Exhibit 99.1
Exhibit 99.1 - Supplemental Financial Information – Third fiscal quarter ended June 30, 2019.
201 N. Harrison St.
Davenport, IA 52801
www.lee.net
Quarter Ended (unaudited)
June 30, 2019 | June 24, 2018 | |||||||||||||||||||||||
(in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | Consolidated | Lee Legacy | Pulitzer Inc. | ||||||||||||||||||
Operating revenue: | ||||||||||||||||||||||||
Advertising and marketing services | 65,754 | 45,311 | 20,443 | 73,538 | 51,195 | 22,343 | ||||||||||||||||||
Subscription | 46,620 | 31,949 | 14,671 | 48,165 | 33,438 | 14,727 | ||||||||||||||||||
Other | 14,910 | 13,235 | 1,675 | 10,915 | 9,216 | 1,699 | ||||||||||||||||||
Total operating revenue | 127,284 | 90,495 | 36,789 | 132,618 | 93,849 | 38,769 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Compensation | 45,373 | 34,233 | 11,140 | 48,570 | 36,330 | 12,240 | ||||||||||||||||||
Newsprint and ink | 5,230 | 3,513 | 1,717 | 6,442 | 4,616 | 1,826 | ||||||||||||||||||
Other operating expenses | 48,157 | 29,161 | 18,996 | 49,159 | 29,325 | 19,834 | ||||||||||||||||||
Depreciation and amortization | 7,347 | 4,800 | 2,547 | 7,904 | 5,133 | 2,771 | ||||||||||||||||||
Assets loss (gain) on sales, impairments, and other | (195 | ) | (97 | ) | (98 | ) | 101 | 101 | — | |||||||||||||||
Restructuring costs and other | 2,792 | 1,950 | 842 | 1,865 | 1,502 | 363 | ||||||||||||||||||
Total operating expenses | 108,704 | 73,560 | 35,144 | 114,041 | 77,007 | 37,034 | ||||||||||||||||||
Equity in earnings of associated companies | 1,451 | 505 | 946 | 1,578 | 695 | 883 | ||||||||||||||||||
Operating income | 20,031 | 17,440 | 2,591 | 20,155 | 17,537 | 2,618 | ||||||||||||||||||
Non-operating income (expense), net | (12,354 | ) | (15,893 | ) | 3,539 | (13,433 | ) | (16,553 | ) | 3,120 | ||||||||||||||
Income tax expense (benefit) | 1,505 | (28 | ) | 1,533 | 1,972 | (112 | ) | 2,084 | ||||||||||||||||
Net income | 6,172 | 1,575 | 4,597 | 4,750 | 1,096 | 3,654 |
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 | 6,172 | 1,575 | 4,597 | 4,750 | 1,096 | 3,654 | ||||||||||||||||||
Adjusted to exclude | ||||||||||||||||||||||||
Non-operating expenses (income), net | 12,354 | 15,893 | (3,539 | ) | 13,433 | 16,553 | (3,120 | ) | ||||||||||||||||
Income tax expense (benefit) | 1,505 | (28 | ) | 1,533 | 1,972 | (112 | ) | 2,084 | ||||||||||||||||
Equity in earnings of TNI and MNI | (1,451 | ) | (505 | ) | (946 | ) | (1,578 | ) | (695 | ) | (883 | ) | ||||||||||||
Depreciation and amortization | 7,347 | 4,800 | 2,547 | 7,904 | 5,133 | 2,771 | ||||||||||||||||||
Assets loss (gain) on sales, impairments, and other | (195 | ) | (97 | ) | (98 | ) | 101 | 101 | — | |||||||||||||||
Restructuring costs and other | 2,792 | 1,950 | 842 | 1,865 | 1,502 | 363 | ||||||||||||||||||
Stock compensation | 321 | 321 | — | 425 | 425 | — | ||||||||||||||||||
Add: | ||||||||||||||||||||||||
Ownership share of TNI and MNI EBITDA (50%) | 1,806 | 755 | 1,051 | 2,189 | 1,202 | 987 | ||||||||||||||||||
Adjusted EBITDA | 30,651 | 24,664 | 5,987 | 31,061 | 25,205 | 5,856 | ||||||||||||||||||
Supplemental cash flow information | ||||||||||||||||||||||||
Distributions from MNI and TNI | 1,581 | 850 | 731 | 1,677 | 500 | 1,177 | ||||||||||||||||||
Capital expenditures | (1,294 | ) | (1,086 | ) | (208 | ) | (1,827 | ) | (1,191 | ) | (636 | ) | ||||||||||||
Cash income tax payments | (2,406 | ) | (2,406 | ) | — | (145 | ) | (135 | ) | (10 | ) | |||||||||||||
Interest income | 164 | (2,665 | ) | 2,829 | 113 | (2,299 | ) | 2,412 | ||||||||||||||||
Interest to be settled in cash | (11,860 | ) | (9,196 | ) | (2,664 | ) | (12,913 | ) | (9,758 | ) | (3,155 | ) | ||||||||||||
Debt financing and administrative costs | (890 | ) | (890 | ) | — | (427 | ) | (427 | ) | — |
