Scripps reports Q2 2024 financial results

Rhea-AI Summary

The E.W. Scripps Company (NASDAQ: SSP) reported Q2 2024 financial results with $574 million in revenue, down 1.6% year-over-year. The company posted a loss of $13 million or $0.15 per share. Scripps raised its 2024 Local Media election-year political advertising revenue outlook to $270-$290 million, driven by U.S. Senate races and ballot issues. The Scripps Networks' national advertising upfront sales saw low single-digit percent volume increases. Local Media revenue grew 3.6% to $365 million, while Scripps Networks revenue declined 9.7% to $209 million. The company's total debt stood at $2.9 billion as of June 30, 2024.

Positive

• Raised 2024 political advertising revenue outlook to $270-$290 million
• Local Media revenue increased 3.6% to $365 million
• Political revenue grew to $28.2 million from $3.8 million in the prior-year quarter
• WNBA revenue up 85% from the 2023 season
• Signed new production, sales and distribution rights agreement with Florida Panthers NHL team

Negative

• Overall revenue decreased 1.6% to $574 million
• Reported loss of $13 million or $0.15 per share
• Scripps Networks revenue declined 9.7% to $209 million
• Core advertising revenue decreased 6.9% to $139 million
• Did not declare or pay quarterly preferred stock dividends

Insights

Financial Analyst

The Q2 2024 results for E.W. Scripps present a mixed financial picture. While revenue declined slightly to $574 million, down 1.6% year-over-year, the company's Local Media segment showed strength with 3.6% growth. The standout performer was political advertising revenue, reaching $28.2 million compared to just $3.8 million in Q2 2023. This surge led to an increased full-year political ad revenue forecast of $270-$290 million.

However, the Scripps Networks segment faced challenges, with revenue declining 9.7%. The company reported a net loss of $13 million or $0.15 per share, which is concerning but a significant improvement from the $682 million loss in Q2 2023. The debt situation remains a key focus, with $2.9 billion in total debt as of June 30. Management's emphasis on debt reduction and the potential sale of Bounce TV could be important for improving the company's financial health.

Media Industry Expert

Scripps' Q2 results highlight the evolving landscape of media consumption. The company's strategic focus on sports, particularly women's sports, is paying dividends. The WNBA Friday night franchise on ION has seen impressive viewership, with three games surpassing 1 million viewers. This success has translated into an 85% increase in WNBA revenue compared to 2023.

The company's expansion into NHL broadcasting rights, now including the Florida Panthers, demonstrates a commitment to diversifying content. However, the decline in Scripps Networks revenue suggests ongoing challenges in traditional TV networks. The planned divestiture of Bounce TV, despite its 14% CAGR since 2017, indicates a strategic shift. The upfront advertising sales showing low single-digit growth is a positive sign, but it also reflects the competitive pressures in the industry. Scripps' ability to leverage its sports content and navigate the changing media landscape will be important for future growth.

Political Advertising Specialist

The surge in political advertising revenue for Scripps is a significant development. The $28 million in Q2 political ad revenue, driving a 40% growth in the first half of 2024 compared to 2020, underscores the enduring importance of local TV in political campaigns. The increased full-year forecast of $270-$290 million in political ad revenue reflects a robust political landscape.

Key drivers include competitive U.S. Senate races in Montana and Ohio, as well as controversial ballot issues in several states. The entry of Vice President Kamala Harris into the presidential race could further boost ad spending. The company's strong performance in political advertising demonstrates the resilience of broadcast television as a platform for political messaging. This trend is likely to continue, providing a significant revenue stream for Scripps in election years and potentially offsetting challenges in other segments.

CINCINNATI, Aug. 8, 2024 /PRNewswire/ -- The E.W. Scripps Company (NASDAQ: SSP) delivered $574 million in revenue for the second quarter of 2024. Loss attributable to the shareholders of Scripps was $13 million or 15 cents per share.

