Exhibit 99.2 - Supplemental Financial Information – Fourth fiscal quarter ended December 24, 2017.
201 N. Harrison St.
Davenport, IA 52801
www.lee.net
|
| | | | | | | | | | | | | |
| 13 Weeks Ended (unaudited) | | | | | | | |
| | December 24, 2017 | | December 25, 2016 |
| (in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | | Consolidated | Lee Legacy | Pulitzer Inc. |
| Operating revenue: | | | | | | | |
| Advertising and marketing services | 84,661 |
| 59,077 |
| 25,584 |
| | 93,035 |
| 64,105 |
| 28,930 |
|
| Subscription | 48,269 |
| 32,913 |
| 15,356 |
| | 48,888 |
| 34,018 |
| 14,870 |
|
| Other | 10,856 |
| 9,014 |
| 1,842 |
| | 12,066 |
| 9,988 |
| 2,078 |
|
| Total operating revenue | 143,786 |
| 101,004 |
| 42,782 |
| | 153,989 |
| 108,111 |
| 45,878 |
|
| Operating expenses: | | | | | | | |
| Compensation | 50,911 |
| 39,008 |
| 11,903 |
| | 55,056 |
| 42,053 |
| 13,003 |
|
| Newsprint and ink | 5,838 |
| 4,111 |
| 1,727 |
| | 6,893 |
| 4,902 |
| 1,991 |
|
| Other cash costs | 50,357 |
| 30,166 |
| 20,191 |
| | 52,777 |
| 31,224 |
| 21,553 |
|
| Depreciation and amortization | 8,053 |
| 5,236 |
| 2,817 |
| | 10,380 |
| 7,410 |
| 2,970 |
|
| Loss on sale of assets, net | 2 |
| 1 |
| 1 |
| | 68 |
| — |
| 68 |
|
| Workforce adjustments and other | 468 |
| 322 |
| 146 |
| | 65 |
| 62 |
| 3 |
|
| Total operating expenses | 115,629 |
| 78,844 |
| 36,785 |
| | 125,239 |
| 85,651 |
| 39,588 |
|
| Equity in earnings of MNI and TNI | 2,383 |
| 864 |
| 1,519 |
| | 2,689 |
| 1,136 |
| 1,553 |
|
| Operating income | 30,540 |
| 23,024 |
| 7,516 |
| | 31,439 |
| 23,596 |
| 7,843 |
|
| Non-operating income (expense), net | (14,903 | ) | (16,948 | ) | 2,045 |
| | (12,733 | ) | (13,576 | ) | 843 |
|
| Income tax expense | (19,690 | ) | (23,163 | ) | 3,473 |
| | 6,266 |
| 3,111 |
| 3,155 |
|
| Net income | 35,327 |
| 29,239 |
| 6,088 |
| | 12,440 |
| 6,909 |
| 5,531 |
|
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 | 35,327 |
| 29,239 |
| 6,088 |
| | 12,440 |
| 6,909 |
| 5,531 |
|
| Adjusted to exclude | | | | | | | |
| Non-operating expenses, net | 14,903 |
| 16,948 |
| (2,045 | ) | | 12,733 |
| 13,576 |
| (843 | ) |
| Income tax expense | (19,690 | ) | (23,163 | ) | 3,473 |
| | 6,266 |
| 3,111 |
| 3,155 |
|
| Equity in earnings of TNI and MNI | (2,383 | ) | (864 | ) | (1,519 | ) | | (2,689 | ) | (1,136 | ) | (1,553 | ) |
| Depreciation and amortization | 8,053 |
| 5,236 |
| 2,817 |
| | 10,380 |
| 7,410 |
| 2,970 |
|
| Loss (gain) on sale of assets, net | 2 |
| 1 |
| 1 |
| | 68 |
| — |
| 68 |
|
| Workforce adjustments and other | 468 |
| 322 |
| 146 |
| | 65 |
| 62 |
| 3 |
|
| Stock compensation | 519 |
| 519 |
| — |
| | 524 |
| 524 |
| — |
|
| Add: | | | | | | | |
| Ownership share of TNI and MNI EBITDA (50%) | 3,159 |
| 1,535 |
| 1,624 |
| | 3,476 |
| 1,818 |
| 1,658 |
|
| Adjusted EBITDA | 40,358 |
| 29,773 |
| 10,585 |
| | 43,263 |
| 32,274 |
| 10,989 |
|
| | | | | | | | |
| Supplemental cash flow information | | | | | |
| Distributions from MNI and TNI | 2,317 |
| 750 |
| 1,567 |
| | 2,233 |
| 1,250 |
| 983 |
|
| Capital expenditures | (1,103 | ) | (890 | ) | (213 | ) | | (1,090 | ) | (926 | ) | (164 | ) |
| Cash income tax refunds (payments) | (110 | ) | (65 | ) | (45 | ) | | (370 | ) | (366 | ) | (4 | ) |
| Interest income | 96 |
| (1,770 | ) | 1,866 |
| | 75 |
| (768 | ) | 843 |
|
| Interest to be settled in cash | (13,650 | ) | (10,165 | ) | (3,485 | ) | | (14,952 | ) | (11,051 | ) | (3,901 | ) |
| Debt financing and administrative costs | (4 | ) | (4 | ) | — |
| | — |
| — |
| — |
|
