TEGNA Inc. Reports Second Quarter 2024 Results and Provides Third Quarter 2024 Guidance
Achieved second quarter key guidance metrics and reaffirms full-year guidance
Returned
Appointed two new independent Directors to the Board of Directors
TYSONS, Va.--(BUSINESS WIRE)--Aug. 7, 2024--
SECOND QUARTER FINANCIAL HIGHLIGHTS:
All Year-Over-Year Comparisons Unless Otherwise Noted:
-
Total company revenue decreased 3% to
$710 million , at the midpoint of our guidance range, primarily due to lower subscription and advertising and marketing services (“AMS”) revenues partially offset by higher political advertising dollars. -
Subscription revenue decreased 7% to
$367 million , primarily due to subscriber declines partially offset by contractual rate increases. -
AMS revenue decreased 5% to
$301 million due to softness in demand from national accounts. -
GAAP operating expenses increased 26% to
$569 million primarily due to the receipt of a$136 million merger termination fee reflected in last year’s results. Non-GAAP operating expenses1 were flat benefiting from our initial set of cost transformation initiatives. -
GAAP and non-GAAP operating income1 totaled
$142 million and$147 million , respectively. -
GAAP net income attributable to
TEGNA Inc. was$82 million and non-GAAP net income attributable toTEGNA Inc. 1 was$86 million . -
GAAP and non-GAAP earnings per diluted share1 were
$0.48 and$0.50 , respectively. -
Total company Adjusted EBITDA2 decreased 10% to
$176 million primarily due to lower subscription and AMS revenue partially offset by higher political revenues.
___________________________________________ |
1 See Table 3 for details |
2 See Table 4 for details |
“Results for the second quarter fell within our guidance range, underscoring TEGNA’s ability to effectively manage what we can control in the current macroeconomic environment,” said
KEY STRATEGIC UPDATES:
-
Mike Steib to SucceedDavid Lougee as President, CEO and a Director as ofAugust 12, 2024 – Steib is the former CEO of Artsy, the world’s largest online platform for discovering and collecting art, and previously served as president and CEO ofXO Group (NYSE: XOXO), parent company of The Knot. Prior to those roles, he spent 10 years in executive positions at NBCUniversal andGoogle launching, scaling, and acquiring advertising-supported businesses. (Press Release) -
TEGNA Board of Directors Appoints Two New Independent Directors as of
July 1, 2024 – As part of its regular refreshment process, the Board appointed two new independent directors,Catherine Dunleavy , the incoming COO and CFO of Olaplex, who also has experience as a media and finance executive with Away, NIKE and NBCUniversal, andDenmark West , who heads Market Intelligence and Strategic Engagements at X,The Moonshot Factory , a division of Alphabet. (Press Release) -
TEGNA’s NBC Stations Head to the
Paris 2024Olympics –TEGNA journalists traveled toParis to bring the emotion and excitement of 100 local athletes participating in the Summer Olympic Games home to our local communities.TEGNA stations are producing “Olympic Zone,” airing before primetimeNBC coverage and featuring stations’ top personalities who provide an inspiring look at the games, local athletes and their families. -
Indiana Fever Broadcasts in 12
Markets Grows Advertiser and Sponsorship Opportunities – In the second quarter, on the heels of our initial WTHR (Indianapolis ) deal to carryIndiana Fever games in April,TEGNA expanded distribution of free over-the-air broadcasts of Fever games to 11 additional markets in May, which includeTEGNA stations WOI (Des Moines ), WQAD (Quad Cities) and WHAS (Louisville ) and stations owned by Gray Media, Sinclair, Nexstar Media Group, Inc.,Coastal Television Broadcasting Group andWeigel Broadcasting Co. Games aired onTEGNA stations during the quarter have experienced excellent audience and sponsor reaction. (Press Release) -
TEGNA Signs Multi-Year Distribution Agreement with NHL’s Seattle Kraken for Upcoming Season – TEGNA’s partnership with the Seattle Kraken to air games for free over-the-air begins in October across
Washington ,Oregon , andAlaska , marking a significant expansion in access for fans throughout thePacific Northwest . (Press Release) -
TEGNA Named 2024 Honoree of The Civic 50 and Telecommunications Sector Leader – The Civic 50 by Points of Light named
TEGNA one of the most community-minded companies in theU.S. for a fifth consecutive year and Telecommunications Sector Leader for a fourth year. (Press Release) -
TEGNA Stations Honored with 73 Regional Edward R. Murrow Awards –
TEGNA stations garnered six overall excellence, seven diversity, equity and inclusion and five innovation awards.TEGNA stations received more honors in these categories than any other local broadcast station group. (Press Release)
CAPITAL ALLOCATION, LEVERAGE, AND LIQUIDITY:
