TGNA - Earnings call transcript Q4 2017

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Operator

Good day and welcome to the TEGNA's Fourth Quarter 2017 Earnings Conference Call. This call is being recorded.

Our speakers for today will be Dave Lougee, President and Chief Executive Officer; and Victoria Harker, Chief Financial Officer. At this time, I would like to turn the call over to Jeff Heinz, Vice President, Investor Relations. Please, go ahead.

Jeffrey Heinz

Thanks. to and quarter webcast. welcome year XXXX and call earnings morning our and fourth full Good performance Today, and Harker, financial our President CFO, results. our and Victoria will CEO, review Dave Lougee, and TEGNA's up After the that, we'll call questions. for open this Hopefully, press to release. morning's you opportunity had the review

at have available yet release, not you a copy If the of seen it's tegna.com.

to Before conference actual include them webcast and our are call results may started, differ. differ forward-looking also like that non-GAAP financial remind to our This I'd get measures. in and we you this Factors may SEC that outlined presentation certain statements cause filings. includes

We let have the reconciliations those turn to over me on our Investor in measures most measures to of provided the comparable call GAAP directly and of press Dave. Relations that, release With the portion the website.

David T. Lougee

Thank morning, and good you, Jeff, everyone.

this an So, share sale media successfully those have human we XXXX, our and of for we a the take resources TEGNA. by, on a Cars.com our time completing as In busy focus and pure-play laser growing expanding now transformation initiatives, you CareerBuilder. of know, strategic We into we and our spinoff and company the targeting been offer, completed incredibly the of has out the products capital are markets. deployed markets with all we the expanding

we of new is notably, with basis, Our and universe our fourth revenue deals. quarter from our paid revenue to non-GAAP up total year-over-year in subscribers our stabilization line of a XX%, which with subscriber on was comparable up X% see Subscription paid was a ramp-up OTT significant guidance. began

new up positive in in the meaningful impact AT&T fourth fourth very on sales our paid in past XXXX, we section. a year-to-year talked open consistently, high over-the-top new U-verse have XX to detail started actually reversal for as and division a quarter and obviously as growth, opportunities in markets grown subscriber during in of Specifically, of portfolio. TEGNA. our And the the I address very the particularly more discussed this a services trends of Premion. top were before, end continues our marketing given quarter, basis, advertising calls, development can I've subscribers DMAs Q&A the we've Premion, initiatives our the excluding we markets in at saw about that

XX% for end of more has our markets increasing continue the Premion major approximately as than some sales guidance. As a streaming the X,XXX high TEGNA will X,XXX delivered and desktops. advertising markets, directly in end in is of than of By which more XXX covers penetration more and regional team executed ad population. in well. in the more we're to on-demand national XXXX, long-form, and million Premion reminder, smart array broad live allows revenue local, devices, transparently the devices U.S. $XX a mobile our regional expand expanding year, customers force place to premium video The of by its Premion Premion programming achieved for platform above campaigns markets TVs, including and than clients and that across in services than local

space and in full continue those agency in the or our we'll our DMP, and in revenues, for footprint year Premion's strategic new For as expect revenue our content services building on to Premion's OTT that XXXX, leadership recent we extend from business. partners, Separate known be make this OTT advertising ecosystem, we double advertising into from branch an including Tubi to will it's investments data investments position and such platform, out Vizbee. management OTT as our to

are our that the across our transformation company. of Moving yielding to practices efforts the implementing proven we're business, side content now

key a that multiple content where specific audiences to audience and targeting future grow strategy platforms. we for as they is across the consume media, unique are creating compelling, segments retain sticky; We look relevant and

Sony live cable announced Daily a social a Blast daytime multiyear show in media, crowd initiative, Sister sources Sister through from designed and recently large LIVE, also programming is is One. each which women all Circle viewers exclusive and Pictures as Television we TV distribution day nationwide first-run original its which of Circle, result African-American TEGNA traditionally our owned content such As daily on our talk a underserved for audience. programming, real-time distributed with agreement targeted channel, for

our During first non-incremental local operations. XXXX, news wave of completed transformations of wholesale we also our

