UNITED STATES SECURITIES AND EXCHANGE COMMISSION | ||
Washington, D.C. 20549 |
For the quarterly period ended |
MEREDITH CORPORATION | |||||
(Exact name of registrant as specified in its charter) | |||||
Iowa | 42-0410230 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
1716 Locust Street, | Des Moines, | Iowa | 50309-3023 | |||||||||||
(Address of principal executive offices) | (ZIP Code) |
Registrant’s telephone number, including area code: | (515) | 284-3000 | ||||||
Former name, former address, and former fiscal year, if changed since last report: Not applicable |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||||||||
Common Stock, par value $1 | MDP | New York Stock Exchange |
Shares of stock outstanding at | |||||
Common shares | |||||
Class B shares | |||||
Total common and |
TABLE OF CONTENTS | ||||||||||||||
Page | ||||||||||||||
Part I - Financial Information | ||||||||||||||
Item 1. | Financial Statements (Unaudited) | |||||||||||||
Condensed Consolidated Balance Sheets as of | ||||||||||||||
Condensed Consolidated Statements of Earnings for the Three | ||||||||||||||
Condensed Consolidated Statements of Comprehensive Income for the Three | ||||||||||||||
Condensed Consolidated Statements of Shareholders' Equity for the Three | ||||||||||||||
Condensed Consolidated Statements of Cash Flows for the | ||||||||||||||
Notes to Condensed Consolidated Financial Statements | ||||||||||||||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |||||||||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |||||||||||||
Item 4. | Controls and Procedures | |||||||||||||
Part II - Other Information | ||||||||||||||
Item 1A. | Risk Factors | |||||||||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||||||||||||
Item 6. | Exhibits | |||||||||||||
Signature | ||||||||||||||
Meredith Corporation and its consolidated subsidiaries are referred to in this Quarterly Report on Form 10-Q (Form 10-Q) as Meredith, the Company, we, our, and us. |
PART I | FINANCIAL INFORMATION |
Item 1. | Financial Statements |
Assets | December 31, 2019 | June 30, 2019 | ||||||
(In millions) | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 21.2 | $ | 45.0 | ||||
Accounts receivable, net | 616.6 | 609.1 | ||||||
Inventories | 49.5 | 62.7 | ||||||
Current portion of subscription acquisition costs | 255.5 | 242.0 | ||||||
Assets held-for-sale | 51.8 | 321.0 | ||||||
Other current assets | 67.8 | 70.3 | ||||||
Total current assets | 1,062.4 | 1,350.1 | ||||||
Property, plant, and equipment | 905.7 | 897.9 | ||||||
Less accumulated depreciation | (463.6 | ) | (447.6 | ) | ||||
Net property, plant, and equipment | 442.1 | 450.3 | ||||||
Operating lease assets | 487.7 | — | ||||||
Subscription acquisition costs | 242.4 | 273.9 | ||||||
Other assets | 274.7 | 269.6 | ||||||
Intangible assets, net | 1,754.1 | 1,813.6 | ||||||
Goodwill | 1,969.8 | 1,979.4 | ||||||
Total assets | $ | 6,233.2 | $ | 6,136.9 |
Assets | September 30, 2020 | June 30, 2020 | |||||||||
(In millions except per share data) | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 201.0 | $ | 132.4 | |||||||
Accounts receivable, net | 484.7 | 461.9 | |||||||||
Inventories | 32.9 | 34.2 | |||||||||
Current portion of subscription acquisition costs | 225.2 | 213.2 | |||||||||
Other current assets | 73.3 | 43.1 | |||||||||
Total current assets | 1,017.1 | 884.8 | |||||||||
Property, plant, and equipment | 886.4 | 883.3 | |||||||||
Less accumulated depreciation | (498.5) | (483.4) | |||||||||
Net property, plant, and equipment | 387.9 | 399.9 | |||||||||
Operating lease assets | 396.1 | 404.6 | |||||||||
Subscription acquisition costs | 234.8 | 221.6 | |||||||||
Other assets | 229.6 | 232.4 | |||||||||
Intangible assets, net | 1,616.9 | 1,647.5 | |||||||||
Goodwill | 1,719.4 | 1,719.3 | |||||||||
Total assets | $ | 5,601.8 | $ | 5,510.1 | |||||||
Current liabilities | |||||||||||
Current portion of long-term debt | $ | 4.1 | $ | 4.1 | |||||||
Current portion of operating lease liabilities | 35.6 | 35.2 | |||||||||
Accounts payable | 137.6 | 121.1 | |||||||||
Accrued expenses and other liabilities | 161.6 | 168.1 | |||||||||
Current portion of unearned revenues | 413.6 | 403.2 | |||||||||
Total current liabilities | 752.5 | 731.7 | |||||||||
Long-term debt | 2,983.5 | 2,981.8 | |||||||||
Operating lease liabilities | 458.2 | 466.7 | |||||||||
Unearned revenues | 280.1 | 267.5 | |||||||||
Deferred income taxes | 467.9 | 463.8 | |||||||||
Other noncurrent liabilities | 211.1 | 210.4 | |||||||||
Total liabilities | 5,153.3 | 5,121.9 | |||||||||
Shareholders' equity | |||||||||||
Series preferred stock, par value $1 per share | 0 | 0 | |||||||||
Common stock, par value $1 per share | 40.4 | 40.3 | |||||||||
Class B stock, par value $1 per share | 5.1 | 5.1 | |||||||||
Additional paid-in capital | 236.3 | 227.6 | |||||||||
Retained earnings | 242.0 | 197.6 | |||||||||
Accumulated other comprehensive loss | (75.3) | (82.4) | |||||||||
Total shareholders' equity | 448.5 | 388.2 | |||||||||
Total liabilities and shareholders' equity | $ | 5,601.8 | $ | 5,510.1 |
Liabilities, Redeemable Convertible Preferred Stock, and Shareholders' Equity | December 31, 2019 | June 30, 2019 | ||||||
(In millions except per share data) | ||||||||
Current liabilities | ||||||||
Current portion of operating lease liabilities | $ | 34.9 | $ | — | ||||
Accounts payable | 149.4 | 242.6 | ||||||
Accrued expenses and other liabilities | 274.5 | 307.2 | ||||||
Current portion of unearned revenues | 428.3 | 458.9 | ||||||
Liabilities associated with assets held-for-sale | 1.8 | 252.1 | ||||||
Total current liabilities | 888.9 | 1,260.8 | ||||||
Long-term debt | 2,355.9 | 2,333.3 | ||||||
Operating lease liabilities | 484.2 | — | ||||||
Unearned revenues | 299.1 | 318.6 | ||||||
Deferred income taxes | 520.1 | 506.2 | ||||||
Other noncurrent liabilities | 205.5 | 203.2 | ||||||
Total liabilities | 4,753.7 | 4,622.1 | ||||||
Redeemable, convertible Series A preferred stock, par value $1 per share, $1,000 per share liquidation preference | 549.2 | 540.2 | ||||||
Shareholders' equity | ||||||||
Series preferred stock, par value $1 per share | — | — | ||||||
Common stock, par value $1 per share | 40.2 | 40.1 | ||||||
Class B stock, par value $1 per share | 5.1 | 5.1 | ||||||
Additional paid-in capital | 223.2 | 216.7 | ||||||
Retained earnings | 702.9 | 759.0 | ||||||
Accumulated other comprehensive loss | (41.1 | ) | (46.3 | ) | ||||
Total shareholders' equity | 930.3 | 974.6 | ||||||
Total liabilities, redeemable convertible preferred stock, and shareholders' equity | $ | 6,233.2 | $ | 6,136.9 |
Three months ended September 30, | 2020 | 2019 | ||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||
Advertising related | $ | 358.5 | $ | 379.6 | ||||||||||||||||||||||
Consumer related | 318.7 | 323.1 | ||||||||||||||||||||||||
Other | 16.3 | 22.5 | ||||||||||||||||||||||||
Total revenues | 693.5 | 725.2 | ||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||
Production, distribution, and editorial | 241.1 | 273.7 | ||||||||||||||||||||||||
Selling, general, and administrative | 311.2 | 330.8 | ||||||||||||||||||||||||
Acquisition, disposition, and restructuring related activities | 14.1 | 14.1 | ||||||||||||||||||||||||
Depreciation and amortization | 49.0 | 58.5 | ||||||||||||||||||||||||
Impairment of long-lived assets | 0 | 5.2 | ||||||||||||||||||||||||
Total operating expenses | 615.4 | 682.3 | ||||||||||||||||||||||||
Income from operations | 78.1 | 42.9 | ||||||||||||||||||||||||
Non-operating income, net | 5.6 | 8.6 | ||||||||||||||||||||||||
Interest expense, net | (43.5) | (38.9) | ||||||||||||||||||||||||
Earnings from continuing operations before income taxes | 40.2 | 12.6 | ||||||||||||||||||||||||
Income tax benefit (expense) | 2.1 | (0.5) | ||||||||||||||||||||||||
Earnings from continuing operations | 42.3 | 12.1 | ||||||||||||||||||||||||
Loss from discontinued operations, net of income taxes | 0 | (6.0) | ||||||||||||||||||||||||
Net earnings | $ | 42.3 | $ | 6.1 | ||||||||||||||||||||||
Earnings (loss) attributable to common shareholders | $ | 40.3 | $ | (13.9) | ||||||||||||||||||||||
Basic earnings (loss) per share attributable to common shareholders | ||||||||||||||||||||||||||
Continuing operations | $ | 0.88 | $ | (0.17) | ||||||||||||||||||||||
Discontinued operations | 0 | (0.13) | ||||||||||||||||||||||||
Basic earnings (loss) per common share | $ | 0.88 | $ | (0.30) | ||||||||||||||||||||||
Basic average common shares outstanding | 46.0 | 45.6 | ||||||||||||||||||||||||
Diluted earnings (loss) per share attributable to common shareholders | ||||||||||||||||||||||||||
Continuing operations | $ | 0.88 | $ | (0.17) | ||||||||||||||||||||||
Discontinued operations | 0 | (0.13) | ||||||||||||||||||||||||
Diluted earnings (loss) per common share | $ | 0.88 | $ | (0.30) | ||||||||||||||||||||||
Diluted average common shares outstanding | 46.0 | 45.6 | ||||||||||||||||||||||||
Three Months | Six Months | |||||||||||||||
Periods ended December 31, | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(In millions except per share data) | ||||||||||||||||
Revenues | ||||||||||||||||
Advertising related | $ | 427.3 | $ | 492.3 | $ | 806.9 | $ | 917.8 | ||||||||
Consumer related | 348.9 | 368.2 | 672.0 | 696.0 | ||||||||||||
Other | 34.3 | 17.9 | 56.8 | 39.0 | ||||||||||||
Total revenues | 810.5 | 878.4 | 1,535.7 | 1,652.8 | ||||||||||||
Operating expenses | ||||||||||||||||
Production, distribution, and editorial | 280.1 | 305.9 | 553.8 | 595.0 | ||||||||||||
Selling, general, and administrative | 338.4 | 346.0 | 669.2 | 696.3 | ||||||||||||
Acquisition, disposition, and restructuring related activities | (0.5 | ) | 27.7 | 13.6 | 44.8 | |||||||||||
Depreciation and amortization | 58.6 | 65.1 | 117.1 | 128.8 | ||||||||||||
Impairment of long-lived assets | — | — | 5.2 | — | ||||||||||||
Total operating expenses | 676.6 | 744.7 | 1,358.9 | 1,464.9 | ||||||||||||
Income from operations | 133.9 | 133.7 | 176.8 | 187.9 | ||||||||||||
Non-operating income (expense), net | (7.2 | ) | 5.9 | 1.4 | 13.2 | |||||||||||
Interest expense, net | (36.9 | ) | (50.9 | ) | (75.8 | ) | (92.5 | ) | ||||||||
Earnings from continuing operations before income taxes | 89.8 | 88.7 | 102.4 | 108.6 | ||||||||||||
Income tax expense | (27.7 | ) | (0.6 | ) | (28.2 | ) | (4.3 | ) | ||||||||
Earnings from continuing operations | 62.1 | 88.1 | 74.2 | 104.3 | ||||||||||||
Loss from discontinued operations, net of income taxes | (24.3 | ) | (69.5 | ) | (30.3 | ) | (68.7 | ) | ||||||||
Net earnings | $ | 37.8 | $ | 18.6 | $ | 43.9 | $ | 35.6 | ||||||||
Earnings (loss) attributable to common shareholders | $ | 19.0 | $ | (0.5 | ) | $ | 4.2 | $ | (2.1 | ) | ||||||
Basic earnings (loss) per share attributable to common shareholders | ||||||||||||||||
Continuing operations | $ | 0.93 | $ | 1.50 | $ | 0.75 | $ | 1.43 | ||||||||
Discontinued operations | (0.54 | ) | (1.53 | ) | (0.66 | ) | (1.52 | ) | ||||||||
Basic earnings (loss) per common share | $ | 0.39 | $ | (0.03 | ) | $ | 0.09 | $ | (0.09 | ) | ||||||
Basic average common shares outstanding | 45.7 | 45.3 | 45.7 | 45.2 | ||||||||||||
Diluted earnings (loss) per share attributable to common shareholders | ||||||||||||||||
Continuing operations | $ | 0.91 | $ | 1.46 | $ | 0.75 | $ | 1.41 | ||||||||
Discontinued operations | (0.51 | ) | (1.47 | ) | (0.66 | ) | (1.46 | ) | ||||||||
Diluted earnings (loss) per common share | $ | 0.40 | $ | (0.01 | ) | $ | 0.09 | $ | (0.05 | ) | ||||||
