TGNA - Earnings call 1 2023

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Operator

Welcome to the TEGNA Investor Conference call.

As a reminder, today's conference is being recorded.

Now I'll turn it over to Julie Heskett, Senior Vice President, Financial Planning. Please go ahead, ma'am.

Julie Heskett

Thank you. to conference welcome and and morning, our call investor webcast. Good discuss Lougee; President financial CFO, and and our and performance stand-alone CEO, results TEGNA's Today, review Dave our outlook. will Victoria and TEGNA's Harker, we'll that, open questions. for After call the our results, the with this May which and Commission we review Securities our as X-K as filed announced Hopefully, you've well to first Form had Exchange opportunities morning the quarter XX. earnings

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

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

reconciliations comparable those most release. of the press the to GAAP in provided directly measures We measures have

turn With call that, let me Dave. over to the

David Lougee

morning, and It's good Thank been good while. talk again. a you, everyone. to you It's Julie, to

given November we in after agreement last regulatory know, termination Standard protracted quarterly General Earlier XXXX, February a TEGNA has merger the of entered the with review. a we week, this of held As year. you not into call. the announced of earnings agreement Since merger

strong. and recent on of of the months, been have ground with termination post so The the outcome running stand-alone Armed of we Directors agreement. the for plan, this focused possible senior our our knowledge in is TEGNA management Board very would outlook hit

in share the we first a million increase $XXX this to sector to and the the a a lowest year company of positioned even the an balance pure-play and program within the week, capital became comfortably returning leverage dividend. We excess quarterly the to are announced repurchase to We we XX% have shareholders, the including steps after remain mid-Xs accelerated expect balance since uniquely with industry-leading sheet. level currently broadcasting

of economic strong very strong value scenarios. is variety and well-positioned we're confident balance shareholder assets in our generate to a With sheet, that TEGNA

have brands markets high-quality critical local local station network some both highly programming We digital key of large national first the The remains a most including across diversified and live and news, a by fill affiliations. in regions popular of that country, portfolio content run nonsubstitutable leading role we content and the popular highly differentiated available. network and provide, sports viewed live local geographic

And furthermore, income total extremely they in continue to well as excuse our dynamic time, XXXX, in EBITDA. revenue, subscription macroeconomic I want and to revenue, team execute during me, net achieving adjusted compliment records company

the will highlights the loss and portfolio Olympics the NBC stations macroeconomic Relative NBC smallest. Winter of Super with absence compared airing recall, was Bowl context the the quarter our political cyclical may to year-over-year, that, the Next, I'd recent on like as of for revenue on the the results, year, even percentage last with representing the due largely of of Bowl FOX headwinds. Super as more largest X% down of for Total and the you topics combination, as provide you revenue, our in first Fox with some the represents events network that to detail. Victoria well cover company year to these

Bowl the delta. So a Super is

continues cash AMS revenue, and was X% to flows, and versus contractual partially primarily basis, by predictable revenue by up X-year in TEGNA growth by supported revenue. total subscription or services XXXX, a rate marketing stable increases. driven On company provide advertising subscription lower offset revenue

was subscription X% an This year-over-year. grew quarter, and record revenue all-time

our approximately visibility subscription distributor with disruption improving last did a the which first year, subscribers roughly points In temporary lap portion a repriced XX% revenue. our we of a single X year, added significant Also, multiyear we to that last for quarter, of number. successfully

at renewal an traditional year. subscribers our the of of have additional for up XX% this We end

quarter and this national Bowl continue to impact decrease last comparisons of year revenue variables, XX% that AMS more was on stations in that the With year-over-year. the demand. airing and a the moment, account take Super NBC the that macroeconomic will but indicated, several a the Winter the into line in Victoria is I to absence Premion account well bottom Olympics in AMS said, including As to headwinds loss as advertising of single unpack down as a this. due detail

