Meredith Corporation
Apr 27, 2017

Meredith Reports Fiscal 2017 Third Quarter And Nine Month Results

Record Digital Advertising Revenue Across Company Drives Third Quarter Performance
Meredith Expects Fiscal 2017 Earnings Per Share to be Highest in Company History

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

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