Diluted average common shares outstanding | 47.3 | 47.3 | 45.7 | 47.3 |
Three months ended September 30, | 2020 | 2019 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Net earnings | $ | 42.3 | $ | 6.1 | ||||||||||||||||||||||
Other comprehensive income (loss), net of income taxes | ||||||||||||||||||||||||||
Pension and other postretirement benefit plans activity | (1.0) | 0.5 | ||||||||||||||||||||||||
Unrealized foreign currency translation gain (loss), net | 8.1 | (4.9) | ||||||||||||||||||||||||
Other comprehensive income (loss), net of income taxes | 7.1 | (4.4) | ||||||||||||||||||||||||
Comprehensive income | $ | 49.4 | $ | 1.7 |
Three Months | Six Months | |||||||||||||||
Periods ended December 31, | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(In millions) | ||||||||||||||||
Net earnings | $ | 37.8 | $ | 18.6 | $ | 43.9 | $ | 35.6 | ||||||||
Other comprehensive income (loss), net of income taxes | ||||||||||||||||
Pension and other postretirement benefit plans activity | 0.4 | 0.4 | 0.9 | 0.8 | ||||||||||||
Unrealized foreign currency translation gain (loss), net | 9.2 | (3.0 | ) | 4.3 | (5.3 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | 9.6 | (2.6 | ) | 5.2 | (4.5 | ) | ||||||||||
Comprehensive income | $ | 47.4 | $ | 16.0 | $ | 49.1 | $ | 31.1 |
(In millions except per share data) | Common Stock - $1 par value | Class B Stock - $1 par value | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||
Balance at June 30, 2020 | $ | 40.3 | $ | 5.1 | $ | 227.6 | $ | 197.6 | $ | (82.4) | $ | 388.2 | ||||||||||||||
Net earnings | — | — | — | 42.3 | — | 42.3 | ||||||||||||||||||||
Other comprehensive income, net of income taxes | — | — | — | — | 7.1 | 7.1 | ||||||||||||||||||||
Shares issued under incentive plans, net of forfeitures | 0.1 | — | 0.3 | — | — | 0.4 | ||||||||||||||||||||
Purchases of Company stock | — | — | (0.4) | — | — | (0.4) | ||||||||||||||||||||
Share-based compensation | — | — | 8.8 | — | — | 8.8 | ||||||||||||||||||||
Cumulative effect adjustment for adoption of Accounting Standards Update 2016-13 | — | — | — | 2.1 | — | 2.1 | ||||||||||||||||||||
Balance at September 30, 2020 | $ | 40.4 | $ | 5.1 | $ | 236.3 | $ | 242.0 | $ | (75.3) | $ | 448.5 | ||||||||||||||
(In millions except per share data) | Common Stock - $1 par value | Class B Stock - $1 par value | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total | ||||||||||||||
Balance at June 30, 2019 | $ | 40.1 | $ | 5.1 | $ | 216.7 | $ | 759.0 | $ | (46.3 | ) | $ | 974.6 | |||||||
Net earnings | — | — | — | 6.1 | — | 6.1 | ||||||||||||||
Other comprehensive loss, net of income taxes | — | — | — | — | (4.4 | ) | (4.4 | ) | ||||||||||||
Shares issued under incentive plans, net of forfeitures | 0.1 | — | 0.4 | — | — | 0.5 | ||||||||||||||
Purchases of Company stock | (0.1 | ) | — | (1.7 | ) | — | — | (1.8 | ) | |||||||||||
Share-based compensation | — | — | 7.5 | — | — | 7.5 | ||||||||||||||
Dividends paid | ||||||||||||||||||||
Common stock ($0.575 dividend per share) | — | — | — | (24.3 | ) | — | (24.3 | ) | ||||||||||||
Class B stock ($0.575 dividend per share) | — | — | — | (2.9 | ) | — | (2.9 | ) | ||||||||||||
Series A preferred stock ($22.19 dividend per share) | — | — | — | (14.4 | ) | — | (14.4 | ) | ||||||||||||
Accretion of Series A preferred stock | — | — | — | (4.5 | ) | — | (4.5 | ) | ||||||||||||
Transition adjustment for adoption of Accounting Standards Update 2016-02 | — | — | — | (7.8 | ) | — | (7.8 | ) | ||||||||||||
Balance at September 30, 2019 | 40.1 | 5.1 | 222.9 | 711.2 | (50.7 | ) | 928.6 | |||||||||||||
Net earnings | — | — | — | 37.8 | — | 37.8 | ||||||||||||||
Other comprehensive income, net of income taxes | — | — | — | — | 9.6 | 9.6 | ||||||||||||||
Shares issued under incentive plans, net of forfeitures | 0.1 | — | 0.5 | — | — | 0.6 | ||||||||||||||
Purchases of Company stock | — | — | (2.4 | ) | — | — | (2.4 | ) | ||||||||||||
Share-based compensation | — | — | 2.2 | — | — | 2.2 | ||||||||||||||
Dividends paid | ||||||||||||||||||||
Common stock ($0.575 dividend per share) | — | — | — | (24.5 | ) | — | (24.5 | ) | ||||||||||||
Class B stock ($0.575 dividend per share) | — | — | — | (3.0 | ) | — | (3.0 | ) | ||||||||||||
Series A preferred stock ($21.72 dividend per share) | — | — | — | (14.1 | ) | — | (14.1 | ) | ||||||||||||
Accretion of Series A preferred stock | — | — | — | (4.5 | ) | — | (4.5 | ) | ||||||||||||
Balance at December 31, 2019 | $ | 40.2 | $ | 5.1 | $ | 223.2 | $ | 702.9 | $ | (41.1 | ) | $ | 930.3 |
(In millions except per share data) | Common Stock - $1 par value | Class B Stock - $1 par value | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total | ||||||||||||||||||||
Balance at June 30, 2019 | $ | 40.1 | $ | 5.1 | $ | 216.7 | $ | 759.0 | $ | (46.3) | $ | 974.6 | ||||||||||||||
Net earnings | — | — | — | 6.1 | — | 6.1 | ||||||||||||||||||||
Other comprehensive loss, net of income taxes | — | — | — | — | (4.4) | (4.4) | ||||||||||||||||||||
Stock issued under various incentive plans, net of forfeitures | 0.1 | — | 0.4 | — | — | 0.5 | ||||||||||||||||||||
Purchases of Company stock | (0.1) | — | (1.7) | — | — | (1.8) | ||||||||||||||||||||
Share-based compensation | — | — | 7.5 | — | — | 7.5 | ||||||||||||||||||||
Dividends paid | ||||||||||||||||||||||||||
Common stock ($0.575 dividend per share) | — | — | — | (24.3) | — | (24.3) | ||||||||||||||||||||
Class B stock ($0.575 dividend per share) | — | — | — | (2.9) | — | (2.9) | ||||||||||||||||||||
Series A preferred stock ($22.19 dividend per share) | — | — | — | (14.4) | — | (14.4) | ||||||||||||||||||||
Accretion of Series A preferred stock | (4.5) | (4.5) | ||||||||||||||||||||||||
Cumulative effect adjustment for adoption of Accounting Standards Update 2016-02 | — | — | — | (7.8) | — | (7.8) | ||||||||||||||||||||
Balance at September 30, 2019 | $ | 40.1 | $ | 5.1 | $ | 222.9 | $ | 711.2 | $ | (50.7) | $ | 928.6 | ||||||||||||||
(In millions except per share data) | Common Stock - $1 par value | Class B Stock - $1 par value | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total | ||||||||||||||
Balance at June 30, 2018 | $ | 39.8 | $ | 5.1 | $ | 199.5 | $ | 889.8 | $ | (36.7 | ) | $ | 1,097.5 | |||||||
Net earnings | — | — | — | 17.0 | — | 17.0 | ||||||||||||||
Other comprehensive loss, net of income taxes | — | — | — | — | (1.9 | ) | (1.9 | ) | ||||||||||||
Stock issued under various incentive plans, net of forfeitures | 0.2 | — | 0.9 | — | — | 1.1 | ||||||||||||||
Purchases of Company stock | (0.1 | ) | — | (3.1 | ) | — | — | (3.2 | ) | |||||||||||
Share-based compensation | — | — | 10.2 | — | — | 10.2 | ||||||||||||||
Dividends paid | ||||||||||||||||||||
Common stock ($0.545 dividend per share) | — | — | — | (23.0 | ) | — | (23.0 | ) | ||||||||||||
Class B stock ($0.545 dividend per share) | — | — | — | (2.8 | ) | — | (2.8 | ) | ||||||||||||
Series A preferred stock ($21.49 dividend per share) | — | — | — | (14.0 | ) | — | (14.0 | ) | ||||||||||||
Accretion of Series A preferred stock | (4.3 | ) | (4.3 | ) | ||||||||||||||||
Cumulative effect adjustment for adoption of Accounting Standards Update 2016-09 | — | — | — | 2.4 | — | 2.4 | ||||||||||||||
Balance at September 30, 2018 | 39.9 | 5.1 | 207.5 | 865.1 | (38.6 | ) | 1,079.0 | |||||||||||||
Net earnings | — | — | — | 18.6 | — | 18.6 | ||||||||||||||
Other comprehensive loss, net of income taxes | — | — | — | — | (2.6 | ) | (2.6 | ) | ||||||||||||
Stock issued under various incentive plans, net of forfeitures | 0.1 | — | 1.3 | — | — | 1.4 | ||||||||||||||
Purchases of Company stock | — | — | (1.8 | ) | — | — | (1.8 | ) | ||||||||||||
Share-based compensation | — | — | 5.7 | — | — | 5.7 | ||||||||||||||
Dividends paid | ||||||||||||||||||||
Common stock ($0.545 dividend per share) | — | — | — | (23.1 | ) | — | (23.1 | ) | ||||||||||||
Class B stock ($0.545 dividend per share) | — | — | — | (2.8 | ) | — | (2.8 | ) | ||||||||||||
Series A preferred stock ($22.19 dividend per share) | — | — | — | (14.4 | ) | — | (14.4 | ) | ||||||||||||
Accretion of Series A preferred stock | — | — | — | (4.3 | ) | — | (4.3 | ) | ||||||||||||
Balance at December 31, 2018 | $ | 40.0 | $ | 5.1 | $ | 212.7 | $ | 839.1 | $ | (41.2 | ) | $ | 1,055.7 |
Three months ended September 30, | 2020 | 2019 | |||||||||
(In millions) | |||||||||||
Cash flows from operating activities | |||||||||||
Net earnings | $ | 42.3 | $ | 6.1 | |||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities | |||||||||||
Depreciation | 18.4 | 19.8 | |||||||||
Amortization | 30.6 | 38.7 | |||||||||
Non-cash lease expense | 9.0 | 9.8 | |||||||||
Share-based compensation | 8.8 | 7.5 | |||||||||
Deferred income taxes | 3.0 | 13.1 | |||||||||
Amortization of original issue discount and debt issuance costs | 3.1 | 1.7 | |||||||||
Amortization of broadcast rights | 4.6 | 4.9 | |||||||||
Loss (gain) on sale of assets, net | (3.0) | 1.1 | |||||||||
Write-down of impaired assets | 0 | 9.5 | |||||||||
Changes in assets and liabilities, net of acquisitions | (37.9) | (125.7) | |||||||||
Net cash provided by (used in) operating activities | 78.9 | (13.5) | |||||||||
Cash flows from investing activities | |||||||||||
Acquisitions of and investments in businesses and assets, net of cash acquired | 0 | (14.5) | |||||||||
Net proceeds from disposition of assets, net of cash sold | 0 | 0.3 | |||||||||
Additions to property, plant, and equipment | (9.3) | (15.9) | |||||||||
Other | 0.3 | 0 | |||||||||
Net cash used in investing activities | (9.0) | (30.1) | |||||||||
Cash flows from financing activities | |||||||||||
Proceeds from issuance of long-term debt | 0 | 165.0 | |||||||||
Repayments of long-term debt | (1.0) | (105.0) | |||||||||
Dividends paid | 0 | (41.6) | |||||||||
Purchases of Company stock | (0.4) | (1.8) | |||||||||
Proceeds from common stock issued | 0.4 | 0.5 | |||||||||
Financing lease payments | (0.6) | (0.7) | |||||||||
Net cash provided by (used in) financing activities | (1.6) | 16.4 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 0.3 | 0.3 | |||||||||
Change in cash in assets held-for-sale | 0 | 9.3 | |||||||||
Net increase (decrease) in cash and cash equivalents | 68.6 | (17.6) | |||||||||
Cash and cash equivalents at beginning of period | 132.4 | 45.0 | |||||||||
Cash and cash equivalents at end of period | $ | 201.0 | $ | 27.4 |
Six months ended December 31, | 2019 | 2018 | |||||
(In millions) | |||||||
Cash flows from operating activities | |||||||
Net earnings | $ | 43.9 | $ | 35.6 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities | |||||||
Depreciation | 39.4 | 51.2 | |||||
Amortization | 77.7 | 77.6 | |||||
Non-cash lease expense | 19.6 | — | |||||
Share-based compensation | 9.7 | 15.9 | |||||
Deferred income taxes | 6.1 | 68.5 | |||||
Amortization of original issue discount and debt issuance costs | 3.3 | 4.4 | |||||
Amortization of broadcast rights | 9.6 | 10.2 | |||||
Gain on sale of assets, net | (9.4 | ) | (12.3 | ) | |||
Loss on extinguishment of debt | — | 15.1 | |||||
Write-down of impaired assets | 21.2 | — | |||||
Fair value adjustments to contingent consideration | 0.3 | (0.1 | ) | ||||
Changes in assets and liabilities, net of acquisitions | (149.3 | ) | (206.7 | ) | |||
Net cash provided by operating activities | 72.1 | 59.4 | |||||
Cash flows from investing activities | |||||||
Acquisitions of and investments in businesses and assets, net of cash acquired | (23.0 | ) | (1.7 | ) | |||
Proceeds from disposition of assets, net of cash sold | 33.8 | 347.8 | |||||
