SAN ANTONIO–(BUSINESS WIRE)–iHeartMedia, Inc. (NASDAQ: IHRT) today reported financial results for the quarter ended June 30, 2019. IHRT successfully emerged from Chapter 11 on May 1, 2019 with a streamlined capital structure and completed the listing of its shares on the NASDAQ stock exchange (ticker: “IHRT”) on July 18, 2019.
Financial Highlights
Second Quarter
- Revenue of $913.3 million, up 2.4% year-over-year
– Excluding political revenue1, revenue increased 3.9%
– Digital revenue increased 32.8% year-over-year
- Operating income of $181.6 million was up 0.2% year-over-year
- Adjusted EBITDA1 of $262.9 million, up 3.2% year-over-year
– Adjusted EBITDA margins1 improved to 28.8% from 28.6%, up 20 basis points year-over-year
Year-to-Date
- Revenue of $1,709.1 million, up 2.7% year-over-year
– Excluding political revenue1, revenue increased 3.7%
– Digital revenue increased 30.6% year-over-year
- Operating income of $200.7 million was down from $243.3 million in the six months ended June 30, 2018 due to non-cash impairment charge of $91.4 million in first quarter of 2019
- Adjusted EBITDA1 of $419.9 million, up 6.4% year-over-year
– Adjusted EBITDA margins1 improved to 24.6% from 23.7%, up 90 basis points year-over-year
2019 Full Year Guidance
- Reaffirming consolidated revenue growth of low single digits
- Adjusted EBITDA margins expected to be 27-29%
- Expect to generate free cash flow of $250-$275 million in the second half of the year, resulting in expected cash at year-end of $375-$400 million
– Available cash anticipated to be used primarily for debt reduction
1See Supplemental Disclosure Regarding Non-GAAP Financial Information.
“iHeartMedia is the number one audio company in America and the only true multi-platform audio company able to reach consumers at scale,” said Bob Pittman, Chairman and CEO of iHeartMedia, Inc. “There are two segments of the audio sector — radio, which provides companionship and connection when people want to join the world; and the music collection segment, which people use when they want to tune out and escape the world. As the leader in the radio, or companionship, segment of the audio sector, iHeartMedia uses its unparalleled reach and consumer connection to deliver a compelling experience for our audiences and revenue opportunities across our multiple platforms. As we look ahead, iHeartMedia intends to increase our share of radio advertising spend, participate in TV and digital advertising revenue pools, extend our leadership in podcasting and drive sponsorship revenue.”
“We successfully emerged from Chapter 11 on May 1, 2019 and are pleased that the restructuring process resulted in a capital structure that matches our successful operating business. We now have an iHeart business that will focus exclusively on increasing our lead as the number one audio company in the U.S. As demonstrated in our results, iHeartMedia’s increased revenue and overall positive financial performance reflects the resilience and growth of our businesses and the value of our recent investments, particularly in podcasting and data and analytics,” said Rich Bressler, President, Chief Operating Officer, and Chief Financial Officer. “We are focused on building long-term shareholder value through a combination of operational and capital structure initiatives and we are prioritizing de-leveraging in our capital allocation policies.”
Key Operational Highlights
Continued to outperform the broadcast radio industry
- Outperformed the broadcast radio industry by over 350 basis points this year alone, according to Miller Kaplan.
- iHeartMedia is ranked #1 in over 4 times more markets than the next largest broadcast group in its top 160 markets.
- iHeartMedia reaches 275 million Americans – more than the top two closest broadcast radio competitors combined.
Extended leadership in the fast-growing podcast segment
- #1 commercial podcaster in America measured by monthly downloads and unique listeners as measured by Podtrac.
- More than 300% growth in podcast listeners on the iHeartRadio app in the last year.
- Expanded unique monthly podcast audience by 277% year over year – faster than any other major company.
- Launched new original podcasts on iHeartRadio, including “Insomniac,” hosted by Scott Benjamin, “Sleepwalkers,” hosted by Emmy and Peabody Award winner Oz Woloshyn and co-hosted by Karah Preiss, former host of The Huffington Post science show “Talk Nerdy To Me,” and “Life Will Be the Death of Me,” hosted by comedian Chelsea Handler.
