TPCO - Earnings call transcript Q4 2019

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Tribune Publishing Fourth Quarter and Full-Year Earnings Conference call. At this time, all participant lines are in a listen-only mode. After the speaker presentation there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. Instructions] [Operator

like Vice conference go President now today, your ahead, hand Bullis, Amy of to would to the speaker ma'am. I Finance. Please

Amy Bullis

full-year and earnings you, welcome our quarter Thank to conference and call. fourth XXXX

Material other I differences begin, and intend, forward-looking as our forward-looking as may, our may words make actual taken similar the management during from could plan, expressions described differ estimate, we or remind result from materially. you would actions uncertainties Before statements statements. call, this such expects, will, that of those forward-looking continue, outlook believe, Company's control. results in are the risks well course results the as Company anticipates, actual will in statements beyond by to and these the containing like Statements in

could annual risks Some included Commission, documents publicly of these and on with uncertainties report including Form in and Exchange our are Securities the filed our businesses impact that XX-K.

that will our earnings And per press total provided EBITDA our net reconciliations release, have diluted operating our adjusted I adjusted most and should and available GAAP the net income, comparable margin remarks is to expenses, EBITDA, definitions to also investor.tribpub.com. include non-GAAP share, in measures, adjusted on today we mention adjusted including financial measures debt. references which adjusted earnings website at

Terry Interim Chief and Executive Financial Jimenez; today Lavey. me Officer, and Mike President Joining Chief is Officer,

and to Executive over I Terry turn President Chief call will the now Officer, Jimenez.

Terry Jimenez

interest Amy. Tribune you joining Publishing. you, for today's call Thank afternoon, in and your everyone, Good thank and

before dive higher back a of the to to want fiscal we the in share some a deep, year you level step We XXXX we are I But moment. turned want our throughout talk pleased highlights year. from and for and with with how take out,

to with humbled energetic mission-driven passionate, and working of I employees. be and all our honored am First,

change through confident a react and challenges can proactively and seen and positive I'm and lot drive we over to the change. Our years, employees of not have worked change just

has four you new near CFO my vision having review mission the team and Allow and transition a now. developed our weeks leadership strategies as success. our with long-term In shared to from me driving key well these first of outlined to CEO, as

to is communities inspire our every vision day. and Our empower engage,

elements: connect agility is based by information and deliver navigate the first, is free innovative press a on we mission hold Our lives; four a that preserving and advertisers of integrity, major powerful watchdog through and through secondly, the our as trusted accountable fourth democracy; we relevant we their leaders executing journalism, engaged the with urgency. fundamental value build we solutions; bedrock audiences third, with that helps

be and growth the our and that should greater pillars. our business, our bottom vision legacy in mission a four investors provides of versus are margin print aligning the business a headwinds revenue spite the through expenses of on and digital strategic line on The people, The pillars and mix output streams. with and provides strategic to product, industry-wide expansion are our business of legacy significant stability the strategic audience mission vision, Underpinning pillars business profit. that revenue

of over business and of valuation the the long-term. print, we a a digital upswing mix in see With focused execution should greater our versus significant legacy

for financial and having no able to financial We a to flexibility, stand principal to peers and we're apart also interest from to continue shareholders. institutions, our balance rather banks provide and and to dividends in operational cash provide debt paying our and than

A to our of strategic highlights pillars. touch each upon few under

advertiser behaviors. what it be changes and better but engagement, the and focusing on and are it the we through anticipate more will be, used less as development organization of can and front, focusing and employee people importantly evolution the communication, we Culturally, diversity what navigate inclusion. On learning are in on we consumer to

credible We each our important make communities. in a still and very of impact

from work example, we Gazette award own The on collaborative Writers Chicago Press won News the and Gazette the of Betrayed awarded Association Society Invading Professional For Sentinel schools. abuse won Sun sexual Journalists Education Club Baltimore National the Sun Capital Tribune shooting. prize recognized for The the recognition Breaking Chicago for our the covering The national coverage series from the Sea. public from Capital their of first The the in is following. for for were their courageous

subscriber Under the retention our strategic and obsessing audience products, will initiatives drive revenue. believe and user pillar We the are over experiences. engagement as of we optimizing improved as well

