Tribune Publishing Company (NASDAQ:TPCO) today announced financial
results for the fourth quarter and full year ended
December 29, 2019. Unless otherwise noted, amounts and
disclosures throughout this earnings release relate to continuing
operations and exclude all discontinued operations including the
Los Angeles Times, San Diego Union-Tribune and other assets of the
California News Group (collectively, the “California properties”)
and forsalebyowner.com.
2019 Full Year Highlights:
- Income from continuing operations increased by $43.0 million
compared to 2018
- Earnings per share from continuing operations improved by $0.39
from prior year
- Total operating expenses decreased $100.9 million compared to
2018
- Adjusted EBITDA grew 8.0% to $101.4 million, an increase of
$7.5 million over prior year
- Digital-only subscribers increased 33.6% to 334,000 at the end
of the fourth quarter 2019, up from 250,000 at the end of the
fourth quarter 2018
- The Company returned $62.9 million to shareholders through a
$1.50 per share special dividend in the third quarter and a $0.25
dividend in the fourth quarter
Terry Jimenez, Tribune Publishing CEO and President, said, “In
2019 we continued to see sustained growth in our digital
subscriptions business. Thanks to the efforts of our newsrooms, our
digital-product and our digital-subscriber groups, we exceeded our
goal of 330,000 digital-only subscribers in 2019, ending the year
at 334,000. This represents an increase of 33.6% from last year and
inspires confidence in the Company’s trajectory as it continues its
digital transformation.”
Mr. Jimenez continued, “We made significant investments in the
Company throughout the year, hiring more than 250 editorial
employees in 2019. We also invested in our digital products,
rolling out a new, state-of-the-art content management system.
Furthermore, our relentless execution and cross functional
leadership drove a significant year-over-year improvement in income
from continuing operations and adjusted EBITDA, and we are pleased
to be able to return capital to our shareholders through a
recurring dividend. This demonstrates the confidence we have in our
ability to generate cash flow. Our intense focus on our mission and
our strategic initiatives will yield the best outcomes for our
people, customers and shareholders. As we progress through 2020, we
are optimistic about the strength of our business and the
opportunities that lie ahead.”
At the core of our success is the journalism our newsrooms
produce. Tribune remains a leading news source for our readers, and
we are proud of the impact our reporting has across the communities
we serve.”
2019 Fourth Quarter and Full Year ResultsFourth
quarter 2019 total revenues were $252.3 million, down $31.2 million
or 11.0% compared to $283.5 million for fourth quarter 2018.
The decrease primarily reflects M segment revenue declines of $30.1
million and a $4.9 million revenue decrease associated with the
Company's Transition Service Agreement with the California
properties, partially offset by $2.9 million in increased
digital only subscription revenue. Total revenues for the
full year 2019 were $983.1 million, down 4.6% from 2018.
Fourth quarter 2019 total advertising revenue and digital
advertising revenue were $105.8 million and $25.8 million,
respectively. Excluding the impact associated with the 2018
agreement with Cars.com to convert Tribune Publishing's eight
affiliate markets into Cars.com's direct retail channel, total
digital advertising revenue would have increased 4.0%
year-over-year.
Total operating expenses, including depreciation and
amortization, in the fourth quarter of 2019 were $255.2 million,
down 11.2%, compared to $287.4 million in the fourth quarter of
2018. Total operating expenses for the full year decreased
$100.9 million from the prior-year period. These decreases resulted
from the Company’s ongoing strong cost management.
Loss from continuing operations was $4.4 million in the
fourth quarter of 2019, compared to income of $4.0 million in
the fourth quarter of 2018, driven partially by an increase of $5.6
million in taxes. For the full year, the Company reported
income from continuing operations of $3.1 million compared to a
loss from continuing operations in 2018 of $39.9 million.
Adjusted EBITDA was $30.8 million in the fourth quarter of 2019,
versus $46.5 million in the fourth quarter of 2018. Full year
adjusted EBITDA of $101.4 million increased $7.5 million or 8.0%
over 2018.
For the full year ended December 29, 2019, capital
expenditures totaled $18.6 million. Cash balance at
December 29, 2019, was $61.0 million, which excludes
$37.3 million of restricted cash reflected in long-term assets.
Segment ResultsThe Company operates in two
segments: M, which is comprised of the Company’s media groups
excluding their digital revenues and related expenses, except
digital subscription revenues when bundled with a print
subscription, and X, which includes all digital revenues and
related expenses of the Company from local Tribune Publishing
websites, third party websites, mobile applications, digital-only
subscriptions, Tribune Content Agency and BestReviews.
Included in the tables below is segment reporting for M and X
for the fourth quarters of 2019 and 2018.
MFourth quarter 2019 M total revenues were $197.0 million, down
13.3% compared to the fourth quarter of 2019 reflecting primarily
advertising revenue declines.
Fourth quarter 2019 operating expenses for M decreased 14.0%
compared to the prior-year quarter, driven by ongoing cost
management.