Produced events that enhance artist partnerships, provide crossover promotions for our stations and deliver unique brand building and activation opportunities to advertisers
- Announced the lineup for the “2019 iHeartRadio Music Festival,” the annual two-day event hosted at Las Vegas’ T-Mobile Arena, which will be broadcast live via iHeartMedia radio stations across more than 150 markets and will air on a televised special on The CW Network and will be live-streamed on The CW App.
- Hosted the “2019 iHeartRadio Wango Tango Presented by The JUVÉDERM® Collection of Dermal Fillers” at the Dignity Health Sports Park in Los Angeles, which was exclusively broadcast in a 90-minute television special on Freeform, livestreamed by LiveXLive, and aired on iHeartMedia radio stations across 100 markets.
- Showcased Country music’s biggest superstars at the sixth annual “iHeartCountry Festival Presented by Capital One®” at the Frank Erwin Center in Austin, Texas, which was broadcasted live in over 100+ local markets and on iHeartRadio.com, as well as livestreamed exclusively on LiveXLive.
Expanded our reach through digital and social channels
- Posted our 12th consecutive month of year-over-year total listening hours growth, as of June 2019.
- Finished the quarter with more than 130 million registered users on the iHeartRadio app.
- Recorded 13 million monthly unique visitors on Snapchat and 23 million monthly unique visitors on YouTube.
Consolidated Results of Operations
GAAP and Non-GAAP Measures
|
(In thousands) |
Successor |
|
|
Predecessor |
|
Non-GAAP |
|
Predecessor Company |
|
|
|||||||||
|
|
Period from May |
|
|
Period from April |
|
Three Months |
|
Three Months |
|
% |
|||||||||
|
|
2019 |
|
|
2019 |
|
2019 |
|
2018 |
|
Change |
|||||||||
|
Revenue |
$ |
635,646 |
|
|
|
$ |
277,674 |
|
|
$ |
913,320 |
|
|
$ |
891,764 |
|
|
2.4 |
% |
|
Operating income |
$ |
133,688 |
|
|
|
$ |
47,891 |
|
|
$ |
181,579 |
|
|
$ |
181,239 |
|
|
0.2 |
% |
|
Net income (loss) |
$ |
38,793 |
|
|
|
$ |
11,298,524 |
|
|
$ |
11,337,317 |
|
|
$ |
(69,899 |
) |
|
nm |
|
|
Adjusted EBITDA1 |
$ |
194,753 |
|
|
|
$ |
68,097 |
|
|
$ |
262,850 |
|
|
$ |
254,784 |
|
|
3.2 |
% |
|
(In thousands) |
Successor |
|
|
Predecessor |
|
Non-GAAP |
|
Predecessor |
|
|
|||||||||
|
|
Period from May |
|
|
Period from |
|
Six Months |
|
Six Months |
|
% |
|||||||||
|
|
2019 |
|
|
2019 |
|
2019 |
|
2018 |
|
Change |
|||||||||
|
Revenue |
$ |
635,646 |
|
|
|
$ |
1,073,471 |
|
|
$ |
1,709,117 |
|
|
$ |
1,664,536 |
|
|
2.7 |
% |
|
Operating income |
$ |
133,688 |
|
|
|
$ |
67,040 |
|
|
$ |
200,728 |
|
|
$ |
243,349 |
|
|
(17.5 |
)% |
|
Net income (loss) |
$ |
38,793 |
|
|
|
$ |
11,184,141 |
|
|
$ |
11,222,934 |
|
|
$ |
(486,893 |
) |
|
nm |
|
|
Adjusted EBITDA1 |
$ |
194,753 |
|
|
|
$ |
225,149 |
|
|
$ |
419,902 |
|
|
$ |
394,758 |
|
|
6.4 |
% |
Certain prior period amounts have been reclassified to conform to the 2019 presentation of financial information throughout the press release.
- See the end of this press release for reconciliations of (i) Adjusted EBITDA to net income (loss) and (ii) revenue, excluding political advertising revenue, to revenue. See also the definition of Adjusted EBITDA and Adjusted EBITDA margin under the Supplemental Disclosure section in this release.
