Delaware | 16-0442930 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
8350 Broad Street, Suite 2000, | Tysons, | Virginia | 22102-5151 | |||||||||||
(Address of principal executive offices) | (Zip Code) |
(703) | 873-6600 | |||||||||||||
(Registrant’s telephone number, including area code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Common Stock | TGNA | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Item No. | Page | |||||||
PART I. FINANCIAL INFORMATION | ||||||||
1. | Financial Statements | |||||||
2. | ||||||||
3. | ||||||||
4. | ||||||||
PART II. OTHER INFORMATION | ||||||||
1. | ||||||||
1A. | ||||||||
2. | ||||||||
3. | ||||||||
4. | ||||||||
5. | ||||||||
6. | ||||||||
June 30, 2022 | Dec. 31, 2021 | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 200,770 | $ | 56,989 | |||||||
Accounts receivable, net of allowances of $5,564 and $4,371, respectively | 615,824 | 642,280 | |||||||||
Other receivables | 7,802 | 15,496 | |||||||||
Syndicated programming rights | 24,114 | 53,100 | |||||||||
Prepaid expenses and other current assets | 36,867 | 19,724 | |||||||||
Total current assets | 885,377 | 787,589 | |||||||||
Property and equipment | |||||||||||
Cost | 1,070,911 | 1,053,851 | |||||||||
Less accumulated depreciation | (611,576) | (586,656) | |||||||||
Net property and equipment | 459,335 | 467,195 | |||||||||
Intangible and other assets | |||||||||||
Goodwill | 2,981,587 | 2,981,587 | |||||||||
Indefinite-lived and amortizable intangible assets, less accumulated amortization of $328,592 and $298,593, respectively | 2,411,489 | 2,441,488 | |||||||||
Right-of-use assets for operating leases | 84,270 | 87,279 | |||||||||
Investments and other assets | 143,420 | 152,508 | |||||||||
Total intangible and other assets | 5,620,766 | 5,662,862 | |||||||||
Total assets | $ | 6,965,478 | $ | 6,917,646 |
June 30, 2022 | Dec. 31, 2021 | ||||||||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 86,381 | $ | 72,996 | |||||||
Accrued liabilities | |||||||||||
Compensation | 49,490 | 55,179 | |||||||||
Interest | 44,720 | 45,905 | |||||||||
Contracts payable for programming rights | 93,829 | 98,534 | |||||||||
Other | 88,696 | 91,098 | |||||||||
Income taxes payable | 7,610 | 11,420 | |||||||||
Total current liabilities | 370,726 | 375,132 | |||||||||
Noncurrent liabilities | |||||||||||
Deferred income tax liability | 552,250 | 548,374 | |||||||||
Long-term debt | 3,067,608 | 3,231,970 | |||||||||
Pension liabilities | 54,795 | 58,063 | |||||||||
Operating lease liabilities | 85,436 | 88,970 | |||||||||
Other noncurrent liabilities | 76,175 | 79,102 | |||||||||
Total noncurrent liabilities | 3,836,264 | 4,006,479 | |||||||||
Total liabilities | 4,206,990 | 4,381,611 | |||||||||
Commitments and contingent liabilities (see Note 9) | |||||||||||
Redeemable noncontrolling interest (see Note 1) | 16,765 | 16,129 | |||||||||
Shareholders’ equity | |||||||||||
Common stock of $1 par value per share, 800,000,000 shares authorized, 324,418,632 shares issued | 324,419 | 324,419 | |||||||||
Additional paid-in capital | 27,941 | 27,941 | |||||||||
Retained earnings | 7,583,436 | 7,459,380 | |||||||||
Accumulated other comprehensive loss | (111,028) | (97,216) | |||||||||
Less treasury stock at cost, 101,391,312 shares and 103,012,455 shares, respectively | (5,083,045) | (5,194,618) | |||||||||
Total equity | 2,741,723 | 2,519,906 | |||||||||
Total liabilities, redeemable noncontrolling interest and equity | $ | 6,965,478 | $ | 6,917,646 |
Quarter ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues | $ | 784,881 | $ | 732,908 | $ | 1,559,004 | $ | 1,459,959 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Cost of revenues1 | 420,235 | 397,118 | 831,685 | 791,810 | |||||||||||||||||||
Business units - Selling, general and administrative expenses | 99,585 | 96,949 | 201,554 | 186,275 | |||||||||||||||||||
Corporate - General and administrative expenses | 13,612 | 23,183 | 34,932 | 40,053 | |||||||||||||||||||
Depreciation | 15,534 | 15,838 | 30,839 | 31,734 | |||||||||||||||||||
