TEGNA Inc. Reports Record 2016 Fourth Quarter and Full Year Results
Highlights for the fourth quarter include the following:
-
GAAP earnings per diluted share from continuing operations of
$0.61 . Non-GAAP earnings per diluted share from continuing operations of$0.74 , a 40 percent increase compared to the fourth quarter of 2015 - Total company revenues were 10 percent higher driven by strong Media Segment results
- Media Segment revenues were 14 percent higher and reached a record $529 million; adjusted for three fewer days in the fourth quarter this year, grew 17 percent year-over-year, reflecting substantial increases in political advertising and retransmission revenues
-
Net income from continuing operations was
$133 million ; Adjusted EBITDA totaled $350 million, a 15 percent increase year-over-year -
Net cash flow from operating activities totaled
$229 million ; free cash flow was$202 million
Highlights for the full year include the following:
-
GAAP earnings per diluted share from continuing operations of
$2.02 compared to$1.56 per diluted share last year. Non-GAAP earnings per diluted share from continuing operations of$2.33 , an increase of 62 percent year-over-year - Total company revenues were up 10 percent driven by record Media Segment results
-
Media Segment revenues of
$1.9 billion were 15 percent higher reflecting strong political advertising and advertising related to the Summer Olympics as well as a substantial increase in retransmission revenue -
Net income from continuing operations was
$444 million ; Adjusted EBITDA totaled$1.2 billion , a 17 percent increase year-over-year -
Net cash flow from operating activities totaled
$683 million ; free cash flow was$589 million - Announced the intention to spin-off Cars.com, which is anticipated to occur in the first half of 2017, and commenced a strategic review of CareerBuilder
Martore continued, “We continue to make progress toward our planned spin-off of Cars.com and strategic review of CareerBuilder as we move ahead on evaluating strategic alternatives for the businesses. In every decision we make, we are driving the company forward and maximizing return for our investors. Our businesses remain strong and are well positioned for growth in 2017.”
FOURTH QUARTER
CONTINUING OPERATIONS
The following table summarizes the year-over-year changes in continuing operations for both GAAP and non-GAAP measures (in thousands).
GAAP | Non-GAAP | |||||||||||||||||||
Fourth |
Fourth |
Fourth |
Fourth |
|||||||||||||||||
Operating revenue | $ | 887,416 | $ | 805,264 | $ | 887,416 | $ | 805,264 | ||||||||||||
Operating expense | 607,627 | 478,369 | 588,928 | 549,260 | ||||||||||||||||
Operating income | $ | 279,789 | $ | 326,895 | $ | 298,488 | $ | 256,004 | ||||||||||||
Net income from continuing operations attributable to TEGNA |
$ | 133,119 | $ | 155,942 | $ | 160,394 | $ | 119,334 | ||||||||||||
See Table 3 for reconciliations between non-GAAP measures and the most directly comparable GAAP reported numbers. | ||||||||||||||||||||
Total company revenues increased 10.2 percent in the fourth quarter of 2016 compared to the fourth quarter of 2015 driven by revenue growth in both the Media Segment and Digital Segment.
On a non-GAAP basis, operating expenses were up 7.2 percent primarily
due to higher Media Segment expenses. Corporate expenses in the fourth
quarter of 2016 totaled
Reported operating income declined 14.4 percent compared to the fourth
quarter in 2015 while on a non-GAAP basis, operating income was 16.6
percent higher. Net income from continuing operations attributable to
Special items in the fourth quarter of 2016 unfavorably impacted GAAP
results by
FOURTH QUARTER
TEGNA MEDIA
In the fourth quarter of 2015, we changed our financial reporting cycle
to a calendar year-end, which resulted in our fourth quarter of 2016
having three fewer days than the same quarter in 2015. The extra days in
the fourth quarter of 2015 contributed approximately
The following table summarizes the year-over-year changes in select Media Segment revenue categories (in thousands).
Fourth Quarter Ended | |||||||||||||||
Dec. 31, 2016 | Dec. 31, 2015 | Percentage Change | |||||||||||||
Core (Local & National) (a) | $ | 254,088 | $ | 296,325 | (14.3 | %) | |||||||||
Political (a) | 90,758 | 10,525 | **** | ||||||||||||
Retransmission (b) | 145,441 | 119,944 | 21.3 | % | |||||||||||
Online (a) | 33,298 | 31,080 | 7.1 | % | |||||||||||
Other | 5,532 | 4,359 | 26.9 | % | |||||||||||
Total | $ | 529,117 | $ | 462,233 | 14.5 | % | |||||||||
(a) Amounts in 2015 have not been reduced for the three fewer days in 2016. | |||||||||||||||
(b) Reverse compensation to networks is included as part of programming costs. | |||||||||||||||
Media Segment revenues reached a record
Media Segment operating expenses were
Based on current trends, we expect Media Segment revenue in the first
quarter of 2017 to be flat to slightly above the first quarter of 2016.
