Meredith boosts cash position, but debt reduction remains a priority

By Devika Patel

Knoxville, Tenn., Aug. 13 – Meredith Corp. has made debt reduction its number one priority but is currently keeping its cash position high due to uncertainty caused by the Covid-19 pandemic.

“Our underlying goal, our top priority is to reduce our debt,” president and chief executive officer Tom Harty said on the company’s fourth quarter and year ended June 30 earnings conference call on Thursday.

“We obviously took on a lot of debt in the transformational transaction with Time Inc., and that’s a top priority for us moving forward,” Harty said.

The company remains focused on debt reduction but is making liquidity a priority right now due to the uncertain market environment and has been improving its cash position.

“In terms of our debt reduction, in terms of free cash flow right now, our main priority is to reduce debt,” chief financial officer Jason Frierott said on the call.

“We’ll prioritize the debt in terms of most expensive to focus on first in terms of reduction of interest, but the key point right now is to focus on cash conservation and really liquidity.

“Having more liquidity at this point in time is important to us, but over the long-term, debt reduction is the number one priority for us,” Frierott said.

“We’re being prudent with our cash position and we’ve been really improving our cash position in one of the most difficult times for the company,” Harty said.

“Liquidity and cash flow are critically important to Meredith, particularly during this time of heightened uncertainty,” Frierott said.

The company has no debt due until 2023.

“We have no immediate maturities,” Frierott said.

“Our revolver comes due in 2023, secured notes and term loans in calendar 2025 and unsecured notes in calendar 2026,” Frierott said.

Cash and cash equivalents were $132.4 million as of June 30, 2020, compared to $45 million as of June 30, 2019.

Long-term debt was $2,981,800,000 as of June 30, 2020, compared to $2,333,300,000 as of June 30, 2019.

Meredith is a Des Moines-based media and marketing company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.