“We continued to improve our liquidity position in the fourth quarter. In addition to steady cash flow from operations, our balance sheet was further strengthened by the sales of the About Group and our ownership interest in Indeed.com, as we sharpened our focus on our core brands. All in, we ended 2012 with approximately $955 million in cash and short-term investments, even after making pension contributions and debt payments totaling about $188 million during the fourth quarter. At year end, our total cash position exceeded total debt and capital lease obligations by approximately $258 million.”
Unless otherwise noted, all comparisons are for the fourth quarter of 2012 to the fourth quarter of 2011. The results of the Regional Media Group, which was sold in the first quarter of 2012, and the results of the About Group, which was sold in the fourth quarter of 2012, are reported within discontinued operations for all periods presented.
Because of the Company’s fiscal calendar, the 2012 fourth quarter and year included an additional week (14 weeks and 53 weeks) compared with the 2011 fourth quarter and year (13 weeks and 52 weeks). A reconciliation of revenues, excluding the estimated effect of the additional week, to revenues including the additional week, is included in the exhibits to this release.
This release includes other non-GAAP financial measures, a discussion of management’s reasons for the presentation of these non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures.
The fourth-quarter 2012 results included the following special items:
- A $164.6 million ($102.4 million after tax or $.66 per share) gain on the sale of the Company’s ownership interest in Indeed.com, a search engine for jobs.
- A $48.7 million ($28.3 million after tax or $.18 per share) non-cash settlement charge in connection with the Company’s immediate pension benefit offer to certain former employees.
- A $2.6 million ($1.5 million after tax or $.01 per share) charge in connection with a legal settlement.
The fourth-quarter 2011 results included the following special item:
- A $4.5 million ($2.6 million after tax or $.02 per share) charge for a retirement and consulting agreement in connection with the retirement of the Company’s former chief executive officer at the end of 2011.
In addition, the Company had severance costs of $7.9 million ($4.4 million after tax or $.03 per share) and $7.9 million ($4.7 million after tax or $.03 per share) in the fourth quarters of 2012 and 2011, respectively.