Delaware | 1-6961 | 16-0442930 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
7950 Jones Branch Drive McLean, Virginia | 22107-0150 | |
(Address of principal executive offices) | (Zip Code) | |
(703) 854-7000 | ||
(Registrant's telephone number, including area code) | ||
Not Applicable | ||
(Former name or former address, if changed since last report.) |
(d) | Exhibits | |
See Index to Exhibits attached hereto. |
TEGNA Inc. | ||
Date: February 16, 2016 | By: | /s/ Clifton A. McClelland III |
Clifton A. McClelland III | ||
Vice President and Controller |
Exhibit No. | Description | |
99.1 | TEGNA Inc. News Release dated February 16, 2016 (earnings release reporting TEGNA Inc.'s financial results for the quarter and year ended December 31, 2015). |
FOR IMMEDIATE RELEASE | Tuesday, February 16, 2016 |
• | Overall company revenue totaled $3.05 billion, growth of 2 percent on a pro forma, constant currency basis despite the absence of a record $200 million of Olympic and political spending in 2014 |
• | Adjusted EBITDA totaled $1.06 billion, an increase of 16 percent |
• | Adjusted EBITDA margin of 35 percent, unchanged from 2014 despite the absence of substantial Olympic and political spending |
• | Successfully completed long-term affiliation agreements with CBS and NBC and several significant retransmission agreements |
• | GAAP earnings from continuing operations of $0.69 per diluted share. Non-GAAP earnings from continuing operations of $0.53 per diluted share, an 8 percent year-over-year increase |
• | Overall company revenue decline of 3 percent on a pro forma, constant currency basis reflecting primarily the absence of record political spending of $92.4 million in the same quarter last year |
• | Media Segment revenues up 12 percent excluding incremental political advertising |
• | Digital Segment revenues over 2 percent higher on a pro forma, constant currency basis |
• | Adjusted EBITDA totaled $305.8 million resulting in an Adjusted EBITDA margin of 38 percent |
• | Free cash flow and proceeds from headquarter building sale totaled $358 million |
• | Building sale proceeds used to add $75 million to $750 million share repurchase authorization and redeem $180 million of fixed-rate debt |
GAAP | Non-GAAP | ||||||||||||||
Fourth Quarter 2015 | Fourth Quarter 2014 | Fourth Quarter 2015 | Fourth Quarter 2014 | ||||||||||||
Operating revenue | $ | 805,264 | $ | 842,046 | $ | 805,264 | $ | 842,046 | |||||||
Operating expense | 478,369 | 614,706 | 549,260 | 574,899 | |||||||||||
Operating income | $ | 326,895 | $ | 227,340 | $ | 256,004 | $ | 267,147 | |||||||
Income from continuing operations | $ | 155,942 | $ | 483,431 | $ | 119,334 | $ | 112,623 | |||||||
See Table 3 for reconciliations between the GAAP reported numbers to the Non-GAAP measure. |
Media Segment Revenue Detail (Dollars in thousands) | ||||||
Fourth Quarter 2015 | Percentage change from Fourth Quarter 2014 | |||||
Core (Local & National) | $ | 296,325 | 7 | % | ||
Political | 10,525 | (89 | %) | |||
Retransmission (a) | 119,944 | 27 | % | |||
Online | 31,080 | 15 | % | |||
Other | 4,359 | (16 | %) | |||
Total | $ | 462,233 | (7 | %) | ||
(a) Reverse compensation to networks is included as part of programming costs. |
Fourth Quarter | |||||||||
2015 | 2014 | Percentage Change | |||||||
Digital Segment Revenue | |||||||||
Reported (GAAP Measure) | $ | 343,031 | $ | 347,215 | (1.2)% | ||||
Adjust for business sold | (3,736 | ) | (13,275 | ) | *** | ||||
