MDP - Earnings call transcript Q2 2021 | Hawkeye Acquisition, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Meredith Fiscal 2021 Second Quarter Earnings Conference. [Operator Instructions] I would now like to hand the conference call over to your speaker for today, Mr. Mike Lovell. Sir, you may begin.

Mike Lovell

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

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

and earnings the the be turn today. Our prepared archive are Investor later Relations slide I'll will release presentation of call available over section available comments An website Now, in on to our of Tom. meredith.com. And our

Tom Harty

the related our release start disclosures useful. Thank you, Mike, with presentation and slide we good very X. morning, morning. to had think and news chance They our everyone. I'll Slide earlier you've issued this I find include you'll see hope

advertisers brands to continue audiences Our our count in Meredith's trusted kind. and are on responding

history enabled our had Media As COVID our each a This XXXX driven as million Group our bank. political the EBITDA business. more for and best continue finished and us summarize, second the adverse We even cash adjusted segments second free debt. advertising our to strengthening in than quarter flow performance impact of impacts. quarter, we digital our more the than revenues, in the net revenue performance To and reducing which quarter COVID-related in and by in Group cash EBITDA performance the continues has liquidity offset $XXX with aspects of strong advertising fiscal to growth certain our National delivered was gains the of pandemic result, record Media Local

As we've facets. pursuing the two in we're discussed strategy has past, the

our is reduction debt priority. number one net first, The

ratio XX. great times ratio to with the target making September compared is adjusted our progress We're leverage in X over long-term. EBITDA improvement leverage Our

Media consumer focus time, the consumer advertising a milestone digital continue for enhancing magazine Media licensing XX% Media digital critical Group for above e-commerce National the our subscription licensing to as will consumer our consumer-related into Meanwhile, sites and strengthening high highs. and Starting into traffic Digital have National our segment, growth Group, go advertising is capabilities. Second, remains in to we remain first We our the with performance. rates historic expanding. and the our of that, and and record With quarter. strong. We we norms, revenues to magazine revenues businesses outstanding for aggressively we believe Group digital account detail team surpassed are grew delivered the Response nearly the quarter, $XXX reached leaning and reached solicitations revenues engagement let's and of of strong digital opportunities. XX% opportunity million. ahead. National side record a a growing

session traffic Our advertising together networks consumer digital a Of single year from properties revenues. platform period. significantly, multi-year note, continues e-commerce in all growth and XX% digital strong the bring efforts to grew enable growth along on with of engagement, to partner our with and to our brands prior

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a to As programs quarter we as result last of dollar suite unique year. second twice million plus and of compared the our offerings, robust during sold many

provide effort welcome business of transparency. results. feedback an many As to grow, understand more be and our continue that additional about digital-related disclosures helpful disclosures digital to heard better on from provide to would to we to continues business We've you expect already in this our

Turning and delivered to recovery advertising prior magazine the National magazine business, Media Group encouraged sequential continued we're in our our from quarter. improvement by

points year. As last you plan at in maintaining gaining put share included publishing we recall, the frequencies crisis. maximize start, during may and together pandemic the of which performance a market X differentiating to It by ourselves contributed Meredith has to nearly the schedules,

see direct the from We magazine subscription customers. of us mail summer, Subscribers time. in rates sales over the the subscription long-term XX% last ourselves, agent than XX XX% profit the knew to the as for rates source XX% the were long-term allowing grow at sources, in response and contribution strong over XX% Online fall. the magazine.store rates activities weeks with XX continue rates basis a These our we for form at up weeks step to response up higher relationship a and solicitation, we up year-over-year. our strength in in spring, are

particularly two years quarter, Looking our nearly advertising those competitive portfolio, the XXX% in ago. growth Phoenix at political our markets, record more closely Atlanta versus we drove broadcasting delivered media results and races, in second

capture efforts are digital a and giving local Our gained political traction us digital to platform have growth. significant

advertising by advertising Our while team of two impacted delivered versus $XX million clearly than years ago. improving quarter crowd-out, sequentially less quarter. $X Nonpolitical compared the political digital million was revenues prior political still in the to

Turning to Slide X.

portfolio continue our we growth. and brands to develop in for opportunities than XX We have new more

Wyndham strategic across years. spend Leisure For our example, balance and the fiscal sale month, cash cash years. million of relationship 'XX with includes $XX and portfolio for $XX over in the million that three Travel commitment next and million the for next $XXX We in the five a we marketing announced in in last over Brand received Destinations, the a

