DES MOINES, Iowa, April 27, 2017 /PRNewswire/ -- Meredith
Corporation (NYSE:MDP; meredith.com) — the leading media and
marketing company with local television brands in large,
fast-growing markets and national brands serving more than 110
million American women — today reported fiscal 2017 third quarter
and nine month results:
- Fiscal 2017 third quarter earnings per share were $0.87, compared to $1.79 in the prior-year quarter which included
special items of $0.87 per share
primarily related to a merger termination fee received.
(See Tables 1-6 for supplemental
disclosures regarding non-GAAP financial measures.)
- Excluding special items, fiscal 2017 third quarter earnings per
share were $0.87, compared to
$0.92 in the prior-year quarter when
Meredith benefited from $0.05 per
share of incremental high-margin political advertising from the
Presidential primary season.
- Fiscal 2017 third quarter total Company revenues grew to
$425 million.
- For the first nine months of fiscal 2017, earnings per share
were a record $3.20, compared to
$2.74 in the prior-year period.
Excluding special items in both periods, earnings per share grew 30
percent to a record $2.92, up from
$2.24 in the prior-year period.
- For the first nine months of fiscal 2017, total Company
revenues increased 4 percent to a record $1.3 billion, and total advertising revenues grew
3 percent to $704 million.
"We are pleased that continued strong execution of our
multiplatform strategy — including our growing and profitable
digital activities — has Meredith on track to deliver record
revenue and operating profit for full-year fiscal 2017," said
Meredith Chairman and CEO Stephen M.
Lacy. "Importantly, we continue to successfully
execute our Total Shareholder Return strategy, including increasing
our dividend for the 24th consecutive year."
Looking at Meredith's performance in the third quarter of fiscal
2017 compared to the prior-year quarter:
- Total Company digital advertising revenues grew nearly 25
percent to a third quarter record. National Media Group digital
advertising increased 27 percent and represented nearly 30 percent
of its total advertising. Local Media Group digital advertising
rose nearly 10 percent. Traffic across Meredith's digital and
mobile sites grew to an average of nearly 90 million unique
visitors per month.
- National Media Group operating profit grew nearly 20 percent
to $41 million, and was up 8 percent
excluding special items in the prior-year period. Total revenue
increased to $283 million.
Advertising revenues were off 1 percent, but increased on a
comparable basis as growth in digital advertising more than offset
expected print ad declines. Meredith's National Media brands grew
their reach to more than 110 million unduplicated consumers,
including more than 70 percent of U.S. Millennial women.
- Local Media Group revenues increased to $142 million. Growth in
retransmission-related revenues offset the effects of cyclical
political advertising revenues and the Super Bowl airing on Fox in
February 2017, compared to CBS in
2016. Meredith's CBS affiliates have a larger reach than its Fox
affiliates.
"Meredith continues to fire on all cylinders, generating strong
profits while increasing our consumer reach across multiple
platforms," said Meredith President
and Chief Operating Officer Tom
Harty. "This includes rapid expansion of our digital
offerings to consumers and advertisers alike; launching new
products such as The Magnolia Journal; adding
newscasts across our television station portfolio; and
growing non-advertising sources of revenue such as retransmission
fees, brand licensing and e-commerce."
OPERATING GROUP DETAIL
LOCAL MEDIA GROUP
Meredith's Local Media Group includes 17 owned and operated
television stations reaching 11 percent of households.
Meredith's portfolio is concentrated in large, fast-growing
markets, including seven stations in the nation's Top 25 markets
and 13 in the Top 50. Meredith's stations produce 700 hours
of local news and entertainment content each week. Meredith
expects to continue to grow its Local Media Group organically and
through strategic acquisitions.
Fiscal 2017 third quarter Local Media Group operating profit was
$41 million, and EBITDA was
$50 million. Revenues increased
to $142 million.
(See Tables 1-6 for supplemental
disclosures regarding non-GAAP financial measures.)
For the first nine months of fiscal 2017, Local Media Group
operating profit grew 45 percent to $169
million. Excluding special items in both periods,
operating profit grew 48 percent to $171
million and EBITDA grew 37 percent to $197 million. Revenues increased 17 percent
to $478 million, including
$58 million of political
advertising. All represent fiscal first nine month
records. Operating profit margin was 35 percent and EBITDA
margin was 41 percent.
Looking more closely at fiscal 2017 third quarter performance
compared to the prior-year quarter:
- Non-political advertising revenues were $84 million, compared to $91 million. Results reflect the Super Bowl
airing on Fox in February 2017
compared to CBS in the prior year. Meredith has a larger footprint
and reach with its CBS affiliates — which include Top 30 markets
Atlanta, Phoenix, St.
Louis and Hartford —
compared to its FOX affiliates.
- Digital advertising revenues grew nearly 10 percent, as
innovative growth strategies continue to drive stronger
performance. Meredith recently relaunched all of the mobile news,
weather and traffic apps across its station group, yielding record
app opens and unique page views in the quarter.
