DES MOINES, Iowa, Oct. 27, 2016 /PRNewswire/ -- Meredith
Corporation (NYSE:MDP; meredith.com) — the leading media and
marketing company with local television brands in large,
fast-growing markets and national brands serving more than 100
million American women — today reported record fiscal 2017 first
quarter earnings of $0.75 per share,
compared to $0.24 in the prior-year
period. Total company revenues increased 4 percent to a
record $400 million, and total
advertising revenues increased 3 percent to $226 million.
Excluding special items in the prior-year period, fiscal 2017
first quarter earnings per share grew 44 percent to $0.75 from $0.52. (See
Tables 1-3 for supplemental disclosures regarding non-GAAP
financial measures.)
"We're off to an excellent start in fiscal 2017, boosted by
strong political advertising performance at our local television
stations, along with double-digit growth in digital advertising
revenues in both the national and local businesses," said Meredith
Chairman and CEO Stephen M.
Lacy.
Looking at Meredith's performance in the first quarter of fiscal
2017 compared to the prior year:
- Local Media Group revenues increased more than 20 percent to
$153 million, while operating profit
grew to $51 million and EBITDA
increased to $60 million, all records
for a fiscal first quarter. Growth was led by strong
political advertising and retransmission revenues.
- Companywide digital advertising revenues grew 16 percent to
a fiscal first quarter record.
- National Media Group total advertising revenues were down
slightly, but were even on a comparable basis. Digital
advertising revenues represented nearly 30 percent of total
National Media Group advertising revenues.
- Consumer engagement expanded across Meredith's media
platforms. Magazine readership continues at an impressive
127 million. Traffic to Meredith's digital and mobile sites
averaged 81 million unique visitors per month, an increase of 13
percent over the prior-year period. In addition, Meredith's
television stations delivered a strong July rating book.
"Looking ahead, we continue to expect to generate record
full-year earnings of $3.50 to $3.80
per share in fiscal 2017, including record second quarter earnings
of between $1.18 to $1.23 per share,"
Lacy said. "Fiscal 2017 second quarter earnings growth is
expected to be driven by a diverse range of business activities,
including robust political advertising revenues, higher
retransmission contribution and strong digital advertising growth
across the Company."
For the first half of fiscal 2017, Meredith expects to generate
political advertising revenues well within its previously stated
range of $40 million to $50 million,
with the final results expected to exceed the prior election
cycle.
OPERATING GROUP DETAIL
LOCAL MEDIA GROUP
Meredith's Local Media Group includes 17 owned or operated
television stations reaching 11 percent of U.S. households.
Meredith's portfolio is concentrated in large, fast-growing
markets, including seven stations in the nation's Top 25 markets
and 13 in the Top 50. Meredith's stations produce nearly 700
hours of local news and entertainment content each week.
Meredith expects to continue to grow its Local Media Group
organically and through strategic acquisitions.
Fiscal 2017 first quarter Local Media Group operating profit
grew more than 70 percent to $51
million from $29 million in
the prior-year period. EBITDA grew more than 50 percent to
$60 million from $39 million in the prior year. EBITDA
margin was 39 percent. Revenues increased 21 percent to
$153 million. (See Tables 1-3 for supplemental disclosures
regarding non-GAAP financial measures.)
Looking more closely at fiscal 2017 first quarter
performance:
- Political advertising revenues were $16
million, up 26 percent from the last political cycle in the
first quarter of fiscal 2015. Political spending was
particularly robust in the Las
Vegas, St. Louis,
Phoenix and Kansas City markets, primarily due to very
competitive "down-ballot" races. These include elections for
the U.S. Senate and House, gubernatorial races, and local contests.
Consistent with past election cycles, Presidential election
spending accounted for less than 15 percent of Meredith's political
advertising revenue in the quarter.
- Non-political advertising revenues were $84 million. Meredith experienced political
crowd-out in certain markets, while strong advertiser demand for
the Summer Olympic Games only benefited Meredith's single NBC
affiliate in Nashville.
