Time (TIME) 8-K Results of Operations and Financial Condition

Exhibit 99.1

TIME INC.

2014 TRENDING SCHEDULES

BASIS OF PRESENTATION

Time Inc. utilizes Adjusted Operating Income Before Depreciation and Amortization (“Adjusted OIBDA”), among other measures, to evaluate the performance of its business. Adjusted OIBDA is defined as Operating Income less Depreciation and Amortization (“OIBDA”) and as adjusted for asset impairments, restructuring and severance costs, gains or losses on operating assets, and external costs related to mergers, acquisitions or dispositions.

Free Cash Flow is defined as Cash provided by (used in) operations (from continuing operations) less capital expenditures. The Company uses Free Cash Flow to evaluate its business and this measure is considered an important indicator of the Company’s liquidity, including its ability to reduce net debt, make strategic investments, and pay dividends to common shareholders.

We believe that the presentation of OIBDA, Adjusted OIBDA, and Free Cash Flow helps investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provides useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business and helps investors evaluate our ability to service our debt.

Some limitations of OIBDA, Adjusted OIBDA, and Free Cash Flow are that they do not reflect certain charges that affect the operating results of the Company’s business and they involve judgment as to whether items affect fundamental operating performance.

A general limitation of these measures is that they are not prepared in accordance with U.S. generally accepted accounting principles and may not be comparable to similarly titled measures of other companies due to differences in methods of calculation and excluded items. OIBDA, Adjusted OIBDA, and Free Cash Flow should be considered in addition to, not as a substitute for, the Company’s Operating income (loss), Income (loss) from continuing operations and various cash flow measures (e.g., Cash provided by (used in) operations), as well as other measures of financial performance and liquidity reported in accordance with U.S. generally accepted accounting principles.

The pro forma share information presented herein gives effect to the issuance of 110.3 million common shares of the Company in connection with the spin-off of the Company from Time Warner as if it had occurred at the beginning of each period presented.

TIME INC.

2014 TRENDING SCHEDULES

COMBINED BALANCE SHEETS

(In millions, Unaudited)

	2012												2013												2014
	March 31,			June 30,			September 30,			December 31,			March 31,			June 30,			September 30,			December 31,			March 31,
ASSETS
Current assets
Cash and cash equivalents	$	94		$	116		$	88		$	81		$	70		$	69		$	63		$	46		$	51
Receivables, less allowances		507			497			468			588			530			520			502			489			414
Inventories, net of reserves		94			89			94			83			98			99			71			56			63
Deferred income taxes		100			89			85			82			82			82			82			75			75
Prepaid expenses and other current assets		70			71			67			52			73			84			96			97			133
Total current assets		865			862			802			886			853			854			814			763			736
Property, plant and equipment, net		620			599			588			576			544			529			521			534			494
Intangible assets subject to amortization, net		501			491			483			638			627			617			608			582			1,150
Intangible assets not subject to amortization		800			799			799			637			636			636			637			586			—
Goodwill		3,142			3,134			3,145			3,150			3,123			3,123			3,132			3,162			3,174
Other assets		46			48			50			48			45			45			44			47			72
Total assets	$	5,974		$	5,933		$	5,867		$	5,935		$	5,828		$	5,804		$	5,756		$	5,674		$	5,626
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued liabilities	$	429		$	476		$	466		$	531		$	453		$	494		$	514		$	534		$	499
Deferred revenue, current portion		535			510			494			485			509			486			463			449			468
Total current liabilities		964			986			960			1,016			962			980			977			983			967
Long term debt		34			35			35			36			36			37			37			38			38
Deferred income taxes		292			292			305			313			306			315			326			313			298
Deferred revenue		151			145			141			137			140			133			128			135			129
Other noncurrent liabilities		95			86			90			149			101			89			130			163			213
Commitments and contingencies
EQUITY
Divisional equity		4,570			4,548			4,480			4,429			4,483			4,450			4,332			4,158			4,079
Accumulated other comprehensive income (loss), net		(132	)		(159	)		(144	)		(145	)		(200	)		(200	)		(174	)		(116	)		(98	)
Total equity		4,438			4,389			4,336			4,284			4,283			4,250			4,158			4,042			3,981
Total liabilities and equity	$	5,974		$	5,933		$	5,867		$	5,935		$	5,828		$	5,804		$	5,756		$	5,674		$	5,626

TIME INC.

