TEGNA Inc. Reports Record 2018 Fourth Quarter and Strong Full Year Results
31 percent revenue growth contributed to record fourth quarter free cash flow
Highlights for the fourth quarter include:
-
Record total company revenue of
$642 million was up 31 percent.-
Record political revenue of
$140 million increased 51 percent from the prior 2014 mid-term cycle. -
Record subscription revenue of
$218 million grew 22 percent, reflecting eight consecutive months of year-over-year subscriber growth.
-
Record political revenue of
- Total company revenue on a non-GAAP basis, adjusted for political advertising, was up five percent year-over-year.
Highlights for the full year 2018 include:
-
Record full year 2018 total company revenue of
$2.2 billion was up 16 percent.-
Record full year political revenue of
$234 million was 47 percent above previous mid-term elections. - Record subscription revenue grew 17 percent.
-
Record full year political revenue of
Additional highlights include:
-
Adjusted EBITDA was a fourth quarter record at
$273 million , a 61 percent increase year-over-year, and$781 million for the full year, a 24 percent increase. Net income from continuing operations for the fourth quarter was$161 million . -
Record fourth quarter free cash flow of
$167 million and$469 million for the full year enabled a reduction in the Company’s debt to under$3 billion . Net cash flow from operating activities for the fourth quarter was$195 million . -
GAAP and non-GAAP* earnings per diluted share from continuing
operations were
$0.74 in the fourth quarter, an increase of 131 percent year-over-year. Full year GAAP diluted earnings per share was$1.85 , and full year non-GAAP diluted earnings per share was$1.83 . -
Subsequent to quarter-end, successfully completed the acquisition of
leading local media brands,
CBS affiliate WTOL inToledo, OH andNBC affiliate KWES inMidland -Odessa, TX , in a$105 million transaction which closed onJanuary 2 .
* See “Use of Non-GAAP Information” below for more detail.
“We continue to benefit from the strength of our stations and
industry-leading subscription trends,” said
Lougee continued, “Our record free cash flow in the fourth quarter
enabled us to pay down debt, invest in new products and initiatives, and
capitalize on accretive acquisition opportunities. Our portfolio
continues to evolve toward a higher percentage of subscription and
political revenues, totaling roughly half of our 2018 revenues. This
trend, along with strong station performance, were key drivers of the 16
percent increase in total revenue for the year. These growing
subscription and record political advertising revenues reflect the
increased demand for our content through OTT platforms, and the critical
role that
“Going forward, through innovation and execution, we will continue to drive organic growth and create value for our shareholders. And with our strong balance sheet, we remain committed to proactively pursue M&A opportunities that align with our long-term strategy,” Lougee concluded.
OVERVIEW OF FOURTH QUARTER RESULTS
Total company revenues grew 31 percent in the quarter, primarily due to
a
Subscription revenue grew 22 percent year-over-year, reflecting TEGNA’s continued shift toward a stable, subscription-based business, with rate escalators as well as higher rates negotiated in new agreements within the fourth quarter. Paid subscribers continue to be up year-over-year for eight consecutive months, driven by growth in larger markets and OTT subscribers.
Advertising and marketing services revenue declined seven percent in the quarter compared to the fourth quarter of 2017, as anticipated, due to political advertising. Adjusted for this crowd-out and Premion adjustment, advertising and marketing services revenue was up in the low single digits.
GAAP operating expenses were up 16 percent year-over-year, predominantly driven by higher programming fees. Excluding these higher programming costs and the acquisition of KFMB, expenses increased ten percent. The growth in operating expenses is attributed to cost of sales tied to investments in Premion, increased revenue, and TEGNA’s content transformation initiatives. Excluding the aforementioned items, all other operating expenses were up less than two percent.
