Digital content revenues increased 67% year-over-year
Exceeded previous guidance for 3rd Quarter Adjusted EBITDAThird Quarter 2020
Highlights:
· Total revenues were $188.7 million, down
from $236.0 million in the third quarter of 2019
· Net income from continuing operations
increased to $8.5 million, from $6.9 million in the third quarter of 2019
· Adjusted EBITDA was $27.3 million, an
increase of $2.5 million compared to the third quarter of 2019
· Digital-only subscriber revenue
increased 67.4% or $5.1 million and digital subscribers grew to 427,000 at the
end of the third quarter 2020, compared to 314,000 at the end of the third
quarter 2019
· BestReviews continued significant growth
during the third quarter with an increase in revenues exceeding 40%
Terry Jimenez, Tribune
Publishing Chief Executive Officer and President said, “We have made significant
progress mitigating the negative impact of the COVID-19 pandemic on the Company
through aggressive cost discipline and deep focus on our transition to
digital. As a result, we increased Net income from continuing operations
by 24% and improved Adjusted EBITDA by 10% over the prior year quarter despite
significant pandemic-related revenue headwinds.”
“In the third quarter, we saw
improved sequential revenue trends in advertising, circulation and other
revenue categories compared to the second quarter of 2020. However, we
remain cautious about the continuing impact and duration of the pandemic and
accordingly, we persist in 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.”
Third Quarter 2020
Results
Third quarter 2020 total revenues were $188.7 million, down $47.4 million or
20.1% compared to $236.0 million for the third quarter 2019. Revenues
were in line with previously provided guidance. Advertising revenues
decreased 38.2%, or $35.6 million, in the three months ended September 27,
2020, compared to the same period for 2019, due to declines in all advertising
categories. Circulation revenues decreased 2.5%, or $2.3 million, in the
three months ended September 27, 2020, compared to the same period for
2019. Home delivery decreased $5.5 million and single copy decreased $1.9
million. These decreases were partially offset by an increase of $5.1
million in digital subscription revenue driven by an increased number of
digital subscribers and higher subscriptions rates per subscriber. Other revenue
declined $9.5 million or 18.1%, of which $4.2 million is related to transition
services provided to the
Third quarter total operating
expenses, including depreciation and amortization, were $181.3 million, down
20.0% compared to $226.7 million in the third quarter of 2019. The
decrease reflects the Company’s ongoing disciplined cost management and
aggressive efforts to reduce our overall costs.
Net income from continuing
operations was $8.5 million in the third quarter of 2020, an increase of
23.5% compared to $6.9 million in the third quarter of 2019.
Adjusted EBITDA was $27.3
million in the third quarter of 2020, an increase of 9.9% or $2.5 million
compared to the third quarter of 2019. Adjusted EBITDA exceeded
previously provided guidance.
For the quarter ended
September 27, 2020, capital expenditures totaled $2.1 million. Cash
balance at September 27, 2020, was $90.0 million, which does not include
$31.4 million of restricted cash reflected in long-term assets.
Segment Results
The Company assesses its operating segments in accordance with ASC Topic 280, “Segment
Reporting.” Beginning with the first quarter of fiscal 2020, Tribune
began managing its business as one business and one reportable segment.
The prior periods have been restated to reflect the change in reportable
segments.
2020 Outlook
For the fourth quarter of 2020, the Company expects total revenues of $203
million to $208 million and Adjusted EBITDA of $36 million to $39 million.
Conference Call
Details
Tribune Publishing will host a conference call to discuss the Company’s third
quarter 2020 results at 5:00 p.m. Eastern Time (4:00 p.m. Central
Time) on Wednesday, November 4, 2020. The conference call may be
accessed via Tribune Publishing’s Investor Relations website at investor.tribpub.com or by dialing
844.209.4036 (478.219.0556 for international callers) and entering conference
ID 9449596. An archived version of the webcast will also be available for
one year on the Tribune Publishing website. You can also access this
replay via telephone by dialing 855.859.2056 (404.537.3406 for international
callers) and entering conference ID 9449596.
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 United States generally accepted
accounting principles (“U.S. GAAP”) and Tribune Publishing’s use of the terms
Adjusted EBITDA, Adjusted Operating Expenses, Adjusted Income (Loss) from
continuing operations attributable to Tribune common stockholders, and Adjusted
Diluted EPS may vary from that of others in the Company’s industry. Adjusted
EBITDA, Adjusted Operating Expenses, Adjusted Income (Loss) from continuing
operations attributable to Tribune common stockholders, and Adjusted Diluted
EPS should not be considered as an alternative to net income (loss), income
from operations, operating expenses, net income (loss) per diluted share,
revenues or any other performance measures derived in accordance with U.S. GAAP
as measures of operating performance or liquidity. Further information
regarding Tribune Publishing’s presentation of these measures, including a
reconciliation of Adjusted EBITDA, Adjusted Operating Expenses, Adjusted Income
(Loss) from continuing operations attributable to Tribune common stockholders
and Adjusted Diluted EPS to the most directly comparable U.S. GAAP financial
measure, is included below in this press release.
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 effect of
the novel coronavirus (“COVID-19”) and related governmental and economic
responses; changes in advertising demand, circulation levels and audience
shares; competition and other economic conditions; our ability to develop and
grow our online businesses; changes in newsprint price and availability; our
ability to maintain data security and comply with privacy-related laws;
economic and market conditions that could impact the level of our required
contributions to the defined benefit pension plans to which we contribute;
decisions by trustees under rehabilitation plans (if applicable) or other
contributing employers with respect to multiemployer plans to which we
contribute which could impact the level of our contributions; our ability to
maintain effective internal control over financial reporting; concentration of
stock ownership among our principal stockholders whose interest may differ from
those of other stockholders; and other events beyond our control that may
result in unexpected adverse operating results. For specific risks
related to the COVID-19 pandemic, refer to Item 1A. Risk Factors in the most
recently filed Quarterly Report on Form 10-Q. For more information about
these and other risks, see Item 1A (Risk Factors) of the Company’s most recent
Annual Report on Form 10-K and in the Company’s other reports filed with the
Securities and Exchange Commission.
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 Tribune
Publishing Company
Tribune Publishing Company (NASDAQ: TPCO) is a media company rooted in
award-winning journalism. Headquartered in
Tribune’s unique and valuable
content across its brands have earned a combined 65 Pulitzer Prizes and are
committed to informing, inspiring and engaging local communities. 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:
Amy Bullis
312.222.2102
abullis@tribpub.com
Media Contact:
Max Reinsdorf
847.867.6294
mreinsdorf@tribpub.com
Source: Tribune Publishing
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