TEGNA Inc. Reports 2018 Second Quarter Results
Highlights for the second quarter of 2018:
- Total company revenue from continuing operations grew seven percent year-over-year, at the high end of the guidance range provided last quarter, driven by subscription revenue growth and higher political revenue. Adjusted revenue, excluding political advertising and previously terminated digital businesses, was up five percent year-over-year.
-
Subscription revenue was 16 percent higher year-over-year, a
$29 million increase, on track to achieve guidance of mid-teens growth in 2018; subscription revenue now comprises 40 percent of total revenue, up from 37 percent in the second quarter of 2017. -
Total paid subscribers were up year-over-year for the first time in
several years fueled by continued growth of OTT subscribers in
TEGNA markets. - Total advertising and marketing services revenue, which excludes political, declined five percent year-over-year on a GAAP basis, and three percent on an adjusted basis when revenue from discontinued marketing services is excluded.
-
Political revenue of
$26 million set a second quarter historical record. -
Premion full year guidance raised from
$60 million to $75 million , excluding incremental political revenue, resulting from growing customer demand for this first-to-market OTT advertising service. -
Total company adjusted EBITDA was
$169.6 million . -
GAAP earnings per diluted share from continuing operations were
$0.43 . Non-GAAP* earnings per diluted share from continuing operations were$0.36 , an increase of 24 percent year-over-year. -
Free cash flow of
$93 million was 18 percent of revenue. In the second quarter,TEGNA reduced debt by$67 million , resulting in total debt of$3.2 billion and net leverage of 4.3x.$5.8 million was spent on share repurchases during the quarter. -
Revolving credit agreement of
$1.5 billion extended three years toJune 2023 with existing favorable terms and financial covenants.
* See “Use of Non-GAAP Information” below for more details
“Our progress in the quarter gives us confidence that our growth
strategy is on track,” said
SECOND QUARTER KEY METRICS
In analyzing second quarter 2018 results, investors should be reminded that:
- TEGNA’s odd-to even-year results are positively impacted by cyclical political advertising drivers due to the company’s footprint in states that tend to see substantial campaign spending.
-
The second quarter of 2018 is the last quarter of negatively impacted
revenue variances of
$6.2 million due to the conclusion of a transition services agreement withGannett which endedJune 2017 .
The following table presents key metrics (in thousands): |
||||||||||
Q2 2018 Key Metrics | GAAP | Non-GAAP (b) | ||||||||
Total company revenues | $ | 524,080 | $ | 498,371 | ||||||
Advertising and marketing services (a) | 281,847 | 281,847 | ||||||||
Subscription | 209,363 | 209,363 | ||||||||
Political | 25,709 | — | ||||||||
Other | 7,161 | 7,161 | ||||||||
Operating income | 154,135 | 147,809 | ||||||||
Net income from continuing operations | 92,512 | 78,393 | ||||||||
Earnings from continuing operations per share | $ | 0.43 | $ | 0.36 | ||||||
Adjusted EBITDA |
|
NA |
169,632 | |||||||
Adjusted EBITDA, excluding corporate expense |
|
NA |
180,853 | |||||||
Free cash flow | 102,855 | 92,634 | ||||||||
Free cash flow as a percentage of revenue (c) | 19.6 | % | 17.7 | % | ||||||
|
(a) Includes traditional advertising, digital advertising as well as revenue from the company's digital marketing services business.
(b) Refer to Tables 2 through 5 for reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP.
(c) Calculated as a percent of total GAAP revenues in Q2 2018.
OVERVIEW OF SECOND QUARTER RESULTS
Total company revenues increased seven percent in the quarter on a GAAP
basis primarily due to a
Advertising and marketing services revenue on a non-GAAP basis, excluding discontinued digital marketing services, was three percent lower in the quarter compared to the second quarter of 2017. On a GAAP basis, advertising and marketing services revenue declined five percent.
GAAP expenses were up nine percent year-over-year, primarily driven by higher programming fees and investments in Premion, including the data management platform. We continue to reinvest the majority of Premion’s operating income in its growth in order to capitalize on Premion’s first to market opportunity in the local and regional OTT ad space. The GAAP operating expense comparison benefited from a gain on the sale of real estate. Non-GAAP operating expenses, excluding the real estate gain, were up 12 percent (refer to Table 2 for a reconciliation of non-GAAP operating expenses). Given the upward revision of Premion’s revenue outlook, we expect our full year Adjusted EBITDA margin to be in the range of 36 to 38 percent, excluding corporate expenses.
