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Scripps Networks Interactive Reports Fourth Quarter Financial Results

Scripps Networks Interactive, Inc. (NYSE: SNI) today reported operating results for the fourth quarter 2012.

Consolidated revenues for the quarter increased 9.2 percent to $605 million from the prior-year period. Results for the three-month period ended Dec. 31 reflect solid advertising revenue of $414 million, up 5.1 percent, and affiliate fee revenue of $174 million, up 18 percent year-over-year.

Expenses for the quarter increased 14 percent from the prior-year period to $339 million. The increase was driven primarily by higher employee costs and investments in planned domestic and international growth initiatives. Also contributing to the increase was higher programming amortization and marketing expenses to drive viewership at all of the company’s lifestyle television networks.

Total segment profit increased 3.3 percent to $266 million. (See note 2 for a definition of segment profit.)

Fourth quarter income from continuing operations attributable to Scripps Networks Interactive was $306 million, or $2.02 per diluted share, compared with $135 million, or $0.84 in the fourth quarter of 2011. Included in the fourth quarter 2012 figure are:

  • Favorable tax adjustments of $202 million, or $1.33 per diluted share; and
  • Asset impairment charges of $22 million, net of tax, or $0.15 per diluted share.

In the prior-year period, net income from continuing operations included favorable tax adjustments of $10.5 million, or $0.07 per diluted share.

Excluding these items in both the current and prior-year periods, fourth quarter 2012 income from continuing operations attributable to Scripps Networks Interactive was $0.84, compared with $0.77 in the fourth quarter of 2011. (See note 1.)

“Our solid fourth-quarter and full-year operating results demonstrate the popularity and superior marketing power of our lifestyle television networks and related interactive businesses,” said Kenneth W. Lowe, chairman, president and chief executive officer of Scripps Networks Interactive. “Since the launch of HGTV in 1994, our lifestyle media businesses have generated 18 consecutive years of growth, creating tremendous value for our shareholders, delivering uncommon value to our advertisers and distributors and engaging media consumers at the highest levels. Underpinning the company’s success is our commitment to remain focused on lifestyle content categories that touch and inspire the everyday lives of media consumers.”

Revenues by network were as follows:

  • Food Network, $215 million, up 5.2 percent.
  • HGTV, $200 million, up 5.1 percent.
  • Travel Channel, $71.1 million, up 5.9 percent.
  • DIY Network, $30.4 million, up 13 percent.
  • Cooking Channel, $24.7 million, up 38 percent.
  • Great American Country (GAC), $7.6 million, up 16 percent.

Revenue from the company’s digital businesses, which include its network-branded websites, was $33.2 million, up 9.1 percent.

Full-year Results

Consolidated operating revenue in 2012 was $2.3 billion, up 11 percent from the prior year. Advertising revenue was $1.6 billion, up 9.0 percent from the prior year. Affiliate fee revenue was $688 million, up 17 percent from the prior year.

Segment profit increased to $1.0 billion, up 6.5 percent from the prior year.

Consolidated income from continuing operations attributable to Scripps Networks Interactive was $681 million, or $4.44 per share, compared with $473 million, or $2.86 per share in 2011. Consolidated income from continuing operations and per share amounts reflect the items disclosed in note 1 to the results of operations.

2013 Full-year Guidance

The company provided the following outlook for 2013.

Total revenue is expected to increase 7 percent to 9 percent.

Cost of services are expected to increase 12 percent to 14 percent.

Selling, general and administrative expenses are expected to increase 7 percent to 9 percent.

Other items:

  • Depreciation and amortization, $115 million to $125 million.
  • Interest expense, $50 million to $55 million.
  • Effective tax rate, 28 percent to 30 percent.
  • Noncontrolling share of net income, $175 million to $185 million.
  • Capital expenditures, $65 million to $70 million.

Conference call

The senior management team of Scripps Networks Interactive will discuss the company’s fourth quarter results during a telephone conference call at 10 a.m. ET today. Scripps Networks Interactive will offer a live webcast of the conference call. To access the webcast, visit www.scrippsnetworksinteractive.com and follow the Investors link at the top of the page. The webcast link can be found next to the microphone icon on the investor relations landing page.

