MDP - Earnings call transcript Q4 2019 | Hawkeye Acquisition, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Meredith Fiscal 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]. you. Thank

you conference. Lovell, begin may Mike your Mr.

Mike Lovell

Thank us. morning, and for joining thanks everyone you. Good

will with Media call Ceryanec. Tom McCreery; Our begin Chief Harty; Executive and and followed officer, Chief by Officer, Local Financial Group Patrick comments President, Joe from President

this statements actual differ include results forward-looking our forecasts. will morning may Remarks and from

some release issued earlier this of are at described was Some SEC the end and that in of the reasons of our filings. our news morning,

are items. that expressed have are measures Certain these release, we're available the earnings basis exclude this call which non-GAAP our a discussing and meredith.com. in on financial Investor been the on non-GAAP impact Reconciliations measures to section adjusted Relations in our is of included special of of

call our of available be afternoon. this archive Web later an on Finally, the site will

to turn I'll call Now, the Harty. Tom over

Tom Harty

our morning, laser industry. Thank I Fiscal our release you integrating and issued everyone. earlier Media to been from best we owning Time assets National hope what Inc. acquired the on you’ve marked full brands and much, portfolio morning. see Mike, is the opportunity and the operating believe new first of have very in this we the focused year of good had XXXX

we Time digit included of quarter along business growth comparable Our performance fourth including note, at in of improved XXXX. advertising low-single Media in fiscal the the comparable revenue growth advertising in titles. that every delivered National generated in the on revenues our our Group particular with legacy many Of advertising elements growth key acquisition plan, double-digit Inc. quarter print digital of

in when acquired advertising revenues them. at declining the plus XX% range reminder, we As these titles a were

business significant progress. team and have made Our our

we Media business the with path significant have realized the acquisition. political million Our year straight clear of delivered an have a and of first strides the XXX of to XXXX, fiscal Local advertising time, in associated of XXX achieving its including team Through of operating XXX record same million two our synergies years the also cost in of end acquisition. synergies post performance, cost third revenues. made full At our high million all-time

continue we business. our profit digital to contribution Additionally, increase and grew significantly retransmission

is we by XXX From the debt of believe more S&P record we and discipline. the dividend balance by structure of U.S. fiscal than average X.X% to paying long-term the we our in of testament Notably, treasury dividend rate, a strengthened down triple grew XXX sheet and million our yield and perspective, XX-year a our track X.X% of which double fiscal XXXX. capital is execution current our

we have believe positioned any successfully We history. more compete XXX-year point at Meredith in our than to

reach audience our or XXX all American million Importantly, XX% of is now women.

digital XX in the now lifestyle, entertainment in beauty, media home top fashion the and position a and and categories visitors. million parenting, monthly leading company average categories. unique possess We with a are We XXX have food, position luxury formidable

combined all Comscore. media brand Our nearly audiences according jewel all reaches flagship people.com for the consumers more million reaches the PEOPLE served the is Americans Emmys. adults of Oscars, visitors PEOPLE across and unique It our of Last or XX% platforms. brands. XX Globes than the Golden million to month, crown adult XXX

We Facebook a categories. company an Disney brands important only ranked fourth drive business effective important media brand an one number Perceptions serve confirming new average Advertiser large In as respected trailed well of million. May, in women a owning ranked action. Google, portfolio both broad owning trusted to the Meredith portfolio. among its performed with companies media that’s all XX as and recent with reaching is research do of strength to advertising Independent as in highly spend We our brand audience. most study that the XXX for these tracking advertisers for

full Compared Inc. we’ve XXXX, before nearly adjusted and to Time EBITDA. our year doubled fiscal last revenue acquisition, the

revenue are diversified of sources well. as more Our

accounts compared going all which that At one-third XX% National Group consumer-related in of five the makes digital challenges contractual, advertising the example, of a we to same reset of for That time, a third is Media half fiscal ago. expectations said, advertising ago. is we total to XXXX most revenue revenue, revenue now nearly just for acknowledge face of our now years years resulted This EBITDA five and up For revenue. forward. compared

than expected the with longer Time Foremost, performance it advertising legacy Inc. around to brands. took turn

of and required magazine more issues than we subscriptions our XXXX inside were these we confident the investment are Time brands generation. taking number recognized, and in margin we the the low and EBITDA approach issues plan Additionally, fiscal tackled spending beyond. in impacted additional Inc. Both head anticipated. and encountered we’re the Once legacy on

at contributes me the let but result, As begin fiscal some end initial call, profit lower point which our to color. significantly Joe a outlook outlook XXXX will of give originally fiscal we XXXX the a provide than a detailed providing. you expected we’re

