Slide 1: First Quarter 2016 Financial Results
FIRST QUARTER 2016 Financial Results MAY 5, 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: Financial Highlights
1Q16 reported total revenue growth of 1% year-over-year is the best quarterly performance of the past two years, and we continue to project that we will achieve consolidated revenue cross-over in 2016. 1Q16 reported digital advertising revenues rose 23% year-over-year. Positive results from ou
Slide 4: 1Q16 Advertising Revenues
$280 $270 $73 $90 2015 2016 Digital Advertising Print and Other Advertising 1Q16 Advertising Revenues Total advertising revenues up 2% Print and other advertising down 4% Digital advertising up 23% - Includes the benefit of acquisitions $353 $360 4 HIGHLIGHTS 1Q 1Q $MM
Slide 5: 1Q16 Circulation Revenues
$165 $161 $77 $68 $8 $9 Other Circulation Revenues Newsstand Revenues Subscription Revenues Subscription revenues down 2% Newsstand revenues down 12% $MM $250 $238 1Q16 Circulation Revenues HIGHLIGHTS 1Q15 1Q16 5
Slide 6: 1Q16 Other Revenues
1Q16 Other Revenues Other revenues up 19% - Includes the benefit of acquisitions $77 $92 HIGHLIGHTS 1Q15 1Q16 $MM 6
Slide 7: 1Q16 Operating Expenses
$359 $365 $271 $296 Costs of Revenues (COR) SG&A 1Q16 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: 1Q16 Adjusted OIBDA
1 2 1Q16 Adjusted OIBDA $51 $43 1Q16 Adjusted OIBDA of $43 million Adjusted Diluted EPS of ($0.11) vs. ($0.06) in the prior year HIGHLIGHTS 1Q15 1Q16 $MM 8
Slide 9: 1Q16 Cash Update
Beginning Balance 1/1/16 $711 Free Cash Flow (87) Acquisitions/Divestitures/Investments, net (104) Purchase of common stock (58) Repurchase of Senior Notes (31) Dividends paid (20) Other (11) Ending Balance 3/31/16 $400 1Q16 Cash Update HIGHLIGHTS CHANGES IN CASH AND SHORT-TERM INVESTMENTS 1Q16 en
Slide 10: Time Inc. Outlook For 2016
Time Inc. Outlook For 2016 1 There is no change from our previously reported FY 2016 Outlook Range 2 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 pla
Slide 11: Q&A
Q&A
Slide 12: Appendix
Appendix
Slide 13: Reconciliation of Operating Income (Loss) to Adjusted OIBDA
______________ (1) OIBDA is defined as Operating income (loss) excluding Depreciation and Amortization of intangible assets. (2) (Gain) loss on operating assets, net primarily reflects the recognition of the deferred gain from the sale-leaseback of the Blue Fin Building in the fourth quarter of 2015
Slide 14: Schedule II: Reconciliation of Net Income (Loss) to Adjusted Net Income
Schedule II TIME INC. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (Unaudited; in millions) ______________ (1) (Gain) loss on operating assets, net primarily relates to the recognition of the deferred gain from the sale-leaseback of the Blue Fin Building in the fourth quarter of 2015.
Slide 15: Reconciliation to Adjusted Diluted EPS
______________ (1) (Gain) loss on operating assets, net primarily relates to the recognition of the deferred gain from the sale-leaseback of the Blue Fin Building in the fourth quarter of 2015. (2) Bargain purchase gain relates to the acquisition of certain assets of Viant in the first quarter of 20
Slide 16: Schedule IV: Reconciliation of Cash from Operations to Free Cash Flow
16 Schedule IV TIME INC. RECONCILIATION OF CASH PROVIDED BY (USED IN) OPERATIONS TO FREE CASH FLOW (Unaudited; in millions) Three Months Ended March 31, 2016 2015 Cash provided by (used in) operations $ (52 ) $ (20 ) Less: Capital expenditures (35 ) (4 ) Free Cash Flow(1) $ (87 ) $ (24 ) ___________
Slide 17: Schedule V: Reconciliation to Adjusted OIBDA - 2016 Outlook
17 2016 Outlook 2015 Actual Low High Operating income (loss) $ (823 ) $ 305 $ 340 Depreciation 92 60 70 Amortization of intangible assets 80 75 80 OIBDA(1) $ (651 ) $ 440 $ 490 Asset impairments, Goodwill impairment, Restructuring and severance costs, gains/losses on operating assets, pension plan s
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