- Digital advertising revenues grew 22 percent compared to the
prior-year period, as a series of growth strategies continues to
drive higher digital sales across Meredith's station group.
- Other revenues and operating expenses increased compared to the
prior-year period, due primarily to growth in retransmission
revenues from cable and satellite television operators, partially
offset by higher programming fees paid to affiliated networks.
Meredith delivered strong performance in the July 2016 rating book. Nine Meredith
stations ranked number one or two in late news among adults ages
25-54, while seven were number one or two in morning news.
To further strengthen its competitive position, Meredith
recently launched additional newscasts in the Atlanta, Phoenix, Portland, Nashville, Greenville, and Flint/Saginaw markets.
More local programming deepens connections with local viewers and
increases the quantity of higher-priced advertising
inventory. Also, Meredith began implementing a local audience
development initiative designed to increase Millennial audience
engagement with its station brands on social and digital
platforms.
NATIONAL MEDIA GROUP
Meredith's National Media Group reaches more than 100 million
unduplicated American women, and three out of four U.S. Millennial
women. Meredith is a leader in creating content across media
platforms and life stages in key consumer interest areas such as
food, home, parenthood and health. It also features robust
brand licensing activities and innovative business-to-business
marketing solutions provided by Meredith Xcelerated
Marketing. Meredith expects to continue to grow its National
Media Group organically and through strategic acquisitions.
Fiscal 2017 first quarter National Media Group operating profit
was $24 million and revenues were
$247 million. Looking more
closely at National Media Group fiscal 2017 first quarter
performance compared to the prior-year period:
- Total advertising revenues declined slightly to $125 million, but were even on a comparable
basis, which excludes MORE magazine.
- Digital advertising revenue rose 15 percent, and accounted for
nearly 30 percent of total National Media Group advertising
revenues. Growth was led by the Allrecipes, Parents and SHAPE
brands.
- Meredith's share of total magazine advertising revenues
increased to 12 percent from 10.5 percent, according to the most
recent data from Publishers Information Bureau. The SHAPE,
Rachael Ray Every Day and EatingWell
brands posted strong performance. The prescription drug, food
and direct response advertising categories were growth
leaders.
- Total circulation revenues were $69
million compared to $72
million, however profit contribution increased.
Newsstand revenues increased while subscription revenues declined,
due primarily to the closure of MORE magazine and ongoing
efforts to source magazine subscribers from Meredith's own database
instead of external agent sources. This strategy increases
circulation profit but lowers revenue over time. These
factors affecting circulation performance are expected to continue
throughout fiscal 2017.
- Expenses declined 5 percent compared to the prior-year period,
as Meredith continued to pursue operational efficiencies.
Meredith's National Media Group continues to extend its reach to
American consumers and further diversify its revenue streams.
For example:
- Meredith renewed its licensing agreement with Walmart which
features more than 3,000 SKUs of Better Homes and Gardens branded
products at over 4,000 Walmart stores and on Walmart.com.
- Meredith introduced several digital video programs based on its
leading brands, and unveiled a new broadcast television series
based on Allrecipes' Dinner Spinner app that reaches over 90
million U.S. households on the CW Network.
- Meredith launched The Magnolia Journal, a new quarterly
lifestyle magazine from popular television personalities
Chip and Joanna Gaines.
- Meredith launched new brand licensing programs including a line
of frozen foods based on EatingWell; fitness apparel from SHAPE;
and cooking utensils by Allrecipes.
OTHER FINANCIAL INFORMATION
Cash flow from operations grew to $35
million in fiscal 2017 first quarter from $3 million in the prior-year period. Total
debt was $697 million and the
weighted average interest rate was 2.7 percent, with $400 million effectively fixed at low
rates. Meredith's debt-to-EBITDA ratio for the trailing 12
months was 2.1 to 1 (as defined in Meredith's credit
agreements). All metrics are as of September 30, 2016.