Additions to property, plant, and equipment | (34.5 | ) | (17.0 | ) | |||
Net cash provided by (used in) investing activities | (23.7 | ) | 329.1 | ||||
Cash flows from financing activities | |||||||
Proceeds from issuance of long-term debt | 280.0 | — | |||||
Repayments of long-term debt | (260.0 | ) | (646.9 | ) | |||
Dividends paid | (83.2 | ) | (80.1 | ) | |||
Purchases of Company stock | (4.2 | ) | (5.0 | ) | |||
Proceeds from common stock issued | 1.1 | 2.5 | |||||
Payment of acquisition-related contingent consideration | — | (19.3 | ) | ||||
Financing lease payments | (0.7 | ) | — | ||||
Net cash used in financing activities | (67.0 | ) | (748.8 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (0.1 | ) | (0.6 | ) | |||
Change in cash in assets held-for-sale | (5.1 | ) | 0.4 | ||||
Net decrease in cash and cash equivalents | (23.8 | ) | (360.5 | ) | |||
Cash and cash equivalents at beginning of period | 45.0 | 437.6 | |||||
Cash and cash equivalents at end of period | $ | 21.2 | $ | 77.1 |
Meredith Corporation and Subsidiaries | |||||
Notes to Condensed Consolidated Financial Statements | |||||
(Unaudited) |
(In millions) | National Media Acquisitions | ||
Consideration | |||
Cash | $ | 24.2 | |
Payment in escrow | 0.9 | ||
Contingent consideration arrangement | 4.1 | ||
Fair value of total consideration transferred | $ | 29.2 | |
Recognized amounts of identifiable assets acquired and liabilities assumed | |||
Total identifiable assets acquired | $ | 23.3 | |
Total liabilities assumed | 1.2 | ||
Total identified net assets | 22.1 | ||
Goodwill | 7.1 | ||
Fair value of total consideration transferred | $ | 29.2 |
(In millions) | magazines.com | Stop, Breathe & Think | ||||
Intangible assets subject to amortization | ||||||
Publisher relationships | $ | 7.8 | $ | — | ||
Customer lists | — | 2.9 | ||||
Other | — | 4.3 | ||||
Total | 7.8 | 7.2 | ||||
Intangible assets not subject to amortization | ||||||
Trademark | 7.6 | — | ||||
Internet domain name | 0.5 | — | ||||
Total | 8.1 | — | ||||
Total intangible assets | $ | 15.9 | $ | 7.2 |
Condensed Consolidated Statements of Earnings | As Reported | Adjustment | As Adjusted | ||||||
(In millions) | |||||||||
For the three months ended September 30, 2018 | |||||||||
Consumer related revenue | $ | 315.3 | $ | 12.5 | $ | 327.8 | |||
Selling, general, and administrative expense | 337.8 | 12.5 | 350.3 | ||||||
For the three months ended December 31, 2018 | |||||||||
Consumer related revenue | $ | 352.5 | $ | 15.7 | $ | 368.2 | |||
Selling, general, and administrative expense | 330.3 | 15.7 | 346.0 |
(In millions) | December 31, 2019 | June 30, 2019 | ||||||
Raw materials | $ | 27.7 | $ | 42.7 | ||||
Work in process | 17.2 | 15.4 | ||||||
Finished goods | 4.6 | 4.6 | ||||||
Inventories | $ | 49.5 | $ | 62.7 |
(In millions) | September 30, 2020 | June 30, 2020 | ||||||||||||
Raw materials | $ | 16.8 | $ | 21.0 | ||||||||||
Work in process | 13.2 | 10.6 | ||||||||||||
Finished goods | 2.9 | 2.6 | ||||||||||||
Inventories | $ | 32.9 | $ | 34.2 |
(in millions) | December 31, 2019 | June 30, 2019 | ||||
Current assets | ||||||
Cash and cash equivalents | $ | — | $ | 5.1 | ||
Accounts receivable, net | 2.4 | 78.1 | ||||
Inventories | — | 0.1 | ||||
Current portion of subscription acquisition costs | — | 34.4 | ||||
Other current assets | — | 0.8 | ||||
Total current assets | 2.4 | 118.5 | ||||
Net property, plant, and equipment | 0.3 | 14.3 | ||||
Operating lease assets | 1.4 | — | ||||
Subscription acquisition costs | — | 19.2 | ||||
Other assets | 34.0 | 1.0 | ||||
Intangible assets, net | 0.8 | 43.9 | ||||
Goodwill | 12.9 | 124.1 | ||||
Total assets held-for-sale | $ | 51.8 | $ | 321.0 | ||
Current liabilities | ||||||
Current portion of operating lease liabilities | $ | 0.1 | $ | — | ||
Accounts payable | 0.4 | 45.2 | ||||
Accrued expenses and other liabilities | — | 27.8 | ||||
Current portion of unearned revenues | — | 67.9 | ||||
Deferred sale proceeds | — | 73.2 | ||||
Total current liabilities | 0.5 | 214.1 | ||||
Operating lease liabilities | 1.3 | — | ||||
Unearned revenues | — | 37.6 | ||||
Other noncurrent liabilities | — | 0.4 | ||||
Total liabilities associated with assets held-for-sale | $ | 1.8 | $ | 252.1 |
Three Months | Six Months | |||||||||||||||
Periods ended December 31, | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(In millions except per share data) | ||||||||||||||||
Revenues | $ | 25.3 | $ | 128.2 | $ | 110.8 | $ | 251.9 | ||||||||
Costs and expenses | (20.9 | ) | (109.6 | ) | (107.6 | ) | (225.9 | ) | ||||||||
Impairment of goodwill | (11.8 | ) | — | (16.0 | ) | — | ||||||||||
Interest expense | (0.8 | ) | (9.3 | ) | (2.0 | ) | (15.7 | ) | ||||||||
Gain on disposal | 3.0 | — | 3.0 | — | ||||||||||||
Earnings (loss) before income taxes | (5.2 | ) | 9.3 | (11.8 | ) | 10.3 | ||||||||||
Income tax expense | (19.1 | ) | (78.8 | ) | (18.5 | ) | (79.0 | ) | ||||||||
Loss from discontinued operations, net of income taxes | $ | (24.3 | ) | $ | (69.5 | ) | $ | (30.3 | ) | $ | (68.7 | ) | ||||
Loss per share from discontinued operations | ||||||||||||||||
Basic | $ | (0.54 | ) | $ | (1.53 | ) | $ | (0.66 | ) | $ | (1.52 | ) | ||||
Diluted | (0.51 | ) | (1.47 | ) | (0.66 | ) | (1.46 | ) |
Three months ended September 30, | 2019 | |||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||
Revenues | $ | 85.5 | ||||||||||||||||||||||||
Costs and expenses | (86.7) | |||||||||||||||||||||||||
Impairment of goodwill | (4.2) | |||||||||||||||||||||||||
Interest expense | (1.2) | |||||||||||||||||||||||||
Loss before income taxes | (6.6) | |||||||||||||||||||||||||
Income tax benefit | 0.6 | |||||||||||||||||||||||||
Loss from discontinued operations, net of income taxes | $ | (6.0) | ||||||||||||||||||||||||
Loss per share from discontinued operations | ||||||||||||||||||||||||||
Basic | $ | (0.13) | ||||||||||||||||||||||||
Diluted | (0.13) |
Periods ended December 31, 2019 | Three Months | Six Months | |||||
(In millions) | |||||||
Operating lease cost | $ | 16.7 | $ | 33.5 | |||
Variable lease cost | 0.5 | 1.1 | |||||
Short term lease cost | 0.1 | 0.2 | |||||
Sublease income | (1.6 | ) | (3.5 | ) | |||
Total lease cost | $ | 15.7 | $ | 31.3 |
Six months ended December 31, 2019 | |||
(In millions except for lease term and discount rate) | |||
Operating cash flows for operating leases | $ | 33.2 | |
Noncash lease liabilities arising from obtaining operating lease assets | 2.9 | ||
Weighted average remaining lease term (in years) | 11.4 | ||
Weighted average discount rate | 5.3 | % |
Years ending June 30, | |||
(In millions) | |||
2020 | $ | 30.9 | |
2021 | 61.4 | ||
2022 | 60.3 | ||
2023 | 60.1 | ||
2024 | 61.5 | ||
Thereafter | 426.8 | ||
Total lease payments | 701.0 | ||
Less: Interest | (181.9 | ) | |
Present value of lease liabilities | $ | 519.1 |
Payments Due In | |||||||||||||||||||||
Years ending June 30, | 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | Total | ||||||||||||||
(In millions) | |||||||||||||||||||||
Operating leases | $ | 61.3 | $ | 57.5 | $ | 54.9 | $ | 52.4 | $ | 52.8 | $ | 397.7 | $ | 676.6 |
September 30, 2020 | June 30, 2020 | |||||||||||||||||||||||||||||||||||||
(In millions) | Gross Amount | Accumulated Amortization | Net Amount | Gross Amount | Accumulated Amortization | Net Amount | ||||||||||||||||||||||||||||||||
Intangible assets subject to amortization | ||||||||||||||||||||||||||||||||||||||
National media | ||||||||||||||||||||||||||||||||||||||
Advertiser relationships | $ | 211.0 | $ | (187.6) | $ | 23.4 | $ | 211.0 | $ | (170.0) | $ | 41.0 | ||||||||||||||||||||||||||
Publisher relationships | 132.8 | (48.6) | 84.2 | 132.8 | (43.9) | 88.9 | ||||||||||||||||||||||||||||||||
Partner relationships | 98.2 | (42.7) | 55.5 | 98.2 | (38.7) | 59.5 | ||||||||||||||||||||||||||||||||
Customer relationships | 8.0 | (2.7) | 5.3 | 71.3 | (65.6) | 5.7 | ||||||||||||||||||||||||||||||||
Other | 23.9 | (15.4) | 8.5 | 26.3 | (16.9) | 9.4 | ||||||||||||||||||||||||||||||||
Local media | ||||||||||||||||||||||||||||||||||||||
Network affiliation agreements | 229.3 | (163.1) | 66.2 | 229.3 | (161.5) | 67.8 | ||||||||||||||||||||||||||||||||
Advertiser relationships | 12.5 | (11.1) | 1.4 | 12.5 | (10.1) | 2.4 | ||||||||||||||||||||||||||||||||
Retransmission agreements | 10.6 | (6.2) | 4.4 | 27.9 | (23.1) | 4.8 | ||||||||||||||||||||||||||||||||
Other | 0.7 | (0.6) | 0.1 | 1.7 | (1.6) | 0.1 | ||||||||||||||||||||||||||||||||
Total | $ | 727.0 | $ | (478.0) | 249.0 | $ | 811.0 | $ | (531.4) | 279.6 | ||||||||||||||||||||||||||||
Intangible assets not subject to amortization | ||||||||||||||||||||||||||||||||||||||
National media | ||||||||||||||||||||||||||||||||||||||
Trademarks | 706.7 | 706.7 | ||||||||||||||||||||||||||||||||||||
Internet domain names | 8.3 | 8.3 | ||||||||||||||||||||||||||||||||||||
Local media | ||||||||||||||||||||||||||||||||||||||
FCC licenses | 652.9 | 652.9 | ||||||||||||||||||||||||||||||||||||
Total | 1,367.9 | 1,367.9 | ||||||||||||||||||||||||||||||||||||
Intangible assets, net | $ | 1,616.9 | $ | 1,647.5 |
December 31, 2019 | June 30, 2019 | |||||||||||||||||||||||
(In millions) | Gross Amount | Accumulated Amortization | Net Amount | Gross Amount | Accumulated Amortization | Net Amount | ||||||||||||||||||
Intangible assets subject to amortization | ||||||||||||||||||||||||
National media | ||||||||||||||||||||||||
Advertiser relationships | $ | 211.0 | $ | (134.9 | ) | $ | 76.1 | $ | 213.3 | $ | (102.0 | ) | $ | 111.3 | ||||||||||
Publisher relationships | 132.8 | (34.5 | ) | 98.3 | 125.0 | (25.4 | ) | 99.6 | ||||||||||||||||
Partner relationships | 98.2 | (30.6 | ) | 67.6 | 98.2 | (22.7 | ) | 75.5 | ||||||||||||||||
Customer relationships | 70.4 | (62.1 | ) | 8.3 | 67.5 | (46.3 | ) | 21.2 | ||||||||||||||||
Other | 26.1 | (15.2 | ) | 10.9 | 23.2 | (14.9 | ) | 8.3 | ||||||||||||||||
Local media | ||||||||||||||||||||||||
Network affiliation agreements | 229.3 | (158.3 | ) | 71.0 | 229.3 | (155.1 | ) | 74.2 | ||||||||||||||||
Advertiser relationships | 12.5 | (8.0 | ) | 4.5 | 12.5 | (5.8 | ) | 6.7 | ||||||||||||||||
Retransmission agreements | 27.9 | (21.2 | ) | 6.7 | 27.9 | (19.1 | ) | 8.8 | ||||||||||||||||
Other | 1.7 | (1.4 | ) | 0.3 | 1.7 | (1.2 | ) | 0.5 | ||||||||||||||||
Total | $ | 809.9 | $ | (466.2 | ) | 343.7 | $ | 798.6 | $ | (392.5 | ) | 406.1 | ||||||||||||
Intangible assets not subject to amortization | ||||||||||||||||||||||||
National media | ||||||||||||||||||||||||
Trademarks | 726.9 | 724.5 | ||||||||||||||||||||||
Internet domain names | 8.3 | 7.8 | ||||||||||||||||||||||
Local media | ||||||||||||||||||||||||
FCC licenses | 675.2 | 675.2 | ||||||||||||||||||||||
Total | 1,410.4 | 1,407.5 | ||||||||||||||||||||||
Intangible assets, net | $ | 1,754.1 | $ | 1,813.6 |
Six months ended December 31, | 2019 | 2018 | ||||||||||||||||||||||
(In millions) | National Media | Local Media | Total | National Media | Local Media | Total | ||||||||||||||||||
Goodwill at beginning of period | $ | 1,862.8 | $ | 116.6 | $ | 1,979.4 | $ | 1,800.0 | $ | 115.8 | $ | 1,915.8 | ||||||||||||
Acquisitions | 7.1 | — | 7.1 | — | — | — | ||||||||||||||||||
Disposals | (16.7 | ) | — | (16.7 | ) | — | — | — | ||||||||||||||||
Acquisition adjustments | — | — | — | 56.9 | 0.9 | 57.8 | ||||||||||||||||||
Goodwill at end of period | $ | 1,853.2 | $ | 116.6 | $ | 1,969.8 | $ | 1,856.9 | $ | 116.7 | $ | 1,973.6 |
Three months ended September 30, | 2020 | 2019 | ||||||||||||||||||||||||||||||
