TEGNA Inc. Reports 2015 Fourth Quarter and Full Year Results
Highlights for the full year include the following:
-
Overall company revenue totaled
$3.05 billion , growth of 2 percent on a pro forma, constant currency basis despite the absence of a record$200 million of Olympic and political spending in 2014 -
Adjusted EBITDA totaled
$1.06 billion , an increase of 16 percent - Adjusted EBITDA margin of 35 percent, unchanged from 2014 despite the absence of substantial Olympic and political spending
-
Successfully completed long-term affiliation agreements with
CBS andNBC and several significant retransmission agreements
Highlights for the fourth quarter include the following:
-
GAAP earnings from continuing operations of
$0.69 per diluted share. Non-GAAP earnings from continuing operations of$0.53 per diluted share, an 8 percent year-over-year increase -
Overall company revenue decline of 3 percent on a pro forma, constant
currency basis reflecting primarily the absence of record political
spending of
$92.4 million in the same quarter last year - Media Segment revenues up 12 percent excluding incremental political advertising
- Digital Segment revenues over 2 percent higher on a pro forma, constant currency basis
-
Adjusted EBITDA totaled
$305.8 million resulting in an Adjusted EBITDA margin of 38 percent -
Free cash flow and proceeds from headquarter building sale totaled
$358 million -
Building sale proceeds used to add
$75 million to $750 million share repurchase authorization and redeem$180 million of fixed-rate debt
Martore continued, “We have accomplished a great deal over the last six months and we are well on our way to achieving the objectives we set forth at our Investor Day in June. We are more certain than ever that we have built a strong foundation for long-term growth and success. This, coupled with tail winds associated with the upcoming elections and 2016 Olympic Games, are expected to result in a banner year for TEGNA.”
In our ongoing effort to focus and streamline our operations, during the
quarter we divested substantially all of the businesses in the Other
Segment, primarily
Beginning with 2016, we converted to a calendar fiscal year from a
52-week fiscal year to better reflect our media and digital peer group.
In order to effectuate the change, the fourth quarter in 2015 was
extended four days to
On
The results for the fourth quarter of 2015 and the year-to-date period
include results for Cars.com, which we fully acquired on
Unless otherwise noted, financial figures discussed below are on a Non-GAAP basis.
FOURTH QUARTER
CONTINUING OPERATIONS
The following table summarizes the year-over-year changes in select financial categories for both GAAP and Non-GAAP measures.
GAAP | Non-GAAP | ||||||||||||||
Fourth |
Fourth |
Fourth |
Fourth |
||||||||||||
Operating revenue | $ | 805,264 | $ | 842,046 | $ | 805,264 | $ | 842,046 | |||||||
Operating expense | 478,369 | 614,706 | 549,260 | 574,899 | |||||||||||
Operating income | $ | 326,895 | $ | 227,340 | $ | 256,004 | $ | 267,147 | |||||||
Income from continuing operations | $ | 155,942 | $ | 483,431 | $ | 119,334 | $ | 112,623 | |||||||
See Table 3 for reconciliations between the GAAP reported numbers to the Non-GAAP measure. | |||||||||||||||
In 2014's fourth quarter we achieved political revenue of
Fourth quarter operating expenses declined 4.5 percent reflecting lower
Digital Segment and corporate expenses and the absence of
publishing-related unallocated costs. Corporate expenses were
Reported operating income increased 43.8 percent from the fourth quarter
in 2014, due primarily to the gain on the sale of our corporate
headquarters. Operating income was
Adjusted EBITDA (a non-GAAP term detailed in Table 4) totaled
Special items in the fourth quarter of 2015 resulted in a GAAP benefit
of
FOURTH QUARTER
TEGNA MEDIA
In the fourth quarter, the Media Segment achieved double-digit increases
in retransmission fees and online revenues, as well as an increase in
core advertising. However, overall Media Segment revenues were down due
to the previously mentioned political advertising achieved in 2014. The
four extra days in the quarter contributed approximately
The following table summarizes the year-over-year changes in select Media Segment revenue categories.
Media Segment Revenue Detail | |||||||
(Dollars in thousands) | |||||||
Fourth Quarter |
Percentage change |
||||||
Core (Local & National) | $ | 296,325 | 7 | % | |||
Political | 10,525 | (89 | %) | ||||
Retransmission (a) | 119,944 | 27 | % | ||||
Online | 31,080 | 15 | % | ||||
Other | 4,359 | (16 | %) | ||||
Total | $ | 462,233 | (7 | %) | |||
(a) | Reverse compensation to networks is included as part of programming costs. | |
Media Segment operating expenses totaled
Based on current trends, we expect the growth in Media Segment revenues
for the first quarter of 2016 compared to the first quarter of 2015 to
be in the range of 10 percent to 12 percent driven by increases in
political advertising, retransmission revenue and digital revenue. The
Super Bowl aired on 6 fewer of our stations in 2016 compared to 2015,
moving from
FOURTH QUARTER
TEGNA DIGITAL
The following table reconciles Digital Segment revenues reported on a GAAP basis to revenues presented on a pro forma, constant currency basis (a non-GAAP measure).