As the Media we the here we sit are with Group. print trends digital and encouraged in National advertising today, current

pacing digital Meanwhile, of year. range the advertising for in for for last full XX% the for currently years. revenues quarter digits mid-single we be over portfolio consistent first comparable XXXX. performance the now print combined XXXX. first It’s mid-single expect in year, fiscal eight the full revenue advertising up Meredith’s the with to pacing the We down That’s where the to for historical be digit of it’s the range fiscal up expect quarter

total combined, flat be So QX. advertising, slightly up will digital and in comparable to print

to growth. in us along grow additional investments women to is make initiatives e-commerce Apple in These long-term revenue with News+. giving and turnaround strength our Group to that as American consumer-related produce we and subscription expect advertising The profit headcount such confidence additional the National unduplicated and performance connection revenues acquisition, XXX million include Media to continued

it offers e-commerce in and in commerce, we Since new a and digital acquisition stronger growing ShopNation then, opportunity promising of investing to years. over the strongly in entered expanded see e-commerce years the next opportunity. been first the partnerships, has By Meredith growth couponing space exceptionally the seven three continue revenue with content ago.

new production for invest will digital to non-video more XXXX in The platforms, XXXX drive activities and faster to in We also more according display consumer for grow display to increased expected advertising and engagement. is half than video account XX% robust spending advertising ad market other total than that video-related digital plan of digital eMarketer. and

as total of and to inventory, monetization are with operated For a plan platforms than accounts as third party out video share. typically Meredith, both our less we and achieving digital platforms We video the our on and advertising revenue for our distribution our advertising sold owned of video goal inventory. XX% grow greater to digital well O&O

Both true in the e-commerce strongest, fastest Meredith. years. recent and same is digital growing platforms have The with in been among media

For e-commerce digital activities are generated XXX example, these and million. XXX our ago, five than of million activities from revenue less revenue. annual years Today,

cycling Local will we a million be political our Group, XXX to Shifting of generated Media XXXX. revenues against advertising record fiscal in

advertising While increased we will absence anticipate these offsetting revenue political revenue, and fall typical non-political the of and digital also year. of short retransmission for advertising, some a political

increased review our XXXX XXXX With performance Media of operating Fiscal nearly operating profit to Media XX% that with million. National turn group our National XXX introduction, Group. beginning in Group fiscal I’ll the

discontinued nearly adjusted million Revenues These grew profit XX% was results nearly X.X exclude the items, year, operations. billion. all from XX% EBITDA to prior and XXX special operating rose Excluding records.

in you we time the performance Time initiatives true of to on year upon in while first delivered without particularly Inc. full the quarter significant This owned challenges, take see our that the our since said most periods. Inc. of integration is and quarter, was we and Inc. maximize put that to this not As we the continued the Time on assets the acquiring our morning, current of the would both we in P&L XXXX. acquisition which in make place closed can Time progress integration fiscal in aspects portfolio. integrate key our new We and prior fourth

To XX% comparable we a start, performance advertising this the properties acquired of down Meredith’s at Inc. we historical to average close. legacy levels. the expectations got low range, Time considerably in at said advertising Time improve Inc. off progress titles the had slow would the start. underperforming Admittedly, revenue goal to were on Calendar XXXX acquisition we the print

our and from gradually off XXXX. the saw community a pay strong stuck into began favorable response and that plan with to advertising we as calendar However, we move

expectations met the digit growth quarter performance them fourth advertising quarter, Time in our exceeded the delivered third we Our Inc. legacy titles. in for and low-single as the

of to XXXX the and the we the digital low-double Meredith’s fourth we high during revenues accelerated the performance Next, fiscal digital digit advertising acquired our fiscal grew say pleased properties performance comparable levels. quarter I’m that year-over-year to in XXXX. in would we said range improve of

in revenues for fiscal accounted of XX% revenues Media advertising National total advertising Group XXXX. Digital

reminder, a engage million in month, visitors us XX top a unique XXX per activities digital As U.S. today the these player making approximately

