Exhibit 99.1 - Supplemental Financial Information – Third fiscal quarter ended June 25, 2017.
201 N. Harrison St.
Davenport, IA 52801
www.lee.net
|
| | | | | | | | | | | | | |
| 13 Weeks Ended (unaudited) | | | | | | | |
| | June 25, 2017 | | June 26, 2016 |
| (in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | | Consolidated | Lee Legacy | Pulitzer Inc. |
| Operating revenue: | | | | | | | |
| Advertising and marketing services | 81,247 |
| 56,393 |
| 24,854 |
| | 92,294 |
| 63,858 |
| 28,436 |
|
| Subscription | 47,410 |
| 32,757 |
| 14,653 |
| | 47,160 |
| 32,330 |
| 14,830 |
|
| Other | 10,698 |
| 8,859 |
| 1,839 |
| | 11,492 |
| 9,553 |
| 1,939 |
|
| Total operating revenue | 139,355 |
| 98,009 |
| 41,346 |
| | 150,946 |
| 105,741 |
| 45,205 |
|
| Operating expenses: | | | | | | | |
| Compensation | 51,577 |
| 39,702 |
| 11,875 |
| | 57,218 |
| 43,246 |
| 13,972 |
|
| Newsprint and ink | 6,123 |
| 4,234 |
| 1,889 |
| | 6,604 |
| 4,234 |
| 2,370 |
|
| Other cash costs | 48,571 |
| 29,236 |
| 19,335 |
| | 53,356 |
| 30,454 |
| 22,902 |
|
| Depreciation and amortization | 10,296 |
| 7,392 |
| 2,904 |
| | 10,868 |
| 7,707 |
| 3,161 |
|
| Loss (gain) on sale of assets, net | (61 | ) | (3 | ) | (58 | ) | | (354 | ) | 18 |
| (372 | ) |
| Workforce adjustments and other | 3,902 |
| 3,664 |
| 238 |
| | 424 |
| 396 |
| 28 |
|
| Total operating expenses | 120,408 |
| 84,225 |
| 36,183 |
| | 128,116 |
| 86,055 |
| 42,061 |
|
| Equity in earnings of MNI and TNI | 1,616 |
| 645 |
| 971 |
| | 1,825 |
| 850 |
| 975 |
|
| Operating income | 20,563 |
| 14,429 |
| 6,134 |
| | 24,655 |
| 20,536 |
| 4,119 |
|
| Non-operating income (expense), net | (12,433 | ) | (13,908 | ) | 1,475 |
| | (17,251 | ) | (18,055 | ) | 804 |
|
| Income tax expense | 1,843 |
| (921 | ) | 2,764 |
| | 3,037 |
| 1,249 |
| 1,788 |
|
| Net income | 6,287 |
| 1,442 |
| 4,845 |
| | 4,367 |
| 1,232 |
| 3,135 |
|
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 | 6,287 |
| 1,442 |
| 4,845 |
| | 4,367 |
| 1,232 |
| 3,135 |
|
| Adjusted to exclude | | | | | | | |
| Non-operating expenses, net | 12,433 |
| 13,908 |
| (1,475 | ) | | 17,251 |
| 18,055 |
| (804 | ) |
| Income tax expense | 1,843 |
| (921 | ) | 2,764 |
| | 3,037 |
| 1,249 |
| 1,788 |
|
| Equity in earnings of TNI and MNI | (1,616 | ) | (645 | ) | (971 | ) | | (1,825 | ) | (850 | ) | (975 | ) |
| Depreciation and amortization | 10,296 |
| 7,392 |
| 2,904 |
| | 10,868 |
| 7,707 |
| 3,161 |
|
| Loss (gain) on sale of assets, net | (61 | ) | (3 | ) | (58 | ) | | (354 | ) | 18 |
| (372 | ) |
| Workforce adjustments and other | 3,902 |
| 3,664 |
| 238 |
| | 424 |
| 396 |
| 28 |
|
| Stock compensation | 481 |
| 481 |
| — |
| | 550 |
| 550 |
| — |
|
| Add: | | | | | | | |
| Ownership share of TNI and MNI EBITDA (50%) | 2,246 |
| 1,170 |
| 1,076 |
| | 2,625 |
| 1,545 |
| 1,080 |
|
| Adjusted EBITDA | 35,811 |
| 26,488 |
| 9,323 |
| | 36,943 |
| 29,902 |
| 7,041 |
|
| | | | | | | | |
| Supplemental cash flow information | | | | | |
| Distributions from MNI and TNI | 1,713 |
| 500 |
| 1,213 |
| | 3,251 |
| 1,750 |
| 1,501 |
|
| Capital expenditures | (1,153 | ) | (1,033 | ) | (120 | ) | | (2,521 | ) | (2,267 | ) | (254 | ) |
| Pension contributions | — |
| — |
| — |
| | (826 | ) | — |
| (826 | ) |
| Cash income tax refunds (payments) | (441 | ) | (441 | ) | — |
| | (4 | ) | (4 | ) | — |
|
| Interest income | 77 |
| 77 |
| — |
| | 141 |
| 141 |
| — |
|
| Interest to be settled in cash | (14,330 | ) | (10,565 | ) | (3,765 | ) | | (15,783 | ) | (11,724 | ) | (4,059 | ) |
| Debt financing and administrative costs | (371 | ) | (371 | ) | — |
| | (376 | ) | (376 | ) | — |
|
|
