Exhibit 99.1 - Supplemental Financial Information – Second fiscal quarter ended March 27, 2016.
201 N. Harrison St.
Davenport, IA 52801
www.lee.net
|
| | | | | | | | | | | | | |
| 13 Weeks Ended (unaudited) | | | | | | | |
| | March 27, 2016 | | March 29, 2015 |
| (in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | | Consolidated | Lee Legacy | Pulitzer Inc. |
| Operating revenue: | | | | | | | |
| Advertising and marketing services | 88,731 |
| 62,247 |
| 26,484 |
| | 98,017 |
| 69,148 |
| 28,869 |
|
| Subscription | 46,658 |
| 32,300 |
| 14,358 |
| | 48,111 |
| 32,513 |
| 15,598 |
|
| Other | 11,446 |
| 9,723 |
| 1,723 |
| | 10,429 |
| 8,872 |
| 1,557 |
|
| Total operating revenue | 146,835 |
| 104,270 |
| 42,565 |
| | 156,557 |
| 110,533 |
| 46,024 |
|
| Operating expenses: | | | | | | | |
| Compensation | 58,850 |
| 44,754 |
| 14,096 |
| | 61,236 |
| 46,273 |
| 14,963 |
|
| Newsprint and ink | 6,053 |
| 4,559 |
| 1,494 |
| | 7,661 |
| 5,727 |
| 1,934 |
|
| Other cash costs | 54,107 |
| 30,970 |
| 23,137 |
| | 56,866 |
| 32,327 |
| 24,539 |
|
| Depreciation and amortization | 10,941 |
| 7,673 |
| 3,268 |
| | 11,566 |
| 7,884 |
| 3,682 |
|
| Loss (gain) on sale of assets, net | (438 | ) | 96 |
| (534 | ) | | 5 |
| 4 |
| 1 |
|
| Workforce adjustments | 588 |
| 571 |
| 17 |
| | 641 |
| 242 |
| 399 |
|
| Total operating expenses | 130,101 |
| 88,623 |
| 41,478 |
| | 137,975 |
| 92,457 |
| 45,518 |
|
| Equity in earnings of MNI and TNI | 2,009 |
| 645 |
| 1,364 |
| | 1,653 |
| 444 |
| 1,209 |
|
| Operating income | 18,743 |
| 16,292 |
| 2,451 |
| | 20,235 |
| 18,520 |
| 1,715 |
|
| Nonoperating income (expense), net | 13,129 |
| 12,358 |
| 771 |
| | (17,476 | ) | (17,514 | ) | 38 |
|
| Income tax expense | 12,389 |
| 11,218 |
| 1,171 |
| | 717 |
| 80 |
| 637 |
|
| Net income | 19,483 |
| 17,432 |
| 2,051 |
| | 2,042 |
| 926 |
| 1,116 |
|
Adjusted EBITDA is a non-GAAP financial measure. Below is a reconciliation of adjusted EBITDA to net income, the most directly comparable measure under GAAP:
|
| | | | | | | | | | | | | |
| Net Income | 19,483 |
| 17,432 |
| 2,051 |
| | 2,042 |
| 926 |
| 1,116 |
|
| Adjusted to exclude | | | | | | | |
| Nonoperating expenses, net | (13,129 | ) | (12,358 | ) | (771 | ) | | 17,476 |
| 17,514 |
| (38 | ) |
| Income tax expense | 12,389 |
| 11,218 |
| 1,171 |
| | 717 |
| 80 |
| 637 |
|
| Equity in earnings of TNI and MNI | (2,009 | ) | (645 | ) | (1,364 | ) | | (1,653 | ) | (444 | ) | (1,209 | ) |
| Depreciation and amortization | 10,941 |
| 7,673 |
| 3,268 |
| | 11,566 |
| 7,884 |
| 3,682 |
|
| Loss (gain) on sale of assets, net | (438 | ) | 96 |
| (534 | ) | | 5 |
| 4 |
| 1 |
|
| Workforce adjustments | 588 |
| 571 |
| 17 |
| | 641 |
| 242 |
| 399 |
|
| Stock compensation | 594 |
| 594 |
| — |
| | 640 |
| 640 |
| — |
|
| Add: | | | | | | | |
| Ownership share of TNI and MNI EBITDA (50%) | 2,711 |
| 1,242 |
| 1,469 |
| | 2,212 |
| 898 |
| 1,314 |
|
| Adjusted EBITDA | 31,130 |
| 25,823 |
| 5,307 |
| | 33,646 |
| 27,744 |
| 5,902 |
|
| | | | | | | | |
| Supplemental cash flow information | | | | | |
| Distributions from MNI and TNI | 4,501 |
| 2,250 |
| 2,251 |
| | 3,128 |
| 1,250 |
| 1,878 |
|
| Capital expenditures | (1,801 | ) | (1,644 | ) | (157 | ) | | (2,128 | ) | (1,438 | ) | (690 | ) |
| Pension contributions | (744 | ) | — |
| (744 | ) | | (435 | ) | — |
| (435 | ) |
| Cash income tax refunds (payments) | (282 | ) | (282 | ) | — |
| | 68 |
| 157 |
| (89 | ) |
| Interest income | 110 |
| 110 |
| — |
| | 102 |
| 102 |
| — |
|
| Interest to be settled in cash | (16,281 | ) | (12,151 | ) | (4,130 | ) | | (18,403 | ) | (18,084 | ) | (319 | ) |
| Debt financing and administrative costs | — |
| — |
| — |
| | (65 | ) | (65 | ) | — |
