built a proven track record of developing and selling proprietary-branded
consumer products, as well as products and services from established third
parties.
For further information, please contact:
Acorn International
Chen Fu, Director of Investor Relations
Tel: +86-21-5151-8888 x2228
Email: ir@chinadrtv.com
PRChina
Jane Liu
Tel: +852-2522-1838
Email: jliu@prchina.com.hk
Henry Chik
Tel: +852-2522-1368
Email: hchik@prchina.com.hk
Dr. Oetker's Ristorante will partner with the Top Chef star to introduce the great tasting, gourmet Italian restaurant style frozen pizza to American homes this summer
STUDIO CITY, Calif., Feb. 26 /PRNewswire/ -- Fans of Bravo TV's Top Chef can look forward to more flavor from the series' "Italian Stallion," Fabio Viviani. Dr. Oetker, the number one frozen pizza manufacturer in Italy, is launching its best-selling Ristorante brand in the United States and the season five star has signed on to be the spokesperson.
Fabio Viviani, who was born in Florence and recalls Dr. Oetker pizza from his childhood, will participate in a five-city media tour this summer to introduce the favorite brand of thin-crust pizza lovers throughout Europe and Canada to consumers in the northeastern United States.
"Growing up in Italy, my mom often had Dr. Oetker's products in the home so I'm excited to help introduce Ristorante brand frozen pizzas to American households," explained Viviani. "As a chef, I am very particular about the ingredients that I select. That's why I am a fan of Dr. Oetker's Ristorante pizza because it features fresh, high-quality ingredients, such as spinach, mozzarella, mushrooms and other vegetables on a thin crispy crust."
"We are eager to introduce the authentic taste of Dr. Oetker Ristorante to American pizza-lovers and feel Fabio is the perfect voice for the brand," said William Whalen, executive vice president for Dr. Oetker U.S.A., LLC. "He has an incredible personality and a real passion for cooking, eating and entertaining with great food."
Lots of Americans are eating out less often but they still want to enjoy the taste and fresh flavors like the ones featured on Top Chef or found in an Italian restaurant, such as Cafe Firenze," said Viviani.
"Dr. Oetker's Ristorante pizza is a delicious and convenient way to capture the essence of Italian restaurant dining in the home."
Northeast U.S. Products are priced from $4.99 to $5.99. To learn more about Dr. Oetker, please visit www.oetker.us.
About Fabio Viviani
Fabio is the Owner and Executive Chef of Cafe Firenze, one of the most recognized restaurants in Ventura County. Born and raised in Florence, Italy, he incorporates Italian, French and Spanish influences in his dishes and believes that cooking is a craft.
www.cafefirenze.net.
About Dr. Oetker
The Dr. Oetker company started in Germany in 1891 with the development of a special baking powder, Backin, that produced extraordinary baking results. More than 30 years ago, the first frozen pizza was launched in Germany and, today, Dr. Oetker is the market leader of frozen pizza in most European countries. In 2003, Ristorante Pizza was introduced in Canada and has continued to maintain an overwhelming amount of success in the market place. For more information about Dr. Oetker and Ristorante, please visit www.oetker.us.
MEXICO CITY, Feb. 26 /PRNewswire-FirstCall/ -- TV Azteca, S.A. de C.V.
(BMV: TVAZTCA; Latibex: XTZA), one of the two largest producers of Spanish-
language television programming in the world, announced today net sales of
Ps.2,909 million, EBITDA of Ps.1,401 million and EBITDA margin of 48% for the
fourth quarter of 2008.
"We were able to preserve the solid top line level reported in the prior
year and multiply net profit by four in the quarter, despite the difficult
economic environment," said Mario San Roman, Chief Executive Officer of TV
Azteca. "On the operating front, we further strengthened our successful
programming grid, particularly in prime time, positively influencing sales in
the period, and setting the basis for a firm market positioning in 2009."
Fourth Quarter Results
Net sales were Ps.2,909 million, practically unchanged compared to
Ps.2,898 million in the same quarter of 2007. Total costs and expenses were
Ps.1,508 million, from Ps.1,381 million in the same period of the previous
year. As a result, TV Azteca reported EBITDA of Ps.1,401 million, compared to
Ps.1,517 million in the fourth quarter of 2007. The company registered net
majority income of Ps.863 million, more than four times above the Ps.186
million in the same period of 2007.
Net Sales
"The growing popularity of our content -- especially novelas and La
Academia: Ultima Generacion -- translated into a 41% commercial audience share
in prime time in the quarter. Successful programming was key to build
effective advertising campaigns for recognized brands in Mexico, and enhanced
demand for multiple ad spaces in the period," added Mr. San Roman.
Fourth quarter revenue includes sales of Ps.62 million from Proyecto 40,
which have been consolidated in TV Azteca results beginning this year.
TV Azteca also reported net sales from Azteca America -- the company's
wholly owned broadcast television network focused on the U.S. Hispanic market
-- of Ps.194 million, compared to Ps.132 million a year ago.
Programming sales to other countries were Ps.15 million in the period,
compared to Ps.26 million the prior year. Revenue this quarter resulted from
the sale of the shows Lo que Callamos las Mujeres and Montecristo in Latin
America, and Bellezas Indomables in Europe.
Revenue from barter sales was Ps.112 million, practically unchanged from
Ps.113 million from the previous year.
Costs and Expenses
Total costs and expenses grew 9% in the quarter, as a result of a 13%
increase in programming, production and transmission costs -- to Ps.1,219
million, from Ps.1,079 million in the same period a year ago -- and a 4%
reduction in selling and administrative expenses -- to Ps.288 million,
compared to Ps.302 million in the same quarter of 2007.
The increase in costs reflects the consolidation of Proyecto 40 in TV
Azteca results, and the effect of the exchange rate depreciation on peso
disbursements of the acquired programming that was transmitted during the
quarter.
Decrease in selling and administrative expenses resulted from reductions
in operating and travel expenses, and advisory fees, as a result of
initiatives that punctually control the company's outlays.
TV Azteca continues to seek additional actions to reduce expenses, as a
response to the deceleration of the economic activity in Mexico.
EBITDA and Net Income
EBITDA was Ps.1,401 million, compared with Ps.1,517 million in the same
period of the prior year; EBITDA margin was 48%.
Below EBITDA the main changes were: i) reduction of Ps.798 million in
provision for taxes, due primarily to an extraordinary charge in the deferred
income tax a year ago, ii) decrease of Ps.80 million in other financial
expense, and iii) a Ps.60 million increase in interest paid, due to changes in
the debt balance.
Net majority income for the period was Ps.863 million, more than four
times higher than Ps.186 million a year ago.
Advertising Advances
The balance of advertising advances as of December 31, 2008 was
Ps.3,971 million, 8% above Ps.3,693 million in the prior year.
The company considers that growth in advertising advances represents a
vote of confidence of clients regarding the effectiveness of TV Azteca content
to reach target markets.
Debt
As of December 31, 2008, TV Azteca's outstanding debt -- excluding
Ps.1,621 million debt due 2069 -- was Ps.8,043 million.
Such debt is peso denominated, and of it, Ps.6,000 million are long term
Securities Certificates. The interest rate is fixed at 9.29% annually, thanks
to interest coverage for the next three years.
The cash balance was Ps.3,250 million, which resulted in net debt of
Ps.4,793 million. Debt to last twelve months (LTM) EBITDA ratio was 2.1
times, and net debt to LTM EBITDA was 1.2 times.
Twelve Months Results
Net sales in 2008 were Ps.9,815 million, 3% above the Ps.9,505 million
reported a year ago. Total costs and expenses were Ps.5,923 million, from
Ps.5,482 million in the same period in the prior year, primarily due to the
consolidation of Proyecto 40 in TV Azteca results and the production and
transmission of the Summer Olympic Games in Beijing. As a result, TV Azteca
reported EBITDA of Ps.3,893 million in the year, compared to Ps.4,022 million
in 2007. The company reported majority net income of Ps.1,054 million, from
net income of Ps.1,041 million in the prior year.
Company Profile
TV Azteca is one of the two largest producers of Spanish-language
television programming in the world, operating two national television
networks in Mexico, Azteca 13 and Azteca 7, through more than 300 owned and
operated stations across the country. TV Azteca affiliates include Azteca
America Network, a new broadcast television network focused on the rapidly
growing U.S. Hispanic market, and Azteca Web, an Internet company for North
American Spanish speakers.
