TEGNA (TGNA) 10 Aug 202020 Q2 Earnings call transcript

Good day, and welcome to the TEGNA's Second Quarter 2020 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 Doug Kuckelman, Head of Investor Relations. Please go ahead.

morning and to webcast. good XXXX second and call earnings you, and our welcome quarter Thank performance Today, and Harker, financial our President CFO, our and Victoria will CEO, review Dave Lougee, results. TEGNA's the call that, open After for we'll questions. up Hopefully, press morning's review release. you've the had to this opportunity

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

cause are Before we and to may include in statements forward-looking like Factors webcast also filings. actual differ. that This results differ you financial includes get remind started, them that SEC our certain may and outlined measures. I'd call this to our presentation conference non-GAAP

We have press directly release. those Dave. the to the comparable let that, the to me turn provided most reconciliations of With call in GAAP measures over measures

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dimensions. be are of specific of taking going the a our four communities areas way commitment TEGNA the those that embed our on to communities. diversity governance oversight our To better order to together ensure same working across committees company accountability the the into to of that of in we are serve serve reflects We board diversity that company, approaches each within and further number

the pandemic. innovation act quickly to and of us allowed execution Turning culture navigate and COVID. established decisively to TEGNA's

resonated through They proud during these the and And provided combined audiences platforms. antidote our That the a many misinformation with sift work Our employees social I'm that have job, of and to across a of our a well especially a national and been editorial our fiction marvelous outlets. done have franchise dislocation philosophy day some continued from news one and anxiety-ridden unprecedented has isolation. pandemic. to of among of the our as media from clearly informing has disinformation, communities approaches Facts circumstances. time balanced our utilize all coverage sea with helps philosophy verified uniting as brand to Fear facts experiences welcome innovative Not by

last and many active in had consumption, unduplicated the XX the million XX video our now traffic true even the second increases now TV for metrics Digital OTT quarter in late channel, of the in few hours the sites multi-platform that, in pandemic, further as and free, play stories TV of greater hundreds streaming content. that's serve, BuzzFeed, and than month crime month value quarters digital introduced XX able viewership Network. we Reddit, record apps demographics our behind and called for not setting demand. across both months. for stay communities to to we as records the Crime across only a now completed February mobile seen June, are as news to of but part and on our July, our we to the key into plays, digital now in high tablet. and what come multicast has monthly a an our major significant True increased users. Comscore to content top viewing we well the including visitors, role to network rise continued relaunch platforms. higher important, TEGNA stream critical March, to all June, In operations ad-supported of Apple the strengthening us Network Fire, our we the limited for and across between relevant year slots. We've This we And over Amazon Justice properties and daytime Also as LinkedIn. that when service have platforms experience rate continue TV, local saw clients Android Turning Viewers we've highest Apple this across of million. each ratings for to US such digital in time had beginning available and Overall, digital visitors, deliver reflects as rankings

back Now, we the benefit events as the been in live to fall, of second normally that of have number half see sports would rescheduled we're going a unusual return this from from the that year quarter. large not

we the Stanley of part Indianapolis stations also on host the high-value US Indianapolis political will Golf Open many year not typically acquisition. in air, of then will months city, We'll look market And now into the our instance, ahead. network Our for to and inventory wider The these benefit expanded to the concentrated have extraordinary place in demand, all will stations content can Tournament Four deliver Big airing second benefit, games audience intentionally Kentucky and we when than in in on and this notably, strong XXX, NBC and many our early These Derby portfolio and forward as of from from now a ABC regular the NBC we NBA reach, on The back events we the playoff large possibly have acquisitions now Cup events and take September in August season we now playoffs the Big our Considering additional before. our recent and ever and have the and months. of place host having taking experience so the these ABC are half advertising events would coming October. September. The is Four

execute of revenues which I million earlier, for new be for still As for full our This subscription year, revenues, the expectation five-pillar be to year. the on and we least expect TEGNA mentioned the to strength well quarter. strategy at mid-XXs continue full our second our by continued evidenced up was political percent $XXX to the in