The year-over-year comparison will be unfavorably impacted by
substantially lower political advertising revenue (
FOURTH QUARTER
TEGNA DIGITAL
Digital Segment revenues rose 4.5 percent in the fourth quarter
reflecting
Total revenues at Cars.com were 4.8 percent higher in the fourth quarter. Cars.com revenues sold directly by the company were up 7.5 percent driven by the acquisition of DealerRater and an increase in display advertising revenues and higher lead spending by auto manufacturers. Wholesale revenues (fees paid by newspaper affiliates) were 2.5 percent lower in the quarter compared to the fourth quarter in 2015.
CareerBuilder revenues grew 5.9 percent (6.9 percent on a constant currency basis) in the fourth quarter, a significant sequential improvement from the growth rate in the third quarter and the best quarterly revenue growth of the year. CareerBuilder results reflect continued growth in its resume database and employer services products and human capital software solutions as well as the acquisitions of Aurico and Workterra. Partially offsetting these increases was a decline in job site advertising.
Digital Segment operating expenses totaled
Digital Segment operating income was
FOURTH QUARTER
NON-OPERATING AND
CASH FLOW ITEMS
Interest expense totaled
Other non-operating expense was
Cash flow from operating activities for the fourth quarter of 2016 was
FULL YEAR 2016
CONTINUING OPERATIONS
Total operating revenues for the full year were
Operating expenses totaled
Adjusted EBITDA was
As previously announced, the company will hold an earnings conference
call at
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
Continuing Operations TEGNA Inc. Unaudited, in thousands (except per share amounts) |
|||||||||||||||
Table No. 1 | |||||||||||||||
Fourth Quarter Ended Dec. 31, 2016 |
Fourth Quarter Ended Dec. 31, 2015 |
% Increase |
|||||||||||||
Operating revenues: | |||||||||||||||
Media | $ | 529,117 | $ | 462,233 | 14.5 | ||||||||||
Digital | 358,299 | 343,031 | 4.5 | ||||||||||||
Total | 887,416 | 805,264 | 10.2 | ||||||||||||
Operating expenses: | |||||||||||||||
Cost of revenues and operating expenses, exclusive of depreciation | 273,874 | 232,555 | 17.8 | ||||||||||||
Selling, general and administrative expenses, exclusive of depreciation | 269,276 | 273,571 | (1.6 | ) | |||||||||||
Depreciation | 22,037 | 20,051 | 9.9 | ||||||||||||
Amortization of intangible assets | 29,256 | 28,128 | 4.0 | ||||||||||||
Asset impairment and facility consolidation charges (gains) | 13,184 | (75,936 | ) | **** | |||||||||||
Total | 607,627 | 478,369 | 27.0 | ||||||||||||
Operating income | 279,789 | 326,895 | (14.4 | ) | |||||||||||
Non-operating expense: | |||||||||||||||
Equity loss in unconsolidated investments, net | (640 | ) | (941 | ) | (32.0 | ) | |||||||||
Interest expense | (56,552 | ) | (66,758 | ) | (15.3 | ) | |||||||||
Other non-operating expense, net | (9,219 | ) | (6,183 | ) | 49.1 | ||||||||||
Total | (66,411 | ) | (73,882 | ) | (10.1 | ) | |||||||||
Income before income taxes | 213,378 | 253,013 | (15.7 | ) | |||||||||||
Provision for income taxes | 69,135 | 81,608 | (15.3 | ) | |||||||||||
Income from continuing operations | 144,243 | 171,405 | (15.8 | ) | |||||||||||
Net income attributable to noncontrolling interests | (11,124 | ) | (15,463 | ) | (28.1 | ) | |||||||||
Net income from continuing operations attributable to TEGNA Inc. | $ | 133,119 | $ | 155,942 | (14.6 | ) | |||||||||
Earnings from continuing operations per share: | |||||||||||||||
Basic | $ | 0.62 | $ | 0.71 | (12.7 | ) | |||||||||
Diluted | $ | 0.61 | $ | 0.69 | (11.6 | ) | |||||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 214,847 | 220,768 | (2.7 | ) | |||||||||||
Diluted | 217,200 | 225,129 | (3.5 | ) | |||||||||||
Dividends declared per share | $ | 0.14 | $ | 0.14 | — | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Continuing Operations TEGNA Inc. Unaudited, in thousands (except per share amounts) |
