TEGNA(TGNA) - 2025 Q3 - Quarterly Report

Financial Performance - Revenues for Q3 2025 were $650,791,000, a decrease of 19.3% compared to $806,827,000 in Q3 2024[11] - Operating income for the nine months ended September 30, 2025, was $323,557,000, down 36.5% from $509,312,000 in the same period of 2024[11] - Net income for Q3 2025 was $37,116,000, a decline of 74.8% from $147,188,000 in Q3 2024[11] - Earnings per share for Q3 2025 were $0.23, compared to $0.89 in Q3 2024, reflecting a decrease of 74.2%[11] - Adjusted EBITDA for Q3 2025 was $130.7 million, a decline of 51.6% from $269.5 million in Q3 2024[25] - Total comprehensive income for Q3 2025 was $37.6 million, compared to $148.6 million in Q3 2024[25] - Net income for the nine months ended September 30, 2025, was $163,325, a decrease of 60.0% compared to $418,479 in 2024[16] - Total comprehensive income for the quarter ended September 30, 2025, was $37,612, compared to $148,560 in 2024, reflecting a significant decline[18] Cash Flow and Liquidity - Cash flow from operating activities for the nine months ended September 30, 2025, was $218,625,000, down from $435,216,000 in the same period of 2024[16] - Cash and cash equivalents at the end of Q3 2025 were $232,775,000, a decrease of 56.6% from $536,253,000 at the end of Q3 2024[16] - As of September 30, 2025, cash and cash equivalents totaled $232.8 million, with unused borrowing capacity of $738.2 million under a $750 million revolving credit facility[52] - The balance of cash and cash equivalents at the end of the period was $232,775, a decrease of 56.6% from $536,253 at the end of September 2024[16] Debt and Liabilities - Total liabilities decreased to $3,691,286,000 as of September 30, 2025, from $4,301,488,000 at the end of 2024, representing a reduction of 14.2%[9] - Long-term debt decreased to $2,530,015,000 as of September 30, 2025, from $3,076,451,000 at the end of 2024, a reduction of 17.8%[9] - The fair value of total debt decreased to $2.54 billion as of September 30, 2025, from $2.98 billion on December 31, 2024, primarily due to early repayment of $550 million unsecured notes[60] - The company repaid $550,000,000 in debt during the nine months ended September 30, 2025[16] Equity and Shareholder Returns - The balance of total equity as of September 30, 2025, was $3.1 billion, an increase from $3.0 billion as of June 30, 2025[20] - Dividends declared were $0.125 per share, totaling $20.1 million for Q3 2025[25] - TEGNA's retained earnings increased to $8.59 billion as of September 30, 2025, compared to $8.55 billion at the end of 2024, reflecting a growth of 0.5%[9] Mergers and Acquisitions - On August 18, 2025, TEGNA Inc. entered into a Merger Agreement with Nexstar Media Group, Inc.[27] - The Merger Agreement stipulates that TEGNA's common stock will be converted into cash at $22.00 per share at the Effective Time of the Merger[28] - The Merger is expected to close in the second half of 2026, pending stockholder approval and regulatory approvals[29] - TEGNA will pay Nexstar a termination fee of $120 million under certain circumstances if the Merger Agreement is terminated[30] Operational Expenses - Programming expenses for Q3 2025 were $247.6 million, an increase of 1.0% from $243.4 million in Q3 2024[25] - Employee compensation costs for Q3 2025 were $172.0 million, down 4.0% from $182.8 million in Q3 2024[25] - The company incurred $0.2 million in expenses related to a commercial agreement with MadHive in Q3 2025, significantly lower than $16.4 million in Q3 2024[71] Impairments and Provisions - A $2.1 million impairment charge was recognized in the third quarter of 2025 related to other equity investments[47] - As of September 30, 2025, the allowance for doubtful accounts increased to $4.5 million from $2.8 million as of December 31, 2024[37] Legal Matters - The company has ongoing litigation matters but does not expect any material liability from these proceedings[70] - TEGNA collectively agreed to pay $48 million in settlements with co-defendants while denying any liability or wrongdoing[68] - TEGNA is involved in ongoing antitrust litigation concerning local television advertising practices, with claims asserted against it deemed without merit[66][69]