In the news release, Meredith Reports Fiscal 2018 Full Year And
Fourth Quarter Results, issued 10-Aug-2018 by Meredith Corporation over PR
Newswire, we are advised by the company that the Company
incorrectly stated its full-year fiscal 2019 expectations for
earnings per share from continuing operations. Correctly stated,
Meredith expects full-year fiscal 2019 earnings per share from
continuing operations to range from $2.78 to $3.20.
Additionally, the Company has added Table 7, which details the
calculation of these amounts. No other information in this release,
including the Fiscal 2019 Outlook, is impacted by this correction.
The complete, corrected release follows:
Meredith Reports Fiscal 2018 Full Year And Fourth Quarter Results
Full Year Revenues Increase More Than 30 Percent to Over
$2.2 billion Digital Business
Generates Record Traffic and Financial Performance, Led by
People.com Local Media Group Delivers Record Results for a
Non-Political Year Reaffirms Goals of
$1
Billion of Debt Reduction in FY 2019 and
$1 Billion of EBITDA in FY 2020
DES MOINES, Iowa, Aug. 10, 2018 /PRNewswire/ -- Meredith
Corporation (NYSE: MDP; meredith.com), the leading media and
marketing company with national brands serving 175 million
unduplicated Americans — including 80 percent of U.S. millennial
women and a subscription base of more than 40 million — and 17
local television stations in fast-growing markets, today reported
fiscal 2018 full year and fourth quarter results.
Since closing the Time Inc. acquisition on January 31, 2018, and reporting its fiscal 2018
third quarter earnings on May 10,
2018:
- Meredith reaffirmed its goals of reducing debt by
$1 billion in fiscal 2019 and
generating $1 billion of adjusted
EBITDA in fiscal 2020.
-
- Meredith plans to use its cash balance of nearly $440 million at June 30,
2018, along with proceeds from anticipated asset sales and
cash generated from operations, to achieve its debt reduction goal
of $1 billion in fiscal 2019.
Meredith expects no tax leakage from these asset sales.
- Meredith expects to generate adjusted EBITDA in fiscal 2019
more than double its previous record high, driven by a full year of
contribution from the acquisition; election-year political
advertising revenue in its Local Media Group; and ongoing cost
synergies (see Fiscal 2019 Outlook for additional
detail).
- Meredith is on target to generate over $500 million in annual cost savings in the first
two full years of operations following the acquisition which,
combined with expected revenue performance improvement, will help
Meredith achieve its goal of generating $1
billion of adjusted EBITDA in fiscal 2020.
- Meredith's digital business generated record traffic and
financial performance with its larger footprint. Companywide
digital activities generated a record $350
million of high margin revenues in fiscal 2018, reflecting a
broad and diverse digital footprint that includes advertising,
e-commerce, and paid products and services. Traffic across
Meredith's digital properties averaged nearly 135 million monthly
unique visitors in June 2018, up over
50 percent from the same month a year ago. The People/Entertainment
Weekly Network generated record traffic, averaging 60 million
monthly unique visitors in the fourth quarter of fiscal 2018.
- Meredith leveraged the power of its expanded portfolio to
grow its high-margin consumer revenue activities. These include
revenues generated from Meredith's national media brands with their
subscription base of more than 40 million; affinity marketer
Synapse; a robust brand licensing business ranked as the world's
second-largest; and rapidly growing e-commerce activities. Looking
ahead, Meredith expects more than 45 percent of fiscal 2019
National Media Group revenues to be generated from consumer-related
sources.
- Meredith's Local Media Group delivered $16 million in political advertising revenues in
fiscal 2018, a record for a non-political year. Meredith
anticipates a very strong political advertising season in fiscal
2019, potentially eclipsing the record $63
million generated in fiscal 2017, the most recent political
cycle. In fact, fiscal 2019 first-quarter political advertising
revenues are pacing well above the $16
million generated in the first quarter of fiscal 2017.
"We have positioned Meredith Corporation on a growth track not
realizable absent this acquisition, while continuing to pay a very
attractive dividend to our shareholders," said Meredith Corporation
Executive Chairman Stephen M. Lacy.
"In fiscal 2018, we continued to strengthen our leading national
and local media brands while adding powerful new brands such as
People, InStyle, Southern Living and Real Simple, creating the most
attractive portfolio in the marketplace."
FISCAL 2018 FULL YEAR AND FOURTH QUARTER FINANCIAL
RESULTS
Looking at Meredith's fiscal 2018 results compared to the
prior year:
- Total Company revenues from continuing operations grew more
than 30 percent to over $2.2 billion,
and total advertising revenues grew 20 percent to $1.1 billion.
- Earnings from continuing operations, including special items in
both periods, were $114 million,
compared to $189 million. Special
items in fiscal 2018 are primarily related to transaction,
restructuring and integration costs, along with the remeasurement
of deferred income tax assets and liabilities due to tax
reform.
- Excluding special items, earnings from continuing operations
were $148 million, compared to
$182 million. (See Tables 1-5 for supplemental disclosures
regarding non-GAAP financial measures.)
- Adjusted EBITDA was a record $421
million, compared to $362
million, a 16 percent increase.
Looking at Meredith's fiscal 2018 fourth quarter results
compared to the prior-year quarter:
- Total Company revenues from continuing operations grew 77
percent to $788 million.
- Earnings from continuing operations, including special items in
both periods, were $17 million,
compared to $43 million.
- Excluding special items, earnings from continuing operations
were $31 million, compared to
$49 million.
- Adjusted EBITDA was $160 million,
compared to $91 million, a 76 percent
increase.
"Our legacy Meredith businesses continue to perform in-line with
our expectations, and we are very pleased with the progress being
made on integrating the acquired Time Inc. properties," said
Meredith Corporation President and CEO Tom
Harty. "We expect to see meaningful improvement in
advertising results for the acquired Time Inc. brands during fiscal
2019. We are on track to deliver more than $500 million of annual synergies in the first two
full years of operations. These synergies are already being
reflected in our results as we significantly improved adjusted
EBITDA margins year-over-year in our National Media Group in the
fourth quarter of fiscal 2018. We expect significant margin
improvement in fiscal 2019 as well. (See
Tables 4-5.)