-
The company continues to expect to return 40-60% of Adjusted free cash flow3 generated in 2024-2025 to shareholders through share repurchases and dividends, including approximately
$350 million in 2024 through dividends and share repurchases. -
During the second quarter, the company returned
$93 million of capital to shareholders, with$72 million in share repurchases, representing 5.1 million shares, and$21 million in dividends. -
Interest expense fell slightly to
$42 million due to decreased undrawn fees on the company’s revolving credit facility. -
As noted last quarter, the company’s Board approved a 10% increase to the company’s regular quarterly dividend, from 11.375 to
12.5 cents per share. This increase was reflected for the first time in dividends paid to eligible shareholders in July. -
Cash flow from operating activities was
$125 million for the quarter and$225 million for the first six months. -
Adjusted free cash flow was
$131 million for the quarter and$230 million for the first six months. -
The company is reaffirming its expectation of 2024-2025 two-year Adjusted free cash flow guidance range of
$900 million-$1.1 billion . -
Cash and cash equivalents totaled
$446 million at the end of the second quarter. Net leverage finished the second quarter at 2.9x4.
___________________________________________
|
FULL-YEAR AND THIRD QUARTER 2024 OUTLOOK:
Full-Year 2024 Key Guidance Metrics |
|
|
|
|
|
|
||
|
|
|
2024/2025 Two-Year Adjusted FCF |
|
|
Net Leverage Ratio |
|
Below 3x at year end |
Corporate Expenses |
|
|
Depreciation |
|
|
Amortization |
|
|
Interest Expense |
|
|
Capital Expenditures |
|
|
Effective Tax Rate |
|
22.5 – 23.5% |
Third Quarter 2024 Key Guidance Metrics |
|
|
|
Reflects expectations relative to third quarter 2023 results |
|
|
|
Total company GAAP Revenue |
Up 9% to 12% |
Total Non-GAAP Operating Expenses |
Flat to down slightly |
|
|
CONFERENCE CALL
The conference call will be webcast through the company’s website, and is open to investors, the financial community, the media and other members of the public. To access the meeting by phone, please visit investors.TEGNA.com at least 10 minutes prior to the scheduled start time to access the links and register before the conference call begins. Once registered, phone participants will receive dial-in numbers and a unique PIN to seamlessly access the call.
________________________ |
4 See Table 6 for details |
FORWARD-LOOKING STATEMENTS
This communication includes forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this communication, the words “believes,” “estimates,” “plans,” “expects,” “should,” “could,” “outlook,” and “anticipates” and similar expressions as they relate to the company or its financial results are intended to identify forward-looking statements. Forward-looking statements in this communication may include, without limitation, statements regarding anticipated growth rates and the company’s plans, objectives and expectations. Forward-looking statements are based on a number of assumptions about future events and are subject to various risks, uncertainties and other factors that may cause actual results to differ materially from the views, beliefs, projections and estimates expressed in such statements, many of which are outside the company’s control. These risks, uncertainties and other factors include, but are not limited to, risks and uncertainties related to: changes in the market price of the company’s shares, general market conditions, constraints, volatility, or disruptions in the capital markets; the possibility that the company’s capital allocation plan, including dividends, share repurchases, and/or strategic acquisitions, investments, and partnerships may not enhance long-term stockholder value; legal proceedings, judgments or settlements; the company’s ability to re-price or renew subscribers; potential regulatory actions; changes in consumer behaviors and impacts on and modifications to TEGNA’s operations and business relating thereto; and economic, competitive, governmental, technological and other factors and risks that may affect the company’s operations or financial results, which are discussed in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Any forward-looking statements in this communication should be evaluated in light of these important risk factors. The company is not responsible for updating the information contained in this communication beyond the published date, or for changes made to this press release by wire services, Internet service providers or other media.
Readers are cautioned not to place undue reliance on forward-looking statements made by or on behalf of the company. Each such statement speaks only as of the day it was made. The company undertakes no obligation to update or to revise any forward-looking statements.