Fourth quarter 2019 income from operations for M was $2.1
million versus $0.5 million in the fourth quarter of 2018. Adjusted
EBITDA was $22.5 million versus $33.2 million in the fourth quarter
of 2018.
XTotal revenues for X for the fourth quarter of 2019 were $53.2
million, up 7.7%, primarily driven by growth in digital only
subscription revenue and BestReviews.com, partially offset by the
Cars.com impact. Fourth quarter 2019 advertising revenues for
X decreased 1.8% year-over-year primarily due to the change in the
Company’s Cars.com arrangement. Content revenues in the
fourth quarter of 2019, which includes digital-only subscriptions,
content syndication and ecommerce revenues, increased by 18.6%
year-over-year.
Fourth quarter 2019 income from operations for X was $8.2
million versus $6.3 million in the fourth quarter of 2018.
Adjusted EBITDA was $12.7 million versus $14.3 million in the
fourth quarter of 2018.
Digital-only subscribers grew to 334,000, up 33.6% from the
prior year and up 6.5% sequentially from the third quarter of
2019.
2020 OutlookThe Company expects full year 2020
Adjusted EBITDA will be a range of $100.0 million to $105.0
million.
For the first quarter of 2020, the Company expects revenue to
range from $210.0 million to $215.0 million and Adjusted EBITDA to
range from $12.0 million to $13.0 million.
Conference Call DetailsTribune Publishing will
host a conference call to discuss the Company’s fourth quarter 2019
results at 5:00 p.m. Eastern Time (4:00 p.m. Central
Time) on Wednesday, March 4, 2020. The conference call
may be accessed via Tribune Publishing’s Investor Relations website
at investor.tribpub.com or by dialing 844.209.4036 (478.219.0556
for international callers) and entering conference ID
3180299. An archived version of the webcast will also be
available for one year on the Tribune Publishing website. To
access the replay via telephone, available until March 11, 2020,
dial 855.859.2056 (404.537.3406 for international callers),
conference ID 3180299.
Non-GAAP Financial InformationAdjusted EBITDA,
Adjusted total operating expenses, Adjusted Net Income, and
Adjusted Diluted EPS. These are not measures presented in
accordance with generally accepted accounting principles in the
United States ("U.S. GAAP" or "GAAP") and Tribune Publishing’s use
of the terms Adjusted EBITDA, Adjusted total operating expenses,
Adjusted Net Income, and Adjusted Diluted EPS may vary from that of
others in the Company’s industry. Adjusted EBITDA, Adjusted
total operating expenses, Adjusted Net Income, and Adjusted Diluted
EPS should not be considered as an alternative to net income
(loss), income from operations, operating expenses, net income
(loss) per diluted share, revenues or any other performance
measures derived in accordance with U.S. GAAP as measures of
operating performance or liquidity. Further information
regarding Tribune Publishing’s presentation of these measures,
including a reconciliation of Adjusted EBITDA, Adjusted total
operating expenses, Adjusted Net Income and Adjusted Diluted EPS to
the most directly comparable U.S. GAAP financial measure, is
included below in this press release.
Cautionary Statements Regarding Forward-looking
StatementsThis press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934 that
are based largely on our current expectations and reflect various
estimates and assumptions by us. Forward-looking statements
are subject to certain risks, trends and uncertainties that could
cause actual results and achievements to differ materially from
those expressed in such forward-looking statements. Such
risks, trends and uncertainties, which in some instances are beyond
our control, include, without limitation, changes in advertising
demand, circulation levels and audience shares; competition and
other economic conditions; our ability to develop and grow our
online businesses; changes in newsprint price and availability; our
ability to maintain data security and comply with privacy-related
laws; economic and market conditions that could impact the level of
our required contributions to the defined benefit pension plans to
which we contribute; decisions by trustees under rehabilitation
plans (if applicable) or other contributing employers with respect
to multiemployer plans to which we contribute which could impact
the level of our contributions; our ability to maintain effective
internal control over financial reporting; concentration of stock
ownership among our principal stockholders whose interest may
differ from those of other stockholders; and other events beyond
our control that may result in unexpected adverse operating
results. For more information about these and other risks see Item
1A (Risk Factors) of the Company’s most recent Annual Report on
Form 10-K and in the Company’s other reports filed with the
Securities and Exchange Commission.
The words “believe,” “expect,” “anticipate,” “estimate,”
“could,” “should,” “intend,” “may,” “will,” “plan,” “seek” and
similar expressions generally identify forward-looking
statements. However, such words are not the exclusive means
for identifying forward-looking statements, and their absence does
not mean that the statement is not forward looking. Whether
or not any such forward-looking statements, in fact occur will
depend on future events, some of which are beyond our
control. Readers are cautioned not to place undue reliance on
such forward-looking statements, which are being made as of the
date of this press release. Except as required by law, we
undertake no obligation to update any forward-looking statements,
whether as a result of new information, future events or
otherwise.
