[July 26, 2016] |
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TEGNA Inc. Reports Strong 2016 Second Quarter Results
TEGNA Inc. (NYSE:TGNA) today reported GAAP earnings per diluted share
from continuing operations of $0.45 for the second quarter of 2016.
Non-GAAP earnings per diluted share were $0.50 for the second quarter of
2016 compared to $0.30 for the second quarter of 2015, an increase of
66.7 percent.
Gracia Martore, president and chief executive officer, said, "We are
pleased to have achieved strong performances across all of our
businesses in the second quarter, which resulted in revenue growth of
7 percent and a substantial year-over-year increase in earnings per
share. Continued growth in retransmission, political and digital
revenues in the Media Segment drove segment growth of 10 percent. In our
Digital Segment, Cars.com benefited from increased dealer market
penetration, new products and growth in display advertising sales to
auto manufacturers, while CareerBuilder's transition to human capital
software solutions - boosted by its acquisition of Aurico last quarter -
resulted in positive revenue growth in the quarter."
Martore continued, "Looking ahead to the second half of the year, we
continue to be very well positioned in both our Media and Digital
Segments to maximize on market demand for our services. We expect
political revenue to ramp up steadily in the third and fourth quarters
as a longer-than-usual primary process led to delayed ad buys from front
running candidates. We also are seeing robust advertising from the
Olympics this summer driven by our strong NBC footprint."
SECOND QUARTER CONTINUING OPERATIONS
The following table summarizes the year-over-year changes in select
financial categories for both GAAP and non-GAAP measures.
Continuing Operations
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(In thousands)
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GAAP
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Non-GAAP
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Second Quarter Ended June 30, 2016
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Second Quarter Ended June 28, 2015
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Second Quarter Ended June 30, 2016
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Second Quarter Ended June 28, 2015
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Operating revenue
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$
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811,785
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$
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756,672
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$
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811,785
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$
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756,672
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Operating expense
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585,191
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570,983
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574,613
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557,305
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Operating income
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$
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226,594
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$
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185,689
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$
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237,172
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$
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199,367
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Net income from continuing operations attributable to TEGNA
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$
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99,451
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$
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38,532
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$
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109,165
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$
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70,377
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See Table 3 for reconciliations between non-GAAP measures and the
most directly comparable GAAP reported numbers.
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Total company GAAP revenues increased 7.3 percent in the second quarter
compared to the second quarter of 2015. On a pro forma basis, which
adjusts for the impact of the sale of PointRoll last year within our
Digital Segment, company revenues were 8.7 percent higher.
Second quarter operating expenses increased 2.5 percent compared to the
second quarter of 2015. On a non-GAAP basis, operating expenses were up
3.1 percent. Higher expenses in the Media and Digital Segments were
partially offset by lower corporate expenses and the absence of
publishing-related unallocated costs. Corporate expenses totaled $17.4
million, 8.6 percent lower compared to the second quarter of 2015. The
decline was driven by continued efficiency efforts partially offset by a
non-cash asset impairment charge recorded in second quarter of 2016.
Excluding the asset impairment charge, corporate expenses were $15.5
million, 18.4 percent lower than the second quarter of 2015.
Operating income grew 22.0 percent compared to the second quarter in
2015 while operating income on a non-GAAP basis was 19.0 percent higher.
Adjusted EBITDA (a non-GAAP measure detailed in Table 4) was up 13.7
percent and totaled $288.1 million. The Adjusted EBITDA margin in the
second quarter of 2016 was 35.5 percent, an increase of 2.0 percentage
points compared to the same quarter last year.
Special items in the second quarter of 2016 unfavorably impacted GAAP
results by $0.05 per share due to charges related to a voluntary early
retirement program, non-cash impairments and acquisition related
expenses. (Refer to Table 3 for a reconciliation of results on a GAAP
and non-GAAP basis).
SECOND QUARTER TEGNA MEDIA
The following table summarizes the year-over-year changes in select
Media Segment revenue categories (in thousands).
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Second Quarter Ended June 30, 2016
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Second Quarter Ended June 28, 2015
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Percentage Change
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Core (Local & National)
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$
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267,092
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$
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268,779
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(0.6
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%)
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Political
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10,246
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2,746
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273.1
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%
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Retransmission (a)
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145,804
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109,440
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33.2
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%
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Online
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32,074
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28,673
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11.9
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%
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Other
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3,731
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7,411
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(49.7
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%)
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Total
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$
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458,947
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$
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417,049
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10.0
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%
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(a) Reverse compensation to networks is included as part of
programming costs.
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Media Segment revenues were up 10.0 percent reflecting substantially
higher retransmission and online revenues and a $7.5 million increase in
political advertising.
Media Segment operating expenses were $279.4 million compared to $239.0
million in the second quarter in 2015. The increase was due primarily to
higher programming fees, continued investment in growth initiatives and
a $6.9 million charge related to an early retirement program. Excluding
the impact of the early retirement program charge, operating expenses
increased 14.0 percent from the second quarter of 2015. Operating income
totaled $179.6 million, an increase of almost 1 percent from the second
quarter in 2015. On a non-GAAP basis, operating income grew 4.1 percent
to $188.3 million. Adjusted EBITDA was $207.2 million in the quarter,
3.7 percent higher than the second quarter in 2015.
Based on current trends, we expect increases in retransmission revenue,
political advertising, Olympic advertising and digital revenue to result
in Media Segment revenue growth of 20 to 25 percent for the third
quarter of 2016 compared to the third quarter of 2015. Revenue growth
will be dependent on the timing of political campaign cycle spending at
both the Presidential and Congressional levels.
SECOND QUARTER TEGNA DIGITAL
The following table reconciles Digital Segment revenues reported on a
GAAP basis to revenues presented on a pro forma basis (a non-GAAP
measure).
