Strong free cash flow from operations and significant
financial flexibility position TEGNA to continue to create
long-term shareholder value
TEGNA actively reviewing capital allocation strategy and
committed to additional return of excess capital to
shareholders
Company to hold investor call on May 25
TEGNA Inc. (NYSE: TGNA) today announced a $300 million
accelerated share repurchase (“ASR”) program and a 20 percent
increase in its quarterly dividend. These initial actions to return
excess capital to shareholders follow the termination of TEGNA’s
merger agreement with an affiliate of Standard General L.P. Under
the terms of the merger agreement, TEGNA is entitled to receive a
termination fee of $136 million from Standard General.
Beyond these actions, TEGNA’s Board of Directors and management
team are also actively reviewing the return of additional excess
capital that accumulated during the pending merger.
ACCELERATED SHARE REPURCHASE PROGRAM
TEGNA will enter into a $300 million ASR agreement with JPMorgan
Chase Bank, which is expected to be completed by the end of the
third quarter of 2023. The ASR will be funded through cash on hand,
which stood at $683 million at the end of the first quarter of
2023.
DIVIDEND INCREASE
The TEGNA Board has approved a 20 percent increase to the
Company’s regular quarterly dividend from 9.5 to 11.375 cents per
share. TEGNA will pay the previously declared regular quarterly
dividend of 9.5 cents per share on July 3, 2023, to stockholders of
record as of the close of business on June 9, 2023, and expects the
increased dividend announced today to be in effect in future
regular quarterly dividend payments, subject to the Board’s
declaration. This increase brings TEGNA’s total dividend payout
growth to 63 percent since March 2021.
Howard D. Elias, chairman of the TEGNA Board, said, “These
initial actions reflect the Board’s continuing commitment to
enhance shareholder value. We are taking the first step of
immediately returning a significant portion of the excess capital
accumulated during the pendency of the Standard General
transaction. We are actively reviewing TEGNA’s capital allocation
strategy and look forward to our engagement with investors over the
coming months.”
Dave Lougee, president and CEO of TEGNA, said, “I am extremely
proud of our TEGNA colleagues for remaining focused on our business
despite the distractions of a long-pending transaction. Their hard
work and dedication have maintained strong business momentum,
building on record total company revenue, subscription revenue, net
income, free cash flow and Adjusted EBITDA in 2022. As we look
ahead, we are confident that TEGNA is well positioned to continue
serving all our stakeholders based on our portfolio of leading
broadcast assets and innovative digital brands, our delivery of
high-quality, trusted news and content in the markets where we
operate, and our continued focus on fostering a culture of
diversity and inclusivity.”
Lougee added, “TEGNA’s standalone financial position and outlook
are a direct result of our great team, our impactful local content,
our predictable cash flows, and our strong balance sheet with the
lowest leverage levels since TEGNA became a pure-play broadcasting
company. With no near-term maturities and attractively priced fixed
rate debt, TEGNA’s balance sheet remains best in class, and we
expect to maintain net leverage below 3.0x.”
INVESTOR CALL
TEGNA will host an investor call to discuss its first quarter
2023 earnings results and will provide guidance for the second
quarter and full-year 2023 metrics on May 25, 2023, at 10:00 a.m.
(ET). The call, which will also be webcast through the Company’s
website, is open to investors, the financial community, media and
members of the public. To join the toll-free call, dial
888-254-3590 at least 10 minutes prior to the scheduled start time.
International callers should dial 929-477-0402. The confirmation
code for the conference call is 6553035. To listen to the call via
live webcast, please visit investors.TEGNA.com and allow at least
10 minutes to access TEGNA’s home page and complete the links
before the webcast begins. A replay of the conference call will be
available under “Investor Relations” at www.TEGNA.com. A transcript
of the conference call will also be made available on the Company’s
website.
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, risks and uncertainties related to: changes in the
market price of the Company’s shares, general market conditions,
access to credit or debt capital markets, applicable securities
laws and alternative uses of capital; constraints, volatility, or
disruptions in the capital markets or other factors affecting share
repurchases, including the Company’s ability to complete the ASR on
the expected terms and timing; delays or failures associated with
implementation of the Company’s ASR program; the possibility that
the Company’s ASR program, or any future share repurchases, may not
enhance long-term stockholder value; the possibility that share
repurchases pursuant to the ASR program could increase the
volatility of the price of the Company’s common stock and diminish
the Company’s cash reserves; legal proceedings, judgments or
settlements; the response of customers, suppliers and business
partners to the termination of the merger agreement, including
impacts on and modifications to the Company’s plans, operations and
business relating thereto; difficulties in employee retention due
to the termination of the merger agreement; the Company’s ability
to re-price or renew subscribers and execute on its capital
allocation strategy; potential regulatory actions; changes in
consumer behaviors and impacts on and modifications to TEGNA’s
operations and business relating thereto; and economic,
competitive, governmental, technological and other factors and
risks that may affect the Company’s operations or financial
results, which are discussed in our Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q. Any forward-looking statements in
this press release should be evaluated in light of these important
risk factors. 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 services,
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: anticipated
growth rates and the Company’s plans, objectives and
expectations.
About TEGNA
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230522005713/en/
For media inquiries, contact: Anne Bentley Vice
President, Corporate Communications 703-873-6366 abentley@TEGNA.com
George Sard / Andy Duberstein / Hayley Cook FGS Global
George.Sard@fgsglobal.com / Andy.Duberstein@fgsglobal.com /
Hayley.Cook@fgsglobal.com For investor inquiries, contact:
Julie Heskett Senior Vice President, Financial Planning &
Analysis 703-873-6747 investorrelations@TEGNA.com
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