Meredith continues to focus on its successful Total Shareholder
Return strategy. Key elements include:
- An annualized dividend of $1.98
per share that's yielding approximately 4 percent based on
yesterday's closing price. Meredith has paid dividends for 69
consecutive years and increased them for 23 years straight.
- An ongoing share repurchase program with $78 million remaining under current
authorizations.
- Strategic investments to scale the business and increase
shareholder value.
All earnings-per-share figures in the text of this release are
diluted. Both basic and diluted earnings per share can be
found in the attached Condensed Consolidated Statements of
Earnings. All fiscal 2017 first quarter comparisons are
against the comparable prior-year period unless otherwise
stated.
OUTLOOK
Meredith continues to expect fiscal 2017
full-year earnings per share to range from $3.50 to $3.80.
Meredith expects fiscal 2017 second quarter earnings per
share to range from $1.18 to $1.23,
compared to $0.72, or $0.80 before special items, recorded in the
prior-year period. (See Table 4 for supplemental
disclosures regarding non-GAAP financial measures.)
Looking more closely at the second quarter of fiscal 2017
compared to the prior-year period, Meredith expects:
- Total Local Media Group revenues to be up approximately 25
percent. This increase includes expected political
advertising revenues of between $27 million
and $32 million, partially offset by weaker non-political
advertising revenues.
- Total National Media Group revenues to be down in the
low-single digits.
- Total Company revenues to be up in the mid- to high-single
digits.
CONFERENCE CALL WEBCAST
Meredith will host a conference call on October 27, 2016, at 11
a.m. EDT to discuss fiscal 2017 first quarter results.
A live webcast will be accessible to the public on the Company's
website, meredith.com, and a replay will be available for two
weeks. A transcript will be available within 48 hours of the
call at meredith.com.
RATIONALE FOR USE AND ACCESS TO NON-GAAP RESULTS
Management uses and presents GAAP and non-GAAP results to
evaluate and communicate its performance. Non-GAAP measures should
not be construed as alternatives to GAAP measures. EBITDA,
adjusted EBITDA, EBITDA margin and adjusted EBITDA margin are
common supplemental measures of performance used by investors and
financial analysts. Management believes that EBITDA provides
an additional analytical tool to clarify the Company's results from
core operations and delineate underlying trends. Management
does not use EBITDA as a measure of liquidity or funds available
for management's discretionary use because it includes certain
contractual and non-discretionary expenditures. Adjusted
EBITDA is defined as EBITDA before special items.
Results excluding special items are supplemental non-GAAP
financial measures. While these adjusted results are not a
substitute for reported results under GAAP, management believes
this information is useful as an aid in further understanding
Meredith's current performance, performance trends and financial
condition. Reconciliations of non-GAAP to GAAP measures are
attached to this press release and available at meredith.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This release contains certain forward-looking statements that
are subject to risks and uncertainties. These statements are
based on management's current knowledge and estimates of factors
affecting the Company and its operations. Statements in this
release that are forward-looking include, but are not limited to,
the Company's revenue and earnings-per-share outlook for second
quarter and full-year fiscal 2017.
Actual results may differ materially from those currently
anticipated. Factors that could adversely affect future
results include, but are not limited to, downturns in national
and/or local economies; a softening of the domestic advertising
market; world, national or local events that could disrupt
broadcast television; increased consolidation among major
advertisers or other events depressing the level of advertising
spending; the unexpected loss or insolvency of one or more major
clients or vendors; the integration of acquired businesses; changes
in consumer reading, purchasing and/or television viewing patterns;
increases in paper, postage, printing, syndicated programming or
other costs; changes in television network affiliation agreements;
technological developments affecting products or methods of
distribution; changes in government regulations affecting the
Company's industries; increases in interest rates; and the
consequences of acquisitions and/or dispositions. The Company
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events or
otherwise.
ABOUT MEREDITH CORPORATION
Meredith Corporation (NYSE: MDP; meredith.com) has been
committed to service journalism for 115 years. Today, Meredith uses
multiple distribution platforms — including broadcast television,
print, digital, mobile and video — to provide consumers with
content they desire and to deliver the messages of its advertising
and marketing partners.