- See Supplemental Disclosure Regarding Non-GAAP Financial Information.
As of June 30, 2019, we had 145,274,997 common shares and warrants outstanding, including 56,873,782 shares of Class A Common Stock, 6,947,567 shares of Class B Common Stock and 81,453,648 special warrants. The Class B Common Stock and the special warrants are convertible on a 1:1 basis into shares of Class A Common Stock, upon satisfaction of certain conditions.
Second Quarter 2019 Results
Revenue increased $21.6 million, or 2.4%, during the second quarter of 2019 as compared to the second quarter of 2018. Revenue increased as a result of higher digital revenue which increased $22.5 million driven by growth in podcasting, primarily as a result of our acquisition of Stuff Media in October 2018, as well as other digital revenue, including live radio and other on-demand services. Broadcast spot revenue decreased $7.8 million, primarily driven by an $8.1 million decrease in political revenue as a result of 2018 being a mid-term congressional election year, partially offset by increased programmatic buying by our national customers. Revenue from our Network businesses, including both Premiere and Total Traffic & Weather, increased $8.9 million, and Audio and Media Services revenue decreased $2.9 million as a result of a $4.1 million decrease in political revenue.
Direct operating expenses increased $13.1 million, or 5.0%, during the second quarter of 2019 as compared to the second quarter of 2018. Higher direct operating expenses were driven primarily by higher variable expenses, including digital royalties, content costs and production expenses from higher podcasting and digital subscription revenue. We also incurred a $1.2 million increase as a result of the application of fresh start accounting, and a $1.2 million increase due to the impact of the adoption of the new leasing standard in the first quarter of 2019. SG&A expenses increased $2.5 million, or 0.8%, during the second quarter of 2019 as compared to the second quarter of 2018. Higher employee costs, primarily driven by the acquisitions of Stuff Media and Jelli in the fourth quarter of 2018, were partially offset by lower commissions as a result of our revenue mix and by a $1.3 million impact as a result of the application of fresh start accounting.
Operating income increased $0.3 million, or 0.2%, during the second quarter of 2019 as compared to the second quarter of 2018.
Net income of $11.3 billion during the second quarter of 2019 was driven by a net gain of $9.5 billion recognized in relation to our emergence from bankruptcy and a $1.8 billion gain on disposal of our Outdoor business.
The Company’s Adjusted EBITDA increased 3.2% to $262.9 million during the second quarter of 2019 as compared to the second quarter of 2018.
YTD 2019 Results
Revenue increased $44.6 million, or 2.7%, during the six months ended June 30, 2019 as compared to the six months ended June 30, 2018. The increase in revenue is primarily due to higher digital revenue of $39.1 million driven by growth in podcasting, primarily as a result of our acquisition of Stuff Media in October 2018, as well as other digital revenue, including live radio and other on-demand services and revenue from our Network businesses, including both Premiere and Total Traffic & Weather, which increased $15.0 million. Broadcast spot revenue decreased $10.7 million, primarily due to a $10.9 million decrease in political revenue as a result of 2018 being a mid-term congressional election year. Audio and Media Services revenue decreased $0.9 million due to a $5.1 million decrease in political revenue.
Direct operating expenses increased $39.2 million, or 7.8%, during the six months ended June 30, 2019 as compared to the six months ended June 30, 2018. Higher direct operating expenses were driven primarily by higher digital royalties, content costs and compensation-related expenses from higher podcasting and digital subscription revenue, as well as higher production costs related to our events, including the iHeartRadio Music Awards. We also incurred a $2.4 million increase in lease expense due to the impact of the adoption of the new leasing standard in the first quarter of 2019. SG&A expenses decreased $10.8 million, or 1.6%, during the six months ended June 30, 2019 as compared to the six months ended June 30, 2018. The decrease in our SG&A expenses was due to lower trade and barter expenses, primarily resulting from timing, partially offset by higher employee costs, primarily driven by the acquisitions of Stuff Media and Jelli in the fourth quarter of 2018.
