Core Viewpoint - The E.W. Scripps Company will present its business strategies at three upcoming investor conferences in November and December, highlighting its focus on local journalism and media diversification [1][2]. Group 1: Upcoming Conferences - The Wells Fargo TMT Summit will take place on November 18, featuring a fireside chat with CFO Jason Combs and EVP Carolyn Micheli at 3 p.m. PT / 6 p.m. ET [2]. - The Bank of America Securities Leveraged Finance Conference is scheduled for December 2, with a presentation by CFO Jason Combs and Treasurer Becky Riegelsberger at 8:50 a.m. ET [2]. - The Noble Emerging Growth Equity Conference (NobleCon21) will occur on December 3, including a fireside chat with key executives, time to be determined [2]. Group 2: Company Overview - The E.W. Scripps Company is a diversified media entity, recognized as one of the largest local TV broadcasters in the U.S., operating over 60 stations across more than 40 markets [3]. - The company provides quality local journalism and operates national news outlets such as Scripps News and Court TV, along with entertainment brands like ION, Bounce, Grit, and Laff [3]. - Scripps holds the largest broadcast spectrum in the nation and serves various sports leagues and teams with extensive local and national broadcast reach [3].

Core Insights - E.W. Scripps met Wall Street's revenue expectations in Q3 CY2025, reporting sales of $525.9 million, an 18.6% year-on-year decline, and a GAAP loss of $0.55 per share, which was 72.1% below analysts' consensus estimates [1][6] Financial Performance - Revenue: $525.9 million vs analyst estimates of $523.9 million (18.6% year-on-year decline, in line) [6] - EPS (GAAP): -$0.55 vs analyst expectations of -$0.32 (72.1% miss) [6] - Adjusted EBITDA: $80.43 million vs analyst estimates of $68.75 million (15.3% margin, 17% beat) [6] - Operating Margin: 7.2%, down from 18.8% in the same quarter last year [6] - Market Capitalization: $224.5 million [6] Strategic Initiatives - The company highlighted the success of its Scripps Sports strategy and expansion into connected TV (CTV) advertising, with a focus on women's sports partnerships contributing to performance [3][4] - Management expects continued revenue growth from sports broadcasting deals and CTV expansion while maintaining a disciplined approach to expenses [4] - The company is preparing for significant political advertising tailwinds in 2026 and ongoing margin improvements through operational efficiencies and technology investments [4] Advertising and Revenue Growth - The intensified focus on women's sports, including partnerships with the WNBA and National Women's Soccer League, led to strong advertising demand and increased core revenue [7] - Scripps' expansion into Connected TV generated significant growth, with streaming now accounting for 20% of Scripps Networks viewing, and management projecting double-digit CTV revenue growth [7] Operational Efficiency - Recent station swaps and sales generated $123 million in cash, intended for debt reduction and balance sheet improvement [7] - Operational efficiency initiatives, including reductions in employee-related costs and restructuring, contributed to margin stabilization despite advertising softness [7] Technology and Innovation - Early investments in automation and artificial intelligence are beginning to deliver value, helping newsroom and sales teams operate more efficiently [8]