Amortization of intangible assets | 14,999 | 15,773 | 29,999 | 31,533 | |||||||||||||||||||
Spectrum repacking reimbursements and other, net | (105) | (1,475) | (163) | (2,898) | |||||||||||||||||||
Total | 563,860 | 547,386 | 1,128,846 | 1,078,507 | |||||||||||||||||||
Operating income | 221,021 | 185,522 | 430,158 | 381,452 | |||||||||||||||||||
Non-operating (expense) income: | |||||||||||||||||||||||
Equity loss in unconsolidated investments, net | (236) | (2,597) | (4,047) | (3,926) | |||||||||||||||||||
Interest expense | (42,950) | (46,609) | (86,570) | (93,094) | |||||||||||||||||||
Other non-operating items, net | (1,865) | 1,524 | 15,454 | 1,854 | |||||||||||||||||||
Total | (45,051) | (47,682) | (75,163) | (95,166) | |||||||||||||||||||
Income before income taxes | 175,970 | 137,840 | 354,995 | 286,286 | |||||||||||||||||||
Provision for income taxes | 44,030 | 30,986 | 88,768 | 66,600 | |||||||||||||||||||
Net Income | 131,940 | 106,854 | 266,227 | 219,686 | |||||||||||||||||||
Net income attributable to redeemable noncontrolling interest | (371) | (227) | (424) | (442) | |||||||||||||||||||
Net income attributable to TEGNA Inc. | $ | 131,569 | $ | 106,627 | $ | 265,803 | $ | 219,244 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | 0.59 | $ | 0.48 | $ | 1.19 | $ | 0.99 | |||||||||||||||
Diluted | $ | 0.59 | $ | 0.48 | $ | 1.19 | $ | 0.99 | |||||||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||||
Basic shares | 223,675 | 221,522 | 223,197 | 221,064 | |||||||||||||||||||
Diluted shares | 224,489 | 222,506 | 223,867 | 221,855 | |||||||||||||||||||
1 Cost of revenues exclude charges for depreciation and amortization expense, which are shown separately above. |
Quarter ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income | $ | 131,940 | $ | 106,854 | $ | 266,227 | $ | 219,686 | |||||||||||||||
Other comprehensive income, before tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | — | 255 | 142 | 751 | |||||||||||||||||||
Recognition of previously deferred post-retirement benefit plan costs | 1,085 | 1,353 | 2,061 | 2,578 | |||||||||||||||||||
Realized gain on available-for-sale investment during the period | — | — | (20,800) | — | |||||||||||||||||||
Other comprehensive income (loss), before tax | 1,085 | 1,608 | (18,597) | 3,329 | |||||||||||||||||||
Income tax effect related to components of other comprehensive income | (279) | (414) | 4,785 | (857) | |||||||||||||||||||
Other comprehensive income (loss), net of tax | 806 | 1,194 | (13,812) | 2,472 | |||||||||||||||||||
Comprehensive income | 132,746 | 108,048 | 252,415 | 222,158 | |||||||||||||||||||
Comprehensive income attributable to redeemable noncontrolling interest | (371) | (227) | (424) | (442) | |||||||||||||||||||
Comprehensive income attributable to TEGNA Inc. | $ | 132,375 | $ | 107,821 | $ | 251,991 | $ | 221,716 |
Six months ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 266,227 | $ | 219,686 | |||||||
Adjustments to reconcile net income to net cash flow from operating activities: | |||||||||||
Depreciation and amortization | 60,838 | 63,267 | |||||||||
Stock-based compensation | 17,209 | 16,172 | |||||||||
Company stock 401(k) contribution | 9,929 | 9,384 | |||||||||
Gains on assets, net | (18,308) | — | |||||||||
Equity loss from unconsolidated investments, net | 4,047 | 3,926 | |||||||||
Pension contributions including income, net of expense | (1,070) | (8,781) | |||||||||
Change in other assets and liabilities, net of acquisitions: | |||||||||||
Decrease (increase) in trade receivables | 25,263 | (37,207) | |||||||||
Increase (decrease) in accounts payable | 13,385 | (20,692) | |||||||||
Increase (decrease) in interest and taxes payable, net | 9,615 | (52,483) | |||||||||
Increase (decrease) in deferred revenue | 1,687 | (1,015) | |||||||||
Change in other assets and liabilities, net | 2,565 | 4,236 | |||||||||
Net cash flow from operating activities | 391,387 | 196,493 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchase of property and equipment | (23,094) | (27,621) | |||||||||