About Tribune Publishing CompanyTribune
Publishing (NASDAQ:TPCO) is a media company rooted in award-winning
journalism. Headquartered in Chicago, Tribune Publishing
operates local media businesses in eight markets with titles
including the Chicago Tribune, New York Daily
News, The Baltimore Sun, Orlando Sentinel, South
Florida's Sun-Sentinel, Virginia’s Daily Press and The
Virginian-Pilot, The Morning Call of Lehigh Valley, Pennsylvania,
and the Hartford Courant.
In addition to award-winning local media businesses, Tribune
Publishing operates national and international brands such as
Tribune Content Agency and The Daily Meal and is the majority owner
of the product review website BestReviews.
Our brands are committed to informing, inspiring and
engaging local communities. We create and distribute content across
our media portfolio, offering integrated marketing, media, and
business services to consumers and advertisers, including digital
solutions and advertising opportunities.
Investor Relations Contact:Amy BullisTribune
Publishing Investor Relations312.222.2102abullis@tribpub.com
Media Contact:Max ReinsdorfTribune Publishing
Media Relations847.867.6294mreinsdorf@tribpub.com
Source: Tribune Publishing
Exhibits:Consolidated Statements of Income (Loss)Segment Income
and ExpensesConsolidated Balance SheetsNon-GAAP Reconciliations -
Income (Loss) from Continuing Operations to Adjusted EBITDA
Non-GAAP Reconciliations - Total Operating Expenses to Adjusted
Same-Business Operating ExpensesNon-GAAP Reconciliations - Net
Income (Loss) to Adjusted Net Income and Adjusted Diluted EPS
TRIBUNE PUBLISHING
COMPANYCONSOLIDATED STATEMENTS OF INCOME
(LOSS)(In thousands, except per share
data)(Unaudited)
Preliminary
|
|
Three months ended |
|
Year ended |
|
|
December 29, 2019 |
|
December 30, 2018 |
|
December 29, 2019 |
|
December 30, 2018 |
|
|
|
|
|
|
|
|
|
Operating revenues |
|
$ |
252,270 |
|
|
$ |
283,496 |
|
|
$ |
983,149 |
|
|
$ |
1,030,669 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
255,191 |
|
|
287,392 |
|
|
975,992 |
|
|
1,076,881 |
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
(2,921 |
) |
|
(3,896 |
) |
|
7,157 |
|
|
(46,212 |
) |
|
|
|
|
|
|
|
|
|
Interest income (expense),
net |
|
21 |
|
|
320 |
|
|
499 |
|
|
(11,353 |
) |
Loss on early extinguishment
of debt |
|
— |
|
|
— |
|
|
— |
|
|
(7,666 |
) |
Income (loss) on equity
investments, net |
|
267 |
|
|
(40 |
) |
|
(2,988 |
) |
|
(1,868 |
) |
Other non-operating income
(expense) |
|
(220 |
) |
|
3,570 |
|
|
45 |
|
|
14,513 |
|
Income (loss) from
continuing operations before income taxes |
|
(2,853 |
) |
|
(46 |
) |
|
4,713 |
|
|
(52,586 |
) |
Income tax expense (benefit) |
|
1,557 |
|
|
(4,004 |
) |
|
1,620 |
|
|
(12,723 |
) |
Income (loss) from
continuing operations |
|
(4,410 |
) |
|
3,958 |
|
|
3,093 |
|
|
(39,863 |
) |
Income (loss) from discontinued operations, net of tax |
|
10,233 |
|
|
(1,155 |
) |
|
(3,337 |
) |
|
289,510 |
|
Net income
(loss) |
|
5,823 |
|
|
2,803 |
|
|
(244 |
) |
|
249,647 |
|
Less: Income attributable to noncontrolling interest |
|
1,788 |
|
|
385 |
|
|
4,825 |
|
|
856 |
|
Net income (loss)
attributable to Tribune common stockholders |
|
$ |
4,035 |
|
|
$ |
2,418 |
|
|
$ |
(5,069 |
) |
|
$ |
248,791 |
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Tribune per common share - Basic |
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
|
$ |
(0.46 |
) |
|
$ |
0.10 |
|
|
$ |
(0.76 |
) |
|
$ |
(1.15 |
) |
Income (loss) from discontinued operations |
|
0.28 |
|
|
(0.03 |
) |
|
(0.09 |
) |
|
8.20 |
|
Net income (loss) attributable to Tribune per common share -
Basic |
|
$ |
(0.18 |
) |
|
$ |
0.07 |
|
|
$ |
(0.85 |
) |
|
$ |
7.05 |
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Tribune per common share - Diluted |
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
|
$ |
(0.46 |
) |
|
$ |
0.10 |
|
|
$ |
(0.76 |
) |
|
$ |
(1.15 |
) |
Income (loss) from discontinued operations |
|
0.28 |
|
|
(0.03 |
) |
|
(0.09 |
) |
|
8.20 |
|
Net income (loss) attributable to Tribune per common share -
Diluted |
|
$ |
(0.18 |
) |
|
$ |
0.07 |
|
|
$ |
(0.85 |
) |
|
$ |
7.05 |
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
36,038 |
|
|
35,575 |
|
|
35,810 |
|
|
35,268 |
|
Diluted |
|
36,038 |
|
|
35,880 |
|
|
35,810 |
|
|
35,268 |
|
|
|
|
|
|
|
|
|
|
TRIBUNE PUBLISHING
COMPANYSEGMENT INCOME AND
EXPENSES(In
thousands)(Unaudited)
The tables below show the segmentation of income and expenses
for the three and twelve months ended December 29, 2019
as compared to the three and twelve months ended
December 30, 2018. For both years, the three-month
periods consist of 13 weeks and the twelve-month periods consist of
52 weeks.
