Meredith Corporation (NYSE:MDP) Q1 2019 Earnings Conference Call - Final Transcript

Nov 07, 2018 • 08:30 am ET


Meredith Corporation (NYSE:MDP) Q1 2019 Earnings Conference Call - Final Transcript


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Good morning. My name is Jenice, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Meredith Fiscal 2018 First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

Mike Lovell, you may begin your conference.

Mike Lovell

Hi, good morning. Thanks everyone for joining us today. Our call will begin with comments from Executive Chairman, Steve Lacy; President and CEO, Tom Harty, and CFO, Joe Ceryanec. Then we'll turn the call over to your questions. Also on the line with us today are National Media Group President, Jon Werther, and Local Media Group President, Patrick McCreery. An archive of the call will be available on our website later this afternoon.

(Forward-Looking Cautionary Statement) Certain financial measures that we are discussing on this call are expressed on a non-GAAP basis and have been adjusted to exclude the impact of special items. Reconciliations of these non-GAAP measures are included in our earnings release, which is available in the Investor Relations section of our website.

With that, Steve will begin.

Steve Lacy

Well, thank you very much, Mike, and good morning, everyone. I hope you've had the opportunity to see our news release that was issued earlier this morning. I'll begin with a quick review of our fiscal 2019 first quarter accomplishments, then turn the conversation over to CEO, Tom Harty, who'll update you on the integration of Time Inc. and the strategies that we're pursuing to maximize our new and exciting National Media portfolio, and provide detail on our very robust Local Media Group operations. CFO Joe Ceryanec will then discuss our first quarter fiscal 2019 results and provide our financial outlook for both our second fiscal quarter and the full year ended June 30, 2019.

During the first quarter, we delivered EBITDA results that exceeded expectations. That performance was driven by two key factors; first, our National Media Group delivered improved advertising performance and strong expense discipline that drove significantly improved year-over-year EBITDA and margin. We expect continued margin expansion in our National Media Group throughout the balance of fiscal 2019.

Second, our Local Media Group delivered a record $36 million of political advertising revenue. With the elections just ending last night, we expect fiscal second quarter political advertising to range from $60 million to $65 million. All told, we now expect political advertising revenues to total between $95 million and $100 million for the first half of fiscal 2019, significantly exceeding the record $63 million we generated in all of fiscal 2017.

Beyond those two key accomplishments, we also generated more than $300 million of consumer related revenue, accounting for 40% of total Meredith revenue. Consumer related revenue is a very important component to our strategy going forward, and we've made changes to our income statement presentation to reflect those initiatives.

We also made significant progress on our asset sales. That includes announcing and then later