Business notes:

• Scripps now believes its 2024 Local Media election-year political advertising revenue will reach record levels, with even the low end of the new range, $270-$290 million, above any previous year. Previously, the company had given a range of $240-$270 million. The increased outlook is being driven largely by U.S. Senate races in Montana and Ohio as well as controversial ballot issues in several states. There also could be upside captured in the new dynamics of the race for president.
• Progress continues on the planned divestiture of Scripps' Bounce television network. Bounce, whose programming is created for Black audiences, is distributed over the air, on cable and on most major streaming/FAST platform services. Bounce has grown viewership and revenue – at a 14% CAGR – since Scripps acquired it as part of the Katz networks in 2017.
• The Scripps Networks' national advertising upfront sales season is winding down with volume increases in the low single digit percent range over last year, driven largely by the success of the company's women's sports strategy.
• Viewership of the WNBA has skyrocketed with all media partners, including ION's Friday night franchise, which has seen three games so far this year with more than 1 million viewers each. Scripps' revenue for the WNBA is up 85% from the 2023 season.
• On the local front, Scripps Sports recently signed the newest Stanley Cup champions, the Florida Panthers, to a production, sales and distribution rights agreement. The Panthers are the third National Hockey League team to partner with Scripps Sports for the distribution of their broadcast rights. This will be Scripps Sports' first season with the Florida Panthers and the Utah Hockey Club and the second year with the Vegas Golden Knights.
• Companywide, expenses met or bettered expectations in the second quarter through tight expense management.

From Scripps President and CEO Adam Symson:
"During the second quarter, our Local Media political advertising revenue came in much stronger than expected at $28 million, driving 40 percent growth in the first half of the year over the same period of 2020 and creating some local core advertising displacement. That start to the year and our latest back-half outlook led us to once again raise our expectations for 2024 presidential election-year revenue.

"Election spending remains robust for the U.S. Senate races in Montana and Ohio, and at least four states where we have stations have placed reproductive rights issues on their November ballots. We are beginning to see additional upside from Vice President Kamala Harris's entry into the presidential race. Overall, this year's political ad revenue performance for broadcast television is a testament to our durability as a brand-safe platform for political candidates and campaigns.

"While the results of last year's national advertising upfront are still impacting our quarterly results in the Scripps Networks division, we are seeing a better performance in this season's upfront sales cycle. With commitments from the majority of our advertising agency clients, we have volume increases of low single digits over last year. Sports has been the differentiator. Our WNBA Friday night franchise on ION has so far showcased three games where viewership surpassed 1 million, proving to advertisers that ION can deliver them to significantly large sports audiences. Viewership of our NWSL Saturday night franchise continues to grow as well, and we are optimistic that the Paris Summer Olympics will fuel additional enthusiasm for women's soccer – and viewership and revenue for us.

"As we move through the second half of the year, this management team continues to see a clear path to significant debt paydown by year end. Our expectations for segment profit are driven by the robust political advertising revenue outlook. We also are exercising prudent expense management, and we are progressing nicely with our efforts to sell the Bounce TV network and some non-strategic real estate assets. All of these factors give us confidence we can bring down our leverage significantly going into 2025."

Operating results
Total second-quarter company revenue was $574 million, a decrease of 1.6% or $9.2 million from the prior-year quarter. Costs and expenses for segments, shared services and corporate were $479 million, up from $471 million in the year-ago quarter.

Loss attributable to the shareholders of Scripps was $13 million or 15 cents per share. In the prior-year quarter, the loss attributable to shareholders was $682 million or $8.10 per share. The pre-tax costs for the prior-year quarter included a non-cash goodwill impairment charge for Scripps Networks of $686 million as well as an $8 million restructuring charge, increasing the loss attributable to shareholders by $8.01 per share.

Second-quarter 2024 results by segment compared to prior-period amounts:

Local Media
Revenue was $365 million, up 3.6% from the prior-year quarter.