To access the conference call by telephone, dial 800-230-1092 (U.S.) or 612-288-0337 (international) approximately ten minutes before the start of the call. Callers will need the name of the call, “SNI Fourth Quarter Earnings Call,” to be granted access. Callers also will be asked to provide their name and company affiliation. The media and general public are granted access to the conference call on a listen-only basis.

A replay line will be open from 12:30 p.m. ET Feb. 7 until 11:59 p.m. ET Feb. 21. The domestic number to access the replay is 800-475-6701 and the international number is 320-365-3844. The access code for both numbers is 279208. A replay of the conference call also will be available online. To access the audio replay, visit www.scrippsnetworksinteractive.com approximately four hours after the call, choose Investors then follow the Audio Archives link on the top right side of the investor relations landing page.

Forward-looking statements

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-3 of its 2011 Form 10-K filed with the Securities and Exchange Commission.

The company undertakes no obligation to publicly update any forward-looking statements to reflect events or circumstances after the date the statement is made.

About Scripps Networks Interactive

Scripps Networks Interactive is one of the leading developers of lifestyle-oriented content for television and the Internet, where on-air programming is complemented with online video, social media areas and e-commerce components on companion websites and broadband vertical channels. The company’s media portfolio includes popular lifestyle television and Internet brands Food Network, HGTV, Travel Channel, DIY Network, Cooking Channel and country music network Great American Country.

             
SCRIPPS NETWORKS INTERACTIVE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS                                  
(unaudited) Three months ended Twelve months ended
December 31, December 31,
(in thousands, except per share data)     2012     2011   Change       2012     2011   Change
 
Operating revenues $ 604,665 $ 553,489 9.2 % $

2,307,182

$

2,072,048

11.3 %

Cost of services, excluding depreciation and amortization of intangible assets

(165,855) (143,594) 15.5 % (610,836) (526,865) 15.9 %
Selling, general and administrative (172,919) (152,436) 13.4 % (655,473) (567,902) 15.4 %

Depreciation and amortization of intangible assets

(28,159) (23,609) 19.3 % (107,591) (90,080) 19.4 %
Write-down of goodwill (19,663) (19,663)
Gains (losses) on disposal of property and equipment     856     (666)           754     (603)    
 
Operating income 218,925 233,184 (6.1)% 914,373 886,598 3.1 %
Interest expense (12,869) (9,773) 31.7 % (50,814) (36,121) 40.7 %
Equity in earnings of affiliates 14,597 20,094 (27.4)% 60,864 49,811 22.2 %
Miscellaneous, net     651     6,316           13,340     (17,188)    
 
Income from continuing operations before income taxes 221,304 249,821 (11.4)% 937,763 883,100 6.2 %
Income tax benefit (provision)     123,170     (71,586)           (88,107)     (246,452)   (64.2)%
 
 
Income from continuing operations, net of tax 344,474 178,235 93.3 % 849,656 636,648 33.5 %

Income (loss) from discontinued operations, net of tax

                            (61,252)    
 
Net income 344,474 178,235 93.3 % 849,656 575,396 47.7 %
Net income attributable to noncontrolling interests     (38,673)     (43,234)   (10.5)%       (168,178)     (163,838)   2.6 %
Net income attributable to SNI   $ 305,801   $ 135,001         $ 681,478   $ 411,558   65.6 %
 

Income from continuing operations attributable to SNI common shareholders per basic share of common stock

  $ 2.03   $ 0.85         $ 4.48   $ 2.87    
 

Income from continuing operations attributable to SNI common shareholders per diluted share of common stock

  $ 2.02   $ 0.84         $ 4.44   $ 2.86    
 
Weighted average basic shares outstanding     150,546     159,727           152,180     164,657    
 
Weighted average diluted shares outstanding     151,711     160,399           153,327     165,572    
 
Net income per share amounts may not foot since each is calculated independently.
   
