Outdoor Channel Holdings Inc. (OUTD, Financial) filed Quarterly Report for the period ended 2010-03-31.
Outdoor Channel Holdings Inc. has a market cap of $171.4 million; its shares were traded at around $6.74 with and P/S ratio of 1.9. OUTD is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Our cost of services consists primarily of the cost of providing our broadcast signal and programming to the distributors for transmission to the consumer. Cost of services includes programming costs, satellite transmission fees, production and operations costs, and other direct costs. In addition, cost of services includes production related labor and other costs related to our Production Services segment. Total cost of services for the three months ended March 31, 2010 was $8,906,000, an increase of $149,000, or 1.7%, compared to $8,757,000 for the three months ended March 31, 2009. As a percentage of revenues, total cost of services was 50.0% and 51.6% in the three months ended March 31, 2010 and 2009, respectively.
Production and operations costs for the three months ended March 31, 2009 were $7,099,000, an increase of $506,000, or 7.7%, compared to $6,593,000 for the three months ended March 31, 2009. The increase in costs relates primarily to increased production costs of approximately $294,000 associated with the higher production services revenue from our Production Services segment recognized during the three months ended March 31, 2010 as compared to the same period in 2009, partially offset by a reduction in personnel and the compensation and related costs of approximately $81,000. In addition, the increase relates to the inclusion of production costs for the full three months ended March 31, 2010 whereas production costs for the three months ended March 31, 2009 excluded costs prior to our acquisition of our Productions Services segment on January 12, 2009. Also contributing to this increase was increased TOC segment personnel and related compensation costs in broadband services of approximately $172,000 and increased TOC segment production costs associated with an annual marketing event of approximately $90,000.
Other direct costs for the three months ended March 31, 2010 were $112,000, an increase of $15,000, or 15.5%, compared to $97,000 for the three months ended March 31, 2009. Our other direct costs may increase over the foreseeable future due to the amortization of subscriber acquisition fees, also referred to as launch support fees, where the costs are in excess of the related subscriber revenue.
Advertising expenses for the three months ended March 31, 2010 were $286,000, a decrease of $173,000, or 37.7%, compared to $459,000 for the three months ended March 31, 2009. The decrease was primarily due to an overall decrease in spending on advertising materials, programs and campaigns.
Selling, general and administrative expenses for the three months ended March 31, 2010 were $10,397,000, an increase of $1,190,000, or 12.9%, compared to $9,207,000 for the three months ended March 31, 2009. As a percentage of revenues, selling, general and administrative expenses were 58.3% and 54.2% for the three months ended March 31, 2010 and 2009, respectively. The increase in selling, general and administrative expenses in our TOC segment for the three months ended March 31, 2010 as compared to the same period in 2009 relates primarily to increased legal fees related to potential acquisition activity of approximately $160,000, increased accounting fees related to our annual audit and tax compliance of approximately $122,000, increased professional fees related to public company and corporate governance matters of approximately $415,000, and expenses related to annual marketing events held during the fir
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Outdoor Channel Holdings Inc. has a market cap of $171.4 million; its shares were traded at around $6.74 with and P/S ratio of 1.9. OUTD is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Advertising revenue for the three months ended March 31, 2010 was $7,292,000, a decrease of $502,000, or 6.4%, compared to $7,794,000 for the three months ended March 31, 2009. The decrease in advertising revenue for the three months ended March 31, 2010 as compared to the same period a year ago was due primarily to a reduced amount of advertising inventory being sold to our time-buy producers and lower infomercial revenues partially offset by increased website advertising revenues. We expect demand for our advertising inventory will fluctuate within our programming genre niche due primarily to current economic conditions. These conditions make it harder to estimate future revenues because advertisers are generally buying inventory much closer to the actual time of airing instead of contracting for the advertising inventory in advance. In addition, we expect continued competitive pressure to negatively impact future long-form advertising revenue.Our cost of services consists primarily of the cost of providing our broadcast signal and programming to the distributors for transmission to the consumer. Cost of services includes programming costs, satellite transmission fees, production and operations costs, and other direct costs. In addition, cost of services includes production related labor and other costs related to our Production Services segment. Total cost of services for the three months ended March 31, 2010 was $8,906,000, an increase of $149,000, or 1.7%, compared to $8,757,000 for the three months ended March 31, 2009. As a percentage of revenues, total cost of services was 50.0% and 51.6% in the three months ended March 31, 2010 and 2009, respectively.
Production and operations costs for the three months ended March 31, 2009 were $7,099,000, an increase of $506,000, or 7.7%, compared to $6,593,000 for the three months ended March 31, 2009. The increase in costs relates primarily to increased production costs of approximately $294,000 associated with the higher production services revenue from our Production Services segment recognized during the three months ended March 31, 2010 as compared to the same period in 2009, partially offset by a reduction in personnel and the compensation and related costs of approximately $81,000. In addition, the increase relates to the inclusion of production costs for the full three months ended March 31, 2010 whereas production costs for the three months ended March 31, 2009 excluded costs prior to our acquisition of our Productions Services segment on January 12, 2009. Also contributing to this increase was increased TOC segment personnel and related compensation costs in broadband services of approximately $172,000 and increased TOC segment production costs associated with an annual marketing event of approximately $90,000.
Other direct costs for the three months ended March 31, 2010 were $112,000, an increase of $15,000, or 15.5%, compared to $97,000 for the three months ended March 31, 2009. Our other direct costs may increase over the foreseeable future due to the amortization of subscriber acquisition fees, also referred to as launch support fees, where the costs are in excess of the related subscriber revenue.
Advertising expenses for the three months ended March 31, 2010 were $286,000, a decrease of $173,000, or 37.7%, compared to $459,000 for the three months ended March 31, 2009. The decrease was primarily due to an overall decrease in spending on advertising materials, programs and campaigns.
Selling, general and administrative expenses for the three months ended March 31, 2010 were $10,397,000, an increase of $1,190,000, or 12.9%, compared to $9,207,000 for the three months ended March 31, 2009. As a percentage of revenues, selling, general and administrative expenses were 58.3% and 54.2% for the three months ended March 31, 2010 and 2009, respectively. The increase in selling, general and administrative expenses in our TOC segment for the three months ended March 31, 2010 as compared to the same period in 2009 relates primarily to increased legal fees related to potential acquisition activity of approximately $160,000, increased accounting fees related to our annual audit and tax compliance of approximately $122,000, increased professional fees related to public company and corporate governance matters of approximately $415,000, and expenses related to annual marketing events held during the fir
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