TV Azteca is a Grupo Salinas company (www.gruposalinas.com), a group of
dynamic, fast growing, and technologically advanced companies focused on
creating shareholder value, and improving society through excellence. Created
by Mexican entrepreneur Ricardo B. Salinas, Grupo Salinas operates as a
management development and decision forum for the top leaders of member
companies.
Except for historical information, the matters discussed in this press
release are forward-looking statements and are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
projected. Other risks that may affect TV Azteca and its subsidiaries are
identified in documents sent to securities authorities.
TV AZTECA, S.A. DE C.V. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
(Millions of Mexican pesos of December 31, 2007 and 2008 )
Fourth Quarter of:
2007 2008
Change
Net revenue Ps 2,898 100% Ps 2,909 100% Ps 11 0%
Programming, production
and transmission costs 1,079 37% 1,219 42% 140 13%
Selling and
administrative expenses 302 10% 288 10% (13) -4%
Total costs and expenses 1,381 48% 1,508 52% 127 9%
EBITDA 1,517 52% 1,401 48% (115) -8%
Depreciation and
amortization 126 129 4
Operating profit 1,391 48% 1,272 44% (119) -9%
Other expense -Net (301) (308) (6)
Comprehensive financing
result:
Interest expense (200) (261) (60)
Other financing expense (97) (17) 80
Interest income 31 23 (8)
Exchange gain -Net 3 39 36
Gain on monetary
position 44 - (44)
(220) (216) 4
Income before the
following provision 870 30% 749 26% (121) -14%
Provision for income tax (684) 114 798
Net income Ps 187 Ps 863 Ps 676
Net income
of minority
stockholders Ps 1 Ps - Ps (1)
Net income
of majority
stockholders Ps 186 6% Ps 863 30% Ps 677 365%
TV AZTECA, S.A. DE C.V. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
(Millions of Mexican pesos of December 31, 2007, and 2008)
Year ended December 31,
2007 2008 Change
Net revenue Ps 9,505 100% Ps 9,815 100% Ps 311 3%
Programming, production
and transmission costs 4,323 45% 4,767 49% 444 10%
Selling and administrative
expenses 1,159 12% 1,156 12% (3) 0%
Total costs and expenses 5,482 58% 5,923 60% 440 8%
EBITDA 4,022 42% 3,893 40% (130) -3%
Depreciation and amortization 434 479 45
Operating profit 3,588 38% 3,414 35% (175) -5%
Other expense -Net (744) (867) (122)
Comprehensive financing result:
Interest expense (799) (868) (70)
Other financing expense (162) (119) 42
Interest income 110 93 (17)
Exchange (loss) gain -Net (10) 79 89
Gain on monetary position 70 - (70)
(790) (816) (26)
Income before the following
provision 2,053 22% 1,731 18% (323) -16%
Provision for income tax (1,013) (676) 336
Net income Ps 1,041 Ps1,055 Ps 14
Net income of minority
stockholders Ps (1) Ps 1 1
Net income of majority
stockholders Ps 1,041 11% Ps1,054 11% Ps 13 1%
TV AZTECA, S.A. DE C.V. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Millions of Mexican pesos of December 31, 2007 and 2008 )
At December 31,
2007 2008
Change
Current assets:
Cash and cash equivalents Ps 1,678 Ps 3,250 Ps 1,572
Accounts receivable 4,210 4,547 337
Other current assets 1,337 1,642 305
Total current assets 7,225 9,439 2,214 31%
Long-term accounts receivable from
Pappas 1,672 2,039 367
Exhibition rights 476 524 48
Property, plant and equipment-Net 2,985 3,242 257
Television concessions-Net 4,636 4,650 14
Other assets 1,611 1,539 (72)
Goodwill - Net 154 159 5
Deferred income tax asset 469 259 (210)
Total long term assets 12,003 12,412 409 3%
Total assets Ps 19,228 Ps 21,851 Ps 2,623 14%
Current liabilities:
Short-term debt Ps - Ps 1,984 Ps 1,984
Other current liabilities 3,760 3,225 (535)
Total current liabilities 3,760 5,209 1,449 39%
Long-term debt:
Structured Securities Certificates 6,000 6,000 -
Long-term debt - 60 60
Total long-term debt 6,000 6,060 60
Other long term liabilities:
Advertising advances 3,693 3,971 278
Exhibition rights payable 36 - (36)
American Tower Corporation (due 2069) 1,301 1,621 320
Total other long-term liabilities 5,030 5,592 562 11%
Total liabilities 14,790 16,861 2,071 14%
Total stockholders' equity 4,438 4,990 552 12%
Total liabilities and equity Ps 19,228 Ps 21,851 Ps 2,623 14%
Co-Owner Ti Adelaide Martin and Executive Chef Tory McPhail Participate in Episode
NEW ORLEANS, Feb. 25 /PRNewswire/ -- Commander's Palace, the celebrated New Orleans restaurant, welcomed Bravo's "Top Chef: New York" cast and crew for the filming of the season finale, which aired earlier this evening, Wednesday, February 25. Co-Owner Ti Adelaide Martin and Executive Chef Tory McPhail served as judges. (Co-Owner Lally Brennan was unable to join due to a prior commitment in New York City for a charity event.)
From welcoming the cast and crew for cocktails in the parlor to executing Commander's famous style of team service, the Commander's Palace family was thrilled to work with "Top Chef".
Executive Chef Tory McPhail, who turned over his kitchen to the final three contestants for the afternoon, said "My favorite moment was the look on the contestant's faces when an entire alligator was presented as the final challenge." (Chef Tory, a seasoned hunter of all game - including alligators - has prepared many an alligator dish in the Commander's kitchen.)
"We were thrilled to hear 'Top Chef' was planning to film in New Orleans and doubly so when they inquired about taping at Commander's," says Co-Owner Ti Adelaide Martin. "The dinner had all the elements of a great New Orleans-style meal: great food, well-made cocktails and repartee - the perfect combination!"
About Commander's Palace
The renowned Commander's Palace restaurant, celebrating 129 years of business, is where top chefs Paul Prudhomme, Emeril Lagasse and the late Jamie Shannon each launched their careers. Commander's Palace, recently voted "Most Popular" by Zagat Survey for the eighteenth year, has also amassed numerous awards, among them the James Beard Foundation's Lifetime Outstanding Restaurant Award, Lifetime Service Award and Who's Who of Food and Beverage Award. In March 2008, Commander's Palace Family of Restaurants was inducted into the Culinary Institute of America's Hall of Fame, one of only three families to ever win the CIA's leadership award.
Commander's Palace offers dinner from 6 p.m. to 10 p.m. daily and lunch from 11:30 a.m. to 1:30 p.m. Monday through Friday. Jazz Brunch is served 11:30 a.m. to 1 p.m. on Saturday, and 10:30 a.m. until 1:30 p.m. on Sunday. Reservations are recommended and may be made by calling (504) 899-8221.
Last Two Weeks on USA Nets Highest Ratings in Almost Seven Years
NEW YORK, Feb. 25 /PRNewswire/ -- The last two weeks on WWE MONDAY NIGHT RAW have broken ground to ratings highs not seen in almost seven years for the year-round ratings titan. The 2/16 and 2/23 episodes have delivered an average of 6.015 million total viewers, 3.028 million in P18-49, 2.9 million in P25-54, 4.055 million households and a household coverage rating of 4.1.
"Charismatic characters, high production value, intricate storylines, action-adventure, soap opera, rock concert, comedy, athleticism, and drama are all a recipe for success. When combined with the partnership of USA Network, Monday Night RAW is the undisputed champion of cable television" said Kevin Dunn, Executive Vice President, Television Production.
The two week delivery of 6 million total viewers for RAW was the first time that has happened in almost seven years -- since April 2002
RAW delivered over 3 million in P18-49 two weeks in a row, the first time that has happened in 6 /12 years -- since August 2002
This past week the 10pm hour USA was the #1 TV network among M18-34 (1.153 million) almost doubling the nearest competitor ABC. The 10pmRAW segment also drew in more M18-34 viewers for the night than Fox's 24 (9pm). USA was also #1 in the 10pm hour, above all TV channels, among M25-54 (2.262 million) and M18-49 (2.219 million) and beat CSI Miami among P18-49 (3.258 million). In the 9pm hour USA topped both ABC's The Bachelor and CBS among M18-34 (880,000) and beat The Bachelor among both M18-49 (1.1814 million) and M25-54 (1.951).