and around is for Reese facilitated incubate Waters, identify, which different talent, the come just that a so very have participation summit effort with that insights of breaks a very one bring programs example innovation weather, centerpiece His had that with of and sharp and Our from can is down we twist. urban award-winning the is delivering that several top around and XX new launch viewers been have targets digital we six our DC programs, company very and DC! the teams of and our is most summits a part the has successful like innovative recent Multiplatform Get to DC! Our Up the have as funny media got serving of of observations our barriers, process. Great DC! nearly audience a Get XXX those work Broadcasting very quarter, pilot including DC Up Cable Up morning need all for launched but communities. programs. investigative XX unique from and of we us news good a in and hip, awards Get well of of HeartThreads, we morning country innovators of audiences. are country. all in our central creative and innovators. We've is of summits, disciplined & traffic well-received an other day. such investigative new example us Washington, those our to out here Each summit out employees permeates than WUSA together this Girls to our From bring being innovative on a initiative. all show. in group daily every content produced Selling investigations by our uniquely unique a DC purpose wit, and native new which hear, do were Year any lit, as We both Star as the VERIFY, work and more like won stated pride differentiator named for programs, the is North products XXXX green purpose pilots, recent greater source summits, a brand, digital-first That company's recognized. We've and Broadcaster team local

a closed and Midwest very of we've The as Diego. Now, Midwest in target San stable is Television eyes turning something on ratings. purchase viewership strong and very and to was on M&A, acquisition two dominant weeks San our a market to Diego we us attractive our the loyal M&A while. for station had ago, an has

to the to be M&A for financial bringing continuing the benefits systems we'll landscape regulatory addition to synergies, multiple In to mechanical of increase move and performance. as initiatives their bear strategy. stated our and in many favor is And such Premion, products, our

a fended end the rule Just a consolidation. changes market stay few its of back, for off FCC weeks

will As particular. TEGNA benefit we've before, in this said

markets. station this the consolidation independent economics For portfolio in to the the most uniquely still We're majority of largest the has take owner very Four markets and through markets own Big much place station stations and optimize consolidating Four one well in two top are the in yet we small only to swaps where as of positioned our by as purchases. unlike our affiliates part, XX Big

the with about call start. the to potential used. all transactions always, on year lens off to financial same a evaluate more results, to As comments over I want is we The Victoria to always we've and I opportunistic few XXXX. before discuss a turn detail great disciplined make our And

share For the NBC in our ratings ratings. all adults NBC Super Super in in affiliates the of had affiliates key top spot the Buffalo stations XX-XX took four Minneapolis. demographic, number Bowl stations And NBC for in XX Bowl, TEGNA one the among and

similar the wrapped story a which Sunday. up For on Olympics,

affiliates were adult primetime among rated Our four Denver XX-XX of in and and the had and that one in demographic Minneapolis seven. stations stations respectively all we number two top NBC the

the very continue and prospects elections to for advertising political midterm to look TEGNA. XXXX advertising, for for specifically overall the Turning broadcasting to good political tied

races the have XX of as And very races Senate just a see add have they fundraising. years now, Across of look third with the day, And the stakes redistricting a there races markets up a for seats, to we're as each the the a each midterm since governor our a the down engagement unprecedented decided money record XX and and news of this the raising of year, away country, or those which nationwide, markets and further, now, of spending of in And they're that's have portfolio, corresponding and which now House comes the dynamic eight of going of those competitive. right state of the past upcoming into. the races you very covers level voter House third all be now have of be to right our half will which states, level races pump in many is XX engaged a battle we we'll the think Democrats with well. our in for feature new lot races, look in census, footprint will those elections not as our to eight our ballot in round three of of XX there competitive. seats of As of as next and gubernatorial competitive the the there's of

group as improvements our Victoria. for in we before, a recent very that handful we as meaningful this example. Arizona small said the large seat more I've about the of of as with because from of a in stations revenue political But say, Senate comes can. that with that, to pass months competitive very of number forecasting a we've are XXXX very market revenue, precision revenue instance a footprint had the markets, And addition call competitive one said, have As such year optimistic our large political just challenge I'll full with a to

Victoria D. Harker

Dave. thank joining morning, us. everyone, for Thanks, Good and you

well shareholder mentioned, capital, delever growth investments. As we financial are Coupled creating to our on strategic value capital through acquisitions to growth. strategy allocation executing our and accelerate organic the generating our accretive Dave we're to business content and while return and while firepower initiatives, our balanced continue with enhancing

with for quarter, I'd cover to a our capital financial consolidated and I the items Before review few results allocation special you. like

federal During deferred of which onetime new the million, $XXX fourth increased reported from the legislation $X.XX. tax EPS quarter, by we resulting a tax benefit

to continue combined producing for XX%, cash between and in a effective business tax tax rate as year, growth expect tax of which we XX% the of federal will $XX inorganic be and opportunities. state XXXX we savings invest reform, million As the result approximately the well as will

the EPS benefited Livestream. During we sale $XX investment a gain, This a to quarter, also about by from of benefited after-tax share. primarily due $X.XX the equity million

discussed we Hurricane caused Houston damage quarter, last As to significant Harvey station. our

were experienced proceeds. During insurance by we the to fourth operations costs running more quarter, than offset temporary there, related which

we gain result, recognized or $X a $X.XX a after-tax As an share. approximately of million

