TEGNA Inc. Reports Third Quarter 2024 Results and Provides Fourth Quarter 2024 Guidance
TEGNA (TGNA) reported strong Q3 2024 results with total revenue increasing 13% to $807 million, driven by record political advertising of $126 million and positive growth in advertising and marketing services. Subscription revenue decreased 6% to $356 million due to subscriber declines. The company achieved $270 million in Adjusted EBITDA, up 62%. GAAP earnings per share reached $0.89, while non-GAAP EPS was $0.94. TEGNA returned over $90 million to shareholders through share repurchases and dividends, maintaining its commitment to return approximately $350 million in 2024.
TEGNA (TGNA) ha riportato ottimi risultati per il terzo trimestre del 2024, con un incremento del fatturato totale del 13%, arrivando a 807 milioni di dollari, grazie a pubblicità politica record pari a 126 milioni di dollari e una crescita positiva nei servizi pubblicitari e di marketing. I ricavi da abbonamento sono diminuiti del 6%, attestandosi a 356 milioni di dollari a causa della perdita di abbonati. L'azienda ha registrato un EBITDA rettificato di 270 milioni di dollari, in aumento del 62%. Gli utili per azione secondo i principi GAAP sono stati di $0,89, mentre l'EPS non-GAAP era di $0,94. TEGNA ha restituito oltre $90 milioni agli azionisti attraverso riacquisti di azioni e dividendi, mantenendo il suo impegno a restituire circa $350 milioni nel 2024.
TEGNA (TGNA) informó resultados sólidos para el tercer trimestre de 2024, con un aumento del 13% en los ingresos totales, alcanzando $807 millones, impulsados por un récord de publicidad política de $126 millones y un crecimiento positivo en los servicios de publicidad y marketing. Los ingresos por suscripción disminuyeron un 6% a $356 millones debido a la disminución de suscriptores. La compañía logró un EBITDA ajustado de $270 millones, un aumento del 62%. Las ganancias por acción según GAAP alcanzaron $0.89, mientras que el EPS no GAAP fue de $0.94. TEGNA devolvió más de $90 millones a los accionistas a través de recompra de acciones y dividendos, manteniendo su compromiso de devolver aproximadamente $350 millones en 2024.
TEGNA (TGNA)는 2024년 3분기 강력한 실적을 보고했으며, 총 수익이 13% 증가하여 8억 7백만 달러에 달했습니다. 이는 정치 광고가 기록적으로 1억 2천6백만 달러에 이르고, 광고 및 마케팅 서비스에서 긍정적인 성장이 이루어졌기 때문입니다. 구독 수익은 구독자 감소로 인해 6% 감소하여 3억 5천6백만 달러를 기록했습니다. 이 회사는 조정 EBITDA로 2억 7천만 달러를 달성했으며, 이는 62% 증가한 수치입니다. GAAP 기준의 주당 순이익은 $0.89에 달했으며, 비 GAAP EPS는 $0.94였습니다. TEGNA는 주식 매입 및 배당금을 통해 주주에게 9천만 달러 이상을 환원했으며, 2024년에는 약 3억 5천만 달러를 환원하겠다는 약속을 유지하고 있습니다.
TEGNA (TGNA) a annoncé de bons résultats pour le troisième trimestre 2024, avec une augmentation des revenus totaux de 13% atteignant 807 millions de dollars, soutenue par un record de publicité politique de 126 millions de dollars et une croissance positive dans les services de publicité et de marketing. Les revenus d'abonnement ont diminué de 6% pour atteindre 356 millions de dollars en raison d'une baisse du nombre d'abonnés. L'entreprise a réalisé un EBITDA ajusté de 270 millions de dollars, en hausse de 62%. Le bénéfice par action selon les normes GAAP s'est élevé à 0,89 $, tandis que l'EPS non-GAAP était de 0,94 $. TEGNA a restitué plus de 90 millions de dollars à ses actionnaires par le biais de rachats d'actions et de dividendes, maintenant son engagement à restituer environ 350 millions de dollars en 2024.
TEGNA (TGNA) berichtete über starke Ergebnisse im dritten Quartal 2024, mit einem Anstieg des Gesamtumsatzes um 13% auf 807 Millionen Dollar, angetrieben von Reklameausgaben im politischen Bereich in Höhe von 126 Millionen Dollar und positivem Wachstum bei Werbe- und Marketingdienstleistungen. Die Einnahmen aus Abonnements gingen um 6% auf 356 Millionen Dollar zurück, was auf einen Rückgang der Abonnenten zurückzuführen ist. Das Unternehmen erzielte ein angepasstes EBITDA von 270 Millionen Dollar, was einem Anstieg um 62% entspricht. Der Gewinn pro Aktie nach GAAP betrug $0,89, während der non-GAAP EPS bei $0,94 lag. TEGNA gab über $90 Millionen an die Aktionäre zurück durch Aktienrückkäufe und Dividenden und hielt damit sein Versprechen, im Jahr 2024 etwa $350 Millionen zurückzugeben.