*Note: all weekly daypart and program data is Live+SD.
USA Network is the #1 network in all of basic cable and is seen in 94 million U.S. homes. A division of NBC Universal, USA is the cable television leader in original series and is home to the best in blockbuster theatrical films, acquired television series and entertainment events. The award-winning USA website is located at www.usanetwork.com. Characters Welcome.
USA Network is a program service of NBC Universal Cable a division of NBC Universal, one of the world's leading media and entertainment companies in the development, production, and marketing of entertainment, news, and information to a global audience.
DALLAS, Feb. 25 /PRNewswire/ -- IndoorDIRECT announced that it has secured a funding package that could reach $22.5 million to complete the rollout of its in-store entertainment network into 1,000 quick-service and fast-casual restaurants from its current base of 430 locations.
The funding was led by Syncom Venture Partners, a firm that specializes in media properties. Joining them were Northwood Ventures LLC and Poseidon Enterprises LLC, which also have considerable media expertise. Challenger Capital Group LTD and Haynes & Boone LLP assisted in the transaction.
The funding will allow indoorDIRECT to establish an initial national media platform of more than 10 million viewers per month in top DMAs.
"Our network is an effective way for advertisers to reach consumers for many reasons," said Bill Myers, Co-Founder and COO. "We entertain our viewers with engaging content that people enjoy watching and listening to while they are sitting, not just walking past the screens. This enables impressions to really register with viewers who are in most cases close to retail sites where they can immediately act on the messages presented to them."
"We feel that indoorDIRECT is reaching captive customers who want to be entertained," said Duane McKnight, head of Syncom Venture Partners. "In a time of TIVO and channel switching, this venue is especially effective for advertisers." Peter Schiff of Northwood Ventures LLC added, "As one of the first serious investors in this booming sector, we feel the advertising community will strongly embrace the consumer reach this network creates."
About theBITE Network
Each week indoorDIRECT creates and produces theBITE Network, the program which airs on its LCD screens in restaurant dining rooms, providing advertisers with national reach in a receptive environment. Four dynamic hosts, selected exclusively for theBITE, host the 60-minute program reporting on news, entertainment, music and sports. TheBITE features customized content for a range of interests such as music videos, NASCAR updates, college football features and content from providers including CBS, TBS, TNT, Speed and most recently NFL Network. TheBITE also features scrolling text with breaking news, sports updates and localized time and weather. Catch the latest from theBITE at www.thebitenetwork.com/STREAM.
Fred Margolin, the company's CEO, said that indoorDIRECT is pleased to be working with leading restaurant chains that have a total of more than 30,000 locations nationwide. "Our rollout to more restaurant locations will enable us to attract greater advertiser attention and we will have the opportunity to grow very quickly," he said.
"We are gratified by the positive response we've gotten from franchisors and franchisees of restaurant chains throughout the country that have installed the indoorDIRECT system," said Michael Winton, President and Co-Founder. "They immediately see the network helps store profitability and makes the dine-in experience much more enjoyable for their customers."
About indoorDIRECT
IndoorDIRECT is a powerful digital out-of-home media company providing entertainment content to high-volume quick-service and fast-casual restaurant chains across the nation. IndoorDIRECT created theBITE Network -- a combination of entertainment content and advertising tailored to reach the millions of Americans who visit quick-service and fast-casual restaurant chains every month. IndoorDIRECT LCD screens are located in restaurant dining rooms, as well as a promotional board at the point-of-purchase to highlight featured menu items. The promotional network has shown proven results that about 40 percent of the customers are influenced. The company is privately held and has its headquarters in Dallas. More information is available at www.indoordirect.com.
WASHINGTON, Feb. 25 /PRNewswire/ -- For more than two decades, car crashes have been the number one killer of teens in the United States, according to the National Highway Traffic Safety Administration (NHTSA). The Advertising Council joined today with a coalition of state Attorneys General and consumer protection agencies to launch a new series of public service advertisements (PSAs) designed to save lives by reducing youth reckless driving.
To view the Multimedia News Release, go to: http://www.prnewswire.com/mnr/adcouncil/36881/
NHTSA data shows that, on average, more than 300,000 teens are injured in car crashes each year, nearly 8,000 are involved in fatal crashes and more than 3,500 are killed. Research also shows that teen drivers are involved in more than five times as many fatal crashes as adults. Young drivers are more likely to speed, run red lights, make illegal turns and die in an SUV rollover.
First launched in January 2007, the Youth Reckless Driving Prevention campaign targets teens and young adults between the ages of 15 and 21 and encourages them to speak up when they are in the car with friends who are driving recklessly and they don't feel safe. The campaign also seeks to increase awareness about the dangers of reckless driving and educate teens on how to be safe drivers by focusing on safe speeds, avoiding distractions, wearing seat belts, and the differences associated with driving SUVs.
"This PSA campaign has a real opportunity to reach teens around the country," said Thurbert Baker, Attorney General of Georgia. "By speaking up about reckless driving, young people can save lives, both their own and those of their friends."
Research conducted by the Ad Council shows that teen drivers are more likely to listen to their friends than the adults in their lives. In a survey conducted in 2007, 8 in 10 teens said that when a friend speaks up, they will listen because they don't want to damage the friendship, be labeled a bad driver or cause harm to their friends.
Created pro bono by ad agency Y&R New York, the new television, radio, outdoor and interactive elements continue the peer-to-peer intervention strategy utilized in the first round of creative and communicate to teens "If your friend is driving recklessly, say something." The television spots feature comedians Rachel Harris, Fred Willard and Rob Riggle acting as teen passengers who humorously "speak up" to prevent a car crash.
"According to our research, since the launch of the campaign two years ago there has been a significant increase in the proportion of young adults that said they spoke up every time a friend was driving recklessly," said Peggy Conlon, President and CEO of the Ad Council. "I'm confident that this new round of PSAs, featuring comedians that appeal to our target audiences, will continue to raise awareness and inspire teens to 'speak up' when they're in a car and don't feel safe."
The PSAs direct audiences to visit www.SpeakUpOrElse.com, where they can find the motivation and tools to help them speak up. The newly redesigned site houses the PSAs and teaches teens the importance of driving safely. Additional elements to be added to the site soon include a free iPhone and iPod Touch application that turns the device into a bullhorn with flashing lights that can be used to inform a friend of his or her reckless driving. The site will also let the user send instant message videos, starring the comedians, to friends. The recipient, expecting a friend to chat, will receive a reckless driving video instead. All of these tools are designed to get the point across with humor rather than a heavy hand.
A social media program kicking off this week will help promote the campaign and website on social networking sites and blogs targeted to teens. Additionally, non-profit partners such as SADD (Students Against Destructive Decisions) will be helping to spread the message by reaching out to its 350,000 student members.
The Ad Council is distributing the new PSAs to media outlets nationwide this week. Per the Ad Council's model, the ads will run and air in time and space donated by the media. Since its launch, the campaign has received more than $44.5 million in donated support.
The Advertising Council
The Ad Council (www.adcouncil.org) is a private, non-profit organization that marshals talent from the advertising and communications industries, the facilities of the media, and the resources of the business and non-profit communities to produce, distribute and promote public service campaigns on behalf of non-profit organizations and government agencies in issue areas such as improving the quality of life for children, preventive health, education, community well-being, environmental preservation and strengthening families.
State Attorneys General and Consumer Protection Agencies
The coalition of Attorneys General and consumer protection organizations is a multi-state group comprised of the Offices of the Attorney General and Consumer Protection Agencies of all 50 states, the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands. Funds generated in a settlement with Ford Motor Company were earmarked for public education, with a focus on SUV safety tips through public service advertising such as that of the Youth Reckless Driving Prevention campaign.
Y&R New York
Y&RNY is the flagship agency of Y&R, one of the world's leading marketing communications companies. Founded in 1923, Y&R was the first agency to be founded by a creative, Raymond Rubicam. Today, the agency's work spans the communications spectrum, including viral, interactive and ambient marketing. Y&RNY is HQ for some of the agency's largest global clients, including Colgate-Palmolive, Xerox and Campbell's Soup Company, as well as clients such as UNCF (the United Negro College Fund), Rubbermaid, MetLife and Fisher-Price, among others.