"Given the progress made on synergy achievement and asset
divestitures, we expect to achieve our goals of reducing debt by
$1 billion by the end of fiscal 2019
and generating $1 billion of adjusted
EBITDA in fiscal 2020, meaningfully contributing to total
shareholder return," added Harty.
FISCAL 2018 FULL-YEAR REVIEW
Meredith continued to aggressively execute a series of
well-defined strategic initiatives in fiscal 2018 to generate
growth in revenue and operating profit, and increase shareholder
value over time. These included:
1) The transformational
acquisition of Time Inc., which:
- Creates an unparalleled portfolio of national media brands
with greater scale and efficiency – Combined, Meredith's brands
now reach over 175 million unduplicated American consumers,
including 80 percent of U.S. millennial women. Meredith is the No.
1 U.S. magazine operator, possessing leading positions in celebrity
entertainment, food, lifestyle, parenting and home content
creation, as well as enhanced positions in the beauty, fashion and
luxury advertising categories.
- Advances Meredith's digital position by adding significant
scale – With nearly 135 million monthly unique visitors in the
U.S., Meredith now operates the largest premium content digital
network for American consumers. This includes the No. 1 position in
the key categories of entertainment (People.com), food
(Allrecipes.com), and lifestyle (BHG.com and MarthaStewart.com).
Meredith now possesses richer and deeper proprietary data; and has
greater scale in the high-growth and large video, branded content
and programmatic advertising platforms. National Media Group
digital advertising revenues grew more than 50 percent in fiscal
2018, and represented nearly 35 percent of the group's total
advertising revenues.
- Accelerates consumer revenue diversification and growth
– Meredith expects more than 45 percent of fiscal 2019 National
Media Group revenues to be generated from high margin
consumer-related sources, including subscription activities, brand
licensing and e-commerce.
- Enhances financial scale and flexibility – Meredith
anticipates generating annual cost synergies exceeding $500 million in the first two full years of
combined operations. Meredith has an excellent track record of
achieving cost synergies with prior acquisitions, and is confident
in its ability to optimize the cost structure of the combined
business.
2) Continued strong and
growing contribution from Meredith's Local Media Group:
- Meredith's portfolio of 17 high-performing television stations
in 12 markets delivered record revenue in fiscal 2018.
Additionally, operating profit was a record for a non-political
year.
- Performance was driven by growth in retransmission revenues,
along with the addition of WPCH in Atlanta, and MNI Targeted Media. MNI offers
clients targeted advertising solutions aimed at the local and
regional levels. Approximately two-thirds of MNI's revenues are
generated from digital marketing campaigns.
- Revenues from the Local Media Group's digital activities more
than doubled in fiscal 2018, driven primarily by MNI.
- Fiscal 2018 political advertising revenues of $16 million were a record for a non-political
year.
3) Successful execution
of asset sales to simplify and focus Meredith's national media
portfolio:
- Meredith closed on the sale of the Golf brand, Time Inc. UK and
Meredith Xcelerated Marketing in fiscal 2018. Additionally,
Meredith anticipates agreements to sell the TIME, Sports
Illustrated, Fortune and Money brands, and its 60 percent equity
investment in Viant, to be finalized in early fiscal 2019.
- Discontinued Operations in Meredith's fiscal 2018 fourth
quarter include TIME, Sports Illustrated, Fortune, Money and Viant.
Discontinued Operations for Meredith's full year fiscal 2018
include those properties, along with the Golf brand and Time Inc.
UK.
NATIONAL MEDIA GROUP DETAIL
Fiscal 2018 National Media Group operating profit was
$98 million. Excluding special items,
operating profit was $164 million and
adjusted EBITDA grew 61 percent to $257
million. Revenues grew nearly 45 percent to $1.6 billion. Results exclude discontinued
operations. (See Tables 1-5 for
supplemental disclosures regarding non-GAAP financial
measures.)
Fiscal 2018 fourth quarter National Media Group operating profit
was $48 million. Excluding special
items, operating profit was $60
million and adjusted EBITDA more than doubled from the
prior-year period to $114 million.
Revenues were $590 million. Results
exclude discontinued operations.
Meredith is pursuing the following strategies with a goal of
successfully integrating its acquisition of Time Inc. and
maximizing the value of the combined media portfolio:
- Improving the advertising performance of the acquired Time
Inc. properties to Meredith's historical levels. Meredith is
implementing its proven strategies, standards and discipline across
the legacy Time Inc. portfolio to improve performance, including
aligning it with Meredith's successful sales structure. Meredith
expects to see meaningful improvement in advertising results for
the acquired Time Inc. brands during fiscal 2019.
- Aggressively growing revenue and raising the profit margins
of the acquired Time Inc. digital properties to Meredith's
historical high levels. Meredith is leveraging the increased
scale of its combined digital portfolio to enhance sales
initiatives. Meredith is now well-positioned to benefit from
fast-growing advertising platforms, including native, video,
shopper marketing, programmatic and social. Meredith is also
implementing disciplined cost management practices, and expects to
see meaningful margin improvement in fiscal 2019.
- Accelerating the growth of high-margin consumer revenue by
leveraging its expanded brand portfolio. This includes
cross-promoting brands to increase revenue and lower subscription
acquisition costs, leveraging affinity marketer Synapse, continuing
to grow Meredith's brand licensing business, and expanding
e-commerce activities.
- Divesting media assets not core to Meredith's business.
Meredith anticipates agreements to sell the TIME, Sports
Illustrated, Fortune and Money brands, along with its 60 percent
equity investment in Viant, to be finalized in early fiscal 2019.
These brands and businesses have different target audiences and
advertising bases than the rest of the portfolio, and Meredith
believes each is better suited for success with a new owner.