Fourth Quarter | |||||||||||
2015 | 2014 |
Percentage |
|||||||||
Digital Segment Revenue | |||||||||||
Reported (GAAP Measure) | $ | 343,031 | $ | 347,215 | (1.2 | )% | |||||
Adjust for business sold | (3,736 | ) | (13,275 | ) |
*** |
||||||
Constant currency impact | — | (1,939 | ) |
*** |
|||||||
Total adjusted pro-forma revenue | $ | 339,295 | $ | 332,001 | 2.2 | % | |||||
Digital Segment operating revenues in the quarter reflected continued revenue growth at Cars.com offset by revenue declines at CareerBuilder and the impact from the sale of our PointRoll business. Digital Segment revenues were 2.2 percent higher on a pro forma, constant currency basis.
Revenue growth of 5.7 percent at Cars.com reflects higher retail revenues by Cars.com direct sales channel and national sales offset by the absence of wholesale price increases which will occur in the first quarter of 2016. Direct sales rose 10.1 percent reflecting increases in unit volumes and revenue per dealer driven by new product sales. National revenue, primarily display advertising sold to auto manufacturers, was up 11.7 percent due, in part, to heavier traffic to mobile properties.
CareerBuilder revenue in the fourth quarter continues to be impacted by the transition to a greater concentration of SaaS products in conjunction with the strategic decision to reduce sales of certain lower margin advertising and services products as well as unfavorable exchange rates. As a result, revenue from Human Capital Software Solutions was up 16.5 percent in the quarter. CareerBuilder revenue was 4.2 percent lower on a constant currency basis.
Digital Segment operating income totaled
FOURTH QUARTER
NON-OPERATING AND
CASH FLOW ITEMS
Interest expense totaled
The substantial decline in reported other non-operating items reflects
the
The Non-GAAP fourth quarter 2015 effective tax rate decreased by 3.4 percentage points due to a reduction in the deferred tax liability recorded on our balance sheet as of year end. When these deferred tax items are reported on our state tax returns in the future, they will be subject to a lower tax rate than had been recorded previously, which creates a deferred tax benefit in 2015, reducing our effective tax rate.
Cash flow from operating activities for the fourth quarter was
FULL YEAR 2015
CONTINUING OPERATIONS
Total operating revenues for the full year totaled
Operating expenses were
Adjusted EBITDA was
* * * *
As previously announced, the company will hold an earnings conference
call at
About
Certain statements in this press release may be forward looking in
nature or “forward looking statements” as defined in the Private
Securities Litigation Reform Act of 1995. The forward looking statements
contained in this press release are subject to a number of risks, trends
and uncertainties that could cause actual performance to differ
materially from these forward looking statements. A number of those
risks, trends and uncertainties are discussed in the company's
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||
TEGNA Inc. |
|||||||||||
Unaudited, in thousands (except per share amounts) |
|||||||||||
Table No. 1 | |||||||||||
Fourth Quarter |
Fourth Quarter 2014 |
% Increase (Decrease) |
|||||||||
(recast) | |||||||||||
Net operating revenues: | |||||||||||
Media | $ | 462,233 | $ | 494,831 | (6.6 | ) | |||||
Digital | 343,031 | 347,215 | (1.2 | ) | |||||||
Total | 805,264 | 842,046 | (4.4 | ) | |||||||
Operating expenses: | |||||||||||
Cost of sales and operating expenses, exclusive of depreciation | 232,555 | 254,898 | (8.8 | ) | |||||||
Selling, general and administrative expenses, exclusive of depreciation | 273,571 | 269,680 | 1.4 | ||||||||
Depreciation | 20,051 | 25,470 | (21.3 | ) | |||||||
Amortization of intangible assets | 28,128 | 29,312 | (4.0 | ) | |||||||
Facility consolidation and asset impairment charges | (75,936 | ) | 35,346 | (314.8 | ) | ||||||
Total | 478,369 | 614,706 | (22.2 | ) | |||||||
Operating income | 326,895 | 227,340 | 43.8 | ||||||||
Non-operating (expense) income: | |||||||||||
Equity loss in unconsolidated investees, net | (941 | ) | (5,330 | ) | (82.3 | ) | |||||
Interest expense | (66,758 | ) | (73,384 | ) | (9.0 | ) | |||||
Other non-operating items | (6,182 | ) | 444,165 | (101.4 | ) | ||||||
Total | (73,881 | ) | 365,451 | (120.2 | ) | ||||||
Income before income taxes | 253,014 | 592,791 | (57.3 | ) | |||||||