- Other revenues and operating expenses increased due primarily
to growth in retransmission revenues from cable and satellite
television operators, partially offset by higher programming fees
paid to affiliated networks.
Meredith delivered strong ratings performance in the third
quarter of fiscal 2017. Eight Meredith stations
ranked No. 1 or No. 2 in both morning and late news,
and five stations were No. 1 from sign-on to sign-off.
On April 21, 2017, Meredith closed
on its acquisition of the broadcast assets of Peachtree TV (WPCH)
in Atlanta from Turner
Broadcasting System, Inc. Meredith has assisted in the
day-to-day operations of Peachtree TV since 2011, including
advertising sales, marketing and promotions, and technical
operations. With WPCH, Meredith creates its fifth
owned-and-operated duopoly market, as Meredith also owns WGCL, the
CBS affiliate in Atlanta. The
acquisition will not have a material effect on Meredith's fiscal
2017 results.
NATIONAL MEDIA GROUP
Meredith's National Media Group reaches more than 110 million
unduplicated American women, including more than 70 percent of U.S.
Millennial women. Meredith is a leader in creating content across
media platforms and life stages in key consumer interest areas such
as food, home, parenting and lifestyle. It also features
robust brand licensing activities and innovative
business-to-business marketing solutions provided by Meredith
Xcelerated Marketing. Meredith expects to continue to grow
its National Media Group organically and through strategic
acquisitions.
Fiscal 2017 third quarter National Media Group operating profit
grew 19 percent to $41 million
compared to $35 million, or
$38 million excluding special items,
in the prior-year quarter. Revenues increased to $283 million. (See Tables 1-6 for supplemental disclosures
regarding non-GAAP financial measures.)
Looking more closely at National Media Group fiscal 2017 third
quarter performance compared to the prior-year quarter:
- Total advertising revenues were $125
million, off 1 percent, but up on a comparable basis, which
excludes MORE magazine. Digital advertising revenue rose 27
percent, and accounted for 28 percent of total National Media Group
advertising revenues. Growth was led by native, engagement-based
video, and programmatic advertising, along with shopper
marketing.
- Meredith's share of total magazine advertising revenues
increased to 12.1 percent from 11.0 percent, according to the most
recent data from Publishers Information Bureau. Martha Stewart Living, Allrecipes and
Traditional Home posted strong performance. The direct
response, pets and household supplies advertising categories were
growth leaders.
- Circulation revenues were flat at $96
million, but were up excluding MORE magazine.
- Other revenues increased 5 percent to $62 million, driven primarily by e-commerce
revenue, along with Meredith Xcelerated Marketing and Brand
Licensing.
- Expenses declined 2 percent, and were down 1 percent excluding
special items in the prior-year quarter, as Meredith continued to
pursue operational efficiencies.
Meredith's National Media Group continues to extend its reach to
American consumers and further diversify its revenue streams in
fiscal 2017. For example:
- Meredith's The Magnolia Journal, an extension of
Joanna and Chip Gaines' popular
Magnolia brand, will officially become a subscription magazine with
the May 2017 issue. It will be
published quarterly and distributed nationally, with an
expected ratebase of approximately one million by the fall.
Launched as a newsstand only title in October 2016, it quickly became the
strongest-selling newsstand title in Meredith's recent
history.
- Meredith's e-commerce initiatives continued to grow, driven by
new vendor relationships and capabilities, including consumer
membership programs.
For the first nine months of fiscal 2017, National Media Group
operating profit was $112 million, or
$100 million excluding special
items. Revenues were $790
million. Advertising revenues were $385 million, compared to $390 million, but were up slightly on a
comparable basis.
OTHER FINANCIAL INFORMATION
Total debt was $631 million and
the weighted average interest rate was 2.9 percent, with
$350 million effectively fixed at low
rates. Meredith's debt-to-EBITDA ratio for the trailing 12
months was 1.7 to 1 (as defined in Meredith's credit
agreements). All metrics are as of March 31, 2017.
Meredith continues to focus on its successful Total Shareholder
Return strategy. Key elements include:
- Ongoing dividend increases - Meredith raised its regular
stock dividend by 5.1 percent to $2.08 on an annualized basis on January 28, 2017. This marked the 24th
straight year of dividend increases for Meredith, which has paid an
annual dividend for 70 consecutive years.
- Strategic investments to scale the business and increase
shareholder value - Meredith has invested
approximately $1 billion to acquire
leading broadcast, digital and print properties in the last few
years.
- Share repurchases - Meredith's ongoing share repurchase
program has $70 million remaining
under current authorizations as of March 31,
2017.
All earnings-per-share figures in the text of this release are
diluted. Both basic and diluted earnings per share can be
found in the attached Condensed Consolidated Statements of
Earnings. All fiscal 2017 third quarter comparisons are
against the comparable prior-year period unless otherwise
stated.
