Highlights for the first quarter include the following:
-
GAAP earnings from continuing operations of $0.42 per diluted share.
Non-GAAP earnings from continuing operations of $0.45 per diluted
share, an 88 percent year-over-year increase
-
Total company revenue up 7 percent and over 8 percent on a pro forma
basis driven by strong Media and Digital Segment performances
-
Media Segment revenues 12 percent higher driven by robust growth in
retransmission revenue and record first quarter political advertising
revenue
-
Digital Segment revenues up over 4 percent on a pro forma, constant
currency basis
-
Adjusted EBITDA totaled $264 million, a 16 percent increase
-
Strong free cash flow totaled $111 million
TEGNA Inc. (NYSE: TGNA) today reported non-GAAP earnings per diluted
share from continuing operations of $0.45 for the first quarter of 2016,
an increase of 87.5 percent compared to $0.24 for the first quarter of
2015.
Gracia Martore, president and chief executive officer, said, “We are
pleased to have kicked off 2016 with strong results across our
businesses. Product innovation in the Media Segment contributed to
revenue growth in the quarter and we plan to expand on these efforts as
well as content innovation throughout the year. Additionally, we
achieved a record level of first quarter politically related ad revenue
and are very well positioned for the rest of the election cycle. In our
Digital Segment, higher dealer penetration and new products at Cars.com
contributed meaningfully to company-wide revenue growth of 7 percent.
Martore added, "Continued innovation has made us a more highly-focused,
growth-driven media and digital company as we've made it our goal to be
at the forefront of the evolving content consumption landscape. We
continue to be extraordinarily well positioned for the rest of 2016 and
beyond."
FIRST 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
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Non-GAAP
|
|
|
First Quarter 2016
|
|
First Quarter 2015
|
|
First Quarter 2016
|
|
First Quarter 2015
|
|
|
|
|
|
|
|
|
|
Operating revenue
|
|
$
|
781,732
|
|
$
|
731,491
|
|
$
|
781,732
|
|
$
|
731,491
|
Operating expense
|
|
579,813
|
|
549,019
|
|
569,415
|
|
555,807
|
Operating income
|
|
$
|
201,919
|
|
$
|
182,472
|
|
$
|
212,317
|
|
$
|
175,684
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations attributable to TEGNA
|
|
$
|
92,918
|
|
$
|
69,412
|
|
$
|
99,961
|
|
$
|
55,396
|
|
|
|
|
|
|
|
|
|
See Table 3 for reconciliations between non-GAAP measures and the
most directly comparable GAAP reported numbers.
|
|
Total company GAAP revenues were 6.9 percent higher in the first quarter
compared to the first quarter of 2015. On a pro forma basis, which
adjusts for the impact of a business sold last year, company revenues
were up 8.3 percent. Media Segment revenues rose 12.0 percent driven by
substantially higher retransmission and political revenue. Digital
Segment revenues were 4.1 percent higher on a pro forma, constant
currency basis.
First quarter non-GAAP operating expenses rose 2.4 percent as an
increase in Media Segment expenses offset a significant decline in
corporate expenses and the absence of publishing-related unallocated
costs. Corporate expenses totaled $14.6 million compared to $18.9
million in the first quarter of 2015, a decline of 22.6 percent driven
by continued efficiency efforts and re-sizing of our support platforms.
Corporate expenses include $1.7 million of non-cash rent expense.
Operating income on a non-GAAP basis was 20.9 percent higher compared to
the first quarter in 2015. Adjusted EBITDA (a non-GAAP term detailed in
Table 4) totaled $264.5 million, an increase of 15.7 percent. The
Adjusted EBITDA margin in the first quarter was 33.8 percent, an
improvement of 2.6 percentage points compared to the same quarter last
year.
Special items in the first quarter of 2016 unfavorably impacted GAAP
results by $0.03 per share due primarily to charges related to a
voluntary early retirement program. (Refer to Table 3 for a
reconciliation of results on a GAAP and non-GAAP basis).
FIRST QUARTER
TEGNA MEDIA
Media Segment revenues were 12.0 percent higher driven by double-digit
increases in retransmission revenues and online revenues and bolstered
by $15.7 million of political advertising. Politically related
advertising in the first quarter was 151 percent over the first quarter
of 2012, the last Presidential election year, and 50 percent above 2014.