When account the Bowl, trends low-single-digits on down for reduction on basis. of TEGNA underlying Olympics, advertising a Super and out the national of that the were mid-single at and year-over-year you X-year noise digits the factor up Premion a basis single

we're category, imagine, can I highlight strength the also want the automotive you very something see. we're pleased is seeing in to which, as to

category recall, quarters may largest advertising several related the you to challenged due and supply auto is chain for our pandemic. was issues to As

report has I'm However, quarter. category third the quarter pleased consecutive generating very to recovered for strong and is growth strong the in steadily the second pacing year-over-year and

national and more as local with U.S. as households we've Combined Premion Gray, reseller to footprint platform, and by local Premion representatives. XXXX to XX% that ongoing solutions multiyear record differentiated well for with local advertising extended the backed just Gray's I'm in than and continues poised Premion, ahead, to our Gray. years breadth happy of OTT TEGNA share with agreement with first-to-market deliver reaches sales local of and stations. advertisers. is a revenue sales growth the ended industry-leading both forces of

continued attribution Investment to During effectiveness the of also value total focus the significantly in and is and national is Premion up the notably, modestly other revenue local advertising local focus has platforms. higher thesis year-over-year, reduction But by the declined demonstrate capabilities the relative campaigns account. enhancing to on again of and Premion of the strategic on and with was single recent platform's the margin quarter, National revenue revenue than Premion. Premion that for Premion driven

solution. best are and the advertisers awards, for innovative tech of within having award well numerous industry, ad recent Best Premion's including results Best recognized received tools for Synopsis the the

in strategic once that play a political will cycle, position to continue in battleground TEGNA has previous approach role preferred to over medium reach strategies year's the large advertising acquisitions break years, records. the cycle as expected and a presidential key critical voters. we again thoughtful presidential benefit the revenue. next XXXX It's strong marketing Through As stations straights we built political will election markets. TEGNA from

very First that's quarter for there's the lot fundraising very the stake thin both continue XXXX know. already strong, expected Congress in active, surely at of Add you margins to primary was and is a chambers in both and presidential razor that with GOP parties. to elections that, a as well-funded

Now turning capital allocation. to

flows. strong weighted and subscription business TEGNA's is high-margin political free durable reminder, cash towards a mix As which revenues, generate

me termination owed fee by TEGNA the Standard million discussing General. Now $XXX to begin by let

a We which to agreement fee will common shares completed promptly. accept entered equivalent be with an have into the market-based Standard pricing, to at General transaction TEGNA

which announced as press shortly, Monday's program, an us program will as million Combined, ASR complete repurchase end commonly X will $XXX retiring expect Furthermore, in quarter. near TEGNA order. be release, nearly shares these of entering in share third in the of result known accelerated to a into million we actions short $XXX the our

these capital of pending reviewing TEGNA's are the actively management accumulated excess that team Beyond Directors and merger. Board during additional the return actions, of

XX% of cash flow by the to announced also quarterly we the has demonstrating TEGNA's dividend March the have the TEGNA of operations. dividend XXXX, its long-term top conviction XX% on in regular increased of strong increase in

quarter. per on following stockholders the will pay X year, this record business declared paid clear, previously in quarterly share regular on of be the to be dividend TEGNA July Just the as increased of close of June dividend X. will of The of $X.XXX to quarterly

after and our operating value we leverage of Strong next free we steps flow performance capital an disciplined and expect million cash sheet. $XXX program, advantage ASR examine for with positions mid-Xx, allocation strategic the to with end balance use us Even a year shareholder creation. of industry-leading as net

the make as capital with reviewing forward weeks, additional look Over priorities, to views excess including return further TEGNA's actively to their and incorporate to the allocation capital to coming refinements management the of shareholders. Board we investors reengaging

across since our misinformation important initiatives information. its and TEGNA. want has which more users and while, strategic than underway a among quarter, continues VERIFY its some in were distinguish several reporting And daily quarter fought XX% and during it's on of of TikTok, update viewers followers to Honorees you I and now Award brands momentum most true the helping false the dedicated Now Webby unique disinformation strong grew both various named channels, stations VerifyThis.com ended newsletter, XXXX, the between at been ever, including Since VERIFY development see with online. to XXX,XXX to visitors its notable year-over-year.

