Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

TEGNA Inc. Reports Second Quarter 2022 Results


TEGNA Inc. (NYSE: TGNA) today announced financial results for the second quarter ended June 30, 2022.

SECOND QUARTER FINANCIAL HIGHLIGHTS1:

_________________________

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

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

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).

 


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