Beyond of related million recognized share. our totaled these quarter transaction-related items we which XXXX per notes $XXX about redemption as of million also costs quarter $XXX special of million $X.XX the the a share. fees last or items, or to $X.XX All-in, well announced $X as for we

on quarter results Keep order operations will business. of a be provide insight mind, in from financial fourth and into drivers our all the to on clearly our performance now the comments of today to financial basis non-GAAP results. focused my continuing in Moving consolidated

recall, media You both in been data contained press last true has tables small spin and few for the also as and reported only reported release. one to year. our past a digital segment prior we text marketing the comparatives now in quarters, report the can the includes business services all in of please consolidated find digital our previously Also, segment, the prior period which Cars.com

comparisons As absence services with from of to the the agreement were Cofactor. negatively our of a revenue result, XXXX and termination transition Gannett our impacted by

again million we of lap result were midyear. comparisons through impacted $XX until impacted a these items, comparisons As quarter. negatively unfavorably XXXX Quarterly this changes will be revenue these by

we've political advertising before, of results year even As impacted noted traditionally high driven footprint. by are concentration and favorable significantly by stations the TEGNA's our and cyclical of NBC Olympic odd spending political to drivers

fourth XXXX, the of advertising more fourth quarter our generated XXXX. million political in during context, the of than $XX stations For quarter

within revenue again, subscription negotiated quarter revenue the well XXXX. quarterly comparable than On XX% benefits the revenue. year. best X% as was excluding as Cofactor, well with impact that anticipated, of growth as was basis, X% advertising marketing total and MVPDs last revenue the range a of total in services Breaking further, year-over-year bit the So, the referenced. to than discontinued traditional primarily revenue revenue services year-over-year excluding guidance of as and quarter. well down a marketing up last reflecting start a growth marketing reported Dave political terminated $XX marketing This basis, up we million the a was on the basis, for delta, due down basis, more company on services the fourth in is sale from X% quarter Advertising comparable digital for a On and this quarter well lower just year-over-year the subscriber reported total increased advertising political within we OTT provided as for year. revenue revenue XX%, XXXX also fourth provided last quarter quarter was services the agreements the fourth digital

total X% fees, fees higher Now, due to basis turning our programming non-GAAP including compensation of in to a primarily were XX NBC, on earlier higher first-time stations, paid expenses, reverse to company XXXX. which year-over-year, began substantially expenses

terminated Excluding adjusted programming digital were operating down costs X%. expenses and businesses,

EBITDA quarter $XXX the margin was Excluding for XX%. of operations from of million, approximately a business $XX producing our corporate expenses adjusted million,

$XXX the XX%. corporate million, of year, full expenses, in margin was a also For excluding EBITDA adjusted resulting

continuing allocation expenditures totaled and as Now, $XX content the operations our well turning the investments efficiency quarter, quarter from million, capital during capital development, and infrastructure systems as in and to liquidity maintenance. fourth enhancements news reflecting for

$XX capital million headquarters and channel $XX mandatory new approximately previously approximately million repacking, facility relocation recurring of expect items million planned including nonrecurring and be as we $XX we in ahead, to Houston. to XXXX Looking in disclosed, our expenditures a

third early expense proceeds million net by million impacted the of CareerBuilder quarter Now, from turning TEGNA's quarter million you million disposition may had by through $XXX million to to $XXX our work distribution, combined third of operations share from quarter. rate with to notes, XXXX. Subsequent in Cars.com the fourth quarter, recall fixed cash last quarter, the CareerBuilder, free to quarter approximately fourth $XX the capital continued been the third allocation, the $X quarter the in as interest $XX put Cars.com were million we mentioned remaining XXXX of a was channel compared in redeem sale, to reducing the million significantly $XX and flow of cash per payment $XX received which in onetime

In to increase mind cash in was those almost assets. of impacted and to million quarter tax and impact spin tax fourth sale Cars.com Keep prior interest $XX addition, by quarter the payments. planned a relates and CareerBuilder that in the businesses the XX% of the this

As didn't prior of was producing to Television four a the leverage result, debt funding XX. net February total was until approximately which end, quarter acquisition billion, $X times, occur which Midwest at

repurchased quarter In addition, million, three-year fourth under $XX.XX $XX our per expanded share we share. the buyback in of $XXX at average program, price of shares an million

to a mid like comments on Television Midwest Dave's month. acquisition closed revenue on the Before which I'd last little expand guidance, I touch we quarter more first on bit

the financed and by pricing the of rate transaction products As The under cost of X.X price EBITDA, purchase expected retransmission synergies average leveraging expected conjunction be benefits. was rate San through market, price be in and an tax synergies on revenue driven will by hand are synergies times the TEGNA's efficiencies, Diego within marketing, attractive to capabilities. XXXX XXXX revenue rate estimated including annual strategic driven tax discussed, with facility. our mechanical and borrowing run digital we and initiatives EBITDA existing while multiple the and purchase million represents adjusted $XXX This cash of run credit previously step-up

impact transaction's on minimal will quarter a the late about close, to impact by and net initially the to minimal then have be will turn, increasing Midwest it four a of XXXX. end and ratio, the of our leverage times by Given two-tenths returning the about