matter a in their ahead stations able are viewers fact the role stories the voting XX cycle in operating the play check a news and strong on streaming owned they in continue and year-over-year TEGNA nearly XX% XXX ensuring election Roku them and increase of minutes critical hours just and apps trajectory the Fire month a upcoming apps quarter, streaming as of spent XXXX, in VERIFY Looking to visitor million for that TV March. to make the decisions. that growth will during with first the average

finished impressive local also professional college seeing of year-over-year. major video of the growth nearly during an with continues the increase network expansion driver network with programs audience and for in sports leading last the our network into unique Locked of year. views first quarter sports a On, to XX% quarter versus The increase be leagues On podcast Video shows with Locked X daily quarter. all XXX% continued major growth strong

focus local We complement continue as On's our Locked see on a national station to local assets. to national sports and

Moving now to our ESG efforts.

our We and to at our all we black, our increase progress and make of have color, progress serve. reflects continuing equity and people that communities TEGNA and to ensuring leadership. are representation diversity, important teams, in we our continue leadership the our goals, goals our content inclusion seriously take coverage stated role on of on achieving content the We of in indigenous, storytelling XXXX objectives company

and help journalism inclusive unconscious annual innovative program. expand nearly the of year, newsroom entering for further team skills tools us helps through newsrooms leadership designed to its leadership that in of this in storytelling. and managers part taken accomplish this managers engage Our have can X-month newsroom bias, is their inception program third inclusive use reporting this half Since managers This to to our for program, is includes the program, training. which people to newsroom inclusivity

center they every our employees of lives the one enable we resilience the and our the Delivering mission that do. news proud that of to We're each and every engaged in couldn't matters the of more work fulfill of determination that impactful newsrooms. of and very our people's us and day, proud make investigations are difference be

with And call Victoria. now to over that, the I'll turn

Victoria Harker

morning, us. for and Thanks, Dave. joining Good everyone, thanks

first our excellence of our to resiliency mentioned, the guidance our As and and financial Dave has operational creation. quarter shareholder business value reflect commitment and forward already results ongoing

our of I bit want and more the drivers quarter differentiation the Before little strength I a sheet on drill our first briefly financial detail. on down of to balance touch results, in

this you've rate with bond As XXXX, which no are leverage post basis. are net on X.X% well-positioned a average X.Xx, very modest of to all weighted morning, seen fixed of maturities we until at

the total undrawn As $X.X $XXX with ended until debt million. expire as our cash you've a a quarter which August of leverage and reminder, financial of revolver, only is already XXXX. of covenant And on seen, $X.X debt-related billion doesn't we billion X.Xx cap our

financial balance and ongoing of us number shareholder our longer-term and to immediate both a Tremendous afforded ways. by enables our in business sheet us flexibility value significant execution generate strong

regularly expect pending more capital have the while will the August. equivalent discussing XX% ASR our which our returning $XXX quarter fee, the in And third accumulated the information portion General excess to an merger share conclude termination forward step and agreement end we look TEGNA weeks. the the include mentioned, to a allocation expect with common program, we a plans accept you and in dividend. coming first trends shares all Dave of by As earnings to of scheduled ongoing second the quarter was with increase Standard in million We quarterly near million capital agreement to call business in to $XXX the

quarter first performance. look let's the our financial a take drivers Now at of

my on today focused as a provide financial non-GAAP consolidated comments drivers As basis as visibility results. our with well the is are operating of the our always performance business you into on to TEGNA's case, trends primarily

May reported can all of find press our period and release. earnings You in comps our prior XX data

NBC given our Super comparisons As first of advertising, year. faced across in Winter benefit the our revenues Olympics political Dave the year-over-year mentioned, the and tough last quarter Bowl stations

NBC group. we a As reminder, are the affiliate largest

XXXX. to and the revenue even events, primarily X% in quarter, For total first was company down year-over-year, including the due Olympics cyclical Winter midterm year elections

the on was XXXX event as Bowl a Super also of the NBC stations compared strong year aired stations. Fox last a The on factor to portfolio