Financial Performance - Total operating revenues for Q3 2025 were $525.9 million, a decrease of 18.6% compared to $646.3 million in Q3 2024[23] - Advertising revenue decreased to $329.0 million in Q3 2025, down 26.5% from $447.3 million in Q3 2024[23] - Net loss attributable to shareholders for Q3 2025 was $49.0 million, compared to a net income of $33.0 million in Q3 2024[23] - Operating income for the nine months ended September 30, 2025, was $141.7 million, a decline of 35.8% from $220.9 million in the same period of 2024[23] - For the nine months ended September 30, 2025, the net income was a loss of $72,376,000 compared to a net income of $50,831,000 for the same period in 2024, representing a significant decline[27] - Comprehensive loss for the nine months ended September 30, 2025, was $72,268,000, compared to a comprehensive income of $50,933,000 for the same period in 2024[30] - Net income (loss) for the three months ended September 30, 2025, was $(32,959) thousand, compared to $47,776 thousand in 2024, indicating a substantial decline in profitability[58] - Total consolidated operating revenues for the three months ended September 30, 2025, were $525,854,000, a decrease from $646,300,000 in the same period of 2024, representing a decline of approximately 18.6%[116][119] Assets and Liabilities - Total assets as of September 30, 2025, were $5.09 billion, down from $5.20 billion as of December 31, 2024[22] - Current liabilities decreased to $437.4 million as of September 30, 2025, from $482.4 million at the end of 2024[22] - Cash and cash equivalents increased to $54.7 million as of September 30, 2025, compared to $23.9 million at the end of 2024[22] - Total outstanding principal of long-term debt as of September 30, 2025, was $2.701 billion, an increase from $2.605 billion as of December 31, 2024[82] - As of September 30, 2025, total other liabilities amounted to $380.75 million, a decrease from $464.57 million as of December 31, 2024[104] Cash Flow - Cash flows from operating activities provided $7,969,000 in 2025, a decrease of 96.25% from $212,389,000 in 2024[27] - The company reported a net cash increase of $30,813,000 in cash and cash equivalents by the end of the period, compared to a decrease of $677,000 in the previous year[27] - Cash provided by investing activities was $1.5 million in 2025, reflecting $40.0 million from the sale of a television station building and $32.7 million in capital expenditures[191] - Cash provided by financing activities was $21.3 million in 2025, with $1.6 billion in proceeds from new long-term debt issuance and $1.9 billion in long-term debt payments[192] Restructuring and Costs - The company reported a restructuring cost of $2.7 million in Q3 2025, down from $12.7 million in Q3 2024[23] - Year-to-date restructuring costs totaled $7.5 million in 2025, down from $18.7 million in 2024, highlighting a reduction in restructuring activities[67] - Restructuring costs for the third quarter of 2025 were $2.7 million, significantly lower than $12.7 million in the same quarter of 2024, reflecting ongoing efficiency efforts[67] - Employee compensation and benefits for the three months ended September 30, 2025, totaled $105,115,000, down from $111,767,000 in the same period of 2024, a decrease of about 5.9%[116][119] Debt and Financing - The company issued $750 million of senior secured second lien notes on August 6, 2025, with an interest rate of 9.875% and maturing on August 15, 2030[94] - The company has a debt repurchase authorization allowing for a reduction of up to $500 million in outstanding principal balance, expiring on March 1, 2026[102] - The company incurred approximately $13.8 million of deferred financing costs related to the issuance of the 2029 Senior Notes, amortized over the life of the notes[93] - The company entered into a new three-year accounts receivable securitization facility with commitments of up to $450 million, with maximum availability of $360 million as of September 30, 2025[195] Segment Performance - Revenues from external customers for Local Media segment in the three months ended September 30, 2025, were $320,636,000, compared to $440,785,000 in the same period of 2024, reflecting a decline of approximately 27.2%[116][119] - Local Media segment operating revenues decreased by $120 million or 27% in Q3 2025 compared to Q3 2024, and by $178 million or 15% in the first nine months of 2025 compared to the same period in 2024[176] - Total revenues from external customers for the nine months ended September 30, 2025, were $1,576,142,000, compared to $1,768,691,000 in the same period of 2024, representing a decline of approximately 10.9%[123][126] - Scripps Networks segment profit increased by 26.7% to $53.3 million in Q3 2025 and by 33.9% to $173.3 million in the first nine months of 2025 compared to the same periods in 2024[182] Tax and Regulatory Matters - The effective income tax rate for the nine months ended September 30, 2025, was 8.1%, a significant decrease from 34% in 2024, influenced by various tax adjustments[72] - The company has not reported any material changes to risk factors since the last annual report[13] - The company is in compliance with its financial covenants, including a maximum first lien net leverage ratio of 3.50 to 1.0 through September 30, 2026[197]

