Digital content revenues increased 66% year-over-year
Exceeded previous guidance for First Quarter Revenue and Adjusted EBITDA
First Quarter 2021 Highlights:
- Exceeded previously provided guidance for first quarter revenue & Adjusted EBITDA
- Net income from continuing operations increased to
$6.1 million , compared to a net loss of$49.0 million in the first quarter of 2020 - Adjusted EBITDA of
$25.5 million , an increase of$15.9 million compared to the first quarter of 2020 - Total revenues of
$173.6 million , down from$206.4 million in the first quarter of 2020 but reflecting continued improvement in the quarterly sequential trends - Digital-only subscriber revenue increased 66% or
$5.8 million and digital subscribers grew to 441,000 at the end of the first quarter 2021, compared to 370,000 at the end of the first quarter 2020
“We remain cautious about the continuing impact and duration of the pandemic and we continue our efforts to reduce our cost structure, particularly our fixed costs, including real estate and other infrastructure. We believe that a continuing focus on cost management, coupled with substantial growth in our digital subscription revenue, has positioned the company to succeed in a post-pandemic future. We also believe that the digital investments we have made and continue to make in our digital infrastructure, our data and analytics and digital subscriber teams as well as thoughtful newsroom investments have positioned us for a sustainable and optimistic future. Additionally, as previously disclosed, our investment in BestReviews generated a significant
First Quarter 2021 Results
First quarter 2021 total revenues were
First quarter total operating expenses, including depreciation and amortization, were
Net income from continuing operations was $6.1 million in the first quarter of 2021, an increase of
Adjusted EBITDA was
For the quarter ended
2021 Outlook
For the second quarter of 2021, the company expects total revenues between
Pending Acquisition by
As announced on
Conference Call Details
In light of the pending transaction, the company will not be holding a conference call.
Non-GAAP Financial Information
Adjusted EBITDA, Adjusted Operating Expenses, Adjusted Income (Loss) from continuing operations attributable to Tribune common stockholders, and Adjusted Diluted EPS are not measures presented in accordance with
Cautionary Statements Regarding Forward-looking Statements
This 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, without limitation, the acquisition of the company by
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
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:
312.222.2102
abullis@tribpub.com
Media Contact:
847.867.6294
mreinsdorf@tribpub.com
Source:
Exhibits:
Consolidated Statements of Income (Loss)
Consolidated Condensed Balance Sheets
Non-GAAP Reconciliations - Income (Loss) from Operations to Adjusted EBITDA
Non-GAAP Reconciliations - Total Operating Expenses to Adjusted Operating Expenses
Non-GAAP Reconciliations - Net income (loss) attributable to Tribune common stockholders to Adjusted Income (Loss) from continuing operations attributable to Tribune common stockholders and Adjusted Diluted EPS
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (In thousands, except per share data) (Unaudited) | ||||||||
Preliminary | ||||||||
Three months ended | ||||||||
Operating revenues | $ | 173,554 | $ | 206,441 | ||||
Compensation | 61,759 | 96,268 | ||||||
Newsprint and ink | 6,624 | 10,720 | ||||||
Outside services | 63,200 | 74,585 | ||||||
Other operating expenses | 28,284 | 30,154 | ||||||
Depreciation and amortization | 5,242 | 8,813 | ||||||
Impairment | — | 51,049 | ||||||
Total operating expenses | 165,109 | 271,589 | ||||||
Income (loss) from operations | 8,445 | (65,148 | ) | |||||
Interest expense, net | (144 | ) | (30 | ) | ||||
Other income, net | 403 | 387 | ||||||
Income (loss) from continuing operations before income taxes | 8,704 | (64,791 | ) | |||||
Income tax expense (benefit) | 2,582 | (15,811 | ) | |||||
Net income (loss) from continuing operations | 6,122 | (48,980 | ) | |||||