|||||||||||||||
Table No. 1 (continued) | |||||||||||||||
Year Ended |
Year Ended |
% Increase (Decrease) |
|||||||||||||
Operating revenues: | |||||||||||||||
Media | $ | 1,933,579 |
$ |
1,682,144 | 14.9 | ||||||||||
Digital | 1,407,619 | 1,368,801 | 2.8 | ||||||||||||
Total | 3,341,198 | 3,050,945 | 9.5 | ||||||||||||
Operating expenses: | |||||||||||||||
Cost of revenues and operating expenses, exclusive of depreciation | 1,038,667 | 923,336 | 12.5 | ||||||||||||
Selling, general and administrative expenses, exclusive of depreciation | 1,093,837 | 1,068,221 | 2.4 | ||||||||||||
Depreciation | 89,531 | 90,803 | (1.4 | ) | |||||||||||
Amortization of intangible assets | 114,959 | 114,284 | 0.6 | ||||||||||||
Asset impairment and facility consolidation charges (gains) | 32,130 | (58,857 | ) | **** | |||||||||||
Total | 2,369,124 | 2,137,787 | 10.8 | ||||||||||||
Operating income | 972,074 | 913,158 | 6.5 | ||||||||||||
Non-operating expense: | |||||||||||||||
Equity loss in unconsolidated investments, net | (7,170 | ) | (5,064 | ) | 41.6 | ||||||||||
Interest expense | (232,013 | ) | (273,629 | ) | (15.2 | ) | |||||||||
Other non-operating expense, net | (20,439 | ) | (11,529 | ) | 77.3 | ||||||||||
Total | (259,622 | ) | (290,222 | ) | (10.5 | ) | |||||||||
Income before income taxes | 712,452 | 622,936 | 14.4 | ||||||||||||
Provision for income taxes | 216,979 | 202,314 | 7.2 | ||||||||||||
Income from continuing operations | 495,473 | 420,622 | 17.8 | ||||||||||||
Net income attributable to noncontrolling interests | (51,302 | ) | (63,164 | ) | (18.8 | ) | |||||||||
Net income from continuing operations attributable to TEGNA Inc. | $ | 444,171 | $ | 357,458 | 24.3 | ||||||||||
Earnings from continuing operations per share: | |||||||||||||||
Basic | $ | 2.05 | $ | 1.59 | 28.9 | ||||||||||
Diluted | $ | 2.02 | $ | 1.56 | 29.5 | ||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 216,358 | 224,688 | (3.7 | ) | |||||||||||
Diluted | 219,681 | 229,721 | (4.4 | ) | |||||||||||
Dividends declared per share | $ | 0.56 | $ | 0.68 | (17.6 | ) | |||||||||
BUSINESS SEGMENT INFORMATION
TEGNA Inc. Unaudited, in thousands of dollars |
|||||||||||||
Table No. 2 | |||||||||||||
Fourth Quarter Ended Dec. 31, 2016 |
Fourth Quarter Ended Dec. 31, 2015 |
% Increase
(Decrease) |
|||||||||||
Operating revenues: | |||||||||||||
Media | $ | 529,117 | $ | 462,233 | 14.5 | ||||||||
Digital | 358,299 | 343,031 | 4.5 | ||||||||||
Total | $ | 887,416 | $ | 805,264 | 10.2 | ||||||||
Operating income (net of depreciation, amortization, asset impairment and facility consolidation charges): | |||||||||||||
Media | $ | 236,523 | $ | 200,680 | 17.9 | ||||||||
Digital | 59,182 | 53,924 | 9.8 | ||||||||||
Corporate | (15,916 | ) | (17,601 | ) | (9.6 | ) | |||||||
Net gain on sale of corporate headquarters building | — | 89,892 | (100.0 | ) | |||||||||
Total | $ | 279,789 | $ | 326,895 | (14.4 | ) | |||||||
Depreciation, amortization, asset impairment and facility consolidation charges (gains): | |||||||||||||
Media | $ | 24,262 | $ | 20,173 | 20.3 | ||||||||
Digital | 39,654 | 40,857 | (2.9 | ) | |||||||||
Corporate | 561 | (88,787 | ) | **** | |||||||||
Total | $ | 64,477 | $ | (27,757 | ) | **** | |||||||
Adjusted EBITDA (a): | |||||||||||||
Media | $ | 261,242 | $ | 224,474 | 16.4 | ||||||||
Digital | 102,729 | 96,205 | 6.8 | ||||||||||
Corporate | (14,190 | ) | (16,496 | ) | (14.0 | ) | |||||||
Total | $ | 349,781 | $ | 304,183 | 15.0 | ||||||||
(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. | |
BUSINESS SEGMENT INFORMATION
TEGNA Inc. Unaudited, in thousands of dollars |
|||||||||||||||
Table No. 2 (continued) | |||||||||||||||
Year Ended
Dec. 31, 2016 |
Year Ended
Dec. 31, 2015 |
% Increase
(Decrease) |
|||||||||||||
Operating revenues: | |||||||||||||||
