New Media Announces Second Quarter 2014 Results and Dividend of $0.27 per Common Share (7/31/14)
NEW YORK, Jul 31, 2014 (BUSINESS WIRE) -- New Media Investment Group Inc. today reported its financial results for the second quarter ended June 29, 2014.
Financial Summary:
• New Media declares a cash dividend of $0.27 per share of common stock for the second quarter of 2014
• Total revenues of $158.4 million, an increase of 32.5% to prior year, or a decline of 0.5% on a same store basis*
• GAAP net (loss) of ($3.3) million; however, when adjusting for the expenses related to the refinancing completed in the quarter, as adjusted net income was $7.6 million, or $0.25 per share*
• As Adjusted EBITDA of $24.3 million, an increase of 35.8% to prior year, or 2.5% on a same store basis*
• Free cash flow of $19.6 million, or $0.65 per share, a 7.9% increase to prior year on a same store basis*
• Operating income of $7.4 million, an increase of $5.0 million to prior year
• Digital revenue of $14.5 million, an increase of 4.4% on a same store basis; Propel Marketing (“Propel”) contributed $4.5 million to Digital revenue*
• Liquidity, consisting of cash on the balance sheet and undrawn revolver, was $56.3 million as of June 29, 2014
Business Highlights:
• Refinanced credit facility on June 4, 2014, resulting in lower interest and amortization costs
• Closed on two acquisitions on June 30, 2014 with a total purchase price of $15.3 million
• Announced the signing of an asset purchase agreement to acquire The Providence Journal from A. H. Belo Corporation for $46.0 million. The transaction is expected to close in the third quarter of 2014 subject to customary closing conditions
Michael E. Reed, New Media President and Chief Executive Officer commented, “Our strong second quarter results mark New Media’s sixth consecutive quarter of improving revenue trends, driven by more than 60% of total revenues coming from stable to growing segments of our business. The Company experienced strong cash flow performance in the quarter with As Adjusted EBITDA of $24.3 million and free cash flow per share of $0.65, both up over prior year by 2.5% and 7.9%, respectively, on a same store basis. We are also very pleased to announce our first quarterly dividend of $0.27 per share of common stock for the second quarter of 2014.
“Since Q1 2014, New Media has continued to execute on its acquisition strategy with three announced deals for a total purchase price of $61.3 million. The Company also successfully completed a refinancing of our credit facilities lowering our interest and amortization costs, while also improving our operating flexibility and liquidity position. We closed the quarter with investable liquidity of more than $56 million and our pipeline for potential acquisitions is strong and growing. As we look forward to the second half of 2014, we believe we are well positioned to create substantial value for our shareholders.”
Second Quarter 2014 Financial Results
New Media recorded revenues of $158.4 million for the quarter, which represents an increase of 32.5% when compared to the prior year, and a decline of 0.5% on a same store basis. This represents the Company’s lowest quarterly decline in the past six quarters.
Total Print Advertising declined 4.0% on a same store basis driven by Local Display and Classified Print revenue, which declined 9.2% and 0.7%, respectively, on a same store basis. Classified Print showed significant improvement over prior quarters driven by obituaries revenue growth and more stable employment, automotive and real estate advertising. The Company experienced strong revenue performance from Commercial Printing and Other, and Digital, which increased 14.8% and 4.4%, respectively, from the prior year on a same store basis. Propel contributed $4.5 million to the second quarter Digital revenue, an increase of $2.9 million from the prior year on a same store basis.
Total expenses in the quarter of $134.1 million were down $1.5 million, or 1.1% compared to the prior year on a same store basis after adjusting for non-recurring and non-cash items.
Net (loss) for the quarter was ($3.3) million, compared to ($14.1) million in the prior year, representing an improvement of $10.9 million. After adjusting for the expenses related to our refinancing completed in the second quarter, our as adjusted net income was $7.6 million, or $0.25 per share. The refinancing expenses include loss on extinguished debt of $9.0 million plus fees for the period related to the debt refinance of $1.9 million.
As Adjusted EBITDA for the quarter was $24.3 million, which increased 35.8% over the prior year, and 2.5% on a same store basis.
Free cash flow for the quarter was $19.6 million, or $0.65 per share, which increased 7.9% versus the prior year on a same store basis. Operating income of $7.4 million was an increase of $5.0 million to the prior year.
Liquidity at the end of the quarter was approximately $56.3 million comprised of $31.3 million of unrestricted cash on the balance sheet and $25.0 million of revolver available.
Second Quarter 2014 Dividend
New Media’s Board of Directors declared a second quarter 2014 cash dividend of $0.27 per share of common stock. The dividend is payable on August 21, 2014 to shareholders of record as of the close of business on August 12, 2014.
The declaration and payment of any dividends are at the sole discretion of the Board of Directors, which may decide to change the Company’s dividend policy at any time.
Additional Information
For additional information that management believes to be useful for investors, please refer to the presentation posted on the Investor Relations section of New Media’s website, www.newmediainv.com and the Company’s Quarterly Report on Form 10-Q , which will be available on the Company’s website. Nothing on our website is included or incorporated by reference herein.
Earnings Conference Call
New Media’s management will host a conference call on Thursday, July 31, 2014 at 11:00 A.M. Eastern Time. A copy of the earnings release will be posted to the Investor Relations section of New Media’s website, www.newmediainv.com .
All interested parties are welcome to participate on the live call. The conference call may be accessed by dialing 1-877-601-8827 (from within the U.S.) or 1-918-534-8645 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “New Media Second Quarter Earnings Call.”
A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.newmediainv.com . Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast.
A telephonic replay of the conference call will also be available approximately two hours following the call’s completion through 11:59 P.M. Eastern Time on Thursday, August 14, 2014 by dialing 1-855-859-2056 (from within the U.S.) or 1-404-537-3406 (from outside of the U.S.); please reference access code “75479849.”
Fortress Public Filings, Earnings Release and Conference Call
Certain financial information and results for New Media may be disclosed by Fortress Investment Group LLC FIG +4.45% in annual and quarterly reports and other public filings with the Securities and Exchange Commission, as well as in earnings releases and conference calls. These disclosures may occur prior to the release of this information by New Media.
Management of Fortress will host a conference call on July 31, 2014 at 10:00 A.M. Eastern Time. All interested parties are welcome to participate on the live call. The Fortress conference call may be accessed by dialing 1-877-694-6694 (from within the U.S.) or 1-970-315-0985 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “Fortress Second Quarter Earnings Call.” A simultaneous webcast of the Fortress conference call will be available to the public on a listen-only basis at www.fortress.com on the Investor Relations page. A copy of the Fortress earnings release will be posted to the Investor Relations section of Fortress’ website, www.fortress.com . Nothing on the Fortress website is included or incorporated by reference herein.
About New Media Investment Group Inc.
New Media is focused primarily on investing in a high quality, diversified portfolio of local media assets, and on growing existing advertising and digital marketing businesses.The Company is one of the largest publishers of locally based print and online media in the United States as measured by number of daily publications.Including the announced Providence Journal acquisition, the Company will operate in 363 markets across 27 states. Including the announced Providence Journal acquisition, New Media’s portfolio of products, which will include 451 community publications, 367 related websites, and six yellow page directories, will serve more than 130,000 business advertising accounts and will reach over 12 million people on a weekly basis.
For more information regarding New Media and to be added to our email distribution list, please visit www.newmediainv.com .
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