DES MOINES, Iowa, Feb. 4, 2021 /PRNewswire/ -- Meredith Corporation
(NYSE: MDP; Meredith.com) today reported fiscal 2021 second
quarter and first half results as summarized below:
|
Three
Months
|
|
Six
Months
|
Periods ended
December 31, 2020
|
Results
|
Variance from
Prior Year
|
|
Results
|
Variance from
Prior Year
|
(In
millions)
|
|
|
|
|
|
Total
revenues
|
$
|
901.5
|
|
11
|
%
|
|
$
|
1,595.0
|
|
4
|
%
|
|
|
|
|
|
|
Earnings from
continuing operations
|
148.5
|
|
F
|
|
|
190.8
|
|
F
|
|
Net special items
1,2
|
4.5
|
|
(58)
|
%
|
|
12.3
|
|
(39)
|
%
|
Earnings from
continuing operations before special items
2
|
153.0
|
|
F
|
|
|
203.1
|
|
F
|
|
Adjusted EBITDA
2
|
304.4
|
|
57
|
%
|
|
447.6
|
|
41
|
%
|
Net cash provided by
operating activities
|
182.9
|
|
F
|
|
|
261.8
|
|
F
|
|
Free cash flow
2
|
174.3
|
|
F
|
|
|
243.9
|
|
F
|
|
F represents
favorable improvements greater than 100%. U represents
unfavorability greater than 100%
|
1
|
Special items
primarily consist of restructuring costs and a pension settlement
charge for the three months and severance and restructuring costs
for the six months ended December 31, 2020
|
2
|
See Tables 1-4 for
supplemental disclosures regarding non-GAAP financial
measures
|
|
|
"Our audiences are engaging with Meredith's trusted brands more
than ever before, and our advertisers are responding in kind – both
factors driving our record second quarter revenue and profit
performance even as the COVID-19 pandemic continues to impact
certain aspects of our business," said Meredith Chairman and Chief
Executive Officer Tom Harty. "Of
particular note, National Media Group digital advertising revenues
surpassed magazine advertising for the first time, marking a
historic accomplishment and a critical piece of our long-term
strategy.
"Our newer licensing and ecommerce initiatives produced strong
results; Local Media Group political advertising revenues exceeded
our expectations; and magazine and non-political spot television
advertising continued to recover sequentially," Harty continued.
"Finally, our efforts to enhance financial flexibility and manage
costs, particularly within our legacy magazine business, continue
to produce tangible results including growth in operating profit
and free cash flow and net debt reduction."
Fiscal 2021 second quarter revenues grew 11 percent to a record
$902 million from the prior-year
period. Highlights from the second quarter of fiscal 2021
included:
- A 22 percent increase in National Media Group digital
advertising revenues from the prior-year period. Sessions to
Meredith's owned and operated and network sites grew 16 percent
from the prior-year period, led by the PEOPLE, Allrecipes,
Martha Stewart Living, and InStyle
brands.
- A 96 percent increase in Local Media Group political spot
and digital advertising from the prior election cycle two years
ago. Performance was led by the Phoenix and Atlanta markets, which combined accounted for
approximately 60 percent of total political advertising
revenues.
- A 34 percent increase in National Media Group digital
consumer/licensing revenues from the prior-year period.
Performance was driven by Apple News+, strong sales of Better Homes
& Gardens-branded products at Walmart stores across
the United States and at
Walmart.com, and ecommerce via other retail partners.
- Continued sequential year-over-year improvement in
Meredith's magazine and non-political television advertising
platforms. Both comparable National Media Group magazine
advertising and Local Media Group non-political advertising
revenues declined in the mid-teens from the prior-year period.
As a result of this performance, fiscal 2021 second quarter
earnings from continuing operations more than doubled to
$149 million from the prior-year
period. Adjusted EBITDA grew 57 percent to $304 million.
Fiscal 2021 second quarter cash flow from operations and free
cash flow each more than doubled to $183
million and $174 million,
respectively, from the prior-year period, as Meredith benefited
from record revenues, lower employee-related items, and lower
restructuring payments.
Fiscal 2021 first half revenues grew 4 percent to $1.6 billion from the prior-year period. Earnings
from continuing operations more than doubled to $191 million. Adjusted EBITDA grew 41 percent to
$448 million.
Meredith had cash and cash equivalents of $379 million as of December 31, 2020, up from $201 million at
September 30, 2020, and maintained a
zero balance on its $350 million
revolving credit facility. Net debt reduction remains Meredith's
No. 1 priority.
