Exhibit 99.1 - Supplemental Financial Information – Fourth fiscal quarter ended September 25, 2016.
201 N. Harrison St.
Davenport, IA 52801
www.lee.net
|
| | | | | | | | | | | | | |
| 13 Weeks Ended (unaudited) | | | | | | | |
| | September 25, 2016 | | September 27, 2015 |
| (in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | | Consolidated | Lee Legacy | Pulitzer Inc. |
| Operating revenue: | | | | | | | |
| Advertising and marketing services | 86,801 |
| 60,377 |
| 26,424 |
| | 97,318 |
| 67,944 |
| 29,374 |
|
| Subscription | 49,753 |
| 33,984 |
| 15,769 |
| | 48,570 |
| 33,417 |
| 15,153 |
|
| Other | 11,624 |
| 9,647 |
| 1,977 |
| | 10,211 |
| 8,719 |
| 1,492 |
|
| Total operating revenue | 148,178 |
| 104,008 |
| 44,170 |
| | 156,099 |
| 110,080 |
| 46,019 |
|
| Operating expenses: | | | | | | | |
| Compensation | 55,019 |
| 42,318 |
| 12,701 |
| | 57,413 |
| 42,195 |
| 15,218 |
|
| Newsprint and ink | 6,767 |
| 4,881 |
| 1,886 |
| | 6,335 |
| 4,670 |
| 1,665 |
|
| Other cash costs | 52,394 |
| 28,109 |
| 24,285 |
| | 55,523 |
| 33,234 |
| 22,289 |
|
| Depreciation and amortization | 10,689 |
| 7,651 |
| 3,038 |
| | 11,106 |
| 7,683 |
| 3,423 |
|
| Loss (gain) on sale of assets, net | (1,573 | ) | (13 | ) | (1,560 | ) | | (328 | ) | 40 |
| (368 | ) |
| Impairment of goodwill and other assets | 2,382 |
| 1,820 |
| 562 |
| | — |
| — |
| — |
|
| Workforce adjustments | 209 |
| 209 |
| — |
| | 1,396 |
| 228 |
| 1,168 |
|
| Total operating expenses | 125,887 |
| 84,975 |
| 40,912 |
| | 131,445 |
| 88,050 |
| 43,395 |
|
| Equity in earnings of MNI and TNI | 1,900 |
| 795 |
| 1,105 |
| | 2,141 |
| 1,116 |
| 1,025 |
|
| Operating income | 24,191 |
| 19,828 |
| 4,363 |
| | 26,795 |
| 23,146 |
| 3,649 |
|
| Non-operating income (expense), net | (23,925 | ) | (24,835 | ) | 910 |
| | (12,417 | ) | (12,269 | ) | (148 | ) |
| Income tax expense | (395 | ) | (2,494 | ) | 2,099 |
| | 4,244 |
| 2,972 |
| 1,272 |
|
| Net income | 661 |
| (2,513 | ) | 3,174 |
| | 10,134 |
| 7,905 |
| 2,229 |
|
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 | 661 |
| (2,513 | ) | 3,174 |
| | 10,134 |
| 7,905 |
| 2,229 |
|
| Adjusted to exclude | | | | | | | |
| Non-operating expenses, net | 23,925 |
| 24,835 |
| (910 | ) | | 12,417 |
| 12,269 |
| 148 |
|
| Income tax expense | (395 | ) | (2,494 | ) | 2,099 |
| | 4,244 |
| 2,972 |
| 1,272 |
|
| Equity in earnings of TNI and MNI | (1,900 | ) | (795 | ) | (1,105 | ) | | (2,141 | ) | (1,116 | ) | (1,025 | ) |
| Depreciation and amortization | 10,689 |
| 7,651 |
| 3,038 |
| | 11,106 |
| 7,683 |
| 3,423 |
|
| Loss (gain) on sale of assets, net | (1,573 | ) | (13 | ) | (1,560 | ) | | (328 | ) | 40 |
| (368 | ) |
| Impairment of goodwill and other assets | 2,382 |
| 1,820 |
| 562 |
| | — |
| — |
| — |
|
| Workforce adjustments | 209 |
| 209 |
| — |
| | 1,396 |
| 228 |
| 1,168 |
|
| Stock compensation | 592 |
| 592 |
| — |
| | 326 |
| 326 |
| — |
|
| Add: | | | | | | | |
| Ownership share of TNI and MNI EBITDA (50%) | 2,560 |
| 1,350 |
| 1,210 |
| | 2,814 |
| 1,683 |
| 1,131 |
|
| Adjusted EBITDA | 37,150 |
| 30,642 |
| 6,508 |
| | 39,968 |
| 31,990 |
| 7,978 |
|
| | | | | | | | |
| Supplemental cash flow information | | | | | |
| Distributions from MNI and TNI | 2,906 |
| 1,500 |
| 1,406 |
| | 2,862 |
| 1,500 |
| 1,362 |
|
| Capital expenditures | (1,299 | ) | (1,168 | ) | (131 | ) | | (2,016 | ) | (1,668 | ) | (348 | ) |
| Pension contributions | (2,290 | ) | — |
| (2,290 | ) | | (2,012 | ) | — |
| (2,012 | ) |
| Cash income tax refunds (payments) | 6 |
| 12 |
| (6 | ) | | (549 | ) | (549 | ) | — |
|
| Interest income | 74 |
| (814 | ) | 888 |
| | 79 |
| 79 |
| — |
|
| Interest to be settled in cash | (15,027 | ) | (11,028 | ) | (3,999 | ) | | (17,095 | ) | (17,095 | ) | — |
|
| Debt financing and administrative costs | (2 | ) | (2 | ) | — |
| | (256 | ) | (62 | ) | (194 | ) |
