Achieved record year for company revenue, subscription
revenue, net income, and Adjusted EBITDA
Achieved sustained progress toward TEGNA’s 2025 Diversity,
Equity and Inclusion (DE&I) goals to grow Black, Indigenous and
People of Color (BIPOC) representation in company leadership as
well as content teams
TEGNA Inc. (NYSE: TGNA) today announced financial results for
the fourth quarter and full-year ended December 31, 2022.
FOURTH QUARTER FINANCIAL HIGHLIGHTS:
- Total company revenue was $917 million in the fourth quarter,
up 18 percent year-over-year, driven by strong growth in political
revenue despite advertising and marketing services (“AMS”) revenue
declines resulting from political displacement and macroeconomic
headwinds.
- Total company revenue was down two percent from the fourth
quarter of 2020 due to reduced political revenue compared to 2020’s
presidential election cycle, partially offset by record fourth
quarter subscription revenue in 2022.
- Subscription revenue was a fourth quarter record of $372
million, up 11 percent year-over-year, due to rate increases,
partially offset by subscriber declines and the comparison to the
DISH disruption in 2021.
- TEGNA has renewed retransmission consent agreements
representing approximately 30 percent of our subscribers since our
prior quarterly release on November 9, 2022.
- AMS revenue was $353 million in the fourth quarter, down 12
percent year-over-year due to displacement driven by strong
political revenue, continued macroeconomic headwinds, and reduced
sports betting advertising with fewer new market launches this year
versus the prior year. Automotive advertising revenue rebounded in
the quarter with strong year-over-year growth.
- Compared to 2020, fourth quarter AMS revenue was up slightly
driven by strong growth in most categories including entertainment,
services, and travel and tourism, partially offset by macroeconomic
headwinds impacting, auto, insurance, and retail in this two-year
comparison.
- Political revenue was $179 million, up nine percent from 2018,
the last non-presidential election year, on a pro forma
basis1.
- TEGNA achieved net income of $219 million on a GAAP basis, or
$221 million on a non-GAAP basis.
- Total company Adjusted EBITDA2 was $361 million, representing
an increase of 47 percent compared to the fourth quarter of 2021.
- Fourth quarter Adjusted EBITDA was down 16 percent compared to
the fourth quarter of 2020 reflecting reduced political revenue
from the presidential election and the two Georgia Senate runoffs,
partially offset by growth in subscription revenue.
- GAAP operating expenses were $589 million, up four percent
year-over-year, and non-GAAP operating expenses were $587 million,
up four percent year-over-year, with the increases predominantly
driven by investments in Premion’s growth and programming costs.
- Non-GAAP expenses less Premion costs increased two percent from
the fourth quarter of 2021, driven primarily by programming
expenses.
- Non-GAAP operating expenses less programming and Premion costs
were down one percent compared to the fourth quarter of 2021.
- GAAP and non-GAAP operating income totaled $328 million and
$331 million, respectively.
- Interest expense decreased to $44 million compared to $46
million in the fourth quarter of 2021 due to lower average debt of
$3.1 billion, resulting in net leverage of 2.44x.
- GAAP and non-GAAP earnings per diluted share were $0.97 and
$0.98, respectively.
- Free cash flow3 was $297 million for the quarter.
- For the trailing two-year period ending December 31, 2022, free
cash flow as a percentage of revenue was 21.8 percent.
- Total cash at the end of the quarter was $552 million.
1 “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
2 A non-GAAP measure detailed in Table
3
3 A non-GAAP measure detailed in Table
5
FULL-YEAR FINANCIAL HIGHLIGHTS:
- Total company revenue was a record $3.3 billion, up ten percent
year-over-year, driven by strong growth in political revenue and
record subscription revenue despite AMS revenue declines as a
result of political displacement and macroeconomic headwinds.
- Compared to 2020, total company revenue was up 12 percent
driven by record subscription revenue and growth in AMS revenue
fueled by Premion, partially offset by reduced political
revenue.
- Record subscription revenue of $1.5 billion was up four percent
year-over-year, driven by rate increases and partially offset by
subscriber declines.
- AMS revenue was $1.4 billion, down five percent year-over-year
due to displacement driven by strong political revenue and
continued macroeconomic headwinds. Several categories grew
year-over-year such as entertainment, travel and tourism, services,
and home improvement. Auto advertising saw sequential improvement
throughout the year finishing with strong growth in the fourth
quarter.