Constant currency impact | — | (1,939 | ) | *** | |||||
Total adjusted pro-forma revenue | $ | 339,295 | $ | 332,001 | 2.2% | ||||
For investor inquiries, contact: | For media inquiries, contact: | |
Jeffrey Heinz | Jeremy Gaines | |
Vice President, Investor Relations | Vice President, Corporate Communications | |
703-854-6917 | 703-854-6049 | |
jheinz@TEGNA.com | jmgaines@TEGNA.com |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME TEGNA Inc. Unaudited, in thousands (except per share amounts) | |||||||||||
Table No. 1 | |||||||||||
Fourth Quarter 2015 | Fourth Quarter 2014 | % Increase (Decrease) | |||||||||
(recast) | |||||||||||
Net operating revenues: | |||||||||||
Media | $ | 462,233 | $ | 494,831 | (6.6 | ) | |||||
Digital | 343,031 | 347,215 | (1.2 | ) | |||||||
Total | 805,264 | 842,046 | (4.4 | ) | |||||||
Operating expenses: | |||||||||||
Cost of sales and operating expenses, exclusive of depreciation | 232,555 | 254,898 | (8.8 | ) | |||||||
Selling, general and administrative expenses, exclusive of depreciation | 273,571 | 269,680 | 1.4 | ||||||||
Depreciation | 20,051 | 25,470 | (21.3 | ) | |||||||
Amortization of intangible assets | 28,128 | 29,312 | (4.0 | ) | |||||||
Facility consolidation and asset impairment charges | (75,936 | ) | 35,346 | (314.8 | ) | ||||||
Total | 478,369 | 614,706 | (22.2 | ) | |||||||
Operating income | 326,895 | 227,340 | 43.8 | ||||||||
Non-operating (expense) income: | |||||||||||
Equity loss in unconsolidated investees, net | (941 | ) | (5,330 | ) | (82.3 | ) | |||||
Interest expense | (66,758 | ) | (73,384 | ) | (9.0 | ) | |||||
Other non-operating items | (6,182 | ) | 444,165 | (101.4 | ) | ||||||
Total | (73,881 | ) | 365,451 | (120.2 | ) | ||||||
Income before income taxes | 253,014 | 592,791 | (57.3 | ) | |||||||
Provision for income taxes | 81,609 | 90,422 | (9.7 | ) | |||||||
Income from continuing operations | 171,405 | 502,369 | (65.9 | ) | |||||||
Net income attributable to noncontrolling interests | (15,463 | ) | (18,938 | ) | (18.3 | ) | |||||
Net income from continuing operations attributable to TEGNA Inc. | $ | 155,942 | $ | 483,431 | (67.7 | ) | |||||
Earnings from continuing operations per share: | |||||||||||
Basic | $ | 0.71 | $ | 2.14 | (66.8 | ) | |||||
Diluted | $ | 0.69 | $ | 2.09 | (67.0 | ) | |||||
Weighted average number of common shares outstanding: | |||||||||||
Basic | 220,768 | 226,046 | (2.3 | ) | |||||||
Diluted | 225,129 | 231,157 | (2.6 | ) | |||||||
Dividends declared per share | $ | 0.14 | $ | 0.20 | (30.0 | ) | |||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME TEGNA Inc. Unaudited, in thousands (except per share amounts) | |||||||||||
Table No. 1 (continued) | |||||||||||
Year Ended 2015 | Year Ended 2014 | % Increase (Decrease) | |||||||||
(recast) | |||||||||||
Net operating revenues: | |||||||||||
Media | $ | 1,682,144 | $ | 1,691,866 | (0.6 | ) | |||||
Digital | 1,368,801 | 934,275 | 46.5 | ||||||||
Total | 3,050,945 | 2,626,141 | 16.2 | ||||||||
Operating expenses: | |||||||||||
Cost of sales and operating expenses, exclusive of depreciation | 923,336 | 954,990 | (3.3 | ) | |||||||
Selling, general and administrative expenses, exclusive of depreciation | 1,068,221 | 766,854 | 39.3 | ||||||||
Depreciation | 90,803 | 85,866 | 5.7 | ||||||||
Amortization of intangible assets | 114,284 | 65,971 | 73.2 | ||||||||
Facility consolidation and asset impairment charges | (58,857 | ) | 44,961 | (230.9 | ) | ||||||
