DES MOINES, Iowa, July 27, 2017 /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 110
million American women every month — reported today record fiscal
2017 full year and fourth quarter results.
"We delivered record revenue and profit in fiscal 2017 as we
continue to aggressively execute our multi-platform growth
strategies, including rapid expansion of our highly profitable
digital activities," said Meredith Chairman and CEO Stephen M. Lacy. "Additionally, we
delivered strong cash flow and higher profit margins. This
enabled us to continue successful execution of our Total
Shareholder Return (TSR) strategy."
Fiscal 2017 financial highlights, compared to the prior year,
included:
- Earnings per share were $4.16,
compared to $0.75.
- Excluding special items in both periods, earnings per share
grew to $4.00, an increase of more
than 20 percent. (See Tables 1-5
for supplemental disclosures regarding non-GAAP financial
measures.)
- Operating profit margin grew to 18 percent.
- Total Company revenues grew 4 percent to a record $1.7 billion, and total advertising revenues grew
2 percent to $934 million.
"We expanded our audience across media platforms and launched
new products to strengthen our competitive position with Millennial
consumers and advertisers wanting to reach them," said Meredith President and COO Tom Harty. "We continued to deliver double-digit
gains in digital advertising revenue, which offset print declines
on a comparable basis. Additionally, we generated a record
$63 million of political advertising
revenues and increased net retransmission contribution."
Fiscal 2017 fourth quarter earnings per share were $0.95, compared to a loss of $2.03 per share in the prior-year period.
Excluding special items in both periods, earnings per share were
$1.07, compared to $1.08 in the prior-year period. Fourth
quarter fiscal 2017 total Company revenues increased to
$445 million.
FISCAL 2017 FULL-YEAR REVIEW
Meredith continued to aggressively execute a series of
well-defined strategic initiatives in fiscal 2017 to
generate growth in revenue and operating profit, and increase
shareholder value over time. These included:
- Increasing Meredith's powerful consumer connection -
Consumer engagement expanded across Meredith's media platforms,
including magazine readership, digital and mobile traffic and sales
of branded product at retail.
- Rapidly growing digital, mobile, video and social
platforms - Total Company digital advertising revenues grew 20
percent. National Media Group digital advertising increased more
than 20 percent and represented more than 30 percent of its total
advertising. Local Media Group digital advertising rose more than
15 percent. Traffic across Meredith's digital properties averaged
86 million unique visitors per month, an increase of 8 percent over
the prior year.
- Generating record political advertising revenues -
Meredith's television stations generated $63
million of political advertising revenues, an increase of 43
percent compared to the fiscal 2015 election cycle.
- Expanding Meredith's media portfolio:
-
- In its Local Media Group, Meredith acquired Peachtree TV
(WPCH) in Atlanta, the nation's
10th largest market. With WPCH, Meredith created its fifth
owned-and-operated duopoly. To further strengthen its competitive
position, Meredith added newscasts in Atlanta, Phoenix, Portland, Nashville, Greenville and Flint/Saginaw.
- In its National Media Group, Meredith launched The
Magnolia Journal, an extension of Joanna and Chip Gaines' popular Magnolia brand.
It quickly became the strongest-selling newsstand title in
Meredith's recent history and is currently selling more than
900,000 copies of each issue.
- Successful renewal of key strategic agreements:
-
- In its Local Media Group, Meredith renewed its CBS
affiliation agreements for its stations in Atlanta, Phoenix, Kansas
City and Flint/Saginaw into fiscal 2021. It also extended
its FOX agreements in Portland,
Las Vegas, Greenville, Mobile and Springfield into fiscal 2019.
- In its National Media Group, Meredith renewed its
licensing program with Walmart. This program features more than
3,000 SKUs of Better Homes & Gardens branded products at 5,000
Walmart stores and on walmart.com. In addition, Meredith launched
several new brand licensing programs, including a very
well-received EatingWell line of frozen entrées and a Shape line of
apparel for women.
- Successful execution of its TSR strategy - Meredith
generated TSR of 18 percent in Fiscal 2017. Meredith increased its
dividend by 5.1 percent to $2.08 per
share on an annualized basis, its 24th consecutive year of dividend
growth. The dividend is currently yielding approximately 3.5
percent.
OPERATING GROUP DETAIL
LOCAL MEDIA GROUP
Meredith's Local Media Group includes 17 television stations
reaching 11 percent of 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 700 hours of highly profitable local
news and entertainment content each week. Meredith expects to
continue to grow its Local Media Group organically and through
strategic acquisitions.
