MAIN NEWS HEADLINES
February 25 – March 4, 2010 Edition

Simon & Schuster Posts Declines in Fourth Quarter

NEW YORK, NY/AUTHORLINK NEWS/02/25/10—CBS Corporation last week reported financial results for the fourth quarter and full year ended December 31, 2009, including unfavorable results for its publishing arm, Simon & Schuster.

Publishing revenues for the fourth quarter of 2009 decreased 10% to $220.0 million from $245.1 million for the same prior-year period in the soft retail market. Best-selling titles in the fourth quarter of 2009 included Under the Dome by Stephen King and It’s Your Time by Joel Osteen.

S&S posted Operating Income Before Depreciation and Amortization (OIBDA) of $13.6 million and operating income of $11.9 million for the fourth quarter of 2009, a decrease of 52% and 54%, respectively. The revenue decline and higher royalty expenses were partially offset by lower production costs and lower operating expenses resulting from cost-savings initiatives.

For the full year, publishing revenues for 2009 decreased 7% to $793.5 million from $857.7 million for the same prior-year period due to the soft retail market and the unfavorable impact of foreign exchange rate changes. Best-selling titles in 2009 included Glenn Beck’s Arguing with Idiots and Under the Dome by Stephen King.

Publishing OIBDA of $50.2 million and operating income of $42.5 million for 2009 decreased 43% and 46%, respectively. The revenue decline and higher royalty expenses were partially offset by lower production costs, as well as lower operating expenses resulting from cost-savings initiatives.

Overall, parent company CBS reported adjusted operating income increased by 11% to $569.2 million for the fourth quarter, and net earnings rose 23%.