DES MOINES, Iowa, Jan. 25, 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 100
million American women — today reported record fiscal 2017 second
quarter earnings of $1.58 per share,
compared to $0.72 in the prior-year
period. Total Company revenues increased 9 percent to
$443 million, and total advertising
revenues increased 11 percent to $267
million, both representing all-time quarterly highs.
Excluding special items in both periods, fiscal 2017 second
quarter earnings per share grew 63 percent to a record $1.30 from $0.80 in
the prior-year period. (See Other Financial Information
later in this release for a description of fiscal 2017 second
quarter special items and Tables 1-6 for supplemental disclosures
regarding non-GAAP financial measures.)
"We continued our record-setting performance in the second
quarter and first half of fiscal 2017, driven by record political
advertising revenues at our television stations and double-digit
growth in digital ad revenues in both the national and local
businesses," said Meredith Chairman and CEO Stephen M. Lacy. "We continue to expect to
deliver record full fiscal year 2017 revenue and earnings
performance, driven by aggressive execution of our strategic growth
initiatives."
Looking at Meredith's performance in the second quarter of
fiscal 2017 compared to the prior year:
- Local Media Group revenues increased 31 percent to
$183 million, operating profit grew
90 percent to $77 million, and EBITDA
increased over 70 percent to $86
million, all quarterly record highs. Growth was led by a
27 percent increase in total advertising revenues, including
$40 million of political advertising
revenues. Retransmission revenues also grew strongly.
- Total Company digital advertising revenues grew 16 percent
to a quarterly record high. Traffic across Meredith's digital
and mobile sites grew to an average of nearly 90 million unique
visitors per month, and video views jumped 13 percent.
- National Media Group operating profit grew and profit margin
expanded, driven by strong growth in digital advertising
revenues. Digital advertising revenues grew 16 percent and
represented nearly 40 percent of total National Media Group
advertising. Total advertising revenues were off 2 percent, but
even on a comparable basis.
- Consumer engagement in key target demographics expanded
across Meredith's media platforms. Meredith's National Media
brands grew their reach to more than 100 million unduplicated
American women, including nearly 75 percent of U.S. Millennial
women. Meredith magazine readership currently stands at an
impressive 125 million, and Meredith's television stations
delivered a strong November rating book.
Fiscal 2017 first half earnings per share were a record
$2.33, compared to $0.96 in the prior-year period. Excluding
special items, fiscal 2017 first half earnings per share grew 55
percent to a record $2.05, up from
$1.32 in the prior-year period.
Total company revenues increased 7 percent to $843 million, and total advertising revenues grew
7 percent to $493 million, both
records.
"Our results in calendar 2016 reflect the strength of our
diversified media business," said Meredith
President and COO Tom
Harty. "In our Local Media Group, we generated a
record $67 million of political ad
revenues and increased net retransmission contribution. In
our National Media Group, we delivered growth in ad revenues as
double-digit gains in digital advertising outpaced slight declines
in magazine advertising. Importantly, we renewed our industry
leading Better Homes & Gardens licensing program at Walmart
stores nationwide."
OPERATING GROUP DETAIL
LOCAL MEDIA GROUP
Meredith's Local Media Group includes 17 owned or operated
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 local news and entertainment content each week. Meredith
expects to continue to grow its Local Media Group organically and
through strategic acquisitions.
Fiscal 2017 second quarter Local Media Group operating profit
grew 90 percent to $77 million, up
from $40 million in the prior-year
period. EBITDA grew 71 percent to $86 million. Profit margin was 42 percent
and EBITDA margin was 47 percent. Revenues increased 31
percent to $183 million.
Looking more closely at fiscal 2017 second quarter
performance:
- Total advertising revenues increased 27 percent, driven by
strong political and digital advertising performance. Highlights
included:
- Political advertising revenues were $40
million, up 37 percent from the last political cycle in the
second quarter of fiscal 2015. Political spending was particularly
robust in the Las Vegas,
St. Louis, Phoenix and Kansas
City markets, primarily due to very competitive
"down-ballot" races.
- Non-political advertising revenues were $92 million, reflecting political crowd-out,
especially in the above-mentioned markets. Excluding those markets,
non-political advertising revenues were down low-single
digits.
- Digital advertising revenues grew 18 percent compared to the
prior-year period, as innovative growth strategies continue to
drive higher digital sales across Meredith's station group.
- Other revenues and operating expenses increased compared to the
prior-year period, due primarily to growth in retransmission
revenues from cable and satellite television operators, partially
offset by higher programming fees paid to affiliated networks.