- Compared to 2020, AMS revenue was up 16 percent driven by
increases in television and Premion advertising. Since 2020,
advertising trends have seen significant broad-based strength
across all advertising categories, except auto and insurance in
this two-year comparison.
- Political revenue was a record for a non-presidential election
year at $341 million, up 21 percent from 2018 on a pro forma
basis1.
- TEGNA achieved record net income of $631 million on a GAAP
basis, or $637 million on a non-GAAP basis.
- Total company Adjusted EBITDA2 was a record of $1.1 billion,
representing an increase of 19 percent compared to 2021 driven by
high-margin political and subscription revenues, as well as ongoing
cost management to ensure efficient operations.
- Compared to 2020, Adjusted EBITDA was up 11 percent reflecting
growth in AMS and subscription revenues, partially offset by
reduced high-margin political revenue due to the absence of
presidential advertising spending.
- GAAP and non-GAAP operating expenses of $2.3 billion were up
five percent and four percent year-over-year, respectively, with
the increases predominantly driven by investments in Premion’s
growth and programming costs.
- Non-GAAP expenses less Premion costs increased two percent from
2021, driven primarily by programming expenses.
- Non-GAAP operating expenses less programming and Premion costs
were down one percent compared to 2021.
- GAAP earnings per diluted share were $2.81 and non-GAAP
earnings per diluted share were $2.83.
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. On February 21, 2023,
TEGNA elected, pursuant to the terms of the Merger Agreement, to
extend the Outside Date (as defined in the Merger Agreement) from
5:00 p.m. Eastern time on February 22, 2023 to 5:00 p.m. Eastern
time on May 22, 2023. All waiting periods under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended,
applicable to the Merger and related transactions have expired. The
closing of the transaction remains subject to the approval of the
Federal Communications Commission (the "FCC") and customary closing
conditions. On February 24, 2023, the FCC issued a hearing
designation order with respect to the transaction. TEGNA is
currently evaluating its options.
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, but has suspended
share repurchases under our previously announced share repurchase
program.
RECENT CONTENT, PROGRAMMING AND ESG UPDATES
- Continued Progress on Achieving 2025 Diversity, Equity and
Inclusion Goals – Following our stated five-pillar plan, at the end
of 2022, we continued to make progress against our 2025 DE&I
goals to grow Black, Indigenous and People of Color (BIPOC)
representation in content teams, content leadership and company
leadership.
- 2022 Key ESG Highlights and SASB Disclosure – Today, we
published our 2022 Key Highlights and SASB Disclosure for the Media
& Entertainment industry standard, which outline the steps we
have taken to live our purpose of serving the greater good of our
local communities.
- TEGNA Stations’ Live, Local and Always on Streaming Apps Reach
Nearly 800,000 Installs and over 1 billion Minutes Viewed in 2022 –
During 2022, TEGNA stations’ streaming apps were installed nearly
800,000 times on Roku and Fire TV and audiences logged more than 1
billion minutes of viewing. Stations’ streaming apps are a one-stop
destination for local stories that matter and include local
twenty-four-hour “Watch” streams, live local news, extended
coverage, weather, station specials and investigations.
- VERIFY Extends Reach in 2022 – Unique visitors to
VERIFYThis.com, TEGNA’s national fact-checking brand dedicated to
combating misinformation, increased sequentially each quarter in
2022, attracting more than 12 million visitors overall. VERIFY has
385,000 followers across its dedicated channels. On TikTok, which
represents the brand’s fastest growing audience, VERIFY’S followers
grew from 4,000 to nearly 140,000 year-over-year.
- Locked On Scores a Record Year – Locked On Podcast Network,
which provides in-depth local coverage of every NBA, NFL, MLB and
NHL team plus major college sports teams, grew its total audience
by 89 percent in 2022 and delivered more than 217 million podcast
listens and views across platforms. In Q4, Locked On set a
quarterly record with a total audience of more than 66 million
listens and views. Expansion into video podcasts was a key driver
of the network’s growth during the year, delivering a 515 percent
increase in video views year-over-year. The network saw over 800
million minutes of watch time in 2022, a 502 percent increase
year-over-year.
- TEGNA Stations KARE and WXIA Honored with 2023 Alfred I.
duPont-Columbia University Awards – KARE’s “The GAP: Failure to
Treat, Failure to Protect” and WXIA’s “#Keeping” received
prestigious 2023 Alfred I. duPont-Columbia University Awards which
honor excellence in broadcast, online and documentary journalism.
