Delaware | 001-36230 | 38-3919441 | |||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) | |||
160 N. Stetson Avenue Chicago, Illinois 60601 | |||||
(Address of Principal Executive Offices) (Zip Code) | |||||
(b) | Pro Forma Information. |
(d) | Exhibits. |
Exhibit No. | Description | |
99.1 | ||
99.2 |
TRONC, INC. | ||
By: | /s/ Julie K. Xanders | |
Date: June 20, 2018 | Name: | Julie K. Xanders |
Title: | Executive Vice President, General Counsel and Secretary |
tronc, Inc. | Forsalebyowner.com | California Properties | Debt Repayment | Proforma | ||||||||||||||||
Assets | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash | $ | 162,731 | $ | (38 | ) | (a) | $ | (5,990 | ) | (b) | $ | (347,981 | ) | (e) | $ | 242,915 | ||||
2,275 | (c) | 474,518 | (d) | (42,600 | ) | (f) | ||||||||||||||
Accounts receivable, net | 153,533 | (27 | ) | (a) | (41,630 | ) | (b) | — | 111,876 | |||||||||||
Inventories | 13,277 | (62 | ) | (a) | (4,522 | ) | (b) | — | 8,693 | |||||||||||
Prepaid expenses and other | 26,870 | (1 | ) | (a) | (3,123 | ) | (b) | — | 23,746 | |||||||||||
Total current assets | 356,411 | 2,147 | 419,253 | (390,581 | ) | 387,230 | ||||||||||||||
Property, plant and equipment | ||||||||||||||||||||
Machinery, equipment and furniture | 130,289 | (973 | ) | (a) | (12,481 | ) | (b) | — | 116,835 | |||||||||||
Buildings and leasehold improvements | 43,246 | — | (5,648 | ) | (b) | — | 37,598 | |||||||||||||
173,535 | (973 | ) | (18,129 | ) | — | 154,433 | ||||||||||||||
Accumulated depreciation | (77,788 | ) | 517 | (a) | 8,379 | (b) | (68,892 | ) | ||||||||||||
95,747 | (456 | ) | (9,750 | ) | — | 85,541 | ||||||||||||||
Advance payments on property, plant and equipment | 14,007 | — | (873 | ) | (b) | — | 13,134 | |||||||||||||
Property, plant and equipment, net | 109,754 | (456 | ) | (10,623 | ) | — | 98,675 | |||||||||||||
Other assets | ||||||||||||||||||||
Goodwill | 203,464 | (100 | ) | (a) | (76,990 | ) | (b) | — | 126,374 | |||||||||||
Intangible assets, net | 144,078 | — | (59,057 | ) | (b) | — | 85,021 | |||||||||||||
Software, net | 39,774 | — | (199 | ) | (b) | — | 39,575 | |||||||||||||
Restricted cash | — | — | — | 42,600 | (f) | 42,600 | ||||||||||||||
Deferred income taxes | 28,886 | 113 | (a) | (28,996 | ) | (b) | — | 3 | ||||||||||||
Other long-term assets | 30,818 | — | (1,844 | ) | (b) | — | 28,974 | |||||||||||||
Total other assets | 447,020 | 13 | (167,086 | ) | 42,600 | 322,547 | ||||||||||||||
Total assets | $ | 913,185 | $ | 1,704 | $ | 241,544 | $ | (347,981 | ) | $ | 808,452 |
tronc, Inc. | Forsalebyowner.com | California Properties | Debt Repayment | Proforma | ||||||||||||||||
Liabilities and stockholders’ equity | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Current portion of long-term debt | $ | 21,829 | $ | — | $ | (342 | ) | (b) | $ | (21,090 | ) | (e) | $ | 397 | ||||||
Accounts payable | 75,281 | (49 | ) | (a) | (10,048 | ) | (b) | — | 65,184 | |||||||||||
Employee compensation and benefits | 56,421 | (31 | ) | (a) | (11,506 | ) | (b) | — | 44,884 | |||||||||||
Deferred revenue | 79,740 | (61 | ) | (a) | (22,715 | ) | (b) | — | 56,964 | |||||||||||
Other current liabilities | 24,291 | 578 | (g) | (2,704 | ) | (b) | (2,161 | ) | (g) | 127,440 | ||||||||||