GAAP operating income totaled
Net income from continuing operations was
Special items of
SECOND QUARTER NON-OPERATING AND CASH FLOW ITEMS
Interest expense in the quarter was
Other non-operating expenses were
Cash flow from operating activities for the second quarter of 2018 was
During the second quarter,
THIRD QUARTER 2018 REVENUE OUTLOOK
In the third quarter,
UPDATE ON KEY MESSAGES AND STRATEGIC INITIATIVES
-
Structured Content Innovation process - TEGNA’s disciplined and
intensive Content Innovation process continues to produce tangible
results as
TEGNA grows and broadens its offerings to audiences on all platforms. -
Recapturing local news viewers - KUSA in
Denver cancelled the #16pm newscast in the market and replaced it with a dramatically different product, “NEXT withKyle Clark .” 72 percent of the viewers in the time period turned over, and “NEXT” is now the #1 newscast in all ofColorado with Adults 25-54, comprised of many viewers who had stopped watching local news. -
Transforming morning news - A focused transformation effort on
morning newscasts is producing results across
TEGNA . An example is inSt. Louis , where KSDK has doubled its share of morning viewers. -
Industry-wide recognition for innovation - Won 10 National
Edward R. Murrow Awards for excellence in journalism, more than any
other company. Six were for overall excellence, but nine were for
excellence in innovation and eight originated from pilot concepts
created by
TEGNA innovators. - Announced Facebook Watch series - As part of TEGNA’s comprehensive voter education plan, partnered with Facebook Watch on a new digital-first series, “An Imperfect Union.”
- Launched DEALBOSS commerce brand - Successfully launched the DEALBOSS commerce brand across TEGNA’s local stations’ digital and social platforms and on-air in select markets. DEALBOSS empowers audiences to be smart, savvy shoppers by providing discounts, information, reviews and early Amazon Prime deals.
- Increased Premion reach and revenue outside of TEGNA’s broadcast footprint - Premion began piloting partnerships with local media broadcast groups and other businesses to enable Premion sales in additional local markets. Premion has now generated revenue in all 50 states.
- Premion Data Management Platform (DMP) - Accelerated buildout of new ancillary business for Premion, leveraging audience data targeting capabilities for brands and advertisers.
- Invested in technology driving Premion growth - Closed a minority investment in MadHive, a leading advertising and data technology company pioneering the OTT advertising space. This investment will further cement Premion’s partnership with MadHive and drive continued innovation across both companies.
CAPITAL ALLOCATION UPDATE / M&A OUTLOOK
-
Structured, repeatable process -
TEGNA has abundant and stable cash flows, which are used to execute value accretive M&A, retire debt, pay dividends and opportunistically repurchase shares at attractive prices. -
Substantial consolidation opportunities in broadcast
industry - With the possible changes in ownership regulations, the
broadcast industry is likely poised for accelerated consolidation and
station ownership changes.
TEGNA remains uniquely positioned to benefit from both vertical and horizontal M&A opportunities due to its strong station portfolio in attractive markets and its track record of exceeding acquisition return targets. The company continues to actively evaluate a broad range of acquisition opportunities that are EPS and free cash flow accretive within the first 12-18 months. -
Proven track record of meeting or exceeding EPS and free cash flow
acquisition criteria - All of TEGNA’s broadcast transactions
(including
Belo and London Broadcasting ) have exceeded these targets. For instance, this year’s acquisition of KFMB inSan Diego was immediately free cash flow accretive and will be EPS accretive by the end of the year, one quarter ahead of schedule.