The Super Bowl moved from our 17 NBC stations in 2015 to our 11 CBS
stations in 2016 or 6 fewer of our stations in 2016. Excluding the
impact of the Super Bowl, core advertising was up slightly.
The following table summarizes the year-over-year changes in select
Media Segment revenue categories.
|
Media Segment Revenue Detail
|
(Dollars in thousands)
|
|
|
First Quarter 2016
|
|
Percentage change
from First Quarter 2015
|
|
|
|
Core (Local & National)
|
|
$
|
249,021
|
|
(1.6
|
%)
|
Political
|
|
15,744
|
|
666.7
|
%
|
Retransmission (a)
|
|
146,812
|
|
33.2
|
%
|
Online
|
|
27,718
|
|
16.4
|
%
|
Other
|
|
4,534
|
|
(37.5
|
%)
|
Total
|
|
$
|
443,829
|
|
12.0
|
%
|
|
|
|
|
|
(a) Reverse compensation to networks is included as part of
programming costs.
|
|
Media Segment non-GAAP operating expenses totaled $264.1 million
compared to $229.5 million in the first quarter a year ago. The increase
was due to higher programming fees and investments in growth
initiatives. Operating income on the same basis was up 7.7 percent and
totaled $179.7 million while Adjusted EBITDA was $199.1 million.
Based on current trends, we expect increases in retransmission revenue,
political advertising and digital revenue to result in Media Segment
revenue growth of 10 percent to 12 percent for the second quarter of
2016, compared to the second quarter of 2015. However, revenue growth
will, in part, be dependent on the timing of political spending in the
second quarter.
FIRST QUARTER
TEGNA DIGITAL
The following table reconciles Digital Segment revenues reported on a
GAAP basis to revenues presented on a pro forma, constant currency basis
(a non-GAAP measure).
|
|
|
(Dollars in thousands)
|
|
First Quarter
|
|
|
2016
|
|
2015
|
|
Percentage Change
|
Digital Segment Revenue
|
|
|
|
|
|
|
Reported (GAAP Measure)
|
|
$
|
337,903
|
|
$
|
335,074
|
|
|
0.8%
|
Adjust for business sold
|
|
|
|
(9,561
|
)
|
|
|
Constant currency impact
|
|
132
|
|
(659
|
)
|
|
|
Total adjusted pro-forma revenue
|
|
$
|
338,035
|
|
$
|
324,854
|
|
|
4.1%
|
|
|
|
|
|
|
|
|
|
|
The revenue increase in the Digital Segment was driven by continued
growth at Cars.com offset, in part, by revenue declines at CareerBuilder
and the impact of the sale of our PointRoll business. On a pro forma,
constant currency basis, Digital Segment revenues were 4.1 percent
higher.
Cars.com revenues sold directly by the company were up 9.4 percent.
Including the impact of affiliate revenue performance, revenues were 5.9
percent higher. The increase in direct sales was driven primarily by
dealer market penetration and new product sales.
CareerBuilder revenue was 2.3 percent lower in the first quarter, a
sequential improvement from a 5.1 percent decline in the fourth quarter
of 2015. CareerBuilder results continued to be impacted by the
transition to a greater concentration of SaaS products and away from
lower margin, transaction-based businesses. On a constant currency
basis, CareerBuilder revenue was 1.8 percent lower.
Non-GAAP expenses in the Digital Segment were $290.7 million in the
quarter, an increase of 2.5 percent, reflecting primarily accelerating
investments in sales force and growth initiatives.
Digital Segment operating income was $47.2 million. Adjusted EBITDA
totaled $77.6 million resulting in an Adjusted EBITDA margin of
23.0 percent.
FIRST QUARTER
NON-OPERATING AND
CASH FLOW ITEMS
Interest expense totaled $61.7 million in the quarter, a decline of $9.0
million from $70.7 million in the first quarter of 2015 due to lower
average debt outstanding and a lower average interest rate.
The decline in reported other non-operating items reflects primarily a
gain on the sale of a business in the first quarter of 2015. Other
non-operating items on a non-GAAP basis in the first quarter totaled
$3.0 million of income compared to an expense of $1.2 million in the
first quarter of 2015.