Provision for income taxes | 81,609 | 90,422 | (9.7 | ) | |||||||
Income from continuing operations | 171,405 | 502,369 | (65.9 | ) | |||||||
Net income attributable to noncontrolling interests | (15,463 | ) | (18,938 | ) | (18.3 | ) | |||||
Net income from continuing operations attributable to TEGNA Inc. | $ | 155,942 | $ | 483,431 | (67.7 | ) | |||||
Earnings from continuing operations per share: | |||||||||||
Basic | $ | 0.71 | $ | 2.14 | (66.8 | ) | |||||
Diluted | $ | 0.69 | $ | 2.09 | (67.0 | ) | |||||
Weighted average number of common shares outstanding: | |||||||||||
Basic | 220,768 | 226,046 | (2.3 | ) | |||||||
Diluted | 225,129 | 231,157 | (2.6 | ) | |||||||
Dividends declared per share | $ | 0.14 | $ | 0.20 | (30.0 | ) | |||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
TEGNA Inc. |
|||||||||||
Unaudited, in thousands (except per share amounts) |
|||||||||||
Table No. 1 (continued) | |||||||||||
Year Ended |
Year Ended |
% Increase |
|||||||||
(recast) | |||||||||||
Net operating revenues: | |||||||||||
Media | $ | 1,682,144 | $ | 1,691,866 | (0.6 | ) | |||||
Digital | 1,368,801 | 934,275 | 46.5 | ||||||||
Total | 3,050,945 | 2,626,141 | 16.2 | ||||||||
Operating expenses: | |||||||||||
Cost of sales and operating expenses, exclusive of depreciation | 923,336 | 954,990 | (3.3 | ) | |||||||
Selling, general and administrative expenses, exclusive of depreciation | 1,068,221 | 766,854 | 39.3 | ||||||||
Depreciation | 90,803 | 85,866 | 5.7 | ||||||||
Amortization of intangible assets | 114,284 | 65,971 | 73.2 | ||||||||
Facility consolidation and asset impairment charges | (58,857 | ) | 44,961 | (230.9 | ) | ||||||
Total | 2,137,787 | 1,918,642 | 11.4 | ||||||||
Operating income | 913,158 | 707,499 | 29.1 | ||||||||
Non-operating (expense) income: | |||||||||||
Equity income (loss) in unconsolidated investees, net | (5,064 | ) | 151,462 | (103.3 | ) | ||||||
Interest expense | (273,629 | ) | (272,668 | ) | 0.4 | ||||||
Other non-operating items | (11,529 | ) | 404,403 | (102.9 | ) | ||||||
Total | (290,222 | ) | 283,197 | (202.5 | ) | ||||||
Income before income taxes | 622,936 | 990,696 | (37.1 | ) | |||||||
Provision for income taxes | 202,314 | 234,471 | (13.7 | ) | |||||||
Income from continuing operations | 420,622 | 756,225 | (44.4 | ) | |||||||
Net income attributable to noncontrolling interests | (63,164 | ) | (68,289 | ) | (7.5 | ) | |||||
Net income from continuing operations attributable to TEGNA Inc. | $ | 357,458 | $ | 687,936 | (48.0 | ) | |||||
Earnings from continuing operations per share: | |||||||||||
Basic | $ | 1.59 | $ | 3.04 | (47.7 | ) | |||||
Diluted | $ | 1.56 | $ | 2.97 | (47.5 | ) | |||||
Weighted average number of common shares outstanding: | |||||||||||
Basic | 224,688 | 226,292 | (0.7 | ) | |||||||
Diluted | 229,721 | 231,907 | (0.9 | ) | |||||||
Dividends declared per share | $ | 0.68 | $ | 0.80 | (15.0 | ) | |||||
BUSINESS SEGMENT INFORMATION | |||||||||||
TEGNA Inc. |
|||||||||||
Unaudited, in thousands of dollars |
|||||||||||
Table No. 2 | |||||||||||
Fourth Quarter |
Fourth Quarter |
% Increase |
|||||||||
(recast) | |||||||||||
Net operating revenues: | |||||||||||
Media | $ | 462,233 | $ | 494,831 | (6.6 | ) | |||||
Digital | 343,031 | 347,215 | (1.2 | ) | |||||||
Total | $ | 805,264 | $ | 842,046 | (4.4 | ) | |||||
Operating income (net of depreciation, amortization and facility consolidation and asset impairment charges): | |||||||||||
Media | $ | 200,680 | $ | 243,179 | (17.5 | ) | |||||
Digital | 53,924 | 30,905 | 74.5 | ||||||||
Corporate | (17,601 | ) | (17,801 | ) | (1.1 | ) | |||||
Net gain on sale of corporate headquarters building | 89,892 | — | *** | ||||||||
Unallocated costs (c) | — | (28,943 | ) | (100.0 | ) | ||||||
Total | $ | 326,895 | $ | 227,340 | 43.8 | ||||||
Depreciation, amortization and facility consolidation and asset impairment charges: | |||||||||||
Media | $ | 20,173 | $ | 26,007 | (22.4 | ) | |||||
Digital | 40,857 | 62,098 | (34.2 | ) | |||||||
Corporate | (88,787 | ) | 2,023 | *** | |||||||
Total | $ | (27,757 | ) | $ | 90,128 | (130.8 | ) | ||||
Adjusted EBITDA (a): | |||||||||||
Media | $ | 224,474 | $ | 270,536 | (17.0 | ) | |||||
Digital | 96,205 | 96,114 | 0.1 | ||||||||
Corporate (b) | (14,846 | ) | (15,778 | ) | (5.9 | ) | |||||
Unallocated costs (c) | — | (28,943 | ) | (100.0 | ) | ||||||
