UNITED STATES SECURITIES AND EXCHANGE COMMISSION | ||
Washington, D.C. 20549 |
CURRENT REPORT | ||
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 |
Date of Report (Date of earliest event reported): |
November 12, 2021
|
MEREDITH CORPORATION | ||||||||
(Exact name of registrant as specified in its charter) | ||||||||
Iowa | 001-05128 | 42-0410230 | ||||||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
1716 Locust Street, | Des Moines, | Iowa | 50309-3023 | |||||||||||
(Address of principal executive offices) | (ZIP Code) |
Registrant’s telephone number, including area code:
|
(515) | 284-3000 | ||||||
Former name or former address, if changed since last report: Not applicable
|
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||||||||
Common Stock, par value $1 | MDP | New York Stock Exchange |
Item 8.01 | Other Events |
Item 9.01 | Financial Statements and Exhibits |
(d) | Exhibits | ||||||||||
Pro Forma Financial Information | |||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL) |
SIGNATURE | |||||||||||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |
MEREDITH CORPORATION | ||||||||
Registrant | ||||||||
/s/ Jason Frierott | ||||||||
Jason Frierott | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) | ||||||||
Date: November 12, 2021
|
Transaction Accounting Adjustments | |||||||||||||||||
Assets |
(a)
As Originally Reported |
(b)
Separation Adjustments |
(c)
Other |
Pro Forma | |||||||||||||
(In millions) | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | $ | 269.0 | $ | (0.3) | $ | (877.0) |
(1)
|
$ | 48.1 | ||||||||
695.0 |
(2)
|
||||||||||||||||
(38.6) |
(3)
|
||||||||||||||||
Accounts receivable, net | 501.3 | (134.8) | — | 366.5 | |||||||||||||
Inventories | 29.7 | — | — | 29.7 | |||||||||||||
Current portion of subscription acquisition costs | 226.2 | — | — | 226.2 | |||||||||||||
Other current assets | 58.0 | (17.3) | — | 40.7 | |||||||||||||
Total current assets
|
1,084.2 | (152.4) | (220.6) | 711.2 | |||||||||||||
Property, plant, and equipment | 865.9 | (337.2) | — | 528.7 | |||||||||||||
Less accumulated depreciation | (518.8) | 223.7 | — | (295.1) | |||||||||||||
Net property, plant, and equipment | 347.1 | (113.5) | — | 233.6 | |||||||||||||
Operating lease assets | 364.3 | (20.1) | — | 344.2 | |||||||||||||
Subscription acquisition costs | 178.5 | — | — | 178.5 | |||||||||||||
Other assets | 264.8 | (9.7) | (2.3) |
(2)
|
259.3 | ||||||||||||
6.5 |
(2)
|
||||||||||||||||
Intangible assets, net | 1,545.2 | (717.2) | — | 828.0 | |||||||||||||
Goodwill | 1,719.2 | (81.4) | — | 1,637.8 | |||||||||||||
Total assets
|
$ | 5,503.3 | $ | (1,094.3) | $ | (216.4) | $ | 4,192.6 |
Transaction Accounting Adjustments | |||||||||||||||||
Liabilities and Shareholders' Equity |
(a)
As Originally Reported |
(b)
Separation Adjustments |
(c)
Other |
Pro Forma | |||||||||||||
(In millions except per share data) | |||||||||||||||||
Current liabilities | |||||||||||||||||
Current portion of long-term debt | $ | 4.1 | $ | — | $ | (4.1) | (1) | $ | 18.1 | ||||||||
18.1 |
(2)
|
||||||||||||||||
Current portion of operating lease liabilities | 36.5 | (2.0) | — | 34.5 | |||||||||||||
Accounts payable | 195.1 | (26.7) | — | 168.4 | |||||||||||||
Accrued expenses and other liabilities | 140.5 | (60.3) | 66.9 |
(4)
|
147.1 | ||||||||||||
Current portion of unearned revenues | 401.3 | (5.3) | — | 396.0 | |||||||||||||
Total current liabilities
|
777.5 | (94.3) | 80.9 | 764.1 | |||||||||||||
Long-term debt | 2,743.5 | — | (2,743.5) |
(1)
|
683.4 | ||||||||||||
