Tribune Publishing Company (NASDAQ:TPCO) today announced financial
results for the first quarter ended March 31, 2019. Unless
otherwise noted, amounts and disclosures throughout this earnings
release relate to continuing operations and exclude all
discontinued operations including the Los Angeles Times, the San
Diego Union-Tribune and other assets of the California News Group
(collectively, the “California properties”) and forsalebyowner.com.
First Quarter 2019 Highlights:
- Total revenues increased to $244.5 million, up 2.6%
year-over-year
- Net loss attributable to Tribune Publishing common stockholders
decreased to $4.7 million, or $0.13 per share, in the first quarter
of 2019 compared to a net loss of $14.6 million, or $0.42 per share
in the first quarter of 2018
- Adjusted EBITDA increased to $21.3 million, up $12.8 million
year-over-year
- Digital content revenues increased 43% compared to the first
quarter of 2018
- Digital-only subscribers increased 45% to 283,000 at the end of
the first quarter 2019, up from 195,000 at the end of the first
quarter 2018
Timothy P. Knight, Tribune Publishing Chief Executive Officer
and President, said, “Tribune Publishing is off to a very strong
start to 2019. Our focus on driving digital content revenue growth,
coupled with the cost management actions we implemented in late
2018, enabled us to deliver significant year-over-year improvement
in Adjusted EBITDA, exceeding our expectations for the quarter and
laying a solid foundation for our future.”
Mr. Knight continued, “I am pleased to report that we delivered
growth across our digital subscription, commerce and content
syndication operations in the first quarter, reflecting the success
of our continued efforts to expand digital-only subscribers and
revenue. Importantly, we have delivered nineteen consecutive
quarters of digital subscription volume and revenue growth across
the Tribune Publishing portfolio, and the Chicago Tribune reached a
key milestone by surpassing 100,000 paid digital subscribers - an
achievement we proudly announced last week.”
“The foundation for these accomplishments is the remarkable
performance of our newsrooms. They continue to produce a wide range
of journalism that is valued by the communities they serve. We are
also very pleased that the South Florida Sun Sentinel was awarded
the 2019 Pulitzer Prize for Public Service for its extensive
coverage of the Parkland School shooting, coverage that served to
make schools safer both in Parkland and across the country. The
Annapolis Capital Gazette was also honored with a Special Citation
for its courageous reporting following the June attack on its own
offices that killed five of its employees. The Pulitzer Board’s
recognition of both of these distinguished titles is a testimony to
the hard work and talent of our journalists, and we are deeply
appreciative of their efforts,” Mr. Knight said.
First Quarter 2019 ResultsFirst quarter 2019
total revenues were $244.5 million, up $6.1 million or 2.6%
compared to $238.4 million for the first quarter 2018. Revenues for
the first quarter 2019 include $24.1 million attributable to one
extra operating month in the quarter for BestReviews compared to
the prior year period, the contribution from the Virginian-Pilot
Media Companies (“VPMC”) acquisition and revenue associated with
the Company’s Transition Service Arrangement with the California
properties.
First quarter 2019 total advertising revenue and digital
advertising revenue were $96.8 million and $20.8 million,
respectively.
Total operating expenses, including depreciation and
amortization, in the first quarter of 2019 were $251.9 million,
down 6.5%, compared to $269.4 million in the first quarter of 2018.
The decrease resulted from the Company’s ongoing strong cost
management partially offset by the impact of the BestReviews and
VPMC acquisitions.
Net loss from continuing operations was $4.7 million in the
first quarter of 2019, compared to a loss of $28.1 million in
the first quarter of 2018.
Adjusted EBITDA was $21.3 million in the first quarter of 2019,
which grew by $12.8 million versus the first quarter of 2018. The
year-over-year increase is primarily driven by strong expense
management and growth in digital content revenue.
For the quarter ended March 31, 2019, capital expenditures
totaled $3.9 million. Cash balance at March 31, 2019, was $142.2
million, which includes $43.9 million of restricted cash reflected
in long-term assets.