(In thousands)
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Second Quarter Ended
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June 30, 2016
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June 28, 2015
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Percentage Change
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Digital Segment Revenue
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Reported (GAAP Measure)
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$
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352,838
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$
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339,623
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3.9%
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Adjust for business sold
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(9,848
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Total adjusted pro-forma revenue
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$
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352,838
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$
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329,775
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7.0%
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Digital Segment revenues were up in the second quarter driven by
continued revenue growth at Cars.com of $8.4 million and a return to
revenue growth at CareerBuilder with an increase of $4.7 million
partially offset by the impact of the sale of our PointRoll business in
late 2015.
Cars.com revenues sold directly by the company were up 7.8 percent
driven by dealer market penetration, new products and an increase in
display advertising purchases by auto manufacturers. Affiliate revenues
were almost 1 percent higher as the majority of affiliates had positive
revenue growth.
CareerBuilder revenues were up 2.7 percent in the second quarter, a
sequential improvement from the 2.3 percent decline in the first
quarter. CareerBuilder results reflect solid growth in its resume
database products and human capital software solutions as well the
acquisition of Aurico.
Digital Segment operating expenses totaled $288.4 million, an increase
of 1.3 percent. The increase reflects primarily accelerating investments
in sales force and growth initiatives at Cars.com, the acquisition of
Aurico and investments in customer service headcount and technology at
CareerBuilder, partially offset by the impact of the disposition of
PointRoll.
Digital Segment operating income was $64.4 million. Adjusted EBITDA
totaled $95.9 million resulting in an Adjusted EBITDA margin of
27.2 percent.
SECOND QUARTER NON-OPERATING AND
CASH FLOW ITEMS
On April 1, 2016, we repaid our $193 million of 10 percent Senior Notes
using significantly lower cost borrowings under our revolving credit
facility. Interest expense totaled $56.1 million in the quarter, a
decline of $13.2 million from $69.3 million in the second quarter of
2015 due to lower average debt outstanding and a lower average interest
rate.
The $24.1 million decrease in other non-operating expenses reflects
primarily the absence of costs related to the spin of our publishing
businesses in June of 2015. Other non-operating income on a non-GAAP
basis in the second quarter of 2016 were $0.6 million compared
$0.4 million in the second quarter of 2015.
Cash flow from operating activities for the second quarter of 2016 was
$102.2 million. Free cash flow (a non-GAAP measure - Refer to Table 5)
totaled $78.6 million for the quarter. Long-term debt outstanding was
$4.3 billion and total cash was $102.2 million at the end of the
quarter. During the second quarter, we repurchased approximately 3.3
million shares of our outstanding stock for $75.5 million and paid
dividends of $30.6 million, returning $106.1 million to our shareholders.
The effective tax rate in the quarter was 32.4 percent on a GAAP basis.
On a non-GAAP basis, the effective tax rate was 32.9 percent.
* * * *
As previously announced, the company will hold an earnings conference
call at 10:00 a.m. E.T. today. The call can be accessed via a live
webcast through the company's Investors website, investors.TEGNA.com,
or listen-only conference lines. U.S. callers should dial 1-800-723-6498
and international callers should dial 1-785-830-7989 at least 10 minutes
prior to the scheduled start of the call. The confirmation code for the
conference call is 4837493. A replay of the conference call will be
available under "Investor Relations" at www.TEGNA.com
from Tuesday, July 26 at 2 p.m. (ET) to Tuesday, August 9 at 2 p.m.
(ET). To access the replay, dial 888-203-1112 or 719-457-0820. The
confirmation code for the replay is 4837493. Materials related to the
call will be available through the Investor Relations section of the
company's website Tuesday morning.
About TEGNA
TEGNA Inc. (NYSE: TGNA) is comprised of a dynamic portfolio of media and
digital businesses that provide content that matters and brands that
deliver. TEGNA reaches more than 90 million Americans and delivers
highly relevant, useful and smart content, when and how people need it,
to make the best decisions possible. TEGNA Media includes 46 television
stations and is the largest independent station group of major network
affiliates in the top 25 markets, reaching approximately one-third of
all television households nationwide. TEGNA Digital is comprised of
Cars.com, the leading online destination for automotive consumers,
CareerBuilder, a global leader in human capital solutions, and other
powerful brands such as G/O Digital and Cofactor. For more information,
visit www.TEGNA.com.
Certain statements in this press release may be forward looking in
nature or "forward looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. The forward looking statements
contained in this press release are subject to a number of risks, trends
and uncertainties that could cause actual performance to differ
materially from these forward looking statements. A number of those
risks, trends and uncertainties are discussed in the company's SEC
reports, including the company's annual report on Form 10-K and
quarterly reports on Form 10-Q. Any forward looking statements in this
press release should be evaluated in light of these important risk
factors.
TEGNA is not responsible for updating the information contained in this
press release beyond the published date, or for changes made to this
press release by wire services, Internet service providers or other
media.
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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Continuing Operations
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TEGNA Inc.
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Unaudited, in thousands (except per share amounts)
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Table No. 1
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Second Quarter Ended June 30, 2016
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Second Quarter Ended June 28, 2015
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% Increase (Decrease)
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Operating revenues:
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Media
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$
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458,947
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$
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417,049
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10.0
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Digital
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352,838
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339,623
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3.9
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Total
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811,785
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756,672
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7.3
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Operating expenses:
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Cost of revenues and operating expenses, exclusive of depreciation
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255,472
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239,910
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6.5
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Selling, general and administrative expenses, exclusive of
depreciation
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275,112
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264,797
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3.9
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Depreciation
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22,627
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24,955
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(9.3
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)
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Amortization of intangible assets
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28,252
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28,966
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(2.5
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)
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Asset impairment charges and facility consolidation
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3,728
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12,355
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(69.8
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)
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Total
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585,191
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570,983
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2.5
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Operating income
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226,594
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185,689
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22.0
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Non-operating expense:
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Equity loss in unconsolidated investees, net
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(5,914
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)
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(1,862
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)
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****
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Interest expense
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(56,141
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)
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(69,252
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)
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(18.9
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)
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Other non-operating expense, net
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(2,548
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)
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(26,695
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)
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(90.5
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)
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Total
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(64,603
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)
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(97,809
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)
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(33.9
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)
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Income before income taxes
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161,991
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87,880
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84.3
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Provision for income taxes
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47,606
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33,724
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41.2
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Income from continuing operations
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114,385
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54,156
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111.2
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Net income attributable to noncontrolling interests
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(14,934
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)
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(15,624
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)
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(4.4
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)
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Net income from continuing operations attributable to TEGNA
Inc.
