LEE ENTERPRISES, Inc - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - August 4, 2017

Attached files

file filename
8-K - 8-K - LEE ENTERPRISES, Incfy17q3pulitzerandleelegacy.htm


Exhibit 99.1 - Supplemental Financial Information – Third fiscal quarter ended June 25, 2017.

leelogo2013a01a01a03a02a03.jpg
201 N. Harrison St.
Davenport, IA 52801
www.lee.net





13 Weeks Ended (unaudited)
 
 
 
 
 
 
 
 
June 25, 2017
 
June 26, 2016
(in thousands)
Consolidated
Lee Legacy
Pulitzer Inc.
 
Consolidated
Lee Legacy
Pulitzer Inc.
Operating revenue:
 
 
 
 
 
 
 
Advertising and marketing services
81,247

56,393

24,854

 
92,294

63,858

28,436

Subscription
47,410

32,757

14,653

 
47,160

32,330

14,830

Other
10,698

8,859

1,839

 
11,492

9,553

1,939

Total operating revenue
139,355

98,009

41,346

 
150,946

105,741

45,205

Operating expenses:
 
 
 
 
 
 
 
Compensation
51,577

39,702

11,875

 
57,218

43,246

13,972

Newsprint and ink
6,123

4,234

1,889

 
6,604

4,234

2,370

Other cash costs
48,571

29,236

19,335

 
53,356

30,454

22,902

Depreciation and amortization
10,296

7,392

2,904

 
10,868

7,707

3,161

Loss (gain) on sale of assets, net
(61
)
(3
)
(58
)
 
(354
)
18

(372
)
Workforce adjustments and other
3,902

3,664

238

 
424

396

28

Total operating expenses
120,408

84,225

36,183

 
128,116

86,055

42,061

Equity in earnings of MNI and TNI
1,616

645

971

 
1,825

850

975

Operating income
20,563

14,429

6,134

 
24,655

20,536

4,119

Non-operating income (expense), net
(12,433
)
(13,908
)
1,475

 
(17,251
)
(18,055
)
804

Income tax expense
1,843

(921
)
2,764

 
3,037

1,249

1,788

Net income
6,287

1,442

4,845

 
4,367

1,232

3,135


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
6,287

1,442

4,845

 
4,367

1,232

3,135

Adjusted to exclude
 
 
 
 
 
 
 
Non-operating expenses, net
12,433

13,908

(1,475
)
 
17,251

18,055

(804
)
Income tax expense
1,843

(921
)
2,764

 
3,037

1,249

1,788

Equity in earnings of TNI and MNI
(1,616
)
(645
)
(971
)
 
(1,825
)
(850
)
(975
)
Depreciation and amortization
10,296

7,392

2,904

 
10,868

7,707

3,161

Loss (gain) on sale of assets, net
(61
)
(3
)
(58
)
 
(354
)
18

(372
)
Workforce adjustments and other
3,902

3,664

238

 
424

396

28

Stock compensation
481

481

—

 
550

550

—

Add:
 
 
 
 
 
 
 
Ownership share of TNI and MNI EBITDA (50%)
2,246

1,170

1,076

 
2,625

1,545

1,080

Adjusted EBITDA
35,811

26,488

9,323

 
36,943

29,902

7,041

 
 
 
 
 
 
 
 
Supplemental cash flow information
 
 
 
 
 
Distributions from MNI and TNI
1,713

500

1,213

 
3,251

1,750

1,501

Capital expenditures
(1,153
)
(1,033
)
(120
)
 
(2,521
)
(2,267
)
(254
)
Pension contributions
—

—

—

 
(826
)
—

(826
)
Cash income tax refunds (payments)
(441
)
(441
)
—

 
(4
)
(4
)
—

Interest income
77

77

—

 
141

141

—

Interest to be settled in cash
(14,330
)
(10,565
)
(3,765
)
 
(15,783
)
(11,724
)
(4,059
)
Debt financing and administrative costs
(371
)
(371
)
—

 
(376
)
(376
)
—






39 Weeks Ended (unaudited)
 
 
 
 
 
 
 
 
June 25, 2017
 
June 26, 2016
(in thousands)
Consolidated
Lee Legacy
Pulitzer Inc.
 