|
M |
|
X |
|
Corporate and Eliminations |
|
Consolidated |
|
Three months ended |
|
Three months ended |
|
Three months ended |
|
Three months ended |
|
Dec. 29, 2019 |
|
Dec. 30, 2018 |
|
Dec. 29, 2019 |
|
Dec. 30, 2018 |
|
Dec. 29, 2019 |
|
Dec. 30, 2018 |
|
Dec. 29, 2019 |
|
Dec. 30, 2018 |
Operating revenues |
$ |
197,048 |
|
|
$ |
227,176 |
|
|
$ |
53,249 |
|
|
$ |
49,423 |
|
|
$ |
1,973 |
|
|
|
$ |
6,897 |
|
|
|
$ |
252,270 |
|
|
|
$ |
283,496 |
|
Operating expenses |
194,910 |
|
|
226,661 |
|
|
45,032 |
|
|
43,150 |
|
|
15,249 |
|
|
|
17,581 |
|
|
|
255,191 |
|
|
|
287,392 |
|
Income (loss) from
operations |
2,138 |
|
|
515 |
|
|
8,217 |
|
|
6,273 |
|
|
(13,276 |
) |
|
|
(10,684 |
) |
|
|
(2,921 |
) |
|
|
(3,896 |
) |
Depreciation and
amortization |
4,993 |
|
|
5,306 |
|
|
4,026 |
|
|
6,491 |
|
|
3,302 |
|
|
|
3,898 |
|
|
|
12,321 |
|
|
|
15,695 |
|
Impairment |
14,496 |
|
|
1,872 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
14,496 |
|
|
|
1,872 |
|
Adjustments |
873 |
|
|
25,550 |
|
|
447 |
|
|
1,535 |
|
|
5,618 |
|
|
|
5,701 |
|
|
|
6,938 |
|
|
|
32,786 |
|
Adjusted EBITDA |
$ |
22,500 |
|
|
$ |
33,243 |
|
|
$ |
12,690 |
|
|
$ |
14,299 |
|
|
$ |
(4,356 |
) |
|
|
$ |
(1,085 |
) |
|
|
$ |
30,834 |
|
|
|
$ |
46,457 |
|
|
M |
|
X |
|
Corporate and Eliminations |
|
Consolidated |
|
Year ended |
|
Year ended |
|
Year ended |
|
Year ended |
|
Dec. 29, 2019 |
|
Dec. 30, 2018 |
|
Dec. 29, 2019 |
|
Dec. 30, 2018 |
|
Dec. 29, 2019 |
|
Dec. 30, 2018 |
|
Dec. 29, 2019 |
|
Dec. 30, 2018 |
Operating revenues |
$ |
782,501 |
|
|
$ |
851,069 |
|
|
$ |
182,719 |
|
|
$ |
165,612 |
|
|
$ |
17,929 |
|
|
|
$ |
13,988 |
|
|
|
$ |
983,149 |
|
|
$ |
1,030,669 |
|
Operating expenses |
738,293 |
|
|
846,122 |
|
|
167,141 |
|
|
152,698 |
|
|
70,558 |
|
|
|
78,061 |
|
|
|
975,992 |
|
|
1,076,881 |
|
Income (loss) from
operations |
44,208 |
|
|
4,947 |
|
|
15,578 |
|
|
12,914 |
|
|
(52,629 |
) |
|
|
(64,073 |
) |
|
|
7,157 |
|
|
(46,212 |
) |
Depreciation and
amortization |
21,222 |
|
|
17,419 |
|
|
11,274 |
|
|
19,819 |
|
|
14,818 |
|
|
|
16,024 |
|
|
|
47,314 |
|
|
53,262 |
|
Impairment |
14,496 |
|
|
1,872 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
14,496 |
|
|
1,872 |
|
Adjustments |
5,069 |
|
|
41,476 |
|
|
6,630 |
|
|
9,272 |
|
|
20,693 |
|
|
|
34,186 |
|
|
|
32,392 |
|
|
84,934 |
|
Adjusted EBITDA |
$ |
84,995 |
|
|
$ |
65,714 |
|
|
$ |
33,482 |
|
|
$ |
42,005 |
|
|
$ |
(17,118 |
) |
|
|
$ |
(13,863 |
) |
|
|
$ |
101,359 |
|
|
$ |
93,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRIBUNE PUBLISHING
COMPANYSEGMENT INCOME AND EXPENSES
(Continued)(In
thousands)(Unaudited)
Segment M
|
|
Three months ended |
|
Year ended |
|
|
Dec. 29, 2019 |
|
Dec. 30, 2018 |
|
% Change |
|
Dec. 29, 2019 |
|
Dec. 30, 2018 |
|
% Change |
Operating
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Advertising |
|
$ |
80,003 |
|
|
$ |
101,258 |
|
|
(21.0 |
%) |
|
$ |
307,138 |
|
|
$ |
355,790 |
|
|
(13.7 |
%) |
Circulation |
|
82,352 |
|
|
89,089 |
|
|
(7.6 |
