Exhibit 99.1
New Media Announces Fourth Quarter and 2013 Annual Results
New Media Investment Group Inc. (NYSE: NEWM; “New Media” or the “Company”) today reported its financial results for the quarter and full year ended December 29, 2013.
Same Store Results
Same store results, a non-GAAP financial measure, take into account acquisitions and divestitures of the Company by adjusting prior year performance to include or exclude financial results as if the Company had owned or divested a business for the comparable period.
2013 Fourth Quarter Highlights:
| | • | | Total Revenue of $160.4 million |
| | • | | Net Income of $955.4 million |
| | • | | As Adjusted EBITDA of $34.1 million, an increase of 11.3% on a same store basis |
| | • | | Digital Revenue of $13.4 million, an increase of 11.9% on a same store basis |
| | • | | Propel Marketing (“Propel”) contributed $2.1 million to Digital Revenue |
| | • | | Operating Expenses decreased $9.9 million, or 7.3% on a same store basis |
| | • | | Distributable Cash Flow per share of $0.90, using pro forma interest and debt amortization for the new capital structure |
2013 Annual Highlights:
| | • | | Total Revenue of $516.5 million |
| | • | | Net Income of $794.6 million |
| | • | | As Adjusted EBITDA was $79.1 million, a decrease of 11.5% on a same store basis |
| | • | | Digital Revenue of $48.6 million, an increase of 15.3% on a same store basis |
| | • | | Propel contributed $6.4 million to Digital Revenue |
| | • | | Operating Expenses decreased $15.9 million, or 3.5% on a same store basis |
| | • | | Distributable Cash Flow per share of $2.17, using pro forma interest and debt amortization for the new capital structure, and assuming a full year of results for Local Media Group |
2013 Fourth Quarter and Full Year Results
| | | | | | | | |
| ($ in million except per share) | | | |
GAAP Reporting | | 4Q 2013 | | | FY 2013 | |
Revenue | | $ | 160.4 | | | $ | 516.5 | |
Operating Income (Loss) | | $ | 16.5 | | | $ | (73.9 | ) |
Net Income | | $ | 955.4 | | | $ | 794.6 | |
| | |
Non-GAAP Reporting | | 4Q 2013 | | | FY 2013 | |
As Adjusted EBITDA | | $ | 34.1 | | | $ | 79.1 | |
Distributable Cash* | | $ | 27.1 | | | $ | 65.2 | |
Distributable Cash Flow per share* | | $ | 0.90 | | | $ | 2.17 | |
| * | Pro forma for current capital structure and owning Local Media Group for the full year. |
| ** | For a reconciliation of Non-GAAP Reporting measures, please refer to the Non-GAAP Financial Measures Note and reconciliations below. |
Michael E. Reed, Presidential & Chief Executive Officer, said, “2013 was truly a transformative year. During the year, we restructured GateHouse Media’s balance sheet, entered into a new credit facility and emerged from bankruptcy as New Media on November 26, 2013. New Media is focused on stabilizing the traditional print business, growing our digital revenue, and acquiring strategic local media businesses.
“In 2013, New Media’s digital advertising business grew 4.9% year-over-year, and the digital marketing platform, Propel, generated an incremental $5.4 million of Digital Revenue year-over-year. Furthermore, as the Company was able to generate Operating Expense savings of $26.2 million throughout the year, we were able to reinvest a portion of these cost savings into our digital growth initiatives, especially Propel.
“In 2014, we intend to focus our growth strategy around our digital platforms, while continuing to grow our audiences and stabilize our print advertising related to our traditional business. On the mergers and acquisitions front, we hope to continue to acquire strategic media assets. Most recently, on March 3, we announced the acquisition of a community newspaper group in Victorville, CA. We believe there will be many similar compelling acquisition opportunities in the future.”
Fourth Quarter 2013
New Media recorded Revenue of $160.4 million for the quarter, which represents a decline of 3.9% when compared to the prior year on a same store basis. This decline represents the lowest quarterly decrease throughout 2013.