Total | 2,137,787 | 1,918,642 | 11.4 | ||||||||
Operating income | 913,158 | 707,499 | 29.1 | ||||||||
Non-operating (expense) income: | |||||||||||
Equity income (loss) in unconsolidated investees, net | (5,064 | ) | 151,462 | (103.3 | ) | ||||||
Interest expense | (273,629 | ) | (272,668 | ) | 0.4 | ||||||
Other non-operating items | (11,529 | ) | 404,403 | (102.9 | ) | ||||||
Total | (290,222 | ) | 283,197 | (202.5 | ) | ||||||
Income before income taxes | 622,936 | 990,696 | (37.1 | ) | |||||||
Provision for income taxes | 202,314 | 234,471 | (13.7 | ) | |||||||
Income from continuing operations | 420,622 | 756,225 | (44.4 | ) | |||||||
Net income attributable to noncontrolling interests | (63,164 | ) | (68,289 | ) | (7.5 | ) | |||||
Net income from continuing operations attributable to TEGNA Inc. | $ | 357,458 | $ | 687,936 | (48.0 | ) | |||||
Earnings from continuing operations per share: | |||||||||||
Basic | $ | 1.59 | $ | 3.04 | (47.7 | ) | |||||
Diluted | $ | 1.56 | $ | 2.97 | (47.5 | ) | |||||
Weighted average number of common shares outstanding: | |||||||||||
Basic | 224,688 | 226,292 | (0.7 | ) | |||||||
Diluted | 229,721 | 231,907 | (0.9 | ) | |||||||
Dividends declared per share | $ | 0.68 | $ | 0.80 | (15.0 | ) |
BUSINESS SEGMENT INFORMATION TEGNA Inc. Unaudited, in thousands of dollars | |||||||||||
Table No. 2 | |||||||||||
Fourth Quarter 2015 | Fourth Quarter 2014 | % Increase (Decrease) | |||||||||
(recast) | |||||||||||
Net operating revenues: | |||||||||||
Media | $ | 462,233 | $ | 494,831 | (6.6 | ) | |||||
Digital | 343,031 | 347,215 | (1.2 | ) | |||||||
Total | $ | 805,264 | $ | 842,046 | (4.4 | ) | |||||
Operating income (net of depreciation, amortization and facility consolidation and asset impairment charges): | |||||||||||
Media | $ | 200,680 | $ | 243,179 | (17.5 | ) | |||||
Digital | 53,924 | 30,905 | 74.5 | ||||||||
Corporate | (17,601 | ) | (17,801 | ) | (1.1 | ) | |||||
Net gain on sale of corporate headquarters building | 89,892 | — | *** | ||||||||
Unallocated costs (c) | — | (28,943 | ) | (100.0 | ) | ||||||
Total | $ | 326,895 | $ | 227,340 | 43.8 | ||||||
Depreciation, amortization and facility consolidation and asset impairment charges: | |||||||||||
Media | $ | 20,173 | $ | 26,007 | (22.4 | ) | |||||
Digital | 40,857 | 62,098 | (34.2 | ) | |||||||
Corporate | (88,787 | ) | 2,023 | *** | |||||||
Total | $ | (27,757 | ) | $ | 90,128 | (130.8 | ) | ||||
Adjusted EBITDA (a): | |||||||||||
Media | $ | 224,474 | $ | 270,536 | (17.0 | ) | |||||
Digital | 96,205 | 96,114 | 0.1 | ||||||||
Corporate (b) | (14,846 | ) | (15,778 | ) | (5.9 | ) | |||||
Unallocated costs (c) | — | (28,943 | ) | (100.0 | ) | ||||||
Total | $ | 305,833 | $ | 321,929 | (5.0 | ) | |||||
(a) "Adjusted EBITDA" is a non-GAAP measure used by management to measure, analyze and compare the performance of its business segment operations at a more detailed level and in a meaningful and consistent manner. The definition of "Adjusted EBITDA" is provided in the section "Use of Non-GAAP Information" and Table No. 4 provides reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP on the company's condensed consolidated statements of income. | |||||||||||
(b) Includes non cash rent of $1.7 million as a result of the sale of the company's McLean, VA headquarters. | |||||||||||
(c) Unallocated expenses represent certain expenses that historically were allocated to the former Publishing Segment but that could not be allocated to discontinued operations because they were not clearly and specifically identifiable to the spun-off businesses, the accounting criteria for reclassification to discontinued operations. |