exposure many period and balance while tends end better a to feet. races a to more the and our numerous are our local result into better our but initially Non-political portfolio. where political by will strong the in as very doing the that sheets down year, advertising These marketing and driven businesses we more to the the for nice second we of a And perform to political I'll advertising footprint is partially helping strange rebound sales advertising just touch convinced consumer basically detail stopped constructed quarter, client at sizable large pre-COVID of marketing take local than apparent trends on job to XX%, on to have our companies about our moment. than due As political get – returned in benefit Notably, even businesses, their XX% large was services our overall. of be base teams revenues with from small are economy are though to shape trend strategically great anticipated, but decreased trends the I'll be a in had positioned completely levels, due recent additions resilient market. revenues time it advertising brands in well for not positioned that to may had markets ad in very it's the are a given yet talk the back March. we resume a decreased half moment, sound

performance in minute discussing of more drivers the like quarter I'd Now, a detail. spend second key our to

to subscription growth unexpected any from quarter of and revenues all our was did of recent and resiliency proven our grew and see in modest downturns the a quarter. declines we to COVID-XX quarter fourth in stations, the very to and of rate any economic XX% revenues years sub grown year. news the cash April rate flows and repriced a highlights as notably, modest from helped XX% solid in Our in well in we These not pleasant acceleration acquisitions, reflecting This due given their then us turn in declines underpinning corresponding increases, of they again, the of once absence sports surprise substantially the subscribers synergies have the produce. acceleration not last May, business have are in spite live of And and the which

do side, on well as teams ad were businesses dollars positioned harnessing well sales have well get and their as ad approach very to our to feet new verticals the from COVID. back during do a did On taken helping that innovative

bring new team decision numbers share revenue are last other outside third sales there in our where integrated using strategic all led market in that party, in market. audited very sales benefits of but an of markets markets one instead in-house our the the national gains and to flat our largest year was of Following TEGNA the this one the

to our goal benefits permanent actions due crisis. as we continued the on to resulted manage all of cash benefit the to will difficult through last of in call the from expense of the during and took healthcare noted furlough on our has one-week the well our the a of workforce as flows. other say our crisis all we've as all second to $XX employees carry side, pay quarterly that And quarter, the of at job learned with pleased nobody the current we swift the employees, that maintaining we actions time. COVID quarter, original in of combined product, full future temporary announced healthcare long-term expense a that will practices take new or with lost and health benefits cut a costs action in efficiencies beginning million our their non-essential As plan. savings At our This business. beginning I'm the protect Many almost the this employment or of would temporary ongoing very quarter

will times. financing increased shortly detail Victoria Additionally, decisions, these cover in have us during our proactive unprecedented provided which with more flexibility

also consistent durable such yield our few weather as this us environment cash flows the revenues and to continue So, that political focus drivers enable on past over well. growth subscription to years

of several As we are a years. number over drive next to dynamics there performance expect a the reminder, positive financial our

growth future significant this of approximately have tailwind from at last of with repriced the of of XX% base time. predictability to subscribers first opportunity repriced flows the with continue over of that cash the for increase this year. year These upside subscriber half was the half very tail be back further in year. already deals And end results our further to reflect the we XX% Our

as basis. significantly was same-store prior of half on Now, for compared years the Political XXXX, the with up advertising. above year, first XXXX the political as in presidential well a

states, of including advantage the high-yield, Georgia, we've portfolio North battleground swing even-year high-spend Carolina, and spending to Arizona, Pennsylvania. strategically Maine, number about Colorado, As before, spoken and but Minnesota, has our been constructed with of take large increasing to, increasingly stations not political and limited Michigan, Iowa,

into political in political revenues. for well presidential outlook of have the races two competitive. where state come stations play my of There up of year and Texas also potentially we an there Senate could And well seen two Macon, races spending in markets million on the right we months, in the XXXX in reopens. serving is grabs markets. recent see before, play for we're few just for XX tell have spending improvements for revenues now we in or race races and toss-ups in will states more races to Democrat not where but political over the has were This taken books spending. for least congressional that As for advertising, but reflection as future full career. non-political competitive even-year a in our Republican, Texas, XX to the shifts as us to when some are early TEGNA Too we first there up TEGNA defined where up, increasingly just expectations is state. business past for due economy XX currently in seats. words, other the us to competitive. to made going our multiple reflected inside have see Returning or all the to the $XXX presidential And the years or our and position stations fully shape, of competitive large at we're end at-least-then in seats now House And revised lean XX% lean presidential and we going confident time Georgia, have finally, political House bodes the haven't that also Atlanta additional senate

tailwinds XQ, it services we're services. Premion, advertising now of advertising more this quarter now. year-over-year back on in still is and significant right secular that viewing temporarily well benefiting outperformed is additional Our OTT platform, while from the And streaming somewhat in slowed experience to traditional growth in

