Slide 1: Third Quarter 2015 Financial Results
THIRD QUARTER 2015 Financial Results November 5, 2015
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: 3Q15 Financial Highlights
Adjusted OIBDA of $113 million versus $144 million last year Excluding: (1) the impact of the disposition of Grupo Editorial Expansión or “GEX”, (2) the impact of the stronger US dollar relative to the British pound or “FX”, and (3) the impact of the wholesaler transition - Digital advertising r
Slide 4: 3Q15 Total Revenues
3Q15 TOTAL REVENUES Total revenues down 6% - Disposition of GEX drove 1% pt decline - FX drove 1% pt decline - Wholesaler transition drove 1% pt increase $821 $773 3Q14 3Q15 HIGHLIGHTS 4 $MM
Slide 5: 3Q15 Advertising Revenues
$363 $319 $65 $79 Digital Advertising Print and Other Advertising 3Q15 ADVERTISING REVENUES Total advertising revenues down 7% - Disposition of GEX drove 1% pt decline - FX drove 1% pt decline Print and other advertising down 12% - Disposition of FX and GEX drove 1% pt decline Digital advertis
Slide 6: 3Q15 Circulation Revenues
$174 $168 $98 $86 $7 $7 $1 $2 Other Circulation Revenues Newsstand Revenues Subscription Revenues 3Q15 CIRCULATION REVENUES Subscription revenues down 3% - FX drove 1% pt decline Newsstand revenues down 12% - FX drove 4% pts decline - Wholesaler transition drove 2% pts increase $MM $279 $261 3Q1
Slide 7: 3Q15 Other Revenues
3Q15 OTHER REVENUES Other revenues remained flat - Disposition of GEX drove 1% pt decline - Wholesaler transition drove 1% pt increase - Book business experienced continued weakness, offset by benefit from acquisitions $MM $114 $114 3Q14 3Q15 HIGHLIGHTS 7
Slide 8: 3Q15 Operating Expenses
$357 $359 $322 $310 Costs of Revenues (COR) SG&A 3Q15 OPERATING EXPENSES Costs of revenues down 4% - Disposition of GEX drove 1% pt decline - FX drove 1% pt decline SG&A up 1% - Disposition of GEX drove 1% pt decline - FX drove 1% pt decline Costs of revenues and SG&A combined decreased 1% - D
Slide 9: 3Q15 Adjusted OIBDA
1 2 3Q15 ADJUSTED OIBDA Adjusted OIBDA of $113 million - FX drove 1% pt decline - Incremental real estate drove 8% pts decline - Wholesaler transition drove 2% pts increase $144 $113 3Q14 3Q15 HIGHLIGHTS 9 $MM
Slide 10: 3Q15 Cash Update
$83 $16 3Q15 CASH UPDATE FREE CASH FLOW 3Q15 Free Cash Flow of $4 million - Includes $59 million of capital expenditures compared to $16 million in 2Q14 $32 million net cash used in acquisitions and dispositions Dividend of $0.19 per share ($21) million paid on 6/15/15 As of 6/30/15, net lev
Slide 11: Time Inc. Outlook for 2015
TIME INC. OUTLOOK FOR 2015 $MM 2014 ACTUAL PREVIOUS FULL YEAR 2015 OUTLOOK RANGE CURRENT FULL YEAR 2015 OUTLOOK RANGE Revenues – as reported (2.2%) (3%) to (6%) (5%) to (6%) Revenues1 (5.3%) (1.5%) to (4.5%) (3.5%) to (4.5%) Impact of 2014 wholesaler transition ($22) 70 bps 70 bps Forecasted impact
Slide 12: Q&A
Q&A 12
Slide 13: Appendix
Appendix 13
Slide 14: Schedule I: Reconciliation of Operating Income (Loss) to Adjusted OIBDA
Schedule I TIME INC. RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OIBDA (Unaudited; in millions) ______________ (1) OIBDA is defined as Operating income (loss) excluding Depreciation and Amortization of intangible assets. (2) Pension plan settlement charges in connection with our domestic e
Slide 15: 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 on non-operating assets during the nine months ended September 30, 2015 related to assets acquired in connection with the purchase of the remaining 50% interest in a U.K.
Slide 16: Schedule III: 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) Adjusted Diluted EPS is defined as Diluted EPS adjusted for impairments of Goodwill, intangibles, fixed assets and investments; Restructuring and severanc
Slide 17: Schedule IV: Reconciliation of Cash from Operations to Free Cash Flow
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. Capital expenditures include $54 million and $103 million for the
Slide 18: Schedule V: Reconciliation to Adjusted OIBDA - 2015 Outlook
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) excluding Depreciation and Amortization of intangible assets. (2) Our Previous 2015 Outlook primarily relates to a no