MDP - Earnings call transcript Q1 2020 | Hawkeye Acquisition, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to Meredith's Fiscal 2020 First Quarter Earnings Conference Call. My name is Sylvia, and I will be your conference operator today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. Please be advised that today's call is being recorded. Instructions] [Operator

hand Sir, to please now Mr. speaker conference Lovell. Mike go the will your over today, I ahead.

Mike Lovell

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

Executive will McCreery from and begin President Financial may Officer by Our differ comments Remarks Chief statements, Media Officer this and Ceryanec. Chief results morning Local Patrick will followed forward-looking Tom our President call Group forecasts. Joe Harty, include with and from actual

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

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

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

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

Tom Harty

and had earlier see everyone. million. the very morning, I were within operations, you good Earnings morning. from To you've on EBITDA this communicated news last call. much, our our revenues summarize, Adjusted special $XXX total was continuing hope were Thank $XX items includes company range million to $XXX Mike, release opportunity which earnings the million. issued

in trends. exceeding growth in quarter newsstand significantly performance execution in first national including aspects, performance media profitable our and advertising industry-wide both revenues Our local reflects our growth all activities digital print magazine groups, in solid and

of Record quarter that spot advertising our revenues disciplined peers, expenses. exceeding group, revenue our nonpolitical our performance in a growth driven for nonpolitical first control by media by is local and

negotiations stations communicated kept Network quarter nearly our days dark our local in results. performance contract local delivered we EBITDA DISH range, group group within that media the impacted XX the for media the While with protracted

agreement contract case fees of exchange result DISH our gain, long-term as a for new term. It higher over in pain the the with short-term multiyear will clearly was in

are encouraged across by second quarter, portfolio. look to ahead we our trends print we As our advertising

Conversely, forecasting strong comp. advertising in quarter, as advertising are portfolio. digital comparable a after tougher year-over-year leading against softening market We first print a cycle are currently growth we for our trends

we for strong the performance. the fiscal we growth media In continue of advertising XXXX. local expect see group, continue However, first to to mid-single-digit half

advertising While early, single-digit quarter XXXX, group media national group up performance, operating currently profit our Fiscal to $XX increased pacing it's the still year. to media nonpolitical With group. year range our spot of from the turn a that is national I'll the the with mid prior overview, in prior compared XX% quarter second million. review in now beginning first operating to

profit $XXX were Excluding from adjusted million EBITDA special million. the up $XX items, million, in was prior operating million $XX and year. was $XX Revenues

grew driven Looking digital prior-year revenues digits, more closely growth fiscal first the advertising to the quarter in single period, programmatic Meredith's by high compared at performance XXXX in platform.

Weddings magazines. Print Home in advertising title changes Cooking and transitioning Martha revenues low closing popular Coastal EatingWell newsstand made and teens, into our to Stewart Light include and the portfolio. merging titles, we've our Traditional Living were These reflecting MONEY down to

Living, mid-single ad print to comparable revenues revenue advertising compared brands. year, levels. on the historical EatingWell, the a Real Southern However, down We growth basis, with in line the print at were delivered in Instyle prior Simple performance our and digits

to million, $XXX portfolio related compared reflecting revenues million, the $XXX were Consumer changes.

our a initial XXXX, it time. new additional partnership These position cover group with run. changes have and to media a for we a growth or including premium fiscal price Scott, national So fame completed products, include Jonathan revenue over for profit and to the far, launching in an announced and XXX,XXX that magazine lifestyle a Drew January Property XXXX on Brothers new will in $X.XX print with launch newsstand

for $XX. issues market aggressively to of subscriptions an We started have with four offer

to launch limited, magazine While in strong rates. profitable launches this and model interest Journal, the of our plan is are history very following the industry will in at most similar one successful the established Magnolia seeing be with successful advertising we history. most launch we are page intentionally The the client attractive we already with the

Now entering Magnolia Ray transitioning to its magazine hottest lower was year, category basis a published home January recently named a third quarterly Day the on and to title expenses, by improve magazine newsstand including in Adweek. Realignments beginning premium Journal XXXX. Rachael the efficiency Every

have we we Previously, $XX Traditional selling Coastal from as strategy Cooking a interest achieve such is million in and titles noncore remaining our Living, Home, Light with MONEY.com expected including website successfully to and sales. This assets, Viant. used the asset

these from that FanSided still expect properties transactions, are continue goal Inc. marketing as proceeds meet and the we exceed we Time former Xumo. to to With two or