XXXX the outlook about first based guidance, Investor address I know full on the May, Before on to also last what year we want comfortable revenue with we're that this landscape quarter year. political note we Day currently provided I

favorably well increased first quarter total Bowl have NBC or year XXXX entirely month. with unwired as of the better the competition and first incremental and the after be as Keep than the spending will and network been that by comparisons incremental having the our for anticipate Super the same Olympic quarter This for We'll us in this company marketing the into result Bowl less historical this will insight advertising a Olympics in Super same be in the incremental is stations. past quarter, and Olympics trends. dollars again in on the fewer not Super which from mind, occurring impacted revenue we During all for the Bowl deals the those advertising spend have is same on closes. factor quarter of XXX%

We impact expect terminated first business, subscription company revenue digital non-GAAP Midwest project to increase a to the XX% from Bowl first high as the quarter nominal quarter, as and total growth the revenue well Olympics, we digits by XX% company On Super station. driven for year-over-year. single revenue total basis, year-over-year, will in excluding up be reported the

the lowest quarter As turns a first and Olympics from the different sequential XXXX natural first quarterly events for generally fourth and seasonal revenue tentpole the of base services Bowl. the prior to reminder, is year decline the Super revenue is in no the the the a with quarter marketing quarter. in quarter business advertising like This to

as trends the of our XXXX. subscription base at of only subscriber MVPD we've past, the X% quarter, was approximately renewed end for revenue first the Regarding noted in

of drive XX% significant of percentage subscriber lower for subscriber the almost growth. in By this XXXX and MVPD our be not there half up renewing will are our year-over-year or renewal the will XX% approximately While base XXXX. in a annual beyond escalators comparison, during year, renewals

In the again quarter's digital the by once revenue terminated approximately business addition, million. impact will negatively $XX

to remarks. for final the turn let Now, me some call Dave back

David T. Lougee

Victoria. Thanks,

very we're I that already a position XXXX well of from TEGNA We want XXXX persistence, proud colleagues Though our can into accomplished of integrity. strength. innovation their see, passion, have year, are for of all and entered in to the you we thank the team's all new as and

scale Our gives value and and inorganic strategic growth. our that, trends and sheet both balance invest And quickly and flexibility move with let's DNA in XXXX organic for create allows advertising and execution, changes for consumer cultures us and opportunistically strong questions. our shareholder the it opportunistically beyond. us with in to strategy combined operator, will with and All that, of dual open up to

Operator

Thank you.

First question ahead. comes of from Jefferies. go John Janedis Please

John Janedis

paid a market in Good the small opportunity morning. know discussed in markets? XX the more Because about in do now there. midsize Dave, on color markets, see thanks being for similar know, large the phenomenon. talked you small with top but was you XX you an Thanks. YouTube subscribers. for for the to I up, the the trend I versus update an hoping past, I than

David T. Lougee

the for seen. remains be It question. John, to Thanks, Yeah.

go launched much markets those part – the They life growth and seen. large cable rural is, to other I've the of theory not think so, of – be bill to living about are which are cost out point to notably, the cord have incomes a markets just and first, see subs on than without people is in those. the that is of confirmed the in the last that are the is remains we different their the where most with trend continuing availability operators the those OTT markets lower the where they're bigger of and our what smallest really on there and cutting to I markets are without it services, profile take a very income

more will of than say So, that with much OTT XXX,XXX out three top I finishing because markets. I see. to I'm that majority in almost the we're in conviction year are those, the we a launch number what you is saw the services put – to the and But can could know the have really ramp-up I'll subs let going vast and John, the there. months of ago, wait with we

for we've they XX got were year-to-year. In as X.X% – I four So, said, top our top than in us, the the aggregate, DMAs. up stations more

American as I higher it income, positive markets, traditional you is not And for our remains as in And it, us that's higher think, taking very point seen. OTT some be there's services. growth, our trend, So, but cities, have the to but of even those price less population a most and net about homes markets, case, the two smaller well. affluence, sensitivity, actually, your us, though, to major very, for

John Janedis

separately, be to marketplace. then, look, as in All know, ad lot right. And there a you Thanks. of maybe cross-currents seems the

any I you but to don't the if underlying guidance, reconfirm, know you is regions marketplace how would outside? events, in to asset, strip call said I the if out think the So possible, just but Are it's the you this, Midwest characterize on out? there And that correct?

