TEGNA (TGNA) 6 Aug 192019 Q2 Earnings call transcript

Good day everyone and welcome to the TEGNA Second Quarter 2019 Earnings Call. This call is being recorded.

Our speakers for today will be Dave Lougee, President and Chief Executive Officer; and Victoria Harker, Chief Financial Officer.

At this time, I would like to turn the call over to John Janedis, Senior Vice President of Capital Markets and Investor Relations. Please go ahead, sir.

Abany. you, Thank welcome webcast. and second earnings quarter Good to and call morning our Today, and Dave Harker, CEO, our and President Lougee TEGNA's performance will financial our and results. review Victoria CFO,

questions. open the to we'll this release. press morning's had that, After review call for the Hopefully, up opportunity you've

If you copy seen yet of available it's release, have tegna.com. not at a the

includes filings. This most non-GAAP presentation in on our provided cause We've reconciliations GAAP and that Relations them comparable Factors those and also webcast call Before started, the the we certain to conference differ. outlined Investor financial are I'd get release differ may and of forward-looking to like the our measures. measures statements in this press measures that results of to may remind you SEC actual includes portion directly our website.

With turn that, to Dave. over call let the me

good John and Thank morning, you, everyone.

in saw guidance all you quarter with our morning, strong, in As with was finishing key released performance quarter. earnings metrics announced last line our second of this operating we the

capital as Our provide acquisition dominant we and our and Dispatch us visibility high of durability degree and which on strength stations, strategy, the discuss Broadcast the cash to business execute our to detail I'll flow M&A later. streams. future continues continue exhibited with And more by a subscription Group’s allocation of of in

platforms. value long-term serving acquire, solutions bringing content by and multiple shareholders to marketing, innovative TEGNA's to our advertising committed presence our leading expanding we and for in the through advertising expertise remain stations creating strong across We customers marketing markets operational political

with we guidance year-over-year, revenue quarter. was provided and of reported low-single second the in million, $XXX company growth For up TEGNA's last digit total X% the line quarter

year. was than the last services, driven by advertising Our more million in increase a and subscription revenue compared $XX reduction with offsets revenue, political which marketing in XX% advertising growth primarily

quarter, we improve to the and agreement and front, up WTHR As our June M&A services on X% radio Group and announced revenues Victoria year to marketing leading Dispatch second underlying NBC and We've sports premier Broadcast with on advertisers also several with an broadening stations Ohio's later, quarter and XXth. across demand an continue sequentially, CBS affiliate WBNS categories. will active stations discuss acquire from in advertising had

the markets. XX big operate reaching in have built or When these acquisitions XX% of With addition in stations further brands U.S. our will TEGNA stations, top are and out Nexstar of markets affiliates households. we of the portfolio and four leading completed, Dispatch own XX all

announced that the of previously the viewers. Network air unique multicast not and programming we XX% provide country television an of the supported number Through serve previously and homes of Justice across this the over on increasing of acquisition closed acquisition, approximately ad we millions networks Quest Also, we to had owned.

Now, revenue I'm is subscription turn step ongoing which to continues flow, It cash growing provide rate business. going supported to and and both existing to with increases agreements in renewals. ups predictable us our and by

majority the enter our renewal. are subscribers We for enthusiastic a period particularly to up vast which are in of

renegotiated of be fourth this the between and will year next and quarter our Specifically, end XX% repriced subs of the year. of

the well. on as now that retran visibility clear And into the we side net other have equation, of

agreements in recently long-term the agreement we announced XX% households. have XXXX, of CBS With now covering through affiliation our place nearly

political. now to Turning

key our position strengthen to strategic foothold and our states. We year's through for battleground next in continue strong presidential acquisitions, elections

homes one Columbus added Iowa, Nexstar-Tribune states Indianapolis cover with of presidential in both all stations Pennsylvania where in thirds will acquisition stations of rated provides stations Ohio, following the in And Dispatch and in battleground TV stations dominant stations two XX markets, announced divestiture the the Ohio. stations and two big including Our eight obviously. we close each number TEGNA us of

in those make reminder, many subscription including benefit very these still political year. we Our as the cycle expected will next and states expect percentage dynamic shareholder increasing any market. our levels stations are I battleground allow an with revenues us And expenditures from to XXXX revenues half a of two to thereafter. cyclical in primed A discussed portfolio to up the beginning and regardless year of the approximately record drive of variability spot strong value advertising just of that total

initiatives share to and like the our program I'd Now, on quarter. in content updates strategic second some

success projects, which and leverage IP for that of programs audience innovation is news tailor a VAULT and vast True as These award As TEGNA's the part like last our investigated new archives on ongoing we true exclusive wide Bardstown prime released made Chronicles across and real are commitment of all podcast fans, crime cases Crime the group. podcast life built BOMBER of building content our large quarter, our diverse winning to or library to on the studios announced reporters refer two our by of it, and markets. to I of

