Achieves second quarter record total company revenue,
subscription revenue, political revenue, net income, Adjusted
EBITDA, and free cash flow
On track to complete proposed acquisition by an affiliate of
Standard General in the second half of 2022, subject to regulatory
approvals and customary closing conditions
TEGNA Inc. (NYSE: TGNA) today announced financial results for
the second quarter ended June 30, 2022.
SECOND QUARTER FINANCIAL HIGHLIGHTS1:
- Total company revenue was a second quarter record of $785
million, up seven percent year-over-year, driven by growth in
political and subscription revenues, despite a volatile
macroeconomic environment.
- Subscription revenue was a second quarter record of $389
million, up four percent year-over-year, driven by rate increases
and partially offset by subscriber declines.
- Advertising and marketing services (“AMS”) revenue was $335
million in the second quarter, down less than two percent
year-over-year due to softness of certain AMS advertising
categories, primarily auto, which continues to be impacted by
supply chain disruptions.
- Political revenue was a second quarter record of $51 million up
53 percent from 2018, the last non-presidential election year, on a
pro forma basis2.
- TEGNA achieved a second quarter record of net income of $132
million on a GAAP basis, or $136 million on a non-GAAP basis.
- Total company Adjusted EBITDA3 was a second quarter record of
$256 million, representing an increase of 12 percent compared with
the second quarter of 2021.
- Adjusted EBITDA margin equaled 32.6 percent.
_________________________
1 Due to the impact of COVID-19 in 2020,
certain two-year comparisons are not meaningful
2 “Pro forma” reflects our 2019
acquisitions of certain television stations divested by Gray,
Dispatch, Nexstar and Tribune as if they had been completed on
January 1, 2018
3 A non-GAAP measure detailed in Table
3
- GAAP operating expenses were $564 million, up three percent
year-over-year, and non-GAAP operating expenses were $560 million,
up four percent year-over-year, predominantly driven by investments
in Premion’s growth and programming costs.
- Expenses less Premion costs increased one percent from the
second quarter of 2021 on a non-GAAP basis, driven primarily by
programming expenses.
- Non-GAAP operating expenses less programming and Premion costs
were down two percent compared to the second quarter of 2021.
- GAAP and non-GAAP operating income totaled $221 million and
$225 million, respectively.
- Interest expense decreased to $43 million compared to $47
million in the second quarter of 2021 due to lower average debt,
partially offset by a higher average interest rate.
- GAAP and non-GAAP earnings per diluted share were $0.59 and
$0.60, respectively, in the second quarter of 2022.
- Free cash flow4 was a second quarter record of $162 million,
primarily driven by election year political cycles.
- For the trailing two-year period ending June 30, 2022, free
cash flow as a percentage of revenue was 22.9 percent.
- The Company ended the quarter with total debt of $3.1 billion
and net leverage of 2.70x.
- Total cash at the end of the quarter was $201 million.
TRANSACTION OVERVIEW
On February 22, 2022, TEGNA Inc. and Standard General L.P.
announced that TEGNA and an affiliate of Standard General entered
into a definitive agreement under which TEGNA will be acquired by
the Standard General affiliate for $24.00 per share in cash. TEGNA
stockholders voted to approve the transaction at the special
meeting of stockholders held on May 17, 2022. The closing of the
transaction, which is still expected to occur in the second half of
2022, is subject to regulatory approvals and other customary
closing conditions.
As a result of the pending transaction and as previously
announced, TEGNA expects to continue to pay its regular quarterly
dividend through the closing of the transaction and suspended share
repurchases under our previously announced share repurchase
program.
_________________________
4 A non-GAAP measure detailed in Table
5
RECENT CONTENT, PROGRAMMING AND ESG UPDATES
- TEGNA Stations Now Live With All-New Streaming Apps – TEGNA
completed the rollout of all-new streaming apps and 24-7 streaming
channels for its 64 stations in 51 markets on Roku and Fire TV. The
new apps feature local twenty-four-hour “Watch” streams of live
local news, newscast replays, extended live coverage, weather,
station specials and investigations, as well as local sports shows
from Locked On Podcast Network. Through the first half of 2022,
watch time on TEGNA streaming apps is up 252 percent compared to
the first half of 2021, with more than 650 million minutes of
consumption.