• Core advertising revenue decreased 6.9% to $139 million, due in part to displacement from political advertising.
• Political revenue was $28.2 million, compared to $3.8 million in the prior-year quarter, a non-election year.
• Distribution revenue was $194 million, compared to $195 million in the prior-year quarter.

Segment expenses increased 2.1% to $277 million. Segment expenses in 2024 reflect additional programming expense associated with the sports rights agreements for the National Hockey League's Vegas Golden Knights and the former Arizona Coyotes.

Segment profit was $88.1 million, compared to $81 million in the year-ago quarter.

Scripps Networks
Revenue was $209 million, down 9.7% from the prior-year quarter. Segment expenses were $171 million, relatively flat from the year-ago quarter.

Segment profit was $37.7 million, compared to $60.3 million in the year-ago quarter.

Financial condition
On June 30, cash and cash equivalents totaled $26.7 million, and total debt was $2.9 billion.

During the first six months of 2024, we reduced the outstanding balance on our revolving credit facility by $40 million and made mandatory principal payments of $7.8 million on our term loans.

We did not declare or provide payment for either of the 2024 quarterly preferred stock dividends. We have sufficient liquidity to pay the scheduled dividends on the preferred shares; however, this action provides us better flexibility for accelerating deleveraging and maximizing the paydown of our traditional bank debt. The dividend rate on the preferred shares, which compounds quarterly, increased to 9% per annum and will remain at that rate. At June 30, aggregated undeclared and unpaid cumulative dividends totaled $27.3 million. Under the terms of Berkshire Hathaway's preferred equity investment in Scripps, we are prohibited from paying dividends on or repurchasing our common shares until all preferred shares are redeemed.

Year-to-date operating results
The following comparisons are to the period ending June 30, 2023:

Revenue was $1.1 billion in 2024 and 2023. Political revenue was $45.4 million, compared to $7.4 million in the prior year, a non-election year.

Costs and expenses for segments, shared services and corporate were $953 million, up from $926 million in the year-ago period, reflecting higher programming expense and production costs associated with the sports rights agreements for both Local Media and Scripps Networks.

Loss attributable to the shareholders of Scripps was $25.8 million or 30 cents per share. The 2024 period included an $18.1 million investment gain and a $6 million restructuring charge, decreasing the loss attributable to shareholders by 11 cents per share. In the prior year, loss attributable to shareholders was $714 million or $8.49 per share. Pre-tax costs for the prior year included a non-cash goodwill impairment charge for Scripps Networks of $686 million as well as a $24.5 million restructuring charge, increasing the loss attributable to shareholders by $8.18 per share.

Looking ahead
Comparisons for our segments are to the same period in 2023.

		Third-quarter 2024
Local Media revenue		Up about 20 percent
Local Media expense		Up low-single-digit percent range
Scripps Networks revenue		Down mid-single digits percent range
Scripps Networks expense		Down low-single-digits percent range
Shared services and corporate		About $21 million
		Full-year 2024
Interest paid		$195-$205 million (updated)
Capital expenditures		$65-$70 million (updated)
Taxes paid		$60-$65 million (updated)
Depreciation and amortization		$150-$160 million

Conference call
The senior management of The E.W. Scripps Company will discuss the company's quarterly results during a telephone conference call at 9:30 a.m. Eastern, tomorrow, Aug. 9. To access the live webcast, visit http://ir.scripps.com and find the link under "upcoming events."

To access the conference call by telephone, dial (877) 336-4440 (U.S.) or (409) 207-6984 (international) and give the access code 1958030 approximately five minutes before the start of the call. Investors and analysts will need the name of the call ("Scripps earnings call") to be granted access. The public is granted access to the conference call on a listen-only basis.

A replay line will be open from 12:30 p.m. Eastern time Aug. 9 until midnight Sept. 9. The domestic number to access the replay is (866) 207-1041 and the international number is (402) 970-0847. The access code for both numbers is 7111467.