blast Our socially daily platforms. growth strong and Live across live continues to digital show traditional experience both audience driven

posted Facebook main suites views. and in a video the show women XX% XX% XX-XX For growth the growth in

commitment history. to remain we of dedicated differentiator R. more front, continue with our TEGNA also And is earn Edward Murrow to the than in this most XX any to a On Awards, nationwide R. we Edward TEGNA journalism. its in Awards for maintain in This recognition National true Excellence excellence our XX Local received to Murrow other journalism stations the receiving key Journalism, business. group. testament Regional

the been it than clearly greater commitment journalism the of would important Our has more is democracy I purpose serve. and our we local never passionate good to the serving that Amendment And today. our stated communities First is to argue

emerging commitment to in trends to have opportunities to innovate, content We TV And of investments and monetizable will to have advantage take seek on quality high and positioned these ongoing continue capitalize our us consumer behavior. trends. to

nationwide. look we new to are all have audiences portfolio, delivered these for to augment with shareholders ways customers to continue pleased we and our While of initiatives strategic which reaches our to-date,

our house of sales creation of last as be I sales from a that part change market to our organization will new highlight week, beginning like unified strategy. sales the announcement align national Finally, go our month. and in-house next to transformation, efforts single national with force to better sales go This will we our -- taking would in

embrace automation sales business the we develop for As free talented results our more and is that and to of force our more national commoditized, solutions clients. up

or continuation the markets. market our advertising accretive result, added five billion as the In initiatives this we've of the I'm of through of the are the nearly improvement very transformation XXXX. a to half because our pleased combination quarter flow. X.X half first with sales share improved through closing, to demand announced the the of on the Two, we've acquisitions in quarter immediately also categories due of has first also gains One, outlook and top year, our and due market content that several cash of positive third closed are and increased free is a Three, political battleground to working. during accomplishments for

hit spoke the guidance. XX% our of I multiple are to have now financial early increased visibility retrans on All content across leveraging paid net by have archived renewals track beyond, nearly ahead the out our own we subs XXXX of agreement cycle, stages earlier. going and agreements and remaining Four, platforms. five, are returns leverage large covering to to XXXX and we four CBS our renewing big of our And in through on

Victoria? pass to the our now details. to call over in financials Victoria cover I’ll more

Thanks, Dave. Good morning, us. everyone. for joining And thanks

both as we organic executed well as planned allocation As growth my the on well this as In you we're excited capital quarter impacts cover update initiatives mentioned, of Dave on have going about forward. remarks, as I'll all expected of M&A. our the

of special you, on a had quarter. acquisition a which cover But review consolidated million for small the I like in our to for by include items results, $X These before related million fees $X million, spectrum I'd impact offset severance reimbursements financial and partially repacking. $X just in just cost few

included items Quest, write-up primarily million, by our gain $X in income remainder. the previous of of investment Non-operating Network an acquisition Justice to related our and the triggered of the

$XX providing financial Also, trends consolidated results. trend, comparatives in you'll a year that reminder, this face tough as comparison, to on of performance our Keep financial a results. due are odd non-GAAP last operational year-over-year all TEGNA’s do most into basis, in mind, on with insight business Now of second advertising political focused on year, to you reported a comments my our million quarter the period to revenue and today find press data drivers, quarter results of release. clear event cyclical prior our common a and our

second results. with for our up company in Now revenue on year-over-year digits guidance. low-single reported quarter Total for line right was revenue the X% basis a

well When quarter. prior primarily driven which was from X% total during up seen line revenue, you’ve the impact excluding million press our As grew with by in political our this fully year-over-year, was revenue $XX subscription advertising release, guidance.

our to us forecasting trends These high cash which growth is flows, margin visibility. annuity allow This like produce which result of a subscriber clear continue be direct subs stable.

As for and a year. XXXX are growth confident of revenue mid-teens in result, to the in continue another we growth year healthy expect guidance our

Now turning to advertising and marketing services.