GAAP operating income totaled
Net income from continuing operations was
Special items for the quarter included FCC spectrum repacking
reimbursements of
FOURTH QUARTER NON-OPERATING AND CASH FLOW ITEMS
Interest expense in the quarter declined to
Other non-operating items were
Cash flow from operating activities for the fourth quarter of 2018 was
OVERVIEW OF FULL YEAR 2018 RESULTS
Total company revenues for the full year totaled
Operating expenses for 2018 were
Adjusted EBITDA was
FIRST QUARTER AND FULL YEAR 2019 OUTLOOK
In the first quarter of 2019,
First Quarter 2019 Key Guidance Metrics1 |
||
Total Company GAAP Revenue |
+ low single digits | |
Non-GAAP Revenue (excluding Olympics and political) | + mid-to-high single digits | |
Total Operating Expenses | + mid-single digits | |
Operating Expenses (excluding programming) | flat to up slightly | |
Full Year 2019 Key Guidance Metrics1 |
||
Subscription Revenue | + mid-teens percent | |
Corporate Expenses | approximately $45 million | |
Depreciation | $55 - 60 million | |
Amortization | approximately $35 million | |
Interest Expense | $190 - 195 million | |
Total Capital Expenditures | $70 - 75 million | |
Non-Recurring Cap Ex (includes $17M spectrum repack) | $35 - 40 million | |
Effective Tax Rate | 23 - 25% | |
Leverage Ratio | approximately 4.0x | |
Free Cash Flow as a % of 2018/19 Revenue2 | 17 - 18% | |
Free Cash Flow as a % of 2019/20 Revenue2 | 18 - 19% | |
KEY UPDATES
-
Multi-Year Carriage Agreements with DISH and
Verizon - In December and January,TEGNA reached two separate multi-year carriage agreements with DISH andVerizon . These agreements highlight the continued strength and growth of the subscription business. Looking forward, with 50 percent of subscribers up in 2019 for new retransmission agreements,TEGNA will maintain its focus on this high-margin subscription revenue stream. -
Completed Five Year Renewal of Affiliation Agreement with
ABC - In January,TEGNA entered into a comprehensive, five year deal through late 2023 with theABC network that renews the station affiliation agreements for all of the company’sABC -affiliated stations.TEGNA owns and operatesABC affiliates in nine markets across the country, covering seven percent ofthe United States and serving nearly eight million households.
CAPITAL ALLOCATION AND M&A UPDATE
1 Guidance includes newly added stations; does not assume any potential additional acquisitions. | |
2 Defined as Adjusted EBITDA (defined below) plus stock-based compensation, FCC repack reimbursements and program amortization less interest paid, taxes paid, program payments and capital expenditures. |
CONFERENCE CALL
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 Dec. 31, | |||||||||||
2018 | 2017 |
% Increase |
|||||||||
Revenues | $ | 642,136 | $ | 490,323 | 31.0 | ||||||
Operating expenses: | |||||||||||
Cost of revenues, exclusive of depreciation | 271,990 | 237,153 | 14.7 | ||||||||
Business units - Selling, general and administrative |
86,127 | 72,751 | 18.4 | ||||||||
Corporate - General and administrative expenses, |
10,945 | 12,481 | (12.3 | ) | |||||||
Depreciation | 14,355 | 13,347 | 7.6 | ||||||||
Amortization of intangible assets | 8,047 | 5,398 | 49.1 | ||||||||
Asset impairment and other (gains) | (2,370 | ) | (6,657 | ) | (64.4 | ) | |||||
Total | 389,094 | 334,473 | 16.3 | ||||||||
Operating income | 253,042 | 155,850 | 62.4 | ||||||||
Non-operating income (expense): | |||||||||||
Equity (loss) income in unconsolidated investments, |
(1,288 | ) | 11,951 | *** | |||||||
Interest expense | (47,010 | ) | (48,171 | ) | (2.4 | ) | |||||
Other non-operating items, net | 1,509 | (8,451 | ) | *** | |||||||
Total | (46,789 | ) | (44,671 | ) | 4.7 | ||||||
Income before income taxes | 206,253 | 111,179 | 85.5 | ||||||||