XX-year also renewable free grants and Meredith continue agreement assets. Our to license a media royalty operating Travel Leisure's

the for little is and to expect going we are forward. this and example December A across change our recent new expanding which natural in compelling. Nielsen People XXXX recent shows television. to P&L People the launch brands our show, number new the So for media including debuted remains great our XXXX. in broadcast markets the platforms, show September our brand, of most ratings season, is ratings a according extension the XX one Television We're

with opportunities, working to non-Meredith beginning Television including show As in Sony a we Pictures stations syndicate are the fall e-commerce. of pursuing reminder, column, to third are the the consumer-driven XXXX. we In

content promotion execution our Black performance during Weeks four-fold of an increase retail editorial weekend our across later, drove cost retail event. partner and example, As Monday we team sales Day, through and the Friday, in during delivered commerce strong a Cyber sites. solid Amazon's Prime similarly

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turn While seeing over With macro trends excited still the third our the it we're that future first we've is I'll and and come of our economic in half closing in to to your then quarter groundwork questions. we're uncertain, overview, the offer we'll comments, growth. invite performance certain about XXXX, backdrop for fiscal I'll back Jason. laid highlight

Jason Frierott

X. Thanks, on Tom. I'll begin slide

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

now complete, were of through comparable the second quarter the On portfolio million, Advertising-related higher last actions XX% basis, $XXX revenues period. as changes, these excluding portfolio With changes, were second the in revenues the a taken XX%. cycled million prior-year $XX of XXXX. have advertising-related happened than up quarter we

said, That advertising national and across station results, by magazine Tom to our legacy impact led our advertising advertising group across sites. continues digital channels. our our political and nonpolitical was COVID As in a growth said, particularly media record record

challenging. to As we pandemic, progress more continue through the become impact precise quantifying has the

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Group changes comparable excluding million, earlier comparable impacted Slide Turning Group of changes, period. mentioned equally. on for revenues Media were X. from On $XX the consumer to million, $XXX the comparable page, critical advertising next $XXX generally down million the milestone up declines a The period. which X% for XX% growth of the basis, revenues down X%. and Adjusting or were advertising $XX for were million, decline, X% prior-year revenues National $XX with million, portfolio portfolio from Media accounted includes X%, National Advertising-related I down portfolio the more a advertising-related of changes, that company. revenues were magazine offset digital than prior-year

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sales, also for that data, we our premium by driven along Importantly, offers. demand with digital direct powerful the content, flexibility strong and saw growth advertiser in platform our brands, first-party

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be advertising quarter. where local million years efforts to of digital This than $X the expanded team can Media the during Group, two third-party Finally, in segment digital Group ago. nonpolitical our the our advertising revenue our as mentioned, our found to third-party Tom election line. compares less cycle extend highlight within has political digital beyond last million schedule in and $XX Local Media captured Local This revenues

we leverage over EBITDA Cash X. times to remain to continue is flow, priority of balance target and X important Turning sheet to Slide liquidity, our reduction Net Meredith. a strength debt critically ratio number long-term. one adjusted and the

and performance during one the second our company, we is $XXX a most free cash our As measures second fiscal restructuring the lower advertising cash primarily payments. digital in generated free generated flow improvement flow, employee-related of in $XX quarter history, million by XXX-year driven key free flow the the was and quarter. and compares strong cash lower in to It was performance, company's and political period. prior-year This million our in items

the of result improvement X.X from quarter. our prior basis, on a adjusted significant December and XX, performance, was As XXXX, our reported a EBITDA times cash EBITDA, leverage of as adjusted a ratio

we Looking the compared of period. quarter in second XXXX bank prior-year at of million the $XX cash the bottom in the ended million of with $XXX to the slide,

at Our to continues revolver balance December was XX, be zero unused. and

flow improve We we and efforts as each continue We in positive in continue to approximately $XXX momentum generating fiscal and by our had XXXX, strong free cash throughout flow, cash political XX, advertising digital see bank expect positive demand. million helped January of XXXX. of the to cash to quarter

for Now, it closing back thoughts, X. I'll Tom turn to on Slide

Tom Harty

Jason. Thanks,

news cornerstone on Meredith their information continue entertainment, communities. local Corporation. home, today about of the health, consumers These Our the subjects focus are to food, and and

about you our today, thoughts. four leave priorities I As think with we to want key