- Record Q3 political advertising revenue of $126 million
- Total revenue increased 13% to $807 million
- Adjusted EBITDA grew 62% to $270 million
- Advertising and marketing services revenue showed positive growth
- Strong capital return with $91 million distributed to shareholders in Q3
- Subscription revenue declined 6% to $356 million due to subscriber losses
- Net leverage ratio at 2.8x
- National advertising accounts showed continued softness
Insights
TEGNA's Q3 performance shows strong financial resilience with total revenue up 13% to
Notable concerns include a
The guidance for Q4 projecting
Exceeds third quarter key guidance metrics and reaffirms full-year 2024 key guidance metrics
Reports record third quarter political revenue
Returns more than
TYSONS, Va.--(BUSINESS WIRE)-- TEGNA Inc. (NYSE: TGNA) today announced financial results for the third quarter ended September 30, 2024.
THIRD QUARTER FINANCIAL HIGHLIGHTS:
All Year-Over-Year Comparisons Unless Otherwise Noted:
-
Total company revenue increased
13% to , above our guidance range, primarily driven by strength in political advertising and positive growth in advertising and marketing services (AMS) revenue.$807 million -
Political advertising revenue totaled
, a new third quarter record.$126 million -
Full-year political advertising revenue through Election Day was approximately
.$375 million
-
Full-year political advertising revenue through Election Day was approximately
-
Subscription revenue decreased
6% to , primarily due to subscriber declines partially offset by contractual rate increases.$356 million -
AMS revenue increased slightly to
driven by increased advertising related to the Summer Olympic Games partially offset by political crowd out. The underlying advertising trend improved due to demand from local accounts that outweighed continued softness from national accounts.$313 million -
GAAP operating expenses decreased slightly to
and non-GAAP operating expenses1 were$577 million , both benefiting from a reduction of programming fees and our core cost initiatives.$566 million -
GAAP and non-GAAP operating income1 totaled
and$230 million , respectively.$240 million -
GAAP net income attributable to TEGNA Inc. was
and non-GAAP net income attributable to TEGNA Inc.1 was$147 million .$157 million -
GAAP and non-GAAP earnings per diluted share1 were
and$0.89 , respectively.$0.94 -
Total company Adjusted EBITDA2 increased
62% to primarily due to strength in political advertising and continued cost benefits from our core cost initiatives.$270 million
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1 See Table 3 for details |
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2 See Table 4 for details |
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“I am thrilled to join TEGNA at this pivotal moment for the Company and for local journalism,” said Mike Steib, CEO. “The good work we do serving our communities, our strong brands, and sizable TV and online audience position us well to adapt to the headwinds in our industry. Our wins this quarter with political advertising, the Summer Olympic games, and sports rights are a reminder of the strong foundation on which we can build our future.”
KEY BUSINESS UPDATES:
- TEGNA reported record political advertising revenue during the third quarter.
- TEGNA continued to expand its sports rights through agreements with the Dallas Mavericks and Kroenke Sports & Entertainment’s Denver Nuggets and Colorado Avalanche.
-
Key personnel updates
- TEGNA appointed Alex Tolston chief legal officer, effective October 21, 2024. Tolston serves as a member of the Company’s leadership team, reporting to CEO Mike Steib.
- Lynn Beall, executive vice president and chief operating officer of media operations, will depart TEGNA in mid-2025 after a significant transition period, enabling the Company to benefit from her invaluable experience as it transitions to a new organizational structure.
- Ellen Crooke, senior vice president of news, will retire in January 2025.
- TEGNA stations received ten 2024 National Edward R. Murrow Awards for excellence in broadcast journalism, more than any other station group.