high-margin Our Media revenues consumer-related by expanded of total accounted prior leveraging third our in portfolio. brand National revenues XX% strategy Fiscal XXXX, in year. XXXX the revenues fiscal for our from Group consumer-related was to XX% up grow our

our revenue marketing are mostly subscriptions, consumer activities affinity contractual. Our brand generation efforts, paid licensing diversified and initiatives. magazine include These products, lead and

e-commerce particularly News+. We going opportunities enhanced digital-first Apple and see forward,

innovative to time on benefits platform, the four opportunities on advertising production savings acquisition over platform. reminder, minimum royalty the lower spend News+ brands on payments, time from areas; and magazine subscription flow with guaranteed the a Meredith As and our News+ Apple expenses cost economic including from consumers Apple expenses lower based

Our a fourth assets. was strategy our will progress discuss to few in media moments. non-core Joe sell

to I’ll does, Local for he our update. an Before President, turn it Group Media Patrick over McCreery,

Patrick McCreery

grew highs. from revenues the all everyone. morning, were profit adjusted XX%, good and XX% Tom, XXXX Thanks, XX% grew Local Group record prior nearly grew Media operating year, Fiscal and EBITDA

driven more St. revenues for to Phoenix, grew Las and demand our by significant City. XXX Political nearly advertising at million. stations were We total XXX million fiscal in Vegas, revenues performance, XXXX generated Looking XX% strong advertising-related revenues political advertising. Kansas from Louis closely

of very the spot revenues were was advertising in to digit primarily in down the year. due This strong half the range. low-single for demand first political advertising the Non-political

services, in were services and in categories. retail advertising a category offset standpoint, and From the home automotive partially growth by categories declines professional media

affiliated revenues to These to due Consumer-related XX% retransmission television payments operators. than increases to growth fees partially million in and networks. XXX cable satellite more by offset from higher were increased

U.S. we households series million our During strategies a the deliver pursue aggressively XX to continue to reach. well-defined growth. include These that the increasing to we connection of year,

strong Our throughout was ratings XXXX. fiscal performance

For XX ranked our out number sign-off. to example, two May the period, or rating sign-on stations in one of X during most recent markets our

TV even XXXX year, by in of prior growth was Additionally, subscribers over the across the approximately paid subscribers. compared our the top with driven number markets in fiscal

driven Targeted we year of contribution platforms. in Media. growth by MNI a full was digital our Second, This delivered from

digits the per of fiscal million an to in low-double grew in average XX visitors month traffic XXXX. Additionally, unique

key renewed affiliated Cox as successfully we In into retransmission we five of Third, Communications and Comcast for agreements. and grew revenues. network affiliation retransmission consent renewals stations affiliation network fiscal Cox included XXXX. as our with distribution agreements XXXX, fiscal This all Corporation well

will we XXXX, fiscal MVPD renew nearly in our XX% Further XX of subscribers. million

grow agreements As affiliation some term, of allow are this net our retransmission. will us longer to

current for our Dish regarding is Let trying which use renewed. Clearly, me broadcasters audience. the help situation address negotiations accounts Dish local XX% total with than legislation of current also less to STELA to

total hope professional using for and college Dish a contract shows as Dish subscribers. and their with we agenda. them We’ve legislative strategy Dish’s to This and games pawns withhold very subscribers try their reasonable from presented doesn’t advance football disregard terms

from new by Time Finally, acquired expand our we programming leveraging to are brand reach the PEOPLE, Inc. launching biggest

on based people Our alike. has well strength audiences very show, been and new advertisers weekly by of television the received brand, the

markets. we all As across distribution daily in show committed XX of of the syndication a the beginning XXXX are our launching fall television to local with result, in

station speaking about show. broadcast are with owners airing actively We other the

Officer, Now, it Chief to I’ll over turn Financial Joe Ceryanec.