Financial Data and Key Metrics Changes - The company reported a third consecutive quarter of results that met or exceeded expectations, driven by the Scripps Sports strategy and strong sales execution [4] - Local media division revenue decreased by 27% due to the absence of political advertising revenue compared to the prior year, while core advertising revenue increased by nearly 2% [6] - The company reported a loss of $0.55 per share, which included various costs that increased the loss by a total of $0.15 per share [10] - Net leverage improved to 4.6 times at the end of Q3, down from 6 times in Q2 of the previous year [12] Business Line Data and Key Metrics Changes - Local media segment profit was nearly $53 million compared to $161 million in Q3 of the previous year [6] - Scripps Networks revenue was approximately flat at $201 million year-over-year, with connected TV revenue up 41% [7][8] - Scripps Networks' segment profit was $53 million, with a segment margin of 27% [9] Market Data and Key Metrics Changes - The company expects local media division revenue to decline by about 30% in Q4, while core revenue is anticipated to increase by about 10% [6] - Scripps Networks' revenue is expected to decrease in the low double-digit range for Q4 due to various factors, including a lack of political revenue and lower upfront advertising [9] Company Strategy and Development Direction - The company is focused on optimizing its portfolio through station swaps and sales, with recent transactions yielding strong valuations [4][22] - The Scripps Sports strategy has been a significant driver of revenue growth, particularly in women's sports and partnerships with various leagues [14][16] - The company is pursuing aggressive distribution on streaming services, projecting connected TV revenue to exceed $120 million in 2025 [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategies, highlighting strong performance in sports and connected TV revenue streams [13] - The upcoming midterm elections are expected to yield record spending across the advertising ecosystem, positioning the company well for future growth [22] - Management acknowledged challenges in the advertising environment but remains optimistic about the potential for recovery as economic uncertainties are resolved [72] Other Important Information - The company has been actively managing expenses, resulting in improved margins and a focus on fiscal discipline [20] - The Scripps Transformation Office is leveraging technology and AI to enhance operational efficiency and drive growth [20] Q&A Session Summary Question: What is the outlook for further asset sales? - Management indicated there are still significant opportunities for optimizing the portfolio through buying, selling, and swapping stations [26] Question: Can you elaborate on the impact of the government shutdown on revenue? - Management noted that the government shutdown has affected demand and buying from networks, particularly in the Medicare Advantage space [68] Question: How is the advertising environment compared to six months ago? - Management observed some strength in local advertising but noted challenges in the national ad marketplace, particularly in direct response pricing and pharmaceuticals [55][72] Question: What is the company's strategy regarding AI and cost efficiency? - Management expects to provide more information on the impact of technology and AI on operational efficiency in the upcoming year [78]

