Exhibit 99.1
Exhibit 99.1 - Supplemental Financial Information – Fourth fiscal quarter ended September 29, 2019.
4600 E 53rd Street.
Davenport, IA 52807
www.lee.net
Quarter Ended (unaudited)
September 29, 2019 | September 30, 2018 | |||||||||||||||||||||||
(in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | Consolidated | Lee Legacy | Pulitzer Inc. | ||||||||||||||||||
Operating revenue: | ||||||||||||||||||||||||
Advertising and marketing services | 61,282 | 42,846 | 18,436 | 73,695 | 51,702 | 21,993 | ||||||||||||||||||
Subscription | 48,726 | 34,012 | 14,714 | 52,703 | 36,904 | 15,799 | ||||||||||||||||||
Other | 13,657 | 12,109 | 1,548 | 13,348 | 11,792 | 1,556 | ||||||||||||||||||
Total operating revenue | 123,665 | 88,967 | 34,698 | 139,746 | 100,398 | 39,348 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Compensation | 42,672 | 31,699 | 10,973 | 49,614 | 37,334 | 12,280 | ||||||||||||||||||
Newsprint and ink | 4,843 | 3,245 | 1,598 | 7,028 | 4,836 | 2,192 | ||||||||||||||||||
Other operating expenses | 47,793 | 29,188 | 18,605 | 50,824 | 30,148 | 20,676 | ||||||||||||||||||
Depreciation and amortization | 7,069 | 4,619 | 2,450 | 7,794 | 5,082 | 2,712 | ||||||||||||||||||
Assets loss (gain) on sales, impairments, and other | 2,676 | 2,361 | 315 | 7,626 | 695 | 6,931 | ||||||||||||||||||
Restructuring costs and other | 6,022 | 3,294 | 2,728 | 1,400 | 1,021 | 379 | ||||||||||||||||||
Total operating expenses | 111,075 | 74,406 | 36,669 | 124,286 | 79,116 | 45,170 | ||||||||||||||||||
Equity in earnings of associated companies | 1,823 | 1,183 | 640 | 3,679 | 2,605 | 1,074 | ||||||||||||||||||
Operating income | 14,413 | 15,744 | (1,331 | ) | 19,139 | 23,887 | (4,748 | ) | ||||||||||||||||
Non-operating income (expense), net | (11,310 | ) | (14,433 | ) | 3,123 | (14,140 | ) | (17,558 | ) | 3,418 | ||||||||||||||
Income tax expense (benefit) | 1,758 | 1,310 | 448 | 561 | 1,044 | (483 | ) | |||||||||||||||||
Net income | 1,345 | 1 | 1,344 | 4,438 | 5,285 | (847 | ) |
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 | 1,345 | 1 | 1,344 | 4,438 | 5,285 | (847 | ) | |||||||||||||||||
Adjusted to exclude | ||||||||||||||||||||||||
Non-operating expenses (income), net | 11,310 | 14,433 | (3,123 | ) | 14,140 | 17,558 | (3,418 | ) | ||||||||||||||||
Income tax expense (benefit) | 1,758 | 1,310 | 448 | 561 | 1,044 | (483 | ) | |||||||||||||||||
Equity in earnings of TNI and MNI | (1,823 | ) | (1,183 | ) | (640 | ) | (3,679 | ) | (2,605 | ) | (1,074 | ) | ||||||||||||
Depreciation and amortization | 7,069 | 4,619 | 2,450 | 7,794 | 5,082 | 2,712 | ||||||||||||||||||
Assets loss (gain) on sales, impairments, and other | 2,676 | 2,361 | 315 | 7,626 | 695 | 6,931 | ||||||||||||||||||
Restructuring costs and other | 6,022 | 3,294 | 2,728 | 1,400 | 1,021 | 379 | ||||||||||||||||||
Stock compensation | 428 | 428 | — | 417 | 417 | — | ||||||||||||||||||
Add: | ||||||||||||||||||||||||
Ownership share of TNI and MNI EBITDA (50%) | 2,325 | 1,580 | 745 | 2,449 | 1,270 | 1,179 | ||||||||||||||||||
Adjusted EBITDA | 31,110 | 26,843 | 4,267 | 35,146 | 29,767 | 5,379 | ||||||||||||||||||
Supplemental cash flow information | ||||||||||||||||||||||||
Distributions from MNI and TNI | 2,007 | 1,000 | 1,007 | 2,339 | 900 | 1,439 | ||||||||||||||||||
Capital expenditures | (2,148 | ) | (1,606 | ) | (542 | ) | (1,744 | ) | (1,529 | ) | (215 | ) | ||||||||||||
Cash income tax payments | (2,097 | ) | (2,097 | ) | — | (35 | ) | (30 | ) | (5 | ) | |||||||||||||
Interest income | 165 | (2,245 | ) | 2,410 | 154 | (2,556 | ) | 2,710 | ||||||||||||||||
Interest to be settled in cash | (11,232 | ) | (8,305 | ) | (2,927 | ) | (13,004 | ) | (10,046 | ) | (2,958 | ) | ||||||||||||
Debt financing and administrative costs | 159 | 159 | — | (4 | ) | (4 | ) | — |