Meredith delivered strong performance in the November 2016 rating book. Nine Meredith
stations ranked number one or two in late news, while seven
stations ranked number one or two in morning news.
To further strengthen its competitive position, in fiscal 2017
Meredith has launched additional newscasts in the Atlanta, Phoenix, Portland, Nashville, Greenville and Flint/Saginaw markets.
These initiatives increased Meredith's total local news and
entertainment programming hours to 700 per week.
Additionally, Meredith continues to implement a local audience
development initiative designed to increase Millennial audience
engagement with its stations on social and digital platforms.
Fiscal 2017 first half Local Media Group operating profit grew
83 percent to $127 million, up from
$70 million in the prior-year
period. EBITDA grew 63 percent to $145
million. Profit margin was 38 percent and EBITDA
margin was 43 percent. Revenues increased 26 percent to
$336 million, including $56 million of political advertising. All
represent fiscal first-half records.
NATIONAL MEDIA GROUP
Meredith's National Media Group reaches more than 100 million
unduplicated American women, including nearly 75 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 second quarter National Media Group operating profit
was $47 million, or $34 million excluding special items. That
compares to $34 million in the
prior-year period. Revenues were $259
million, compared to $267
million in the prior-year period. (See Other
Financial Information later in this release for a description of
fiscal 2017 second quarter special items and Tables 1-6 for
supplemental disclosures regarding non-GAAP financial
measures.)
Looking more closely at National Media Group fiscal 2017 second
quarter performance compared to the prior-year period:
- Total advertising revenues declined slightly to $135 million, but were even on a comparable
basis, which excludes MORE magazine.
- Digital advertising revenue rose 16 percent, and accounted for
38 percent of total National Media Group advertising revenues.
Growth was led by the Allrecipes, Parents and Shape brands.
- Meredith's share of total magazine advertising revenues
increased to 13.8 percent from 12.5 percent, according to the most
recent data from Publishers Information Bureau. The Family Circle,
Allrecipes and EatingWell brands posted strong performance. The
beauty, pets and direct response advertising categories were growth
leaders.
- Circulation revenues increased slightly to $67 million, driven by an increase in newsstand
revenues that was led by a strong debut of The Magnolia
Journal, Meredith's quarterly lifestyle magazine based on
Joanna and Chip Gaines' popular
Magnolia brand.
- Expenses declined 9 percent, and were down 3 percent excluding
special items, compared to the prior-year period, as Meredith
continued to pursue operational efficiencies.
Meredith's National Media Group continues to extend its reach to
American consumers and further diversify its revenue streams in
fiscal 2017. For example:
- 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 an EatingWell line of frozen foods; SHAPE fitness
apparel; and Allrecipes cooking utensils.
- Meredith grew the reach and impact of its Allrecipes brand, the
world's largest in food media. Traffic increased 13 percent to an
average of more than 55 million monthly unique visitors. Meredith
introduced a new national broadcast television series based on the
Allrecipes brand, and increased the ratebase of Allrecipes magazine
to 1.35 million, up from 500,000 when it launched three years
ago.
Fiscal 2017 first half National Media Group operating profit was
$71 million, or $58 million excluding special items. Fiscal
2017 first half revenues were $507
million compared to $525
million in the prior-year period.
OTHER FINANCIAL INFORMATION
Cash flow from operations grew to $117
million in the first six months of fiscal 2017 from
$48 million in the prior-year
period. Total debt was $674
million and the weighted average interest rate was 2.8
percent, with $400 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
December 31, 2016.
Meredith continues to focus on its successful Total Shareholder
Return strategy. Key elements include:
- An annualized dividend of $1.98
per share that's yielding approximately 3.5 percent based on
yesterday's closing price. Meredith has paid dividends for 69
consecutive years and increased them for 23 years straight.
- An ongoing share repurchase program with $74 million remaining under current
authorizations.
- Strategic investments to scale the business and increase
shareholder value.
Fiscal 2017 second quarter special items included a reduction in
a previously accrued contingent consideration payable and the
resolution of certain federal and state tax matters. These
benefits were partially offset by restructuring and other
charges. (See Tables 1-6
for supplemental disclosures regarding non-GAAP financial
measures.)
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 second quarter comparisons are
against the comparable prior-year period unless otherwise
stated.
OUTLOOK
Including special items recorded in fiscal 2017, Meredith
expects fiscal 2017 full-year earnings per share to range from
$3.78 to $4.08.