BUSINESS SEGMENT INFORMATION TEGNA Inc. Unaudited, in thousands of dollars | |||||||||||
Table No. 2 (continued) | |||||||||||
Year Ended 2015 | Year Ended 2014 | % Increase (Decrease) | |||||||||
(recast) | |||||||||||
Net operating revenues: | |||||||||||
Media | $ | 1,682,144 | $ | 1,691,866 | (0.6 | ) | |||||
Digital | 1,368,801 | 934,275 | 46.5 | ||||||||
Total | $ | 3,050,945 | $ | 2,626,141 | 16.2 | ||||||
Operating income (net of depreciation, amortization and facility consolidation and asset impairment charges): | |||||||||||
Media | $ | 714,237 | $ | 747,020 | (4.4 | ) | |||||
Digital | 229,386 | 119,908 | 91.3 | ||||||||
Corporate | (68,418 | ) | (71,256 | ) | (4.0 | ) | |||||
Net gain on sale of corporate headquarters building | 89,892 | — | *** | ||||||||
Unallocated costs (c) | (51,939 | ) | (88,173 | ) | (41.1 | ) | |||||
Total | $ | 913,158 | $ | 707,499 | 29.1 | ||||||
Depreciation, amortization and facility consolidation and asset impairment charges: | |||||||||||
Media | $ | 81,665 | $ | 94,129 | (13.2 | ) | |||||
Digital | 146,907 | 91,967 | 59.7 | ||||||||
Corporate | (82,342 | ) | 10,702 | (869.4 | ) | ||||||
Total | $ | 146,230 | $ | 196,798 | (25.7 | ) | |||||
Adjusted EBITDA (a): | |||||||||||
Media | $ | 787,162 | $ | 844,880 | (6.8 | ) | |||||
Digital | 379,889 | 214,986 | 76.7 | ||||||||
Corporate (b) | (59,218 | ) | (60,554 | ) | (2.2 | ) | |||||
Unallocated costs (c) | (51,939 | ) | (88,173 | ) | (41.1 | ) | |||||
Total | $ | 1,055,894 | $ | 911,139 | 15.9 | ||||||
(a) "Adjusted EBITDA" is a non-GAAP measure used by management to measure, analyze and compare the performance of its business segment operations at a more detailed level and in a meaningful and consistent manner. The definition of "Adjusted EBITDA" is provided in the section "Use of Non-GAAP Information" and Table No. 4 provides reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP on the company's condensed consolidated statements of income. | |||||||||||
(b) Includes non cash rent of $1.7 million as a result of the sale of the company's McLean, VA headquarters. | |||||||||||
(c) Unallocated expenses represent certain expenses that historically were allocated to the former Publishing Segment but that could not be allocated to discontinued operations because they were not clearly and specifically identifiable to the spun-off businesses, the accounting criteria for reclassification to discontinued operations. |
NON-GAAP FINANCIAL INFORMATION TEGNA Inc. 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 condensed consolidated statements of income follow: | |||||||||||||||||||||||
GAAP Measure | Special Items | Non-GAAP Measure | |||||||||||||||||||||
Fourth Quarter 2015 | Workforce restructuring | Facility consolidation and asset impairment | Non-operating items | Special tax credit | Fourth Quarter 2015 | ||||||||||||||||||
Cost of goods sold, exclusive of depreciation | $ | 232,555 | $ | (4,288 | ) | $ | — | $ | — | $ | — | $ | 228,267 | ||||||||||
Selling general and administrative expenses, exclusive of depreciation | 273,571 | (757 | ) | — | — | — | 272,814 | ||||||||||||||||
Facility consolidation and asset impairment | (75,936 | ) | — | 75,936 | — | — | — | ||||||||||||||||
Operating expenses | 478,369 | (5,045 | ) | 75,936 | — | — | 549,260 | ||||||||||||||||