Victoria D. Harker

Yes.

David T. Lougee

Yes. ad Minimal impact, market, but about you're But question? yes. to sort just on John, the of asking underlying be Yeah. the clear

John Janedis

Correct.

David T. Lougee

sift Yeah. not flattish the say we Olympics we of what others, little But bit. I would look. to noisy quarter. heard think now. was say but think, break quarter it's But kind quarter the I market, quarter the underlying Fourth probably how a out I'd looks when right for that's it's a as of I'd little out all, and It's to year. the fourth from have and ad us say, of stronger a finish strongest us what still stuff, than it I you've it kind we it

John Janedis

right. All Thanks much. so

David T. Lougee

Thanks, John. Okay.

Operator

you. Thank

go Quadrani Our Please from Alexia next question ahead. comes of JPMorgan.

Alexia S. Quadrani

Thank Hi. you.

couple questions follow-ups. of a sort Just of

guess, to, experience XXXX range And going on XXXX of think were we come renewals last about I XXXX-XXXX. bit incremental, we think that? given always mean, should that for guys highlight How think to gross the have did that Olympics a end this with I in you fewer a of the I that should you case? how Olympics more retrans the sort less Olympics, I into how or then, you think, distribution do to year I little your Winter the compare guess, does is you mentioned experienced?

David T. Lougee

Yeah, take Alexia, reverse order. in thanks. I'll them

I think you're right. exactly

that living the and generated at did the we're a few escalators the end of So, subs we end. the deals we off at of XXXX

I a good out probably I actually as is good as worried. and the line retrans digits on but the feeling were think once – the before cautiously optimistic/maybe of are top said noise low year double obviously sifting this between – the on – now this for virtual we for a range us is we kind MVPDs was we traditionals,

couple and got the really market we're NBC it's but some now Yeah, large – on the a for that to in to fill and Now, this to a of got good other Victoria's from us in feeling, groups Olympics, O&Os gotten the early I network large NBC. to Because year, stations, little a me be have sales past we especially most they detail. we we're careful so about have we markets and portfolio because address let other about points and and significantly this, the basically, stations XX optimism stations development. our what more overflow given right, go of some did go revenue us have for to going in market really that the top

dollars, groups are and are that dropped roughly get. other this so, those million in sort or And incremental XXX% down heaven. small Those that's of year from don't stations money about dollars they're $X

$X – in that so related incremental $XX did this million. way, compared because going we're and million – – $XX XXX% $XX finish by whereas roughly incremental also that to So, the We to weren't just and But entirely million the Olympics drop's we of the for – to number. to back million I'll that they give at XXXX. that's forth they year so think and there, a money, compared

– the so subtracting that it's incremental on the losses million the for division are for at science, basis. $XX on we're and the your not under probably the it it's have XXXX stations So, that non-NBC pretty for which station had in But the just you for incremental, comp NBC in and an still it's have it this division XXXX over division year XX%. XX% close. just remember, We back exact under but is we'll

Alexia S. Quadrani

much. Thank Okay. very you

David T. Lougee

out sales, Alexia, exactly TEGNA And are to actually says sales loss add for I XXXX. take of heaven, from our as that, just flat you it, the to when that to what that called our is money Olympics that were

Alexia S. Quadrani

Okay. very That's you. helpful. Thank

David T. Lougee

Thank you.

Operator

go question ahead. next comes The Kurnos of Please you. Dan from Company. Thank Benchmark

Daniel Kurnos

I Thanks. trying just little higher I a what's space from on maybe investing guys and speaking, question. initiatives are and Dave, the kind people at level are Obviously, profile. of of your People happened a bit But think a to and gauge some reverse been looking reinvestment a margin of Great. in the lot think. with Premion. has what's higher, kind generally of and this going you are peers

more holistically how kind talked through us margin tax And of the the the a talked to bit already the in on in that You've months? from your of reinvesting about I to we should guess cuts. of kind profile XX payout can prepared over remarks upside you just little about you're expecting think sort next XX see there. all walk you've the of about But

of us help all can you really those of long how you give granularity initiatives, you so think did think if sort spigot guide I will be that people any the the of with to kind just about on, talk when feel but helpful. go-forward would on And profitability? comfortable Thanks. about can expense So, be some a just can of turns more

David T. Lougee

to going over Victoria. to turn it I'm

Victoria D. Harker

EBITDA of talked margin we a in operations – recurring XX%. Investor or an on XX% of recurring Day back mind on keeping Dan, business to in in terms Sure. the of range

is that of lower to are the share. end the take growth and we of in we Premion, at probably order the and I think this guide acceleration business in quite with because that developing to quickly point reinvesting range it

we in a still. particular, markets very post-XXXX that on partnerships, for depending that other we're but think Premion to stabilize other think would I comfortable XXXX, likely see or terms digital what that start I with margin in into we see range and on in opportunities bit of

David T. Lougee

Premion. Dan, granularity And, on I'll give you

think running intentionally share I'm that year by I margin at and digits we'll ramping you a past, right But do just long-term that's low because the a year Premion, it's help, zero that in are but for have the market – little full the we end, company. in as are margin for up said year. gives single just we've end, and year As grabbing that for not thing to by the next we a

Daniel Kurnos

it. great. Got That's

Victoria D. Harker

And, just close... to Dan,

Daniel Kurnos

Sorry. Go ahead.