This XXXX and a well revenue year-over-year. marketing advertising reflects X% solid services strong TV expected, growth over accompanied Premion. by marks first as by improvement underlying trends As as advertising sequential quarter increased which year-over-year,

and professional quarter, media To this provide quarter Other education. by in the and and packaged sectors. on vary reflecting those such banking, in auto categories lower performance goods, sector stronger which as trends telecom, advertising category trends, restaurants utilities color specific the some further included always, as quarter services, were

This expected, driven programming business at streamlining end Moving primarily offset operating by X% our ongoing now our guidance. partially higher of this to by digits low the was processes. expenses, as expenses increase were higher quarter of fees, mid-single our our

costs, networks. reminder, As line slightly with paid compensation fees programming down expenses include excluding our a were guidance. When reverse programming in also to these

efforts the of was second $X $XX down quarter overall. reduce the last corporate During our the business successful million to managing expense year, million, reflecting from cost

margin. expenses EBITDA excluding a million, XX% As a result, was producing solid $XXX corporate adjusted

in second projections of the flow, revenue cash revenue. we year million XX% previously XX% $XX range our quarter, During two roughly guidance of of in of to incorporated with generated line XX% free

approximately during by $X a due X quarter leverage Network million Justice fund acquisitions, $XX on net producing of primarily Our the times. to to the and to debt withdraw revolver billion, increased Quest

well in our our line products to and and initiatives we billion flow of cash discussed, as to continue previously use free as acquisitions. invest new $X.X As credit fund to both revolving

the we XXXX its debt proceeds rates. we fall, to replenish to some will of with this used extend existing low year historically change to one also Later be maturities no to some which then of to of refinance taking expect advantage size. revolver, interest plan drawn The our

to turning Now M&A.

-- we've stations and or TV earlier Group reflected year stations M&A year for on noted, very Dispatch million Dave the of the dominant quarter. two been front two Broadcast this acquisition this earlier As radio active $XXX announced this from

the addition, Networks Justice acquisition Quest In closed $XX this also quarter. and million of

As TV a Dispatch us Columbus. the provides rated reminder, and stations in transaction Indianapolis one the number with both

times XXXX-XX run EBITDA including synergies. For rate of X.X multiple

very expect all the facility. of follow our with quarter. cash available transaction Nexstar with later expected close We shortly, borrowing divestiture We to the three the and use to transactions plan to fund this credit stations under

of the fit, compelling value transactions Reflecting than and flow cash our months. immediately in financial of free All our of accretive accretive strategic cornerstone less and XX are strong the M&A these strategy. EPS discipline,

ahead results third metrics. turning key In guidance. our to future quarter several guidance year to again quarter XXXX providing we’re help an and Now full forecast effort financial

was million a of included $XX political of third adjusted year last Premion as subsequently the reminder, $X which and quarter advertising again, million revenue, of approximately Just out.

the company third range. million ad growth we year's down revenue be expect impact expect revenue excluding to from reported quarter, political to Premion third the high-single of total last $X.X digits, in low-single in adjustments and We digit be quarter revenue

add have would this the impact from acquisitions Quest not that Justice yet the not I that does closed. immaterial include or

all provide the on We as period November, quarter guidance prior provide early third well. reflects of call closed transactions which will in pro and formas updated our impacts

all the expense. up of From an our programming the Midway we for programming to increase the previously quarter to digits slightly track elements discussed we or mid-single third are year. guidance through expect on expense driven to fees, flat perspective, meet year, excluding higher in by

expect the sub metrics and including full XXXX, we organic percent of year One, for full see based key since of renewals. revenue timing to MVPD guidance prior elements and mid-teens include on subscription remain Key -- the trends in year unchanged following our updates.

approximately While subs up by end year last are for only XX% subs our the of XX% XXXX. renewed renewal our of of

million Depreciation to approximately in million. to $XX be $XX approximately total $XXX is be of to million of expected are expenses $XX expected to Corporate in $XXX range the range expense projected $XX with Interest for to million amortization is million. million. year the the of

repacking, We quarter, to in headquarter’s $XX approximately completed recurring million, expect February. and includes completed in which mandatory channel and relocation, capital expenditures between projects, new $XX $XX million, a million including $XX was and million non-recurring of about which in in first million was $XX which CapEx Houston, the facility our

We rates to funding range. XX% at we to expect XX% additional acquisitions. low from plan this, until the our effective be as the previously repurchases disclosed, of tax new we delever And the end no we beyond share

we on XX% a XX% project flow XX% of of for revenue free cash XXXX-XX, basis, to For two to year XXXX-XX. XX% of and revenue

In terms current now M&A on of building the capital Dave’s regarding allocation, environment. comments

of delever. to discussed and through to accretive a that framework disciplined capital strong we sheet, follows As to return through with our TEGNA commitment a balances growth growth our profiles allocation dividends previously enhance shareholders desire capital balance and our organic strategic acquisitions

are shareholder that highest the financial results. consistently the medium long-term And tightly allocation to with maximizing value. capital allocate Capital offer to we always decisions aligned options

to As ample our earlier, recent within for Dave processes we under are assets after to the strategy us fit capacity even And in participate regulation, on further. continue acquisitions cap frameworks. a noted for that current we execute and have our including M&A actively industry

efficiency demonstrates our the power. Our recent buying of acquisition

$XXX billion, $XXX $XXX of cash three two million only EBITDA acquired about year basis, about For headroom. flow, million while free in annualized $X.X with in we revenue a an approximately cap on in retiring average million points and

we incremental remain with creating clearly value create. laser We every on focused shareholder opportunity

we're quarter making strategy. confidence in our progress flow for demonstrates in second our results revenue diversifying long-term reaffirming organic strong outlook and Beyond XXXX cash well this, that our as our streams, our as

content the serves shareholder continued opportunity profitable our in with confident leverage a create more the result, enhanced businesses provides scale not to into operating cyclical value this even greater As could We growth providing less to of efficiencies. an only transparency, through our enhance with to runway M&A ability and be important XXXX.