Excluding special items recorded in fiscal 2017, Meredith
continues to expect fiscal 2017 full-year earnings per share to
range from $3.50 to $3.80, as
originally communicated on July 28,
2016.
Meredith expects fiscal 2017 third quarter earnings per share
to range from $0.75 to $0.80, with
total revenues for each of its Local and National Media Groups flat
to down slightly.
CONFERENCE CALL WEBCAST
Meredith will host a conference call on January 25, 2017, at 8:30
a.m. EST to discuss fiscal 2017 second 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 third
quarter and full-year fiscal 2017.
Actual results may differ materially from those currently
anticipated. Factors that could adversely affect future
results include, but are not limited to, downturns in national
and/or local economies; a softening of the domestic advertising
market; world, national or local events that could disrupt
broadcast television; increased consolidation among major
advertisers or other events depressing the level of advertising
spending; the unexpected loss or insolvency of one or more major
clients or vendors; the integration of acquired businesses; changes
in consumer reading, purchasing and/or television viewing patterns;
increases in paper, postage, printing, syndicated programming or
other costs; changes in television network affiliation agreements;
technological developments affecting products or methods of
distribution; changes in government regulations affecting the
Company's industries; increases in interest rates; and the
consequences of acquisitions and/or dispositions. The Company
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events or
otherwise.
ABOUT MEREDITH CORPORATION
Meredith Corporation (NYSE: MDP; meredith.com) has been
committed to service journalism for 115 years. Today,
Meredith uses multiple distribution platforms — including broadcast
television, print, digital, mobile and video — to provide consumers
with content they desire and to deliver the messages of its
advertising and marketing partners.
Meredith's Local Media Group includes 17 owned or operated
television stations reaching 11 percent of U.S. households.
Meredith's portfolio is concentrated in large, fast-growing
markets, with seven stations in the nation's Top 25 — including
Atlanta, Phoenix, St.
Louis and Portland — and 13
in Top 50 markets. Meredith's stations produce 700 hours of
local news and entertainment content each week, and operate leading
local digital destinations.
Meredith's National Media Group reaches more than 100 million
unduplicated women every month, including nearly 75 percent of U.S.
Millennial women. Meredith is the leader in creating and
distributing content across platforms in key consumer interest
areas such as food, home, parenting and 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., Bank of America, WebMD, Volkswagen and
NBCUniversal.
Meredith's balanced portfolio consistently generates substantial
free-cash flow, and the Company is committed to growing Total
Shareholder Return through dividend payments, share repurchases and
strategic business investments. Meredith's current annualized
dividend of $1.98 per share yields
approximately 3.5 percent. Meredith has paid a dividend for 69
straight years and increased it for 23 consecutive years.
Meredith
Corporation and Subsidiaries
|
Condensed
Consolidated Statements of Earnings (Unaudited)
|
|
|
Three
Months
|
|
Six
Months
|
Periods ended
December 31,
|
2016
|
|
2015
|
|
2016
|
|
2015
|
(In thousands
except per share data)
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
Advertising
|
$
|
267,129
|
|
|
$
|
241,571
|
|
|
$
|
493,018
|
|
|
$
|
460,241
|
|
Circulation
|
66,805