To second discussion, solid a summarize progress it was solid with quarter and as the a quarter we media first group fronts, many on are expecting national well.

on I'll Media our television McCreery, business. for update turn to Now Patrick over it an Group Local President

Patrick McCreery

at spot Louis advertising the media nonpolitical quarter grew period. our morning, and local operating by million closely looking and Revenues and XXXX $XX to prior-year quarter, fiscal XXXX, revenues EBITDA Atlanta, a in million, first Nonpolitical X% group $XX for good Tom, City, record was Fiscal a markets. more led Thanks, first $XXX adjusted everyone. million. St. was profit performance to Kansas growth $XX were compared million,

offset home category. both grew Targeted the down from services, still organizations From from third-party advertising and mid-single Media. were auto category, softer services prior note X%, by improved driven quarters. digits, advertising digital MNI categories the should professional I stronger, by revenues partially performance in the the in while a much standpoint, Combined results was that category automotive sales and

networks. revenues affiliated to to and DISH in nonpolitical the X% even satellite the for increased in fees $XX higher period. were advertising related $X Consumer due when from offset operators, retransmission a revenues million, blackout. million were prior-year These year, accounting by cable television $XX expected protracted in compared to million political As increases to growth payments

to pursue expand initiatives to continue brands. strengthen local our and We

People television brand weekly of with audiences Our on to well perform advertisers. strength and show continues based the the

committed television actively XX as local with well. markets, launching of in distribution owners in in television have are discussions show to We daily our with carry show across fall other to this of we Beginning the the syndication XXXX. broadcast all engaged

We April. tested launching based our show also year, next in southern response a brand We earlier markets this our strong. are Living on Southern the was and

group growing or seven on are cooking of No. markets X going No. and the culture, efforts portfolio. demonstrated Given of our across the strong our maintain as period station July it sign stations popularity off. XX local to air sign by a southern we our when geographically ratings connection These to X to in diverse entire either viewers, helping media ranked are

second Now it Ceryanec morning look quarter to to this I'll highlights over outlook. with a financial Joe? turn Joe call conclude companywide and at our our

Joe Ceryanec

Patrick, Thanks, with begin good everybody. housekeeping going morning, a few items. I'm and to

on First, lease we accounting adopted X, standard new the accounting July financial XXXX. for standard board's

liabilities sheet. of you'll assets lease to By greater lease in and lion's XX to result, City. far, York operating the leases New a As than these Liberty at length amounts see relate share Meredith's in our related months operating on balance recorded XXX

in note expect we million XX, $X.X $XXX at of $XXX fiscal September debt pay XXXX. debt to to billion You'll balance to at down continue XXXX, million and our stood

to Turning outlook. the

yet communicated total million to operations to $X to from For and special items on from on this continue and occurred X, company including a from expect to charge $X.XX time. that quarter $XXX additional net range results million to $X not predict per-share full-year basis, continuing the unchanged Earnings from for are reasonable Actual billion a million. billion, have after-tax fiscal special at September we to range $X.X of first guidance from include items to with revenues difficult $XXX XXXX, XXXX. may certainty we $X.XX original

original million range $XXX per EBITDA million $X.XX fiscal share XXXX, and strategic and include adjusted These XXXX on investments. guidance X, approximately ranges million September range and continue are $XXX to We full to of expect from to to from $XX year unchanged planned $X.XX. from adjusted to earnings the

Now the of looking XXXX. quarter at closely more fiscal second

amortization, $XX $X.XX on $XX basis. and from from group $XXX noncash from $X.XX media and revenues million expense $XXX which media million including million to million. continuing net range from approximately million, to range range revenues million $XXX Earnings to and a national million per-share interest to to $XX is depreciation expect approximately from operations, $XX million of $XXX local to group to We

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

Q&A. Now into I'll turn and it over to Tom to close lead

Tom Harty

Thank you Joe. very much,

As you the know, long over we manage our term. business

the for we stated well range deliver within full EBITDA confident are year. We will performance our

have of businesses, our we are a across demand encouraging do calendar both not still clear advertising XXXX of trends. While there picture

we powerful advertising calendar excess portfolio continued XXXX brands. print momentum we First, in as budgets our with expect of

digital group to group, a in solid least expect to advertising nonpolitical in XXXX. we swings, local quarterly advertising half the single-digit experienced national our we and to in see revenues. our while growth we primary mid in media expect at dollars political we deliver fiscal back continue, media In of expect growth revenues pickup Second, advertising

in Finally, we of fiscal of contracts second representing base to the expect approximately subscriber renew our half XX% XXXX. MVPD

questions happy this have might Now we'd be any to you answer morning.