Joe Ceryanec

operations and with morning. highlights XX% good Total compared XXX continuing than operations to billion. were release morning. continuing revenues grew million. the from press Patrick, Earnings begin I’ll million to from from our X.X financial XXX company more Thanks, this

brand which to the And excluding grew And XX% XXX deciding include both retain XX% items from results EBITDA operations XXX million. brand. special in to we than to after operations the pulled million. continuing discontinued in Adjusted increased these more periods, from Money earnings

put an in Now sales. standpoint, well. asset to shifting cost on to many our From an work capture streams savings integration of are update and place activities integration the working

fourth our and completing down the asset Inc. systems. Our digital wind retail Time accomplishments quarter of management integrating included

negotiating have since we will that to fiscal tail longer-term against execute such that not synergies been Looking renewal as take XXXX, to rates longer yet continue for the time ahead favorable acquisition. to up achieve more for contracts

FORTUNE fiscal fiscal sold of brand We these TIME through earlier brands. fourth Sports media realized sold Recall proceeds XXX in and sale of that the the the quarter brands million as Illustrated 'XX, We’ve during of we XXXX. well.

debt cash XXXX. and this to X.X our XXX stood debt million of We’ve XX, net at pay billion down June at used

with Viant We near in continue along work expect FanSided conclusion to successful and in interest on reach our selling and future. to the Xumo

Now to for full special from not X from and to XXXX, certainty. results earnings basis. and range include turning amounts to from expect and $X.XX to have These X.X do actual to to are our fiscal billion, revenues from million yet $X.XX continuing a on special company outlook share not operations that our may per million reasonable difficult billion we occurred total include items predict with items range XXX to XXX

to to million We EBITDA and expect full per adjusted XXX fiscal $X.XX. XXXX $X.XX range to XXX from million earnings share adjusted from range to

set of we this point would we accomplished we in while we for we time. not mentioned, at Tom are ourselves, thought where that the we acquisition-related that goals acknowledge be As many

result, EBITDA a 'XX and the resetting forward. we’re for fiscal expectations As going

the Now but is of acquiring businesses based ago. results rigorous Time informed the mentioned 'XX Tom budgeting fiscal this on also by that outlook the delivered a and that’s brands months XX for since it’s informed by factors we’ve process completion

the processes assist our Two, we achieve our guidance the budget. following zero-based May, and determine support synergies internal change in In earnings in we additional synergies. them. three, on cost that call cost verify And that the identified outside identify communicated of us one, addition to; the and to originally help we with engaged development we last

this of we fiscal synergies more our that but actually expected XXXX than through which we somewhat XXX confirm result had As achieved is we of work, million originally expectations. a XXXX, reduces

result rigor, completed zero-based budgeting we the a increased our Finally, have process. budget fiscal an XXXX with of

I platform. XXXX the that budget of financial now we fiscal overestimate integration Our finally visibility have being Inc. by of Time informed And the our and financial completed is financial importance cannot the performance improved Meredith into platforms. one

expect that more adjusted be million the in bridge ad against to at closely we XXX see range generated factors the Media fiscal EBITDA Local that the looking for revenue fiscal cycling will said, political million that That of it fiscal that Group XXXX. we of XXX XXXX, XXXX,

million year XX a political We fiscal in of non-election to revenue is generated it ad expect last and amount similar in reasonable XXXX. the

from retransmission the consent profit On higher plus side, fees. we expect contribution

have we the parts. National On moving Group, Media more

in an XXX we XXXX. On incremental expect plus the side, to deliver synergies million of fiscal

growth expect digital ad in also revenues. We

revenues decline industry range historic We the in digit to expect line in ad print mid-single with best Meredith’s levels.

primarily the brands. We lower with expect lower contribution margin acquired from and expected consumer-related revenues increase. expect we Time Inc. an the including rate expenses, also And postal to production distribution legacy and we subscribers higher

consumer-related approximately investments These expect time. are investments Finally, to be to essential revenues over million we our on strategic XX spending fiscal XXXX. and digital growing in

million EBITDA in million XX corporate to to our we Media see to see we 'XX. XXX million fiscal lower EBITDA we delivered Media XX XX approximately 'XX. altogether, delivered fiscal it than the XX expenses National in we And roughly fiscal than with Group line XXX the We see higher XXXX. Putting Local Group million be in million million

per XX National million Now from we at fiscal more revenues earnings revenues looking continuing million Media range million, range million, Group to XX $X.XX to and operations a the of XXX closely XXX XXX XXXX, share million range to to Media from from to quarter million first from on XXX $X.XX Local to to expect Group basis.

to $X.XX We adjusted million quarter to per EBITDA earnings from first to and $X.XX. expect XXX share from XXXX to fiscal range range adjusted million XXX

to turn into Tom I’ll us that, it Q&A. back lead With to the

Tom Harty

Joe. much, very you Thank

are XXXX. accomplishments fiscal of our We proud in

our level. size is turning that business significant perform was team to continues making a its around very Media team and progress a twice at National Our high Local in Media

we fiscal In a in there’s more XXXX. closing, still to while do, have accomplished great deal