%) |
|
336,823 |
|
|
349,975 |
|
|
(3.8 |
%) |
Other |
|
34,693 |
|
|
36,829 |
|
|
(5.8 |
%) |
|
138,540 |
|
|
145,304 |
|
|
(4.7 |
%) |
Total revenues |
|
197,048 |
|
|
227,176 |
|
|
(13.3 |
%) |
|
782,501 |
|
|
851,069 |
|
|
(8.1 |
%) |
Operating
expenses |
|
194,910 |
|
|
226,661 |
|
|
(14.0 |
%) |
|
738,293 |
|
|
846,122 |
|
|
(12.7 |
%) |
Income from
operations |
|
2,138 |
|
|
515 |
|
|
* |
|
44,208 |
|
|
4,947 |
|
|
* |
Depreciation and
amortization |
|
4,993 |
|
|
5,306 |
|
|
(5.9 |
%) |
|
21,222 |
|
|
17,419 |
|
|
21.8 |
% |
Impairment |
|
14,496 |
|
|
1,872 |
|
|
* |
|
14,496 |
|
|
1,872 |
|
|
* |
Adjustments |
|
873 |
|
|
25,550 |
|
|
(96.6 |
%) |
|
5,069 |
|
|
41,476 |
|
|
(87.8 |
%) |
Adjusted
EBITDA |
|
$ |
22,500 |
|
|
$ |
33,243 |
|
|
(32.3 |
%) |
|
$ |
84,995 |
|
|
$ |
65,714 |
|
|
29.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Represents positive or negative change in excess of 100%
Segment X
|
|
Three months ended |
|
Year ended |
|
|
Dec. 29, 2019 |
|
Dec. 30, 2018 |
|
% Change |
|
Dec. 29, 2019 |
|
Dec. 30, 2018 |
|
% Change |
Operating
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Advertising |
|
$ |
25,759 |
|
|
$ |
26,239 |
|
|
(1.8 |
%) |
|
$ |
92,158 |
|
|
$ |
98,023 |
|
|
(6.0 |
%) |
Content |
|
27,490 |
|
|
23,184 |
|
|
18.6 |
% |
|
90,561 |
|
|
67,589 |
|
|
34.0 |
% |
Total revenues |
|
53,249 |
|
|
49,423 |
|
|
7.7 |
% |
|
182,719 |
|
|
165,612 |
|
|
10.3 |
% |
Operating
expenses |
|
45,032 |
|
|
43,150 |
|
|
4.4 |
% |
|
167,141 |
|
|
152,698 |
|
|
9.5 |
% |
Income from
operations |
|
8,217 |
|
|
6,273 |
|
|
31.0 |
% |
|
15,578 |
|
|
12,914 |
|
|
20.6 |
% |
Depreciation and
amortization |
|
4,026 |
|
|
6,491 |
|
|
(38.0 |
%) |
|
11,274 |
|
|
19,819 |
|
|
(43.1 |
%) |
Adjustments |
|
447 |
|
|
1,535 |
|
|
(70.9 |
%) |
|
6,630 |
|
|
9,272 |
|
|
(28.5 |
%) |
Adjusted
EBITDA |
|
$ |
12,690 |
|
|
$ |
14,299 |
|
|
(11.3 |
%) |
|
$ |
33,482 |
|
|
$ |
42,005 |
|
|
(20.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRIBUNE PUBLISHING
COMPANYCONSOLIDATED BALANCE
SHEETS(In
thousands)(Unaudited)
Preliminary
|
|
December 29, 2019 |
|
December 30, 2018 |
Assets |
|
|
|
|
Current
assets: |
|
|
|
|
Cash |
|
$ |
60,963 |
|
|
$ |
97,560 |
|
Accounts receivable, (net of allowances of $9,674 and $11,458) |
|
112,754 |
|
|
145,463 |
|
Inventories |
|
4,820 |
|
|
9,587 |
|
Prepaid expenses |
|
15,114 |
|
|
18,197 |
|
Total current assets |
|
193,651 |
|
|
270,807 |
|
Property, plant and
equipment, net |
|
123,913 |
|
|
144,963 |
|
Other
assets |
|
|
|
|
Goodwill |
|
117,675 |
|
|
132,146 |
|
Intangible assets, net |
|
69,165 |
|
|
77,229 |
|
Software, net |
|
20,736 |
|
|
27,117 |
|
Lease right-of-use asset |
|
99,480 |
|
|
— |
|
Restricted cash |
|
37,290 |
|
|
43,947 |
|
Other long-term assets |
|
20,368 |
|
|
30,418 |
|
Total other assets |
|
364,714 |
|
|
310,857 |
|
Total
assets |
|
$ |
682,278 |
|
|
$ |
726,627 |
|
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
|
Current
liabilities |
|
|
|
|
Accounts payable |