683.4 |
(2)
|
||||||||||||||||
Operating lease liabilities | 425.0 | (18.3) | — | 406.7 | |||||||||||||
Unearned revenues | 215.6 | — | — | 215.6 | |||||||||||||
Deferred income taxes | 462.4 | — | (66.9) |
(4)
|
395.5 | ||||||||||||
Other noncurrent liabilities | 198.8 | (8.8) | — | 190.0 | |||||||||||||
Total liabilities
|
4,822.8 | (121.4) | (2,046.1) | 2,655.3 | |||||||||||||
Shareholders' equity | |||||||||||||||||
Series preferred stock, par value $1 per share | — | — | — | — | |||||||||||||
Common stock, par value $1 per share | 40.7 | — | — | 40.7 | |||||||||||||
Class B stock, par value $1 per share, convertible to common stock | 5.1 | — | — | 5.1 | |||||||||||||
Additional paid-in capital | 185.7 | — | 7.8 |
(5)
|
193.5 | ||||||||||||
Retained earnings | 531.1 | (971.2) | 1,680.8 |
(3)
|
1,381.8 | ||||||||||||
972.9 |
(3)
|
||||||||||||||||
(824.0) |
(3)
|
||||||||||||||||
(7.8) | (5) | ||||||||||||||||
Accumulated other comprehensive loss | (82.1) | (1.7) | — | (83.8) | |||||||||||||
Total shareholders' equity | 680.5 | (972.9) | 1,829.7 | 1,537.3 | |||||||||||||
Total liabilities and shareholders' equity | $ | 5,503.3 | $ | (1,094.3) | $ | (216.4) | $ | 4,192.6 |
Transaction Accounting Adjustments | ||||||||||||||||||||
(In millions except per share data) |
(a)
As Originally Reported |
(b)
Separation Adjustments |
(c)
Other |
(d)
Autonomous Entity Adjustments |
Pro Forma | |||||||||||||||
Revenues | ||||||||||||||||||||
Advertising related | $ | 338.2 | $ | (81.6) | $ | — | $ | — | $ | 256.6 | ||||||||||
Consumer related | 345.9 | (96.8) | — | — | 249.1 | |||||||||||||||
Other | 24.5 | (3.7) | — | — | 20.8 | |||||||||||||||
Total revenues | 708.6 | (182.1) | — | — | 526.5 | |||||||||||||||
Operating expenses
|
||||||||||||||||||||
Production, distribution, and editorial | 266.4 | (95.4) | — | — | 171.0 | |||||||||||||||
Selling, general, and administrative | 319.0 | (36.5) | (4.1) |
(6)
|
3.2 | 281.6 | ||||||||||||||
Acquisition, disposition, and restructuring related activities | 18.4 | — | — | — | 18.4 | |||||||||||||||
Depreciation and amortization | 28.8 | (6.6) | — | — | 22.2 | |||||||||||||||
Total operating expenses | 632.6 | (138.5) | (4.1) | 3.2 | 493.2 | |||||||||||||||
Income from operations
|
76.0 | (43.6) | 4.1 | (3.2) | 33.3 | |||||||||||||||
Non-operating income, net | 1.5 | (0.3) | — | — | 1.2 | |||||||||||||||
Interest expense, net | (38.3) | — | 27.1 |
(2)
|
— | (11.2) | ||||||||||||||
Earnings from continuing operations before income taxes | 39.2 | (43.9) | 31.2 | (3.2) | 23.3 | |||||||||||||||
Income tax expense | (14.4) | 11.2 | (8.0) |
(7)
|
0.8 | (10.4) | ||||||||||||||
Earnings from continuing operations
|
$ | 24.8 | $ | (32.7) | $ | 23.2 | $ | (2.4) | $ | 12.9 | ||||||||||
Earnings from continuing operations | $ | 24.3 | $ | (32.7) | $ | 23.2 | $ | (2.4) | $ | 12.7 | ||||||||||
attributable to common shareholders | 0.3 | (8) | ||||||||||||||||||
Basic earnings per share attributable to common shareholders
|
||||||||||||||||||||
Continuing operations | $ | 0.52 | $ | 0.27 | ||||||||||||||||
Basic average common shares outstanding | 46.5 | 46.5 | ||||||||||||||||||
Diluted earnings per share attributable to common shareholders
|
||||||||||||||||||||
Continuing operations | $ | 0.51 | $ | 0.27 | ||||||||||||||||
Diluted average common shares outstanding | 47.2 | 47.1 |
Transaction Accounting Adjustments | ||||||||||||||||||||
(In millions except per share data) |
(e)
As Originally Reported |
(b)
Separation Adjustments |
(c)
Other |
(d)
Autonomous Entity Adjustments |