News+ growing and retransmission We and growth revenue Local by contribution. advertising Groups, the of performance including revenue offers, trends rates launch encouraged are continued platform, and both subscription to Apple response in company, National our our in activities consumer the Media e-commerce across our

renew we agreements retransmission reminder, to XX% a of fiscal next As consent year. expect our our in

questions happy for this you we’d to might morning. have us be any answer Now,

Operator

Instructions]. [Operator

Your first the question with Kyle comes of Stephens. Evans line from

Kyle Evans

for Hi. question. Thanks my taking

Tom Harty

morning, Good Kyle.

Kyle Evans

morning. Good

a heads reconcile all optimistic guide on EBITDA legacy to adjusted we’re what conservative probably scratching side. trends Time with especially pretty think I of like some our trying kind looks print

into You expenses to efforts gave and your some subscription investments, lower XX looking Time of commentary the release, us distribution strategic the the those but fix the from put and of you higher kind million production for guidance brackets beta problems? around margin your could impact

Tom Harty

I’ll I’ll you Sure. to for a investments. reconcile try our make ask it then to about comment and Joe

Joe Ceryanec

if at digits, XXX, we said drag. got of mid-single obviously kind reconciling XXX look National XXXX synergies $XX with we the contribute that we we’ve a to as take we delivered, of million print EBITDA, digital about we Kyle, that’s positive down mid-teens Obviously Yes. of EBITDA. expect

As XX revenue, and includes that’s reduction higher paper it the then on increase year-over-year. adjustments, $XX production consumer margin expenses expenses. includes series That’s that remaining we And it mentioned, on compensation the the expectations about of is about investments are a and million how some a about the lower million. XX includes postal

Tom Harty

year obviously comment into just significantly to subscription. margin Kyle, would what pulled When call the we dug one on lower in their the back Time they publisher on investment Inc. and in subscriptions. had last direct we

ago. years a that time subs what of of money make less the So make acquire cash I a they over $XX of range they say crunch, would to over deficit when a you back subscription. about on Well, subscriptions in longer-term in to lifetime and couple pulled the investment and period went that investments you then of were profitable million

forward because longer year direct the what in so subscriptions we profitability we this longer term, investments isn’t and move investments to look made call we’ve make some some to publisher would up last much standard continue term. stands additional to So subs improve to that to we Meredith

Kyle Evans

Great.

You give perspective? Meredith driving referenced conservative PEOPLE underperforming Could and are that a specific look in fiscal the more growth update properties a business. of on and from print line kind then guide? are And ad legacy margin 'XX Time the some there you top in EBITDA

Tom Harty

PEOPLE took little longer. a Yes,

leaders – same think I fiscal. Time it Obviously a about Inc. last of little about last of turnaround put significant that. that see made October onto we – performing portfolio legacy beginning commentary in whole publisher year the then and change our in was the started year of some and group as actually to gave And in we PEOPLE a strategic one business. was we a the last

So in of I advertising into we part fourth June, guidance continue that quarter. that to growth. would in again PEOPLE And good overall up of say low-single first trends PEOPLE out PEOPLE fiscal for it pretty fourth as 'XX digit quarter comps, in up digit so the our that even look range. And are fiscal ended fiscal we look seeing too. the is in advertising the that mentioned low-single quarter as going from because we was what things we’re perform saw quarter, will look we second And in being further, of into our

So to growth advertising we’re we going for quarters three year-over-year consecutive PEOPLE. believe of have

could we affected in this pharma side, so in we’ve quarter. do category On titles a we little but past titles the been in some the the had see are the the a since year. food Meredith some little We between and tougher different now, of possibly shifting bit Meredith time large also say category that fourth

number QX. it’s that fluctuations that range. mid-single we’ve got Meredith in portfolio was seen And for long-term some have also overall Inc. a we our as but our combined comparables from we portfolio, performing So saying think portfolio historically. view confident the at the we’ve we that we’ve of last the feel against been will And years and what tougher obviously print portfolio perform that’s year now quarter-by-quarter, believe digit Time minus we there. But