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$
|
99,451
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$
|
38,532
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****
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Earnings from continuing operations per share:
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Basic
|
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|
$
|
0.46
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$
|
0.17
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|
|
|
|
****
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Diluted
|
|
|
|
|
$
|
0.45
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|
|
|
|
$
|
0.17
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|
|
|
|
****
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|
|
|
|
|
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|
|
|
|
|
|
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|
Weighted average number of common shares outstanding:
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|
|
|
|
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Basic
|
|
|
|
|
216,518
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|
|
|
|
226,538
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|
|
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|
(4.4
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)
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|
Diluted
|
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|
|
|
220,204
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|
|
|
|
231,920
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|
|
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|
(5.1
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)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share
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|
|
$
|
0.14
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|
|
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$
|
0.20
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|
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|
(30.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|
|
Continuing Operations
|
|
|
TEGNA Inc.
|
|
|
Unaudited, in thousands (except per share amounts)
|
|
|
Table No. 1 (continued)
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
Six Months Ended June 28, 2015
|
|
|
|
% Increase (Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
|
|
$
|
902,776
|
|
|
|
|
$
|
813,466
|
|
|
|
|
11.0
|
|
|
|
Digital
|
|
|
|
|
690,741
|
|
|
|
|
674,697
|
|
|
|
|
2.4
|
|
|
|
Total
|
|
|
|
|
1,593,517
|
|
|
|
|
1,488,163
|
|
|
|
|
7.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues and operating expenses, exclusive of depreciation
|
|
|
|
|
503,728
|
|
|
|
|
466,487
|
|
|
|
|
8.0
|
|
|
|
Selling, general and administrative expenses, exclusive of
depreciation
|
|
|
|
|
556,146
|
|
|
|
|
529,548
|
|
|
|
|
5.0
|
|
|
|
Depreciation
|
|
|
|
|
44,860
|
|
|
|
|
49,234
|
|
|
|
|
(8.9
|
)
|
|
|
Amortization of intangible assets
|
|
|
|
|
56,542
|
|
|
|
|
57,654
|
|
|
|
|
(1.9
|
)
|
|
|
Asset impairment charges and facility consolidation
|
|
|
|
|
3,728
|
|
|
|
|
17,079
|
|
|
|
|
(78.2
|
)
|
|
|
Total
|
|
|
|
|
1,165,004
|
|
|
|
|
1,120,002
|
|
|
|
|
4.0
|
|
|
|
Operating income
|
|
|
|
|
428,513
|
|
|
|
|
368,161
|
|
|
|
|
16.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity loss in unconsolidated investees, net
|
|
|
|
|
(2,981
|
)
|
|
|
|
(3,111
|
)
|
|
|
|
(4.2
|
)
|
|
|
Interest expense
|
|
|
|
|
(117,854
|
)
|
|
|
|
(139,922
|
)
|
|
|
|
(15.8
|
)
|
|
|
Other non-operating expense, net
|
|
|
|
|
(169
|
)
|
|
|
|
(2,231
|
)
|
|
|
|
(92.4
|
)
|
|
|
Total
|
|
|
|
|
(121,004
|
)
|
|
|
|
(145,264
|
)
|
|
|
|
(16.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
307,509
|
|
|
|
|
222,897
|
|
|
|
|
38.0
|
|
|
|
Provision for income taxes
|
|
|
|
|
89,714
|
|
|
|
|
84,739
|
|
|
|
|
5.9
|
|
|
|
Income from continuing operations
|
|
|
|
|
217,795
|
|
|
|
|
138,158
|
|
|
|
|
57.6
|
|
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
(25,426
|
)
|
|
|
|
(30,214
|
)
|
|
|
|
(15.8
|
)
|
|
|
Net income from continuing operations attributable to TEGNA
Inc.
|
|
|
|
|
$
|
192,369
|
|
|
|
|
$
|
107,944
|
|
|
|
|
78.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$
|
0.88
|
|
|
|
|
$
|
0.48
|
|
|
|
|
83.3
|
|
|
|
Diluted
|
|
|
|
|
$
|
0.87
|
|
|
|
|
$
|
0.47
|
|
|
|
|
85.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
217,902
|
|
|
|
|
226,814
|
|
|
|
|
(3.9
|
)
|
|
|
Diluted
|
|
|
|
|
221,729
|
|
|
|
|
231,927
|
|
|
|
|
(4.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share
|
|
|
|
|
$
|
0.28
|
|
|
|
|
$
|
0.40
|
|
|
|
|
(30.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUSINESS SEGMENT INFORMATION
TEGNA Inc.