Provision (Benefit) for income taxes | 45,438 | (192,101 | ) | *** | |||||||
Net Income from continuing operations | $ | 160,815 | $ | 303,280 | (47.0 | ) | |||||
Earnings from continuing operations per share: | |||||||||||
Basic | $ | 0.74 | $ | 1.41 | (47.5 | ) | |||||
Diluted | $ | 0.74 | $ | 1.40 | (47.1 | ) | |||||
Weighted average number of common shares |
|||||||||||
Basic | 216,105 | 215,672 | 0.2 | ||||||||
Diluted | 216,632 | 216,431 | 0.1 | ||||||||
Dividends declared per share | $ | 0.07 | $ | 0.07 | — | ||||||
Table No. 1 (continued) | |||||||||||
Year ended Dec. 31, | |||||||||||
2018 | 2017 |
% Increase |
|||||||||
Revenues | $ | 2,207,282 | $ | 1,903,026 | 16.0 | ||||||
Operating expenses: | |||||||||||
Cost of revenues, exclusive of depreciation | 1,065,933 | 933,718 | 14.2 | ||||||||
Business units - Selling, general and administrative |
315,320 | 287,396 | 9.7 | ||||||||
Corporate - General and administrative expenses, |
52,467 | 54,943 | (4.5 | ) | |||||||
Depreciation | 55,949 | 55,068 | 1.6 | ||||||||
Amortization of intangible assets | 30,838 | 21,570 | 43.0 | ||||||||
Asset impairment and other (gains) charges | (11,701 | ) | 4,429 | *** | |||||||
Total | 1,508,806 | 1,357,124 | 11.2 | ||||||||
Operating income | 698,476 | 545,902 | 27.9 | ||||||||
Non-operating income (expense): | |||||||||||
Equity income in unconsolidated investments, net | 13,792 | 10,402 | 32.6 | ||||||||
Interest expense | (192,065 | ) | (210,284 | ) | (8.7 | ) | |||||
Other non-operating items, net | (11,496 | ) | (35,304 | ) | (67.4 | ) | |||||
Total | (189,769 | ) | (235,186 | ) | (19.3 | ) | |||||
Income before income taxes | 508,707 | 310,716 | 63.7 | ||||||||
Provision (Benefit) for income taxes | 107,367 | (137,246 | ) | *** | |||||||
Net Income from continuing operations | $ | 401,340 | $ | 447,962 | (10.4 | ) | |||||
Earnings from continuing operations per share: | |||||||||||
Basic | $ | 1.86 | $ | 2.08 | (10.6 | ) | |||||
Diluted | $ | 1.85 | $ | 2.06 | (10.2 | ) | |||||
Weighted average number of common shares |
|||||||||||
Basic | 216,184 | 215,587 | 0.3 | ||||||||
Diluted | 216,621 | 217,478 | (0.4 | ) | |||||||
Dividends declared per share | $ | 0.28 | $ | 0.35 | (20.0 | ) | |||||
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
We believe that such, expenses, charges and gains are not indicative of normal, ongoing operations. Such items vary from period to period and are significantly impacted by the timing and nature of these events. Therefore, while we may incur or recognize these types of expenses, charges and gains in the future, we believe that removing these items for purposes of calculating the non-GAAP financial measures provides investors with a more focused presentation of our ongoing operating performance.
The company also discusses Adjusted EBITDA (with and without corporate expenses), 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 from continuing operations before (1) interest expense, (2) income taxes, (3) equity income (losses) in unconsolidated investments, net, (4) other non-operating expenses (income), (5) severance expense, (6) asset impairment and other (gains) 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 alternate 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 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 our 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” and increased by “reimbursement from spectrum repacking”. 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) | ||||||||||||||||||||||||||||||||
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 |
||||||||||||||||||||||||||||||||
GAAP Measure |
Special Items |
Non-GAAP Measure |
||||||||||||||||||||||||||||||
Quarter ended |
Operating |
Net gain on |
Other non- |
Quarter ended |