Total Advertising Revenue declined 8.0% on a same store basis driven by Local and Classified Print Revenue, which declined 11.5% and 9.4%, respectively, on a same store basis. However, the Company experienced strong revenue performance from Propel, Commercial Print, and Digital Advertising, which increased 264.2%, 8.2%, and 1.2%, respectively from the prior year on a same store basis.
Total Expenses in the quarter of $126.3 million were down 7.3% compared to the prior year on a same store basis after adjusting for non-recurring and non-cash items.
GAAP Net Income for the quarter was $955.4 million, compared to a Net Loss of $4.6 million in the prior year. As Adjusted EBITDA for the quarter was $34.1 million, which represented an increase of 11.3% compared to the prior year on a same store basis, excluding non-cash and non-recurring expenses.
Non-recurring costs and non-cash gains related to the restructuring in the quarter netted to $949.5 million.
Full Year 2013
New Media recorded Revenue of $516.5 million in 2013, which represents a decrease of 4.8% from the prior year on a same store basis. Print Advertising declines, specifically Local and Classified Print Revenue, were the primary drivers of full year revenue declines. The local retail print declines reflect both secular pressures and a continuing uncertain economic environment for small businesses. These secular trends and economic conditions have also led to a decline in our print circulation volumes which have been offset by price increases in certain locations.
Total Advertising Revenue declined 8.8% year-over-year on a same store basis. Local and Classified Print Revenue declined 12.2% and 12.9%, respectively, on a same store basis. However, from a Total Revenue perspective, these declines were partially offset by Digital, Propel, Circulation, and Commercial Printing which were all stable to strong categories.
In 2013 we had 4.9% growth in Digital Advertising Revenue and 569.9% growth in Propel on a same store basis. Circulation Revenue decreased 0.3% and Commercial Print and Other Revenue increased 1.9% on a same store basis.
Full year 2013 Expenses declined $15.9 million or 3.5% compared to the prior year and on a same store basis. The expense declines were driven primarily by lower compensation and newsprint, which was partially offset by investments in new strategic growth initiatives.
GAAP Net Income for the year was $794.6 million, compared to a Net Loss of $29.8 million in the prior year. As Adjusted EBITDA for the year was $79.1 million, which represents a decrease of $10.2 million. This decrease was primarily due to $4.9 million of investment in new strategic growth initiatives and revenue declines that outpaced core reduction initiatives.
Non-recurring costs and non-cash gains related to the restructuring in 2013 netted to $925.3 million.
Additional Information
For additional information that management believes to be useful for investors, please refer to the presentation posted on the Investor Relations section of New Media’s website,www.newmediainv.com. For consolidated investment portfolio information, please refer to the Company’s Annual Report on Form 10-K, which will be available on the Company’s website, www.newmediainv.com.
Earnings Conference Call
New Media’s management will host a conference call on Wednesday, March 19, 2014 at 10:00 A.M. Eastern Time. A copy of the earnings release will be posted to the Investor Relations section of New Media’s website, www.newmediainv.com.
All interested parties are welcome to participate on the live call. The conference call may be accessed by dialing 1-877-601-8827 (from within the U.S.) or 1-918-534-8645 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “New Media Fourth Quarter & Full Year 2013 Earnings Call.”
A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.newmediainv.com. Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast.
A telephonic replay of the conference call will also be available approximately two hours following the call’s completion through 11:59 P.M. Eastern Time on Wednesday, April 2, 2014 by dialing 1-855-859-2056 (from within the U.S.) or 1-404-537-3406 (from outside of the U.S.); please reference access code “14325660.”
About New Media Investment Group Inc.
New Media is focused primarily on investing in a high quality, diversified portfolio of local media assets, and on growing existing advertising and digital marketing businesses. The Company is one of the largest publishers of locally based print and online media in the United States as measured by number of daily publications. The Company operates in 352 markets across 24 states. New Media’s portfolio of products, which includes 421 community publications, 350 related websites, and six yellow page directories, serves more than 130,000 business advertising accounts and reaches over 12 million people on a weekly basis.