Fiscal 2017 Local Media Group operating profit grew 36 percent
to $215 million and EBITDA increased
27 percent to $250 million, compared
to the prior year. Revenues increased 15 percent to
$630 million. All represented
record highs. (See Tables 1-5 for
supplemental disclosures regarding non-GAAP financial
measures.)
Looking more closely at fiscal 2017 performance compared to the
prior year:
- Total advertising revenues grew 7 percent to a record
$414 million, driven by strong demand
for political advertising.
- Political advertising revenues were $63
million, with Meredith generating significant revenues from
stations in the Las Vegas,
St. Louis, Phoenix, Kansas
City and Atlanta
markets.
- Non-political advertising revenues were $352 million, compared to $374 million, due primarily to political
advertising displacement, the Super Bowl moving to FOX from CBS and
the Summer Olympic games on NBC.
- Digital advertising revenues grew more than 15 percent.
Meredith relaunched all of the mobile news, weather and traffic
apps across its station group, yielding record app opens and unique
page views.
- Other revenues and operating expenses increased, primarily due
to growth in retransmission revenues from cable and satellite
television operators, partially offset by higher programming fees
paid to affiliated networks.
Turning to ratings, Meredith delivered strong performance during
the May rating period. Meredith stations in 10 of its 12
markets ranked No. 1 or No. 2 in morning or late news, and Meredith
stations in six of its markets were No. 1 or No. 2 from sign-on to
sign-off.
Fiscal 2017 fourth quarter Local Media Group operating profit
grew 9 percent to $46 million and
EBITDA grew 6 percent to $55 million,
compared to the prior-year period. Revenues increased 8
percent to $152 million.
NATIONAL MEDIA GROUP
Meredith's National Media Group reaches more than 110 million
unduplicated American women every month, including more than 70
percent of 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, parenting and lifestyle.
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 National Media Group operating profit was
$147 million, compared to a loss of
$18 million in the prior year.
Excluding special items in both years, operating profit was
$142 million, compared to
$150 million. Revenues were
$1.1 billion. (See Tables 1-5 for supplemental disclosures
regarding non-GAAP financial measures.)
Looking more closely at fiscal 2017 performance compared to the
prior year:
- Total advertising revenues were $520
million, off 1 percent, but up slightly on a comparable
basis, which excludes MORE and Siempre Mujer
magazines.
- Digital advertising revenue grew more than 20 percent, and
accounted for more than 30 percent of total National Media Group
advertising revenues. Growth was led by highly profitable native,
engagement-based video, and programmatic advertising, along with
shopper marketing.
- Meredith's share of total magazine advertising revenues
increased to 13.3 percent from 12.0 percent, according to the most
recent data from Publishers Information Bureau. The Better Homes
& Gardens, Family Circle, Martha
Stewart and Midwest Living brands were particularly strong,
while the food, media and entertainment, household supplies and
beauty advertising categories were growth leaders.
- Circulation revenues were $322
million, off 2 percent, but flat on a comparable basis.
- Expenses declined 16 percent, and were down 1 percent excluding
special items in both periods as Meredith continued to pursue
operational efficiencies.
Fiscal 2017 fourth quarter National Media Group operating profit
was $34 million, compared to a loss
of $109 million in the prior-year
period. Excluding special items in both periods, fiscal 2017
fourth quarter operating profit was $43
million compared to $52
million. Total revenues were $293 million and advertising revenues were
$135 million.
OTHER FINANCIAL INFORMATION
Cash flow from operations was $219
million. Total debt was $698
million and the weighted average interest rate was 2.8
percent, with $350 million
effectively fixed at low rates. Meredith's debt-to-EBITDA
ratio for the trailing 12 months was 1.9 to 1 (as defined in
Meredith's credit agreements). All metrics are as of
June 30, 2017.
Meredith continues to focus on its successful TSR
strategy. Key elements include:
- Ongoing dividend increases - Meredith raised its regular
stock dividend by 5.1 percent to $2.08 on an annualized basis in January 2017. This marked the 24th
straight year of dividend increases for Meredith, which has paid an
annual dividend for 70 consecutive years.
- Strategic investments to scale the business and increase
shareholder value - Meredith has invested approximately
$1 billion to acquire leading
broadcast, digital and print properties in the last several
years.
- Share repurchases - Meredith's ongoing share repurchase
program has $68 million remaining
under current authorizations as of June 30,
2017.
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 full year and fourth-quarter
comparisons are against the comparable prior-year period unless
otherwise stated.