(Press Release)
- TEGNA Employees Give Back to Their Local Communities – During
2022, TEGNA employees gave back to their local communities by
volunteering and donating to their favorite causes. As a result,
the TEGNA Foundation approved more than 2,150 employee matching
gifts, which combined with TEGNA Foundation matches totaled more
than $2 million in donations to the causes and nonprofits employees
care about.
- TEGNA Employees Receive Industry Honors – TEGNA employees
received industry honors, including Boyd Huppert, reporter at KARE
and TEGNA’s chief storytelling coach, who is receiving a Lifetime
Achievement Award from the Radio Television Digital News
Foundation. (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,
2022, 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, and (10) information technology system failures, data
security breaches, data privacy compliance, network disruptions,
and cybersecurity, malware or ransomware attacks. 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 Dec. 31,
2022
2021
% Increase (Decrease)
Revenues
$
917,130
$
774,647
18.4
Operating expenses:
Cost of revenues
432,645
407,198
6.2
Business units - Selling, general and
administrative expenses
114,394
109,746
4.2
Corporate - General and administrative
expenses
11,809
16,183
(27.0
)
Depreciation
15,137
16,315
(7.2
)
Amortization of intangible assets
14,930
15,704
(4.9
)
Spectrum repacking reimbursements and
other, net
(1
)
87
***
Total
588,914
565,233
4.2
Operating income
328,216
209,414
56.7
Non-operating (expense) income:
Equity loss in unconsolidated investments,
net
(248
)
(3,997
)
(93.8
)
Interest expense
(44,046
)
(46,079
)
(4.4
)
Other non-operating items, net
4,667
2,485
87.8
Total
(39,627
)
(47,591
)
(16.7
)
Income before income taxes
288,589
161,823
78.3
Provision for income taxes
69,775
32,011
***
Net income
218,814
129,812
68.6
Net income attributable to redeemable
noncontrolling interest
(213
)
(381
)
(44.1
)
Net income attributable to TEGNA
Inc.
$
218,601
$
129,431
68.9
Earnings per share:
Basic
$
0.97
$
0.58
67.2
Diluted
$
0.97
$
0.58
67.2
Weighted average number of common
shares outstanding:
Basic shares
224,233
222,068
1.0
Diluted shares
225,275
223,362
0.9
*** Not meaningful
CONSOLIDATED STATEMENTS OF
INCOME
TEGNA Inc.
Unaudited, in thousands of dollars (except
per share amounts)
Table No. 1 (continued)
Year ended Dec. 31,
2022
2021
% Increase (Decrease)
Revenues
$
3,279,245
$
2,991,093
9.6
Operating expenses:
Cost of revenues
1,693,221
1,598,759
5.9
Business units - Selling, general and
administrative expenses
414,530
396,446
4.6
Corporate - General and administrative
expenses
60,108
68,127
(11.8
)
Depreciation
61,195
64,841
(5.6
)
Amortization of intangible assets
59,882
63,011
(5.0
)
Spectrum repacking reimbursements and
other, net
(323
)
(2,307
)
(86.0
)
Total
2,288,613
2,188,877
4.6
Operating income
990,632
802,216
23.5
Non-operating (expense) income:
Equity loss in unconsolidated investments,
net
(4,473
)
(9,713
)
(53.9
)
Interest expense
(174,022
)
(185,650
)
(6.3
)
Other non-operating items, net
21,431
6,825
***
Total
(157,064
)
(188,538
)
(16.7
)
Income before income taxes
833,568
613,678
35.8
Provision for income taxes
202,370
135,481
49.4
Net income
631,198
478,197
32.0
Net income attributable to redeemable
noncontrolling interest
(729
)
(1,242
)
(41.3
)
Net income attributable to TEGNA
Inc.
$
630,469
$
476,955
32.2
Earnings per share:
Basic
$
2.82
$
2.15
31.2
Diluted
$
2.81
$
2.14
31.3
Weighted average number of common
shares outstanding:
Basic shares
223,652
221,504
1.0
Diluted shares
224,486
222,471
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, certain non-operating items such as
expense related to the early extinguishment of debt, a gain on an
available for sale investment, and a valuation gain from an
investment and an impairment charge recorded for another
investment. In addition, we have excluded certain income tax
special items associated with a valuation allowance on a deferred
tax asset related to an equity method investment, a partial capital
loss valuation allowance release, 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 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 Dec. 31, 2022
GAAP measure
M&A-related costs
Spectrum repacking
reimbursements and other
Non-GAAP measure
Corporate - General and administrative
expenses
$
11,809
$
(2,370
)
$
—
$
9,439
Spectrum repacking reimbursements and
other, net
(1
)
—
1
—
Operating expenses
588,914
(2,370
)
1
586,545
Operating income
328,216
2,370
(1
)
330,585
Income before income taxes
288,589
2,370
(1
)
290,958
Provision for income taxes
69,775
148
—
69,923
Net income attributable to TEGNA Inc.