Meredith's Local Media Group includes 17 owned or operated
television stations reaching 11 percent of U.S. households.
Meredith's portfolio is concentrated in large, fast-growing
markets, with seven stations in the nation's Top 25 —
including Atlanta, Phoenix, St.
Louis and Portland — and 13 in Top 50 markets.
Meredith's stations produce nearly 700 hours of local news and
entertainment content each week, and operate leading local digital
destinations.
Meredith's National Media Group reaches more than 100 million
unduplicated women every month, including nearly 75 percent of U.S.
Millennial women. Meredith is the leader in creating and
distributing content across platforms in key consumer interest
areas such as food, home, parenting and health through well-known
brands such as Better Homes and Gardens, Allrecipes, Parents, Shape
and EatingWell. Meredith also features robust brand licensing
activities, including more than 3,000 SKUs of branded products at
4,000 Walmart stores across the U.S. and at walmart.com.
Meredith Xcelerated Marketing is an award-winning, strategic and
creative agency that provides fully integrated marketing solutions
for many of the world's top brands, including Kraft, Lowe's,
TGIFriday's and NBC Universal.
Meredith's balanced portfolio consistently generates substantial
free-cash flow, and the Company is committed to growing Total
Shareholder Return through dividend payments, share repurchases and
strategic business investments. Meredith's current annualized
dividend of $1.98 per share yields
approximately 4 percent. Meredith has paid a dividend for 69
straight years and increased it for 23 consecutive years.
Meredith
Corporation and Subsidiaries
|
Condensed
Consolidated Statements of Earnings (Unaudited)
|
|
Three months ended
September 30,
|
2016
|
|
2015
|
(In thousands
except per share data)
|
|
|
|
Revenues
|
|
|
|
Advertising
|
$
|
225,889
|
|
|
$
|
218,670
|
|
Circulation
|
68,668
|
|
|
72,175
|
|
All other
|
105,322
|
|
|
93,821
|
|
Total
revenues
|
399,879
|
|
|
384,666
|
|
Operating
expenses
|
|
|
|
Production,
distribution, and editorial
|
150,228
|
|
|
153,178
|
|
Selling, general, and
administrative
|
174,993
|
|
|
174,730
|
|
Depreciation and
amortization
|
13,896
|
|
|
15,080
|
|
Merger-related
costs
|
—
|
|
|
12,666
|
|
Total operating
expenses
|
339,117
|
|
|
355,654
|
|
Income from
operations
|
60,762
|
|
|
29,012
|
|
Interest expense,
net
|
(4,749)
|
|
|
(5,313)
|
|
Earnings before
income taxes
|
56,013
|
|
|
23,699
|
|
Income
taxes
|
(22,040)
|
|
|
(12,670)
|
|
Net
earnings
|
$
|
33,973
|
|
|
$
|
11,029
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.76
|
|
|
$
|
0.25
|
|
Basic average shares
outstanding
|
44,558
|
|
|
44,612
|
|
|
|
|
|
Diluted earnings
per share
|
$
|
0.75
|
|
|
$
|
0.24
|
|
Diluted average
shares outstanding
|
45,484
|
|
|
45,366
|
|
|
|
|
|
Dividends paid per
share
|
$
|
0.4950
|
|
|
$
|
0.4575
|
|
Meredith
Corporation and Subsidiaries
|
Segment
Information (Unaudited)
|
|
Three months ended
September 30,
|
2016
|
|
2015
|
(In
thousands)
|
|
|
|
Revenues
|
|
|
|
National
media