it to open With up to that, questions. Operator? I'd like

Instructions] [Operator Wolfe And with our Thank first ahead. Research. Ryvicker you. we from Marci take Please go question will

reported declines, pretty markets profile nervous given trends coupled pay been The TV disputes. retrans carriage high about net with some sub

have small on coming Dave, trends, us mentioned, contracts So update touch can large of on you a And as you up. maybe markets? then subscriber you lot versus retrans

we pricing then So up. how have Thanks. I And a should think about follow power?

good morning, Okay, Marci. Thanks.

be. with So right where thought our they paid line we are would subs in

into months, year eight traditional we'd we both As now virtual And the this said, we're category. after negative have combined. and is last positive straight just slightly

portfolio are frankly, question, would we thought industry better line with right So the our overall. in we performing where of I of because we be. your second And our are, think nature to than we

non. gap the do, a the small and smaller MVPDs a bit just subs quarter And just pick as one in sort but between versus to markets exists. large It's lot was in strength would it's think between second it as economic got markets, narrows markets the also of and instance, Houston categorize into the for between virtual the up it continues because example. that Yes, of market, I I income total I characterize the and little wouldn't an small. large those of markets, household have I'll gotten to

tale kind a economic there's of in So few there. cities a of different

As to retrans it this and about you relates about -- asked disputes summer. pricing the

to One there. we're typically but Let those, per a me se. summer. resolve Obviously, good a there's disputes a couple talk dispute, is retrans the involved about not is dynamics not in this retrans August month

on month So, just comment, lot et of -- not just active it's writ of of programming because cetera. a I it's et would cetera, I think that generally people vacations, sort make a a large,

of with think legally. that that do a we're I on tries and political the a typically, the known satellite the every the create of to up and there's those for which disputes disputes year it's them because STELA, that legislation tent to retrans next that under screwed they dynamic act, help industry confident consent, some they now just cause But in years actually get messing little bit reauthorization think piece home the on MVPD I to I right I up that's actually around And think nose believe won't. use as some of five its of noise retransmission up

already subs so deals will years by they're definition, the a end ago, and a case be to in year, ups it that of significant this under every did by ways fourth As the our them XX%, relates case XX% every next of -- those quite we Marci, XX% year, in quarter of we'll have market. and few because and step

portfolio bit strength bottom nice of in And there step the question. one think I escalators is is will of have So another and year and had puffing, huffing those of our increases noise good forward. you a little very ups line out the going

graded for Thank little you. a taking start. mentioned it a just while them was you're back, the sales in-house Yes, your national you choppy just bit at

wanted the national So should total is percent of just just think then know spot figure spot potential a to revenue, impact total maybe how as of And percent national what out? spot? about we of to

the the in we rep, through grade that definition a past that a call portfolio. was whoever but different really handled because national Marci in It's has third whatever XXs business been had which party

So they a had strategy. different

doesn't EBITDA is but forward large going immediately going side. actually of have businesses agency this should on on a expense on [ph], strategy our negative lot actually look and on like positive business, especially Our to we revenue any to the both not be it’s Grace way the be

business the And we to response commodity take going announced aiming is of contact, agencies has happen to also the have automation of to them them as what faster. and I then been to give from system actually expedite really tremendous. the the friction less to agencies that to the and points is we're the the to do said, What of out

Thank you.

question take with We'll our Alexia JPMorgan. Please go next from ahead. Quadrani

you the see Hi. We the is in Alexia. recover did for Dave, commentary some This start David quarter? provide April. Karnovsky on just can auto additional after

reflected you've Just this the wondering in advertising if demand all? seen at

indicated us, guess we're where quarter. advertising violently the Yes, time little it's how biggest down. come and in our We've improvement. seen overall the we'll to mid-single our most best back quite story as for I is But in guidance, to It's auto our it. story -- But -- about in first I was some quarter mean, it's mean, relative sequential call become was not about it and we marketing it services. auto you I projecting digit. more and

later. So that I more could about talk

I think in the little car what myth from an we bit but of around there's space, sales, I lot be of to it a continues SAR because a think fleet right. a is can issue tell

don't that extra Tier others. fleet bring the X and So for it with that, advertising of sales dollar

think don't little just I it's I So misleading. -- a

So I think remain sales out you relative on fleet basis sluggish. a when take sales,

ex-programming flat down guidance expense it to the on to QX. relative got you one just cost, up digits then And in low-single Okay. to