- Exceeding $500 million of
annualized cost synergies within the first two full years of
combined operations. Approximately half of these savings are
expected to come from reductions in headcount, and the remaining
half from savings in vendor contracts, real estate, and other
non-headcount-related activities.
LOCAL MEDIA GROUP DETAIL
Fiscal 2018 Local Media Group operating profit was $189 million and adjusted EBITDA was $223 million. Revenues grew 10 percent to a
record $693 million. (See Tables 1-5 for supplemental disclosures
regarding non-GAAP financial measures.)
Looking more closely at fiscal 2018 performance compared to the
prior year:
- Non-political advertising revenues increased to $354 million, led by the addition of WPCH and
stronger performance from its stations in the Phoenix and St.
Louis markets. The professional services, home services and
media categories led the growth.
- Political advertising revenues were $16
million, a record for a non-political year.
- Other revenues and operating expenses increased compared to the
prior-year period. This was primarily due to growth in
retransmission revenues from cable and satellite television
operators and contribution from MNI. These increases were partially
offset by higher programming fees paid to affiliated networks.
Turning to ratings, Meredith delivered strong performance during
the May rating period. Meredith stations in 10 of its 12 markets
ranked No. 1 or No. 2 in morning or late news, and Meredith
stations in seven of its markets were No. 1 or No. 2 from sign-on
to sign-off.
Fiscal 2018 fourth quarter Local Media Group operating profit
grew 27 percent to $59 million and
adjusted EBITDA grew 22 percent to $69
million. Revenues grew more than 30 percent to $199 million, including a fiscal fourth quarter
record $10 million of political
advertising revenues.
OTHER FINANCIAL INFORMATION
Meredith remains committed to strong capital stewardship, and
delivering top-third performance through its successful Total
Shareholder Return strategy. This includes:
- Strong generation of cash flow – Cash flow from
operations for the 12 months ended June 30,
2018, was $151 million.
- Return of capital to shareholders through consistent and
ongoing dividend increases – Meredith raised its regular stock
dividend by 4.8 percent to $2.18 on
an annualized basis in January 2018.
This marked the 25th straight year of dividend increases
for Meredith, which has paid an annual dividend for 71 consecutive
years.
- Aggressive debt paydown and management of liabilities –
Net debt was $2.7 billion at
June 30, 2018, including cash and
cash equivalents of $438 million. As
noted earlier, Meredith expects to reduce its debt by $1 billion during fiscal 2019. This would be
accomplished using cash on the balance sheet, expected proceeds
from asset sales, and expected cash generated by its operations.
Meredith is targeting a net debt-to-EBITDA ratio of 2.0 to 1 or
better by the end of its fiscal 2020. This includes generating
$1 billion of EBITDA and having net
debt below $2 billion by the end of
fiscal 2020. (See Table 6 for supplemental disclosures regarding
non-GAAP financial measures.)
- Share repurchases – Meredith's ongoing share repurchase
program has $56 million remaining
under current authorizations as of June 30,
2018.
FISCAL 2019 OUTLOOK
As Meredith looks toward fiscal 2019, it expects to see
strong results boosted by:
- Increased contribution from the acquired Time Inc.
properties. These brands and businesses are expected to benefit
from Meredith's management expertise. Additionally, Meredith is now
in position to market its enhanced portfolio for calendar 2019
large corporate advertising buys.
- A larger and more profitable digital business. This
larger portfolio will drive record digital revenues for the
National Media Group, led by flagship People.com which is
generating record traffic. Meredith's Local Media Group will
benefit from a full-year contribution from MNI.
- Growing high-margin consumer revenue activities.
Meredith expects to generate record consumer revenues boosted by
the addition of the acquired brands and the very profitable Synapse
business; its industry-best brand licensing business; and growing
lead generation and e-commerce activities.
- Improved adjusted EBITDA margins for its National Media
Group. Meredith expects National Media Group adjusted EBITDA
margins to be in the mid-20 percent range in fiscal 2019, driven by
high margin brands and business activities, along with ongoing cost
synergies.
- A potential record year for political advertising
boosted by 13 gubernatorial races, including nine open seats, in
Meredith markets; nine U.S. Senate races, including open seats in
Arizona and Tennessee; and a number of competitive U.S.
House races. Meredith expects political advertising revenues at its
television stations to range from $55
to $65 million in fiscal 2019, with
the majority being booked in the second fiscal quarter.
- Stronger contributions from non-political revenue sources in
its Local Media Group. Meredith expects to renew MVPD contracts
representing approximately 35 percent of its subscriber base in
fiscal 2019, with higher fees anticipated. Meredith expects this to
be partially offset by the anticipated renewal of its affiliation
agreements with the FOX Television Network in five markets.
Meredith also expects growth from MNI in both revenues and
profitability.
- A more favorable annual combined federal/state tax rate
of approximately 28 percent, compared to 39 percent prior to the
passage of tax reform.
For full-year fiscal 2019, 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 $250 million and net interest expense of
approximately $180 million, to range
from $205 million to $225 million. 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 $720
million to $750 million. These
amounts adjust earnings from continuing operations by adding back
depreciation, amortization, special items, net interest expense,
and income taxes at an effective rate for the fiscal year of
28%.
- Earnings per share from continuing operations to range from
$2.78 to $3.20 (see Table 7).
Looking more closely at the first quarter of fiscal 2019,
Meredith expects:
- National Media Group revenues to range from $540 million to $550
million.
- Local Media Group revenues to range from $200 million to $210
million.
- Earnings from continuing operations, including non-cash
depreciation and amortization of approximately $65 million and net interest expense of
approximately $50 million, to range
from $2 million to $10 million. 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. These
amounts adjust earnings from continuing operations by adding back
depreciation, amortization, special items, net interest expense,
and income taxes at an effective rate for the quarter of 28%.