For more information regarding New Media and to be added to our email distribution list, please visitwww.newmediainv.com.
Non-GAAP Financial Measures
The Company strongly urges stockholders and other interested persons not to rely on any single financial measure to evaluate its business. In addition, because same store comparisons, Adjusted EBITDA, As Adjusted EBITDA and Distributable Cash Flow, are not measures of financial performance under GAAP and are susceptible to varying calculations, these non-GAAP measures, as presented in this press release, may differ from and may not be comparable to similarly titled measures used by other companies.
The Company had no operations until November 26, 2013 (the “Restructuring”), when it assumed control of GateHouse Media, LLC (formerly known as GateHouse Media, Inc.) (“GateHouse Media”) and Local Media Group Holdings LLC (“Local Media Group”). Due to the Restructuring and the acquisition of Local Media Group on September 3, 2013, management believes that presenting the Company’s financial results for the quarter and full year ended December 29, 2013 on an As Adjusted and same store basis (non-GAAP) provides investors and other interested persons with a more accurate comparison of the Company’s history to prior reporting periods. Such financial measures for the quarter and full year ended December 29, 2013 are not prepared in accordance with GAAP. A reconciliation of the Company’s GAAP financial results to As Adjusted and same store financial results is included with the financial schedules at the end of this release.
Adjusted EBITDA, As Adjusted EBITDA and Distributable Cash Flow
The Company defines Adjusted EBITDA as net income (loss) from continuing operations before income tax expense (benefit), interest/financing expense, depreciation and amortization and non-cash impairments. The Company defines As Adjusted EBITDA as Adjusted EBITDA before other non-cash items such as non-cash compensation, non-recurring integration and reorganization costs and Adjusted EBITDA from non-wholly owned subsidiaries. The Company defines Distributable Cash Flow as As Adjusted EBITDA less capital expenditures, cash taxes interest paid, pension payments and debt amortization.
Management’s Use of Adjusted EBITDA, As Adjusted EBITDA and Distributable Cash Flow
Adjusted EBITDA, As Adjusted EBITDA and Distributable Cash Flow are not measures of financial performance under GAAP and should not be considered in isolation or as alternatives to income from operations, net income (loss), cash flow from continuing operating activities or any other measure of performance or liquidity derived in accordance with GAAP. New Media’s management believes these non-GAAP measures, as defined above, are useful to investors for the following reasons:
| | • | | Evaluating performance and identifying trends in day-to-day performance because the items excluded have little or no significance on its day-to-day operations; |
| | • | | Providing assessments of controllable expenses that afford management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieving optimal financial performance; and |
| | • | | Indicators for management to determine if adjustments to current spending decisions are needed. |
Adjusted EBITDA, As Adjusted EBITDA and Distributable Cash Flow provide New Media with measures of financial performance, independent of items that are beyond the control of management in the short-term, such as depreciation and amortization, taxation and interest expense associated with its capital structure. These metrics measure New Media’s financial performance based on operational factors that management can impact in the short-term, namely the cost structure or expenses of the organization. Adjusted EBITDA, As Adjusted EBITDA and Distributable Cash Flow are some of the metrics used by senior management and the Board of Directors to review the financial performance of the business on a monthly basis. In addition, New Media’s management utilizes these metrics to evaluate the Company’s performance, along with other criteria, to determine the funds available for paying the quarterly dividend.
Forward-Looking Statements
Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our intention to stabilize our traditional print business, grow digital revenues and pursue and complete future acquisition opportunities. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties, such as a continued declines in advertising circulation, economic conditions in the markets in which we operate, competition from other media companies, the possibility of insufficient advertising interest in our digital business, technological developments in the media sector, an ability to source acquisition opportunities with an attractive risk-adjusted return profile, inadequate diligence of acquisition targets, and difficulties integrating newly acquired businesses. These and other risks and uncertainties could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond our control. The Company can give no assurance that its expectations will be attained. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could cause actual results to differ from such forward-looking statements, see the risks and other factors detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Furthermore, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.