CAPITAL ALLOCATION, LEVERAGE, AND LIQUIDITY:
-
During the first nine months of 2024, we returned approximately
65% of Adjusted free cash flow to shareholders through share repurchases and dividends. We continue to expect to return 40-60% of our Adjusted free cash flow3 over 2024-2025 to shareholders, including approximately in 2024.$350 million -
Adjusted free cash flow was
for the quarter and$211 million for the first nine months of 2024.$441 million -
During the third quarter, the Company returned
of capital to shareholders, with$91 million in share repurchases, representing 4.9 million shares, and$70 million in dividends.$21 million -
Interest expense in the third quarter fell slightly to
due to decreased undrawn fees on the company’s revolving credit facility.$42 million -
Cash and cash equivalents totaled
at the end of the third quarter. Net leverage finished the third quarter at 2.8x4.$536 million
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3 See Table 5 for details |
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4 See Table 6 for details |
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FULL-YEAR AND FOURTH QUARTER 2024 OUTLOOK: |
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Full-Year 2024 Key Guidance Metrics |
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TEGNA is reaffirming its guidance metrics for the full-year of 2024 and improving the effective tax rate |
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2024/2025 Two-Year Adjusted FCF |
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Net Leverage Ratio |
Below 3x at year end |
Corporate Expenses |
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Depreciation |
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Amortization |
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Interest Expense |
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Capital Expenditures |
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Effective Tax Rate |
22.0 – |
Fourth Quarter 2024 Key Guidance Metrics |
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Reflects expectations relative to fourth quarter 2023 results |
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Total Company GAAP Revenue |
Up |
Total Non-GAAP Operating Expenses |
Up |
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CONFERENCE CALL
TEGNA will host a conference call and webcast on Thursday, November 7, 2024, to discuss the Company’s financial results and other business matters. The teleconference will begin at 9:00 a.m. Eastern Time and will be hosted by Mike Steib, CEO, and Julie Heskett, chief financial officer.
The conference call will be webcast through the company’s website, and is open to investors, the financial community, the media and other members of the public. To access the meeting by phone, please visit investors.TEGNA.com at least 10 minutes prior to the scheduled start time to access the links and register before the conference call begins. Once registered, phone participants will receive dial-in numbers and a unique PIN to seamlessly access the call.
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. 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 financial results are intended to identify forward-looking statements. Forward-looking statements in this communication may include, without limitation, statements regarding anticipated growth rates and the Company’s plans, objectives and expectations. 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, many of which are outside the Company’s control. 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, constraints, volatility, or disruptions in the capital markets; the possibility that the Company's capital allocation plan, including dividends, share repurchases, and/or strategic acquisitions, investments, and partnerships may not enhance long-term stockholder value; legal proceedings, judgments or settlements; the Company's ability to re-price or renew subscribers; 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 communication should be evaluated in light of these important risk factors. The Company is not responsible for updating the information contained in this communication 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.
ADDITIONAL INFORMATION
TEGNA Inc. (NYSE: TGNA) serves local communities across the
CONSOLIDATED STATEMENTS OF INCOME
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|||||||||||
Table No. 1 |
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Quarter ended Sept. 30, |
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2024 |
|
2023 |
|
Change |
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|
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Revenues |
$ |
806,827 |
|
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$ |
713,243 |
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|
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13 |
% |
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|
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|
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Operating expenses: |
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|
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Cost of revenues |
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437,855 |
|
|
|
438,260 |
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|
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0 |
% |
Business units - Selling, general and administrative expenses |
|
96,882 |
|
|
|
98,394 |
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(2 |
%) |
Corporate - General and administrative expenses |
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13,188 |