ADDITIONAL INFORMATION
CONSOLIDATED STATEMENTS OF INCOME
Unaudited, in thousands of dollars (except per share amounts)
Table No. 1 |
|||||||||||
|
Quarters ended |
|
|||||||||
|
2024 |
|
|
2023 |
|
|
Change |
|
|||
|
|
|
|
|
|
|
|
|
|||
Revenues |
$ |
710,363 |
|
|
$ |
731,506 |
|
|
|
(3 |
%) |
|
|
|
|
|
|
|
|
|
|||
Operating expenses: |
|
|
|
|
|
|
|
|
|||
Cost of revenues |
|
432,044 |
|
|
|
430,528 |
|
|
|
0 |
% |
Business units - Selling, general and administrative expenses |
|
94,938 |
|
|
|
97,231 |
|
|
|
(2 |
%) |
Corporate - General and administrative expenses |
|
12,685 |
|
|
|
26,506 |
|
|
|
(52 |
%) |
Depreciation |
|
15,173 |
|
|
|
14,987 |
|
|
|
1 |
% |
Amortization of intangible assets |
|
13,663 |
|
|
|
13,296 |
|
|
|
3 |
% |
Asset impairment and other |
|
— |
|
|
|
3,359 |
|
|
*** |
|
|
Merger termination fee |
|
— |
|
|
|
(136,000 |
) |
|
*** |
|
|
Total |
|
568,503 |
|
|
|
449,907 |
|
|
|
26 |
% |
Operating income |
|
141,860 |
|
|
|
281,599 |
|
|
|
(50 |
%) |
|
|
|
|
|
|
|
|
|
|||
Non-operating (expense) income: |
|
|
|
|
|
|
|
|
|||
Interest expense |
|
(41,748 |
) |
|
|
(42,797 |
) |
|
|
(2 |
%) |
Interest income |
|
5,873 |
|
|
|
8,536 |
|
|
|
(31 |
%) |
Other non-operating items, net |
|
(2,749 |
) |
|
|
(3,038 |
) |
|
|
(10 |
%) |
Total |
|
(38,624 |
) |
|
|
(37,299 |
) |
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|||
Income before income taxes |
|
103,236 |
|
|
|
244,300 |
|
|
|
(58 |
%) |
Provision for income taxes |
|
21,207 |
|
|
|
44,207 |
|
|
|
(52 |
%) |
Net income |
|
82,029 |
|
|
|
200,093 |
|
|
|
(59 |
%) |
Net loss attributable to redeemable noncontrolling interest |
|
115 |
|
|
|
12 |
|
|
*** |
|
|
Net income attributable to |
$ |
82,144 |
|
|
$ |
200,105 |
|
|
|
(59 |
%) |
|
|
|
|
|
|
|
|
|
|||
Earnings per share: |
|
|
|
|
|
|
|
|
|||
Basic |
$ |
0.48 |
|
|
$ |
0.92 |
|
|
|
(48 |
%) |
Diluted |
$ |
0.48 |
|
|
$ |
0.92 |
|
|
|
(48 |
%) |
|
|
|
|
|
|
|
|
|
|||
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|||
Basic shares |
|
169,512 |
|
|
|
217,830 |
|
|
|
(22 |
%) |
Diluted shares |
|
169,880 |
|
|
|
217,979 |
|
|
|
(22 |
%) |
*** Not meaningful |
CONSOLIDATED STATEMENTS OF INCOME
Unaudited, in thousands of dollars (except per share amounts)
Table No. 1 (continued) |
|||||||||||
|
Six months ended |
|
|||||||||
|
2024 |
|
|
2023 |
|
|
Change |
|
|||
|
|
|
|
|
|
|
|
|
|||
Revenues |
$ |
1,424,615 |
|
|
$ |
1,471,833 |
|
|
|
(3 |
%) |
|
|
|
|
|
|
|
|
|
|||
Operating expenses: |
|
|
|
|
|
|
|
|
|||
Cost of revenues |
|
862,611 |
|
|
|
857,460 |
|
|
|
1 |
% |
Business units - Selling, general and administrative expenses |
|
197,198 |
|
|
|
196,340 |
|
|
|
0 |
% |
Corporate - General and administrative expenses |
|
27,483 |
|
|
|
38,606 |
|
|
|
(29 |
%) |
Depreciation |
|
29,483 |
|
|
|
30,036 |
|
|
|
(2 |
%) |
Amortization of intangible assets |