Segment ResultsThe Company operates in two
segments: M, which is comprised of the Company’s media groups
excluding their digital revenues and related expenses (except
digital subscription revenues when bundled with a print
subscription) and X, which includes all digital revenues and
related expenses of the Company from local Tribune Publishing
websites, third-party websites, mobile applications, digital-only
subscriptions, Tribune Content Agency and BestReviews.
Included in the tables below is segment reporting for M and X
for the first quarters of 2019 and 2018.
MFirst quarter 2019 M total revenues were $198.0 million, down
3.0% compared to the first quarter of 2018. Excluding the impact of
the Virginian-Pilot, revenue was down 8.8%.
First quarter 2019 operating expenses for M decreased 9.9%
compared to the prior-year quarter, driven primarily by cost
reduction actions, partially offset by expenses related to the VPMC
business.
First quarter 2019 income from operations for M was $13.8
million and Adjusted EBITDA was $23.8 million.
XTotal revenues for X for the first quarter of 2019 were $39.6
million, up 12.6%, primarily driven by the impact of the VPMC and
BestReviews businesses, as well as core growth in Digital Only
Subscription revenue. Content revenues in the first quarter of
2019, which includes digital-only subscriptions, content
syndication and commerce revenues, increased by 43.2%
year-over-year. Excluding the impact of the VPMC and BestReviews
acquisitions, content revenues would have been up organically
20.0%.
First quarter 2019 operating expenses for X increased 25.2%
compared to the prior-year quarter, driven primarily by resources
and associated costs shifting to X from M, increased expenses
associated with the BestReviews and VPMC businesses and an increase
in restructuring costs due to organizational changes implemented in
the first quarter of 2019.
First quarter 2019 loss from operations for X was $5.2 million
versus a loss of $0.6 million in the first quarter of 2018 and
Adjusted EBITDA was $2.5 million, down $3.4 million compared to the
first quarter of 2018.
Digital-only subscribers grew to 283,000, up 45% from the prior
year and up 13% sequentially from the fourth quarter of 2019.
2019 OutlookFor the full year, the Company
reaffirms its previously provided Adjusted EBITDA guidance range of
$101 million to $105 million.
For the second quarter of 2019, the Company expects total
revenues to range from $240 million to $245 million and Adjusted
EBITDA to range from $20 million to $21 million.
Conference Call DetailsTribune Publishing will
host a conference call to discuss the Company’s first quarter 2019
results at 5:00 p.m. Eastern Time (4:00 p.m. Central
Time) on Wednesday, May 8, 2019. The conference call may be
accessed via Tribune Publishing’s Investor Relations website at
investor.tribpub.com or by dialing 844.494.0195 (508.637.5599 for
international callers) and entering conference ID 1427598. An
archived version of the webcast will also be available for one year
on the Tribune Publishing website. You can also access this replay
via telephone, until May 15, 2019, by dialing
855.859.2056 (404.537.3406 for international callers), and
entering conference ID 1427598.
Non-GAAP Financial InformationAdjusted EBITDA,
Adjusted total operating expenses, Adjusted Net Income, and
Adjusted Diluted EPS. These are not measures presented in
accordance with generally accepted accounting principles in the
United States (US GAAP) and Tribune Publishing’s use of the terms
Adjusted EBITDA, Adjusted total operating expenses, Adjusted Net
Income, and Adjusted Diluted EPS may vary from that of others in
the Company’s industry. Adjusted EBITDA, Adjusted total operating
expenses, Adjusted Net Income, and Adjusted Diluted EPS should not
be considered as an alternative to net income (loss), income from
operations, operating expenses, net income (loss) per diluted
share, revenues or any other performance measures derived in
accordance with US GAAP as measures of operating performance or
liquidity. Further information regarding Tribune Publishing’s
presentation of these measures, including a reconciliation of
Adjusted EBITDA, Adjusted total operating expenses, Adjusted Net
Income and Adjusted Diluted EPS to the most directly comparable US
GAAP financial measure, is included below in this press
release.
