EX-99.1 2 pulitzerandleelegacyfinanc.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1 - Supplemental Financial Information – Fourth fiscal quarter ended September 30, 2018.

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






Quarter Ended (unaudited)
 
 
 
 
 
 
 
 
September 30, 2018
 
September 24,2017
(in thousands)
Consolidated
Lee Legacy
Pulitzer Inc.
 
Consolidated
Lee Legacy
Pulitzer Inc.
Operating revenue:
 
 
 
 
 
 
 
Advertising and marketing services
73,695

51,702

21,993

 
79,544

56,242

23,302

Subscription
52,703

36,904

15,799

 
50,616

35,870

14,746

Other
13,348

11,792

1,556

 
10,052

8,308

1,744

Total operating revenue
139,746

100,398

39,348

 
140,212

100,420

39,792

Operating expenses:
 
 
 
 
 
 
 
Compensation
48,906

37,334

11,572

 
50,645

38,705

11,940

Newsprint and ink
7,028

4,836

2,192

 
5,688

3,859

1,829

Other operating expenses
50,824

30,148

20,676

 
49,647

30,097

19,550

Depreciation and amortization
7,794

5,082

2,712

 
10,288

7,450

2,838

Assets loss (gain) on sales, impairments, and other
7,626

695

6,931

 
2,628

881

1,747

Restructuring costs and other
1,400

1,021

379

 
1,150

1,006

144

Total operating expenses
123,578

79,116

44,462

 
120,046

81,998

38,048

Equity in earnings of associated companies
3,679

2,605

1,074

 
1,575

708

867

Operating income
19,847

23,887

(4,040
)
 
21,741

19,130

2,611

Non-operating income (expense), net
(14,848
)
(17,558
)
2,710

 
(15,882
)
(17,415
)
1,533

Income tax expense (benefit)
561

1,044

(483
)
 
2,358

853

1,505

Net income
4,438

5,285

(847
)
 
3,501

862

2,639


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
4,438

5,285

(847
)
 
3,501

862

2,639

Adjusted to exclude
 
 
 
 
 
 
 
Non-operating expenses (income), net
14,848

17,558

(2,710
)
 
15,882

17,415

(1,533
)
Income tax expense (benefit)
561

1,044

(483
)
 
2,358

853

1,505

Equity in earnings of TNI and MNI
(3,679
)
(2,605
)
(1,074
)
 
(1,575
)
(708
)
(867
)
Depreciation and amortization
7,794

5,082

2,712

 
10,288

7,450

2,838

Assets loss (gain) on sales, impairments, and other
7,626

695

6,931

 
2,628

881

1,747

Restructuring costs and other
1,400

1,021

379

 
1,150

1,006

144

Stock compensation
417

417


 
524

524


Add:
 
 
 
 
 
 
 
Ownership share of TNI and MNI EBITDA (50%)
2,449

1,270

1,179

 
1,985

1,013

972

Adjusted EBITDA
35,854

29,767

6,087

 
36,741

29,296

7,445

 
 
 
 
 
 
 
 
Supplemental cash flow information
 
 
 
 
 
Distributions from MNI and TNI
2,339

900

1,439

 
1,762

750

1,012

Capital expenditures
(1,744
)
(1,529
)
(215
)
 
(850
)
(802
)
(48
)
Pension contributions
(4,210
)

(4,210
)
 
(106
)
(106
)

Cash income tax payments
(35
)
(30
)
(5
)
 
(134
)
(164
)
30

Interest income
154

(2,556
)
2,710

 
111

(1,422
)
1,533

Interest to be settled in cash
(13,004
)
(10,046
)
(2,958
)
 
(13,654
)
(9,969
)
(3,685
)
Debt financing and administrative costs
(4
)
(4
)

 
(2
)
(2
)







Year Ended (unaudited)
 
 
 
 
 
 
 
 
September 30, 2018
 
September 24,2017
(in thousands)
Consolidated
Lee Legacy
Pulitzer Inc.
 
Consolidated
Lee Legacy
Pulitzer Inc.
Operating revenue:
 
 
 
 
 
 
 
Advertising and marketing services
303,446

212,265

91,181

 
331,360

231,342

100,018

Subscription
195,108

135,309

59,799

 
191,922

133,993

57,929

Other
45,401

38,543

6,858

 
43,661

36,136

7,525

Total operating revenue
543,955

386,117

157,838

 
566,943

401,471

165,472

Operating expenses:
 
 
 
 
 
 
 
Compensation
196,334

149,924

46,410

 
209,692

160,598

49,094

Newsprint and ink
24,949

17,591

7,358

 
24,904

17,274

7,630

Other operating expenses
199,653

119,673

79,980

 
199,754

118,792

80,962

Depreciation and amortization
31,766

20,676

11,090

 
41,282

29,643

11,639

Assets loss (gain) on sales, impairments, and other
6,429

(475
)
6,904

 
(1,150
)
(2,838
)
1,688

Restructuring costs and other
5,550

4,587

963

 
7,523

6,293

1,230

Total operating expenses
464,681

311,976

152,705

 
482,005

329,762

152,243

Equity in earnings of associated companies
9,249

4,629

4,620

 
7,609

2,954

4,655

Operating income
88,523

78,770

9,753

 
92,547

74,663

17,884

Non-operating income (expense), net
(57,703
)
(67,071
)
9,368

 
(52,331
)
(57,049
)
4,718

Income tax expense (benefit)
(16,228
)
(23,173
)
6,945

 
11,611

3,402

8,209

Net income
47,048

34,872

12,176

 
28,605

14,212

14,393


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
47,048

34,872

12,176

 
28,605

14,212

14,393

Adjusted to exclude
 
 
 
 
 
 
 
Non-operating expenses (income), net
57,703

67,071

(9,368
)
 
52,331

57,049

(4,718
)
Income tax expense (benefit)
(16,228
)
(23,173
)
6,945

 
11,611

3,402

8,209

Equity in earnings of TNI and MNI
(9,249
)
(4,629
)
(4,620
)
 
(7,609
)
(2,954
)
(4,655
)
Depreciation and amortization
31,766

20,676

11,090

 
41,282

29,643

11,639

Assets loss (gain) on sales, impairments, and other
6,429

(475
)
6,904

 
(1,150
)
(2,838
)
1,688

Restructuring costs and other
5,550

4,587

963

 
7,523

6,293

1,230

Stock compensation
1,857

1,857


 
2,088

2,088


Add:
 
 
 
 
 
 
 
Ownership share of TNI and MNI EBITDA (50%)
9,883

4,845

5,038

 
9,927

4,854

5,073

Adjusted EBITDA
134,759

105,631

29,128

 
144,608

111,749

32,859

 
 
 
 
 
 
 
 
Supplemental cash flow information:
 
 
 
 
 
Distributions from MNI and TNI
9,214

3,400

5,814

 
8,144

3,500

4,644

Capital expenditures
(6,025
)
(4,660
)
(1,365
)
 
(4,078
)
(3,711
)
(367
)
Pension contributions
(4,990
)
(40
)
(4,950
)
 
(106
)
(106
)

Cash income tax payments
(464
)
(396
)
(68
)
 
(1,214
)
(1,215
)
1

Interest income
489

(8,879
)
9,368

 
372

(4,346
)
4,718

Interest to be settled in cash
(52,842
)
(39,988
)
(12,854
)
 
(57,573
)
(42,268
)
(15,305
)
Debt financing and administrative costs
(437
)
(437
)

 
(373
)
(373
)