218,601
2,222
(1
)
220,822
Earnings per share-diluted
$
0.97
$
0.01
$
—
$
0.98
Special Items
Quarter ended Dec. 31, 2021
GAAP measure
M&A-related costs
Spectrum repacking
reimbursements and other
Other non- operating
items
Special tax items
Non-GAAP measure
Corporate - General and administrative
expenses
$
16,183
$
(3,738
)
$
—
$
—
$
—
$
12,445
Spectrum repacking reimbursements and
other, net
87
—
(87
)
—
—
—
Operating expenses
565,233
(3,738
)
(87
)
—
—
561,408
Operating income
209,414
3,738
87
—
—
213,239
Other non-operating items, net
2,485
—
—
2,448
—
4,933
Income before income taxes
161,823
3,738
87
2,448
—
168,096
Provision for income taxes
32,011
60
21
629
6,994
39,715
Net income attributable to TEGNA Inc.
129,431
3,678
66
1,819
(6,994
)
128,000
Earnings per share-diluted (a)
$
0.58
$
0.02
$
—
$
0.01
$
(0.03
)
$
0.57
(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
Year ended Dec. 31, 2022
GAAP measure
M&A-related costs
Spectrum repacking
reimbursements and other
Other non- operating
items
Special tax items
Non-GAAP measure
Corporate - General and administrative
expenses
$
60,108
$
(20,517
)
$
—
$
—
$
—
$
39,591
Spectrum repacking reimbursements and
other, net
(323
)
—
323
—
—
—
Operating expenses
2,288,613
(20,517
)
323
—
—
2,268,419
Operating income
990,632
20,517
(323
)
—
—
1,010,826
Other non-operating items, net
21,431
—
—
(18,308
)
—
3,123
Total non-operating expenses
(157,064
)
—
—
(18,308
)
—
(175,372
)
Income before income taxes
833,568
20,517
(323
)
(18,308
)
—
835,454
Provision for income taxes
202,370
233
(78
)
168
(4,529
)
198,164
Net income attributable to TEGNA Inc.
630,469
20,284
(245
)
(18,476
)
4,529
636,561
Earnings per share-diluted (a)
$
2.81
$
0.09
$
—
$
(0.08
)
$
0.02
$
2.83
(a) Per share amounts do not sum due to
rounding.
Special Items
Year ended Dec. 31, 2021
GAAP measure
Advisory fees related to
activism defense
M&A-related costs
Spectrum repacking
reimbursements and other
Other non- operating
items
Special tax items
Non-GAAP measure
Corporate - General and administrative
expenses
$
68,127
$
(16,611
)
$
(3,738
)
$
—
$
—
$
—
$
47,778
Spectrum repacking reimbursements and
other, net
(2,307
)
—
—
2,307
—
—
—
Operating expenses
2,188,877
(16,611
)
(3,738
)
2,307
—
—
2,170,835
Operating income
802,216
16,611
3,738
(2,307
)
—
—
820,258
Equity income (loss) in unconsolidated
investments, net
(9,713
)
—
—
—
—
—
(9,713
)
Other non-operating items, net
6,825
—
—
—
507
—
7,332
Total non-operating expenses
(188,538
)
—
—
—
507
—
(188,031
)
Income before income taxes
613,678
16,611
3,738
(2,307
)
507
—
632,227
Provision for income taxes
135,481
4,291
60
(605
)
127
14,138
153,492
Net income attributable to TEGNA Inc.
476,955
12,320
3,678
(1,702
)
380
(14,138
)
477,493
Earnings per share-diluted
$
2.14
$
0.06
$
0.02
$
(0.01
)
$
—
$
(0.06
)
$
2.15
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 Dec. 31,
2022
2021
2020
Net income attributable to TEGNA Inc.