|
$ |
46,482 |
|
|
$ |
70,555 |
|
Employee compensation and benefits |
|
36,305 |
|
|
61,001 |
|
Deferred revenue |
|
42,773 |
|
|
51,114 |
|
Current portion of long-term lease liability |
|
25,380 |
|
|
— |
|
Current portion of long-term debt |
|
105 |
|
|
405 |
|
Other current liabilities |
|
24,317 |
|
|
21,203 |
|
Liabilities associated with discontinued operations |
|
— |
|
|
6,249 |
|
Total current liabilities |
|
175,362 |
|
|
210,527 |
|
Non-current
liabilities |
|
|
|
|
Long-term lease liability |
|
98,847 |
|
|
— |
|
Pension and postretirement benefits payable |
|
20,338 |
|
|
20,150 |
|
Long-term debt |
|
6,857 |
|
|
6,799 |
|
Workers’ compensation, general liability and auto insurance
payable |
|
24,192 |
|
|
30,606 |
|
Deferred rent |
|
— |
|
|
25,424 |
|
Other obligations |
|
8,355 |
|
|
20,053 |
|
Total non-current liabilities |
|
158,589 |
|
|
103,032 |
|
Noncontrolling
interest |
|
63,501 |
|
|
39,756 |
|
Stockholders’
equity |
|
284,826 |
|
|
373,312 |
|
Total liabilities and
stockholders’ equity |
|
$ |
682,278 |
|
|
$ |
726,627 |
|
|
|
|
|
|
|
|
|
|
TRIBUNE PUBLISHING
COMPANYNON-GAAP
RECONCILIATIONS(In thousands)
(Unaudited)
Preliminary
Reconciliation of Income (Loss) from Continuing
Operations to Adjusted EBITDA:
|
|
Three months ended |
|
Year ended |
|
|
Dec. 29, 2019 |
|
Dec. 30, 2018 |
|
% Change |
|
Dec. 29, 2019 |
|
Dec. 30, 2018 |
|
% Change |
Income (loss) from
continuing operations |
|
$ |
(4,410 |
) |
|
$ |
3,958 |
|
|
* |
|
$ |
3,093 |
|
|
$ |
(39,863 |
) |
|
* |
Income tax expense
(benefit) |
|
1,557 |
|
|
(4,004 |
) |
|
* |
|
1,620 |
|
|
(12,723 |
) |
|
* |
Interest income (expense),
net |
|
(21 |
) |
|
(320 |
) |
|
(93.4 |
%) |
|
(499 |
) |
|
11,353 |
|
|
* |
Loss on early extinguishment
of debt |
|
— |
|
|
— |
|
|
* |
|
— |
|
|
7,666 |
|
|
* |
Loss (gain) on equity
investments, net |
|
(267 |
) |
|
40 |
|
|
* |
|
2,988 |
|
|
1,868 |
|
|
60.0 |
% |
Other non-operating income
(expense) |
|
220 |
|
|
(3,570 |
) |
|
* |
|
(45 |
) |
|
(14,513 |
) |
|
(99.7 |
%) |
Income (loss) from
operations |
|
(2,921 |
) |
|
(3,896 |
) |
|
(25.0 |
%) |
|
7,157 |
|
|
(46,212 |
) |
|
* |
Depreciation and
amortization |
|
12,321 |
|
|
15,695 |
|
|
(21.5 |
%) |
|
47,314 |
|
|
53,262 |
|
|
(11.2 |
%) |
Impairment |
|
14,496 |
|
|
1,872 |
|
|
* |
|
14,496 |
|
|
1,872 |
|
|
* |
Restructuring and transaction
costs (1) |
|
4,833 |
|
|
29,846 |
|
|
(83.8 |
%) |
|
19,222 |
|
|
74,481 |
|
|
(74.2 |
%) |
Stock-based compensation |
|
2,105 |
|
|
2,940 |
|
|
(28.4 |
%) |
|
13,170 |
|
|
10,453 |
|
|
26.0 |
% |
Adjusted EBITDA |
|
$ |
30,834 |
|
|
$ |
46,457 |
|
|
(33.6 |
%) |
|
$ |
101,359 |
|
|
$ |
93,856 |
|
|
8.0 |
% |
* Represents positive or negative change in excess of 100%
(1) - Restructuring and transaction costs include costs related
to Tribune's internal restructuring, such as severance, charges
associated with vacated space, costs related to completed and
potential acquisitions and a one-time charge related to the
Consulting Agreement.
