EX-99 2 pulitzerandleelegacyfinanc.htm EXHIBIT 99 Exhibit


Exhibit 99.1 - Supplemental Financial Information – Third fiscal quarter ended June 26, 2016.

201 N. Harrison St.
Davenport, IA 52801
www.lee.net






13 Weeks Ended (unaudited)
 
 
 
 
 
 
 
 
June 26, 2016
 
June 28, 2015
(in thousands)
Consolidated
Lee Legacy
Pulitzer Inc.
 
Consolidated
Lee Legacy
Pulitzer Inc.
Operating revenue:
 
 
 
 
 
 
 
Advertising and marketing services
92,294

63,858

28,436

 
100,934

70,417

30,517

Subscription
47,160

32,330

14,830

 
47,394

31,876

15,518

Other
11,492

9,553

1,939

 
10,350

9,079

1,271

Total operating revenue
150,946

105,741

45,205

 
158,678

111,372

47,306

Operating expenses:
 
 
 
 
 
 
 
Compensation
57,218

43,246

13,972

 
58,442

43,572

14,870

Newsprint and ink
6,604

4,234

2,370

 
7,421

5,387

2,034

Other cash costs
53,356

30,454

22,902

 
56,538

33,409

23,129

Depreciation and amortization
10,868

7,707

3,161

 
11,395

7,839

3,556

Loss (gain) on sale of assets, net
(354
)
18

(372
)
 
686

(73
)
759

Workforce adjustments
424

396

28

 
1,056

440

616

Total operating expenses
128,116

86,055

42,061

 
135,538

90,574

44,964

Equity in earnings of MNI and TNI
1,825

850

975

 
1,705

746

959

Operating income
24,655

20,536

4,119

 
24,845

21,544

3,301

Non-operating income (expense), net
(17,251
)
(18,055
)
804

 
(20,569
)
(20,698
)
129

Income tax expense
3,037

1,249

1,788

 
2,141

895

1,246

Net income
4,367

1,232

3,135

 
2,135

(49
)
2,184


Adjusted EBITDA is a non-GAAP financial measure. Below is a reconciliation of adjusted EBITDA to net income, the most directly comparable measure under GAAP:
Net Income
4,367

1,232

3,135

 
2,135

(49
)
2,184

Adjusted to exclude
 
 
 
 
 
 
 
Non-operating expenses, net
17,251

18,055

(804
)
 
20,569

20,698

(129
)
Income tax expense
3,037

1,249

1,788

 
2,141

895

1,246

Equity in earnings of TNI and MNI
(1,825
)
(850
)
(975
)
 
(1,705
)
(746
)
(959
)
Depreciation and amortization
10,868

7,707

3,161

 
11,395

7,839

3,556

Loss (gain) on sale of assets, net
(354
)
18

(372
)
 
686

(73
)
759

Workforce adjustments
424

396

28

 
1,056

440

616

Stock compensation
550

550

—

 
562

562

—

Add:
 
 
 
 
 
 
 
Ownership share of TNI and MNI EBITDA (50%)
2,625

1,545

1,080

 
2,464

1,401

1,063

Adjusted EBITDA
36,943

29,902

7,041

 
39,303

30,967

8,336

 
 
 
 
 
 
 
 
Supplemental cash flow information
 
 
 
 
 
Distributions from MNI and TNI
3,251

1,750

1,501

 
2,041

1,000

1,041

Capital expenditures
(2,521
)
(2,267
)
(254
)
 
(2,011
)
(1,556
)
(455
)
Pension contributions
(826
)
—

(826
)
 
(1,130
)
—

(1,130
)
Cash income tax payments
(4
)
(4
)
—

 
(1
)
(1
)
—

Interest income
141

141

—

 
79

79

—

Interest to be settled in cash
(15,783
)
(11,724
)
(4,059
)
 
(18,121
)
(18,000
)
(121
)
Debt financing and administrative costs
(376
)
(376
)
—

 
(395
)
(296
)
(99
)




39 Weeks Ended (unaudited)
 
 
 
 
 
 
 
 
June 26, 2016
 
June 28, 2015
(in thousands)
Consolidated
Lee Legacy
Pulitzer Inc.
 