Cautionary Statements Regarding Forward-looking
StatementsThis press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934 that
are based largely on our current expectations and reflect various
estimates and assumptions by us. Forward-looking statements are
subject to certain risks, trends, and uncertainties that could
cause actual results and achievements to differ materially from
those expressed in such forward-looking statements. Such risks,
trends and uncertainties, which in some instances are beyond our
control, include: changes in advertising demand, circulation levels
and audience shares; competition and other economic conditions;
economic and market conditions that could impact the level of our
required contributions to the defined benefit pension plans to
which we contribute; decisions by trustees under rehabilitation
plans (if applicable) or other contributing employers with respect
to multiemployer plans to which we contribute which could impact
the level of our contributions; our ability to develop and grow our
online businesses; changes in newsprint price; our ability to
maintain effective internal control over financial reporting;
concentration of stock ownership among our principal stockholders
whose interests may differ from those of other stockholders; and
other events beyond our control that may result in unexpected
adverse operating results. For more information about these and
other risks see Item 1A (Risk Factors) of the Company’s most recent
Annual Report on Form 10-K and in the Company’s other reports filed
with the Securities and Exchange Commission.
The words “believe,” “expect,” “anticipate,” “estimate,”
“could,” “should,” “intend,” “may,” “will,” “plan,” “seek” and
similar expressions generally identify forward-looking statements.
However, such words are not the exclusive means for identifying
forward-looking statements, and their absence does not mean that
the statement is not forward-looking. Whether or not any such
forward-looking statements, in fact, occur will depend on future
events, some of which are beyond our control. Readers are cautioned
not to place undue reliance on such forward-looking statements,
which are being made as of the date of this press release. Except
as required by law, we undertake no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
About Tribune Publishing CompanyTribune
Publishing (NASDAQ:TPCO) is a media company rooted in award-winning
journalism. Headquartered in Chicago, Tribune Publishing operates
local media businesses in eight markets with titles
including the Chicago Tribune, New York Daily
News, The Baltimore Sun, Orlando Sentinel, South
Florida's Sun-Sentinel, Virginia’s Daily Press and The
Virginian-Pilot, The Morning Call of Lehigh Valley, Pennsylvania,
and the Hartford Courant.
In addition to award-winning local media businesses, Tribune
Publishing operates national and international brands such as
Tribune Content Agency and The Daily Meal, and is the majority
owner of the product review website BestReviews.
Our brands are committed to informing, inspiring and
engaging local communities. We create and distribute content across
our media portfolio, offering integrated marketing, media, and
business services to consumers and advertisers, including digital
solutions and advertising opportunities.
Investor Relations Contact:Terry JimenezTribune
Publishing, EVP/CFO312.222.5787tjimenez@tribpub.com
Media Contact:Tilden KatzTribune Publishing
Corporate
Communications312.606.2614tilden.katz@fticonsulting.comSource:
Tribune Publishing
Exhibits:Condensed Consolidated Statements of Income
(Loss)Segment Income, Expenses, and Non-GAAP