Kyle Evans

and queue. To grow me, buyer were you I’ll sounded back biz. like Last you’re you quarter Great. your guys Last don’t LMG see like change your either maybe it the one get in the or uninterested stations? in and in selling in for seems then TV a strategic footprint. clear the of market fit TV thinking an this way seller station I easy you a Any there to on

Tom Harty

business. television our enormous love cash an generates It for We us. of amount

laser said, obviously in third we contribution to integration We’ve Inc. focused his acquisition just was the Patrick Time biggest the which profit their consecutive on As the of had year the record team company’s and of history. company. been

the area. as Local focused with on brands long down opportunities after that sheet us time our our with of launch a seeing crossing Patrick we’re Media finally PeopleTV some some National seeing our obviously We’re Group helps then our next and the paying balance show brands we’re said debt And in – year. over to Local and syndicated

always time. are pleased that looking at shareholder first as stations for are businesses, just to with we’re strategic Time but and was, we both would So very Group not over looking to We’ve increase look sell your we value question opportunities said Media them. we Local our

Kyle Evans

Okay. Thank you.

Operator

Your of comes Eric next the with question Research. Wolfe from line Katz

Eric Katz

morning. Good

through your anything size some identified since run the process for maybe the is year? investments that fiscal can within at the earnings buckets XX of And call? the there the for 'XX, you you’ve last new you’ve Now budgeting

Tom Harty

break mostly, first said two identified investment, down about digital. and of components I million being Joe this would by $XX

digital will in XX about the digital million of XX to this area. related growing million first areas, business get being So our were to we’re looking of platform. and making main three Really we kind the be that

in opportunity to maximize We investment unified revenue system. completed. and we content our be can We’re that significant will making CMS a a have and so want growth

We’re be the of That this completed in that. end will of by fiscal year. the middle

I is part that. As my in video mentioned a huge of remarks,

will then investment data. the be that video a creation in finally and area about So third of

video then digital. infrastructure related platform to data, our and and So

in consumer piece to going of our area. really other The is the be balance

and to the into for takes we and term have and get obviously Apple growing News+ in nicely platform making product there investment for the our business, business for marketing the some over we’re converted core subscription long that a Apple format. us e-commerce that. piece I this And mentioned very performance As then investments of

and continue this some we’ve So year will year. been making last investments that

$XX about those So million in in areas. total

Eric Katz

I far range. I you where a Do were viewpoint digital on you somewhere think call any the mentioned in few you on digital see side, you. the public in when believe company, years? shooting for this about $X revenue you’re Time the have As XXX and Thank as was billion over next going the they

Tom Harty

year We believe even mid-single our about digit the advertising gave we’re growth though fiscal content guidance in get last been that XX%. going XX% about has can down, guidance giving QX, – long-term in been to creation digit It’s had the for some we that of digital year growth growth as quarters we’ve double digital better a going. and little so see and for forward of quarter fiscal We’ve we little different and a hopefully our we’re X% in and if we these fickle. going saw view this where up investments is

growing the which piece On part perspective business, consumer the digit the a area, in range in million, the marketing. revenue we’re affinity of of digital high-double is $XXX that e-commerce from

kind think so together. leaning margins an talking $XXX million. you’re and is in perspective a And when robust and EBITDA together XX%, digit digit growth put still double it perspective in it put you that So from range close to you high single it’s we’re But a business growth I of of that this significant, investing business in. very about now perspective a from

Joe Ceryanec

included sale. Viant numbers, as for the held well obviously And which sold is as the we’ve Eric, brands Time

come to of the out have would numbers. numbers those So Time

Tom Harty

trends. comparable And QX, see quarter QX advertising, the and decline again comparable we on basis piece happening were positive growth we the basis the so on a ending print advertising so in a that digital up in on last some outstripped

Eric Katz

Great. Thank you.

Operator

of the with Hebert Your Fargo Securities. Wells Davis from next question comes line

Davis Hebert

Good morning, questions. the for everyone. taking Thanks

on share balance of your us debt. in year a Just end. the with you paying I’m couple mentioned leverage sheet. if And interest wondering more down as Joe, an you fiscal could

productive? just kind curious last of should was the fiscal sheet. So balance on knowing you just in year expect some front already comments what very on the Thank that made progress you. So we the

Joe Ceryanec

Sure. Leverage X.Xx. June at XX was

still as I got the held expect We year sale. for next we’ve are of that – mentioned, assets some

million XX in around X.X% obviously with year, to down X% and XX pay the million somewhere continued to debt expecting somewhere We’re range expecting focus. next

Davis Hebert

X% the X% current of -- to

Joe Ceryanec

debt, Of yes. the outstanding net

Davis Hebert

great. Okay, Thank you.