Unaudited, in thousands of dollars
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table No. 2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter Ended June 30, 2016
|
|
|
|
Second Quarter Ended June 28, 2015
|
|
|
|
% Increase (Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
|
|
$
|
458,947
|
|
|
|
|
$
|
417,049
|
|
|
|
|
10.0
|
|
|
|
Digital
|
|
|
|
|
352,838
|
|
|
|
|
339,623
|
|
|
|
|
3.9
|
|
|
|
Total
|
|
|
|
|
$
|
811,785
|
|
|
|
|
$
|
756,672
|
|
|
|
|
7.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (net of depreciation, amortization, asset impairment
charges and facility consolidation):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
|
|
$
|
179,551
|
|
|
|
|
$
|
178,082
|
|
|
|
|
0.8
|
|
|
|
Digital
|
|
|
|
|
64,424
|
|
|
|
|
54,835
|
|
|
|
|
17.5
|
|
|
|
Corporate
|
|
|
|
|
(17,381
|
)
|
|
|
|
(19,018
|
)
|
|
|
|
(8.6
|
)
|
|
|
Unallocated costs (b)
|
|
|
|
|
-
|
|
|
|
|
(28,210
|
)
|
|
|
|
(100.0
|
)
|
|
|
Total
|
|
|
|
|
$
|
226,594
|
|
|
|
|
$
|
185,689
|
|
|
|
|
22.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization, asset impairment charges and facility
consolidation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
|
|
$
|
20,831
|
|
|
|
|
$
|
21,825
|
|
|
|
|
(4.6
|
)
|
|
|
Digital
|
|
|
|
|
31,480
|
|
|
|
|
41,267
|
|
|
|
|
(23.7
|
)
|
|
|
Corporate
|
|
|
|
|
2,296
|
|
|
|
|
3,184
|
|
|
|
|
(27.9
|
)
|
|
|
Total
|
|
|
|
|
$
|
54,607
|
|
|
|
|
$
|
66,276
|
|
|
|
|
(17.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (a):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
|
|
$
|
207,232
|
|
|
|
|
$
|
199,907
|
|
|
|
|
3.7
|
|
|
|
Digital
|
|
|
|
|
95,904
|
|
|
|
|
97,425
|
|
|
|
|
(1.6
|
)
|
|
|
Corporate
|
|
|
|
|
(15,085
|
)
|
|
|
|
(15,834
|
)
|
|
|
|
(4.7
|
)
|
|
|
Unallocated costs (b)
|
|
|
|
|
-
|
|
|
|
|
(28,210
|
)
|
|
|
|
(100.0
|
)
|
|
|
Total
|
|
|
|
|
$
|
288,051
|
|
|
|
|
$
|
253,288
|
|
|
|
|
13.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
"Adjusted EBITDA" is a non-GAAP measure used by management to
measure, analyze and compare the performance of its business segment
operations at a more detailed level and in a meaningful and
consistent manner. The definition of "Adjusted EBITDA" is provided
in the section "Use of Non-GAAP Information" and Table No. 4
provides reconciliations to the most directly comparable financial
measure calculated and presented in accordance with GAAP on the
company's condensed consolidated statements of income.
|
|
|
|
(b)
|
|
Unallocated costs in 2015 represent certain expenses that
historically were allocated to the former Publishing Segment but
that could not be allocated to discontinued operations because they
were not clearly and specifically identifiable to the spun-off
businesses, the accounting criteria for reclassification to
discontinued operations.
|
|
|
|
|
|
|
BUSINESS SEGMENT INFORMATION
|
|
|
TEGNA Inc.
|
|
|
Unaudited, in thousands of dollars
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table No. 2 (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
Six Months Ended June 28, 2015
|
|
|
|
% Increase (Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
|
|
$
|
902,776
|
|
|
|
|
$
|
813,466
|
|
|
|
|
11.0
|
|
|
|
Digital
|
|
|
|
|
690,741
|
|
|
|
|
674,697
|
|
|
|
|
2.4
|
|
|
|
Total
|
|
|
|
|
$
|
1,593,517
|
|
|
|
|
$
|
1,488,163
|
|
|
|
|
7.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (net of depreciation, amortization, asset impairment
charges and facility consolidation):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
|
|
$
|
348,850
|
|
|
|
|
$
|
354,962
|
|
|
|
|
(1.7
|
)
|
|
|
Digital
|
|
|
|
|
111,643
|
|
|
|
|
103,016
|
|
|
|
|
8.4
|
|
|
|
Corporate
|
|
|
|
|
(31,980
|
)
|
|
|
|
(37,878
|
)
|
|
|
|
(15.6
|
)
|
|
|
Unallocated costs (b)
|
|
|
|
|
-
|
|
|
|
|
(51,939
|
)
|
|
|
|
(100.0
|
)
|
|
|
Total
|
|
|
|
|
$
|
428,513
|
|
|
|
|
$
|
368,161
|
|
|
|
|
16.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization, asset impairment and facility consolidation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
|
|
$
|
40,272
|
|
|
|
|
$
|
43,086
|
|
|
|
|
(6.5
|
)
|
|
|
Digital
|
|
|
|
|
61,841
|
|
|
|
|
74,976
|
|
|
|
|
(17.5
|
)
|
|
|
Corporate
|
|
|
|
|
3,017
|
|
|
|
|
5,905
|
|
|
|
|
(48.9
|
)
|
|
|
Total
|
|
|
|
|
$
|
105,130
|
|
|
|
|
$
|
123,967
|
|
|
|
|
(15.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (a):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
|
|
$
|
406,370
|
|
|
|
|
$
|
385,687
|
|
|
|
|
5.4
|
|
|
|
Digital
|
|
|
|
|
173,484
|
|
|
|
|
180,164
|
|
|
|
|
(3.7
|
)
|
|
|
Corporate
|
|
|
|
|
(28,963
|
)
|
|
|
|
(31,973
|
)
|
|
|
|
(9.4
|
)
|
|
|
Unallocated costs (b)
|
|
|
|
|
-
|
|
|
|
|
(51,939
|
)
|
|
|
|
(100.0
|
)
|
|
|
Total
|
|
|
|
|
$
|
550,891
|
|
|
|
|
$
|
481,939
|
|
|
|
|
14.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
"Adjusted EBITDA" is a non-GAAP measure used by management to
measure, analyze and compare the performance of its business segment
operations at a more detailed level and in a meaningful and
consistent manner. The definition of "Adjusted EBITDA" is provided
in the section "Use of Non-GAAP Information" and Table No. 4
provides reconciliations to the most directly comparable financial
measure calculated and presented in accordance with GAAP on the
company's condensed consolidated statements of income.
|
|
|
|
(b)
|
|
Unallocated costs in 2015 represent certain expenses that
historically were allocated to the former Publishing Segment but
that could not be allocated to discontinued operations because they
were not clearly and specifically identifiable to the spun-off
businesses, the accounting criteria for reclassification to
discontinued operations.
|
|
|
|
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 use the non-GAAP
financial measures for purposes of evaluating business unit and
consolidated company performance. Furthermore, the company's Board of
Director compensation committee 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 discusses in this
report non-GAAP financial performance measures that exclude from its
reported GAAP results the impact of "special items" consisting of
workforce restructuring charges, impairment charges on operating assets
and equity investments, facility consolidation charges, gains related to
a building sale and a business disposal and expenses related to business
acquisitions and the company's spin-off transaction in 2015 recognized
in operating and non-operating categories and a credit to our income tax
provision. The company believes that such expenses, charges and gains
are not indicative of normal, ongoing operations. Such items vary from
period to period and are significantly impacted by the timing and nature
of these events. Therefore, while the company may incur or recognize
these types of expenses, charges and gains in the future, management
believes that removing these items for purposes of calculating the
non-GAAP financial measures provides investors with a more focused
presentation of the underlying ongoing operating performance of the
businesses.