Operator

your from Company. Kurnos Benchmark from [Operator question line The Instructions] comes first And the Dan of

Dan Kurnos

the guys Obviously, that's issues give a had. can key kind us given how on been point mix for update maybe thus just the strategic spend Tom, you is successful an focal you far? going of you initiative

can expect changes you are just of how the pushing were shift of coming larger reducing of think, just Is so? or something or should time? change tell you kind evaluating there we remaining us over some which, Thanks. more to it, between call here then makes we the And had over the opportunities about brands portfolio, maybe frequency months sense, you're XX just that frequency? simply think a some do And frequency that that in mix some sense thinking with newsstand next, sort the

Tom Harty

Yeah. Great.

first So totaling investments, with the We're Dan, $XX investments. well way million. part, on our the under we're on

produce our business two kind specifically. more trends obviously, of being other is some the we in helping consumer we've that the a more video. number at have And focus main content when we in the we video adding Our look great people and first in just that We've being closed, and of digital content areas. been in area. us One, had in quarter

of up So range. were views up overall, in video and that mid-double-digit revenue in was QX, video kind XX%

starting already some to of happen. we're So see that

consumer in digital would our of A in The other investing business. lot what that that's area looking e-commerce. we we're is at call consumer,

we're and significant area And plan. of already, growth actually also ahead we're seeing in that

as XXX it to on people And to but organization. So adding part when undertaking investment, looking not of you well way. insignificant people, that we're add the It's number of I think the very well. we're an we're add all together, our

Joe Ceryanec

that at first about number added third But the we've quarter. a of the of end

Tom Harty

only. part changing your newsstand we the and time, moved of over second to question, few portfolio turning a are And magazine our we've to

has kind obviously, side historically, business two revenue magazine advertising both the you on the the that, profitability streams optimize related the side. So to and of consumer and

So to the see we Magnolia money and we're Brothers the portfolio as change for doing at on we time, our Journal. consumer people decreased with plan advertising titles revenue, like increase volume we like more specific newsstand or demand charging the look to had, opportunities and over Property

So that more had in kind months, specifically, question we've of don't year. the Family we XX announced asked, other of weeks any months, changes portfolio your four fiscal some changes next as happen while more. rest of anticipate couple the last for in the some this ago. a portfolio could We But Circle

being being, out more for really from over it's model and to that looking advertising analysis specific financial-driven driven more figure the to statistical kind being we're consumer-driven, a at time. when So flip from of brand does

Dan Kurnos

helpful. you could been topical it's one just sneak super or Patrick, in, lately. for either if since I Thanks. That's And Tom,

you've update you kind it You the get to next, and how back don't file know call six us overall, just if on thinking from sort general the sub it, give sub about DISH, if you're DISH an XX seen months? of of but on, I trends over could

Tom Harty

Patrick?

Patrick McCreery

year Yes. sub certain Dan. Thank over for of you, obviously, year. percentage We, budget losses

think satellite States. I expected the outages a were of to United during the due the across than rash little bit higher quarter, they

So a I messy. was it that little would say

that think core the But of the we're base, losses offsetting We somewhere seeing some OTT growth low-single down have in which are between is July say the still I numbers, and sub digit. sub I'd losses.

Joe Ceryanec

color, guys. the Perfect. all Thanks for

Tom Harty

Thank you.

Operator

[Operator Instructions]

Tom Harty

think against call, we're earnings up call. bumping another another I

So we many don't morning. questions have as this

you morning, to Thank look their thank to everyone next time talking for we quarter. this and we everybody forward very much. So

Operator

you this earnings Ladies for gentlemen, XXXX Meredith participation. first fiscal conclude quarter call. does Thank and the conference your

You disconnect. now may

Hawkeye Acquisition (MDP) 9 Nov 192020 Q1 Earnings call transcript