|
| | | | | | | | | | | | | |
| 52 Weeks Ended (unaudited) | | | | | | | |
| | September 25, 2016 | | September 27, 2015 |
| (in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | | Consolidated | Lee Legacy | Pulitzer Inc. |
| Operating revenue: | | | | | | | |
| Advertising and marketing services | 373,463 |
| 258,920 |
| 114,543 |
| | 412,099 |
| 287,417 |
| 124,682 |
|
| Subscription | 194,002 |
| 133,153 |
| 60,849 |
| | 194,474 |
| 131,352 |
| 63,122 |
|
| Other | 46,899 |
| 39,330 |
| 7,569 |
| | 41,970 |
| 35,328 |
| 6,642 |
|
| Total operating revenue | 614,364 |
| 431,403 |
| 182,961 |
| | 648,543 |
| 454,097 |
| 194,446 |
|
| Operating expenses: | | | | | | | |
| Compensation | 229,752 |
| 175,166 |
| 54,586 |
| | 239,028 |
| 180,035 |
| 58,993 |
|
| Newsprint and ink | 26,110 |
| 18,822 |
| 7,288 |
| | 30,263 |
| 22,307 |
| 7,956 |
|
| Other cash costs | 218,726 |
| 123,600 |
| 95,126 |
| | 229,165 |
| 130,530 |
| 98,635 |
|
| Depreciation and amortization | 43,441 |
| 30,666 |
| 12,775 |
| | 45,563 |
| 31,358 |
| 14,205 |
|
| Loss (gain) on sale of assets, net | (3,139 | ) | 643 |
| (3,782 | ) | | 106 |
| (109 | ) | 215 |
|
| Impairment of goodwill and other assets | 2,185 |
| 1,820 |
| 365 |
| | — |
| — |
| — |
|
| Workforce adjustments | 1,825 |
| 1,719 |
| 106 |
| | 3,304 |
| 983 |
| 2,321 |
|
| Total operating expenses | 518,900 |
| 352,436 |
| 166,464 |
| | 547,429 |
| 365,104 |
| 182,325 |
|
| Equity in earnings of MNI and TNI | 8,533 |
| 3,473 |
| 5,060 |
| | 8,254 |
| 3,416 |
| 4,838 |
|
| Operating income | 103,997 |
| 82,440 |
| 21,557 |
| | 109,368 |
| 92,409 |
| 16,959 |
|
| Non-operating income (expense), net | (45,802 | ) | (48,988 | ) | 3,186 |
| | (71,456 | ) | (71,510 | ) | 54 |
|
| Income tax expense | 22,176 |
| 13,189 |
| 8,987 |
| | 13,594 |
| 7,415 |
| 6,179 |
|
| Net income | 36,019 |
| 20,263 |
| 15,756 |
| | 24,318 |
| 13,484 |
| 10,834 |
|
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 | 36,019 |
| 20,263 |
| 15,756 |
| | 24,318 |
| 13,484 |
| 10,834 |
|
| Adjusted to exclude | | | | | | | |
| Non-operating expenses, net | 45,802 |
| 48,988 |
| (3,186 | ) | | 71,456 |
| 71,510 |
| (54 | ) |
| Income tax expense | 22,176 |
| 13,189 |
| 8,987 |
| | 13,594 |
| 7,415 |
| 6,179 |
|
| Equity in earnings of TNI and MNI | (8,533 | ) | (3,473 | ) | (5,060 | ) | | (8,254 | ) | (3,416 | ) | (4,838 | ) |
| Depreciation and amortization | 43,441 |
| 30,666 |
| 12,775 |
| | 45,563 |
| 31,358 |
| 14,205 |
|
| Loss (gain) on sale of assets, net | (3,139 | ) | 643 |
| (3,782 | ) | | 106 |
| (109 | ) | 215 |
|
| Impairment of goodwill and other assets | 2,185 |
| 1,820 |
| 365 |
| | — |
| — |
| — |
|
| Workforce adjustments | 1,825 |
| 1,719 |
| 106 |
| | 3,304 |
| 983 |
| 2,321 |
|
| Stock compensation | 2,306 |
| 2,306 |
| — |
| | 1,971 |
| 1,971 |
| — |
|
| Add: | | | | | | | |
| Ownership share of TNI and MNI EBITDA (50%) | 11,705 |
| 6,226 |
| 5,479 |
| | 11,246 |
| 5,989 |
| 5,257 |
|
| Adjusted EBITDA | 153,787 |
| 122,347 |
| 31,440 |
| | 163,304 |
| 129,185 |
| 34,119 |
|
| | | | | | | | |
| Supplemental cash flow information: | | | | | |
| Distributions from MNI and TNI | 13,886 |
| 7,250 |
| 6,636 |
| | 10,975 |
| 5,500 |
| 5,475 |
|
| Capital expenditures | (7,091 | ) | (6,281 | ) | (810 | ) | | (9,707 | ) | (6,747 | ) | (2,960 | ) |
| Pension contributions | (4,604 | ) | — |
| (4,604 | ) | | (3,577 | ) | — |
| (3,577 | ) |
| Cash income tax refunds (payments) | (269 | ) | (263 | ) | (6 | ) | | (485 | ) | (396 | ) | (89 | ) |
| Interest income | 400 |
| (2,759 | ) | 3,159 |
| | 337 |
| (1,331 | ) | 1,668 |
|
| Interest to be settled in cash | (64,233 | ) | (47,787 | ) | (16,446 | ) | | (72,409 | ) | (71,510 | ) | (899 | ) |
| Debt financing and administrative costs | (422 | ) | (378 | ) | (44 | ) | | (733 | ) | (440 | ) | (293 | ) |