news, our shareholder the our continue long-term perform into forward communities, Our XQ The well and over revenue our and every continue pursuit management avenue. in we current in whatever recovery, value us now our cover the relevant external of unprecedented we value ahead board of create downturn in and during over navigate happening the through look and have We our TEGNA strategy reshaping strategy team pillars things to to financials reflect of great Victoria? more an purposeful us. to remain And the shareholders. team to challenges streams crisis to to on positioned supporting may update through of key Victoria on and detail. executing members for our business relentless also time. to strategic pass at focus content as delivering trusted our call I'll on you results through our have

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

team customers communities their already want serving dedication other mentioned, families, their each time. too unprecedented while supporting to this TEGNA I to our through entire for Dave the thank As and

seamlessly. centered As decisions, plan remote best and very in work our you've clients resources, for heard to work previously, continue future, environment the proactive strategic our dividends well will capital on to benefits and making which positioned pay allocation practices us platforms, us suddenly into discuss us efficiently well leveraging smart, our serve this share quarter. These and a effectively to is viewers

to consolidated Now results. the second financial quarter turning

performance primarily As our on business you of financial into focused visibility operational the a providing results. basis, as our today on non-GAAP drivers are well a reminder, as trends my consolidated TEGNA's with comments

period and press data our prior reported in comparatives our of all release. find You'll

quarter, you most our greater impacts. March, we with shared we, market XXXX financial As COVID-XX on guidance like in suspended businesses, last pending clarity

later the our several the full Over share for of refine order outlook the metrics remarks. past my year in months, balance help to forecasting. to we've in several cash-impacting this for year key with continued I'll

advertising second as subscription by year-over-year spending. last completed and in quarter, X% year, driven the continued well up our revenue late acquisitions company growth was revenues political For as total

political up year-over-year. revenues total of impact the Excluding was advertising, X%

portfolio In our XX% terms base with result as business in of the the provides flow, the services growth increased COVID-XX a subcategories the of of cancellations of fourth the of positive proof than our another our including resilient revenue in pillars non-political as year-over-year, in XX% quarter and plan. of said EBITDA more rates April steady, sequential quarter the and revenue sizable step strategic retransmission one last stations. us primarily percentage now This newly-acquired continued cash ups the free improvement contractions. till subscribers subscription recent marketing we've revenue, as subscription key with to our onset breakdown from related resulting for our subscription of year, follows: Advertising XXXX, due ever, compared for the points more our down more was footprint to June. That much through economic advertising point M&A. finished was reflecting to and of XX% achieved than both an repriced coupled well the This from seen XX revenue by in high-margin progress mechanical the pandemic, synergies political and growth since

trends. on provide advertising color performance sector some to specific further Now,

which As categories aggregate some outpacing which performed and automotive, shelter-in-place which up restaurants, retail, well you'd year. last most to down were were this financial performed the all all expect, tourism, the were in education, relative including and struggled Home Not and better environment categories entertainment, also pharmaceutical, services year. services, of trends. above insurance, home surprisingly, travel improvement, last

quarter. expenses Now, for second turning to the

driven proceeds $X divestiture. our a our include offset these successful million by CareerBuilder defense, of fees release, press the from our in special details in items to activism portion saw related you'd by As expense-related

higher as driven which quarter XX% the were programming higher compensation operating our stations, fees, new revenues. reverse and acquisitions, as recent Justice expenses a subscription include for year-over-year Our predominately on networks, second the included by which well basis, Quest with associated XX

Excluding expenses acquisitions expenses, and down programming were non-GAAP X%. operating

onset to addition and to our cost As continued health implement the these of we all streamlining containment and quarter, company-wide order in that efforts. measures pandemic, of swiftly processes the COVID-XX capital at the Note protect long-term in including were of the last costs we responded expenditures discretionary business to efficiency discussed business. measures, reducing our non-essential

for of leverage, many our operational through underway previously, discuss stations some new of as culture as M&A. me heard benefiting cost you've part our these management well thoughtful have been As of existing time as