Year Ended (unaudited) | ||||||||||||||||||||||||
June 30, 2019 | June 24, 2018 | |||||||||||||||||||||||
(in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | Consolidated | Lee Legacy | Pulitzer Inc. | ||||||||||||||||||
Operating revenue: | ||||||||||||||||||||||||
Advertising and marketing services | 204,651 | 141,802 | 62,849 | 229,751 | 160,563 | 69,188 | ||||||||||||||||||
Subscription | 137,965 | 95,041 | 42,924 | 142,405 | 98,405 | 44,000 | ||||||||||||||||||
Other | 43,573 | 38,968 | 4,605 | 32,052 | 26,750 | 5,302 | ||||||||||||||||||
Total operating revenue | 386,189 | 275,811 | 110,378 | 404,208 | 285,718 | 118,490 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Compensation | 140,197 | 105,473 | 34,724 | 149,551 | 112,589 | 36,962 | ||||||||||||||||||
Newsprint and ink | 17,394 | 11,927 | 5,467 | 17,920 | 12,754 | 5,166 | ||||||||||||||||||
Other operating expenses | 145,915 | 89,549 | 56,366 | 148,830 | 89,526 | 59,304 | ||||||||||||||||||
Depreciation and amortization | 22,263 | 14,518 | 7,745 | 23,973 | 15,595 | 8,378 | ||||||||||||||||||
Assets loss (gain) on sales, impairments, and other | (212 | ) | (114 | ) | (98 | ) | (1,197 | ) | (1,170 | ) | (27 | ) | ||||||||||||
Restructuring costs and other | 5,612 | 3,823 | 1,789 | 4,150 | 3,566 | 584 | ||||||||||||||||||
Total operating expenses | 331,169 | 225,176 | 105,993 | 343,227 | 232,860 | 110,367 | ||||||||||||||||||
Equity in earnings of associated companies | 5,298 | 1,702 | 3,596 | 5,569 | 2,023 | 3,546 | ||||||||||||||||||
Operating income | 60,318 | 52,337 | 7,981 | 66,550 | 54,881 | 11,669 | ||||||||||||||||||
Non-operating income (expense), net | (39,579 | ) | (50,163 | ) | 10,584 | (40,730 | ) | (49,512 | ) | 8,782 | ||||||||||||||
Income tax expense (benefit) | 6,175 | 1,534 | 4,641 | (16,791 | ) | (24,219 | ) | 7,428 | ||||||||||||||||
Net income | 14,564 | 640 | 13,924 | 42,611 | 29,588 | 13,023 |
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 | 14,564 | 640 | 13,924 | 42,611 | 29,588 | 13,023 | ||||||||||||||||||
Adjusted to exclude | ||||||||||||||||||||||||
Non-operating expenses (income), net | 39,579 | 50,163 | (10,584 | ) | 40,730 | 49,512 | (8,782 | ) | ||||||||||||||||
Income tax expense (benefit) | 6,175 | 1,534 | 4,641 | (16,791 | ) | (24,219 | ) | 7,428 | ||||||||||||||||
Equity in earnings of TNI and MNI | (5,298 | ) | (1,702 | ) | (3,596 | ) | (5,569 | ) | (2,023 | ) | (3,546 | ) | ||||||||||||
Depreciation and amortization | 22,263 | 14,518 | 7,745 | 23,973 | 15,595 | 8,378 | ||||||||||||||||||
Assets loss (gain) on sales, impairments, and other | (212 | ) | (114 | ) | (98 | ) | (1,197 | ) | (1,170 | ) | (27 | ) | ||||||||||||
Restructuring costs and other | 5,612 | 3,823 | 1,789 | 4,150 | 3,566 | 584 | ||||||||||||||||||
Stock compensation | 1,209 | 1,209 | — | 1,441 | 1,441 | — | ||||||||||||||||||
Add: | ||||||||||||||||||||||||
Ownership share of TNI and MNI EBITDA (50%) | 6,486 | 2,577 | 3,909 | 7,433 | 3,574 | 3,859 | ||||||||||||||||||
Adjusted EBITDA | 90,378 | 72,648 | 17,730 | 96,781 | 75,864 | 20,917 | ||||||||||||||||||
Supplemental cash flow information: | ||||||||||||||||||||||||
Distributions from MNI and TNI | 5,588 | 2,350 | 3,238 | 6,875 | 2,500 | 4,375 | ||||||||||||||||||
Capital expenditures | (3,753 | ) | (3,188 | ) | (565 | ) | (4,281 | ) | (3,131 | ) | (1,150 | ) | ||||||||||||
Cash income tax payments | (6,342 | ) | (6,343 | ) | 1 | (429 | ) | (364 | ) | (65 | ) | |||||||||||||
Interest income | 490 | (7,959 | ) | 8,449 | 335 | (6,144 | ) | 6,479 | ||||||||||||||||
Interest to be settled in cash | (36,256 | ) | (28,075 | ) | (8,181 | ) | (39,837 | ) | (29,941 | ) | (9,896 | ) | ||||||||||||
Debt financing and administrative costs | (1,149 | ) | (1,149 | ) | — | (432 | ) | (432 | ) | — |