Exhibit 99.1
Exhibit 99.1 - Supplemental Financial Information – First fiscal quarter ended December 29, 2019.
4600 E. 53rd St
Davenport, IA 52807
www.lee.net
Quarter Ended (unaudited)
December 29, 2019 | December 30, 2018 | |||||||||||||||||||||||
(in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | Consolidated | Lee Legacy | Pulitzer Inc. | ||||||||||||||||||
Operating revenue: | ||||||||||||||||||||||||
Advertising and marketing services | 65,727 | 45,648 | 20,079 | 75,962 | 52,195 | 23,767 | ||||||||||||||||||
Subscription | 41,694 | 28,242 | 13,452 | 46,268 | 31,972 | 14,296 | ||||||||||||||||||
Other | 14,922 | 13,500 | 1,422 | 13,971 | 12,396 | 1,575 | ||||||||||||||||||
Total operating revenue | 122,343 | 87,390 | 34,953 | 136,201 | 96,563 | 39,638 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Compensation | 43,243 | 31,937 | 11,306 | 47,038 | 35,286 | 11,752 | ||||||||||||||||||
Newsprint and ink | 4,736 | 3,290 | 1,446 | 6,339 | 4,323 | 2,016 | ||||||||||||||||||
Other operating expenses | 48,462 | 30,755 | 17,707 | 49,743 | 30,450 | 19,293 | ||||||||||||||||||
Depreciation and amortization | 6,719 | 4,359 | 2,360 | 7,529 | 4,932 | 2,597 | ||||||||||||||||||
Assets loss (gain) on sales, impairments, and other | 814 | 806 | 8 | (100 | ) | (100 | ) | — | ||||||||||||||||
Restructuring costs and other | 1,632 | 1,400 | 232 | 62 | 44 | 18 | ||||||||||||||||||
Total operating expenses | 105,606 | 72,547 | 33,059 | 110,611 | 74,935 | 35,676 | ||||||||||||||||||
Equity in earnings of associated companies | 1,569 | 658 | 911 | 2,129 | 699 | 1,430 | ||||||||||||||||||
Operating income | 18,306 | 15,501 | 2,805 | 27,719 | 22,327 | 5,392 | ||||||||||||||||||
Non-operating income (expense), net | (10,718 | ) | (13,530 | ) | 2,812 | (12,487 | ) | (15,995 | ) | 3,508 | ||||||||||||||
Income tax expense | 1,871 | 467 | 1,404 | 4,513 | 2,288 | 2,225 | ||||||||||||||||||
Net income | 5,717 | 1,504 | 4,213 | 10,719 | 4,044 | 6,675 |
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 | 5,717 | 1,504 | 4,213 | 10,719 | 4,044 | 6,675 | ||||||||||||||||||
Adjusted to exclude | ||||||||||||||||||||||||
Non-operating expenses (income), net | 10,718 | 13,530 | (2,812 | ) | 12,487 | 15,995 | (3,508 | ) | ||||||||||||||||
Income tax expense | 1,871 | 467 | 1,404 | 4,513 | 2,288 | 2,225 | ||||||||||||||||||
Equity in earnings of TNI and MNI | (1,569 | ) | (658 | ) | (911 | ) | (2,129 | ) | (699 | ) | (1,430 | ) | ||||||||||||
Depreciation and amortization | 6,719 | 4,359 | 2,360 | 7,529 | 4,932 | 2,597 | ||||||||||||||||||
Assets loss (gain) on sales, impairments, and other | 814 | 806 | 8 | (100 | ) | (100 | ) | — | ||||||||||||||||
Restructuring costs and other | 1,632 | 1,400 | 232 | 62 | 44 | 18 | ||||||||||||||||||
Stock compensation | 302 | 302 | — | 463 | 463 | — | ||||||||||||||||||
Add: | ||||||||||||||||||||||||
Ownership share of TNI and MNI EBITDA (50%) | 1,918 | 903 | 1,015 | 2,601 | 1,066 | 1,535 | ||||||||||||||||||
Adjusted EBITDA | 28,122 | 22,613 | 5,509 | 36,145 | 28,033 | 8,112 | ||||||||||||||||||
Supplemental cash flow information | ||||||||||||||||||||||||
Distributions from MNI and TNI | 738 | 0 | 738 | 1,299 | 750 | 549 | ||||||||||||||||||
Capital expenditures | (2,428 | ) | (2,308 | ) | (120 | ) | (1,002 | ) | (752 | ) | (250 | ) | ||||||||||||
Pension Contributions | — | — | — | (650 | ) | — | (650 | ) | ||||||||||||||||
Cash income tax payments | (8 | ) | (8 | ) | — | (21 | ) | (20 | ) | (1 | ) | |||||||||||||
Interest income | 76 | (2,252 | ) | 2,328 | 124 | (2,660 | ) | 2,784 | ||||||||||||||||
Interest to be settled in cash | (11,115 | ) | (8,734 | ) | (2,381 | ) | (12,256 | ) | (9,463 | ) | (2,793 | ) | ||||||||||||
Debt financing and administrative costs | (193 | ) | (193 | ) | — | (8 | ) | (8 | ) | — |