Exceeds third quarter key guidance metrics and reaffirms
full-year 2024 key guidance metrics
Reports record third quarter political revenue
Returns more than $90 million of capital to shareholders, on
track to meet commitment to return approximately $350 million of
capital in 2024
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 $807 million, above our
guidance range, primarily driven by strength in political
advertising and positive growth in advertising and marketing
services (AMS) revenue.
- Political advertising revenue totaled $126 million, a new third
quarter record.
- Full-year political advertising revenue through Election Day
was approximately $375 million.
- Subscription revenue decreased 6% to $356 million, primarily
due to subscriber declines partially offset by contractual rate
increases.
- AMS revenue increased slightly to $313 million 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.
- GAAP operating expenses decreased slightly to $577 million and
non-GAAP operating expenses1 were $566 million, both benefiting
from a reduction of programming fees and our core cost
initiatives.
- GAAP and non-GAAP operating income1 totaled $230 million and
$240 million, respectively.
- GAAP net income attributable to TEGNA Inc. was $147 million and
non-GAAP net income attributable to TEGNA Inc.1 was $157
million.
- GAAP and non-GAAP earnings per diluted share1 were $0.89 and
$0.94, respectively.
- Total company Adjusted EBITDA2 increased 62% to $270 million
primarily due to strength in political advertising and continued
cost benefits from our core cost initiatives.
1 See Table 3 for details
2 See Table 4 for details
“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 $350 million in 2024.
- Adjusted free cash flow was $211 million for the quarter and
$441 million for the first nine months of 2024.
- During the third quarter, the Company returned $91 million of
capital to shareholders, with $70 million in share repurchases,
representing 4.9 million shares, and $21 million in dividends.
- Interest expense in the third quarter fell slightly to $42
million due to decreased undrawn fees on the company’s revolving
credit facility.
- Cash and cash equivalents totaled $536 million at the end of
the third quarter. Net leverage finished the third quarter at
2.8x4.
3 See Table 5 for details
4 See Table 6 for details
FULL-YEAR AND FOURTH QUARTER 2024
OUTLOOK:
Full-Year 2024 Key Guidance
Metrics
TEGNA is reaffirming its guidance metrics
for the full-year of 2024 and improving the effective tax rate
2024/2025 Two-Year Adjusted FCF
$900 million – 1.1 billion
Net Leverage Ratio
Below 3x at year end
Corporate Expenses
$40 – 45 million
Depreciation
$56 – 60 million
Amortization
$51 – 55 million
Interest Expense
$170 – 173 million
Capital Expenditures
$62 – 67 million
Effective Tax Rate
22.0 – 23.0%
Fourth Quarter 2024 Key Guidance
Metrics
Reflects expectations relative to fourth
quarter 2023 results
Total Company GAAP Revenue
Up 19% to 21%
Total Non-GAAP Operating Expenses
Up 1% to 3%
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 U.S. through trustworthy journalism,
engaging content, and tools that help people navigate their daily
lives. Through customized marketing solutions, we help businesses
grow and thrive. With 64 television stations in 51 U.S. markets,
TEGNA reaches approximately 100 million people every month across
the web, mobile apps, streaming, and linear television. For more
information, visit TEGNA.com.
CONSOLIDATED STATEMENTS OF INCOME
TEGNA Inc. Unaudited, in thousands of dollars (except per share
amounts)
Table No. 1
Quarter ended Sept.
30,
2024
2023
Change
Revenues
$
806,827
$
713,243
13
%
Operating expenses:
Cost of revenues
437,855
438,260
0
%
Business units - Selling, general and
administrative expenses
96,882
98,394
(2
%)
Corporate - General and administrative
expenses
13,188
13,552
(3
%)
Depreciation
15,543
15,083
3
%
Amortization of intangible assets
13,467
13,297
1
%
Total
576,935
578,586
0
%
Operating income
229,892
134,657
71
%
Non-operating (expense) income:
Interest expense
(42,288
)
(43,418
)
(3
%)
Interest income
7,023
7,389
(5
%)
Other non-operating items, net
(2,696
)
25,427
***
Total
(37,961
)
(10,602
)
***
Income before income taxes
191,931
124,055
55
%
Provision for income taxes
44,743
27,801
61
%
Net income
147,188
96,254
53
%
Net loss (income) attributable to
redeemable noncontrolling interest
260
(71
)
***
Net income attributable to TEGNA
Inc.
$
147,448
$
96,183
53
%
Earnings per share:
Basic
$
0.89
$
0.48
85
%
Diluted
$
0.89
$
0.48
85
%
Weighted average number of common
shares outstanding:
Basic shares
165,188
200,779
(18
%)
Diluted shares
165,748
201,218
(18
%)
*** Not meaningful
CONSOLIDATED STATEMENTS OF INCOME
TEGNA Inc. Unaudited, in thousands of dollars (except per share
amounts)
Table No. 1 (continued)
Nine months ended Sept.
30,
2024
2023
Change
Revenues
$
2,231,442
$
2,185,076
2
%
Operating expenses:
Cost of revenues
1,300,466
1,295,720
0
%
Business units - Selling, general and
administrative expenses
294,080
294,734
0
%
Corporate - General and administrative
expenses
40,671
52,158
(22
%)
Depreciation
45,026
45,119
0
%
Amortization of intangible assets
40,790
40,175
2
%
Asset impairment and other
1,097
3,359
(67
%)
Merger termination fee
—
(136,000
)
***
Total
1,722,130
1,595,265
8
%
Operating income
509,312
589,811
(14
%)
Non-operating (expense) income:
Interest expense
(126,404
)
(129,121
)
(2
%)
Interest income
18,469
23,498
(21
%)
Other non-operating items, net
144,313
19,990
***
Total
36,378
(85,633
)
***
Income before income taxes
545,690
504,178
8
%
Provision for income taxes
127,211
103,827
23
%
Net income
418,479
400,351
5
%
Net loss attributable to redeemable
noncontrolling interest
673
240
***
Net income attributable to TEGNA
Inc.
$
419,152
$
400,591
5
%
Earnings per share:
Basic
$
2.44
$
1.86
31
%
Diluted
$
2.44
$
1.86
31
%
Weighted average number of common
shares outstanding:
Basic shares
170,820
214,297
(20
%)
Diluted shares
171,334
214,591
(20
%)
*** Not meaningful
REVENUE CATEGORIES TEGNA Inc.
Unaudited, in thousands of dollars
Table No. 2
Below is a detail of our primary sources
of revenue:
Quarter ended Sept.
30,
2024
2023
Change
Subscription
$
356,205
$
377,891
(6%)
Advertising & Marketing Services
312,963
312,413
0%
Political
126,318
11,643
***
Other
11,341
11,296
0%
Total revenues
$
806,827
$
713,243
13%
Nine months ended Sept.
30,
2024
2023
Change
Subscription
$
1,098,554
$
1,188,297
(8%)
Advertising & Marketing Services
912,632
937,984
(3%)
Political
185,789
22,925
***
Other
34,467
35,870
(4%)
Total revenues
$
2,231,442
$
2,185,076
2%
*** Not meaningful
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
$900 million to $1.1 billion remains the same.
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
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 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
TEGNA Inc. Unaudited, in thousands of dollars (except per share
amounts)
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
TEGNA Inc. Unaudited, in thousands of dollars
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
TEGNA Inc. Unaudited, in thousands of dollars
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
TEGNA Inc. Unaudited, in thousands of dollars
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 $771,251 thousand while our stock-based compensation and
company stock 401(k) contribution expenses were $23,625 thousand
and $14,343 thousand, respectively, which sums to the amount shown
above.
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
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