|
|
|
66,351
|
|
|
135,473
|
|
|
138,526
|
|
All other
|
108,708
|
|
|
98,491
|
|
|
214,030
|
|
|
192,312
|
|
Total
revenues
|
442,642
|
|
|
406,413
|
|
|
842,521
|
|
|
791,079
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Production,
distribution, and editorial
|
148,625
|
|
|
151,065
|
|
|
298,853
|
|
|
304,243
|
|
Selling, general, and
administrative
|
170,643
|
|
|
176,792
|
|
|
345,636
|
|
|
351,522
|
|
Depreciation and
amortization
|
13,549
|
|
|
14,986
|
|
|
27,445
|
|
|
30,066
|
|
Merger-related
costs
|
—
|
|
|
3,457
|
|
|
—
|
|
|
16,123
|
|
Total operating
expenses
|
332,817
|
|
|
346,300
|
|
|
671,934
|
|
|
701,954
|
|
Income from
operations
|
109,825
|
|
|
60,113
|
|
|
170,587
|
|
|
89,125
|
|
Interest expense,
net
|
(4,679)
|
|
|
(5,265)
|
|
|
(9,428)
|
|
|
(10,578)
|
|
Earnings before
income taxes
|
105,146
|
|
|
54,848
|
|
|
161,159
|
|
|
78,547
|
|
Income
taxes
|
(33,341)
|
|
|
(22,329)
|
|
|
(55,381)
|
|
|
(34,999)
|
|
Net
earnings
|
$
|
71,805
|
|
|
$
|
32,519
|
|
|
$
|
105,778
|
|
|
$
|
43,548
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
1.61
|
|
|
$
|
0.73
|
|
|
$
|
2.38
|
|
|
$
|
0.98
|
|
Basic average shares
outstanding
|
44,511
|
|
|
44,640
|
|
|
44,535
|
|
|
44,626
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
|
1.58
|
|
|
$
|
0.72
|
|
|
$
|
2.33
|
|
|
$
|
0.96
|
|
Diluted average
shares outstanding
|
45,378
|
|
|
45,358
|
|
|
45,385
|
|
|
45,373
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$
|
0.4950
|
|
|
$
|
0.4575
|
|
|
$
|
0.9900
|
|
|
$
|
0.9150
|
|
Meredith
Corporation and Subsidiaries
|
Segment
Information (Unaudited)
|
|
|
Three
Months
|
|
Six
Months
|
Periods ended
December 31,
|
2016
|
|
2015
|
|
2016
|
|
2015
|
(In
thousands)
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
National
media
|
|
|
|
|
|
|
|
Advertising
|
$
|
135,103
|
|
|
$
|
137,216
|
|
|
$
|
260,455
|
|
|
$
|
264,456
|
|
Circulation
|
66,805
|
|
|
66,351
|
|
|
135,473
|
|
|
138,526
|
|
Other
revenues
|
57,437
|
|
|
62,960
|
|
|
110,710
|
|
|
121,744
|
|
Total national
media
|
259,345
|
|
|
266,527
|
|
|
506,638
|
|
|
524,726
|
|
Local
media
|
|
|
|
|
|
|
|
Non-political
advertising
|
91,958
|
|
|
103,557
|
|
|
176,142
|
|
|
192,867
|
|
Political
advertising
|
40,068
|
|
|
798
|
|
|
56,421
|
|
|
2,918
|
|
Other
revenues
|
51,271
|
|
|
35,531
|
|
|
103,320
|
|
|
70,568
|
|
Total local
media
|
183,297
|
|
|
139,886
|
|
|
335,883
|
|
|
266,353
|
|
Total
revenues
|
$
|
442,642
|
|
|
$
|
406,413
|
|
|
$
|
842,521
|
|
|
$
|
791,079
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
|
|
|
|
|
National
media
|
$
|
46,757
|
|
|
$
|
33,583
|
|
|
$
|
70,868
|
|
|
$
|
56,386
|
|
Local
media
|
76,815
|
|
|
40,441
|
|
|
127,437
|
|
|
69,768
|
|
Unallocated
corporate
|
(13,747)
|
|
|
(13,911)
|
|
|
(27,718)
|
|
|
(37,029)
|
|
Income from
operations
|
$
|
109,825
|
|
|
$
|
60,113
|
|
|
$
|
170,587
|
|
|
$
|
89,125
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
National
media
|
$
|
4,330
|
|
|
$
|
4,833
|
|
|
$
|
8,848
|
|
|
$
|
9,398
|
|
Local
media
|
8,865
|
|
|
9,616
|
|
|
17,855
|
|
|
19,594
|
|
Unallocated
corporate
|
354
|
|
|
537
|
|
|
742
|
|
|
1,074
|
|
Total depreciation
and amortization
|
$
|
13,549
|
|
|
$
|
14,986
|
|
|
$
|
27,445
|
|
|
$
|
30,066
|
|
|
|
|
|
|
|
|
|
EBITDA 1
|
|
|
|
|
|
|
|
National
media
|
$
|
51,087
|
|
|
$
|
38,416
|
|
|
$
|
79,716
|
|
|
$
|
65,784
|
|
Local
media
|
85,680
|
|
|
50,057
|
|
|
145,292
|
|
|
89,362
|
|
Unallocated
corporate
|
(13,393)
|
|
|
(13,374)
|
|
|
(26,976)
|
|
|
(35,955)
|
|
Total EBITDA
1
|
$
|
123,374
|
|
|
$
|
75,099
|
|
|
$
|
198,032
|
|
|
$
|
119,191
|
|
|
1
EBITDA is net earnings before interest, taxes, depreciation, and
amortization.