New Media Investment Group Inc.
Investor Relations
212-479-3160
ir@newmediainv.com
Source: New Media Investment Group Inc.
NEW MEDIA INVESTMENT GROUP INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share data)
| | | | | | | | |
| | | Successor | | | Predecessor | |
| | | Company | | | Company | |
| | | December 29, | | | December 30, | |
| | | 2013 | | | 2012 | |
| Assets | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 31,811 | | | $ | 34,527 | |
Restricted cash | | | 6,477 | | | | 6,467 | |
Accounts receivable, net of allowance for doubtful accounts of $349 and $2,456 at December 29, 2013 and December 30, 2012, respectively | | | 71,401 | | | | 54,692 | |
Inventory | | | 7,697 | | | | 6,019 | |
Prepaid expenses | | | 7,986 | | | | 5,815 | |
Other current assets | | | 11,799 | | | | 8,215 | |
| | | | | | | | |
Total current assets | | | 137,171 | | | | 115,735 | |
Property, plant, and equipment, net of accumulated depreciation of $5,539 and $128,208 at December 29, 2013 and December 30, 2012, respectively | | | 270,187 | | | | 116,510 | |
Goodwill | | | 125,911 | | | | 13,742 | |
Intangible assets, net of accumulated amortization of $1,049 and $196,878 at December 29, 2013 and December 30, 2012, respectively | | | 145,401 | | | | 218,981 | |
Deferred financing costs, net | | | 8,297 | | | | 1,719 | |
Other assets | | | 2,363 | | | | 2,605 | |
Assets held for sale | | | 623 | | | | 474 | |
| | | | | | | | |
Total assets | | $ | 689,953 | | | $ | 469,766 | |
| | | | | | | | |
| Liabilities and Stockholders’ Equity (Deficit) | | | | | | | | |
Current liabilities: | | | | | | | | |
Current portion of long-term liabilities | | $ | 699 | | | $ | 853 | |
Current portion of long-term debt | | | 4,312 | | | | 6,648 | |
Accounts payable | | | 10,973 | | | | 9,396 | |
Accrued expenses | | | 54,990 | | | | 26,258 | |
Accrued interest | | | 828 | | | | 4,665 | |
Deferred revenue | | | 30,620 | | | | 25,217 | |
| | | | | | | | |
Total current liabilities | | | 102,422 | | | | 73,037 | |
Long-term liabilities: | | | | | | | | |
Long-term debt | | | 177,703 | | | | 1,167,450 | |
Long-term liabilities, less current portion | | | 4,405 | | | | 2,347 | |
Derivative instruments | | | — | | | | 45,724 | |
Pension and other postretirement benefit obligations | | | 10,061 | | | | 15,367 | |
| | | | | | | | |
Total liabilities | | | 294,591 | | | | 1,303,925 | |
| | | | | | | | |
Stockholders’ equity (deficit): | | | | | | | | |
Common stock, $0.01 par value, 2,000,000,000 and 150,000,000 shares authorized at December 29, 2013 and December 30, 2012, respectively; 30,000,000 and 58,313,868 issued, and 30,000,000 and 58,077,031 outstanding at December 29, 2013 and December 30, 2012, respectively | | | 300 | | | | 568 | |
Additional paid-in capital | | | 387,398 | | | | 831,344 | |
Accumulated other comprehensive income (loss) | | | 458 | | | | (52,642 | ) |
Retained earnings (accumulated deficit) | | | 7,206 | | | | (1,610,917 | ) |
Treasury stock, at cost, 0 and 236,837 shares at December 29, 2013 and December 30, 2012, respectively | | | — | | | | (310 | ) |
| | | | | | | | |
Total New Media stockholders’ equity (deficit) | | | 395,362 | | | | (831,957 | ) |