OUTLOOK
Meredith expects full year fiscal 2018 earnings per share to
range from $3.20 to $3.50.
Meredith will be cycling against a record $63 million (or $0.85 per share) in political advertising
revenues recorded by its Local Media Group in fiscal 2017.
Looking more closely at the first quarter of fiscal 2018
compared to the prior-year quarter, Meredith expects:
- Total Company revenues to be flat to up slightly.
- National Media Group revenues to be flat to up slightly.
- Local Media Group revenues to be flat to down slightly.
- Meredith expects fiscal 2018 first quarter earnings per share
to range from $0.60 to $0.65.
Meredith will be cycling against $16
million (or $0.22 per share)
in political advertising revenues recorded in the prior-year
period.
CONFERENCE CALL WEBCAST
Meredith will host a conference call on July 27, 2017, at 8:30
a.m. EDT to discuss fiscal 2017 and fourth 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 first
quarter and full-year fiscal 2018.
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 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 700 hours of
local news and entertainment content each week, and operate leading
local digital destinations.
Meredith's National Media Group reaches more than 110 million
unduplicated women every month, including more than 70 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 lifestyle through
well-known brands such as Better Homes & Gardens, Allrecipes,
Parents and Shape. Meredith also features robust brand
licensing activities, including more than 3,000 SKUs of branded
products at 5,000 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
The Kraft Heinz Co., Benjamin Moore,
Allergan, TGIFridays and WebMD.
Meredith
Corporation and Subsidiaries
|
Condensed
Consolidated Statements of Earnings (Unaudited)
|
|
|
Three
Months
|
|
Twelve
Months
|
Periods ended June
30,
|
2017
|
|
2016
|
|
2017
|
|
2016
|
(In thousands
except per share data)
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
Advertising
|
$
|
230,388
|
|
|
$
|
231,559
|
|
|
$
|
934,153
|
|
|
$
|
914,202
|
|
Circulation
|
90,164
|
|
|
93,454
|
|
|
321,959
|
|
|
328,599
|
|
All other
|
124,868
|
|
|
110,765
|
|
|
457,249
|
|
|
406,827
|
|
Total
revenues
|
445,420
|
|
|
435,778
|
|
|
1,713,361
|
|
|
1,649,628
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Production,
distribution, and editorial
|
154,224
|
|
|
150,890
|
|
|
602,985
|
|
|
611,872
|
|
Selling, general, and
administrative
|
203,372
|
|
|
195,507
|
|
|
741,188
|
|
|
730,074
|
|
Depreciation and
amortization
|
13,143
|
|
|
14,473
|
|
|
53,892
|
|
|
59,152
|
|
Impairment of
goodwill and other long-lived assets
|
6,173
|
|
|
161,462
|
|
|
6,173
|
|
|
161,462
|
|
Merger termination
fee net of merger-related costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(43,541)
|
|
Total operating
expenses
|
376,912
|
|
|
522,332
|
|
|
1,404,238
|
|
|
1,519,019
|
|
Income (loss) from
operations
|
68,508
|
|
|
(86,554)
|
|
|
309,123
|
|
|
130,609
|
|
Interest expense,
net
|
(4,780)