The company also discusses Adjusted EBITDA, 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 from continuing operations attributable to TEGNA before (1) net
income attributable to noncontrolling interests, (2) interest expense,
(3) income taxes, (4) equity income (losses) in unconsolidated
investees, net, (5) other non-operating items such as investment income
and currency gains and losses, (6) workforce restructuring, (7) facility
consolidation charges, (8) impairment charges, (9) depreciation and (10)
amortization. When Adjusted EBITDA is discussed in reference to
performance on a consolidated basis, the most directly comparable GAAP
financial measure is Net income from continuing operations attributable
to TEGNA. Management does not analyze non-operating items such as
interest expense and income taxes on a segment level; therefore, the
most directly comparable GAAP financial measure to Adjusted EBITDA when
performance is discussed on a segment level is Operating income. 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 alternative 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 free cash
flow available for management's discretionary use, as these measures do
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
liquidity measure. Free cash flow is defined as "net cash flow from
operating activities" as reported on the statement of cash flows reduced
by "purchase of property and equipment". The company believes that free
cash flow is a useful measure for management and investors to evaluate
the level of cash generated by operations and the ability of its
operations to fund investments in new and existing businesses, return
cash to shareholders under the company's capital program, repay
indebtedness, add to the company's cash balance, or use in other
discretionary activities. Management uses free cash flow to monitor cash
available for repayment of indebtedness and in its discussions with the
investment community. Like Adjusted EBITDA, free cash flow is not
intended to be a measure of cash flow available for management's
discretionary use.
Tabular reconciliations for all of the non-GAAP financial measures to
its more directly comparable GAAP financial measure are presented in the
following tables.
|
|
|
NON-GAAP FINANCIAL INFORMATION
|
|
|
TEGNA Inc.
|
|
|
Unaudited, in thousands of dollars (except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 condensed
consolidated statements of income follow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Measure
|
|
|
Special Items
|
|
|
Non-GAAP Measure
|
|
|
|
|
|
|
|
Second Quarter Ended June 30, 2016
|
|
|
Workforce restructuring
|
|
|
Operating asset impairment
|
|
|
Equity investment impairment
|
|
|
Other non- operating Items
|
|
|
Second Quarter Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues and operating expenses, exclusive of depreciation
|
|
|
|
|
$
|
255,472
|
|
|
|
$
|
(5,480
|
)
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
249,992
|
|
|
|
Selling general and administrative expenses, exclusive of
depreciation
|
|
|
|
|
275,112
|
|
|
|
(1,370
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
273,742
|
|
|
|
Asset impairment charges and facility consolidation
|
|
|
|
|
3,728
|
|
|
|
-
|
|
|
|
(3,728
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Operating expenses
|
|
|
|
|
585,191
|
|
|
|
(6,850
|
)
|
|
|
(3,728
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
574,613
|
|
|
|
Operating income
|
|
|
|
|
226,594
|
|
|
|
6,850
|
|
|
|
3,728
|
|
|
|
-
|
|
|
|
-
|
|
|
|
237,172
|
|
|
|
Equity loss in unconsolidated investees, net
|
|
|
|
|
(5,914
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
1,869
|
|
|
|
-
|
|
|
|
(4,045
|
)
|
|
|
Other non-operating expense
|
|
|
|
|
(2,548
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,185
|
|
|
|
637
|
|
|
|
Total non-operating expense
|
|
|
|
|
(64,603
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
1,869
|
|
|
|
3,185
|
|
|
|
(59,549
|
)
|
|
|
Income before income taxes
|
|
|
|
|
161,991
|
|
|
|
6,850
|
|
|
|
3,728
|
|
|
|
1,869
|
|
|
|
3,185
|
|
|
|
177,623
|
|
|
|
Provision for income taxes
|
|
|
|
|
47,606
|
|
|
|
2,664
|
|
|
|
1,450
|
|
|
|
727
|
|
|
|
1,077
|
|
|
|
53,524
|
|
|
|
Net income from continuing operations attributable to TEGNA
|
|
|
|
|
99,451
|
|
|
|
4,186
|
|
|
|
2,278
|
|
|
|
1,142
|
|
|
|
2,108
|
|
|
|
109,165
|
|
|
|
Net income from continuing operations per share-diluted
|
|
|
|
|
$
|
0.45
|
|
|
|
$
|
0.02
|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Measure
|
|
|
Special Items
|
|
|
Non-GAAP Measure
|
|
|
|
|
|
|
|
Second Quarter Ended June 28, 2015
|
|
|
Workforce
restructuring
|
|
|
Operating asset impairments
|
|
|
Non-operating items
|
|
|
Special tax credit
|
|
|
Second Quarter Ended June 28, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues and operating expenses, exclusive of depreciation
|
|
|
|
|
$
|
239,910
|
|
|
|
$
|
(1,124
|
)
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
238,786
|
|
|
|
Selling general and administrative expenses, exclusive of
depreciation
|
|
|
|
|
264,797
|
|
|
|
(199
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
264,598
|
|
|
|
Asset impairment charges and facility consolidation
|
|
|
|
|
12,355
|
|
|
|
-
|
|
|
|
(12,355
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Operating expenses
|
|
|
|
|
570,983
|
|
|
|
(1,323
|
)
|
|
|
(12,355
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
557,305
|
|
|
|
Operating income
|
|
|
|
|
185,689
|
|
|
|
1,323
|
|
|
|
12,355
|
|
|
|
-
|
|
|
|
-
|
|
|
|
199,367
|
|
|
|
Other non-operating expense
|
|
|
|
|
(26,695
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
27,133
|
|
|
|
-
|
|
|
|
438
|
|
|
|
Total non-operating expense
|
|
|
|
|
(97,809
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
27,133
|
|
|
|
-
|
|
|
|
(70,676
|
)
|
|
|
Income before income taxes
|
|
|
|
|
87,880
|
|
|
|
1,323
|
|
|
|
12,355
|
|
|
|
27,133
|
|
|
|
-
|
|
|
|
128,691
|
|
|
|
Provision for income taxes
|
|
|
|
|
33,724
|
|
|
|
492
|
|
|
|
4,595
|
|
|
|
10,581
|
|
|
|
(6,702
|
)
|
|
|
42,690
|
|
|
|
Net income from continuing operations attributable to TEGNA
|
|
|
|
|
38,532
|
|
|
|
831
|
|
|
|
7,760
|
|
|
|
16,552
|
|
|
|
6,702
|
|
|
|
70,377
|
|
|
|
Net income from continuing operations per share - diluted
|
|
|
|
|
$
|
0.17
|
|
|
|
$
|
-
|
|
|
|
$
|
0.03
|
|
|
|
$
|
0.07
|
|
|
|
$
|
0.03
|
|
|
|
$
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL INFORMATION
|
|
|
|
|
|
TEGNA Inc.
