TIME

TIME — Q3 2017 Earnings Presentation

16 slides from TIME's earnings presentation, Nov 9, 2017

1. Slide 1: 3Q 2017 Earnings Presentation

   3Q 2017 Earnings Presentation November 9, 2017

2. Slide 2: Forward-looking statements and non-GAAP disclaimer

   This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995; particularly statements regarding future financial and operating results of Time Inc. (the ―Company‖) and its business. These statements are based on management’s current

3. Slide 3: 3Q17 Financial Highlights

   Solid Quarter for Adjusted OIBDA Despite Challenging Print Environment  Total revenues of $679 million, declined 9% year-over-year.  Operating income of $51 million versus Operating loss of $167 million in the prior year.  Adjusted OIBDA of $115 million versus $100 million in the prior year. Leve

4. Slide 4: 3Q17 Revenue Overview

    Total revenues of $679 million, declined 9% year-over-year.  Total advertising revenues of $369 million, declined 12% year-over-year.  Print and other advertising revenues of $237 million, declined 18% year-over-year.  Digital advertising revenues of $132 million, increased 2% year-over-year. 

5. Slide 5: 3Q17 Sources of Revenues

   3Q17 Sources of Revenues Sources of Revenues In millions Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 % Change 2017 2016 % Change Magazines $ 433 $ 506 (14 )% $ 1,300 $ 1,560 (17 )% Digital 165 160 3 % 480 429 12 % Brand Extensions & Other 81 84 (4 )% 229 220 4 % Total

6. Slide 6: 3Q17 Costs of Revenues and SG&A Expenses

   $326 $293 $326 $279 Costs of Revenues (COR) Selling, General & Administrative Expenses (SG&A) 3Q17 Costs of Revenues and SG&A Expenses  COR and SG&A combined down 12% - Other costs include transaction-related expenses, as well as integration and transformation costs, which are excluded from our Adj

7. Slide 7: 3Q17 Adjusted OIBDA & Adjusted EPS

   1 2 3Q17 Adjusted OIBDA & Adjusted EPS $100 $115  3Q17 Operating income of $51 million vs. Operating loss of $167 million in the prior year  3Q17 Adjusted OIBDA of $115 million vs. $100 million in the prior year  3Q17 Diluted Net EPS of $0.14 vs. Diluted Net Loss Per Share of ($1.13) in the prior

8. Slide 8: 3Q17 Cash Update

   3Q17 Cash Update HIGHLIGHTS  3Q17 ending cash and cash equivalents of $332 million  Cash provided by operations of $88 million  Quarterly dividend of $0.04 per share, or $4 million, paid on 9/15/17  As of 9/30/17, net leverage ratio of 2.22x - Target net leverage ratio 2.0x to 2.5x CHANGES IN CA

9. Slide 9: Q&A

   Q&A

10. Slide 10: Appendix

    Appendix

11. Slide 11: OIBDA and Adjusted OIBDA reconciliation

    (1) OIBDA is defined as Operating income (loss) excluding Depreciation and Amortization of intangible assets. (2) (Gain) loss on operating assets, net reflects primarily the recognition of a gain on sale of certain of our titles and of the deferred gain from the sale- leaseback of the Blue Fin Build

12. Slide 12: Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)

    TIME INC. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS) (Unaudited; in millions) Schedule II (1) (Gain) loss on operating assets, net reflects primarily the recognition of a gain on sale of certain of our titles and of the deferred gain from the sale-leaseback of the Blue Fin Bui

13. Slide 13: Reconciliation of Diluted EPS to Adjusted Diluted EPS

    Schedule III TIME INC. RECONCILIATION OF DILUTED EPS TO ADJUSTED DILUTED EPS (Unaudited; all per share amounts are net of tax) ((1) (Gain) loss on operating assets, net reflects primarily the recognition of a gain on sale of certain of our titles and of the deferred gain from the sale-leaseback of t

14. Slide 14: Reconciliation of Cash Provided by Operations to Free Cash Flow

    TIME INC. RECONCILIATION OF CASH PROVIDED BY (USED IN) OPERATIONS TO FREE CASH FLOW (Unaudited; in millions) Schedule IV (1) Free cash flow is defined as Cash provided by (used in) operations, less Capital expenditures. Capital expenditures for the three and nine months ended September 30, 2017 refl

15. Slide 15: Reconciliation of Operating Income to Adjusted OIBDA - 2017 & 2021 Outlook

    Schedule V TIME INC. RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OIBDA – 2017 & 2021 OUTLOOK (Unaudited; in millions) (1) Adjusted OIBDA is defined as OIBDA adjusted for impairments of Goodwill, intangible assets, fixed assets and investments; Restructuring and severance costs; (Gain) loss

16. Slide 16: 3Q 2017

    3Q 2017 Earnings Presentation November 9, 2017

Time — Q3 2017 Earnings Presentation on 6ix