EX-99.01 2 dex9901.htm SCRIPPS NETWORKS QUARTERLY FINANCIAL INFORMATION Scripps Networks Quarterly Financial Information
SCRIPPS NETWORKS QUARTERLY FINANCIAL INFORMATION    EXHIBIT 99.01

 

Scripps Networks includes our national television networks: Home & Garden Television (“HGTV”), Food Network, DIY Network (“DIY”), Fine Living, and Great American Country (“GAC”). Programming from our networks can be viewed on demand (“VOD”) on cable television systems in about 84 markets across the United States. Scripps Networks also includes our on-line network, HGTVPro.com, and our 12% interest in FOX Sports Net South, a regional television network. Our networks also operate internationally through licensing agreements and joint ventures with foreign entities.

 

Direct expenses incurred in the operations of each network primarily include the costs to acquire and deliver programming, network specific marketing and promotion, advertising sales, audience and market research and network management. Our networks also utilize common facilities and certain services are shared by the networks. Shared costs primarily include affiliate sales, computer systems used to schedule advertising and programming and related personnel costs, the costs to operate and lease shared facilities, and accounting, human resource, legal, general corporate management and other support services.

 

Financial information presented for each of our networks prior to 2005 included the direct costs of operating the network and an allocation of the costs of the shared facilities and services. Beginning in 2005, expenses directly attributable to the operation of a network are charged to that network while the costs of shared facilities and services are not allocated to individual networks. The following tables present quarterly financial information for 2004 as if the costs of the shared costs had not been allocated to the individual networks.

 

(in thousands)

2004


   1st
Quarter


    2nd
Quarter


    3rd
Quarter


    4th
Quarter


    Total

 

HGTV:

                                        

Operating revenues

   $ 85,098     $ 101,390     $ 88,694     $ 101,723     $ 376,905  

Direct segment operating expenses

     34,535       38,777       39,410       38,549       151,271  
    


 


 


 


 


Direct contribution to segment profit

   $ 50,563     $ 62,613     $ 49,284     $ 63,174     $ 225,634  
    


 


 


 


 


Food Network:

                                        

Operating revenues

   $ 63,142     $ 78,311     $ 66,614     $ 86,890     $ 294,957  

Direct segment operating expenses

     30,287       34,763       30,266       36,260       131,576  
    


 


 


 


 


Direct contribution to segment profit

   $ 32,855     $ 43,548     $ 36,348     $ 50,630     $ 163,381  
    


 


 


 


 


DIY:

                                        

Operating revenues

   $ 6,792     $ 8,182     $ 7,775     $ 8,755     $ 31,504  

Direct segment operating expenses

     5,777       6,472       6,847       6,472       25,568  
    


 


 


 


 


Direct contribution to segment profit

   $ 1,015     $ 1,710     $ 928     $ 2,283     $ 5,936  
    


 


 


 


 


Fine Living:

                                        

Operating revenues

   $ 3,688     $ 4,837     $ 4,286     $ 5,142     $ 17,953  

Direct segment operating expenses

     6,241       6,645       6,757       7,943       27,586  
    


 


 


 


 


Direct contribution to segment profit (loss)

   $ (2,553 )   $ (1,808 )   $ (2,471 )   $ (2,801 )   $ (9,633 )
    


 


 


 


 


Great American Country (1):

                                        

Operating revenues

                           $ 1,650     $ 1,650  

Direct segment operating expenses

                             1,657       1,657  
                            


 


Direct contribution to segment profit (loss)

                           $ (7 )   $ (7 )
    


 


 


 


 


                                          
                                          

SHARED EXPENSES

   $ 18,632     $ 19,284     $ 20,828     $ 20,805     $ 79,549  
    


 


 


 


 



(1) Great American Country’s results reflect activity since the November 17, 2004 acquisition date.