|
Meredith
Corporation and Subsidiaries
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
Assets
|
December 31,
2016
|
|
June 30,
2016
|
(In
thousands)
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
44,488
|
|
|
$
|
24,970
|
|
Accounts receivable,
net
|
284,840
|
|
|
273,927
|
|
Inventories
|
20,009
|
|
|
20,678
|
|
Current portion of
subscription acquisition costs
|
147,630
|
|
|
133,338
|
|
Current portion of
broadcast rights
|
11,093
|
|
|
4,220
|
|
Other current
assets
|
23,422
|
|
|
24,023
|
|
Total current
assets
|
531,482
|
|
|
481,156
|
|
Property, plant, and
equipment
|
536,744
|
|
|
530,052
|
|
Less accumulated
depreciation
|
(352,986)
|
|
|
(339,099)
|
|
Net property, plant,
and equipment
|
183,758
|
|
|
190,953
|
|
Subscription
acquisition costs
|
97,939
|
|
|
95,960
|
|
Broadcast
rights
|
4,610
|
|
|
4,565
|
|
Other
assets
|
57,711
|
|
|
57,151
|
|
Intangible assets,
net
|
913,157
|
|
|
913,877
|
|
Goodwill
|
895,389
|
|
|
883,129
|
|
Total
assets
|
$
|
2,684,046
|
|
|
$
|
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
|
11,956
|
|
|
4,649
|
|
Accounts
payable
|
75,694
|
|
|
82,107
|
|
Accrued expenses and
other liabilities
|
127,598
|
|
|
116,777
|
|
Current portion of
unearned subscription revenues
|
213,648
|
|
|
199,359
|
|
Total current
liabilities
|
491,396
|
|
|
477,892
|
|
Long-term
debt
|
611,691
|
|
|
618,506
|
|
Long-term broadcast
rights payable
|
5,528
|
|
|
5,524
|
|
Unearned subscription
revenues
|
131,002
|
|
|
128,534
|
|
Deferred income
taxes
|
361,278
|
|
|
336,346
|
|
Other noncurrent
liabilities
|
127,266
|
|
|
170,946
|
|
Total
liabilities
|
1,728,161
|
|
|
1,737,748
|
|
Shareholders'
equity
|
|
|
|
Common
stock
|
39,335
|
|
|
39,272
|
|
Class B
stock
|
5,160
|
|
|
5,284
|
|
Additional paid-in
capital
|
55,333
|
|
|
54,282
|
|
Retained
earnings
|
879,661
|
|
|
818,706
|
|
Accumulated other
comprehensive loss
|
(23,604)
|
|
|
(28,501)
|
|
Total
shareholders' equity
|
955,885
|
|
|
889,043
|
|
Total liabilities
and shareholders' equity
|
$
|
2,684,046
|
|
|
$
|
2,626,791
|
|
Meredith
Corporation and Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
Six months ended
December 31,
|
2016
|
|
2015
|
(In
thousands)
|
|
|
|
Net cash provided
by operating activities
|
$
|
117,281
|
|
|
$
|
47,702
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisitions of and
investments in businesses
|
(11,819)
|
|
|
(186)
|
|
Additions to
property, plant, and equipment
|
(10,949)
|
|
|
(7,866)
|
|
Proceeds from
disposition of assets
|
—
|
|
|
1,767
|
|
Net cash used in
investing activities
|
(22,768)
|
|
|
(6,285)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
issuance of long-term debt
|
270,000
|
|
|
90,000
|
|
Repayments of
long-term debt
|
(288,125)
|
|
|
(86,250)
|
|
Dividends
paid
|
(44,823)
|
|
|
(41,362)
|
|
Purchases of Company
stock
|
(26,453)
|
|
|
(6,538)
|
|
Proceeds from common
stock issued
|
16,988
|
|
|
6,455
|
|
Payment of
acquisition related contingent consideration
|
(4,000)
|
|
|
(288)
|
|
Excess tax benefits
from share-based payments
|
2,883
|
|
|
1,706
|
|
Other
|
(1,465)
|
|
|
(114)
|
|
Net cash used in
financing activities
|
(74,995)
|
|
|
(36,391)
|
|
Net increase in cash
and cash equivalents
|
19,518
|
|
|
5,026
|
|
Cash and cash
equivalents at beginning of period
|
24,970
|
|
|
22,833
|
|
Cash and cash