OUTLOOK
For full-year fiscal 2017, Meredith continues to expect
record earnings per share of $4.13 to
$4.18 on a GAAP basis, and record earnings per share of
$3.85 to $3.90 excluding special
items recorded in fiscal 2017. (See
Tables 1-6 for supplemental disclosures regarding non-GAAP
financial measures.)
Looking more closely at the fourth quarter of fiscal 2017
compared to the prior-year quarter, Meredith expects:
- Total Local Media Group revenues to be up mid-single
digits.
- Total National Media Group revenues to be down slightly.
- Total Company revenues to be up slightly.
- Fiscal 2017 fourth quarter earnings per share to range from
$0.93 to $0.98.
CONFERENCE CALL WEBCAST
Meredith will host a conference call on April 27, 2017, at 8:30
a.m. EDT to discuss fiscal 2017 third quarter results.
A live webcast will be accessible to the public on the
Company's website, meredith.com, and a replay will be available for
two weeks. A transcript will be available within 48 hours of
the call at meredith.com.
RATIONALE FOR USE AND ACCESS TO NON-GAAP RESULTS
Management uses and presents GAAP and non-GAAP results to
evaluate and communicate its performance. Non-GAAP measures
should not be construed as alternatives to GAAP measures. EBITDA,
adjusted EBITDA, EBITDA margin and adjusted EBITDA margin are
common supplemental measures of performance used by investors and
financial analysts. Management believes that EBITDA provides
an additional analytical tool to clarify the Company's results from
core operations and delineate underlying trends. Management
does not use EBITDA as a measure of liquidity or funds available
for management's discretionary use because it includes certain
contractual and non-discretionary expenditures. Adjusted
EBITDA is defined as EBITDA before special items.
Results excluding special items are supplemental non-GAAP
financial measures. While these adjusted results are not a
substitute for reported results under GAAP, management believes
this information is useful as an aid in further understanding
Meredith's current performance, performance trends and financial
condition. Reconciliations of non-GAAP to GAAP measures are
attached to this press release and available at meredith.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This release contains certain forward-looking statements that
are subject to risks and uncertainties. These statements are
based on management's current knowledge and estimates of factors
affecting the Company and its operations. Statements in this
release that are forward-looking include, but are not limited to,
the Company's revenue and earnings-per-share outlook for fourth
quarter and full-year fiscal 2017.
Actual results may differ materially from those currently
anticipated. Factors that could adversely affect future
results include, but are not limited to, downturns in national
and/or local economies; a softening of the domestic advertising
market; world, national or local events that could disrupt
broadcast television; increased consolidation among major
advertisers or other events depressing the level of advertising
spending; the unexpected loss or insolvency of one or more major
clients or vendors; the integration of acquired businesses; changes
in consumer reading, purchasing and/or television viewing patterns;
increases in paper, postage, printing, syndicated programming or
other costs; changes in television network affiliation agreements;
technological developments affecting products or methods of
distribution; changes in government regulations affecting the
Company's industries; increases in interest rates; and the
consequences of acquisitions and/or dispositions. The Company
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events or
otherwise.
ABOUT MEREDITH CORPORATION
Meredith Corporation (NYSE: MDP; meredith.com) has been
committed to service journalism for 115 years. Today,
Meredith uses multiple distribution platforms — including broadcast
television, print, digital, mobile and video — to provide consumers
with content they desire and to deliver the messages of its
advertising and marketing partners.
Meredith's Local Media Group includes 17 owned and operated
television stations reaching 11 percent of U.S. households.
Meredith's portfolio is concentrated in large, fast-growing
markets, with seven stations in the nation's Top 25 — including
Atlanta, Phoenix, St.
Louis and Portland — and 13
in Top 50 markets. Meredith's stations produce 700 hours of
local news and entertainment content each week, and operate leading
local digital destinations.
Meredith's National Media Group reaches more than 110 million
unduplicated women every month, including more than 70 percent of
U.S. Millennial women. Meredith is the leader in creating and
distributing content across platforms in key consumer interest
areas such as food, home, parenting and lifestyle through
well-known brands such as Better Homes & Gardens, Allrecipes,
Parents and Shape. Meredith also features robust brand
licensing activities, including more than 3,000 SKUs of branded
products at 5,000 Walmart stores across the U.S. and at
walmart.com. Meredith Xcelerated Marketing is an award-winning,
strategic and creative agency that provides fully integrated
marketing solutions for many of the world's top brands, including
The Kraft Heinz Co., Bank of America, WebMD, Volkswagen and
NBCUniversal.