Reimbursements from spectrum repacking | 163 | 4,438 | |||||||||
Payments for acquisitions of businesses | — | (13,341) | |||||||||
Purchases of investments | (4,706) | (408) | |||||||||
Proceeds from investments | 3,451 | 2,418 | |||||||||
Proceeds from sale of assets | 367 | 262 | |||||||||
Net cash flow used for investing activities | (23,819) | (34,252) | |||||||||
Cash flows from financing activities: | |||||||||||
Payments under revolving credit facilities, net | (166,000) | (99,000) | |||||||||
Dividends paid | (42,331) | (36,426) | |||||||||
Other, net | (15,456) | (10,521) | |||||||||
Net cash flow used for financing activities | (223,787) | (145,947) | |||||||||
Increase in cash | 143,781 | 16,294 | |||||||||
Balance of cash, beginning of period | 56,989 | 40,968 | |||||||||
Balance of cash, end of period | $ | 200,770 | $ | 57,262 | |||||||
Supplemental cash flow information: | |||||||||||
Cash paid for income taxes, net of refunds | $ | 79,915 | $ | 117,600 | |||||||
Cash paid for interest | $ | 84,361 | $ | 91,022 |
Quarters Ended: | Redeemable noncontrolling interest | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Total Equity | ||||||||||||||||||||||
Balance at Mar. 31, 2022 | $ | 16,430 | $ | 324,419 | $ | 27,941 | $ | 7,479,795 | $ | (111,834) | $ | (5,101,472) | $ | 2,618,849 | |||||||||||||||
Net income | 371 | — | — | 131,569 | — | — | 131,569 | ||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 806 | — | 806 | ||||||||||||||||||||||
Total comprehensive income | 132,375 | ||||||||||||||||||||||||||||
Dividends declared: $0.095 per share | — | — | — | (21,180) | — | — | (21,180) | ||||||||||||||||||||||
Company stock 401(k) contribution | — | — | (5,004) | (4,810) | — | 14,405 | 4,591 | ||||||||||||||||||||||
Stock-based awards activity | — | — | (2,053) | (1,974) | — | 4,022 | (5) | ||||||||||||||||||||||
Stock-based compensation | — | — | 6,714 | — | — | — | 6,714 | ||||||||||||||||||||||
Adjustment of redeemable noncontrolling interest to redemption value | (36) | — | — | 36 | — | — | 36 | ||||||||||||||||||||||
Other activity | — | — | 343 | — | — | — | 343 | ||||||||||||||||||||||
Balance at June 30, 2022 | $ | 16,765 | $ | 324,419 | $ | 27,941 | $ | 7,583,436 | $ | (111,028) | $ | (5,083,045) | $ | 2,741,723 | |||||||||||||||
Redeemable noncontrolling interest | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Total Equity | |||||||||||||||||||||||
Balance at Mar. 31, 2021 | $ | 15,220 | $ | 324,419 | $ | 27,596 | $ | 7,151,716 | $ | (119,798) | $ | (5,244,595) | $ | 2,139,338 | |||||||||||||||
Net income | 227 | — | — | 106,627 | — | — | 106,627 | ||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 1,194 | — | 1,194 | ||||||||||||||||||||||
Total comprehensive income | 107,821 | ||||||||||||||||||||||||||||
Dividends declared: $0.165 per share | — | — | — | 43 | — | — | 43 | ||||||||||||||||||||||
Company stock 401(k) contribution | — | — | (1,420) | (9,053) | — | 14,552 | 4,079 | ||||||||||||||||||||||
Stock-based awards activity | — | — | (5,990) | — | — | 5,986 | (4) | ||||||||||||||||||||||
Stock-based compensation | — | — | 7,410 | — | — | — | 7,410 | ||||||||||||||||||||||
Adjustment of redeemable noncontrolling interest to redemption value | 76 | — | — | (76) | — | — | (76) | ||||||||||||||||||||||
Other activity | — | — | 345 | — | — | — | 345 | ||||||||||||||||||||||
Balance at June 30, 2021 | $ | 15,523 | $ | 324,419 | $ | 27,941 | $ | 7,249,257 | $ | (118,604) | $ | (5,224,057) | $ | 2,258,956 | |||||||||||||||
TEGNA Inc. | |||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NON-CONTROLLING INTEREST | |||||||||||||||||||||||||||||
Unaudited, in thousands of dollars, except per share data | |||||||||||||||||||||||||||||
Six Months Ended: | Redeemable noncontrolling interest | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Total | ||||||||||||||||||||||
Balance at Dec. 31, 2021 | $ | 16,129 | $ | 324,419 | $ | 27,941 | $ | 7,459,380 | $ | (97,216) | $ | (5,194,618) | $ | 2,519,906 | |||||||||||||||