In the first quarter, the company implemented the early adoption of a
new accounting standard that changes certain aspects of the accounting
for employee share-based payments. As a result, all excess tax benefits
and tax deduction shortfalls will now be recognized as income tax
expense or benefit in the income statement. The adoption of this
accounting standard increased diluted earnings per share by $0.02,
reduced the first quarter income tax provision by $4 million and reduced
the tax rate by 3 percentage points.
Cash flow from operating activities for the first quarter was $127.1
million. Free cash flow (a non-GAAP measure) totaled $110.6 million for
the quarter. Long-term debt outstanding was $4.2 billion and total cash
was $79.2 million at the end of the quarter. During the first quarter,
we repurchased approximately 3.2 million shares of our outstanding stock
for $75.4 million and paid dividends of $30.8 million, returning $106
million to our shareholders.
* * * *
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 1-866-598-9340
and international callers should dial 1-480-293-0667 at least 10 minutes
prior to the scheduled start of the call. The confirmation code for the
conference call is 3629345. A replay of the conference call will be
available from Wednesday, April 27 at 2 p.m. (ET) to Wednesday, May 11
at 2 p.m. (ET). To access the replay, go to https://jsp.premiereglobal.com/webrsvp/
or Investors.TEGNA.com.
The confirmation code for the replay is 3629345. Materials related to
the call will be available through the Investor Relations section of the
company's website Wednesday morning.
About TEGNA
TEGNA Inc. (NYSE: TGNA), formerly Gannett Co., Inc., 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.
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
Continuing Operations
|
TEGNA Inc.
|
Unaudited, in thousands (except per share amounts)
|
|
|
|
|
|
|
|
Table No. 1
|
|
|
|
|
|
|
|
|
First Quarter 2016
|
|
First Quarter 2015
|
|
% Increase (Decrease)
|
|
|
|
|
|
|
|
Operating revenues:
|
|
|
|
|
|
|
Media
|
|
$
|
443,829
|
|
|
$
|
396,417
|
|
|
12.0
|
|
Digital
|
|
337,903
|
|
|
335,074
|
|
|
0.8
|
|
Total
|
|
781,732
|
|
|
731,491
|
|
|
6.9
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
Cost of revenues and operating expenses, exclusive of depreciation
|
|
248,256
|
|
|
226,577
|
|
|
9.6
|
|
Selling, general and administrative expenses, exclusive of
depreciation
|
|
281,034
|
|
|
264,751
|
|
|
6.2
|
|
Depreciation
|
|
22,233
|
|
|
24,279
|
|
|
(8.4
|
)
|
Amortization of intangible assets
|
|
28,290
|
|
|
28,688
|
|
|
(1.4
|
)
|
Facility consolidation
|
|
—
|
|
|
4,724
|
|
|
(100.0
|
)
|
Total
|
|
579,813
|
|
|
549,019
|
|
|
5.6
|
|
Operating income
|
|
201,919
|
|
|
182,472
|
|
|
10.7
|
|
|
|
|
|
|
|
|
Non-operating (expense) income:
|
|
|
|
|
|
|
Equity income (loss) in unconsolidated investees, net
|
|
2,933
|
|
|
(1,249
|
)
|
|
****
|
Interest expense
|
|
(61,713
|
)
|
|
(70,670
|
)
|
|
(12.7
|
)
|
Other non-operating items
|
|
2,379
|
|
|
24,464
|
|
|
(90.3
|
)
|
Total
|
|
(56,401
|
)
|
|
(47,455
|
)
|
|
18.9
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
145,518
|
|
|
135,017
|
|
|
7.8
|
|
Provision for income taxes
|
|
42,108
|
|
|
51,015
|
|
|
(17.5
|
)
|
Income from continuing operations
|
|
103,410
|
|
|
84,002
|
|
|
23.1
|
|
Net income attributable to noncontrolling interests
|
|
(10,492
|
)
|
|
(14,590
|
)
|
|
(28.1
|
)
|
Net income from continuing operations attributable to TEGNA
Inc.