- Net income from continuing operations increased to $274 million
- Free Cash Flow increased to $467 million
SILVER SPRING, Md., Feb. 25 /PRNewswire-FirstCall/ -- Discovery Communications, Inc. ("Discovery" or the "Company") (Nasdaq: DISCA, DISCB, DISCK) today reported financial results for the full year and fourth quarter ended December 31, 2008. The discussion below assumes the transaction between Discovery Holding Company ("DHC"), Discovery Communications Holding LLC ("DCH"), and Advance/Newhouse Programming Partnership that resulted in Discovery becoming a public company, as described in the Other Items section on page 5, occurred on January 1, 2007 and as such includes 100% of Discovery Communications' results for both 2008 and 2007. Please see the as adjusted financial statements beginning on page 14 for an explanation of why management believes this presentation is appropriate.
David Zaslav, Discovery's president and chief executive officer, said, "This past year was one of significant accomplishment for Discovery, as we delivered strong operating performances across our businesses and successfully transitioned to a fully public company. Strategically, we strengthened the programming and development at our fully distributed channels and finished the year with double digit ratings growth in the fourth quarter among key demos at Discovery Channel and TLC. We also established new identities for several of our emerging networks and continued our international expansion, increasing our subscriber base overseas by 16%. Most importantly, our strategic initiatives were achieved while strongly growing revenues and Adjusted OIBDA, in what are increasingly challenging times. As we execute our 2009 operating plan in a difficult economic climate, our stable foundation of contracted and growing subscription revenues, diversified international expansion and stringent focus on costs give us confidence that we will outperform the marketplace and continue to grow moving forward."
Fourth Quarter Results
Fourth quarter revenues of $904 million increased $1 million over the as adjusted(1) fourth quarter a year ago as 8% growth at U.S. Networks was mostly offset by a 23% decline in Commerce, Education and Other as well as a 4% decline at International Networks, primarily the result of a $33 million impact from foreign currency fluctuations. Adjusted Operating Income Before Depreciation and Amortization ("OIBDA") grew to $362 million, an increase of $222 million versus the fourth quarter a year ago, mainly driven by an increase of $188 million at U.S. Networks and an increase of $26 million, or 32%, at International Networks. The prior year results included a content impairment charge of $139 million, primarily at U.S. Networks. Excluding the impact of the content impairment charge, Adjusted OIBDA increased $64 million or 23% from the prior year. Adjusted OIBDA margin, excluding the impact of the content impairment charge, increased to 38% for the fourth quarter, up from 31% in the same period a year ago. Adjusted OIBDA is defined as revenue less (i) cost of revenues and selling, general and administrative expense excluding marked to market share-based compensation expense under our long-term incentive plans, (ii) restructuring and impairment charges, (iii) depreciation and amortization, including amortization of deferred launch incentives and (iv) gains on assets and business dispositions.
Fourth quarter net income from continuing operations of $105 million ($0.25 per share) grew $113 million versus the as adjusted(1) loss from continuing operations of $8 million ($0.03 per share) a year ago.
Free cash flow was $128 million for the fourth quarter, an increase of $24 million from the as adjusted(1) results in the same period for 2007. Free cash flow is defined as cash flows from operating activities less acquisitions of property and equipment.
Full Year Results
Full year 2008 revenues of $3,443 million increased 10% or $302 million over the as adjusted(1) revenues for 2007, primarily driven by 10% growth at U.S. Networks and 12% growth at International Networks. Adjusted OIBDA increased 49% to $1,310 million led by 37% growth at U.S. Networks and 52% growth at International Networks. The prior year results included a content impairment charge of $139 million, primarily at U.S. Networks. Excluding the impact of the content impairment charge, Adjusted OIBDA increased $216 million or 21% from the prior year and Adjusted OIBDA margin grew to 38% in 2008, up from 28% in 2007.
Full year net income from continuing operations of $274 million ($0.85 per share) grew $123 million versus the as adjusted results(1) of $151 million ($0.54 per share) a year ago. The increased results primarily reflect the higher Adjusted OIBDA as well as a $69 million benefit in the current year related to the unrealized change in the fair value of the marked to market share-based compensation, which was an expense of $141 million in the prior year.
Free cash flow was $467 million for 2008, an increase of $295 million from the as adjusted(1) results in 2007.
(1) See the as adjusted financial statements beginning on page 14 for
2007 results.
SEGMENT RESULTS
(dollars in millions) Three Months Ended Twelve Months Ended
December 31, December 31,
2008 2007 Change 2008 2007 Change
(As adjusted) (As adjusted)
Revenues (1)(2)(3):
U.S. Networks $536 $498 8% $2,062 $1,879 10%
International
Networks 294 307 (4%) 1,158 1,030 12%
Commerce, Education,
and Other 70 91 (23%) 196 225 (13%)
Corporate 4 7 (43%) 27 7 286%
Total Revenues $904 $903 - $3,443 $3,141 10%
Adjusted OIBDA (1)(2)(3):
U.S. Networks $300 $112 168% $1,111 $810 37%
International
Networks 107 81 32% 387 254 52%
Commerce, Education,
and Other 11 - - 13 4 225%
Corporate (56) (53) 6% (201) (189) 6%
Total Adjusted OIBDA $362 $140 159% $1,310 $879 49%
(1) 2007 excludes Travel Channel results through its disposition on May
14, 2007. See the supplemental financial schedules on page 11 for
Travel Channel results.
(2) All results exclude the Discovery Channel Stores which ceased
operations in the third quarter of 2007 and have been treated as part
of discontinued operations.
(3) See the supplemental financial schedules on pages 12 to 18 for reconciliations of
Adjusted OIBDA to operating income as well as 2007 financial data to
previously reported results from Discovery Holding Company.
U.S. Networks
(dollars in millions) Three Months Ended Twelve Months Ended
December 31, December 31,
2008 2007 Change 2008 2007 Change
(As adjusted) (As adjusted)
Revenues:
Distribution $236 $209 13% $927 $840 10%
Advertising 282 265 6% 1,058 975 9%
Other 18 24 (25%) 77 64 20%
Total Revenues $536 $498 8% $2,062 $1,879 10%
Adjusted OIBDA $300 $112 168% $1,111 $810 37%
Adjusted OIBDA
Margin 56% 22% 54% 43%
Fourth Quarter Results
U.S. Networks' revenue in the fourth quarter of 2008 increased 8% to $536 million primarily driven by distribution and advertising revenue growth. Distribution revenue grew 13% largely from higher rates across the fully distributed networks, subscriber growth at the emerging networks and lower launch-support amortization. Advertising revenue increased 6% from higher pricing as well as increased ratings at Discovery Channel and TLC, which satisfied prior period ratings shortfalls.
Adjusted OIBDA increased $188 million to $300 million reflecting the 8% revenue growth and lower operating expenses, primarily due to the impairment charge of $129 million taken in the fourth quarter a year ago, which also resulted in a $19 million decline in content amortization expense in the current quarter as compared to prior year. Excluding the impact of the impairment charge taken a year ago, programming expense increased $16 million and Adjusted OIBDA grew $40 million or 17%.
Full Year Results
U.S. Networks' revenue for the full year 2008 increased 10% to $2,062 million mainly driven by distribution and advertising revenue growth. Distribution revenue grew 10% largely from higher rates across the fully distributed networks, subscriber growth at the emerging networks and lower launch-support amortization. 2008 distribution revenues also include $8 million of one-time revenue related to accruals in prior periods for certain distributors. Advertising revenue increased 9% as compared with 2007 as a result of pricing and higher sellouts, partially offset by lower ratings at TLC and Discovery Channel. Additionally, other revenue grew 20% reflecting Discovery's sales representation of Travel Channel and an increase in digital revenue, primarily from the inclusion of HowStuffWorks, which was acquired in December 2007.
Adjusted OIBDA increased 37% to $1,111 million reflecting the 10% revenue growth and 12% lower operating expenses, primarily due to the content impairment charge of $129 million taken in the fourth quarter of 2007, which also resulted in a $76 million decline in content amortization expense in the current year as compared to the prior year. Excluding the impact of the impairment charge taken a year ago, programming expense increased $49 million and Adjusted OIBDA grew $96 million or 10%. Full year results also include a content impairment charge of $17 million related to the management team reorganization at TLC during the third quarter of 2008.