Net income | 424 | — | — | 265,803 | — | — | 265,803 | ||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | (13,812) | — | (13,812) | ||||||||||||||||||||||
Total comprehensive income | 251,991 | ||||||||||||||||||||||||||||
Dividends declared: $0.19 per share | — | — | — | (42,331) | — | — | (42,331) | ||||||||||||||||||||||
Company stock 401(k) contribution | — | — | (6,326) | (16,084) | — | 32,339 | 9,929 | ||||||||||||||||||||||
Stock-based awards activity | — | — | (11,570) | (83,120) | — | 79,234 | (15,456) | ||||||||||||||||||||||
Stock-based compensation | — | — | 17,209 | — | — | — | 17,209 | ||||||||||||||||||||||
Adjustment of redeemable noncontrolling interest to redemption value | 212 | — | — | (212) | — | — | (212) | ||||||||||||||||||||||
Other activity | — | — | 687 | — | — | — | 687 | ||||||||||||||||||||||
Balance at June 30, 2022 | $ | 16,765 | $ | 324,419 | $ | 27,941 | $ | 7,583,436 | $ | (111,028) | $ | (5,083,045) | $ | 2,741,723 | |||||||||||||||
Redeemable noncontrolling interest | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Total | |||||||||||||||||||||||
Balance at Dec. 31, 2020 | $ | 14,933 | $ | 324,419 | $ | 113,267 | $ | 7,075,640 | $ | (121,076) | $ | (5,334,155) | $ | 2,058,095 | |||||||||||||||
Net income | 442 | — | — | 219,244 | — | — | 219,244 | ||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 2,472 | — | 2,472 | ||||||||||||||||||||||
Total comprehensive income | 221,716 | ||||||||||||||||||||||||||||
Dividends declared: $0.235 per share | — | — | — | (36,426) | — | — | (36,426) | ||||||||||||||||||||||
Company stock 401(k) contribution | — | — | (17,674) | (9,053) | — | 36,111 | 9,384 | ||||||||||||||||||||||
Stock-based awards activity | — | — | (84,509) | — | — | 73,987 | (10,522) | ||||||||||||||||||||||
Stock-based compensation | — | — | 16,172 | — | — | — | 16,172 | ||||||||||||||||||||||
Adjustment of redeemable noncontrolling interest to redemption value | 148 | — | — | (148) | — | — | (148) | ||||||||||||||||||||||
Other activity | — | — | 685 | — | — | — | 685 | ||||||||||||||||||||||
Balance at June 30, 2021 | $ | 15,523 | $ | 324,419 | $ | 27,941 | $ | 7,249,257 | $ | (118,604) | $ | (5,224,057) | $ | 2,258,956 |
Quarter ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Subscription | $ | 389,079 | $ | 375,081 | $ | 780,733 | $ | 761,818 | |||||||||||||||
Advertising & Marketing Services | 335,259 | 340,889 | 689,726 | 663,723 | |||||||||||||||||||
Political | 50,858 | 9,581 | 68,823 | 19,009 | |||||||||||||||||||
Other | 9,685 | 7,357 | 19,722 | 15,409 | |||||||||||||||||||
Total revenues | $ | 784,881 | $ | 732,908 | $ | 1,559,004 | $ | 1,459,959 |
June 30, 2022 | Dec. 31, 2021 | ||||||||||||||||||||||
Gross | Accumulated Amortization | Gross | Accumulated Amortization | ||||||||||||||||||||
Goodwill | $ | 2,981,587 | $ | — | $ | 2,981,587 | $ | — | |||||||||||||||
Indefinite-lived intangibles: | |||||||||||||||||||||||
Television and radio station FCC broadcast licenses | 2,123,898 | — | 2,123,898 | — | |||||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||||||||
Retransmission agreements | 235,215 | (181,867) | 235,215 | (168,439) | |||||||||||||||||||
Network affiliation agreements | 309,503 | (109,430) | 309,503 | (97,195) | |||||||||||||||||||
Other | 71,465 | (37,295) | 71,465 | (32,959) | |||||||||||||||||||
Total indefinite-lived and amortizable intangible assets | $ | 2,740,081 | $ | (328,592) | $ | 2,740,081 | $ | (298,593) |
June 30, 2022 | Dec. 31, 2021 | ||||||||||
Cash value insurance | $ | 48,958 | $ | 53,189 | |||||||
Available-for-sale debt security | — | 23,800 | |||||||||
Equity method investments | 17,143 | 21,986 | |||||||||
Other equity investments | 20,158 | 20,331 | |||||||||
Deferred debt issuance costs | 4,033 | 5,805 | |||||||||
Long-term contract assets | 22,253 | — | |||||||||
Other long-term assets | 30,875 | 27,397 | |||||||||
Total | $ | 143,420 | $ | 152,508 |
June 30, 2022 | Dec. 31, 2021 | ||||||||||
