LEE ENTERPRISES, Inc - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - May 4, 2018

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8-K - 8-K - LEE ENTERPRISES, Incfy18q2supplementalfinancia.htm


Exhibit 99.1 - Supplemental Financial Information – Second fiscal quarter ended March 25, 2018.

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





13 Weeks Ended (unaudited)
 
 
 
 
 
 
 
 
March 25, 2018
 
March 26, 2017
(in thousands)
Consolidated
Lee Legacy
Pulitzer Inc.
 
Consolidated
Lee Legacy
Pulitzer Inc.
Operating revenue:
 
 
 
 
 
 
 
Advertising and marketing services
71,553

50,292

21,261

 
77,533

54,601

22,932

Subscription
45,972

32,055

13,917

 
45,009

31,349

13,660

Other
10,280

8,519

1,761

 
10,845

8,981

1,864

Total operating revenue
127,805

90,866

36,939

 
133,387

94,931

38,456

Operating expenses:
 
 
 
 
 
 
 
Compensation
48,656

37,253

11,403

 
52,414

40,138

12,276

Newsprint and ink
5,640

4,027

1,613

 
6,200

4,279

1,921

Other operating expenses
49,315

30,036

19,279

 
48,756

28,232

20,524

Depreciation and amortization
8,016

5,226

2,790

 
10,318

7,391

2,927

Gain on sale of assets and other, net
(1,300
)
(1,272
)
(28
)
 
(3,783
)
(3,714
)
(69
)
Workforce adjustments and other
1,816

1,741

75

 
2,405

1,560

845

Total operating expenses
112,143

77,011

35,132

 
116,310

77,886

38,424

Equity in earnings of associated companies
1,608

464

1,144

 
1,729

465

1,264

Operating income
17,270

14,319

2,951

 
18,806

17,510

1,296

Non-operating income (expense), net
(13,810
)
(16,011
)
2,201

 
(11,285
)
(12,152
)
867

Income tax expense (benefit)
927

(944
)
1,871

 
1,144

359

785

Net income
2,533

(748
)
3,281

 
6,377

4,999

1,378


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
2,533

(748
)
3,281

 
6,377

4,999

1,378

Adjusted to exclude
 
 
 
 
 
 
 
Non-operating expenses (income), net
13,810

16,011

(2,201
)
 
11,285

12,152

(867
)
Income tax expense (benefit)
927

(944
)
1,871

 
1,144

359

785

Equity in earnings of TNI and MNI
(1,608
)
(464
)
(1,144
)
 
(1,729
)
(465
)
(1,264
)
Depreciation and amortization
8,016

5,226

2,790

 
10,318

7,391

2,927

Gain on sale of assets and other, net
(1,300
)
(1,272
)
(28
)
 
(3,783
)
(3,714
)
(69
)
Workforce adjustments and other
1,816

1,741

75

 
2,405

1,560

845

Stock compensation
497

497

—

 
559

559

—

Add:
 
 
 
 
 
 
 
Ownership share of TNI and MNI EBITDA (50%)
2,086

838

1,248

 
2,220

852

1,368

Adjusted EBITDA
26,777

20,885

5,892

 
28,796

23,693

5,103

 
 
 
 
 
 
 
 
Supplemental cash flow information
 
 
 
 
 
Distributions from MNI and TNI
2,881

1,250

1,631

 
2,437

1,000

1,437

Capital expenditures
(1,350
)
(1,051
)
(299
)
 
(990
)
(954
)
(36
)
Cash income tax refunds (payments)
(175
)
(165
)
(10
)
 
(269
)
(269
)
—

Interest income
126

(2,075
)
2,201

 
109

109

—

Interest to be settled in cash
(3,257
)
—

(3,257
)
 
(14,637
)
(10,747
)
(3,890
)
Debt financing and administrative costs
(1
)
(1
)
—

 
—

—

—






26 Weeks Ended (unaudited)
 
 
 
 
 
 
 
 
March 25, 2018
 
March 26, 2017
(in thousands)
Consolidated
Lee Legacy
Pulitzer Inc.
 
Consolidated
Lee Legacy
Pulitzer Inc.
Operating revenue:
 
 
 
 
 
 
 
Advertising and marketing services
156,213

109,368

46,845

 
170,568

118,706

51,862

Subscription
94,241

64,968

29,273

 
93,896

65,366

28,530

Other
21,136

17,533

3,603

 
22,912

18,970

3,942

Total operating revenue
271,590

191,869

79,721

 
287,376

203,042

84,334

Operating expenses:
 
 
 
 
 
 
 
Compensation
99,567

76,261

23,306

 
107,470

82,191

25,279

Newsprint and ink
11,478

8,138

3,340

 
13,093

9,181

3,912

Other operating expenses
99,671

60,201

39,470

 
101,533

59,456

42,077

Depreciation and amortization
16,068

10,461

5,607

 
20,698

14,801

5,897

Gain on sale of assets and other, net
(1,297
)
(1,270
)
(27
)
 
(3,716
)
(3,715
)
(1
)
Workforce adjustments and other
2,284

2,063

221

 
2,470

1,622

848

Total operating expenses
227,771

155,854

71,917

 
241,548

163,536

78,012

Equity in earnings of associated companies
3,991

1,328

2,663

 
4,417

1,600

2,817

Operating income
47,810

37,343

10,467

 
50,245

41,106

9,139

Non-operating income (expense), net
(28,713
)
(32,959
)
4,246

 
(24,017
)
(25,727
)
1,710

Income tax expense (benefit)
(18,763
)
(24,107
)
5,344

 
7,410

3,470

3,940

Net income
37,860

28,491

9,369

 
18,818

11,909

6,909


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
37,860

28,491

9,369

 
18,818

11,909

6,909

Adjusted to exclude
 
 
 
 
 
 
 
Non-operating expenses (income), net
28,713

32,959

(4,246
)
 
24,017

25,727

(1,710
)
Income tax expense (benefit)
(18,763
)
(24,107
)
5,344

 
7,410

3,470

3,940

Equity in earnings of TNI and MNI
(3,991
)
(203
)
(3,788
)
 
(4,417
)
(1,600
)
(2,817
)
Depreciation and amortization
16,068

10,461

5,607

 
20,698

14,801

5,897

Gain on sale of assets and other, net
(1,297
)
(1,270
)
(27
)
 
(3,716
)
(3,715
)
(1
)
Workforce adjustments and other
2,284

2,063

221

 
2,470

1,622

848

Stock compensation
1,016

1,016

—

 
1,083

1,083

—

Add:
 
 
 
 
 
 
 
Ownership share of TNI and MNI EBITDA (50%)
5,245

2,373

2,872

 
5,696

2,670

3,026

Adjusted EBITDA
67,135

51,783

15,352

 
72,059

55,967

16,092

 
 
 
 
 
 
 
 
Supplemental cash flow information:
 
 
 
 
 
Distributions from MNI and TNI
5,198

2,000

3,198

 
4,670

2,250

2,420

Capital expenditures
(2,452
)
(1,940
)
(512
)
 
(2,079
)
(1,879
)
(200
)
Cash income tax refunds (payments)
(284
)
(251
)
(33
)
 
(639
)
(643
)
4

Interest income
222

(3,845
)
4,067

 
184

184

—

Interest to be settled in cash
(6,742
)
—

(6,742
)
 
(29,588
)
(21,797
)
(7,791
)
Debt financing and administrative costs
(5
)
(5
)
—

 
—

—

—



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