Exhibit 99.1 - Supplemental Financial Information – Third fiscal quarter ended June 26, 2016.
201 N. Harrison St.
Davenport, IA 52801
www.lee.net
|
| | | | | | | | | | | | | |
| 13 Weeks Ended (unaudited) | | | | | | | |
| | June 26, 2016 | | June 28, 2015 |
| (in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | | Consolidated | Lee Legacy | Pulitzer Inc. |
| Operating revenue: | | | | | | | |
| Advertising and marketing services | 92,294 |
| 63,858 |
| 28,436 |
| | 100,934 |
| 70,417 |
| 30,517 |
|
| Subscription | 47,160 |
| 32,330 |
| 14,830 |
| | 47,394 |
| 31,876 |
| 15,518 |
|
| Other | 11,492 |
| 9,553 |
| 1,939 |
| | 10,350 |
| 9,079 |
| 1,271 |
|
| Total operating revenue | 150,946 |
| 105,741 |
| 45,205 |
| | 158,678 |
| 111,372 |
| 47,306 |
|
| Operating expenses: | | | | | | | |
| Compensation | 57,218 |
| 43,246 |
| 13,972 |
| | 58,442 |
| 43,572 |
| 14,870 |
|
| Newsprint and ink | 6,604 |
| 4,234 |
| 2,370 |
| | 7,421 |
| 5,387 |
| 2,034 |
|
| Other cash costs | 53,356 |
| 30,454 |
| 22,902 |
| | 56,538 |
| 33,409 |
| 23,129 |
|
| Depreciation and amortization | 10,868 |
| 7,707 |
| 3,161 |
| | 11,395 |
| 7,839 |
| 3,556 |
|
| Loss (gain) on sale of assets, net | (354 | ) | 18 |
| (372 | ) | | 686 |
| (73 | ) | 759 |
|
| Workforce adjustments | 424 |
| 396 |
| 28 |
| | 1,056 |
| 440 |
| 616 |
|
| Total operating expenses | 128,116 |
| 86,055 |
| 42,061 |
| | 135,538 |
| 90,574 |
| 44,964 |
|
| Equity in earnings of MNI and TNI | 1,825 |
| 850 |
| 975 |
| | 1,705 |
| 746 |
| 959 |
|
| Operating income | 24,655 |
| 20,536 |
| 4,119 |
| | 24,845 |
| 21,544 |
| 3,301 |
|
| Non-operating income (expense), net | (17,251 | ) | (18,055 | ) | 804 |
| | (20,569 | ) | (20,698 | ) | 129 |
|
| Income tax expense | 3,037 |
| 1,249 |
| 1,788 |
| | 2,141 |
| 895 |
| 1,246 |
|
| Net income | 4,367 |
| 1,232 |
| 3,135 |
| | 2,135 |
| (49 | ) | 2,184 |
|
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 | 4,367 |
| 1,232 |
| 3,135 |
| | 2,135 |
| (49 | ) | 2,184 |
|
| Adjusted to exclude | | | | | | | |
| Non-operating expenses, net | 17,251 |
| 18,055 |
| (804 | ) | | 20,569 |
| 20,698 |
| (129 | ) |
| Income tax expense | 3,037 |
| 1,249 |
| 1,788 |
| | 2,141 |
| 895 |
| 1,246 |
|
| Equity in earnings of TNI and MNI | (1,825 | ) | (850 | ) | (975 | ) | | (1,705 | ) | (746 | ) | (959 | ) |
| Depreciation and amortization | 10,868 |
| 7,707 |
| 3,161 |
| | 11,395 |
| 7,839 |
| 3,556 |
|
| Loss (gain) on sale of assets, net | (354 | ) | 18 |
| (372 | ) | | 686 |
| (73 | ) | 759 |
|
| Workforce adjustments | 424 |
| 396 |
| 28 |
| | 1,056 |
| 440 |
| 616 |
|
| Stock compensation | 550 |
| 550 |
| — |
| | 562 |
| 562 |
| — |
|
| Add: | | | | | | | |
| Ownership share of TNI and MNI EBITDA (50%) | 2,625 |
| 1,545 |
| 1,080 |
| | 2,464 |
| 1,401 |
| 1,063 |
|
| Adjusted EBITDA | 36,943 |
| 29,902 |
| 7,041 |
| | 39,303 |
| 30,967 |
| 8,336 |
|
| | | | | | | | |
| Supplemental cash flow information | | | | | |
| Distributions from MNI and TNI | 3,251 |
| 1,750 |
| 1,501 |
| | 2,041 |
| 1,000 |
| 1,041 |
|
| Capital expenditures | (2,521 | ) | (2,267 | ) | (254 | ) | | (2,011 | ) | (1,556 | ) | (455 | ) |
| Pension contributions | (826 | ) | — |
| (826 | ) | | (1,130 | ) | — |
| (1,130 | ) |
| Cash income tax payments | (4 | ) | (4 | ) | — |
| | (1 | ) | (1 | ) | — |
|
| Interest income | 141 |
| 141 |
| — |
| | 79 |
| 79 |
| — |
|
| Interest to be settled in cash | (15,783 | ) | (11,724 | ) | (4,059 | ) | | (18,121 | ) | (18,000 | ) | (121 | ) |
| Debt financing and administrative costs | (376 | ) | (376 | ) | — |
| | (395 | ) | (296 | ) | (99 | ) |
