MDP - Earnings call transcript Q4 2020 | Hawkeye Acquisition, Inc.

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Operator

Good morning. My name is Cree, and I will be your conference operator today. At this time, I’d like to welcome everyone to the Meredith Fiscal 2020 Fourth Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. now turn would to conference I Mr. Instructions] like the to over [Operator Lovell. Mike begin. Sir, you may

Mike Lovell

Good everyone and morning thanks for joining us.

financial begin issued Harty; are been the Certain these call news of Financial differ from Our meredith.com. Executive of filings. described forward-looking statements this the that at exclude will with SEC forecasts. earlier we’re a results our President this our include in Reconciliations non-GAAP that and impact on measures from release call are in in may included actual and morning Investor Officer, will Tom our non-GAAP slide discussing Jason Reasons morning followed Relations of end the are Officer, items. Chief special basis our this of adjusted presentation, section and on measures available by was expressed Frierott. which Remarks and comments have Chief for differences to is

later on of Finally, the archive website an be call available our today. will

Now, over I’ll to turn Tom. the call

Tom Harty

new continue role. his Relations taken Thank role recently a He gotten and include you other will to focus scope Mike of but Relations service Meredith. by Investor he many start to to over Mike, I has saying you everyone. you, in want good at know XX years thank Investor him the expanding his support of communications function is Mike, to communications to morning, responsibilities.

in IR near new We lead the expect a name to further.

everyone with we safe, impact as additional it supporting with Americans, to last morning. to Relations four, opportunity to audience two, see our continue marketing than They million inspiration earlier front morning. I’ll and and a find be, XXXX delivering trusted this advertising one, earnings more now business fiscal Mike priorities maximizing presentation quarter. posted to performance and I employees was and its three, on in release and issued COVID-XX to our release three, accomplished website useful. include center Turning our our think keeping news XX of advertisers, our detail. We’ve news had Investor remains top disclosures our results, our partners, including with you’ve referenced our And and initiatives to today, consumers our slide competitive free our of you’ll complement in hope a cash also our this you brand through update the that increasing We’ve XXXX, position. and fiscal Jason and take flow. financial engagement will greater improving XXX number start

Let me share a highlights. few

capabilities. our added we in and businesses XXXX, First, fiscal digital to

for capabilities, the consumer management cookies prepares content fiscal more and XX% includes consumers grew to our platform our bring built year. predict at videos our than to time. product example, and published consumer new video properties. advanced to XXXX operated technology well we technology activities. our more provide third unifies messages also legacy graph. the give the system, and tailor our audio a insights demand, supporting first-party Responding which we inform but our For the are robust same and taxonomy, digital to platforms with during given and proprietary This right This Video not and supported. any the to user only together a stack longer and to signals strategies. editorial most We in owned also personalized and views profiles, world It onto across proprietary trends a our roadmap, intent buy to data users us advertisers likely experience where ability products our new expanding platform no third-party identity data allows us real-time our

popular series the brands tell as in Parents a way an Southern of a increasingly podcasts Allrecipes, stories We to and under also launched new Living way.

been We’ve added space podcast. ShopNation We capabilities, new have the first years with a the are subscription then, seven Meredith avenues XX% strong Group the total revenue and acquisition growth to revenues more in to acquisition revenue Digital year. Since advertising from growth. entered our advertising of grew ecommerce an which ago. ecommerce fiscal have affiliate digital XX% for couponing, activities, ecommerce our up people XXXX. of National important planned including content including Media in commerce,

brands our content inventory engagement well these -- Importantly, platform offerings reach translate increase for agnostic are high They value and new across our and new demonstrate audiences to product sales content exciting brands our with and allow provide and team. trans well channels. us also

shoppers them brand brand any at The data sales campaigns. attributable first-time are their recent partnership close to Kroger’s already marks household to most directly incremental This data Kroger, in allowing to wins, new a and -- access sales including paying are moment. new playing and Meredith properties on marketers Our with loop identify advertisers together exciting have Meredith’s help their which relevant from data to data the an role opportunity Kroger. platform capabilities brings partnership first-party measure to sales