International Networks
(dollars in millions) Three Months Ended Twelve Months Ended
December 31, December 31,
2008 2007 Change 2008 2007 Change
(As adjusted) (As adjusted)
Revenues:
Distribution $165 $168 (2%) $713 $615 16%
Advertising 99 112 (12%) 336 330 2%
Other 30 27 11% 109 85 28%
Total Revenues $294 $307 (4%) $1,158 $1,030 12%
Adjusted OIBDA $107 $81 32% $387 $254 52%
Adjusted OIBDA Margin 36% 26% 33% 25%
Fourth Quarter Results
International Networks' revenue for the fourth quarter decreased 4% to $294 million as the $33 million impact of foreign currency fluctuations resulted in a 2% decline in distribution revenue and a 12% decline in advertising revenue. Excluding the impact of foreign currency fluctuations, revenues increased 6% led by 8% affiliate revenue growth, primarily from subscriber increases in EMEA (Europe (excluding U.K.), Middle East and Africa) and Latin America. Advertising revenue in local currency terms was flat as strong growth in EMEA and Latin America was offset by lower advertising revenue in the U.K. due to lower rates as well as the interpretation of a contract provision resulting in a limitation in our ability to monetize our audience. Excluding the U.K., advertising revenue in local currency terms increased 14% over the fourth quarter a year ago at International Networks.
Adjusted OIBDA increased 32% to $107 million as the 4% revenue decline was more than offset by an 18% decline in operating expenses. Excluding the impact of foreign currency, Adjusted OIBDA increased 36% reflecting 6% revenue growth and a 4% decline in operating expenses as increased programming expenses were more than offset by lower marketing and research costs.
Full Year Results
International Networks' revenue for the full year 2008 increased 12% to $1,158 million led by 16% distribution revenue growth primarily from subscriber increases in EMEA (Europe (excluding U.K.), Middle East and Africa) and Latin America. Advertising revenue increased 2% as strong growth in EMEA and Latin America was offset by lower advertising revenue in the U.K. due to lower rates as well as an interpretation of a contract provision. Excluding the U.K., advertising revenue in local currency terms increased 22% over 2008 at International Networks. The full year also included 28% growth in other revenue driven by the sale of Discovery Networks programs in the U.K. and Canada.
Adjusted OIBDA increased 52% to $387 million reflecting the 12% revenue growth and a 1% decline in operating expenses as lower marketing and research costs were mostly offset by increased programming and personnel costs. Excluding foreign currency fluctuations, revenues increased 12% and Adjusted OIBDA increased 45% versus 2007. The full year impact of foreign currency increased revenues by $7 million and Adjusted OIBDA by $17 million.
Commerce, Education, and Other
(dollars in millions) Three Months Ended Twelve Months Ended
December 31, December 31,
2008 2007 Change 2008 2007 Change
(As adjusted) (As adjusted)
Revenues $70 $91 (23%) $196 $225 (13%)
Adjusted OIBDA $11 $- - $13 $4 225%
Adjusted OIBDA Margin 16% -% 7% 2%
Fourth Quarter Results
Commerce, Education and Other fourth quarter revenue decreased 23% to $70 million primarily reflecting lower commerce revenues as compared to the same period a year ago, which included stronger DVD sales of Planet Earth. Adjusted OIBDA increased to $11 million as compared with the break even results in the fourth quarter a year ago as the revenue decline at commerce was mostly offset by lower operating costs as compared to prior year. Additionally, prior year results included an impairment charge of $10 million at education. The current quarter results also include revenues of $20 million and Adjusted OIBDA of $1 million for Creative Sound Services which was flat with the results a year ago.
Full Year Results
Commerce, Education and Other full year 2008 revenue decreased 13% to $196 million primarily reflecting lower commerce revenues as compared to the same period a year ago, which included stronger DVD sales of Planet Earth, partially offset by higher education revenues from the streaming of new products as well as assessment, sponsorship and licensing deals. Adjusted OIBDA increased $9 million to $13 million as the revenue decline was offset by lower operating costs, primarily at education, due to an impairment charge of $10 million in the prior year,. The current year results include revenues of $75 million and Adjusted OIBDA of $4 million for Creative Sound Services, which was flat with the results a year ago.
Corporate
For the full year 2008 Adjusted OIBDA decreased $12 million as a result of an increase in Corporate expenses, primarily due to costs associated with the transaction described in Other Items as well as costs related to the OWN joint venture.
OTHER ITEMS
In September 2008, Discovery Holding Company, Inc. ("DHC") and Advance/Newhouse Programming Partnership ("Advance/Newhouse") closed a transaction that included the combination of DHC's approximate 67% interest in Discovery Communications Holding, LLC ("DCH") with Advance/Newhouse's approximate 33% interest in DCH. In connection with the transaction, DHC spun-off its interests in Ascent Media Corporation except for certain businesses that provide sound-related services, which remain with Discovery. As a result of the transaction, DHC ceased to be a reporting company and Discovery became the successor reporting entity to DHC. The attached consolidated statements of operations, consolidated balance sheets and consolidated statements of cash flows assume the above transaction occurred as of January 1, 2008, in accordance with generally accepted accounting principles (GAAP). The prior year results included in the attached financial statements reflect the previously reported results of DHC, which accounted for its interest in DCH in equity in earnings of unconsolidated affiliates. Additionally, the results of Ascent Media Corporation with the exception of the Creative Sound Services business have been treated as discontinued operations for 2008 and 2007. See our Form 10-K filed with the Securities and Exchange Commission on February 25, 2009 for a more detailed description of the transaction and for further explanation of the financial statement presentation. See the supplemental financial schedules beginning on page 14 for a reconciliation of DHC's previously reported results to as adjusted financial statements for 2007.
FULL YEAR 2009 OUTLOOK
For the full year ended December 31, 2009, Discovery Communications expects total revenue between $3,375 million and $3,500 million, Adjusted OIBDA between $1,300 million and $1,400 million and net income from continuing operations of $475 million to $575 million. Our outlook incorporates current foreign exchange rates for revenues and expenses and current share price for marked to market equity based compensation calculations while excluding the impact of OWN. It is expected that $70 to $80 million will be invested in OWN in 2009 but the income statement impact will depend on the timing of the launch.
NON-GAAP FINANCIAL MEASURES
Adjusted OIBDA and Free Cash Flow
In addition to the results prepared in accordance with GAAP provided in this release, the Company has presented Adjusted OIBDA and free cash flow. The Company defines Adjusted OIBDA as revenue less (i) cost of revenues and selling, general and administrative expense excluding marked to market share-based compensation expense under our long-term incentive plans, (ii) restructuring and impairment charges, (iii) amortization of deferred launch incentives, and (iv) gain on asset and business dispositions. The Company excludes share-based compensation under long-term incentive plans due to its significant volatility from being marked-to-market. The Company excludes the amortization of deferred launch incentive payments because these payments are infrequent and the amortization does not represent cash payments in the current reporting period. In addition to these items, Adjusted OIBDA also excludes depreciation and amortization, restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Management uses Adjusted OIBDA to assess the operational strength and performance of its operating segments, as well as the Company as a whole, and to view operating results, perform analytical comparisons, identify strategies to improve performance and allocate resources to each operating segment. The Company believes Adjusted OIBDA is an important measure to investors because it allows them to analyze operating performance of each business and the Company overall using the same metric management uses and provides investors a measure to analyze operating performance of each business division and the Company overall against historical data.
The Company defines free cash flow as cash provided by operations less acquisitions of property and equipment. The Company uses free cash flow as it believes it is an important indicator for management and investors of the Company's liquidity, including its ability to reduce debt, make strategic investments and return capital to shareholders.
Since Adjusted OIBDA and free cash flow are non-GAAP measures, they should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance reported in accordance with GAAP. Please review the supplemental financial schedules beginning on page 11 for reconciliations to GAAP measures.
2007 Results
See page 14 for an explanation of how as adjusted results for 2007 have been calculated and why management believes this presentation would be meaningful to investors.
Travel Channel
The Company presents 2007 results without the Travel Channel, which was exchanged on May 14, 2007. See our Form 10-K filed with the Securities and Exchange Commission on February 25, 2009 for a more detailed description of this transaction. Management believes this presentation is useful to investors because it allows them to analyze operating performance of the U.S. Networks and total company against comparable historical data. See page 11 for reconciliation to results including Travel Channel.