||||||||||||||||||||||||||||
Asset impairment and other (gains) |
$ |
(2,370 |
) |
$ |
2,370 |
$ |
— |
$ |
— |
$ |
— |
|||||||||||||||||||||
Operating expenses | 389,094 | 2,370 | — | — | 391,464 | |||||||||||||||||||||||||||
Operating income | 253,042 | (2,370 | ) | — | — | 250,672 | ||||||||||||||||||||||||||
Equity (loss) in unconsolidated |
(1,288 | ) | — | (1,125 | ) | — | (2,413 | ) | ||||||||||||||||||||||||
Other non-operating items | 1,509 | — | — | 4,222 | 5,731 | |||||||||||||||||||||||||||
Total non-operating expenses | (46,789 | ) | — | (1,125 | ) | 4,222 | (43,692 | ) | ||||||||||||||||||||||||
Income before income taxes | 206,253 | (2,370 | ) | (1,125 | ) | 4,222 | 206,980 | |||||||||||||||||||||||||
Provision for income taxes | 45,438 | (581 | ) | (282 | ) | 2,803 | 47,378 | |||||||||||||||||||||||||
Net income from continuing |
160,815 | (1,789 | ) | (843 | ) | 1,419 | 159,602 | |||||||||||||||||||||||||
Net income from continuing |
$ | 0.74 | $ | (0.01 | ) | $ | — | $ | 0.01 | $ | 0.74 | |||||||||||||||||||||
GAAP Measure |
Special Items |
Non-GAAP Measure |
||||||||||||||||||||||||||||||
Quarter ended Dec. 31, 2017 |
Severance |
Operating |
Net gain on |
Other non- |
Tax reform |
Quarter ended Dec. 31, 2017 |
||||||||||||||||||||||||||
Cost of revenues, exclusive of |
$ | 237,153 | $ | (550 | ) | $ | — | $ | — | $ | — | $ | — | $ | 236,603 | |||||||||||||||||
Business units - Selling, general and |
72,751 | (14 | ) | — | — | — | — | 72,737 | ||||||||||||||||||||||||
Corporate - General and |
12,481 | (849 | ) | — | — | — | — | 11,632 | ||||||||||||||||||||||||
Asset impairment and other (gains) |
(6,657 | ) | — | 6,657 | — | — | — | — | ||||||||||||||||||||||||
Operating expenses | 334,473 | (1,413 | ) | 6,657 | — | — | — | 339,717 | ||||||||||||||||||||||||
Operating income | 155,850 | 1,413 | (6,657 | ) | — | — | — | 150,606 | ||||||||||||||||||||||||
Equity income in unconsolidated |
11,951 | — | — | (14,877 | ) | — | — | (2,926 | ) | |||||||||||||||||||||||
Other non-operating items | (8,451 | ) | — | — | — | 8,463 | — | 12 | ||||||||||||||||||||||||
Total non-operating expenses | (44,671 | ) | — | — | (14,877 | ) | 8,463 | — | (51,085 | ) | ||||||||||||||||||||||
Income before income taxes | 111,179 | 1,413 | (6,657 | ) | (14,877 | ) | 8,463 | — | 99,521 | |||||||||||||||||||||||
(Benefit) provision for income taxes | (192,101 | ) | 545 | (2,455 | ) | 720 | 2,906 | 221,450 | 31,065 | |||||||||||||||||||||||
Net income from continuing |
303,280 | 868 | (4,202 | ) | (15,597 | ) | 5,557 | (221,450 | ) | 68,456 | ||||||||||||||||||||||
Net income from continuing |
$ | 1.40 | $ | — | $ | (0.02 | ) | $ | (0.07 | ) | $ | 0.03 | $ | (1.02 | ) | $ | 0.32 | |||||||||||||||
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 |
||||||||||||||||||||||||||||||||
GAAP Measure |
Special Items |
Non-GAAP Measure |
||||||||||||||||||||||||||||||
Year ended |
Severance |
Operating |
Pension |
Net gain on |
Other non- |
Special tax |
Year ended |
|||||||||||||||||||||||||
Cost of revenues, exclusive of |
$ | 1,065,933 | $ | (931 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,065,002 | |||||||||||||||
Business units - Selling, general and |
315,320 | (875 | ) | — | — | — | — | — | 314,445 | |||||||||||||||||||||||
Corporate - General and |
52,467 | (5,481 | ) | — | — | — | — | — | 46,986 | |||||||||||||||||||||||
Asset impairment and other |
(11,701 | ) | — | 11,701 | — | — | — | — | — | |||||||||||||||||||||||
Operating expenses | 1,508,806 | (7,287 | ) | 11,701 | — | — | — | — | 1,513,220 | |||||||||||||||||||||||
Operating income | 698,476 | 7,287 | (11,701 | ) | — | — | — | — | 694,062 | |||||||||||||||||||||||
Equity income in unconsolidated |
13,792 | — | — | — | (17,883 | ) | — | — | (4,091 | ) | ||||||||||||||||||||||