Media | $ | 1,933,579 | $ | 1,682,144 | 14.9 | ||||||||||
Digital | 1,407,619 | 1,368,801 | 2.8 | ||||||||||||
Total | $ | 3,341,198 | $ | 3,050,945 | 9.5 | ||||||||||
Operating income (net of depreciation, amortization, asset impairment and facility consolidation charges): | |||||||||||||||
Media | $ | 806,411 | $ | 714,237 | 12.9 | ||||||||||
Digital | 230,121 | 229,386 | 0.3 | ||||||||||||
Corporate | (64,458 | ) | (68,418 | ) | (5.8 | ) | |||||||||
Net gain on sale of corporate headquarters building | — | 89,892 | (100.0 | ) | |||||||||||
Unallocated costs (b) | — | (51,939 | ) |
100.0 |
|
||||||||||
Total | $ | 972,074 | $ | 913,158 | 6.5 | ||||||||||
Depreciation, amortization, asset impairment and facility consolidation charges (gains): | |||||||||||||||
Media | $ | 82,639 | $ | 81,665 | 1.2 | ||||||||||
Digital | 150,382 | 146,907 | 2.4 | ||||||||||||
Corporate | 3,599 | (82,342 | ) | **** | |||||||||||
Total | $ | 236,620 | $ | 146,230 | 61.8 | ||||||||||
Adjusted EBITDA (a): | |||||||||||||||
Media | $ | 908,068 | $ | 787,162 | 15.4 | ||||||||||
Digital | 384,619 | 379,889 | 1.2 | ||||||||||||
Corporate | (58,137 | ) | (60,868 | ) | (4.5 | ) | |||||||||
Unallocated costs (b) | — | (51,939 | ) |
100.0 |
|
||||||||||
Total | $ | 1,234,550 | $ | 1,054,244 | 17.1 | ||||||||||
(a) | "Adjusted EBITDA" is a non-GAAP measure used by management to measure, analyze and compare the performance of its business segment operations at a more detailed level and in a meaningful and consistent manner. The definition of "Adjusted EBITDA" is provided in the section "Use of Non-GAAP Information" and Table No. 4 provides reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP on the company's condensed consolidated statements of income. | |
(b) | Unallocated costs in 2015 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, nor should they be considered superior to the related GAAP measures, and should be read together with financial information presented on a GAAP basis. Also, our non-GAAP measures may not be comparable to similarly titled measures of other companies.
Management and the company’s Board of Directors use the non-GAAP financial measures for purposes of evaluating business unit and consolidated company performance. Furthermore, the Executive Compensation Committee of our Board of Directors uses non-GAAP measures such as Adjusted EBITDA, non-GAAP net income, non-GAAP EPS and free cash flow to evaluate management’s performance. The company, therefore, believes that each of the non-GAAP measures presented provides useful information to investors and other stakeholders by allowing them to view our business through the eyes of management and our Board of Directors, facilitating comparisons of results across historical periods and focus on the underlying ongoing operating performance of our business. 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 severance expense, impairment charges on operating assets and equity investments, facility consolidation charges, gains related to building sales, gains/losses related to business disposals, expenses related to business acquisitions, costs associated with the company's spin-off transactions and benefits to our income tax provision. We also adjust net income attributed to noncontrolling interests to the extent any of the above items are related to our CareerBuilder business unit. The company believes that such expenses, charges and gains are not indicative of normal, ongoing operations. Such items vary from period to period and are significantly impacted by the timing and nature of these events. Therefore, while the company may incur or recognize these types of expenses, charges and gains in the future, management believes that removing these items for purposes of calculating the non-GAAP financial measures provides investors with a more focused presentation of the company's ongoing operating performance.