107,436 | (g) | |||||||||||||||||||
Total current liabilities | 257,562 | 437 | 60,121 | (23,251 | ) | 294,869 | ||||||||||||||
Non-current liabilities | ||||||||||||||||||||
Long-term debt | 326,979 | — | (728 | ) | (b) | (319,174 | ) | (e) | 7,077 | |||||||||||
Deferred revenue | 3,534 | — | — | — | 3,534 | |||||||||||||||
Pension and postretirement benefits payable | 104,494 | — | (84,412 | ) | (b) | — | 20,082 | |||||||||||||
Other obligations | 90,201 | — | (25,522 | ) | (b) | — | 64,679 | |||||||||||||
Total non-current liabilities | 525,208 | — | (110,662 | ) | (319,174 | ) | 95,372 | |||||||||||||
Noncontrolling interest | 42,062 | — | — | — | 42,062 | |||||||||||||||
Stockholders' equity | 88,353 | 1,267 | (h) | 292,085 | (h) | (5,556 | ) | (h) | 376,149 | |||||||||||
Total liabilities and stockholders’ equity | $ | 913,185 | $ | 1,704 | $ | 241,544 | $ | (347,981 | ) | $ | 808,452 |
tronc, Inc. | Forsalebyowner.com | California Properties | Debt Repayment | Proforma | ||||||||||||||||
Operating revenues | $ | 355,616 | $ | (922 | ) | (i) | $ | (116,122 | ) | (j) | $ | — | $ | 238,572 | ||||||
Operating expenses: | ||||||||||||||||||||
Compensation | 144,537 | (325 | ) | (i) | (33,232 | ) | (j) | — | 110,980 | |||||||||||
Newsprint and ink | 22,034 | — | (7,435 | ) | (j) | — | 14,599 | |||||||||||||
Outside services | 130,559 | (266 | ) | (i) | (31,265 | ) | (j) | — | 99,028 | |||||||||||
Other operating expenses | 62,598 | (61 | ) | (i) | (29,580 | ) | (j) | — | 32,957 | |||||||||||
Depreciation and amortization | 14,649 | (63 | ) | (i) | (1,567 | ) | (j) | — | 13,019 | |||||||||||
Total operating expenses | 374,377 | (715 | ) | (103,079 | ) | — | 270,583 | |||||||||||||
Loss from operations | (18,761 | ) | (207 | ) | (13,043 | ) | — | (32,011 | ) | |||||||||||
Interest expense, net | (6,594 | ) | — | 30 | (j) | 6,620 | (k) | 56 | ||||||||||||
Loss on equity investments, net | (729 | ) | — | — | — | (729 | ) | |||||||||||||
Other income, net | 4,388 | — | (725 | ) | — | 3,663 | ||||||||||||||
Loss before income taxes | (21,696 | ) | (207 | ) | (13,738 | ) | 6,620 | (29,021 | ) | |||||||||||
Income tax benefit | (7,185 | ) | (58 | ) | (i) | (3,845 | ) | (j) | 1,852 | (l) | (9,236 | ) | ||||||||
Net loss | (14,511 | ) | (149 | ) | (9,893 | ) | 4,768 | (19,785 | ) | |||||||||||
Less: Income attributable to noncontrolling interest | 262 | — | — | — | 262 | |||||||||||||||
Net loss attributable to tronc common stockholders | $ | (14,773 | ) | $ | (149 | ) | $ | (9,893 | ) | $ | 4,768 | $ | (20,047 | ) | ||||||
Net loss attributable to tronc common share: | ||||||||||||||||||||
Basic | $ | (0.42 | ) | $ | (0.58 | ) | ||||||||||||||
Diluted | $ | (0.42 | ) | $ | (0.58 | ) | ||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 34,801 | 34,801 | ||||||||||||||||||
Diluted | 34,801 | 34,801 |
tronc, Inc. | Forsalebyowner.com | California Properties | Debt Repayment | Proforma | ||||||||||||||||
Operating revenues | $ | 1,524,018 | $ | (4,407 | ) | (i) | $ | (503,975 | ) | (j) | $ | — | $ | 1,015,636 | ||||||
Operating expenses: | ||||||||||||||||||||
Compensation | 549,363 | (2,968 | ) | (i) | (141,879 | ) | (j) | — | 404,516 | |||||||||||