Borrowings under revolving credit agreement expiring August 2024 | $ | — | $ | 166,000 | |||||||
Unsecured notes bearing fixed rate interest at 4.75% due March 2026 | 550,000 | 550,000 | |||||||||
Unsecured notes bearing fixed rate interest at 7.75% due June 2027 | 200,000 | 200,000 | |||||||||
Unsecured notes bearing fixed rate interest at 7.25% due September 2027 | 240,000 | 240,000 | |||||||||
Unsecured notes bearing fixed rate interest at 4.625% due March 2028 | 1,000,000 | 1,000,000 | |||||||||
Unsecured notes bearing fixed rate interest at 5.00% due September 2029 | 1,100,000 | 1,100,000 | |||||||||
Total principal long-term debt | 3,090,000 | 3,256,000 | |||||||||
Debt issuance costs | (29,194) | (31,378) | |||||||||
Unamortized premiums | 6,802 | 7,348 | |||||||||
Total long-term debt | $ | 3,067,608 | $ | 3,231,970 | |||||||
Quarter ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Service cost-benefits earned during the period | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||||||||
Interest cost on benefit obligation | 4,241 | 3,988 | 8,541 | 7,938 | |||||||||||||||||||
Expected return on plan assets | (4,851) | (8,690) | (9,751) | (17,340) | |||||||||||||||||||
Amortization of prior service cost | (117) | 20 | (242) | 45 | |||||||||||||||||||
Amortization of actuarial loss | 1,202 | 1,246 | 2,302 | 2,446 | |||||||||||||||||||
Expense (income) from company-sponsored retirement plans | $ | 475 | $ | (3,435) | $ | 850 | $ | (6,910) |
Retirement Plans | Foreign Currency Translation | Available-For-Sale Investment | Total | ||||||||||||||||||||
Quarters Ended: | |||||||||||||||||||||||
Balance at Mar. 31, 2022 | $ | (112,366) | $ | 532 | $ | — | $ | (111,834) | |||||||||||||||
Amounts reclassified from AOCL | 806 | — | — | 806 | |||||||||||||||||||
Total other comprehensive income | 806 | — | — | 806 | |||||||||||||||||||
Balance at June 30, 2022 | $ | (111,560) | $ | 532 | $ | — | $ | (111,028) | |||||||||||||||
Balance at Mar. 31, 2021 | $ | (120,070) | $ | 272 | $ | — | $ | (119,798) | |||||||||||||||
Other comprehensive loss before reclassifications | — | 189 | — | 189 | |||||||||||||||||||
Amounts reclassified from AOCL | 1,005 | — | — | 1,005 | |||||||||||||||||||
Total other comprehensive income | 1,005 | 189 | — | 1,194 | |||||||||||||||||||
Balance at June 30, 2021 | $ | (119,065) | $ | 461 | $ | — | $ | (118,604) | |||||||||||||||
Retirement Plans | Foreign Currency Translation | Available-For-Sale Investment | Total | ||||||||||||||||||||
Six Months Ended: | |||||||||||||||||||||||
Balance at Dec. 31, 2021 | $ | (113,090) | $ | 455 | $ | 15,419 | $ | (97,216) | |||||||||||||||
Other comprehensive income before reclassifications | — | 77 | — | 77 | |||||||||||||||||||
Amounts reclassified from AOCL | 1,530 | — | (15,419) | (13,889) | |||||||||||||||||||
Total other comprehensive income (loss) | 1,530 | 77 | (15,419) | (13,812) | |||||||||||||||||||
Balance at June 30, 2022 | $ | (111,560) | $ | 532 | $ | — | $ | (111,028) | |||||||||||||||
Balance at Dec. 31, 2020 | $ | (120,979) | $ | (97) | $ | — | $ | (121,076) | |||||||||||||||
Other comprehensive income before reclassifications | — | 558 | — | 558 | |||||||||||||||||||
Amounts reclassified from AOCL | 1,914 | — | — | 1,914 | |||||||||||||||||||
Total other comprehensive income | 1,914 | 558 | — | 2,472 | |||||||||||||||||||
Balance at June 30, 2021 | $ | (119,065) | $ | 461 | $ | — | $ | (118,604) |
Quarter ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Amortization of prior service credit, net | $ | (123) | $ | (266) | $ | (248) | $ | (241) | ||||||||||||||||||
Amortization of actuarial loss | 1,208 | 1,619 | 2,309 | 2,819 | ||||||||||||||||||||||
Realized gain on available-for-sale investment | — | — | (20,800) | — | ||||||||||||||||||||||
Total reclassifications, before tax | 1,085 | 1,353 | (18,739) | 2,578 | ||||||||||||||||||||||
Income tax effect | (279) | (348) | 4,850 | (664) | ||||||||||||||||||||||
Total reclassifications, net of tax | $ | 806 | $ | 1,005 | $ | (13,889) | $ | 1,914 | ||||||||||||||||||