Total | $ | 305,833 | $ | 321,929 | (5.0 | ) | |||||
(a) | "Adjusted EBITDA" is a non-GAAP measure used by management to measure, analyze and compare the performance of its business segment operations at a more detailed level and in a meaningful and consistent manner. The definition of "Adjusted EBITDA" is provided in the section "Use of Non-GAAP Information" and Table No. 4 provides reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP on the company's condensed consolidated statements of income. | |
(b) |
Includes non cash rent of $1.7 million as a result of the sale of the company's McLean, VA headquarters. |
|
(c) | Unallocated expenses represent certain expenses that historically were allocated to the former Publishing Segment but that could not be allocated to discontinued operations because they were not clearly and specifically identifiable to the spun-off businesses, the accounting criteria for reclassification to discontinued operations. | |
BUSINESS SEGMENT INFORMATION | |||||||||||
TEGNA Inc. |
|||||||||||
Unaudited, in thousands of dollars |
|||||||||||
Table No. 2 (continued) | |||||||||||
Year Ended |
Year Ended |
% Increase |
|||||||||
(recast) | |||||||||||
Net operating revenues: | |||||||||||
Media | $ | 1,682,144 | $ | 1,691,866 | (0.6 | ) | |||||
Digital | 1,368,801 | 934,275 | 46.5 | ||||||||
Total | $ | 3,050,945 | $ | 2,626,141 | 16.2 | ||||||
Operating income (net of depreciation, amortization and facility consolidation and asset impairment charges): | |||||||||||
Media | $ | 714,237 | $ | 747,020 | (4.4 | ) | |||||
Digital | 229,386 | 119,908 | 91.3 | ||||||||
Corporate | (68,418 | ) | (71,256 | ) | (4.0 | ) | |||||
Net gain on sale of corporate headquarters building | 89,892 | — | *** | ||||||||
Unallocated costs (c) | (51,939 | ) | (88,173 | ) | (41.1 | ) | |||||
Total | $ | 913,158 | $ | 707,499 | 29.1 | ||||||
Depreciation, amortization and facility consolidation and asset impairment charges: | |||||||||||
Media | $ | 81,665 | $ | 94,129 | (13.2 | ) | |||||
Digital | 146,907 | 91,967 | 59.7 | ||||||||
Corporate | (82,342 | ) | 10,702 | (869.4 | ) | ||||||
Total | $ | 146,230 | $ | 196,798 | (25.7 | ) | |||||
Adjusted EBITDA (a): | |||||||||||
Media | $ | 787,162 | $ | 844,880 | (6.8 | ) | |||||
Digital | 379,889 | 214,986 | 76.7 | ||||||||
Corporate (b) | (59,218 | ) | (60,554 | ) | (2.2 | ) | |||||
Unallocated costs (c) | (51,939 | ) | (88,173 | ) | (41.1 | ) | |||||
Total | $ | 1,055,894 | $ | 911,139 | 15.9 | ||||||
(a) | "Adjusted EBITDA" is a non-GAAP measure used by management to measure, analyze and compare the performance of its business segment operations at a more detailed level and in a meaningful and consistent manner. The definition of "Adjusted EBITDA" is provided in the section "Use of Non-GAAP Information" and Table No. 4 provides reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP on the company's condensed consolidated statements of income. | |
(b) |
Includes non cash rent of $1.7 million as a result of the sale of the company's McLean, VA headquarters. |
|
(c) | Unallocated expenses represent certain expenses that historically were allocated to the former Publishing Segment but that could not be allocated to discontinued operations because they were not clearly and specifically identifiable to the spun-off businesses, the accounting criteria for reclassification to discontinued operations. | |
USE OF NON-GAAP INFORMATION
The company uses non-GAAP financial performance and liquidity measures to supplement the financial information presented on a GAAP basis. These non-GAAP financial measures should not be considered in isolation from or as a substitute for the related GAAP measures, and should be read together with financial information presented on a GAAP basis.
The company discusses in this report non-GAAP financial performance measures that exclude from its reported GAAP results the impact of special items consisting of workforce restructuring charges, transformation items, non-cash asset impairment charges, certain gains and expenses recognized in operating and non-operating categories and charges/(credits) to our income tax provision. The company believes that such expenses, charges and gains are not indicative of normal, ongoing operations and their inclusion in results makes for more difficult comparisons between years and with peer group companies.