- VERIFY Passes 300K Followers Across Channels – VERIFY, TEGNA’s
national brand that combats disinformation, now has more than
300,000 followers across its various dedicated channels, including
more than 75,000 on TikTok. During the second quarter, VERIFY also
introduced a weekly “Verify This” show that recaps the week’s
biggest stories and is streamed across TEGNA station apps.
- Locked On Audience Nearly Doubles – All Locked On Podcast
Network shows are now available as video on YouTube and in TEGNA
station streaming apps. The addition of video as well as continued
growth in podcast listening has driven Locked On to grow its
audience by 98 percent in the first half of 2022 compared to the
first half of 2021.
- TEGNA Stations Receive Record Number of Regional Edward R.
Murrow Awards – TEGNA stations received a record 96 Regional Edward
R. Murrow awards across 27 TEGNA stations, more than any other
local broadcast television group and the most in TEGNA’s history.
Seven stations received the overall excellence honor, the highest
achievement awarded. (Press Release)
- KUSA Wins Prestigious Peabody Award for Reporting on Prone
Chokehold Restraint – In June, Denver-based NBC affiliate KUSA
received the Peabody Award in the News category for its “Prone”
investigative series on the dangers of the prone position chokehold
restraint. This two-year nationwide investigation was sparked by
the death of George Floyd in 2020. The investigative team found at
least 130 similar cases since 2020. Following the report, police
departments in Denver and Minneapolis mandated additional training
about the dangers of the prone position chokehold restraint. (Press
Release)
- TEGNA Receives Civic 50 Award for Third Consecutive Year and
Named Telecommunications Sector Leader – TEGNA was named a 2022
honoree of The Civic 50 by Points of Light as one of the most
community-minded companies in the United States for a third
consecutive year. (Press Release)
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. 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.
These risks, uncertainties and other factors include, but are not
limited to, those discussed under “Risk Factors” in the Company’s
Annual Report on Form 10-K for the fiscal year ended December 31,
2021 and Quarterly Reports on Form 10-Q, including the following:
(1) the timing, receipt and terms and conditions of any required
governmental or regulatory approvals of the proposed transaction
between TEGNA and affiliates of Standard General and the related
transactions involving the parties to the proposed transaction that
could reduce the anticipated benefits of or cause the parties to
abandon the proposed transaction, (2) risks related to the
satisfaction of the conditions to closing the proposed transaction
(including the failure to obtain necessary regulatory approvals),
and the related transactions involving the parties to the proposed
transaction, in the anticipated timeframe or at all, (3) the risk
that any announcements relating to the proposed transaction could
have adverse effects on the market price of the Company’s common
stock, (4) disruption from the proposed transaction could make it
more difficult to maintain business and operational relationships,
including retaining and hiring key personnel and maintaining
relationships with the Company’s customers, vendors and others with
whom it does business, (5) the occurrence of any event, change or
other circumstances that could give rise to the termination of the
merger agreement entered into pursuant to the proposed transaction
or of the transactions involving the parties to the proposed
transaction, (6) risks related to disruption of management’s
attention from the Company’s ongoing business operations due to the
proposed transaction, (7) significant transaction costs, (8) the
risk of litigation and/or regulatory actions related to the
proposed transaction or unfavorable results from currently pending
litigation and proceedings or litigation and proceedings that could
arise in the future, (9) other business effects, including the
effects of industry, market, economic, political or regulatory
conditions, (10) information technology system failures, data
security breaches, data privacy compliance, network disruptions,
and cybersecurity, malware or ransomware attacks, and (11) changes
resulting from the COVID-19 pandemic (including the effect of
COVID-19 on the Company’s revenues, particularly its nonpolitical
advertising revenues), which could exacerbate any of the risks
described above. Potential regulatory actions, changes in consumer
behaviors and impacts on and modifications to the Company’s
operations and business relating thereto and the Company’s ability
to execute on its standalone plan can also cause actual results to
differ materially. The Company is not responsible for updating the
information contained in this press release beyond the published
date, or for changes made to this press release by wire service,
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. The factors described above cannot be
controlled by the Company. 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 management are intended to
identify forward-looking statements. Forward-looking statements in
this communication may include, without limitation: statements
about the potential benefits of the proposed acquisition,
anticipated growth rates, the Company’s plans, objectives,
expectations, and the anticipated timing of closing the proposed
transaction.
