Meredith to repurchase shares, boost dividend
Meredith to repurchase shares, boost dividend
Meredith Corp. this morning announced a drop in fiscal first-quarter earnings, along with plans to repurchase $100 million of common stock and increase its dividend by 50 percent.
The Des Moines-based media and marketing company generated 48 cents per share in earnings for its first fiscal quarter, which ended Sept. 30, compared with 56 cents per share in the year-ago period. Revenues for the quarter were $328 million, compared with $343 million in the first quarter of fiscal 2011.
Meredith recorded approximately $11 million, or 15 cents per share, less in political advertising revenues in the first quarter of fiscal 2012 than in the year-ago period, which the company said is expected in an off-election year.
“Fiscal 2012 is off to a solid start,” Meredith Chairman and CEO Steve Lacy said in a press release. “We continue to be highly confident in the strength of Meredith’s diversified business model, and our ability to generate significant and sustainable free cash flow from our assets by leveraging the strength of our brands.”
Meredith’s National Media Group recorded an operating profit of $36 million for the quarter, down from $40 million in the prior-year period. “Print and digital advertising revenues continue to be challenged – primarily the food and beverage and pharmaceutical categories – due to higher commodity cost pressures and fewer pharmaceutical drugs in the marketplace,” Lacy said.
Meredith’s increased dividend of $1.53 per share represents a yield of 6.1 percent, based on its closing price of $24.89 on Oct. 25, and places its dividend yield in the top 2 percent of companies in the Standard & Poor’s 500 Index.
Meredith Corp. this morning announced a drop in fiscal first-quarter earnings, along with plans to repurchase $100 million of common stock and increase its dividend by 50 percent.
The Des Moines-based media and marketing company generated 48 cents per share in earnings for its first fiscal quarter, which ended Sept. 30, compared with 56 cents per share in the year-ago period. Revenues for the quarter were $328 million, compared with $343 million in the first quarter of fiscal 2011.
Meredith recorded approximately $11 million, or 15 cents per share, less in political advertising revenues in the first quarter of fiscal 2012 than in the year-ago period, which the company said is expected in an off-election year.
“Fiscal 2012 is off to a solid start,” Meredith Chairman and CEO Steve Lacy said in a press release. “We continue to be highly confident in the strength of Meredith’s diversified business model, and our ability to generate significant and sustainable free cash flow from our assets by leveraging the strength of our brands.”
Meredith’s National Media Group recorded an operating profit of $36 million for the quarter, down from $40 million in the prior-year period. “Print and digital advertising revenues continue to be challenged – primarily the food and beverage and pharmaceutical categories – due to higher commodity cost pressures and fewer pharmaceutical drugs in the marketplace,” Lacy said.
Meredith’s increased dividend of $1.53 per share represents a yield of 6.1 percent, based on its closing price of $24.89 on Oct. 25, and places its dividend yield in the top 2 percent of companies in the Standard & Poor’s 500 Index.