Newsprint and ink | 94,340 | — | (35,099 | ) | (j) | — | 59,241 | |||||||||||||
Outside services | 468,044 | (2,717 | ) | (i) | (133,900 | ) | (j) | — | 331,427 | |||||||||||
Other operating expenses | 288,986 | (3,824 | ) | (i) | (122,011 | ) | (j) | — | 163,151 | |||||||||||
Depreciation and amortization | 56,696 | (250 | ) | (i) | (7,313 | ) | (j) | — | 49,133 | |||||||||||
Total operating expenses | 1,457,429 | (9,759 | ) | (440,202 | ) | — | 1,007,468 | |||||||||||||
Income from operations | 66,589 | 5,352 | (63,773 | ) | — | 8,168 | ||||||||||||||
Interest expense, net | (26,481 | ) | — | 147 | (j) | 25,826 | (k) | (508 | ) | |||||||||||
Premium on stock buyback | (6,031 | ) | — | — | — | (6,031 | ) | |||||||||||||
Income (loss) on equity investments, net | 3,139 | — | (5,842 | ) | (j) | — | (2,703 | ) | ||||||||||||
Income (loss) before income taxes | 37,216 | 5,352 | (69,468 | ) | 25,826 | (1,074 | ) | |||||||||||||
Income tax expense | 31,681 | 2,181 | (i) | (28,305 | ) | (j) | 10,523 | (l) | 16,080 | |||||||||||
Net income (loss) | $ | 5,535 | $ | 3,171 | $ | (41,163 | ) | $ | 15,303 | $ | (17,154 | ) | ||||||||
Net income (loss) per common share: | ||||||||||||||||||||
Basic | $ | 0.16 | $ | (0.50 | ) | |||||||||||||||
Diluted | $ | 0.16 | $ | (0.50 | ) | |||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 33,996 | 33,996 | ||||||||||||||||||
Diluted | 34,285 | 33,996 |
tronc, Inc. | Forsalebyowner.com | California Properties | Proforma | |||||||||||||
Operating revenues | $ | 1,606,378 | $ | (10,601 | ) | (i) | $ | (532,408 | ) | (j) | $ | 1,063,369 | ||||
Operating expenses: | ||||||||||||||||
Compensation | 597,293 | (3,820 | ) | (i) | (149,952 | ) | (j) | 443,521 | ||||||||
Newsprint and ink | 103,906 | — | (41,378 | ) | (j) | 62,528 | ||||||||||
Outside services | 494,478 | (2,713 | ) | (i) | (145,073 | ) | (j) | 346,692 | ||||||||
Other operating expenses | 300,089 | (5,059 | ) | (i) | (119,072 | ) | (j) | 175,958 | ||||||||
Depreciation and amortization | 57,499 | (110 | ) | (i) | (6,026 | ) | (j) | 51,363 | ||||||||
Total operating expenses | 1,553,265 | (11,702 | ) | (461,501 | ) | 1,080,062 | ||||||||||
Income (loss) from operations | 53,113 | 1,101 | (70,907 | ) | (16,693 | ) | ||||||||||
Interest expense, net | (26,703 | ) | — | 142 | (j) | (26,561 | ) | |||||||||
Income (loss) on equity investments, net | (690 | ) | — | (797 | ) | (j) | (1,487 | ) | ||||||||
Reorganization items, net | (259 | ) | — | — | (259 | ) | ||||||||||
Income (loss) before income taxes | 25,461 | 1,101 | (71,562 | ) | (45,000 | ) | ||||||||||
Income tax expense (benefit) | 18,924 | 449 | (i) | (29,159 | ) | (j) | (9,786 | ) | ||||||||
Net income (loss) | $ | 6,537 | $ | 652 | $ | (42,403 | ) | $ | (35,214 | ) | ||||||
Net income (loss) per common share: | ||||||||||||||||
Basic | $ | 0.19 | $ | (1.04 | ) | |||||||||||
Diluted | $ | 0.19 | $ | (1.04 | ) | |||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 33,788 | 33,788 | ||||||||||||||
Diluted | 33,935 | 33,788 |
tronc, Inc. | Forsalebyowner.com | California Properties | Proforma | |||||||||||||
Operating revenues | $ | 1,672,820 | $ | (12,879 | ) | (i) | $ | (514,056 | ) | (j) | $ | 1,145,885 | ||||
Operating expenses: | ||||||||||||||||