|
|
$
|
92,918
|
|
|
$
|
69,412
|
|
|
33.9
|
|
|
|
|
|
|
|
|
Earnings from continuing operations per share:
|
|
|
|
|
|
|
Basic
|
|
$
|
0.42
|
|
|
$
|
0.31
|
|
|
35.5
|
|
Diluted
|
|
$
|
0.42
|
|
|
$
|
0.30
|
|
|
40.0
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
219,286
|
|
|
227,089
|
|
|
(3.4
|
)
|
Diluted
|
|
223,254
|
|
|
231,931
|
|
|
(3.7
|
)
|
|
|
|
|
|
|
|
Dividends declared per share
|
|
$
|
0.14
|
|
|
$
|
0.20
|
|
|
(30.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUSINESS SEGMENT INFORMATION
|
TEGNA Inc.
|
Unaudited, in thousands of dollars
|
|
|
|
|
|
|
|
Table No. 2
|
|
|
|
|
|
|
|
|
First Quarter 2016
|
|
First Quarter 2015
|
|
% Increase
(Decrease)
|
|
|
|
|
|
|
|
Operating revenues:
|
|
|
|
|
|
|
Media
|
|
$
|
443,829
|
|
|
$
|
396,417
|
|
|
12.0
|
|
Digital
|
|
337,903
|
|
|
335,074
|
|
|
0.8
|
|
Total
|
|
$
|
781,732
|
|
|
$
|
731,491
|
|
|
6.9
|
|
|
|
|
|
|
|
|
Operating income (net of depreciation, amortization and facility
consolidation and asset impairment charges):
|
|
|
|
|
|
|
Media
|
|
$
|
169,299
|
|
|
$
|
176,880
|
|
|
(4.3
|
)
|
Digital
|
|
47,219
|
|
|
48,181
|
|
|
(2.0
|
)
|
Corporate
|
|
(14,599
|
)
|
|
(18,860
|
)
|
|
(22.6
|
)
|
Unallocated costs (b)
|
|
—
|
|
|
(23,729
|
)
|
|
(100.0
|
)
|
Total
|
|
$
|
201,919
|
|
|
$
|
182,472
|
|
|
10.7
|
|
|
|
|
|
|
|
|
Depreciation, amortization and facility consolidation:
|
|
|
|
|
|
|
Media
|
|
$
|
19,441
|
|
|
$
|
21,261
|
|
|
(8.6
|
)
|
Digital
|
|
30,361
|
|
|
33,709
|
|
|
(9.9
|
)
|
Corporate
|
|
721
|
|
|
2,721
|
|
|
(73.5
|
)
|
Total
|
|
$
|
50,523
|
|
|
$
|
57,691
|
|
|
(12.4
|
)
|
|
|
|
|
|
|
|
Adjusted EBITDA (a):
|
|
|
|
|
|
|
Media
|
|
$
|
199,138
|
|
|
$
|
185,780
|
|
|
7.2
|
|
Digital
|
|
77,580
|
|
|
82,739
|
|
|
(6.2
|
)
|
Corporate
|
|
(12,228
|
)
|
|
(16,139
|
)
|
|
(24.2
|
)
|
Unallocated costs (b)
|
|
—
|
|
|
(23,729
|
)
|
|
(100.0
|
)
|
Total
|
|
$
|
264,490
|
|
|
$
|
228,651
|
|
|
15.7
|
|
|
|
|
|
|
|
|
(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 expenses 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, and should be read
together with financial information presented on a GAAP basis.
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, facility
consolidation charges, certain gains and expenses 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 and their inclusion in
results makes for more difficult comparisons between years.
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. Adjusted EBITDA is defined as net income
from continuing operations attributable to TEGNA before (1) net income
attributable to noncontrolling interests, (2) income taxes, (3) interest
expense, (4) equity income (losses), (5) other non-operating items, (6)
workforce restructuring, (7) facility consolidation charges, (8)
depreciation and (9) 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. This earnings report 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, plant 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.
Management uses non-GAAP financial performance measures for purposes of
evaluating business unit and consolidated company performance. The
company, therefore, believes that each of the non-GAAP measures
presented provides useful information to investors by allowing them to
view our businesses through the eyes of management and the Board of
Directors, facilitating comparison of results across historical periods
and providing a focus on the underlying ongoing operating performance of
its businesses. Tabular reconciliations for the non-GAAP financial
measures are contained in Tables 3 through 6 attached to this news
release.