|
27,323 |
|
|
|
26,878 |
|
|
|
2 |
% |
Asset impairment and other |
|
1,097 |
|
|
|
3,359 |
|
|
|
(67 |
%) |
Merger termination fee |
|
— |
|
|
|
(136,000 |
) |
|
*** |
|
|
Total |
|
1,145,195 |
|
|
|
1,016,679 |
|
|
|
13 |
% |
Operating income |
|
279,420 |
|
|
|
455,154 |
|
|
|
(39 |
%) |
|
|
|
|
|
|
|
|
|
|||
Non-operating (expense) income: |
|
|
|
|
|
|
|
|
|||
Interest expense |
|
(84,116 |
) |
|
|
(85,703 |
) |
|
|
(2 |
%) |
Interest income |
|
11,446 |
|
|
|
16,109 |
|
|
|
(29 |
%) |
Other non-operating items, net |
|
147,009 |
|
|
|
(5,437 |
) |
|
*** |
|
|
Total |
|
74,339 |
|
|
|
(75,031 |
) |
|
*** |
|
|
|
|
|
|
|
|
|
|
|
|||
Income before income taxes |
|
353,759 |
|
|
|
380,123 |
|
|
|
(7 |
%) |
Provision for income taxes |
|
82,468 |
|
|
|
76,026 |
|
|
|
8 |
% |
Net income |
|
271,291 |
|
|
|
304,097 |
|
|
|
(11 |
%) |
Net loss attributable to redeemable noncontrolling interest |
|
413 |
|
|
|
311 |
|
|
|
33 |
% |
Net income attributable to |
$ |
271,704 |
|
|
$ |
304,408 |
|
|
|
(11 |
%) |
|
|
|
|
|
|
|
|
|
|||
Earnings per share: |
|
|
|
|
|
|
|
|
|||
Basic |
$ |
1.56 |
|
|
$ |
1.37 |
|
|
|
14 |
% |
Diluted |
$ |
1.55 |
|
|
$ |
1.37 |
|
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|||
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|||
Basic shares |
|
173,668 |
|
|
|
221,168 |
|
|
|
(21 |
%) |
Diluted shares |
|
174,158 |
|
|
|
221,391 |
|
|
|
(21 |
%) |
*** Not meaningful |
REVENUE CATEGORIES
Unaudited, in thousands of dollars
Table No. 2 |
Below is a detail of our primary sources of revenue: |
|
Quarters ended |
||||||||
|
2024 |
|
|
2023 |
|
|
Change |
||
|
|
|
|
|
|
|
|
||
Subscription |
$ |
367,025 |
|
|
$ |
396,126 |
|
|
(7%) |
Advertising & Marketing Services |
|
300,977 |
|
|
|
317,726 |
|
|
(5%) |
Political |
|
31,643 |
|
|
|
5,991 |
|
|
*** |
Other |
|
10,718 |
|
|
|
11,663 |
|
|
(8%) |
Total revenues |
$ |
710,363 |
|
|
$ |
731,506 |
|
|
(3%) |
|
Six months ended |
||||||||
|
2024 |
|
|
2023 |
|
|
Change |
||
|
|
|
|
|
|
|
|
||
Subscription |
$ |
742,349 |
|
|
$ |
810,406 |
|
|
(8%) |
Advertising & Marketing Services |
|
599,669 |
|
|
|
625,571 |
|
|
(4%) |
Political |
|
59,471 |
|
|
|
11,282 |
|
|
*** |
Other |
|
23,126 |
|
|
|
24,574 |
|
|
(6%) |
Total revenues |
$ |
1,424,615 |
|
|
$ |
1,471,833 |
|
|
(3%) |
*** Not meaningful |
USE OF NON-GAAP INFORMATION
The company uses non-GAAP financial performance and liquidity measures to supplement the financial information presented on a GAAP basis. These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, the related GAAP measures, nor should they be considered superior to the related GAAP measures and should be read together with financial information presented on a GAAP basis. Also, our non-GAAP measures may not be comparable to similarly titled measures of other companies.