equivalents at end of period
|
$
|
44,488
|
|
|
$
|
27,859
|
|
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
December 31, 2016
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In thousands
except per share data)
|
|
|
|
|
Operating profit
excluding special items (non-GAAP)
|
$
|
34,269
|
|
$
|
78,938
|
|
$
|
(13,309)
|
|
$
|
99,898
|
|
Special
items
|
|
|
|
|
Write-down of
contingent consideration payable
|
19,580
|
|
—
|
|
—
|
|
19,580
|
|
Severance and related
benefit costs
|
(6,695)
|
|
(445)
|
|
(438)
|
|
(7,578)
|
|
Write-down of
impaired assets
|
—
|
|
(1,678)
|
|
—
|
|
(1,678)
|
|
Other
|
(397)
|
|
—
|
|
—
|
|
(397)
|
|
Total special
items
|
12,488
|
|
(2,123)
|
|
(438)
|
|
9,927
|
|
Operating
profit
|
$
|
46,757
|
|
$
|
76,815
|
|
$
|
(13,747)
|
|
$
|
109,825
|
|
|
|
|
|
|
Earnings per share
excluding special items (non-GAAP)
|
$
|
1.30
|
|
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 $9,927 ($6,105 after tax)
|
0.13
|
|
Total per share
impact of special items
|
0.28
|
|
Diluted earnings
per share
|
$
|
1.58
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
December 31, 2016
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In thousands
except per share data)
|
|
|
|
|
Operating profit
excluding special items (non-GAAP)
|
$
|
58,380
|
|
$
|
129,560
|
|
$
|
(27,280)
|
|
$
|
160,660
|
|
Special
items
|
|
|
|
|
Write-down of
contingent consideration payable
|
19,580
|
|
—
|
|
—
|
|
19,580
|
|
Severance and related
benefit costs
|
(6,695)
|
|
(445)
|
|
(438)
|
|
(7,578)
|
|
Write-down of
impaired assets
|
—
|
|
(1,678)
|
|
—
|
|
(1,678)
|
|
Other
|
(397)
|
|
—
|
|
—
|
|
(397)
|
|
Total special
items
|
12,488
|
|
(2,123)
|
|
(438)
|
|
9,927
|
|
Operating
profit
|
$
|
70,868
|
|
$
|
127,437
|
|
$
|
(27,718)
|
|
$
|
170,587
|
|
|
|
|
|
|
Earnings per share
excluding special items (non-GAAP)
|
$
|
2.05
|
|
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 $9,927 ($6,105 after tax)
|
0.13
|
|
Total per share
impact of special items
|
0.28
|
|
Diluted earnings
per share
|
$
|
2.33
|
|
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
December 31, 2015
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In thousands
except per share data)
|
|
|
|
|
Operating profit
excluding special items (non-GAAP)
|
$
|
34,083
|
|
$
|
40,441
|
|
$
|
(10,454)
|
|
$
|
64,070
|
|
Special
items
|
|
|
|
|
Merger-related
costs
|
—
|
|
—
|
|
(3,457)
|
|
(3,457)
|
|
Severance and related
benefit costs
|
(1,014)
|
|
—
|
|
—
|
|
(1,014)
|
|
Reversal of
previously accrued restructuring costs
|
514
|
|
—
|
|
—
|
|
514
|
|
Total special
items
|
(500)
|
|
—
|
|
(3,457)
|
|
(3,957)
|
|
Operating
profit
|
$
|
33,583
|
|
$
|
40,441
|
|
$
|
(13,911)
|
|
$
|
60,113
|
|
|
|
|
|
|
Earnings per share
excluding special items (non-GAAP)
|
$
|
0.80
|
|
Per share impact of
special items of $3,957 ($3,764 after tax)
|
(0.08)
|
|
Diluted earnings
per share
|
$
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
December 31, 2015
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In thousands
except per share data)
|
|
|
|
|
Operating profit
excluding special items (non-GAAP)
|
$
|
60,120
|
|
$
|
68,830
|
|
$
|
(20,906)
|
|
$
|
108,044
|
|
Special
items
|
|
|
|
|
Merger-related
costs
|
—
|
|
—
|
|
(16,123)
|
|
(16,123)
|
|
Severance and related
benefit costs
|
(4,248)
|
|
(132)
|
|
—
|
|
(4,380)
|
|