will our the continue user invest content have we products now to platform. updates experience. all We future. management businesses We in of launching improve our one Also, drive are have will digital to and continually that been on

the as on focus well at Under the print readers from previously we digital product growing the north aggressive thousand. insights target At gleaning pillar, our continue products subscriber with our we subscriber engage still our how Using platforms by to better This print our as XXX,XXX – mentioned XXX,XXX. effectively providing the of and to our offer audience our our fiscal our user of base end XXXX, enhancements infrastructure, several on of base. we digital with analytics compelling exceeded digital-only was as data editions. our while base more as well are interact understanding are digital for a helping our products, the

streams This and clear most we are revenue last is profitability. the each for potential revenue strategic our our have optimizing on pillar focus important is we to pillar where ensure of businesses. a The

headwinds. were growth in to the For manage XXXX, we continuing adjusted and from income operations revenue despite able EBITDA

are guidance for on As EBITDA. to up you essentially holding will our XXXX, adjusted flat slightly we see in

facing of in drop-off volume declines, enter other headwinds the end revenues of in our in revenue continuation the on second including represent our printing and agreement we expires recognized that in is from commercial quarter year-over-year, our a the advertising will advertising industry revenue distribution the our print Specifically, which drop M top print circulation of quarter. at Tribune is This industry well-documented several Cars.com a as starting streams. hitting and headwinds our significant of digital the both which segment, Publishing continuation of first we XXXX, and XXXX, declines

We to our actions as to outlined believe of forecast with changing as success I've the combat find revenue our that media over decision-making. support successfully several the the have well pillars taken initiatives weeks rightsize will our us and We past number streamlined expense in the and a challenges enable landscape. them base

our initiatives on vision laser-focused are framework delivering empowering executing engaging, We communities of and every on our strategic and inspiring our within day.

to which stability transform will of over to with And the Overall, our line I bottom then digital we course will do to am in I us hard-working XXXX, the there's the a valuation. company provide business, of still our be potentially level we metrics. aim of transform a Over look employees watching pleased throughout all the has help lot done. made with look forward I a made to progress work of the in XXXX, platform to changes and succeed. to our XXXX, recognize but working long-term,

to over that, turn some financial the to on call With speak Mike of our specifics like to I performance. the to would

Michael Lavey

off. have aggressively in X% Thank income to you, solid Terry adjusted Terry. last growth headwinds, and were we XXX point costs The improvement In over to year operations, spite basis continuing we manage EBITDA of the in the able in taken margin. EBITDA adjusted actions increase an XXXX, are mentioned, from paying revenue deliver in

XXXX for and lead-in, for the the to highlights full-year our With I'll speak quarter. that fourth financial

no there the necessary XXXX comparisons a previous all quarters. fourth As we quarter, acquisitions in business cycled reminder, are same in as

million by full-year $XXX.X For declined driven XX.X% the or million, from X% full-year decline offset XXXX, the digital-only $XX.X revenue totaled business basis, On in for in X.X% partially decline subscriptions. XXXX. a revenue a advertising a a increase same by XX.X%

For strong $XX.X% with expense $XXX.X million declined management the metrics year, reflecting X.X%. expenses business On expenses a throughout the declined basis, million, $XXX.X both or a decline same year.

income in a a for from million continuing result, totaled XXXX from million a million, improvement. compared $X.X XXXX As year-over-year operations of loss continuing $XX operations to $XX.X

EBITDA was million million, $XXX.X increase Adjusted the full-year over XXXX. a for $X.X

EBITDA loss $X.XX the per in operations a XXX point X.X% to was from improvement. by adjusted $X.XX basis XXXX loss to compared margin share XXXX in improved Our XXXX. a Loss mentioned, share for XXXX for year continuing from $X.XX as in XX.X%

of in of Full-year beginning agreement. EPS adjustment amendment features value agreement will XXXX to to LLC due This by a the the and interest the eliminate that negatively of impacted XXXX BestReviews, share impact to in January by quarter end the non-controlling adjustment. first call of was carrying $X.XX put

to Turning fourth of properties the transition year-over-year decline the basis. the revenue the on declined a a near the year-over-year in the XXXX. on X.X% provided core at under associated service Accordingly, with to Revenue is X.X% quarter. or in as agreement, XX% end basis. that agreement services $X.X are transition XX% of year the reduction declines, prior California exclude million which we in