CONFERENCE CALL
As previously announced, the company will hold an earnings conference
call at
ADDITIONAL INFORMATION
Certain statements in this press release may be forward looking in
nature or “forward-looking statements” as defined in the Private
Securities Litigation Reform Act of 1995. The forward-looking statements
contained in this press release are subject to a number of risks, trends
and uncertainties that could cause actual performance to differ
materially from these forward-looking statements. A number of those
risks, trends and uncertainties are discussed in the company’s
CONSOLIDATED STATEMENTS OF INCOME
Continuing Operations TEGNA Inc. Unaudited, in thousands of dollars (except per share amounts) |
||||||||||||||
Table No. 1 | ||||||||||||||
Quarter ended June 30, | ||||||||||||||
2018 | 2017 |
% Increase (Decrease) |
||||||||||||
Revenues | $ | 524,080 | $ | 489,369 | 7.1 | |||||||||
Operating expenses: | ||||||||||||||
Cost of revenues, exclusive of depreciation | 264,294 | 229,683 | 15.1 | |||||||||||
Business units - Selling, general and administrative expenses, exclusive of depreciation | 78,933 | 75,302 | 4.8 | |||||||||||
Corporate - General and administrative expenses, exclusive of depreciation | 11,221 | 14,248 | (21.2 | ) | ||||||||||
Depreciation | 13,861 | 13,318 | 4.1 | |||||||||||
Amortization of intangible assets | 7,962 | 5,388 | 47.8 | |||||||||||
Asset impairment and facility consolidation charges | (6,326 | ) | 1,350 | **** | ||||||||||
Total | 369,945 | 339,289 | 9.0 | |||||||||||
Operating income | 154,135 | 150,080 | 2.7 | |||||||||||
Non-operating (expense): | ||||||||||||||
Equity income (loss) in unconsolidated investments, net | 15,547 | (946 | ) | **** | ||||||||||
Interest expense | (49,104 | ) | (54,843 | ) | (10.5 | ) | ||||||||
Other non-operating items | (311 | ) | (21,108 | ) | (98.5 | ) | ||||||||
Total | (33,868 | ) | (76,897 | ) | (56.0 | ) | ||||||||
Income before income taxes | 120,267 | 73,183 | 64.3 | |||||||||||
Provision for income taxes | 27,755 | 23,913 | 16.1 | |||||||||||
Income from continuing operations | $ | 92,512 | $ | 49,270 | 87.8 | |||||||||
Earnings from continuing operations per share: | ||||||||||||||
Basic | $ | 0.43 | $ | 0.23 | 87.0 | |||||||||
Diluted | $ | 0.43 | $ | 0.23 | 87.0 | |||||||||
Weighted average number of common shares outstanding: | ||||||||||||||
Basic | 216,342 | 215,501 | 0.4 | |||||||||||
Diluted | 216,515 | 217,812 | (0.6 | ) | ||||||||||
Dividends declared per share | $ | 0.07 | $ | 0.07 | — | |||||||||
Table No. 1 (continued) | ||||||||||||||
Six months ended June 30, | ||||||||||||||
2018 | 2017 |
% Increase (Decrease) |
||||||||||||
Revenues | $ | 1,026,170 | $ | 948,439 | 8.2 | |||||||||
Operating expenses: | ||||||||||||||
Cost of revenues, exclusive of depreciation | 522,787 | 461,091 | 13.4 | |||||||||||
Business units - Selling, general and administrative expenses, exclusive of depreciation | 152,554 | 143,731 | 6.1 | |||||||||||
Corporate - General and administrative expenses, exclusive of depreciation | 23,929 | 29,581 | (19.1 | ) | ||||||||||
Depreciation | 27,332 | 26,535 | 3.0 | |||||||||||
Amortization of intangible assets | 14,744 | 10,777 | 36.8 | |||||||||||
Asset impairment and facility consolidation charges | (6,326 | ) | 3,533 | **** | ||||||||||
Total | 735,020 | 675,248 | 8.9 | |||||||||||
Operating income | 291,150 | 273,191 | 6.6 | |||||||||||
Non-operating (expense): | ||||||||||||||
Equity income (loss) in unconsolidated investments, net | 14,309 | (2,415 | ) | **** | ||||||||||
Interest expense | (96,829 | ) | (110,258 | ) | (12.2 | ) | ||||||||
Other non-operating items | (12,791 | ) | (23,182 | ) | (44.8 | ) | ||||||||
Total | (95,311 | ) | (135,855 | ) | (29.8 | ) | ||||||||
