DES MOINES, Iowa, Sept. 5, 2019 /PRNewswire/ -- Meredith
Corporation (NYSE: MDP; meredith.com) – the leading media and
marketing company with national brands serving 115 million
unduplicated American women, including nearly 90 percent of U.S.
millennial women; 150 million digital monthly unique visitors; a
paid subscription base of 42 million; and 30 million viewers via 17
local television stations in fast-growing markets – today reported
fiscal 2019 fourth quarter and full year results.
"Our National Media Group delivered improved comparable
advertising performance in every quarter of fiscal 2019, and our
Local Media Group achieved another year of record performance,"
said Meredith Corporation President and Chief Executive Officer
Tom Harty. "Of particular note, our
television station group recorded an all-time high of $103 million of political advertising revenues,
along with continued double-digit growth in retransmission
revenue.
"Additionally, we made significant progress in fiscal 2019
executing on our plan to strategically integrate the assets
acquired from Time Inc. and assemble the best portfolio of national
media brands in the industry," Harty continued. "We focused on
implementing Meredith's proven strategies and disciplined approach
across our portfolio, which drove growth in total comparable
National Media Group advertising revenues in the fourth quarter of
fiscal 2019 including double-digit growth in digital advertising
revenues and growth in print advertising revenues at the legacy
Time Inc. titles. While it has taken longer than we initially
expected to elevate the print and digital performance of the Time
Inc. assets, we remain confident in the long-term vision and
potential of the National Media Group brand portfolio.
"Finally, we continued Meredith's long-term commitment to
returning cash to shareholders by increasing our dividend by 5.5
percent. This represents a current dividend yield of 5.2 percent,
which is more than double the average of the S&P 500. We
accomplished this while still strengthening our balance sheet by
paying down $825 million of debt,"
Harty concluded.
Looking more closely at fiscal 2019 full-year results
compared to the prior year:
- Total Company revenues from continuing operations were up more
than 40 percent to a record $3.2
billion.
- Total Company advertising related and consumer related revenues
recorded double-digit growth.
- Earnings from continuing operations, which includes special
items in both periods, were $129
million, compared to $114
million. Meredith recorded $94
million of net after-tax special items in fiscal 2019,
primarily related to restructuring and integration costs related to
the Time Inc. acquisition, and a non-cash impairment charge related
to certain trademarks. Earnings per share from continuing
operations were $1.12 compared to
$1.79.
- Earnings from continuing operations before special items
increased 51 percent to $223 million,
compared to $148 million, and
increased on a per share basis to $3.19 from $2.54.
(See Tables 1-3 for supplemental
disclosures regarding non-GAAP financial measures.)
- Adjusted EBITDA was $706 million
compared to $423 million. Adjusted
earnings per share increased to $7.24
from $4.67.
Looking more closely at fiscal 2019 fourth quarter results
compared to the prior-year period:
- Total Company revenues from continuing operations were
$786 million, compared to
$799 million.
- Loss from continuing operations was $4
million, or $0.51 per share,
including $62 million of net
after-tax special items, primarily related to restructuring and
integration costs, and a non-cash impairment charge related to
certain trademarks. This compares to fiscal 2018 fourth quarter
earnings from continuing operations of $17
million, or a loss of $0.06
per share, which included $14 million
of net after-tax special items.
- Excluding special items in both periods, earnings from
continuing operations were $58
million compared to $31
million, and increased on a per share basis to $0.85 from $0.25.
- Adjusted EBITDA grew 6 percent to $169
million compared to $160
million. Adjusted earnings per share increased to
$1.79 from $1.31.
Looking ahead to fiscal 2020:
- Meredith expects to deliver an additional $135 million in cost synergies, which would bring
the cumulative total to $565 million
by the end of fiscal 2020.
- In its Local Media Group, Meredith will be cycling against a
record $103 million of political
advertising revenues generated in fiscal 2019, partially offset by
stronger results from retransmission consent fees.
- In its National Media Group, Meredith expects:
-
- Print advertising revenue to return to its historical
performance levels, which equates to mid-single digit
declines.
- Digital advertising revenue to increase in the mid-single
digits.
- Strategic investments in its growing digital advertising and
consumer related activities to drive continued revenue and profit
growth over the long-term.
- Higher production and distribution expenses, including postal
rates.
- Lower contribution from consumer related revenues due primarily
to the number of low-margin magazine subscriptions inside the
legacy Time Inc. brands. Meredith is in the process of
transitioning these to more profitable sources, which will take
time as the opportunity for margin improvement happens when
subscriptions renew.
"Without a doubt, the Time Inc. acquisition has dramatically
improved our competitive position in the marketplace, lifting
Meredith from the #4 player to #1," said Harty. "That said, we
begin fiscal 2020 at a lower profit point than originally expected.
In addition, we are planning strategic investments to further
strengthen our performance and maximize shareholder value over
time. Both of these factors contribute to a reset of our financial
expectations in the outlook we're providing."
NATIONAL MEDIA GROUP DETAIL
Fiscal 2019 National Media Group operating profit increased
nearly 50 percent to $126 million.
Excluding special items, operating profit was $230 million and adjusted EBITDA was $456 million. Revenues were $2.3 billion. Results exclude discontinued
operations (TIME, FORTUNE, Sports Illustrated, FanSided and Viant).
(See Tables 1-3 for supplemental
disclosures regarding non-GAAP financial measures.)
Fiscal 2019 fourth quarter National Media Group operating profit
was $6 million. Excluding special
items, operating profit grew 17 percent to $63 million, adjusted EBITDA was $115 million, and revenues were $588 million.
In fiscal 2019, Meredith's National Media Group continued its
aggressive plan to strategically integrate the brands and
businesses acquired from Time Inc., including:
- Improving the print advertising performance of the acquired
Time Inc. properties to Meredith's historical levels. Meredith
has implemented its proven strategies, standards and discipline
across the legacy Time Inc. portfolio to improve performance,
including aligning it with Meredith's successful sales structure.
While comparable advertising performance lagged Meredith's
expectations in the first half of fiscal 2019, it met expectations
in the second half, including low-single digit print advertising
revenue growth at the legacy Time Inc. titles in the fourth
quarter.