ADDITIONAL INFORMATION
TEGNA Inc. (NYSE: TGNA) is an innovative media company that
serves the greater good of our communities. Across platforms, TEGNA
tells empowering stories, conducts impactful investigations and
delivers innovative marketing solutions. With 64 television
stations in 51 U.S. markets, TEGNA is the largest owner of top 4
network affiliates in the top 25 markets among independent station
groups, reaching approximately 39 percent of all television
households nationwide. TEGNA also owns leading multicast networks
True Crime Network, Twist and Quest. TEGNA offers innovative
solutions to help businesses reach consumers across television,
digital and over-the-top (OTT) platforms, including Premion,
TEGNA’s OTT advertising service. For more information, visit
www.TEGNA.com.
* * * *
CONSOLIDATED STATEMENTS OF
INCOME
TEGNA Inc.
Unaudited, in thousands of
dollars (except per share amounts)
Table No. 1
Quarter ended June 30,
2022
2021
% Increase
(Decrease)
Revenues
$
784,881
$
732,908
7.1
Operating expenses:
Cost of revenues
420,235
397,118
5.8
Business units - Selling, general and
administrative expenses
99,585
96,949
2.7
Corporate - General and administrative
expenses
13,612
23,183
(41.3
)
Depreciation
15,534
15,838
(1.9
)
Amortization of intangible assets
14,999
15,773
(4.9
)
Spectrum repacking reimbursements and
other, net
(105
)
(1,475
)
(92.9
)
Total
563,860
547,386
3.0
Operating income
221,021
185,522
19.1
Non-operating (expense) income:
Equity loss in unconsolidated investments,
net
(236
)
(2,597
)
(90.9
)
Interest expense
(42,950
)
(46,609
)
(7.9
)
Other non-operating items, net
(1,865
)
1,524
***
Total
(45,051
)
(47,682
)
(5.5
)
Income before income taxes
175,970
137,840
27.7
Provision for income taxes
44,030
30,986
42.1
Net income
131,940
106,854
23.5
Net income attributable to redeemable
noncontrolling interest
(371
)
(227
)
63.4
Net income attributable to TEGNA
Inc.
$
131,569
$
106,627
23.4
Earnings per share:
Basic
$
0.59
$
0.48
22.9
Diluted
$
0.59
$
0.48
22.9
Weighted average number of common
shares outstanding:
Basic shares
223,675
221,522
1.0
Diluted shares
224,489
222,506
0.9
*** Not meaningful
CONSOLIDATED STATEMENTS OF
INCOME
TEGNA Inc.
Unaudited, in thousands of dollars (except
per share amounts)
Table No. 1 (continued)
Six months ended June 30,
2022
2021
% Increase
(Decrease)
Revenues
$
1,559,004
$
1,459,959
6.8
Operating expenses:
Cost of revenues
831,685
791,810
5.0
Business units - Selling, general and
administrative expenses
201,554
186,275
8.2
Corporate - General and administrative
expenses
34,932
40,053
(12.8
)
Depreciation
30,839
31,734
(2.8
)
Amortization of intangible assets
29,999
31,533
(4.9
)
Spectrum repacking reimbursements and
other, net
(163
)
(2,898
)
(94.4
)
Total
1,128,846
1,078,507
4.7
Operating income
430,158
381,452
12.8
Non-operating (expense) income:
Equity loss in unconsolidated investments,
net
(4,047
)
(3,926
)
3.1
Interest expense
(86,570
)
(93,094
)
(7.0
)
Other non-operating items, net
15,454
1,854
***
Total
(75,163
)
(95,166
)
(21.0
)
Income before income taxes
354,995
286,286
24.0
Provision for income taxes
88,768
66,600
33.3
Net income
266,227
219,686
21.2
Net income attributable to redeemable
noncontrolling interest
(424
)
(442
)
(4.1
)
Net income attributable to TEGNA
Inc.
$
265,803
$
219,244
21.2
Earnings per share:
Basic
$
1.19
$
0.99
20.2
Diluted
$
1.19
$
0.99
20.2
Weighted average number of common
shares outstanding:
Basic shares
223,197
221,064
1.0
Diluted shares
223,867
221,855
0.9
*** Not meaningful
USE OF NON-GAAP
INFORMATION
The company uses non-GAAP financial performance 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 non-GAAP
financial measures for purposes of evaluating company performance.