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. The company defines Adjusted EBITDA as net
income from continuing operations attributable to
This earnings release also discusses free cash flow, a non-GAAP liquidity measure. Free cash flow is defined as “net cash flow from operating activities” as reported on the statement of cash flows reduced by “purchase of property and equipment”. The company believes that free cash flow is a useful measure for management and investors to evaluate the level of cash generated by operations and the ability of its operations to fund investments in new and existing businesses, return cash to shareholders under the company’s capital program, repay indebtedness, add to the company’s cash balance, or use in other discretionary activities. Management uses free cash flow to monitor cash available for repayment of indebtedness and in its discussions with the investment community. Like Adjusted EBITDA, free cash flow is not intended to be a measure of cash flow available for management’s discretionary use.
Tabular reconciliations for all of the non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the following tables.
NON-GAAP FINANCIAL INFORMATION
TEGNA Inc. Unaudited, in thousands of dollars (except per share amounts) |
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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-GAAP |
||||||||||||||||||||||||||||||||||||||
Fourth |
Severance |
Asset |
Other non- |
Impact of |
Special |
Fourth |
||||||||||||||||||||||||||||||||||
Cost of revenues and operating expenses, exclusive of depreciation | $ | 273,874 | $ | (1,429 | ) | $ | — | $ | — | $ | — | $ | — | $ | 272,445 | |||||||||||||||||||||||||
Selling general and administrative expenses, exclusive of depreciation | 269,276 | (4,086 | ) | — | — | — | — | 265,190 | ||||||||||||||||||||||||||||||||
Asset impairment and facility consolidation charges | 13,184 | — | (13,184 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||
Operating expenses | 607,627 | (5,515 | ) | (13,184 | ) | — | — | — | 588,928 | |||||||||||||||||||||||||||||||
Operating income | 279,789 | 5,515 | 13,184 | — | — | — | 298,488 | |||||||||||||||||||||||||||||||||
Equity loss in unconsolidated investments, net | (640 | ) | — | — | — | — | — | (640 | ) | |||||||||||||||||||||||||||||||
Other non-operating (expense) income | (9,219 | ) | — | — | 11,124 | — | — | 1,905 | ||||||||||||||||||||||||||||||||
Total non-operating expense | (66,411 | ) | — | — | 11,124 | — | — | (55,287 | ) | |||||||||||||||||||||||||||||||
Income before income taxes | 213,378 | 5,515 | 13,184 | 11,124 | — | — | 243,201 | |||||||||||||||||||||||||||||||||
Provision for income taxes | 69,135 | 1,911 | 5,061 | (8,208 | ) | (283 | ) | 3,339 | 70,955 | |||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (11,124 | ) | — | — | — | (728 | ) | — | (11,852 | ) | ||||||||||||||||||||||||||||||
Net income from continuing operations attributable to TEGNA | 133,119 | 3,604 | 8,123 | 19,332 | (445 | ) | (3,339 | ) | 160,394 | |||||||||||||||||||||||||||||||
Net income from continuing operations per share-diluted | $ | 0.61 | $ | 0.02 | $ | 0.04 | $ | 0.09 | $ | — | $ | (0.02 | ) | $ | 0.74 | |||||||||||||||||||||||||
GAAP |
Special Items |
Non-GAAP |
||||||||||||||||||||||||||||||||||||||
Fourth |
Severance |
Asset |
Gain on sale |
Other non- |
Special |
Fourth |
||||||||||||||||||||||||||||||||||
Cost of revenues and operating expenses, exclusive of depreciation | $ | 232,555 | $ | (4,288 | ) | $ | — | $ | — | $ | — | $ | — | $ | 228,267 | |||||||||||||||||||||||||
Selling general and administrative expenses, exclusive of depreciation | 273,571 | (757 | ) | — | — | — | — | 272,814 | ||||||||||||||||||||||||||||||||
Asset impairment and facility consolidation charges (gains) | (75,936 | ) | — | (13,956 | ) | 89,892 | — | — | — | |||||||||||||||||||||||||||||||