|
|
|
|
|
|
Unaudited, in thousands of dollars (except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 condensed
consolidated statements of income follow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Measure
|
|
|
Special Items
|
|
|
Non-GAAP
Measure
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
Workforce
restructuring
|
|
|
Operating asset impairment
|
|
|
Non-operating equity investment impairment
|
|
|
Other non- operating items
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues and operating expenses, exclusive of depreciation
|
|
|
|
|
$
|
503,728
|
|
|
|
$
|
(11,515
|
)
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
492,213
|
|
|
|
|
Selling general and administrative expenses, exclusive of
depreciation
|
|
|
|
|
556,146
|
|
|
|
(5,733
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
550,413
|
|
|
|
|
Asset impairment charges and facility consolidation
|
|
|
|
|
3,728
|
|
|
|
-
|
|
|
|
(3,728
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
Operating expenses
|
|
|
|
|
1,165,004
|
|
|
|
(17,248
|
)
|
|
|
(3,728
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
1,144,028
|
|
|
|
|
Operating income
|
|
|
|
|
428,513
|
|
|
|
17,248
|
|
|
|
3,728
|
|
|
|
-
|
|
|
|
-
|
|
|
|
449,489
|
|
|
|
|
Equity loss in unconsolidated investees, net
|
|
|
|
|
(2,981
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
1,869
|
|
|
|
-
|
|
|
|
(1,112
|
)
|
|
|
|
Other non-operating (expense) income
|
|
|
|
|
(169
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,838
|
|
|
|
3,669
|
|
|
|
|
Total non-operating expense
|
|
|
|
|
(121,004
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
1,869
|
|
|
|
3,838
|
|
|
|
(115,297
|
)
|
|
|
|
Income before income taxes
|
|
|
|
|
307,509
|
|
|
|
17,248
|
|
|
|
3,728
|
|
|
|
1,869
|
|
|
|
3,838
|
|
|
|
334,192
|
|
|
|
|
Provision for income taxes
|
|
|
|
|
89,714
|
|
|
|
6,672
|
|
|
|
1,450
|
|
|
|
727
|
|
|
|
1,077
|
|
|
|
99,640
|
|
|
|
|
Net income from continuing operations attributable to TEGNA
|
|
|
|
|
192,369
|
|
|
|
10,576
|
|
|
|
2,278
|
|
|
|
1,142
|
|
|
|
2,761
|
|
|
|
209,126
|
|
|
|
|
Net income from continuing operations per share - diluted (a)
|
|
|
|
|
$
|
0.87
|
|
|
|
$
|
0.05
|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.94
|
|
|
|
|
(a) - Per share amounts do not foot due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Measure
|
|
|
Special Items
|
|
|
Non-GAAP Measure
|
|
|
|
|
|
Six Months Ended June 28, 2015
|
|
|
Workforce
restructuring
|
|
|
Operating asset impairments and facility consolidation
|
|
|
Building sale gain
|
|
|
Non- operating items
|
|
|
Special tax credit
|
|
|
Six Months Ended June 28, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues and operating expenses, exclusive of depreciation
|
|
|
|
|
$
|
466,487
|
|
|
|
$
|
(2,141
|
)
|
|
|
$
|
-
|
|
|
|
$
|
12,709
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
477,055
|
|
Selling general and administrative expenses, exclusive of
depreciation
|
|
|
|
|
529,548
|
|
|
|
(379
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
529,169
|
|
Asset impairment charges and facility consolidation
|
|
|
|
|
17,079
|
|
|
|
-
|
|
|
|
(17,079
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Operating expenses
|
|
|
|
|
1,120,002
|
|
|
|
(2,520
|
)
|
|
|
(17,079
|
)
|
|
|
12,709
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,113,112
|
|
Operating income
|
|
|
|
|
368,161
|
|
|
|
2,520
|
|
|
|
17,079
|
|
|
|
(12,709
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
375,051
|
|
Other non-operating expense
|
|
|
|
|
(2,231
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,453
|
|
|
|
-
|
|
|
|
(778
|
)
|
Total non-operating expense
|
|
|
|
|
(145,264
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,453
|
|
|
|
-
|
|
|
|
(143,811
|
)
|
Income before income taxes
|
|
|
|
|
222,897
|
|
|
|
2,520
|
|
|
|
17,079
|
|
|
|
(12,709
|
)
|
|
|
1,453
|
|
|
|
-
|
|
|
|
231,240
|
|
Provision for income taxes
|
|
|
|
|
84,739
|
|
|
|
937
|
|
|
|
6,352
|
|
|
|
(4,726
|
)
|
|
|
(5,737
|
)
|
|
|
(6,312
|
)
|
|
|
75,253
|
|
Net income from continuing operations attributable to TEGNA
|
|
|
|
|
107,944
|
|
|
|
1,583
|
|
|
|
10,727
|
|
|
|
(7,983
|
)
|
|
|
7,190
|
|
|
|
6,312
|
|
|
|
125,773
|
|
Net income from continuing operations per share - diluted (a)
|
|
|
|
|
$
|
0.47
|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.05
|
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
0.03
|
|
|
|
$
|
0.03
|
|
|
|
$
|
0.54
|
|
(a) - Per share amounts do not foot due to rounding
|
|
NON-GAAP FINANCIAL INFORMATION
TEGNA Inc.