Operating income decreased $42.6 million, or 17.5%, during the six months ended June 30, 2019 as compared to the six months ended June 30, 2018 as a result of a $91.4 million non-cash impairment charge recorded in the first quarter of 2019.
Net income of $11.2 billion in the six months ended June 30, 2019 was driven by a net gain of $9.5 billion recognized in relation to our emergence from bankruptcy and a $1.8 billion gain on disposal of our Outdoor business.
The Company’s Adjusted EBITDA increased 6.4% to $419.9 million during the six months ended June 30, 2019 as compared to the six months ended June 30, 2018.
Liquidity and Financial Position
As of June 30, 2019, we had $127.2 million of cash on our balance sheet. We made cash interest payments of $137.5 million in the six months ended June 30, 2019 compared to $206.9 million in the six months ended June 30, 2018. For the six months ended June 30, 2019, cash provided by operating activities was $43.0 million, cash used for investing activities was $278.9 million and cash used for financing activities was $56.2 million.
Capital expenditures for the six months ended June 30, 2019 were $53.6 million compared to $27.3 million in the six months ended June 30, 2018. We estimate total capital expenditures for 2019 to be between $110 million and $120 million.
Our emergence from bankruptcy resulted in a new capital structure with significantly lower levels of long-term debt and a corresponding decrease in debt service requirements after emergence compared to historical debt levels. Our consolidated long-term debt decreased from $20.5 billion to approximately $5.8 billion.
Our primary sources of liquidity are cash on hand, which consisted of $127.2 million as of June 30, 2019, cash flow from operations and borrowing capacity under our ABL Facility. As of June 30, 2019, we had no borrowings outstanding under the ABL Facility, a borrowing base of $450.0 million and $59.2 million of outstanding letters of credit, resulting in $390.8 million of excess availability. We expect that our primary uses of liquidity will be to fund our working capital, make interest payments and voluntary prepayments of principal payments on our long-term debt, capital expenditures and other obligations.
Over the past ten years, we have transitioned our Audio business from a single platform radio broadcast operator to a company with multiple platforms including podcasting, networks and live events. We have also invested in numerous technologies and businesses to increase the competitiveness of our inventory with our advertisers and our audience. We believe that our ability to generate cash flow from operations from these business initiatives and borrowing capacity under our ABL Facility, taken together, will provide sufficient resources to operate our businesses, fund capital expenditures and other obligations and make principal and interest payments on our long-term debt that will ultimately de-lever our balance sheet over time.
On August 7, 2019, we completed the sale of $750.0 million in aggregate principal amount of 5.25% Senior Secured Notes due 2027 (the “Notes”) in a private placement. We used the net proceeds from the Notes, together with cash on hand, to prepay at par $740.0 million of borrowings outstanding under our Term Loan Facility. Our Term Loan Facility called for quarterly principal payments of approximately $8.75 million in addition to interest payments at LIBOR + 4.00%. As a result of our $740 million pre-payment, no such principal payments are required for the remaining term of the Term Loan Facility – resulting in an approximately $35 million annual reduction in required debt service payments. In addition, annual cash interest payments are expected to be approximately $7 million lower than would have been required before the refinancing transaction.