Victoria D. Harker

– Obviously, as out just what very year. for environment, to just it's that today, on the I close given a different if Dave that to based that's no, political, impact close see Just in margins the was of mentioned, would we that political. terms saying and political in

David T. Lougee

way or the other. One

Victoria D. Harker

One way the other. or

David T. Lougee

Right, right.

Daniel Kurnos

Yes, I in unfortunately XXXX think what too remember well. all we happened

understand you things see quiet environment, than I consolidation, everybody's your camp. did that the that are sounds I the sounds of M&A assume just in Obviously, out go you asset out of else. it more market ability there kind available something like end also because the on recently what just But after relative on to anyone front. and the to So close. Dave, like nobody fall Sinclair-Tribune delayed hesitance the on push is it being political. you've really around probably

and timing all pick up. So just there when and your of kind of might that thoughts

David T. Lougee

that's conversations specifics. – obviously, any not But last just active case. There multiple about Yeah, I your talk I no, we fronts. – point, would would just on the are don't on

Daniel Kurnos

you much. very Thank Great. Okay.

David T. Lougee

Thank you.

Operator

Huber Research you. next Huber question The Craig ahead. go comes Please Partners. of Thank from

Craig Anthony Huber

Yes. Good morning.

quarter, you do I number added, clarification us have the here. a Super how the Bowl Just In guess, incremental? some for first much extra

David T. Lougee

had home – – Super it lower were million team, only – because about incremental, but The last had is that's Seahawks, NBC, million because when than it actually the we – that's they $XX Craig. in $X Bowl little added was it's Yeah. a the a Seattle in that in it's bit we game. And in

So, – revenue in we backdrop is were actually taking the that exactly was XXXX. to exact flat – that

Craig Anthony Huber

there Okay. start just in GAAP the you the there, us next in first in dollar that give can your question, much my up revenue say let San please? company revenues much just we figure trying high out the did guidance How – the what's amount? to acquisition – on total I'm digits. Diego, And annualized single for then I you guess me a how quarter, here

Victoria D. Harker

it's it that we and point It's out station in or announced about of terms broken talked EPS would accretive the size the we not terms we obviously, doesn't just so. haven't deal, of within whole just at portfolio in we so first one quarter. the the – that XX be When the – have material fact because closed. this of We and nominal months it it's

Craig Anthony Huber

XXXX us can you revenues for you like purchased? If the were what give what

Victoria D. Harker

mid-XXs-ish. I radio was the absent, if – think the well, the the TV's in stations

David T. Lougee

very those But for us... numbers are different Yeah. obviously

Victoria D. Harker

Exactly. Right.

David T. Lougee

our stuff, and ...given synergies so...

Craig Anthony Huber

did then, and can how in tell you also, it's fourth us the advertising please? the in And auto how tracking quarter, current quarter year-over-year

David T. Lougee

Yeah.

you quarter, first the the in the that So, for flat of in are how Is was quarter? And us Craig. second part looks fourth auto question? it about asking the

Craig Anthony Huber

Exactly.

David T. Lougee

the same. it's first is, about And answer the the in about flattish yeah, It's quarter. – flat

Craig Anthony Huber

percent this final change then, my question, year, outlook, net I please? retrans for your guess, And is please. What preliminary

David T. Lougee

but past, we Craig, the in that will next to and going guided this and we growth haven't will have We year on. have year, growth,

Craig Anthony Huber

Thank Good. you. Okay.

David T. Lougee

Thank you.

