Slide 1: Second Quarter 2016 Financial Results
SECOND QUARTER 2016 Financial Results AUGUST 4, 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: 2Q16 Financial Highlights
Total revenues declined 1% year-over-year. Total advertising revenues increased 1% year-over year. Digital advertising revenues increased 65%. Operating expenses were lower than expectations. Operating income was $50 million versus $61 million last year. Adjusted OIBDA was $89 million vers
Slide 4: 2Q16 Advertising Revenues
$343 $299 $77 $127 2015 2016 Digital Advertising Print and Other Advertising 2Q16 Advertising Revenues Total advertising revenues up 1% Print and other advertising down 13% Digital advertising up 65% - Includes the benefit of acquisitions - Excluding the Viant acquisition, digital advertising
Slide 5: 2Q16 Circulation Revenues
$166 $154 $82 $74 $6 $8 Other Circulation Revenues Newsstand Revenues Subscription Revenues Subscription revenues down 7% Newsstand revenues down 10% $MM $254 $236 2Q16 Circulation Revenues HIGHLIGHTS 2Q15 2Q16 5
Slide 6: 2Q16 Other Revenues
2Q16 Other Revenues Other revenues up 8% - Includes the benefit of acquisitions $99 $107 HIGHLIGHTS 2Q15 2Q16 $MM 6
Slide 7: 2Q16 Operating Expenses
$362 $357 $295 $330 Costs of Revenues (COR) SG&A 2Q16 Operating Expenses Costs of revenues and SG&A combined increased 5% - Includes costs related to our growth initiatives and operations of newly acquired businesses - Includes transaction-related expenses which are excluded from our Adjusted OIBD
Slide 8: 2Q16 Adjusted OIBDA
1 2 2Q16 Adjusted OIBDA $117 $89 2Q16 Operating Income of $50 million vs. $61 million in the prior year 2Q16 Adjusted OIBDA of $89 million Diluted EPS of $0.18 vs. $0.22 in the prior year Adjusted Diluted EPS of $0.22 vs. $0.27 in the prior year HIGHLIGHTS 2Q15 2Q16 $MM 8
Slide 9: 2Q16 Cash Update
2Q16 Cash Update HIGHLIGHTS 2Q16 ending cash, cash equivalents and short-term investments of $380 million Cash provided by operations of $79 million Quarterly dividend of $0.19 per share, or $19 million, paid on 6/15/16 $10 million face value of debt purchased at a discount of $9.5 million (
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; gains and losses on operating assets; pension plan settlements and/or curtailments; and Other costs related to mergers, a
Slide 11: Q&A
Q&A
Slide 12: Appendix
Appendix
Slide 13: Schedule I: Adjusted OIBDA reconciliation
TIME INC. ‘Schedule I (Unaudited; in millions) Three Months Ended ‘Six Months Ended func june 30, 2016 2015 2016 2018 ‘Operating income (loss) 5 30 5 a 47 § 6 eres n 4 23 21 a mortization of intangible assets 20 20 4 39 oma? oy 108 15 152 Asset impairments 1 - 1 - Restructuring and severance costs,
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Slide 15: Schedule III: Adjusted Diluted EPS reconciliation
‘Schedule IIL TIME INC. (Unaudited; all per share amounts are net of tax) Three Months Ended ‘Six Months Ended June 30, une 30 2016 2018 2016 Diluted EPS 5 018 5 022 § 008 5 Asset impairment H oot - cstucturing and severane 0.06 0.06 007 007 (ain osson operating ses, 7 0.0» - 412) - Bargain purchase
Slide 16: Schedule IV: Free Cash Flow reconciliation
Schedule IV ‘TIME INC. RECONCILIATION (Unaudited; in millions) Three Months Ended ‘Six Months Ended june 30, june 30, 2018 16 2015 Cash provided by (used in) operations Ss 79 § oS 27S 3 Less: Capital expenditures (26) (59) (Gy (63) Free Cash Flow” is 33.5 a5 GH § 2D oy ths ended June 30,
Slide 17: Schedule V: Outlook reconciliation
Schedule V TIME INC. (Unaudited; in millions) 2015 Actual High Operating income (loss) 5 (823) 305 F 340 § 2s § 240 Depreciation 2 0 oo Amortization of intangible assets a 15 80 0 80 il s (651) § 440 490 § 385 § 380 se einen wll impairment, Resiructring and ns) ses on plas acquisitions, investments
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