Quarter ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net Income | $ | 131,940 | $ | 106,854 | $ | 266,227 | $ | 219,686 | |||||||||||||||
Net income attributable to the noncontrolling interest | (371) | (227) | (424) | (442) | |||||||||||||||||||
Adjustment of redeemable noncontrolling interest to redemption value | 36 | (76) | (212) | (148) | |||||||||||||||||||
Earnings available to common shareholders | $ | 131,605 | $ | 106,551 | $ | 265,591 | $ | 219,096 | |||||||||||||||
Weighted average number of common shares outstanding - basic | 223,675 | 221,522 | 223,197 | 221,064 | |||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Restricted stock units | 466 | 718 | 393 | 564 | |||||||||||||||||||
Performance shares | 348 | 265 | 277 | 224 | |||||||||||||||||||
Stock options | — | 1 | — | 3 | |||||||||||||||||||
Weighted average number of common shares outstanding - diluted | 224,489 | 222,506 | 223,867 | 221,855 | |||||||||||||||||||
Earnings per share - basic | $ | 0.59 | $ | 0.48 | $ | 1.19 | $ | 0.99 | |||||||||||||||
Earnings per share - diluted | $ | 0.59 | $ | 0.48 | $ | 1.19 | $ | 0.99 |
Quarter ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change from 2021 | 2020 | Change from 2020 | 2022 | 2021 | Change from 2021 | 2020 | Change from 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 784,881 | $ | 732,908 | 7 | % | $ | 577,627 | 36 | % | $ | 1,559,004 | $ | 1,459,959 | 7 | % | $ | 1,261,816 | 24 | % | |||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues | 420,235 | 397,118 | 6 | % | 355,367 | 18 | % | 831,685 | 791,810 | 5 | % | 724,735 | 15 | % | |||||||||||||||||||||||||||||||||||||||||||||
Business units - Selling, general and administrative expenses | 99,585 | 96,949 | 3 | % | 85,008 | 17 | % | 201,554 | 186,275 | 8 | % | 177,976 | 13 | % | |||||||||||||||||||||||||||||||||||||||||||||
Corporate - General and administrative expenses | 13,612 | 23,183 | (41 | %) | 28,312 | (52 | %) | 34,932 | 40,053 | (13 | %) | 50,026 | (30 | %) | |||||||||||||||||||||||||||||||||||||||||||||
Depreciation | 15,534 | 15,838 | (2 | %) | 16,711 | (7 | %) | 30,839 | 31,734 | (3 | %) | 33,611 | (8 | %) | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets | 14,999 | 15,773 | (5 | %) | 17,248 | (13 | %) | 29,999 | 31,533 | (5 | %) | 33,464 | (10 | %) | |||||||||||||||||||||||||||||||||||||||||||||
Spectrum repacking reimbursements and other, net | (105) | (1,475) | (93 | %) | (116) | (9 | %) | (163) | (2,898) | (94 | %) | (7,631) | (98 | %) | |||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | $ | 563,860 | $ | 547,386 | 3 | % | $ | 502,530 | 12 | % | $ | 1,128,846 | $ | 1,078,507 | 5 | % | $ | 1,012,181 | 12 | % | |||||||||||||||||||||||||||||||||||||||
Total operating income | $ | 221,021 | $ | 185,522 | 19 | % | $ | 75,097 | *** | $ | 430,158 | $ | 381,452 | 13 | % | $ | 249,635 | 72 | % | ||||||||||||||||||||||||||||||||||||||||
Non-operating expenses | (45,051) | (47,682) | (6 | %) | (48,917) | (8 | %) | (75,163) | (95,166) | (21 | %) | (116,132) | (35 | %) | |||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 44,030 | 30,986 | 42 | % | 6,607 | *** | 88,768 | 66,600 | 33 | % | 27,732 | *** | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | 131,940 | 106,854 | 23 | % | 19,573 | *** | 266,227 | 219,686 | 21 | % | 105,771 | *** | |||||||||||||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to redeemable noncontrolling interest | (371) | (227) | 63 | % | 374 | *** | (424) | (442) | (4 | %) | 484 | *** | |||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to TEGNA Inc. | $ | 131,569 | $ | 106,627 | 23 | % | $ | 19,947 | *** | $ | 265,803 | $ | 219,244 | 21 | % | $ | 106,255 | *** | |||||||||||||||||||||||||||||||||||||||||
Earnings per share - basic | $ | 0.59 | $ | 0.48 | 23 | % | $ | 0.09 | *** | $ | 1.19 | $ | 0.99 | 20 | % | $ | 0.48 | *** | |||||||||||||||||||||||||||||||||||||||||
Earnings per share - diluted | $ | 0.59 | $ | 0.48 | 23 | % | $ | 0.09 | *** | $ | 1.19 | $ | 0.99 | 20 | % | $ | 0.48 | *** | |||||||||||||||||||||||||||||||||||||||||