including is Every Circle to and efficiency. premium a with includes brands quarterly and magazine published closing launched National Media includes we’re a our portfolio to new this achieve several of television Second, new finance other realigned lifestyle author, XXXX. with also Property to goals. doing a on Coastal title driven price Brothers successful brands, brand the dedicated advertising host, now at their improve Group subscriptions newsstand This that’s Since launch in Drew Rachael women new bestselling This Media Ray transitioning our financial of in point than under July, helping note, We National are And Group, product brands, Ayesha Scott. Day to Family strategy In the we expansions previous proven realignments restaurant offering of brands fiscal basis. multimedia Of three a tour magazine profitability Jonathan Living, and series the Home. latter higher television a Traditional model. Curry and Cooking Millie improve Light Reveal, and our a host, with personal

weekend based includes FanSided Leveraging our and planned to television during program completed in now network across exciting Southern a XXXX. XXXX. scale of on we leading Southern been Meredith to fiscal launched the people expanded in our This syndication. an platforms shows brands. Money Viant we Brand, something in Similarly, daily weekly interest becomes the Media in early and Local and our XXXX our primetime brands fiscal has Xumo. Finally, was In we a last People two fiscal and is hope over time. the asset sales Living opportunity Living additional national show across Group,

ratings of now local consumer also each growth content the news of COVID-XX hours interest a Our Group continue Local crisis. producing to week. news as during Media result XXX in and seen local significant is in production and expand We’ve

from more inspirations Turning to pursued grow moments U.S. trusted than a number brands million to of are of regularly and in ideas, escape. times, advice, XXX and for Meredith the home slide who information, consumers consumers four, interact initiatives to challenging our important practical looking and we news revenues brands. with these engagement XXXX recipes, In fiscal improvement

audience. example, Meredith by and focused Allrecipes, National toward SHAPE fiscal home, include XXXX grew digital Media lifestyle that visits driven give Group, access the in on XX% compared growth year our in brands period, wide brands Stewart. food, These fourth prior and to strong health For an by quarter extremely categories Martha to in our

& was in fourth ecommerce full line the licensing activities. and by growth XXXX at the Gardens quarter at XX% year particularly Better sales from retail of Homes Our in XXXX. fiscal branded digital includes Apple high our It performance and grew revenues This News+ and fiscal marketing also and X% driven other consumer Walmart. products royalties, stronger

women. Allrecipes, Homes Our minute. is industry’s brand, is People seen points is to with industry’s United nearly all subscriptions -- strong magazines This largest million consumers. acceleration and States, largest an women Gardens nearly the & brand. we at XXX the On XX% million every of magazine the approximately also reaching unduplicated and which consumer XX is business has in average, number the is XX. of XX the it due Better newsstand most more XX two COVID-XX top sell powerful is the now growth than one our differentiation. the in of reaching

continue our mail digital properties, renewal see and and direct subscription lifetime that growth in XXXX our high channels fiscal in to owned strong value fourth search, paid operated include subscriber These campaigns. We various drive quarter.

For Traditional Magazine normal. partner seen networks we’ve and year-over-year titles mid-March, strong. higher for digital renewal as acquisition XX% up well. our consistent demand Since and than is rates subscription efforts are via growth our example, strongly with major of conversion all

above for XX% brands mail for performing than direct is campaign Southern twice similar performing A People expectations. Other to at our more example, performance. For of levels are target. brand the seeing our are campaigns Living

well addition, historical above In are trends. pacing renewals

at annually produces $XX Additionally, our from XXX newsstand issues Meredith special business, to Publishing Premium ranging $XX. prices interest

produce changing recognition. that brands are quality adapt data strong under us consumers content capability ability brands want to advantages, Our high and to consumer strong quickly the and consumer competitive giving trends have

added pockets throughout XXXX, drove $X.X we the During XX% individual magazine to ratings television bringing our on markets million. performance our year. strong stations our Media Local fiscal focus Group, In total at more their newsstand,

we’ll number in XX% of digital fiscal as sign-on as our during retransmission revenues example, also XXXX, Local XX% period, us XX turn from of it grew Group visitors our questions. our relationships XXXX. offer our ranked CBS number one sites drove taking seven we It to address Jason comments. Media the number by over sign-off. of come grew ratings renewed For portfolio to to to the and results July stations and markets with XX% I’ll our We closing affiliations. to your fiscal unique or of With to back Then two in proactive trends join consent update our overview, all revenue I’ll that current steps you we’re retransmission the across invite in