Conference Call Information
Discovery Communications will host a conference call today at 8:30 a.m. EST to discuss its full year and fourth quarter 2008 results. To listen to the call, visit http://www.discoverycommunications.com.
This press release contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. These statements are based on information available to the Company as of the date hereof, and the Company's actual results could differ materially from those stated or implied, due to risks and uncertainties associated with its business, which include the risk factors disclosed in its Annual Report on Form 10-K filed with the SEC on February 25, 2009. Forward-looking statements include statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future, and can be identified by forward-looking words such as "anticipate," "believe," "could,", "continue," "estimate," "expect," "intend," "may," "should," "will" and "would" or similar words. Forward-looking statements in this release include, without limitation, the full year 2009 outlook. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
DISCOVERY COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; amounts in millions, except per share amounts)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2008 2007(a) 2008 2007(a)
Revenues:
Distribution $401 $- $1,640 $-
Advertising 382 - 1,396 -
Other 121 17 407 76
Total revenues 904 17 3,443 76
Operating costs and expenses:
Cost of revenues, excluding
depreciation and amortization
listed below 266 16 1,024 60
Selling, general and
administrative 270 5 1,115 22
Depreciation and
amortization 40 1 186 3
Impairment of intangible
assets 30 - 30 -
Exit and restructuring charges 14 - 31 -
Gains on asset dispositions - (1) - (1)
Total operating costs and expenses 620 21 2,386 84
Operating income (loss) 284 (4) 1,057 (8)
Other (expense) income:
Equity in (loss) earnings of
Discovery Communications
Holding, LLC - (16) - 142
Equity in loss of
unconsolidated affiliates (59) - (61) -
Interest expense, net (60) - (256) -
Other, net 16 2 14 8
Total other (expense) income, net (103) (14) (303) 150
Income (loss) from
continuing operations
before income taxes and
minority interests 181 (18) 754 142
(Provision for) benefit from
income taxes (67) 6 (352) (56)
Minority interests, net of tax (9) - (128) -
Income (loss) from
continuing operations 105 (12) 274 86
Income (loss) from discontinued
operations, net of tax 1 (158) 43 (154)
Net income (loss) $106 $(170) $317 $(68)
Income (loss) per share from
continuing operations:
Basic $0.25 $(0.04) $0.85 $0.31
Diluted $0.25 $(0.04) $0.85 $0.31
(Loss) income per share from
discontinued operations:
Basic $- $(0.56) $0.13 $(0.55)
Diluted $- $(0.56) $0.13 $(0.55)
Net income (loss) per share:
Basic $0.25 $(0.60) $0.99 $(0.24)
Diluted $0.25 $(0.60) $0.98 $(0.24)
Weighted average number of
shares outstanding:
Basic 422 281 321 281
Diluted 422 281 322 281
(a) The 2007 results presented are on a GAAP basis and are those of our
predecessor, Discovery Holding Company, which accounted for its
investment in DCH using the equity method. See page 15 for the as
adjusted statement of operations for the three months ended December
31, 2007 and page 16 for the as adjusted statement of operations for
the twelve months ended December 31, 2007.
DISCOVERY COMMUNICATIONS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited; amounts in millions)
As of December 31,
ASSETS 2008 2007(a)
Current assets:
Cash and cash equivalents $100 $8
Receivables, net 780 10
Content rights, net 73 -
Deferred income taxes 49 -
Prepaid expenses and other current assets 107 2
Assets of discontinued operations - 352
Total current assets 1,109 372
Investment in Discovery Communications Holding, LLC - 3,272
Noncurrent content rights, net 1,163 -
Property and equipment, net 395 5
Goodwill 6,891 1,782
Intangible assets, net 716 1
Other noncurrent assets 210 -
Assets of discontinued operations - 434
Total assets $10,484 $5,866
LIABILITIES, REDEEMABLE INTERESTS
IN SUBSIDIARIES, AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $71 $1
Accrued liabilities 350 5
Deferred revenues 93 -
Current portion of long-term
incentive plan liability 8 -
Current portion of long-term
debt 458 -
Other current liabilities 90 2
Liabilities of discontinued
operations - 112
Total current liabilities 1,070 120
Long-term incentive plan
liability 15 -
Long-term debt 3,331 -
Deferred income taxes 246 1,227
Other noncurrent liabilities 237 1
Liabilities of discontinued
operations - 23
Total liabilities 4,899 1,371
Commitments and contingencies - -
Redeemable interests in
subsidiaries 49 -
Stockholders' equity:
Preferred stock 2 -
Common stock 3 3
Additional paid-in capital 6,545 5,728
Accumulated deficit (936) (1,253)
Accumulated other
comprehensive (loss) income (78) 17
Total stockholders' equity 5,536 4,495
Total liabilities, redeemable
interests in subsidiaries,
and stockholders' equity $10,484 $5,866
(a) The 2007 results presented are on a GAAP basis and are those of our
predecessor, Discovery Holding Company, which accounted for its
investment in DCH using the equity method. See page 17 for the
December 31, 2007 as adjusted balance sheets.
DISCOVERY COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited; amounts in millions)
Twelve Months Ended
December 31,
2008 2007(a)
Operating activities
Net income (loss) $317 $(68)
Adjustments to reconcile net income (loss) to cash
provided by operating activities:
Share-based compensation (benefit) expense (66) 1
Depreciation and amortization 232 68
Impairment of goodwill - 165
Impairment of intangible assets 30 -
Gains on asset dispositions (76) (1)
Equity in earnings of Discovery Communications
Holding, LLC - (142)
Equity in loss of unconsolidated affiliates 61 -
Deferred income taxes 190 56
Minority interests, net of tax 128 -
Other non cash expenses (income), net 69 (8)
Changes in operating assets and liabilities, net of
discontinued operations:
Receivables, net (45) 4
Content rights, net (145) -
Accounts payable and accrued liabilities (46) (11)
Other, net (80) (6)
Cash provided by operating activities 569 58
Investing activities
Purchases of property and equipment (102) (47)
Proceeds from business and asset dispositions 139 2
Net cash acquired from Newhouse Transaction 45 -
Business acquisitions, net of cash acquired (8) -
Proceeds from sale of securities 24 28
Other investing activities, net - 2
Cash provided by (used in) investing activities 98 (15)
Financing activities
Ascent Media Corporation spin-off (356) -
Net repayments of revolver loans (125) -
Principal repayments of long-term debt (257) -
Principal repayments of capital lease obligations (29) -
Net cash from stock option exercises - 13
Other financing activities, net (7) (1)
Cash (used in) provided by financing activities (774) 12
Effect of exchange rate changes on cash and cash
equivalents (2) -
Change in cash and cash equivalents (109) 55
Cash and cash equivalents of continuing operations,
beginning of period 8 1
Cash and cash equivalents of discontinued operations,
beginning of period 201 153
Cash and cash equivalents, end of period $100 $209
(a) The 2007 results presented are on a GAAP basis and are those of our
predecessor, Discovery Holding Company, which accounted for its
investment in DCH using the equity method. See page 18 for the
twelve months ended December 31, 2007 as adjusted statement of cash
flows.
DISCOVERY COMMUNICATIONS, INC.
SUPPLEMENTAL FINANCIAL DATA
RECONCILIATION OF TRAVEL CHANNEL RESULTS
(unaudited; amounts in millions)
Twelve Months Ended December 31, 2007(a)
U.S. Networks Excluding Travel U.S. Networks Including
Travel Channel Channel Travel Channel
Revenues:
Distribution $840 $22 $862
Advertising 975 40 1,015
Other 64 - 64
Total Revenues $1,879 $62 $1,941
Adjusted OIBDA $810 $20 $830
Twelve Months Ended December 31, 2007(a)
Total Company Excluding Travel Total Company Including
Travel Channel Channel Travel Channel
Revenues:
Distribution $1,455 $22 $1,477
Advertising 1,305 40 1,345
Other 381 - 381
Total Revenues $3,141 $62 $3,203
Adjusted OIBDA $879 $20 $899
(a) The 2007 results presented are as adjusted. See page 14 for an
explanation of how these results have been calculated and why
management believes this presentation would be meaningful to
investors.
DISCOVERY COMMUNICATIONS, INC.