Plus: Income from discontinued operations, net of taxes | 20,500 | 4,974 | ||||||
Net income (loss) | 26,622 | (44,006 | ) | |||||
Less: Income (loss) attributable to noncontrolling interest ("NCI") | (413 | ) | 1,330 | |||||
Net income (loss) attributable to Tribune common stockholders | $ | 27,035 | $ | (45,336 | ) | |||
Basic net income (loss) attributable to Tribune per common share: | ||||||||
Income (loss) from continuing operations | $ | 0.17 | $ | (1.35 | ) | |||
Income from discontinued operations | $ | 1.27 | $ | 0.09 | ||||
Basic net income (loss) attributable to Tribune per common share | $ | 1.44 | $ | (1.26 | ) | |||
Diluted net income (loss) attributable to Tribune per common share: | ||||||||
Income (loss) from continuing operations | $ | 0.17 | $ | (1.35 | ) | |||
Income from discontinued operations | $ | 1.26 | $ | 0.09 | ||||
Diluted net income (loss) attributable to Tribune per common share | $ | 1.43 | $ | (1.26 | ) | |||
Weighted average shares outstanding: | ||||||||
Basic | 36,687 | 36,294 | ||||||
Diluted | 37,023 | 36,294 |
CONSOLIDATED CONDENSED BALANCE SHEETS (In thousands) (Unaudited) | ||||||||
Preliminary | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash | $ | 222,409 | $ | 98,862 | ||||
Accounts receivable, net | 59,548 | 73,866 | ||||||
Inventories | 5,331 | 4,055 | ||||||
Prepaid expenses and other current assets | 16,107 | 18,344 | ||||||
Current assets related to discontinued operations | 234 | 111,239 | ||||||
Total current assets | 303,629 | 306,366 | ||||||
Property, plant and equipment, net | 44,920 | 48,325 | ||||||
Other assets | ||||||||
28,146 | 28,146 | |||||||
Intangible assets, net | 49,079 | 50,148 | ||||||
Software, net | 16,471 | 17,503 | ||||||
Lease right-of-use asset | 32,992 | 36,705 | ||||||
Restricted cash | 28,270 | 29,925 | ||||||
Equity investments | 11,354 | 11,354 | ||||||
Other long-term assets | 19,366 | 19,682 | ||||||
Total other assets | 185,678 | 193,463 | ||||||
Total assets | $ | 534,227 | $ | 548,154 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 34,018 | $ | 28,022 | ||||
Employee compensation and benefits | 23,906 | 33,495 | ||||||
Deferred revenue | 33,688 | 34,620 | ||||||
Current portion of long-term lease liability | 24,645 | 23,914 | ||||||
Current portion of long-term debt | — | — | ||||||
Other current liabilities | 25,621 | 23,329 | ||||||
Current liabilities associated with discontinued operations | 7,930 | 4,759 | ||||||
Total current liabilities | 149,808 | 148,139 | ||||||
Non-current liabilities | ||||||||
Long term lease liability | 44,786 | 49,182 | ||||||
Workers’ compensation, general liability and auto insurance payable | 19,921 | 20,120 | ||||||
Pension and postretirement benefits payable | 15,926 | 16,803 | ||||||
Deferred revenue | 1,786 | 1,921 | ||||||
Long-term debt | — | — | ||||||
Other obligations | 6,443 | 10,587 | ||||||
Total non-current liabilities | 88,862 | 98,613 | ||||||
Stockholders’ equity | ||||||||
Total stockholders’ equity | 295,557 | 301,402 | ||||||
Total liabilities and stockholders’ equity | 534,227 | 548,154 | ||||||
NON-GAAP RECONCILIATIONS (In thousands) (Unaudited) | |||||||||||
Preliminary | |||||||||||
Reconciliation of Income (Loss) from Operations to Adjusted EBITDA: | |||||||||||
Three months ended | |||||||||||
% Change | |||||||||||
Net income (loss) from continuing operations | $ | 6,122 | $ | (48,980 | ) | * | |||||
Income tax expense (benefit) from continuing operations | 2,582 | (15,811 | ) | * | |||||||
Interest expense, net | 144 | 30 | * | ||||||||
Loss on equity investments, net | — | — | * | ||||||||
Other income, net | (403 | ) | (387 | ) | 4.1% | ||||||
Income (loss) from operations | 8,445 | (65,148 | ) | * | |||||||
Depreciation and amortization | 5,242 | 8,813 | (40.5%) | ||||||||
Impairment | — | 51,049 | * | ||||||||
Restructuring and transaction costs (1) | 10,664 | 13,221 | (19.3%) | ||||||||
Stock based compensation | 1,116 | 1,592 | (29.9%) | ||||||||
Adjusted EBITDA from continuing operations | $ | 25,467 | $ | 9,527 | * | ||||||
* 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 and costs related to completed and potential acquisitions.