ReconciliationsCondensed Consolidated Balance SheetsNon-GAAP
Reconciliations - Loss from Continuing Operations to Adjusted
EBITDANon-GAAP Reconciliations - Total Operating Expenses to
Adjusted Total Operating ExpensesNon-GAAP Reconciliations - Loss
from Continuing Operations to Adjusted Net Income (Loss) from
continuing operations and Adjusted Diluted EPS
TRIBUNE PUBLISHING
COMPANYCONDENSED CONSOLIDATED STATEMENTS OF
LOSS(In thousands, except per share
data)(Unaudited)
Preliminary
|
|
Three Months Ended |
|
|
March 31, 2019 |
|
April 1, 2018 |
|
|
|
|
|
Operating
revenues |
|
$ |
244,525 |
|
|
$ |
238,366 |
|
|
|
|
|
|
Operating
expenses |
|
251,927 |
|
|
269,444 |
|
|
|
|
|
|
Income (loss) from
operations |
|
(7,402 |
) |
|
(31,078 |
) |
|
|
|
|
|
Interest income (expense),
net |
|
220 |
|
|
(6,564 |
) |
Loss on equity investments,
net |
|
(487 |
) |
|
(729 |
) |
Other income, net |
|
73 |
|
|
3,663 |
|
Loss from continuing
operations before income taxes |
|
(7,596 |
) |
|
(34,708 |
) |
Income tax benefit |
|
(2,882 |
) |
|
(6,637 |
) |
Net loss from
continuing operations |
|
(4,714 |
) |
|
(28,071 |
) |
Income from discontinued operations, net of taxes |
|
— |
|
|
13,706 |
|
Net loss |
|
(4,714 |
) |
|
(14,365 |
) |
Less: Income (loss) attributable to non-controlling interests |
|
(39 |
) |
|
262 |
|
Net loss attributable
to Tribune common stockholders |
|
$ |
(4,675 |
) |
|
$ |
(14,627 |
) |
|
|
|
|
|
Net loss attributable
to Tribune per common share - Basic |
|
|
|
|
Loss from continuing operations |
|
$ |
(0.13 |
) |
|
$ |
(0.81 |
) |
Income (loss) from discontinued operations |
|
— |
|
|
0.39 |
|
Net income attributable to Tribune per common share - Basic |
|
$ |
(0.13 |
) |
|
$ |
(0.42 |
) |
|
|
|
|
|
Net loss attributable
to Tribune per common share - Diluted |
|
|
|
|
Loss from continuing operations |
|
$ |
(0.13 |
) |
|
$ |
(0.81 |
) |
Income from discontinued operations |
|
— |
|
|
0.39 |
|
Net income attributable to Tribune per common share - Diluted |
|
$ |
(0.13 |
) |
|
$ |
(0.42 |
) |
|
|
|
|
|
Weighted average
shares outstanding: |
|
|
|
|
Basic |
|
35,628 |
|
|
34,801 |
|
Diluted |
|
35,628 |
|
|
34,801 |
|
|
|
|
|
|
|
|
TRIBUNE PUBLISHING
COMPANYSEGMENT INFORMATION(In
thousands) (Unaudited)
Preliminary
The tables below show the segmentation of income and expenses
for the three months ended March 31, 2019 as compared to the three
months ended April 1, 2018. Each period consists of 13 weeks.
|
M |
|
X |
|
Corporate and Eliminations |
|
Consolidated |
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
March 31, 2019 |
|
April 1, 2018 |
|
March 31, 2019 |
|
April 1, 2018 |
|
March 31, 2019 |
|
April 1, 2018 |
|
March 31, 2019 |
|
April 1, 2018 |
Total revenues |
$ |
198,025 |
|
|
$ |
204,211 |
|
|
$ |
39,583 |
|
|
$ |
35,144 |
|
|
$ |
6,917 |
|
|
$ |
(989 |
) |
|
$ |
244,525 |
|
|
$ |
238,366 |
|
Operating expenses |
184,227 |
|
|
204,411 |
|
|
44,783 |
|
|
35,755 |
|
|
22,917 |
|
|
29,278 |
|
|
251,927 |
|
|
269,444 |
|
Income (loss) from
operations |
13,798 |
|
|
(200 |
) |
|
(5,200 |
) |
|
(611 |
) |
|
(16,000 |
) |
|
(30,267 |
) |
|
(7,402 |
) |
|
(31,078 |
) |
Depreciation and
amortization |
6,286 |
|
|
3,972 |
|
|
2,177 |
|
|
4,549 |
|
|
3,621 |
|
|
3,925 |
|
|
12,084 |
|
|
12,446 |
|
Adjustments |
3,686 |
|
|
4,877 |
|
|
5,555 |
|
|
1,950 |
|
|
7,366 |
|
|
20,344 |
|
|
16,607 |
|
|
27,171 |
|
Adjusted EBITDA |
$ |
23,770 |
|
|
$ |
8,649 |
|
|
$ |
2,532 |
|
|
$ |
5,888 |
|
|
$ |
(5,013 |
) |
|
$ |
(5,998 |
) |
|
$ |
21,289 |
|
|
$ |
8,539 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
M |
|
Three Months Ended |
|
|
March 31, 2019 |
|
April 1, 2018 |
|
% Change |
Operating
revenues: |
|
|
|