Operating expenses | 478,369 | (5,045 | ) | (13,956 | ) | 89,892 | — | — | 549,260 | |||||||||||||||||||||||||||||||
Operating income | 326,895 | 5,045 | 13,956 | (89,892 | ) | — | — | 256,004 | ||||||||||||||||||||||||||||||||
Other non-operating (expense) income | (6,183 | ) | — | — | — | 8,829 | — | 2,646 | ||||||||||||||||||||||||||||||||
Total non-operating expense | (73,882 | ) | — | — | — | 8,829 | — | (65,053 | ) | |||||||||||||||||||||||||||||||
Income before income taxes | 253,013 | 5,045 | 13,956 | (89,892 | ) | 8,829 | — | 190,951 | ||||||||||||||||||||||||||||||||
Provision for income taxes | 81,608 | 1,961 | 2,828 | (34,968 | ) | 3,442 | 1,283 | 56,154 | ||||||||||||||||||||||||||||||||
Net income from continuing operations attributable to TEGNA | 155,942 | 3,084 | 11,128 | (54,924 | ) | 5,387 | (1,283 | ) | 119,334 | |||||||||||||||||||||||||||||||
Net income from continuing operations per share - diluted (a) | $ | 0.69 | $ | 0.01 | $ | 0.05 | $ | (0.24 | ) | $ | 0.02 | $ | (0.01 | ) | $ | 0.53 | ||||||||||||||||||||||||
(a) - Per share amounts do not foot due to rounding
NON-GAAP FINANCIAL INFORMATION
TEGNA Inc. Unaudited, in thousands of dollars (except per share amounts) |
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Table No. 3 (continued) | ||||||||||||||||||||||||||||||||||||
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-GAAP |
||||||||||||||||||||||||||||||||||
Year Ended |
Severance |
Asset |
Other non- |
Impact of |
Special tax |
Year Ended |
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Cost of revenues and operating expenses, exclusive of depreciation | $ | 1,038,667 | $ | (14,030 | ) | $ | — | $ | — | $ | — | $ | — | $ | 1,024,637 | |||||||||||||||||||||
Selling general and administrative expenses, exclusive of depreciation | 1,093,837 | (11,826 | ) | — | — | — | — | 1,082,011 | ||||||||||||||||||||||||||||
Asset impairment and facility consolidation charges | 32,130 | — | (32,130 | ) | — | — | — | — | ||||||||||||||||||||||||||||
Operating expenses | 2,369,124 | (25,856 | ) | (32,130 | ) | — | — | — | 2,311,138 | |||||||||||||||||||||||||||
Operating income | 972,074 | 25,856 | 32,130 | — | — | — | 1,030,060 | |||||||||||||||||||||||||||||
Equity loss in unconsolidated investments, net | (7,170 | ) | — | — | 3,899 | — | — | (3,271 | ) | |||||||||||||||||||||||||||
Other non-operating (expense) income | (20,439 | ) | — | — | 29,118 | — | — | 8,679 | ||||||||||||||||||||||||||||
Total non-operating expense | (259,622 | ) | — | — | 33,017 | — | — | (226,605 | ) | |||||||||||||||||||||||||||
Income before income taxes | 712,452 | 25,856 | 32,130 | 33,017 | — | — | 803,455 | |||||||||||||||||||||||||||||
Provision for income taxes | 216,979 | 9,787 | 12,473 | (1,755 | ) | (283 | ) | 3,339 | 240,540 | |||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (51,302 | ) | — | — | (728 | ) | — | (52,030 | ) | |||||||||||||||||||||||||||
Net income from continuing operations attributable to TEGNA | 444,171 | 16,069 | 19,657 | 34,772 | (445 | ) | (3,339 | ) | 510,885 | |||||||||||||||||||||||||||
Net income from continuing operations per share - diluted (a) | $ | 2.02 | $ | 0.07 | $ | 0.09 | $ | 0.16 | $ | — | $ | (0.02 | ) | $ | 2.33 | |||||||||||||||||||||
(a) - Per share amounts do not foot due to rounding | ||||||||||||||||||||||||||||||||||||
GAAP |
Special Items |
Non-GAAP |
||||||||||||||||||||||||||||||||||
Year Ended |
Severance |
Asset |
Gain on sale |
Other non- |
Special tax |
Year Ended |
||||||||||||||||||||||||||||||
Cost of revenues and operating expenses, 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 | ||||||||||||||||||||||||||||
Asset impairment and facility consolidation charges (gains) | (58,857 | ) | — | (31,035 | ) | 89,892 | — | — | — | |||||||||||||||||||||||||||
