Earnings Call Excerpt
Martha Stewart Living Omnimedia Q4 2005 Earnings Conference Call (MSO)
February 22, 2006
Executives
Howard Hochhauser, VP Finance and Investor Relations
Susan Lyne, President and CEO
Analysts
Douglas Arthur, Morgan Stanley
Michael Meltz, Bear Stearns
Robert Raff, Jeffries and Company
Dennis McAlpine, McAlpine and Associates
Presentation
Howard Hochhauser, VP Finance and Investor Relations.
Thank you very much and good afternoon everyone. Welcome to our conference call to review Q4 2005 results. Susan Lyne our president and CEO will speak about some of our recent initiatives and I will talk about our recent performance and our guidance for 2006. Our prepared remarks should take about 20 minutes and then I will open it up to your questions.
Let me remind you if you prefer to listen in on the web you can go to marthastewart.com and go to the investor relations link and follow it to the web cast. An audio archive will be available on marthastewart.com later today and we’ll leave it there for a couple of weeks so that you can access it at your convenience.
Before turning the call over to Susan I’ll remind you that our statements that are made pursuant to the private securities litigation reform act of 1995 as amended. These statements do not guarantee our future performance and involve certain risks and uncertainties which are difficult to predict. Actual future results and trends may differ materially from what is forecast in forward looking statements, due to a variety of factors. No I will turn things over to Susan.
Susan Lyne, President and CEO.
Thank you Howard. Good afternoon everyone and thank you for joining us on our Q4 and year end 2005 earnings conference call. I’ve been looking forward to this call because we have strong results to report and because directionally I believe the company is in excellent shape. Our Q4 results outpaced expectations, with operating profit improvement in every segment.
Revenue increased 40% to $84.5 million; OIDA (operating income before depreciation and amortization, and non-cash stock compensation) was $11.7 million ahead of our earlier guidance of $11 million, and $13.4 million better than last year.
Operating income went from a loss of $9.5 million to a positive $2.5 million.
Revenue growth was seen across every segment but rose most sharply in our publishing business where ad pages at Martha Stewart Living were up a stellar 133% with ad revenue growing ahead of pages and consumer trends continuing to show strength. This trend is continued into 2006. We expect full year pages to increase another 35-40%.
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