Other non-operating items | (11,496 | ) | — | — | 7,498 | — | 19,406 | — | 15,408 | |||||||||||||||||||||||
Total non-operating expenses | (189,769 | ) | — | — | 7,498 | (17,883 | ) | 19,406 | — | (180,748 | ) | |||||||||||||||||||||
Income before income taxes | 508,707 | 7,287 | (11,701 | ) | 7,498 | (17,883 | ) | 19,406 | — | 513,314 | ||||||||||||||||||||||
Provision for income taxes | 107,367 | 1,714 | (1,379 | ) | 1,909 | (4,498 | ) | 4,981 | 7,007 | 117,101 | ||||||||||||||||||||||
Net income from continuing |
401,340 | 5,573 | (10,322 | ) | 5,589 | (13,385 | ) | 14,425 | (7,007 | ) | 396,213 | |||||||||||||||||||||
Net income from continuing |
$ | 1.85 | $ | 0.03 | $ | (0.05 | ) | $ | 0.03 | $ | (0.06 | ) | $ | 0.07 | $ | (0.03 | ) | $ | 1.83 | |||||||||||||
(a) - Per share amounts do not sum due to rounding. | ||||||||||||||||||||||||||||||||
GAAP Measure |
Special Items |
Non-GAAP Measure |
||||||||||||||||||||||||||||||
Year ended Dec. 31, 2017 |
Severance |
Operating |
Net gain on |
Other non- |
Tax reform |
Year ended |
||||||||||||||||||||||||||
Cost of revenues, exclusive of |
$ | 933,718 | $ | (1,072 | ) | $ | — | $ | — | $ | — | $ | — | $ | 932,646 | |||||||||||||||||
Business units - Selling, general |
287,396 | (1,485 | ) | — | — | — | — | 285,911 | ||||||||||||||||||||||||
Corporate - General and |
54,943 | (1,909 | ) | — | — | — | — | 53,034 | ||||||||||||||||||||||||
Asset impairment and other |
4,429 | — | (4,429 | ) | — | — | — | — | ||||||||||||||||||||||||
Operating expenses | 1,357,124 | (4,466 | ) | (4,429 | ) | — | — | — | 1,348,229 | |||||||||||||||||||||||
Operating income | 545,902 | 4,466 | 4,429 | — | — | — | 554,797 | |||||||||||||||||||||||||
Equity income (loss) in |
10,402 | — | — | (14,877 | ) | — | — | (4,475 | ) | |||||||||||||||||||||||
Other non-operating items | (35,304 | ) | — | — | — | 40,454 | — | 5,150 | ||||||||||||||||||||||||
Total non-operating expenses | (235,186 | ) | — | — | (14,877 | ) | 40,454 | — | (209,609 | ) | ||||||||||||||||||||||
Income before income taxes | 310,716 | 4,466 | 4,429 | (14,877 | ) | 40,454 | — | 345,188 | ||||||||||||||||||||||||
(Benefit) provision for income taxes | (137,246 | ) | 1,719 | 1,649 | 720 | 9,827 | 233,174 | 109,843 | ||||||||||||||||||||||||
Net income from continuing |
447,962 | 2,747 | 2,780 | (15,597 | ) | 30,627 | (233,174 | ) | 235,345 | |||||||||||||||||||||||
Net income from continuing |
$ | 2.06 | $ | 0.01 | $ | 0.01 | $ | (0.07 | ) | $ | 0.14 | $ | (1.07 | ) | $ | 1.08 | ||||||||||||||||
NON-GAAP FINANCIAL INFORMATION | |||||||||||
TEGNA Inc. | |||||||||||
Unaudited, in thousands of dollars | |||||||||||
Table No. 3 | |||||||||||
Quarter ended Dec. 31, | |||||||||||
2018 | 2017 |
% |
|||||||||
Net income from continuing operations (GAAP basis) | $ | 160,815 | $ | 303,280 | (47.0 | ) | |||||
Provision (benefit) for income taxes | 45,438 | (192,101 | ) | *** | |||||||
Interest expense | 47,010 | 48,171 | (2.4 | ) | |||||||
Equity income (loss) in unconsolidated investments, net | 1,288 | (11,951 | ) | *** | |||||||
Other non-operating items | (1,509 | ) | 8,451 | *** | |||||||
Operating income (GAAP basis) | 253,042 | 155,850 | 62.4 | ||||||||
Severance expense | — | 1,413 | (100.0 | ) | |||||||
Asset impairment and other gains | (2,370 | ) | (6,657 | ) | (64.4 | ) | |||||
Adjusted operating income (non-GAAP basis) | 250,672 | 150,606 | 66.4 | ||||||||
Depreciation | 14,355 | 13,347 | 7.6 | ||||||||
Amortization of intangible assets | 8,047 | 5,398 | 49.1 | ||||||||
Adjusted EBITDA (Non-GAAP basis) | $ | 273,074 | $ | 169,351 | 61.2 | ||||||
Corporate - General and administrative expense, exclusive |
10,945 | 11,632 | (5.9 | ) | |||||||
Adjusted EBITDA, excluding Corporate (Non-GAAP |