(In millions) | Goodwill | Accumulated Impairment Loss | Net Carrying Amount | Goodwill | Accumulated Impairment Loss | Net Carrying Amount | ||||||||||||||||||||||||||
National media | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 1,855.4 | $ | (252.7) | $ | 1,602.7 | $ | 1,862.8 | $ | — | $ | 1,862.8 | ||||||||||||||||||||
Acquisition adjustments | (0.1) | — | (0.1) | 0 | — | 0 | ||||||||||||||||||||||||||
Foreign currency translation | 0.2 | — | 0.2 | 0 | — | 0 | ||||||||||||||||||||||||||
Balance at end of period | 1,855.5 | (252.7) | 1,602.8 | 1,862.8 | — | 1,862.8 | ||||||||||||||||||||||||||
Local media | ||||||||||||||||||||||||||||||||
Balance at beginning of period | 116.6 | — | 116.6 | 116.6 | — | 116.6 | ||||||||||||||||||||||||||
Activity | 0 | — | 0 | 0 | — | 0 | ||||||||||||||||||||||||||
Balance at end of period | 116.6 | — | 116.6 | 116.6 | — | 116.6 | ||||||||||||||||||||||||||
Total | $ | 1,972.1 | $ | (252.7) | $ | 1,719.4 | $ | 1,979.4 | $ | — | $ | 1,979.4 |
Amount Accrued in the Period | Total Amount Expected to be Incurred | |||||||||||||||
Three Months | Six Months | |||||||||||||||
Periods ended December 31, | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(in millions) | ||||||||||||||||
National media | $ | — | $ | 17.3 | $ | 8.8 | $ | 23.3 | $ | 8.8 | ||||||
Local media | 1.7 | 0.2 | 2.4 | 1.7 | 2.4 | |||||||||||
Unallocated Corporate | 2.1 | 5.3 | 2.5 | 10.3 | 3.1 | |||||||||||
$ | 3.8 | $ | 22.8 | $ | 13.7 | $ | 35.3 | $ | 14.3 |
Amount Accrued in the Period | Total Amount Expected to be Incurred | |||||||||||||||||||
Three months ended September 30, | 2020 | 2019 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
National media | $ | 4.6 | $ | 8.8 | $ | 4.6 | ||||||||||||||
Local media | 7.2 | 0.7 | 7.2 | |||||||||||||||||
Unallocated Corporate | 0.6 | 0.4 | 0.6 | |||||||||||||||||
$ | 12.4 | $ | 9.9 | $ | 12.4 | |||||||||||||||
Employee Terminations | Employee Terminations | Other Exit Costs | Total | ||||||||||||||
Six months ended December 31, | 2019 | 2018 | 2018 | 2018 | |||||||||||||
(In millions) | |||||||||||||||||
Balance at beginning of period | $ | 43.7 | $ | 101.3 | $ | 6.3 | $ | 107.6 | |||||||||
Accruals | 13.7 | 33.8 | 17.7 | 51.5 | |||||||||||||
Cash payments | (36.0 | ) | (51.3 | ) | (11.0 | ) | (62.3 | ) | |||||||||
Reversal of excess accrual | — | (4.1 | ) | (1.5 | ) | (5.6 | ) | ||||||||||
Balance at end of period | $ | 21.4 | $ | 79.7 | $ | 11.5 | $ | 91.2 |
Three months ended September 30, | 2020 | 2019 | |||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | 10.7 | $ | 43.7 | |||||||||||||||||||||||||
Accruals | 12.4 | 9.9 | |||||||||||||||||||||||||||
Cash payments | (4.1) | (19.3) | |||||||||||||||||||||||||||
Reversal of excess accrual | (1.9) | 0 | |||||||||||||||||||||||||||
Balance at end of period | $ | 17.1 | $ | 34.3 |
December 31, 2019 | June 30, 2019 | |||||||||||||||||
(In millions) | Principal Balance | Unamortized Discount and Debt Issuance Costs | Carrying Value | Principal Balance | Unamortized Discount and Debt Issuance Costs | Carrying Value | ||||||||||||
Variable-rate credit facility | ||||||||||||||||||
Senior credit facility term loan, due 1/31/2025 | $ | 1,062.5 | $ | (14.4 | ) | $ | 1,048.1 | $ | 1,062.5 | $ | (15.6 | ) | $ | 1,046.9 | ||||
Revolving credit facility of $350 million, due 1/31/2023 | 55.0 | — | 55.0 | 35.0 | — | 35.0 | ||||||||||||
Senior Unsecured Notes | ||||||||||||||||||
6.875% senior notes, due 2/1/2026 | 1,272.9 | (20.1 | ) | 1,252.8 | 1,272.9 | (21.5 | ) | 1,251.4 | ||||||||||
Total long-term debt | $ | 2,390.4 | $ | (34.5 | ) | $ | 2,355.9 | $ | 2,370.4 | $ | (37.1 | ) | $ | 2,333.3 |
September 30, 2020 | June 30, 2020 | |||||||||||||||||||||||||
(In millions) | Principal Balance | Unamortized Discount and Debt Issuance Costs | Carrying Value | Principal Balance | Unamortized Discount and Debt Issuance Costs | Carrying Value | ||||||||||||||||||||
Variable-rate credit facility | ||||||||||||||||||||||||||
Senior credit facility term loan, due January 31, 2025 | $ | 1,062.5 | $ | (12.4) | $ | 1,050.1 | $ | 1,062.5 | $ | (13.1) | $ | 1,049.4 | ||||||||||||||
Senior credit facility incremental term loan, due January 31, 2025 | 409.0 | (21.6) | 387.4 | 410.0 | (22.7) | 387.3 | ||||||||||||||||||||
Revolving credit facility of $350 million, due January 31, 2023 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Senior Unsecured Notes | ||||||||||||||||||||||||||
6.875% senior notes, due February 1, 2026 | 1,272.9 | (18.0) | 1,254.9 | 1,272.9 | (18.7) | 1,254.2 | ||||||||||||||||||||
Senior Secured Notes | ||||||||||||||||||||||||||
6.500% senior notes, due July 1, 2025 | 300.0 | (4.8) | 295.2 | 300.0 | (5.0) | 295.0 | ||||||||||||||||||||
Total long-term debt | 3,044.4 | (56.8) | 2,987.6 | 3,045.4 | (59.5) | 2,985.9 | ||||||||||||||||||||
Current portion of long-term debt | (4.1) | 0 | (4.1) | (4.1) | 0 | (4.1) | ||||||||||||||||||||
Long-term debt | $ | 3,040.3 | $ | (56.8) | $ | 2,983.5 | $ | 3,041.3 | $ | (59.5) | $ | 2,981.8 | ||||||||||||||
• | Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities; | ||||||||||||
• | Level 2 | Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and | ||||||||||||
• | Level 3 | Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which result in the use of management estimates. |
December 31, 2019 | June 30, 2019 | |||||||||||||||
(In millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Broadcast rights payable | $ | 22.4 | $ | 21.1 | $ | 15.0 | $ | 13.6 | ||||||||
Total long-term debt | 2,355.9 | 2,457.0 | 2,333.3 | 2,452.9 |
September 30, 2020 | June 30, 2020 | |||||||||||||||||||||||||
(In millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||||
Broadcast rights payable | $ | 19.9 | $ | 18.8 | $ | 12.7 | $ | 11.7 | ||||||||||||||||||
Total long-term debt | 2,987.6 | 2,794.7 | 2,985.9 | 2,753.6 |
(In millions) | December 31, 2019 | June 30, 2019 | ||||||
Accrued expenses and other liabilities | ||||||||
Deferred compensation plans | $ | 3.8 | $ | 4.7 | ||||
Other noncurrent liabilities | ||||||||
Contingent consideration | 5.2 | 0.8 | ||||||
Deferred compensation plans | 16.2 | 16.2 |
September 30, 2020 | ||||||||||||||||||||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Recurring fair value measurements | ||||||||||||||||||||||||||||||||
Cash and cash equivalents - cash equivalents | $ | 102.9 | $ | 102.9 | $ | 0 | $ | 0 | ||||||||||||||||||||||||
Accrued expenses | ||||||||||||||||||||||||||||||||
Contingent consideration | $ | 2.2 | $ | 0 | $ | 0 | $ | 2.2 | ||||||||||||||||||||||||
Deferred compensation plans | 2.4 | 0 | 2.4 | 0 | ||||||||||||||||||||||||||||
Other noncurrent liabilities | ||||||||||||||||||||||||||||||||
Contingent consideration | 2.7 | 0 | 0 | 2.7 | ||||||||||||||||||||||||||||
Deferred compensation plans | 14.0 | 0 | 14.0 | 0 | ||||||||||||||||||||||||||||
Total recurring liability fair value measurements | $ | 21.3 | $ | 0 | $ | 16.4 | $ | 4.9 | ||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | Total Losses | |||||||||||||||||||||||||||
Recurring fair value measurements | ||||||||||||||||||||||||||||||||
Cash and cash equivalents - cash equivalents | $ | 115.2 | $ | 115.2 | $ | 0 | $ | 0 | ||||||||||||||||||||||||
Accrued expenses | ||||||||||||||||||||||||||||||||
Contingent consideration | $ | 1.3 | $ | 0 | $ | 0 | $ | 1.3 | ||||||||||||||||||||||||
Deferred compensation plans | 3.4 | 0 | 3.4 | 0 | ||||||||||||||||||||||||||||
Other noncurrent liabilities | ||||||||||||||||||||||||||||||||
Contingent consideration | 3.6 | 0 | 0 | 3.6 | ||||||||||||||||||||||||||||
Deferred compensation plans | 13.5 | 0 | 13.5 | 0 | ||||||||||||||||||||||||||||
Total recurring liability fair value measurements | $ | 21.8 | $ | 0 | $ | 16.9 | $ | 4.9 | ||||||||||||||||||||||||
Nonrecurring fair value measurements | ||||||||||||||||||||||||||||||||
Intangible assets, net 1 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (5.2) | ||||||||||||||||||||||
1 | Represents the fair value of a national media trademark fully impaired at September 30, 2019. The impairment charge was recorded in the impairment of long-lived assets line on the Condensed Consolidated Statements of Earnings. For further discussion, refer to Note 4. | |||||||||||||||||||||||||||||||
Six months ended December 31, | 2019 | 2018 | ||||||
(In millions) | ||||||||
Contingent consideration | ||||||||
Balance at beginning of period | $ | 0.8 | $ | 25.4 | ||||
Additions due to acquisitions | 4.1 | — | ||||||
Payments | — | (19.3 | ) | |||||
Fair value adjustment of contingent consideration | 0.3 | (0.1 | ) | |||||
Balance at end of period | $ | 5.2 | $ | 6.0 | ||||
Trademark 1 | ||||||||
Balance at beginning of period | $ | 5.2 | $ | — | ||||
Impairment | (5.2 | ) | — | |||||
Balance at end of period | $ | — | $ | — | ||||
1 | Represents the fair value of a national media trademark fully impaired at September 30, 2019. For further details, refer to Note 6. |
Three months ended December 31, 2019 | National Media | Local Media | Intersegment Elimination | Total | ||||||||
(In millions) | ||||||||||||
Advertising related | ||||||||||||
$ | 149.4 | $ | — | $ | — | $ | 149.4 | |||||
Non-political spot | — | 89.5 | — | 89.5 | ||||||||
Political spot | — | 4.4 | — | 4.4 | ||||||||
Digital | 132.2 | 4.9 | — | 137.1 | ||||||||
Third party sales | 20.4 | 27.2 | (0.7 | ) | 46.9 | |||||||
Total advertising related | 302.0 | 126.0 | (0.7 | ) | 427.3 | |||||||
Consumer related | ||||||||||||
Subscription | 159.8 | — | — | 159.8 | ||||||||
Retransmission | — | 85.1 | — | 85.1 | ||||||||
Newsstand | 37.7 | — | — | 37.7 | ||||||||
Affinity marketing | 20.0 | — | — | 20.0 | ||||||||
Licensing | 24.4 | — | — | 24.4 | ||||||||
Digital and other consumer driven | 21.9 | — | — | 21.9 | ||||||||
Total consumer related | 263.8 | 85.1 | — | 348.9 | ||||||||
Other | ||||||||||||
Projects based | 15.1 | — | — | 15.1 | ||||||||
Other | 16.3 | 2.9 | — | 19.2 | ||||||||
Total other | 31.4 | 2.9 | — | 34.3 | ||||||||
Total revenues | $ | 597.2 | $ | 214.0 | $ | (0.7 | ) | $ | 810.5 |
Three Months Ended December 31, 2018 | National Media | Local Media | Intersegment Elimination | Total | ||||||||
(In millions) | ||||||||||||
Advertising related | ||||||||||||
$ | 167.4 | $ | — | $ | — | $ | 167.4 | |||||
Non-political spot | — | 87.6 | — | 87.6 | ||||||||
Political spot | — | 65.8 | — | 65.8 | ||||||||
Digital | 122.9 | 4.0 | — | 126.9 | ||||||||
Third party sales | 16.1 | 28.7 | (0.2 | ) | 44.6 | |||||||
Total advertising related | 306.4 | 186.1 | (0.2 | ) | 492.3 | |||||||
Consumer related | ||||||||||||
Subscription | 192.0 | — | — | 192.0 | ||||||||
Retransmission | — | 74.1 | — | 74.1 | ||||||||
Newsstand | 43.5 | — | — | 43.5 | ||||||||
Affinity marketing | 18.3 | — | — | 18.3 | ||||||||
Licensing | 23.7 | — | — | 23.7 | ||||||||
Digital and other consumer driven | 16.6 | — | — | 16.6 | ||||||||
Total consumer related | 294.1 | 74.1 | — | 368.2 | ||||||||
Other | ||||||||||||
Projects based | 13.5 | — | — | 13.5 | ||||||||
Other | 2.2 | 2.2 | — | 4.4 | ||||||||
Total other | 15.7 | 2.2 | — | 17.9 | ||||||||
Total revenues | $ | 616.2 | $ | 262.4 | $ | (0.2 | ) | $ | 878.4 |
Six months ended December 31, 2019 | National Media | Local Media | Intersegment Elimination | Total | ||||||||
(In millions) | ||||||||||||
Advertising related | ||||||||||||
$ | 309.8 | $ | — | $ | — | $ | 309.8 | |||||
Non-political spot | — | 166.3 | — | 166.3 | ||||||||
Political spot | — | 7.0 | — | 7.0 | ||||||||