SCRIPPS NETWORKS INTERACTIVE, INC.
CONSOLIDATED BALANCE SHEETS            
(unaudited) As of
December 31, December 31,

 

2012 2011
(in thousands, except per share data)            
 
ASSETS
Current assets:
Cash and cash equivalents $ 437,525 $ 760,092
Accounts receivable (less allowances: 2012- $5,514; 2011- $5,000) 565,298 553,022
Programs and program licenses 395,017 336,305
Deferred income taxes 26,338 1,799
Other current assets     60,098     64,750
Total current assets 1,484,276 1,715,968
Investments 489,703 455,267
Property and equipment, net 237,308 219,845
Goodwill 551,821 510,484
Other intangible assets, net 678,500 556,095
Programs and program licenses (less current portion) 371,856 299,089
Deferred income taxes 148,501
Other non-current assets     176,833     204,922
Total Assets   $ 4,138,798   $ 3,961,670
 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 12,633 $ 12,482
Program rights payable 36,274 50,402
Customer deposits and unearned revenue 44,903 52,814
Employee compensation and benefits 56,553 49,920
Accrued marketing and advertising costs 10,689 6,838
Other accrued liabilities     91,577     60,443
Total current liabilities 252,629 232,899
Deferred income taxes 100,002
Long-term debt 1,384,216 1,383,945
Other liabilities (less current portion)     237,402     148,429
Total liabilities     1,874,247     1,865,275
Redeemable noncontrolling interest     136,500     162,750
Equity:
SNI shareholders' equity:

Preferred stock, $.01 par - authorized: 25,000,000 shares; none outstanding Common stock, $.01 par:

Class A - authorized: 240,000,000 shares; issued and outstanding: 2012 - 114,570,332 shares; 2011 - 122,828,359 shares

1,146 1,228

Voting - authorized: 60,000,000 shares; issued and outstanding: 2012 - 34,317,173 shares; 2011 - 34,317,173 shares

343 343
Total 1,489 1,571
Additional paid-in capital 1,405,699 1,346,429
Retained earnings 452,598 364,073
Accumulated other comprehensive income (loss)     (38,862)     (33,347)
Total SNI shareholders' equity 1,820,924 1,678,726
Noncontrolling interest     307,127     254,919
Total equity     2,128,051     1,933,645
Total Liabilities and Equity   $ 4,138,798   $ 3,961,670
     
SCRIPPS NETWORKS INTERACTIVE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS              
Twelve months ended
December 31,
2012 2011
(in thousands)       (unaudited)      
 
Cash Flows from Operating Activities:
Net income $ 849,656 $ 575,396
Loss (income) from discontinued operations             61,252
 
Income from continuing operations, net of tax 849,656 636,648
Depreciation and amortization of intangible assets 107,591 90,080
Write-down of goodwill 19,663
Amortization of network distribution costs 23,687 42,353
Program amortization 487,138 429,935
Equity in earnings of affiliates (60,864) (49,811)
Program payments (623,484) (521,243)
Capitalized network distribution incentives (2,948) (6,872)
Dividends received from equity investments 61,896 39,420
Deferred income taxes (284,271) 34,300
Stock and deferred compensation plans 39,492 26,920
Changes in certain working capital accounts:
Accounts receivable (4,461) (48,029)
Other assets (7,228) 628
Accounts payable (2,157) 2,806
Accrued employee compensation and benefits 10,249 39
Accrued income taxes (2,365) 21,497
Other liabilities (5,688) 23,131
Other, net       8,777     (6,140)
Cash provided by (used in) continuing operating activities 614,683 715,662
Cash provided by (used in) discontinued operating activities             13,253
Cash provided by (used in) operating activities       614,683     728,915
 
Cash Flows from Investing Activities:
Additions to property and equipment (63,416) (54,113)
Purchase of long-term investments (17,089) (402,217)
Purchase of note receivable due from UKTV (137,308)
Collections (funds advanced) on note receivable 12,264
Purchase of subsidiary companies, net of cash acquired (119,036)
Purchase of noncontrolling interest (3,400)
Other, net       (48,003)     1,881
Cash provided by (used in) continuing investing activities (235,280) (595,157)
Cash provided by (used in) discontinued investing activities       10,000     141,786
Cash provided by (used in) investing activities       (225,280)     (453,371)
 