|
|
|
|
Advertising
|
$
|
125,352
|
|
|
$
|
127,240
|
|
Circulation
|
68,668
|
|
|
72,175
|
|
Other
revenues
|
53,273
|
|
|
58,784
|
|
Total national
media
|
247,293
|
|
|
258,199
|
|
Local
media
|
|
|
|
Non-political
advertising
|
84,184
|
|
|
89,310
|
|
Political
advertising
|
16,353
|
|
|
2,120
|
|
Other
revenues
|
52,049
|
|
|
35,037
|
|
Total local
media
|
152,586
|
|
|
126,467
|
|
Total
revenues
|
$
|
399,879
|
|
|
$
|
384,666
|
|
|
|
|
|
Operating
profit
|
|
|
|
National
media
|
$
|
24,111
|
|
|
$
|
22,803
|
|
Local
media
|
50,622
|
|
|
29,327
|
|
Unallocated
corporate
|
(13,971)
|
|
|
(23,118)
|
|
Income from
operations
|
$
|
60,762
|
|
|
$
|
29,012
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
National
media
|
$
|
4,518
|
|
|
$
|
4,565
|
|
Local
media
|
8,990
|
|
|
9,978
|
|
Unallocated
corporate
|
388
|
|
|
537
|
|
Total depreciation
and amortization
|
$
|
13,896
|
|
|
$
|
15,080
|
|
|
|
|
|
EBITDA 1
|
|
|
|
National
media
|
$
|
28,629
|
|
|
$
|
27,368
|
|
Local
media
|
59,612
|
|
|
39,305
|
|
Unallocated
corporate
|
(13,583)
|
|
|
(22,581)
|
|
Total EBITDA
1
|
$
|
74,658
|
|
|
$
|
44,092
|
|
|
1
EBITDA is net earnings before interest, taxes, depreciation, and
amortization.
|
Meredith
Corporation and Subsidiaries
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
Assets
|
September 30,
2016
|
|
June 30,
2016
|
(In
thousands)
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
32,128
|
|
|
$
|
24,970
|
|
Accounts receivable,
net
|
273,387
|
|
|
273,927
|
|
Inventories
|
21,931
|
|
|
20,678
|
|
Current portion of
subscription acquisition costs
|
133,917
|
|
|
133,338
|
|
Current portion of
broadcast rights
|
14,827
|
|
|
4,220
|
|
Other current
assets
|
25,525
|
|
|
24,023
|
|
Total current
assets
|
501,715
|
|
|
481,156
|
|
Property, plant, and
equipment
|
530,369
|
|
|
530,052
|
|
Less accumulated
depreciation
|
(346,478)
|
|
|
(339,099)
|
|
Net property, plant,
and equipment
|
183,891
|
|
|
190,953
|
|
Subscription
acquisition costs
|
96,968
|
|
|
95,960
|
|
Broadcast
rights
|
4,900
|
|
|
4,565
|
|
Other
assets
|
56,984
|
|
|
57,151
|
|
Intangible assets,
net
|
909,093
|
|
|
913,877
|
|
Goodwill
|
883,129
|
|
|
883,129
|
|
Total
assets
|
$
|
2,636,680
|
|
|
$
|
2,626,791
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Current portion of
long-term debt
|
$
|
75,000
|
|
|
$
|
75,000
|
|
Current portion of
long-term broadcast rights payable
|
15,795
|
|
|
4,649
|
|
Accounts
payable
|
74,496
|
|
|
82,107
|
|
Accrued expenses and
other liabilities
|
111,094
|
|
|
116,777
|
|
Current portion of
unearned subscription revenues
|
198,780
|
|
|
199,359
|
|
Total current
liabilities
|
475,165
|
|
|
477,892
|
|
Long-term
debt
|
622,402
|
|
|
618,506
|
|
Long-term broadcast
rights payable
|
5,992
|
|
|
5,524
|
|
Unearned subscription
revenues
|
130,162
|
|
|
128,534
|
|
Deferred income
taxes
|
346,297
|
|
|
336,346
|
|
Other noncurrent
liabilities
|
152,221
|
|
|
170,946
|
|
Total
liabilities
|
1,732,239
|
|
|
1,737,748
|
|
Shareholders'
equity
|
|
|
|
Common
stock
|
39,276
|
|
|
39,272
|
|
Class B
stock
|
5,258
|
|
|
5,284
|