NBC compared the revenue sporting first down revenue from than incremental XXXX. X% quarter X and the less Total events, of Excluding was the revenue political to

been heard As growth, by you've our offset increased driven revenue headwinds, peers, subscription partially declines have ongoing macroeconomic X% from AMS this which year-over-year. by was

increases, Subscription This against in subscriber the subscriber rate distributor was escalators with interruption mid-single-digit contractual partial year. last was a the declines. revenue partially growth quarter comparisons result rate of and single by quarter favorable offset experienced a

previously we Dave mentioned, repriced end year. end affiliation negotiated and CBS agreements subscribers of successfully this the at As our and XX% We successfully FOX we by network with XX% up have XXXX, of approximately the additional of for an XXXX. subscribers renewal of in multiyear

this X our our TEGNA's renew our political continue EBITDA of to near basis. agreements NBC cash more and than comprise look collectively and revenues subscription revenues, flow with end high-margin with produce and a free on coupled revenues, Big also of for We ABC, of year. the which account XX% our XX% X-year approximately subscribers total annuity-like to

unpack quarter. I'll drivers AMS performance first the of Next, in the our

seen, of including last Winter macroeconomic unique impact single due as Super unique to and well year-over-year quarter first you've Olympics of headwinds. year in to year-over-year last as national advertising low-single-digits as these broader factors, several a AMS our Premion well down the in were up on mid-single-digits trends quarter the quarter a NBC reduction year's XXXX. finished down and account from strong compared revenue the the underlying as Bowl Outside XX% first As stations compared factors, to

retail, recovered restaurants. and mentioned, and include and growth environment Categories entertainment year-over-year growing tourism. for Automotive, goods, category services, as telecom is health Other generating in macroeconomic quarter. home and packaged the our current Dave steadily largest strong headwinds care, facing has advertising year-over-year travel improvements, consecutive third categories include media, the

quarter. the Now turning for to expenses

fees. non-GAAP up driven by year, For were compared higher $XXX expenses operating the to the million, programming quarter, last quarter X% first

the programming stock-based lower prudent and compared Excluding when fees, expenses to due to X% non-GAAP for were management down last year quarter operating expense compensation.

as of Our first Super last driven political quarter revenue. revenue high-margin was in Winter EBITDA year-over-year, from stations margin was advertising quarter. Olympics adjusted year down well NBC XX% Bowl EBITDA of Adjusted reduced $XXX as and absence million NBC XX% the this by the

the the primarily high-margin, ongoing quarter, cash free political by flow thoughtful to million of revenues We subscription, and balance of continue $XXX generate strong our during careful sheet. our driven durable and management

As financial Form help on you second saw quarter metrics. few through we expectations, in quarter financial ahead, filing, walk quarter a XXXX. near-term year X-K model full today's second for guidance provided key metrics for guidance To our the the let's and

driven quarter expenses by revenue quarter, to mid- expenses increase year-over-year, For associated by offset primarily the low percent to higher digits revenue. be increased revenue. second company by compared total driven the single partially and XXXX, with to second quarter loss in down single-digit second operating expect high revenue forecast subscription of political we the the higher We subscription to in programming

operating second flat be we down. expenses costs, slightly programming to project to quarter Excluding

XXXX Now turning our full guidance year to elements.

you on also on a investor XXXX actuals can As for these our metrics find presentation our our website. reminder, same

be the XXXX, in range million. $XXX million to Interest For in million. Depreciation $XX is of to be million. million expense corporate projected to Amortization range to full expected the $XXX in expect projected is to be to in to $XX of $XX the of the the $XX $XX we year $XX to million. range be range of million is expense million

expect XX.X% the $XXX end repurchase. And the million. in of already in $XX be to the to to an net rate with as expenditures tax the range $XX we've to We of XX.X%. in leverage mentioned, XXXX forecast mid-Xx capital of impact million share effective including expect we range million the We plan

questions. with I take Q&A weeks you mentioned With your ongoing we thank ahead, for in turn earlier, As to look we'll reengaging your you to to forward the support. that, all and now