*** Not meaningful |
Quarter ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change from 2021 | 2020 | Change from 2020 | 2022 | 2021 | Change from 2021 | 2020 | Change from 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subscription | $ | 389,079 | $ | 375,081 | 4 | % | $ | 323,475 | 20 | % | $ | 780,733 | $ | 761,818 | 2 | % | $ | 656,277 | 19 | % | |||||||||||||||||||||||||||||||||||||||
Advertising & Marketing Services | 335,259 | 340,889 | (2) | % | 229,083 | 46 | % | 689,726 | 663,723 | 4 | % | 524,236 | 32 | % | |||||||||||||||||||||||||||||||||||||||||||||
Political | 50,858 | 9,581 | *** | 17,544 | *** | 68,823 | 19,009 | *** | 64,931 | 6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Other | 9,685 | 7,357 | 32 | % | 7,525 | 29 | % | 19,722 | 15,409 | 28 | % | 16,372 | 20 | % | |||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 784,881 | $ | 732,908 | 7 | % | $ | 577,627 | 36 | % | $ | 1,559,004 | $ | 1,459,959 | 7 | % | $ | 1,261,816 | 24 | % | |||||||||||||||||||||||||||||||||||||||
*** Not meaningful |
Quarter ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||
Net income attributable to TEGNA Inc. (GAAP basis) | $ | 131,569 | $ | 106,627 | 23 | % | $ | 265,803 | $ | 219,244 | 21 | % | |||||||||||||||||||||||
Plus: Net income attributable to redeemable noncontrolling interest | 371 | 227 | 63 | % | 424 | 442 | (4 | %) | |||||||||||||||||||||||||||
Plus: Provision for income taxes | 44,030 | 30,986 | 42 | % | 88,768 | 66,600 | 33 | % | |||||||||||||||||||||||||||
Plus: Interest expense | 42,950 | 46,609 | (8 | %) | 86,570 | 93,094 | (7 | %) | |||||||||||||||||||||||||||
Plus: Equity loss in unconsolidated investments, net | 236 | 2,597 | (91 | %) | 4,047 | 3,926 | 3 | % | |||||||||||||||||||||||||||
Plus (less): Other non-operating items, net | 1,865 | (1,524) | *** | (15,454) | (1,854) | *** | |||||||||||||||||||||||||||||
Operating income (GAAP basis) | 221,021 | 185,522 | 19 | % | 430,158 | 381,452 | 13 | % | |||||||||||||||||||||||||||
Plus: M&A-related costs | 4,212 | — | *** | 14,446 | — | *** | |||||||||||||||||||||||||||||
Plus: Advisory fees related to activism defense | — | 12,012 | *** | — | 16,611 | *** | |||||||||||||||||||||||||||||
Less: Spectrum repacking reimbursements and other, net | (105) | (1,475) | (93 | %) | (163) | (2,898) | (94 | %) | |||||||||||||||||||||||||||
Adjusted operating income (non-GAAP basis) | 225,128 | 196,059 | 15 | % | 444,441 | 395,165 | 12 | % | |||||||||||||||||||||||||||
Plus: Depreciation | 15,534 | 15,838 | (2 | %) | 30,839 | 31,734 | (3 | %) | |||||||||||||||||||||||||||
Plus: Amortization of intangible assets | 14,999 | 15,773 | (5 | %) | 29,999 | 31,533 | (5 | %) | |||||||||||||||||||||||||||
Adjusted EBITDA (non-GAAP basis) | 255,661 | 227,670 | 12 | % | 505,279 | 458,432 | 10 | % | |||||||||||||||||||||||||||
Corporate - General and administrative expense (non-GAAP basis) | 9,400 | 11,171 | (16 | %) | 20,486 | 23,442 | (13 | %) | |||||||||||||||||||||||||||
Adjusted EBITDA, excluding Corporate (non-GAAP basis) | $ | 265,061 | $ | 238,841 | 11 | % | $ | 525,765 | $ | 481,874 | 9 | % | |||||||||||||||||||||||
*** Not meaningful |
Two-year period ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Net income attributable to TEGNA Inc. (GAAP basis) | $ | 1,119,281 | $ | 834,323 | |||||||
Plus: Provision for income taxes | 350,810 | 262,662 | |||||||||
Plus: Interest expense | 373,677 | 416,146 | |||||||||
Plus: M&A-related costs | 18,184 | 26,225 | |||||||||
Plus: Depreciation | 128,949 | 129,689 | |||||||||
Plus: Amortization | 127,236 | 131,815 | |||||||||
Plus: Stock-based compensation | 61,462 | 47,182 | |||||||||
Plus: Company stock 401(k) contribution | 34,974 | 32,167 | |||||||||
Plus: Syndicated programming amortization | 142,664 | 139,793 | |||||||||
Plus: Workforce restructuring expense | 1,021 | 5,933 | |||||||||
Plus: Advisory fees related to activism defense | 16,611 | 45,778 | |||||||||