Reversal of
previously accrued restructuring costs
|
514
|
|
1,070
|
|
—
|
|
1,584
|
|
Total special
items
|
(3,734)
|
|
938
|
|
(16,123)
|
|
(18,919)
|
|
Operating
profit
|
$
|
56,386
|
|
$
|
69,768
|
|
$
|
(37,029)
|
|
$
|
89,125
|
|
|
|
|
|
|
Earnings per share
excluding special items (non-GAAP)
|
$
|
1.32
|
|
Per share impact of
special items of $18,919 ($16,333 after tax)
|
(0.36)
|
|
Diluted earnings
per share
|
$
|
0.96
|
|
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
December 31, 2016
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
thousands)
|
|
|
|
|
Revenues
|
$
|
259,345
|
|
$
|
183,297
|
|
$
|
—
|
|
$
|
442,642
|
|
|
|
|
|
|
Operating
profit
|
$
|
46,757
|
|
$
|
76,815
|
|
$
|
(13,747)
|
|
$
|
109,825
|
|
Depreciation and
amortization
|
4,330
|
|
8,865
|
|
354
|
|
13,549
|
|
EBITDA
|
51,087
|
|
85,680
|
|
(13,393)
|
|
123,374
|
|
Special
items
|
|
|
|
|
Write-down of
contingent consideration payable
|
(19,580)
|
|
—
|
|
—
|
|
(19,580)
|
|
Severance and related
benefit costs
|
6,695
|
|
445
|
|
438
|
|
7,578
|
|
Write-down of
impaired assets
|
—
|
|
1,678
|
|
—
|
|
1,678
|
|
Other
|
397
|
|
—
|
|
—
|
|
397
|
|
Total special
items
|
(12,488)
|
|
2,123
|
|
438
|
|
(9,927)
|
|
Adjusted
EBITDA
|
$
|
38,599
|
|
$
|
87,803
|
|
$
|
(12,955)
|
|
113,447
|
|
Less
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
(13,549)
|
|
Special
items
|
|
|
|
9,927
|
|
Net interest
expense
|
|
|
|
(4,679)
|
|
Income
taxes
|
|
|
|
(33,341)
|
|
Net
earnings
|
|
|
|
$
|
71,805
|
|
|
|
|
|
|
Segment EBITDA
margin
|
19.7
|
%
|
46.7
|
%
|
|
|
Segment adjusted
EBITDA margin
|
14.9
|
%
|
47.9
|
%
|
|
|
|
Table 3
continued
|
|
Six months ended
December 31, 2016
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
thousands)
|
|
|
|
|
Revenues
|
$
|
506,638
|
|
$
|
335,883
|
|
$
|
—
|
|
$
|
842,521
|
|
|
|
|
|
|
Operating
profit
|
$
|
70,868
|
|
$
|
127,437
|
|
$
|
(27,718)
|
|
$
|
170,587
|
|
Depreciation and
amortization
|
8,848
|
|
17,855
|
|
742
|
|
27,445
|
|
EBITDA
|
79,716
|
|
145,292
|
|
(26,976)
|
|
198,032
|
|
Special
items
|
|
|
|
|
Write-down of
contingent consideration payable
|
(19,580)
|
|
—
|
|
—
|
|
(19,580)
|
|
Severance and related
benefit costs
|
6,695
|
|
445
|
|
438
|
|
7,578
|
|
Write-down of
impaired assets
|
—
|
|
1,678
|
|
—
|
|
1,678
|
|
Other
|
397
|
|
—
|
|
—
|
|
397
|
|
Total special
items
|
(12,488)
|
|
2,123
|
|
438
|
|
(9,927)
|
|
Adjusted
EBITDA
|
$
|
67,228
|
|
$
|
147,415
|
|
$
|
(26,538)
|
|
188,105
|
|
Less
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
(27,445)
|
|
Special
items
|
|
|
|
9,927
|
|
Net interest
expense
|
|
|
|
(9,428)
|
|
Income
taxes
|
|
|
|
(55,381)
|
|
Net
earnings
|
|
|
|
$
|
105,778
|
|
|
|
|
|
|
Segment EBITDA
margin
|
15.7
|
%
|
43.3
|
%
|
|
|
Segment adjusted
EBITDA margin
|
13.3
|
%
|
43.9
|
%
|
|
|
|
|
|
|
|
Table
4
|
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
December 31, 2015
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
thousands)
|
|
|
|
|
Revenues
|
$
|
266,527
|
|
$
|
139,886
|
|
$
|
—
|
|
$
|
406,413
|
|
|
|
|
|
|
Operating
profit
|
$
|
33,583
|
|
$
|
40,441
|
|
$
|
(13,911)
|
|
$
|
60,113
|
|
Depreciation and
amortization
|
4,833
|
|
9,616
|
|
537
|
|
14,986
|
|
EBITDA
|
38,416
|
|
50,057
|
|
(13,374)
|
|
75,099
|
|
Special
items
|
|
|
|
|
Merger-related
costs
|
—
|
|
—
|
|
3,457
|
|
3,457
|