SUPPLEMENTAL FINANCIAL DATA
RECONCILIATION OF ADJUSTED OPERATING INCOME BEFORE
DEPRECIATION AND AMORTIZATION
(unaudited; amounts in millions)
Three Months Ended December 31, 2008
Adjusted
Operating Marked
Income to
Before Amortization Market
Depreciation Depreciation of Cable Share-
and and Distribution Based Other Operating
Amortization Amortization Investments Compensation (b) Income
U.S.
Networks $300 $(16) $(8) $(4) $(38) $234
Inter-
national
Networks 107 (11) (8) - (2) 86
Commerce,
Education,
and Other 11 (2) - - (2) 7
Corporate (56) (11) - 26 (2) (43)
Total $362 $(40) $(16) $22 $(44) $284
Three Months Ended December 31, 2007(a)
Adjusted
Operating Marked
Income to
Before Amortization Market
Depreciation Depreciation of Cable Share-
and and Distribution Based Other Operating
Amortization Amortization Investments Compensation (c) Income
U.S.
Networks $112 $(9) $(14) $- $- $89
Inter-
national
Networks 81 (10) (11) - (2) 58
Commerce,
Education,
and Other - (4) - - (1) (5)
Corporate (53) (14) - (11) - (78)
Total $140 $(37) $(25) $(11) $(3) $64
(a) The 2007 results presented are as adjusted and include Travel Channel
results. See page 14 for an explanation of how these results have
been calculated and why management believes this presentation would
be meaningful to investors.
(b) For the three months ended December 31, 2008, Other includes write-
offs of intangible assets and costs related to employee terminations
and relocation.
(c) For the three months ended December 31, 2007, Other includes costs
related to employee terminations due to a number of organizational
and strategic adjustments.
DISCOVERY COMMUNICATIONS, INC.
SUPPLEMENTAL FINANCIAL DATA
RECONCILIATION OF ADJUSTED OPERATING INCOME BEFORE
DEPRECIATION AND AMORTIZATION
(unaudited; amounts in millions)
Twelve Months Ended December 31, 2008
Adjusted
Operating Marked
Income to
Before Amortization Market
Depreciation Depreciation of Cable Share-
and and Distribution Based Other Operating
Amortization Amortization Investments Compensation (b) Income
U.S.
Networks $1,111 $(56) $(34) $(4) (51) $966
Inter-
national
Networks 387 (43) (41) - (2) 301
Commerce,
Education,
and Other 13 (9) - - (6) (2)
Corporate (201) (78) - 73 (2) (208)
Total $1,310 $(186) $(75) $69 (61) $1,057
Twelve Months Ended December 31, 2007(a)
Adjusted
Operating Marked
Income to
Before Amortization Market
Depreciation Depreciation of Cable Share-
and and Distribution Based Other Operating
Amortization Amortization Investments Compensation (c) Income
U.S.
Networks $830 $(28) $(56) $- $- $746
Inter-
national
Networks 254 (36) (44) - (2) 172
Commerce,
Education,
and Other 4 (17) - - (27) (40)
Corporate (189) (53) - (141) 119 (264)
Total $899 $(134) $(100) $(141) $90 $614
(a) The 2007 results presented are as adjusted and include Travel Channel
results. See page 14 for an explanation of how these results have
been calculated and why management believes this presentation would
be meaningful to investors.
(b) For the twelve months ended December 31, 2008, Other at U.S. Networks
includes write-offs of intangible assets as well as costs related to
employee relocation and termination of a production agreement.
Commerce, Education, and Other includes costs related to closure of
Commerce's distribution center and stores headquarter offices.
(c) For the twelve months ended December 31, 2007, Other at Commerce,
Education, and Other includes write-offs of intangible assets.
Corporate represents a gain on the disposition of a business offset
by costs related to employee terminations due to a number of
organizational and strategic adjustments.
DISCOVERY COMMUNICATIONS, INC.
SUPPLEMENTAL FINANCIAL DATA
AS ADJUSTED FINANCIAL RESULTS
(unaudited; amounts in millions)
The following as adjusted financial statements assume the transactions between DHC, DCH and Advance/Newhouse were completed as of January 1, 2007. The as adjusted results do not purport to be indicative of the results that would have been obtained if these events had been completed by January 1, 2007. See our Form 10-K filed with the Securities and Exchange Commission on February 25, 2009 for a more detailed description of the transaction and for further explanation of the financial statement presentation.
The as adjusted financial statements for 2007 have not been prepared in accordance with GAAP. Management believes that this presentation is meaningful to investors, because it presents the results of Discovery, the reporting successor to DHC. Discovery will be the reporting entity going forward and a comparison of DHC's results for 2007 to Discovery's results for 2008 would not provide investors with meaningful information regarding changes in financial performance of Discovery from 2007 to 2008.
The information in the DHC historical and DCH historical columns in the following as adjusted financial statements is derived from the historical financial statements of DHC and Discovery Communications, Holding, LLC, respectively. Certain reclassifications, with no impact to operating income, have been made to the 2007 financial information to conform to the 2008 presentation.
DISCOVERY COMMUNICATIONS, INC.
RECONCILIATION OF DISCOVERY HOLDING COMPANY HISTORICAL
TO DISCOVERY COMMUNICATIONS, INC.
(unaudited; amounts in millions, except per share amounts)
Three Months Ended December 31, 2007
Less:
Add: Minority Discovery
DHC DCH Interest As
Historical(a) Historical Adjustment Adjusted
Revenues:
Distribution $- $377 $- $377
Advertising - 377 - 377
Other 17 132 - 149
Total revenues 17 886 - 903
Operating costs and expenses:
Cost of revenues, excluding
depreciation and
amortization listed below 16 431 - 447
Selling, general and
administrative 5 347 - 352
Depreciation and amortization 1 36 - 37
Exit and restructuring charges - 4 - 4
Gains on asset dispositions (1) - - (1)
Total operating costs and expenses 21 818 - 839
Operating (loss) income (4) 68 - 64
Other (expense) income:
Equity in loss of Discovery
Communications
Holding, LLC (16) - 16 (b) -
Equity in earnings of
unconsolidated affiliates - 3 - 3
Interest expense, net - (70) - (70)
Other, net 2 (12) - (10)
Total other expense, net (14) (79) 16 (77)
Loss from continuing operations
before income taxes and minority
interests (18) (11) 16 (13)
Benefit from (provision for)
income taxes 6 (3) - 3
Minority interests, net of tax - (6) 8 (c) 2
Loss from continuing operations (12) (20) 24 (8)
Loss from discontinued operations (158) (4) - (162)
Net loss $(170) $(24) $24 $(170)
Loss per share from continuing
operations, basic and diluted $(0.04) $(0.03)
Loss per share from discontinued
operations, basic and diluted $(0.56) $(0.58)
Net loss per share, basic and
diluted $(0.60) $(0.61)
Weighted average number of shares
outstanding, basic and diluted
281 281
(a) DHC results of operations include DHC corporate costs and the
results of Creative Sound Services, with the results of Ascent
Media Corporation recorded as discontinued operations.
(b) Represents the elimination of DHC's historical share of earnings
of DCH for the three months ended December 31, 2007.
(c) Represents the minority interest expense for the proportion of
DCH's historical share of earnings not recognized by DHC for the
three months ended December 31, 2007.
DISCOVERY COMMUNICATIONS, INC.
RECONCILIATION OF DISCOVERY HOLDING COMPANY HISTORICAL
TO DISCOVERY COMMUNICATIONS, INC.