A replay of the conference call will be archived and available online for an extended period of time following the call. To access the audio replay, visit http://ir.scripps.com/ approximately four hours after the call, and the link can be found on that page under "audio/video links."

Forward-looking statements
This document contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "believe," "anticipate," "intend," "expect," "estimate," "could," "should," "outlook," "guidance," and similar references to future periods. Examples of forward-looking statements include, among others, statements the company makes regarding expected operating results and future financial condition. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management's current beliefs, expectations, and assumptions regarding the future of the industry and the economy, the company's plans and strategies, anticipated events and trends, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties, and changes in circumstance that are difficult to predict and many of which are outside of the company's control. The company's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause the company's actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: change in advertising demand, fragmentation of audiences, loss of affiliation agreements, loss of distribution revenue, increase in programming costs, changes in law and regulation, the company's ability to identify and consummate strategic transactions, the controlled ownership structure of the company, and the company's ability to manage its outstanding debt obligations. A detailed discussion of such risks and uncertainties is included in the company's Form 10-K, on file with the SEC, in the section titled "Risk Factors." Any forward-looking statement made in this document is based only on currently available information and speaks only as of the date on which it is made. The company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise.

Media contact: Michael Perry, The E.W. Scripps Company, (513) 259-4718, michael.perry@scripps.com
Investor contact: Carolyn Micheli, The E.W. Scripps Company, (513) 977-3732, carolyn.micheli@scripps.com

About Scripps
The E.W. Scripps Company (NASDAQ: SSP) is a diversified media company focused on creating a better-informed world. As one of the nation's largest local TV broadcasters, Scripps serves communities with quality, objective local journalism and operates a portfolio of more than 60 stations in 40+ markets. Scripps reaches households across the U.S. with national news outlets Scripps News and Court TV and popular entertainment brands ION, Bounce, Grit, ION Mystery, ION Plus and Laff. Scripps is the nation's largest holder of broadcast spectrum. Scripps is the longtime steward of the Scripps National Spelling Bee. Founded in 1878, Scripps' long-time motto is: "Give light and the people will find their own way."

 

THE E.W. SCRIPPS COMPANY RESULTS OF OPERATIONS
		Three Months Ended  June 30,				Six Months Ended  June 30,
(in thousands, except per share data)		2024		2023		2024		2023
Operating revenues		$      573,629		$      582,836		$   1,135,093		$   1,110,614
Segment, shared services and corporate expenses		(478,639)		(471,086)		(952,865)		(926,432)
Restructuring costs		(973)		(7,992)		(5,988)		(24,503)
Depreciation and amortization of intangible assets		(38,468)		(38,628)		(77,156)		(77,171)
Impairment of goodwill		—		(686,000)		—		(686,000)
Gains (losses), net on disposal of property and equipment		157		(358)		10		(1,254)
Operating expenses		(517,923)		(1,204,064)		(1,035,999)		(1,715,360)
Operating income (loss)		55,706		(621,228)		99,094		(604,746)
Interest expense		(52,123)		(52,275)		(107,040)		(101,113)
Defined benefit pension plan income		177		134		354		268
Miscellaneous, net		(419)		(675)		16,402		(1,178)
Income (loss) from operations before income taxes		3,341		(674,044)		8,810		(706,769)
Benefit (provision) for income taxes		(1,912)		4,215		(5,755)		18,400
Net income (loss)		1,429		(669,829)		3,055		(688,369)
Preferred stock dividends		(14,432)		(12,577)		(28,809)		(25,153)
Net loss attributable to the shareholders of The E.W. Scripps Company		$       (13,003)		$     (682,406)		$       (25,754)		$     (713,522)
Net loss per diluted share of common stock attributable to the shareholders of The E.W. Scripps Company:		$           (0.15)		$           (8.10)		$           (0.30)		$           (8.49)
Weighted average diluted shares outstanding		85,673		84,296		85,282		84,024
See notes to results of operations.