- Growing revenue and raising the profit margins of the
acquired Time Inc. digital properties. Meredith is leveraging
the increased scale of its combined digital portfolio to enhance
sales initiatives. Digital advertising revenue accounted for 34
percent of total National Media Group advertising revenues in
fiscal 2019. Similar to print, digital advertising performance
lagged Meredith's expectations in the first half of fiscal 2019.
However, it met expectations in the second half, including
delivering mid-single digit advertising revenue growth on a
reported basis and low double digit growth on a comparable basis in
the fourth quarter of fiscal 2019.
- Growing high-margin consumer related revenues by leveraging
its expanded brand portfolio. Consumer related revenues
accounted for more than 45 percent of total National Media Group
revenues in fiscal 2019. Of note, Meredith is the leading
participant in the recently launched Apple News+, a new
subscription service that offers 30 Meredith magazines in an
innovative, convenient and curated experience.
- Selling media assets not core to Meredith's business at
attractive multiples. Meredith received $430 million in fiscal 2019 related to the
divestiture of the TIME, FORTUNE and Sports Illustrated
brands.
LOCAL MEDIA GROUP DETAIL
Fiscal 2019 Local Media Group operating profit grew nearly 50
percent to $278 million, adjusted
EBITDA grew more than 40 percent to $318
million and revenues grew 25 percent to $864 million, compared to the prior year, all
records. (See Tables 1-3 for
supplemental disclosures regarding non-GAAP financial
measures.)
Fiscal 2019 fourth quarter Local Media Group operating profit
was $63 million, adjusted EBITDA was
$72 million and revenues were
$199 million.
Looking more closely at the Local Media Group's fiscal 2019
full year financial performance compared to the prior year:
- Total advertising related revenues grew nearly 30 percent to
$538 million, driven by strong demand
for political advertising revenues which were a record $103 million. Meredith stations in the
Phoenix, Las Vegas, St.
Louis and Kansas City
markets were the leading beneficiaries of the surge in political
advertising.
- Non-political advertising related revenues grew 9 percent to
$435 million. This was driven
primarily by a full year of contribution from MNI Targeted Media.
Non-political spot advertising revenues were down 3 percent due
primarily to political advertising displacement. From a category
standpoint, declines in the automotive and restaurants advertising
categories were partially offset by growth in the professional
services, media and home services advertising categories.
- Consumer related revenues increased more than 15 percent to
$317 million due to growth in
retransmission fees from cable and satellite television operators.
These increases were partially offset by higher payments to
affiliated networks.
In fiscal 2019, Meredith's Local Media Group continued to
aggressively execute its strategic initiatives to generate growth
in revenue and operating profit, and increase shareholder value
over time. These included:
- Increasing its consumer connection – Meredith delivered
strong performance during ratings periods throughout fiscal 2019.
During the most recent May rating period, Meredith stations in
eight of its 12 markets ranked No. 1 or No. 2 from sign-on to
sign-off.
- Rapidly growing its digital platforms – Local Media
Group digital advertising related revenues rose 74 percent,
reflecting a full year of contribution from MNI Targeted Media. In
addition, traffic across the Local Media Group's digital properties
grew in the low double digits from the prior year and averaged 19
million unique visitors per month in fiscal 2019.
- Successfully renewing key distribution and network
affiliation agreements – During the year, Meredith completed
retransmission consent agreements with Cox Communications and
Comcast Corp., as well as network affiliation renewals for all of
its FOX-affiliated stations (Portland, Las
Vegas, Greenville, SC,
Mobile and Springfield, MA).
- Innovating and expanding across the television station
portfolio – Leveraging assets acquired from the Time Inc.
acquisition, Meredith launched a weekly television show based on
the strength of the PEOPLE brand. The Local Media Group has
committed to launching the show in daily syndication beginning in
Fall 2020 with distribution across all 12 of its local television
markets, and is actively engaged in discussions with other
broadcast television owners to carry the show.
OTHER FINANCIAL INFORMATION
Meredith remains committed to strong capital stewardship and its
successful Total Shareholder Return strategy. This includes:
- Return of capital to shareholders through consistent and
ongoing dividend increases – Meredith raised its regular
dividend by 5.5 percent to $2.30 on
an annualized basis in February 2019.
This marked the 26th straight year of dividend increases for
Meredith and the 72nd consecutive year of dividend payments. Since
launching its Total Shareholder Return strategy in October 2011, Meredith has increased its dividend
125 percent.
- Aggressive debt paydown and management of liabilities –
Long-term debt was $2.3 billion at
June 30, 2019, reflecting repayment
of $825 million in fiscal 2019.
- Share repurchases – Meredith's ongoing share repurchase
program has $50 million remaining
under current authorizations as of June 30,
2019.
During the fourth quarter of fiscal 2019, Meredith decided to
retain the Money brand and therefore removed it from Assets Held
for Sale. Results from continuing operations have been adjusted to
reflect inclusion of the Money brand in all periods presented. All
earnings per share amounts in the text of this release are on a
diluted basis per common share. Both basic and diluted earnings per
common share can be found in the attached Consolidated Statements
of Earnings (Loss). All fiscal 2019 full year and fourth quarter
comparisons are against the comparable prior-year period unless
otherwise stated.
FISCAL 2020 OUTLOOK
For full-year fiscal 2020, Meredith expects:
- Total Company revenues to range from $3.0 billion to $3.2
billion.
- Earnings from continuing operations, including non-cash
depreciation and amortization of approximately $220 million and net interest expense of
approximately $150 million, to range
from $197 million to $212 million, and from $2.58 to $2.88 on a
per share basis. These amounts do not include special items. Actual
results may include special items that have not yet occurred and
are difficult to predict with reasonable certainty at this
time.
- Adjusted EBITDA to range from $640
million to $675 million, and
adjusted earnings per share to range from $5.75 to $6.20.
This includes approximately $50
million of planned strategic investments. (See Tables 4-5 for supplemental
disclosures.)
- Additionally, Meredith expects to generate approximately
$75 million of proceeds from its
remaining Assets Held for Sale and intends to use that cash for
further debt reduction.