Operator

Kyle Please, of The go Stephens. ahead. comes Thank next you. question Evans from

Kyle Evans

follow-ons XQ? previous. into still tease it's know couple it Thanks. events the in be early, from Is about you in impossible I had you forward that sports helpful. the the Could mentioned apart and that look bit to of talk to there there look any but would little you A XQ. Hi. what's auto flat – a forward

David T. Lougee

a Super have percentage tell Yeah, than out, that in was Bowl although Kyle, Olympics past. you much years I auto of I actually don't can that teased lower actually and

is your the just late quarter. first big point us meaningful relative for second as that a lot have The don't we to are in of up quarter on it and the for we – will so fourth about placed in a these of second way To well. sort it – agency is drag I pace insight but would to be business categories a what have give any we So, quarter, it's just days, early. too say actually on

Kyle Evans

nitpicky, you migration. you of taking services the This is What maybe in two OTT your some you there? on but visibility have commentary do saw mentioned kind homes

David T. Lougee

in provider, up Some subs up the that us some the just is total for top went markets. of it went – those some And providers conversations subs themselves. with XX fact from of the

biggest homes the theory, just a lot probably But they've a think at now, would it providers, DIRECTV not that it's got going of to and dupe like, didn't in hard the be player that's case some we of but that doubt new that's out actually that's have one of least know being the up to could major them, before. there. the come So that just markets. But case with I brand of all be others, with I it from the there's the one

Kyle Evans

report commentary saw core I what in local, And you. but and any of Got national kind quarter. XQ you both between chunks just those versus of current two know don't on you

David T. Lougee

are better and national Yeah, both fourth than trends in I first. think local

Kyle Evans

National, a both positive in quarters? number

David T. Lougee

well, was our don't just I of down quarter, you, actually fourth likely in I breakout local the gains. with front in honest think, that slightly offset I to have by be – national me but

Kyle Evans

so Great. Thank you much.

David T. Lougee

Okay. Thank you, Kyle.

Operator

comes go Thank Please Wells ahead. Marci from you. Ryvicker The next question from Fargo.

Marci L. Ryvicker

reinvesting talked from excess across that Thanks. or Is going Premion $XX reform. the all Victoria, about million to your going you cash businesses? it is tax

Victoria D. Harker

of all under and revolver Midwest. the $XXX for drew pay the – about have million business we we to Across also

use tax reinvestment some get it's in the obviously, firepower cash amount retire of that more well products a but our revolver, services. and as So, in savings, broad-based creating as under we we'll as those the drawn to

Marci L. Ryvicker

XXXX our we so do the guidance give right us that non-GAAP for and QX numbers for we revenue? and GAAP Okay. the figures And comparable models then the have you gave you all for can the

Victoria D. Harker

total mean company revenue? You

Marci L. Ryvicker

Yeah.

GAAP for revenue have growth mean, you Just QX single-digit that I XXXX. so high –

XXXX then number? QX the number? revenue to right non-GAAP, the increase, And XXXX XX% what's non-GAAP the QX So, what's XX%

Victoria D. Harker

it's Hold on, very print. Hold on. small

David T. Lougee

Marci. working We're it, on

Marci L. Ryvicker

you, political so have we Okay. just Then for I'll ask pro XXXX you number to a forma do XXXX? compare can

David T. Lougee

Yeah. you're for quarter Yeah. Marci? the Yeah, asking,

Marci L. Ryvicker

political For forma the year, XXXX? pro

David T. Lougee

yes was year, for million It year. $XXX the we For the do.

Marci L. Ryvicker

includes Midwest? that And

David T. Lougee

No.

Marci L. Ryvicker

Okay.

David T. Lougee

the probably which much color, political that just $XX give the terms read the in first million No. And that in But you in into quarter, we I'll around did – more do as Good question. we'll too, just of XXXX. just also, – is of looks a but to same. coincidentally in year can that first I really nevertheless year color not that much where on quarter we're political. give the of is going identical predictor XXXX end like to come be, that out will going identical maybe it don't what to to the It's

Marci L. Ryvicker

Okay. it. Got

Victoria D. Harker

the you that your to to the back $XX back and comps businesses. out XXXX, the the geo million discontinued Marci, million first of for question And, $XXX total for for have quarter was revenue to

would million. adjusted be the $XXX So,

Marci L. Ryvicker

Perfect. very Thank much. you

Victoria D. Harker

Sure.

David T. Lougee

you, Thank Marci.

Operator

The you. Crockett go Please Thank next FBR from question Capital. Barton comes of ahead.

Barton Crockett

share when little we of maintain? about it terms of the mean, Hi. to renewals of specifically. want from of give some just and is wanted comp growing too question. to of I And see right this bit now people do able Code to know in and faster should huge don't negotiations the ZIP Yes, thanks wondering retrans, which But you on net pace revenues the for net maybe speak the in FBR a coming if in that B. probe kind Barton it's bit you I Riley could you you're concern to I think a the your us more clearly a for there? up? reverse we of still reverse kind more taking is, the kind I'm which of can that sector now. are is how qualitative, retrans retrans little comp you And XX%-plus the than describe

David T. Lougee

Yeah.

take the last Barton. So, first, me one let

our have portfolio till isn't have end is up Then, which And NBC, pretty then, the end small the we we this year, ABC stations XXXX. of portfolio. biggest a of part of piece So, the which of at at CBS our is our XXXX.