Income before income taxes | 195,839 | 137,336 | 42.6 | |||||||||||
Provision for income taxes | 48,140 | 43,408 | 10.9 | |||||||||||
Income from continuing operations | $ | 147,699 | $ | 93,928 | 57.2 | |||||||||
Earnings from continuing operations per share: | ||||||||||||||
Basic | $ | 0.68 | $ | 0.44 | 54.5 | |||||||||
Diluted | $ | 0.68 | $ | 0.43 | 58.1 | |||||||||
Weighted average number of common shares outstanding: | ||||||||||||||
Basic | 216,309 | 215,404 | 0.4 | |||||||||||
Diluted | 216,753 | 217,691 | (0.4 | ) | ||||||||||
Dividends declared per share | $ | 0.14 | $ | 0.21 | (33.3 | ) | ||||||||
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 use the non-GAAP
financial measures for purposes of evaluating business unit and
consolidated company performance. Furthermore, the
The company also discusses Adjusted EBITDA (with and without corporate expenses), non-GAAP financial performance measures that it believes offer a useful view of the overall operation of its businesses. The company defines Adjusted EBITDA as net income from continuing operations before (1) interest expense, (2) income taxes, (3) equity income (losses) in unconsolidated investments, net, (4) other non-operating items such as corporate transaction expenses (such as business acquisition and disposition costs) and investment income, (5) severance expense, (6) facility consolidation charges, (7) impairment charges, (8) depreciation and (9) amortization. The most directly comparable GAAP financial measure to Adjusted EBITDA is Net income from continuing operations. Users should consider the limitations of using Adjusted EBITDA, including the fact that this measure does not provide a complete measure of our operating performance. Adjusted EBITDA is not intended to purport to be an alternative to net income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. In particular, Adjusted EBITDA is not intended to be a measure of free cash flow available for management’s discretionary expenditures, as this measure does not consider certain cash requirements, such as working capital needs, capital expenditures, contractual commitments, interest payments, tax payments and other debt service requirements.
The company also considers adjusted revenues to be an important non-GAAP financial measure. Adjusted revenue is calculated by taking total company revenues on a GAAP basis and adjusting it to exclude (1) estimated net incremental Olympic and Super Bowl revenue, (2) Political revenues, and (3) revenues associated with a discontinued portion of our DMS business. These adjustments are made to the company's reported revenue on a GAAP basis in order to evaluate and assess our core operations on a comparable basis, and it represents the ongoing operations of our broadcast business.
This earnings release also discusses free cash flow, a non-GAAP liquidity measure. Free cash flow is defined as “net cash flow from operating activities” as reported on the statement of cash flows reduced by “purchase of property and equipment”. The company believes that free cash flow is a useful measure for management and investors to evaluate the level of cash generated by operations and the ability of its operations to fund investments in new and existing businesses, return cash to shareholders under the company’s capital program, repay indebtedness, add to the company’s cash balance, or use in other discretionary activities. Management uses free cash flow to monitor cash available for repayment of indebtedness and in discussions with the investment community. Like Adjusted EBITDA, free cash flow is not intended to be a measure of cash flow available for management’s discretionary use.
Tabular reconciliations for all of the non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the following tables.