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|
|
13,552 |
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(3 |
%) |
Depreciation |
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15,543 |
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|
|
15,083 |
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3 |
% |
Amortization of intangible assets |
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13,467 |
|
|
|
13,297 |
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|
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1 |
% |
Total |
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576,935 |
|
|
|
578,586 |
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|
|
0 |
% |
Operating income |
|
229,892 |
|
|
|
134,657 |
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|
|
71 |
% |
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|
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Non-operating (expense) income: |
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Interest expense |
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(42,288 |
) |
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(43,418 |
) |
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(3 |
%) |
Interest income |
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7,023 |
|
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|
7,389 |
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(5 |
%) |
Other non-operating items, net |
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(2,696 |
) |
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25,427 |
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*** |
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Total |
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(37,961 |
) |
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(10,602 |
) |
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*** |
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Income before income taxes |
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191,931 |
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124,055 |
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55 |
% |
Provision for income taxes |
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44,743 |
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27,801 |
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61 |
% |
Net income |
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147,188 |
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96,254 |
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53 |
% |
Net loss (income) attributable to redeemable noncontrolling interest |
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260 |
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(71 |
) |
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*** |
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Net income attributable to TEGNA Inc. |
$ |
147,448 |
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$ |
96,183 |
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53 |
% |
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Earnings per share: |
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Basic |
$ |
0.89 |
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$ |
0.48 |
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85 |
% |
Diluted |
$ |
0.89 |
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$ |
0.48 |
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85 |
% |
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Weighted average number of common shares outstanding: |
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Basic shares |
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165,188 |
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200,779 |
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(18 |
%) |
Diluted shares |
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165,748 |
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201,218 |
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(18 |
%) |
*** Not meaningful |
CONSOLIDATED STATEMENTS OF INCOME
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Table No. 1 (continued) |
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Nine months ended Sept. 30, |
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2024 |
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2023 |
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Change |
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Revenues |
$ |
2,231,442 |
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$ |
2,185,076 |
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2 |
% |
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Operating expenses: |
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Cost of revenues |
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1,300,466 |
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1,295,720 |
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0 |
% |
Business units - Selling, general and administrative expenses |
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294,080 |
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294,734 |
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0 |
% |
Corporate - General and administrative expenses |
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40,671 |
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|
52,158 |
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(22 |
%) |
Depreciation |
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45,026 |
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|
45,119 |
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0 |