Management and the company’s Board of Directors (the "Board") regularly use Corporate–General and administrative expenses, Operating expenses, Operating income, Income before income taxes, Provision for income taxes, Net income attributable to
The company discusses in this release non-GAAP financial performance and liquidity measures that exclude from its reported GAAP results the impact of “special items” consisting of asset impairment and other, M&A-related costs, Merger termination fee, retention costs, workforce restructuring, and a gain related to the sale of the company’s investment in
The company also discusses Adjusted EBITDA (with and without stock-based compensation expense), a non-GAAP financial performance measure that it believes offers a useful view of the overall operation of its businesses. The company defines Adjusted EBITDA as net income attributable to
This earnings release also discusses Adjusted free cash flow, a non-GAAP liquidity measure. The most directly comparable GAAP financial measure to Adjusted free cash flow is Net cash flow from operating activities. Starting in the second quarter of 2024, the company updated its definition of Adjusted free cash flow. Adjusted free cash flow is now calculated as net cash flow from operating activities less payments for purchases of property and equipment plus or minus special items. The company removes special items affecting cash flow from operating activities because we do not consider these items to be indicative of its underlying cash flow generation for the reporting period. Adjusted free cash flow is not intended to be a measure of residual cash available for management’s discretionary use since it omits significant sources and uses of cash flow including mandatory debt repayments. The principal difference between the new definition and the former definition is the inclusion of cash flows driven by changes in certain working capital accounts (primarily accounts receivable, accounts payable and accrued expenses) which are now included. The company’s 2024/2025 Two-Year Adjusted free cash flow guidance of
This earnings release also presents our net leverage ratio which includes Adjusted EBITDA (without stock-based compensation) as a component of the computation. Our net leverage ratio is a financial measure that is used by management to assess the borrowing capacity of the company and management believes it is useful to investors for the same reason. The company defines its Net Leverage Ratio as (a) net debt (total debt less cash and cash equivalents) as of the balance sheet date divided by (b) Average Annual Adjusted EBITDA for the trailing two-year period.
The company is furnishing forward-looking guidance with respect to Adjusted free cash flow for the combined 2024-25 years, net leverage and corporate expenses for fiscal year 2024 and non-GAAP operating expenses for the third quarter of 2024. Our future GAAP financial results will include the impact of special items such as retention costs including stock-based compensation and cash payments, M&A-related costs, workforce restructuring, and asset impairment. The company believes that such expenses are not indicative of normal, ongoing operations. While these items should not be disregarded in evaluation of our earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods. Therefore, while we may incur or recognize these types of expenses in the future, the company believes that removing these items for purposes of calculating the non-GAAP basis financial measures provides investors with a more focused presentation of our ongoing operating performance.