Unaudited, in thousands of dollars
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table No. 4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of Adjusted EBITDA to the most directly comparable
financial measure calculated and presented in accordance with GAAP
on the company's condensed consolidated statements of income
follow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter Ended June 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
|
Digital
|
|
|
|
Corporate
|
|
|
|
Consolidated
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations attributable to TEGNA Inc.
(GAAP basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
99,451
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,934
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47,606
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56,141
|
|
|
|
|
|
|
|
Equity loss in unconsolidated investees, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,914
|
|
|
|
|
|
|
|
Other non-operating expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,548
|
|
|
|
|
|
|
|
Operating income (GAAP basis)
|
|
|
|
|
$
|
|
179,551
|
|
|
|
|
$
|
|
64,424
|
|
|
|
|
$
|
|
(17,381
|
)
|
|
|
|
$
|
|
226,594
|
|
|
|
|
|
|
|
Workforce restructuring
|
|
|
|
|
6,850
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
6,850
|
|
|
|
|
|
|
|
Operating asset impairment
|
|
|
|
|
1,864
|
|
|
|
|
-
|
|
|
|
|
1,864
|
|
|
|
|
3,728
|
|
|
|
|
|
|
|
Adjusted operating income (non-GAAP basis)
|
|
|
|
|
188,265
|
|
|
|
|
64,424
|
|
|
|
|
(15,517
|
)
|
|
|
|
237,172
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
13,520
|
|
|
|
|
8,675
|
|
|
|
|
432
|
|
|
|
|
22,627
|
|
|
|
|
|
|
|
Amortization
|
|
|
|
|
5,447
|
|
|
|
|
22,805
|
|
|
|
|
-
|
|
|
|
|
28,252
|
|
|
|
|
|
|
|
Adjusted EBITDA (non-GAAP basis)
|
|
|
|
|
$
|
|
207,232
|
|
|
|
|
$
|
|
95,904
|
|
|
|
|
$
|
|
(15,085
|
)
|
|
|
|
$
|
|
288,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter Ended June 28, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
|
Digital
|
|
|
|
Corporate
|
|
|
|
Unallocated Costs
|
|
|
|
Consolidated
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations attributable to TEGNA Inc.
(GAAP basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
38,532
|
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,624
|
|
|
Provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,724
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
69,252
|
|
|
Equity loss in unconsolidated investees, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,862
|
|
|
Other non-operating expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26,695
|
|
|
Operating income (GAAP basis)
|
|
|
|
|
$
|
|
178,082
|
|
|
|
|
$
|
|
54,835
|
|
|
|
|
$
|
|
(19,018
|
)
|
|
|
|
$
|
|
(28,210
|
)
|
|
|
|
$
|
185,689
|
|
|
Workforce restructuring
|
|
|
|
|
-
|
|
|
|
|
1,323
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1,323
|
|
|
Asset impairment charges and facility consolidation
|
|
|
|
|
2,705
|
|
|
|
|
9,650
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
12,355
|
|
|
Adjusted operating income (non-GAAP basis)
|
|
|
|
|
180,787
|
|
|
|
|
65,808
|
|
|
|
|
(19,018
|
)
|
|
|
|
(28,210
|
)
|
|
|
|
199,367
|
|
|
Depreciation
|
|
|
|
|
13,244
|
|
|
|
|
8,527
|
|
|
|
|
3,184
|
|
|
|
|
-
|
|
|
|
|
24,955
|
|
|
Amortization
|
|
|
|
|
5,876
|
|
|
|
|
23,090
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
28,966
|
|
|
Adjusted EBITDA (non-GAAP basis)
|
|
|
|
|
$
|
|
199,907
|
|
|
|
|
$
|
|
97,425
|
|
|
|
|
$
|
|
(15,834
|
)
|
|
|
|
$
|
|
(28,210
|
)
|
|
|
|
$
|
253,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL INFORMATION
|
|
|
TEGNA Inc.
|
|
|
Unaudited, in thousands of dollars
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table No. 4 (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of Adjusted EBITDA to the most directly comparable
financial measure calculated and presented in accordance with GAAP
on the company's condensed consolidated statements of income
follow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
|
Digital
|
|
|
|
Corporate
|
|
|
|
Consolidated
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations attributable to TEGNA Inc.
(GAAP basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
192,369
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,426
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
89,714
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
117,854
|
|
|
|
|
|
|
|
Equity loss in unconsolidated investees, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,981
|
|
|
|
|
|
|
|
Other non-operating expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
169
|
|
|
|
|
|
|
|
Operating income (GAAP basis)
|
|
|
|
|
$
|
|
348,850
|
|
|
|
|
$
|
|
111,643
|
|
|
|
|
$
|
|
(31,980
|
)
|
|
|
|
$
|
428,513
|
|
|
|
|
|
|
|
Workforce restructuring
|
|
|
|
|
17,248
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
17,248
|
|
|
|
|
|
|
|
Operating asset impairment
|
|
|
|
|
1,864
|
|
|
|
|
-
|
|
|
|
|
1,864
|
|
|
|
|
3,728
|
|
|
|
|
|
|
|
Adjusted operating income (non-GAAP basis)
|
|
|
|
|
367,962
|
|
|
|
|
111,643
|
|
|
|
|
(30,116
|
)
|
|
|
|
449,489
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
27,268
|
|
|
|
|
16,439
|
|
|
|
|
1,153
|
|
|
|
|
44,860
|
|
|
|
|
|
|
|
Amortization
|
|
|
|
|
11,140
|
|
|
|
|
45,402
|
|
|
|
|
-
|
|
|
|
|
56,542
|
|
|
|
|
|
|
|
Adjusted EBITDA (non-GAAP basis)
|
|
|
|
|
$
|
|
406,370
|
|
|
|
|
$
|
|
173,484
|
|
|
|
|
$
|
|
(28,963
|
)
|
|
|
|
$
|
550,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 28, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
|
|
Digital
|
|
|
|
Corporate
|
|
|
|
Unallocated Costs
|
|
|
|
Consolidated
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations attributable to TEGNA Inc.