The company also discusses Adjusted EBITDA, a non-GAAP financial
performance measure that it believes offers a useful view of the overall
operation of its businesses. Adjusted EBITDA is defined as net income
from continuing operations attributable to
Management uses non-GAAP financial performance measures for purposes of evaluating business unit and consolidated company performance. The company therefore believes that each of the non-GAAP measures presented provides useful information to investors by allowing them to view our businesses through the eyes of management and the Board of Directors, facilitating comparison of results across historical periods and providing a focus on the underlying ongoing operating performance of its businesses. In addition, many of our peer group companies present similar non-GAAP measures so the presentation of such measures facilitates industry comparisons. Tabular reconciliations for the non-GAAP financial measures are contained in Tables 3 through 6 attached to this news release.
NON-GAAP FINANCIAL INFORMATION |
TEGNA Inc. |
Unaudited, in thousands of dollars (except per share amounts) |
Table No. 3 |
Reconciliations of certain line items impacted by special items to the most directly comparable financial measure calculated and presented in accordance with GAAP on the company's condensed consolidated statements of income follow: |
GAAP |
Special Items |
Non- |
||||||||||||||||||||||
Fourth |
Workforce |
Facility |
Non- |
Special tax |
Fourth |
|||||||||||||||||||
Cost of goods sold, exclusive of depreciation | $ | 232,555 | $ | (4,288 | ) | $ | — | $ | — | $ | — | $ | 228,267 | |||||||||||
Selling general and administrative expenses, exclusive of depreciation | 273,571 | (757 | ) | — | — | — | 272,814 | |||||||||||||||||
Facility consolidation and asset impairment | (75,936 | ) | — | 75,936 | — | — | — | |||||||||||||||||
Operating expenses | 478,369 | (5,045 | ) | 75,936 | — | — | 549,260 | |||||||||||||||||
Operating income | 326,895 | 5,045 | (75,936 | ) | — | — | 256,004 | |||||||||||||||||
Other non-operating items | (6,182 | ) | — | — | 8,829 | — | 2,647 | |||||||||||||||||
Total non-op (expense) income | (73,881 | ) | — | — | 8,829 | — | (65,052 | ) | ||||||||||||||||
Income before income taxes | 253,014 | 5,045 | (75,936 | ) | 8,829 | — | 190,952 | |||||||||||||||||
Provision for income taxes | 81,609 | 1,961 | (32,140 | ) | 3,442 | 1,283 | 56,155 | |||||||||||||||||
Net income from continuing operations attributable to TEGNA | 155,942 | 3,084 | (43,796 | ) | 5,387 | (1,283 | ) | 119,334 | ||||||||||||||||
Net income from continuing operations per share-diluted (a) | $ | 0.69 | $ | 0.01 | $ | (0.19 | ) | $ | 0.02 | $ | (0.01 | ) | $ | 0.53 | ||||||||||
(a) total per share does not sum due to rounding | ||||||||||||||||||||||||
GAAP |
Special Items |
Non- |
||||||||||||||||||||||
Fourth |
Workforce |
Facility |
Non- |
Special tax |
Fourth |
|||||||||||||||||||
(recast) | (recast) | |||||||||||||||||||||||
Cost of goods sold, exclusive of depreciation | $ | 254,898 | $ | (3,792 | ) | $ | — | $ | — | $ | — | $ | 251,106 | |||||||||||
Selling general and administrative expenses, exclusive of depreciation | 269,680 | (669 | ) | — | — | — | 269,011 | |||||||||||||||||
Facility consolidation and asset impairment | 35,346 | — | (35,346 | ) | — | — | — | |||||||||||||||||
Operating expenses | 614,706 | (4,461 | ) | (35,346 | ) | — | — | 574,899 | ||||||||||||||||
Operating income | 227,340 | 4,461 | 35,346 | — | — | 267,147 | ||||||||||||||||||
Equity income (loss) in unconsolidated investees, net | (5,330 | ) | — | — | 4,805 | — | (525 | ) | ||||||||||||||||
Other non-operating items | 444,165 | — | — | (444,045 | ) | — | 120 | |||||||||||||||||
Total non-op (expense) income | 365,451 | — | — | (439,240 | ) | — | (73,789 | ) | ||||||||||||||||
Income before income taxes | 592,791 | 4,461 | 35,346 | (439,240 | ) | — | 193,358 | |||||||||||||||||
Provision for income taxes | 90,422 | 1,660 | 3,928 | (163,342 | ) | 129,129 | 61,797 | |||||||||||||||||
