Fiscal 2020 fourth quarter revenues of
Fiscal 2020 fourth quarter operating income of
Fiscal 2020 fourth quarter adjusted operating income of
For the fiscal 2020 fourth quarter,
For fiscal 2020,
President and CEO
Fiscal Year 2020 Fourth Quarter and Annual Results | ||||||
(In thousands, except per share data) | Three Months Ended | Twelve Months Ended | ||||
2020 | 2020 | |||||
Revenues | $ | 152,114 | $ | 685,797 | ||
Operating income | 83,068 | 294,968 | ||||
Adjusted operating income | 90,491 | 321,366 | ||||
Net Income | 55,920 | 185,221 | ||||
Diluted EPS | $ | 0.97 | $ | 2.92 |
(1) | See page 3 of this earnings release for the definition of adjusted operating income included in the discussion of non-GAAP financial measures. |
Summary of Fiscal 2020 Fourth Quarter Results from Operations
Fiscal 2020 fourth quarter total revenues of
Advertising revenue decreased
Direct operating expenses of
Selling, general and administrative expenses of
Operating income of
Adjusted operating income of
About
Non-GAAP Financial Measures
We define adjusted operating income, which is a non-GAAP financial measure, as operating income before 1) depreciation, amortization and impairments of property and equipment and intangible assets, 2) share-based compensation expense or benefit, 3) restructuring charges or credits and 4) gains or losses on sales or dispositions of businesses. Because it is based upon operating income, adjusted operating income also excludes interest expense (including cash interest expense) and other non-operating income and expense items. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the Company without regard to the settlement of an obligation that is not expected to be made in cash.
We believe adjusted operating income is an appropriate measure for evaluating the operating performance of our Company. Adjusted operating income and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income measures as the most important indicators of our business performance, and evaluate management’s effectiveness with specific reference to these indicators. Adjusted operating income should be viewed as a supplement to and not a substitute for operating income, net income, cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with
The Company defines Free Cash Flow (“Free Cash Flow”), which is a non-GAAP financial measure, as net cash provided by operating activities less capital expenditures, both of which are reported in our Consolidated Statement of Cash Flows. The Company believes the most comparable GAAP financial measure is net cash provided by operating activities. The Company believes that Free Cash Flow is useful as an indicator of its overall ability to generate liquidity, as the amount of Free Cash Flow generated in any period is representative of cash that is generated for debt repayment, investment, and other discretionary and non-discretionary cash uses. The Company also believes that Free Cash Flow is one of several benchmarks used by analysts and investors for comparison of the Company’s generation of liquidity with other companies in the industry, although the Company’s measure of Free Cash Flow may not be directly comparable to similar measures reported by other companies. For a reconciliation of Free Cash Flow to net cash provided by operating activities, please see page 8 of this release.
Forward Looking Statements
This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors, including financial community perceptions of the Company and its business, operations, financial condition and the industry in which it operates and the factors described in the Company’s filings with the
Contacts: | ||
Communications | Investor Relations | |
(212) 465-6442 | (212) 465-6072 |
Conference Call Information:
The conference call will be Webcast live today at
Conference call dial-in number is 877-883-0832 / Conference ID Number 3798172
Conference call replay number is 855-859-2056 / Conference ID Number 3798172 until
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended | Twelve Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenues | $ | 152,114 | $ | 168,362 | $ | 685,797 | $ | 720,845 | ||||||||
Direct operating expenses | 46,350 | 70,064 | 282,837 | 300,274 | ||||||||||||
Selling, general and administrative expenses | 20,656 | 26,343 | 100,829 | 103,274 | ||||||||||||
Depreciation and amortization | 2,040 | 1,748 | 7,163 | 7,398 | ||||||||||||
Operating income | 83,068 | 70,207 | 294,968 | 309,899 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest income | 500 | 1,772 | 4,234 | 6,343 | ||||||||||||
Interest expense | (6,156 | ) | (12,316 | ) | (36,324 | ) | (47,589 | ) | ||||||||
Debt refinancing expense | — | — | (2,764 | ) | — | |||||||||||
Other components of net periodic benefit cost | (256 | ) | 1,475 | (1,030 | ) | 244 | ||||||||||
(5,912 | ) | (9,069 | ) | (35,884 | ) | (41,002 | ) | |||||||||
Income from operations before income taxes | 77,156 | 61,138 | 259,084 | 268,897 | ||||||||||||
Income tax expense | (21,236 | ) | (19,959 | ) | (73,863 | ) | (82,715 | ) | ||||||||
Net income | $ | 55,920 | $ | 41,179 | $ | 185,221 | $ | 186,182 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | ||||||||||||||||
Net income | $ | 0.98 | $ | 0.55 | $ | 2.93 | $ | 2.48 | ||||||||
Diluted | ||||||||||||||||
Net income | $ | 0.97 | $ | 0.54 | $ | 2.92 | $ | 2.46 | ||||||||
Weighted-average number of common shares outstanding: | ||||||||||||||||
Basic | 57,062 | 75,152 | 63,172 | 75,069 | ||||||||||||
Diluted | 57,357 | 75,764 | 63,515 | 75,731 |
ADJUSTMENTS TO RECONCILE OPERATING INCOME
TO ADJUSTED OPERATING INCOME
(In thousands)
The following is a description of the adjustments to operating income in arriving at adjusted operating income as described in this earnings release:
- Share-based compensation expense. This adjustment eliminates the compensation expense relating to restricted stock units and stock options granted under our employee stock plan and non-employee director stock plan in all periods.
