TEGNA(US:TGNA)2024-08-07 12:29Financial Performance - Total company revenue decreased 3% to $710 million, primarily due to lower subscription and advertising revenues, partially offset by higher political advertising dollars[1] - Subscription revenue decreased 7% to $367 million, primarily due to subscriber declines[1] - GAAP net income attributable to TEGNA Inc. was $82 million, with GAAP earnings per diluted share at $0.48[1] - Revenues for Q2 2024 were $710,363, a decrease of 3% from $731,506 in Q2 2023[18] - Operating income for Q2 2024 was $141,860, down 50% from $281,599 in Q2 2023[18] - Net income attributable to TEGNA Inc. for Q2 2024 was $82,144, a decline of 59% compared to $200,105 in Q2 2023[18] - Basic earnings per share for Q2 2024 were $0.48, down 48% from $0.92 in Q2 2023[18] - Total revenues for the six months ended June 30, 2024, were $1,424,615, a decrease of 3% from $1,471,833 in the same period of 2023[19] - Operating income for the six months ended June 30, 2024, was $279,420, down 39% from $455,154 in the same period of 2023[19] - Net income attributable to TEGNA Inc. for the six months ended June 30, 2024, was $271,704, a decrease of 11% from $304,408 in the same period of 2023[19] Cash Flow and Guidance - Adjusted free cash flow was $131 million for the quarter, with a two-year guidance range of $900 million to $1.1 billion for 2024-2025[9] - The company expects Adjusted free cash flow guidance for 2024/2025 to remain between $900 million and $1.1 billion[27] - The company provided forward-looking guidance for Adjusted free cash flow for the combined 2024-25 years, net leverage, and corporate expenses for fiscal year 2024[29] - Adjusted free cash flow for the quarter ending June 30, 2024, was $130.6 million, compared to $229.6 million year-to-date[38] Operating Metrics - Adjusted EBITDA for the quarter ended June 30, 2024, was $175,727,000, compared to $194,323,000 for the same quarter in 2023[36] - Adjusted EBITDA for 2024 was $349.9 million, down 12.3% from $399.3 million in 2023[37] - Operating income on a GAAP basis for 2024 was $279.4 million, a decline from $455.2 million in 2023[37] Shareholder Returns - The company returned $93 million of capital to shareholders in Q2 2024, including $72 million in share repurchases and $21 million in dividends[8] Debt and Leverage - Net debt as of June 30, 2024, was $2.64 billion, with a net leverage ratio of 2.9x[42] - The net leverage ratio is calculated using Adjusted EBITDA and is used to assess the company's borrowing capacity[28] - TEGNA is reaffirming its full-year 2024 guidance metrics, including a net leverage ratio below 3x at year-end[10] Special Items and Costs - The company incurred special items including retention costs of $2,198,000 and workforce restructuring costs of $1,830,000 in Q2 2024[31] - The company highlighted that certain expenses, such as stock-based compensation, are excluded from non-GAAP measures to provide a clearer view of ongoing operations[30] - The company faced significant M&A-related costs of $17,082,000 in Q2 2023, impacting the operating income for that period[32] - The company incurred $14.98 million in stock-based compensation expenses for the current period, an increase from $8.84 million in the previous year[37] - The provision for income taxes increased to $82.5 million in 2024 from $76.0 million in 2023[37] - M&A-related costs for the quarter were $356, with year-to-date costs totaling $1.7 million[38] - The company reported a workforce restructuring cost of $3.6 million in 2024, with additional retention costs included[37] Strategic Initiatives - TEGNA signed a multi-year distribution agreement with NHL's Seattle Kraken to air games starting in October across multiple states[7] - TEGNA's NBC stations are covering the Paris 2024 Olympics, enhancing local community engagement[6] - The company appointed two new independent directors to its Board of Directors as part of its regular refreshment process[4]