Comparison of operating performance:
|
(In thousands) |
Successor |
|
|
Predecessor |
|
Non-GAAP |
|
Predecessor |
|
|
|||||||||
|
|
Period from May |
|
|
Period from April |
|
Three Months |
|
Three Months |
|
% |
|||||||||
|
|
2019 |
|
|
2019 |
|
2019 |
|
2018 |
|
Change |
|||||||||
|
Revenue |
$ |
635,646 |
|
|
|
$ |
277,674 |
|
|
$ |
913,320 |
|
|
$ |
891,764 |
|
|
2.4 |
% |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Direct operating expenses |
184,291 |
|
|
|
92,581 |
|
|
276,872 |
|
|
263,752 |
|
|
5.0 |
% |
||||
|
Selling, general and |
227,140 |
|
|
|
103,552 |
|
|
330,692 |
|
|
328,200 |
|
|
0.8 |
% |
||||
|
Corporate expenses (excludes |
34,390 |
|
|
|
18,979 |
|
|
53,369 |
|
|
52,478 |
|
|
1.7 |
% |
||||
|
Depreciation and amortization |
59,383 |
|
|
|
14,544 |
|
|
73,927 |
|
|
64,877 |
|
|
|
|||||
|
Impairment charges |
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
|||||
|
Other operating income (expense), net |
3,246 |
|
|
|
(127 |
) |
|
3,119 |
|
|
(1,218 |
) |
|
|
|||||
|
Operating income |
$ |
133,688 |
|
|
|
$ |
47,891 |
|
|
$ |
181,579 |
|
|
$ |
181,239 |
|
|
|
|
|
Depreciation and amortization |
59,383 |
|
|
|
14,544 |
|
|
73,927 |
|
|
64,877 |
|
|
|
|||||
|
Other operating expense |
(3,246 |
) |
|
|
127 |
|
|
(3,119 |
) |
|
1,218 |
|
|
|
|||||
|
Non-cash compensation expense |
1,889 |
|
|
|
5,430 |
|
|
7,319 |
|
|
6,856 |
|
|
|
|||||
|
Restructuring and |
3,039 |
|
|
|
105 |
|
|
3,144 |
|
|
594 |
|
|
|
|||||
|
Adjusted EBITDA1 |
194,753 |
|
|
|
68,097 |
|
|
262,850 |
|
|
254,784 |
|
|
|
|||||
|
(In thousands) |
Successor |
|
|
Predecessor |
|
Non-GAAP |
|
Predecessor |
|
|
|||||||||
|
|
Period from May |
|
|
Period from |
|
Six Months |
|
Six Months |
|
% |
|||||||||
|
|
2019 |
|
|
2019 |
|
2019 |
|
2018 |
|
Change |
|||||||||
|
Revenue |
$ |
635,646 |
|
|
|
$ |
1,073,471 |
|
|
$ |
1,709,117 |
|
|
$ |
1,664,536 |
|
|
2.7 |
% |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Direct operating expenses |
184,291 |
|
|
|
359,696 |
|
|
543,987 |
|
|
504,818 |
|
|
7.8 |
% |
||||
|
Selling, general and |
227,140 |
|
|
|
436,345 |
|
|
663,485 |
|
|
674,292 |
|
|
(1.6 |
)% |
||||
|
Corporate expenses (excludes |
34,390 |
|
|
|
66,020 |
|
|
100,410 |
|
|
105,376 |
|
|
(4.7 |
)% |
||||
|
Depreciation and amortization |
59,383 |
|
|
|
52,834 |
|
|
112,217 |
|
|
132,251 |
|
|
|
|||||
|
Impairment charges |
— |
|
|
|
91,382 |
|
|
91,382 |
|
|
— |
|
|
|
|||||
|
Other operating income |
3,246 |
|
|
|
(154 |
) |
|
3,092 |
|
|
(4,450 |
) |
|
|
|||||
|
Operating income |
$ |
133,688 |
|
|
|
$ |
67,040 |
|
|
$ |
200,728 |
|
|
$ |
243,349 |
|
|
|
|
|
Depreciation and amortization |
59,383 |
|
|
|
52,834 |
|
|
112,217 |
|
|
132,251 |
|
|
|
|||||
|
Impairment |
— |
|
|
|
91,382 |
|
|
91,382 |
|
|
— |
|
|
|
|||||
|
Other operating expense |
(3,246 |
) |
|
|
154 |
|
|
(3,092 |
) |
|
4,450 |
|
|
|
|||||
|
Non-cash compensation expense |
1,889 |
|
|
|
13,241 |
|
|
15,130 |
|
|
13,536 |
|
|
|
|||||
|
Restructuring and reorganization expenses
|
3,039 |
|
|
|
498 |
|
|
3,537 |
|
|
1,172 |
|
|
|
|||||
|
Adjusted EBITDA1 |
$ |
194,753 |
|
|
|
$ |
225,149 |
|
|
$ |
419,902 |
|
|
$ |
394,758 |
|
|
|
|
Certain prior period amounts have been reclassified to conform to the 2019 presentation of financial information throughout the press release.