Operator

And from from Instructions] Fargo. [Operator Steven take first we'll question Cahall Wells our

Steven Cahall

again, a while. chat It's with Victoria. all and you to Dave been Good

As a a result, I've got few.

with would MVPD Victoria, did be like simple renewing that seems of I start, a and year, just retrans this year period. the your some than guess a similar over renewals you're that that side, to maybe math percentage last the XX% doing So you the on bigger affiliations

to this that's expect we to that such current should sequence Or timing So environment? going your net be grow year? retrans pretty tough in the is to achieve

David Lougee

Steven, I'll go that and take ahead one.

conclusion than past But You're no, I there is your will numbers negotiations. right be the the on are. to agree lot in the And renewals there. dynamics network some at what end on think There's what as to negotiated. far different a be the I wouldn't the as

Steven Cahall

Got it. just maybe on capital allocation. next then And

talked that reviewing you're about the you said, and return actively you some of X.Xx then also So leverage I capital. excess think,

like after So a to X.Xx North how you kind it shareholders? is kind Star of years? do of that about might just the a any about of thinking back you're and when how look couple capital model think strategic in and more we bit left the next cash deploy and Or to is goes over

Victoria Harker

Yes.

the said gathering the Frankly, think talking be obviously, the Board, my of with input Steven, couple last -- talking I with of in some I done business we in a spending comments, I the weeks, the as lot needs. of XX haven't terms think next shareholders, we'll months. investment obviously, over

on X.Xx and the we I more is will But with comments it's the for be leverage very, to that. this comparable a to think very So fair August fair year. and back of you color say in rest

Steven Cahall

maybe year FCC relates in last get open Or view, with from the that maybe reports, consummated. your is In I I'd to looks you a the opportunities? open over think the door to as business the merger. of is the it consolidation? you've why interaction around of you things for had Dave, future? your mean, issues And all think closes lastly, still that Great. lot just it on it the to this And Or the door do view like merger if love then wasn't lots other FCC for some broadcast with the

David Lougee

frankly, I was General think not not would liked. -- the don't lot what have did interaction the I'm interaction think of that other as they've the a of knows lot say, add I nor with I to lot Standard I nor a -- have FCC FCC thinking. a to have they on indicated, than much nobody really as have as

is to Curtis point topic. I really with because conundrum. the entire I was which think was with I of by The comment it the frankly, parties NAB the think very would And as little you sent would statement references hearing a, be to process know industry, it NAB the don't order, that a make to really a really unprecedented a nation interaction President, of the for fact would LeGeyt, I what people say. that what

So out future agreement on spun deal not record, I for the would a be because the the just be to to just this wasn't consolidation smaller. their going view point getting was actually company, was really of terminated some actually a what don't view I I -- another have off would that TEGNA will deals. were stations

wasn't it So really consolidation.

Operator

Company. from the Dan question Kurnos next Our Benchmark comes from

Daniel Kurnos

with couple start to let a off things -- retrans just So for go a back Dave. second, of me --

through this the process. subs dynamics all while have else listening the been get of You going about to everybody whole obviously talk issue fun had virtual to of you

the here? platform your expecting impacting much were and the growth a second, going is you look if of you to that the and going higher deals virtual you're want impact on subs about forward net forward give signed how rate gross to impact talk a of or I'll for just the maybe both So

David Lougee

understood trouble question, but you I Dan. your here the Little to Yes. I speak microphone, when think

the subs, be as those well. frankly, we believe, traditional So we yes, ourselves. the simply so doing from negotiating are We others, should actually -- think, We networks us certainly heard economics from as although virtual are too. we the prefer subs us would on profitable the that you've as benefit for certainly well,

will that interest But an which and in. but priority, potentially offset think But I it traditional that's regulators helps get in that negotiated ongoing, take to Virtual -- I and -- one -- a on high how may think, more written deals an to the there's loss be growing, certainly there's be the that So years is discussion certainly that come. to is those as subs. of