Cash Flows from Financing Activities:
Proceeds from long-term debt 599,390
Payments on long-term debt (100,000)
Dividends paid (73,109) (61,788)
Dividends paid to noncontrolling interests (166,351) (70,500)
Noncontrolling interest capital contribution 52,804
Repurchase of Class A common stock (600,285) (500,048)
Proceeds from stock options 121,665 24,491
Deferred loan costs (4,558)
Other, net       6,675     (5,517)
Cash provided by (used in) financing activities       (711,405)     (65,726)
Effect of exchange rate changes on cash and cash equivalents       (565)     377
Increase (decrease) in cash and cash equivalents (322,567) 210,195
 
Cash and cash equivalents:
Beginning of year       760,092     549,897
 
End of period     $ 437,525   $ 760,092
 
Supplemental Cash Flow Disclosures:
Interest paid, excluding amounts capitalized $ 46,682 $ 32,847
Income taxes paid       348,158     184,114
 

Notes to Results of Operations

1. OTHER CHARGES AND CREDITS

Income tax adjustments - Our tax provision in the fourth quarter of 2012 reflects an income tax benefit of $213 million arising from the reversal of valuation allowances on deferred tax assets related to capital loss carry forwards. Previously, the Company had estimated that it would be unable to use any of the capital loss carry forwards generated from the sales of the Shopzilla and uSwitch businesses. As a consequence of a restructuring that was completed to achieve a more efficient tax structure, the Company recognized a $574 million capital gain that utilized substantially all of its capital loss carry forwards. As the capital losses are not available in states in which the Company does not file unitary income tax returns, state tax expenses totaling $23.1 million were also recognized. Our fourth quarter 2012 tax provision also includes an $11.8 million favorable tax adjustment that reflects expiring statutes of limitations in certain tax jurisdictions and the related reduction of our liability for uncertain tax positions. These fourth quarter 2012 income tax adjustments increased year-to-date net income attributable to SNI by $202 million, $1.33 per share.

Our tax provision in the fourth quarter of 2011 includes a favorable tax adjustment primarily attributed to expiring statutes of limitations in certain tax jurisdictions and the related reduction of our liability for uncertain tax positions. Net income attributable to SNI was increased $10.5 million, $0.07 per share. In the third quarter of 2011, we recorded $14.5 million of favorable income tax adjustments attributed to reaching agreements with certain tax authorities for positions taken in prior period returns and adjustments to foreign income items, state apportionment factors and credits reflected in our filed tax returns. These 2011 income tax adjustments increased year-to-date net income attributable to SNI by $25.0 million, $0.15 per share.

Asset write-downs - In connection with our annual impairment test for goodwill, we recorded a $19.7 million non-cash charge in the fourth quarter of 2012 to write-down the goodwill associated with RealGravity to fair value. Equity in earnings of affiliates for the fourth quarter of 2012 also reflects a non-cash charge of $5.9 million to reduce the carrying value of our investments to their estimated fair value. These charges decreased net income attributable to SNI by $22.0 million, $0.15 per share.

UKTV - In August 2011, the Company announced that SNI would be acquiring a 50-percent equity interest in UKTV for £239 million and £100 million to acquire the outstanding preferred stock and debt due to Virgin Media, Inc. from UKTV. To minimize the cash flow volatility resulting from British Pound to U.S. dollar currency exchange rate changes, we subsequently entered into foreign currency forward contracts that effectively set the U.S. dollar value for the transaction. We settled these foreign currency exchange forward contracts around the September 30, 2011 closing of the transaction and recognized losses from the contracts totaling $25.3 million. These losses reported within the “Miscellaneous” caption in our consolidated statements of operations reduced net income attributed to SNI $15.7 million, $0.10 per share.

Operating results in 2011 include transaction related costs of $6.5 million associated with our acquisition of a 50-percent equity interest in UKTV. Net income attributable to SNI was decreased $4.0 million, $0.02 per share.