Joe Ceryanec

XXX. to XXX So

Tom Harty

million XXX debt million XXX of to additional beta.

Davis Hebert

Okay. Any target change over leverage time? to your

Joe Ceryanec

We that the like around Xx level. to still No. run somewhere business

Davis Hebert

so great. Thank Okay, you much.

Operator

the And line Citi. of comes with Bazinet your from Jason next question

Jason Bazinet

I talked XX XXX of million wondering Group could the million of of EBITDA each you midpoint ask I’m just which of guide. to 'XX, it so about historical picture back million gets between you your to in cost Thanks. gets or try out I simple of sort is maybe XX year; about about, a that just sort the ads the and me your adverse Media of XXX. bridge cuts When the Local bigger question. that And the I That just that if fiscal out gets was least me by me political XXX XXX where end guidance to is. if XXX financials laid say at

EBITDA, if of National from Time all seems sort I just the of it just like just it And the of Group disappeared. has that Media legacy is legacy EBITDA all the of step implication back

more question to it my and because so And that confusing gets line least expectations. I is is say and our at you – the probably with revenues guided would sort in street even model of

I’m picture billion missing? though us, seems I detail $X.X there’s thing just at you what it heard don’t don’t the is I understand understand. gave all like I question. big even guidance So all the this

Tom Harty

Thanks.

the the on can acknowledge – that the with Joe but of expectations maybe our expectation. guidance street’s bridging our for we think I pile numbers, below below 'XX is

are of to at guidance second. really kind in looked we’ve matters of that this and address just we’ve incredible And media why some we I I’ll business I and is audience the But acquisition numbers did So a the my address an that that. scale reason that in factors affecting in comments. created do we the that the want outlined reach

scale wanted to create and financial also diversification. We financial

XXX So now is unduplicated Americans. million reach the audience

million We digital top XX reach XXX player. a We’re unique digital business. visitors, huge

legacy the Meredith from what we’ve National double of Meredith being nearly from our we are what for a in a driven Group be our year fiscal away were ago EBITDA business. and next where was diversified will advertising the EBITDA just five Xx was expectations revenues perspective. And legacy third company Total 'XX, and Media years

from now basically Now we’re perspective we’re consumer half. a

that. we So little slower down patient a lot XX% their we sicker acquired had with it do two was was acquired than a we’ve had year-over-year we years it to start outlined mismanagement, piece the time we business and it was advertising the kind in the – expected. because of expected We that. some a factors our And worse had taken when of than before advertising. then advertisers we print The

the base business of the that is expected at so what acquisition. we much than And advertising had lower

also of perspective back, though from we’re double was growth digital that even advertising go today, seeing flat. basically a digital the digit the we then beginning as you And year saw

that not that So expectations to cash digital that be talked And mid holding going we investing was kind high-single had business at growing in and of business. to we’ve as were the the subscription about range. they digit then

out future, of the recognition weeds, some some business was but much So into the accounting let actually the issues of that revenue new lower. where Joe actually the pushes the base buckets. outline kind piece just of XXX I’ll EBITDA the to going There the are

Jason Bazinet

Okay.

Joe Ceryanec

accounted more all Digital where of running and a fiscal down Time of think went in ad Tom print business? 'XX We us was than calendar side. flattish acquisition print our Jason. them, I models none revenue million hit the reduction on revenue to which back in be looked during expected said that at digital Their and acquisition when XX% late is million from hundred couple was margin original flat or on XXXX back as our acquisition forecast, for that print, areas; on reality and as original circ, those circ, our the it EBITDA lower of over plan Tom was XXX versus did three came to decline that mentioned, we that business latest then bridge from in and really, said, calendar the expectations 'XX. the And in. Tom plan digital

Jason Bazinet

Okay, very all much. you right. Thank

Tom Harty

Jason. Thanks,

much. into everyone’s that appreciate to fiscal We our time moving and catching you Thank XXXX. for look today. concludes very and So questions up forward forward

Operator

call. conference today’s concludes This

disconnect. now may You

Hawkeye Acquisition (MDP) 5 Sep 192019 Q4 Earnings call transcript