Operating expenses | 2,137,787 | (7,565 | ) | (31,035 | ) | 102,601 | — | — | 2,201,788 | |||||||||||||||||||||||||||
Operating income | 913,158 | 7,565 | 31,035 | (102,601 | ) | — | — | 849,157 | ||||||||||||||||||||||||||||
Other non-operating expense | (11,529 | ) | — | — | — | 10,282 | — | (1,247 | ) | |||||||||||||||||||||||||||
Total non-operating expense | (290,222 | ) | — | — | — | 10,282 | — | (279,940 | ) | |||||||||||||||||||||||||||
Income before income taxes | 622,936 | 7,565 | 31,035 | (102,601 | ) | 10,282 | — | 569,217 | ||||||||||||||||||||||||||||
Provision for income taxes | 202,314 | 2,899 | 9,180 | (39,694 | ) | (2,295 | ) | 3,305 | 175,709 | |||||||||||||||||||||||||||
Net income from continuing operations attributable to TEGNA | 357,458 | 4,666 | 21,855 | (62,907 | ) | 12,577 | (3,305 | ) | 330,344 | |||||||||||||||||||||||||||
Net income from continuing operations per share - diluted (a) | $ | 1.56 | $ | 0.02 | $ | 0.10 | $ | (0.27 | ) | $ | 0.05 | $ | (0.01 | ) | $ | 1.44 | ||||||||||||||||||||
(a) - Per share amounts do not foot 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 Ended Dec. 31, 2016: | ||||||||||||||||||||
Media | Digital | Corporate |
Consolidated |
|||||||||||||||||
Net income from continuing operations attributable to TEGNA Inc. (GAAP basis) | $ | 133,119 | ||||||||||||||||||
Net income attributable to noncontrolling interests | 11,124 | |||||||||||||||||||
Provision for income taxes | 69,135 | |||||||||||||||||||
Interest expense | 56,552 | |||||||||||||||||||
Equity loss in unconsolidated investments, net | 640 | |||||||||||||||||||
Other non-operating expense | 9,219 | |||||||||||||||||||
Operating income (GAAP basis) | $ | 236,523 | $ | 59,182 | $ | (15,916 | ) | $ | 279,789 | |||||||||||
Severance expense | 457 | 3,893 | 1,165 | 5,515 | ||||||||||||||||
Asset impairment and facility consolidation charges | 6,769 | 5,915 | 500 | 13,184 | ||||||||||||||||
Adjusted operating income (non-GAAP basis) | 243,749 | 68,990 | (14,251 | ) | 298,488 | |||||||||||||||
Depreciation | 12,047 | 9,929 | 61 | 22,037 | ||||||||||||||||
Amortization | 5,446 | 23,810 | — | 29,256 | ||||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 261,242 | $ | 102,729 | $ | (14,190 | ) | $ | 349,781 | |||||||||||
Fourth Quarter Ended Dec. 31, 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 | 81,608 | |||||||||||||||||||
Interest expense | 66,758 | |||||||||||||||||||
Equity loss in unconsolidated investments, net | 941 | |||||||||||||||||||
Other non-operating expense | 6,183 | |||||||||||||||||||
Operating income (GAAP basis) | $ | 200,680 | $ | 53,924 | $ | 72,291 | $ | 326,895 | ||||||||||||
Severance expense | 3,621 | 1,424 | — | 5,045 | ||||||||||||||||
Asset impairment and facility consolidation charges | 3,006 | 9,988 | 962 | 13,956 | ||||||||||||||||
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 | ||||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 224,474 | $ | 96,205 | $ | (16,496 | ) | $ | 304,183 | |||||||||||
NON-GAAP FINANCIAL INFORMATION
TEGNA Inc. Unaudited, in thousands of dollars |
||||||||||||||||||||||||||
Table No. 4 (continued) | ||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||
Year Ended Dec. 31, 2016: | ||||||||||||||||||||||||||
Media | Digital | Corporate |
Consolidated |
|||||||||||||||||||||||
Net income from continuing operations attributable to TEGNA Inc. (GAAP basis) | $ | 444,171 | ||||||||||||||||||||||||
Net income attributable to noncontrolling interests | 51,302 | |||||||||||||||||||||||||
Provision for income taxes | 216,979 | |||||||||||||||||||||||||
Interest expense | 232,013 | |||||||||||||||||||||||||
Equity loss in unconsolidated investments, net | 7,170 | |||||||||||||||||||||||||
Other non-operating expense | 20,439 | |||||||||||||||||||||||||