Jason Frierott

Thanks, Tom.

begin five. slide me on Let

$XXX portfolio would million, last been comparable prior a XXXX, down Adjusting year, year total basis. announced $XXX consolidated have performance, period. the changes or revenues Looking revenues at from XQ on for XX% million XX% were over down down the

titles, National excluding Consumer advertising down XX%. On were Of transition estimated strategic lower million $XXX another these Ray totaled Home Circle Rachael related consolidated Media profitability. X%, that $XX were changes a Money XQ to generated were consumer estimated prior changes basis $XX publication, Of excluding an delays portfolio an across revenues the while We Weekly million. On $XXX of declines year Entertainment related $X Groups. include Day were million, from COVID-related estimated across changes million. to million a other level, million, a continuing changes frequency a related to majority revenues million that or revenue cancellations Advertising consumer $XXX related down monthly $XX Traditional Group Media of comparable newsstand or COVID a estimate compared $XX COVID On the and improving down and or and was related changes portfolio XXXX changes, revenues operations Every and portfolio was magazines. we down down $X$XX a portfolio earnings As in advertising, impact performance a X%. premium both reminder, $XXX portfolio and National of million. Family Group for Local $X loss National and Media adjusting down XX%. newsstand total closing comparable revenues These basis, accounted million, million. million.

the including actions if investments, taken, in employee and resulting offset certain deferral of partially were EBITDA. in which So certain adjusted $XX million reductions sales decline, an estimated decline cost related the costs

EBITDA results lower grew Adjusted operating driver restructuring free XX%, activity economic was compared were basis, cost investment. cash or impacted working primarily due a of activities digital with return to consolidated flow and down to these to XX%, from decline. COVID year. Cash to by expect XX% costs On begins as improvements, all grew largest million down million, $XX levels. CapEx lower the and $XX to we normal last As being higher resource capital flow EBITDA adjusted the normalize,

than million, Turning performance $XXX The a mentioned start Revenues million. changes, delays We advertising, $XX $XX National estimate on comparable down consumer COVID-related to $XXX other a lifestyle by I’ll I National whole. XX%. down give were with activities important from slide changes, another and what’s XX%. impact brand Group during consumers most basis, better revenues On more quarter, those than slightly reduce the Group. million standpoint, accounted left-side revenues down National Media in the and food, performance advertising. fared to and or Media as the and with home earlier, From contexts the more today, for million, excluding impact focused a cancellations six. Group portfolio Media segment in portfolio were consumer-related brands including the on some To

COVID, of up negatively -- you fourth brands XXXX while by was luxury Adjusted As included down and were slightly impairments investment. XX%. that driven higher quarter. are slightly while key million estimated due did to The was the Operating expect, down travel, $X million with $XX entertainment million, million, or trademark impacted the more quarter year-over-year, EBITDA profit reduction not in $XX an drivers of million repeat. resource $XX $XX digital along

revenue. On XX%, million $XX down COVID-related COVID. or offset cancellations with page, driven million political EBITDA $XX Group Media the advertising the majority profit and by side $XXX and XX%. the and or down of million million, Media revenues an down million, Operating was advertising COVID-related adjusted delays. reduced Local non-political $XX and down down due growth primarily $XX XX%, accounted million down for $XX vast estimated Group partially by Local $XX or to right retransmission or was revenue, were million in cancellations in delays

XX% estimated performance, On down from basis We cancellations portfolio X%. million. delays by reduced changes, to excluding Advertising $X.X down consolidated Group $X.X XXXX changes, revenues changes National revenues revenues billion, or comparable estimate basis million a were down comparable related were prior down advertising XX%. $XXX Media $XXX related COVID an Looking a amounted On down $XX were million at portfolio were and XX%. or advertising revenues period. $XXX Groups. across down portfolio revenues the excluding Local the and related full National Media year billion, both million year