|
|
|
(4,720)
|
|
|
(18,789)
|
|
|
(20,402)
|
|
Earnings (loss)
before income taxes
|
63,728
|
|
|
(91,274)
|
|
|
290,334
|
|
|
110,207
|
|
Income tax benefit
(expense)
|
(20,359)
|
|
|
759
|
|
|
(101,406)
|
|
|
(76,270)
|
|
Net earnings
(loss)
|
$
|
43,369
|
|
|
$
|
(90,515)
|
|
|
$
|
188,928
|
|
|
$
|
33,937
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share
|
$
|
0.97
|
|
|
$
|
(2.03)
|
|
|
$
|
4.23
|
|
|
$
|
0.76
|
|
Basic average shares
outstanding
|
44,716
|
|
|
44,556
|
|
|
44,617
|
|
|
44,606
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
$
|
0.95
|
|
|
$
|
(2.03)
|
|
|
$
|
4.16
|
|
|
$
|
0.75
|
|
Diluted average
shares outstanding
|
45,533
|
|
|
44,556
|
|
|
45,447
|
|
|
45,357
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$
|
0.5200
|
|
|
$
|
0.4950
|
|
|
$
|
2.0300
|
|
|
$
|
1.9050
|
|
Meredith
Corporation and Subsidiaries
|
Segment
Information (Unaudited)
|
|
|
Three
Months
|
|
Twelve
Months
|
Periods ended June
30,
|
2017
|
|
2016
|
|
2017
|
|
2016
|
(In
thousands)
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
National
media
|
|
|
|
|
|
|
|
Advertising
|
$
|
135,095
|
|
|
$
|
136,750
|
|
|
$
|
520,134
|
|
|
$
|
527,051
|
|
Circulation
|
90,164
|
|
|
93,454
|
|
|
321,959
|
|
|
328,599
|
|
Other
revenues
|
67,952
|
|
|
64,410
|
|
|
241,107
|
|
|
245,533
|
|
Total national
media
|
293,211
|
|
|
294,614
|
|
|
1,083,200
|
|
|
1,101,183
|
|
Local
media
|
|
|
|
|
|
|
|
Non-political
advertising
|
90,883
|
|
|
90,298
|
|
|
351,506
|
|
|
374,104
|
|
Political
advertising
|
4,410
|
|
|
4,511
|
|
|
62,513
|
|
|
13,047
|
|
Other
revenues
|
56,916
|
|
|
46,355
|
|
|
216,142
|
|
|
161,294
|
|
Total local
media
|
152,209
|
|
|
141,164
|
|
|
630,161
|
|
|
548,445
|
|
Total
revenues
|
$
|
445,420
|
|
|
$
|
435,778
|
|
|
$
|
1,713,361
|
|
|
$
|
1,649,628
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
|
|
|
|
|
|
National
media
|
$
|
34,359
|
|
|
$
|
(108,860)
|
|
|
$
|
146,541
|
|
|
$
|
(17,693)
|
|
Local
media
|
46,319
|
|
|
42,563
|
|
|
214,920
|
|
|
158,481
|
|
Unallocated
corporate
|
(12,170)
|
|
|
(20,257)
|
|
|
(52,338)
|
|
|
(10,179)
|
|
Income (loss) from
operations
|
$
|
68,508
|
|
|
$
|
(86,554)
|
|
|
$
|
309,123
|
|
|
$
|
130,609
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
National
media
|
$
|
4,191
|
|
|
$
|
4,637
|
|
|
$
|
17,555
|
|
|
$
|
18,698
|
|
Local
media
|
8,524
|
|
|
9,313
|
|
|
34,818
|
|
|
38,332
|
|
Unallocated
corporate
|
428
|
|
|
523
|
|
|
1,519
|
|
|
2,122
|
|
Total depreciation
and amortization
|
$
|
13,143
|
|
|
$
|
14,473
|
|
|
$
|
53,892
|
|
|
$
|
59,152
|
|
|
|
|
|
|
|
|
|
EBITDA 1
|
|
|
|
|
|
|
|
National
media
|
$
|
38,550
|
|
|
$
|
(104,223)
|
|
|
$
|
164,096
|
|
|
$
|
1,005
|
|
Local
media
|
54,843
|
|
|
51,876
|
|
|
249,738
|
|
|
196,813
|
|
Unallocated
corporate
|
(11,742)
|
|
|
(19,734)
|
|
|
(50,819)
|
|
|
(8,057)
|
|
Total EBITDA
1
|
$
|
81,651
|
|
|
$
|
(72,081)
|
|
|
$
|
363,015
|
|
|
$
|
189,761
|
|
|
1
EBITDA is net earnings (loss) before interest, taxes,
depreciation, and amortization.