Noncontrolling Interest | | | — | | | | (2,202 | ) |
| | | | | | | | |
Total stockholders’ equity (deficit) | | | 395,362 | | | | (834,159 | ) |
| | | | | | | | |
Total liabilities and stockholders’ equity (deficit) | | $ | 689,953 | | | $ | 469,766 | |
| | | | | | | | |
NEW MEDIA INVESTMENT GROUP INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
and Comprehensive Income (Loss)
(In thousands, except share and per share data)
| | | | | | | | | | | | | | | | |
| | | Combined | | | Predecessor | | | Combined | | | Predecessor | |
| | | Company | | | Company | | | Company | | | Company | |
| | | Three months | | | Three months | | | Twelve | | | Twelve | |
| | | ended | | | ended | | | months ended | | | months ended | |
| | | December 29, | | | December 30, | | | December 29, | | | December 30, | |
| | | 2013(1) | | | 2012 | | | 2013(2) | | | 2012 | |
Revenues: | | | | | | | | | | | | | | | | |
Advertising | | $ | 98,849 | | | $ | 84,871 | | | $ | 328,418 | | | $ | 330,881 | |
Circulation | | | 45,965 | | | | 33,297 | | | | 148,335 | | | | 131,576 | |
Commercial printing and other | | | 15,536 | | | | 7,225 | | | | 39,768 | | | | 26,097 | |
| | | | | | | | | | | | | | | | |
Total revenues | | | 160,350 | | | | 125,393 | | | | 516,521 | | | | 488,554 | |
Operating costs and expenses: | | | | | | | | | | | | | | | | |
Operating costs | | | 87,857 | | | | 65,579 | | | | 288,680 | | | | 268,222 | |
Selling, general, and administrative | | | 44,326 | | | | 37,961 | | | | 165,581 | | | | 145,020 | |
Depreciation and amortization | | | 9,614 | | | | 9,882 | | | | 39,997 | | | | 39,888 | |
Integration and reorganization costs | | | 1,954 | | | | 935 | | | | 3,335 | | | | 4,393 | |
Impairment of long-lived assets | | | — | | | | — | | | | 91,599 | | | | — | |
Loss on sale of assets | | | 138 | | | | 704 | | | | 1,190 | | | | 1,238 | |
| | | | | | | | | | | | | | | | |
Operating income (loss) | | | 16,461 | | | | 10,332 | | | | (73,861 | ) | | | 29,793 | |
Interest expense | | | 6,485 | | | | 14,431 | | | | 75,998 | | | | 57,928 | |
Amortization of deferred financing costs | | | 210 | | | | 261 | | | | 1,013 | | | | 1,255 | |
(Loss) gain on derivative instruments | | | — | | | | 5 | | | | 14 | | | | (1,635 | ) |
Other (income) expense | | | (14 | ) | | | (53 | ) | | | 991 | | | | (85 | ) |
Reorganization items, net | | | (957,459 | ) | | | — | | | | (947,617 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income taxes | | | 967,239 | | | | (4,312 | ) | | | 795,740 | | | | (27,670 | ) |
Income tax expense (benefit) | | | 11,172 | | | | — | | | | 294 | | | | (207 | ) |
| | | | | | | | | | | | | | | | |
Loss from continuing operations | | | 956,067 | | | | (4,312 | ) | | | 795,446 | | | | (27,463 | ) |
Loss from discontinued operations, net of income taxes | | | — | | | | (247 | ) | | | (1,034 | ) | | | (2,340 | ) |
| | | | | | | | | | | | | | | | |
Net income (loss) | | | 956,067 | | | | (4,559 | ) | | | 794,412 | | | | (29,803 | ) |
Net loss (income) attributable to noncontrolling interest | | | (657 | ) | | | — | | | | 208 | | | | — | |
| | | | | | | | | | | | | | | | |
Net income (loss) attributable to New Media | | | 955,410 | | | | (4,559 | ) | | | 794,620 | | | | (29,803 | ) |