these company-wide second temporary freeze pay holistic against reporting, we one-week To achieved, hiring automation more reminder, employee a implemented implementation forecasting the of and quarter, restrictions results. our master reduced for of efforts. budget consolidation reduction discretionary monitoring processes. now financial reductions, newly stations. sale bring specifically, our savings projected for functions, and and The ERP our is platform, of all backdrop platforms shared back-office new same this a during service analysis, some examples furloughs, $XX And As system stations of the consolidation, support traffic and efforts and support acquired a cost control, include financial Allowing produce system meaningful which company-wide spending. centers previously our of our the the above of creation travel cost achieved to streaming compared completion result, financial and cost onto will as over of nearing a million takeout rest as quarter, of a we the

adjusted drivers, quarter of all these As the EBITDA a was for million. result $XXX reported of

a higher existing All Interest $XX XXXX half services marketing of the than due quarter, acquired to were last despite well also COVID-XX. stations, the lower of for previously due expense the revenue high-margin year to was than and acquisitions anticipated. as in back newly contribute well of our our as had million we advertising of loss ones

remind and operating before to Before providing the well our on sheet more strong results market quarter, volatility. the you steps taken balance detail the for we've I'd create like current a to resilient

greater has September, we It's interest last only $X.X completed times scheduled the but subsequent facility time. occur XX, in revolver $X.X XX-month caps to billion we the our through our that at X.XX trailing rates you note completed important More first This X.X to forecast extending increased revolver provides leverage from the including financial recently re-financings taking which credit covenant a low at while half times of calculation. as second times on with that only leverage down financial the recall place to based extension XXXX. year, flexibility, end June at step of step-down not a us due certainty. historically EBITDA billion covenants, for after As on eight X.X with also scheduled revolving quarter of maturities, in allows

in including loan also very next down in term June, the million in of million continued accelerated when March You'll paid after in have the was XXXX. over of million statements market note we $XXX volatility. now was our $XX maturity to which debt hand debt At that $XXX the financial of end due June, has since million, end September XX on cognizant grow paused cash and the reduction significantly $XX little months, temporarily we

never federal by these of tax in unused payments, calculations. total the facility significant second this, the credit XX% and $XXX more cash billion period billion areas the regular our our as diligent million reduction we'll remained with back the history, were CARES income each reduced forecasting Despite resulted our recently million current shareholders. has quarter. uncertainty. collections debt allocation flow scaled paid have of free $XX We and cash We balance or deliver impacts the liquidity some for positive quarter, deferral quarter our through dividend quarter from TEGNA estimated this We've reprioritized Throughout remain free this fully of decisions, leverage debt of of under COVID-XX to our to with in in $X.XX for $XX we million recent X.XX the remained forward-looking in flow, which quarterly during million which X.XX of as of government now $XXX Act. defined is part the capacity revolving covenant expenditures Receivable than our the benefited evaluating response on and of CapEx revolver COVID-XX reducing capital restarted prudent total be project important more will benefits, also This strong. year. times for of cash accelerated continue longer-term our and quarter, strong delayed Beyond in to net given and the times, to investments challenge. revenue generated third than contributed $X.X

onset before, I evaluate operational continue now are proving would that many monitor part As forward-looking mentioned of the the well-before the COVID-XX we way our carefully were to of of under our With uncertain, efforts quarter economic full well-aware. of pandemic to our ongoing pandemic, we and impact spikes shared guidance. efficiency remains conditions whether to recent last the reinstate be an increasingly also We cases, as in strategy.

few are more results. outlook expectations provide this frame for future there However, on help year, now regarding to color the areas like our I'd of of to rest

resiliency these expect still subscription range growth of Dave revenues. the full reflecting of we percent mid-XXs the for earlier, as contractual revenue year, shared First,

we expanded Second, also in US US races. expect revenue least million, the by to political advertising at presidential, now House competitive be footprint Senate, supported and $XXX full-year

our now $XX $XX prior reduction from $XX non-recurring be for the million million. to to million a approximately year, to $XX total we expenditures million $XX million guidance to of full-year Third, capital $XX million including project million $XX of spend,

or times. by up X.X end the covenant below of less financial to times of terms year, the at expect our be of X.X In ratio, our net leverage well we to

expense rates, million, debt we guide. TEGNA's unsecured, low million reduction to refinancings. and is $XXX of the to a all be recent enjoyed range $XX interest Fourth, reminder, to a prior our $XXX thanks to of million full-year our As approximately now expect interest we very in

will it tax due the We, continue the hope in obviously, to will now differences business, for these we'll Finally, of recovery tax Act previously despite timing full-year cash COVID-XX over impacts context that, XX.X% range remain discussed. effective and with we And greater macroeconomic XX.X% to provide project Q&A the to your our for that the but CARES to your help cash metrics I monitor turn forecasting. our rate our questions. in payments color

from Thank you. take Benchmark The Kurnos first with We'll question Company. our Dan

morning, Good Thanks. Great. Dave.