|
Meredith
Corporation and Subsidiaries
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
Assets
|
June 30,
2017
|
|
June
30, 2016
|
(In
thousands)
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
22,287
|
|
|
$
|
24,970
|
|
Accounts receivable,
net
|
289,052
|
|
|
273,927
|
|
Inventories
|
21,890
|
|
|
20,678
|
|
Current portion of
subscription acquisition costs
|
144,896
|
|
|
133,338
|
|
Current portion of
broadcast rights
|
7,853
|
|
|
4,220
|
|
Other current
assets
|
19,275
|
|
|
24,023
|
|
Total current
assets
|
505,253
|
|
|
481,156
|
|
Property, plant, and
equipment
|
549,536
|
|
|
530,052
|
|
Less accumulated
depreciation
|
(359,670)
|
|
|
(339,099)
|
|
Net property, plant,
and equipment
|
189,866
|
|
|
190,953
|
|
Subscription
acquisition costs
|
79,740
|
|
|
95,960
|
|
Broadcast
rights
|
21,807
|
|
|
4,565
|
|
Other
assets
|
69,616
|
|
|
57,151
|
|
Intangible assets,
net
|
955,883
|
|
|
913,877
|
|
Goodwill
|
907,458
|
|
|
883,129
|
|
Total
assets
|
$
|
2,729,623
|
|
|
$
|
2,626,791
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Current portion of
long-term debt
|
$
|
62,500
|
|
|
$
|
75,000
|
|
Current portion of
long-term broadcast rights payable
|
9,206
|
|
|
4,649
|
|
Accounts
payable
|
66,598
|
|
|
82,107
|
|
Accrued expenses and
other liabilities
|
116,907
|
|
|
116,777
|
|
Current portion of
unearned subscription revenues
|
204,459
|
|
|
199,359
|
|
Total current
liabilities
|
459,670
|
|
|
477,892
|
|
Long-term
debt
|
635,737
|
|
|
618,506
|
|
Long-term broadcast
rights payable
|
22,454
|
|
|
5,524
|
|
Unearned subscription
revenues
|
106,506
|
|
|
128,534
|
|
Deferred income
taxes
|
384,726
|
|
|
336,346
|
|
Other noncurrent
liabilities
|
124,558
|
|
|
170,946
|
|
Total
liabilities
|
1,733,651
|
|
|
1,737,748
|
|
Shareholders'
equity
|
|
|
|
Common
stock
|
39,433
|
|
|
39,272
|
|
Class B
stock
|
5,119
|
|
|
5,284
|
|
Additional paid-in
capital
|
54,726
|
|
|
54,282
|
|
Retained
earnings
|
915,703
|
|
|
818,706
|
|
Accumulated other
comprehensive loss
|
(19,009)
|
|
|
(28,501)
|
|
Total
shareholders' equity
|
995,972
|
|
|
889,043
|
|
Total liabilities
and shareholders' equity
|
$
|
2,729,623
|
|
|
$
|
2,626,791
|
|
Meredith
Corporation and Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
Years ended June
30,
|
2017
|
|
2016
|
(In
thousands)
|
|
|
|
Net cash provided
by operating activities
|
$
|
219,346
|
|
|
$
|
226,597
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisitions of and
investments in businesses
|
(84,400)
|
|
|
(8,186)
|
|
Additions to
property, plant, and equipment
|
(34,785)
|
|
|
(25,035)
|
|
Proceeds from
disposition of assets
|
1,500
|
|
|
1,767
|
|
Net cash used in
investing activities
|
(117,685)
|
|
|
(31,454)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
issuance of long-term debt
|
380,000
|
|
|
167,500
|
|
Repayments of
long-term debt
|
(374,375)
|
|
|
(267,500)
|
|
Dividends
paid
|
(91,931)
|
|
|
(86,090)
|
|
Purchases of Company
stock
|
(53,399)
|
|
|
(31,080)
|
|
Proceeds from common
stock issued
|
38,061
|
|
|
20,879
|
|
Payment of
acquisition related contingent consideration
|
(8,000)
|
|
|
(800)
|
|
Excess tax benefits
from share-based payments
|
6,765
|
|
|
4,241
|
|
Other
|
(1,465)
|
|
|
(156)
|
|
Net cash used in
financing activities
|
(104,344)
|
|
|
(193,006)
|
|
Net increase
(decrease) in cash and cash equivalents
|
(2,683)
|
|
|
2,137
|
|
Cash and cash
equivalents at beginning of year
|
24,970
|
|
|
22,833
|
|
Cash and cash
equivalents at end of year
|
$
|
22,287
|
|
|
$
|
24,970
|
|