Daniel Kurnos

is follow up to more. that on obviously -- potentially commentary continue actually getting to And your your my up some for this the growth, up better to follow hopefully, as programming you. in on with around is we hear ways cheaper net -- I to follow mean, monetize But need But to networks audio.

kind know Is are of that's the in fixed those inflect that percentage-based slow you extent or of deals line if the group is rather I in think, fee, its doing, growth Is are with that changed that of view to either and commentary? that, you're there what So both intimating -- your view kind I to come obviously, relatively going reverse kind a peer of still than down? you're with at your potentially don't in continue to all.

David Lougee

intimating. is what It I'm

Daniel Kurnos

Okay. And here. just kind on then national of local outlook the

we more behave from a like I or sort on markets. broader of your balance kind markets any core trend don't As guys QX, know are to larger year? starting don't just little heard we've out some core. In national break bit on that others over if commentary of to view you that you should know I particular, look the of commentary the how have

David Lougee

I that's revenue, markets higher think percentage the always national your have I been and question, case. larger of understand a large,

businesses macroeconomic case, stressed. numbers, part I are my that is local company, And into most definitions National doing better be some local me holding fine. national commentary largest local. that the is have the is to really of too. to guess compared worse If here, It's the in are than I of companies, which and performing comparing little a you're asking and national, holding large our -- about bit in would local, our get you how what

spending. are People

investors showdown a company the the large just worried about recession, things potential think they debt -- national week's levels, are of same types about that holding very cetera. the I and next are at et

I more is macro big that based their gap And and us, more a out. money of But on in, little not is bit So whereas frankly. concerns, for trends economic but money would right? like said, spending there's local a are in So than the you core, are out what improving, second say the break don't are we underlying quarter, first trends they the quarter. is better

total in underlying Our net Victoria up million against in second political advertising $XX the we're is in as revenue, the said, has quarter But improved. last year. quarter second

in next I there's in -- do national with it's shakiness June, on week. it's a literally, side little think think a of got bit lot to pausing the I of

Operator

Huber We'll our question from Partners. Huber Craig take next from Research

Craig Huber

to to guys you talk again. Nice

On in the program. economy $X return thing share point, you maybe here yourself in something backdrop side now the say, economic of right X than another here maybe it that reasonably next and to and months rather large here? looks buyback that going announce, X at you give share of this the an from thought stuff, you to re-up process million commit share here, buyback the it's buyback months, okay to U.S. $XXX point sort -- opportunity were now if billion-plus at to capital accelerated unknown lot interesting the program Was assess of to things, guys over people thought a

David Lougee

lot we people $X do a of a thought Make buyback. didn't know would share comments, of couple we that billion Craig,

us. to news is that So

today we're out choose. So shares, we outcome letting Standard buyback, you with General fee knew and what -- through we would of announcement pay additive that my would be point remind sort probably that's I'd the which to the So their right? also

your think we're just we've stand-alone stand-alone. coming clearly are we're as following the to But to economy does, taking returns. thoughtful. as plans. But we've though, as show million and look, to time of steps at thinking, we back buyback To what we're of versus we million. and indicated think focused So this strategic and that and on need our the back question being these -- $XXX the out we been I a spending chute looking both well methodical $XXX in need shareholder the overall We as need -- -- doing dividend very steps

Victoria Harker

just Craig, launch But be point. well General of equity will And through that more period not days, the will both ASR the one the time in correct program mechanically in you're the the that program shares speaking, as next And ASR of to take coming as technical complete. weeks. Standard

Craig Huber

you'll get over So few shares from those the here Standard General weeks? next

Victoria Harker

days, of them. the weeks. Yes. The not I'm Correct. talking ASR. sorry, about bulk I'm

David Lougee

the the cover not days, amount be shares fee -- the to will General And Standard shares of weeks.

Craig Huber

maybe bit talk Okay. And little then a further.

