Scripps(US:SSP)2025-11-07 17:51Financial 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]