% |
Amortization of intangible assets |
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40,790 |
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|
40,175 |
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2 |
% |
Asset impairment and other |
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1,097 |
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|
3,359 |
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(67 |
%) |
Merger termination fee |
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— |
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(136,000 |
) |
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*** |
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Total |
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1,722,130 |
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|
|
1,595,265 |
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8 |
% |
Operating income |
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509,312 |
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|
589,811 |
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(14 |
%) |
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Non-operating (expense) income: |
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Interest expense |
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(126,404 |
) |
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|
(129,121 |
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(2 |
%) |
Interest income |
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18,469 |
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|
23,498 |
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(21 |
%) |
Other non-operating items, net |
|
144,313 |
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|
19,990 |
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*** |
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Total |
|
36,378 |
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(85,633 |
) |
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*** |
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Income before income taxes |
|
545,690 |
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|
504,178 |
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8 |
% |
Provision for income taxes |
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127,211 |
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|
103,827 |
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|
23 |
% |
Net income |
|
418,479 |
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|
400,351 |
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|
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5 |
% |
Net loss attributable to redeemable noncontrolling interest |
|
673 |
|
|
|
240 |
|
|
*** |
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Net income attributable to TEGNA Inc. |
$ |
419,152 |
|
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$ |
400,591 |
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|
5 |
% |
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|
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Earnings per share: |
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Basic |
$ |
2.44 |
|
|
$ |
1.86 |
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|
|
31 |
% |
Diluted |
$ |
2.44 |
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$ |
1.86 |
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31 |
% |
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Weighted average number of common shares outstanding: |
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|
|
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Basic shares |
|
170,820 |
|
|
|
214,297 |
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(20 |
%) |
Diluted shares |
|
171,334 |
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|
|
214,591 |
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(20 |
%) |
*** Not meaningful |
REVENUE CATEGORIES
|
Table No. 2 |
Below is a detail of our primary sources of revenue: |
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Quarter ended Sept. 30, |
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2024 |
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2023 |
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Change |
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Subscription |
$ |
356,205 |
|
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$ |
377,891 |
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|
( |
Advertising & Marketing Services |
|
312,963 |
|
|
|
312,413 |
|
|
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Political |
|
126,318 |
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|
11,643 |
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*** |
Other |
|
11,341 |
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|
11,296 |
|
|
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Total revenues |
$ |
806,827 |
|
|
$ |
713,243 |
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|
|
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|
|
|
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|
Nine months ended Sept. 30, |
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2024 |
|
2023 |
|
Change |
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|
|
|
|
|
|
|
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Subscription |
$ |
1,098,554 |
|
|
$ |
1,188,297 |
|
|
( |
Advertising & Marketing Services |
|
912,632 |
|
|
|
937,984 |
|
|
( |
Political |
|
185,789 |
|
|
|
22,925 |
|
|
*** |
Other |
|
34,467 |
|
|
|
35,870 |
|
|
( |
Total revenues |
$ |
2,231,442 |
|
|
$ |
2,185,076 |
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*** Not meaningful |