Just about full then pickup half, just Thanks. corporate provide inside well? some in color looking for slight quarter? sequential on back increase the does driving how expense year the into what's And as in apply to seem the to guide think the that for some

ex. as rebase small the line, well we programming quarter acquisitions, the to down down were had and then also we just were second the Well, ex-programming slightly, we X.X%. about that ones as so new for

a And perspective we've got which of question gave guide, not a those costs. a second other linkage bit relative third elements, sort you for little just obviously. just of a just that gives quarter is So we quarter, to you of couple this ex.

into system back new expense continue the of well we're baseline, in the of the the as that, implementing. terms that some corporate we half, reductions, Beyond drive to expense as

the on that the that hit reductions So will in first XXXX. we've got bring new quarter acquisitions, of when we

you. Okay, very helpful. Thank

Arthur Huber We'll from go Research ahead. take our Doug next question Partners. Please with

XXXX on Yes, this what on FCC update to just point? anything in one quiet the Dave. of It's to of materially front sort the as question, us terms at working deregulation been recently, look of kind beyond out on may be you and

I right think in a kind sluggish of Yes, cap is now. the spot

to up, about good I with I the dynamics the the think some STELA coming are that industry in bill and that there itself time. relative think

that second something change better be be. I embedded year, be But the So will still it's next the confident at that cap, first I'm year, right of chance structure has of discount good that of the not timing terribly chance be half year. dealt to a what with a next with this some now in a of point. before think the unclear year there'll current happening next end think would But half cap obviously, in I the than very the believe

Okay, very much. you thank

Joyce question Next come ISI. Please ahead. Evercore with will from David go

just Premion, Nexstar-Tribune some item, think Thank provide the wondering that to in given was housekeeping could the you. I the approvals? color August is quarter. of AMS on DOJ how that growth terms still pending contributed be, might more And if on closings you possibly the when in you you. then event Thank

You bet.

very a to growth, strong of in So of a a AMS was on very, it's obviously. digit got But our growth, lot just, well. got Premion absolutely. as it's performing overall advertising quarter percentage we business, double nice, contributor year-to-date, still, dollars, the We've Premion, our and

we but as you on core strong refer -- is to we But really we had anymore, call out well. So very trends, also very, -- us Premion core we that very quarter both well. would as call for them what you counts don't doing what good really traditionally are a

And of know Nexstar. there got those are of the we to there we've be And lot we Second lot DOJ any the that don't really remain and are know, we whatever question -- approval. are I FCC, Nexstar don't it's pretty Honestly, those to with is our the know, a resolve issues don't on clean. issues got indications done. till know

this But DC month lot and know quiet of see. working. Because be not or August close not. don’t will shall we to in people what a tends month we So a

trending partners? with finally, have if then the And Thanks. with trialing things ATSC new could just been you your how comment X.X, on

made of Yes, front. on I there's progress being that lot think a

-- markets and on large we're other transition repacked some focus to in [indiscernible] really So the those spectrum markets, are that XX with being with a we're broadcasters to do of try the transitioning top to has of part working as of lot now option. through the when phase,

but -- going if it would me ahead I actually three where it ago you'd but of take be, say it's So still some time, obviously, in faster plan, and the mark lot given markets But done than stick the done. market will repacking, involves to which asked they're transition a thought -- where others. to get years each lighthouse would get a I some

Great, thank you.

you. Thank

to Moving Kyle Stephens. go Please next with Evans ahead.

Hey, about a Any were market excited as when deregulation thanks. kind group we Dave, was time there new a area? M&A. on end in of views that

I -- a failed following I couple the our of of now to crimp building current the right that said going built calls participate. for or are of year, environment around the that position, taking think moment parts. put time temporarily we're poised we think I it DOJ to as the transaction of it's happen, -- not earnings not Kyle, industry, time, the will I happen started does But advantage very on and think the our sort take of regulatory all over obviously, But is it. last to be and when of poised growth in the that, absolutely Yes, on last sort has before, being,

and expect sequential your squint half Got next. you of sub if it. the count down subscriber We rev we're kind read quarter. were of sub do of period do? growth through a look -- slightly out this What looking on to is kind What you retrans in and year of today went at back the a at and

-- there’s a Actually, number I having referring quarter, lower noise number. growth little our cloud referring you you're let to second me if think -- sure are make that if in in a

plus quarter. think those -- X we had didn't year. last and for where were I we in But it the the months right So in three we XX, had Diego that quarter, full we of is San six only for KFNB and points first

exactly on sub trends would forma the XX. a our normally in were we XX is a we pro expected counts. have, you seasonality so because second -- have plus on that's -- if we plus a sequential that's about So in a to quarter have And, what