is reduction. debt number one our priority First,

X bank reduce million in we're with times, progress Our and is a leverage cash XX. to of debt January to ratio $XXX the making at approximately our of net goal

and than Southern media reach advertising our at advertising American excited platform, National We any we're the Allrecipes, in Together, portfolio analytics brands, first engaged are Living. Group creative women, in a These and data a which of critical include our and and time States. by digital other United to Better Second, revenues Gardens, engine this tremendous Media shareholders. are an powerful in women success of our the and nearly XX% as backed milestone brands these investments from differentiators and capabilities our the collectively recovers. This including assets They and several also Meredith's digital first our party digital more growth. basis us form and Homes our deep to surpassing achieving spend advertisers includes capabilities, factors, to People, benefit and attribute advertising consumer value revenue magazine revenue advertising for proposition position economy the incremental with history.

recovering we are time. and nonpolitical spot improvement continued and magazine advertising over a pace, at Third, measured expect

nationwide, advertising near-term our XXXX, partners legislation for of citing the said, stimulus brands. expressing to March start of and advertising, vaccines. large-scale political are by are COVID-XX environment persistently high marketing of for further luxury related slower travel magazine That and the in optimism our caused deployment passage quarter. including and uncertainty unstable particularly is cases a true economic calendar This Finally, advertising contributing and spending the expected to

look down expect advertising Media reduce be Group enhance that, quarter, fiscal strengthen we'll to up up compared other Local to fourth Group and are due factors, spot return costs consumer we growth advertising the we as fiscal to third National To it and play. the advertising XXXX. in continue and your XXXX prior our in expect we macro And there in trajectory our closing, open and the the revenues mid-teens. the of by continues nonpolitical Magazine digital as into cautious we digital we're With high-teens. performance significant in to fiscal at third to approximately excited our the revenues second no questions. to to our be quarter year revenues to period, COVID into goals the changes As look Media run-rates. debt assuming or XXXX, half first In variables in opportunities. We're reiterate, to normal flat. half of

Operator

At this I like time, Instructions] Harty. to over the call Tom [Operator would to turn

Tom Harty

everyone. morning, Good

have myself Joining Jason the Media President Patrick Group. morning, Local of this and McCreery, we the

We also leadership was Media of have the into call, position ran Levene, Group. earnings where the of Catherine our our since the And Group, previously Catherine business. she Media National promoted digital a President last National

this to thrilled we're joining leadership us Catherine have in position So today. and

question. happy to take we're Now your first

Operator

Wolfe the line with from first Research. comes Your of John Janedis question

John Janedis

Hi, thanks, Tom.

You guys, you it see marketing the historical comp of as about levels? related how maybe How magazine to response to trending you're you about pandemic? at thinking your start then talked rates. you those do direct the retention And And advertising. quickly your on comments relative

outlook, of of high-teens? all you prior calls? the Thank on is to some Is still is talked the down that you. confined terms In it you to broad-based or to that that categories

Tom Harty

Great, Yes, insight. found insight through so John. one pandemic, that the consumer we

was think the magazine. took I us to rates it response surprise, by probably most

So in pandemic. trends the magazine is the we and XX% solicitations year. looking There mentioned, rates lift at at at one format in digital, there consumer that's continue. of is about something But close deliver And the I looking the think we doing day magazine - that the the And they're the in spiking those they're XX% pandemic, when something that demand. spring and for they're content women, look magazines. had both, demand up for response direct I to of balance shot as a on we

team it. dollars. actually in we're So advantage been And more the has and Jason giving investment of taking leaning

lifetime when at talked we long great it's value, us. thing deals in run, more about the past, we ourselves as or have direct In the to great, consumer So consumers. publisher look a for you with that

where our we're is about pandemic, look see you hurt that been through and we at obviously, So excited advertising, it. most in we've travel brands. When been continue luxury the and trend

have be of some down XX% So and been down, to continue over those year-over-year.

continue. So trend we're seeing that

have up. our when luxury significantly. some to then you performing down brands we And we of closer when So like - look are the others, at say travel that and flat, instances portfolio, whole some in actually are

come we're it's So and the the that travel to for two come depending see we tale expect as little we're and excited bit prepared of brand a out, cities category. to of all of advertising But the it. a back vaccines COVID on

So we're it's going again, exactly have highly been as happen, but those to some optimistic look that COVID-XX. we cautiously don't we impacted of by the at to categories future when know