Digital | 223.8 | 9.1 | — | 232.9 | ||||||||
Third party sales | 39.4 | 52.7 | (1.2 | ) | 90.9 | |||||||
Total advertising related | 573.0 | 235.1 | (1.2 | ) | 806.9 | |||||||
Consumer related | ||||||||||||
Subscription | 310.3 | — | — | 310.3 | ||||||||
Retransmission | — | 164.7 | — | 164.7 | ||||||||
Newsstand | 80.3 | — | — | 80.3 | ||||||||
Affinity marketing | 33.9 | — | — | 33.9 | ||||||||
Licensing | 44.4 | — | — | 44.4 | ||||||||
Digital and other consumer driven | 38.4 | — | — | 38.4 | ||||||||
Total consumer related | 507.3 | 164.7 | — | 672.0 | ||||||||
Other | ||||||||||||
Projects based | 29.5 | — | — | 29.5 | ||||||||
Other | 20.3 | 7.0 | — | 27.3 | ||||||||
Total other | 49.8 | 7.0 | — | 56.8 | ||||||||
Total revenues | $ | 1,130.1 | $ | 406.8 | $ | (1.2 | ) | $ | 1,535.7 |
Three months ended September 30, 2020 | National Media | Local Media | Intersegment Elimination | Total | |||||||||||||
(In millions) | |||||||||||||||||
Advertising related | |||||||||||||||||
$ | 108.5 | $ | 0 | $ | 0 | $ | 108.5 | ||||||||||
Non-political spot | 0 | 56.8 | 0 | 56.8 | |||||||||||||
Political spot | 0 | 51.7 | 0 | 51.7 | |||||||||||||
Digital | 105.1 | 4.3 | 0 | 109.4 | |||||||||||||
Third party sales | 14.0 | 18.3 | (0.2) | 32.1 | |||||||||||||
Total advertising related | 227.6 | 131.1 | (0.2) | 358.5 | |||||||||||||
Consumer related | |||||||||||||||||
Subscription | 133.4 | 0 | 0 | 133.4 | |||||||||||||
Retransmission | 0 | 91.4 | 0 | 91.4 | |||||||||||||
Newsstand | 35.1 | 0 | 0 | 35.1 | |||||||||||||
Affinity marketing | 14.4 | 0 | 0 | 14.4 | |||||||||||||
Licensing | 24.1 | 0 | 0 | 24.1 | |||||||||||||
Digital and other consumer driven | 20.1 | 0.2 | 0 | 20.3 | |||||||||||||
Total consumer related | 227.1 | 91.6 | 0 | 318.7 | |||||||||||||
Other | |||||||||||||||||
Projects based | 9.9 | 0 | 0 | 9.9 | |||||||||||||
Other | 3.1 | 3.3 | 0 | 6.4 | |||||||||||||
Total other | 13.0 | 3.3 | 0 | 16.3 | |||||||||||||
Total revenues | $ | 467.7 | $ | 226.0 | $ | (0.2) | $ | 693.5 |
Six Months Ended December 31, 2018 | National Media | Local Media | Intersegment Elimination | Total | ||||||||
(In millions) | ||||||||||||
Advertising related | ||||||||||||
$ | 352.6 | $ | — | $ | — | $ | 352.6 | |||||
Non-political spot | — | 162.5 | — | 162.5 | ||||||||
Political spot | — | 101.9 | — | 101.9 | ||||||||
Digital | 207.8 | 7.9 | — | 215.7 | ||||||||
Third party sales | 33.2 | 52.7 | (0.8 | ) | 85.1 | |||||||
Total advertising related | 593.6 | 325.0 | (0.8 | ) | 917.8 | |||||||
Consumer related | ||||||||||||
Subscription | 352.7 | — | — | 352.7 | ||||||||
Retransmission | — | 147.4 | — | 147.4 | ||||||||
Newsstand | 82.6 | — | — | 82.6 | ||||||||
Affinity marketing | 37.2 | — | — | 37.2 | ||||||||
Licensing | 48.5 | — | — | 48.5 | ||||||||
Digital and other consumer driven | 27.6 | — | — | 27.6 | ||||||||
Total consumer related | 548.6 | 147.4 | — | 696.0 | ||||||||
Other | ||||||||||||
Projects based | 22.9 | — | — | 22.9 | ||||||||
Other | 11.7 | 4.4 | — | 16.1 | ||||||||
Total other | 34.6 | 4.4 | — | 39.0 | ||||||||
Total revenues | $ | 1,176.8 | $ | 476.8 | $ | (0.8 | ) | $ | 1,652.8 |
Three Months Ended September 30, 2019 | National Media | Local Media | Intersegment Elimination | Total | |||||||||||||
(In millions) | |||||||||||||||||
Advertising related | |||||||||||||||||
$ | 160.4 | $ | 0 | $ | 0 | $ | 160.4 | ||||||||||
Non-political spot | 0 | 76.8 | 0 | 76.8 | |||||||||||||
Political spot | 0 | 2.6 | 0 | 2.6 | |||||||||||||
Digital | 91.6 | 4.2 | 0 | 95.8 | |||||||||||||
Third party sales | 19.0 | 25.5 | (0.5) | 44.0 | |||||||||||||
Total advertising related | 271.0 | 109.1 | (0.5) | 379.6 | |||||||||||||
Consumer related | |||||||||||||||||
Subscription | 150.5 | 0 | 0 | 150.5 | |||||||||||||
Retransmission | 0 | 79.6 | 0 | 79.6 | |||||||||||||
Newsstand | 42.6 | 0 | 0 | 42.6 | |||||||||||||
Affinity marketing | 13.9 | 0 | 0 | 13.9 | |||||||||||||
Licensing | 20.0 | 0 | 0 | 20.0 | |||||||||||||
Digital and other consumer driven | 16.5 | 0 | 0 | 16.5 | |||||||||||||
Total consumer related | 243.5 | 79.6 | 0 | 323.1 | |||||||||||||
Other | |||||||||||||||||
Projects based | 14.4 | 0 | 0 | 14.4 | |||||||||||||
Other | 4.0 | 4.1 | 0 | 8.1 | |||||||||||||
Total other | 18.4 | 4.1 | 0 | 22.5 | |||||||||||||
Total revenues | $ | 532.9 | $ | 192.8 | $ | (0.5) | $ | 725.2 |
Three Months | Six Months | |||||||||||||||
Periods ended December 31, | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(In millions) | ||||||||||||||||
Domestic Pension Benefits | ||||||||||||||||
Service cost | $ | 2.5 | $ | 2.9 | $ | 5.0 | $ | 5.8 | ||||||||
Interest cost | 1.3 | 1.7 | 2.7 | 3.3 | ||||||||||||
Expected return on plan assets | (2.4 | ) | (2.5 | ) | (4.8 | ) | (4.9 | ) | ||||||||
Prior service cost amortization | 0.2 | 0.2 | 0.3 | 0.3 | ||||||||||||
Actuarial loss amortization | 0.6 | 0.5 | 1.2 | 1.0 | ||||||||||||
Settlement charge | 8.8 | — | 8.8 | — | ||||||||||||
Net periodic benefit costs | $ | 11.0 | $ | 2.8 | $ | 13.2 | $ | 5.5 | ||||||||
International Pension Benefits | ||||||||||||||||
Service cost | $ | — | $ | 0.1 | $ | — | $ | 0.1 | ||||||||
Interest cost | 3.7 | 4.3 | 7.3 | 8.6 | ||||||||||||
Expected return on plan assets | (4.7 | ) | (8.0 | ) | (9.3 | ) | (16.0 | ) | ||||||||
Prior service credit amortization | 0.1 | — | 0.1 | — | ||||||||||||
Net periodic benefit credit | $ | (0.9 | ) | $ | (3.6 | ) | $ | (1.9 | ) | $ | (7.3 | ) | ||||
Postretirement Benefits | ||||||||||||||||
Interest cost | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.2 | ||||||||
Actuarial gain amortization | (0.2 | ) | (0.2 | ) | (0.3 | ) | (0.3 | ) | ||||||||
Net periodic benefit credit | $ | (0.1 | ) | $ | (0.1 | ) | $ | (0.2 | ) | $ | (0.1 | ) |
Three months ended September 30, | 2020 | 2019 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Domestic Pension Benefits | ||||||||||||||||||||||||||
Service cost | $ | 2.3 | $ | 2.5 | ||||||||||||||||||||||
Interest cost | 0.8 | 1.4 | ||||||||||||||||||||||||
Expected return on plan assets | (2.0) | (2.4) | ||||||||||||||||||||||||
Prior service cost amortization | 0.1 | 0.1 | ||||||||||||||||||||||||
Actuarial loss amortization | 0.7 | 0.6 | ||||||||||||||||||||||||
Net periodic benefit costs | $ | 1.9 | $ | 2.2 | ||||||||||||||||||||||
International Pension Benefits | ||||||||||||||||||||||||||
Interest cost | $ | 2.3 | $ | 3.6 | ||||||||||||||||||||||
Expected return on plan assets | (3.8) | (4.6) | ||||||||||||||||||||||||
Net periodic benefit credit | $ | (1.5) | $ | (1.0) | ||||||||||||||||||||||
Postretirement Benefits | ||||||||||||||||||||||||||
Interest cost | $ | 0.1 | $ | 0 | ||||||||||||||||||||||
Actuarial gain amortization | (0.1) | (0.1) | ||||||||||||||||||||||||
Net periodic benefit credit | $ | 0 | $ | (0.1) |
Three Months | Six Months | |||||||||||||||
Periods ended December 31, | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(In millions except per share data) | ||||||||||||||||
Net earnings | $ | 37.8 | $ | 18.6 | $ | 43.9 | $ | 35.6 | ||||||||
Participating warrants dividend | (0.9 | ) | (0.9 | ) | (1.9 | ) | (1.8 | ) | ||||||||
Preferred stock dividend | (14.1 | ) | (14.4 | ) | (28.5 | ) | (28.4 | ) | ||||||||
Accretion of redeemable, convertible Series A preferred stock | (4.5 | ) | (4.3 | ) | (9.0 | ) | (8.6 | ) | ||||||||
Other securities dividends | (0.3 | ) | (0.6 | ) | (0.3 | ) | (1.0 | ) | ||||||||
Earnings (loss) attributable to common shareholders | $ | 18.0 | $ | (1.6 | ) | $ | 4.2 | $ | (4.2 | ) | ||||||
Basic weighted average common shares outstanding | 45.7 | 45.3 | 45.7 | 45.2 | ||||||||||||
Basic earnings (loss) per common share | $ | 0.39 | $ | (0.03 | ) | $ | 0.09 | $ | (0.09 | ) |
Three months ended September 30, | 2020 | 2019 | ||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||
Net earnings | $ | 42.3 | $ | 6.1 | ||||||||||||||||||||||
Participating warrants dividend | 0 | (0.9) | ||||||||||||||||||||||||
Series A preferred stock dividend | 0 | (14.4) | ||||||||||||||||||||||||
Accretion of Series A preferred stock | 0 | (4.5) | ||||||||||||||||||||||||
Other securities dividends | 0 | (0.2) | ||||||||||||||||||||||||
Earnings attributable to other participating securities | (2.0) | 0 | ||||||||||||||||||||||||
Earnings (loss) attributable to common shareholders | $ | 40.3 | $ | (13.9) | ||||||||||||||||||||||
Basic weighted average common shares outstanding | 46.0 | 45.6 | ||||||||||||||||||||||||
Basic earnings (loss) per common share | $ | 0.88 | $ | (0.30) |
Three Months | Six Months | |||||||||||||||
Periods ended December 31, | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(In millions except per share data) | ||||||||||||||||
Basic weighted-average common shares outstanding | 45.7 | 45.3 | 45.7 | 45.2 | ||||||||||||
Dilutive effect of stock options and equivalents | — | 0.4 | — | 0.5 | ||||||||||||
Dilutive effect of participating warrants | 1.6 | 1.6 | — | 1.6 | ||||||||||||
Diluted weighted-average shares outstanding | 47.3 | 47.3 | 45.7 | 47.3 | ||||||||||||
Diluted earnings (loss) attributable to common shareholders | $ | 19.0 | $ | (0.5 | ) | $ | 4.2 | $ | (2.1 | ) | ||||||
Diluted earnings (loss) per common share | 0.40 | (0.01 | ) | 0.09 | (0.05 | ) |
Three months ended September 30, | 2020 | 2019 | ||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||
Basic weighted-average common shares outstanding | 46.0 | 45.6 | ||||||||||||||||||||||||
Dilutive effect of stock options and equivalents | 0 | 0 | ||||||||||||||||||||||||
Diluted weighted-average shares outstanding | 46.0 | 45.6 | ||||||||||||||||||||||||
Diluted earnings (loss) attributable to common shareholders | $ | 40.3 | $ | (13.9) | ||||||||||||||||||||||
Diluted earnings (loss) per common share | 0.88 | (0.30) |
Three Months | Six Months | |||||||||||||||
Periods ended December 31, | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(In millions) | ||||||||||||||||
Revenues | ||||||||||||||||
National media | $ | 597.2 | $ | 616.2 | $ | 1,130.1 | $ | 1,176.8 | ||||||||
Local media | 214.0 | 262.4 | 406.8 | 476.8 | ||||||||||||
Total revenues, gross | 811.2 | 878.6 | 1,536.9 | 1,653.6 | ||||||||||||
Intersegment revenue elimination | (0.7 | ) | (0.2 | ) | (1.2 | ) | (0.8 | ) | ||||||||
Total revenues | $ | 810.5 | $ | 878.4 | $ | 1,535.7 | $ | 1,652.8 | ||||||||
Segment profit | ||||||||||||||||
National media | $ | 100.5 | $ | 47.0 | $ | 128.6 | $ | 65.1 | ||||||||
Local media | 54.8 | 106.6 | 93.2 | 174.1 | ||||||||||||
Unallocated corporate | (21.4 | ) | (19.9 | ) | (45.0 | ) | (51.3 | ) | ||||||||
Income from operations | 133.9 | 133.7 | 176.8 | 187.9 | ||||||||||||
Non-operating income (expense), net | (7.2 | ) | 5.9 | 1.4 | 13.2 | |||||||||||
Interest expense, net | (36.9 | ) | (50.9 | ) | (75.8 | ) | (92.5 | ) | ||||||||
Earnings from continuing operations before income taxes | $ | 89.8 | $ | 88.7 | $ | 102.4 | $ | 108.6 | ||||||||
Depreciation and amortization | ||||||||||||||||
National media | $ | 47.8 | $ | 55.1 | $ | 95.2 | $ | 107.4 | ||||||||
Local media | 9.9 | 9.2 | 19.5 | 18.3 | ||||||||||||
Unallocated corporate | 0.9 | 0.8 | 2.4 | 3.1 | ||||||||||||
Total depreciation and amortization | $ | 58.6 | $ | 65.1 | $ | 117.1 | $ | 128.8 |
Three months ended September 30, | 2020 | 2019 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||
National media | $ | 467.7 | $ | 532.9 | ||||||||||||||||||||||
Local media | 226.0 | 192.8 | ||||||||||||||||||||||||
Total revenues, gross | 693.7 | 725.7 | ||||||||||||||||||||||||