Operating income | 326,895 | 5,045 | (75,936 | ) | — | — | 256,004 | ||||||||||||||||
Other non-operating items | (6,182 | ) | — | — | 8,829 | — | 2,647 | ||||||||||||||||
Total non-op (expense) income | (73,881 | ) | — | — | 8,829 | — | (65,052 | ) | |||||||||||||||
Income before income taxes | 253,014 | 5,045 | (75,936 | ) | 8,829 | — | 190,952 | ||||||||||||||||
Provision for income taxes | 81,609 | 1,961 | (32,140 | ) | 3,442 | 1,283 | 56,155 | ||||||||||||||||
Net income from continuing operations attributable to TEGNA | 155,942 | 3,084 | (43,796 | ) | 5,387 | (1,283 | ) | 119,334 | |||||||||||||||
Net income from continuing operations per share-diluted (a) | $ | 0.69 | $ | 0.01 | $ | (0.19 | ) | $ | 0.02 | $ | (0.01 | ) | $ | 0.53 | |||||||||
(a) total per share does not sum due to rounding | |||||||||||||||||||||||
GAAP Measure | Special Items | Non-GAAP Measure | |||||||||||||||||||||
Fourth Quarter 2014 | Workforce restructuring | Facility consolidation and asset impairment | Non-operating items | Special tax credit | Fourth Quarter 2014 | ||||||||||||||||||
(recast) | (recast) | ||||||||||||||||||||||
Cost of goods sold, exclusive of depreciation | $ | 254,898 | $ | (3,792 | ) | $ | — | $ | — | $ | — | $ | 251,106 | ||||||||||
Selling general and administrative expenses, exclusive of depreciation | 269,680 | (669 | ) | — | — | — | 269,011 | ||||||||||||||||
Facility consolidation and asset impairment | 35,346 | — | (35,346 | ) | — | — | — | ||||||||||||||||
Operating expenses | 614,706 | (4,461 | ) | (35,346 | ) | — | — | 574,899 | |||||||||||||||
Operating income | 227,340 | 4,461 | 35,346 | — | — | 267,147 | |||||||||||||||||
Equity income (loss) in unconsolidated investees, net | (5,330 | ) | — | — | 4,805 | — | (525 | ) | |||||||||||||||
Other non-operating items | 444,165 | — | — | (444,045 | ) | — | 120 | ||||||||||||||||
Total non-op (expense) income | 365,451 | — | — | (439,240 | ) | — | (73,789 | ) | |||||||||||||||
Income before income taxes | 592,791 | 4,461 | 35,346 | (439,240 | ) | — | 193,358 | ||||||||||||||||
Provision for income taxes | 90,422 | 1,660 | 3,928 | (163,342 | ) | 129,129 | 61,797 | ||||||||||||||||
Net income from continuing operations attributable to TEGNA | 483,431 | 2,801 | 31,418 | (275,898 | ) | (129,129 | ) | 112,623 | |||||||||||||||
Net income from continuing operations per share - diluted | $ | 2.09 | $ | 0.01 | $ | 0.14 | $ | (1.19 | ) | $ | (0.56 | ) | $ | 0.49 |
NON-GAAP FINANCIAL INFORMATION TEGNA Inc. Unaudited, in thousands of dollars (except per share amounts) | |||||||||||||||||||||||
Table No. 3 (continued) | |||||||||||||||||||||||
GAAP Measure | Special Items | Non-GAAP Measure | |||||||||||||||||||||
Year Ended 2015 | Workforce restructuring | Facility consolidation and asset impairment | Non-operating items | Special tax credit | Year Ended 2015 | ||||||||||||||||||
Cost of goods sold, exclusive of depreciation | $ | 923,336 | $ | (6,430 | ) | $ | 12,709 | $ | — | $ | — | $ | 929,615 | ||||||||||
Selling general and administrative expenses, exclusive of depreciation | 1,068,221 | (1,135 | ) | — | — | — | 1,067,086 | ||||||||||||||||
Facility consolidation and asset impairment | (58,857 | ) | — | 58,857 | — | — | — | ||||||||||||||||
Operating expenses | 2,137,787 | (7,565 | ) | 71,566 | — | — | 2,201,788 | ||||||||||||||||
Operating income | 913,158 | 7,565 | (71,566 | ) | — | — | 849,157 | ||||||||||||||||
Other non-operating items | (11,529 | ) | — | — | 10,282 | — | (1,247 | ) | |||||||||||||||