NON-GAAP FINANCIAL INFORMATION
TEGNA Inc. Unaudited, in thousands of dollars (except per share amounts) |
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Table No. 2 | ||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||
GAAP
Measure |
Special Items |
Non-GAAP
Measure |
||||||||||||||||||||||||||||
Quarter ended June 30, 2018 |
Operating asset impairment and facility consolidation |
Other non- operating items |
Net gain on equity method investment |
Quarter ended June 30, 2018 |
||||||||||||||||||||||||||
Asset impairment and facility consolidation charges | $ | (6,326 | ) | $ | 6,326 | $ | — | $ | — | $ | — | |||||||||||||||||||
Operating expenses | 369,945 | 6,326 | — | — | 376,271 | |||||||||||||||||||||||||
Operating income | 154,135 | (6,326 | ) | — | — | 147,809 | ||||||||||||||||||||||||
Equity income (loss) in unconsolidated investments, net | 15,547 | — | — | (16,758 | ) | (1,211 | ) | |||||||||||||||||||||||
Other non-operating items | (311 | ) | — | 5,722 | — | 5,411 | ||||||||||||||||||||||||
Total non-operating expenses | (33,868 | ) | — | 5,722 | (16,758 | ) | (44,904 | ) | ||||||||||||||||||||||
Income before income taxes | 120,267 | (6,326 | ) | 5,722 | (16,758 | ) | 102,905 | |||||||||||||||||||||||
Provision (benefit) for income taxes | 27,755 | 2 | 971 | (4,216 | ) | 24,512 | ||||||||||||||||||||||||
Net income from continuing operations | 92,512 | (6,328 | ) | 4,751 | (12,542 | ) | 78,393 | |||||||||||||||||||||||
Net income from continuing operations per share-diluted (a) | $ | 0.43 | $ | (0.03 | ) | $ | 0.03 | $ | (0.06 | ) | $ | 0.36 | ||||||||||||||||||
(a) - Per share amounts do not sum due to rounding. | ||||||||||||||||||||||||||||||
GAAP
Measure |
Special Items |
Non-GAAP
Measure |
||||||||||||||||||||||||||||
Quarter ended June 30, 2017 |
Severance expense |
Operating asset impairment and facility consolidation |
Other non- operating items |
Special tax benefit |
Quarter ended June 30, 2017 |
|||||||||||||||||||||||||
Asset impairment and facility consolidation charges | $ | 1,350 | $ | — | $ | (1,350 | ) | $ | — | $ | — | $ | — | |||||||||||||||||
Operating expenses | 339,289 | (1,354 | ) | (1,350 | ) | — | — | 336,585 | ||||||||||||||||||||||
Operating income | 150,080 | 1,354 | 1,350 | — | — | 152,784 | ||||||||||||||||||||||||
Other non-operating items | (21,108 | ) | — | — | 19,754 | — | (1,354 | ) | ||||||||||||||||||||||
Total non-operating expenses | (76,897 | ) | — | — | 19,754 | — | (57,143 | ) | ||||||||||||||||||||||
Income before income taxes | 73,183 | 1,354 | 1,350 | 19,754 | — | 95,641 | ||||||||||||||||||||||||
Provision for income taxes | 23,913 | 523 | 522 | 3,942 | 3,637 | 32,537 | ||||||||||||||||||||||||
Net income from continuing operations | 49,270 | 831 | 828 | 15,812 | (3,637 | ) | 63,104 | |||||||||||||||||||||||
Net income from continuing operations per share-diluted (a) | $ | 0.23 | $ | — | $ | — | $ | 0.07 | $ | (0.02 | ) | $ | 0.29 | |||||||||||||||||
(a) - Per share amounts do not sum due to rounding. | ||||||||||||||||||||||||||||||
Table No. 2 (continued) | ||||||||||||||||||||||||||||||
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 condensed consolidated statements of income follow: | ||||||||||||||||||||||||||||||
GAAP
Measure |
Special Items |
Non-GAAP
Measure |
||||||||||||||||||||||||||||
Six months ended June 30, 2018 |
Operating asset impairment and facility consolidation |
Pension lump-sum payment charge |
Other non- operating items |
Net gain on equity method investment |
Six months ended June 30, 2018 |
|||||||||||||||||||||||||
Asset impairment and facility consolidation charges | $ | (6,326 | ) | $ | 6,326 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Operating expenses | 735,020 | 6,326 | — | — | — | 741,346 | ||||||||||||||||||||||||
Operating income | 291,150 | (6,326 | ) | — | — | — | 284,824 | |||||||||||||||||||||||