Intersegment revenue elimination | (0.2) | (0.5) | ||||||||||||||||||||||||
Total revenues | $ | 693.5 | $ | 725.2 | ||||||||||||||||||||||
Segment profit | ||||||||||||||||||||||||||
National media | $ | 31.5 | $ | 28.1 | ||||||||||||||||||||||
Local media | 63.8 | 38.4 | ||||||||||||||||||||||||
Unallocated corporate | (17.2) | (23.6) | ||||||||||||||||||||||||
Income from operations | 78.1 | 42.9 | ||||||||||||||||||||||||
Non-operating income, net | 5.6 | 8.6 | ||||||||||||||||||||||||
Interest expense, net | (43.5) | (38.9) | ||||||||||||||||||||||||
Earnings from continuing operations before income taxes | $ | 40.2 | $ | 12.6 | ||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||
National media | $ | 40.0 | $ | 47.4 | ||||||||||||||||||||||
Local media | 8.6 | 9.6 | ||||||||||||||||||||||||
Unallocated corporate | 0.4 | 1.5 | ||||||||||||||||||||||||
Total depreciation and amortization | $ | 49.0 | $ | 58.5 |
Assets | Meredith Corporation (Parent Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||
(In millions) | |||||||||||||||
Current assets | |||||||||||||||
Cash and cash equivalents | $ | 10.7 | $ | — | $ | 10.5 | $ | — | $ | 21.2 | |||||
Accounts receivable, net | 325.2 | 276.4 | 15.0 | — | 616.6 | ||||||||||
Inventories | 41.0 | 8.5 | — | — | 49.5 | ||||||||||
Current portion of subscription acquisition costs | 85.8 | 176.7 | — | (7.0 | ) | 255.5 | |||||||||
Assets held-for-sale | — | 51.8 | — | — | 51.8 | ||||||||||
Other current assets | 53.6 | 11.2 | 3.0 | — | 67.8 | ||||||||||
Total current assets | 516.3 | 524.6 | 28.5 | (7.0 | ) | 1,062.4 | |||||||||
Net property, plant, and equipment | 341.1 | 99.3 | 1.7 | — | 442.1 | ||||||||||
Operating lease assets | 65.2 | 418.7 | 3.8 | — | 487.7 | ||||||||||
Subscription acquisition costs | 151.2 | 91.2 | — | — | 242.4 | ||||||||||
Other assets | 56.4 | 6.0 | 212.3 | — | 274.7 | ||||||||||
Intangible assets, net | 634.1 | 1,108.6 | 11.4 | — | 1,754.1 | ||||||||||
Goodwill | 614.8 | 1,077.6 | 277.4 | — | 1,969.8 | ||||||||||
Intercompany receivable | 875.8 | 10,626.0 | 8,173.5 | (19,675.3 | ) | — | |||||||||
Intercompany notes receivable | — | 72.6 | — | (72.6 | ) | — | |||||||||
Investment in subsidiaries | 3,705.3 | 987.7 | — | (4,693.0 | ) | — | |||||||||
Total assets | $ | 6,960.2 | $ | 15,012.3 | $ | 8,708.6 | $ | (24,447.9 | ) | $ | 6,233.2 | ||||
Liabilities, Redeemable Convertible Preferred Stock, and Shareholders’ Equity | |||||||||||||||
Current liabilities | |||||||||||||||
Current portion of operating lease liabilities | $ | 8.2 | $ | 26.0 | $ | 0.7 | $ | — | $ | 34.9 | |||||
Accounts payable | 107.3 | 40.2 | 1.9 | — | 149.4 | ||||||||||
Accrued expenses and other liabilities | 167.4 | 104.2 | 2.9 | — | 274.5 | ||||||||||
Current portion of unearned revenues | 141.1 | 293.0 | 1.2 | (7.0 | ) | 428.3 | |||||||||
Liabilities associated with assets held-for-sale | — | 1.8 | — | — | 1.8 | ||||||||||
Total current liabilities | 424.0 | 465.2 | 6.7 | (7.0 | ) | 888.9 | |||||||||
Long-term debt | 2,355.9 | — | — | — | 2,355.9 | ||||||||||
Operating lease liabilities | 57.8 | 423.3 | 3.1 | — | 484.2 | ||||||||||
Unearned revenues | 168.1 | 131.0 | — | — | 299.1 | ||||||||||
Deferred income taxes | 229.5 | 264.6 | 26.0 | — | 520.1 | ||||||||||
Other noncurrent liabilities | 96.7 | 83.5 | 25.3 | — | 205.5 | ||||||||||
Investment in subsidiaries | — | — | 72.2 | (72.2 | ) | — | |||||||||
Intercompany payable | 2,141.8 | 9,374.6 | 8,149.9 | (19,666.3 | ) | — | |||||||||
Intercompany notes payable | 6.9 | — | 72.6 | (79.5 | ) | — | |||||||||
Total liabilities | 5,480.7 | 10,742.2 | 8,355.8 | (19,825.0 | ) | 4,753.7 | |||||||||
Redeemable, convertible Series A preferred stock | 549.2 | — | — | — | 549.2 | ||||||||||
Shareholders’ equity | 930.3 | 4,270.1 | 352.8 | (4,622.9 | ) | 930.3 | |||||||||
Total liabilities, redeemable convertible preferred stock, and shareholders’ equity | $ | 6,960.2 | $ | 15,012.3 | $ | 8,708.6 | $ | (24,447.9 | ) | $ | 6,233.2 |
Assets | Meredith Corporation (Parent Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||
(In millions) | |||||||||||||||
Current assets | |||||||||||||||
Cash and cash equivalents | $ | 30.3 | $ | 3.2 | $ | 11.5 | $ | — | $ | 45.0 | |||||
Accounts receivable, net | 327.5 | 267.4 | 14.2 | — | 609.1 | ||||||||||
Inventories | 53.7 | 8.9 | 0.1 | — | 62.7 | ||||||||||
Current portion of subscription acquisition costs | 91.5 | 156.8 | — | (6.3 | ) | 242.0 | |||||||||
Assets held-for-sale | — | 208.8 | 112.2 | — | 321.0 | ||||||||||
Other current assets | 51.4 | 16.3 | 2.6 | — | 70.3 | ||||||||||
Total current assets | 554.4 | 661.4 | 140.6 | (6.3 | ) | 1,350.1 | |||||||||
Net property, plant, and equipment | 340.8 | 107.8 | 1.7 | — | 450.3 | ||||||||||
Subscription acquisition costs | 152.3 | 121.6 | — | — | 273.9 | ||||||||||
Other assets | 60.6 | 30.0 | 179.0 | — | 269.6 | ||||||||||
Intangible assets, net | 627.7 | 1,181.0 | 4.9 | — | 1,813.6 | ||||||||||
Goodwill | 614.8 | 1,317.6 | 47.0 | — | 1,979.4 | ||||||||||
Intercompany receivable | 470.5 | 10,352.3 | 7,958.6 | (18,781.4 | ) | — | |||||||||
Intercompany notes receivable | — | 215.5 | 0.2 | (215.7 | ) | — | |||||||||
Investment in subsidiaries | 3,874.5 | 983.0 | — | (4,857.5 | ) | — | |||||||||
Total assets | $ | 6,695.6 | $ | 14,970.2 | $ | 8,332.0 | $ | (23,860.9 | ) | $ | 6,136.9 | ||||
Liabilities, Redeemable Convertible Preferred Stock, and Shareholders’ Equity | |||||||||||||||
Current liabilities | |||||||||||||||
Accounts payable | $ | 141.5 | $ | 90.4 | $ | 10.7 | $ | — | $ | 242.6 | |||||
Accrued expenses and other liabilities | 195.4 | 107.2 | 4.6 | — | 307.2 | ||||||||||
Current portion of unearned revenues | 183.2 | 277.7 | 3.8 | (5.8 | ) | 458.9 | |||||||||
Liabilities associated with assets held-for-sale | — | 190.8 | 61.3 | — | 252.1 | ||||||||||
Total current liabilities | 520.1 | 666.1 | 80.4 | (5.8 | ) | 1,260.8 | |||||||||
Long-term debt | 2,333.3 | — | — | — | 2,333.3 | ||||||||||
Unearned revenues | 155.7 | 162.9 | — | — | 318.6 | ||||||||||
Deferred income taxes | 221.8 | 266.2 | 18.2 | — | 506.2 | ||||||||||
Other noncurrent liabilities | 97.7 | 85.9 | 19.6 | — | 203.2 | ||||||||||
Investment in subsidiaries | — | — | 74.8 | (74.8 | ) | — | |||||||||
Intercompany payable | 1,852.2 | 9,105.0 | 7,824.2 | (18,781.4 | ) | — | |||||||||
Intercompany notes payable | — | 0.2 | 215.5 | (215.7 | ) | — | |||||||||
Total liabilities | 5,180.8 | 10,286.3 | 8,232.7 | (19,077.7 | ) | 4,622.1 | |||||||||
Redeemable, convertible Series A preferred stock | 540.2 | — | — | — | 540.2 | ||||||||||
Shareholders’ equity | 974.6 | 4,683.9 | 99.3 | (4,783.2 | ) | 974.6 | |||||||||
Total liabilities, redeemable convertible preferred stock, and shareholders’ equity | $ | 6,695.6 | $ | 14,970.2 | $ | 8,332.0 | $ | (23,860.9 | ) | $ | 6,136.9 |
Meredith Corporation (Parent Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||
(In millions) | |||||||||||||||
Revenues | |||||||||||||||
Advertising related | $ | 153.7 | $ | 271.5 | $ | 2.5 | $ | (0.4 | ) | $ | 427.3 | ||||
Consumer related | 128.0 | 205.7 | 17.3 | (2.1 | ) | 348.9 | |||||||||
Other | 14.6 | 20.7 | (1.0 | ) | — | 34.3 | |||||||||
Total revenues | 296.3 | 497.9 | 18.8 | (2.5 | ) | 810.5 | |||||||||
Operating expenses | |||||||||||||||
Production, distribution, and editorial | 122.1 | 156.3 | 2.0 | (0.3 | ) | 280.1 | |||||||||
Selling, general, and administrative | 155.3 | 167.6 | 17.3 | (1.8 | ) | 338.4 | |||||||||
Acquisition, disposition, and restructuring related activities | 7.9 | (8.4 | ) | — | — | (0.5 | ) | ||||||||
Depreciation and amortization | 14.4 | 43.1 | 1.1 | — | 58.6 | ||||||||||
Total operating expenses | 299.7 | 358.6 | 20.4 | (2.1 | ) | 676.6 | |||||||||
Income (loss) from operations | (3.4 | ) | 139.3 | (1.6 | ) | (0.4 | ) | 133.9 | |||||||
Non-operating income (expense), net | (8.4 | ) | 0.1 | 1.1 | — | (7.2 | ) | ||||||||
Interest income (expense), net | (37.1 | ) | 2.8 | (2.6 | ) | — | (36.9 | ) | |||||||
Earnings (loss) from continuing operations before income taxes | (48.9 | ) | 142.2 | (3.1 | ) | (0.4 | ) | 89.8 | |||||||
Income tax benefit (expense) | 14.5 | (43.9 | ) | 1.6 | 0.1 | (27.7 | ) | ||||||||
Earnings (loss) from continuing operations | (34.4 | ) | 98.3 | (1.5 | ) | (0.3 | ) | 62.1 | |||||||
Gain (loss) from discontinued operations, net of income taxes | — | (25.5 | ) | 1.2 | — | (24.3 | ) | ||||||||
Earnings (loss) before equity earnings | (34.4 | ) | 72.8 | (0.3 | ) | (0.3 | ) | 37.8 | |||||||
Earnings from equity in subsidiaries | 72.2 | (17.3 | ) | — | (54.9 | ) | — | ||||||||
Net earnings (loss) | $ | 37.8 | $ | 55.5 | $ | (0.3 | ) | $ | (55.2 | ) | $ | 37.8 | |||
Total comprehensive income | $ | 38.3 | $ | 55.5 | $ | 8.8 | $ | (55.2 | ) | $ | 47.4 |
Meredith Corporation (Parent Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||
(In millions) | |||||||||||||||
Revenues | |||||||||||||||
Advertising related | $ | 174.6 | $ | 316.2 | $ | 1.7 | $ | (0.2 | ) | $ | 492.3 | ||||
Consumer related | 128.6 | 230.2 | 12.1 | (2.7 | ) | 368.2 | |||||||||
Other | 12.6 | 43.8 | 4.4 | (42.9 | ) | 17.9 | |||||||||
Total revenues | 315.8 | 590.2 | 18.2 | (45.8 | ) | 878.4 | |||||||||
Operating expenses | |||||||||||||||
Production, distribution, and editorial | 125.0 | 211.3 | 12.7 | (43.1 | ) | 305.9 | |||||||||
Selling, general, and administrative | 128.8 | 218.8 | 0.7 | (2.3 | ) | 346.0 | |||||||||
Acquisition, disposition, and restructuring related activities | 5.1 | 16.6 | 6.0 | — | 27.7 | ||||||||||
Depreciation and amortization | 8.1 | 56.4 | 0.6 | — | 65.1 | ||||||||||
Total operating expenses | 267.0 | 503.1 | 20.0 | (45.4 | ) | 744.7 | |||||||||
Income (loss) from operations | 48.8 | 87.1 | (1.8 | ) | (0.4 | ) | 133.7 | ||||||||
Non-operating income, net | 0.2 | 1.9 | 3.8 | — | 5.9 | ||||||||||
Interest income (expense), net | (50.9 | ) | 3.3 | (3.3 | ) | — | (50.9 | ) | |||||||
Earnings (loss) from continuing operations before income taxes | (1.9 | ) | 92.3 | (1.3 | ) | (0.4 | ) | 88.7 | |||||||
Income tax benefit (expense) | 1.4 | (3.2 | ) | 0.4 | 0.8 | (0.6 | ) | ||||||||
Earnings (loss) from continuing operations | (0.5 | ) | 89.1 | (0.9 | ) | 0.4 | 88.1 | ||||||||
Loss from discontinued operations, net of income taxes | — | (65.4 | ) | (4.1 | ) | — | (69.5 | ) | |||||||
Earnings (loss) before equity earnings | (0.5 | ) | 23.7 | (5.0 | ) | 0.4 | 18.6 | ||||||||
Earnings from equity in subsidiaries | 19.1 | (2.1 | ) | (6.6 | ) | (10.4 | ) | — | |||||||
Net earnings (loss) | $ | 18.6 | $ | 21.6 | $ | (11.6 | ) | $ | (10.0 | ) | $ | 18.6 | |||
Total comprehensive income (loss) | $ | 16.0 | $ | 21.6 | $ | (14.6 | ) | $ | (7.0 | ) | $ | 16.0 |
Meredith Corporation (Parent Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||
(In millions) | |||||||||||||||
Revenues | |||||||||||||||
Advertising related | $ | 275.4 | $ | 527.7 | $ | 4.4 | $ | (0.6 | ) | $ | 806.9 | ||||
Consumer related | 249.9 | 397.4 | 28.8 | (4.1 | ) | 672.0 | |||||||||
Other | 31.1 | 23.7 | 2.0 | — | 56.8 | ||||||||||
Total revenues | 556.4 | 948.8 | 35.2 | (4.7 | ) | 1,535.7 | |||||||||
Operating expenses | |||||||||||||||
Production, distribution, and editorial | 246.5 | 303.9 | 4.0 | (0.6 | ) | 553.8 | |||||||||
Selling, general, and administrative | 305.8 | 404.9 | (37.4 | ) | (4.1 | ) | 669.2 | ||||||||
Acquisition, disposition, and restructuring related activities | 17.3 | (3.7 | ) | — | — | 13.6 | |||||||||
Depreciation and amortization | 28.8 | 86.8 | 1.5 | — | 117.1 | ||||||||||