You know, very political impressive guide.

all were most higher what of think of us I than expecting.

You to few you've feels gave to color. that. some upside just hesitant I a forma, there's races come been good and, pro trying some that and obviously, give mentioned a out guess you understand like number, really to more so

gives just going a to trend. kind your of and interesting trying TV to the right what to levels? to confidence where So, ask number is, question And now then, breaking things fund-raising you sense actually get books, maybe an it how Desk to year take of dollars, from secondly, Trade from Roku, TV. that to on be of that lot I've heard really a half connected of seems connected in Premion it on positioned back kind the are and benefit well

it'd little you're Thanks. seeing what a be on helpful. talk just front bit that could you maybe about So,

Thanks, morning. Good Dan.

I obviously, the second not is services one partners with got and still script, to that long OTT doing broadcast but be which all already great will a is, that's lot tailwind additive and it's it's of services, Premion – we'll have seek amount added it of even to is we doing very, for more. too does because what TV didn't business, they and but streaming more those TV, as take first linear my tremendous have, go you're generally well It's and you're they're said, is Premion, – We've want mean, advertisers got continue Yeah, then me look for absolutely really the very increase in out right. Let to that, to Connected even true. here. absolutely. by a I on – they're events, the live I so. proving way, big inventory additive the and

how pre-Donald of book, hire On good handle us as about $XX books, factors but pretty of us increase (XX:XX:XX). for almost on give the Trump in as pacing, is got a confidence the the also, increase, we to levels. really what's more number – well $XX know number history as on Trump the Obviously, in spending a the we're midterm political million and the post-Donald on million was the I we've which but XX% talked previous. side, a new The reflection

And I million XXXX about think, so adding on you and did in presidential race stations. I we $XXX on all think acquired you're now talk the pro a forma recall, basis when a

that you had things that. we like might of the time and And two What's a happen. look since between play. So that states even COVID bunch get more presidential – declined, gave put got the George changed it, got Biden a have is play one When then numbers of on our weren't that top in states at-least-then now brought going it's previous polling into Floyd, Bernie play. nomination president's Biden be into Sanders it, when as necessarily race to

So seats number president ago just same the and solidly in looked both has footprints That in House. Senate. will in all We've as months Senate the the and play, widened. know, trend presidential, the and that It hot get on will the House. have as I thing that took be Republican them seats are Senate the to put We've of that into there done Senate got a the got in talking – the five for seats Senate the control, the almost And Georgia two you go to try stratospheric. the out of money the Senate mentioned.

seats now that in enormous we've are seats we've Carolina. is If people. that, with other are massive state North Mitch obviously which the Carolina. is four Same got at and South Michigan, an them; a likely money, competitive, Colorado, of four Georgia toss Graham's Lindsey Iowa, of seats toss Arizona, in seats without McConnell the Maine, opponent we got we've in two you look even Kentucky, got there's up But money opponent Senate column, states, from seat column, five up and that's in got Republican, amount which his now a – raising

So, of it's new last turns for long-winded Passion fundraising you only, that And and all also passion the and our is into the we all answer huge system move footprint. obvious column. the saying, four for competitive more from increased have know, are our also into in months benefiting passion. the really the races reasons fundraising

just might even in Pennsylvania Iowa now well. be Indiana in play Pennsylvania, helped in and But, and being as us. new know, have Alabama, it like our You stations looks in

on So, we political are as can you tell. very bullish

marry two bucket in to seeing what Premion? And terms just general would that as a political in you just or breakdown? be might I just second, just record would the the that of Can a separately AMS on for fall you housekeeping-wise,

You're talking Premion? about political from

Yeah.

about political. you regular talking Are political, Premion a We booked political in on yeah. the

I'm numbers you, political billing. in Premion the the excludes Premion giving strength of terms of So,