| | | | | | | | | | | | | | | | |
Loss per share: | | | | | | | | | | | | | | | | |
Basic and diluted: | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations attributable to New Media | | $ | 31.85 | | | $ | (0.07 | ) | | $ | 14.74 | | | $ | (0.47 | ) |
Loss from discontinued operations, attributable to New Media, net of income taxes | | | — | | | | (0.01 | ) | | | (0.02 | ) | | | (0.04 | ) |
| | | | | | | | | | | | | | | | |
Net income (loss) attributable to New Media | | $ | 31.85 | | | $ | (0.08 | ) | | $ | 14.72 | | | $ | (0.51 | ) |
Basic weighted average shares outstanding | | | 30,000,000 | | | | 58,041,907 | | | | 53,971,004 | | | | 58,041,907 | |
Diluted weighted average shares outstanding | | | 30,000,000 | | | | 58,041,907 | | | | 53,971,004 | | | | 58,041,907 | |
| | | | |
Comprehensive income (loss) | | $ | 966,843 | | | $ | (28,086 | ) | | $ | 840,589 | | | $ | (28,086 | ) |
Comprehensive income (loss) attributable to noncontrolling interest | | | 657 | | | | — | | | | (208 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Comprehensive income (loss) attributable to New Media | | $ | 966,186 | | | $ | (28,086 | ) | | $ | 840,797 | | | $ | (28,086 | ) |
| | | | | | | | | | | | | | | | |
| (1) | Includes the one month Predecessor Period ended November 6, 2013 and the two month Successor Period ended December 29th, 2013. For further discussion on the Predecessor Period and Successor Period please refer to the Company’s SEC filings. |
| (2) | Includes both the ten month Predecessor Period ended November 6, 2013 and the two month Successor Period ended December 29, 2013. For further discussion on the Predecessor Period and Successor Period please refer to the Company’s SEC filings. |
NEW MEDIA INVESTMENT GROUP INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands)
| | | | | | | | | | | | |
| | | Combined | | | Predecessor | | | Predecessor | |
| | | Company | | | Company | | | Company | |
| | | Twelve | | | Twelve | | | Twelve months | |
| | | months ended | | | months ended | | | ended | |
| | | December 29, | | | December 30, | | | January 1, | |
| | | 2013(1) | | | 2012 | | | 2012 | |
Cash flows from operating activities: | | | | | | | | | | | | |
Net income (loss) | | $ | 794,412 | | | $ | (29,803 | ) | | $ | (21,649 | ) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | | | | | | | | | | | | |
Depreciation and amortization | | | 40,054 | | | | 40,627 | | | | 43,393 | |
Amortization of deferred financing costs | | | 1,013 | | | | 1,255 | | | | 1,360 | |
Loss (gain) on derivative instrument | | | 14 | | | | (1,635 | ) | | | (913 | ) |
Non-cash compensation expense | | | 25 | | | | 95 | | | | 462 | |
Non-cash interest expense | | | 15 | | | | — | | | | — | |
Non-cash reorganization costs, net | | | (954,605 | ) | | | — | | | | — | |
Non-cash interest related to unrealized losses upon dedesignation of cash flow hedges | | | 26,313 | | | | — | | | | — | |
Loss on sale of assets | | | 2,345 | | | | 1,270 | | | | 806 | |
Pension and other postretirement benefit obligations | | | (1,137 | ) | | | (939 | ) | | | (1,859 | ) |
Impairment of long-lived assets | | | 91,599 | | | | 2,128 | | | | 2,051 | |
Goodwill impairment | | | — | | | | 216 | | | | 385 | |
