LEE ENTERPRISES, Inc - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - May 4, 2017

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Exhibit 99.1 - Supplemental Financial Information – Second fiscal quarter ended March 26, 2017.

leelogo2013a01a01a03a02a03.jpg
201 N. Harrison St.
Davenport, IA 52801
www.lee.net





13 Weeks Ended (unaudited)
 
 
 
 
 
 
 
 
March 26, 2017
 
March 27, 2016
(in thousands)
Consolidated
Lee Legacy
Pulitzer Inc.
 
Consolidated
Lee Legacy
Pulitzer Inc.
Operating revenue:
 
 
 
 
 
 
 
Advertising and marketing services
77,533

54,601

22,932

 
88,731

62,247

26,484

Subscription
45,009

31,349

13,660

 
46,658

32,300

14,358

Other
10,845

8,981

1,864

 
11,446

9,723

1,723

Total operating revenue
133,387

94,931

38,456

 
146,835

104,270

42,565

Operating expenses:
 
 
 
 
 
 
 
Compensation
52,414

40,138

12,276

 
58,850

44,754

14,096

Newsprint and ink
6,200

4,279

1,921

 
6,053

4,559

1,494

Other cash costs
48,756

28,232

20,524

 
54,107

30,970

23,137

Depreciation and amortization
10,318

7,391

2,927

 
10,941

7,673

3,268

Loss (gain) on sale of assets, net
(3,783
)
(3,714
)
(69
)
 
(438
)
96

(534
)
Workforce adjustments
2,405

1,560

845

 
588

571

17

Total operating expenses
116,310

77,886

38,424

 
130,101

88,623

41,478

Equity in earnings of MNI and TNI
1,729

465

1,264

 
2,009

645

1,364

Operating income
18,806

17,510

1,296

 
18,743

16,292

2,451

Non-operating income (expense), net
(11,285
)
(12,152
)
867

 
13,129

12,358

771

Income tax expense
1,144

359

785

 
12,389

11,218

1,171

Net income
6,377

4,999

1,378

 
19,483

17,432

2,051


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
6,377

4,999

1,378

 
19,483

17,432

2,051

Adjusted to exclude
 
 
 
 
 
 
 
Non-operating expenses, net
11,285

12,152

(867
)
 
(13,129
)
(12,358
)
(771
)
Income tax expense
1,144

359

785

 
12,389

11,218

1,171

Equity in earnings of TNI and MNI
(1,729
)
(465
)
(1,264
)
 
(2,009
)
(645
)
(1,364
)
Depreciation and amortization
10,318

7,391

2,927

 
10,941

7,673

3,268

Loss (gain) on sale of assets, net
(3,783
)
(3,714
)
(69
)
 
(438
)
96

(534
)
Workforce adjustments
2,405

1,560

845

 
588

571

17

Stock compensation
559

559

—

 
594

594

—

Add:
 
 
 
 
 
 
 
Ownership share of TNI and MNI EBITDA (50%)
2,220

852

1,368

 
2,711

1,242

1,469

Adjusted EBITDA
28,796

23,693

5,103

 
31,130

25,823

5,307

 
 
 
 
 
 
 
 
Supplemental cash flow information
 
 
 
 
 
Distributions from MNI and TNI
2,437

1,000

1,437

 
4,501

2,250

2,251

Capital expenditures
(989
)
(953
)
(36
)
 
(1,801
)
(1,644
)
(157
)
Pension contributions
—

—

—

 
(744
)
—

(744
)
Cash income tax refunds (payments)
(269
)
(269
)
—

 
(282
)
(282
)
—

Interest income
109

109

—

 
110

110

—

Interest to be settled in cash
(14,637
)
(10,747
)
(3,890
)
 
(16,281
)
(12,151
)
(4,130
)





26 Weeks Ended (unaudited)
 
 
 
 
 
 
 
 
March 26, 2017
 
March 27, 2016
(in thousands)
Consolidated
Lee Legacy
Pulitzer Inc.
 
Consolidated
Lee Legacy
Pulitzer Inc.
Operating revenue:
 
 
 
 
 
 
 
Advertising and marketing services
170,568

118,706

51,862

 
194,368

134,685

59,683

Subscription
93,896

65,366

28,530

 
97,089

66,839

30,250

Other
22,912

18,970

3,942

 
23,783

20,130

3,653

Total operating revenue
287,376

203,042

84,334

 
315,240

221,654

93,586

Operating expenses:
 
 
 
 
 
 
 
Compensation
107,470

82,191

25,279

 
117,514

89,601

27,913

Newsprint and ink
13,093

9,181

3,912

 
12,738

9,706

3,032

Other cash costs
101,533

59,456

42,077

 
112,977

65,038

47,939

Depreciation and amortization
20,698

14,801

5,897

 
21,884

15,308

6,576

Loss (gain) on sale of assets, net
(3,716
)
(3,715
)
(1
)
 
(1,409
)
133

(1,542
)
Workforce adjustments
2,470

1,622

848

 
1,192

1,114

78

Total operating expenses
241,548

163,536

78,012

 
264,896

180,900

83,996

Equity in earnings of MNI and TNI
4,417

1,600

2,817

 
4,808

1,828

2,980

Operating income
50,245

41,106

9,139

 
55,152

42,582

12,570

Non-operating income (expense), net
(24,017
)
(25,727
)
1,710

 
(4,626
)
(6,098
)
1,472

Income tax expense
7,410

3,470

3,940

 
19,535

14,435

5,100

Net income
18,818

11,909

6,909

 
30,991

22,049

8,942


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
18,818

11,909

6,909

 
30,991

22,049

8,942

Adjusted to exclude
 
 
 
 
 
 
 
Non-operating expenses, net
24,017

25,727

(1,710
)
 
4,626

6,098

(1,472
)
Income tax expense
7,410

3,470

3,940

 
19,535

14,435

5,100

Equity in earnings of TNI and MNI
(4,417
)
(1,600
)
(2,817
)
 
(4,808
)
(1,828
)
(2,980
)
Depreciation and amortization
20,698

14,801

5,897

 
21,884

15,308

6,576

Loss (gain) on sale of assets, net
(3,716
)
(3,715
)
(1
)
 
(1,409
)
133

(1,542
)
Workforce adjustments
2,470

1,622

848

 
1,192

1,114

78

Stock compensation
1,083

1,083

—

 
1,164

1,164

—

Add:
 
 
 
 
 
 
 
Ownership share of TNI and MNI EBITDA (50%)
5,696

2,670

3,026

 
6,519

3,330

3,189

Adjusted EBITDA
72,059

55,967

16,092

 
79,694

61,803

17,891

 
 
 
 
 
 
 
 
Supplemental cash flow information:
 
 
 
 
 
Distributions from MNI and TNI
4,670

2,250

2,420

 
7,729

4,000

3,729

Capital expenditures
(2,079
)
(1,879
)
(200
)
 
(3,271
)
(2,846
)
(425
)
Pension contributions
—

—

—

 
(1,488
)
—

(1,488
)
Cash income tax refunds (payments)
(639
)
(635
)
(4
)
 
(271
)
(271
)
—

Interest income
184

184

—

 
185

185

—

Interest to be settled in cash
(29,588
)
(21,797
)
(7,791
)
 
(33,423
)
(25,035
)
(8,388
)
Debt financing and administrative costs
—

—

—

 
(44
)
—

(44
)


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