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
June 30, 2017
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In thousands
except per share data)
|
|
|
|
|
Operating
profit
|
$
|
34,359
|
|
$
|
46,319
|
|
$
|
(12,170)
|
|
$
|
68,508
|
|
Special
items
|
|
|
|
|
Write-down of
contingent consideration payable
|
(390)
|
|
—
|
|
—
|
|
(390)
|
|
Severance and related
benefit costs
|
3,052
|
|
1,233
|
|
—
|
|
4,285
|
|
Write-down of
impaired assets
|
7,194
|
|
—
|
|
—
|
|
7,194
|
|
Reversal of
previously accrued restructuring costs
|
(1,536)
|
|
—
|
|
(387)
|
|
(1,923)
|
|
Total special
items
|
8,320
|
|
1,233
|
|
(387)
|
|
9,166
|
|
Operating profit
excluding special items (non-GAAP)
|
$
|
42,679
|
|
$
|
47,552
|
|
$
|
(12,557)
|
|
$
|
77,674
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
|
0.95
|
|
Per share impact of
special items
|
0.12
|
|
Earnings per share
excluding special items (non-GAAP)
|
$
|
1.07
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended June 30, 2017
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In thousands
except per share data)
|
|
|
|
|
Operating
profit
|
$
|
146,541
|
|
$
|
214,920
|
|
$
|
(52,338)
|
|
$
|
309,123
|
|
Special
items
|
|
|
|
|
Write-down of
contingent consideration payable
|
(19,970)
|
|
—
|
|
—
|
|
(19,970)
|
|
Severance and related
benefit costs
|
9,747
|
|
1,678
|
|
438
|
|
11,863
|
|
Write-down of
impaired assets
|
7,194
|
|
1,678
|
|
—
|
|
8,872
|
|
Reversal of
previously accrued restructuring costs
|
(1,536)
|
|
—
|
|
(387)
|
|
(1,923)
|
|
Other
|
397
|
|
—
|
|
—
|
|
397
|
|
Total special
items
|
(4,168)
|
|
3,356
|
|
51
|
|
(761)
|
|
Operating profit
excluding special items (non-GAAP)
|
$
|
142,373
|
|
$
|
218,276
|
|
$
|
(52,287)
|
|
$
|
308,362
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
|
4.16
|
|
Per share impact of
special items
|
|
Per share impact of
the resolution of certain federal and state tax matters
|
(0.15)
|
|
Per share impact of
special items of $761 ($468 after tax)
|
(0.01)
|
|
Total per share
impact of special items
|
(0.16)
|
|
Earnings per share
excluding special items (non-GAAP)
|
$
|
4.00
|
|
Table
2
|
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
June 30, 2016
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In thousands
except per share data)
|
|
|
|
|
Operating profit
(loss)
|
$
|
(108,860)
|
|
$
|
42,563
|
|
$
|
(20,257)
|
|
$
|
(86,554)
|
|
Special
items
|
|
|
|
|
Write-down of
impaired assets
|
155,823
|
|
—
|
|
5,639
|
|
161,462
|
|
Pension settlement
charge
|
3,294
|
|
1,889
|
|
403
|
|
5,586
|
|
Severance and related
benefit costs
|
2,032
|
|
360
|
|
—
|
|
2,392
|
|
Reversal of
previously accrued restructuring costs
|
(643)
|
|
(1,021)
|
|
—
|
|
(1,664)
|
|
Total special
items
|
160,506
|
|
1,228
|
|
6,042
|
|
167,776
|
|
Operating profit
excluding special items (non-GAAP)
|
$
|
51,646
|
|
$
|
43,791
|
|
$
|
(14,215)
|
|
$
|
81,222
|
|
|
|
|
|
|
Diluted loss per
share
|
$
|
(2.03)
|
|
Per share impact of
special items
|
3.11
|
|
Earnings per share
excluding special items (non-GAAP)
|
$
|
1.08
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended June 30, 2016
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In thousands
except per share data)
|
|
|
|
|
Operating profit
(loss)
|
$
|
(17,693)
|
|
$
|
158,481
|
|
$
|
(10,179)
|
|
$
|
130,609
|
|
Special
items
|
|
|
|
|
Write-down of
impaired assets
|
155,823
|
|
—
|
|
5,639
|
|
161,462
|
|
Merger termination
fee net of merger-related costs
|
—
|
|
—
|
|
(43,541)
|
|
(43,541)
|
|
Severance and related
benefit costs
|
9,301
|
|
492
|
|
—
|
|