(unaudited; amounts in millions, except per share amounts)
Twelve Months Ended December 31, 2007
Less:
Add: Minority Discovery
DHC DCH Interest As
Historical(a) Historical Adjustment Adjusted
Revenues:
Distribution $- $1,477 $- $1,477
Advertising - 1,345 - 1,345
Other 76 305 - 381
Total revenues 76 3,127 - 3,203
Operating costs and expenses:
Cost of revenues, excluding 60 1,167 - 1,227
depreciation and amortization
listed below
Selling, general and 22 1,296 - 1,318
administrative
Depreciation and amortization 3 131 - 134
Asset impairment - 26 - 26
Exit and restructuring charges - 20 - 20
Gains on asset and business
dispositions (1) (135) - (136)
Total operating costs and
expenses 84 2,505 - 2,589
Operating (loss) income (8) 622 - 614
Other income (expense):
Equity in earnings of Discovery
Communications Holding, LLC 142 - (142)(b) -
Equity in earnings of
unconsolidated affiliates - 9 - 9
Interest expense, net - (249) - (249)
Other, net 8 (10) - (2)
Total other income (expense),
net 150 (250) (142) (242)
Income from continuing
operations before income
taxes and minority interests 142 372 (142) 372
Provision for income taxes (56) (77) - (133)
Minority interests, net of tax - (8) (80)(c) (88)
Income from continuing operations 86 287 (222) 151
Loss from discontinued operations,
net of tax (154) (65) - (219)
Net (loss) income $(68) $222 $(222) $(68)
Income per share from
continuing operations,
basic and diluted $0.31 $0.54
Loss per share from
discontinued operations,
basic and diluted $(0.55) $(0.78)
Net loss per share,
basic and diluted $(0.24) $(0.24)
Weighted average number of
shares outstanding, basic
and diluted 281 281
(a) DHC results of operations include DHC corporate cost and the
results of Creative Sound Services, while the results of Ascent
Media Corporation are included in net loss from discontinued
operations.
(b) Represents the elimination of DHC's historical share of earnings
of DCH for the twelve months ended December 31, 2007.
(c) Represents the minority interest expense for the proportion of DCH's
historical share of earnings not recognized by DHC for the twelve
months ended December 31, 2007.
DISCOVERY COMMUNICATIONS, INC.
RECONCILIATION OF DISCOVERY HOLDING COMPANY HISTORICAL
TO DISCOVERY COMMUNICATIONS, INC.
(unaudited; amounts in millions)
As of December 31, 2007
Add: Less: Other
DHC DCH Adjustments Discovery,
Historical Historical (a) As adjusted
ASSETS
Current assets:
Cash and cash
equivalents $8 $45 $- $53
Receivables, net 10 742 - 752
Content rights, net - 79 - 79
Deferred income taxes - 104 - 104
Prepaid expenses and
other current assets 2 107 - 109
Assets of discontinued
operations 352 - (352) -
Total current assets 372 1,077 (352) 1,097
Investment in Discovery
Communications Holding,
LLC 3,272 - (3,272) -
Investments - 101 - 101
Noncurrent content rights,
net - 1,048 46 1,094
Property and equipment, net 5 397 - 402
Goodwill 1,782 4,870 475 7,127
Intangible assets, net 1 182 277 460
Other noncurrent assets - 285 - 285
Assets of discontinued
operations 434 - (434) -
Total assets $5,866 $7,960 $(3,260) $10,566
LIABILITIES, REDEEMABLE
INTERESTS IN SUBSIDIARIES,
AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1 $98 $- $99
Accrued liabilities 5 435 - 440
Deferred revenues - 78 - 78
Current portion of
long-term incentive
plan liability - 141 - 141
Current portion of
long-term debt - 32 - 32
Other current liabilities 2 66 115 183
Liabilities of discontinued
operations 112 - (112) -
Total current liabilities 120 850 3 973
Long-term debt - 4,109 - 4,109
Deferred income taxes 1,227 11 (1,106) 132
Other noncurrent
liabilities 1 233 - 234
Liabilities of discontinued
operations 23 - (23) -
Total liabilities 1,371 5,203 (1,126) 5,448
Commitments and
contingencies - - - -
Redeemable interests in
subsidiaries - 49 - 49
Stockholders' equity:
Common stock 3 - - 3
Members' equity - 2,533 (2,533) -
Additional paid-in
capital 5,728 - 586 6,314
Accumulated deficit (1,253) 185 (185) (1,253)
Accumulated other
comprehensive income
(loss) 17 (10) (2) 5
Total stockholders'
equity 4,495 2,708 (2,134) 5,069
Total liabilities,
redeemable interests in
subsidiaries, and
stockholders' equity $5,866 $7,960 $(3,260) $10,566
(a) Represents elimination of Ascent Media Corporation, excluding
Creative Sound Services, as well as DHC's historical investment
in DCH.
DISCOVERY COMMUNICATIONS, INC.
RECONCILIATION OF DISCOVERY HOLDING COMPANY HISTORICAL
TO DISCOVERY COMMUNICATIONS, INC.
(unaudited; amounts in millions)
Twelve Months Ended December 31, 2007
DHC As Discovery
reported DCH As adjusted
Operating activities
Net loss $(68) $- $(68)
Adjustments to reconcile
net loss to
cash provided by
operating activities 139 459 598
Changes in operating
assets and liabilities,
net of discontinued
operations (13) (217) (230)
Cash provided by
operating activities 58 242 300
Investing activities
Purchases of property and
equipment (47) (81) (128)
Proceeds from asset
dispositions 2 - 2
Business acquisitions,
net of cash acquired - (306) (306)
Proceeds from sale of
securities 28 - 28
Other investing
activities, net 2 (44) (42)
Cash used in investing
activities (15) (431) (446)
Financing activities
Borrowings from long-term
debt - 1,500 1,500
Net repayments of revolver
loans - (2) (2)
Principal repayments of
long-term debt - (8) (8)
Principal repayments of
capital lease
obligations - (6) (6)
Repurchase of members'
interests - (1,285) (1,285)
Net cash from stock
option exercises 13 - 13
Other financing
activities, net (1) (24) (25)
Cash provided by
financing activities 12 175 187
Effect of exchange rate
changes on cash and cash
equivalents - 7 7
Change in cash and cash
equivalents 55 (7) 48
Cash and cash equivalents
of discontinued
operations, beginning of
period 153 - 153
Cash and cash equivalents
of continuing
operations, beginning of
period 1 52 53
Adjustment to remove AMC
cash (201) - (201)
Cash and cash
equivalents, end of
period $8 $45 $53
DISCOVERY COMMUNICATIONS, INC.
SUPPLEMENTAL FINANCIAL DATA
(unaudited; amounts in millions)
CALCULATION OF FREE CASH FLOW
Three Months Ended Twelve Months Ended
December 31, December 31,
2008 2007(a) Change 2008 2007(a) Change
Cash provided by
Operating activities $146 $141 $5 $569 $300 $269
Acquisition of property
and equipment (18) (37) 19 (102) (128) 26
Free cash flow $128 $104 $24 $467 $172 $295
(a) The 2007 results presented are as adjusted. See page 14 for an
explanation of how these results have been calculated and why
management believes this presentation would be meaningful to
investors.
RECONCILIATION OF 2009 OUTLOOK TO GAAP MEASURES
Full Year 2009
Net income from continuing operation $475 To $575
Interest, net 260 To 230
Depreciation and amortization 175 To 170
Other, including amortization of cable
distribution investments, marked to market
equity based compensation, restructuring
costs, equity earnings in unconsolidated
affiliates, unrealized and realized gains and
losses from derivatives, income tax expense,
minority interests in consolidated
subsidiaries 390 To 425
Adjusted OIBDA $1,300 To $1,400
DISCOVERY COMMUNICATIONS, INC.
SUPPLEMENTAL FINANCIAL DATA
SELECTED FINANCIAL DETAIL
(unaudited; amounts in millions)
BORROWINGS
As of
December 31, 2008
$1.0 billion Term Loan A, due quarterly to October 2010 $938
$1.6 billion Revolving Loan, due October 2010 315
$1.5 billion Term Loan B, due quarterly September
2007 to May 2014 1,478
7.45% Senior Notes, semi-annual interest, due
September 2009 55
8.37% Senior Notes, semi-annual interest, due
March 2011 220
8.13% Senior Notes, semi-annual interest, due
September 2012 235
Floating Rate Senior Notes (3.3% at December 31, 2008), semi-annual
interest,
Due December 2012 90
6.01% Senior Notes, semi-annual interest, due
December 2015 390
Obligations under capital leases 67
Other notes payable 1
Subtotal 3,789
Current portion (458)
Total long-term debt 3,331
Cash and cash equivalents 100
Net debt $3,231
SHARE-BASED COMPENSATION
As of January 31, 2009
Total Weighted Vested Weighted
Units Average Units Average
Long-Term Outstanding Exercise Outstanding Exercise
Incentive Plans (in millions) Price (in millions) Price
Discovery appreciation plan 20 18.77 - -
Stock appreciation rights
Vesting in March 2009 3 14.40 - -
Vesting in March 2010 3 14.40 - -
Stock options 11 14.48 3 13.87
Total share-based
compensation plans 37 16.79 3 13.87