Net income from continuing operations attributable to TEGNA | 483,431 | 2,801 | 31,418 | (275,898 | ) | (129,129 | ) | 112,623 | ||||||||||||||||
Net income from continuing operations per share - diluted | $ | 2.09 | $ | 0.01 | $ | 0.14 | $ | (1.19 | ) | $ | (0.56 | ) | $ | 0.49 | ||||||||||
NON-GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||
TEGNA Inc. |
||||||||||||||||||||||||
Unaudited, in thousands of dollars (except per share amounts) |
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Table No. 3 (continued) | ||||||||||||||||||||||||
GAAP |
Special Items |
Non-GAAP |
||||||||||||||||||||||
Year Ended |
Workforce |
Facility |
Non- |
Special tax |
Year Ended |
|||||||||||||||||||
Cost of goods sold, exclusive of depreciation | $ | 923,336 | $ | (6,430 | ) | $ | 12,709 | $ | — | $ | — | $ | 929,615 | |||||||||||
Selling general and administrative expenses, exclusive of depreciation | 1,068,221 | (1,135 | ) | — | — | — | 1,067,086 | |||||||||||||||||
Facility consolidation and asset impairment | (58,857 | ) | — | 58,857 | — | — | — | |||||||||||||||||
Operating expenses | 2,137,787 | (7,565 | ) | 71,566 | — | — | 2,201,788 | |||||||||||||||||
Operating income | 913,158 | 7,565 | (71,566 | ) | — | — | 849,157 | |||||||||||||||||
Other non-operating items | (11,529 | ) | — | — | 10,282 | — | (1,247 | ) | ||||||||||||||||
Total non-op (expense) income | (290,222 | ) | — | — | 10,282 | — | (279,940 | ) | ||||||||||||||||
Income before income taxes | 622,936 | 7,565 | (71,566 | ) | 10,282 | — | 569,217 | |||||||||||||||||
Provision for income taxes | 202,314 | 2,899 | (30,514 | ) | (2,295 | ) | 3,305 | 175,709 | ||||||||||||||||
Net income from continuing operations attributable to TEGNA | 357,458 | 4,666 | (41,052 | ) | 12,577 | (3,305 | ) | 330,344 | ||||||||||||||||
Net income from continuing operations per share - diluted (a) | $ | 1.56 | $ | 0.02 | $ | (0.17 | ) | $ | 0.05 | $ | (0.01 | ) | $ | 1.44 | ||||||||||
(a) total per share does not sum due to rounding | ||||||||||||||||||||||||
GAAP |
Special Items |
Non-GAAP |
||||||||||||||||||||||
Year Ended |
Workforce |
Facility |
Non- |
Special tax |
Year Ended |
|||||||||||||||||||
(recast) | (recast) | |||||||||||||||||||||||
Cost of goods sold, exclusive of depreciation | $ | 954,990 | $ | (5,816 | ) | $ | — | $ | — | $ | — | $ | 949,174 | |||||||||||
Selling and general and administrative expenses, exclusive of depreciation | 766,854 | (1,026 | ) | — | — | — | 765,828 | |||||||||||||||||
Amortization of intangible assets | 65,971 | — | (4,480 | ) | — | — | 61,491 | |||||||||||||||||
Facility consolidation and asset impairment | 44,961 | — | (44,961 | ) | — | — | — | |||||||||||||||||
Operating expenses | 1,918,642 | (6,842 | ) | (49,441 | ) | — | — | 1,862,359 | ||||||||||||||||
Operating income | 707,499 | 6,842 | 49,441 | — | — | 763,782 | ||||||||||||||||||
Equity income in unconsolidated investees, net | 151,462 | — | — | (137,199 | ) | — | 14,263 | |||||||||||||||||
Other non-operating items | 404,403 | — | — | (404,674 | ) | — | (271 | ) | ||||||||||||||||
Total non-op (expense) income | 283,197 | — | — | (541,873 | ) | — | (258,676 | ) | ||||||||||||||||
Income before income taxes | 990,696 | 6,842 | 49,441 | (541,873 | ) | — | 505,106 | |||||||||||||||||
Provision for income taxes | 234,471 | 2,545 | 9,059 | (203,234 | ) | 109,933 | 152,774 | |||||||||||||||||
Net income from continuing operations attributable to TEGNA | 687,936 | 4,297 | 40,382 | (338,639 | ) | (109,933 | ) | 284,043 | ||||||||||||||||
Net income from continuing operations per share - diluted (a) | $ | 2.97 | $ | 0.02 | $ | 0.17 | $ | (1.46 | ) | $ | (0.47 | ) | $ | 1.22 | ||||||||||
(a) total per share does not sum due to rounding | ||||||||||||||||||||||||
NON-GAAP FINANCIAL INFORMATION |
TEGNA Inc. |
Unaudited, in thousands of dollars |
Table No. 4 |
Reconciliations of Adjusted EBITDA to the most directly comparable financial measure calculated and presented in accordance with GAAP on the company's condensed consolidated statements of income follow: |