The company is not able to reconcile these amounts to their comparable GAAP financial measures without unreasonable efforts because certain information necessary to calculate such measures on a GAAP basis is unavailable, dependent on future events outside of our control and cannot be predicted. An example of such information is share-based compensation, which is impacted by future share price movement in the company’s stock price and also dependent on future hiring and attrition. In addition, the company believes such reconciliations could imply a degree of precision that might be confusing or misleading to investors. The actual effect of the reconciling items that the company may exclude from these non-GAAP expense numbers, when determined, may be significant to the calculation of the comparable GAAP measures.
NON-GAAP FINANCIAL INFORMATION
Unaudited, in thousands of dollars (except per share amounts)
Table No. 3 |
Reconciliations of certain line items impacted by special items to the most directly comparable financial measure calculated and presented in accordance with GAAP on the company’s Consolidated Statements of Income follow: |
|
|
|
|
|
Special Items |
|
|
|
|
|||||||||||
Quarter ended |
|
GAAP
|
|
|
Retention costs
|
|
|
Retention costs -
|
|
|
Workforce
|
|
|
Non-GAAP
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Corporate - General and administrative expenses |
|
$ |
12,685 |
|
|
$ |
(571 |
) |
|
$ |
(654 |
) |
|
$ |
(492 |
) |
|
$ |
10,968 |
|
Operating expenses |
|
|
568,503 |
|
|
|
(2,198 |
) |
|
|
(1,003 |
) |
|
|
(1,830 |
) |
|
|
563,472 |
|
Operating income |
|
|
141,860 |
|
|
|
2,198 |
|
|
|
1,003 |
|
|
|
1,830 |
|
|
|
146,891 |
|
Income before income taxes |
|
|
103,236 |
|
|
|
2,198 |
|
|
|
1,003 |
|
|
|
1,830 |
|
|
|
108,267 |
|
Provision for income taxes |
|
|
21,207 |
|
|
|
362 |
|
|
|
171 |
|
|
|
445 |
|
|
|
22,185 |
|
Net income attributable to |
|
|
82,144 |
|
|
|
1,836 |
|
|
|
832 |
|
|
|
1,385 |
|
|
|
86,197 |
|
Earnings per share - diluted |
|
$ |
0.48 |
|
|
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
0.01 |
|
|
$ |
0.50 |
|
|
|
|
|
|
|
Special Items |
|
|
|
|
|||||||||||||||
Quarter ended |
|
GAAP
|
|
|
M&A-related
|
|
|
Merger
|
|
|
Asset
|
|
|
Special
|
|
|
Non-GAAP
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Corporate - General and administrative expenses |
|
$ |
26,506 |
|
|
$ |
(17,082 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
9,424 |
|
Operating expenses |
|
|
449,907 |
|
|
|
(17,082 |
) |
|
|
136,000 |
|
|
|
(3,359 |
) |
|
|
— |
|
|
|
565,466 |
|
Operating income |
|
|
281,599 |
|
|
|
17,082 |
|
|
|
(136,000 |
) |
|
|
3,359 |
|
|
|
— |
|
|
|
166,040 |
|
Income before income taxes |
|
|
244,300 |
|
|
|
17,082 |
|
|
|
(136,000 |
) |
|
|
3,359 |
|
|
|
— |
|
|
|
128,741 |
|
Provision for income taxes |
|
|
44,207 |
|
|
|
4,371 |
|
|
|
(24,504 |
) |
|
|
860 |
|
|
|
6,443 |
|
|
|
31,377 |
|
Net income attributable to |
|
|
200,105 |
|
|
|
12,711 |
|
|
|
(111,496 |
) |
|
|
2,499 |
|
|
|
(6,443 |
) |
|
|
97,376 |
|
Earnings per share - diluted (a) |
|
$ |
0.92 |
|
|
$ |
0.06 |
|
|
$ |
(0.51 |
) |
|
$ |
0.01 |
|
|
$ |
(0.03 |
) |
|
$ |
0.44 |
|
(a) Per share amounts do not sum due to rounding. |
NON-GAAP FINANCIAL INFORMATION
Unaudited, in thousands of dollars (except per share amounts)
Table No. 3 (continued) |
||||||||||||||||||||||||||||||||
|
|
|
|
|
Special Items |
|
|
|
|
|||||||||||||||||||||||
Six months ended |
|
GAAP
|
|
|
Retention
|
|
|
Retention
|
|
|
M&A-
|
|
|
Workforce
|
|
|
Asset
|
|
|
BMI sale
|
|
|
Non-GAAP
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate - General and administrative expenses |
|
$ |
27,483 |
|
|
$ |
(1,323 |
) |
|
$ |
(875 |
) |
|
$ |
(2,290 |
) |
|
$ |
(603 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
22,392 |
|
Operating expenses |
|
|
1,145,195 |
|
|
|
(5,091 |
) |
|
|
(1,573 |
) |
|
|
(2,290 |
) |
|
|
(3,637 |
) |
|
|
(1,097 |
) |
|
|
— |
|
|
|
1,131,507 |
|
Operating income |
|
|
279,420 |
|
|
|
5,091 |
|
|
|
1,573 |
|
|
|
2,290 |
|
|
|
3,637 |
|
|
|
1,097 |
|
|
|
— |