Notes to Results of Operations

1. SEGMENT INFORMATION

We determine our business segments based upon our management and internal reporting structures, as well as the basis on which our chief operating decision maker makes resource-allocation decisions.  

Our Local Media segment includes more than 60 local television stations and their related digital operations. It is comprised of 18 ABC affiliates, 11 NBC affiliates, nine CBS affiliates and four FOX affiliates. We also have seven CW affiliates - four on full power stations and three on multicast; seven independent stations and 10 additional low power stations. Our Local Media segment earns revenue primarily from the sale of advertising to local, national and political advertisers and retransmission fees received from cable operators, telecommunications companies, satellite carriers and over-the-top virtual MVPDs.

Our Scripps Networks segment includes national news outlets Scripps News and Court TV as well as popular entertainment brands ION, Bounce, Grit, ION Mystery, ION Plus and Laff. The Scripps Networks reach nearly every U.S. television home through free over-the-air broadcast, cable/satellite, connected TV and digital distribution. These operations earn revenue primarily through the sale of advertising. 

Our respective business segment results reflect the impact of intercompany carriage agreements between our local broadcast television stations and our national networks. We also allocate a portion of certain corporate costs and expenses, including accounting, human resources, employee benefit and information technology to our business segments. These intercompany agreements and allocations are generally amounts agreed upon by management, which may differ from an arms-length amount.

The other segment caption aggregates our operating segments that are too small to report separately. Costs for centrally provided services and certain corporate costs that are not allocated to the business segments are included in shared services and corporate costs. These unallocated corporate costs would also include the costs associated with being a public company. Corporate assets are primarily cash and cash equivalents, property and equipment primarily used for corporate purposes and deferred income taxes. 

Our chief operating decision maker evaluates the operating performance of our business segments and makes decisions about the allocation of resources to our business segments using a measure called segment profit. Segment profit excludes interest, defined benefit pension plan amounts, income taxes, depreciation and amortization, impairment charges, divested operating units, restructuring activities, investment results and certain other items that are included in net income (loss) determined in accordance with accounting principles generally accepted in the United States of America.

Information regarding the operating results of our business segments is as follows:

		Three Months Ended  June 30,						Six Months Ended  June 30,
(in thousands)		2024		2023		Change		2024		2023		Change
Segment operating revenues:
Local Media		$     364,926		$     352,219		3.6 %		$     717,762		$     664,142		8.1 %
Scripps Networks		208,720		231,229		(9.7) %		417,998		447,702		(6.6) %
Other		4,746		3,773		25.8 %		8,859		7,529		17.7 %
Intersegment eliminations		(4,763)		(4,385)		8.6 %		(9,526)		(8,759)		8.8 %
Total operating revenues		$     573,629		$     582,836		(1.6) %		$  1,135,093		$  1,110,614		2.2 %
Segment profit (loss):
Local Media		$       88,130		$       81,017		8.8 %		$     153,686		$     126,860		21.1 %
Scripps Networks		37,747		60,343		(37.4) %		87,401		111,869		(21.9) %
Other		(9,236)		(6,279)		47.1 %		(15,633)		(7,811)
Shared services and corporate		(21,651)		(23,331)		(7.2) %		(43,226)		(46,736)		(7.5) %
Restructuring costs		(973)		(7,992)				(5,988)		(24,503)
Depreciation and amortization of intangible assets		(38,468)		(38,628)				(77,156)		(77,171)
Impairment of goodwill		—		(686,000)				—		(686,000)
Gains (losses), net on disposal of property and equipment		157		(358)				10		(1,254)
Interest expense		(52,123)		(52,275)				(107,040)		(101,113)
Defined benefit pension plan income		177		134				354		268
Miscellaneous, net		(419)		(675)				16,402		(1,178)
Income (loss) from operations before income taxes		$         3,341		$   (674,044)				$         8,810		$   (706,769)