big to that. lot got to is retrans we're have But some So, go growing. a bottom we've and you going subs up line of ladders is over – can net have the see we don't

So, And range. the to the it good number past XX% continues said we a grow. in is

Barton Crockett

Okay.

ballpark point, gross or at in steady you mean, maybe it's the it's is I So, when this can sounds interpret it margin like the commentary? I growing say that the how growing, of

David T. Lougee

That's much pretty with the gross. Yeah, line right. in

Barton Crockett

right. That's great. All Okay.

your about you thing for Now, with thing curious Olympics, other is is the recurring the I exposure. a was NBC on which

things down going revenue maybe guys? Is on the that views put NBC of the capture? NBC a NBC issue that TV the meaningful that is mid Olympics the while we've One of derivative low And pressure what broadcast of some sister it networks. Does network total a going viewers to to for you're or to across mean than not noticed ratings platforms, a that was down double-digit that does like that with NBC a you were lot station more or lot all more with single-digit on is high their able maybe is operator your getting maybe online seeing?

David T. Lougee

a and on it's Look, it's actually cooperative no, this. Yeah, with relationship question, actually we Barton. a – good have collaborative NBC very

been Mark Board screens collaboratively from views Those Olympics as lessons have additive. fact, to In actually the and this NBC the Lazarus has Olympics. other think Affiliate to me about head in reached out other of other

primetime fact athletes, works that I that knew inverse you American think there did and story. people skating reason, a figure a figure did the in great when do know in very by American live skating so the actually whatever theory of year if American was for skiing non-live that – the the case because didn't great well, increases the that this well, It you is wasn't if know live, events, you American and an know viewing. was the the

that. years. – scrubbing with events of the in the to in in will with a U.S. Japan large NBC working my team job nice IOC and But that the really producing all So, in and the that they it I working two year factor. case we're the the I was NBC basically in be actually as job thought on really biggest going poor is of theory thought the performance – a think did prime data getting But this it main I good writ

not that aligned – So sell with to enormously to they still that, is it yes, right? so prime We important aligned. and them. are are Prime disproportionately all important is we them these them, but multi-platform views is

Barton Crockett

that is for views from any kind a benefit or secondary you of goose monetary platform get you? But the egg do

David T. Lougee

of the with We It was most there. do has that NBCOlympics.com have we don't events, monetization with get but NBC so some some NBC now. get do channel, good. Sports off no digital We off on Olympics, and revenue if site But, traffic and obviously, don't we cable never that platform. of lot a very have. with we we particularly something's actually running right other that localization, the

Barton Crockett

right. All Okay. much. very Thank Great. you

David T. Lougee

you. Thank

Operator

from question ahead. Barry next Lucas, comes Please Gabelli Company. Thank you. & The go

Barry L. Lucas

the dart unusual, horse if beat really Thanks you mind but good I that morning, you this a death was XXXX, to, would positives total? to would to in unusual at negatives were races throwing year's and don't or any want care much, political and there Dave. too

David T. Lougee

line We experience, question, color, for line On much XXXX, Row irresponsible no. up up It's it. the last is But races. year. to Trump say hell Murderers' we From the Donald don't accept have your it's to us XXXX what variability. Senate – too that we this of has I'd just had that same do a

year what as significantly is did than the do races a governors' to better money it looks few be lot going a better more of a ago. we proportion to However, have up gubernatorial races a years and line this

that have of toss there. the may a being effect So

instance, – I race given wildcard went that Texas That's in right a Republican competitive think that for although primary money now If on right variable. kind spending we impact don't now, XX% numbers. getting the we're of dramatic have competitive, then in on is, significant us have what's baked Senate for the the we're somehow of – a in seat race quarter. the would it state, that first in the our

we I seat, better weighted, loss although seats, our got – the Al relative of it good. two I we're say Franken said, governors' was, wasn't portfolio how think, but to it than Senate when in last Senate overall, Flake like based announced on months think Jeff looks resigned Senate Arizona offset Senate running, I'd the six then the So, the seats and races the I so very he

Barry L. Lucas

Great. that. Thanks for

David T. Lougee

you. Thank

Operator

at are There questions time. you. continue. this no Please further Thank

David T. Lougee

Okay.

at call again, questions, a you much you everyone. we XXX-XXX-XXXX. quarter look Thank earnings call time please very first speaking and the Heinz, thank forward to Well, on Jeff if additional you with your and, Okay. Have man our for good you, have day. know, you

Operator

this and conference conclude today. for Ladies call gentlemen, does the

now line a great disconnect may and have day. your You

TEGNA (TGNA) 1 Mar 182017 Q4 Earnings call transcript