Looking more closely at the first quarter of fiscal 2020,
Meredith expects:
- National Media Group revenues to range from $535 million to $565
million.
- Local Media Group revenues to range from $195 million to $200
million.
- Earnings from continuing operations, including non-cash
depreciation and amortization of approximately $58 million and net interest expense of
approximately $38 million, to range
from $20 million to $22 million, and from $0.01 to $0.05 on a
per share basis. These amounts do not include special items. Actual
results may include special items that have not yet occurred and
are difficult to predict with reasonable certainty at this
time.
- Adjusted EBITDA to range from $122
million to $127 million, and
adjusted earnings per share to range from $0.88 to $0.93.
(See Tables 4-5 for supplemental
disclosures.)
CONFERENCE CALL WEBCAST
Meredith will host a conference call on September 5, 2019, at 8:30
a.m. EDT to discuss fiscal 2019 fourth quarter and full year
results and its outlook for the first quarter and full year of
fiscal 2020. A live webcast will be accessible to the public on the
Company's website, 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. Adjusted net
earnings per share, adjusted EBITDA, and adjusted EBITDA margin are
common supplemental measures of performance used by investors and
financial analysts. Management believes that adjusted earnings per
share and adjusted EBITDA provides an additional analytical tool to
clarify the Company's results from core operations and delineate
underlying trends. Adjusted net earnings per share are defined as
net earnings per share from continuing operations before
depreciation, amortization and special items. Management has
removed these costs as they are deemed to be non-operational in
nature. Adjusted EBITDA is defined as earnings from
continuing operations before interest, taxes, depreciation,
amortization, and special items. Management does not use adjusted
EBITDA as a measure of liquidity or funds available for
management's discretionary use because it excludes certain
contractual and non-discretionary expenditures.
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 GAAP to non-GAAP measures are
attached to this press release and available at
www.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 successful implementation of its strategies; the
Company's financial outlook for full year and first quarter of
fiscal 2020; the Company's anticipated asset sales; and the
expected benefits of the acquisition of Time Inc., including the
expected synergies from the transaction, anticipated timing of
disposition of certain acquired brands and businesses, and the
Company's prospects for growth and increasing shareholder
value.
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; the consequences of acquisitions
and/or dispositions; the risks associated with the Company's recent
acquisition of Time Inc., including: (1) the Company's ability to
retain key personnel; (2) unexpected costs, charges or expenses
resulting from the acquisition; (3) the Company's ability to
realize the anticipated benefits of the acquisition of Time Inc.;
(4) delays, challenges and expenses associated with integrating the
businesses; (5) the Company's ability to comply with the terms of
the debt and equity financings entered into in connection with the
acquisition; and (6) the risk factors contained in the Company's
most recent Form 10-K filed with the Securities and Exchange
Commission, which are available on the SEC's website at
www.sec.gov. 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 has been committed to service
journalism for more than 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 National Media Group reaches over 180
million unduplicated American consumers every month, including
nearly 90 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 entertainment, food, lifestyle,
parenting and home. Meredith is the No. 1 magazine operator in the
U.S., and owner of the largest premium content digital network for
American consumers. Meredith's leading national brands include
PEOPLE, Better Homes & Gardens, InStyle, Allrecipes, REAL
SIMPLE, SHAPE, Southern Living and Martha
Stewart Living. 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's National Media Group also includes leading
affinity marketer Synapse, and The Foundry, the company's
state-of-the-art creative lab and content studio.
Meredith's Local Media Group includes 17 television stations
reaching 11 percent of U.S. households and 30 million viewers.
Meredith's portfolio is concentrated in large, fast-growing
markets, with seven stations in the nation's Top 25
markets—including Atlanta,
Phoenix, St. Louis and Portland—and 13 in the Top 50.
Meredith's stations produce more than 700 hours of local news and
entertainment content each week, and operate leading local digital
destinations. Meredith also owns MNI Targeted Media, which delivers
targeted advertising solutions to more than 1,200 clients on a
local, regional and national level.
Meredith
Corporation and Subsidiaries
Condensed
Consolidated Statements of Earnings (Loss)
(Unaudited)
|
|
|
Three
Months
|
|
Twelve
Months
|
Periods ended June
30,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
(In millions
except per share data)
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
Advertising
related
|
$
|
400.8
|
|
|
$
|
422.9
|
|
|
$
|
1,686.6
|
|
|
$
|
1,190.7
|
|
Consumer
related
|
355.9
|
|
|
337.0
|
|
|
1,393.6
|
|
|
921.3
|
|
Other
|
28.9
|
|
|
38.8
|
|
|
108.3
|
|
|
152.2
|
|
Total
revenues
|
785.6
|
|
|
798.7
|
|