|
|
|
Advertising |
|
$ |
75,932 |
|
|
$ |
82,742 |
|
|
(8.2 |
%) |
Circulation |
|
86,670 |
|
|
84,626 |
|
|
2.4 |
% |
Other |
|
35,423 |
|
|
36,843 |
|
|
(3.9 |
%) |
Total revenues |
|
198,025 |
|
|
204,211 |
|
|
(3.0 |
%) |
Operating
expenses |
|
184,227 |
|
|
204,411 |
|
|
(9.9 |
%) |
Income (loss) from
operations |
|
13,798 |
|
|
(200 |
) |
|
* |
Depreciation and
amortization |
|
6,286 |
|
|
3,972 |
|
|
58.3 |
% |
Adjustments |
|
3,686 |
|
|
4,877 |
|
|
(24.4 |
%) |
Adjusted
EBITDA |
|
$ |
23,770 |
|
|
$ |
8,649 |
|
|
* |
|
|
|
|
|
|
|
|
|
|
|
Segment
X |
|
Three Months Ended |
|
|
March 31, 2019 |
|
April 1, 2018 |
|
% Change |
Operating
revenues: |
|
|
|
|
|
|
Advertising |
|
$ |
20,836 |
|
|
$ |
22,050 |
|
|
(5.5 |
%) |
Content |
|
18,747 |
|
|
13,094 |
|
|
43.2 |
% |
Total revenues |
|
39,583 |
|
|
35,144 |
|
|
12.6 |
% |
Operating
expenses |
|
44,783 |
|
|
35,755 |
|
|
25.2 |
% |
Loss from
operations |
|
(5,200 |
) |
|
(611 |
) |
|
* |
Depreciation and
amortization |
|
2,177 |
|
|
4,549 |
|
|
(52.1 |
%) |
Adjustments |
|
5,555 |
|
|
1,950 |
|
|
* |
Adjusted
EBITDA |
|
$ |
2,532 |
|
|
$ |
5,888 |
|
|
(57.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
TRIBUNE PUBLISHING
COMPANYCONDENSED CONSOLIDATED BALANCE
SHEETS(In
thousands)(Unaudited)
Preliminary
|
|
March 31, 2019 |
|
December 30, 2018 |
Assets |
|
|
|
|
Current
Assets: |
|
|
|
|
Cash |
|
$ |
98,206 |
|
|
$ |
97,560 |
|
Accounts receivable |
|
111,618 |
|
|
145,463 |
|
Inventories |
|
9,267 |
|
|
9,587 |
|
Prepaid expenses and other |
|
20,605 |
|
|
18,197 |
|
Total current assets |
|
239,696 |
|
|
270,807 |
|
Net Properties, Plant
and Equipment |
|
134,086 |
|
|
144,963 |
|
Other
Assets |
|
|
|
|
Goodwill |
|
233,120 |
|
|
236,492 |
|
Intangible assets, net |
|
74,780 |
|
|
77,229 |
|
Software, net |
|
26,168 |
|
|
27,117 |
|
Lease right of use assets |
|
112,393 |
|
|
— |
|
Restricted cash |
|
43,947 |
|
|
43,947 |
|
Other long-term assets |
|
29,085 |
|
|
30,418 |
|
Total other assets |
|
418,545 |
|
|
310,857 |
|
Total assets |
|
$ |
792,327 |
|
|
$ |
726,627 |
|
|
|
|
|
|
Liabilities and
Equity |
|
|
|
|
Current
Liabilities |
|
|
|
|
Accounts payable |
|
$ |
53,098 |
|
|
$ |
70,555 |
|
Employee compensation and benefits |
|
41,895 |
|
|
61,001 |
|
Deferred revenue |
|
49,814 |
|
|
51,114 |
|
Current portion of long-term lease liability |
|
26,393 |
|
|
— |
|
Current portion of long-term debt |
|
405 |
|
|
405 |
|
Other current liabilities |
|
20,542 |
|
|
21,203 |
|
Liabilities associated with assets held for sale |
|
6,249 |
|
|
6,249 |
|
Total current liabilities |
|
198,396 |
|
|
210,527 |
|
Non-Current
Liabilities |
|
|
|
|
Long-term lease liability |
|
112,610 |
|
|
— |
|
Workers’ compensation, general liability and auto insurance
payable |
|
25,674 |
|
|
30,606 |
|
Pension and postretirement benefits payable |
|
19,096 |
|
|
20,150 |
|
Deferred rent |
|
— |
|
|
25,424 |
|
Long-term debt |
|
6,775 |
|
|
6,799 |
|
Other obligations |
|
17,546 |
|
|
20,053 |
|
Total non-current liabilities |
|
181,701 |
|
|
103,032 |
|
Noncontrolling Equity
Interest |
|
39,717 |
|
|
39,756 |
|
Equity |
|
|
|
|
Total stockholders' equity |
|
372,513 |
|
|
373,312 |
|
Total liabilities and
equity |
|
$ |
792,327 |
|
|
$ |
726,627 |
|
|
|
|
|
|
|
|
|
|
TRIBUNE PUBLISHING
COMPANYNON-GAAP
RECONCILIATIONS(In thousands)
(Unaudited)
Preliminary
Reconciliation of Loss From Continuing Operations to
Adjusted EBITDA:
|
Three Months Ended |
|
March 31, 2019 |
|
April 1, 2018 |
|
% Change |
Net loss from
continuing operations |
$ |
(4,714 |
) |
|
$ |
(28,071 |
) |
|
(83.2 |
%) |
Income tax expense |
(2,882 |
) |
|
(6,637 |
) |
|
(56.6 |
%) |
Interest (income) expense,