Equity income (loss) in unconsolidated investments, net | 14,309 | — | — | — | (16,758 | ) | (2,449 | ) | ||||||||||||||||||||||
Other non-operating items | (12,791 | ) | — | 6,300 | 15,184 | — | 8,693 | |||||||||||||||||||||||
Total non-operating expenses | (95,311 | ) | — | 6,300 | 15,184 | (16,758 | ) | (90,585 | ) | |||||||||||||||||||||
Income before income taxes | 195,839 | (6,326 | ) | 6,300 | 15,184 | (16,758 | ) | 194,239 | ||||||||||||||||||||||
Provision (benefit) for income taxes | 48,140 | 2 | 1,608 | (472 | ) | (4,216 | ) | 45,062 | ||||||||||||||||||||||
Net income from continuing operations | 147,699 | (6,328 | ) | 4,692 | 15,656 | (12,542 | ) | 149,177 | ||||||||||||||||||||||
Net income from continuing operations per share-diluted (a) | $ | 0.68 | $ | (0.03 | ) | $ | 0.02 | $ | 0.07 | $ | (0.06 | ) | $ | 0.69 | ||||||||||||||||
(a) - Per share amounts do not sum due to rounding. | ||||||||||||||||||||||||||||||
GAAP
Measure |
Special Items |
Non-GAAP
Measure |
||||||||||||||||||||||||||||
Six months ended June 30, 2017 |
Severance expense |
Operating asset impairment and facility consolidation |
Other non- operating items |
Special tax benefit |
Six months ended June 30, 2017 |
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Asset impairment and facility consolidation charges | $ | 3,533 | $ | — | $ | (3,533 | ) | $ | — | $ | — | $ | — | |||||||||||||||||
Operating expenses | 675,248 | (3,053 | ) | (3,533 | ) | — | — | 668,662 | ||||||||||||||||||||||
Operating income | 273,191 | 3,053 | 3,533 | — | — | 279,777 | ||||||||||||||||||||||||
Other non-operating items | (23,182 | ) | — | — | 29,303 | — | 6,121 | |||||||||||||||||||||||
Total non-operating expenses | (135,855 | ) | — | — | 29,303 | — | (106,552 | ) | ||||||||||||||||||||||
Income before income taxes | 137,336 | 3,053 | 3,533 | 29,303 | — | 173,225 | ||||||||||||||||||||||||
Provision for income taxes | 43,408 | 1,174 | 1,325 | 6,292 | 3,637 | 55,836 | ||||||||||||||||||||||||
Net income from continuing operations | 93,928 | 1,879 | 2,208 | 23,011 | (3,637 | ) | 117,389 | |||||||||||||||||||||||
Net income from continuing operations per share-diluted | $ | 0.43 | $ | 0.01 | $ | 0.01 | $ | 0.11 | $ | (0.02 | ) | $ | 0.54 | |||||||||||||||||
NON-GAAP FINANCIAL INFORMATION
TEGNA Inc. Unaudited, in thousands of dollars |
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Table No. 3 | |||||||||||||
Quarter ended June 30, | |||||||||||||
2018 | 2017 |
% Increase |
|||||||||||
Net income from continuing operations (GAAP basis) | $ | 92,512 | $ | 49,270 | 87.8 | ||||||||
Provision for income taxes | 27,755 | 23,913 | 16.1 | ||||||||||
Interest expense | 49,104 | 54,843 | (10.5 | ) | |||||||||
Equity (income) loss in unconsolidated investments, net | (15,547 | ) | 946 | **** | |||||||||
Other non-operating items | 311 | 21,108 | (98.5 | ) | |||||||||
Operating income (GAAP basis) | 154,135 | 150,080 | 2.7 | ||||||||||
Severance expense | — | 1,354 | (100.0 | ) | |||||||||
Asset impairment and facility consolidation charges | (6,326 | ) | 1,350 | **** | |||||||||
Adjusted operating income (non-GAAP basis) | 147,809 | 152,784 | (3.3 | ) | |||||||||
Depreciation | 13,861 | 13,318 | 4.1 | ||||||||||
Amortization of intangible assets | 7,962 | 5,388 | 47.8 | ||||||||||
Adjusted EBITDA (Non-GAAP basis) | $ | 169,632 | $ | 171,490 | (1.1 | ) | |||||||
Corporate - General and administrative expense, exclusive of depreciation (non-GAAP basis) | 11,221 | 14,111 | (20.5 | ) | |||||||||
Adjusted EBITDA, excluding Corporate (Non-GAAP basis) | $ | 180,853 | $ | 185,601 | (2.6 | ) | |||||||
Six months ended June 30, | |||||||||||||
2018 | 2017 |
% Increase (Decrease) |
|||||||||||
Net income from continuing operations (GAAP basis) | $ | 147,699 | $ | 93,928 | 57.2 | ||||||||
Provision for income taxes | 48,140 | 43,408 | 10.9 | ||||||||||