Furthermore, the Leadership Development and Compensation Committee
of our Board of Directors uses non-GAAP measures such as Adjusted
EBITDA, non-GAAP net income, non-GAAP EPS, and free cash flow to
evaluate management’s performance. The company, therefore, believes
that each of the non-GAAP measures presented provides useful
information to investors and other stakeholders by allowing them to
view our business through the eyes of management and our Board of
Directors, facilitating comparisons of results across historical
periods and focus on the underlying ongoing operating performance
of our business. The company also believes these non-GAAP measures
are frequently used by investors, securities analysts and other
interested parties in their evaluation of our business and other
companies in the broadcast industry.
The company discusses in this release non-GAAP financial
performance measures that exclude from its reported GAAP results
the impact of “special items” consisting of spectrum repacking
reimbursements and other, net, M&A-related costs, advisory fees
related to activism defense, and certain non-operating items such
as a gain on an available for sale investment and an impairment
charge recorded for another investment. In addition, we have
excluded certain income tax special items associated with
establishing a valuation allowance on a deferred tax asset related
to an equity method investment and deferred tax benefits related to
state tax planning strategies.
The company believes that such expenses and gains are not
indicative of normal, ongoing operations. While these items may be
recurring in nature and 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 as
these items can vary significantly from period to period depending
on specific underlying transactions or events that may occur.
Therefore, while we may incur or recognize these types of expenses
and gains in the future, the company believes 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
attributable to TEGNA before (1) net income attributable to
redeemable noncontrolling interest, (2) income taxes, (3) interest
expense, (4) equity loss in unconsolidated investments, net, (5)
other non-operating items, net, (6) M&A-related costs, (7)
advisory fees related to activism defense, (8) spectrum repacking
reimbursements and other, net, (9) depreciation and (10)
amortization. The company believes these adjustments facilitate
company-to-company operating performance comparisons by removing
potential differences caused by variations unrelated to operating
performance, such as capital structures (interest expense), income
taxes, and the age and book appreciation of property and equipment
(and related depreciation expense). The most directly comparable
GAAP financial measure to Adjusted EBITDA is Net income
attributable to TEGNA. 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 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.
This earnings release also discusses free cash flow, a non-GAAP
performance measure that the Board of Directors uses to review the
performance of the business. Free cash flow is reviewed by the
Board of Directors as a percentage of revenue over a trailing
two-year period (reflecting both an even and odd year reporting
period given the political cyclicality of the business). The most
directly comparable GAAP financial measure to free cash flow is Net
income attributable to TEGNA. Free cash flow is calculated as
non-GAAP Adjusted EBITDA (as defined above), further adjusted by
adding back (1) stock-based compensation, (2) non-cash 401(k)
company match, (3) syndicated programming amortization, (4)
dividends received from equity method investments (5)
reimbursements from spectrum repacking, and (6) proceeds from
company-owned life insurance policies. This is further adjusted by
deducting payments made for (1) syndicated programming, (2)
pension, (3) interest, (4) taxes (net of refunds) and (5) purchases
of property and equipment. Like Adjusted EBITDA, free cash flow is
not intended to be a measure of cash flow available for
management’s discretionary use.
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
company's Consolidated Statements of Income follow:
Special Items
Quarter ended June 30, 2022
GAAP
measure
M&A-related
costs
Spectrum
repacking
reimbursements
and other
Non-GAAP
measure
Corporate - General and administrative
expenses
$
13,612
$
(4,212
)
$
—
$
9,400
Spectrum repacking reimbursements and
other, net
(105
)
—
105
—
Operating expenses
563,860
(4,212
)
105
559,753
Operating income
221,021
4,212
(105
)
225,128
Income before income taxes
175,970
4,212
(105
)
180,077
Provision for income taxes
44,030
7
(27
)
44,010
Net income attributable to TEGNA Inc.
131,569
4,205
(78
)
135,696
Earnings per share-diluted (a)
$
0.59
$
0.02
$
—
$
0.60
(a) Per share amounts do not sum due to
rounding.