"We continue to benefit from the strength and durability of our
diversified portfolio of brands and businesses," Harty said. "We
are excited to serve our consumers with high quality content from
brands they can trust, and we are continually evolving our premium
content and distribution to reach consumers where they are, leading
to heightened engagement and stronger results for our advertising
and marketing clients. Additionally, we are consistently able to
identify opportunities to benefit from consumer related revenue
streams, empowered by our audience reach of more than 190 million
engaged consumers, including nearly 95 percent of adult women in
the United States."
CONFERENCE CALL PRESENTATION SLIDES AND WEBCAST
Meredith will post a presentation containing further detail on
fiscal 2021 second quarter and first half results to the investor
relations section of Meredith.com on February 4, 2021, at approximately 7:00 a.m. EST and host a conference call at
9:00 a.m. EST. A webcast will be
accessible to the public on the Company's website, and a replay
will be available for two weeks. A transcript will also be
available 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. Free cash flow,
earnings from continuing operations before special items, operating
profit before special items, adjusted EBITDA, adjusted EBITDA
margin, and comparable results are common supplemental measures of
performance used by investors and financial analysts.
Management believes that free cash flow, earnings from
continuing operations before special items, operating profit before
special items, adjusted EBITDA, adjusted EBITDA margin, and
comparable results provide additional analytical tools. Free cash
flow is defined as net cash provided by operating activities less
capital expenditures. This metric has been included as a measure of
the Company's liquidity and ability to fund its operations.
Earnings from continuing operations before special items and
operating profit before special items remove the impact of special
items on earnings from continuing operations and operating profit.
Adjusted EBITDA is defined as earnings from continuing operations
before interest expense, income taxes, depreciation, amortization,
and special items. These special items have been removed as they
have been deemed to be non-operational in nature. Comparable
results remove the impact of portfolio changes in our magazine
business to facilitate year-over-year comparisons. 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 nondiscretionary expenditures.
Results before 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 to further understand 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 Meredith.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This release contains certain forward-looking statements, as
defined in the Private Securities Litigation Reform Act of 1995,
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 continued growth in operating profit, cash flow, and
debt reduction. Forward-looking statements can be identified by
words such as may, should, expects,
provides, anticipates, assumes, can,
will, meets, could, likely,
intends, might, predicts, seeks,
would, believes, estimates, plans,
continues, guidance, or outlook, or variations
of these words or similar expressions.
Actual results may differ materially from those currently
anticipated. Factors that could adversely affect future results
include, but are not limited to, market conditions, including the
availability of debt capital and the terms upon which such debt can
be secured, if at all; the impact of the COVID-19 pandemic on the
Company, its customers and its suppliers; downturns in global,
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 Company's ability to
comply with the terms of its debt financing; and the risk factors
contained in the Company's most recent Annual Report on Form 10-K
filed with the Securities and Exchange Commission ("SEC"), which is
available on the SEC's website at www.sec.gov, and the Company's
other filings with the SEC. Such risk factors may be amplified by
the COVID-19 pandemic and its potential impact on the Company's
business and the global economy. 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), a leading media company
for nearly 120 years, produces service journalism that engages
audiences with essential, inspiring, and trusted content. Meredith
reaches consumers where they are across multiple platforms
including digital, video, magazine, and broadcast television.
Meredith's National Media Group reaches nearly 95 percent of all
U.S. women and more than 190 million unduplicated American
consumers every month through such iconic brands as PEOPLE, Better
Homes & Gardens, Allrecipes, Southern Living, and REAL SIMPLE.
Meredith's premium digital network reaches more than 150 million
consumers each month. The Company is the No. 1 U.S. magazine
operator with 36 million subscribers and the No. 2 global licensor
with robust brand licensing activities that include a Better Homes
& Gardens partnership with Walmart. Meredith's Local Media
Group portfolio includes 17 television stations reaching 11 percent
of U.S. households and 30 million viewers. Meredith's portfolio is
concentrated in large, fast-growing markets, with seven stations in
the nation's Top 25 markets, including Atlanta, Phoenix, St.
Louis, and Portland, and 13 stations in the Top 50.