Fourth Quarter 2015: | ||||||||||||||||||
Media | Digital | Corporate |
Consolidated |
|||||||||||||||
Net income from continuing operations attributable to TEGNA Inc. (GAAP basis) | $ | 155,942 | ||||||||||||||||
Net income attributable to noncontrolling interests | 15,463 | |||||||||||||||||
Provision for income taxes | 81,609 | |||||||||||||||||
Interest expense | 66,758 | |||||||||||||||||
Equity loss in unconsolidated investees, net | 941 | |||||||||||||||||
Other non-operating items | 6,182 | |||||||||||||||||
Operating income (GAAP basis) | $ | 200,680 | $ | 53,924 | $ | 72,291 | $ | 326,895 | ||||||||||
Workforce restructuring | 3,621 | 1,424 | — | 5,045 | ||||||||||||||
Other transformation costs | 3,006 | 1,988 | 962 | 5,956 | ||||||||||||||
Asset impairment charges |
— |
8,000 | — | 8,000 | ||||||||||||||
Gain on sale of Corporate HQ building, net |
— |
— |
(89,892 | ) | (89,892 | ) | ||||||||||||
Adjusted operating income (non-GAAP basis) | 207,307 | 65,336 | (16,639 | ) | 256,004 | |||||||||||||
Depreciation | 11,676 | 8,232 | 143 | 20,051 | ||||||||||||||
Amortization | 5,491 | 22,637 | — | 28,128 | ||||||||||||||
Non-cash rent | — | — | 1,650 | 1,650 | ||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 224,474 | $ | 96,205 | $ | (14,846 | ) | $ | 305,833 | |||||||||
Fourth Quarter 2014 (recast): | ||||||||||||||||||
Media | Digital | Corporate |
Unallocated |
Consolidated |
||||||||||||||
Net income from continuing operations attributable to TEGNA Inc. (GAAP basis) | $ | 483,431 | ||||||||||||||||
Net income attributable to noncontrolling interests | 18,938 | |||||||||||||||||
Provision for income taxes | 90,422 | |||||||||||||||||
Interest expense | 73,384 | |||||||||||||||||
Equity loss in unconsolidated investees, net | 5,330 | |||||||||||||||||
Other non-operating items | (444,165 | ) | ||||||||||||||||
Operating income (GAAP basis) | $ | 243,179 | $ | 30,905 | $ | (17,801 | ) | $ | (28,943 | ) | $ | 227,340 | ||||||
Workforce restructuring | 1,350 | 3,111 | — | — | 4,461 | |||||||||||||
Other transformation costs | 4,104 | — | — | — | 4,104 | |||||||||||||
Asset impairment charges | — | 31,242 | — | — | 31,242 | |||||||||||||
Adjusted operating income (non-GAAP basis) | 248,633 | 65,258 | (17,801 | ) | (28,943 | ) | 267,147 | |||||||||||
Depreciation | 15,860 | 7,587 | 2,023 | — | 25,470 | |||||||||||||
Amortization | 6,043 | 23,269 | — | — | 29,312 | |||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 270,536 | $ | 96,114 | $ | (15,778 | ) | $ | (28,943 | ) | $ | 321,929 | ||||||
NON-GAAP FINANCIAL INFORMATION | |||||||||||||||||||
TEGNA Inc. |
|||||||||||||||||||
Unaudited, in thousands of dollars |
|||||||||||||||||||
Table No. 4 (continued) | |||||||||||||||||||
Year Ended 2015: | |||||||||||||||||||
Media | Digital | Corporate |
Unallocated |
Consolidated |
|||||||||||||||
Net income from continuing operations attributable to TEGNA Inc. (GAAP basis) | $ | 357,458 | |||||||||||||||||
Net income attributable to noncontrolling interests | 63,164 | ||||||||||||||||||
Provision for income taxes | 202,314 | ||||||||||||||||||
Interest expense | 273,629 | ||||||||||||||||||
Equity loss in unconsolidated investees, net | 5,064 | ||||||||||||||||||
Other non-operating items | 11,529 | ||||||||||||||||||
Operating income (GAAP basis) | $ | 714,237 | $ | 229,386 | $ | 21,474 | $ | (51,939 | ) | $ | 913,158 | ||||||||
Workforce restructuring | 3,969 | 3,596 | — | — | 7,565 | ||||||||||||||
Other transformation items | (4,631 | ) | 13,095 | 962 | — | 9,426 | |||||||||||||
Asset impairment charges | — | 8,900 | — | — | 8,900 | ||||||||||||||
Gain on sale of Corporate HQ building, net |
— |
— |
(89,892 | ) | — | (89,892 | ) | ||||||||||||
Adjusted operating income (non-GAAP basis) | 713,575 | 254,977 | (67,456 | ) | (51,939 | ) | 849,157 | ||||||||||||
Depreciation | 51,131 | 33,084 | 6,588 | — | 90,803 | ||||||||||||||
Amortization | 22,456 | 91,828 | — | — | 114,284 | ||||||||||||||