XX, plus where be. we they’re is and So we plus would right thought XX,

no will and there's issues point side. get The -- far getting trans sub trend the I both Because industry, increases talked on annual that will it about about on sub offset we really and working ups reminder, the we've think us, escalators the new for as as step an is So declines. as are revenue a but to the strong you this go broadcasters, marketplace is groups delta it with where today is ours, subscriber especially while have for still at XX% be. of in XX% issue, revenues four have stations That the still call to XX% of like so and it viewing. big like work we should the or

is it you that do Got any outlook leave there? to you want Or that? want you -- on share have it. Do to

think But No, statement. the we're outlook. in I words not giving any enthusiastic I used

nicely of amount what absolute will We've some knowledge And for we're positioned, comp the uncertainty for clear repricing. a fact that have So the on have time. what positioned, reverse is nicely up be. of given really subs Kyle, we we that firewall

able much Great. how of out to is are that take my you business ex-programming? costs Where And you. the last left? of question. That's Thank

to There's things. no end Technology to innovation. do continues wonderful

side. continue time down. we're price relative now we the finance some the of rolling as Doing to up things doing innovate, technology comes are we to on right So over

The were still our not some is estate people we there the while of was a And, cost probably of strategy discussed. kind station, out amount of efficiency but lot forward. come actually be old a will to model, driven, large, frankly, lot get of on house area of national in infrastructure. cost got a move that going sales just are real get -- a touching be -- kind just TV lot some sales could we've as costs handled just of it -- And it. well orders an which an the I to it able down money of finally thing We'll on broadcasting as

just expand Victoria little on to is this that Kyle, bit. a

we've new beyond the implementation which year, on got the next the saving in that to have well. synergies for going contributes We cost as that ERP acquisitions

reduce things to costs. in which continue will like employees, We for medical our our invest healthy that living

We've got a to plug management. and cash relative play set and of centralized platforms systems now

up So you and things as importing support TEGNA be as that our as employees infrastructure lot the for of at for importantly, both are of that we’ll base well now our think us stations the freeing reducing beneficial a for cost acquiring the would we're of cash to that sort flow.

plug a play way. there modular So acquisitions much that the becomes I think that with new and more it

Great, much. thanks so

Our Jim Please next go with from Research. question will come Barrington Goss ahead.

key outlined regarding will and nature, service a show the that philosophy you within attitudes presence number breath supportive? strategy on Or initiatives. and I'm talk a strategies And could side if broadcasters. the more programming time? Dave, are different ultimately toward value about and content what take programming? Thanks. little is just a is content you there broadly that Is and economic separate wondering your a greater might size, What of be? the business it over a

your for question, last both, it's Jim. to Thanks the right. question, The answer

to matter would I service, game. not that our the between that, fact and really to initiative, you're So is, new AT&T's fact foray. first It's new war going initiative. programming let's the and nuclear play advantage just what and call the service But planning what we're to director right. have consumer take going a of in just Disney's scripted of Netflix's take the not we're is a That's the true crime podcast

or like like need Ted they Making other Netflix. a programming, Murderer programming, Bundy But say on reality special the will of

XX America. content, unsolved We in archived exclusive content have on X of archived out crimes true

a reality business on that the over studio available. the is into that video production require us. some effort There will country So not Producers really content, Independent we’re just sitting producers IP head library turn that of all We've got for big and the leading that of Association, investment. the will and are former

declines well, all the is content side stations viewing. so too in was to focus in this many ecosystem. And linear our that'll think around selling just people there and said, we’re own Within just, and programming big primary players I was innovation where a be industry, the business secular we initially --

of TV a last self-inflicted. it So innovate in is, did years. newscast a we but piece consider Local lot XX lot it not the a of

money, XXX% quarters the share even a station So innovation in they some way. audience smart to we average. gained that allows you the really literally in were markets years we've the original examples got us of if market, eight gives different we've newscast to went margin whole That's Last about market. newscast the of core go and one that its that talked increase, I've had benefit, lot about audience three And, to things an to number money. a back of before, market and a got a declining, how process taken real market have that's younger on do XX% of as where its local and

on expense those like acquisitions then a that And might cost each show on is marginal to exist being new those zero reduce now Blast Daily are Live to that stations. acquisition, syndication at adding the we with programming able and

over change in get get innovation part it's they're side and get like our it's which they stations and giving they money to feel pilots, ideation participate, as digital to results platforms, culture, having companywide benefit, result. they both or all So innovative platforms all a And on where goodness driven to a does a now the mean of the very at focused around. process more to staff own level, by is that starting time,