Total non-op (expense) income | (290,222 | ) | — | — | 10,282 | — | (279,940 | ) | |||||||||||||||
Income before income taxes | 622,936 | 7,565 | (71,566 | ) | 10,282 | — | 569,217 | ||||||||||||||||
Provision for income taxes | 202,314 | 2,899 | (30,514 | ) | (2,295 | ) | 3,305 | 175,709 | |||||||||||||||
Net income from continuing operations attributable to TEGNA | 357,458 | 4,666 | (41,052 | ) | 12,577 | (3,305 | ) | 330,344 | |||||||||||||||
Net income from continuing operations per share - diluted (a) | $ | 1.56 | $ | 0.02 | $ | (0.17 | ) | $ | 0.05 | $ | (0.01 | ) | $ | 1.44 | |||||||||
(a) total per share does not sum due to rounding | |||||||||||||||||||||||
GAAP Measure | Special Items | Non-GAAP Measure | |||||||||||||||||||||
Year Ended 2014 | Workforce restructuring | Facility consolidation and asset impairment | Non-operating items | Special tax credit | Year Ended 2014 | ||||||||||||||||||
(recast) | (recast) | ||||||||||||||||||||||
Cost of goods sold, exclusive of depreciation | $ | 954,990 | $ | (5,816 | ) | $ | — | $ | — | $ | — | $ | 949,174 | ||||||||||
Selling and general and administrative expenses, exclusive of depreciation | 766,854 | (1,026 | ) | — | — | — | 765,828 | ||||||||||||||||
Amortization of intangible assets | 65,971 | — | (4,480 | ) | — | — | 61,491 | ||||||||||||||||
Facility consolidation and asset impairment | 44,961 | — | (44,961 | ) | — | — | — | ||||||||||||||||
Operating expenses | 1,918,642 | (6,842 | ) | (49,441 | ) | — | — | 1,862,359 | |||||||||||||||
Operating income | 707,499 | 6,842 | 49,441 | — | — | 763,782 | |||||||||||||||||
Equity income in unconsolidated investees, net | 151,462 | — | — | (137,199 | ) | — | 14,263 | ||||||||||||||||
Other non-operating items | 404,403 | — | — | (404,674 | ) | — | (271 | ) | |||||||||||||||
Total non-op (expense) income | 283,197 | — | — | (541,873 | ) | — | (258,676 | ) | |||||||||||||||
Income before income taxes | 990,696 | 6,842 | 49,441 | (541,873 | ) | — | 505,106 | ||||||||||||||||
Provision for income taxes | 234,471 | 2,545 | 9,059 | (203,234 | ) | 109,933 | 152,774 | ||||||||||||||||
Net income from continuing operations attributable to TEGNA | 687,936 | 4,297 | 40,382 | (338,639 | ) | (109,933 | ) | 284,043 | |||||||||||||||
Net income from continuing operations per share - diluted (a) | $ | 2.97 | $ | 0.02 | $ | 0.17 | $ | (1.46 | ) | $ | (0.47 | ) | $ | 1.22 | |||||||||
(a) total per share does not sum due to rounding |
NON-GAAP FINANCIAL INFORMATION TEGNA Inc. Unaudited, in thousands of dollars | |||||||||||||||||||
Table No. 4 | |||||||||||||||||||
Reconciliations of Adjusted EBITDA to the most directly comparable financial measure calculated and presented in accordance with GAAP on the company's condensed consolidated statements of income follow: | |||||||||||||||||||
Fourth Quarter 2015: | |||||||||||||||||||
Media | Digital | Corporate | Consolidated Total | ||||||||||||||||
Net income from continuing operations attributable to TEGNA Inc. (GAAP basis) | $ | 155,942 | |||||||||||||||||
Net income attributable to noncontrolling interests | 15,463 | ||||||||||||||||||
Provision for income taxes | 81,609 | ||||||||||||||||||
Interest expense | 66,758 | ||||||||||||||||||
Equity loss in unconsolidated investees, net | 941 | ||||||||||||||||||
Other non-operating items | 6,182 | ||||||||||||||||||
Operating income (GAAP basis) | $ | 200,680 | $ | 53,924 | $ | 72,291 | $ | 326,895 | |||||||||||