|
| | | | | | | | | | | | | |
| 39 Weeks Ended (unaudited) | | | | | | | |
| | June 26, 2016 | | June 28, 2015 |
| (in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | | Consolidated | Lee Legacy | Pulitzer Inc. |
| Operating revenue: | | | | | | | |
| Advertising and marketing services | 286,662 |
| 198,543 |
| 88,119 |
| | 314,780 |
| 220,194 |
| 94,586 |
|
| Subscription | 144,249 |
| 99,169 |
| 45,080 |
| | 145,904 |
| 97,935 |
| 47,969 |
|
| Other | 35,275 |
| 29,683 |
| 5,592 |
| | 31,760 |
| 27,831 |
| 3,929 |
|
| Total operating revenue | 466,186 |
| 327,395 |
| 138,791 |
| | 492,444 |
| 345,960 |
| 146,484 |
|
| Operating expenses: | | | | | | | |
| Compensation | 174,733 |
| 132,848 |
| 41,885 |
| | 181,615 |
| 135,553 |
| 46,062 |
|
| Newsprint and ink | 19,343 |
| 13,941 |
| 5,402 |
| | 23,928 |
| 17,637 |
| 6,291 |
|
| Other cash costs | 166,332 |
| 95,491 |
| 70,841 |
| | 173,641 |
| 101,525 |
| 72,116 |
|
| Depreciation and amortization | 32,752 |
| 23,015 |
| 9,737 |
| | 34,457 |
| 23,674 |
| 10,783 |
|
| Loss (gain) on sale of assets, net | (1,763 | ) | 151 |
| (1,914 | ) | | 434 |
| (148 | ) | 582 |
|
| Workforce adjustments | 1,616 |
| 1,510 |
| 106 |
| | 1,908 |
| 755 |
| 1,153 |
|
| Total operating expenses | 393,013 |
| 266,956 |
| 126,057 |
| | 415,983 |
| 278,996 |
| 136,987 |
|
| Equity in earnings of MNI and TNI | 6,633 |
| 2,678 |
| 3,955 |
| | 6,114 |
| 2,301 |
| 3,813 |
|
| Operating income | 79,806 |
| 63,117 |
| 16,689 |
| | 82,575 |
| 69,265 |
| 13,310 |
|
| Non-operating income (expense), net | (21,877 | ) | (24,153 | ) | 2,276 |
| | (59,038 | ) | (59,240 | ) | 202 |
|
| Income tax expense | 22,571 |
| 15,683 |
| 6,888 |
| | 9,353 |
| 4,445 |
| 4,908 |
|
| Net income | 35,358 |
| 23,281 |
| 12,077 |
| | 14,184 |
| 5,580 |
| 8,604 |
|
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 | 35,358 |
| 23,281 |
| 12,077 |
| | 14,184 |
| 5,580 |
| 8,604 |
|
| Adjusted to exclude | | | | | | | |
| Non-operating expenses, net | 21,877 |
| 24,153 |
| (2,276 | ) | | 59,038 |
| 59,240 |
| (202 | ) |
| Income tax expense | 22,571 |
| 15,683 |
| 6,888 |
| | 9,353 |
| 4,445 |
| 4,908 |
|
| Equity in earnings of TNI and MNI | (6,633 | ) | (2,678 | ) | (3,955 | ) | | (6,114 | ) | (2,301 | ) | (3,813 | ) |
| Depreciation and amortization | 32,752 |
| 26,176 |
| 6,576 |
| | 34,457 |
| 23,674 |
| 10,783 |
|
| Loss (gain) on sale of assets, net | (1,763 | ) | 151 |
| (1,914 | ) | | 434 |
| (148 | ) | 582 |
|
| Workforce adjustments | 1,616 |
| 1,510 |
| 106 |
| | 1,908 |
| 755 |
| 1,153 |
|
| Stock compensation | 1,714 |
| 1,714 |
| — |
| | 1,645 |
| 1,645 |
| — |
|
| Add: | | | | | | | |
| Ownership share of TNI and MNI EBITDA (50%) | 9,145 |
| 4,875 |
| 4,270 |
| | 8,432 |
| 4,306 |
| 4,126 |
|
| Adjusted EBITDA | 116,637 |
| 94,865 |
| 21,772 |
| | 123,337 |
| 97,196 |
| 26,141 |
|
| | | | | | | | |
| Supplemental cash flow information: | | | | | |
| Distributions from MNI and TNI | 10,980 |
| 5,750 |
| 5,230 |
| | 8,113 |
| 4,000 |
| 4,113 |
|
| Capital expenditures | (5,792 | ) | (5,113 | ) | (679 | ) | | (7,686 | ) | (5,074 | ) | (2,612 | ) |
| Pension contributions | (2,314 | ) | — |
| (2,314 | ) | | (1,565 | ) | — |
| (1,565 | ) |
| Cash income tax refunds (payments) | (275 | ) | (275 | ) | — |
| | 63 |
| 152 |
| (89 | ) |
| Interest income | 326 |
| 326 |
| — |
| | 258 |
| 258 |
| — |
|
| Interest to be settled in cash | (49,206 | ) | (36,759 | ) | (12,447 | ) | | (55,314 | ) | (54,415 | ) | (899 | ) |
| Debt financing and administrative costs | (420 | ) | (376 | ) | (44 | ) | | (477 | ) | (378 | ) | (99 | ) |
