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Martha Stewart Living Omnimedia Q2 2008 Earnings Call Transcript

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2008-07-29 09:33:26.0

Tags: Martha Stewart Living Omnimedia Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from David Kestenbaum of Morgan Joseph.

David Kestenbaum - Morgan Joseph

Okay, thanks. Could you just comment on how much of your revenue is Emeril based and what you see that being for the entire year? I think that’s important since you didn’t change the guidance much but you did include Emeril for the year this time, where you hadn’t in the past.

Howard Hochhauser

Let me address it for the quarter and for the full year. For the quarter, even if you exclude Emeril and exclude Blueprint, we still had revenue growth in the low single digits, so that would equate to about $3.5 million to $4 million in revenue for the quarter. On a full-year basis, we’re expecting revenue from Emeril of $10 million to $12 million.

David Kestenbaum - Morgan Joseph

Okay, and how about EBITDA?

Howard Hochhauser

EBITDA for the quarter was about $2.5 million, and for the full year, as we said on the last quarter call, it was about $5 million to $6 million.

David Kestenbaum - Morgan Joseph

Okay. Could you just talk about -- you’ve kind of hinted lately that you plan to do more internationally. Could you talk about where you are as far as revenue and percentage internationally and what you are planning to do there, what countries maybe you are planning to enter?

Charles A. Koppelman

International is clearly about our future. Our television shows are in about 70 countries. We just started to roll out our magazines in a few others and merchandising products will follow closely behind. But right now it’s a small part of our revenue and a small part of our EBITDA.

David Kestenbaum - Morgan Joseph

Okay. And the you’ve announced a whole host of new initiatives in merchandise in the past year. Will we see that slow down or is there still a lot more opportunities for you going forward? Thanks.

Robin Marino

I think that we are going to be focused on getting the businesses that we’ve started really, really fine-tuned. We do see opportunities for further expansion in certain product categories that are close to our brand equity and the international part of the expansion is obviously a large initiative as well. I recently renewed by passport.

David Kestenbaum - Morgan Joseph

Okay. Thanks.

Operator

Thank you. Your next question comes from Richard Ingrassia of Roth Capital Partners.

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