|
3,188.5
|
|
|
2,264.2
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Production,
distribution, and editorial
|
279.7
|
|
|
299.5
|
|
|
1,161.2
|
|
|
868.0
|
|
Selling, general, and
administrative
|
344.0
|
|
|
346.1
|
|
|
1,350.0
|
|
|
987.5
|
|
Acquisition,
disposition, and restructuring related activities
|
39.3
|
|
|
19.7
|
|
|
100.9
|
|
|
170.1
|
|
Depreciation and
amortization
|
57.3
|
|
|
64.0
|
|
|
247.6
|
|
|
129.0
|
|
Impairment of
long-lived assets
|
41.8
|
|
|
2.9
|
|
|
41.8
|
|
|
22.7
|
|
Total operating
expenses
|
762.1
|
|
|
732.2
|
|
|
2,901.5
|
|
|
2,177.3
|
|
Income from
operations
|
23.5
|
|
|
66.5
|
|
|
287.0
|
|
|
86.9
|
|
Non-operating income,
net
|
6.9
|
|
|
6.6
|
|
|
24.2
|
|
|
0.7
|
|
Interest expense,
net
|
(39.5)
|
|
|
(41.1)
|
|
|
(170.6)
|
|
|
(97.2)
|
|
Earnings (loss) from
continuing operations before income taxes
|
(9.1)
|
|
|
32.0
|
|
|
140.6
|
|
|
(9.6)
|
|
Income tax benefit
(expense)
|
5.5
|
|
|
(15.4)
|
|
|
(11.5)
|
|
|
123.6
|
|
Earnings (loss) from
continuing operations
|
(3.6)
|
|
|
16.6
|
|
|
129.1
|
|
|
114.0
|
|
Gain (loss) from
discontinued operations, net of income taxes
|
(9.4)
|
|
|
0.3
|
|
|
(82.8)
|
|
|
(14.6)
|
|
Net earnings
(loss)
|
$
|
(13.0)
|
|
|
$
|
16.9
|
|
|
$
|
46.3
|
|
|
$
|
99.4
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share attributable to common shareholders
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
(0.51)
|
|
|
$
|
(0.06)
|
|
|
$
|
1.12
|
|
|
$
|
1.80
|
|
Discontinued
operations
|
(0.21)
|
|
|
—
|
|
|
(1.83)
|
|
|
(0.32)
|
|
Basic earnings
(loss) per common share
|
$
|
(0.72)
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.71)
|
|
|
$
|
1.48
|
|
Basic average common
shares outstanding
|
45.4
|
|
|
45.1
|
|
|
45.3
|
|
|
44.9
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share attributable to common shareholders
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
(0.51)
|
|
|
$
|
(0.06)
|
|
|
$
|
1.12
|
|
|
$
|
1.79
|
|
Discontinued
operations
|
(0.21)
|
|
|
—
|
|
|
(1.82)
|
|
|
(0.32)
|
|
Diluted earnings
(loss) per common share
|
$
|
(0.72)
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.70)
|
|
|
$
|
1.47
|
|
Diluted average
common shares outstanding
|
45.4
|
|
|
45.1
|
|
|
45.5
|
|
|
45.2
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
$
|
0.575
|
|
|
$
|
0.545
|
|
|
$
|
2.240
|
|
|
$
|
2.130
|
|
Meredith
Corporation and Subsidiaries
Segment
Information (Unaudited)
|
|
|
Three
Months
|
|
Twelve
Months
|
Periods ended June
30,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
(In
millions)
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
National
media
|
|
|
|
|
|
|
|
Print
|
$
|
171.4
|
|
|
$
|
193.1
|
|
|
$
|
690.1
|
|
|
$
|
501.9
|
|
Digital
|
99.3
|
|
|
94.9
|
|
|
394.9
|
|
|
253.8
|
|
Third party
sales
|
18.7
|
|
|
12.0
|
|
|
65.3
|
|
|
19.8
|
|
Total advertising
related
|
289.4
|
|
|
300.0
|
|
|
1,150.3
|
|
|
775.5
|
|
Subscription
|
178.7
|
|
|
157.2
|
|
|
693.7
|
|
|
419.9
|
|
Newsstand
|
39.6
|
|
|
47.9
|
|
|
165.5
|
|
|
98.1
|
|
Affinity
marketing
|
13.5
|
|
|
22.7
|
|
|
83.6
|
|
|
38.1
|
|
Licensing
|
26.6
|
|
|
29.5
|
|
|
94.4
|
|
|
73.0
|
|
Digital consumer
driven
|
13.1
|
|
|
6.0
|
|
|
39.9
|
|
|
21.3
|
|
Total consumer
related
|
271.5
|
|
|
263.3
|
|
|
1,077.1
|
|
|
650.4
|
|
Project
based
|
17.0
|
|
|
16.3
|
|
|
50.5
|
|
|
111.0
|
|
Other
|
9.6
|
|
|
21.0
|
|
|
48.7
|
|
|
35.7
|
|
Total
other
|
26.6
|
|
|
37.3
|
|
|
99.2
|
|
|
146.7
|
|
Total national
media
|
587.5
|
|
|
600.6
|
|
|
2,326.6
|
|
|
1,572.6
|
|
Local
media
|
|
|
|
|
|
|
|
Non-political
spot
|
80.9
|
|
|
79.5
|
|
|
323.3
|
|
|
333.7
|
|
Political
spot
|
0.3
|
|
|
10.3
|
|
|
102.9
|
|
|
16.1
|
|
Digital
|
4.2
|
|
|
4.0
|
|
|
15.8
|
|
|
15.2
|
|
Third party
sales
|
26.5
|
|
|
29.9
|
|
|
96.2
|
|
|
51.7
|
|
Total advertising
related
|
111.9
|
|
|
123.7
|
|
|
538.2
|
|
|
416.7
|
|
Consumer
related
|
84.4
|
|
|
73.7
|
|
|
316.5
|
|
|
270.9
|
|
Other
|
2.3
|
|
|
1.5
|
|
|
9.1
|
|
|
5.5
|
|
Total local
media
|
198.6
|
|
|
198.9
|
|
|
863.8
|
|
|
693.1
|
|
Intersegment revenue
elimination
|
(0.5)
|
|
|
(0.8)
|
|
|
(1.9)
|
|
|
(1.5)
|
|
Total
revenues
|
$
|
785.6
|
|
|
$
|
798.7
|
|
|
$
|
3,188.5
|
|
|
$
|
2,264.2
|
|
Continued
|
|
Meredith
Corporation and Subsidiaries
Segment
Information (Unaudited)
|
|
|
Three
Months
|
|
Twelve
Months
|
Periods ended June
30,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
(In
millions)
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
|
|
|
|
|
National
media
|
$
|
6.4
|
|
|
$
|
41.4
|
|
|
$
|
126.0
|
|
|
$
|
85.0
|
|
Local
media
|
62.6
|
|
|
58.2
|
|
|
278.3
|
|
|
186.7
|
|
Unallocated
corporate
|
(45.5)
|
|
|
(33.1)
|
|
|
(117.3)
|
|
|
(184.8)
|
|
Income from
operations
|
$
|
23.5
|
|
|
$
|
66.5
|
|
|
$
|
287.0
|
|
|
$
|
86.9
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
National
media
|
$
|
47.8
|
|
|
$
|
53.7
|
|
|
$
|
206.5
|
|
|
$
|
92.9
|
|
Local
media
|
8.9
|
|
|
9.6
|
|
|
36.6
|
|
|
33.2
|
|
Unallocated
corporate
|
0.6
|
|
|
0.7
|
|
|
4.5
|
|
|
2.9
|
|
Total depreciation
and amortization
|
$
|
57.3
|
|
|
$
|
64.0
|
|
|
$
|
247.6
|
|
|
$
|
129.0
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
1
|
|
|
|
|
|
|
|
National
media
|
$
|
114.8
|
|
|
$
|
113.9
|
|
|
$
|
456.0
|
|
|
$
|
256.9
|
|
Local
media
|
72.4
|
|
|
68.5
|
|
|
318.2
|
|
|
223.2
|
|
Unallocated
corporate
|
(17.9)
|
|
|
(22.4)
|
|
|
(68.6)
|
|
|
(57.5)
|
|
Total Adjusted
EBITDA
|
$
|
169.3
|
|
|
$
|
160.0
|
|
|
$
|
705.6
|
|
|
$
|
422.6
|
|
|
|
1
|
Adjusted EBITDA is
earnings (loss) before discontinued operations, interest, taxes,
depreciation, amortization, and special items.