Meredith
Corporation and Subsidiaries
Condensed
Consolidated Statements of Earnings (Unaudited)
|
|
|
Three
Months
|
|
Six
Months
|
Periods ended
December 31,
|
2020
|
|
2019
|
|
2020
|
|
2019
|
(In millions
except per share data)
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
Advertising
related
|
$
|
525.1
|
|
|
$
|
427.3
|
|
|
$
|
883.6
|
|
|
$
|
806.9
|
|
Consumer
related
|
358.0
|
|
|
348.9
|
|
|
676.7
|
|
|
672.0
|
|
Other
|
18.4
|
|
|
34.3
|
|
|
34.7
|
|
|
56.8
|
|
Total
revenues
|
901.5
|
|
|
810.5
|
|
|
1,595.0
|
|
|
1,535.7
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Production,
distribution, and editorial
|
266.5
|
|
|
280.1
|
|
|
507.6
|
|
|
553.8
|
|
Selling, general, and
administrative
|
332.6
|
|
|
338.4
|
|
|
643.8
|
|
|
669.2
|
|
Acquisition,
disposition, and restructuring related activities
|
4.2
|
|
|
(0.5)
|
|
|
18.3
|
|
|
13.6
|
|
Depreciation and
amortization
|
49.8
|
|
|
58.6
|
|
|
98.8
|
|
|
117.1
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
—
|
|
|
5.2
|
|
Total operating
expenses
|
653.1
|
|
|
676.6
|
|
|
1,268.5
|
|
|
1,358.9
|
|
Income from
operations
|
248.4
|
|
|
133.9
|
|
|
326.5
|
|
|
176.8
|
|
Non-operating income
(expense), net
|
0.2
|
|
|
(7.2)
|
|
|
5.8
|
|
|
1.4
|
|
Interest expense,
net
|
(43.1)
|
|
|
(36.9)
|
|
|
(86.6)
|
|
|
(75.8)
|
|
Earnings from
continuing operations before income taxes
|
205.5
|
|
|
89.8
|
|
|
245.7
|
|
|
102.4
|
|
Income tax
expense
|
(57.0)
|
|
|
(27.7)
|
|
|
(54.9)
|
|
|
(28.2)
|
|
Earnings from
continuing operations
|
148.5
|
|
|
62.1
|
|
|
190.8
|
|
|
74.2
|
|
Loss from
discontinued operations, net of income taxes
|
—
|
|
|
(24.3)
|
|
|
—
|
|
|
(30.3)
|
|
Net
earnings
|
$
|
148.5
|
|
|
$
|
37.8
|
|
|
$
|
190.8
|
|
|
$
|
43.9
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share attributable to common
shareholders
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
3.04
|
|
|
$
|
0.93
|
|
|
$
|
3.93
|
|
|
$
|
0.75
|
|
Discontinued
operations
|
—
|
|
|
(0.54)
|
|
|
—
|
|
|
(0.66)
|
|
Basic earnings per
common share
|
$
|
3.04
|
|
|
$
|
0.39
|
|
|
$
|
3.93
|
|
|
$
|
0.09
|
|
Basic average common
shares outstanding
|
46.2
|
|
|
45.7
|
|
|
46.1
|
|
|
45.7
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share attributable to common
shareholders
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
3.04
|
|
|
$
|
0.91
|
|
|
$
|
3.92
|
|
|
$
|
0.75
|
|
Discontinued
operations
|
—
|
|
|
(0.51)
|
|
|
—
|
|
|
(0.66)
|
|
Diluted earnings
per common share
|
$
|
3.04
|
|
|
$
|
0.40
|
|
|
$
|
3.92
|
|
|
$
|
0.09
|
|
Diluted average
common shares outstanding
|
46.3
|
|
|
47.3
|
|
|
46.2
|
|
|
45.7
|
|
Meredith
Corporation and Subsidiaries
Segment
Information (Unaudited)
|
|
|
Three
Months
|
|
Six
Months
|
Periods ended
December 31,
|
2020
|
|
2019
|
|
2020
|
|
2019
|
(In
millions)
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
Advertising
related
|
|
|
|
|
|
|
|
National
media
|
$
|
295.4
|
|
|
$
|
302.0
|
|
|
$
|
523.0
|
|
|
$
|
573.0
|
|
Local media
|
232.6
|
|
|
126.0
|
|
|
363.7
|
|
|
235.1
|
|
Intersegment revenue
elimination
|
(2.9)
|
|
|