Financial Performance - Scripps reported Q3 2025 revenue of $526 million, a decrease of 19% or $120 million from the prior-year quarter[7]. - Loss attributable to shareholders was $49 million or 55 cents per share, compared to income of $33 million or 37 cents per share in the prior-year quarter[8]. - Operating revenues for Q3 2025 were $525,854,000, a decrease of 18.6% compared to $646,300,000 in Q3 2024[26]. - Net income for the three months ended September 30, 2025, was a loss of $32,959,000, compared to a profit of $47,776,000 for the same period in 2024[38]. - The company reported a net loss per diluted share of $0.55 in Q3 2025, down from earnings of $0.37 per share in Q3 2024[26]. Revenue Breakdown - Local Media revenue was $325 million, down 27% from the prior-year quarter, while Scripps Networks revenue was $201 million, down 0.4%[9][12]. - Core advertising revenue increased 1.8% to $132 million, while political revenue dropped to $5.1 million from $125 million in the prior-year quarter[16]. - Political advertising revenue in the Local Media segment plummeted by 95.9% to $5,141,000 in Q3 2025 from $125,213,000 in Q3 2024[35]. - Scripps Networks segment revenues remained relatively stable, decreasing by only 0.4% to $200,956,000 in Q3 2025 from $201,672,000 in Q3 2024[35]. Segment Performance - Segment profit for the Local Media segment dropped by 67.1% to $52,801,000 in Q3 2025 from $160,685,000 in Q3 2024[35]. - Scripps Networks segment profit increased by 26.7% to $53,299,000 in Q3 2025 from $42,061,000 in Q3 2024[35]. Expenses and Liabilities - Total operating expenses decreased by 4.3% in the Local Media segment, totaling $272,655,000 in Q3 2025 compared to $284,868,000 in Q3 2024[35]. - Interest expense for the three months ended September 30, 2025, was $59,219,000, compared to $54,442,000 in the same period of 2024, an increase of approximately 8.3%[42]. - The company incurred restructuring costs of $2,718,000 in Q3 2025, significantly lower than $12,665,000 in Q3 2024[26]. Cash Flow and Debt - Full-year cash interest expense is projected to be between $165 million and $175 million[22]. - Long-term debt (less current portion) increased from $2,560,560,000 as of December 31, 2024, to $2,636,738,000 as of September 30, 2025, an increase of approximately 3%[36]. - Total current liabilities decreased from $482,394,000 as of December 31, 2024, to $437,419,000 as of September 30, 2025, a reduction of approximately 9.3%[36]. Future Projections - For Q4 2025, Local Media revenue is expected to decline by about 30%, while Scripps Networks revenue is projected to decrease in the low double-digit percent range[22]. Other Highlights - The Scripps Howard Fund's campaign raised a record-breaking $1.8 million to provide over 300,000 books to children at low-income schools[3]. - Capital expenditures for the three months ended September 30, 2025, were $15,068,000, compared to $13,451,000 in 2024, reflecting an increase of approximately 12%[43]. - Basic weighted-average shares outstanding increased from 86,067,000 in Q3 2024 to 88,461,000 in Q3 2025[38]. - The company reported a loss on extinguishment of debt of $7,622,000 for the three months ended September 30, 2025, with no such loss reported in the same period of 2024[42]. - Total assets decreased from $5,198,575,000 as of December 31, 2024, to $5,089,588,000 as of September 30, 2025, representing a decline of approximately 2.1%[36]. - Total equity decreased from $1,318,014,000 as of December 31, 2024, to $1,260,448,000 as of September 30, 2025, a decline of approximately 4.4%[36]. - Net leverage at the end of Q3 was 4.6x, down from 4.9x at the end of Q1 2025[3].

Core Advertising Revenue - Local Media division core advertising revenue increased by 2% in Q3, driven by services category and national advertising growth due to strong sales execution and Scripps' sports strategy [1] - The company anticipates strong core revenue growth in Q4, supported by a new agreement with the NHL's Tampa Bay Lightning and growth in live sports markets [1] Financial Performance - E.W. Scripps reported a revenue decline of 18.6% year-on-year to $525.9 million in Q3, meeting Wall Street's expectations [2][6] - Free Cash Flow was -$15.07 million, down from $127.4 million in the same quarter last year [2] - Operating margin decreased to 7.2%, down from 18.8% in the same quarter last year [2][9] Revenue Growth and Projections - Over the last five years, E.W. Scripps experienced a sluggish sales growth rate of 6.5% compounded annually, which is below the standard for the consumer discretionary sector [4] - Analysts project a further revenue decline of 1.5% over the next 12 months, indicating a lack of excitement regarding the company's newer products and services [6] Cost Management and Profitability - The Scripps Networks division achieved a 27% margin, aided by a 7% reduction in expenses [1] - Despite a higher efficiency reflected in the operating margin averaging 7.5% over the last two years, the company still faces challenges with profitability [8] Strategic Moves - Scripps announced the sale of two network-affiliated stations for total proceeds of $123 million, aligning with its strategy to optimize its portfolio and improve local station performance [1] - The company successfully closed on the placement of $750 million in new senior secured second-lien notes, which were used to pay off existing debt [1]

