Exhibit 99.1 - Supplemental Financial Information – Fourth fiscal quarter ended September 30, 2018.
201 N. Harrison St.
Davenport, IA 52801
www.lee.net
|
| | | | | | | | | | | | | |
| Quarter Ended (unaudited) | | | | | | | |
| | September 30, 2018 | | September 24,2017 |
| (in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | | Consolidated | Lee Legacy | Pulitzer Inc. |
| Operating revenue: | | | | | | | |
| Advertising and marketing services | 73,695 |
| 51,702 |
| 21,993 |
| | 79,544 |
| 56,242 |
| 23,302 |
|
| Subscription | 52,703 |
| 36,904 |
| 15,799 |
| | 50,616 |
| 35,870 |
| 14,746 |
|
| Other | 13,348 |
| 11,792 |
| 1,556 |
| | 10,052 |
| 8,308 |
| 1,744 |
|
| Total operating revenue | 139,746 |
| 100,398 |
| 39,348 |
| | 140,212 |
| 100,420 |
| 39,792 |
|
| Operating expenses: | | | | | | | |
| Compensation | 48,906 |
| 37,334 |
| 11,572 |
| | 50,645 |
| 38,705 |
| 11,940 |
|
| Newsprint and ink | 7,028 |
| 4,836 |
| 2,192 |
| | 5,688 |
| 3,859 |
| 1,829 |
|
| Other operating expenses | 50,824 |
| 30,148 |
| 20,676 |
| | 49,647 |
| 30,097 |
| 19,550 |
|
| Depreciation and amortization | 7,794 |
| 5,082 |
| 2,712 |
| | 10,288 |
| 7,450 |
| 2,838 |
|
| Assets loss (gain) on sales, impairments, and other | 7,626 |
| 695 |
| 6,931 |
| | 2,628 |
| 881 |
| 1,747 |
|
| Restructuring costs and other | 1,400 |
| 1,021 |
| 379 |
| | 1,150 |
| 1,006 |
| 144 |
|
| Total operating expenses | 123,578 |
| 79,116 |
| 44,462 |
| | 120,046 |
| 81,998 |
| 38,048 |
|
| Equity in earnings of associated companies | 3,679 |
| 2,605 |
| 1,074 |
| | 1,575 |
| 708 |
| 867 |
|
| Operating income | 19,847 |
| 23,887 |
| (4,040 | ) | | 21,741 |
| 19,130 |
| 2,611 |
|
| Non-operating income (expense), net | (14,848 | ) | (17,558 | ) | 2,710 |
| | (15,882 | ) | (17,415 | ) | 1,533 |
|
| Income tax expense (benefit) | 561 |
| 1,044 |
| (483 | ) | | 2,358 |
| 853 |
| 1,505 |
|
| Net income | 4,438 |
| 5,285 |
| (847 | ) | | 3,501 |
| 862 |
| 2,639 |
|
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 | 4,438 |
| 5,285 |
| (847 | ) | | 3,501 |
| 862 |
| 2,639 |
|
| Adjusted to exclude | | | | | | | |
| Non-operating expenses (income), net | 14,848 |
| 17,558 |
| (2,710 | ) | | 15,882 |
| 17,415 |
| (1,533 | ) |
| Income tax expense (benefit) | 561 |
| 1,044 |
| (483 | ) | | 2,358 |
| 853 |
| 1,505 |
|
| Equity in earnings of TNI and MNI | (3,679 | ) | (2,605 | ) | (1,074 | ) | | (1,575 | ) | (708 | ) | (867 | ) |
| Depreciation and amortization | 7,794 |
| 5,082 |
| 2,712 |
| | 10,288 |
| 7,450 |
| 2,838 |
|
| Assets loss (gain) on sales, impairments, and other | 7,626 |
| 695 |
| 6,931 |
| | 2,628 |
| 881 |
| 1,747 |
|
| Restructuring costs and other | 1,400 |
| 1,021 |
| 379 |
| | 1,150 |
| 1,006 |
| 144 |
|
| Stock compensation | 417 |
| 417 |
| — |
| | 524 |
| 524 |
| — |
|
| Add: | | | | | | | |
| Ownership share of TNI and MNI EBITDA (50%) | 2,449 |
| 1,270 |
| 1,179 |
| | 1,985 |
| 1,013 |
| 972 |
|
| Adjusted EBITDA | 35,854 |
| 29,767 |
| 6,087 |
| | 36,741 |
| 29,296 |
| 7,445 |
|
| | | | | | | | |
| Supplemental cash flow information | | | | | |
| Distributions from MNI and TNI | 2,339 |
| 900 |
| 1,439 |
| | 1,762 |
| 750 |
| 1,012 |
|
| Capital expenditures | (1,744 | ) | (1,529 | ) | (215 | ) | | (850 | ) | (802 | ) | (48 | ) |
| Pension contributions | (4,210 | ) | — |
| (4,210 | ) | | (106 | ) | (106 | ) | — |
|
| Cash income tax payments | (35 | ) | (30 | ) | (5 | ) | | (134 | ) | (164 | ) | 30 |
|
| Interest income | 154 |
| (2,556 | ) | 2,710 |
| | 111 |
| (1,422 | ) | 1,533 |
|
| Interest to be settled in cash | (13,004 | ) | (10,046 | ) | (2,958 | ) | | (13,654 | ) | (9,969 | ) | (3,685 | ) |
| Debt financing and administrative costs | (4 | ) | (4 | ) | — |
| | (2 | ) | (2 | ) | — |
|
