Slide 1: First Quarter 2015 Financial Results
First Quarter 2015 Financial Results May 7, 2015
Slide 2: Disclaimer
2 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 curre
Slide 3: 1Q15 Financial Highlights
3 Adjusted OIBDA of $51 million versus $64 million last year Excluding the impact of the dispositions of CNNMoney and Grupo Editorial Expansión or “GEX” and the impact of the stronger US dollar relative to the British pound or “FX” - Digital advertising revenues would have grown 20% versus 1Q14
Slide 4: 1Q15 Total Revenues
4 1Q15 Total Revenues $MM Total revenues down 9% - Dispositions of CNNMoney and GEX drove 3% pts decline - FX drove 1% pt decline $745 $680 1Q14 1Q15 Highlights
Slide 5: 1Q15 Advertising Revenues
5 1Q15 Advertising Revenues Total advertising revenues down 9% - Dispositions of CNNMoney and GEX drove 3% pts decline - FX drove 1% pt decline Print and other advertising down 12% - Disposition of GEX drove 1% pt decline - FX drove 1% pt decline - Continued to outperform the industry; Time Inc.
Slide 6: 1Q15 Circulation Revenues
$1 $2 Other Circulation Revenues Newsstand Revenues Subscription Revenues 6 1Q15 Circulation Revenues Continued subscription and newsstand softness Subscription revenues down 8% - Disposition of GEX and FX drove 1% pt decline Newsstand revenues down 10% - FX drove 4% pts decline $MM $180 $165
Slide 7: 1Q15 Other Revenues
7 1Q15 Other Revenues Other revenues down 9% - Disposition of GEX drove 2% pts decline - FX drove 1% pt decline Book and bookazine business experienced continued weakness $MM $85 $77 Highlights 1Q14 1Q15
Slide 8: 1Q15 Operating Expenses
Costs of Revenues (COR) SG&A 8 1Q15 Operating Expenses Operating Expenses1 down 7% - Dispositions of CNNMoney and GEX drove 3% pts decline - FX drove 1% pt decline Costs of Revenues down 11% - Dispositions of CNNMoney and GEX drove 3% pts decline - FX drove 2% pts decline SG&A down 4% - Dispos
Slide 9: 1Q15 Adjusted OIBDA
1 2 9 1Q15 Adjusted OIBDA Adjusted OIBDA of $51 million would have been essentially flat excluding: - Dispositions and FX (net) - Incremental stock compensation expense - Incremental real estate expense $MM $64 $51 Highlights 1Q 4 1Q15
Slide 10: 1Q15 Cash Update
10 1Q15 Cash Update $MM Free Cash Flow 1Q15 Free Cash Flow of ($24) million - Includes $8 million of interest payments Cash dividend of $0.19 per share ($21) million paid on 3/13/15 $13 million of investment activity As of 3/31/15, net leverage ratio of 1.8x - Target net leverage ratio 2.0x
Slide 11: Time Inc Outlook for 2015
11 Time Inc Outlook for 2015 $MM 2014 Actual Full Year 2015 Outlook Range Revenues – as reported (2.2%) (3%) to (6%) Revenues1 (5.3%) (1.5%) to (4.5%) Impact of 2014 wholesaler transition ($22) 70 bps Forecasted impact of stronger USD2 ------ (120 bps) Adjusted OIBDA3 $524 $440 to $490 Impact of 201
Slide 12: Q&A
Q&A Timelne.
Slide 13: Appendix
APPENDIX Timelne. 8
Slide 14: Schedule I: Reconciliation of Operating Income (Loss) to Adjusted OIBDA
14 Schedule I TIME INC. RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OIBDA (Unaudited; in millions) ______________ (1) OIBDA is defined as Operating income (loss) less Depreciation and Amortization of intangible assets. (2) Other costs during the three months ended March 31, 2015, related t
Slide 15: Schedule II: Reconciliation of Net Income (Loss) to Adjusted Net Income
15 Schedule II TIME INC. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (Unaudited; in millions) ______________ (1) Adjusted Net (Loss) Income is defined as Net income (loss) adjusted for impairments of Goodwill, intangibles, fixed assets and investments; Restructuring and severance cost
Slide 16: Schedule III: Reconciliation of Diluted EPS to Adjusted Diluted EPS
16 Schedule III TIME INC. RECONCILIATION OF DILUTED EPS TO ADJUSTED DILUTED EPS (Unaudited) ______________ (1) Adjusted Diluted EPS is defined as Diluted EPS adjusted for impairments of Goodwill, intangibles, fixed assets and investments; Restructuring and severance costs; gains and losses on operat
Slide 17: Schedule IV: Reconciliation of Cash from Operations to Free Cash Flow
17 Schedule IV TIME INC. RECONCILIATION OF CASH PROVIDED BY (USED IN) OPERATIONS TO FREE CASH FLOW (Unaudited; in millions) ______________ (1) Free Cash Flow is defined as Cash provided by (used in) operations, less Capital expenditures. Three Months Ended March 31, 2015 2014 Cash (used in) provided
Slide 18: Schedule V: Reconciliation to Adjusted OIBDA - 2015 Outlook
18 Schedule V TIME INC. RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OIBDA - 2015 OUTLOOK (Unaudited; in millions) _____________ (1) OIBDA is defined as Operating income (loss) less Depreciation and Amortization of intangible assets. (2) Our 2015 Outlook primarily relates to a noncash charg