third-party million. portfolio an basis Additionally, revenues year. COVID Media revenues On and million, related million third-party support for revenue in and up political sold were was totaled million Consumer declines performance portfolio brand down estimated by Other XX%. include declines retransmission offset accounted flat. down $X.X revenues or million. production comparable million $XX $XX driven related were in as billion, Other $XX related changes, fee by a advertising non-political was projects, newsstand consumer $XX These estimated performance projects. programming, an excluding million video X%. were by Group revenues $XX partially episodic growth. or National were lower changes $XX $XXX for consent expected

of million, across from revenues year of full $XXX in a the lease previously net related we continuing last other with months million. which profit were non-cash down were For and special Bringing XXXX, These impairment consumer drove recorded together the of intangibles offset goodwill, loss COVID majority by related items the of operations special million resulting the revenue and $XXX assets. four of impact we taken XXXX and items, to months declined three estimate advertising, or mentioned. impacting year, actions the $XXX partially cost XQ

and year. lower to had activities XX% lower working down decline consolidated as cash -- due of improve Given restructuring to actions a and we The year. the economic XX% operating expected uncertainty, a flow COVID and to capital, until we grew CapEx the $XX felt as it driven in million. total, last cash and was grew better compared EBITDA understanding adjusted be non-political was On lower XX%, in these by flow to decline political basis, impact In from free the lower political million take estimate to advertising COVID a Cash to EBITDA. a necessary environment. $XXX conserve we adjusted

period to and Turning times critically million cash flow XXXX. heightened time to up bank, uncertainty. slide of $XXX of $XX March XQ with Starting the for year the eight. cash are at slide, Meredith, the the prior we X of during XX, million particularly Liquidity XXXX ended nearly top in and to important this

the balance $XX XXXX. revolver June of Our XXth, decreased at made reflecting repayment million zero to end XQ since

As revolver unused. the of remains today,

up had working in and free restructuring lower XXXX cash primarily of from July first free in was driven As at improvement and in cash million the of of operating by flow the this million lower the XX% cash XQ bank CapEx. improvement, cost year. capital prior from flow. million We positive. ‘XX, $XXX $XXX free we be of flow in fiscal cash approximately $XXX our environment generated activities This performance the of quarter to cash a company, expect flow of we’re We by free measuring end

to nine. Turning slide

and the expensive preferred rest two we partner, component half partnership last appreciate debt. XXXX, capital more compared our structure our equity, was equity years, XQ while our from During the over preferred a to the refinanced of support we our and this of

carried interest before at LIBOR plus estimate interest capping preferred our million debt reference, of increased the actions, annual deductible. taking For By equity annually X.X% our cash approximately lower $XX rate savings tax an that we both these XX.X%. rates and at being through new

the amendment that a in leverage new short-term We facility also ratio increases flexibility. financial revolving net credit the us into covenants, entered our financial providing consolidated more to

calendar in notes our term maturities, immediate comes in ‘XX secured due and in notes ‘XX. revolver and no have loans We unsecured calendar XXXX,

it for closing thoughts Tom I’ll to Now, XX. back on turn slide

Tom Harty

Jason. Thanks,

are of including our their and in today. local brands Our course activity up has Corporation quarter. advertising communities. less and health May last CPMs the fourth we seeing consumers the Living strengthening our their stronger information subjects our being campaign are trends Since update in Homes Southern became on are food, of Better earnings client July, subjects and families focused performers that These the Allrecipes, Meredith were on Gardens today news & digital fewer RFP In portfolio during of well picked and business. cornerstone and our the cancellations with these cover about the along delays. home indoor the are negative XXth, and

crowding expected out coming the in We advertising mid-XX% non-political trajectory National Media part to and As COVID-XX Due advertising the in assuming down see Media range. to our quarter, no revenues by other as see digits low-single mid-to-high we digital cycle. factors, Group advertising range down due or advertising look XX% macro our to first political Group down flat changes Local into print fiscal in in we in XXXX comparable well. the

to in XXXX. at level revenues XXXX similar advertising political expect fiscal fiscal We

to pursuing fiscal position best to ahead for full growth. Meredith look we XXXX, year several As we’re strategies

marketing First, we actionable capabilities and consumer continue support innovate partners, digital with to insights. to advertising and innovative will our our

an of to a Meredith our Action we’ve brands that XX the of This action May. launched months example, campaign in take magazine calendar Meredith X program Guarantee advertisers signed others This in a in a by as U.S. As help first six points result investing that the to of of guarantees program Meredith Audience and clients for new specific will grow that brand seeing program XX% to we magazines. advertising number XXXX. readers are share

providing are enables between clients to help trends. us consumers changing about to to and appropriate real-time data our tailor consumer create connections current direct We clients collecting with clients insights creative the habits purchasing our advertising also messaging to and pursue our helps environment. It This and us campaigns their products.