Pro Forma | |||||||||||||||
Revenues | ||||||||||||||||||||
Advertising related | $ | 1,525.6 | $ | (475.9) | $ | — | $ | — | $ | 1,049.7 | ||||||||||
Consumer related | 1,370.6 | (377.8) | — | — | 992.8 | |||||||||||||||
Other | 81.2 | (14.9) | — | — | 66.3 | |||||||||||||||
Total revenues | 2,977.4 | (868.6) | — | — | 2,108.8 | |||||||||||||||
Operating expenses
|
||||||||||||||||||||
Production, distribution, and editorial | 1,024.5 | (362.4) | — | — | 662.1 | |||||||||||||||
Selling, general, and administrative | 1,278.3 | (161.6) | 7.8 |
(5)
|
10.8 | 1,128.6 | ||||||||||||||
(6.7) | (6) | |||||||||||||||||||
Acquisition, disposition, and restructuring related activities | (49.8) | (7.3) | — | — | (57.1) | |||||||||||||||
Depreciation and amortization | 163.0 | (28.6) | — | — | 134.4 | |||||||||||||||
Total operating expenses | 2,416.0 | (559.9) | 1.1 | 10.8 | 1,868.0 | |||||||||||||||
Income from operations
|
561.4 | (308.7) | (1.1) | (10.8) | 240.8 | |||||||||||||||
Non-operating income, net | 10.8 | (1.0) | — | 0.4 | 10.2 | |||||||||||||||
Interest expense, net | (178.6) | 0.2 | 24.8 |
(2)
|
— | (153.6) | ||||||||||||||
Earnings from continuing operations before income taxes | 393.6 | (309.5) | 23.7 | (10.4) | 97.4 | |||||||||||||||
Income tax expense | (87.0) | 78.9 | (6.0) |
(7)
|
2.6 | (11.5) | ||||||||||||||
Earnings from continuing operations
|
$ | 306.6 | $ | (230.6) | $ | 17.7 | $ | (7.8) | $ | 85.9 | ||||||||||
Earnings from continuing operations | $ | 291.4 | $ | (230.6) | $ | 17.7 | $ | (7.8) | $ | 82.0 | ||||||||||
attributable to common shareholders | 11.3 | (8) | ||||||||||||||||||
Basic earnings per share attributable to common shareholders
|
||||||||||||||||||||
Continuing operations | $ | 6.31 | $ | 1.77 | ||||||||||||||||
Basic average common shares outstanding | 46.2 | 46.2 | ||||||||||||||||||
Diluted earnings per share attributable to common shareholders
|
||||||||||||||||||||
Continuing operations | $ | 6.27 | $ | 1.76 | ||||||||||||||||
Diluted average common shares outstanding | 46.5 | 46.4 |
(In millions except per share data) |
(e)
As Originally Reported |
(f)
Reclassification Adjustments |
Pro Forma | ||||||||
Revenues | |||||||||||
Advertising related | $ | 1,399.0 | $ | (330.5) | $ | 1,068.5 | |||||
Consumer related | 1,348.7 | (347.9) | 1,000.8 | ||||||||
Other | 100.9 | (13.5) | 87.4 | ||||||||
Total revenues | 2,848.6 | (691.9) | 2,156.7 | ||||||||
Operating expenses
|
|||||||||||
Production, distribution, and editorial | 1,047.6 | (342.9) | 704.7 | ||||||||
Selling, general, and administrative | 1,259.1 | (145.6) | 1,113.5 | ||||||||
Acquisition, disposition, and restructuring related activities | 26.8 | (2.3) | 24.5 | ||||||||
Depreciation and amortization | 219.9 | (34.3) | 185.6 | ||||||||
Impairment of goodwill and other long-lived assets | 389.3 | (22.3) | 367.0 | ||||||||
Total operating expenses | 2,942.7 | (547.4) | 2,395.3 | ||||||||
Loss from operations
|
(94.1) | (144.5) | (238.6) | ||||||||
Non-operating expense, net | (1.3) | (1.0) | (2.3) | ||||||||
Interest expense, net | (145.8) | 1.3 | (144.5) | ||||||||
Loss from continuing operations before income taxes | (241.2) | (144.2) | (385.4) | ||||||||
Income tax benefit | 32.2 | 36.8 | 69.0 | ||||||||
Loss from continuing operations
|
$ | (209.0) | $ | (107.4) | $ | (316.4) | |||||
Loss from continuing operations attributable to common shareholders
|
$ | (450.7) | $ | (107.4) | $ | (558.1) | |||||
Basic loss per share attributable to common shareholders
|
|||||||||||