| | | | | | | | | | | | | |
| 39 Weeks Ended (unaudited) | | | | | | | |
| | June 25, 2017 | | June 26, 2016 |
| (in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | | Consolidated | Lee Legacy | Pulitzer Inc. |
| Operating revenue: | | | | | | | |
| Advertising and marketing services | 251,815 |
| 175,099 |
| 76,716 |
| | 286,662 |
| 198,543 |
| 88,119 |
|
| Subscription | 141,306 |
| 98,123 |
| 43,183 |
| | 144,249 |
| 99,169 |
| 45,080 |
|
| Other | 33,610 |
| 27,829 |
| 5,781 |
| | 35,275 |
| 29,683 |
| 5,592 |
|
| Total operating revenue | 426,731 |
| 301,051 |
| 125,680 |
| | 466,186 |
| 327,395 |
| 138,791 |
|
| Operating expenses: | | | | | | | |
| Compensation | 159,047 |
| 121,893 |
| 37,154 |
| | 174,733 |
| 132,848 |
| 41,885 |
|
| Newsprint and ink | 19,216 |
| 13,415 |
| 5,801 |
| | 19,343 |
| 13,941 |
| 5,402 |
|
| Other cash costs | 150,109 |
| 88,697 |
| 61,412 |
| | 166,332 |
| 95,491 |
| 70,841 |
|
| Depreciation and amortization | 30,993 |
| 22,192 |
| 8,801 |
| | 32,752 |
| 23,015 |
| 9,737 |
|
| Loss (gain) on sale of assets and other, net | (3,777 | ) | (3,718 | ) | (59 | ) | | (1,763 | ) | 151 |
| (1,914 | ) |
| Workforce adjustments and other | 6,372 |
| 5,286 |
| 1,086 |
| | 1,616 |
| 1,510 |
| 106 |
|
| Total operating expenses | 361,960 |
| 247,765 |
| 114,195 |
| | 393,013 |
| 266,956 |
| 126,057 |
|
| Equity in earnings of MNI and TNI | 6,034 |
| 2,246 |
| 3,788 |
| | 6,633 |
| 2,678 |
| 3,955 |
|
| Operating income | 70,805 |
| 55,532 |
| 15,273 |
| | 79,806 |
| 63,117 |
| 16,689 |
|
| Non-operating income (expense), net | (36,447 | ) | (39,632 | ) | 3,185 |
| | (21,877 | ) | (24,153 | ) | 2,276 |
|
| Income tax expense | 9,253 |
| 2,549 |
| 6,704 |
| | 22,571 |
| 15,683 |
| 6,888 |
|
| Net income | 25,105 |
| 13,351 |
| 11,754 |
| | 35,358 |
| 23,281 |
| 12,077 |
|
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 | 25,105 |
| 13,351 |
| 11,754 |
| | 35,358 |
| 23,281 |
| 12,077 |
|
| Adjusted to exclude | | | | | | | |
| Non-operating expenses, net | 36,447 |
| 39,632 |
| (3,185 | ) | | 21,877 |
| 24,153 |
| (2,276 | ) |
| Income tax expense | 9,253 |
| 2,549 |
| 6,704 |
| | 22,571 |
| 15,683 |
| 6,888 |
|
| Equity in earnings of TNI and MNI | (6,034 | ) | (2,246 | ) | (3,788 | ) | | (6,633 | ) | (2,678 | ) | (3,955 | ) |
| Depreciation and amortization | 30,993 |
| 22,192 |
| 8,801 |
| | 32,752 |
| 23,015 |
| 9,737 |
|
| Loss (gain) on sale of assets and other, net | (3,777 | ) | (3,718 | ) | (59 | ) | | (1,763 | ) | 151 |
| (1,914 | ) |
| Workforce adjustments and other | 6,372 |
| 5,286 |
| 1,086 |
| | 1,616 |
| 1,510 |
| 106 |
|
| Stock compensation | 1,564 |
| 1,564 |
| — |
| | 1,714 |
| 1,714 |
| — |
|
| Add: | | | | | | | |
| Ownership share of TNI and MNI EBITDA (50%) | 7,943 |
| 4,917 |
| 3,026 |
| | 9,145 |
| 4,875 |
| 4,270 |
|
| Adjusted EBITDA | 107,866 |
| 83,527 |
| 24,339 |
| | 116,637 |
| 91,704 |
| 24,933 |
|
| | | | | | | | |
| Supplemental cash flow information: | | | | | |
| Distributions from MNI and TNI | 6,384 |
| 2,750 |
| 3,634 |
| | 10,980 |
| 5,750 |
| 5,230 |
|
| Capital expenditures | (3,232 | ) | (2,912 | ) | (320 | ) | | (5,792 | ) | (5,113 | ) | (679 | ) |
| Pension contributions | — |
| — |
| — |
| | (2,314 | ) | — |
| (2,314 | ) |
| Cash income tax refunds (payments) | (1,080 | ) | (1,076 | ) | (4 | ) | | (275 | ) | (275 | ) | — |
|
| Interest income | 261 |
| 261 |
| — |
| | 326 |
| 326 |
| — |
|
| Interest to be settled in cash | (43,919 | ) | (32,362 | ) | (11,557 | ) | | (49,206 | ) | (36,759 | ) | (12,447 | ) |
| Debt financing and administrative costs | (371 | ) | (371 | ) | — |
| | (420 | ) | (376 | ) | (44 | ) |