|
|
| | | | | | | | | | | | | |
| 26 Weeks Ended (unaudited) | | | | | | | |
| | March 27, 2016 | | March 29, 2015 |
| (in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | | Consolidated | Lee Legacy | Pulitzer Inc. |
| Operating revenue: | | | | | | | |
| Advertising and marketing services | 194,368 |
| 134,685 |
| 59,683 |
| | 213,847 |
| 149,342 |
| 64,505 |
|
| Subscription | 97,089 |
| 66,839 |
| 30,250 |
| | 98,510 |
| 66,059 |
| 32,451 |
|
| Other | 23,783 |
| 20,130 |
| 3,653 |
| | 21,409 |
| 17,940 |
| 3,469 |
|
| Total operating revenue | 315,240 |
| 221,654 |
| 93,586 |
| | 333,766 |
| 233,341 |
| 100,425 |
|
| Operating expenses: | | | | | | | |
| Compensation | 117,514 |
| 89,601 |
| 27,913 |
| | 123,173 |
| 92,519 |
| 30,654 |
|
| Newsprint and ink | 12,738 |
| 9,706 |
| 3,032 |
| | 16,507 |
| 12,250 |
| 4,257 |
|
| Other cash costs | 112,977 |
| 65,038 |
| 47,939 |
| | 117,103 |
| 66,330 |
| 50,773 |
|
| Depreciation and amortization | 21,884 |
| 15,308 |
| 6,576 |
| | 23,061 |
| 15,834 |
| 7,227 |
|
| Loss (gain) on sale of assets, net | (1,409 | ) | 133 |
| (1,542 | ) | | (252 | ) | (75 | ) | (177 | ) |
| Workforce adjustments | 1,192 |
| 1,114 |
| 78 |
| | 852 |
| 314 |
| 538 |
|
| Total operating expenses | 264,896 |
| 180,900 |
| 83,996 |
| | 280,444 |
| 187,172 |
| 93,272 |
|
| Equity in earnings of MNI and TNI | 4,808 |
| 1,828 |
| 2,980 |
| | 4,410 |
| 1,556 |
| 2,854 |
|
| Operating income | 55,152 |
| 42,582 |
| 12,570 |
| | 57,732 |
| 47,725 |
| 10,007 |
|
| Nonoperating income (expense), net | (4,626 | ) | (6,098 | ) | 1,472 |
| | (38,468 | ) | (38,541 | ) | 73 |
|
| Income tax expense | 19,535 |
| 14,435 |
| 5,100 |
| | 7,215 |
| 3,553 |
| 3,662 |
|
| Net income | 30,991 |
| 22,049 |
| 8,942 |
| | 12,049 |
| 5,631 |
| 6,418 |
|
Adjusted EBITDA is a non-GAAP financial measure. Below is a reconciliation of adjusted EBITDA to net income, the most directly comparable measure under GAAP:
|
| | | | | | | | | | | | | |
| Net Income | 30,991 |
| 22,049 |
| 8,942 |
| | 12,049 |
| 5,631 |
| 6,418 |
|
| Adjusted to exclude | | | | | | | |
| Nonoperating expenses, net | 4,626 |
| 6,098 |
| (1,472 | ) | | 38,468 |
| 38,541 |
| (73 | ) |
| Income tax expense | 19,535 |
| 14,435 |
| 5,100 |
| | 7,215 |
| 3,553 |
| 3,662 |
|
| Equity in earnings of TNI and MNI | (4,808 | ) | (1,828 | ) | (2,980 | ) | | (4,410 | ) | (1,556 | ) | (2,854 | ) |
| Depreciation and amortization | 21,884 |
| 15,308 |
| 6,576 |
| | 23,061 |
| 15,834 |
| 7,227 |
|
| Loss (gain) on sale of assets, net | (1,409 | ) | 133 |
| (1,542 | ) | | (252 | ) | (75 | ) | (177 | ) |
| Workforce adjustments | 1,192 |
| 1,114 |
| 78 |
| | 852 |
| 314 |
| 538 |
|
| Stock compensation | 1,164 |
| 1,164 |
| — |
| | 1,083 |
| 1,083 |
| — |
|
| Add: | | | | | | | |
| Ownership share of TNI and MNI EBITDA (50%) | 6,519 |
| 3,330 |
| 3,189 |
| | 5,969 |
| 2,906 |
| 3,063 |
|
| Adjusted EBITDA | 79,694 |
| 61,803 |
| 17,891 |
| | 84,035 |
| 66,231 |
| 17,804 |
|
| | | | | | | | |
| Supplemental cash flow information: | | | | | |
| Distributions from MNI and TNI | 7,729 |
| 4,000 |
| 3,729 |
| | 6,072 |
| 3,000 |
| 3,072 |
|
| Capital expenditures | (3,271 | ) | (2,846 | ) | (425 | ) | | (5,675 | ) | (3,518 | ) | (2,157 | ) |
| Pension contributions | (1,488 | ) | — |
| (1,488 | ) | | (435 | ) | — |
| (435 | ) |
| Cash income tax refunds (payments) | (271 | ) | (271 | ) | — |
| | 64 |
| 153 |
| (89 | ) |
| Interest income | 185 |
| 185 |
| — |
| | 180 |
| 180 |
| — |
|
| Interest to be settled in cash | (33,423 | ) | (25,035 | ) | (8,388 | ) | | (37,193 | ) | (36,414 | ) | (779 | ) |
| Debt financing and administrative costs | (44 | ) | — |
| (44 | ) | | (82 | ) | (82 | ) | — |
|