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USE OF NON-GAAP INFORMATION
The company uses non-GAAP financial performance and liquidity 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 (the "Board") regularly use Corporate–General and administrative expenses, Operating expenses, Operating income, Income before income taxes, Provision for income taxes, Net income attributable to TEGNA Inc., and Diluted earnings per share, each presented on a non-GAAP basis, for purposes of evaluating company performance. Management and the Board also use Adjusted EBITDA and Adjusted free cash flow to evaluate company performance and liquidity, respectively. The Leadership Development and Compensation Committee of our Board uses non-GAAP measures such as Adjusted EBITDA, non-GAAP net income, non-GAAP EPS, and Adjusted free cash flow to evaluate and compensate senior management. The Board uses Adjusted free cash flow in its periodic assessments of, among other things, repurchases of the company’s common stock, the company’s dividends, strategic opportunities and long-term debt retirement. 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, 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 and liquidity measures that exclude from its reported GAAP results the impact of “special items” consisting of asset impairment and other, merger and acquisition (M&A)-related costs, Merger termination fee, retention costs, workforce restructuring, gain recognized on the partial sale of one of our equity investments, and a gain related to the sale of the company’s investment in Broadcast Music Inc. (“BMI”). In addition, we have excluded an income tax special items associated with a valuation allowance on a deferred tax asset related to an equity method investment and a tax benefit associated with previously disallowed transaction costs. 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 or liquidity 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, charges 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 stock-based compensation expense), 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 loss attributable to redeemable noncontrolling interest, (2) income taxes, (3) interest expense, (4) interest income, (5) other non-operating items, net, (6) M&A-related costs, (7) asset impairment and other, (8) workforce restructuring costs, (9) employee retention costs, (10) the Merger termination fee, (11) depreciation and (12) amortization of intangible assets. 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 Adjusted free cash flow, a non-GAAP liquidity measure. The most directly comparable GAAP financial measure to Adjusted free cash flow is Net cash flow from operating activities. Starting in the second quarter of 2024, the company updated its definition of Adjusted free cash flow. Adjusted free cash flow is now calculated as net cash flow from operating activities less payments for purchases of property and equipment plus or minus special items. The company removes special items affecting cash flow from operating activities because we do not consider these items to be indicative of its underlying cash flow generation for the reporting period. Adjusted free cash flow is not intended to be a measure of residual cash available for management’s discretionary use since it omits significant sources and uses of cash flow including mandatory debt repayments. The principal difference between the new definition and the former definition is the inclusion of cash flows driven by changes in certain working capital accounts (primarily accounts receivable, accounts payable and accrued expenses) which are now included. The company’s 2024/2025 Two-Year Adjusted free cash flow guidance of
This earnings release also presents our net leverage ratio which includes Adjusted EBITDA (without stock-based compensation) as a component of the computation. Our net leverage ratio is a financial measure that is used by management to assess the borrowing capacity of the company and management believes it is useful to investors for the same reason. The company defines its Net Leverage Ratio as (a) net debt (total debt less cash and cash equivalents) as of the balance sheet date divided by (b) Average Annual Adjusted EBITDA for the trailing two-year period.
The company is furnishing forward-looking guidance with respect to Adjusted free cash flow for the combined 2024-25 years, net leverage and corporate expenses for fiscal year 2024 and non-GAAP operating expenses for the fourth quarter of 2024. Our future GAAP financial results will include the impact of special items such as retention costs including stock-based compensation and cash payments, M&A-related costs, workforce restructuring, and asset impairment. The company believes that such expenses 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. Therefore, while we may incur or recognize these types of expenses in the future, the company believes that removing these items for purposes of calculating the non-GAAP basis financial measures provides investors with a more focused presentation of our ongoing operating performance.
The company is not able to reconcile these amounts to their comparable GAAP financial measures without unreasonable efforts because certain information necessary to calculate such measures on a GAAP basis is unavailable, dependent on future events outside of our control and cannot be predicted. An example of such information is share-based compensation, which is impacted by future share price movement in the company’s stock price and also dependent on future hiring and attrition. In addition, the company believes such reconciliations could imply a degree of precision that might be confusing or misleading to investors. The actual effect of the reconciling items that the company may exclude from these non-GAAP expense numbers, when determined, may be significant to the calculation of the comparable GAAP measures.