net |
(220 |
) |
|
6,564 |
|
|
* |
Loss on equity investments,
net |
487 |
|
|
729 |
|
|
(33.2 |
%) |
Other income, net |
(73 |
) |
|
(3,663 |
) |
|
(98.0 |
%) |
Loss from
operations |
(7,402 |
) |
|
(31,078 |
) |
|
(76.2 |
%) |
Depreciation and
amortization |
12,084 |
|
|
12,446 |
|
|
(2.9 |
%) |
Restructuring and transaction
costs (1) |
10,870 |
|
|
25,584 |
|
|
(57.5 |
%) |
Stock-based compensation |
5,737 |
|
|
1,587 |
|
|
*......... |
Adjusted
EBITDA |
$ |
21,289 |
|
|
$ |
8,539 |
|
|
*......... |
* Represents positive or negative change in excess of 100%
(1) - Restructuring and transaction costs include costs related
to Tribune's internal restructuring, such as severance, charges
associated with vacated space, costs related to completed and
potential acquisitions and a one-time charge related to the
Consulting Agreement.
Adjusted EBITDA
Adjusted EBITDA is a financial measure that is not calculated in
accordance with accounting principles generally accepted in the
United States of America (“U.S. GAAP”). Management believes that
because Adjusted EBITDA excludes (i) certain non-cash expenses
(such as depreciation, amortization, stock-based compensation, and
gain/loss on equity investments) and (ii) expenses that are
not reflective of the Company’s core operating results over time
(such as restructuring costs, including the employee voluntary
separation program and gain/losses on employee benefit
plan terminations, litigation or dispute settlement charges or
gains, premiums on stock buyback and transaction-related costs),
this measure provides investors with additional useful information
to measure the Company’s financial performance, particularly with
respect to changes in performance from period to period. The
Company’s management uses Adjusted EBITDA (a) as a measure of
operating performance; (b) for planning and forecasting in future
periods; and (c) in communications with the Company’s Board of
Directors concerning the Company’s financial performance. In
addition, Adjusted EBITDA, or a similarly calculated measure, has
been used as the basis for certain financial maintenance covenants
that the Company is subject to in connection with certain credit
facilities. Since not all companies use identical calculations, the
Company’s presentation of Adjusted EBITDA may not be comparable to
other similarly titled measures of other companies and should not
be used by investors as a substitute or alternative to net income
or any measure of financial performance calculated and presented in
accordance with U.S. GAAP. Instead, management believes Adjusted
EBITDA should be used to supplement the Company’s financial
measures derived in accordance with U.S. GAAP to provide a more
complete understanding of the trends affecting the business.
Although Adjusted EBITDA is frequently used by investors and
securities analysts in their evaluations of companies, Adjusted
EBITDA has limitations as an analytical tool, and investors should
not consider it in isolation or as a substitute for, or more
meaningful than, amounts determined in accordance with GAAP. Some
of the limitations to using non-GAAP measures as an analytical tool
are: they do not reflect the Company’s interest income and expense,
or the requirements necessary to service interest or principal
payments on the Company’s debt; they do not reflect future
requirements for capital expenditures or contractual commitments;
and although depreciation and amortization charges are non-cash
charges, the assets being depreciated and amortized will often have
to be replaced in the future, and non-GAAP measures do not reflect
any cash requirements for such replacements.