$ | 284,019 | $ | 180,983 | 56.9 | ||||||
Year ended Dec. 31, | |||||||||||
2018 | 2017 |
% |
|||||||||
Net income from continuing operations (GAAP basis) | $ | 401,340 | $ | 447,962 | (10.4 | ) | |||||
Provision (benefit) for income taxes | 107,367 | (137,246 | ) | *** | |||||||
Interest expense | 192,065 | 210,284 | (8.7 | ) | |||||||
Equity income in unconsolidated investments, net | (13,792 | ) | (10,402 | ) | 32.6 | ||||||
Other non-operating items | 11,496 | 35,304 | (67.4 | ) | |||||||
Operating income (GAAP basis) | 698,476 | 545,902 | 27.9 | ||||||||
Severance expense | 7,287 | 4,466 | 63.2 | ||||||||
Asset impairment and other (gains) charges | (11,701 | ) | 4,429 | *** | |||||||
Adjusted operating income (non-GAAP basis) | 694,062 | 554,797 | 25.1 | ||||||||
Depreciation | 55,949 | 55,068 | 1.6 | ||||||||
Amortization of intangible assets | 30,838 | 21,570 | 43.0 | ||||||||
Adjusted EBITDA (Non-GAAP basis) | $ | 780,849 | $ | 631,435 | 23.7 | ||||||
Corporate - General and administrative expense, exclusive |
46,986 | 53,034 | (11.4 | ) | |||||||
Adjusted EBITDA, excluding Corporate (Non-GAAP |
$ | 827,835 | $ | 684,469 | 20.9 | ||||||
NON-GAAP FINANCIAL INFORMATION | |||||||||||||||||||||
TEGNA Inc. | |||||||||||||||||||||
Unaudited, in thousands of dollars | |||||||||||||||||||||
Table No. 4 | |||||||||||||||||||||
Reconciliations of adjusted revenues to our revenues presented in
accordance with GAAP on our Consolidated |
|||||||||||||||||||||
Quarter ended Dec. 31, | Year ended Dec. 31, | ||||||||||||||||||||
2018 | 2017 |
% Increase |
2018 | 2017 |
% Increase |
||||||||||||||||
Advertising and Marketing |
$ | 277,116 | $ | 296,466 | (6.5 | %) | $ | 1,106,754 | $ | 1,139,642 | (2.9 | %) | |||||||||
Subscription | 218,456 | 178,405 | 22.4 | % | 840,838 | 718,750 | 17.0 | % | |||||||||||||
Political | 139,888 | 9,871 | *** | 233,613 | 23,258 | *** | |||||||||||||||
Other | 6,676 | 5,581 | 19.6 | % | 26,077 | 21,376 | 22.0 | % | |||||||||||||
Total revenues (GAAP |
$ | 642,136 | $ | 490,323 | 31.0 | % | $ | 2,207,282 | $ | 1,903,026 | 16.0 | % | |||||||||
Factors impacting |
|||||||||||||||||||||
Estimated incremental |
— | — | *** | (24,000 | ) | (323 | ) | *** | |||||||||||||
Political | (139,888 | ) | (9,871 | ) | *** | (233,613 | ) | (23,258 | ) | *** | |||||||||||
Discontinued digital |
|
— |
|
— |
*** |
|
— |
|
(16,673 | ) | (100.0 | %) | |||||||||
Total company revenues |
$ | 502,248 | $ | 480,452 | 4.5 | % | $ | 1,949,669 | $ | 1,862,772 | 4.7 | % | |||||||||
(a) Includes traditional advertising, digital advertising as well as revenue from the company's digital marketing services business. | |||||||||||||||||||||
NON-GAAP FINANCIAL INFORMATION | ||||||||||||||||
TEGNA Inc. | ||||||||||||||||
Unaudited, in thousands of dollars | ||||||||||||||||
Table No. 5 | ||||||||||||||||
“Free cash flow” is a non-GAAP liquidity measure used in addition
to and in conjunction with results |
||||||||||||||||
Quarter ended Dec. 31, | Year ended Dec. 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net cash flow from operating activities | $ | 194,549 | $ | 37,690 | $ | 527,209 | $ | 389,429 | ||||||||
Purchase of property and equipment | (29,949 | ) | (13,040 | ) | (65,230 | ) | (76,886 | ) | ||||||||
Reimbursement from spectrum |
2,343 | — | 7,400 | — | ||||||||||||
Free cash flow | $ | 166,943 | $ | 24,650 | $ | 469,379 | $ | 312,543 | ||||||||
Note: The full year 2017 free cash flow
numbers presented in the table above includes
View source version on businesswire.com: https://www.businesswire.com/news/home/20190301005234/en/
Source:
For investor inquiries:
Jeffrey Heinz
Vice President, Investor
Relations
703-873-6917
jheinz@TEGNA.com
For media inquiries:
Anne Bentley
Vice President,
Communications
703-873-6366
abentley@TEGNA.com