CONFERENCE CALL WEBCAST
Meredith will host a conference call on August 10, 2018, at 8:30
am EDT to discuss fiscal 2018 full year and fourth quarter
results and its outlook for fiscal 2019. 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 EBITDA,
adjusted EBITDA margin, and net debt are common supplemental
measures of performance used by investors and financial analysts.
Management believes that adjusted EBITDA provides an additional
analytical tool to clarify the Company's results from core
operations and delineate underlying trends. 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. Adjusted EBITDA is
defined as earnings before discontinued operations, interest,
taxes, depreciation, amortization, non-operating expense, and
special items. Net debt is defined as total long-term debt net of
cash and cash equivalents. Net debt provides additional insight to
the Company's liquidity position.
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 financial outlook for the first quarter and full year
fiscal 2019; the Company's goals related to debt reduction and
adjusted EBITDA; the Company's anticipated asset sales; renewal of
MVPD contracts and affiliation agreements; 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 combined
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) competitive responses to the acquisition;
(3) unexpected costs, charges or expenses resulting from the
acquisition; (4) adverse reactions or changes to business
relationships resulting from the acquisition; (5) the Company's
ability to realize the anticipated benefits of the acquisition of
Time Inc.; (6) delays, challenges and expenses associated with
integrating the businesses; and (7) the Company's ability to comply
with the terms of the debt and equity financings entered into in
connection with the acquisition; (8) and the risk factors contained
in the Company's most recent Form 10-K and Form 10-Q 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 (NYSE:
MDP; meredith.com) 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 more than 175
million unduplicated American consumers every month, including over
80 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. 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 or national level.
Meredith
Corporation and Subsidiaries
|
Condensed
Consolidated Statements of Earnings (Unaudited)
|
|
|
Three
Months
|
|
Twelve
Months
|
Periods ended June
30,
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(In millions
except per share data)
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
Advertising
|
$
|
375.5
|
|
|
$
|
230.4
|
|
|
$
|
1,116.6
|
|
|
$
|
934.1
|
|
Circulation
|
190.4
|
|
|
90.2
|
|
|
489.3
|
|
|
322.0
|
|
All other
|
222.2
|
|
|
124.8
|
|
|
641.5
|
|
|
457.2
|
|
Total
revenues
|
788.1
|
|
|
445.4
|
|
|
2,247.4
|
|
|
1,713.3
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Production,
distribution, and editorial
|
296.6
|
|
|
154.4
|
|
|
860.6
|
|
|
603.0
|
|
Selling, general, and
administrative
|
331.9
|
|
|
200.9
|
|
|
962.7
|
|
|
730.9
|
|
Acquisition,
disposition, and restructuring related activities
|
19.7
|
|
|
2.3
|
|
|
173.4
|
|
|
10.3
|
|
Depreciation and
amortization
|
64.0
|
|
|
13.1
|
|
|
129.0
|
|
|
53.8
|
|
Impairment of
long-lived assets
|
2.9
|
|
|
6.2
|
|
|
22.7
|
|
|
6.2
|
|
Total operating
expenses
|
715.1
|
|
|
376.9
|
|
|
2,148.4
|
|
|
1,404.2
|
|
Income from
operations
|
73.0
|
|
|
68.5
|
|
|
99.0
|
|
|
309.1
|
|
Non-operating income
(expense), net
|
0.1
|
|
|
—
|
|
|
(11.7)
|
|
|
—
|
|
Bridge facility
commitment costs
|
—
|
|
|
—
|
|
|
(17.5)
|
|
|
—
|
|
Interest expense,
net
|
(41.0)
|
|
|
(4.8)
|
|
|
(79.4)
|
|
|
(18.8)
|
|
Earnings (loss) from
continuing operations before income taxes
|
32.1
|
|
|
63.7
|
|
|
(9.6)
|
|
|
290.3
|
|
Income tax benefit
(expense)
|
(15.4)
|
|
|
(20.4)
|
|
|
123.6
|
|
|
(101.4)
|
|
Earnings from
continuing operations
|
16.7
|
|
|
43.3
|
|
|
114.0
|
|
|
188.9
|
|
Earnings (loss) from
discontinued operations, net of income taxes
|
0.1
|
|
|
—
|
|
|
(14.6)
|
|
|
—
|
|
Net
earnings
|
$
|
16.8
|
|
|
$
|
43.3
|
|
|
$
|
99.4
|
|
|
$
|
188.9
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share attributable to common shareholders
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
(0.06)
|
|
|
$
|
0.97
|
|
|
$
|
1.80
|
|
|
$
|
4.23
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
(0.32)
|
|
|
—
|
|
Basic earnings
