Martha Stewart 1st Qtr Earnings - It's A Good Thing

Summary
Revenues rose approximately 2% to $67.8 million compared to $66.7 million for the first quarter of 2008. The Publishing segment had solid performance in the quarter, benefiting from higher book revenue and advertising revenue, excluding last year's contribution from the since-closed Blueprint. Broadcasting continued to benefit from advertising and licensing revenues, and the Internet segment continued to gain traction with significant year-over- year increases in both traffic and advertising revenue. All three advertising platforms are also benefiting from the increased contribution of cross-platform campaigns that leverage the combined audiences from Martha Stewart's portfolio of brands. Recently launched merchandising initiatives also made positive contributions during the quarter.

Operating loss for the first quarter of 2008 was $(4.5) million, compared to $(12.6) million for the first quarter of 2007.
Adjusted EBITDA for the first quarter of 2008 was $(1.2) million, compared to $(2.4) million in the prior year period.
Net loss per share from continuing operations was $ (0.08) for the first quarter of 2008, compared to $ (0.23) for the first quarter of 2007.

Trends and Outlook
Howard Hochhauser, Chief Financial Officer, commented, "Our first quarter operating results met our expectations, which is no small achievement given the current economic climate. While visibility into the second half of 2008 remains uncertain, we are seeing positive advertising trends continue in the second quarter. This fact, backed by the overall health of our business, sound operating discipline, and improved financial flexibility give us confidence that we are on course with our outlook for the year. We are focused on optimally positioning the Company for continued revenue growth and margin expansion over the long-term."

For the second quarter of 2008, we expect revenue in the range of $71.5 to $74.5 million, operating income in the range of $0.5 to $1.0 million and adjusted EBITDA in the range of $4.5 to $5.0 million. This outlook does not include contributions from the Emeril acquisition, which was completed on April 3, 2008 and is expected to be additive to second quarter and 2008 performance. The Company expects to begin including Emeril in its financial outlook beginning next quarter.
For the full-year 2008, exclusive of Emeril, we continue to anticipate revenue of approximately $300.0 million, operating income in the range of $9.5 - $14.5 million and adjusted EBITDA in the range of $23.0 - $28.0 million.