Impairment of goodwill and other long-lived assets | 5.2 | — | — | — | 5.2 | ||||||||||
Total operating expenses | 603.6 | 791.9 | (31.9 | ) | (4.7 | ) | 1,358.9 | ||||||||
Income (loss) from operations | (47.2 | ) | 156.9 | 67.1 | — | 176.8 | |||||||||
Non-operating income (expense), net | (8.1 | ) | 11.0 | (1.5 | ) | — | 1.4 | ||||||||
Interest income (expense), net | (76.0 | ) | 6.1 | (5.9 | ) | — | (75.8 | ) | |||||||
Earnings (loss) from continuing operations before income taxes | (131.3 | ) | 174.0 | 59.7 | — | 102.4 | |||||||||
Income tax benefit (expense) | 39.0 | (50.4 | ) | (16.8 | ) | — | (28.2 | ) | |||||||
Earnings (loss) from continuing operations | (92.3 | ) | 123.6 | 42.9 | — | 74.2 | |||||||||
Gain (loss) from discontinued operations, net of income taxes | — | (30.6 | ) | 0.3 | — | (30.3 | ) | ||||||||
Earnings (loss) before equity earnings | (92.3 | ) | 93.0 | 43.2 | — | 43.9 | |||||||||
Earnings (loss) from equity in subsidiaries | 136.2 | (14.8 | ) | 0.1 | (121.5 | ) | — | ||||||||
Net earnings | $ | 43.9 | $ | 78.2 | $ | 43.3 | $ | (121.5 | ) | $ | 43.9 | ||||
Total comprehensive income | $ | 44.9 | $ | 78.2 | $ | 47.5 | $ | (121.5 | ) | $ | 49.1 |
Meredith Corporation (Parent Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||
(In millions) | |||||||||||||||
Revenues | |||||||||||||||
Advertising related | $ | 335.0 | $ | 580.1 | $ | 3.5 | $ | (0.8 | ) | $ | 917.8 | ||||
Consumer related | 254.1 | 431.1 | 21.4 | (10.6 | ) | 696.0 | |||||||||
Other | 20.7 | 96.4 | 10.7 | (88.8 | ) | 39.0 | |||||||||
Total revenues | 609.8 | 1,107.6 | 35.6 | (100.2 | ) | 1,652.8 | |||||||||
Operating expenses | |||||||||||||||
Production, distribution, and editorial | 246.3 | 420.6 | 17.7 | (89.6 | ) | 595.0 | |||||||||
Selling, general, and administrative | 265.5 | 429.9 | 8.5 | (7.6 | ) | 696.3 | |||||||||
Acquisition, disposition, and restructuring related activities | (0.7 | ) | 38.2 | 7.3 | — | 44.8 | |||||||||
Depreciation and amortization | 15.9 | 111.6 | 1.3 | — | 128.8 | ||||||||||
Total operating expenses | 527.0 | 1,000.3 | 34.8 | (97.2 | ) | 1,464.9 | |||||||||
Income from operations | 82.8 | 107.3 | 0.8 | (3.0 | ) | 187.9 | |||||||||
Non-operating income, net | 4.5 | 1.0 | 7.7 | — | 13.2 | ||||||||||
Interest income (expense), net | (93.3 | ) | 7.3 | (6.5 | ) | — | (92.5 | ) | |||||||
Earnings (loss) from continuing operations before income taxes | (6.0 | ) | 115.6 | 2.0 | (3.0 | ) | 108.6 | ||||||||
Income tax benefit (expense) | 3.6 | (9.3 | ) | 0.6 | 0.8 | (4.3 | ) | ||||||||
Earnings (loss) from continuing operations | (2.4 | ) | 106.3 | 2.6 | (2.2 | ) | 104.3 | ||||||||
Loss from discontinued operations, net of income taxes | — | (63.6 | ) | (5.1 | ) | — | (68.7 | ) | |||||||
Earnings (loss) before equity earnings | (2.4 | ) | 42.7 | (2.5 | ) | (2.2 | ) | 35.6 | |||||||
Earnings from equity in subsidiaries | 38.0 | (1.0 | ) | (13.4 | ) | (23.6 | ) | — | |||||||
Net earnings (loss) | $ | 35.6 | $ | 41.7 | $ | (15.9 | ) | $ | (25.8 | ) | $ | 35.6 | |||
Total comprehensive income (loss) | $ | 31.1 | $ | 41.7 | $ | (21.2 | ) | $ | (20.5 | ) | $ | 31.1 |
Meredith Corporation (Parent Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||
(In millions) | |||||||||||||||
Cash flows from operating activities | $ | 211.8 | $ | (173.6 | ) | $ | 36.0 | $ | (2.1 | ) | $ | 72.1 | |||
Cash flows from investing activities | |||||||||||||||
Acquisition of and investments in businesses, net of cash acquired | (23.0 | ) | — | — | — | (23.0 | ) | ||||||||
Proceeds from disposition of assets, net of cash sold | — | 33.2 | 0.6 | — | 33.8 | ||||||||||
Additions to property, plant, and equipment | (31.6 | ) | (2.4 | ) | (0.5 | ) | — | (34.5 | ) | ||||||
Net cash provided by (used in) investing activities | (54.6 | ) | 30.8 | 0.1 | — | (23.7 | ) | ||||||||
Cash flows from financing activities | |||||||||||||||
Proceeds from issuance of long-term debt | 280.0 | — | — | — | 280.0 | ||||||||||
Repayments of long-term debt | (260.0 | ) | — | — | — | (260.0 | ) | ||||||||
Dividends paid | (83.2 | ) | — | — | — | (83.2 | ) | ||||||||
Purchases of Company stock | (4.2 | ) | — | — | — | (4.2 | ) | ||||||||
Proceeds from common stock issued | 1.1 | — | — | — | 1.1 | ||||||||||
Financing lease payments | (0.7 | ) | — | — | — | (0.7 | ) | ||||||||
Net increase (decrease) in intercompany obligations | (109.8 | ) | 139.6 | (31.9 | ) | 2.1 | — | ||||||||
Net cash provided by (used in) financing activities | (176.8 | ) | 139.6 | (31.9 | ) | 2.1 | (67.0 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (0.1 | ) | — | (0.1 | ) | ||||||||
Change in cash in assets held-for-sale | — | — | (5.1 | ) | — | (5.1 | ) | ||||||||
Net decrease in cash and cash equivalents | (19.6 | ) | (3.2 | ) | (1.0 | ) | — | (23.8 | ) | ||||||
Cash and cash equivalents at beginning of period | 30.3 | 3.2 | 11.5 | — | 45.0 | ||||||||||
Cash and cash equivalents at end of period | $ | 10.7 | $ | — | $ | 10.5 | $ | — | $ | 21.2 |
Meredith Corporation (Parent Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||
(In millions) | |||||||||||||||
Cash flows from operating activities | $ | 94.0 | $ | 103.8 | $ | (138.4 | ) | $ | — | $ | 59.4 | ||||
Cash flows from investing activities | |||||||||||||||
Acquisition of and investments in businesses, net of cash acquired | (1.7 | ) | — | — | — | (1.7 | ) | ||||||||
Proceeds from disposition of assets, net of cash sold | 13.3 | 333.9 | 0.6 | — | 347.8 | ||||||||||
Additions to property, plant, and equipment | (13.4 | ) | (3.5 | ) | (0.1 | ) | — | (17.0 | ) | ||||||
Net cash provided by (used in) investing activities | (1.8 | ) | 330.4 | 0.5 | — | 329.1 | |||||||||
Cash flows from financing activities | |||||||||||||||
Repayments of long-term debt | (646.9 | ) | — | — | — | (646.9 | ) | ||||||||
Dividends paid | (80.1 | ) | — | — | — | (80.1 | ) | ||||||||
Purchases of Company stock | (5.0 | ) | — | — | — | (5.0 | ) | ||||||||
Proceeds from common stock issued | 2.5 | — | — | — | 2.5 | ||||||||||
Payment of acquisition related contingent consideration | (19.3 | ) | — | — | — | (19.3 | ) | ||||||||
Net increase (decrease) in intercompany obligations | 491.0 | (610.4 | ) | 119.4 | — | — | |||||||||
Net cash provided by (used in) financing activities | (257.8 | ) | (610.4 | ) | 119.4 | — | (748.8 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | — | (0.6 | ) | — | — | (0.6 | ) | ||||||||
Change in cash in assets held for sale | — | 0.4 | — | — | 0.4 | ||||||||||
Net decrease in cash and cash equivalents | (165.6 | ) | (176.4 | ) | (18.5 | ) | — | (360.5 | ) | ||||||
Cash and cash equivalents at beginning of period | 195.0 | 202.8 | 39.8 | — | 437.6 | ||||||||||
Cash and cash equivalents at end of period | $ | 29.4 | $ | 26.4 | $ | 21.3 | $ | — | $ | 77.1 |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
Three months ended September 30, | 2020 | 2019 | Change | ||||||||||||||
(In millions except per share data) | |||||||||||||||||
Total revenues | $ | 693.5 | $ | 725.2 | (4) | % | |||||||||||
Operating expenses | |||||||||||||||||
Cost and expenses | 615.4 | 677.1 | (9) | % | |||||||||||||
Impairment of long-lived assets | — | 5.2 | (100) | % | |||||||||||||
Total operating expenses | 615.4 | 682.3 | (10) | % | |||||||||||||
Income from operations | $ | 78.1 | $ | 42.9 | 82 | % | |||||||||||
Earnings from continuing operations | $ | 42.3 | $ | 12.1 | n/m | ||||||||||||
Net earnings | 42.3 | 6.1 | n/m | ||||||||||||||
Diluted earnings (loss) per common share from continuing operations | 0.88 | (0.17) | n/m | ||||||||||||||
Diluted earnings (loss) per common share | 0.88 | (0.30) | n/m | ||||||||||||||
n/m - Not meaningful |
Three months ended December 31, | 2019 | 2018 | Change | |||||||
(In millions except per share data) | ||||||||||
Total revenues | $ | 810.5 | $ | 878.4 | (8 | )% | ||||
Operating expenses | (676.6 | ) | (744.7 | ) | (9 | )% | ||||
Income from operations | $ | 133.9 | $ | 133.7 | 0 | % | ||||
Net earnings from continuing operations | $ | 62.1 | $ | 88.1 | (30 | )% | ||||
Net earnings | 37.8 | 18.6 | n/m | |||||||
Diluted earnings per common share from continuing operations | 0.91 | 1.46 | (38 | )% | ||||||
Diluted earnings (loss) per common share | 0.40 | (0.01 | ) | n/m | ||||||
Six months ended December 31, | 2019 | 2018 | Change | |||||||
(In millions except per share data) | ||||||||||
Total revenues | $ | 1,535.7 | $ | 1,652.8 | (7 | )% | ||||
Operating expenses | (1,358.9 | ) | (1,464.9 | ) | (7 | )% | ||||
Income from operations | $ | 176.8 | $ | 187.9 | (6 | )% | ||||
Net earnings from continuing operations | $ | 74.2 | $ | 104.3 | (29 | )% | ||||
Net earnings | 43.9 | 35.6 | 23 | % | ||||||
Diluted earnings per common share from continuing operations | 0.75 | 1.41 | (47 | )% | ||||||
Diluted earnings (loss) per common share | 0.09 | (0.05 | ) | n/m | ||||||
n/m - Not meaningful |
Three months ended September 30, | 2020 | 2019 | Change | ||||||||||||||
(In millions) | |||||||||||||||||
Advertising related | |||||||||||||||||
$ | 108.5 | $ | 160.4 | (32) | % | ||||||||||||
Digital | 105.1 | 91.6 | 15 | % | |||||||||||||
Third party sales | 14.0 | 19.0 | (26) | % | |||||||||||||
Total advertising related | 227.6 | 271.0 | (16) | % | |||||||||||||
Consumer related | |||||||||||||||||
Subscription | 133.4 | 150.5 | (11) | % | |||||||||||||
Newsstand | 35.1 | 42.6 | (18) | % | |||||||||||||
Affinity marketing | 14.4 | 13.9 | 4 | % | |||||||||||||
Licensing | 24.1 | 20.0 | 21 | % | |||||||||||||
Digital and other consumer driven | 20.1 | 16.5 | 22 | % | |||||||||||||
Total consumer related | 227.1 | 243.5 | (7) | % | |||||||||||||
Other | |||||||||||||||||
Project based | 9.9 | 14.4 | (31) | % | |||||||||||||
Other | 3.1 | 4.0 | (23) | % | |||||||||||||
Total other | 13.0 | 18.4 | (29) | % | |||||||||||||
Total revenues | 467.7 | 532.9 | (12) | % | |||||||||||||
Operating expenses | |||||||||||||||||
Costs and expenses | 436.2 | 499.6 | (13) | % | |||||||||||||
Impairment of long-lived assets | — | 5.2 | (100) | % | |||||||||||||
Total operating expenses | 436.2 | 504.8 | (14) | % | |||||||||||||
Operating profit | $ | 31.5 | $ | 28.1 | 12 | % | |||||||||||
Operating profit margin | 6.7 | % | 5.3 | % | |||||||||||||
Three months ended December 31, | 2019 | 2018 | Change | |||||||
(In millions) | ||||||||||
Advertising related | ||||||||||
$ | 149.4 | $ | 167.4 | (11 | )% | |||||
Digital | 132.2 | 122.9 | 8 | % | ||||||
Third party sales | 20.4 | 16.1 | 27 | % | ||||||
Total advertising related | 302.0 | 306.4 | (1 | )% | ||||||
Consumer related | ||||||||||
Subscription | 159.8 | 192.0 | (17 | )% | ||||||
Newsstand | 37.7 | 43.5 | (13 | )% | ||||||
Affinity marketing | 20.0 | 18.3 | 9 | % | ||||||
Licensing | 24.4 | 23.7 | 3 | % | ||||||
Digital and other consumer driven | 21.9 | 16.6 | 32 | % | ||||||
Total consumer related | 263.8 | 294.1 | (10 | )% | ||||||
Other | ||||||||||
Project based | 15.1 | 13.5 | 12 | % | ||||||
Other | 16.3 | 2.2 | n/m | |||||||
Total other | 31.4 | 15.7 | 100 | % | ||||||
Total revenues | 597.2 | 616.2 | (3 | )% | ||||||
Operating expenses | (496.7 | ) | (569.2 | ) | (13 | )% | ||||
Operating profit | $ | 100.5 | $ | 47.0 | n/m | |||||
Operating profit margin | 16.8 | % | 7.6 | % | ||||||
n/m - Not meaningful |
Six months ended December 31, | 2019 | 2018 | Change | |||||||
(In millions) | ||||||||||
Advertising related | ||||||||||
$ | 309.8 | $ | 352.6 | (12 | )% | |||||
Digital | 223.8 | 207.8 | 8 | % | ||||||
Third party sales | 39.4 | 33.2 | 19 | % | ||||||