is new sponsorship and that Heroes, trends recognize pandemic. to way Media Local creating advertising Our on by help in a have COVID-XX harm’s who in themselves These clients put Group based also include series during workers emerged that called, consumer new the Frontline local those sponsored opportunities need.

offers to decade value proposition our focused we and Consumer our advertisers. folks revenues, with mostly and on Next, revenues activities services The portfolio for to several engagement ago, connection brands in of the approximately from strengthen offers with strong continuing to contractual portfolio reach position of long a account subscription stable XX% individual over consumer now the These of believe competitive remain for digital our revenues. related XX% both company total basis retransmission, our along demand licensing opportunity. approximately sources, runway of strategy benefits. our and consumer. important form we’re coupled are develop brand Consumer up and include a a consumer

costs. refinancing number steps advertising in from is to our when recovers. cash towards positions consumer to We preferred took credit benefit lower a we finally, of amending the fiscal and And proactive a including optimizing continue of goal XXXX, equity us Our our differentiator cost this economy revolving capital engagement and and incremental facility. spend

these flow capital fiscal XXXX paid in temporarily We we’ll activities and and COVID-XX for taken and financial uncertain XX% help times. more of cash With other provide These liquidity in that, open also to reduced drive of expenses. the strong common dividend, up pay fourth expenditures to your reduce pause our the growth in employees it in quarter questions. the response highest

Operator

first comes Wolfe [Operator question Instructions] Your John Research. from Janedis with

John Janedis

a a and talk seems increase to your morning. Good you potential guys comments the cost guess, talked your like the increase then, clarify further can on data? little savings versus shift temporary? Thanks. in costs are about with I to Thanks. It the in you are more in what’s given on Hi. of demo, secondly, in about platforms this And bring of more digital monetization the you strategy. year’s and the traffic first-party could terms going Tom, permanent then side, dominance just

Tom Harty

on process we’ve has the to and ask about kind that a for unified in this before, yeah, But, John, in And of us on. lot Jason Sure. advantages the cost of obviously, investment platform. I’ll question. it This working of kind we There’s weigh talked multiyear been, a been have. we

We editorial single entire tool have across a the set portfolio.

drives a have platform. And brand really And centralized now template data have we front-end a what efficiency. would We this we engine. call

now our for So brands. plus the same have of XX we’ll digital platform

We to first-party really obviously goes Borsa have combination we Officer. of Chief back data, But faster and first-party what consolidated our in the Alysia our this Data when hired and this drives view to our it data investment and as innovation. data point your a

going in making data. investments So our back where five started years we

all our much up monetize with of billions So that view efficiency like our data opportunities that of allows just allows data for by so and us we platform data, pieces Kroger. is first-party to just marrying of which was new then have this things and

data and have span. of So, in going companies before, actually ads, ads now is offered from that targeting have we’ve shoppable targeted it’s the measurement, to for are you to And you to investment then first offered we’ve show have the really this offer, target be be actual right? content, shopping we’re going it’s add the to shoppable you’re a cart. actually about able about consumers it’s delivering able what the ads how Kroger and about time, seamlessly Kroger, So CPG their kind for can and to the about closed their is -- of but loop to

that So talk we opportunity really about the it. will I we’ve think for years. And of big piece working of obviously, something cost been on, this is ask and a Jason a number very exciting, now

Jason Frierott

the Yeah. remarks, you specifically those John, reduction temporary. about in cost, the -- of said the in when think salaries in prepared terms the that employee as are obviously, we and temporary those,

we more like say days. -- kind As those to aspects the return living Other cost obviously these to specific travel more are are and items or look thing areas compensation. temporary, continue areas nobody at normalcy. that and COVID and traveling you related permanent. up to of reduce of some are of that’s employee in expenses to other I’d things travel is terms type a until Obviously, of find

of mixed right? a little bit So there, a bag it’s

John Janedis

I think Difficulty] it’s a [Technical

Jason Frierott

No. No.