Olympics the there, you You guys revenue for TV quarter? this, than your tracking quantify stations, for Bowl to it's in for What in number but won't are trying which say first quarter unfortunate, pacings suggest the better trying and first the the is please? your you ad are to quarter, adjusting the Super

David Lougee

that right. correct. That's I say trend ahead. -- meant The Craig. exactly to underlying go That's yes, directly,

Craig Huber

spending, here A by like kind long guys that to feel And was going the Do lot investment a sorry, terms deal a haven't go of we this what's you the then of a taken -- I distracted the with General company? company guys terminated going [indiscernible] questions, was through Standard that you given kind in management you're of deal as behind in the the internal where well with eye all your ball, outlook the the your talked taking as while. eye off with Okay. for deal off you puts several got happen here process of and to a the strategic to stuff. guys workers, unknowns, companies you ball,

David Lougee

pause itself so a of But we results think to agreement sort our doubt on spending, of that. of so We for -- obviously, about themselves think relative the -- we were relative were the merger speaks of performance because XXXX to I team in investment the terms no not keeping terms for way the speak that we certainly and we was can that, the the terms question. going very to of on strategic ball. of Obviously, answer were recently, company. eye until that's planning, the best long-term the in merger and -- -- given pause I obviously, But owners be on the the that agreement, management

Victoria Harker

not seen, the we the details it, merger that's maintenance of And in obviously, say regular you've business. to agreement Craig, of the and way, haven't ongoing invested

baseline in and invest merger to more So capture take or agreement that please But we that. new business. from a things in strategies a last did didn't things don't in invest year it types it the or we ability was we expanded 'XX, really standpoint, like of --

David Lougee

of I to also things, the macroeconomic bunch relative concern time balance and is coming the like don't issues okay? capital a go a environment position. of we the in, allocation of ready want chute and to environment we're sheet having shareholders given we're and buy imply this understand out now conservative a we Obviously, that to, the

note this that place. of the so feel of agreement we come other out merger we've in right And side the

Victoria Harker

our at X.Xx projected therefore, that leverage was reading obviously the right And alley. down

Craig Huber

if year next please? And just timing your I year, through my you for could, subs could, go if more renewals retrans question, one this of also last this and time. The

David Lougee

don't of each most I give are them of exact Well, but toward year. there, times on end the

we was And up of we've of how next the in -- this got on TBA. year, half back number had deals a this This year, we subs traditional depends long that So year. our XX% Craig. do

Operator

to go [Operator Instructions] Research. Barrington from next We'll Jim Goss

James Goss

what was can Craig to follow-up you hear -- One me?

Victoria Harker

you. hear can we Yes,

James Goss

Okay.

Craig was follow-up to what just asking. One Sorry.

a there you the the the cause give there future. reposition environment rethink to some have have did merger imagine rebuild? to Or because uncertainty you their opportunity might this -- the had an team or positions may the pause post-deal in does going that executive probably purchase. you people were to in the I With any that lost, on, business, Were key with

David Lougee

people organization, harder, as normal will the and Actually, the really lose what -- we've at folks. like at executives not matter has But it time, No. the future of refreshment were record it will course, planning cost we in of us a done during local be because past now. But seller. But standard looking Obviously, to Clearly, succession look always not Board we did of Jim. any kind resume no, will was you're the new the over track in as agreement what obviously, it of in that's part key of key as was -- But be going it did we governance we Board to their of just a uncertainty any doing made that's as at across level, right, interested the the when going under look recruiting the kind certainly past. with in of at ownership. a good happen. always merger

and back back the company stand-alone as So -- are a on offense. we and

James Goss

that they was place did stations, And were deal-related the take already? undone or spin-off

David Lougee

that that I no. around that. no, appreciate happen. tied there's same whole confusion will some I same because No, we have with was stations the to the so question not the all before. stay That been agreement We company know

James Goss

I'm and a potentially issue whole who always the a there attitude all charge you And that number and to given value. an pre with that's it were had forward company ambition. if was And Okay. if were have a if stand-alone TEGNA, that wondering stand-alone a to your determination that happened you benefited shareholder in seem of the company versus heightened wake to just somewhat interest the have of remaining parties in selling indifferent