(0.7)
|
|
|
(3.1)
|
|
|
(1.2)
|
|
Total advertising
related
|
525.1
|
|
|
427.3
|
|
|
883.6
|
|
|
806.9
|
|
Consumer
related
|
|
|
|
|
|
|
|
National
media
|
265.8
|
|
|
263.8
|
|
|
492.9
|
|
|
507.3
|
|
Local media
|
92.2
|
|
|
85.1
|
|
|
183.8
|
|
|
164.7
|
|
Total consumer
related
|
358.0
|
|
|
348.9
|
|
|
676.7
|
|
|
672.0
|
|
Other
|
|
|
|
|
|
|
|
National
media
|
14.8
|
|
|
31.4
|
|
|
27.8
|
|
|
49.8
|
|
Local media
|
3.6
|
|
|
2.9
|
|
|
6.9
|
|
|
7.0
|
|
Total other
|
18.4
|
|
|
34.3
|
|
|
34.7
|
|
|
56.8
|
|
Total
revenues
|
$
|
901.5
|
|
|
$
|
810.5
|
|
|
$
|
1,595.0
|
|
|
$
|
1,535.7
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
|
|
|
|
|
National
media
|
$
|
114.3
|
|
|
$
|
100.5
|
|
|
$
|
145.8
|
|
|
$
|
128.6
|
|
Local
media
|
151.7
|
|
|
54.8
|
|
|
215.5
|
|
|
93.2
|
|
Unallocated
corporate
|
(17.6)
|
|
|
(21.4)
|
|
|
(34.8)
|
|
|
(45.0)
|
|
Income from
operations
|
$
|
248.4
|
|
|
$
|
133.9
|
|
|
$
|
326.5
|
|
|
$
|
176.8
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
National
media
|
$
|
40.6
|
|
|
$
|
47.8
|
|
|
$
|
80.6
|
|
|
$
|
95.2
|
|
Local
media
|
8.7
|
|
|
9.9
|
|
|
17.3
|
|
|
19.5
|
|
Unallocated
corporate
|
0.5
|
|
|
0.9
|
|
|
0.9
|
|
|
2.4
|
|
Total depreciation
and amortization
|
$
|
49.8
|
|
|
$
|
58.6
|
|
|
$
|
98.8
|
|
|
$
|
117.1
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
1
|
|
|
|
|
|
|
|
National
media
|
$
|
156.0
|
|
|
$
|
141.0
|
|
|
$
|
232.1
|
|
|
$
|
231.6
|
|
Local
media
|
160.6
|
|
|
66.7
|
|
|
240.5
|
|
|
115.6
|
|
Unallocated
corporate
|
(12.2)
|
|
|
(13.7)
|
|
|
(25.0)
|
|
|
(30.8)
|
|
Total adjusted
EBITDA
|
$
|
304.4
|
|
|
$
|
194.0
|
|
|
$
|
447.6
|
|
|
$
|
316.4
|
|
|
|
1
|
Adjusted EBITDA is
earnings from continuing operations before interest expense, income
taxes, depreciation, amortization, and special items.
|
Meredith
Corporation and Subsidiaries
Segment
Information (Unaudited)
|
|
|
Three
Months
|
|
Six
Months
|
Periods ended
December 31,
|
2020
|
|
2019
|
|
2020
|
|
2019
|
(In
millions)
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
National
media
|
|
|
|
|
|
|
|
Digital
|
$
|
161.2
|
|
|
$
|
132.2
|
|
|
$
|
266.3
|
|
|
$
|
223.8
|
|
Magazine
|
120.4
|
|
|
149.4
|
|
|
228.9
|
|
|
309.8
|
|
Third party
sales
|
13.8
|
|
|
20.4
|
|
|
27.8
|
|
|
39.4
|
|
Total advertising
related
|
295.4
|
|
|
302.0
|
|
|
523.0
|
|
|
573.0
|
|
Subscription
|
144.8
|
|
|
159.8
|
|
|
278.2
|
|
|
310.3
|
|
Newsstand
|
40.3
|
|
|
37.7
|
|
|
75.4
|
|
|
80.3
|
|
Licensing
|
34.5
|
|
|
24.4
|
|
|
58.6
|
|
|
44.4
|
|
Affinity
marketing
|
18.5
|
|
|
20.0
|
|
|
32.9
|
|
|
33.9
|
|
Digital and other
consumer driven
|
27.7
|
|
|
21.9
|
|
|
47.8
|
|
|
38.4
|
|
Total consumer
related
|
265.8
|
|
|
263.8
|
|
|
492.9
|
|
|
507.3
|
|
Project
based
|
11.1
|
|
|
15.1
|
|
|
21.0
|
|
|
29.5
|
|
Other
|
3.7
|
|
|
16.3
|
|
|
6.8
|
|
|
20.3
|
|
Total other
|
14.8
|
|
|
31.4
|
|
|
27.8
|
|
|
49.8
|
|
Total national
media
|
576.0
|
|
|
597.2
|
|
|
1,043.7
|
|
|
1,130.1
|
|
Local
media
|
|
|
|
|
|
|
|
Non-political
spot
|
75.3
|
|
|
89.5
|
|
|
132.1
|
|
|
166.3
|
|
Political
spot
|
117.7
|
|
|
4.4
|
|
|