Special Items
Quarter ended June 30, 2021
GAAP
measure
Advisory fees
related to
activism
defense
Spectrum
repacking
reimbursements
and other
Special tax
items
Non-GAAP
measure
Corporate - General and administrative
expenses
$
23,183
$
(12,012
)
$
—
$
—
$
11,171
Spectrum repacking reimbursements and
other, net
(1,475
)
—
1,475
—
—
Operating expenses
547,386
(12,012
)
1,475
—
536,849
Operating income
185,522
12,012
(1,475
)
—
196,059
Income before income taxes
137,840
12,012
(1,475
)
—
148,377
Provision for income taxes
30,986
3,111
(374
)
2,797
36,520
Net income attributable to TEGNA Inc.
106,627
8,901
(1,101
)
(2,797
)
111,630
Earnings per share-diluted (a)
$
0.48
$
0.04
$
—
$
(0.01
)
$
0.50
(a) Per share amounts do not sum due to
rounding.
NON-GAAP FINANCIAL INFORMATION
TEGNA Inc.
Unaudited, in thousands of dollars (except
per share amounts)
Table No. 2 (continued)
Special Items
Six months ended June 30, 2022
GAAP
measure
M&A-related
costs
Spectrum
repacking
reimbursements
and other
Other non-
operating items
Special tax item
Non-GAAP
measure
Corporate - General and administrative
expenses
$
34,932
$
(14,446
)
$
—
$
—
$
—
$
20,486
Spectrum repacking reimbursements and
other, net
(163
)
—
163
—
—
—
Operating expenses
1,128,846
(14,446
)
163
—
—
1,114,563
Operating income
430,158
14,446
(163
)
—
—
444,441
Other non-operating items, net
15,454
—
—
(18,308
)
—
(2,854
)
Total non-operating expenses
(75,163
)
—
—
(18,308
)
—
(93,471
)
Income before income taxes
354,995
14,446
(163
)
(18,308
)
—
350,970
Provision for income taxes
88,768
38
(41
)
168
(7,117
)
81,816
Net income attributable to TEGNA Inc.
265,803
14,408
(122
)
(18,476
)
7,117
268,730
Earnings per share-diluted
$
1.19
$
0.06
$
—
$
(0.08
)
$
0.03
$
1.20
Special Items
Six months ended June 30, 2021
GAAP
measure
Advisory fees
related to
activism
defense
Spectrum
repacking
reimbursements
and other
Special tax
items
Non-GAAP
measure
Corporate - General and administrative
expenses
$
40,053
$
(16,611
)
$
—
$
—
$
23,442
Spectrum repacking reimbursements and
other, net
(2,898
)
—
2,898
—
—
Operating expenses
1,078,507
(16,611
)
2,898
—
1,064,794
Operating income
381,452
16,611
(2,898
)
—
395,165
Equity income (loss) in unconsolidated
investments, net
(3,926
)
—
—
—
(3,926
)
Other non-operating items, net
1,854
—
—
—
1,854
Total non-operating expenses
(95,166
)
—
—
—
(95,166
)
Income before income taxes
286,286
16,611
(2,898
)
—
299,999
Provision for income taxes
66,600
4,291
(741
)
2,797
72,947
Net income attributable to TEGNA Inc.
219,244
12,320
(2,157
)
(2,797
)
226,610
Earnings per share-diluted (a)
$
0.99
$
0.06
$
(0.01
)
$
(0.01
)
$
1.02
(a) Per share amounts do not sum due to
rounding.
NON-GAAP FINANCIAL INFORMATION
TEGNA Inc.
Unaudited, in thousands of dollars
Table No. 3
Reconciliations of Adjusted
EBITDA to net income presented in accordance with GAAP on the
company's Consolidated Statements of Income are presented
below:
Quarter ended June 30,
2022
2021
2020
Net income attributable to TEGNA Inc.
(GAAP basis)
$
131,569
$
106,627
$
19,947
Plus (Less): Net income (loss)
attributable to redeemable noncontrolling interest
371
227
(374
)
Plus: Provision for income taxes
44,030
30,986
6,607
Plus: Interest expense
42,950
46,609
51,877
Plus (Less): Equity loss (income) in
unconsolidated investments, net
236
2,597
(1,921
)
Plus (Less): Other non-operating items,
net
1,865
(1,524
)
(1,039
)
Operating income (GAAP basis)
221,021
185,522
75,097
Plus: M&A-related costs
4,212
—
—
Plus: Advisory fees related to activism
defense
—
12,012
15,448
Less: Spectrum repacking reimbursements
and other, net
(105
)
(1,475
)
(116
)
Adjusted operating income (non-GAAP
basis)
225,128
196,059
90,429
Plus: Depreciation
15,534
15,838
16,711
Plus: Amortization of intangible
assets
14,999
15,773
17,248
Adjusted EBITDA (non-GAAP basis)
$
255,661
$
227,670
$
124,388
Corporate - General and administrative
expense (non-GAAP basis)
9,400
11,171
12,864
Adjusted EBITDA, excluding Corporate
(non-GAAP basis)
$
265,061
$
238,841
$
137,252
Six months ended June 30,
2022
2021
2020
Net income attributable to TEGNA Inc.