decay differentiate very from media to over and time appreciate standpoint, I -- a important question, as being fragmentation distribution I for So content. and the themselves because start very, think outlets on more local increases, strategic more advantages

for thank that. Okay, you

that area, of decisions? you of of political you greater those M&A other pressure can on the one range comments, M&A XXXX so you There's political Do that heavily regarding M&A take for a sizes? Just focus result about. as - added traditional advantage weigh geography on and it? talking market will feel such were certain also any the And that

political fantastic, question footprint To is any actually. M&A, any our pressure your don't to first Jim, no, feel we more do

state. the only them. got states Senate. top now which ton never going states be to one take so a both have, going we've really And massively to Arizona, competitive, battleground in that have spending money it'll just now used and And of the two of three let’s in. be a to presidential before we're in of going be markets there's we And we're we've it's are And

footprint do current know So higher no so, our share -- pressure a M&A to get we political. to of

for focused stay pressure do just knitting, Big that. going As our and forward, not be Fours But, like probably three to we're to relates inside no the looking for continue I'll it we opportunistic, we’ll most the of noticed, plus, anything. you've we part, Fours don't to and but -- to do on continue we've markets stations and really XXX we'll Big

I about Victoria's add And to right. point cap, want just to the

-- So with XX.X%. discount at the we're at we're specifically

we refer that as sort it the cap. like sports that’s stations cap. is country salary under a XX% of So Would and adjust were of around using you the capology, here, team’s to it affectionately that

the how acquisitions So do at criteria flow, how EBITDA point much we M&A. a big Victoria said, each we for we do as cap. get much look to under relative with use cash And that's

otherwise, the And can X previously, we said do you Jim, our and Even our other given use close to all in to announced flow itself. addition political our one ability about our under time. thing from terms leverage or will Just previously in we've that cash when tell X as and firepower of leverage very we in transactions cap what the XXXX results, we be of of our inherent quickly times. X.X

the the both So as do arise M&A leverage is as more there capacity is cap. with strategically well obviously it to

very much. thanks Okay,

take question Research We'll ahead. Please our from next with Partners. Huber Craig Huber go

year-over-year could. change just number was place? the few small if The a we advertising what Dave that got finished acquisition, that I I quarter in percentage Yes, questions excluding

asking adverting marketing what? So and services,

small year-over-year? Yes. in year, acquisition you was did what guys that excluding change earlier percentage Yes, the the

up was digits. It low-single digits, yeah low-single

that And then excluding scenes on third the you advertising for pay basis, scenes or what's advertising closed? the the the have pay total quarter acquisitions year-over-year TV just

Obviously very good. -- good. they're it it's we've very and So July was closed

though quarter was quarter. good, then second positive. the and it late, as are And they even are So always are better is, than they they but

like up what X%, that suggesting, is or, that? you're was X%, So X%,

Given they're better give good looking they're of second forward and services, on marketing than number -- they're not positive, and the but quarter. advertising,

it regional auto half just of the the holding various is auto But alleviate negative It what advertising. TV back kind of updated the the on a kind at here second level little the and take Okay. in might level here suggesting year. Dave, what is please? national your seems it like dealer of And trends the bit go you're issues here through on

not sales, is inflated first of we terrible, right, the are But, I the answer seem sales, it's the I SAR by the one earlier, to so not numbers up. see is that it's positive. -- not real Yes, think level it's artificially Craig yet I -- all, only only are dealership the not just fleet have which at gave

And correlation kind one for a as of we it's one all with sales. know,

So you've you've seen of just it advertising TV, in media it auto other that get not in seen well. as forms

we're even And we unique. more not down are. than significantly are platforms So -- in there's digital fact there's that

is two to Once what a housekeeping amortization expense And be? then do think you also your annualized ask close, your acquisitions question. these P&L going large Victoria, if on I can you

see got We've through we're a but We're it you'll get and that, -- close. the together, now to we do update process. amortization number, so post pre once to we'll going all going EPS all right of

final My recent year-over-year it’s across news In talk if at your most portfolio. local change the sort Dave, percent average will? is, about. is period, Okay. or What's the right you now question, your can ratings of what down you of the range the

I Craig. a that, number for have don't

given We forms have Nielsen the the of actually size company different have of the we there. methodology out -- three

even even that able of kind we're not don't meaningful sort we So to do any -- of way.

trends the or the good through some big I just hit we ago, markets headed say, markets, Two we varies, and So that wrong would it years acquisitions, direction. -- but overall, three we're matter. in some in we have

good we might So, but we've levels view you the look down nice a especially you have seen our weekly markets in have of of that market, terms share big in increases may matter. the trends, year-over-year And hot some the in X% be up. right, overall at market as viewing, where

Thank great. Okay, you.