Year Ended (unaudited) | ||||||||||||||||||||||||
September 29, 2019 | September 30, 2018 | |||||||||||||||||||||||
(in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | Consolidated | Lee Legacy | Pulitzer Inc. | ||||||||||||||||||
Operating revenue: | ||||||||||||||||||||||||
Advertising and marketing services | 265,933 | 184,648 | 81,285 | 303,446 | 212,265 | 91,181 | ||||||||||||||||||
Subscription | 186,691 | 129,053 | 57,638 | 195,108 | 135,309 | 59,799 | ||||||||||||||||||
Other | 57,230 | 51,077 | 6,153 | 45,401 | 38,543 | 6,858 | ||||||||||||||||||
Total operating revenue | 509,854 | 364,778 | 145,076 | 543,955 | 386,117 | 157,838 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Compensation | 182,869 | 137,172 | 45,697 | 199,164 | 149,924 | 49,240 | ||||||||||||||||||
Newsprint and ink | 22,237 | 15,172 | 7,065 | 24,949 | 17,591 | 7,358 | ||||||||||||||||||
Other operating expenses | 193,709 | 118,738 | 74,971 | 199,653 | 119,673 | 79,980 | ||||||||||||||||||
Depreciation and amortization | 29,332 | 19,135 | 10,197 | 31,766 | 20,676 | 11,090 | ||||||||||||||||||
Assets loss (gain) on sales, impairments, and other | 2,464 | 2,247 | 217 | 6,429 | (475 | ) | 6,904 | |||||||||||||||||
Restructuring costs and other | 11,635 | 7,118 | 4,517 | 5,550 | 4,587 | 963 | ||||||||||||||||||
Total operating expenses | 442,246 | 299,582 | 142,664 | 467,511 | 311,976 | 155,535 | ||||||||||||||||||
Equity in earnings of associated companies | 7,121 | 2,885 | 4,236 | 9,249 | 4,629 | 4,620 | ||||||||||||||||||
Operating income | 74,729 | 68,081 | 6,648 | 85,693 | 78,770 | 6,923 | ||||||||||||||||||
Non-operating income (expense), net | (50,889 | ) | (64,596 | ) | 13,707 | (54,873 | ) | (67,071 | ) | 12,198 | ||||||||||||||
Income tax expense (benefit) | 7,931 | 2,842 | 5,089 | (16,228 | ) | (23,173 | ) | 6,945 | ||||||||||||||||
Net income | 15,909 | 643 | 15,266 | 47,048 | 34,872 | 12,176 |
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 | 15,909 | 643 | 15,266 | 47,048 | 34,872 | 12,176 | ||||||||||||||||||
Adjusted to exclude | ||||||||||||||||||||||||
Non-operating expenses (income), net | 50,889 | 64,596 | (13,707 | ) | 54,873 | 67,071 | (12,198 | ) | ||||||||||||||||
Income tax expense (benefit) | 7,931 | 2,842 | 5,089 | (16,228 | ) | (23,173 | ) | 6,945 | ||||||||||||||||
Equity in earnings of TNI and MNI | (7,121 | ) | (2,885 | ) | (4,236 | ) | (9,249 | ) | (4,629 | ) | (4,620 | ) | ||||||||||||
Depreciation and amortization | 29,332 | 19,135 | 10,197 | 31,766 | 20,676 | 11,090 | ||||||||||||||||||
Assets loss (gain) on sales, impairments, and other | 2,464 | 2,247 | 217 | 6,429 | (475 | ) | 6,904 | |||||||||||||||||
Restructuring costs and other | 11,635 | 7,118 | 4,517 | 5,550 | 4,587 | 963 | ||||||||||||||||||
Stock compensation | 1,638 | 1,638 | — | 1,857 | 1,857 | — | ||||||||||||||||||
Add: | ||||||||||||||||||||||||
Ownership share of TNI and MNI EBITDA (50%) | 8,811 | 4,157 | 4,654 | 9,883 | 4,845 | 5,038 | ||||||||||||||||||
Adjusted EBITDA | 121,488 | 99,491 | 21,997 | 131,929 | 105,631 | 26,298 | ||||||||||||||||||
Supplemental cash flow information: | ||||||||||||||||||||||||
Distributions from MNI and TNI | 7,595 | 3,350 | 4,245 | 9,214 | 3,400 | 5,814 | ||||||||||||||||||
Capital expenditures | (5,901 | ) | (4,794 | ) | (1,107 | ) | (6,025 | ) | (4,660 | ) | (1,365 | ) | ||||||||||||
Cash income tax payments | (8,439 | ) | (8,440 | ) | 1 | (464 | ) | (396 | ) | (68 | ) | |||||||||||||
Interest income | 655 | (10,204 | ) | 10,859 | 489 | (8,879 | ) | 9,368 | ||||||||||||||||
Interest to be settled in cash | (47,488 | ) | (36,821 | ) | (10,667 | ) | (52,842 | ) | (39,988 | ) | (12,854 | ) | ||||||||||||
Debt financing and administrative costs | (1,773 | ) | (1,773 | ) | — | (437 | ) | (437 | ) | — |