(GAAP basis)
$
265,803
$
219,244
$
106,255
Plus (Less): Net income (loss)
attributable to redeemable noncontrolling interest
424
442
(484
)
Plus: Provision for income taxes
88,768
66,600
27,732
Plus: Interest expense
86,570
93,094
108,837
Plus (Less): Equity loss (income) in
unconsolidated investments, net
4,047
3,926
(10,936
)
(Less) Plus: Other non-operating items,
net
(15,454
)
(1,854
)
18,231
Operating income (GAAP basis)
430,158
381,452
249,635
Plus: M&A and acquisition-related
costs
14,446
—
4,588
Plus: Advisory fees related to activism
defense
—
16,611
23,087
Less: Spectrum repacking reimbursements
and other, net
(163
)
(2,898
)
(7,631
)
Adjusted operating income (non-GAAP
basis)
444,441
395,165
269,679
Plus: Depreciation
30,839
31,734
33,611
Plus: Amortization of intangible
assets
29,999
31,533
33,464
Adjusted EBITDA (non-GAAP basis)
$
505,279
$
458,432
$
336,754
Corporate - General and administrative
expense (non-GAAP basis)
20,486
23,442
22,351
Adjusted EBITDA, excluding Corporate
(non-GAAP basis)
$
525,765
$
481,874
$
359,105
NON-GAAP FINANCIAL INFORMATION
TEGNA Inc.
Unaudited, in thousands of dollars
Table No. 4
Below is a detail of our primary sources
of revenue presented in accordance with GAAP on company’s
Consolidated Statements of Income. In addition, we show Adjusted
EBITDA and Adjusted EBITDA margins (see non-GAAP reconciliations at
Table No. 3).
Quarter ended June 30,
2022
2021
% Increase
(Decrease)
2020
% Increase
(Decrease)
Subscription
$
389,079
$
375,081
3.7
$
323,475
20.3
Advertising and Marketing Services
335,259
340,889
(1.7
)
229,083
46.3
Political
50,858
9,581
***
17,544
***
Other
9,685
7,357
31.6
7,525
28.7
Total revenues
$
784,881
$
732,908
7.1
$
577,627
35.9
Adjusted EBITDA
$
255,661
$
227,670
12.3
$
124,388
***
Adjusted EBITDA Margin
32.6
%
31.1
%
21.5
%
Six months ended June 30,
2022
2021
% Increase
(Decrease)
2020
% Increase
(Decrease)
Subscription
$
780,733
$
761,818
2.5
$
656,277
19.0
Advertising and Marketing Services
689,726
663,723
3.9
524,236
31.6
Political
68,823
19,009
***
64,931
6.0
Other
19,722
15,409
28.0
16,372
20.5
Total revenues
$
1,559,004
$
1,459,959
6.8
$
1,261,816
23.6
Adjusted EBITDA
$
505,279
$
458,432
10.2
$
336,754
50.0
Adjusted EBITDA Margin
32.4
%
31.4
%
26.7
%
*** Not meaningful
NON-GAAP FINANCIAL INFORMATION
TEGNA Inc.
Unaudited, in thousands of dollars
Table No. 5
Reconciliations of free cash flow to net
income presented in accordance with GAAP on the company's
Consolidated Statements of Income are presented below:
Quarter ended June 30,
2022
2021
% Increase
(Decrease)
Net income attributable to TEGNA Inc.