|
Severance and related
benefit costs
|
1,014
|
|
—
|
|
—
|
|
1,014
|
|
Reversal of
previously accrued restructuring costs
|
(514)
|
|
—
|
|
—
|
|
(514)
|
|
Total special
items
|
500
|
|
—
|
|
3,457
|
|
3,957
|
|
Adjusted
EBITDA
|
$
|
38,916
|
|
$
|
50,057
|
|
$
|
(9,917)
|
|
79,056
|
|
Less
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
(14,986)
|
|
Special
items
|
|
|
|
(3,957)
|
|
Net interest
expense
|
|
|
|
(5,265)
|
|
Income
taxes
|
|
|
|
(22,329)
|
|
Net
earnings
|
|
|
|
$
|
32,519
|
|
|
|
|
|
|
Segment EBITDA
margin
|
14.4
|
%
|
35.8
|
%
|
|
|
Segment adjusted
EBITDA margin
|
14.6
|
%
|
35.8
|
%
|
|
|
|
Table 4
continued
|
|
Six months ended
December 31, 2015
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
thousands)
|
|
|
|
|
Revenues
|
$
|
524,726
|
|
$
|
266,353
|
|
$
|
—
|
|
$
|
791,079
|
|
|
|
|
|
|
Operating
profit
|
$
|
56,386
|
|
$
|
69,768
|
|
$
|
(37,029)
|
|
$
|
89,125
|
|
Depreciation and
amortization
|
9,398
|
|
19,594
|
|
1,074
|
|
30,066
|
|
EBITDA
|
65,784
|
|
89,362
|
|
(35,955)
|
|
119,191
|
|
Special
items
|
|
|
|
|
Merger-related
costs
|
—
|
|
—
|
|
16,123
|
|
16,123
|
|
Severance and related
benefit costs
|
4,248
|
|
132
|
|
—
|
|
4,380
|
|
Reversal of
previously accrued restructuring costs
|
(514)
|
|
(1,070)
|
|
—
|
|
(1,584)
|
|
Total special
items
|
3,734
|
|
(938)
|
|
16,123
|
|
18,919
|
|
Adjusted
EBITDA
|
$
|
69,518
|
|
$
|
88,424
|
|
$
|
(19,832)
|
|
138,110
|
|
Less
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
(30,066)
|
|
Special
items
|
|
|
|
(18,919)
|
|
Net interest
expense
|
|
|
|
(10,578)
|
|
Income
taxes
|
|
|
|
(34,999)
|
|
Net
earnings
|
|
|
|
$
|
43,548
|
|
|
|
|
|
|
Segment EBITDA
margin
|
12.5
|
%
|
33.6
|
%
|
|
|
Segment adjusted
EBITDA margin
|
13.2
|
%
|
33.2
|
%
|
|
|
|
|
|
|
|
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.
|
|
Three months ended
December 31,
|
2016
|
|
2015
|
|
Change
|
(In
thousands)
|
|
|
|
|
|
National media
operating expenses
|
|
|
|
|
|
Operating expenses
excluding special items (non-GAAP)
|
$
|
225,076
|
|
|
$
|
232,444
|
|
|
(3)%
|
|
Special
items
|
|
|
|
|
|
Write-down of
contingent consideration payable
|
(19,580)
|
|
|
—
|
|
|
|
Severance and related
benefit costs
|
6,695
|
|
|
1,014
|
|
|
|
Reversal of
previously accrued restructuring costs
|
(13)
|
|
|
(514)
|
|
|
|
Other
|
410
|
|
|
—
|
|
|
|
Total special
items
|
(12,488)
|
|
|
500
|
|
|
|
National media
operating expenses
|
$
|
212,588
|
|
|
$
|
232,944
|
|
|
(9)%
|
|
Table
6
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Special
Items - The following table shows projected diluted
earnings per share excluding special items and as projected with
the difference being the special items. Projected diluted earnings
per share excluding special items is a non-GAAP measure.
Management's rationale for presenting non-GAAP measures is included
in the text of this earnings release.
|
|
Year ended June
30, 2017
|
Low
|
|
High
|
Projected diluted
earnings per share excluding special items (non-GAAP)
|
$
|
3.50
|
|
|
$
|
3.80
|
|
Total per share
impact of special items (see Table 1)
|
0.28
|
|
|
0.28
|
|
Projected diluted
earnings per share
|
$
|
3.78
|
|
|
$
|
4.08
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/meredith-delivers-record-fiscal-2017-2nd-quarter-and-1st-half-results-300396158.html
SOURCE Meredith Corporation