Meredith
Corporation and Subsidiaries
|
Condensed
Consolidated Statements of Earnings (Unaudited)
|
|
|
Three
Months
|
|
Nine
Months
|
Periods ended
March 31,
|
2017
|
|
2016
|
|
2017
|
|
2016
|
(In thousands
except per share data)
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
Advertising
|
$
|
210,747
|
|
|
$
|
222,402
|
|
|
$
|
703,765
|
|
|
$
|
682,643
|
|
Circulation
|
96,322
|
|
|
96,619
|
|
|
231,795
|
|
|
235,145
|
|
All other
|
118,351
|
|
|
103,750
|
|
|
332,381
|
|
|
296,062
|
|
Total
revenues
|
425,420
|
|
|
422,771
|
|
|
1,267,941
|
|
|
1,213,850
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Production,
distribution, and editorial
|
149,908
|
|
|
156,739
|
|
|
448,761
|
|
|
460,982
|
|
Selling, general, and
administrative
|
192,180
|
|
|
183,045
|
|
|
537,816
|
|
|
534,567
|
|
Depreciation and
amortization
|
13,304
|
|
|
14,613
|
|
|
40,749
|
|
|
44,679
|
|
Merger termination
fee net of merger-related costs
|
—
|
|
|
(59,664)
|
|
|
—
|
|
|
(43,541)
|
|
Total operating
expenses
|
355,392
|
|
|
294,733
|
|
|
1,027,326
|
|
|
996,687
|
|
Income from
operations
|
70,028
|
|
|
128,038
|
|
|
240,615
|
|
|
217,163
|
|
Interest expense,
net
|
(4,581)
|
|
|
(5,104)
|
|
|
(14,009)
|
|
|
(15,682)
|
|
Earnings before
income taxes
|
65,447
|
|
|
122,934
|
|
|
226,606
|
|
|
201,481
|
|
Income
taxes
|
(25,666)
|
|
|
(42,030)
|
|
|
(81,047)
|
|
|
(77,029)
|
|
Net
earnings
|
$
|
39,781
|
|
|
$
|
80,904
|
|
|
$
|
145,559
|
|
|
$
|
124,452
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.89
|
|
|
$
|
1.81
|
|
|
$
|
3.26
|
|
|
$
|
2.79
|
|
Basic average shares
outstanding
|
44,684
|
|
|
44,617
|
|
|
44,584
|
|
|
44,623
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
|
0.87
|
|
|
$
|
1.79
|
|
|
$
|
3.20
|
|
|
$
|
2.74
|
|
Diluted average
shares outstanding
|
45,556
|
|
|
45,298
|
|
|
45,424
|
|
|
45,344
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$
|
0.5200
|
|
|
$
|
0.4950
|
|
|
$
|
1.5100
|
|
|
$
|
1.4100
|
|
Meredith
Corporation and Subsidiaries
|
Segment
Information (Unaudited)
|
|
|
Three
Months
|
|
Nine
Months
|
Periods ended
March 31,
|
2017
|
|
2016
|
|
2017
|
|
2016
|
(In
thousands)
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
National
media
|
|
|
|
|
|
|
|
Advertising
|
$
|
124,584
|
|
|
$
|
125,845
|
|
|
$
|
385,039
|
|
|
$
|
390,301
|
|
Circulation
|
96,322
|
|
|
96,619
|
|
|
231,795
|
|
|
235,145
|
|
Other
revenues
|
62,445
|
|
|
59,379
|
|
|
173,155
|
|
|
181,123
|
|
Total national
media
|
283,351
|
|
|
281,843
|
|
|
789,989
|
|
|
806,569
|
|
Local
media
|
|
|
|
|
|
|
|
Non-political
advertising
|
84,481
|
|
|
90,939
|
|
|
260,623
|
|
|
283,806
|
|
Political
advertising
|
1,682
|
|
|
5,618
|
|
|
58,103
|
|
|
8,536
|
|
Other
revenues
|
55,906
|
|
|
44,371
|
|
|
159,226
|
|
|
114,939
|
|
Total local
media
|
142,069
|
|
|
140,928
|
|
|
477,952
|
|
|
407,281
|
|
Total
revenues
|
$
|
425,420
|
|
|
$
|
422,771
|
|
|
$
|
1,267,941
|
|
|
$
|
1,213,850
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
|
|
|
|
|
National
media
|
$
|
41,314
|
|
|
$
|
34,781
|
|
|
$
|
112,182
|
|
|
$
|
91,167
|
|
Local
media
|
41,164
|
|
|
46,150
|
|
|
168,601
|
|
|
115,918
|
|
Unallocated
corporate
|
(12,450)
|
|
|
47,107
|
|
|
(40,168)
|
|
|
10,078
|
|
Income from
operations
|
$
|
70,028
|
|
|
$
|
128,038
|
|
|
$
|
240,615
|
|
|
$
|
217,163
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
National
media
|
$
|
4,516
|
|
|
$
|
4,663
|
|
|
$
|
13,364
|
|
|
$
|
14,061
|
|
Local
media
|
8,439
|
|
|
9,425
|
|
|
26,294
|
|
|
29,019
|
|
Unallocated
corporate
|
349
|
|
|
525
|
|
|
1,091
|
|
|
1,599
|
|
Total depreciation
and amortization
|
$
|
13,304
|
|
|
$
|
14,613
|
|
|
$
|
40,749
|
|
|
$
|
44,679
|
|
|
|
|
|
|
|
|
|
EBITDA 1
|
|
|
|
|
|
|
|
National
media
|
$
|
45,830
|
|
|
$
|
39,444
|
|
|
$
|
125,546
|
|
|
$
|
105,228
|
|
Local
media
|
49,603
|
|
|
55,575
|
|
|
194,895
|
|
|
144,937
|
|
Unallocated
corporate
|
(12,101)
|
|
|
47,632
|
|
|
(39,077)
|
|
|
11,677
|
|
Total EBITDA
1
|
$
|
83,332
|
|
|
$
|
142,651
|
|
|
$
|
281,364
|
|
|
$
|
261,842
|
|
|
1
EBITDA is net earnings before interest, taxes, depreciation, and
amortization.