Core Insights - The E.W. Scripps Company reported $526 million in revenue for Q3 2025, a decrease of 19% or $120 million from the previous year [6][24] - The company experienced a loss attributable to shareholders of $49 million, equating to 55 cents per share, compared to a profit of $33 million or 37 cents per share in the prior-year quarter [7][24] - Scripps has successfully reduced its leverage ratio to 4.6x by the end of Q3 2025, down from 4.9x at the start of the year [3][12] Financial Performance - Local Media segment revenue was $325 million, down 27% from the prior-year quarter, with segment profit dropping to $52.8 million from $161 million [8][9] - Scripps Networks segment revenue was $201 million, a slight decrease of 0.4%, but segment profit increased to $53.3 million from $42.1 million [10][34] - Total costs and expenses for the company decreased to $449 million from $472 million in the year-ago quarter [6][24] Strategic Initiatives - The company has focused on expense discipline, achieving a reduction of over 4% in Local Media and 7.5% in Scripps Networks [4][5] - Scripps announced the sale of two stations for $123 million, which is above industry average valuations, contributing to a healthier balance sheet [3][5] - The company is leveraging sports partnerships and programming to drive growth, with core advertising revenue in Local Media up 2% in Q3 [5][14] Future Outlook - For Q4 2025, Local Media revenue is expected to decline by about 30%, while Scripps Networks revenue is projected to decrease in the low double-digit percentage range [18] - The company anticipates strong core revenue growth in Q4, supported by new agreements and continued growth in live sports markets [5][18] - Scripps is committed to optimizing its portfolio and embracing technology to enhance operational efficiencies [6][3]

Group 1 - E.W. Scripps shares increased by 5.7% after forming an exclusive broadcast partnership with Major League Volleyball for the 2026 championship on its ION network [1] - The partnership includes live broadcasts of MLV's two semifinal matches and the championship match, enhancing Scripps Sports' portfolio of women's sports [1] - The move aims to strengthen ION's programming with live sports content to attract dedicated and advertiser-friendly viewers [1] Group 2 - Following the initial share increase, E.W. Scripps shares cooled down to $2.15, reflecting a 1.8% rise from the previous close [2] - E.W. Scripps shares have shown extreme volatility, with 79 moves greater than 5% over the last year, indicating that the market views the recent news as significant but not fundamentally altering its perception of the company [3] - The stock is down 14.8% since the beginning of the year and is trading 48.3% below its 52-week high of $4.15 from July 2025 [5]

Core Points - Scripps Sports has established an exclusive broadcast partnership with Major League Volleyball (MLV) to air the league's championship on ION, reaching every U.S. TV household [1][3] - The MLV championship will be broadcast live on May 7 and May 9, 2026, with the host city yet to be announced [2] - The partnership aligns with Scripps Sports' strategy to promote women's sports, complementing existing partnerships with the WNBA and NWSL [3][5] Company Overview - Scripps Sports serves various professional and college sports leagues, emphasizing local market depth and national broadcast reach [5][6] - ION is a leading general entertainment and sports network, part of The E.W. Scripps Company, which operates over 60 stations across more than 40 markets [6] Industry Context - MLV is entering its third season and aims to elevate professional women's volleyball in the U.S. through a united league structure, beginning play in January 2026 [4][7] - The league will feature eight teams initially, expanding to ten by 2027, indicating growth potential in the women's sports sector [4][7]

Core Insights - Perimeter Solutions, S.A. (NYSE:PRM) specializes in fire safety and oil additives, operating in a competitive landscape with peers like Montrose Environmental Group, Inc. (MEG) and The E.W. Scripps Company (SSP) [1] - The analysis of Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) is crucial for understanding the efficiency of these companies in generating returns [1] Financial Performance - Perimeter Solutions has a ROIC of 3.78% and a WACC of 11.30%, resulting in a ROIC to WACC ratio of 0.33, indicating inefficiency in generating returns [2][5] - Montrose Environmental Group has a negative ROIC of -2.82% and a WACC of 10.47%, leading to a ROIC to WACC ratio of -0.27, which is less efficient than Perimeter Solutions [2] - The E.W. Scripps Company stands out with a ROIC of 5.78% and a WACC of 6.50%, resulting in a ROIC to WACC ratio of 0.89, indicating the highest efficiency among peers [3][5] - Scholastic Corporation has a ROIC of 1.74% and a WACC of 7.77%, with a ROIC to WACC ratio of 0.22, which is lower than that of Perimeter Solutions [3] - Lee Enterprises, Incorporated, and Unifi, Inc. both exhibit negative ROICs of -2.95% and -11.80%, respectively, with WACCs of 4.50% and 6.78%, resulting in ROIC to WACC ratios of -0.66 and -1.74, indicating significant inefficiencies [4][5]