Workforce restructuring | 3,621 | 1,424 | — | 5,045 | |||||||||||||||
Other transformation costs | 3,006 | 1,988 | 962 | 5,956 | |||||||||||||||
Asset impairment charges | — | 8,000 | — | 8,000 | |||||||||||||||
Gain on sale of Corporate HQ building, net | — | — | (89,892 | ) | (89,892 | ) | |||||||||||||
Adjusted operating income (non-GAAP basis) | 207,307 | 65,336 | (16,639 | ) | 256,004 | ||||||||||||||
Depreciation | 11,676 | 8,232 | 143 | 20,051 | |||||||||||||||
Amortization | 5,491 | 22,637 | — | 28,128 | |||||||||||||||
Non-cash rent | — | — | 1,650 | 1,650 | |||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 224,474 | $ | 96,205 | $ | (14,846 | ) | $ | 305,833 | ||||||||||
Fourth Quarter 2014 (recast): | |||||||||||||||||||
Media | Digital | Corporate | Unallocated Costs | Consolidated Total | |||||||||||||||
Net income from continuing operations attributable to TEGNA Inc. (GAAP basis) | $ | 483,431 | |||||||||||||||||
Net income attributable to noncontrolling interests | 18,938 | ||||||||||||||||||
Provision for income taxes | 90,422 | ||||||||||||||||||
Interest expense | 73,384 | ||||||||||||||||||
Equity loss in unconsolidated investees, net | 5,330 | ||||||||||||||||||
Other non-operating items | (444,165 | ) | |||||||||||||||||
Operating income (GAAP basis) | $ | 243,179 | $ | 30,905 | $ | (17,801 | ) | $ | (28,943 | ) | $ | 227,340 | |||||||
Workforce restructuring | 1,350 | 3,111 | — | — | 4,461 | ||||||||||||||
Other transformation costs | 4,104 | — | — | — | 4,104 | ||||||||||||||
Asset impairment charges | — | 31,242 | — | — | 31,242 | ||||||||||||||
Adjusted operating income (non-GAAP basis) | 248,633 | 65,258 | (17,801 | ) | (28,943 | ) | 267,147 | ||||||||||||
Depreciation | 15,860 | 7,587 | 2,023 | — | 25,470 | ||||||||||||||
Amortization | 6,043 | 23,269 | — | — | 29,312 | ||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 270,536 | $ | 96,114 | $ | (15,778 | ) | $ | (28,943 | ) | $ | 321,929 | |||||||
NON-GAAP FINANCIAL INFORMATION TEGNA Inc. Unaudited, in thousands of dollars | |||||||||||||||||||
Table No. 4 (continued) | |||||||||||||||||||
Year Ended 2015: | |||||||||||||||||||
Media | Digital | Corporate | Unallocated Costs | Consolidated Total | |||||||||||||||
Net income from continuing operations attributable to TEGNA Inc. (GAAP basis) | $ | 357,458 | |||||||||||||||||
Net income attributable to noncontrolling interests | 63,164 | ||||||||||||||||||
Provision for income taxes | 202,314 | ||||||||||||||||||
Interest expense | 273,629 | ||||||||||||||||||
Equity loss in unconsolidated investees, net | 5,064 | ||||||||||||||||||
Other non-operating items | 11,529 | ||||||||||||||||||
Operating income (GAAP basis) | $ | 714,237 | $ | 229,386 | $ | 21,474 | $ | (51,939 | ) | $ | 913,158 | ||||||||
Workforce restructuring | 3,969 | 3,596 | — | — | 7,565 | ||||||||||||||
Other transformation items | (4,631 | ) | 13,095 | 962 | — | 9,426 | |||||||||||||
Asset impairment charges | — | 8,900 | — | — | 8,900 | ||||||||||||||
Gain on sale of Corporate HQ building, net | — | — | (89,892 | ) | — | (89,892 | ) | ||||||||||||
Adjusted operating income (non-GAAP basis) | 713,575 | 254,977 | (67,456 | ) | (51,939 | ) | 849,157 | ||||||||||||
Depreciation | 51,131 | 33,084 | 6,588 | — | 90,803 | ||||||||||||||
Amortization | 22,456 | 91,828 | — | — | 114,284 | ||||||||||||||
Non-cash rent | — | — | 1,650 | — | 1,650 | ||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 787,162 | $ | 379,889 | $ | (59,218 | ) | $ | (51,939 | ) | $ | 1,055,894 | |||||||