Food Network Partnership noncontrolling interest - In August 2010, we contributed the Cooking Channel to the Food Network Partnership (the “Partnership”). At the close of our 2010 fiscal year, the noncontrolling owner had not made a required pro-rata capital contribution to the Partnership and as a result its ownership interest was diluted from 31 percent to 25 percent. Accordingly, following the Cooking Channel contribution, profits from the partnership were allocated to the noncontrolling owner at its reduced ownership percentage. In February 2011, the noncontrolling owner made the pro-rata contribution to the Partnership and its ownership interest was returned to the pre-dilution percentage as if the contribution had been made as of the date of the Cooking Channel contribution. The retroactive impact of restoring the noncontrolling owner’s interest in the Partnership increased net income attributed to noncontrolling interest $8.0 million in the first quarter of 2011. Year-to-date net income attributable to SNI was decreased $4.7 million, $0.03 per share.

Discontinued operations - Discontinued operations in 2011 reflect a loss on divestiture of $54.8 million related to the sale of the Shopzilla business. No income tax benefit related to the capital losses attributed to the sale was recognized. Year-to-date net income attributable to SNI was decreased $0.33 per share.

2. SEGMENT INFORMATION

We determine our business segments based upon our management and internal reporting structure. We manage our operations through one reportable operating segment, Lifestyle Media.

Lifestyle Media includes our national television networks, Food Network, HGTV, Travel Channel, DIY Network, Cooking Channel and Great American Country (“GAC”). Lifestyle Media also includes websites that are associated with the aforementioned television brands and other Internet-based businesses serving food, home and travel related categories. The Food Network and Cooking Channel are included in the Food Network Partnership of which we own approximately 69%. We also own 65% of Travel Channel. Each of our networks is distributed by cable and satellite distributors and telecommunication service providers.

The results of businesses not separately identified as reportable segments are included within our corporate and other caption. Corporate and other includes the results of the lifestyle-oriented channels we operate in Europe, the Middle East, Africa and Asia, operating results from the international licensing of our national networks’ programming, and other interactive and digital business initiatives that are not associated with our Lifestyle Media or international businesses.

Our chief operating decision maker evaluates the operating performance of our business segments and makes decisions about the allocation of resources to our business segments using a measure we call segment profit. Segment profit excludes interest, income taxes, depreciation and amortization, divested operating units, restructuring activities, investment results and certain other items that are included in net income determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Refer to Note 4—Non-GAAP Financial Measures, for reconciliations to GAAP measures.

Items excluded from segment profit generally result from decisions made in prior periods or from decisions made by corporate executives rather than the managers of the business segments. Depreciation and amortization charges are the result of decisions made in prior periods regarding the allocation of resources and are therefore excluded from the measure. Financing, tax structure and divestiture decisions are generally made by corporate executives. Excluding these items from our business segment performance measure enables us to evaluate business segment operating performance for the current period based upon current economic conditions and decisions made by the managers of those business segments in the current period.

Information regarding the operating performance of our business segments and a reconciliation to our results of operations is as follows:

                       
(in thousands)  

Three months ended

    Twelve months ended  
December 31,     December 31,
      2012     2011     Change         2012     2011   Change
   
Segment operating revenues:
Lifestyle Media $ 584,851 $ 547,867 6.8 % $ 2,256,367 $ 2,045,030 10.3 %

Corporate and other / intersegment eliminations

    19,814     5,622               50,815     27,018   88.1 %
 
Total operating revenues   $ 604,665   $ 553,489     9.2 %     $   2,307,182   $ 2,072,048   11.3 %
 
Segment profit (loss):
Lifestyle Media $ 287,468 $ 280,729 2.4 % $ 1,135,557 $ 1,049,934 8.2 %
Corporate and other     (21,577)     (23,270)     (7.3)%         (94,684)     (72,653)   30.3 %
 
Total segment profit 265,891 257,459 3.3 % 1,040,873 977,281 6.5 %

Depreciation and amortization of intangible assets

(28,159) (23,609) 19.3 % (107,591) (90,080) 19.4 %
Write-down of goodwill (19,663) (19,663)

Gains (losses) on disposal of property and equipment

856 (666) 754 (603)
Interest expense (12,869) (9,773) 31.7 % (50,814) (36,121) 40.7 %

Equity in earnings of affiliates

14,597 20,094 (27.4)% 60,864 49,811 22.2 %
Miscellaneous, net     651     6,316               13,340     (17,188)    
 

Income from continuing operations before income taxes

  $ 221,304   $ 249,821     (11.4)%     $   937,763   $ 883,100   6.2 %
 

Operating results from our international operations and the costs associated with other interactive and digital business initiatives increased the segment loss at corporate and other by $1.6 million in the fourth quarter of 2012 and $18.8 million for the year-to-date period of 2012 compared with $3.1 million in the fourth quarter of 2011 and $7.4 million for the year-to-date period of 2011.