Thank you.

Capital We'll next Noble question our Markets. take Michael Kupinski from with

time being the question. programming taking to to and spent, initiatives. was a bit past, thanks for actually being performance I -- be remember in vocal a broadcasters ratings and some little immersed how in Thank where terms comp actually networks regarding the of you, the money more the were of

of you currently performance from might the ratings holding in the wondering, be of the those programming network allocated comp just dollars was that I the are towards where speed terms tag now? network network's that to these terms of And And reverse fire you're side? how to are paying, prospect initiatives the then interesting in

relationships do do question, me, behind take place, great That's so just those a we company have And access it’s doesn't publicly had we've our believe believe programming. closed me, we've conversations. as a doors. something relative the does had to it that networks It's conversation find all size, between not and we to

we're pretty I'm But aligned. the part, network any call going actually for to out believe or I individual most

I to NBC turned think focused think they assets the the and pleasant cable that, the the broadcast bought, portfolio, out they on NBC, networks first be I have that that were as when found surprise.

The -- So networks and subs. and becoming that total cable them. bigger -- larger a broadcast loses cable as I source Michael, distribution for think as are

lot important as for in very they programming going it's comes we to it's them investment have So as much to they work been. think and very going to have I I be And sports. also that of are a to sports down ever think aligned. there invested And are

get for you're networks okay. that networks? say to we're mean, because you for or just to at Anything the the in have. would Are sports, to mean, ratings there outside programming in towards? a other particular point performance guidances or looking know there. any initiatives I Got like that you. this of specific move is would invest I specific And share. want past, that looking giving you the you though, We like sports we don't it there more viewers get we because that is you

news look, lot of parts. sports, yes, just programming, look day take a our It's of So about each network, our right. not to their

very are on partners, particular, the performance, network say are down especially we and day when things that. we with their focused like newscast in parts, morning our sitting So,

I for us. to show very And, So NBC not instance mean, the portfolio prime. it's today's on just our around is important

make they them help we help money. us And, money, make and

perform think high end, our relative stations at the that very show. I to

than the even might the So are Comcast and you're was it's XX comp is, more much on running now and with sort entree days. aligned we're the But networks, for NBC of leverage that been years I say good as has prior given frankly news most only have good cable we're When, more reverse the right -- part, stuff. aligned it's a or very of we question, most us to ago. have well the a we X increased think to

Got you. Thanks for answering the questions. Appreciate it.

Thanks, Michael.

Heber from question a take David ahead. We'll Wells Fargo. with Please go

Good the morning, question. taking Thanks everyone. for

like mentioned, balance of you opportunity the you much how on secondly, couple also the create? debt markets you your sheet. think acquisitions? Do reassess need runway an come you And the structure. capital I then your think would said funding existing a you for to you And to near-term Just maturities this I would to gives liquidity. use to

debt Thank secured anything meaningfully looking you. anticipate So at different market? doing perhaps would you the

we've room the revolver of we've we’re that under of using draws revolver And got transactions a already announced plenty and on combination no. well cash so as relative Sure, to as hand.

do and our provide does lower to mentioned do though, earlier. go rates some maturities looking and where are us we'll at it extend costs. after be to And refinancing an Given with market some that I interest opportunity of as

different We in don't of our substantially mind have in terms structure. anything

looking the it to mentioned a are I at extend We revolver, earlier, year. as

Now XXXX. through that we've got

go comment significant -- material kinds can't at changes but EBITDA acquisitions. But at market, And of things from on really this keeping Now plans. until of revenue $X.X billion those the structure, to point, that additional size. got EBITDA our and and no we we've the governance to sort

question. I And you. big thank had Okay, just one picture

virtual anything questions. the thanks real again building some been the younger you've those particular sort are getting reach on you MVPDs, scale on demographics platforms? And with And that for Now the any viewership? of more time data of around

affiliation. varies that and our provider Yeah, network -- by our by the varies by

we'd much as in in some cases, cases, So some not yes. as like. And

Okay, thank you.

Thank you.

back remarks. or And this I'd for to turn call does any conclude additional like closing the today's John question-and-answer to Janedis over session.

for TEGNA's strong time is today. I'll and by with to affiliation which our valuable pleased you encouraged folks business, call by agreements. just Thank we're our listen strength of subscription and supported up. discussed, conclude, take To taking it we our the revenues again, to the

and we well us M&A of look through this discipline and As continue and beyond. allocation end forward, capital paired to position year with will strategy active our success the for the

you, unable everyone. to cover If you today, questions Thank at have XXX-XXX-XXXX, we’re reach And you operator. again, any Janedis thank additional please to XXX-XXX-XXXX. out John

sir. this you for welcome, participation. You're your And conclude does today's conference. Thank

connect. may just now You