169.4
|
|
|
7.0
|
|
Digital
|
4.9
|
|
|
4.9
|
|
|
9.2
|
|
|
9.1
|
|
Third party
sales
|
34.7
|
|
|
27.2
|
|
|
53.0
|
|
|
52.7
|
|
Total advertising
related
|
232.6
|
|
|
126.0
|
|
|
363.7
|
|
|
235.1
|
|
Retransmission
|
91.9
|
|
|
85.1
|
|
|
183.3
|
|
|
164.7
|
|
Digital and other
consumer driven
|
0.3
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
Total consumer
related
|
92.2
|
|
|
85.1
|
|
|
183.8
|
|
|
164.7
|
|
Other
|
3.6
|
|
|
2.9
|
|
|
6.9
|
|
|
7.0
|
|
Total local
media
|
328.4
|
|
|
214.0
|
|
|
554.4
|
|
|
406.8
|
|
Intersegment revenue
elimination
|
(2.9)
|
|
|
(0.7)
|
|
|
(3.1)
|
|
|
(1.2)
|
|
Total
revenues
|
$
|
901.5
|
|
|
$
|
810.5
|
|
|
$
|
1,595.0
|
|
|
$
|
1,535.7
|
|
Meredith
Corporation and Subsidiaries
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
Assets
|
December 31,
2020
|
|
June 30,
2020
|
(In
millions)
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
379.1
|
|
|
$
|
132.4
|
|
Accounts receivable,
net
|
542.3
|
|
|
461.9
|
|
Inventories
|
33.8
|
|
|
34.2
|
|
Current portion of
subscription acquisition costs
|
222.1
|
|
|
213.2
|
|
Other current
assets
|
62.9
|
|
|
43.1
|
|
Total current
assets
|
1,240.2
|
|
|
884.8
|
|
Property, plant, and
equipment, net
|
377.4
|
|
|
399.9
|
|
Operating lease
assets
|
387.6
|
|
|
404.6
|
|
Subscription
acquisition costs
|
212.8
|
|
|
221.6
|
|
Other
assets
|
242.4
|
|
|
232.4
|
|
Intangible assets,
net
|
1,586.3
|
|
|
1,647.5
|
|
Goodwill
|
1,719.6
|
|
|
1,719.3
|
|
Total
assets
|
$
|
5,766.3
|
|
|
$
|
5,510.1
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
Current
liabilities
|
|
|
|
Current portion of
long-term debt
|
$
|
4.1
|
|
|
$
|
4.1
|
|
Current portion of
operating lease liabilities
|
35.7
|
|
|
35.2
|
|
Accounts
payable
|
124.4
|
|
|
121.1
|
|
Accrued expenses and
other liabilities
|
225.2
|
|
|
168.1
|
|
Current portion of
unearned revenues
|
402.3
|
|
|
403.2
|
|
Total current
liabilities
|
791.7
|
|
|
731.7
|
|
Long-term
debt
|
2,985.2
|
|
|
2,981.8
|
|
Operating lease
liabilities
|
449.4
|
|
|
466.7
|
|
Unearned
revenues
|
254.6
|
|
|
267.5
|
|
Deferred income
taxes
|
468.7
|
|
|
463.8
|
|
Other noncurrent
liabilities
|
206.8
|
|
|
210.4
|
|
Total
liabilities
|
5,156.4
|
|
|
5,121.9
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Common
stock
|
40.5
|
|
|
40.3
|
|
Class B
stock
|
5.1
|
|
|
5.1
|
|
Additional paid-in
capital
|
240.0
|
|
|
227.6
|
|
Retained
earnings
|
390.5
|
|
|
197.6
|
|
Accumulated other
comprehensive loss
|
(66.2)
|
|
|
(82.4)
|
|
Total
shareholders' equity
|
609.9
|
|
|
388.2
|
|
Total liabilities
and shareholders' equity
|
$
|
5,766.3
|
|
|
$
|
5,510.1
|
|
Meredith
Corporation and Subsidiaries
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
Six months ended
December 31,
|
2020
|
|
2019
|
(In
millions)
|
|
|
|
Net cash provided
by operating activities
|
$
|
261.8
|
|
|
$
|
72.1
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisitions of and
investments in businesses and assets, net of cash
acquired
|
—
|
|
|
(23.0)
|
|
Net proceeds from
disposition of assets, net of cash sold
|
5.2
|
|
|
33.8
|
|