(loss) per common share
|
$
|
(0.06)
|
|
|
$
|
0.97
|
|
|
$
|
1.48
|
|
|
$
|
4.23
|
|
Basic average common
shares outstanding
|
45.1
|
|
|
44.7
|
|
|
44.9
|
|
|
44.6
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share attributable to common shareholders
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
(0.06)
|
|
|
$
|
0.95
|
|
|
$
|
1.79
|
|
|
$
|
4.16
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
(0.32)
|
|
|
—
|
|
Diluted earnings
(loss) per common share
|
$
|
(0.06)
|
|
|
$
|
0.95
|
|
|
$
|
1.47
|
|
|
$
|
4.16
|
|
Diluted average
common shares outstanding
|
45.1
|
|
|
45.5
|
|
|
45.5
|
|
|
45.4
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$
|
0.545
|
|
|
$
|
0.520
|
|
|
$
|
2.130
|
|
|
$
|
2.030
|
|
Meredith
Corporation and Subsidiaries
|
Segment
Information (Unaudited)
|
|
|
Three
Months
|
|
Twelve
Months
|
Periods ended June
30,
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(In
millions)
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
National
media
|
|
|
|
|
|
|
|
Advertising
|
$
|
281.7
|
|
|
$
|
135.1
|
|
|
$
|
746.3
|
|
|
$
|
520.1
|
|
Circulation
|
190.4
|
|
|
90.2
|
|
|
489.3
|
|
|
322.0
|
|
Other
revenues
|
117.9
|
|
|
67.9
|
|
|
320.2
|
|
|
241.1
|
|
Total national
media
|
590.0
|
|
|
293.2
|
|
|
1,555.8
|
|
|
1,083.2
|
|
Local
media
|
|
|
|
|
|
|
|
Non-political
advertising
|
83.5
|
|
|
90.9
|
|
|
354.2
|
|
|
351.5
|
|
Political
advertising
|
10.3
|
|
|
4.4
|
|
|
16.1
|
|
|
62.5
|
|
Other
revenues
|
105.1
|
|
|
56.9
|
|
|
322.8
|
|
|
216.1
|
|
Total local
media
|
198.9
|
|
|
152.2
|
|
|
693.1
|
|
|
630.1
|
|
Intersegment revenue
elimination
|
(0.8)
|
|
|
—
|
|
|
(1.5)
|
|
|
—
|
|
Total
revenues
|
$
|
788.1
|
|
|
$
|
445.4
|
|
|
$
|
2,247.4
|
|
|
$
|
1,713.3
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
|
|
|
|
|
National
media
|
$
|
48.0
|
|
|
$
|
34.3
|
|
|
$
|
97.5
|
|
|
$
|
146.5
|
|
Local
media
|
58.8
|
|
|
46.3
|
|
|
189.1
|
|
|
214.9
|
|
Unallocated
corporate
|
(33.8)
|
|
|
(12.1)
|
|
|
(187.6)
|
|
|
(52.3)
|
|
Income from
operations
|
$
|
73.0
|
|
|
$
|
68.5
|
|
|
$
|
99.0
|
|
|
$
|
309.1
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
National
media
|
$
|
53.7
|
|
|
$
|
4.2
|
|
|
$
|
92.9
|
|
|
$
|
17.5
|
|
Local
media
|
9.6
|
|
|
8.5
|
|
|
33.2
|
|
|
34.8
|
|
Unallocated
corporate
|
0.7
|
|
|
0.4
|
|
|
2.9
|
|
|
1.5
|
|
Total depreciation
and amortization
|
$
|
64.0
|
|
|
$
|
13.1
|
|
|
$
|
129.0
|
|
|
$
|
53.8
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
1
|
|
|
|
|
|
|
|
National
media
|
$
|
113.7
|
|
|
$
|
46.9
|
|
|
$
|
256.5
|
|
|
$
|
159.8
|
|
Local
media
|
68.5
|
|
|
56.0
|
|
|
223.2
|
|
|
253.1
|
|
Unallocated
corporate
|
(22.5)
|
|
|
(12.1)
|
|
|
(58.7)
|
|
|
(50.7)
|
|
Total Adjusted
EBITDA
|
$
|
159.7
|
|
|
$
|
90.8
|
|
|
$
|
421.0
|
|
|
$
|
362.2
|
|
|
|
1
|
Adjusted EBITDA is
earnings before discontinued operations, interest, taxes,
depreciation, amortization, non-operating expense, and special
items.
|
Meredith
Corporation and Subsidiaries
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
Assets
|
June 30,
2018
|
|
June 30,
2017
|
(In
millions)
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
437.6
|
|
|
$
|
22.3
|
|
Accounts receivable,
net
|
542.0
|
|
|
289.1
|
|
Inventories
|
44.2
|
|
|
21.9
|
|
Current portion of
subscription acquisition costs
|
118.1
|
|
|
145.0
|
|
Current portion of
broadcast rights
|
9.8
|
|
|
7.8
|
|
Assets
held-for-sale
|
713.1
|
|
|
—
|
|
Other current
assets
|
114.3
|
|
|
19.3
|
|
Total current
assets
|
1,979.1
|
|
|
505.4
|
|
Property, plant, and
equipment, net
|
483.8
|
|
|
189.8
|
|
Subscription
acquisition costs
|
61.1
|
|
|
79.7
|
|
Broadcast
rights
|
18.9
|
|
|
21.8
|
|
Other
assets
|
263.3
|
|
|
69.6
|
|
Intangible assets,
net
|
2,005.2
|
|
|
955.9
|
|
Goodwill
|
1,894.8
|
|
|
907.5
|
|
Total
assets
|
$
|
6,706.2
|
|
|
$
|
2,729.7
|
|
|
|
|
|
Liabilities,
Redeemable Convertible Preferred Stock, and Shareholders'
Equity
|
|
|
|
Current
liabilities
|
|
|
|
Current portion of
long-term debt
|
$
|
17.7
|
|
|
$
|
62.5
|
|
Current portion of
long-term broadcast rights payable
|
8.9
|
|
|
9.2
|
|
Accounts
payable
|
194.7
|
|
|
66.6
|
|
Accrued expenses and
other liabilities
|
410.2
|
|
|
102.4
|
|
Current portion of
unearned revenues
|
360.4
|
|
|
219.0
|
|
Liabilities
associated with assets held-for-sale
|
198.4
|
|
|
—
|
|
Total current
liabilities
|
1,190.3
|
|
|
459.7
|
|
Long-term
debt