|
|
|
293,108 |
|
Income before income taxes |
|
|
353,759 |
|
|
|
5,091 |
|
|
|
1,573 |
|
|
|
2,290 |
|
|
|
3,637 |
|
|
|
1,097 |
|
|
|
(152,867 |
) |
|
|
214,580 |
|
Provision for income taxes |
|
|
82,468 |
|
|
|
793 |
|
|
|
248 |
|
|
|
593 |
|
|
|
890 |
|
|
|
284 |
|
|
|
(36,621 |
) |
|
|
48,655 |
|
Net income attributable to |
|
|
271,704 |
|
|
|
4,298 |
|
|
|
1,325 |
|
|
|
1,697 |
|
|
|
2,747 |
|
|
|
813 |
|
|
|
(116,246 |
) |
|
|
166,338 |
|
Earnings per share - diluted (a) |
|
$ |
1.55 |
|
|
$ |
0.03 |
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
0.02 |
|
|
$ |
0.01 |
|
|
$ |
(0.67 |
) |
|
$ |
0.95 |
|
(a) Per share amounts do not sum due to rounding. |
|
|
|
|
|
Special Items |
|
|
|
|
|||||||||||||||
Six months ended |
|
GAAP
|
|
|
M&A-related
|
|
|
Merger
|
|
|
Asset
|
|
|
Special
|
|
|
Non-GAAP
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Corporate - General and administrative expenses |
|
$ |
38,606 |
|
|
$ |
(19,848 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
18,758 |
|
Operating expenses |
|
|
1,016,679 |
|
|
|
(19,848 |
) |
|
|
136,000 |
|
|
|
(3,359 |
) |
|
|
— |
|
|
|
1,129,472 |
|
Operating income |
|
|
455,154 |
|
|
|
19,848 |
|
|
|
(136,000 |
) |
|
|
3,359 |
|
|
|
— |
|
|
|
342,361 |
|
Income before income taxes |
|
|
380,123 |
|
|
|
19,848 |
|
|
|
(136,000 |
) |
|
|
3,359 |
|
|
|
— |
|
|
|
267,330 |
|
Provision for income taxes |
|
|
76,026 |
|
|
|
4,552 |
|
|
|
(24,504 |
) |
|
|
860 |
|
|
|
6,443 |
|
|
|
63,377 |
|
Net income attributable to |
|
|
304,408 |
|
|
|
15,296 |
|
|
|
(111,496 |
) |
|
|
2,499 |
|
|
|
(6,443 |
) |
|
|
204,264 |
|
Earnings per share - diluted (a) |
|
$ |
1.37 |
|
|
$ |
0.07 |
|
|
$ |
(0.50 |
) |
|
$ |
0.01 |
|
|
$ |
(0.03 |
) |
|
$ |
0.91 |
|
(a) Per share amounts do not sum due to rounding. |
NON-GAAP FINANCIAL INFORMATION
Unaudited, in thousands of dollars
Table No. 4 |
Reconciliations of Adjusted EBITDA to net income presented in accordance with GAAP on the company’s Consolidated Statements of Income are presented below: |
|
Quarters ended |
|
|||||
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
||
Net income attributable to |
$ |
82,144 |
|
|
$ |
200,105 |
|
Less: Net loss attributable to redeemable noncontrolling interest |
|
(115 |
) |
|
|
(12 |
) |
Plus: Provision for income taxes |
|
21,207 |
|
|
|
44,207 |
|
Plus: Interest expense |
|
41,748 |
|
|
|
42,797 |
|
Less: Interest income |
|
(5,873 |
) |
|
|
(8,536 |
) |
Plus: Other non-operating items, net |
|
2,749 |
|
|
|
3,038 |
|
Operating income (GAAP basis) |
|
141,860 |
|
|
|
281,599 |
|
Plus: M&A-related costs |
|
— |
|
|
|
17,082 |
|
Plus: Asset impairment and other |
|
— |
|
|
|
3,359 |
|
Plus: Workforce restructuring |
|
1,830 |
|
|
|
— |
|
Plus: Retention costs - Employee stock-based compensation expenses |
|
2,198 |
|
|
|
— |
|
Plus: Retention costs - Cash |
|
1,003 |
|
|
|
— |
|
Less: Merger termination fee |
|
— |
|
|
|
(136,000 |
) |
Adjusted operating income (non-GAAP basis) |
|
146,891 |
|
|
|
166,040 |
|
Plus: Depreciation |
|
15,173 |
|
|
|
14,987 |
|
Plus: Amortization of intangible assets |
|
13,663 |
|
|
|
13,296 |
|
Adjusted EBITDA |
$ |
175,727 |
|
|
$ |
194,323 |
|
Stock-based compensation expenses: |
|
|
|
|
|
||
Employee awards |
|
6,740 |
|
|
|
5,157 |
|
Company stock 401(k) match contributions |
|
4,787 |
|
|
|
4,662 |
|
Adjusted EBITDA before stock-based compensation costs |
$ |
187,254 |
|
|
$ |
204,142 |
|
|
Six months ended |
|
|||||
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
||
Net income attributable to |
$ |
271,704 |
|
|
$ |
304,408 |
|
Less: Net loss attributable to redeemable noncontrolling interest |
|
(413 |
) |
|
|
(311 |
) |
Plus: Provision for income taxes |
|
82,468 |
|
|
|
76,026 |
|
Plus: Interest expense |
|
84,116 |
|
|
|
85,703 |
|
Less: Interest income |
|
(11,446 |
) |
|
|
(16,109 |
