| 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 |
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| HGTV: |
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| 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: |
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| 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: |
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| 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: |
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| 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): |
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| 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 Countrys results reflect activity since the November 17, 2004 acquisition date. |