2014 TRENDING SCHEDULES

COMBINED STATEMENTS OF OPERATIONS

(In millions, except per share amounts; Unaudited)

	Year Ended			Three Months Ended												Year Ended			Three Months Ended												Year Ended			Three Months Ended
	12/31/2011			3/31/2012			6/30/2012			9/30/2012			12/31/2012			12/31/2012			3/31/2013			6/30/2013			9/30/2013			12/31/2013			12/31/2013			3/31/2014
Revenues
Advertising	$	1,923		$	383		$	472		$	437		$	527		$	1,819		$	389		$	448		$	430		$	540		$	1,807		$	390
Circulation
Subscription		754			179			180			179			210			748			166			174			176			205			721			180
Newsstand		498			107			108			115			118			448			88			95			105			101			389			86
Other		19			3			4			3			4			14			4			4			4			7			19			4
Total Circulation		1,271			289			292			297			332			1,210			258			273			285			313			1,129			270
Other		483			101			94			104			108			407			90			112			103			113			418			85
Total revenue		3,677			773			858			838			967			3,436			737			833			818			966			3,354			745
Operating expenses
Cost of revenue		(1,380	)		(318	)		(337	)		(335	)		(354	)		(1,344	)		(300	)		(319	)		(322	)		(381	)		(1,322	)		(306	)
Selling , general and administrative		(1,557	)		(379	)		(379	)		(340	)		(378	)		(1,476	)		(361	)		(359	)		(345	)		(381	)		(1,446	)		(375	)
Amortization of intangible assets		(42	)		(9	)		(9	)		(9	)		(9	)		(36	)		(10	)		(10	)		(10	)		(12	)		(42	)		(19	)
Asset impairments		(17	)		—			—			—			(6	)		(6	)		—			—			—			(79	)		(79	)		(26	)
Restructuring and severance costs		(18	)		(6	)		(12	)		(6	)		(3	)		(27	)		(53	)		(1	)		(4	)		(5	)		(63	)		(115	)
Depreciation expense		(100	)		(23	)		(24	)		(22	)		(22	)		(91	)		(22	)		(20	)		(22	)		(21	)		(85	)		(24	)
Gain (loss) on operating assets		—			(42	)		—			1			5			(36	)		—			—			—			13			13			—
Total operating expenses		(3,114	)		(777	)		(761	)		(711	)		(767	)		(3,016	)		(746	)		(709	)		(703	)		(866	)		(3,024	)		(865	)
Operating income (loss)		563			(4	)		97			127			200			420			(9	)		124			115			100			330			(120	)
Interest income (expense), net		(4	)		(1	)		(1	)		(1	)		—			(3	)		(1	)		(1	)		(1	)		—			(3	)		(1	)
Other income (loss), net		6			(1	)		(1	)		—			(1	)		(3	)		—			(1	)		—			—			(1	)		5
Income (loss) before taxes		565			(6	)		95			126			199			414			(10	)		122			114			100			326			(116	)
Income tax (provision) benefit		(197	)		(4	)		(34	)		(42	)		(71	)		(151	)		2			(46	)		(46	)		(35	)		(125	)		42
Net income (loss)	$	368		$	(10	)	$	61		$	84		$	128		$	263		$	(8	)	$	76		$	68		$	65		$	201		$	(74	)
Pro forma basic net income (loss) per common share	$	3.34		$	(0.09	)	$	0.55		$	0.76		$	1.16		$	2.38			(0.07	)	$	0.69		$	0.62		$	0.59		$	1.82		$	(0.67	)
Pro forma diluted net income (loss) per common share	$	3.34		$	(0.09	)	$	0.55		$	0.76		$	1.16		$	2.38		$	(0.07	)	$	0.69		$	0.62		$	0.59		$	1.82		$	(0.67	)
Pro forma weighted average basic common shares outstanding		110.3			110.3			110.3			110.3			110.3			110.3			110.3			110.3			110.3			110.3			110.3			110.3
Pro forma weighted average diluted common shares outstanding		110.3			110.3			110.3			110.3			110.3			110.3			110.3			110.3			110.3			110.3			110.3			110.3

TIME INC.