Compensation | 649,905 | (2,428 | ) | (i) | (165,251 | ) | (j) | 482,226 | ||||||||
Newsprint and ink | 122,339 | — | (44,084 | ) | (j) | 78,255 | ||||||||||
Outside services | 513,896 | (2,569 | ) | (i) | (144,498 | ) | (j) | 366,829 | ||||||||
Other operating expenses | 307,080 | (5,264 | ) | (i) | (109,888 | ) | (j) | 191,928 | ||||||||
Depreciation and amortization | 54,633 | (101 | ) | (i) | (3,565 | ) | (j) | 50,967 | ||||||||
Total operating expenses | 1,647,853 | (10,362 | ) | (467,286 | ) | 1,170,205 | ||||||||||
Income (loss) from operations | 24,967 | (2,517 | ) | (46,770 | ) | (24,320 | ) | |||||||||
Interest expense, net | (25,972 | ) | — | 75 | (j) | (25,897 | ) | |||||||||
Loss on equity investments, net | (1,164 | ) | — | (531 | ) | (j) | (1,695 | ) | ||||||||
Reorganization items, net | (1,026 | ) | — | — | (1,026 | ) | ||||||||||
Loss before income taxes | (3,195 | ) | (2,517 | ) | (47,226 | ) | (52,938 | ) | ||||||||
Income tax benefit | (430 | ) | (1,025 | ) | (i) | (19,242 | ) | (j) | (20,697 | ) | ||||||
Net loss | $ | (2,765 | ) | $ | (1,492 | ) | $ | (27,984 | ) | $ | (32,241 | ) | ||||
Net loss per common share: | ||||||||||||||||
Basic | $ | (0.11 | ) | $ | (1.24 | ) | ||||||||||
Diluted | $ | (0.11 | ) | $ | (1.24 | ) | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 25,990 | 25,990 | ||||||||||||||
Diluted | 25,990 | 25,990 |
(a) | To eliminate the assets and liabilities of Forsalebyowner.com. |
(b) | To eliminate the assets and liabilities of the California Properties. |
(c) | The cash adjustment amount includes gross proceeds of $2.5 million received from the sale of Forsalebyowner.com on May 23, 2018 and is decreased by selling expenses requiring payment at closing, which total approximately $0.2 million. |
(d) | The cash adjustment amount includes gross proceeds of $500.0 million received from the sale of the California Properties on June 18, 2018 and is decreased by preliminary working capital adjustments and selling expenses requiring payment at closing, which total approximately $25.5 million. |
(e) | The cash and long-term debt adjustment amounts represent repayment of the long-term debt. |
(f) | The cash and restricted cash adjustment amounts represent the cash collateralization of the outstanding letters of credit related to the termination of the ABL Credit Agreement. |
(g) | Other current liabilities adjustments represent estimated taxes payable related to the sale of Forsalebyowner.com, and the California Properties, offset by the estimated tax benefit related tot he loss on the early repayment of debt, calculated at the statutory rate. |
(h) | Stockholders’ equity was adjusted as a result of adjustments (a) through (f), which represents the estimated after-tax gain on the dispositions of Foresalebyowner.com and the California Properties, net of the estimated after-tax loss on the early repayment of debt. |
(i) | To eliminate the revenues and expenses of Forsalebyowner.com. |
(j) | To eliminate the revenues and expenses of the California Properties. |
(k) | To eliminate the interest expense related to the long-term debt repaid with the proceeds from the sale of the California Properties. |
(l) | Estimated income tax effect of the repayment of long-term debt. |