|
Additional paid-in
capital
|
56,155
|
|
|
54,282
|
|
Retained
earnings
|
830,247
|
|
|
818,706
|
|
Accumulated other
comprehensive loss
|
(26,495)
|
|
|
(28,501)
|
|
Total
shareholders' equity
|
904,441
|
|
|
889,043
|
|
Total liabilities
and shareholders' equity
|
$
|
2,636,680
|
|
|
$
|
2,626,791
|
|
Meredith
Corporation and Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
Three months ended
September 30,
|
2016
|
|
2015
|
(In
thousands)
|
|
|
|
Net cash provided
by operating activities
|
$
|
35,360
|
|
|
$
|
2,829
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Additions to
property, plant, and equipment
|
(2,232)
|
|
|
(1,840)
|
|
Proceeds from
disposition of assets
|
—
|
|
|
1,767
|
|
Net cash used in
investing activities
|
(2,232)
|
|
|
(73)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
issuance of long-term debt
|
20,000
|
|
|
47,500
|
|
Repayments of
long-term debt
|
(16,250)
|
|
|
(23,125)
|
|
Dividends
paid
|
(22,432)
|
|
|
(20,668)
|
|
Purchases of Company
stock
|
(18,378)
|
|
|
(5,738)
|
|
Proceeds from common
stock issued
|
13,019
|
|
|
5,026
|
|
Payment of
acquisition related contingent consideration
|
(4,000)
|
|
|
—
|
|
Excess tax benefits
from share-based payments
|
2,071
|
|
|
1,356
|
|
Net cash provided by
(used in) financing activities
|
(25,970)
|
|
|
4,351
|
|
Net increase in cash
and cash equivalents
|
7,158
|
|
|
7,107
|
|
Cash and cash
equivalents at beginning of period
|
24,970
|
|
|
22,833
|
|
Cash and cash
equivalents at end of period
|
$
|
32,128
|
|
|
$
|
29,940
|
|
Table
1
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Special
Items - The following tables show results of operations
excluding special items and as reported with the difference being
the special items. Results of operations excluding special items
are non-GAAP measures. Management's rationale for presenting
non-GAAP measures is included in the text of this earnings
release.
|
|
|
Three months ended
September 30, 2015
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In thousands
except per share data)
|
|
|
|
|
Operating profit
excluding special items (non-GAAP)
|
$
|
26,037
|
|
$
|
28,389
|
|
$
|
(10,452)
|
|
$
|
43,974
|
|
Special
items
|
|
|
|
|
Merger-related
costs
|
—
|
|
—
|
|
(12,666)
|
|
(12,666)
|
|
Severance and related
benefit costs
|
(3,234)
|
|
(132)
|
|
—
|
|
(3,366)
|
|
Reversal of
previously accrued restructuring costs
|
—
|
|
1,070
|
|
—
|
|
1,070
|
|
Total special
items
|
(3,234)
|
|
938
|
|
(12,666)
|
|
(14,962)
|
|
Operating
profit
|
$
|
22,803
|
|
$
|
29,327
|
|
$
|
(23,118)
|
|
$
|
29,012
|
|
|
|
|
|
|
Earnings per share
excluding special items (non-GAAP)
|
$
|
0.52
|
|
Per share impact of
special items of $14,962 ($12,569 after tax)
|
(0.28)
|
|
Diluted earnings
per share
|
$
|
0.24
|
|
Table
2
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
EBITDA
Consolidated EBITDA,
which is reconciled to net earnings in the following tables, is
defined as net earnings before interest, taxes, depreciation, and
amortization.
Segment EBITDA is a
measure of segment earnings before depreciation and
amortization.
