CINCINNATI, Aug. 11 /PRNewswire-FirstCall/ -- The E. W. Scripps Company
(NYSE: SSP) today filed with the Securities and Exchange Commission its
quarterly report on Form 10-Q for the period ending June 30, 2008. The second
quarter financial results include estimated non-cash charges of $874 million
for the impairment of goodwill and certain equity investments in the company's
In its July 24, 2008, second-quarter earnings report, the company
indicated that it would test goodwill, long-lived assets and equity
investments for impairment as of July 1, 2008 (the date that its lifestyle
cable networks and online comparison shopping services were separated into a
publicly traded company, Scripps Networks Interactive), and that any resulting
charge would be recorded in the third quarter. The company subsequently
decided that the third-quarter test was prompted by economic and business
conditions existing at June 30, 2008, and that any write-down resulting from
the test should be reported in second-quarter earnings.
The company concluded after testing that the fair value of its newspaper
businesses was less than the carrying value of its net assets as of June 30,
2008. Based upon preliminary valuations, Scripps recorded in the second
quarter a $779 million pre-tax, non-cash charge to reduce the carrying value
of goodwill, and pre-tax, non-cash charges totaling $95 million to reduce the
carrying value of investments in the Denver Newspaper Agency and a separate
partnership in Colorado, Prairie Mountain Publishing.
Including the effect of the non-cash charges, the company reported a net
loss for the second quarter of $531 million, or $9.78 per share. Net income
for the same period a year earlier was $97.5 million, or $1.78 per share
(adjusted for the 1-for-3 reverse stock split on July 16, 2008).
"The requirement to align the assets on our balance sheet with our market
capitalization resulted in the company taking this action," said Rich Boehne,
president and chief executive officer, "but the non-cash charges have no
impact on the future prospects of the company. Our strategic focus remains
unchanged. Scripps is healthy, with low debt and well able to make the
necessary decisions and investments to solidify our local media businesses as
the premier information and advertising resources in their markets."
This press release contains certain forward-looking statements related to
the company's businesses that are based on management's current expectations.
Forward-looking statements are subject to certain risks, trends and
uncertainties, including changes in advertising demand and other economic
conditions that could cause actual results to differ materially from the
expectations expressed in forward-looking statements. All forward-looking
statements should be evaluated with the understanding of their inherent
uncertainty. The company's written policy on forward-looking statements can be
found on page F-5 of its 2007 SEC Form 10K. We undertake no obligation to
publicly update any forward-looking statements to reflect events or
circumstances after the date the statement is made.
The E. W. Scripps Company (NYSE: SSP) is a diverse, 130-year-old media
enterprise with interests in broadcast television stations, newspaper
publishing, and licensing and syndication.
SOURCE The E. W. Scripps Company