Additions to property,
plant, and equipment
|
(17.9)
|
|
|
(34.5)
|
|
Other
|
0.7
|
|
|
—
|
|
Net cash used in
investing activities
|
(12.0)
|
|
|
(23.7)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from issuance
of long-term debt
|
—
|
|
|
280.0
|
|
Repayments of
long-term debt
|
(2.0)
|
|
|
(260.0)
|
|
Dividends
paid
|
—
|
|
|
(83.2)
|
|
Purchases of Company
stock
|
(0.9)
|
|
|
(4.2)
|
|
Proceeds from common
stock issued
|
0.9
|
|
|
1.1
|
|
Payment of acquisition
related contingent consideration
|
(1.0)
|
|
|
—
|
|
Financing lease
payments
|
(0.7)
|
|
|
(0.7)
|
|
Net cash used in
financing activities
|
(3.7)
|
|
|
(67.0)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
0.6
|
|
|
(0.1)
|
|
Change in cash
held-for-sale
|
—
|
|
|
(5.1)
|
|
Net increase
(decrease) in cash and cash equivalents
|
246.7
|
|
|
(23.8)
|
|
Cash and cash
equivalents at beginning of period
|
132.4
|
|
|
45.0
|
|
Cash and cash
equivalents at end of period
|
$
|
379.1
|
|
|
$
|
21.2
|
|
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
before 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
|
|
Six
Months
|
Periods ended
December 31,
|
2020
|
|
2019
|
|
2020
|
|
2019
|
(In millions
except per share data)
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
|
148.5
|
|
|
$
|
62.1
|
|
|
$
|
190.8
|
|
|
$
|
74.2
|
|
Special
items
|
|
|
|
|
|
|
|
Integration and
restructuring costs
|
3.9
|
|
|
4.0
|
|
|
7.5
|
|
|
12.4
|
|
Severance and related
benefit costs
|
0.5
|
|
|
3.8
|
|
|
12.9
|
|
|
9.9
|
|
Pension
settlements
|
1.8
|
|
|
8.8
|
|
|
1.8
|
|
|
8.8
|
|
Write-down of impaired
assets
|
—
|
|
|
—
|
|
|
—
|
|
|
5.2
|
|
Loss (gain) on
investment
|
—
|
|
|
—
|
|
|
(3.6)
|
|
|
1.1
|
|
Release of lease
guarantee
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.0)
|
|
Gain on sale of
businesses and assets
|
—
|
|
|
(8.3)
|
|
|
—
|
|
|
(8.7)
|
|
Other
|
(0.2)
|
|
|
0.4
|
|
|
(2.1)
|
|
|
0.4
|
|
Special items
subtotal
|
6.0
|
|
|
8.7
|
|
|
16.5
|
|
|
21.1
|
|
Tax expense (benefit)
on special items
|
(1.5)
|
|
|
2.1
|
|
|
(4.2)
|
|
|
(1.1)
|
|
Net special
items
|
4.5
|
|
|
10.8
|
|
|
12.3
|
|
|
20.0
|
|
Earnings from
continuing operations before special
items (non-GAAP)
|
$
|
153.0
|
|
|
$
|
72.9
|
|
|
$
|
203.1
|
|
|
$
|
94.2
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share attributable to common
shareholders before special items (non-GAAP)
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
3.04
|
|
|
$
|
0.91
|
|
|
$
|
3.92
|
|
|
$
|
0.75
|
|
Per share impact of
net special items
|
0.09
|
|
|
0.23
|
|
|
0.26
|
|
|
0.44
|
|
Earnings per share
from continuing operations before
special items (non-GAAP)
|
$
|
3.13
|
|
|
$
|
1.14
|
|
|
$
|
4.18
|
|
|
$
|
1.19
|
|
Table
2
|
Meredith
Corporation and Subsidiaries
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Special
Items
The following tables
show results of operations as reported under GAAP and excluding the
special items. Results of operations excluding the special items
are non-GAAP measures. Management's rationale for presenting
non-GAAP measures is included in the text of this earnings
release.