Changes in assets and liabilities: | | | — | | | | | | | | | |
Accounts receivable, net | | | (2,865 | ) | | | 3,448 | | | | 2,478 | |
Inventory | | | (142 | ) | | | (2 | ) | | | 1,714 | |
Prepaid expenses | | | (1,421 | ) | | | 9,605 | | | | (4,977 | ) |
Other assets | | | (2,266 | ) | | | (1,903 | ) | | | (585 | ) |
Accounts payable | | | 969 | | | | 1,322 | | | | 2,311 | |
Accrued expenses | | | 13,129 | | | | (1,789 | ) | | | (1,731 | ) |
Accrued interest | | | 4,939 | | | | 1,789 | | | | 71 | |
Deferred revenue | | | (1,533 | ) | | | (1,597 | ) | | | (177 | ) |
Other long-term liabilities | | | (670 | ) | | | (588 | ) | | | (701 | ) |
| | | | | | | | | | | | |
Net cash provided (used in) by operating activities | | | 10,188 | | | | 23,499 | | | | 22,439 | |
| | | | | | | | | | | | |
Cash flows from investing activities: | | | | | | | | | | | | |
Purchases of property, plant, and equipment | | | (5,168 | ) | | | (4,687 | ) | | | (3,330 | ) |
Proceeds from sale of publications, other assets and insurance | | | 992 | | | | 3,643 | | | | 2,599 | |
| | | | | | | | | | | | |
Net cash used in investing activities | | | (4,176 | ) | | | (1,044 | ) | | | (731 | ) |
| | | | | | | | | | | | |
Cash flows from financing activities: | | | | | | | | | | | | |
Payment of debt issuance costs | | | (3,690 | ) | | | — | | | | — | |
Net borrowings under credit facilities | | | 149,000 | | | | — | | | | — | |
Capital contribution to Local Media | | | 1,610 | | | | — | | | | — | |
Repayments under current portion of long-term debt | | | (6,648 | ) | | | (4,600 | ) | | | (11,249 | ) |
Repayments under long-term debt | | | — | | | | (2,540 | ) | | | — | |
Payment of dividends | | | (149,000 | ) | | | — | | | | — | |
| | | | | | | | | | | | |
Net cash used in financing activities | | | (8,728 | ) | | | (7,140 | ) | | | (11,249 | ) |
| | | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | | | (2,716 | ) | | | 15,315 | | | | 10,459 | |
Cash and cash equivalents at beginning of period | | | 34,527 | | | | 19,212 | | | | 8,753 | |
| | | | | | | | | | | | |
Cash and cash equivalents at end of period | | $ | 31,811 | | | $ | 34,527 | | | $ | 19,212 | |
| | | | | | | | | | | | |
Supplemental disclosures on cash flow information: | | | | | | | | | | | | |
Cash interest paid | | $ | 44,531 | | | $ | 55,976 | | | $ | 58,225 | |
| (1) | Includes the ten month Predecessor Period ended November 6, 2013 and the two month Successor Period ended December 29th, 2013. For further discussion on the Predecessor Period and Successor Period please refer to the Company’s SEC filings. |
NEW MEDIA INVESTMENT GROUP INC. AND SUBSIDIARIES
As Adjusted EBITDA
(In thousands, except share and per share data)
| | | | | | | | | | | | | | | | |
| | | | | | Predecessor | | | | | | Predecessor | |
| | | Combined | | | Company | | | Combined | | | Company | |
| | | Three months | | | Three months | | | Twelve | | | Twelve | |
| | | ended | | | ended | | | months ended | | | months ended | |
| | | December 29, | | | December 30, | | | December 29, | | | December 30, | |
| | | 2013 | | | 2012 | | | 2013 | | | 2012 | |
Income (Loss) from continuing operations | | $ | 956,067 | | | $ | (4,312 | ) | | $ | 795,446 | | | $ | (27,463 | ) |
