Exhibit 99.1 - Supplemental Financial Information – First fiscal quarter ended December 25, 2016.
201 N. Harrison St.
Davenport, IA 52801
www.lee.net
|
| | | | | | | | | | | | | |
| 13 Weeks Ended (unaudited) | | | | | | | |
| | December 25, 2016 | | December 27, 2015 |
| (in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | | Consolidated | Lee Legacy | Pulitzer Inc. |
| Operating revenue: | | | | | | | |
| Advertising and marketing services | 93,035 |
| 64,105 |
| 28,930 |
| | 105,637 |
| 72,438 |
| 33,199 |
|
| Subscription | 48,888 |
| 34,018 |
| 14,870 |
| | 50,430 |
| 34,538 |
| 15,892 |
|
| Other | 12,066 |
| 9,988 |
| 2,078 |
| | 12,338 |
| 10,408 |
| 1,930 |
|
| Total operating revenue | 153,989 |
| 108,111 |
| 45,878 |
| | 168,405 |
| 117,384 |
| 51,021 |
|
| Operating expenses: | | | | | | | |
| Compensation | 55,056 |
| 42,053 |
| 13,003 |
| | 58,665 |
| 44,848 |
| 13,817 |
|
| Newsprint and ink | 6,893 |
| 4,902 |
| 1,991 |
| | 6,685 |
| 5,147 |
| 1,538 |
|
| Other cash costs | 52,777 |
| 31,224 |
| 21,553 |
| | 58,869 |
| 34,067 |
| 24,802 |
|
| Depreciation and amortization | 10,380 |
| 7,410 |
| 2,970 |
| | 10,943 |
| 7,635 |
| 3,308 |
|
| Loss (gain) on sale of assets, net | 68 |
| — |
| 68 |
| | (971 | ) | 37 |
| (1,008 | ) |
| Workforce adjustments | 65 |
| 62 |
| 3 |
| | 604 |
| 543 |
| 61 |
|
| Total operating expenses | 125,239 |
| 85,651 |
| 39,588 |
| | 134,795 |
| 92,277 |
| 42,518 |
|
| Equity in earnings of MNI and TNI | 2,689 |
| 1,136 |
| 1,553 |
| | 2,799 |
| 1,183 |
| 1,616 |
|
| Operating income | 31,439 |
| 23,596 |
| 7,843 |
| | 36,409 |
| 26,290 |
| 10,119 |
|
| Non-operating income (expense), net | (12,733 | ) | (13,576 | ) | 843 |
| | (17,754 | ) | (18,454 | ) | 700 |
|
| Income tax expense | 6,266 |
| 3,111 |
| 3,155 |
| | 7,147 |
| 3,218 |
| 3,929 |
|
| Net income | 12,440 |
| 6,909 |
| 5,531 |
| | 11,508 |
| 4,618 |
| 6,890 |
|
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 | 12,440 |
| 6,909 |
| 5,531 |
| | 11,508 |
| 4,618 |
| 6,890 |
|
| Adjusted to exclude | | | | | | | |
| Non-operating expenses, net | 12,733 |
| 13,576 |
| (843 | ) | | 17,754 |
| 18,454 |
| (700 | ) |
| Income tax expense | 6,266 |
| 3,111 |
| 3,155 |
| | 7,147 |
| 3,218 |
| 3,929 |
|
| Equity in earnings of TNI and MNI | (2,689 | ) | (1,136 | ) | (1,553 | ) | | (2,799 | ) | (1,183 | ) | (1,616 | ) |
| Depreciation and amortization | 10,380 |
| 7,410 |
| 2,970 |
| | 10,943 |
| 7,635 |
| 3,308 |
|
| Loss (gain) on sale of assets, net | 68 |
| — |
| 68 |
| | (971 | ) | 37 |
| (1,008 | ) |
| Workforce adjustments | 65 |
| 62 |
| 3 |
| | 604 |
| 543 |
| 61 |
|
| Stock compensation | 524 |
| 524 |
| — |
| | 570 |
| 570 |
| — |
|
| Add: | | | | | | | |
| Ownership share of TNI and MNI EBITDA (50%) | 3,476 |
| 1,818 |
| 1,658 |
| | 3,809 |
| 2,088 |
| 1,721 |
|
| Adjusted EBITDA | 43,263 |
| 32,274 |
| 10,989 |
| | 48,565 |
| 35,980 |
| 12,585 |
|
| | | | | | | | |
| Supplemental cash flow information | | | | | |
| Distributions from MNI and TNI | 2,233 |
| 1,250 |
| 983 |
| | 3,229 |
| 1,750 |
| 1,479 |
|
| Capital expenditures | (1,090 | ) | (926 | ) | (164 | ) | | (1,470 | ) | (1,203 | ) | (267 | ) |
| Pension contributions | — |
| — |
| — |
| | (744 | ) | — |
| (744 | ) |
| Cash income tax refunds (payments) | (370 | ) | (366 | ) | (4 | ) | | 11 |
| 11 |
| — |
|
| Interest income | 75 |
| (768 | ) | 843 |
| | 76 |
| (621 | ) | 697 |
|
| Interest to be settled in cash | (14,952 | ) | (11,051 | ) | (3,901 | ) | | (17,142 | ) | (12,885 | ) | (4,257 | ) |
| Debt financing and administrative costs | — |
| — |
| — |
| | (44 | ) | — |
| (44 | ) |