John Janedis

you. Thank Okay.

Operator

is question Dan Benchmark Kurnos Company. with next Your from The

Dan Kurnos

morning. someone picture lead IR Good in Tom, when Thanks. you’ll in. announced have else they to name find the like whose

Tom Harty

you again, come. come always always You

Dan Kurnos

all this didn’t look get we Mike, you’ll to missed. morning. Unfortunately, be

pretty A, a B, still then know, you I turns powerful I then, I you’ve in of or down ecom a on seen not a there, is and much big working and to percentage rev, trends that big the video would extent following me, digital, Allrecipes importantly, CPMs Jason, at be one up bit so should just doing getting drag around maybe I profitability. a particular, a it’s to quantify moment, in little the People you seen much target out digital curious, look, ultimately ecommerce digital, quantify question John’s on is CPMs, shift are know of guess, how or kind understand a it’s it more trajectory around digital piece? be more don’t And we’ve to you’re that the vogue little do just guess, be programmatic celebrities help obviously, sort bit for So, there. whether what how trajectory? portfolio, a And component to the going more of couple way But on as maybe don’t Tom there? for are the the seeing, any of well, to you both have revenue, or us of Just can just lagging there

Tom Harty

Yeah.

out, as the specifically, From business different and trend were phone a than if who’s broadcast trends the a on seeing digital So your one Patrick any so People let questions have that of but wasn’t month very kind last generator. we as make a the sometimes actually, because standpoint actually to during that side when obviously, July, comment, through activity with the digital there been few year in brand a it, have early from of worst very, last We number the you brand business just time. first the around quarters McCreery On five whole, similar remember the reverse. we this to but recession. broadcast point, industry. And It the business our as on the and were I are pandemic I’ll profit side me we basically for the us had the business early is start to quarter was I broke, People, performing This on, to It’s stopping. the number important, questions, a our it. and traffic or one hot. traffic the some of not believe we’ve lot start see like of on celebrity long against to also the kind Media going related seen things celebrity back and time come But up and took very the took -- happened Local perspective, oils economy. of that. lived there’s the in issues a of It the on ripple broadcast a

held programmatic. about was digital and back kind a of inventory and was a have on beginning slightly. say up going flat that we’re has magazine pullback it’s performing it in heard And to Programmatic Those have a again, ebbs was the And early pricing in first business me flows. of my trends projecting of lot think to actually had remarks bit It quite that, down again. you’ve really been actually business changes we firmed. So up be reversed we’re our slight because coming the digital of But those quarter some the strong not It’s and June currently, it is reversed quite question trends timing. your closer in week-over-week broadcast. better, now I that to and in of to back. and July really in

in obviously, a seeing which we’re up that good the shows demand firming and So in rates area, very marketplace. is, trend

were you the think I I I’ll asking last it. -- take go side, back, cost the On part about think, me of let and

not to looking taking what ecommerce me think going XX%, obviously, you that is that be action business about to we say year over the we’re to kind do. of brands think out, is we it into take and pie give you piece it’s XXXX, has what been further women through and hard we’re ecommerce to now that But for our projection leaning we’re a on a fiscal it. fiscal our exact perspective. going exactly will activity. inspire I I number in mid-XX%s today close business But of for to that give we’re But able from as projecting that, up what an

Difficulty] [Technical you So that help

Dan Kurnos

Yes. No.

questions You two. to all in you. got my of Thank XX

Tom Harty

Great.

Operator

from Fargo. is Wells question next Davis Your with Herbert

Davis Herbert

taking the for Thanks everyone. questions. morning, Good

reduction next or I debt time. On to transaction sales, over wonder expectations of year. you and things Is flow maybe side this cash your by possibilities did plan for earlier the asset nature year after talk you so? could your about debt there over about accelerate credit the Thanks. that guys if free the talk reduction

Tom Harty

top reduce top our before get on Board that’s finished lot specifics a into Jason debt timing with and specifics. transaction some a We But But in more took a this We debt. I’ll of just obviously on top goal, that. our and of one maybe our the our is, that’s you little we’re transformational for priorities. firmly, bit give said priority priorities of meeting moving underlying to a goals our about can I’ve our week us Jason forward. obviously, let