Adjusted EBITDA and Adjusted EBITDA
marginAdjusted EBITDA is a financial measure that is not
calculated in accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP” or
"GAAP"). Management believes that because Adjusted EBITDA
excludes (i) certain non-cash expenses (such as depreciation,
amortization, impairment, stock-based compensation, and gain/loss
on equity investments)and (ii) expenses that are not
reflective of the Company’s core operating results over time (such
as restructuring costs, including the employee voluntary separation
program and gain/losses on employee benefit plan terminations,
litigation or dispute settlement charges or gains, premiums on
stock buybacks and transaction-related costs), this measure
provides investors with additional useful information to measure
the Company’s financial performance, particularly with respect to
changes in performance from period to period. The Company’s
management uses Adjusted EBITDA (a) as a measure of operating
performance; (b) for planning and forecasting in future periods;
and (c) in communications with the Company’s Board of Directors
concerning the Company’s financial performance. In
addition, Adjusted EBITDA, or a similarly calculated measure, has
been used as the basis for certain financial maintenance covenants
that the Company was subject to in connection with certain credit
facilities. Since not all companies use identical
calculations, the Company’s presentation of Adjusted EBITDA may not
be comparable to other similarly titled measures of other companies
and should not be used by investors as a substitute or alternative
to net income or any measure of financial performance calculated
and presented in accordance with U.S. GAAP. Instead,
management believes Adjusted EBITDA should be used to supplement
the Company’s financial measures derived in accordance with U.S.
GAAP to provide a more complete understanding of the trends
affecting the business.
Although Adjusted EBITDA is frequently used by investors and
securities analysts in their evaluations of companies, Adjusted
EBITDA has limitations as an analytical tool, and investors should
not consider it in isolation or as a substitute for, or more
meaningful than, amounts determined in accordance with U.S. GAAP.
Some of the limitations to using non-GAAP measures as an analytical
tool are: they do not reflect the Company’s interest income
and expense, or the requirements necessary to service interest or
principal payments on the Company’s debt; they do not reflect
future requirements for capital expenditures or contractual
commitments; and although depreciation and amortization charges are
non-cash charges, the assets being depreciated and amortized will
often have to be replaced in the future, and non-GAAP measures do
not reflect any cash requirements for such replacements.
The Company does not provide a reconciliation of Adjusted EBITDA
guidance due to the inherent difficulty in forecasting and
quantifying certain amounts that are necessary for such
reconciliation, including adjustments that could be made for
restructuring and transaction costs, stock-based compensation
amounts and other charges reflected in our reconciliation of
historic numbers, the amount of which, based on historical
experience, could be significant.
TRIBUNE PUBLISHING
COMPANYNON-GAAP
RECONCILIATIONS(In
thousands)(Unaudited)
Preliminary
Reconciliation of Total Operating Expenses to Adjusted
Same-Business Operating Expenses:
Adjusted same-business operating expenses consist of total
operating expenses per the income statement, adjusted to exclude
the impact of items listed in the Adjusted EBITDA non-GAAP
reconciliation, the additional expenses related to the 2018
acquisitions (e.g. same-business) and the impact of the Transition
Service Agreement expenses. Management believes that adjusted
same-business operating expenses is informative to investors as it
enhances the investors' overall understanding of the financial
performance of the Company's business as they analyze current
results compared to prior periods.