- See the end of this press release for reconciliations of (i) Adjusted EBITDA to net income (loss) and (ii) revenue, excluding political advertising revenue, to revenue. See also the definition of Adjusted EBITDA under the Supplemental Disclosure section in this release.
- See Supplemental Disclosure Regarding Non-GAAP Financial Information.
TABLE 1 – Statements of Operations
|
(In thousands) |
Successor |
|
|
Predecessor |
|
Non-GAAP |
|
Predecessor |
||||||||
|
|
Period from May |
|
|
Period from |
|
Three Months |
|
Three Months |
||||||||
|
|
2019 |
|
|
2019 |
|
2019 |
|
2018 |
||||||||
|
Revenue |
$ |
635,646 |
|
|
|
$ |
277,674 |
|
|
$ |
913,320 |
|
|
$ |
891,764 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
|
Direct operating expenses (excludes |
184,291 |
|
|
|
92,581 |
|
|
276,872 |
|
|
263,752 |
|
||||
|
Selling, generl and administrative expenses |
227,140 |
|
|
|
103,552 |
|
|
330,692 |
|
|
328,200 |
|
||||
|
Corporate expenses (excludes depreciation |
34,390 |
|
|
|
18,979 |
|
|
53,369 |
|
|
52,478 |
|
||||
|
Depreciation and amortization |
59,383 |
|
|
|
14,544 |
|
|
73,927 |
|
|
64,877 |
|
||||
|
Other operating income (expense), net |
3,246 |
|
|
|
(127 |
) |
|
3,119 |
|
|
(1,218 |
) |
||||
|
Operating income |
133,688 |
|
|
|
47,891 |
|
|
181,579 |
|
|
181,239 |
|
||||
|
Interest expense |
69,711 |
|
|
|
(400 |
) |
|
69,311 |
|
|
10,613 |
|
||||
|
Loss on investments, net |
— |
|
|
|
— |
|
|
— |
|
|
9,175 |
|
||||
|
Equity in loss of nonconsolidated affiliates |
(24 |
) |
|
|
(59 |
) |
|
(83 |
) |
|
(32 |
) |
||||
|
Other income (expense), net |
(9,157 |
) |
|
|
150 |
|
|
(9,007 |
) |
|
(2,058 |
) |
||||
|
Reorganization items, net |
— |
|
|
|
9,497,944 |
|
|
9,497,944 |
|
|
(68,740 |
) |
||||
|
Income from continuing operations before |
54,796 |
|
|
|
9,546,326 |
|
|
9,601,122 |
|
|
108,971 |
|
||||
|
Income tax benefit (expense) |
(16,003 |
) |
|
|
(100,289 |
) |
|
(116,292 |
) |
|
(142,032 |
) |
||||
|
Income (loss) from continuing operations |
38,793 |
|
|
|
9,446,037 |
|
|
9,484,830 |
|
|
(33,061 |
) |
||||
|
Income (loss) from discontinued operations, |
— |
|
|
|
1,854,677 |
|
|
1,854,677 |
|
|
(33,229 |
) |
||||
|
Net income (loss) |
38,793 |
|
|
|
11,300,714 |
|
|
11,339,507 |
|
|
(66,290 |
) |
||||
|
Less amount attributable to noncontrolling |
— |
|
|
|
2,190 |
|
|
2,190 |
|
|
3,609 |
|
||||
|
Net income (loss) attributable to the Company |
$ |
38,793 |
|
|
|
$ |
11,298,524 |
|
|
$ |
11,337,317 |
|
|
$ |
(69,899 |
) |
|
(In thousands) |
Successor |
|
|
Predecessor |
|
Non-GAAP |
|
Predecessor |
||||||||
|
|
Period from May |
|
|
Period from |
|
Six Months |
|
Six Months |
||||||||
|
|
2019 |
|
|
2019 |
|
2019 |
|
2018 |
||||||||
|
Revenue |
$ |
635,646 |
|
|
|
$ |
1,073,471 |
|
|
$ |
1,709,117 |
|
|
$ |
1,664,536 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
|
Direct operating expenses (excludes |
184,291 |
|
|
|
359,696 |