9,793
|
|
Pension settlement
charge
|
3,294
|
|
1,889
|
|
403
|
|
5,586
|
|
Reversal of
previously accrued restructuring costs
|
(1,157)
|
|
(2,091)
|
|
—
|
|
(3,248)
|
|
Other
|
601
|
|
—
|
|
—
|
|
601
|
|
Total special
items
|
167,862
|
|
290
|
|
(37,499)
|
|
130,653
|
|
Operating profit
excluding special items (non-GAAP)
|
$
|
150,169
|
|
$
|
158,771
|
|
$
|
(47,678)
|
|
$
|
261,262
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
|
0.75
|
|
Per share impact of
special items
|
2.55
|
|
Earnings per share
excluding special items (non-GAAP)
|
$
|
3.30
|
|
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
June 30, 2017
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
thousands)
|
|
|
|
|
Revenues
|
$
|
293,211
|
|
$
|
152,209
|
|
$
|
—
|
|
$
|
445,420
|
|
|
|
|
|
|
Net
earnings
|
$
|
43,369
|
|
Net interest
expense
|
4,780
|
|
Income
taxes
|
20,359
|
|
Operating
profit
|
$
|
34,359
|
|
$
|
46,319
|
|
$
|
(12,170)
|
|
68,508
|
|
Depreciation and
amortization
|
4,191
|
|
8,524
|
|
428
|
|
13,143
|
|
EBITDA
|
38,550
|
|
54,843
|
|
(11,742)
|
|
81,651
|
|
Special
items
|
|
|
|
|
Write-down of
contingent consideration payable
|
(390)
|
|
—
|
|
—
|
|
(390)
|
|
Severance and related
benefit costs
|
3,052
|
|
1,233
|
|
—
|
|
4,285
|
|
Write-down of
impaired assets
|
7,194
|
|
—
|
|
—
|
|
7,194
|
|
Reversal of
previously accrued restructuring costs
|
(1,536)
|
|
—
|
|
(387)
|
|
(1,923)
|
|
Total special
items
|
8,320
|
|
1,233
|
|
(387)
|
|
9,166
|
|
Adjusted
EBITDA
|
$
|
46,870
|
|
$
|
56,076
|
|
$
|
(12,129)
|
|
$
|
90,817
|
|
|
|
|
|
|
Segment EBITDA
margin
|
13.1
|
%
|
36.0
|
%
|
|
|
Segment adjusted
EBITDA margin
|
16.0
|
%
|
36.8
|
%
|
|
|
Table 3
continued
|
|
Twelve months
ended June 30, 2017
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
thousands)
|
|
|
|
|
Revenues
|
$
|
1,083,200
|
|
$
|
630,161
|
|
$
|
—
|
|
$
|
1,713,361
|
|
|
|
|
|
|
Net
earnings
|
$
|
188,928
|
|
Net interest
expense
|
18,789
|
|
Income
taxes
|
101,406
|
|
Operating
profit
|
$
|
146,541
|
|
$
|
214,920
|
|
$
|
(52,338)
|
|
309,123
|
|
Depreciation and
amortization
|
17,555
|
|
34,818
|
|
1,519
|
|
53,892
|
|
EBITDA
|
164,096
|
|
249,738
|
|
(50,819)
|
|
363,015
|
|
Special
items
|
|
|
|
|
Write-down of
contingent consideration payable
|
(19,970)
|
|
—
|
|
—
|
|
(19,970)
|
|
Severance and related
benefit costs
|
9,747
|
|
1,678
|
|
438
|
|
11,863
|
|
Write-down of
impaired assets
|
7,194
|
|
1,678
|
|
—
|
|
8,872
|
|
Reversal of
previously accrued restructuring costs
|
(1,536)
|
|
—
|
|
(387)
|
|
(1,923)
|
|
Other
|
397
|
|
—
|
|
—
|
|
397
|
|
Total special
items
|
(4,168)
|
|
3,356
|
|
51
|
|
(761)
|
|
Adjusted
EBITDA
|
$
|
159,928
|
|
$
|
253,094
|
|
$
|
(50,768)
|
|
$
|
362,254
|
|
|
|
|
|
|
Segment EBITDA
margin
|
15.1
|
%
|
39.6
|
%
|
|
|
Segment adjusted
EBITDA margin
|
14.8
|
%
|
40.2
|
%
|
|
|
Table
4
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
EBITDA
|
Consolidated EBITDA,
which is reconciled to net earnings (loss) in the following tables,
is defined as net earnings (loss) before interest, taxes,
depreciation, and amortization.
|
Segment EBITDA is a
measure of segment earnings (loss) 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 (loss) in the following
tables, is defined as net earnings (loss) before interest, taxes,
depreciation, amortization, and special items.
|
Segment adjusted
EBITDA is a measure of segment earnings (loss) before depreciation,
amortization, and special items.
|
Segment adjusted
EBITDA margin is defined as segment adjusted EBITDA divided by
segment revenues.