Jason Frierott

our reduce terms our terms -- main mean, I in Yeah. in said, is now to right flow reduction, free of cash debt. as priority, with of Tom debt

possibilities. specific, of non-core terms are In sales assets

of terms what -- in portfolio doesn’t, et what fit the evaluating cetera. what fits, always We’re

this create and So that at not really ad-hoc opportunities. more are those could time. planned But

you a want the of So evaluate I overall do we it wouldn’t portfolio. terms to specific direction. But give in

more obviously, debt cash will of And terms right point of really of in the conservation as So reduction liquidity expensive prioritize unknown and on focus first is terms of right now reduction is now, market generation free most key cash and the flow here. it’s focus really on a to debt. of to we of the in in interest. But of terms

in liquidity and in point in at time priority But either us everybody definitely over to reduction of one forward and this important number us. environment. the Looking for the more obviously long-term terms terms debt Having of is is advertising else COVID the priority. that

Davis Herbert

mean, at Okay. Difficult] [Technical And just the most debt, a that on following up to your now. I on bonds par right note traded discount

consider? So is from perspective payment that buy restricted Is you in something open -- to bonds back do you flexibility will that the market? have the

Jason Frierott

think the need we in point to but in the -- changes time want I down would I wouldn’t in be increases absolutely a situation when that at pay and it. be consider wouldn’t a the into the in something more But cheap market have our consideration at Yeah. is for rate, clarity where liquidity. We future. we we transparency the unsecured

of is say. So timing, it I’d the balance

Tom Harty

you, kind think but we advertising. know. earlier it’s I that sequential and crossed kind hard some, flows, ebbs obviously, year-over-year, of mean, living also, the right optimism that think, So, beginning probably, improvements listen COVID. But maybe I is, to of I in right? cautiously the we we’re experienced seeing down time our But have still of we think, in optimistic we’re now worst just it’s we’ve

doing the you that we’re prudent position to where position being I we’ve difficult cash times at we’re improving is most our numbers recorded in been if Jason’s And cash company. really the point. So of look our what one think the today, for

fiscal look year we’re to act then trends as appropriately and and as the and look kind we So on we debt. our new out some going of our of adjust enter see

Davis Herbert

And Great. a have couple did ups. of I follow

the and up percentage subscribers for renewal? that you stands On AT&T this you side, can the have fiscal about the renewal, retrans talk of where year coming

Tom Harty

Yeah. Yeah.

Media that. and who to take McCreery I’ll the the ask Patrick So we have runs on Patrick Group phone Local

Patrick McCreery

coming cycle for Yeah. for and our we your question. renewal. renewal in ‘XX, last with successful Hi, this fiscal Davis. subs X% up Thanks up of about AT&T We’ve in have

Davis Herbert

AT&T gotten you’ve so wrapped all and DirecTV up? X%,

Patrick McCreery

Yes, sir.

Davis Herbert

pacing advertising for period, And that That last or then the period, longer that Correct, the for Okay. Great. guidance was correct? just piece. my fiscal quarter. is question you gave the over first was for not a

Jason Frierott

correct. the That’s quarter September. first Yes. That’s in ending

Davis Herbert

Okay.

Great. Okay.

confirm much. so Thank Appreciate that. it. guys want you Just to

Operator

Kyle from is question Stephens. with next Evans Your

Kyle Evans

down number? you with July congrats. Thanks. Local XXs guide, mid on am start Patrick give for I us us glad pacings lot quarter I a the of fourth down questions. could have intra-quarter Maybe core you segment saw with XX and what a is XQ a call, Hi. tell Mike,

Tom Harty

Yeah.

hi. -- For How you doing? Kyle, are

Kyle Evans

Great.

Patrick McCreery

was even For fourth a we give better yet. you month-by-month July April calendar I’ll XX fiscal -- XX, and minus and June minus May breakout, and minus is second XX,

We are improvement. month-over-month seeing sequential

Kyle Evans

number No July? for Okay.

Patrick McCreery

seeing July. I I’m Are don’t that? you have a specific really for number sorry.

Tom Harty

Yeah.

You can give that, Patrick.