|
|
543,987 |
|
|
504,818 |
|
||||
|
Selling, general and administrative expenses |
227,140 |
|
|
|
436,345 |
|
|
663,485 |
|
|
674,292 |
|
||||
|
Corporate expenses (excludes depreciation |
34,390 |
|
|
|
66,020 |
|
|
100,410 |
|
|
105,376 |
|
||||
|
Depreciation and amortization |
59,383 |
|
|
|
52,834 |
|
|
112,217 |
|
|
132,251 |
|
||||
|
Impairment charges |
— |
|
|
|
91,382 |
|
|
91,382 |
|
|
— |
|
||||
|
Other operating income (expense), net |
3,246 |
|
|
|
(154 |
) |
|
3,092 |
|
|
(4,450 |
) |
||||
|
Operating income |
133,688 |
|
|
|
67,040 |
|
|
200,728 |
|
|
243,349 |
|
||||
|
Interest expense |
69,711 |
|
|
|
(499 |
) |
|
69,212 |
|
|
331,746 |
|
||||
|
Loss on investments, net |
— |
|
|
|
(10,237 |
) |
|
(10,237 |
) |
|
9,175 |
|
||||
|
Equity in loss of nonconsolidated affiliates |
(24 |
) |
|
|
(66 |
) |
|
(90 |
) |
|
(63 |
) |
||||
|
Other expense, net |
(9,157 |
) |
|
|
23 |
|
|
(9,134 |
) |
|
(22,474 |
) |
||||
|
Reorganization items, net |
— |
|
|
|
9,461,826 |
|
|
9,461,826 |
|
|
(260,795 |
) |
||||
|
Income (loss) from continuing operations before income taxes |
54,796 |
|
|
|
9,519,085 |
|
|
9,573,881 |
|
|
(362,554 |
) |
||||
|
Income tax benefit (expense) |
(16,003 |
) |
|
|
(39,095 |
) |
|
(55,098 |
) |
|
20,701 |
|
||||
|
Income (loss) from continuing operations |
38,793 |
|
|
|
9,479,990 |
|
|
9,518,783 |
|
|
(341,853 |
) |
||||
|
Loss from discontinued operations, net of tax |
— |
|
|
|
1,685,123 |
|
|
1,685,123 |
|
|
(157,477 |
) |
||||
|
Net income (loss) |
38,793 |
|
|
|
11,165,113 |
|
|
11,203,906 |
|
|
(499,330 |
) |
||||
|
Less amount attributable to noncontrolling |
— |
|
|
|
(19,028 |
) |
|
(19,028 |
) |
|
(12,437 |
) |
||||
|
Net income (loss) attributable to the Company |
$ |
38,793 |
|
|
|
$ |
11,184,141 |
|
|
$ |
11,222,934 |
|
|
$ |
(486,893 |
) |
TABLE 2 – Selected Balance Sheet Information
Selected balance sheet information for June 30, 2019 and December 31, 2018:
|
|
Successor Company |
|
|
Predecessor Company |
||||
|
(In millions) |
June 30, 2019 |
|
|
December 31, 2018 |
||||
|
Cash |
$ |
127.2 |
|
|
|
$ |
224.0 |
|
|
Total Current Assets |
1,113.7 |
|
|
|
2,235.0 |
|
||
|
Net Property, Plant and Equipment |
834.2 |
|
|
|
502.2 |
|
||
|
Total Assets |
10,997.8 |
|
|
|
12,269.5 |
|
||
|
Current Liabilities (excluding current portion of long-term debt) |
672.2 |
|
|
|
1,201.5 |
|
||
|
Long-term Debt (including current portion of long-term debt) |
5,810.5 |
|
|
|
46.1 |
|
||
|
Shareholders’ Equity (Deficit) |
2,820.0 |
|
|
|
(11,560.3 |
) |
||
Included within the Predecessor Company’s Consolidated Balance Sheet as of December 31, 2018 were current assets, long-term assets, current liabilities and long-term liabilities of $1,015.
Contacts
Media
Wendy Goldberg
Executive Vice President and Chief Communications Officer
(212) 377-1105
Investors
Kareem Chin
Senior Vice President and Head of Investor Relations
(212) 377-1336
