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]

Core Points - The Scripps Howard Fund's "If You Give a Child a Book ..." campaign will invest a record $1.8 million for the 2025-2026 academic year, providing over 300,000 books to low-income schools in the U.S. [1][2] - The campaign aims to support underserved children in kindergarten through fifth grade who are working towards reading proficiency, with a model of providing two books for every $12 donated [2][3] - Since its inception in 2016, the campaign will surpass a total distribution of 1.8 million books with this year's funding [5] Company and Industry Summary - The E.W. Scripps Company (NASDAQ: SSP) supports the campaign through community engagement, involving employees and family members in the initiative [2][3] - The Fund collaborates with Scholastic Books to organize free book fairs at approximately 100 Title 1 schools, ensuring that each student receives 10 books annually to build their home libraries [4] - The Scripps Howard Fund is dedicated to promoting childhood literacy and informed communities through various charitable initiatives, including journalism education and local causes [6]

Core Viewpoint - The E.W. Scripps Company has agreed to sell its local ABC-affiliated station WRTV in Indianapolis to Circle City Broadcasting for $83 million, aiming to reduce debt and enhance the durability of its local station portfolio [1][3]. Company Overview - The E.W. Scripps Company is a diversified media entity and one of the largest local TV broadcasters in the U.S., operating over 60 stations across more than 40 markets [6][7]. - Scripps also manages national news outlets such as Scripps News and Court TV, along with entertainment brands like ION, Bounce, and Grit [6][7]. Transaction Details - Circle City Broadcasting, led by DuJuan McCoy, currently operates two television properties in Indianapolis and aims to expand its service to local communities through this acquisition [2][3]. - The transaction is subject to regulatory and customary approvals before closing [2]. Strategic Context - This sale follows other strategic moves by Scripps, including the planned sale of WFTX in Ft. Myers/Naples to Sun Broadcasting and a station swap with Gray Media, indicating a broader strategy to optimize its local station portfolio [4].

Core Viewpoint - The E.W. Scripps Company has agreed to sell its local ABC-affiliated station WRTV in Indianapolis to Circle City Broadcasting for $83 million, aiming to reduce debt and enhance the sustainability of its local station portfolio [1][3]. Company Overview - The E.W. Scripps Company is a diversified media entity and one of the largest local TV broadcasters in the U.S., operating over 60 stations across more than 40 markets [6][7]. - Scripps also manages national news outlets such as Scripps News and Court TV, along with various entertainment brands [6][7]. Transaction Details - The sale of WRTV is part of a strategic move by Scripps, which has also announced the sale of WFTX in Ft. Myers/Naples to Sun Broadcasting and a station swap with Gray Media [4]. - Circle City Broadcasting, led by DuJuan McCoy, operates two other television properties in the Indianapolis market and aims to enhance its service to local communities through this acquisition [2][3]. Strategic Implications - The transaction is expected to allow Circle City Broadcasting to expand its local news offerings while enabling Scripps to improve its financial position by reducing debt [3]. - The deal is pending regulatory and customary approvals before finalization [2].