|
3,117.9
|
|
|
635.7
|
|
Long-term broadcast
rights payable
|
20.8
|
|
|
22.5
|
|
Unearned
revenues
|
124.1
|
|
|
106.5
|
|
Deferred income
taxes
|
416.0
|
|
|
384.7
|
|
Other noncurrent
liabilities
|
217.0
|
|
|
124.6
|
|
Total
liabilities
|
5,086.1
|
|
|
1,733.7
|
|
|
|
|
|
Redeemable
convertible Series A preferred stock
|
522.6
|
|
|
—
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Common
stock
|
39.8
|
|
|
39.4
|
|
Class B
stock
|
5.1
|
|
|
5.1
|
|
Additional paid-in
capital
|
199.5
|
|
|
54.8
|
|
Retained
earnings
|
889.8
|
|
|
915.7
|
|
Accumulated other
comprehensive loss
|
(36.7)
|
|
|
(19.0)
|
|
Total
shareholders' equity
|
1,097.5
|
|
|
996.0
|
|
Total liabilities,
redeemable convertible preferred stock, and shareholders'
equity
|
$
|
6,706.2
|
|
|
$
|
2,729.7
|
|
Meredith
Corporation and Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
Twelve months
ended June 30,
|
2018
|
|
2017
|
(In
millions)
|
|
|
|
Net cash provided
by operating activities
|
$
|
151.3
|
|
|
$
|
219.3
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisitions of and
investments in businesses, net of cash acquired
|
(2,786.5)
|
|
|
(84.4)
|
|
Proceeds from
disposition of assets, net of cash sold
|
219.2
|
|
|
1.5
|
|
Additions to
property, plant, and equipment
|
(53.2)
|
|
|
(34.8)
|
|
Other
|
3.1
|
|
|
—
|
|
Net cash used in
investing activities
|
(2,617.4)
|
|
|
(117.7)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
issuance of long-term debt
|
3,260.0
|
|
|
380.0
|
|
Repayments of
long-term debt
|
(765.1)
|
|
|
(374.4)
|
|
Proceeds from
preferred stock, warrants, and options issued, net of issuance
costs
|
631.0
|
|
|
—
|
|
Dividends
paid
|
(121.5)
|
|
|
(91.9)
|
|
Debt issuance costs
paid
|
(70.8)
|
|
|
(1.5)
|
|
Purchases of Company
stock
|
(31.0)
|
|
|
(53.4)
|
|
Proceeds from common
stock issued
|
19.3
|
|
|
38.1
|
|
Payment of
acquisition related contingent consideration
|
(5.1)
|
|
|
(8.0)
|
|
Excess tax benefits
from share-based payments
|
—
|
|
|
6.8
|
|
Net cash provided by
(used in) financing activities
|
2,916.8
|
|
|
(104.3)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(4.1)
|
|
|
—
|
|
Change in cash
held-for-sale
|
(31.3)
|
|
|
—
|
|
Net increase
(decrease) in cash and cash equivalents
|
415.3
|
|
|
(2.7)
|
|
Cash and cash
equivalents at beginning of period
|
22.3
|
|
|
25.0
|
|
Cash and cash
equivalents at end of period
|
$
|
437.6
|
|
|
$
|
22.3
|
|
Table
1
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Special
Items - The following tables show earnings from continuing
operations as reported under accounting principles generally
accepted in the United States of America (GAAP) and excluding the
special items. Earnings from continuing 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.
|
|
|
Three
Months
|
|
Twelve
Months
|
Periods ended June
30,
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(In
millions)
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
16.8
|
|
|
$
|
43.3
|
|
|
$
|
99.4
|
|
|
$
|
188.9
|
|
Loss (earnings) from
discontinued operations, net of income taxes
|
(0.1)
|
|
|
—
|
|
|
14.6
|
|
|
—
|
|
Earnings from
continuing operations
|
16.7
|
|
|
43.3
|
|
|
114.0
|
|
|
188.9
|
|
Special
items
|
|
|
|
|
|
|
|
Severance and related
benefit costs
|
14.8
|
|
|
4.3
|
|
|
112.4
|
|
|
11.9
|
|
Transaction and
integration costs
|
16.3
|
|
|
—
|
|
|
69.2
|
|
|
—
|
|
Write-down of
impaired assets
|
2.9
|
|
|
7.2
|
|
|
22.7
|
|
|
8.9
|
|
Gain on sale of
businesses
|
(11.5)
|
|
|
—
|
|
|
(14.7)
|
|
|
—
|
|
Write-down of
contingent consideration payable
|
—
|
|
|
(0.4)
|
|
|
—
|
|
|
(20.0)
|
|
Bridge facility
commitment costs
|
—
|
|
|
—
|
|
|
17.5
|
|
|
—
|
|
Loss on equity method
investment
|
—
|
|
|
—
|
|
|
12.9
|
|
|
—
|
|
Other
|
0.2
|
|
|
(1.9)
|
|
|
4.0
|
|
|
(1.5)
|
|
Subtotal
|
22.7
|
|
|
9.2
|
|
|
224.0
|
|
|
(0.7)
|
|
Tax expense (benefit)
on special items
|
(8.3)
|
|
|
(3.5)
|
|
|
(57.3)
|
|
|
0.2
|
|
Tax impact of
remeasurement of deferred tax assets and liabilities
|
—
|
|
|
—
|
|
|
(133.0)
|
|
|
—
|
|
Tax impact of
resolution of certain federal and state tax matters
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.7)
|
|
Special
items
|
14.4
|
|
|
5.7
|
|
|
33.7
|
|
|
(7.2)
|
|
Earnings from
continuing operations before special items (non-GAAP)
|
$
|
31.1
|
|
|
$
|
49.0
|
|
|
$
|
147.7
|
|
|
$
|
181.7
|
|
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.