Operating results for our Local Media segment were as follows:

		Three Months Ended  June 30,						Six Months Ended  June 30,
(in thousands)		2024		2023		Change		2024		2023		Change
Segment operating revenues:
Core advertising		$     139,106		$     149,449		(6.9) %		$     275,549		$     290,762		(5.2) %
Political		28,151		3,846				43,317		7,371
Distribution		194,191		195,266		(0.6) %		391,690		358,707		9.2 %
Other		3,478		3,658		(4.9) %		7,206		7,302		(1.3) %
Total operating revenues		364,926		352,219		3.6 %		717,762		664,142		8.1 %
Segment costs and expenses:
Employee compensation and benefits		105,569		110,468		(4.4) %		212,295		216,182		(1.8) %
Programming		123,112		119,774		2.8 %		253,856		237,826		6.7 %
Other expenses		48,115		40,960		17.5 %		97,925		83,274		17.6 %
Total costs and expenses		276,796		271,202		2.1 %		564,076		537,282		5.0 %
Segment profit		$       88,130		$       81,017		8.8 %		$     153,686		$     126,860		21.1 %

Operating results for our Scripps Networks segment were as follows: 

		Three Months Ended  June 30,						Six Months Ended  June 30,
(in thousands)		2024		2023		Change		2024		2023		Change
Total operating revenues		$     208,720		$     231,229		(9.7) %		$     417,998		$     447,702		(6.6) %
Segment costs and expenses:
Employee compensation and benefits		29,781		33,580		(11.3) %		59,762		63,753		(6.3) %
Programming		98,474		90,678		8.6 %		187,636		178,084		5.4 %
Other expenses		42,718		46,628		(8.4) %		83,199		93,996		(11.5) %
Total costs and expenses		170,973		170,886		0.1 %		330,597		335,833		(1.6) %
Segment profit		$       37,747		$       60,343		(37.4) %		$       87,401		$     111,869		(21.9) %

2. CONDENSED CONSOLIDATED BALANCE SHEETS 

(in thousands)		As of  June 30,  2024		As of December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents		$            26,651		$            35,319
Other current assets		628,051		640,774
Total current assets		654,702		676,093
Investments		23,895		23,265
Property and equipment		464,405		455,255
Operating lease right-of-use assets		96,836		99,194
Goodwill		1,968,574		1,968,574
Other intangible assets		1,681,555		1,727,178
Programming		381,131		449,943
Miscellaneous		9,858		10,618
TOTAL ASSETS		$       5,280,956		$       5,410,120
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$            85,521		$            76,383
Unearned revenue		14,903		12,181
Current portion of long-term debt		15,612		15,612
Accrued expenses and other current liabilities		321,836		373,643
Total current liabilities		437,872		477,819
Long-term debt (less current portion)		2,853,692		2,896,824
Other liabilities (less current portion)		821,207		879,294
Total equity		1,168,185		1,156,183
TOTAL LIABILITIES AND EQUITY		$       5,280,956		$       5,410,120

3. EARNINGS PER SHARE ("EPS") 

Unvested awards of share-based payments with non-forfeitable rights to receive dividends or dividend equivalents, such as our RSUs, are considered participating securities for purposes of calculating EPS. Under the two-class method, we allocate a portion of net income to these participating securities and, therefore, exclude that income from the calculation of EPS for common stock. We do not allocate losses to the participating securities.