|
Meredith
Corporation and Subsidiaries
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
Assets
|
June 30,
2019
|
|
June 30,
2018
|
(In
millions)
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
45.0
|
|
|
$
|
437.6
|
|
Accounts receivable,
net
|
609.1
|
|
|
545.2
|
|
Inventories
|
62.7
|
|
|
44.4
|
|
Current portion of
subscription acquisition costs
|
242.0
|
|
|
145.0
|
|
Current portion of
broadcast rights
|
7.1
|
|
|
9.8
|
|
Assets
held-for-sale
|
321.0
|
|
|
719.8
|
|
Other current
assets
|
63.2
|
|
|
114.9
|
|
Total current
assets
|
1,350.1
|
|
|
2,016.7
|
|
Property, plant, and
equipment, net
|
450.3
|
|
|
483.7
|
|
Subscription
acquisition costs
|
273.9
|
|
|
66.3
|
|
Broadcast
rights
|
6.0
|
|
|
18.9
|
|
Other
assets
|
263.6
|
|
|
263.3
|
|
Intangible assets,
net
|
1,813.6
|
|
|
2,006.2
|
|
Goodwill
|
1,979.4
|
|
|
1,915.8
|
|
Total
assets
|
$
|
6,136.9
|
|
|
$
|
6,770.9
|
|
|
|
|
|
Liabilities,
Redeemable Convertible Preferred Stock, and Shareholders'
Equity
|
|
|
|
Current
liabilities
|
|
|
|
Current portion of
long-term debt
|
$
|
—
|
|
|
$
|
17.7
|
|
Current portion of
long-term broadcast rights payable
|
6.6
|
|
|
8.9
|
|
Accounts
payable
|
242.6
|
|
|
195.1
|
|
Accrued expenses and
other liabilities
|
300.6
|
|
|
410.6
|
|
Current portion of
unearned revenues
|
458.9
|
|
|
393.5
|
|
Liabilities
associated with assets held-for-sale
|
252.1
|
|
|
200.0
|
|
Total current
liabilities
|
1,260.8
|
|
|
1,225.8
|
|
Long-term
debt
|
2,333.3
|
|
|
3,117.9
|
|
Long-term broadcast
rights payable
|
8.4
|
|
|
20.8
|
|
Unearned
revenues
|
318.6
|
|
|
132.3
|
|
Deferred income
taxes
|
506.2
|
|
|
437.0
|
|
Other noncurrent
liabilities
|
194.8
|
|
|
217.0
|
|
Total
liabilities
|
4,622.1
|
|
|
5,150.8
|
|
|
|
|
|
Redeemable
convertible Series A preferred stock
|
540.2
|
|
|
522.6
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Common
stock
|
40.1
|
|
|
39.8
|
|
Class B
stock
|
5.1
|
|
|
5.1
|
|
Additional paid-in
capital
|
216.7
|
|
|
199.5
|
|
Retained
earnings
|
759.0
|
|
|
889.8
|
|
Accumulated other
comprehensive loss
|
(46.3)
|
|
|
(36.7)
|
|
Total
shareholders' equity
|
974.6
|
|
|
1,097.5
|
|
Total liabilities,
redeemable convertible preferred stock, and shareholders'
equity
|
$
|
6,136.9
|
|
|
$
|
6,770.9
|
|
Meredith
Corporation and Subsidiaries
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
Years ended June
30,
|
2019
|
|
2018
|
(In
millions)
|
|
|
|
Net cash provided
by operating activities
|
$
|
245.3
|
|
|
$
|
149.9
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisitions of and
investments in businesses, net of cash acquired
|
(18.4)
|
|
|
(2,786.5)
|
|
Proceeds from
disposition of assets, net of cash sold
|
349.1
|
|
|
219.2
|
|
Proceeds received in
advance of sale of business
|
90.0
|
|
|
—
|
|
Additions to
property, plant, and equipment
|
(46.4)
|
|
|
(53.2)
|
|
Other
|
—
|
|
|
3.8
|
|
Net cash provided by
(used in) investing activities
|
374.3
|
|
|
(2,616.7)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
issuance of long-term debt
|
210.0
|
|
|
3,260.0
|
|
Repayments of
long-term debt
|
(1,037.0)
|
|
|
(765.1)
|
|
Proceeds from
preferred stock, warrants, and options issued, net of issuance
costs
|
—
|
|
|
631.0
|
|
Dividends
paid
|
(161.9)
|
|
|
(121.5)
|
|
Debt issuance costs
paid
|
—
|
|
|
(70.8)
|
|
Purchases of Company
stock
|
(10.0)
|
|
|
(31.1)
|
|
Proceeds from common
stock issued
|
4.6
|
|
|
19.3
|
|
Payment of
acquisition related contingent consideration
|
(19.3)
|
|
|
(4.3)
|
|
Net cash provided by
(used in) financing activities
|
(1,013.6)
|
|
|
2,917.5
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(1.4)
|
|
|
(4.1)
|
|
Change in cash
held-for-sale
|
2.8
|
|
|
(31.3)
|
|
Net increase
(decrease) in cash and cash equivalents
|
(392.6)
|
|
|
415.3
|
|
Cash and cash
equivalents at beginning of year
|
437.6
|
|
|
22.3
|
|
Cash and cash
equivalents at end of year
|
$
|
45.0
|
|
|
$
|
437.6
|
|
Table
1
|
|
Meredith
Corporation and Subsidiaries
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Special
Items - The following tables show earnings (loss) from
continuing operations as reported under accounting principles
generally accepted in the United States of America (GAAP) and
excluding the special items. Earnings (loss) from continuing
operations excluding the special items, depreciation, and
amortization are non-GAAP measures. Management's rationale for
presenting non-GAAP measures is included in the text of this
earnings release.
