Scripps(US:SSP)2025-05-09 17:41Financial Performance - Total operating revenues for Q1 2025 were $524.4 million, a decrease of 6.6% compared to $561.5 million in Q1 2024[24]. - Advertising revenue decreased to $325.9 million, down 6.8% from $349.8 million in the same quarter last year[24]. - Operating income for Q1 2025 was $27.5 million, a decline of 36.7% from $43.4 million in Q1 2024[24]. - Net loss attributable to shareholders was $18.8 million, compared to a net loss of $12.8 million in Q1 2024, resulting in a net loss per share of $0.22[24]. - The E.W. Scripps Company reported a net loss of $3,455,000 for the three months ended March 31, 2025, compared to a net income of $1,626,000 for the same period in 2024[27]. - Cash flows from operating activities were negative at $(3,309,000) for Q1 2025, a significant decrease from $45,436,000 in Q1 2024[27]. - The company reported total revenues of $524.393 million for the three months ended March 31, 2025, compared to $561.464 million for the same period in 2024, reflecting a decrease of approximately 6.6%[105]. - Local Media segment revenues decreased by $27.4 million or 7.8% to $325.4 million, with core advertising down by $4.3 million or 3.1%[146]. - Scripps Networks revenues decreased by $11.3 million or 5.4% to $198.0 million, impacted by lower ratings in key demographics[152]. Assets and Liabilities - Total assets as of March 31, 2025, were $5.12 billion, down from $5.20 billion as of December 31, 2024[23]. - Current liabilities decreased to $439.7 million from $482.4 million at the end of 2024, reflecting improved cash management[23]. - The company reported a decrease in accounts receivable to $520.6 million, down from $568.2 million[23]. - The total outstanding principal of long-term debt as of March 31, 2025, was $2,626,404 thousand, with a net carrying value of $2,558,994 thousand[78]. - As of March 31, 2025, total other liabilities (less current portion) amounted to $436.854 million, a decrease from $464.574 million as of December 31, 2024[95]. Cash Flow and Financing Activities - The company experienced a net cash used in investing activities of $(9,890,000) in Q1 2025, compared to $(5,085,000) in Q1 2024[27]. - Net cash provided by financing activities was $13,306,000 in Q1 2025, contrasting with a net cash used of $(45,441,000) in Q1 2024[27]. - Cash and cash equivalents increased slightly to $24.0 million from $23.9 million at the end of the previous quarter[23]. - Cash used in operating activities was $3.3 million in 2025, a decrease from $45.4 million provided in 2024, driven by a $17.2 million decrease in segment profit[158]. - Cash provided by financing activities was $13.3 million in 2025, compared to cash used of $45.4 million in 2024, reflecting net debt proceeds of $25.0 million[160]. Restructuring and Costs - Restructuring costs for the first quarter of 2025 totaled $4.1 million, which included severance charges of $2.0 million and operating lease exit costs of $2.1 million[63]. - The company incurred restructuring costs of $5.0 million in the first quarter of 2024, indicating a decrease in restructuring expenses year-over-year[63]. - Selling, general and administrative expenses decreased by 5.8% to $137,239 in the first quarter of 2025, compared to $145,693 in the same period of 2024[128]. - Employee compensation and benefits in Local Media decreased by $1.6 million or 1.5% due to restructuring efforts[147]. Tax and Interest - The effective income tax rate for the three months ended March 31, 2025 was 79%, compared to 70% for the same period in 2024[69]. - Interest expense decreased by $11.2 million in the first three months of 2025 compared to the prior year quarter, attributed to lower interest rates on variable debt[134]. - The company reported interest paid of $57,867,000 for Q1 2025, a decrease from $67,347,000 in Q1 2024[27]. Debt and Credit Facilities - The company authorized a debt repurchase of up to $500 million, expiring on March 1, 2026[91]. - The company replaced its existing revolving credit facility with a new facility with aggregate commitments of up to $208 million due July 2027[94]. - The company has $545 million in new tranche B-2 term loans due 2028, with interest charged at SOFR plus a margin of 5.75%[166]. - The company has $340 million in new tranche B-3 term loans due 2029, with interest charged at SOFR plus a margin of 3.35%[166]. - The new credit agreement requires compliance with a maximum first lien net leverage ratio of 3.50 to 1.0 through September 30, 2026[93]. Dividends and Shareholder Returns - The company did not declare or provide payment for the first quarter 2025 preferred dividend, resulting in aggregated undeclared and unpaid cumulative dividends totaling $70.6 million[116]. - The company is prohibited from paying dividends on and repurchasing common shares until all preferred shares are redeemed[116]. - At March 31, 2025, aggregated undeclared and unpaid cumulative dividends on preferred shares totaled $70.6 million[169].