|
|
Three months ended
June 30, 2018
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
millions)
|
|
|
|
|
Operating
profit
|
$
|
48.0
|
|
$
|
58.8
|
|
$
|
(33.8)
|
|
$
|
73.0
|
|
Special
items
|
|
|
|
|
Transaction and
integration costs
|
1.7
|
|
—
|
|
14.6
|
|
16.3
|
|
Severance and related
benefit costs
|
18.7
|
|
0.1
|
|
(4.0)
|
|
14.8
|
|
Gain on sale of
business
|
(11.5)
|
|
—
|
|
—
|
|
(11.5)
|
|
Write-down of
impaired asset
|
2.9
|
|
—
|
|
—
|
|
2.9
|
|
Other
|
0.2
|
|
—
|
|
—
|
|
0.2
|
|
Total special
items
|
12.0
|
|
0.1
|
|
10.6
|
|
22.7
|
|
Operating profit
excluding special items (non-GAAP)
|
$
|
60.0
|
|
$
|
58.9
|
|
$
|
(23.2)
|
|
$
|
95.7
|
|
|
Twelve months
ended June 30, 2018
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
millions)
|
|
|
|
|
Operating
profit
|
$
|
97.5
|
|
$
|
189.1
|
|
$
|
(187.6)
|
|
$
|
99.0
|
|
Special
items
|
|
|
|
|
Severance and related
benefit costs
|
56.4
|
|
0.9
|
|
55.1
|
|
112.4
|
|
Transaction and
integration costs
|
1.7
|
|
—
|
|
67.5
|
|
69.2
|
|
Write-down of
impaired assets
|
22.7
|
|
—
|
|
—
|
|
22.7
|
|
Gain on sale of
businesses
|
(14.7)
|
|
—
|
|
—
|
|
(14.7)
|
|
Other
|
—
|
|
|
3.4
|
|
3.4
|
|
Total special
items
|
66.1
|
|
0.9
|
|
126.0
|
|
193.0
|
|
Operating profit
excluding special items (non-GAAP)
|
$
|
163.6
|
|
$
|
190.0
|
|
$
|
(61.6)
|
|
$
|
292.0
|
|
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 special items are non-GAAP measures.
Management's rationale for presenting non-GAAP measures is included
in the text of this earnings release.
|
|
Three Months Ended
June 30, 2017
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
millions)
|
|
|
|
|
Operating
profit
|
$
|
34.3
|
|
$
|
46.3
|
|
$
|
(12.1)
|
|
$
|
68.5
|
|
Special
items
|
|
|
|
|
Write-down of
contingent consideration payable
|
(0.4)
|
|
—
|
|
—
|
|
(0.4)
|
|
Severance and related
benefit costs
|
3.1
|
|
1.2
|
|
—
|
|
4.3
|
|
Write-down of
impaired assets
|
7.2
|
|
—
|
|
—
|
|
7.2
|
|
Other
|
(1.5)
|
|
—
|
|
(0.4)
|
|
(1.9)
|
|
Total special
items
|
8.4
|
|
1.2
|
|
(0.4)
|
|
9.2
|
|
Operating profit
excluding special items (non-GAAP)
|
$
|
42.7
|
|
$
|
47.5
|
|
$
|
(12.5)
|
|
$
|
77.7
|
|
|
Twelve months
ended June 30, 2017
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
millions)
|
|
|
|
|
Operating
profit
|
$
|
146.5
|
|
$
|
214.9
|
|
$
|
(52.3)
|
|
$
|
309.1
|
|
Special
items
|
|
|
|
|
Write-down of
contingent consideration payable
|
(20.0)
|
|
—
|
|
—
|
|
(20.0)
|
|
Severance and related
benefit costs
|
9.7
|
|
1.7
|
|
0.5
|
|
11.9
|
|
Write-down of
impaired assets
|
7.2
|
|
1.7
|
|
—
|
|
8.9
|
|
Other
|
(1.1)
|
|
—
|
|
(0.4)
|
|
(1.5)
|
|
Total special
items
|
(4.2)
|
|
3.4
|
|
0.1
|
|
(0.7)
|
|
Operating profit
excluding special items (non-GAAP)
|
$
|
142.3
|
|
$
|
218.3
|
|
$
|
(52.2)
|
|
$
|
308.4
|
|
Table
4
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Adjusted
EBITDA
|
Consolidated adjusted
EBITDA, which is reconciled to net earnings in the following
tables, is defined as net earnings before discontinued operations,
interest, taxes, depreciation, amortization, non-operating expense,
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, 2018
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
millions)
|
|
|
|
|
Revenues
|
$
|
590.0
|
|
$
|
198.9
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
16.8
|
|
Earnings from
discontinued operations, net of income taxes
|
(0.1)
|
|
Earnings from
continuing operations
|
16.7
|
|
Income tax
expense
|
15.4
|
|
Interest expense,
net
|
41.0
|
|
Non-operating income,
net
|
(0.1)
|
|
Operating
profit
|
$
|
48.0
|
|
$
|
58.8
|
|
$
|
(33.8)
|
|
73.0
|
|
Depreciation and
amortization
|
53.7
|
|
9.6
|
|
0.7
|
|
64.0
|
|
Special
items
|
|
|
|
|
Transaction and
integration costs
|
1.7
|
|
—
|
|
14.6
|
|
16.3
|
|
Severance and related
benefit costs
|
18.7
|
|
0.1
|
|
(4.0)
|
|
14.8
|
|
Gain on sale of
business
|
(11.5)
|
|
—
|
|
—
|
|
(11.5)
|
|
Write-down of
impaired assets
|
2.9
|
|
—
|
|
—
|
|
2.9
|
|
Other
|
0.2
|
|
—
|
|
—
|
|
0.2
|
|
Total special
items
|
12.0
|
|
0.1
|
|
10.6
|
|
22.7
|
|
Adjusted
EBITDA
|
$
|
113.7
|
|
$
|
68.5
|
|
$
|
(22.5)
|
|
$
|
159.7
|
|
|
|
|
|
|
Segment operating
margin
|
8.1
|
%
|
29.6
|
%
|
|
|
Segment adjusted
EBITDA margin
|
19.3
|
%
|
34.4
|
%
|
|
|
|
|
|
|
|
Three months ended
June 30, 2017
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
millions)
|
|
|
|
|
Revenues
|
$
|
293.2
|
|
$
|
152.2
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
43.3
|
|
Income
taxes
|
20.4
|
|
Net interest
expense
|
4.8
|
|
Operating
profit
|
$
|
34.3
|
|
$
|
46.3
|
|
$
|
(12.1)
|
|
68.5
|
|
Depreciation and
amortization
|
4.2
|
|
8.5
|
|
0.4
|
|
13.1
|
|
Special
items
|
|
|
|
|
Write-down of
contingent consideration payable
|
(0.4)
|
|
—
|
|
—
|
|
(0.4)
|
|
Severance and related
benefit costs
|
3.1
|
|
1.2
|
|
—
|
|
4.3
|
|
Write-down of
impaired assets
|
7.2
|
|
—
|
|
—
|
|
7.2
|
|
Other
|
(1.5)
|
|
—
|
|
(0.4)
|
|
(1.9)
|
|
Total special
items
|
8.4
|
|
1.2
|
|
(0.4)
|
|
9.2
|
|
Adjusted
EBITDA
|
$
|
46.9
|
|
$
|
56.0
|
|
$
|
(12.1)
|
|
$
|
90.8
|
|
|
|
Segment operating
margin
|
11.7
|
%
|
30.4
|
%
|
|
|
Segment adjusted
EBITDA margin
|
16.0
|
%
|
36.8
|
%
|
|
|
Table
5
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Adjusted
EBITDA
|
Consolidated adjusted
EBITDA, which is reconciled to net earnings in the following
tables, is defined as net earnings before discontinued operations,
interest, taxes, depreciation, amortization, non-operating expense,
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 revenue.