(GAAP basis)
$
131,569
$
106,627
23.4
Plus: Provision for income taxes
44,030
30,986
42.1
Plus: Interest expense
42,950
46,609
(7.9
)
Plus: M&A-related costs
4,212
—
***
Plus: Depreciation
15,534
15,838
(1.9
)
Plus: Amortization
14,999
15,773
(4.9
)
Plus: Stock-based compensation
6,714
7,411
(9.4
)
Plus: Company stock 401(k)
contribution
4,591
4,080
12.5
Plus: Syndicated programming
amortization
18,461
17,975
2.7
Plus: Advisory fees related to activism
defense
—
12,012
***
Plus: Cash dividend from equity
investments for return on capital
—
38
***
Plus: Cash reimbursements from spectrum
repacking
105
3,015
(96.5
)
Plus: Net income attributable to
redeemable noncontrolling interest
371
227
63.4
Plus: Equity loss in unconsolidated
investments, net
236
2,597
(90.9
)
Plus: Reimbursement from company-owned
life insurance policies
451
—
***
Plus (Less): Other non-operating items,
net
1,865
(1,524
)
***
Less: Income tax payments
(80,163
)
(117,633
)
(31.9
)
Less: Spectrum repacking reimbursements
and other, net
(105
)
(1,475
)
(92.9
)
Less: Syndicated programming payments
(15,984
)
(20,344
)
(21.4
)
Less: Pension contributions
(960
)
(936
)
2.6
Less: Interest payments
(9,298
)
(14,977
)
(37.9
)
Less: Purchases of property and
equipment
(17,556
)
(14,436
)
21.6
Free cash flow (non-GAAP basis)
$
162,022
$
91,863
76.4
*** Not meaningful
NON-GAAP FINANCIAL INFORMATION
TEGNA Inc.
Unaudited, in thousands of dollars
Table No. 5 (continued)
Two-year period ended
June. 30, 2022
Net income attributable to TEGNA Inc.
(GAAP basis)
$
1,119,281
Plus: Provision for income taxes
350,810
Plus: Interest expense
373,677
Plus: M&A-related costs
18,184
Plus: Depreciation
128,949
Plus: Amortization
127,236
Plus: Stock-based compensation
61,462
Plus: Company stock 401(k)
contribution
34,974
Plus: Syndicated programming
amortization
142,664
Plus: Workforce restructuring expense
1,021
Plus: Advisory fees related to activism
defense
16,611
Plus: Cash dividend from equity
investments for return on capital
8,240
Plus: Cash reimbursements from spectrum
repacking
8,517
Plus: Net income attributable to
redeemable noncontrolling interest
2,135
Plus: Reimbursement from Company-owned
life insurance policies
1,456
Plus: Equity loss in unconsolidated
investments, net
14,299
Less: Spectrum repacking reimbursements
and other, net
(4,794
)
Less: Other non-operating items, net
(6,481
)
Less: Syndicated programming payments
(148,229
)
Less: Income tax payments, net of
refunds
(343,503
)
Less: Pension contributions
(10,140
)
Less: Interest payments
(364,856
)
Less: Purchases of property and
equipment
(107,361
)
Free cash flow (non-GAAP basis)
$
1,424,152
Revenue
$
6,226,061
Free cash flow as a % of revenue
22.9
%
NON-GAAP FINANCIAL INFORMATION
TEGNA Inc.
Unaudited, in thousands of dollars
Table No. 6
Below is a reconciliation of non-GAAP
operating expenses to GAAP operating expenses on the company's
Consolidated Statements of Income:
Quarter ended June 30
2022
2021
Operating expenses (GAAP basis)
$
563,860
$
547,386
Less: Special items 1, 2
(4,107
)
(10,537
)
Operating expenses (non-GAAP basis)
559,753
536,849
Less: Programming expenses
(237,007
)
(225,987
)
Operating expenses, less programming
(non-GAAP basis)
$
322,746
$
310,862
Less: Premion expenses
(56,226
)
(39,418
)
Non-GAAP operating expenses, less
programming and Premion
$
266,520
$
271,444
1 Q2 2022 special items include
reimbursements from the FCC for required spectrum repacking and
M&A-related costs (see Table 2).
2 Q2 2021 special items include
advisory fees related to activism defense and reimbursements from
the FCC for required spectrum repacking (see Table 2).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220807005017/en/
For media inquiries, contact: Anne Bentley Vice President,
Corporate Communications 703-873-6366 abentley@TEGNA.com
For investor inquiries, contact: Julie Heskett Senior Vice
President, Financial Planning & Analysis 703-873-6747
investorrelations@TEGNA.com
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