Corporate costs in 2011 also include transaction related costs of $6.5 million that were associated with our acquisition of a 50-percent equity interest in UKTV.

3. SUPPLEMENTAL FINANCIAL INFORMATION

Our Lifestyle Media division earns revenue primarily from the sale of advertising time on our national television networks, affiliate fees paid by cable and satellite television operators that carry our network programming, the licensing of its content to third parties, the licensing of its brands for consumer products such as books and kitchenware, and from the sale of advertising on our Lifestyle Media affiliated websites.

Supplemental information for Lifestyle Media is as follows:

       
(in thousands) Three months ended Twelve months ended
December 31, December 31,
      2012     2011   Change     2012     2011   Change
   
Operating revenues by brand:
 
Food Network $ 214,584 $ 204,066 5.2 % $ 830,746 $ 745,605 11.4 %
HGTV 200,212 190,576 5.1 % 786,285 731,769 7.4 %
Travel Channel 71,133 67,174 5.9 % 280,387 262,055 7.0 %
DIY Network 30,391 26,915 12.9 % 121,612 102,995 18.1 %
Cooking Channel 24,668 17,829 38.4 % 88,531 65,610 34.9 %
GAC 7,622 6,581 15.8 % 24,549 25,004 (1.8)%
Digital Businesses 33,183 30,420 9.1 % 111,629 101,890 9.6 %
Other 3,238 4,416 (26.7)% 13,005 10,928 19.0 %
Intrasegment eliminations     (180)     (110)         (377)     (826)    
 
Operating revenues by type:
 
Advertising $ 409,405 $ 392,615 4.3 % $ 1,554,422 $ 1,430,144 8.7 %
Network affiliate fees, net 166,925 145,361 14.8 % 667,741 582,178 14.7 %
Other     8,521     9,891   (13.9)%     34,204     32,708   4.6 %
 
Subscribers (1):
 
Food Network 99,700 99,600 0.1 %
HGTV 98,800 98,900 (0.1)%
Travel Channel 94,700 94,900 (0.2)%
DIY Network 58,400 56,500 3.4 %
Cooking Channel 60,100 58,200 3.3 %
GAC                     62,700     62,200   0.8 %
 

(1)  Subscriber counts are according to the Nielsen Homevideo Index of homes that receive cable networks.

 

4. NON-GAAP FINANCIAL MEASURES

In addition to the results prepared in accordance with GAAP provided in this release, the Company has presented segment profit. A reconciliation of segment profit to operating income determined in accordance with GAAP for each business segment is as follows:

                       
(in thousands)   Three months ended  

Twelve months ended

December 31,

December 31,

      2012     2011     2012     2011
   
Operating income $ 218,925 $ 233,184 $ 914,373 $ 886,598

Depreciation and amortization of intangible assets:

Lifestyle Media 24,938 23,099 98,857 88,030
Corporate and other 3,221 510 8,734 2,050
 
Write-down of goodwill 19,663 19,663
 

Losses (gains) on disposal of property and equipment:

Lifestyle Media 534 532 637 469
Corporate and other     (1,390)     134     (1,391)     134
 
Total segment profit   $ 265,891   $ 257,459   $ 1,040,873   $ 977,281
 

The Company defines free cash flow as cash provided by operating activities less dividends paid to noncontrolling interests and acquisitions of property and equipment. The Company measures free cash flow as it believes it is an important indicator for management and investors as to the Company’s liquidity, including its ability to reduce debt, make strategic investments and return capital to shareholders. A reconciliation of free cash flow is as follows:

           
(in thousands)   Three months ended Twelve months ended
December 31,     December 31,
      2012     2011       2012     2011
   
 
Segment profit $ 265,891 $ 257,459 $ 1,040,873 $ 977,281
Income taxes paid (93,412) (46,732) (348,158) (184,114)
Interest paid (7,083) (158) (46,682) (32,847)
Working capital and other     15,690     (27,099)       (31,350)     (44,658)
 
Cash provided by continuing operating activities 181,086 183,470 614,683 715,662
Dividends paid to noncontrolling interests (18,170) (11,824) (166,351) (70,500)
Additions to property and equipment     (29,358)     (16,758)       (63,416)     (54,113)
 
Free cash flow   $ 133,558   $ 154,888     $ 384,916   $ 591,049
 

Since segment profit and free cash flow are non-GAAP measures, they should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance reported in accordance with GAAP.