Non-cash rent | — | — | 1,650 | — | 1,650 | ||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 787,162 | $ | 379,889 | $ | (59,218 | ) | $ | (51,939 | ) | $ | 1,055,894 | |||||||
Year Ended 2014 (recast): | |||||||||||||||||||
Media | Digital | Corporate |
Unallocated |
Consolidated |
|||||||||||||||
Net income from continuing operations attributable to TEGNA Inc. (GAAP basis) | $ | 687,936 | |||||||||||||||||
Net income attributable to noncontrolling interests | 68,289 | ||||||||||||||||||
Provision for income taxes | 234,471 | ||||||||||||||||||
Interest expense | 272,668 | ||||||||||||||||||
Equity income in unconsolidated investees, net | (151,462 | ) | |||||||||||||||||
Other non-operating items | (404,403 | ) | |||||||||||||||||
Operating income (GAAP basis) | $ | 747,020 | $ | 119,908 | $ | (71,256 | ) | $ | (88,173 | ) | $ | 707,499 | |||||||
Workforce restructuring | 3,731 | 3,111 | — | — | 6,842 | ||||||||||||||
Other transformation costs | 18,199 | — | — | — | 18,199 | ||||||||||||||
Asset impairment charges | — | 31,242 | — | — | 31,242 | ||||||||||||||
Adjusted operating income (non-GAAP basis) | 768,950 | 154,261 | (71,256 | ) | (88,173 | ) | 763,782 | ||||||||||||
Depreciation | 51,813 | 23,351 | 10,702 | — | 85,866 | ||||||||||||||
Adjusted amortization (non-GAAP basis) | 24,117 | 37,374 | — | — | 61,491 | ||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 844,880 | $ | 214,986 | $ | (60,554 | ) | $ | (88,173 | ) | $ | 911,139 | |||||||
NON-GAAP FINANCIAL INFORMATION |
TEGNA Inc. |
Unaudited, in thousands of dollars |
Table No. 5 |
"Free cash flow" is a non-GAAP liquidity measure used in addition to and in conjunction with results presented in accordance with GAAP. Free cash flow should not be relied upon to the exclusion of GAAP financial measures. |
Fourth Quarter |
Year Ended |
|||||||
Net cash flow from operating activities | $ | 133,873 | $ | 613,106 | ||||
Purchase of property, plant and equipment | (43,870 | ) | (118,767 | ) | ||||
Voluntary pension employer contribution | — | 100,000 | ||||||
Tax benefit for voluntary pension employer contribution | — | (37,200 | ) | |||||
Free cash flow | $ | 90,003 | $ | 557,139 | ||||
TAX RATE CALCULATION | ||||||||||||||||
TEGNA Inc. |
||||||||||||||||
Unaudited, in thousands of dollars |
||||||||||||||||
Table No. 6 | ||||||||||||||||
The calculations of the company's effective tax rate on a GAAP and non-GAAP basis are below: | ||||||||||||||||
GAAP | Non-GAAP | |||||||||||||||
Fourth Quarter |
Fourth Quarter |
Fourth Quarter |
Fourth Quarter |
|||||||||||||
(recast) | (recast) | |||||||||||||||
Income before taxes (per Table 3) | $ | 253,014 | $ | 592,791 | $ | 190,952 | 193,358 | |||||||||
Noncontrolling interests (per Table 1) | (15,463 | ) | (18,938 | ) | (15,463 | ) | (18,938 | ) | ||||||||
Income before taxes attributable to TEGNA | $ | 237,551 | $ | 573,853 | $ | 175,489 | $ | 174,420 | ||||||||
Provision for income taxes (per Table 3) | $ | 81,609 | $ | 90,422 | $ | 56,155 | 61,797 | |||||||||
Effective tax rate | 34.4 | % | 15.8 | % | 32.0 | % | 35.4 | % | ||||||||
GAAP | Non-GAAP | |||||||||||||||
Year Ended |
Year Ended |
Year Ended |
Year Ended |
|||||||||||||
(recast) | (recast) | |||||||||||||||
Income before taxes (per Table 3) | $ | 622,936 | $ | 990,696 | $ | 569,217 | $ | 505,106 | ||||||||
Noncontrolling interests (per Table 1) | (63,164 | ) | (68,289 | ) | (63,164 | ) | (68,289 | ) | ||||||||
Income before taxes attributable to TEGNA | $ | 559,772 | $ | 922,407 | $ | 506,053 | $ | 436,817 | ||||||||
Provision for income taxes (per Table 3) | $ | 202,314 | $ | 234,471 |
$ |
175,709 |
$ |
152,774 |
||||||||
Effective tax rate | 36.1 | % | 25.4 | % | 34.7 | % | 35.0 | % | ||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160216005987/en/
Source:
TEGNA Inc.
For investor inquiries:
Jeffrey Heinz
Vice
President, Investor Relations
703-854-6917
jheinz@TEGNA.com
or
For
media inquiries:
Jeremy Gaines
Vice President, Corporate
Communications
703-854-6049
jmgaines@TEGNA.com