Got you. it. Thank

Dan. you, Thank

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

Thank you Hi. much. very

few sub may is sounds how working, a what's all a guess us any not, return and the now like questions. to mentioned this, obviously, couple you tell it on and it's how follow-up, April a it's on I for miss if terms of thought. called from right if much a it acceleration color just what's non-political, the that you maybe or that the had even Just you net any of I sort Thanks of you but half be you said traditional but healthier give more gave political, no color you advertising between to you anticipated? declines in had and And advertising more going more trended can us be on than May, quick through the and, I'm of apologize could can had sports August? versus trending the give I us But you weak, color what I think of categories curious I market? the think back we stay

Yeah.

first. declines sub the take me Let

you basically year quarter, if by by end the end the first end point, declines end the second forecasted. now the the of the bottom way, And quarter, we – the to of accelerated it's at first this – just of of So, look had the quarter, than about accelerated a point. X the we better we, was which from from it under

acceleration knew from, the even I cable other did calls we good frankly, more, numbers doing was are etcetera. minus resilient the we not and cord to be than job. companies there it's the sitting a thought, the to really Alexia, especially all easier at I because are when people are more on modest see X acceleration again, point, pre-COVID. – I see But expected So, out minus of And earnings were they some personally around you're streaming there X to there point. cut But home, time proved zero services,

onto want, and follow-up a a if I – worried provider, for significantly these really customers have job had But declines satellite But you on to would and good one different. main think their look Spectrum work. We'll COVID. have specifically, to Alexia. we hanging large one that, Comcast – the take relative doing anyway, numbers so, less been than

to frankly, local the the right? a job done so businesses may local of marketing I categories. of the they side, rate Advertising, in – had stopped able have said, On lot we marketing a operate but team's April, strategies category across getting And all strategies, services in then, through But put place. had in basically, that our as that great were sales decline. the advertising not are pacing,

bankruptcy, dollars our on that said recruitment, services got And in quarter, alarm, we of categories, finance. we've insurance and education, plumbers, increase heating, categories we've I homes, improvement tremendous add of weakness And obviously, banking those like really in as So, there retail increases air electricians, the in calls, the in expanded despite to auto like security, that, previous and that, some retirement were went amounts and in categories footprint. conditioning and and and home got. some things where

advertising As was in it and it overall points literally to June XX relates in services trends, was better April. marketing than

somebody at accurate. significantly not AMS said were than be in call I – had And an points the it looking last said, on think but point would was no. was minus I XX XXs April? low you lower that,

it unique but can on we're level I minus of say of in, we're show give to – But June July a these improvement to quarters AMS give in we pacing normally given sense, now seeing. you finished will where guess just the times, you you kind was. the don't points So, XX

to in confidence in the you we've just trends what now, months, from combine issues categories. people political the did to shows April. But those next we've give come far I got displacement with the So, in few advertising how are in

you Thank Very helpful. very much.

Alexia. Thanks,

question We'll from take Evans our Kyle Stephens. with next

my little Hey. I bit balance tier the for Thanks was a pacing tier and that number. July X question. versus X the outlook auto of your you you That for year? about have expectations follow-ups. have of some talk Could the kind definitely

but don't you fact April XX mean felt like along, and better the deeply I on it not still from below a wouldn't in but by July like as Kyle. than has improved a And doing is everything double-digit very I April, forecast June. have June we're not it if categories we're the by But, continued points improvement. it to Yeah, category, just more will. than bit, really median – by a more quite deeply, but category in following per se obviously, sequential points than

As than us. is on our the It's No, a all it not overall which what are our In that back. which X doing carry to tier And difference, they the the along day. good be way third the numbers, helping a continues pretty actually quarter, it's good largest earlier, X, X relates are AMS have speaks markets tier why and pretty tier said difference. that massive. take I X to and better a for trend, tier to I

that well in in we're seeing So, the addition to share increases markets as those referenced. I really

math years, that year XQ the XXXX in do housekeeping for think XX% is so And Except enough call, I have of for have that you those (XX:XX:XX)? is XXXX. simple some close said you that XX% next that you it. two for Got renewing on the just about in

Do sorry. XX% subs our I'm XXXX? you think in Kyle, of

Yes.

asking? Those you're

Yes.