NON-GAAP FINANCIAL INFORMATION
|
Table No. 3 |
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 Sept. 30, 2024 |
|
GAAP measure |
|
Retention costs - SBC |
|
Retention costs - Cash |
|
Workforce restructuring |
|
Non-GAAP measure |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Corporate - General and administrative expenses |
|
$ |
13,188 |
|
|
$ |
(1,771 |
) |
|
$ |
(1,181 |
) |
|
$ |
(1,231 |
) |
|
$ |
9,005 |
|
Operating expenses |
|
|
576,935 |
|
|
|
(4,044 |
) |
|
|
(2,390 |
) |
|
|
(4,167 |
) |
|
|
566,334 |
|
Operating income |
|
|
229,892 |
|
|
|
4,044 |
|
|
|
2,390 |
|
|
|
4,167 |
|
|
|
240,493 |
|
Income before income taxes |
|
|
191,931 |
|
|
|
4,044 |
|
|
|
2,390 |
|
|
|
4,167 |
|
|
|
202,532 |
|
Provision for income taxes |
|
|
44,743 |
|
|
|
242 |
|
|
|
430 |
|
|
|
518 |
|
|
|
45,933 |
|
Net income attributable to TEGNA Inc. |
|
|
147,448 |
|
|
|
3,802 |
|
|
|
1,960 |
|
|
|
3,649 |
|
|
|
156,859 |
|
Earnings per share - diluted |
|
$ |
0.89 |
|
|
$ |
0.02 |
|
|
$ |
0.01 |
|
|
$ |
0.02 |
|
|
$ |
0.94 |
|
|
|
|
|
|
Special Items |
|
|
|
||||||||||||||||
Quarter ended Sept. 30, 2023 |
|
GAAP measure |
|
Retention costs - SBC |
|
Retention costs - Cash |
|
Other non-operating item |
|
Special tax item |
|
Non-GAAP measure |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Corporate - General and administrative expenses |
|
$ |
13,552 |
|
|
$ |
(440 |
) |
|
$ |
(553 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
12,559 |
|
Operating expenses |
|
|
578,586 |
|
|
|
(1,692 |
) |
|
|
(1,192 |
) |
|
|
— |
|
|
|
— |
|
|
|
575,702 |
|
Operating income |
|
|
134,657 |
|
|
|
1,692 |
|
|
|
1,192 |
|
|
|
— |
|
|
|
— |
|
|
|
137,541 |
|
Income before income taxes |
|
|
124,055 |
|
|
|
1,692 |
|
|
|
1,192 |
|
|
|
(25,809 |
) |
|
|
— |
|
|
|
101,130 |
|
Provision for income taxes |
|
|
27,801 |
|
|
|
237 |
|
|
|
152 |
|
|
|
(6,604 |
) |
|
|
1,516 |
|
|
|
23,102 |
|
Net income attributable to TEGNA Inc. |
|
|
96,183 |
|
|
|
1,455 |
|
|
|
1,040 |
|
|
|
(19,205 |
) |
|
|
(1,516 |
) |
|
|
77,957 |
|
Earnings per share - diluted |
|
$ |
0.48 |
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
(0.10 |
) |
|
$ |
(0.01 |
) |
|
$ |
0.39 |
|
NON-GAAP FINANCIAL INFORMATION
|
||||||||||||||||||||||||||||||||
Table No. 3 (continued) |
||||||||||||||||||||||||||||||||
|
|
|
|
|
Special Items |
|
|
|
||||||||||||||||||||||||
Nine months ended Sept. 30, 2024 |
|
GAAP measure |
|
Retention costs - SBC |
|
Retention costs - Cash |
|
M&A-related costs |
|
Workforce restructuring |
|
Asset impairment and other |
|
Other non-operating item |
|
Non-GAAP measure |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate - General and administrative expenses |
|
$ |
40,671 |
|
|
$ |
(3,094 |
) |
|
$ |
(2,056 |
) |
|
$ |
(2,290 |
) |
|
$ |
(1,834 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
31,397 |
|
Operating expenses |
|
|
1,722,130 |
|
|
|
(9,135 |
) |
|
|
(3,963 |
) |
|
|
(2,290 |
) |
|
|
(7,804 |
) |
|
|
(1,097 |
) |
|
|
— |
|
|
|
1,697,841 |
|
Operating income |
|
|
509,312 |
|
|
|
9,135 |
|
|
|
3,963 |
|
|
|
2,290 |
|
|
|
7,804 |
|
|
|
1,097 |
|
|
|
— |
|
|
|
533,601 |
|
Income before income taxes |
|
|
545,690 |
|
|
|
9,135 |
|
|
|
3,963 |
|
|
|
2,290 |
|
|
|
7,804 |
|
|
|
1,097 |
|
|
|
(152,867 |
) |
|
|
417,112 |
|
Provision for income taxes |
|
|
127,211 |
|
|
|
1,035 |
|
|
|
678 |
|
|
|
593 |
|
|
|
1,408 |
|
|
|
284 |
|
|
|
(36,621 |
) |
|
|
94,588 |
|
Net income attributable to TEGNA Inc. |
|
|
419,152 |
|
|
|
8,100 |
|
|
|
3,285 |
|
|
|
1,697 |
|
|
|
6,396 |
|
|
|
813 |
|
|
|
(116,246 |
) |
|
|
323,197 |
|
Earnings per share - diluted (a) |
|
$ |
2.44 |
|
|
$ |
0.05 |
|
|
$ |
0.02 |
|
|
$ |
0.01 |
|
|
$ |
0.04 |
|
|
$ |
0.01 |
|
|
$ |
(0.68 |
) |
|
$ |
1.88 |
|
(a) Per share amounts do not sum due to rounding. |
||||||||||||||||||||||||||||||||
|
|
|
|
|
Special Items |
|
|
|
||||||||||||||||||||||||||||
Nine months ended Sept. 30, 2023 |
|
GAAP measure |
|
M&A-related costs |
|
Retention costs - SBC |
|
Retention costs - Cash |
|
Merger termination fee |
|
Asset impairment and other |
|
Other non-operating item |
|
Special tax item |
|
Non-GAAP measure |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporate - General and administrative expenses |
|
$ |
52,158 |
|
|
$ |
(19,848 |
) |
|
$ |
(440 |
) |
|
$ |
(553 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
31,317 |
|
Operating expenses |
|
|
1,595,265 |
|
|
|
(19,848 |
) |
|
|
(1,692 |
) |
|
|
(1,192 |
) |
|
|
136,000 |
|
|
|
(3,359 |
) |
|
|
— |
|
|
|
— |
|
|
|
1,705,174 |
|
Operating income |
|
|
589,811 |
|
|
|
19,848 |
|
|
|
1,692 |
|
|
|
1,192 |
|
|
|
(136,000 |
) |
|
|
3,359 |
|
|
|
— |
|
|
|
— |
|
|
|
479,902 |
|
Income before income taxes |
|
|
504,178 |
|
|
|
19,848 |
|
|
|
1,692 |
|
|
|
1,192 |
|
|
|
(136,000 |
) |
|
|
3,359 |
|
|
|
(25,809 |
) |
|
|
— |
|
|
|
368,460 |
|
Provision for income taxes |
|
|
103,827 |
|
|
|
4,552 |
|
|
|
237 |
|
|
|
152 |
|
|
|
(24,504 |
) |
|
|
860 |
|
|
|
(6,604 |
) |
|
|
7,959 |
|
|
|
86,479 |
|
Net income attributable to TEGNA Inc. |
|
|
400,591 |
|
|
|
15,296 |
|
|
|
1,455 |
|
|
|
1,040 |
|
|
|
(111,496 |
) |
|
|
2,499 |
|
|
|
(19,205 |
) |
|
|
(7,959 |
) |
|
|
282,221 |
|
Earnings per share - diluted (a) |
|
$ |
1.86 |
|
|
$ |
0.07 |
|
|
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
(0.52 |
) |
|
$ |
0.01 |
|
|
$ |
(0.09 |
) |
|
$ |
(0.04 |
) |
|
$ |
1.31 |
|
(a) Per share amounts do not sum due to rounding. |
NON-GAAP FINANCIAL INFORMATION