(GAAP basis)
$
218,601
$
129,431
$
244,304
Plus: Net income attributable to
redeemable noncontrolling interest
213
381
418
Plus: Provision for income taxes
69,775
32,011
84,594
Plus: Interest expense
44,046
46,079
49,561
Plus (Less): Equity loss (income) in
unconsolidated investments, net
248
3,997
(1,990
)
(Less) Plus: Other non-operating items,
net
(4,667
)
(2,485
)
16,759
Operating income (GAAP basis)
328,216
209,414
393,646
Plus: M&A-related costs
2,370
3,738
—
(Less) Plus: Spectrum repacking
reimbursements and other, net
(1
)
87
578
Adjusted operating income (non-GAAP
basis)
330,585
213,239
394,224
Plus: Depreciation
15,137
16,315
17,183
Plus: Amortization of intangible
assets
14,930
15,704
17,113
Adjusted EBITDA (non-GAAP basis)
$
360,652
$
245,258
$
428,520
Corporate - General and administrative
expense (non-GAAP basis)
9,439
12,445
12,006
Adjusted EBITDA, excluding Corporate
(non-GAAP basis)
$
370,091
$
257,703
$
440,526
Year ended Dec. 31,
2022
2021
2020
Net income attributable to TEGNA Inc.
(GAAP basis)
$
630,469
$
476,955
$
482,778
Plus (Less): Net income (loss)
attributable to redeemable noncontrolling interest
729
1,242
(15
)
Plus: Provision for income taxes
202,370
135,481
154,293
Plus: Interest expense
174,022
185,650
210,294
Plus (Less): Equity loss (income) in
unconsolidated investments, net
4,473
9,713
(10,397
)
(Less) Plus: Other non-operating items,
net
(21,431
)
(6,825
)
34,029
Operating income (GAAP basis)
990,632
802,216
870,982
Plus: Workforce restructuring expense
—
—
1,021
Plus: M&A and acquisition-related
costs
20,517
3,738
4,588
Plus: Advisory fees related to activism
defense
—
16,611
23,087
Less: Spectrum repacking reimbursements
and other, net
(323
)
(2,307
)
(9,955
)
Adjusted operating income (non-GAAP
basis)
1,010,826
820,258
889,723
Plus: Depreciation
61,195
64,841
66,880
Plus: Amortization of intangible
assets
59,882
63,011
67,690
Adjusted EBITDA (non-GAAP basis)
$
1,131,903
$
948,110
$
1,024,293
Corporate - General and administrative
expense (non-GAAP basis)
39,591
47,778
45,566
Adjusted EBITDA, excluding Corporate
(non-GAAP basis)
$
1,171,494
$
995,888
$
1,069,859
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 Dec. 31,
2022
2021
% Increase (Decrease)
2020
% Increase (Decrease)
Subscription
$
372,301
$
335,943
10.8
$
313,657
18.7
Advertising and Marketing Services
352,927
400,125
(11.8
)
351,933
0.3
Political
179,383
26,554
***
264,110
(32.1
)
Other
12,519
12,025
4.1
7,875
59.0
Total revenues
$
917,130
$
774,647
18.4
$
937,575
(2.2
)
Adjusted EBITDA
$
360,652
$
245,258
47.1
$
428,520
(15.8
)
Adjusted EBITDA Margin
39.3
%
31.7
%
45.7
%
Year ended Dec. 31,
2022
2021
% Increase (Decrease)
2020
% Increase (Decrease)
Subscription
$
1,530,402
$
1,466,433
4.4
$
1,286,611
18.9
Advertising and Marketing Services
1,363,417
1,428,082
(4.5
)
1,174,774
16.1
Political
341,110
60,573
***
445,535
(23.4
)
Other
44,316
36,005
23.1
30,860
43.6
Total revenues
$
3,279,245
$
2,991,093
9.6
$
2,937,780
11.6
Adjusted EBITDA
$
1,131,903
$
948,110
19.4
$
1,024,293
10.5
Adjusted EBITDA Margin
34.5
%
31.7
%
34.9
%
*** 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 Dec. 31,
2022
2021
% Increase (Decrease)
Net income attributable to TEGNA Inc.