Total advertising related | 573.0 | 593.6 | (3 | )% | ||||||
Consumer related | ||||||||||
Subscription | 310.3 | 352.7 | (12 | )% | ||||||
Newsstand | 80.3 | 82.6 | (3 | )% | ||||||
Affinity marketing | 33.9 | 37.2 | (9 | )% | ||||||
Licensing | 44.4 | 48.5 | (8 | )% | ||||||
Digital and other consumer driven | 38.4 | 27.6 | 39 | % | ||||||
Total consumer related | 507.3 | 548.6 | (8 | )% | ||||||
Other | ||||||||||
Project based | 29.5 | 22.9 | 29 | % | ||||||
Other | 20.3 | 11.7 | 74 | % | ||||||
Total other | 49.8 | 34.6 | 44 | % | ||||||
Total revenues | 1,130.1 | 1,176.8 | (4 | )% | ||||||
Operating expenses | (1,001.5 | ) | (1,111.7 | ) | (10 | )% | ||||
Operating profit | $ | 128.6 | $ | 65.1 | 98 | % | ||||
Operating profit margin | 11.4 | % | 5.5 | % |
Three months ended September 30, | 2020 | 2019 | Change | ||||||||||||||
(In millions) | |||||||||||||||||
Advertising related | |||||||||||||||||
Non-political spot | $ | 56.8 | $ | 76.8 | (26) | % | |||||||||||
Political spot | 51.7 | 2.6 | n/m | ||||||||||||||
Digital | 4.3 | 4.2 | 2 | % | |||||||||||||
Third party sales | 18.3 | 25.5 | (28) | % | |||||||||||||
Total advertising related | 131.1 | 109.1 | 20 | % | |||||||||||||
Consumer related | |||||||||||||||||
Retransmission | 91.4 | 79.6 | 15 | % | |||||||||||||
Digital and other consumer driven | 0.2 | — | n/m | ||||||||||||||
Consumer related | 91.6 | 79.6 | 15 | % | |||||||||||||
Other | 3.3 | 4.1 | (20) | % | |||||||||||||
Total revenues | 226.0 | 192.8 | 17 | % | |||||||||||||
Operating costs and expenses | 162.2 | 154.4 | 5 | % | |||||||||||||
Operating profit | $ | 63.8 | $ | 38.4 | 66 | % | |||||||||||
Operating profit margin | 28.2 | % | 19.9 | % | |||||||||||||
n/m - Not meaningful |
Three months ended December 31, | 2019 | 2018 | Change | |||||||
(In millions) | ||||||||||
Advertising related | ||||||||||
Non-political spot | $ | 89.5 | $ | 87.6 | 2 | % | ||||
Political spot | 4.4 | 65.8 | (93 | )% | ||||||
Digital | 4.9 | 4.0 | 23 | % | ||||||
Third party sales | 27.2 | 28.7 | (5 | )% | ||||||
Total advertising related | 126.0 | 186.1 | (32 | )% | ||||||
Consumer related | 85.1 | 74.1 | 15 | % | ||||||
Other | 2.9 | 2.2 | 32 | % | ||||||
Total revenues | 214.0 | 262.4 | (18 | )% | ||||||
Operating expenses | (159.2 | ) | (155.8 | ) | 2 | % | ||||
Operating profit | $ | 54.8 | $ | 106.6 | (49 | )% | ||||
Operating profit margin | 25.6 | % | 40.6 | % |
Six months ended December 31, | 2019 | 2018 | Change | |||||||
(In millions) | ||||||||||
Advertising related | ||||||||||
Non-political spot | $ | 166.3 | $ | 162.5 | 2 | % | ||||
Political spot | 7.0 | 101.9 | n/m | |||||||
Digital | 9.1 | 7.9 | 15 | % | ||||||
Third party sales | 52.7 | 52.7 | 0 | % | ||||||
Total advertising related | 235.1 | 325.0 | (28 | )% | ||||||
Consumer related | 164.7 | 147.4 | 12 | % | ||||||
Other | 7.0 | 4.4 | 59 | % | ||||||
Total revenues | 406.8 | 476.8 | (15 | )% | ||||||
Operating expenses | (313.6 | ) | (302.7 | ) | 4 | % | ||||
Operating profit | $ | 93.2 | $ | 174.1 | (46 | )% | ||||
Operating profit margin | 22.9 | % | 36.5 | % | ||||||
n/m - Not meaningful |
Unallocated Corporate Expenses | 2020 | 2019 | Change | ||||||||||||||
(In millions) | |||||||||||||||||
Three months ended September 30, | $ | 17.2 | $ | 23.6 | (27) | % | |||||||||||
Unallocated Corporate Expenses | 2019 | 2018 | Change | |||||||
(In millions) | ||||||||||
Three months ended December 31, | $ | 21.4 | $ | 19.9 | 8 | % | ||||
Six months ended December 31, | 45.0 | 51.3 | (12 | )% |
Three months ended September 30, | 2020 | 2019 | Change | ||||||||||||||
(In millions) | |||||||||||||||||
Production, distribution, and editorial | $ | 241.1 | $ | 273.7 | (12) | % | |||||||||||
Selling, general, and administrative | 311.2 | 330.8 | (6) | % | |||||||||||||
Acquisition, disposition, and restructuring related activities | 14.1 | 14.1 | 0 | % | |||||||||||||
Depreciation and amortization | 49.0 | 58.5 | (16) | % | |||||||||||||
Impairment of long-lived assets | — | 5.2 | (100) | % | |||||||||||||
Operating expenses | $ | 615.4 | $ | 682.3 | (10) | % | |||||||||||
Three months ended December 31, | 2019 | 2018 | Change | |||||||
(In millions) | ||||||||||
Production, distribution, and editorial | $ | 280.1 | $ | 305.9 | (8 | )% | ||||
Selling, general, and administrative | 338.4 | 346.0 | (2 | )% | ||||||
Acquisition, disposition, and restructuring related activities | (0.5 | ) | 27.7 | n/m | ||||||
Depreciation and amortization | 58.6 | 65.1 | (10 | )% | ||||||
Operating expenses | $ | 676.6 | $ | 744.7 | (9 | )% | ||||
n/m - Not meaningful |
Six months ended December 31, | 2019 | 2018 | Change | |||||||
(In millions) | ||||||||||
Production, distribution, and editorial | $ | 553.8 | $ | 595.0 | (7 | )% | ||||
Selling, general, and administrative | 669.2 | 696.3 | (4 | )% | ||||||
Acquisition, disposition, and restructuring related activities | 13.6 | 44.8 | (70 | )% | ||||||
Depreciation and amortization | 117.1 | 128.8 | (9 | )% | ||||||
Impairment of long-lived assets | 5.2 | — | n/m | |||||||
Operating expenses | $ | 1,358.9 | $ | 1,464.9 | (7 | )% | ||||
n/m - Not meaningful |
Three months ended September 30, | 2019 | |||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||
Revenues | $ | 85.5 | ||||||||||||||||||||||||
Costs and expenses | (86.7) | |||||||||||||||||||||||||
Impairment of goodwill | (4.2) | |||||||||||||||||||||||||
Interest expense | (1.2) | |||||||||||||||||||||||||
Loss before income taxes | (6.6) | |||||||||||||||||||||||||
Income tax benefit | 0.6 | |||||||||||||||||||||||||
Loss from discontinued operations, net of income taxes | $ | (6.0) | ||||||||||||||||||||||||
Loss per share from discontinued operations | ||||||||||||||||||||||||||
Basic | $ | (0.13) | ||||||||||||||||||||||||
Diluted | (0.13) |
Three Months | Six Months | |||||||||||||||
Periods ended December 31, | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(In millions except per share data) | ||||||||||||||||
Revenues | $ | 25.3 | $ | 128.2 | $ | 110.8 | $ | 251.9 | ||||||||
Costs and expenses | (20.9 | ) | (109.6 | ) | (107.6 | ) | (225.9 | ) | ||||||||
Impairment of goodwill | (11.8 | ) | — | (16.0 | ) | — | ||||||||||
Interest expense | (0.8 | ) | (9.3 | ) | (2.0 | ) | (15.7 | ) | ||||||||
Gain on disposal | 3.0 | — | 3.0 | — | ||||||||||||
Earnings (loss) before income taxes | (5.2 | ) | 9.3 | (11.8 | ) | 10.3 | ||||||||||
Income tax expense | (19.1 | ) | (78.8 | ) | (18.5 | ) | (79.0 | ) | ||||||||
Loss from discontinued operations, net of income taxes | $ | (24.3 | ) | $ | (69.5 | ) | $ | (30.3 | ) | $ | (68.7 | ) | ||||
Loss per share from discontinued operations | ||||||||||||||||
Basic | $ | (0.54 | ) | $ | (1.53 | ) | $ | (0.66 | ) | $ | (1.52 | ) | ||||
Diluted | (0.51 | ) | (1.47 | ) | (0.66 | ) | (1.46 | ) |
Three months ended September 30, | 2020 | 2019 | Change | ||||||||||||||
(In millions) | |||||||||||||||||
Net earnings | $ | 42.3 | $ | 6.1 | n/m | ||||||||||||
Net cash provided by (used in) operating activities | $ | 78.9 | $ | (13.5) | n/m | ||||||||||||
Net cash used in investing activities | (9.0) | (30.1) | (70) | % | |||||||||||||
Net cash provided by (used in) financing activities | (1.6) | 16.4 | n/m | ||||||||||||||
Effect of exchange rate changes | 0.3 | 0.3 | 0 | % | |||||||||||||
Change in cash in assets held-for-sale | — | 9.3 | (100) | % | |||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 68.6 | $ | (17.6) | n/m | ||||||||||||
n/m - Not meaningful |
Six months ended December 31, | 2019 | 2018 | Change | |||||||
(In millions) | ||||||||||
Net earnings | $ | 43.9 | $ | 35.6 | 23 | % | ||||
Cash flows provided by operating activities | $ | 72.1 | $ | 59.4 | 21 | % | ||||
Net cash provided by (used in) investing activities | (23.7 | ) | 329.1 | n/m | ||||||
Net cash used in financing activities | (67.0 | ) | (748.8 | ) | n/m | |||||
Effect of exchange rate changes | (0.1 | ) | (0.6 | ) | n/m | |||||
Change in cash in assets held-for-sale | (5.1 | ) | 0.4 | n/m | ||||||
Net decrease in cash and cash equivalents | $ | (23.8 | ) | $ | (360.5 | ) | (93 | )% | ||
n/m - Not meaningful |
Summarized Balance Sheet | September 30, 2020 | June 30, 2020 | |||||||||
(In millions) | |||||||||||
Assets | |||||||||||
Current assets | $ | 982.9 | $ | 859.2 | |||||||
Intercompany receivable due from non-guarantor subsidiaries | 1,624.0 | 1,177.8 | |||||||||
Intangible assets, net | 1,607.4 | 1,637.4 | |||||||||
Goodwill | 1,691.7 | 1,691.7 | |||||||||
Other assets | 1,064.2 | 1,077.4 | |||||||||
Liabilities | |||||||||||
Current liabilities | 745.7 | 723.5 | |||||||||
Intercompany payable due to non-guarantor subsidiaries | 1,648.6 | 1,206.0 | |||||||||
Long-term debt | 2,983.5 | 2,981.8 | |||||||||
Other liabilities | 1,380.0 | 1,379.0 |
Summarized Statement of Earnings | Three Months Ended September 30, 2020 | ||||
(In millions) | |||||
Revenues | $ | 675.3 | |||
Total operating expenses | 603.7 | ||||
Net earnings | 36.5 |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
PART II | OTHER INFORMATION |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
(c) | Issuer Repurchases of Equity Securities |
Period | (a) Total number of shares purchased 1, 2 | (b) Average price paid per share | (c) Total number of shares purchased as part of publicly announced programs | (d) Approximate dollar value of shares that may yet be purchased under programs | ||||||||||||
(in millions) | ||||||||||||||||
October 1 to October 31, 2019 | 45,718 | $ | 36.75 | 45,718 | $ | 47.3 | ||||||||||
November 1 to November 30, 2019 | 19,410 | 38.89 | 3,632 | 47.1 | ||||||||||||
December 1 to December 31, 2019 | — | — | — | 47.1 | ||||||||||||
Total | 65,128 | 49,350 |
Period | (a) Total number of shares purchased 1 | (b) Average price paid per share | (c) Total number of shares purchased as part of publicly announced programs | (d) Approximate dollar value of shares that may yet be purchased under programs | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
July 1 to July 31, 2020 | — | $ | — | — | $ | 46.6 | ||||||||||||||||||||||||||
August 1 to August 31, 2020 | 22,127 | 15.50 | 22,127 | 46.2 | ||||||||||||||||||||||||||||
September 1 to September 30, 2020 | 5,085 | 13.55 | 5,085 | 46.1 | ||||||||||||||||||||||||||||
Total | 27,212 | 27,212 |
1 | The number of shares purchased includes | |||||
Item 6. | Exhibits | |||||||||||||
The Company's Restated Articles of Incorporation, as amended, are incorporated herein by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the period ended December 31, 2003. | ||||||||||||||
The Restated Bylaws, as amended, are incorporated herein by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2015. | ||||||||||||||
List of Guarantor Subsidiaries | ||||||||||||||
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended. | ||||||||||||||
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended. | ||||||||||||||
32 * | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL (included in Exhibits 101) | |||||||||||||
* These certifications are being furnished solely to accompany this Quarterly Report pursuant to 18 U.S.C. Section 1350, and are not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not to be incorporated by reference into any filing of the registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing. |
SIGNATURE | |||||||||||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |
MEREDITH CORPORATION | ||||||||
/s/ Jason Frierott | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
Date: |