Income tax (benefit) expense | | | 11,172 | | | | — | | | | 294 | | | | (207 | ) |
(Gain) loss on derivative instruments(1) | | | — | | | | 5 | | | | 14 | | | | (1,635 | ) |
Amortization of deferred financing costs | | | 210 | | | | 261 | | | | 1,013 | | | | 1,255 | |
Interest expense | | | 6,485 | | | | 14,431 | | | | 75,998 | | | | 57,928 | |
Impairment of long-lived assets | | | — | | | | — | | | | 91,599 | | | | — | |
Depreciation and amortization | | | 9,614 | | | | 9,882 | | | | 39,997 | | | | 39,888 | |
| | | | | | | | | | | | | | | | |
Adjusted EBITDA from continuing operations | | | 983,548 | | | | 20,267 | | | | 1,004,361 | | | | 69,766 | |
Non-cash compensation and other expense | | | (951,587 | ) | | | 1,667 | | | | (929,926 | ) | | | 5,378 | |
Integration and reorganization costs | | | 1,954 | | | | 935 | | | | 3,335 | | | | 4,393 | |
Loss on sale of assets | | | 138 | | | | 704 | | | | 1,190 | | | | 1,238 | |
As adjusted EBITDA from discontinued operations | | | — | | | | (247 | ) | | | 123 | | | | 255 | |
Adjustment for Local Media acquisition | | | — | | | | 7,264 | | | | — | | | | 8,901 | |
| | | | | | | | | | | | | | | | |
As Adjusted EBITDA | | | 34,053 | | | | 30,590 | | | | 79,083 | | | | 89,931 | |
Interest paid | | | (1,132 | ) | | | | | | | (44,531 | ) | | | | |
Net capital expenditures | | | (1,931 | ) | | | | | | | (5,198 | ) | | | | |
Pension payments | | | (302 | ) | | | | | | | (1,394 | ) | | | | |
Cash taxes | | | — | | | | | | | | — | | | | | |
Debt amortization | | | — | | | | | | | | (6,648 | ) | | | | |
Pro Forma Adjustments: | | | | | | | | | | | | | | | | |
As Adjusted EBITDA from Local Media - 8 months | | | | | | | | | | | 11,781 | | | | | |
Interest Adjustment | | | (2,537 | ) | | | | | | | 29,743 | | | | | |
Debt amortization Adjustment | | | (1,078 | ) | | | | | | | 2,335 | | | | | |
| | | | | | | | | | | | | | | | |
Proforma Distributable Cash Flow | | $ | 27,073 | | | | | | | $ | 65,171 | | | | | |
| | | | | | | | | | | | | | | | |
Diluted weighted average shares outstanding | | | 30,000,000 | | | | | | | | 30,000,000 | | | | | |
Proforma Distributable Cash Flow per share | | $ | 0.90 | | | | | | | $ | 2.17 | | | | | |
| (1) | Non-cash loss on derivative instruments is related to interest rate swap agreements which are financing related and are excluded from Adjusted EBITDA. |
NEW MEDIA INVESTMENT GROUP INC. AND SUBSIDIARIES
Same Store Revenues
(In thousands)
| | | | | | | | | | | | | | | | |
| | | | | | Predecessor | | | | | | Predecessor | |
| | | Combined | | | Company | | | Combined | | | Company | |
| | | Three months | | | Three months | | | Twelve | | | Twelve | |
| | | ended | | | ended | | | months ended | | | months ended | |
| | | December 29, | | | December 30, | | | December 29, | | | December 30, | |
| | | 2013 | | | 2012 | | | 2013 | | | 2012 | |
Total revenues from continuing operations | | $ | 160,350 | | | $ | 125,393 | | | $ | 516,521 | | | $ | 488,554 | |
Revenues adjustment for Local Media acquisition | | | — | | | | 41,442 | | | | — | | | | 54,053 | |
| | | | | | | | | | | | | | | | |
Same Store Revenues | | $ | 160,350 | | | $ | 166,835 | | | $ | 516,521 | | | $ | 542,607 | |
| | | | | | | | | | | | | | | | |