The following table presents information about basic and diluted weighted-average shares outstanding:

		Three Months Ended  June 30,				Six Months Ended  June 30,
(in thousands)		2024		2023		2024		2023
Numerator (for basic and diluted earnings per share)
Net income (loss)		$         1,429		$   (669,829)		$         3,055		$   (688,369)
Less preferred stock dividends		(14,432)		(12,577)		(28,809)		(25,153)
Numerator for basic and diluted earnings per share		$     (13,003)		$   (682,406)		$     (25,754)		$   (713,522)
Denominator
Basic weighted-average shares outstanding		85,673		84,296		85,282		84,024
Effect of dilutive securities		—		—		—		—
Diluted weighted-average shares outstanding		85,673		84,296		85,282		84,024

4. NON-GAAP INFORMATION

In addition to results prepared in accordance with GAAP, this earnings release discusses adjusted EBITDA, a non-GAAP performance measure that management and the company's Board of Directors uses to evaluate the performance of the business. We also believe that the non-GAAP measure provides useful information to investors by allowing them to view our business through the eyes of management and is a measure that is frequently used by industry analysts, investors and lenders as a measure of valuation for broadcast companies.

Adjusted EBITDA is calculated as income (loss) from continuing operations, net of tax, plus income tax expense

(benefit), interest expense, losses (gains) on extinguishment of debt, defined benefit pension plan expense (income), share-based compensation costs, depreciation, amortization of intangible assets, impairment of goodwill, loss (gain) on business and asset disposals, acquisition and integration costs, restructuring charges and certain other miscellaneous items. We consider adjusted EBITDA to be an indicator of our operating performance.

A reconciliation of the adjusted EBITDA measure to the comparable financial measure in accordance with GAAP is as follows:

		Three Months Ended  June 30,				Six Months Ended  June 30,
(in thousands)		2024		2023		2024		2023
Net income (loss)		$         1,429		$   (669,829)		$         3,055		$   (688,369)
Provision (benefit) for income taxes		1,912		(4,215)		5,755		(18,400)
Interest expense		52,123		52,275		107,040		101,113
Defined benefit pension plan income		(177)		(134)		(354)		(268)
Share-based compensation costs		4,970		9,174		9,576		12,649
Depreciation		15,150		15,137		30,270		30,190
Amortization of intangible assets		23,318		23,491		46,886		46,981
Impairment of goodwill		—		686,000		—		686,000
Losses (gains), net on disposal of property and equipment		(157)		358		(10)		1,254
Restructuring costs		973		7,992		5,988		24,503
Miscellaneous, net		419		675		(16,402)		1,178
Adjusted EBITDA		$       99,960		$     120,924		$     191,804		$     196,831

5. SUPPLEMENTAL CASH FLOW INFORMATION

The following table presents additional information on certain sources and uses of cash:

		Three Months Ended  June 30,				Six Months Ended  June 30,
(in thousands)		2024		2023		2024		2023
Capital expenditures		$     (23,149)		$     (16,814)		$     (41,046)		$     (25,110)
Preferred stock dividends paid		—		(12,000)		—		(24,000)
Interest paid		(33,811)		(31,889)		(101,158)		(93,862)
Income taxes paid		(34,388)		(20,569)		(34,570)		(12,890)
Mandatory contributions to defined retirement plans		(290)		(383)		(587)		(630)

 

 

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SOURCE The E.W. Scripps Company

FAQ

What was Scripps' Q2 2024 revenue and how did it compare to the previous year?

Scripps reported Q2 2024 revenue of $574 million, a decrease of 1.6% or $9.2 million from the prior-year quarter.

How much political advertising revenue does Scripps expect for 2024?

Scripps raised its 2024 Local Media election-year political advertising revenue outlook to $270-$290 million, up from the previous range of $240-$270 million.

What was the performance of Scripps' Local Media segment in Q2 2024?

The Local Media segment revenue was $365 million, up 3.6% from the prior-year quarter, with political revenue increasing to $28.2 million from $3.8 million.

How did Scripps Networks perform in Q2 2024?

Scripps Networks revenue was $209 million, down 9.7% from the prior-year quarter, with segment profit decreasing to $37.7 million from $60.3 million.

What is Scripps' (SSP) debt situation as of Q2 2024?

As of June 30, 2024, Scripps' total debt was $2.9 billion. The company reduced its revolving credit facility balance by $40 million and made $7.8 million in mandatory term loan payments in the first half of 2024.