|
|
|
Three
Months
|
|
Twelve
Months
|
Periods ended June
30,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
(In
millions)
|
|
|
|
|
|
|
|
Earnings (loss)
from continuing operations
|
$
|
(3.6)
|
|
|
$
|
16.6
|
|
|
$
|
129.1
|
|
|
$
|
114.0
|
|
Special
items
|
|
|
|
|
|
|
|
Write-down of
impaired assets
|
41.8
|
|
|
2.9
|
|
|
41.8
|
|
|
22.7
|
|
Transaction and
integration costs
|
30.2
|
|
|
16.4
|
|
|
64.6
|
|
|
69.3
|
|
Severance and related
benefit costs
|
13.9
|
|
|
14.8
|
|
|
51.5
|
|
|
112.4
|
|
Gain on sale of
businesses and asset
|
(4.7)
|
|
|
(11.4)
|
|
|
(15.1)
|
|
|
(14.7)
|
|
Extinguishment
loss
|
1.1
|
|
|
—
|
|
|
10.9
|
|
|
0.6
|
|
Pension settlement
charge
|
(2.8)
|
|
|
—
|
|
|
(2.8)
|
|
|
—
|
|
Bridge facility
commitment costs
|
—
|
|
|
—
|
|
|
—
|
|
|
17.5
|
|
Loss on equity method
investment
|
—
|
|
|
—
|
|
|
—
|
|
|
12.9
|
|
Other
|
3.2
|
|
|
0.2
|
|
|
6.8
|
|
|
3.4
|
|
Special items
subtotal
|
82.7
|
|
|
22.9
|
|
|
157.7
|
|
|
224.1
|
|
Tax benefit on
special items
|
(21.0)
|
|
|
(8.4)
|
|
|
(40.2)
|
|
|
(57.3)
|
|
Tax special
items
|
—
|
|
|
—
|
|
|
(23.4)
|
|
|
—
|
|
Tax impact of
remeasurement of deferred tax assets and liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
(133.0)
|
|
Net special
items
|
61.7
|
|
|
14.5
|
|
|
94.1
|
|
|
33.8
|
|
Earnings from
continuing operations before special items (non-GAAP)
|
58.1
|
|
|
31.1
|
|
|
223.2
|
|
|
147.8
|
|
Depreciation and
amortization
|
57.3
|
|
|
64.0
|
|
|
247.6
|
|
|
129.0
|
|
Tax impact of
depreciation and amortization
|
(14.5)
|
|
|
(16.3)
|
|
|
(63.1)
|
|
|
(32.9)
|
|
Net depreciation and
amortization impact
|
42.8
|
|
|
47.7
|
|
|
184.5
|
|
|
96.1
|
|
Adjusted earnings
(non-GAAP)
|
$
|
100.9
|
|
|
$
|
78.8
|
|
|
$
|
407.7
|
|
|
$
|
243.9
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share attributable to common
shareholders
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
(0.51)
|
|
|
$
|
(0.06)
|
|
|
$
|
1.12
|
|
|
$
|
1.79
|
|
Per share impact of
net special items
|
1.36
|
|
|
0.31
|
|
|
2.07
|
|
|
0.75
|
|
Earnings from
continuing operations before special items (non-GAAP)
|
0.85
|
|
|
0.25
|
|
|
3.19
|
|
|
2.54
|
|
Per share impact
depreciation and amortization
|
0.94
|
|
|
1.06
|
|
|
4.05
|
|
|
2.13
|
|
Adjusted earnings per
share (non-GAAP)
|
$
|
1.79
|
|
|
$
|
1.31
|
|
|
$
|
7.24
|
|
|
$
|
4.67
|
|
Table
2
|
|
Meredith
Corporation and Subsidiaries
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Special
Items
The following tables
show results of operations as reported under GAAP and excluding the
special items. Results of operations excluding the special items
are non-GAAP measures. Management's rationale for presenting
non-GAAP measures is included in the text of this earnings
release.