) |
(Less) Plus: Other non-operating items, net |
|
(147,009 |
) |
|
|
5,437 |
|
Operating income (GAAP basis) |
|
279,420 |
|
|
|
455,154 |
|
Plus: M&A-related costs |
|
2,290 |
|
|
|
19,848 |
|
Plus: Asset impairment and other |
|
1,097 |
|
|
|
3,359 |
|
Plus: Workforce restructuring |
|
3,637 |
|
|
|
— |
|
Plus: Retention costs - Employee stock-based compensation expenses |
|
5,091 |
|
|
|
— |
|
Plus: Retention costs - Cash |
|
1,573 |
|
|
|
— |
|
Less: Merger termination fee |
|
— |
|
|
|
(136,000 |
) |
Adjusted operating income (non-GAAP basis) |
|
293,108 |
|
|
|
342,361 |
|
Plus: Depreciation |
|
29,483 |
|
|
|
30,036 |
|
Plus: Amortization of intangible assets |
|
27,323 |
|
|
|
26,878 |
|
Adjusted EBITDA |
$ |
349,914 |
|
|
$ |
399,275 |
|
Stock-based compensation expenses: |
|
|
|
|
|
||
Employee awards |
|
14,980 |
|
|
|
8,845 |
|
Company stock 401(k) match contributions |
|
10,216 |
|
|
|
10,226 |
|
Adjusted EBITDA before stock-based compensation costs |
$ |
375,110 |
|
|
$ |
418,346 |
|
NON-GAAP FINANCIAL INFORMATION
Unaudited, in thousands of dollars
Table No. 5
Reconciliations of Adjusted free cash flow to net cash flow from operating activities presented in accordance with GAAP on the company’s Consolidated Statements of Cash Flows are presented below: |
|||||||
|
Period ending |
|
|||||
|
Quarter |
|
|
Year-to-date |
|
||
|
|
|
|
|
|
||
Net cash flow from operating activities (GAAP basis) |
$ |
124,779 |
|
|
$ |
225,159 |
|
|
|
|
|
|
|
||
Less: Purchases of property and equipment |
|
(15,972 |
) |
|
|
(20,883 |
) |
|
|
|
|
|
|
||
Special items: |
|
|
|
|
|
||
M&A related costs |
|
356 |
|
|
|
1,704 |
|
Workforce restructuring |
|
1,023 |
|
|
|
2,062 |
|
Retention costs - cash |
|
1,650 |
|
|
|
1,650 |
|
Asset impairment and other |
|
— |
|
|
|
1,097 |
|
Taxes on BMI gain |
|
18,800 |
|
|
|
18,800 |
|
Total Adjustments |
|
21,829 |
|
|
|
25,313 |
|
|
|
|
|
|
|
||
Adjusted free cash flow (non-GAAP basis) |
$ |
130,636 |
|
|
$ |
229,589 |
|
NON-GAAP FINANCIAL INFORMATION
Unaudited, in thousands of dollars
Table No. 6 |
The following table reconciles long-term debt, net of current portion to Net debt. |
|
|
|
|
Long-term debt, net of current portion |
$ |
3,090,000 |
|
Plus: Current portion of long-term debt |
|
— |
|
Less: Cash and cash equivalents |
|
(445,729 |
) |
Net debt (numerator) |
$ |
2,644,271 |
|
The following table shows the calculation of the average annual Adjusted EBITDA before stock-based compensation over the trailing two-year period ("T2Y"). |
Adjusted EBITDA before stock-based compensation: |
|
|
|
Six months ended |
$ |
375,110 |
|
Plus: Year ended |
|
781,562 |
|
Plus: Year ended |
|
1,181,045 |
|
Less: Six months ended |
|
(532,417 |
) |
Combined T2Y |
$ |
1,805,300 |
|
Divided by |
|
2 |
|
T2Y Adjusted EBITDA (denominator) |
$ |
902,650 |
|
The following table shows the calculation of the Net Leverage Ratio. |
|
|
|
||
Net debt (numerator) |
$ |
2,644,271 |
|
|
T2Y Adjusted EBITDA (denominator) |
$ |
902,650 |
|
|
Net Leverage Ratio |
|
2.9 |
x |
1 A non-GAAP measure detailed in Table 4. |
2 Refer to page 39 of the 2023 Form 10-K for reconciliations of 2023 and 2022 Adjusted EBITDA before stock-based compensation costs to net income attributable to |
3 Refer to page 27 in our Q2 2022 Form 10-Q for a reconciliation of the first six months ended 2022 Adjusted EBITDA. Note that we did not present Adjusted EBITDA before stock-based compensation in our Q2 2022 10-Q. Our Adjusted EBITDA was |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806403969/en/
For media inquiries, contact:
Vice President, Chief Communications Officer
703-873-6366
abentley@TEGNA.com
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Senior Vice President, Chief Financial Officer
703-873-6747
investorrelations@TEGNA.com
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