|
Meredith
Corporation and Subsidiaries
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
Assets
|
March 31,
2017
|
|
June 30,
2016
|
(In
thousands)
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
27,357
|
|
|
$
|
24,970
|
|
Accounts receivable,
net
|
275,546
|
|
|
273,927
|
|
Inventories
|
25,702
|
|
|
20,678
|
|
Current portion of
subscription acquisition costs
|
136,732
|
|
|
133,338
|
|
Current portion of
broadcast rights
|
7,366
|
|
|
4,220
|
|
Other current
assets
|
22,206
|
|
|
24,023
|
|
Total current
assets
|
494,909
|
|
|
481,156
|
|
Property, plant, and
equipment
|
537,488
|
|
|
530,052
|
|
Less accumulated
depreciation
|
(356,989)
|
|
|
(339,099)
|
|
Net property, plant,
and equipment
|
180,499
|
|
|
190,953
|
|
Subscription
acquisition costs
|
82,086
|
|
|
95,960
|
|
Broadcast
rights
|
4,320
|
|
|
4,565
|
|
Other
assets
|
56,106
|
|
|
57,151
|
|
Intangible assets,
net
|
908,287
|
|
|
913,877
|
|
Goodwill
|
895,429
|
|
|
883,129
|
|
Total
assets
|
$
|
2,621,636
|
|
|
$
|
2,626,791
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Current portion of
long-term debt
|
$
|
62,500
|
|
|
$
|
75,000
|
|
Current portion of
long-term broadcast rights payable
|
8,106
|
|
|
4,649
|
|
Accounts
payable
|
75,732
|
|
|
82,107
|
|
Accrued expenses and
other liabilities
|
119,729
|
|
|
116,777
|
|
Current portion of
unearned subscription revenues
|
198,747
|
|
|
199,359
|
|
Total current
liabilities
|
464,814
|
|
|
477,892
|
|
Long-term
debt
|
568,714
|
|
|
618,506
|
|
Long-term broadcast
rights payable
|
5,095
|
|
|
5,524
|
|
Unearned subscription
revenues
|
111,456
|
|
|
128,534
|
|
Deferred income
taxes
|
372,544
|
|
|
336,346
|
|
Other noncurrent
liabilities
|
126,315
|
|
|
170,946
|
|
Total
liabilities
|
1,648,938
|
|
|
1,737,748
|
|
Shareholders'
equity
|
|
|
|
Common
stock
|
39,439
|
|
|
39,272
|
|
Class B
stock
|
5,151
|
|
|
5,284
|
|
Additional paid-in
capital
|
54,790
|
|
|
54,282
|
|
Retained
earnings
|
895,879
|
|
|
818,706
|
|
Accumulated other
comprehensive loss
|
(22,561)
|
|
|
(28,501)
|
|
Total
shareholders' equity
|
972,698
|
|
|
889,043
|
|
Total liabilities
and shareholders' equity
|
$
|
2,621,636
|
|
|
$
|
2,626,791
|
|
Meredith
Corporation and Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
Nine months ended
March 31,
|
2017
|
|
2016
|
(In
thousands)
|
|
|
|
Net cash provided
by operating activities
|
$
|
177,988
|
|
|
$
|
173,620
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisitions of and
investments in businesses
|
(13,859)
|
|
|
(8,186)
|
|
Additions to
property, plant, and equipment
|
(16,193)
|
|
|
(13,385)
|
|
Proceeds from
disposition of assets
|
—
|
|
|
1,767
|
|
Net cash used in
investing activities
|
(30,052)
|
|
|
(19,804)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
issuance of long-term debt
|
300,000
|
|
|
167,500
|
|
Repayments of
long-term debt
|
(361,250)
|
|
|
(259,375)
|
|
Dividends
paid
|
(68,386)
|
|
|
(63,735)
|
|
Purchases of Company
stock
|
(51,128)
|
|
|
(13,390)
|
|
Proceeds from common
stock issued
|
37,925
|
|
|
8,253
|
|
Payment of
acquisition related contingent consideration
|
(8,000)
|
|
|
(800)
|
|
Excess tax benefits
from share-based payments
|
6,755
|
|
|
2,303
|
|
Other
|
(1,465)
|
|
|
(156)
|
|
Net cash used in
financing activities
|
(145,549)
|
|
|
(159,400)
|
|
Net increase
(decrease) in cash and cash equivalents
|
2,387
|
|
|
(5,584)
|
|
Cash and cash
equivalents at beginning of period
|
24,970
|
|
|
22,833
|
|
Cash and cash
equivalents at end of period
|
$
|
27,357
|
|
|
$
|
17,249
|
|
Table
1
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Special
Items - The following tables show results of operations
excluding special items and as reported with the difference being
the special items. Results of operations excluding special items
are non-GAAP measures. Management's rationale for presenting
non-GAAP measures is included in the text of this earnings
release.