(GAAP basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
107,944
|
|
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,214
|
|
|
|
Provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
84,739
|
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
139,922
|
|
|
|
Equity loss in unconsolidated investees, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,111
|
|
|
|
Other non-operating expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,231
|
|
|
|
Operating income (GAAP basis)
|
|
|
|
|
$
|
|
354,962
|
|
|
|
|
$
|
|
103,016
|
|
|
|
|
$
|
|
(37,878
|
)
|
|
|
|
$
|
(51,939
|
)
|
|
|
|
$
|
368,161
|
|
|
|
Workforce restructuring
|
|
|
|
|
348
|
|
|
|
|
2,172
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
2,520
|
|
|
|
Asset impairment charges and facility consolidation
|
|
|
|
|
5,072
|
|
|
|
|
12,007
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
17,079
|
|
|
|
Building sale gain
|
|
|
|
|
(12,709
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(12,709
|
)
|
|
|
Adjusted operating income (non-GAAP basis)
|
|
|
|
|
347,673
|
|
|
|
|
117,195
|
|
|
|
|
(37,878
|
)
|
|
|
|
(51,939
|
)
|
|
|
|
375,051
|
|
|
|
Depreciation
|
|
|
|
|
26,540
|
|
|
|
|
16,789
|
|
|
|
|
5,905
|
|
|
|
|
-
|
|
|
|
|
49,234
|
|
|
|
Amortization
|
|
|
|
|
11,474
|
|
|
|
|
46,180
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
57,654
|
|
|
|
Adjusted EBITDA (non-GAAP basis)
|
|
|
|
|
$
|
|
385,687
|
|
|
|
|
$
|
|
180,164
|
|
|
|
|
$
|
|
(31,973
|
)
|
|
|
|
$
|
(51,939
|
)
|
|
|
|
$
|
481,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Starting in second quarter of 2016,
the company revised the method for computing Adjusted EBITDA to no
longer treat non-cash rent as a reconciling item. The first quarter 2016
number was updated to conform to this new method which resulted in a
$1.6 million reduction to our previously reported first quarter 2016
Adjusted EBITDA. This change did not impact Adjusted EBITDA the six
months ended June 28, 2015.
|
|
|
NON-GAAP FINANCIAL INFORMATION
|
|
|
TEGNA Inc.
|
|
|
Unaudited, in thousands of dollars
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table No. 5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
"Free cash flow" is a non-GAAP liquidity measure used in addition
to and in conjunction with results presented in accordance
with GAAP. Free cash flow should not be relied upon to the exclusion
of similar GAAP financial measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter Ended June 30, 2016
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flow from operating activities
|
|
|
|
|
$
|
102,186
|
|
|
|
|
$
|
229,244
|
|
|
|
Purchase of property, plant and equipment
|
|
|
|
|
(23,601
|
)
|
|
|
|
(40,050
|
)
|
|
|
Free cash flow
|
|
|
|
|
$
|
78,585
|
|
|
|
|
$
|
189,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAX RATE CALCULATION
|
|
|
TEGNA Inc.
|
|
|
Unaudited, in thousands of dollars
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table No. 6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The calculations of the company's effective tax rate on a GAAP and
non-GAAP basis are below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Second Quarter Ended June 30, 2016
|
|
|
|
Second Quarter Ended June 28, 2015
|
|
|
|
Second Quarter Ended June 30, 2016
|
|
|
|
Second Quarter Ended June 28, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes (per Table 3)
|
|
|
|
|
$
|
161,991
|
|
|
|
|
$
|
87,880
|
|
|
|
|
$
|
177,623
|
|
|
|
|
$
|
128,691
|
|
|
|
Noncontrolling interests (per Table 1)
|
|
|
|
|
(14,934
|
)
|
|
|
|
(15,624
|
)
|
|
|
|
(14,934
|
)
|
|
|
|
(15,624
|
)
|
|
|
Income before taxes attributable to TEGNA
|
|
|
|
|
$
|
147,057
|
|
|
|
|
$
|
72,256
|
|
|
|
|
$
|
162,689
|
|
|
|
|
$
|
113,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes (per Table 3)
|
|
|
|
|
$
|
47,606
|
|
|
|
|
$
|
33,724
|
|
|
|
|
$
|
53,524
|
|
|
|
|
$
|
42,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
|
|
32.4
|
%
|
|
|
|
46.7
|
%
|
|
|
|
32.9
|
%
|
|
|
|
37.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
Six Months Ended June 28, 2015
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
Six Months Ended June 28, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes (per Table 3)
|
|
|
|
|
$
|
307,509
|
|
|
|
|
$
|
222,897
|
|
|
|
|
$
|
334,192
|
|
|
|
|
$
|
231,240
|
|
|
|
Noncontrolling interests (per Table 1)
|
|
|
|
|
(25,426
|
)
|
|
|
|
(30,214
|
)
|
|
|
|
(25,426
|
)
|
|
|
|
(30,214
|
)
|
|
|
Income before taxes attributable to TEGNA
|
|
|
|
|
$
|
282,083
|
|
|
|
|
$
|
192,683
|
|
|
|
|
$
|
308,766
|
|
|
|
|
$
|
201,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes (per Table 3)
|
|
|
|
|
$
|
89,714
|
|
|
|
|
$
|
84,739
|
|
|
|
|
$
|
99,640
|
|
|
|
|
$
|
75,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
|
|
31.8
|
%
|
|
|
|
44.0
|
%
|
|
|
|
32.3
|
%
|
|
|
|
37.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160726005862/en/
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