2014 TRENDING SCHEDULES

COMBINED STATEMENTS OF CASH FLOWS

(In millions; Unaudited)

	2011			2012												2013												2014
	Year Ended			Three Months Ended			Six Months Ended			Nine Months Ended			Year Ended			Three Months Ended			Six Months Ended			Nine Months Ended			Year Ended			Three Months Ended
	December 31,			March 31,			June 30,			September 30,			December 31,			March 31,			June 30,			September 30,			December 31,			March 31,
OPERATING ACTIVITIES
Net income (loss)	$	368		$	(10	)	$	80		$	135		$	263		$	(8	)	$	111		$	135		$	201		$	(74	)
Adjustments for noncash and nonoperating items:
Depreciation and amortization		142			32			64			96			127			32			63			94			127			43
Asset impairments		17			—			—			—			6			—			—			—			79			26
Loss on investments and other assets, net		1			42			42			41			36			—			—			—			—			1
Equity in (gains) losses of investee companies, net of cash distributions		(6	)		1			2			2			4			1			2			3			2			2
Equity-based compensation		41			16			25			32			39			7			9			13			18			2
Deferred income taxes		18			2			5			17			32			(5	)		3			13			28			(11	)
Changes in operating assets and liabilities, net of acquisition		(107	)		(13	)		3			9			(46	)		(28	)		(26	)		(11	)		(37	)		11
Cash provided by (used in) operations		474			70			221			332			461			(1	)		162			247			418			—
INVESTING ACTIVITIES
Investments and acquisitions, net of cash acquired		(2	)		(1	)		(6	)		(8	)		(8	)		(1	)		(2	)		(3	)		10			(12	)
Capital expenditures		(48	)		(6	)		(12	)		(20	)		(34	)		(6	)		(12	)		(19	)		(34	)		(7	)
Other investment proceeds		4			15			15			16			16			—			—			—			1			—
Cash provided by (used in) investing activities		(46	)		8			(3	)		(12	)		(26	)		(7	)		(14	)		(22	)		(23	)		(19	)
FINANCING ACTIVITIES
Net transfers from (to) Time Warner		(411	)		(91	)		(209	)		(338	)		(465	)		(21	)		(186	)		(273	)		(464	)		12
Excess tax benefit from equity instruments		6			12			12			11			16			18			26			30			34			12
Cash provided by (used in) financing activities		(405	)		(79	)		(197	)		(327	)		(449	)		(3	)		(160	)		(243	)		(430	)		24
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		23			(1	)		21			(7	)		(14	)		(11	)		(12	)		(18	)		(35	)		5
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		72			95			95			95			95			81			81			81			81			46
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	95		$	94		$	116		$	88		$	81		$	70		$	69		$	63		$	46		$	51
Free Cash Flow:
Cash provided by (used in) operations	$	474		$	70		$	221		$	332		$	461		$	(1	)	$	162		$	247		$	418		$	—
Less capital expenditures		(48	)		(6	)		(12	)		(20	)		(34	)		(6	)		(12	)		(19	)		(34	)		(7	)
Free Cash Flow(1)	$	426		$	64		$	209		$	312		$	427		$	(7	)	$	150		$	228		$	384		$	(7	)

(1) Free cash flow is defined as net cash flows provided by (used in) operations less capital expenditures.

TIME INC.

2014 TRENDING SCHEDULES

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OIBDA

(In millions; Unaudited)

	Year Ended		Three Months Ended											Year Ended		Three Months Ended										Year Ended			Three Months Ended
	12/31/2011		3/31/2012			6/30/2012		9/30/2012			12/31/2012			12/31/2012		3/31/2013			6/30/2013		9/30/2013		12/31/2013			12/31/2013			3/31/2014
Operating income (loss)	$	563	$	(4	)	$	97	$	127		$	200		$	420	$	(9	)	$	124	$	115	$	100		$	330		$	(120	)
Depreciation		100		23			24		22			22			91		22			20		22		21			85			24
Amortization		42		9			9		9			9			36		10			10		10		12			42			19
OIBDA(1)		705		28			130		158			231			547		23			154		147		133			457			(77	)
Asset impairments		17		—			—		—			6			6		—			—		—		79			79			26
Restructuring and severance costs		18		6			12		6			3			27		53			1		4		5			63			115
(Gain) loss on operating assets		—		42			—		(1	)		(5	)		36		—			—		—		(13	)		(13	)		—
Other costs		—		1			—		—			—			1		—			—		1		—			1			—
Adjusted OIBDA(2)	$	740	$	77		$	142	$	163		$	235		$	617	$	76		$	155	$	152	$	204		$	587		$	64

(1) OIBDA is defined as operating income (loss) less depreciation and amortization.

(2) Adjusted OIBDA is defined as OIBDA less asset impairments, restructuring and severance costs, gains or losses on operating assets and other costs related to acquisitions, dispositions and mergers.