Adjusted EBITDA
Adjusted EBITDA is a financial measure that is not calculated in accordance with
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
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.
NON-GAAP RECONCILIATIONS
(In thousands)
(Unaudited)
Preliminary
Reconciliation of Total Operating Expenses to Adjusted Operating Expenses
Adjusted 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. Management believes that adjusted 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 | Three months ended | |||||||||||||||||||||||
GAAP | Adjustments | Adjusted Expenses | GAAP | Adjustments | Adjusted Expenses | |||||||||||||||||||
Compensation | $ | 61,759 | $ | (2,954 | ) | $ | 58,805 | $ | 96,268 | $ | (18,501 | ) | $ | 77,767 | ||||||||||
Newsprint and ink | 6,624 | (90 | ) | 6,534 | 10,720 | — | 10,720 | |||||||||||||||||
Outside services | 63,200 | (3,011 | ) | 60,189 | 74,585 | (1,348 | ) | 73,237 | ||||||||||||||||
Other operating expenses | 28,284 | (5,725 | ) | 22,559 | 30,154 | 5,036 | 35,190 | |||||||||||||||||
Depreciation and amortization | 5,242 | (5,242 | ) | — | 8,813 | (8,813 | ) | — | ||||||||||||||||
Impairment | — | — | — | 51,049 | (51,049 | ) | — | |||||||||||||||||
Total operating expenses | $ | 165,109 | $ | (17,022 | ) | $ | 148,087 | $ | 271,589 | $ | (74,675 | ) | $ | 196,914 | ||||||||||
NON-GAAP RECONCILIATIONS
(In thousands)
(Unaudited)
Preliminary
Reconciliation of Net income (loss) attributable to Tribune common stockholders to Adjusted Income (Loss) from continuing operations attributable to Tribune common stockholders and Adjusted Diluted EPS:
Adjusted income (loss) from continuing operations attributable to Tribune common stockholders is defined as Net income (loss) from continuing operations attributable to Tribune common stockholders - GAAP excluding the adjustments for restructuring and transaction costs, net of the impact of income taxes.
Net income (loss) from continuing operations attributable to Tribune common stockholders - GAAP consists of Net income (loss) from continuing operations per the Consolidated Statements of Income (Loss), less Income (loss) attributable to noncontrolling interests and the noncontrolling interest carrying value adjustment as set forth in the Earnings Per Share calculation in the company's Form 10-Q.
Adjusted Diluted EPS computes Adjusted income (loss) from continuing operations attributable to Tribune common stockholders divided by diluted weighted average shares outstanding.
Management believes Adjusted income (loss) from continuing operations attributable to Tribune common stockholders 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 | ||||||||||||||||
Earnings | Diluted EPS | Earnings | Diluted EPS | |||||||||||||
Net income (loss) from continuing operations attributable to Tribune common stockholders - GAAP | $ | 6,122 | $ | 0.17 | $ | (48,980 | ) | $ | (1.35 | ) | ||||||
Adjustments to operating expenses, net of 27.8% tax | ||||||||||||||||
Restructuring and transaction costs | 7,699 | 0.21 | 9,546 | 0.26 | ||||||||||||
Adjusted income (loss) from continuing operations attributable to Tribune common stockholders - Non-GAAP | $ | 13,821 | $ | 0.37 | $ | (39,434 | ) | $ | (1.09 | ) | ||||||
Source:
2021 GlobeNewswire, Inc., source