Regarding operating expenses.

in million last versus the in face expenses expenses focus of headwinds, fourth the to total XXXX quarter $XX.X year. industry-wide continue on XX.X% operating quarter same down with We managing of revenue or the

from we by quarter, operations income million last a reported year. to million operations income compared to driven $X $X.X the decline from from primarily in $X.X increase was million. of prior the For The year operations tax loss compared net of in continuing

Loss $X.XX EPS $X.XX value in continuing income operations by non-controlling in negatively also from share carrying fourth impact per XXXX a for share of EPS share from was the affected for XXXX. continuing operations the calculation. the a was quarter to interest compared

we period. compared the totaled large another reported to year item fourth discontinued EBITDA in XXXX, million, Adjusted for In operations. the $XX.X quarter of the $XX.X quarter million in prior

post-trial date period motions, disclosed the this the former from in August in in reserve the been vacated, Los a brought – As third to reserve in Angeles by a the related judgment matter set for a employee recorded A owned of revenue we, therefore, lawsuit business. was quarter, quarter. a trial a judgment new our Times on the we when Based down XXXX. fourth has adjusted we

flow. million of generation the strong, million million with restricted. provided quarter which cash balance year for to for the We million million cash, $X.X million $XX quarter CapEx year. full-year. $XX.X the and of was $XX.X with million the cash Cash $XX.X exited $XX.X of and by operations in sheet Turning and for the and $XX.X unrestricted totaled is the remains

in of March. dividend another generation been a December, our $X.XX out and cash of which position, result paid quarter in was in Board declared be has dividend the fourth and the quarter, will $X.XX a per first regular declared in and strong As the paid cash share,

for results quarter to Let's segments. fourth our turn now

driven in Through to advertising For XX.X% of slightly quarter total the compared revenue revenue XX%. approximately last QX declined advertising, of season M the total by nearly revenue which our XX% holiday XX% print fourth fourth in of advertising, total quarter year. the segment, increased print declined to

in operations every segment M million declined relying the segment. However, and XX%, print print we in print advertising resulted income from less, increase quarter expenses continuing a exceeded this on circulation in which Operating the $X.X less advertising and are in year.

revenue the Turning to XX.X% Total fourth or this grew million last XX.X% year. year quarter and revenue the which up volume versus subscription the at X due X.X% segment. in quarter BestReviews. in and up was quarter growth in to growth, year-over-year and e-commerce digital Content revenue solid same $X.X in was XX.X% the

growth in a this from decreased last slight offsetting was decline Partially advertising year. digital X.X%

However, XX.X% substantial advertising. QX compared in showed is lower in year, year. to last digital from of directly revenue down from improvement increase was resulted sequential the X.X% we which would advertising decline which exclusion this of have attributable advertising Cars.com, to a The

As Terry ends of agreement in XXXX. QX mentioned Cars.com the

comprises our for a X.X% of the to a for expenses increased from Operating newsroom shift M now costs X in due allocations as segment larger revenue. percentage the digital segment

As revenue by a increased XX%. X digital e-commerce by expenses, in content only lower result revenue, the million from offset advertising segment year-over-year operations income $X.X or strong partially of increased and

range million EBITDA $XXX range And guidance, million. $XXX to million to $XXX million and quarter million. to XXXX, respect $XX XXXX first company to With of for $XX $XXX EBITDA will of revenue to adjusted to be the million the range adjusted expects the from in from

we closing, of program first changes number streamline as we management our In continue manage company. a In severance a to digitally aggressively and to quarter implemented continue operations. to to cost made the voluntary a of focused transform we XXXX,

in investments operating strong across deliver in digital future. as continue strategic manage product to our offerings of transformation currently, and And we the we our our key And making we company. are digital the metrics all performance

questions. for call the up open we'll now And

Operator

[Operator Instructions]

Operator

And questions any this I not at time. am showing

Terry Jimenez

thank Well, your very Terrific. for you and us for thank afternoon, this interest. joining much you

Operator

concludes call. this conference Thank for gentlemen, and participating. you Ladies today's

may disconnect. You now

Tribune Publishing (TPCO) 4 Mar 202019 Q4 Earnings call transcript