(GAAP basis)
$
218,601
$
129,431
68.9
Plus: Provision for income taxes
69,775
32,011
***
Plus: Interest expense
44,046
46,079
(4.4
)
Plus: M&A-related costs
2,370
3,738
(36.6
)
Plus: Depreciation
15,137
16,315
(7.2
)
Plus: Amortization
14,930
15,704
(4.9
)
Plus: Stock-based compensation
6,856
8,378
(18.2
)
Plus: Company stock 401(k)
contribution
4,317
3,567
21.0
Plus: Syndicated programming
amortization
13,981
18,016
(22.4
)
Plus: Cash dividend from equity
investments for return on capital
200
3,144
(93.6
)
Plus: Net income attributable to
redeemable noncontrolling interest
213
381
(44.1
)
Plus: Equity loss in unconsolidated
investments, net
248
3,997
(93.8
)
Plus: Reimbursement from company-owned
life insurance policies
473
475
(0.4
)
Plus (Less): Cash reimbursements from
spectrum repacking
1
(87
)
***
(Less) Plus: Spectrum repacking
reimbursements and other, net
(1
)
87
***
Less: Other non-operating items, net
(4,667
)
(2,485
)
87.8
Less: Income tax payments
(46,889
)
(32,564
)
44.0
Less: Syndicated programming payments
(14,670
)
(18,292
)
(19.8
)
Less: Pension contributions
(2,816
)
(934
)
***
Less: Interest payments
(9,240
)
(13,979
)
(33.9
)
Less: Purchases of property and
equipment
(15,806
)
(23,658
)
(33.2
)
Free cash flow (non-GAAP basis)
$
297,059
$
189,324
56.9
*** Not meaningful
NON-GAAP FINANCIAL INFORMATION
TEGNA Inc.
Unaudited, in thousands of dollars
Table No. 5 (continued)
Two-year period ended Dec. 31,
2022
Net income attributable to TEGNA Inc.
(GAAP basis)
$
1,107,424
Plus: Provision for income taxes
337,851
Plus: Interest expense
359,672
Plus: M&A-related costs
24,255
Plus: Depreciation
126,036
Plus: Amortization
122,893
Plus: Stock-based compensation
61,996
Plus: Company stock 401(k)
contribution
35,803
Plus: Syndicated programming
amortization
139,482
Plus: Advisory fees related to activism
defense
16,611
Plus: Cash dividend from equity
investments for return on capital
5,633
Plus: Cash reimbursements from spectrum
repacking
5,265
Plus: Net income attributable to
redeemable noncontrolling interest
1,971
Plus: Reimbursement from Company-owned
life insurance policies
1,929
Plus: Equity income in unconsolidated
investments, net
14,186
Less: Spectrum repacking reimbursements
and other, net
(2,630
)
Less: Other non-operating items, net
(28,256
)
Less: Syndicated programming payments
(139,252
)
Less: Income tax payments, net of
refunds
(350,259
)
Less: Pension contributions
(12,125
)
Less: Interest payments
(347,336
)
Less: Purchases of property and
equipment
(114,409
)
Free cash flow (non-GAAP basis)
$
1,366,740
Revenue
$
6,270,338
Free cash flow as a % of revenue
21.8
%
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 Dec. 31,
2022
2021
Operating expenses (GAAP basis)
$
588,914
$
565,233
Less: Special items 1
(2,369
)
(3,825
)
Operating expenses (non-GAAP basis)
586,545
561,408
Less: Premion expenses
(62,370
)
(49,213
)
Operating expenses, less Premion (non-GAAP
basis)
$
524,175
$
512,195
Less: Programming expenses
(237,992
)
(222,473
)
Operating expenses, less Premion and
programming (non-GAAP basis)
$
286,183
$
289,722
Year ended Dec. 31,
2022
2021
Operating expenses (GAAP basis)
$
2,288,613
$
2,188,877
Less: Special items 2
(20,194
)
(18,042
)
Operating expenses (non-GAAP basis)
2,268,419
2,170,835
Less: Premion expenses
(223,679
)
(169,113
)
Operating expenses, less Premion (non-GAAP
basis)
$
2,044,740
$
2,001,722
Less: Programming expenses
(952,225
)
(902,463
)
Operating expenses, less Premion and
programming (non-GAAP basis)
$
1,092,515
$
1,099,259
1 Q4 2022 and Q4 2021 special items
include M&A-related costs and reimbursements from the FCC for
required spectrum repacking (see Table 2).
2 Full year 2022 special items include
M&A-related costs and reimbursements from the FCC for required
spectrum repacking (see Table 2). Full year 2021 special items
include advisory fees related to activism defense, M&A-related
costs, contract termination fee, write-off of certain fixed assets,
and reimbursements from the FCC for required spectrum repacking
(see Table 2).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230226005213/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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