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The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and sim...
Cloud is not a commodity. And no matter what you call it, computing doesn’t come out of the sky. It comes from physical hardware inside brick and mortar facilities connected by hundreds of miles of networking cable. And no two clouds are built the same way. SoftLayer gives you the highest performing cloud infrastructure available. One platform that takes data centers around the world that are full of the widest range of cloud computing options, and then integrates and automates everything. Join SoftLayer on June 9 at 16th Cloud Expo to learn about IBM Cloud's SoftLayer platform, explore se...
The list of ‘new paradigm’ technologies that now surrounds us appears to be at an all time high. From cloud computing and Big Data analytics to Bring Your Own Device (BYOD) and the Internet of Things (IoT), today we have to deal with what the industry likes to call ‘paradigm shifts’ at every level of IT. This is disruption; of course, we understand that – change is almost always disruptive.
SYS-CON Media announced today that 9 out of 10 " most read" DevOps articles are published by @DevOpsSummit Blog. Launched in October 2014, @DevOpsSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce softw...
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
SYS-CON Events announced today that Site24x7, the cloud infrastructure monitoring service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Site24x7 is a cloud infrastructure monitoring service that helps monitor the uptime and performance of websites, online applications, servers, mobile websites and custom APIs. The monitoring is done from 50+ locations across the world and from various wireless carriers, thus providing a global perspective of the end-user experience. Site24x7 supports monitoring H...
After making a doctor’s appointment via your mobile device, you receive a calendar invite. The day of your appointment, you get a reminder with the doctor’s location and contact information. As you enter the doctor’s exam room, the medical team is equipped with the latest tablet containing your medical history – he or she makes real time updates to your medical file. At the end of your visit, you receive an electronic prescription to your preferred pharmacy and can schedule your next appointment.
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud.
The WebRTC Summit 2014 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the M2M space. This really allows some room for influential individuals to create more high value inter...
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Raspberry Pi, BeagleBone, Spark and Intel Edison. You will also get an overview of cloud technologies s...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microservices, and more.
GENBAND has announced that SageNet is leveraging the Nuvia platform to deliver Unified Communications as a Service (UCaaS) to its large base of retail and enterprise customers. Nuvia’s cloud-based solution provides SageNet’s customers with a full suite of business communications and collaboration tools. Two large national SageNet retail customers have recently signed up to deploy the Nuvia platform and the company will continue to sell the service to new and existing customers. Nuvia’s capabilities include HD voice, video, multimedia messaging, mobility, conferencing, Web collaboration, deskt...
The Open Compute Project is a collective effort by Facebook and a number of players in the datacenter industry to bring lessons learned from the social media giant's giant IT deployment to the rest of the world. Datacenters account for 3% of global electricity consumption – about the same as all of Switzerland or the Czech Republic -- according to people I met at the recent Open Compute Summit in San Jose. With increasing mobility at the edge of the cloud and vast new dataflows being predicted with the growth of the Internet of Things (and The Coming Age of Many Zettabytes) in the near...
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborate. Cisco and our partners are building the platform for the Internet of Everything by connecting the...
15th Cloud Expo, which took place Nov. 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, expanded the conference content of @ThingsExpo, Big Data Expo, and DevOps Summit to include two developer events. IBM held a Bluemix Developer Playground on November 5 and ElasticBox held a Hackathon on November 6. Both events took place on the expo floor. The Bluemix Developer Playground, for developers of all levels, highlighted the ease of use of Bluemix, its services and functionality and provide short-term introductory projects that developers can complete between sessions.
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things compatible devices.