|
|
Note that there were
no special items in the three months ended March 31,
2017.
|
|
Nine months ended
March 31, 2017
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In thousands
except per share data)
|
|
|
|
|
Operating
profit
|
$
|
112,182
|
|
$
|
168,601
|
|
$
|
(40,168)
|
|
$
|
240,615
|
|
Special
items
|
|
|
|
|
Write-down of
contingent consideration payable
|
(19,580)
|
|
—
|
|
—
|
|
(19,580)
|
|
Severance and related
benefit costs
|
6,695
|
|
445
|
|
438
|
|
7,578
|
|
Write-down of
impaired assets
|
—
|
|
1,678
|
|
—
|
|
1,678
|
|
Other
|
397
|
|
—
|
|
—
|
|
397
|
|
Total special
items
|
(12,488)
|
|
2,123
|
|
438
|
|
(9,927)
|
|
Operating profit
excluding special items (non-GAAP)
|
$
|
99,694
|
|
$
|
170,724
|
|
$
|
(39,730)
|
|
$
|
230,688
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
|
3.20
|
|
Per share impact of
special items
|
|
Per share impact of
the resolution of certain federal and state tax matters
|
(0.15)
|
|
Per share impact of
special items of $9,927 ($6,105 after tax)
|
(0.13)
|
|
Total per share
impact of special items
|
(0.28)
|
|
Earnings per share
excluding special items (non-GAAP)
|
$
|
2.92
|
|
Table
2
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Special
Items - The following tables show results of operations
excluding special items and as reported with the difference being
the special items. Results of operations excluding special items
are non-GAAP measures. Management's rationale for presenting
non-GAAP measures is included in the text of this earnings
release.
|
|
Three months ended
March 31, 2016
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In thousands
except per share data)
|
|
|
|
|
Operating
profit
|
$
|
34,781
|
|
$
|
46,150
|
|
$
|
47,107
|
|
$
|
128,038
|
|
Special
items
|
|
|
|
|
Merger termination
fee net of merger-related costs
|
—
|
|
—
|
|
(59,664)
|
|
(59,664)
|
|
Severance and related
benefit costs
|
3,021
|
|
—
|
|
—
|
|
3,021
|
|
Write-down of
impaired assets
|
535
|
|
—
|
|
—
|
|
535
|
|
Other
|
66
|
|
—
|
|
—
|
|
66
|
|
Total special
items
|
3,622
|
|
—
|
|
(59,664)
|
|
(56,042)
|
|
Operating profit
excluding special items (non-GAAP)
|
$
|
38,403
|
|
$
|
46,150
|
|
$
|
(12,557)
|
|
$
|
71,996
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
|
1.79
|
|
Per share impact of
special items
|
|
Per share impact of
current tax deductibility of prior quarters' merger
costs
|
(0.10)
|
|
Per share impact of
special items of $56,042 ($34,466 after tax)
|
(0.77)
|
|
Total per share
impact of special items
|
(0.87)
|
|
Earnings per share
excluding special items (non-GAAP)
|
$
|
0.92
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
March 31, 2016
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In thousands
except per share data)
|
|
|
|
|
Operating
profit
|
$
|
91,167
|
|
$
|
115,918
|
|
$
|
10,078
|
|
$
|
217,163
|
|
Special
items
|
|
|
|
|
Merger termination fee net of merger-related
costs
|
—
|
|
—
|
|
(43,541)
|
|
(43,541)
|
|
Severance and related
benefit costs
|
7,269
|
|
132
|
|
—
|
|
7,401
|
|
Reversal of
previously accrued restructuring costs
|
(514)
|
|
(1,070)
|
|
—
|
|
(1,584)
|
|
Write-down of
impaired assets
|
535
|
|
—
|
|
—
|
|
535
|
|
Other
|
66
|
|
—
|
|
—
|
|
66
|
|
Total special
items
|
7,356
|
|
(938)
|
|
(43,541)
|
|
(37,123)
|
|
Operating profit
excluding special items (non-GAAP)
|
$
|
98,523
|
|
$
|
114,980
|
|
$
|
(33,463)
|
|
$
|
180,040
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
|
2.74
|
|
Per share impact of
special items
|
|
Per share impact of
current tax deductibility of prior quarters' merger
costs
|
(0.10)
|
|
Per share impact of
special items of $37,123 ($18,133 after tax)
|
(0.40)
|
|
Total per share
impact of special items
|
(0.50)
|
|
Earnings per share
excluding special items (non-GAAP)
|
$
|
2.24
|
|
Table
3
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
EBITDA
|
Consolidated EBITDA,
which is reconciled to net earnings in the following tables, is
defined as net earnings before interest, taxes, depreciation, and
amortization.