Operating income (GAAP basis) | $ | 806,411 | $ | 230,121 | $ | (64,458 | ) | $ | 972,074 | |||||||||||||||||
Severance expense | 19,018 | 4,116 | 2,722 | 25,856 | ||||||||||||||||||||||
Asset impairment and facility consolidation charges | 8,633 | 21,133 | 2,364 | 32,130 | ||||||||||||||||||||||
Adjusted operating income (non-GAAP basis) | 834,062 | 255,370 | (59,372 | ) | 1,030,060 | |||||||||||||||||||||
Depreciation | 51,973 | 36,323 | 1,235 | 89,531 | ||||||||||||||||||||||
Amortization | 22,033 | 92,926 | — | 114,959 | ||||||||||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 908,068 | $ | 384,619 | $ | (58,137 | ) | $ | 1,234,550 | |||||||||||||||||
Year Ended Dec. 31, 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 investments, net | 5,064 | |||||||||||||||||||||||||
Other non-operating expense | 11,529 | |||||||||||||||||||||||||
Operating income (GAAP basis) | $ | 714,237 | $ | 229,386 | $ | 21,474 | $ | (51,939 | ) | $ | 913,158 | |||||||||||||||
Severance expense | 3,969 | 3,596 | — | — | 7,565 | |||||||||||||||||||||
Asset impairment and facility consolidation charges | 8,078 | 21,995 | 962 | — | 31,035 | |||||||||||||||||||||
Gain on sale of Corporate HQ building, net and other building sale gain | (12,709 | ) | — | (89,892 | ) | — | (102,601 | ) | ||||||||||||||||||
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 | |||||||||||||||||||||
Adjusted EBITDA (non-GAAP basis) | $ | 787,162 | $ | 379,889 | $ | (60,868 | ) | $ | (51,939 | ) | $ | 1,054,244 | ||||||||||||||
Note: Starting in second quarter of 2016,
the company revised the method for computing Adjusted EBITDA to no
longer treat non-cash rent as a reconciling item. The first quarter 2016
number was updated to conform to this new method that resulted in a
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 similar GAAP financial measures. | |||||||||||
Fourth Quarter |
Year Ended |
||||||||||
Net cash flow from operating activities | $ | 228,666 | $ | 683,429 | |||||||
Purchase of property, plant and equipment | (26,219 | ) | (94,796 | ) | |||||||
Free cash flow | $ | 202,447 | $ | 588,633 | |||||||
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 Ended Dec. 31, 2016 |
Fourth Quarter Ended Dec. 31, 2015 |
Fourth Quarter Ended Dec. 31, 2016 |
Fourth Quarter Ended Dec. 31, 2015 |
||||||||||||||||||
Income before taxes (per Table 3) | $ | 213,378 | $ | 253,013 | $ | 243,201 | $ | 190,951 | |||||||||||||
Noncontrolling interests (per Tables 1 and 3) | (11,124 | ) | (15,463 | ) | (11,852 | ) | (15,463 | ) | |||||||||||||
Income before taxes attributable to TEGNA | $ | 202,254 | $ | 237,550 | $ | 231,349 | $ | 175,488 | |||||||||||||
Provision for income taxes (per Table 3) | $ | 69,135 | $ | 81,608 | $ | 70,955 | $ | 56,154 | |||||||||||||
Effective tax rate | 34.2 | % | 34.4 | % | 30.7 | % | 32.0 | % | |||||||||||||
GAAP | Non-GAAP | ||||||||||||||||||||
Year Ended Dec. 31, 2016 |
Year Ended Dec. 31, 2015 |
Year Ended Dec. 31, 2016 |
Year Ended Dec. 31, 2015 |
||||||||||||||||||
Income before taxes (per Table 3) | $ | 712,452 | $ | 622,936 | $ | 803,455 | $ | 569,217 | |||||||||||||
Noncontrolling interests (per Tables 1 and 3) | (51,302 | ) | (63,164 | ) | (52,030 | ) | (63,164 | ) | |||||||||||||
Income before taxes attributable to TEGNA | $ | 661,150 | $ | 559,772 | $ | 751,425 | $ | 506,053 | |||||||||||||
Provision for income taxes (per Table 3) | $ | 216,979 | $ | 202,314 | $ | 240,540 | $ | 175,709 | |||||||||||||
Effective tax rate | 32.8 | % | 36.1 | % | 32.0 | % | 34.7 | % | |||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170227005743/en/
Source:
TEGNA Inc.
For investor inquiries:
Jeffrey Heinz, 703-873-6917
Vice
President, Investor Relations
jheinz@TEGNA.com
or
For
media inquiries:
Steve Kidera, 703-873-6434
Corporate
Communications
skidera@TEGNA.com