|
Table No. 4 |
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 Sept. 30, |
||||||
|
2024 |
|
2023 |
||||
|
|
|
|
|
|
||
Net income attributable to TEGNA Inc. (GAAP basis) |
$ |
147,448 |
|
|
$ |
96,183 |
|
(Less) Plus: Net (loss) income attributable to redeemable noncontrolling interest |
|
(260 |
) |
|
|
71 |
|
Plus: Provision for income taxes |
|
44,743 |
|
|
|
27,801 |
|
Plus: Interest expense |
|
42,288 |
|
|
|
43,418 |
|
Less: Interest income |
|
(7,023 |
) |
|
|
(7,389 |
) |
Plus (Less): Other non-operating items, net |
|
2,696 |
|
|
|
(25,427 |
) |
Operating income (GAAP basis) |
|
229,892 |
|
|
|
134,657 |
|
Plus: Workforce restructuring |
|
4,167 |
|
|
|
— |
|
Plus: Retention costs - Employee stock-based compensation expenses |
|
4,044 |
|
|
|
1,692 |
|
Plus: Retention costs - Cash |
|
2,390 |
|
|
|
1,192 |
|
Adjusted operating income (non-GAAP basis) |
|
240,493 |
|
|
|
137,541 |
|
Plus: Depreciation |
|
15,543 |
|
|
|
15,083 |
|
Plus: Amortization of intangible assets |
|
13,467 |
|
|
|
13,297 |
|
Adjusted EBITDA |
$ |
269,503 |
|
|
$ |
165,921 |
|
Stock-based compensation expenses: |
|
|
|
|
|
||
Employee awards |
|
6,546 |
|
|
|
4,866 |
|
Company stock 401(k) match contributions |
|
4,035 |
|
|
|
3,924 |
|
Adjusted EBITDA before stock-based compensation costs |
$ |
280,084 |
|
|
$ |
174,711 |
|
|
Nine months ended Sept. 30, |
||||||
|
2024 |
|
2023 |
||||
|
|
|
|
|
|
||
Net income attributable to TEGNA Inc. (GAAP basis) |
$ |
419,152 |
|
|
$ |
400,591 |
|
Less: Net loss attributable to redeemable noncontrolling interest |
|
(673 |
) |
|
|
(240 |
) |
Plus: Provision for income taxes |
|
127,211 |
|
|
|
103,827 |
|
Plus: Interest expense |
|
126,404 |
|
|
|
129,121 |
|
Less: Interest income |
|
(18,469 |
) |
|
|
(23,498 |
) |
Less: Other non-operating items, net |
|
(144,313 |
) |
|
|
(19,990 |
) |
Operating income (GAAP basis) |
|
509,312 |
|
|
|
589,811 |
|
Plus: M&A-related costs |
|
2,290 |
|
|
|
19,848 |
|
Plus: Asset impairment and other |
|
1,097 |
|
|
|
3,359 |
|
Plus: Workforce restructuring |
|
7,804 |
|
|
|
— |
|
Plus: Retention costs - Employee stock-based compensation expenses |
|
9,135 |
|
|
|
1,692 |
|
Plus: Retention costs - Cash |
|
3,963 |
|
|
|
1,192 |
|
Less: Merger termination fee |
|
— |
|
|
|
(136,000 |
) |
Adjusted operating income (non-GAAP basis) |
|
533,601 |
|
|
|
479,902 |
|
Plus: Depreciation |
|
45,026 |
|
|
|
45,119 |
|
Plus: Amortization of intangible assets |
|
40,790 |
|
|
|
40,175 |
|
Adjusted EBITDA |
$ |
619,417 |
|
|
$ |
565,196 |
|
Stock-based compensation expenses: |
|
|
|
|
|
||
Employee awards |
|
21,526 |
|
|
|
13,711 |
|
Company stock 401(k) match contributions |
|
14,251 |
|
|
|
14,150 |
|
Adjusted EBITDA before stock-based compensation costs |
$ |
655,194 |
|
|
$ |
593,057 |
|
NON-GAAP FINANCIAL INFORMATION
|
|||||||
Table No. 5 |
|||||||
Reconciliations of Adjusted free cash flow to net cash flow from operating activities presented in accordance with GAAP on the company’s Consolidated Statements of Cash Flows are presented below: |
|||||||
|
Period ending September 30, 2024 |
||||||
|
Quarter |
|
Year-to-date |
||||
|
|
|
|
|
|
||
Net cash flow from operating activities (GAAP basis) |
$ |
210,057 |
|
|
$ |
435,216 |
|
|
|
|
|
|
|
||
Less: Purchases of property and equipment |
|
(15,414 |
) |
|
|
(36,297 |
) |
|
|
|
|
|
|
||
Special items: |
|
|
|
|
|
||
M&A related costs |
|
494 |
|
|
|
2,198 |
|
Workforce restructuring |
|
3,084 |
|
|
|
5,146 |
|
Retention costs - cash |
|
2,369 |
|
|
|
4,019 |
|
Asset impairment and other |
|
- |
|
|
|
1,097 |
|
Taxes on BMI gain |
|
10,840 |
|
|
|
29,640 |
|
Total Adjustments |
|
16,787 |
|
|
|
42,100 |
|
|
|
|
|
|
|
||
Adjusted free cash flow (non-GAAP basis) |
$ |
211,430 |
|
|
$ |
441,019 |
|
NON-GAAP FINANCIAL INFORMATION
|
Table No. 6 |
The following table reconciles long-term debt, net of current portion to Net debt. |
|
Sept. 30, 2024 |
||
Long-term debt, net of current portion |
$ |
3,090,000 |
|
Plus: Current portion of long-term debt |
|
— |
|
Less: Cash and cash equivalents |
|
(536,253 |
) |
Net debt (numerator) |
$ |
2,553,747 |
|
The following table shows the calculation of the average annual Adjusted EBITDA before stock-based compensation over the trailing two-year period ("T2Y"). |
Adjusted EBITDA before stock-based compensation: |
|
|
|
Nine months ended Sept. 30, 20241 |
$ |
655,194 |
|
Plus: Year ended December 31, 20232 |
|
781,562 |
|
Plus: Year ended December 31, 20222 |
|
1,181,045 |
|
Less: Nine months ended Sept. 30, 20223 |
|
(809,219 |
) |
Combined T2Y |
$ |
1,808,582 |
|
Divided by |
|
2 |
|
T2Y Adjusted EBITDA (denominator) |
$ |
904,291 |
|
The following table shows the calculation of the Net Leverage Ratio. |
|
Sept. 30, 2024 |
||
Net debt (numerator) |
$ |
2,553,747 |
|
T2Y Adjusted EBITDA (denominator) |
$ |
904,291 |
|
Net Leverage Ratio |
|
2.8 |
x |
1 A non-GAAP measure detailed in Table 4. |
2 Refer to page 39 of the 2023 Form 10-K for reconciliations of 2023 and 2022 Adjusted EBITDA before stock-based compensation costs to net income attributable to TEGNA Inc. |
3 Refer to page 27 in our Q3 2022 Form 10-Q for a reconciliation of the first nine months ended 2022 Adjusted EBITDA. Note that we did not present Adjusted EBITDA before stock-based compensation in our Q3 2022 10-Q. Our Adjusted EBITDA was |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106832994/en/
For media inquiries:
Anne Bentley
Vice President, Chief Communications Officer
703-873-6366
abentley@TEGNA.com
For investor inquiries:
Julie Heskett
Senior Vice President, Chief Financial Officer
703-873-6747
investorrelations@TEGNA.com
Source: TEGNA Inc.
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