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Time Inc. Announced Agreement For Sale Of Blue Fin Building In U.K. For Million GBP

The following excerpt is from the company's SEC filing.

Time Inc. Board of Directors has Authorized Stock Repurchases of up to

Million and Debt Repayments of up to

Million Contingent on the Sale of the Blue Fin Building

Time Inc.'s Digital Advertising Revenues Grew Strongly–Up 27% Year-Over-Year Excluding Dispositions and FX

Time Inc.'s Cost & Efficiency Efforts Are Running Ahead of Expectations

Time Inc. Began Moving Into New Downtown Manhattan Headquarters in October; Move to Result in $50 Million of Annual Real Estate Savings Beginning in 2016

NEW YORK,

November 5, 2015

- Time Inc. (NYSE:TIME) reported fi nancial results for its

quarter ended

September 30, 2015

Time Inc. Chairman and CEO Joe Ripp said, "Time Inc. is building capabilities and new revenue opportunities in the fastest growing areas of media including video, native, live media, data and programmatic. We are expanding our world-class brands, premium content and deeply engaged audiences into new revenue streams. We are aggressively moving the company forward to build the world's most influential media network."

Results Summary

In millions (except per share amounts)

Three Months Ended

September 30,

Nine Months Ended

GAAP Measures

Goodwill impairment

Operating income (loss)

Net income (loss)

Diluted EPS

Cash provided by operations

Non-GAAP Measures

Adjusted OIBDA

Adjusted Net Income

Adjusted Diluted EPS

Free Cash Flow

The company’s Adjusted OIBDA, Adjusted Net Income, Adjusted Diluted EPS and Free Cash Flow are non-GAAP financial measures. See “Use of Non-GAAP Financial Measures” below and the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures in Schedules I through IV attached hereto.

QUARTER

RESULTS

for the

quarter of

decreased

$48 million

versus the year-earlier quarter to

$773 million

. The stronger U.S. dollar relative to the British pound had an

$8 million

adverse impact on Revenues for the quarter ended

. Results for the quarter ended

September 30, 2014

included

$6 million

of revenues from our disposed Mexico-based operations, Grupo Editorial Expansión ("GEX") and were adversely impacted by

$3 million

from the wholesaler transition first announced in May 2014. Excluding the impacts of U.S. dollar/British pound exchange rate changes, the GEX disposition and the wholesaler transition, Revenues would have decreased

$30 million

from the year-earlier quarter to

$398 million

. The stronger U.S. dollar relative to the British pound had a

$2 million

adverse impact on Advertising revenues. Results for the quarter ended

$5 million

of Advertising revenues from GEX. Excluding the impacts of U.S. dollar/British pound exchange rate changes and the GEX disposition, Advertising revenues would have decreased

Print and Other Advertising Revenues

$44 million

$319 million

. The quarter ended

of Print and other advertising revenues from GEX. Excluding the impacts of U.S. dollar/British pound exchange rate changes and the GEX disposition, Print and other advertising revenues would have decreased

. The decrease was driven principally by a decline in advertising pages sold primarily due to the continuing trend of advertisers shifting advertising spending from print to other media, and by lower average price per page of advertising sold primarily due to the category mix of advertisers. Our domestic titles experienced advertising declines in the beauty, fashion/retail and financial categories, partially offset by strong sales in the technology/telecommunications and food categories.

increased

$14 million

$79 million

of Digital advertising revenues from GEX. Excluding the impacts of U.S. dollar/British pound exchange rate changes and the GEX disposition, Digital advertising revenues would have increased

, reflecting strong growth in video and programmatic sales. Time Inc. served

116 million

multiplatform unique visitors during September 2015 in the U.S., up

since September 2014.

Circulation Revenues

, which comprise subscription, newsstand and other circulation revenues,

$18 million

$261 million

. The stronger U.S. dollar relative to the British pound adversely impacted Circulation revenues by

from the wholesaler transition. Excluding the impacts of U.S. dollar/British pound exchange rate changes and the wholesaler transition, Circulation revenues would have decreased

as a result of the continued shift in consumer preferences from print to digital media.

Subscription Revenues

$168 million

. The stronger U.S. dollar relative to the British pound adversely impacted Subscription revenues by

. Excluding the impact of U.S. dollar/British pound exchange rate changes, Subscription revenues would have decreased

Newsstand Revenues

$12 million

$86 million

$4 million

adverse impact on Newsstand revenues. Newsstand revenues for the

from the wholesaler transition. Excluding the impacts of U.S. dollar/British pound exchange rate changes and the wholesaler transition, Newsstand revenues would have decreased

Other Revenues,

which include marketing and support services provided to third parties, events, licensing and branded book publishing,

remained flat

from the year-earlier quarter at

$114 million

. Declines at our book publishing business were offset by the benefit of acquisitions.

Revenues Summary

Other circulation

Other revenues

Costs of Revenues

, which consist of Production costs, Editorial costs and Other costs (including production overhead costs),

$310 million

favorable impact on Costs of revenues for the quarter ended

of costs from GEX. Excluding the impacts of U.S. dollar/British pound exchange rate changes and the GEX disposition, Costs of revenues would have decreased

. Excluding the impacts of U.S. dollar/British pound exchange rate changes and the GEX disposition, Production costs would have decreased

, primarily driven by lower volume of pages produced.

$13 million

$100 million

favorable impact on Editorial costs for the quarter ended

of Editorial costs from GEX. Excluding the impacts of U.S. dollar/British pound exchange rate changes and the GEX disposition, Editorial costs would have decreased

, primarily driven by savings from previously announced cost savings initiatives, partially offset by digital investments.

costs of revenues

$42 million

. Excluding the impact of the GEX disposition, Other costs would have increased

, driven primarily by costs associated with growth initiatives and the operations of acquired businesses.

Selling, General and Administrative Expenses

("SG&A")

$359 million

. The stronger U.S. dollar relative to the British pound benefited SG&A by

of SG&A from GEX. Excluding the impacts of U.S. dollar/British pound exchange rate changes and the GEX disposition, SG&A would have

driven by expenses associated with growth initiatives and the operations of acquired businesses,

$11 million

of incremental real estate related expenses associated with the upcoming relocation of our corporate headquarters and the leaseback of properties in Birmingham, AL and Menlo Park, CA, a portion of which is associated with temporary space, and

in noncash realized pretax losses in connection with the settlement of our domestic excess pension plan, partially offset by benefits realized from previously announced cost savings initiatives. In addition to the

for the settlement of our domestic excess pension plan, also included in SG&A for the quarters ended September 30, 2015 and 2014 were

, respectively, of other costs related to acquisitions and dispositions which have been excluded from our Adjusted OIBDA calculation.

$113 million

represented

a decrease of

$31 million

from the comparable quarter of

primarily due to lower Revenues, partially offset by lower Costs of revenues. The wholesaler transition adversely impacted Adjusted OIBDA during the

three months ended September 30, 2014

Restructuring and Severance Costs

was a charge of

and a benefit of

, respectively. Restructuring and severance costs...


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