|
| | | | | | | | | | | | | |
| Year Ended (unaudited) | | | | | | | |
| | September 30, 2018 | | September 24,2017 |
| (in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | | Consolidated | Lee Legacy | Pulitzer Inc. |
| Operating revenue: | | | | | | | |
| Advertising and marketing services | 303,446 |
| 212,265 |
| 91,181 |
| | 331,360 |
| 231,342 |
| 100,018 |
|
| Subscription | 195,108 |
| 135,309 |
| 59,799 |
| | 191,922 |
| 133,993 |
| 57,929 |
|
| Other | 45,401 |
| 38,543 |
| 6,858 |
| | 43,661 |
| 36,136 |
| 7,525 |
|
| Total operating revenue | 543,955 |
| 386,117 |
| 157,838 |
| | 566,943 |
| 401,471 |
| 165,472 |
|
| Operating expenses: | | | | | | | |
| Compensation | 196,334 |
| 149,924 |
| 46,410 |
| | 209,692 |
| 160,598 |
| 49,094 |
|
| Newsprint and ink | 24,949 |
| 17,591 |
| 7,358 |
| | 24,904 |
| 17,274 |
| 7,630 |
|
| Other operating expenses | 199,653 |
| 119,673 |
| 79,980 |
| | 199,754 |
| 118,792 |
| 80,962 |
|
| Depreciation and amortization | 31,766 |
| 20,676 |
| 11,090 |
| | 41,282 |
| 29,643 |
| 11,639 |
|
| Assets loss (gain) on sales, impairments, and other | 6,429 |
| (475 | ) | 6,904 |
| | (1,150 | ) | (2,838 | ) | 1,688 |
|
| Restructuring costs and other | 5,550 |
| 4,587 |
| 963 |
| | 7,523 |
| 6,293 |
| 1,230 |
|
| Total operating expenses | 464,681 |
| 311,976 |
| 152,705 |
| | 482,005 |
| 329,762 |
| 152,243 |
|
| Equity in earnings of associated companies | 9,249 |
| 4,629 |
| 4,620 |
| | 7,609 |
| 2,954 |
| 4,655 |
|
| Operating income | 88,523 |
| 78,770 |
| 9,753 |
| | 92,547 |
| 74,663 |
| 17,884 |
|
| Non-operating income (expense), net | (57,703 | ) | (67,071 | ) | 9,368 |
| | (52,331 | ) | (57,049 | ) | 4,718 |
|
| Income tax expense (benefit) | (16,228 | ) | (23,173 | ) | 6,945 |
| | 11,611 |
| 3,402 |
| 8,209 |
|
| Net income | 47,048 |
| 34,872 |
| 12,176 |
| | 28,605 |
| 14,212 |
| 14,393 |
|
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 | 47,048 |
| 34,872 |
| 12,176 |
| | 28,605 |
| 14,212 |
| 14,393 |
|
| Adjusted to exclude | | | | | | | |
| Non-operating expenses (income), net | 57,703 |
| 67,071 |
| (9,368 | ) | | 52,331 |
| 57,049 |
| (4,718 | ) |
| Income tax expense (benefit) | (16,228 | ) | (23,173 | ) | 6,945 |
| | 11,611 |
| 3,402 |
| 8,209 |
|
| Equity in earnings of TNI and MNI | (9,249 | ) | (4,629 | ) | (4,620 | ) | | (7,609 | ) | (2,954 | ) | (4,655 | ) |
| Depreciation and amortization | 31,766 |
| 20,676 |
| 11,090 |
| | 41,282 |
| 29,643 |
| 11,639 |
|
| Assets loss (gain) on sales, impairments, and other | 6,429 |
| (475 | ) | 6,904 |
| | (1,150 | ) | (2,838 | ) | 1,688 |
|
| Restructuring costs and other | 5,550 |
| 4,587 |
| 963 |
| | 7,523 |
| 6,293 |
| 1,230 |
|
| Stock compensation | 1,857 |
| 1,857 |
| — |
| | 2,088 |
| 2,088 |
| — |
|
| Add: | | | | | | | |
| Ownership share of TNI and MNI EBITDA (50%) | 9,883 |
| 4,845 |
| 5,038 |
| | 9,927 |
| 4,854 |
| 5,073 |
|
| Adjusted EBITDA | 134,759 |
| 105,631 |
| 29,128 |
| | 144,608 |
| 111,749 |
| 32,859 |
|
| | | | | | | | |
| Supplemental cash flow information: | | | | | |
| Distributions from MNI and TNI | 9,214 |
| 3,400 |
| 5,814 |
| | 8,144 |
| 3,500 |
| 4,644 |
|
| Capital expenditures | (6,025 | ) | (4,660 | ) | (1,365 | ) | | (4,078 | ) | (3,711 | ) | (367 | ) |
| Pension contributions | (4,990 | ) | (40 | ) | (4,950 | ) | | (106 | ) | (106 | ) | — |
|
| Cash income tax payments | (464 | ) | (396 | ) | (68 | ) | | (1,214 | ) | (1,215 | ) | 1 |
|
| Interest income | 489 |
| (8,879 | ) | 9,368 |
| | 372 |
| (4,346 | ) | 4,718 |
|
| Interest to be settled in cash | (52,842 | ) | (39,988 | ) | (12,854 | ) | | (57,573 | ) | (42,268 | ) | (15,305 | ) |
| Debt financing and administrative costs | (437 | ) | (437 | ) | — |
| | (373 | ) | (373 | ) | — |
|