|
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
|
|
|
|
|
|
|
|
|
First Quarter 2016
|
|
Primarily workforce
restructuring
|
|
Non- operating items
|
|
First Quarter 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues and operating expenses, exclusive of depreciation
|
|
$
|
248,256
|
|
|
$
|
(6,035
|
)
|
|
$
|
—
|
|
|
$
|
242,221
|
|
|
|
|
|
|
|
Selling general and administrative expenses, exclusive of
depreciation
|
|
281,034
|
|
|
(4,363
|
)
|
|
—
|
|
|
276,671
|
|
|
|
|
|
|
|
Operating expenses
|
|
579,813
|
|
|
(10,398
|
)
|
|
—
|
|
|
569,415
|
|
|
|
|
|
|
|
Operating income
|
|
201,919
|
|
|
10,398
|
|
|
—
|
|
|
212,317
|
|
|
|
|
|
|
|
Other non-operating items
|
|
2,379
|
|
|
—
|
|
|
653
|
|
|
3,032
|
|
|
|
|
|
|
|
Total non-op (expense) income
|
|
(56,401
|
)
|
|
—
|
|
|
653
|
|
|
(55,748
|
)
|
|
|
|
|
|
|
Income before income taxes
|
|
145,518
|
|
|
10,398
|
|
|
653
|
|
|
156,569
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
42,108
|
|
|
4,008
|
|
|
—
|
|
|
46,116
|
|
|
|
|
|
|
|
Net income from continuing operations attributable to TEGNA
|
|
92,918
|
|
|
6,390
|
|
|
653
|
|
|
99,961
|
|
|
|
|
|
|
|
Net income from continuing operations per share-diluted
|
|
$
|
0.42
|
|
|
$
|
0.03
|
|
|
$
|
—
|
|
|
$
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Measure
|
|
Special Items
|
|
Non- GAAP Measure
|
|
|
First Quarter 2015
|
|
Workforce
restructuring
|
|
Facility consolidation
|
|
Building sale gain
|
|
Non- operating items
|
|
Special tax credit
|
|
First Quarter 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues and operating expenses, exclusive of depreciation
|
|
$
|
226,577
|
|
|
$
|
(1,017
|
)
|
|
$
|
—
|
|
|
$
|
12,709
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
238,269
|
|
Selling general and administrative expenses, exclusive of
depreciation
|
|
264,751
|
|
|
(180
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
264,571
|
|
Facility consolidation
|
|
4,724
|
|
|
—
|
|
|
(4,724
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Operating expenses
|
|
549,019
|
|
|
(1,197
|
)
|
|
(4,724
|
)
|
|
12,709
|
|
|
—
|
|
|
—
|
|
|
555,807
|
|
Operating income
|
|
182,472
|
|
|
1,197
|
|
|
4,724
|
|
|
(12,709
|
)
|
|
—
|
|
|
—
|
|
|
175,684
|
|
Other non-operating items
|
|
24,464
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,680
|
)
|
|
—
|
|
|
(1,216
|
)
|
Total non-op (expense) income
|
|
(47,455
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,680
|
)
|
|
—
|
|
|
(73,135
|
)
|
Income before income taxes
|
|
135,017
|
|
|
1,197
|
|
|
4,724
|
|
|
(12,709
|
)
|
|
(25,680
|
)
|
|
—
|
|
|
102,549
|
|
Provision for income taxes
|
|
51,015
|
|
|
445
|
|
|
1,757
|
|
|
(4,726
|
)
|
|
(16,318
|
)
|
|
390
|
|
|
32,563
|
|
Net income from continuing operations attributable to TEGNA
|
|
69,412
|
|
|
752
|
|
|
2,967
|
|
|
(7,983
|
)
|
|
(9,362
|
)
|
|
(390
|
)
|
|
55,396
|
|
Net income from continuing operations per share - diluted
|
|
$
|
0.30
|
|
|
$
|
—
|
|
|
$
|
0.01
|
|
|
$
|
(0.03
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
—
|
|
|
$
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
Digital
|
|
Corporate
|
|
Consolidated
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations attributable to TEGNA Inc.