Consolidated
Lee Legacy
Pulitzer Inc.
Operating revenue:
 
 
 
 
 
 
 
Advertising and marketing services
286,662

198,543

88,119

 
314,780

220,194

94,586

Subscription
144,249

99,169

45,080

 
145,904

97,935

47,969

Other
35,275

29,683

5,592

 
31,760

27,831

3,929

Total operating revenue
466,186

327,395

138,791

 
492,444

345,960

146,484

Operating expenses:
 
 
 
 
 
 
 
Compensation
174,733

132,848

41,885

 
181,615

135,553

46,062

Newsprint and ink
19,343

13,941

5,402

 
23,928

17,637

6,291

Other cash costs
166,332

95,491

70,841

 
173,641

101,525

72,116

Depreciation and amortization
32,752

23,015

9,737

 
34,457

23,674

10,783

Loss (gain) on sale of assets, net
(1,763
)
151

(1,914
)
 
434

(148
)
582

Workforce adjustments
1,616

1,510

106

 
1,908

755

1,153

Total operating expenses
393,013

266,956

126,057

 
415,983

278,996

136,987

Equity in earnings of MNI and TNI
6,633

2,678

3,955

 
6,114

2,301

3,813

Operating income
79,806

63,117

16,689

 
82,575

69,265

13,310

Non-operating income (expense), net
(21,877
)
(24,153
)
2,276

 
(59,038
)
(59,240
)
202

Income tax expense
22,571

15,683

6,888

 
9,353

4,445

4,908

Net income
35,358

23,281

12,077

 
14,184

5,580

8,604


Adjusted EBITDA is a non-GAAP financial measure. Below is a reconciliation of adjusted EBITDA to net income, the most directly comparable measure under GAAP:
Net Income
35,358

23,281

12,077

 
14,184

5,580

8,604

Adjusted to exclude
 
 
 
 
 
 
 
Non-operating expenses, net
21,877

24,153

(2,276
)
 
59,038

59,240

(202
)
Income tax expense
22,571

15,683

6,888

 
9,353

4,445

4,908

Equity in earnings of TNI and MNI
(6,633
)
(2,678
)
(3,955
)
 
(6,114
)
(2,301
)
(3,813
)
Depreciation and amortization
32,752

26,176

6,576

 
34,457

23,674

10,783

Loss (gain) on sale of assets, net
(1,763
)
151

(1,914
)
 
434

(148
)
582

Workforce adjustments
1,616

1,510

106

 
1,908

755

1,153

Stock compensation
1,714

1,714

—

 
1,645

1,645

—

Add:
 
 
 
 
 
 
 
Ownership share of TNI and MNI EBITDA (50%)
9,145

4,875

4,270

 
8,432

4,306

4,126

Adjusted EBITDA
116,637

94,865

21,772

 
123,337

97,196

26,141

 
 
 
 
 
 
 
 
Supplemental cash flow information:
 
 
 
 
 
Distributions from MNI and TNI
10,980

5,750

5,230

 
8,113

4,000

4,113

Capital expenditures
(5,792
)
(5,113
)
(679
)
 
(7,686
)
(5,074
)
(2,612
)
Pension contributions
(2,314
)
—

(2,314
)
 
(1,565
)
—

(1,565
)
Cash income tax refunds (payments)
(275
)
(275
)
—

 
63

152

(89
)
Interest income
326

326

—

 
258

258

—

Interest to be settled in cash
(49,206
)
(36,759
)
(12,447
)
 
(55,314
)
(54,415
)
(899
)
Debt financing and administrative costs
(420
)
(376
)
(44
)
 
(477
)
(378
)
(99
)