|
|
Adjusted
EBITDA
Consolidated adjusted
EBITDA, which is reconciled to net earnings in the following
tables, is defined as earnings from continuing operations 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, 2019
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
millions)
|
|
|
|
|
Revenues
|
$
|
587.5
|
|
$
|
198.6
|
|
|
|
|
|
|
|
|
Net
loss
|
$
|
(13.0)
|
|
Loss from
discontinued operations, net of income taxes
|
9.4
|
|
Loss from
continuing operations
|
(3.6)
|
|
Income tax
benefit
|
(5.5)
|
|
Interest expense,
net
|
39.5
|
|
Non-operating income,
net
|
(6.9)
|
|
Operating
profit
|
$
|
6.4
|
|
$
|
62.6
|
|
$
|
(45.5)
|
|
23.5
|
|
Special items
included in operating profit:
|
|
|
|
|
Write-down of
impaired assets
|
41.8
|
|
—
|
|
—
|
|
41.8
|
|
Severance and related
benefit costs
|
13.6
|
|
0.3
|
|
—
|
|
13.9
|
|
Transaction and
integration costs
|
2.2
|
|
—
|
|
28.0
|
|
30.2
|
|
Gain on sale of
businesses and asset
|
(4.7)
|
|
—
|
|
—
|
|
(4.7)
|
|
Other
|
3.2
|
|
—
|
|
—
|
|
3.2
|
|
Total special items
included in operating profit
|
56.1
|
|
0.3
|
|
28.0
|
|
84.4
|
|
Operating profit
excluding special items (non-GAAP)
|
62.5
|
|
62.9
|
|
(17.5)
|
|
107.9
|
|
Non-operating income,
net
|
7.3
|
|
0.6
|
|
(1.0)
|
|
6.9
|
|
Special item included
in non-operating income, net – pension settlement
|
(2.8)
|
|
—
|
|
—
|
|
(2.8)
|
|
Depreciation and
amortization
|
47.8
|
|
8.9
|
|
0.6
|
|
57.3
|
|
Adjusted EBITDA
(non-GAAP)
|
$
|
114.8
|
|
$
|
72.4
|
|
$
|
(17.9)
|
|
$
|
169.3
|
|
|
|
|
|
|
Segment operating
margin
|
1.1
|
%
|
31.5
|
%
|
|
|
Segment adjusted
EBITDA margin
|
19.5
|
%
|
36.5
|
%
|
|
|
Table 2
Continued
|
|
Three months ended
June 30, 2018
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
millions)
|
|
|
|
|
Revenues
|
$
|
600.6
|
|
$
|
198.9
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
16.9
|
|
Gain from
discontinued operations, net of income taxes
|
(0.3)
|
|
Earnings from
continuing operations
|
16.6
|
|
Income tax
expense
|
15.4
|
|
Interest expense,
net
|
41.1
|
|
Non-operating income,
net
|
(6.6)
|
|
Operating
profit
|
$
|
41.4
|
|
$
|
58.2
|
|
$
|
(33.1)
|
|
66.5
|
|
Special items
included in operating profit:
|
|
|
|
|
Write-down of
impaired assets
|
2.9
|
|
—
|
|
—
|
|
2.9
|
|
Transaction and
integration costs
|
1.7
|
|
—
|
|
14.7
|
|
16.4
|
|
Severance and related
benefit costs
|
18.7
|
|
0.1
|
|
(4.0)
|
|
14.8
|
|
Gain on sale of
businesses and asset
|
(11.4)
|
|
—
|
|
—
|
|
(11.4)
|
|
Other
|
0.2
|
|
—
|
|
—
|
|
0.2
|
|
Total special items
included in operating profit
|
12.1
|
|
0.1
|
|
10.7
|
|
22.9
|
|
Operating profit
excluding special items (non-GAAP)
|
53.5
|
|
58.3
|
|
(22.4)
|
|
89.4
|
|
Non-operating income,
net
|
6.7
|
|
0.6
|
|
(0.7)
|
|
6.6
|
|
Depreciation and
amortization
|
53.7
|
|
9.6
|
|
0.7
|
|
64.0
|
|
Adjusted EBITDA
(non-GAAP)
|
$
|
113.9
|
|
$
|
68.5
|
|
$
|
(22.4)
|
|
$
|
160.0
|
|
|
|
|
|
|
Segment operating
margin
|
6.9
|
%
|
29.3
|
%
|
|
|
Segment adjusted
EBITDA margin
|
19.0
|
%
|
34.4
|
%
|
|
|
Table
3
|
|
Meredith
Corporation and Subsidiaries
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Special
Items
The following tables
show results of operations as reported under GAAP and excluding the
special items. Results of operations excluding the special items
are non-GAAP measures. Management's rationale for presenting
non-GAAP measures is included in the text of this earnings
release.
|
|
Adjusted
EBITDA
Consolidated adjusted
EBITDA, which is reconciled to net earnings in the following
tables, is defined as earnings from continuing operations 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.
|
|
Year ended June
30, 2019
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
millions)
|
|
|
|
|
Revenues
|
$
|
2,326.6
|
|
$
|
863.8
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
46.3
|
|
Loss from
discontinued operations, net of income taxes
|
82.8
|
|
Earnings from
continuing operations
|
129.1
|
|
Income tax
expense
|
11.5
|
|
Interest expense,
net
|
170.6
|
|
Non-operating income,
net
|
(24.2)
|
|
Operating
profit
|
$
|
126.0
|
|
$
|
278.3
|
|
$
|
(117.3)
|
|
287.0
|
|
Special items
included in operating profit:
|
|
|
|
|
Write-down of
impaired assets
|
41.8
|
|
—
|
|
—
|
|
41.8
|
|
Severance and related
benefit costs
|
44.9
|
|
2.0
|
|
4.6
|
|
51.5
|
|
Transaction and
integration costs
|
23.4
|
|
—
|
|
41.2
|
|
64.6
|
|
Gain on sale of
businesses and asset
|
(11.1)
|
|
—
|
|
—
|
|
(11.1)
|
|
Other
|
5.4
|
|
(0.9)
|
|
2.3
|
|
6.8
|
|
Total special
items
|
104.4
|
|
1.1
|
|
48.1
|
|
153.6
|
|
Operating profit
excluding special items (non-GAAP)
|
230.4
|
|
279.4
|
|
(69.2)
|
|
440.6
|
|
Non-operating income,
net
|
25.9
|
|
2.2
|
|
(3.9)
|
|
24.2
|
|
Special items
included in non-operating income, net
|
|
|
|
|
Gain on sale of
business
|
(4.0)
|
|
—
|
|
—
|
|
(4.0)
|
|
Pension
settlement
|
(2.8)
|
|
—
|
|
—
|
|
(2.8)
|
|
Total special items
included in non-operating income, net
|
(6.8)
|
|
—
|
|
—
|
|
(6.8)
|
|
Depreciation and
amortization
|
206.5
|
|
36.6
|
|
4.5
|
|
247.6
|
|
Adjusted EBITDA
(non-GAAP)
|
$
|
456.0
|
|
$
|
318.2
|
|
$
|
(68.6)
|
|
$
|
705.6
|
|
|
|
|
|
|
Segment operating
margin
|
5.4
|
%
|
32.2
|
%
|
|
|
Segment adjusted
EBITDA margin
|
19.6
|
%
|
36.8
|
%
|
|
|
Table 3
Continued
|
|
Year ended June
30, 2018