|
|
Adjusted
EBITDA
Consolidated adjusted
EBITDA, which is reconciled to net earnings in the following
tables, is defined as earnings from continuing operations before
interest expense, income 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, 2020
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
millions)
|
|
|
|
|
Revenues
|
$
|
576.0
|
|
$
|
328.4
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
148.5
|
|
Income tax
expense
|
57.0
|
|
Interest expense,
net
|
43.1
|
|
Non-operating income,
net
|
(0.2)
|
|
Operating
profit
|
$
|
114.3
|
|
$
|
151.7
|
|
$
|
(17.6)
|
|
248.4
|
|
Special items
included in operating profit
|
|
|
|
|
Integration and
restructuring costs
|
—
|
|
—
|
|
3.9
|
|
3.9
|
|
Severance and related
benefit costs
|
0.5
|
|
—
|
|
—
|
|
0.5
|
|
Other
|
(0.2)
|
|
—
|
|
—
|
|
(0.2)
|
|
Total special items
included in operating profit
|
0.3
|
|
—
|
|
3.9
|
|
4.2
|
|
Operating profit
before special items (non-GAAP)
|
114.6
|
|
151.7
|
|
(13.7)
|
|
252.6
|
|
Non-operating income
(expense), net
|
0.8
|
|
0.2
|
|
(0.8)
|
|
0.2
|
|
Special item included
in non-operating income (expense),
net - pension settlement
|
—
|
|
—
|
|
1.8
|
|
1.8
|
|
Depreciation and
amortization
|
40.6
|
|
8.7
|
|
0.5
|
|
49.8
|
|
Adjusted EBITDA
(non-GAAP)
|
$
|
156.0
|
|
$
|
160.6
|
|
$
|
(12.2)
|
|
$
|
304.4
|
|
|
|
|
|
|
Segment operating
margin
|
19.8
|
%
|
46.2
|
%
|
|
|
Segment adjusted
EBITDA margin
|
27.1
|
%
|
48.9
|
%
|
|
|
|
|
Three months ended
December 31, 2019
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
millions)
|
|
|
|
|
Revenues
|
$
|
597.2
|
|
$
|
214.0
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
37.8
|
|
Loss from
discontinued operations, net of income taxes
|
24.3
|
|
Earnings from
continuing operations
|
62.1
|
|
Income tax
expense
|
27.7
|
|
Interest expense,
net
|
36.9
|
|
Non-operating
expense, net
|
7.2
|
|
Operating
profit
|
$
|
100.5
|
|
$
|
54.8
|
|
$
|
(21.4)
|
|
133.9
|
|
Special items
included in operating profit
|
|
|
|
|
Integration and
restructuring costs
|
—
|
|
—
|
|
4.0
|
|
4.0
|
|
Severance and related
benefit costs
|
—
|
|
1.7
|
|
2.1
|
|
3.8
|
|
Gain on sale of
businesses and assets
|
(8.3)
|
|
—
|
|
—
|
|
(8.3)
|
|
Other
|
—
|
|
—
|
|
0.4
|
|
0.4
|
|
Total special items
included in operating profit
|
(8.3)
|
|
1.7
|
|
6.5
|
|
(0.1)
|
|
Operating profit
before special items (non-GAAP)
|
92.2
|
|
56.5
|
|
(14.9)
|
|
133.8
|
|
Non-operating income
(expense), net
|
1.0
|
|
0.3
|
|
(8.5)
|
|
(7.2)
|
|
Special item included
in non-operating income (expense),
net – pension settlement charge
|
—
|
|
—
|
|
8.8
|
|
8.8
|
|
Depreciation and
amortization
|
47.8
|
|
9.9
|
|
0.9
|
|
58.6
|
|
Adjusted EBITDA
(non-GAAP)
|
$
|
141.0
|
|
$
|
66.7
|
|
$
|
(13.7)
|
|
$
|
194.0
|
|
|
|
|
|
|
Segment operating
margin
|
16.8
|
%
|
25.6
|
%
|
|
|
Segment adjusted
EBITDA margin
|
23.6
|
%
|
31.2
|
%
|
|
|
Table
3
|
Meredith
Corporation and Subsidiaries
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Special
Items
The following tables
show results of operations as reported under GAAP and excluding the
special items. Results of operations excluding the special items
are non-GAAP measures. Management's rationale for presenting
non-GAAP measures is included in the text of this earnings
release.
|
|
Adjusted
EBITDA
Consolidated adjusted
EBITDA, which is reconciled to net earnings in the following
tables, is defined as earnings from continuing operations before
interest expense, income 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.
