TEGNA | Investor Relations

SEC Filings

10-Q

TEGNA INC filed this Form 10-Q on 11/08/2018

As of September 30, 2018, we had unused borrowing capacity of $1.42 billion under our revolving credit facility.

Our operations have historically generated strong positive cash flow which, along with availability under our existing revolving credit facility, provides adequate liquidity to invest in organic and strategic growth opportunities, as well as acquisitions such as our 2018 acquisition of KFMB and our pending acquisition of stations in Toledo, OH, and Odessa-Midland, TX. Our financial and operating performance, as well as our ability to generate sufficient cash flow to maintain compliance with credit facility covenants, are subject to certain risk factors; see Part II. Other Information, Item 1A. Risk Factors of our 2017 Annual Report on Form 10-K for further discussion.

Cash Flows

The following table provides a summary of our cash flow information followed by a discussion of the key elements of our cash flow (in thousands):



	Nine months ended Sept. 30,
	2018			2017

Cash, cash equivalents and restricted cash from continuing operations, beginning of period	$	128,041		$	44,076
Cash, cash equivalents and restricted cash from discontinued operations, beginning of period	—			61,041
Balance of cash, cash equivalents and restricted cash beginning of the period	128,041			105,117

Operating activities:
Net income (loss)	244,850			(88,579		)
Depreciation, amortization and other non-cash adjustments	54,606			496,142
Pension (contributions), net of expense	(39,932		)	(12,547		)
Spectrum channel share agreement proceeds	—			32,588
Other, net	73,136			(75,865		)
Net cash flows from operating activities	332,660			351,739
Net cash (used for) provided by investing activities	(352,407		)	153,366
Net cash used for financing activities	(84,528		)	(197,248		)
(Decrease) increase in cash and cash equivalents	(104,275		)	307,857

Cash, cash equivalents and restricted cash from continuing operations, end of period	23,766			412,974
Cash, cash equivalents and restricted cash from discontinued operations, end of period	—			—
Balance of cash, cash equivalents and restricted cash end of the period	$	23,766		$	412,974

Operating Activities - Cash flow from operating activities was $332.7 million for the nine months ended September 30, 2018, compared to $351.7 million for the same period in 2017. The decrease in net cash flow from operating activities was primarily due to the absence of approximately $107.8 million of operating cash flow related to Cars.com and CareerBuilder which were spun-off and sold, respectively, during 2017 as well as an increase of $27.4 million in pension payments and contributions in 2018.

These decreases were partially offset by declines in tax payments of $53.1 million resulting primarily from lower tax rates following enactment of the Tax Act, as well as lower interest payments of $12.2 million primarily due to lower average debt outstanding. Also offsetting the decreases was a $22.1 million increase in deferred revenue, primarily due to upfront cash payments made for political advertisements which will air in the fourth quarter of 2018.

Investing Activities - Cash flow used for investing activities was $352.4 million for the nine months ended September 30, 2018, compared to cash provided by investing activities of $153.4 million for the same period 2017. The cash used for investing activities in 2018 was primarily due to our acquisition of KFMB for $328.4 million and purchases of property and equipment of $35.3 million. The cash provided by investing activities in 2017 was primarily a result of the sale of the majority of our ownership in CareerBuilder, which provided $198.3 million of proceeds, net of cash transferred. Additionally, we had cash inflow of $21.6 million from the sale of assets, primarily comprised of proceeds of $14.6 million from the sale of Gannett common stock. These inflows were partially offset by purchases of property and equipment of $63.8 million in 2017.