Segment EBITDA margin
is defined as segment EBITDA divided by segment
revenues.
|
|
Three months ended
September 30, 2016
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
thousands)
|
|
|
|
|
Revenues
|
$
|
247,293
|
|
$
|
152,586
|
|
$
|
—
|
|
$
|
399,879
|
|
|
|
|
|
|
Operating
profit
|
$
|
24,111
|
|
$
|
50,622
|
|
$
|
(13,971)
|
|
$
|
60,762
|
|
Depreciation and
amortization
|
4,518
|
|
8,990
|
|
388
|
|
13,896
|
|
EBITDA
|
28,629
|
|
59,612
|
|
(13,583)
|
|
74,658
|
|
Less
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
(13,896)
|
|
Net interest
expense
|
|
|
|
(4,749)
|
|
Income
taxes
|
|
|
|
(22,040)
|
|
Net
earnings
|
|
|
|
$
|
33,973
|
|
|
|
|
|
|
Segment EBITDA
margin
|
11.6
|
%
|
39.1
|
%
|
|
|
Table
3
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
EBITDA
Consolidated EBITDA,
which is reconciled to net earnings in the following tables, is
defined as net earnings before interest, taxes, depreciation, and
amortization.
Segment EBITDA is a
measure of segment earnings before depreciation and
amortization.
Segment EBITDA margin
is defined as segment EBITDA divided by segment
revenues.
|
|
Adjusted
EBITDA
Consolidated adjusted
EBITDA, which is reconciled to net earnings in the following
tables, is defined as net earnings before interest, taxes,
depreciation, amortization, and special items.
Segment adjusted
EBITDA is a measure of segment earnings before depreciation,
amortization, and special items.
Segment adjusted
EBITDA margin is defined as segment adjusted EBITDA divided by
segment revenues.
|
|
Three months ended
September 30, 2015
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
thousands)
|
|
|
|
|
Revenues
|
$
|
258,199
|
|
$
|
126,467
|
|
$
|
—
|
|
$
|
384,666
|
|
|
|
|
|
|
Operating
profit
|
$
|
22,803
|
|
$
|
29,327
|
|
$
|
(23,118)
|
|
$
|
29,012
|
|
Depreciation and
amortization
|
4,565
|
|
9,978
|
|
537
|
|
15,080
|
|
EBITDA
|
27,368
|
|
39,305
|
|
(22,581)
|
|
44,092
|
|
Special
items
|
|
|
|
|
Merger-related
costs
|
—
|
|
—
|
|
12,666
|
|
12,666
|
|
Severance and related
benefit costs
|
3,234
|
|
132
|
|
—
|
|
3,366
|
|
Reversal of
previously accrued restructuring costs
|
—
|
|
(1,070)
|
|
—
|
|
(1,070)
|
|
Total special
items
|
3,234
|
|
(938)
|
|
12,666
|
|
14,962
|
|
Adjusted
EBITDA
|
30,602
|
|
38,367
|
|
(9,915)
|
|
59,054
|
|
Less
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
(15,080)
|
|
Special
items
|
|
|
|
(14,962)
|
|
Net interest
expense
|
|
|
|
(5,313)
|
|
Income
taxes
|
|
|
|
(12,670)
|
|
Net
earnings
|
|
|
|
$
|
11,029
|
|
|
|
|
|
|
Segment EBITDA
margin
|
10.6
|
%
|
31.1
|
%
|
|
|
Segment adjusted
EBITDA margin
|
11.9
|
%
|
30.3
|
%
|
|
|
Table
4
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Special
Items - The following table shows diluted earnings per
share excluding special items and as reported with the difference
being the special items. Diluted earnings per share excluding
special items is a non-GAAP measure. Management's rationale for
presenting non-GAAP measures is included in the text of this
earnings release.
|
|
Three months ended
December 31, 2015
|
|
(In thousands
except per share data)
|
|
Earnings per share
excluding special items (non-GAAP)
|
$
|
0.80
|
|
Per share impact of
merger-related costs of $3,457
|
(0.08)
|
|
Per share impact of
severance costs of $1,014
|
(0.01)
|
|
Per share impact of
reversal of previously accrued restructuring costs of
$514
|
0.01
|
|
Diluted earnings
per share
|
$
|
0.72
|
|
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SOURCE Meredith Corporation