|
Segment EBITDA is a
measure of segment earnings before depreciation and
amortization.
|
Segment EBITDA margin
is defined as segment EBITDA divided by segment
revenues.
|
|
Adjusted
EBITDA
|
Consolidated adjusted
EBITDA, which is reconciled to net earnings in the following
tables, is defined as net earnings before interest, taxes,
depreciation, amortization, and special items.
|
Segment adjusted
EBITDA is a measure of segment earnings before depreciation,
amortization, and special items.
|
Segment adjusted
EBITDA margin is defined as segment adjusted EBITDA divided by
segment revenues.
|
|
Three months ended
March 31, 2017
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
thousands)
|
|
|
|
|
Revenues
|
$
|
283,351
|
|
$
|
142,069
|
|
$
|
—
|
|
$
|
425,420
|
|
|
|
|
|
|
Net
earnings
|
$
|
39,781
|
|
Net interest
expense
|
4,581
|
|
Income
taxes
|
25,666
|
|
Operating
profit
|
$
|
41,314
|
|
$
|
41,164
|
|
$
|
(12,450)
|
|
70,028
|
|
Depreciation and
amortization
|
4,516
|
|
8,439
|
|
349
|
|
13,304
|
|
EBITDA
|
$
|
45,830
|
|
$
|
49,603
|
|
$
|
(12,101)
|
|
$
|
83,332
|
|
|
|
|
|
|
Segment EBITDA
margin
|
16.2
|
%
|
34.9
|
%
|
|
|
Table 3
continued
|
|
Nine months ended
March 31, 2017
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
thousands)
|
|
|
|
|
Revenues
|
$
|
789,989
|
|
$
|
477,952
|
|
$
|
—
|
|
$
|
1,267,941
|
|
|
|
|
|
|
Net
earnings
|
$
|
145,559
|
|
Net interest
expense
|
14,009
|
|
Income
taxes
|
81,047
|
|
Operating
profit
|
$
|
112,182
|
|
$
|
168,601
|
|
$
|
(40,168)
|
|
240,615
|
|
Depreciation and
amortization
|
13,364
|
|
26,294
|
|
1,091
|
|
40,749
|
|
EBITDA
|
125,546
|
|
194,895
|
|
(39,077)
|
|
281,364
|
|
Special
items
|
|
|
|
|
Write-down of
contingent consideration payable
|
(19,580)
|
|
—
|
|
—
|
|
(19,580)
|
|
Severance and related
benefit costs
|
6,695
|
|
445
|
|
438
|
|
7,578
|
|
Write-down of
impaired assets
|
—
|
|
1,678
|
|
—
|
|
1,678
|
|
Other
|
397
|
|
—
|
|
—
|
|
397
|
|
Total special
items
|
(12,488)
|
|
2,123
|
|
438
|
|
(9,927)
|
|
Adjusted
EBITDA
|
$
|
113,058
|
|
$
|
197,018
|
|
$
|
(38,639)
|
|
$
|
271,437
|
|
|
|
|
|
|
Segment EBITDA
margin
|
15.9
|
%
|
40.8
|
%
|
|
|
Segment adjusted
EBITDA margin
|
14.3
|
%
|
41.2
|
%
|
|
|
Table
4
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
EBITDA
|
Consolidated EBITDA,
which is reconciled to net earnings in the following tables, is
defined as net earnings before interest, taxes, depreciation, and
amortization.
|
Segment EBITDA is a
measure of segment earnings before depreciation and
amortization.
|
Segment EBITDA margin
is defined as segment EBITDA divided by segment
revenues.
|
|
Adjusted
EBITDA
|
Consolidated adjusted
EBITDA, which is reconciled to net earnings in the following
tables, is defined as net earnings before interest, taxes,
depreciation, amortization, and special items.
|
Segment adjusted
EBITDA is a measure of segment earnings before depreciation,
amortization, and special items.
|
Segment adjusted
EBITDA margin is defined as segment adjusted EBITDA divided by
segment revenues.