Plus: Cash dividend from equity investments for return on capital | 8,240 | 9,093 | |||||||||
Plus: Cash reimbursements from spectrum repacking | 8,517 | 26,153 | |||||||||
Plus: Net income attributable to redeemable noncontrolling interest | 2,135 | 427 | |||||||||
Plus: Reimbursement from Company-owned life insurance policies | 1,456 | — | |||||||||
Plus (Less): Equity loss (income) in unconsolidated investments, net | 14,299 | (5,207) | |||||||||
Less: Spectrum repacking reimbursements and other, net | (4,794) | (6,869) | |||||||||
(Less) Plus: Other non-operating items, net | (6,481) | 27,640 | |||||||||
Less: Syndicated programming payments | (148,229) | (145,058) | |||||||||
Less: Income tax payments, net of refunds | (343,503) | (230,749) | |||||||||
Less: Pension contributions | (10,140) | (24,158) | |||||||||
Less: Interest payments | (364,856) | (391,913) | |||||||||
Less: Purchases of property and equipment | (107,361) | (123,792) | |||||||||
Free cash flow (non-GAAP basis) | $ | 1,424,152 | $ | 1,207,280 | |||||||
Revenue | $ | 6,226,061 | $ | 5,643,551 | |||||||
Free cash flow as a % of Revenue | 22.9 | % | 21.4 | % | |||||||
Six months ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Balance of cash and cash equivalents beginning of the period | $ | 56,989 | $ | 40,968 | |||||||
Operating activities: | |||||||||||
Net income | 266,227 | 219,686 | |||||||||
Depreciation, amortization and other non-cash adjustments | 73,715 | 92,749 | |||||||||
Pension contributions, net of income | (1,070) | (8,781) | |||||||||
Decrease (increase) in trade receivables | 25,263 | (37,207) | |||||||||
Increase (decrease) in interest and taxes payable | 9,615 | (52,483) | |||||||||
Other, net | 17,637 | (17,471) | |||||||||
Cash flow from operating activities | 391,387 | 196,493 | |||||||||
Investing activities: | |||||||||||
Payments for acquisitions of businesses and other assets, net of cash acquired | — | (13,341) | |||||||||
All other investing activities | (23,819) | (20,911) | |||||||||
Cash flow used for investing activities | (23,819) | (34,252) | |||||||||
Cash flow used for financing activities | (223,787) | (145,947) | |||||||||
Increase in cash and cash equivalents | 143,781 | 16,294 | |||||||||
Balance of cash and cash equivalents end of the period | $ | 200,770 | $ | 57,262 |
Exhibit Number | Description | |||||||
3-1 | ||||||||
3-2 | ||||||||
10-1 | ||||||||
31-1 | ||||||||
31-2 | ||||||||
32-1 | ||||||||
32-2 | ||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Document. | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |||||||
Date: August 8, 2022 | TEGNA INC. | ||||
/s/ Clifton A. McClelland III | |||||
Clifton A. McClelland III | |||||
Senior Vice President and Controller | |||||
(on behalf of Registrant and as Principal Accounting Officer) |
Please keep the enclosed Terms and Conditions for future reference. |
Director: | |||||
Grant Date: | June ______, 2022 | ||||
Payment Date: | May 1, 2023 | ||||
Stock Unit Vesting Schedule: | 25% of the Stock Units shall vest on August 1, 2022* | ||||
25% of the Stock Units shall vest on November 1, 2022* | |||||
25% of the Stock Units shall vest on February 1, 2023* | |||||
25% of the Stock Units shall vest on earlier of May 1, 2023 or the date of the 2023 Annual Meeting* |
TEGNA Inc. | ||||||||
By: | ||||||||
Director's Signature or Acceptance by | Jeffrey Newman | |||||||
Electronic Signature | SVP & Chief Human Resources Officer | |||||||
4869-7830-4804.2 |
4869-7830-4804.2 |
4869-7830-4804.2 |
4869-7830-4804.2 |
4869-7830-4804.2 |
4869-7830-4804.2 |
4869-7830-4804.2 |
4869-7830-4804.2 |
/s/ David T. Lougee | |||||
David T. Lougee President and Chief Executive Officer (principal executive officer) |
/s/ Victoria D. Harker | |||||
Victoria D. Harker Chief Financial Officer (principal financial officer) |
/s/ David T. Lougee | |||||
David T. Lougee President and Chief Executive Officer (principal executive officer) |
/s/ Victoria D. Harker | |||||
Victoria D. Harker Chief Financial Officer (principal financial officer) |