|
|
Six months ended
December 31, 2020
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
millions)
|
|
|
|
|
Revenues
|
$
|
1,043.7
|
|
$
|
554.4
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
190.8
|
|
Income tax
expense
|
54.9
|
|
Interest expense,
net
|
86.6
|
|
Non-operating income,
net
|
(5.8)
|
|
Operating
profit
|
$
|
145.8
|
|
$
|
215.5
|
|
$
|
(34.8)
|
|
326.5
|
|
Special items
included in operating profit
|
|
|
|
|
Severance and related
benefit costs
|
5.1
|
|
7.2
|
|
0.6
|
|
12.9
|
|
Integration and
restructuring costs
|
0.2
|
|
—
|
|
7.3
|
|
7.5
|
|
Other
|
(1.1)
|
|
—
|
|
(1.0)
|
|
(2.1)
|
|
Total special items
included in operating profit
|
4.2
|
|
7.2
|
|
6.9
|
|
18.3
|
|
Operating profit
before special items (non-GAAP)
|
150.0
|
|
222.7
|
|
(27.9)
|
|
344.8
|
|
Non-operating income,
net
|
5.1
|
|
0.5
|
|
0.2
|
|
5.8
|
|
Special items
included in non-operating income, net
|
|
|
|
|
Pension
settlement
|
—
|
|
—
|
|
1.8
|
|
1.8
|
|
Gain on
investment
|
(3.6)
|
|
—
|
|
—
|
|
(3.6)
|
|
Total special items
included in non-operating income, net
|
(3.6)
|
|
—
|
|
1.8
|
|
(1.8)
|
|
Depreciation and
amortization
|
80.6
|
|
17.3
|
|
0.9
|
|
98.8
|
|
Adjusted EBITDA
(non-GAAP)
|
$
|
232.1
|
|
$
|
240.5
|
|
$
|
(25.0)
|
|
$
|
447.6
|
|
|
|
|
|
|
Segment operating
margin
|
14.0
|
%
|
38.9
|
%
|
|
|
Segment adjusted
EBITDA margin
|
22.2
|
%
|
43.4
|
%
|
|
|
|
|
Six months ended
December 31, 2019
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
millions)
|
|
|
|
|
Revenues
|
$
|
1,130.1
|
|
$
|
406.8
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
43.9
|
|
Loss from
discontinued operations, net of income taxes
|
30.3
|
|
Earnings from
continuing operations
|
74.2
|
|
Income tax
expense
|
28.2
|
|
Interest expense,
net
|
75.8
|
|
Non-operating income,
net
|
(1.4)
|
|
Operating
profit
|
$
|
128.6
|
|
$
|
93.2
|
|
$
|
(45.0)
|
|
176.8
|
|
Special items
included in operating profit
|
|
|
|
|
Integration and
restructuring costs
|
3.0
|
|
—
|
|
9.4
|
|
12.4
|
|
Severance and related
benefit costs
|
5.1
|
|
2.3
|
|
2.5
|
|
9.9
|
|
Write-down of impaired
assets
|
5.2
|
|
—
|
|
—
|
|
5.2
|
|
Gain on sale of
businesses and assets
|
(8.7)
|
|
—
|
|
—
|
|
(8.7)
|
|
Other
|
—
|
|
—
|
|
0.4
|
|
0.4
|
|
Total special items
included in operating profit
|
4.6
|
|
2.3
|
|
12.3
|
|
19.2
|
|
Operating profit
before special items (non-GAAP)
|
133.2
|
|
95.5
|
|
(32.7)
|
|
196.0
|
|
Non-operating income
(expense), net
|
10.1
|
|
0.6
|
|
(9.3)
|
|
1.4
|
|
Special items
included in non-operating income (expense), net
|
|
|
|
|
Pension
settlement
|
—
|
|
—
|
|
8.8
|
|
8.8
|
|
Loss on
investment
|
1.1
|
|
|
|
1.1
|
|
Release of lease
guarantee
|
(8.0)
|
|
—
|
|
—
|
|
(8.0)
|
|
Total special items
included in non-operating income (expense), net
|
(6.9)
|
|
—
|
|
8.8
|
|
1.9
|
|
Depreciation and
amortization
|
95.2
|
|
19.5
|
|
2.4
|
|
117.1
|
|
Adjusted EBITDA
(non-GAAP)
|
$
|
231.6
|
|
$
|
115.6
|
|
$
|
(30.8)
|
|
$
|
316.4
|
|
|
|
|
|
|
Segment operating
margin
|
11.4
|
%
|
22.9
|
%
|
|
|
Segment adjusted
EBITDA margin
|
20.5
|
%
|
28.4
|
%
|
|
|
|
|
|
|
|
Table
4
|
Meredith
Corporation and Subsidiaries
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Free Cash
Flow – The following table presents net cash provided
by operating activities as reported under GAAP and additions to
property, plant, and equipment also as reported under GAAP. Free
cash flow is a non-GAAP measure. Management's rationale for
presenting non-GAAP measures is included in the text of this
earnings release.
|
|
|
Three
Months
|
|
Six
Months
|
Periods ended
December 31,
|
2020
|
|
2019
|
|
2020
|
|
2019
|
(In
millions)
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
182.9
|
|
|
$
|
85.6
|
|
|
$
|
261.8
|
|
|
$
|
72.1
|
|
Less: additions to
property, plant, and equipment
|
(8.6)
|
|
|
(18.6)
|
|
|
(17.9)
|
|
|
(34.5)
|
|
Free cash
flow
|
$
|
174.3
|
|
|
$
|
67.0
|
|
|
$
|
243.9
|
|
|
$
|
37.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Meredith Corporation