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
millions)
|
|
|
|
|
Revenues
|
$
|
1,572.6
|
|
$
|
693.1
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
99.4
|
|
Loss from
discontinued operations, net of income taxes
|
14.6
|
|
Earnings from
continuing operations
|
114.0
|
|
Income tax
benefit
|
(123.6)
|
|
Interest expense,
net
|
97.2
|
|
Non-operating income,
net
|
(0.7)
|
|
Operating
profit
|
$
|
85.0
|
|
$
|
186.7
|
|
$
|
(184.8)
|
|
86.9
|
|
Special items
included in operating profit:
|
|
|
|
|
Write-down of
impaired assets
|
22.7
|
|
—
|
|
—
|
|
22.7
|
|
Transaction and
integration costs
|
1.7
|
|
—
|
|
67.6
|
|
69.3
|
|
Severance and related
benefit costs
|
56.4
|
|
0.9
|
|
55.1
|
|
112.4
|
|
Gain on sale of
businesses and asset
|
(14.7)
|
|
—
|
|
—
|
|
(14.7)
|
|
Other
|
—
|
|
—
|
|
3.4
|
|
3.4
|
|
Total special items
included in operating profit
|
66.1
|
|
0.9
|
|
126.1
|
|
193.1
|
|
Operating profit
excluding special items (non-GAAP)
|
151.1
|
|
187.6
|
|
(58.7)
|
|
280.0
|
|
Non-operating income,
net
|
12.9
|
|
2.4
|
|
(14.6)
|
|
0.7
|
|
Special item included
in non-operating expense – loss on equity method
investment
|
—
|
|
—
|
|
12.9
|
|
12.9
|
|
Depreciation and
amortization
|
92.9
|
|
33.2
|
|
2.9
|
|
129.0
|
|
Adjusted EBITDA
(non-GAAP)
|
$
|
256.9
|
|
$
|
223.2
|
|
$
|
(57.5)
|
|
$
|
422.6
|
|
|
|
|
|
|
Segment operating
margin
|
5.4
|
%
|
26.9
|
%
|
|
|
Segment adjusted
EBITDA margin
|
16.3
|
%
|
32.2
|
%
|
|
|
Table
4
|
|
Meredith
Corporation and Subsidiaries
Supplemental
Disclosures
|
|
Earnings
Outlook
|
|
|
|
|
|
Attributable
to other
instruments 1
|
|
Attributable
to common
shareholders
|
|
Diluted
shares
|
|
Diluted
earnings
per share 2
|
(In millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
Year ending June
30, 2020 - Low Projection
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
|
197
|
|
|
$
|
(79)
|
|
|
$
|
118
|
|
|
45.8
|
|
|
$
|
2.58
|
|
|
Depreciation and
amortization, net of tax
|
151
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
(non-GAAP) 3
|
$
|
348
|
|
|
(85)
|
|
|
263
|
|
|
45.8
|
|
|
5.75
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ending June
30, 2020 - High Projection
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
|
212
|
|
|
(80)
|
|
|
132
|
|
|
45.8
|
|
|
2.88
|
|
|
Depreciation and
amortization, net of tax
|
157
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
(non-GAAP) 3
|
$
|
369
|
|
|
(85)
|
|
|
284
|
|
|
45.8
|
|
|
6.20
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ending
September 30, 2019 - Low Projection
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
|
20
|
|
|
(20)
|
|
|
—
|
|
|
45.7
|
|
|
0.01
|
|
|
Depreciation and
amortization, net of tax
|
40
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
(non-GAAP) 3
|
$
|
60
|
|
|
(20)
|
|
|
40
|
|
|
45.7
|
|
|
0.88
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ending
September 30, 2019 - High Projection
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
|
22
|
|
|
(20)
|
|
|
2
|
|
|
45.7
|
|
|
0.05
|
|
|
Depreciation and
amortization, net of tax
|
41
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
(non-GAAP) 3
|
$
|
63
|
|
|
(20)
|
|
|
43
|
|
|
45.7
|
|
|
0.93
|
|
|
1
|
|
Includes preferred
stock dividends, accretion of preferred stock, dividends on other
securities, and undistributed earnings allocated to other
securities to the extent that these instruments are not deemed to
be dilutive.
|
2
|
|
Diluted earnings per
share reflects the potential dilution that could occur if
securities or other contracts to issue common stock were exercised
or converted into common stock. The dilutive effect of these
instruments were computed using the two-class method.
|
3
|
|
Adjusted earnings is
defined as earnings from continuing operations before special
items, depreciation, and amortization.
|
Table
5
|
|
Meredith
Corporation and Subsidiaries
Supplemental
Disclosures
|
|
Projected Adjusted
EBITDA
Projected adjusted
EBITDA, which is reconciled to projected earnings from continuing
operations in the following table, is defined as projected earnings
from continuing operations before interest, taxes, depreciation,
amortization, and special items.
|
|
|
|
Quarter
ending
September 30,
2019
|
|
Year
ending
June 30,
2020
|
|
Low
|
|
High
|
|
Low
|
|
High
|
(In
millions)
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
|
20
|
|
|
$
|
22
|
|
|
$
|
197
|
|
|
$
|
212
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
7
|
|
|
9
|
|
|
81
|
|
|
88
|
|
Interest expense,
net
|
38
|
|
|
38
|
|
|
147
|
|
|
150
|
|
Depreciation and
amortization
|
57
|
|
|
58
|
|
|
215
|
|
|
225
|
|
Adjusted EBITDA
(non-GAAP)
|
$
|
122
|
|
|
$
|
127
|
|
|
$
|
640
|
|
|
$
|
675
|
|
Table
6
|
|
Meredith
Corporation and Subsidiaries
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Net
Debt - The following table presents long-term debt as
reported under GAAP and net of cash and cash equivalents also as
reported under GAAP. Net debt is a non-GAAP measure. Management's
rationale for presenting non-GAAP measures is included in the text
of this earnings release.
|
|
(In
millions)
|
June 30,
2019
|
Long-term
debt
|
$
|
2,333.3
|
|
Less: cash and cash
equivalents
|
(45.0)
|
|
Net debt
|
$
|
2,288.3
|
|
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SOURCE Meredith Corporation