- Depreciation and amortization. This adjustment eliminates depreciation, amortization and impairments of property and equipment and intangible assets in all periods.
Three Months Ended | Twelve Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Operating income | $ | 83,068 | $ | 70,207 | $ | 294,968 | $ | 309,899 | ||||||||
Share-based compensation expense | 5,383 | 4,429 | 19,235 | 18,087 | ||||||||||||
Depreciation and amortization | 2,040 | 1,748 | 7,163 | 7,398 | ||||||||||||
Adjusted operating income | $ | 90,491 | $ | 76,384 | $ | 321,366 | $ | 335,384 |
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
2020 | 2019 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 196,837 | $ | 226,423 | ||||
Accounts receivable, net | 105,549 | 108,349 | ||||||
Related party receivables, net | 14,190 | 16,091 | ||||||
Prepaid income taxes | 461 | 1,968 | ||||||
Prepaid expenses | 11,063 | 2,003 | ||||||
Other current assets | 4,541 | 5,286 | ||||||
Total current assets | 332,641 | 360,120 | ||||||
Property and equipment, net | 8,758 | 9,302 | ||||||
Amortizable intangible assets, net | 30,283 | 33,743 | ||||||
424,508 | 424,508 | |||||||
Operating lease right-of-use assets | 17,153 | — | ||||||
Other assets | 37,460 | 39,226 | ||||||
Total assets | $ | 850,803 | $ | 866,899 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIENCY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 2,115 | $ | 907 | ||||
Related party payables | 1,472 | 941 | ||||||
Current portion of long-term debt | 37,229 | 111,789 | ||||||
Current portion of operating lease liabilities | 5,492 | — | ||||||
Income taxes payable | 641 | — | ||||||
Accrued liabilities: | ||||||||
Employee related costs | 14,187 | 15,466 | ||||||
Other accrued liabilities | 10,116 | 13,898 | ||||||
Deferred revenue | 2,753 | 185 | ||||||
Total current liabilities | 74,005 | 143,186 | ||||||
Long-term debt, net of current portion | 1,043,780 | 906,228 | ||||||
Long-term operating lease liabilities | 13,780 | — | ||||||
Defined benefit and other postretirement obligations | 25,860 | 25,834 | ||||||
Other employee related costs | 5,149 | 4,713 | ||||||
Other liabilities | 1,536 | 2,310 | ||||||
Deferred tax liability | 239,542 | 243,396 | ||||||
Total liabilities | 1,403,652 | 1,325,667 | ||||||
Commitments and contingencies | ||||||||
Stockholders' Deficiency: | ||||||||
Class A Common Stock, par value | 643 | 643 | ||||||
Class B Common Stock, par value | 136 | 136 | ||||||
Preferred stock, par value | — | — | ||||||
Additional paid-in capital | 12,731 | 9,916 | ||||||
(457,363 | ) | (179,561 | ) | |||||
Accumulated deficit | (100,792 | ) | (282,414 | ) | ||||
Accumulated other comprehensive loss | (8,204 | ) | (7,488 | ) | ||||
Total stockholders' deficiency | (552,849 | ) | (458,768 | ) | ||||
Total liabilities and stockholders' deficiency | $ | 850,803 | $ | 866,899 |
SUPPLEMENTAL FINANCIAL INFORMATION
(Dollars in thousands)
(Unaudited)
Summary Data from the Statements of Cash Flows
Twelve Months Ended | ||||||||
2020 | 2019 | |||||||
Net cash provided by operating activities | $ | 210,032 | $ | 205,959 | ||||
Net cash used in investing activities | (2,814 | ) | (4,879 | ) | ||||
Net cash used in financing activities | (236,804 | ) | (180,000 | ) | ||||
Net increase (decrease) in cash and cash equivalents | (29,586 | ) | 21,080 | |||||
Cash and cash equivalents at beginning of period | 226,423 | 205,343 | ||||||
Cash and cash equivalents at end of period | $ | 196,837 | $ | 226,423 |
Free Cash Flow
Twelve Months Ended | ||||||||
2020 | 2019 | |||||||
Net cash provided by operating activities | $ | 210,032 | $ | 205,959 | ||||
Less: Capital expenditures | (2,814 | ) | (2,879 | ) | ||||
Free cash flow | $ | 207,218 | $ | 203,080 |
Capitalization
2020 | ||||
Cash and cash equivalents | $ | 196,837 | ||
Credit facility debt(a) | 1,086,250 | |||
Net debt | $ | 889,413 | ||
Reconciliation of operating income to AOI for trailing twelve-month period(b) | ||||
Operating Income | $ | 294,968 | ||
Share-based compensation expense | 19,235 | |||
Depreciation and amortization | 7,163 | |||
Adjusted operating income | $ | 321,366 | ||
Leverage ratio(c) | 2.8x | |||
(a)Represents aggregate principal amount of the debt outstanding. | ||||
(b)Represents reported adjusted operating income for the trailing twelve months. | ||||
(c)Represents net debt divided by trailing twelve-month adjusted operating income, which differs from the covenant calculation contained in the Company's credit facility. |
Source:
2020 GlobeNewswire, Inc., source