Year Ended 2014 (recast): | |||||||||||||||||||
Media | Digital | Corporate | Unallocated Costs | Consolidated Total | |||||||||||||||
Net income from continuing operations attributable to TEGNA Inc. (GAAP basis) | $ | 687,936 | |||||||||||||||||
Net income attributable to noncontrolling interests | 68,289 | ||||||||||||||||||
Provision for income taxes | 234,471 | ||||||||||||||||||
Interest expense | 272,668 | ||||||||||||||||||
Equity income in unconsolidated investees, net | (151,462 | ) | |||||||||||||||||
Other non-operating items | (404,403 | ) | |||||||||||||||||
Operating income (GAAP basis) | $ | 747,020 | $ | 119,908 | $ | (71,256 | ) | $ | (88,173 | ) | $ | 707,499 | |||||||
Workforce restructuring | 3,731 | 3,111 | — | — | 6,842 | ||||||||||||||
Other transformation costs | 18,199 | — | — | — | 18,199 | ||||||||||||||
Asset impairment charges | — | 31,242 | — | — | 31,242 | ||||||||||||||
Adjusted operating income (non-GAAP basis) | 768,950 | 154,261 | (71,256 | ) | (88,173 | ) | 763,782 | ||||||||||||
Depreciation | 51,813 | 23,351 | 10,702 | — | 85,866 | ||||||||||||||
Adjusted amortization (non-GAAP basis) | 24,117 | 37,374 | — | — | 61,491 | ||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 844,880 | $ | 214,986 | $ | (60,554 | ) | $ | (88,173 | ) | $ | 911,139 |
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 presented in accordance with GAAP. Free cash flow should not be relied upon to the exclusion of GAAP financial measures. | ||||||||
Fourth Quarter 2015 | Year Ended 2015 | |||||||
Net cash flow from operating activities | $ | 133,873 | $ | 613,106 | ||||
Purchase of property, plant and equipment | (43,870 | ) | (118,767 | ) | ||||
Voluntary pension employer contribution | — | 100,000 | ||||||
Tax benefit for voluntary pension employer contribution | — | (37,200 | ) | |||||
Free cash flow | $ | 90,003 | $ | 557,139 |
TAX RATE CALCULATION TEGNA Inc. Unaudited, in thousands of dollars | |||||||||||||||
Table No. 6 | |||||||||||||||
The calculations of the company's effective tax rate on a GAAP and non-GAAP basis are below: | |||||||||||||||
GAAP | Non-GAAP | ||||||||||||||
Fourth Quarter 2015 | Fourth Quarter 2014 | Fourth Quarter 2015 | Fourth Quarter 2014 | ||||||||||||
(recast) | (recast) | ||||||||||||||
Income before taxes (per Table 3) | $ | 253,014 | $ | 592,791 | $ | 190,952 | $ | 193,358 | |||||||
Noncontrolling interests (per Table 1) | (15,463 | ) | (18,938 | ) | (15,463 | ) | (18,938 | ) | |||||||
Income before taxes attributable to TEGNA | $ | 237,551 | $ | 573,853 | $ | 175,489 | $ | 174,420 | |||||||
Provision for income taxes (per Table 3) | $ | 81,609 | $ | 90,422 | $ | 56,155 | $ | 61,797 | |||||||
Effective tax rate | 34.4 | % | 15.8 | % | 32.0 | % | 35.4 | % | |||||||
GAAP | Non-GAAP | ||||||||||||||
Year Ended 2015 | Year Ended 2014 | Year Ended 2015 | Year Ended 2014 | ||||||||||||
(recast) | (recast) | ||||||||||||||
Income before taxes (per Table 3) | $ | 622,936 | $ | 990,696 | $ | 569,217 | $ | 505,106 | |||||||
Noncontrolling interests (per Table 1) | (63,164 | ) | (68,289 | ) | (63,164 | ) | (68,289 | ) | |||||||
Income before taxes attributable to TEGNA | $ | 559,772 | $ | 922,407 | $ | 506,053 | $ | 436,817 | |||||||
Provision for income taxes (per Table 3) | $ | 202,314 | $ | 234,471 | $ | 175,709 | $ | 152,774 | |||||||
Effective tax rate | 36.1 | % | 25.4 | % | 34.7 | % | 35.0 | % |