Interest expense | 96,829 | 110,258 | (12.2 | ) | |||||||||
Equity (income) loss in unconsolidated investments, net | (14,309 | ) | 2,415 | **** | |||||||||
Other non-operating items | 12,791 | 23,182 | (44.8 | ) | |||||||||
Operating income (GAAP basis) | 291,150 | 273,191 | 6.6 | ||||||||||
Severance expense | — | 3,053 | (100.0 | ) | |||||||||
Asset impairment and facility consolidation charges | (6,326 | ) | 3,533 | **** | |||||||||
Adjusted operating income (non-GAAP basis) | 284,824 | 279,777 | 1.8 | ||||||||||
Depreciation | 27,332 | 26,535 | 3.0 | ||||||||||
Amortization of intangible assets | 14,744 | 10,777 | 36.8 | ||||||||||
Adjusted EBITDA (Non-GAAP basis) | $ | 326,900 | $ | 317,089 | 3.1 | ||||||||
Corporate - General and administrative expense, exclusive of depreciation (non-GAAP basis) | 23,929 | 28,521 | (16.1 | ) | |||||||||
Adjusted EBITDA, excluding Corporate (Non-GAAP basis) | $ | 350,829 | $ | 345,610 | 1.5 | ||||||||
NON-GAAP FINANCIAL INFORMATION
TEGNA Inc. Unaudited, in thousands of dollars |
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Table No. 4 | ||||||||||||||
Reconciliations of adjusted revenues to our revenues presented in accordance with GAAP on our Consolidated Statements of Income are presented below (in thousands): | ||||||||||||||
Quarter ended June 30, |
||||||||||||||
2018 |
2017 |
% Increase |
||||||||||||
Advertising and marketing services (a) | $ | 281,847 | $ | 296,346 | (4.9 | %) | ||||||||
Subscription | 209,363 | 180,343 | 16.1 | % | ||||||||||
Political | 25,709 | 7,446 | **** | |||||||||||
Other | 7,161 | 5,234 | 36.8 | % | ||||||||||
Total company revenues (GAAP basis) | $ | 524,080 | $ | 489,369 | 7.1 | % | ||||||||
Factor impacting comparisons: | ||||||||||||||
Discontinued digital marketing services | — | (6,172 | ) | (100.0 | %) | |||||||||
Political | (25,709 | ) | (7,446 | ) | **** | |||||||||
Total company revenues (Non-GAAP basis) | $ | 498,371 | $ | 475,751 | 4.8 | % | ||||||||
(a) Includes traditional advertising, digital advertising as well as revenue from the company's digital marketing services business. | ||||||||||||||
Quarter ended June 30, |
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2018 |
2017 |
% Increase |
||||||||||||
Advertising and marketing services (GAAP basis) | $ | 281,847 | $ | 296,346 | (4.9 | %) | ||||||||
Discontinued digital marketing services | — | (6,172 | ) | (100.0 | %) | |||||||||
Subtotal advertising and marketing services (Non-GAAP basis) | $ | 281,847 | $ | 290,174 | (2.9 | %) | ||||||||
NON-GAAP FINANCIAL INFORMATION
TEGNA Inc. Unaudited, in thousands of dollars |
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Table No. 5 | ||||||||||||||||||||
“Free cash flow” is a non-GAAP liquidity measure used in addition to and in conjunction with results presented in accordance with GAAP. Free cash flow should not be relied upon to the exclusion of similar GAAP financial measures. | ||||||||||||||||||||
Quarter ended June 30, | Six months ended June 30, | |||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Net cash flow from operating activities | $ | 102,855 | $ | 103,107 | $ | 154,041 | $ | 243,024 | ||||||||||||
Purchase of property and equipment | (10,221 | ) | (31,744 | ) | (20,864 | ) | (49,703 | ) | ||||||||||||
Free cash flow | $ | 92,634 | $ | 71,363 | $ | 133,177 | $ | 193,321 | ||||||||||||
Note: The 2017 free cash flow numbers presented in the table above includes Cars.com and CareerBuilder which were spun-off and sold, respectively, during 2017. |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20180807005423/en/
Source:
TEGNA Inc.
For investor inquiries, contact:
Jeffrey Heinz
Vice
President, Investor Relations
703-873-6917
jheinz@TEGNA.com
or
For
media inquiries, contact:
Anne Bentley
Vice President,
Corporate Communications
703-873-6366
abentley@TEGNA.com