Consolidated
Lee Legacy
Pulitzer Inc.
Operating revenue:
 
 
 
 
 
 
 
Advertising and marketing services
251,815

175,099

76,716

 
286,662

198,543

88,119

Subscription
141,306

98,123

43,183

 
144,249

99,169

45,080

Other
33,610

27,829

5,781

 
35,275

29,683

5,592

Total operating revenue
426,731

301,051

125,680

 
466,186

327,395

138,791

Operating expenses:
 
 
 
 
 
 
 
Compensation
159,047

121,893

37,154

 
174,733

132,848

41,885

Newsprint and ink
19,216

13,415

5,801

 
19,343

13,941

5,402

Other cash costs
150,109

88,697

61,412

 
166,332

95,491

70,841

Depreciation and amortization
30,993

22,192

8,801

 
32,752

23,015

9,737

Loss (gain) on sale of assets and other, net
(3,777
)
(3,718
)
(59
)
 
(1,763
)
151

(1,914
)
Workforce adjustments and other
6,372

5,286

1,086

 
1,616

1,510

106

Total operating expenses
361,960

247,765

114,195

 
393,013

266,956

126,057

Equity in earnings of MNI and TNI
6,034

2,246

3,788

 
6,633

2,678

3,955

Operating income
70,805

55,532

15,273

 
79,806

63,117

16,689

Non-operating income (expense), net
(36,447
)
(39,632
)
3,185

 
(21,877
)
(24,153
)
2,276

Income tax expense
9,253

2,549

6,704

 
22,571

15,683

6,888

Net income
25,105

13,351

11,754

 
35,358

23,281

12,077


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
25,105

13,351

11,754

 
35,358

23,281

12,077

Adjusted to exclude
 
 
 
 
 
 
 
Non-operating expenses, net
36,447

39,632

(3,185
)
 
21,877

24,153

(2,276
)
Income tax expense
9,253

2,549

6,704

 
22,571

15,683

6,888

Equity in earnings of TNI and MNI
(6,034
)
(2,246
)
(3,788
)
 
(6,633
)
(2,678
)
(3,955
)
Depreciation and amortization
30,993

22,192

8,801

 
32,752

23,015

9,737

Loss (gain) on sale of assets and other, net
(3,777
)
(3,718
)
(59
)
 
(1,763
)
151

(1,914
)
Workforce adjustments and other
6,372

5,286

1,086

 
1,616

1,510

106

Stock compensation
1,564

1,564

—

 
1,714

1,714

—

Add:
 
 
 
 
 
 
 
Ownership share of TNI and MNI EBITDA (50%)
7,943

4,917

3,026

 
9,145

4,875

4,270

Adjusted EBITDA
107,866

83,527

24,339

 
116,637

91,704

24,933

 
 
 
 
 
 
 
 
Supplemental cash flow information:
 
 
 
 
 
Distributions from MNI and TNI
6,384

2,750

3,634

 
10,980

5,750

5,230

Capital expenditures
(3,232
)
(2,912
)
(320
)
 
(5,792
)
(5,113
)
(679
)
Pension contributions
—

—

—

 
(2,314
)
—

(2,314
)
Cash income tax refunds (payments)
(1,080
)
(1,076
)
(4
)
 
(275
)
(275
)
—

Interest income
261

261

—

 
326

326

—

Interest to be settled in cash
(43,919
)
(32,362
)
(11,557
)
 
(49,206
)
(36,759
)
(12,447
)
Debt financing and administrative costs
(371
)
(371
)
—

 
(420
)
(376
)
(44
)


Stock widget

Investing forum

LEE ENTERPRISES, Inc Reports