|
|
Three months ended
June 30, 2016
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
thousands)
|
|
|
|
|
Revenues
|
$
|
294,614
|
|
$
|
141,164
|
|
$
|
—
|
|
$
|
435,778
|
|
|
|
|
|
|
Net
loss
|
$
|
(90,515)
|
|
Net interest
expense
|
4,720
|
|
Income
taxes
|
(759)
|
|
Operating profit
(loss)
|
$
|
(108,860)
|
|
$
|
42,563
|
|
$
|
(20,257)
|
|
(86,554)
|
|
Depreciation and
amortization
|
4,637
|
|
9,313
|
|
523
|
|
14,473
|
|
EBITDA
|
(104,223)
|
|
51,876
|
|
(19,734)
|
|
(72,081)
|
|
Special
items
|
|
|
|
|
Write-down of
impaired assets
|
155,823
|
|
—
|
|
5,639
|
|
161,462
|
|
Pension settlement
charge
|
3,294
|
|
1,889
|
|
403
|
|
5,586
|
|
Severance and related
benefit costs
|
2,032
|
|
360
|
|
—
|
|
2,392
|
|
Reversal of
previously accrued restructuring costs
|
(643)
|
|
(1,021)
|
|
—
|
|
(1,664)
|
|
Total special
items
|
160,506
|
|
1,228
|
|
6,042
|
|
167,776
|
|
Adjusted
EBITDA
|
$
|
56,283
|
|
$
|
53,104
|
|
$
|
(13,692)
|
|
$
|
95,695
|
|
|
|
Segment EBITDA
margin
|
(35.4)
|
%
|
36.7
|
%
|
|
|
Segment adjusted
EBITDA margin
|
19.1
|
%
|
37.6
|
%
|
|
|
Table 4
continued
|
|
Twelve months
ended June 30, 2016
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
thousands)
|
|
|
|
|
Revenues
|
$
|
1,101,183
|
|
$
|
548,445
|
|
$
|
—
|
|
$
|
1,649,628
|
|
|
|
|
|
|
Net
earnings
|
$
|
33,937
|
|
Net interest
expense
|
20,402
|
|
Income
taxes
|
76,270
|
|
Operating profit
(loss)
|
$
|
(17,693)
|
|
$
|
158,481
|
|
$
|
(10,179)
|
|
130,609
|
|
Depreciation and
amortization
|
18,698
|
|
38,332
|
|
2,122
|
|
59,152
|
|
EBITDA
|
1,005
|
|
196,813
|
|
(8,057)
|
|
189,761
|
|
Special
items
|
|
|
|
|
Write-down of
impaired assets
|
155,823
|
|
—
|
|
5,639
|
|
161,462
|
|
Merger termination
fee net of merger-related costs
|
—
|
|
—
|
|
(43,541)
|
|
(43,541)
|
|
Severance and related
benefit costs
|
9,301
|
|
492
|
|
—
|
|
9,793
|
|
Pension settlement
charge
|
3,294
|
|
1,889
|
|
403
|
|
5,586
|
|
Reversal of
previously accrued restructuring costs
|
(1,157)
|
|
(2,091)
|
|
—
|
|
(3,248)
|
|
Other
|
601
|
|
—
|
|
—
|
|
601
|
|
Total special
items
|
167,862
|
|
290
|
|
(37,499)
|
|
130,653
|
|
Adjusted
EBITDA
|
$
|
168,867
|
|
$
|
197,103
|
|
$
|
(45,556)
|
|
$
|
320,414
|
|
|
|
|
|
|
Segment EBITDA
margin
|
0.1
|
%
|
35.9
|
%
|
|
|
Segment adjusted
EBITDA margin
|
15.3
|
%
|
35.9
|
%
|
|
|
Table
5
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Special
Items - The following table shows national media operating
expenses excluding special items and as reported with the
difference being the special items. National media operating
expenses 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.
|
|
Year ended June
30,
|
2017
|
|
2016
|
|
Change
|
(In
thousands)
|
|
|
|
|
|
National media
operating expenses
|
$
|
936,659
|
|
|
$
|
1,118,876
|
|
|
(16)%
|
Special
items
|
|
|
|
|
|
Write-down of
contingent consideration payable
|
19,970
|
|
|
—
|
|
|
|
Severance and related
benefit costs
|
(9,747)
|
|
|
(9,301)
|
|
|
|
Write-down of
impaired assets
|
(7,194)
|
|
|
(155,823)
|
|
|
|
Pension settlement
charge
|
—
|
|
|
(3,294)
|
|
|
|
Reversal of
previously accrued restructuring costs
|
1,536
|
|
|
1,157
|
|
|
|
Other
|
(397)
|
|
|
(601)
|
|
|
|
Total special
items
|
4,168
|
|
|
(167,862)
|
|
|
|
Operating expenses
excluding special items (non-GAAP)
|
$
|
940,827
|
|
|
$
|
951,014
|
|
|
(1)%
|
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SOURCE Meredith Corporation