Continuing operations | $ | (9.85) | $ | (12.21) | |||||||
Basic average common shares outstanding | 45.7 | 45.7 | |||||||||
Diluted loss per share attributable to common shareholders
|
|||||||||||
Continuing operations | $ | (9.85) | $ | (12.21) | |||||||
Diluted average common shares outstanding | 45.7 | 45.7 |
(In millions except per share data) |
(e)
As Originally Reported |
(f)
Reclassification Adjustments |
Pro Forma | ||||||||
Revenues | |||||||||||
Advertising related | $ | 1,686.6 | $ | (449.4) | $ | 1,237.2 | |||||
Consumer related | 1,416.8 | (316.5) | 1,100.3 | ||||||||
Other | 85.1 | (9.1) | 76.0 | ||||||||
Total revenues | 3,188.5 | (775.0) | 2,413.5 | ||||||||
Operating expenses
|
|||||||||||
Production, distribution, and editorial | 1,161.2 | (320.7) | 840.5 | ||||||||
Selling, general, and administrative | 1,350.0 | (149.2) | 1,200.8 | ||||||||
Acquisition, disposition, and restructuring related activities | 100.9 | (1.0) | 99.9 | ||||||||
Depreciation and amortization | 247.6 | (32.1) | 215.5 | ||||||||
Impairment of goodwill and other long-lived assets | 41.8 | — | 41.8 | ||||||||
Total operating expenses | 2,901.5 | (503.0) | 2,398.5 | ||||||||
Income from operations
|
287.0 | (272.0) | 15.0 | ||||||||
Non-operating income, net | 24.2 | (2.1) | 22.1 | ||||||||
Interest expense, net | (170.6) | — | (170.6) | ||||||||
Earnings (loss) from continuing operations before income taxes | 140.6 | (274.1) | (133.5) | ||||||||
Income tax benefit (expense) | (11.5) | 69.9 | 58.4 | ||||||||
Earnings (loss) from continuing operations | $ | 129.1 | $ | (204.2) | $ | (75.1) | |||||
Earnings (loss) from continuing operations attributable to common shareholders
|
$ | 50.8 | $ | (204.2) | $ | (153.4) | |||||
Basic earnings (loss) per share attributable to common shareholders
|
|||||||||||
Continuing operations | $ | 1.12 | $ | (3.39) | |||||||
Basic average common shares outstanding | 45.3 | 45.3 | |||||||||
Diluted earnings (loss) per share attributable to common shareholders
|
|||||||||||
Continuing operations | $ | 1.12 | $ | (3.39) | |||||||
Diluted average common shares outstanding | 45.5 | 45.3 |
Facility |
Pro forma outstanding
as of September 30, 2021
(In millions)
|
Interest terms(1)
|
Pro forma interest expense(2)
(In millions)
|
|||||||||||||||||
Principal balance | Unamortized debt issuance costs | Carrying value |
Three months ended
September 30, 2021 |
Year ended June 30, 2021 | ||||||||||||||||
$725 million term loan | $ | 725.0 | $ | (23.5) | $ | 701.5 |
L+5.25%(3)
|
$ | 10.9 | $ | 44.3 | |||||||||
$200 million revolving credit facility | — | (6.5) | (6.5) | L+5.25% | 0.3 | 1.3 | ||||||||||||||
Total long-term debt | 725.0 | (30.0) | 695.0 | $ | 11.2 | $ | 45.6 | |||||||||||||
Reclass revolver debt issuance costs (4)
|
— | 6.5 | 6.5 | |||||||||||||||||
Current portion of long-term debt | (18.1) | — | (18.1) | |||||||||||||||||
Long-term debt | $ | 706.9 | $ | (23.5) | $ | 683.4 |
(In millions) | Three months ended September 30, 2021 |
Year ended
June 30, 2021 |
||||||
Interest expense on historical debt facilities | $ | (38.3) | $ | (178.4) | ||||
Interest expense on new debt facilities | 11.2 | 45.6 | ||||||
Debt breakage fees | — | 63.0 | ||||||
Acceleration of amortization of debt issuance costs relating to debt repaid in connection with the Transactions | — | 42.7 | ||||||
Acceleration of amortization of debt issuance costs relating to terminated revolving credit facility ($0 outstanding) | — | 2.3 | ||||||
Net interest expense adjustment | $ | (27.1) | $ | (24.8) |