David Lougee

absolutely obligation, our we focus do ever think unless that an do on have is intended it to to becomes chose the there ago. stand-alone opportunity right, X.X years an Board determines I to efforts like

to on focus results. be stand-alone is as company, laser a which best should is this the we Our produce doing in what running management

James Goss

our would that you question, highlights the given geographically, political developing, how Last to, positioning side? on especially Okay. are there attention any Republican things are draw

David Lougee

say would added states that states changing Jim, years Florida, but Pennsylvania, you the them Carolina, off be Arizona, and ago I'm of we past from are competitive dynamics going in on to side, on or think like now. And the think Minnesota. my just on have couple head, we of a of that the can Georgia, acquisitions our were top on, -- and did I Michigan and Arizona, Georgia North either and the to of of the just a going through number I presidential

change a those -- are, But portfolio is the some we from candidates there'll depending given footprint. fundamentally, it's disproportionately a always presidential have good we what sometimes -- on standpoint, So be change. who our have

James Goss

don't own cruises better... start up that some if think challenges. for Texas internally you know and has election some and I And I creates to

David Lougee

it's has it point turning kept for been Full point, state. disclosure, column. never because successfully changes was TEGNA at in us. red of producer is that some not one -- at in Republican the It think, a a such big And remains that but political purple, -- more laws, border I

if and will be primary of some dollars Texas. big we -- surprise, I'd big saw say, -- out So expect a see we don't some pleasant that to

Operator

last we'll And Arthur from Huber question our Doug go Research. from to

Douglas Arthur

clarification Victoria, on just Premion. a Yes.

hear know to continue national loss growth that tough about or going was the Or I to start the a reflect through a in You whether that blip what as in do -- Are the does about rolls flow talked local to of you How more X-quarter to as that on? a it comp? is XXXX? account. year we seeing you're going loss. don't rate account a

Victoria Harker

Yes. It's business. of the single account that's its some reallocating

what's have So do time. year I a the obviously, well going the to of to continue happen we over in know subsequently. business. But impact very will don't rest we or recurring next

So there areas. other benefits offsetting the growth in will of be

Douglas Arthur

I that? this at growth growth quite the a muddled reallocate of know you account little So through to year. frame going more sustainable XXXX sort kind is ex you don't the point, the this how But because is the outlook business of mean, how would rate in of

David Lougee

number a on put Doug. is local very Wouldn't strong, but it,

account not how on it but dependent it's gone, reduced. will -- so is And much that of be quite that

of which out So a chute business. a came time, business, over we we fortunate lot got local that I national when in comments, of the business, players. were will the -- have with That's of really We we just is this some a there's expect. But said lot national impact. even like my didn't

unfortunate a X kind upward, it's given account, but -- way moment at a metrics the we of this just an are that's this the it's Premion is the of volatile is start-up underlying So look organic a by time ship rocket and moment on it, that but good. in digital thing, size of

Operator

like the for I'd to closing back Dave any or to And over call remarks. turn final

David Lougee

join to and you Well, all time to taking talk us it's thanks again. today, to all good the for

sheet. well-positioned delivering advantaged and We assets are and very for investors future, coming forward our station we'll advertising to in efforts their balance the with reengaging as I Finally, be weeks shareholders. long-term period progress time said we investors long our with our for months look our looking in our to on before, the industry-leading update common. consumers and of this value and serving our after innovative feedback communities and to solutions trusted and impactful and to DE&I through content without Furthering you

Relations, our If great out well. to holiday Julie everyone, Thank and phone you number weekend as a of everyone. questions, all Head you have Thank have Investor (XXX) her reach additional is again, XXX-XXXX. you, long Heskett, please

Operator

Thank your day. does appreciate We a today's you. conclude Ladies that conference. and participation, and gentlemen, wonderful have

TEGNA (TGNA) 25 May 232023 Q1 Earnings call transcript