|
|
Twelve months
ended June 30, 2018
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
millions)
|
|
|
|
|
Revenues
|
$
|
1,555.8
|
|
$
|
693.1
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
99.4
|
|
Loss from
discontinued operations, net of income taxes
|
14.6
|
|
Net earnings from
continuing operations
|
114.0
|
|
Income tax
benefit
|
(123.6)
|
|
Interest expense,
net
|
79.4
|
|
Bridge facility
commitment costs
|
17.5
|
|
Non-operating
expense, net
|
11.7
|
|
Operating
profit
|
$
|
97.5
|
|
$
|
189.1
|
|
$
|
(187.6)
|
|
99.0
|
|
Depreciation and
amortization
|
92.9
|
|
33.2
|
|
2.9
|
|
129.0
|
|
Special
items
|
|
|
|
|
Severance and related
benefit costs
|
56.4
|
|
0.9
|
|
55.1
|
|
112.4
|
|
Transaction and
integration costs
|
1.7
|
|
—
|
|
67.5
|
|
69.2
|
|
Write-down of
impaired assets
|
22.7
|
|
—
|
|
—
|
|
22.7
|
|
Gain on sale of
businesses
|
(14.7)
|
|
—
|
|
—
|
|
(14.7)
|
|
Other
|
—
|
|
—
|
|
3.4
|
|
3.4
|
|
Total special
items
|
66.1
|
|
0.9
|
|
126.0
|
|
193.0
|
|
Adjusted
EBITDA
|
$
|
256.5
|
|
$
|
223.2
|
|
$
|
(58.7)
|
|
$
|
421.0
|
|
|
|
|
|
|
Segment operating
margin
|
6.3
|
%
|
27.3
|
%
|
|
|
Segment adjusted
EBITDA margin
|
16.5
|
%
|
32.2
|
%
|
|
|
|
|
|
|
|
Twelve months
ended June 30, 2017
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
millions)
|
|
|
|
|
Revenues
|
$
|
1,083.2
|
|
$
|
630.1
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
188.9
|
|
Income
taxes
|
101.4
|
|
Interest expense,
net
|
18.8
|
|
Operating
profit
|
$
|
146.5
|
|
$
|
214.9
|
|
$
|
(52.3)
|
|
309.1
|
|
Depreciation and
amortization
|
17.5
|
|
34.8
|
|
1.5
|
|
53.8
|
|
Special
items
|
|
|
|
|
Write-down of
contingent consideration payable
|
(20.0)
|
|
—
|
|
—
|
|
(20.0)
|
|
Severance and related
benefit costs
|
9.7
|
|
1.7
|
|
0.5
|
|
11.9
|
|
Write-down of
impaired assets
|
7.2
|
|
1.7
|
|
—
|
|
8.9
|
|
Other
|
(1.1)
|
|
—
|
|
(0.4)
|
|
(1.5)
|
|
Total special
items
|
(4.2)
|
|
3.4
|
|
0.1
|
|
(0.7)
|
|
Adjusted
EBITDA
|
$
|
159.8
|
|
$
|
253.1
|
|
$
|
(50.7)
|
|
$
|
362.2
|
|
|
|
|
|
|
Segment operating
margin
|
13.5
|
%
|
34.1
|
%
|
|
|
Segment adjusted
EBITDA margin
|
14.8
|
%
|
40.2
|
%
|
|
|
Table
6
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Net
Debt - The following table presents the current portion and
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,
2018
|
Current portion of
long-term debt
|
$
|
17.7
|
|
Long-term
debt
|
3,117.9
|
|
Total long-term
debt
|
3,135.6
|
|
Less: cash and cash
equivalents
|
(437.6)
|
|
Net debt
|
$
|
2,698.0
|
|
Table
7
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures
|
|
Projected Diluted
Earnings per Share
|
|
For the year
ending June 30, 2019
|
Low
|
|
High
|
(In millions,
except per share data)
|
|
|
|
Earnings from
continuing operations 1
|
$
|
205.0
|
|
|
$
|
225.0
|
|
|
|
|
|
Adjustments to
earnings from continuing operations
|
|
|
|
Preferred stock
dividends
|
(55.2)
|
|
|
(55.2)
|
|
Accretion of
redeemable preferred stock
|
(17.6)
|
|
|
(17.6)
|
|
Dividends on other
securities
|
(5.2)
|
|
|
(5.2)
|
|
Undistributed
earnings allocated to other securities
|
(1.2)
|
|
|
(2.2)
|
|
|
(79.2)
|
|
|
(80.2)
|
|
Diluted earnings
per share attributable to common shareholders
|
$
|
125.8
|
|
|
$
|
144.8
|
|
|
|
|
|
Diluted earnings
per common share
|
$
|
2.78
|
|
|
$
|
3.20
|
|
Diluted weighted
average shares outstanding
|
45.3
|
|
|
45.3
|
|
|
1 Projected earnings from
continuing operations does 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
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/meredith-reports-fiscal-2018-full-year-and-fourth-quarter-results-300695272.html
SOURCE Meredith Corporation