Slide 1: Third Quarter 2016 Financial Results
THIRD QUARTER 2016 Financial Results NOVEMBER 3, 2016
Slide 2: 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
Slide 3: 3Q16 Financial Highlights
Total revenues declined 3% year-over-year including approx. 200 bps related to FX. Total advertising revenues increased 5% year-over year. Digital advertising revenues increased 63%, representing 31% of total advertising revenues. Operating expenses decreased 3% year over year including appr
Slide 4: 3Q16 Advertising Revenues
$319 $288 $79 $129 2015 2016 Digital Advertising Print and Other Advertising 3Q16 Advertising Revenues Total advertising revenues up 5% Print and other advertising revenues down 10% Digital advertising revenues up 63% - Includes the benefit of acquisitions $398 $417 4 HIGHLIGHTS 3Q 3Q $MM Reve
Slide 5: 3Q16 Circulation Revenues
$168 $148 $86 $68 $7 $7 Other Circulation Revenues Newsstand Revenues Subscription Revenues Subscription revenues down 12% Newsstand revenues down 21% $MM $261 $223 3Q16 Circulation Revenues HIGHLIGHTS 3Q15 3Q16 5
Slide 6: 3Q16 Other Revenues
3Q16 Other Revenues Other revenues down 4% $114 $110 HIGHLIGHTS 3Q15 3Q16 $MM 6
Slide 7: 3Q16 Operating Expenses
$359 $326 $310 $326 Costs of Revenues (COR) Selling, General & Administrative Expenses (SG&A) 3Q16 Operating Expenses COR and SG&A combined down 3% - Includes costs related to our growth initiatives and operations of newly acquired businesses - Includes transaction-related expenses and pension set
Slide 8: 3Q16 Adjusted OIBDA
1 2 3Q16 Adjusted OIBDA $113 $100 3Q16 Operating loss of ($167) million vs. an Operating loss of ($899) million in the prior year 3Q16 Adjusted OIBDA of $100 million vs. $113 million in the prior year 3Q16 Diluted Net Loss Per Share of ($1.13) vs. ($8.30) in the prior year 3Q16 Adjusted Dilu
Slide 9: 3Q16 Cash Update
3Q16 Cash Update HIGHLIGHTS 3Q16 ending cash, cash equivalents and short-term investments of $304 million Cash provided by operations of $79 million Quarterly dividend of $0.19 per share, or $19 million, paid on 9/15/16 $5 million face value of debt purchased at a discount of $4.9 million (e
Slide 10: Time Inc. Outlook For 2016
Time Inc. Outlook For 2016 1 We define Adjusted OIBDA as OIBDA adjusted for impairments of Goodwill, intangibles, fixed assets and investments; Restructuring and severance costs; (Gain) loss on operating assets, net; Pension settlements/curtailments; and Other costs related to mergers, acquisitions,
Slide 11: Q&A
Q&A
Slide 12: Appendix
Appendix
Slide 13: Reconciliation of Operating Income (Loss) to Adjusted OIBDA
13 (1) OIBDA is defined as Operating income (loss) excluding Depreciation and Amortization of intangible assets. (2) Asset impairments primarily related to a definite-lived tradename intangible. (3) (Gain) loss on operating assets, net primarily reflects the recognition of a gain on sale of certain
Slide 14: Reconciliation of Net Income (Loss) to Adjusted Net Income
14 TIME INC. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (Unaudited; in millions) Schedule II (1) Asset impairments primarily related to a definite-lived tradename intangible. (2) (Gain) loss on operating assets, net primarily relates to the recognition of a gain on sale of certain of
Slide 15: 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) Asset impairments primarily related to a definite-lived tradename intangible. (2) (Gain) loss on operating assets, net primarily relates to the recognition of a gain on
Slide 16: Reconciliation of Cash from Operations to Free Cash Flow
16 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 in the three and nine months ended September 30, 2016 re
Slide 17: Reconciliation of Operating Income to Adjusted OIBDA - 2016 Outlook
17 Schedule V TIME INC. RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OIBDA - 2016 OUTLOOK (Unaudited; in millions) (1) OIBDA is defined as Operating income (loss) excluding Depreciation and Amortization of intangible assets. (2) Adjusted OIBDA is defined as OIBDA adjusted for impairments of
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