The year was a delicate balance between operating in the moment and planning for the future. Our television stations and newspapers served their communities with relevant news and information and helped local businesses grow through creative advertising solutions.
We created original programming and successfully marketed new shows including RightThisMinute, The List and The Now. It has been a successful strategy to replace costly syndicated programs with our own shows in which we have greater control over the commercial inventory and distribution across Scripps markets and non-Scripps markets.
In mid-July, Scripps announced a deal with Journal Communications to merge the two companies and spin off both companies’ newspaper operations to create a new company, Journal Media Group. For the remainder of the year, it was a complicated process to complete the transaction. The deal closed on April 1, 2015.
Despite all of the work going into the Journal deal, Scripps made time to explore and complete the acquisition of WeatherSphere, a top-selling provider of weather-related mobile apps. The acquisition reinforced Scripps’ commitment to creating more products and deeper connections with digital consumers around news and information.
In 2014, revenue was $869 million compared to $817 million last year. Political advertising was $58 million compared to $4.3 million.
Costs and expenses for segments, shared services and corporate were $769 million, an increase of $27.6 million. The 2014 period includes $9.9 million of incremental expenses to grow digital operations, two full quarters of costs to operate the Granite stations, and higher network fees tied to the increase in retransmission revenue.
The company reported income from operations before income taxes of $12.3 million in 2014 compared to a loss from operations before income taxes of $8.6 million in 2013. The 2014 year-to-date results were impacted by a $4.1 million charge to exit a multi-employer pension plan, $14 million of Journal- and Granite-related acquisition and integration costs, a $5.9 million non-cash charge for losses on investments, and a $3 million gain on the sale of land. In 2013, the company incurred a $4.5 million non-cash charge for losses on investments and a $4.6 million non-cash charge to write off loan fees related to debt refinancing.
In 2014, net income was $10.5 million, or 18 cents per share, compared to a net loss of $0.5 million, or 1 cent per share, in 2013. Acquisition and integration costs, charges related to the withdrawal from a multi-employer pension plan, investment write-offs and a gain on sale of land reduced earnings per share by approximately 22 cents in 2014. The tax expense for 2014 includes $6.4 million, or 11 cents per share, in favorable adjustments to the company’s tax reserves. The 2013 write-off of investments and loan fees reduced the prior-year earnings per share by approximately 10 cents. The tax benefit for the 2013 period includes $3.1 million, or 5 cents per share, in favorable adjustments to the company’s tax reserves.