|
|
Three months ended
December 29, 2019 |
|
Three months ended
December 30, 2018 |
|
|
GAAP |
|
Adjustments |
|
Adjusted Same- Business |
|
GAAP |
|
Adjustments |
|
Adjusted Same- Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation |
|
$ |
85,867 |
|
$ |
(3,196 |
) |
|
$ |
82,671 |
|
$ |
118,102 |
|
$ |
(29,776 |
) |
|
$ |
88,326 |
Newsprint and ink |
|
12,951 |
|
1 |
|
|
12,952 |
|
17,786 |
|
— |
|
|
17,786 |
Outside services |
|
86,546 |
|
(3,671 |
) |
|
82,875 |
|
86,455 |
|
(2,068 |
) |
|
84,387 |
Other |
|
43,010 |
|
(72 |
) |
|
42,938 |
|
47,482 |
|
(942 |
) |
|
46,540 |
Depreciation and
amortization |
|
12,321 |
|
(12,321 |
) |
|
— |
|
15,695 |
|
(15,695 |
) |
|
— |
Impairment |
|
14,496 |
|
(14,496 |
) |
|
— |
|
1,872 |
|
(1,872 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
$ |
255,191 |
|
$ |
(33,755 |
) |
|
$ |
221,436 |
|
$ |
287,392 |
|
$ |
(50,353 |
) |
|
$ |
237,039 |
|
|
Year ended December 29, 2019 |
|
Year ended December 30, 2018 |
|
|
GAAP |
|
Adjustments |
|
Adjusted Same- Business |
|
GAAP |
|
Adjustments |
|
Adjusted Same- Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation |
|
$ |
362,450 |
|
$ |
(41,989 |
) |
|
$ |
320,461 |
|
$ |
443,084 |
|
$ |
(75,305 |
) |
|
$ |
367,779 |
Newsprint and ink |
|
56,785 |
|
(3,994 |
) |
|
52,791 |
|
66,134 |
|
(3,025 |
) |
|
63,109 |
Outside services |
|
328,333 |
|
(28,971 |
) |
|
299,362 |
|
348,827 |
|
(37,808 |
) |
|
311,019 |
Other |
|
166,614 |
|
(49,900 |
) |
|
116,714 |
|
163,702 |
|
(39,552 |
) |
|
124,150 |
Depreciation and
amortization |
|
47,314 |
|
(47,314 |
) |
|
— |
|
53,262 |
|
(53,262 |
) |
|
— |
Impairment |
|
14,496 |
|
(14,496 |
) |
|
— |
|
1,872 |
|
(1,872 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
$ |
975,992 |
|
$ |
(186,664 |
) |
|
$ |
789,328 |
|
$ |
1,076,881 |
|
$ |
(210,824 |
) |
|
$ |
866,057 |
TRIBUNE PUBLISHING
COMPANYNON-GAAP
RECONCILIATIONS(In
thousands)(Unaudited)
Preliminary
Reconciliation of Income (loss) From Continuing
Operations available to Tribune common stockholders to Adjusted
Income (Loss) from Continuing Operations available to Tribune
common stockholders and Adjusted Diluted EPS :
Adjusted income (loss) from continuing operations available to
Tribune common stockholders is defined as income (loss) from
continuing operations available to Tribune common stockholders -
GAAP excluding the adjustments for restructuring and transaction
costs, net of the impact of income taxes.
Income (loss) from continuing operations available to Tribune
common stockholders - GAAP consists of Net income (loss) from
continuing operations per the Consolidated Statements of Income
(Loss), less Income (loss) attributable to noncontrolling interests
and the noncontrolling interest carrying value adjustment as set
forth in the Earnings Per Share calculation in the Company's Form
10-K.
Adjusted Diluted EPS computes Adjusted income (loss) from
continuing operations available to Tribune common stockholders
divided by diluted weighted average shares outstanding.
Management believes Adjusted income (loss) from continuing
operations available to Tribune common stockholders and Adjusted
Diluted EPS are informative to investors as they enhance investors'
overall understanding of the financial performance of the Company's
business as they analyze current results compared to future
recurring projections.
|
Three months ended |
|
December 29, 2019 |
|
December 30, 2018 |
|
Earnings |
|
Diluted EPS |
|
Earnings |
|
Diluted EPS |
Income (loss) from continuing operations available to Tribune
common stockholders - GAAP |
$ |
(16,865 |
) |
|
$ |
(0.46 |
) |
|
$ |
3,573 |
|
$ |
0.10 |
Adjustments to operating
expenses, net of 27.8% tax: |
|
|
|
|
|
|
|
Restructuring and transaction costs |
3,489 |
|
|
0.10 |
|
|
21,549 |
|
0.60 |
Adjusted income (loss) from
continuing operations available to Tribune common stockholders -
Non-GAAP |
$ |
(13,376 |
) |
|
$ |
(0.36 |
) |
|
$ |
25,122 |
|
$ |
0.70 |
|
Year ended |
|
December 29, 2019 |
|
December 30, 2018 |
|
Earnings |
|
Diluted EPS |
|
Earnings |
|
Diluted EPS |
Loss from continuing operations available to Tribune common
stockholders - GAAP |
$ |
(27,252 |
) |
|
$ |
(0.76 |
) |
|
$ |
(40,719 |
) |
|
$ |
(1.15 |
) |
Adjustments to operating
expenses, net of 27.8% tax: |
|
|
|
|
|
|
|
Restructuring and transaction costs |
13,878 |
|
|
0.39 |
|
|
53,775 |
|
|
1.52 |
|
Loss on extinguishment of debt |
— |
|
|
— |
|
|
5,535 |
|
|
0.16 |
|
Adjusted income (loss) from
continuing operations available to Tribune common stockholders -
Non-GAAP |
$ |
(13,374 |
) |
|
$ |
(0.37 |
) |
|
$ |
18,591 |
|
|
$ |
0.53 |
|
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