|
|
Three months ended
March 31, 2016
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
thousands)
|
|
|
|
|
Revenues
|
$
|
281,843
|
|
$
|
140,928
|
|
$
|
—
|
|
$
|
422,771
|
|
|
|
|
|
|
Net
earnings
|
$
|
80,904
|
|
Net interest
expense
|
5,104
|
|
Income
taxes
|
42,030
|
|
Operating
profit
|
$
|
34,781
|
|
$
|
46,150
|
|
$
|
47,107
|
|
128,038
|
|
Depreciation and
amortization
|
4,663
|
|
9,425
|
|
525
|
|
14,613
|
|
EBITDA
|
39,444
|
|
55,575
|
|
47,632
|
|
142,651
|
|
Special
items
|
|
|
|
|
Merger termination
fee net of merger-related costs
|
—
|
|
—
|
|
(59,664)
|
|
(59,664)
|
|
Severance and related
benefit costs
|
3,021
|
|
—
|
|
—
|
|
3,021
|
|
Write-down of
impaired assets
|
535
|
|
—
|
|
—
|
|
535
|
|
Other
|
66
|
|
—
|
|
—
|
|
66
|
|
Total special
items
|
3,622
|
|
—
|
|
(59,664)
|
|
(56,042)
|
|
Adjusted
EBITDA
|
$
|
43,066
|
|
$
|
55,575
|
|
$
|
(12,032)
|
|
$
|
86,609
|
|
|
|
Segment EBITDA
margin
|
14.0
|
%
|
39.4
|
%
|
|
|
Segment adjusted
EBITDA margin
|
15.3
|
%
|
39.4
|
%
|
|
|
Table 4
continued
|
|
Nine months ended
March 31, 2016
|
National
Media
|
Local
Media
|
Unallocated
Corporate
|
Total
|
(In
thousands)
|
|
|
|
|
Revenues
|
$
|
806,569
|
|
$
|
407,281
|
|
$
|
—
|
|
$
|
1,213,850
|
|
|
|
|
|
|
Net
earnings
|
$
|
124,452
|
|
Net interest
expense
|
15,682
|
|
Income
taxes
|
77,029
|
|
Operating
profit
|
$
|
91,167
|
|
$
|
115,918
|
|
$
|
10,078
|
|
217,163
|
|
Depreciation and
amortization
|
14,061
|
|
29,019
|
|
1,599
|
|
44,679
|
|
EBITDA
|
105,228
|
|
144,937
|
|
11,677
|
|
261,842
|
|
Special
items
|
|
|
|
|
Merger termination
fee net of merger-related costs
|
—
|
|
—
|
|
(43,541)
|
|
(43,541)
|
|
Severance and related
benefit costs
|
7,269
|
|
132
|
|
—
|
|
7,401
|
|
Reversal of
previously accrued restructuring costs
|
(514)
|
|
(1,070)
|
|
—
|
|
(1,584)
|
|
Write-down of
impaired assets
|
535
|
|
—
|
|
—
|
|
535
|
|
Other
|
66
|
|
—
|
|
—
|
|
66
|
|
Total special
items
|
7,356
|
|
(938)
|
|
(43,541)
|
|
(37,123)
|
|
Adjusted
EBITDA
|
$
|
112,584
|
|
$
|
143,999
|
|
$
|
(31,864)
|
|
$
|
224,719
|
|
|
|
|
|
|
Segment EBITDA
margin
|
13.0
|
%
|
35.6
|
%
|
|
|
Segment adjusted
EBITDA margin
|
14.0
|
%
|
35.4
|
%
|
|
|
Table
5
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Special
Items - The following table shows national media operating
expenses excluding special items and as reported with the
difference being the special items. National media operating
expenses excluding special items is a non-GAAP measure.
Management's rationale for presenting non-GAAP measures is included
in the text of this earnings release.
|
|
Three months ended
March 31,
|
2017
|
|
2016
|
|
Change
|
(In
thousands)
|
|
|
|
|
|
National media
operating expenses
|
$
|
242,037
|
|
|
$
|
247,062
|
|
|
(2)%
|
|
Special
items
|
|
|
|
|
|
Severance and related
benefit costs
|
—
|
|
|
(3,021)
|
|
|
|
Reversal of
previously accrued restructuring costs
|
—
|
|
|
(535)
|
|
|
|
Other
|
—
|
|
|
(66)
|
|
|
|
Total special
items
|
—
|
|
|
(3,622)
|
|
|
|
Operating expenses
excluding special items (non-GAAP)
|
$
|
242,037
|
|
|
$
|
243,440
|
|
|
(1)%
|
|
Table
6
|
Meredith
Corporation and Subsidiaries
|
Supplemental
Disclosures Regarding Non-GAAP Financial Measures
|
|
Special
Items - The following table shows projected diluted
earnings per share excluding special items and as projected with
the difference being the special items. Projected diluted earnings
per share excluding special items is a non-GAAP measure.
Management's rationale for presenting non-GAAP measures is included
in the text of this earnings release.
|
|
|
Year ended June
30, 2017
|
Low
|
|
High
|
Projected diluted
earnings per share
|
$
|
4.13
|
|
|
$
|
4.18
|
|
Total per share
impact of special items (see Table 1)
|
(0.28)
|
|
|
(0.28)
|
|
Projected diluted
earnings per share excluding special items (non-GAAP)
|
$
|
3.85
|
|
|
$
|
3.90
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/meredith-reports-fiscal-2017-third-quarter-and-nine-month-results-300446784.html
SOURCE Meredith Corporation