(GAAP basis)
|
|
|
|
|
|
|
|
$
|
92,918
|
|
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
|
10,492
|
|
|
|
Provision for income taxes
|
|
|
|
|
|
|
|
42,108
|
|
|
|
Interest expense
|
|
|
|
|
|
|
|
61,713
|
|
|
|
Equity (income) in unconsolidated investees, net
|
|
|
|
|
|
|
|
(2,933
|
)
|
|
|
Other non-operating (income) items, net
|
|
|
|
|
|
|
|
(2,379
|
)
|
|
|
Operating income (GAAP basis)
|
|
$
|
169,299
|
|
|
$
|
47,219
|
|
|
$
|
(14,599
|
)
|
|
$
|
201,919
|
|
|
|
Primarily workforce restructuring
|
|
10,398
|
|
|
—
|
|
|
—
|
|
|
10,398
|
|
|
|
Adjusted operating income (non-GAAP basis)
|
|
179,697
|
|
|
47,219
|
|
|
(14,599
|
)
|
|
212,317
|
|
|
|
Depreciation
|
|
13,748
|
|
|
7,764
|
|
|
721
|
|
|
22,233
|
|
|
|
Amortization
|
|
5,693
|
|
|
22,597
|
|
|
—
|
|
|
28,290
|
|
|
|
Non-cash rent
|
|
—
|
|
|
—
|
|
|
1,650
|
|
|
1,650
|
|
|
|
Adjusted EBITDA (non-GAAP basis)
|
|
$
|
199,138
|
|
|
$
|
77,580
|
|
|
$
|
(12,228
|
)
|
|
$
|
264,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
Media
|
|
Digital
|
|
Corporate
|
|
Unallocated Costs
|
|
Consolidated
Total
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations attributable to TEGNA Inc.
(GAAP basis)
|
|
|
|
|
|
|
|
|
|
$
|
69,412
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
14,590
|
|
Provision for income taxes
|
|
|
|
|
|
|
|
|
|
51,015
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
70,670
|
|
Equity loss in unconsolidated investees, net
|
|
|
|
|
|
|
|
|
|
1,249
|
|
Other non-operating items
|
|
|
|
|
|
|
|
|
|
(24,464
|
)
|
Operating income (GAAP basis)
|
|
$
|
176,880
|
|
|
$
|
48,181
|
|
|
$
|
(18,860
|
)
|
|
$
|
(23,729
|
)
|
|
$
|
182,472
|
|
Workforce restructuring
|
|
348
|
|
|
849
|
|
|
—
|
|
|
—
|
|
|
1,197
|
|
Facility consolidation
|
|
2,367
|
|
|
2,357
|
|
|
—
|
|
|
—
|
|
|
4,724
|
|
Building sale gain
|
|
(12,709
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,709
|
)
|
Adjusted operating income (non-GAAP basis)
|
|
166,886
|
|
|
51,387
|
|
|
(18,860
|
)
|
|
(23,729
|
)
|
|
175,684
|
|
Depreciation
|
|
13,296
|
|
|
8,262
|
|
|
2,721
|
|
|
—
|
|
|
24,279
|
|
Amortization
|
|
5,598
|
|
|
23,090
|
|
|
—
|
|
|
—
|
|
|
28,688
|
|
Adjusted EBITDA (non-GAAP basis)
|
|
$
|
185,780
|
|
|
$
|
82,739
|
|
|
$
|
(16,139
|
)
|
|
$
|
(23,729
|
)
|
|
$
|
228,651
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 GAAP
financial measures.
|
|
|
|
|
|
|
First Quarter 2016
|
|
|
|
Net cash flow from operating activities
|
|
$
|
127.1
|
|
Purchase of property, plant and equipment
|
|
(16.5
|
)
|
Free cash flow
|
|
$
|
110.6
|
|
|
|
|
|
|
|
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
|
|
|
First Quarter 2016
|
|
First Quarter 2015
|
|
First Quarter 2016
|
|
First Quarter 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes (per Table 3)
|
|
$
|
145,518
|
|
|
$
|
135,017
|
|
|
$
|
156,569
|
|
|
$
|
102,549
|
|
Noncontrolling interests (per Table 1)
|
|
(10,492
|
)
|
|
(14,590
|
)
|
|
(10,492
|
)
|
|
(14,590
|
)
|
Income before taxes attributable to TEGNA
|
|
$
|
135,026
|
|
|
$
|
120,427
|
|
|
$
|
146,077
|
|
|
$
|
87,959
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes (per Table 3)
|
|
$
|
42,108
|
|
|
$
|
51,015
|
|
|
$
|
46,116
|
|
|
$
|
32,563
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
31.2
|
%
|
|
42.4
|
%
|
|
31.6
|
%
|
|
37.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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