The Company does not provide a reconciliation of Adjusted EBITDA
guidance due to the inherent difficulty in forecasting and
quantifying certain amounts that are necessary for such
reconciliation, including adjustments that could be made for
restructuring and transaction costs, stock-based compensation
amounts and other charges reflected in our reconciliation of
historic numbers, the amount of which, based on historical
experience, could be significant.
TRIBUNE PUBLISHING
COMPANYNON-GAAP
RECONCILIATIONS(In
thousands)(Unaudited)
Preliminary
Reconciliation of Total Operating Expenses to Adjusted
Same-Business Operating Expenses
Adjusted same-business operating expenses consist of total
operating expenses per the income statement, adjusted to exclude
the impact of items listed in the Adjusted EBITDA non-GAAP
reconciliation, the additional expenses related to the 2018
acquisitions (e.g. same-business) and the impact of the TSA
expenses. Management believes that adjusted same-business operating
expenses is informative to investors as it enhances the investors'
overall understanding of the financial performance of the Company's
business as they analyze current results compared to prior
periods.
|
|
Three Months Ended March 31, 2019 |
|
Three Months Ended April 1, 2018 |
|
|
GAAP |
|
Adjustments |
|
Adjusted Same- Business |
|
GAAP |
|
Adjustments |
|
Adjusted Same- Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation |
|
$ |
97,709 |
|
|
$ |
(18,237 |
) |
|
$ |
79,472 |
|
|
$ |
110,765 |
|
|
$ |
(8,659 |
) |
|
$ |
102,106 |
|
Newsprint and ink |
|
16,103 |
|
|
(1,240 |
) |
|
14,863 |
|
|
14,598 |
|
|
— |
|
|
14,598 |
|
Outside services |
|
83,813 |
|
|
(7,676 |
) |
|
76,137 |
|
|
98,982 |
|
|
(20,412 |
) |
|
78,570 |
|
Other operating expenses |
|
42,218 |
|
|
(14,400 |
) |
|
27,818 |
|
|
32,653 |
|
|
(1,711 |
) |
|
30,942 |
|
Depreciation and
amortization |
|
12,084 |
|
|
(12,084 |
) |
|
— |
|
|
12,446 |
|
|
(12,446 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
$ |
251,927 |
|
|
$ |
(53,637 |
) |
|
$ |
198,290 |
|
|
$ |
269,444 |
|
|
$ |
(43,228 |
) |
|
$ |
226,216 |
|
Reconciliation of Loss From Continuing Operations to
Adjusted Income (Loss) From Continuing Operations and Adjusted
Diluted EPS:
Adjusted net income (loss) from continuing operations is defined
as loss from continuing operations- GAAP excluding the adjustments
for restructuring and transaction costs, net of the impact of
income taxes.
Adjusted Diluted EPS computes Adjusted net income (loss) from
continuing operations divided by diluted weighted average shares
outstanding.
Management believes Adjusted Net income (loss) from continuing
operations and Adjusted Diluted EPS are informative to investors as
they enhance investors' overall understanding of the financial
performance of the Company's business as they analyze current
results compared to future recurring projections.
|
|
Three Months Ended |
|
|
March 31, 2019 |
|
April 1, 2018 |
|
|
Earnings |
|
Diluted EPS |
|
Earnings |
|
Diluted EPS |
Loss from
continuing operations - GAAP |
$ |
(4,714 |
) |
|
$ |
(0.13 |
) |
|
$ |
(28,071 |
) |
|
$ |
(0.81 |
) |
Adjustments to
operating expenses, net of 27.8% tax: |
|
|
|
|
|
|
|
|
Restructuring and transaction
costs |
7,848 |
|
|
0.22 |
|
|
18,472 |
|
|
0.53 |
|
Adjusted income
(loss) from continuing operations - Non-GAAP |
$ |
3,134 |
|
|
$ |
0.09 |
|
|
$ |
(9,599 |
) |
|
$ |
(0.28 |
) |
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