Patrick McCreery

say our believe to I -- XX. I number July it’s Yeah. down want

Kyle Evans

Okay.

Tom Harty

correct. right? got That’s You

Patrick McCreery

Yeah.

Kyle Evans

And I Great. Patrick, versus fiscal Could ‘XX, you flat and fiscal Presidential us the you, ballot despite well, ‘XX cycle takes puts down there? a this the about for of political off think guide last. on help have

Patrick McCreery

XX races. and that race. the see the growth cycle-to-cycle. XX fiscal that a XX% Senate we about XX senatorial to In A those money Presidential to guide three gubernatorial around, look ‘XX, from seats seats flat cycle But fiscal Governor’s our About political time if and back and Governor’s races. comes cycle, XX% what come Senate last from categories, you why This our Absolutely. you’ll you’ll political political dollars really over across ‘XX two we’re got had spend. the Yeah. That’s our seeing see Presidential of of races we’ve footprint. majority and XX

Kyle Evans

it. Got

So growth XX% off of last Presidential?

Patrick McCreery

Yeah.

Kyle Evans

the it. That that model there? there Living very this have People other and Got in TV on Southern Are What’s to National, sense. moving those plan titles are there efforts, -- makes revenue distribution the on now sound what’s interesting. Maybe the similar potential?

Tom Harty

Yeah.

take So that Local he’s question, that because Group. I in will responsible we’re actually, the let for Patrick Media

Patrick? So

Patrick McCreery

Yeah. Great.

focus So is really People. the on big

We have syndication. XX into show our September launching

what very and does I will be entertainment in strongest with the think the consider traditional business So brand I to television that be a else industry. model everyone syndicated

on content why of our Moving a the pages rich sense. half, that brands to a about which onto contents the over we as of don’t I magazine like for a year the our little and get Southern brand the that that air, we’d that that take lift is a television bit frankly marketplace to rollout from lot well, other the are see The and Tom a easier to with makes have talked expanding -- Southern next is we started Living. today. with year, which but plan Living,

Kyle Evans

not for this think have answer. I’ll may in net Well, renewing you X% with retrains, you want ‘XX? can one one you only for Great. put But sub you growth on and to do question Thanks. up more the retrans side

Patrick McCreery

the I answer yes. short, to think that is

cable is that’s markets, We different up as contract I guys total in our is, footprint. network what’s operators our cycle have way these only, the of our works this the small renewed, year. no in affiliation but XX coming all fiscal X% renewals this mentioned, And are being footprint across

yes, some the So short will growth. see you I is, answer think

Kyle Evans

you. Great. Thank

Operator

your Bazinet final from question Jason And with Citi. comes

Tom Harty

Good morning, Jason.

Jason Bazinet

that more a such of broad cash an ending of was closer getting pre-time that longer about pre-COVID of a but as dividend next, or term that Is was acquisition the resumption described and back fiscal dividend? it thinks leverage have a isn’t flow being given just not more on the to you’ve cash pause. of I Board outsize Is sufficient the that you’ve the question, priority morning. year, about quantum portion [ph]? level a the to brushstrokes pause is Good the sort said for a dividend and about this the getting

Tom Harty

Yeah.

In would other percentage from would lot cautious. latter. think what at I a -- we that uncertainty words, and free the of of we’re look a being flow we’re generating, cash it it with be as obviously, we’re

to our and But then going for robust go going right presented it’s the we is our right lot number our uncertainty to to for top three-year plan, it to reduce So But to adjust -- bring one in forward. generate remains company our about shareholders, and our and debt priority thing number back now behind a as and We a we -- short-term, shareholders. discussion with absolutely. plan number -- dividend we again, market to is to cash of finished that what back our from three-year we’re a just had also priority behind one we two one took priority our Board -- meeting. dividends we’re bring then, our is, us the

Jason Bazinet

Thank Okay. much. you very

Operator

At time… this

Tom Harty

Okay. That…

Operator

no are questions. there …

Tom Harty

Great.

concludes your and enjoy healthy you safe and that much. hope participating and of Thank for So that summer. everyone our you call. the I stay Thank all rest very

Operator

This concludes today’s conference.

disconnect. now may You

Hawkeye Acquisition (MDP) 13 Aug 202020 Q4 Earnings call transcript