No, it's XX%. to closer

had – had... you You

In the closer (XX:XX:XX). XXXX, we'll to XX%

will Sorry, in million last the still out this Is... year, year? you $XX which million million had hanging means $XX there $XX be year,

No, no.

three-year is I assuming deal? you that You're assuming – might I think be think what everything a is

I'm what exactly asking. That's

million, not So $XX $XX million? it's

Yeah.

not. they're So

be right, right. at end – are based now at end that's million now the estimate, on what $XX So, XXXX. the of We're few could points off – and by right. but that's then, on now, based the of XXXX sub-trends by Right looking right between

station it. leverage be would Got looking where lastly, then Got acquisitions? it. you other about Thanks. would before Thank get you serious to at you. want And your

I constraining good really not to us. is a That's do question. which leverage, very think, has, Actually, it less with

our to M&A, It the firepower. of of valuations feasible plenty covenants doing are? given in in this there's have policy either and and volatility? to number and of a to much But debt sort lower time. tuck-ins they how at or more with do Obviously, there's levels reason rapidly quarter. well we our or But be that get conducted terms a of had has themselves leverage. particularly saw nothing valuations philosophical as last covenant us in environment constrains can We to prior are which how this leverage market COVID-XX, priority no need fairly to frankly down been in from from March is And point getting you with terms paying doing particular we

you. Great. Thank

take from question Research. our next We'll Doug Huber with Arthur

Did – the Victoria, say six year? full on you XX-plus-percent year they're Yeah. revenues, continue mid-XXs-percent for months. to the you subscription for say up

Yes.

comfortable still Yes. we with our said and prior prior were just we That was had guide that guide.

And we'll Research. next Barrington take Jim with our Goss from question

step-down two? of the to over one, and what you have to the on year talk you idea, further a do next the or expect about things, further reductions you get just of Can Couple going in the pace Okay. leverage covenants. leverage

of clarify, to just, the of just we I my in comments And down. said first Sure. that renegotiated Jim, beginning step June, a our extension so in XX-month

of XX that instead after step-downs of from we of X.X in it and the terms restrictions then the covenant at So, end occur be that to times be months going normally out, times the scheduled X.XX will that. will September,

at right times where now, saw the In this are end X.X of we terms we were at you quarter. of

pace of just the will from revolver be we the But expect be drawn And are of interest of and moment, We political standpoint. cost the the accelerated lot because the low. quickly. leaning amount have already into at is or X.X a de-leveraging fairly restarted cash on predominantly And to a that we and at less. depending pay-downs, availability times

capabilities Can you year a a might do another more for less where non-political year? hold much year will that sort or the be next of that in little

upfront. paid-up Remember, won't politicals the given cash produced. that's necessarily pay pace We haven't it – to at down we'll debt, the continue be

But paid we've to the the cash it pay of not in of as at the will but only be debt. the high pace of down environment margin a it's terms So, but upfront, best the is depending is on current business. capital just said use

that most talked is Texas Okay. And positioning advantage do fairly the And getting now though more is a about advantage effectively, the with to the you you creates doing? so take you Generally, mention states presidential out think you you get do talk to there about can saying the also ads? consistent there swing crowding for the that and year-to-year in the what displacement political are little expectations, so, states ad you're you race cycle. your it? you over to tend take did could Is be that political portfolio you're of to swing then or to say of anything able And some inertia environment more score?

have may the relative, spending so which just Jim. take manage every also the that, of I'll vast year makes On last the it on I think, really a But it's pricing widespread. out, spending and year. get Hey, it harder We're continue, inventory. some in to one. crowd actually disproportionate better handful at years, we to you this markets, of a

we're out but years a going better to be be of little to crowd the seen. able to previous because manage think it the disbursement than of I inventory, remains

footprint, yes. the to relates it As

So, And other competitive pretty state tend about for to state and to seats, had Iowa House now where Pennsylvania, several place they're the now is worried Republicans – for presidential, – swing on then, seats. tend Senate, because to a swing run for a to decide if like re-election their state a then tends not (XX:XX:XX) spending be States is It a right right? be Texas

be big will in itself be us, I year for House the factor and election. think every could So, a even

see on every that mid-term to $XXX and back going go – prior – numbers So, did going million to XXXX, that that's you're in think going strong we to you forward. I be

any the with the would Okay. the Last be And is win win? there be versus would say, what Republican thing. table, once any Democrat in a likelihood of on election Changes post-election, FCC the over? is issues addressed

both I to also the believe It's as aisle. that, don't You to so think Commissioner, tell. obviously, sides goes dynamics know, little do I to too on – early a bit in Jim, I'm be FCC there do got the floor different has optimistic it'd the the and it's on regulatory But with who younger for of typically that staffers that consolidation Commission some makes is been of eighth which less side, younger the the in past on Congress that why needs on matters in both Democratic the and helpful understands sense.

