Martha Stewart Living: Operating expenses down, net income up
February 25, 2014-- Home Accents Today,
Martha Stewart Living Omnimedia, Inc. today announced results for the fourth quarter and full year ended Dec. 31, 2013. The company reported net income for the fourth quarter of $7.0 million and net loss for the year of $(1.8) million.
Total revenues were $160.7 million in 2013, compared to $197.6 million in 2012. For the quarter, revenues were $47.4 million, compared to $56.4 million in the fourth quarter of 2012 as the 2012 publishing restructuring resulted in lower revenues partially offset by growth in merchandising.
"We ended the full year with a $54.5 million improvement in operating income from the prior year. In the fourth quarter just completed, growth in merchandising was offset by anticipated lower revenues from publishing which was expected due to the restructuring that took place in the prior year to reduce our print title count from four to two," said Dan Dienst, chief executive officer. "As promised, we also took some aggressive and important steps in the last quarter of 2013 to align our cost structure with marketplace realities and more importantly to become nimbler, more efficient, generators of ideas, inspirations, content and product. We also promised to put to bed several pieces of notable and distracting litigation, and we did so."
Total operating income for the fourth quarter of 2013 was $5.9 million compared with $1.4 million in the prior-year period.
Total operating loss for the full year 2013 was $(1.9) million compared to an operating loss of $(56.4) million in 2012. Included in 2012 results was a $(44.3) million non-cash impairment charge reflecting the write-down of goodwill related to the company's publishing segment.
Merchandising revenues increased 12% to $18.2 million for the fourth quarter of 2013, as compared to $16.2 million in the prior year's fourth quarter, benefitting from royalty revenue recognition, new in 2013, from the company's relationship with J.C. Penney.
Corporate expenses were $(6.3) million in the fourth quarter of 2013 compared to $(10.6) million in the prior year's quarter, due to a reimbursement from the company's insurance carrier related to the Macy's litigation and lower executive compensation.
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