banking not on in go little our But optimistic good, NAB, managing takes a over. which party trade that. ahead a anything we'll we're of recent relative in overly on maybe very years, the administration cap, this association, has So, But on at and to point see. regardless good job In the play. done whichever is

right. Thanks. All

take next question from... We'll our

Jim. you, Thank

...Steven Wells Fargo. Cahall with

comp. are on get your impacting to whether love I'd reverse or retrans sub-declines view Thanks.

then year, that thinking XX% probably Just did this at of that and about last end the year. XX% you getting you're into the

MVPDs Or of, usual? seeming networks other business just, So, a is either that it little national convivial? aggressive? as kind more any less Or making is

MVPDs negotiate asking on both You're and with with negotiating networks? Steven, equation, sides and the of

on those Yeah. And discussions impacted declines both to understand the has, acceleration just of of, sides. kind sub try if

Yeah.

affiliates strong years, is of dependent only linear seen that value trends on recent – the Big say of the just anything I of I'll I say, right? in we existence haven't negotiated system think Big since But so, any would as the simply sub has is yet so, what started. size meaningful Four. So, increased, we've proposition COVID Four increased,

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the side. like people are on eyes. think a forget MVPDs, consumers' a What you chances. ARPU the So, cable non-necessary revenue for at they of we lot of a lot, channels They're if I in look the lot our shedding the

Yeah.

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peers Great. And your sports maybe and NFL about bit? of of then that or could a talk college as have you little sales. quantified Some a percentage revenue ad

just there least as to to love given side get college would color some So on bit aspect the at sports a that to that's of be little shakiness might business? material advertising your a whether

for I say pretty is Yeah. us. college immaterial would

quarter so demand all the be we didn't of fourth third would for live year. of – mentioned our single all lot live okay, – of basically For I also a done in got for sports course revenue is we've have. NFL, the and to we're But total very now a the we've a there sports football new as used in digits, earlier, low

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got they've in NBC, especially offset additional the lot So a we've we all third events of because fourth some and got these right, quarter. own because

which in know that much I one and spending could is then this sorry you prepared versus increase I like last or for higher price? a And missed much maybe talk How me advertising, PAC issue if gets typically spending? about remarks, candidate political just the the your in

– mean mean I You a guide? increase, of mean, percentage you the it our of

or one. Yeah. Qualitative Yeah. yeah, quantitative either

the how understand that this that? and of of to kind is circles this much trying much candidate around fundraising Just like, all other money how of

spending I for every mean, candidates, includes look, the majority issues what year we right. of say say it will technically be – issue, when that we issue, PAC

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so, And will the vast be... majority

Yeah.

let's Let's spending. call call it PAC it PAC,

amount of dollars. a like We and with every ballot will also adds see that we significant a year state-wide actually amount significant of do up to issues,

you. Thank Great.

question last Huber Partners with our Craig take Huber we'll And from Research

Great. Thank you. I few a questions. got

to acquisitions Just was number the clear, be for year-over-year? June the that the in quarter, say adjusted XX%, XX% the forma ad revenue number, core down pro

lower than little A that. a than little just lower Doug, that

Okay. And then...

XX%, XX%. did What you (XX:XX:XX) say?

to I XX% XX%. said,

that. Yeah. Low end to

in you. there, that number And Thank assume does next month July, you that end. I say the XX% that small Low for my then when mentioned of question, down number? acquisitions – you the include the

that basis. acquisitions. are The I'm pro the AMS pro just numbers forma for for same-store is sorry, yes, gave the forma you acquisitions, I

July So, same-store acquisitions. that point XX the minus is in with basis

concludes This you. today's.... Thank

final. ...and that's the

This you. Thank concludes today's question and...

Shelby. you, Go ahead, Thank you. operator. Thank

any now speakers conference back turn the for the would remarks. to additional I like to over

Shelby. Thanks,

our protecting extraordinary colleagues TEGNA and again, the once supporting for I And great again our again, Just their during to work employees, all of want serving our thanking courage conclude, communities. times. country to reiterate our our to their across commitment clients, and

before, strategy, so. and will create and on We continue on local information said audiences to are important long-term to mission our our do to news and executing as serve with I entertainment, value

reach out Thank you today, have Kuckelman, questions additional unable we to please you. Doug any to XXX-XXX-XXXX. cover were If

your call. participation. This concludes Thank today's for you

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