John Janedis

on levels what Okay. are specific On forward, costs one run-rate the to mean? we’ll And cost going call actually Thanks. normal Maybe last a out one. areas moving does what comment to there investment? see your in normalized

Jason Frierott

at I that's of as Yes, think, I John. to, what referring we kind pre-pandemic, really cost think - that's that's levels look

about fourth we've employee-related talked and talked you taken. of We the in cost kind those for one-time our that's think come and kind specifically the of to normal reasons in low benefits last think think as the things. doctors, We've quarter we've before, costs. salary talked in that back levels more that care I year, - about weren't health And I about third were terms actions about types going of a People of run-rate. now costs. to

costs of highlights that think there. types those the give I So would you would I employee-related be were nature that

Operator

Your with of comes Dan Benchmark. the line next from question Kurnos

Dan Kurnos

off, congratulations well First deserved. Catherine,

clearly that made, started continues your of hearing Catherine Thanks. is of just I that tail outlook? Tom, in lot here. you your initial of you had We've based John and [technical guys terms a obviously when on helpful of Tom And given expectations from been quarter would how guys growth be kind are, get COVID, to start? that's you're maybe we end of that sustained something kind in asked better. long wanted also out just and about And obviously, resurgence a growth, we've sustainability on the here, digital QX targets I above impacted of digital, sense then to finished level trends, an the here, all pacing much the mobility they difficulty] around from guess, appear have visibility your the kind changes remarks but traffic extent Just, unfortunate of to internal even which thinking to of think just the benefiting a lot, where here, the investments you how super I long-term any just that are of tie-ins even given year-over-year year here you've of what the revenue the

Tom Harty

begin. ask I'll to pile to just Sure. Catherine on. But

our kind QX, advertising what I shows strength up digital that for for mid-teens we're of in in guidance think QX. the of for looking

we focusing a So runway make growth perspective. I specifically an want in to we've you're But some of sure consumer. got or from on that believe related long to advertising also our other digital growth,

So about that I'd are our to e-commerce investments we're like those Catherine area to over make dividends. what in five the licensing really and made pay area, our seeing some comments and starting last we've years

give some So can focusing on advertising, about maybe but consumers. also Catherine observations

Catherine Levene

Sure.

let just with me start advertising. So

rate think session think has as through not growth as COVID. to the traffic and sustained. the been people strong office was, our I - expense may same it's I growth at been obviously, life go you back be opens know We and up,

of other the of open every in only the saw demand business. we the On hand, growth third channel growth. programmatic driver And is a digital

plus and programmatic, Tom - partnership. significantly. dollar million said, XX%. our our consumer, That significantly. up that signed and many Digital significantly Audio is sponsorships. includes as large direct sales that's our is up is So was Video twice up as we up as premium

really competitive our target to with growth. our to direct and noted throughout So advertising in and our ability sold premium driven programmatic, relationship by platform, which advantage, specific consumers new messages. open force channel, by are that's our categories, session programmatic our the and That's equally growing really sales every

I some So our growth, may that's numbers. be the part portion stronger in digital up the consumer even In in video mid see But of the in mean, of hard and right. sorry, e-commerce consumer, to - first we're is in advertising. 'XXs, seeing revenue our

that promotions, we're at commerce, That's and So those moving significantly marketplace, sustained talking expect affiliate we rates to forward. be growing etc. about

of Now, the it's prime day in you Black Friday. about, throughout can quarter. talked some our ongoing see numbers Tom that that But

our moving consumers we paid services in part expect and pay into products we are will developing ultimately early area it. and new around our are be products. thinking The we but still products that in see We're other to of paid for the strategy,

opportunity lot in of the categories of revenue see we top on business, content, a of our the So and advertising. commerce consumer

Dan Kurnos

three you're driving a How the lot heavier do a you know, into smaller the years. over - next, more or I mean, e-com next, to I on bit asked those affiliates rates all was much of and it don't know big And piece to business to? feels that kind five kind a just those leaning the Catherine, with you there's of your into have into I incremental I that? the Amazon? it can components dig didn't call, more Are Walmart, Allrecipes opportunities question opportunities. growth to How But numbers, ask there a time think get very BHG revenues curious, Obviously, Yes, get just this one in to relationship a through of I'm areas? you is How put brands marketplace? I going I question. I what around, but to slightly are yeah, want you over mean, last licensing off of increasing strong big is just opportunities. will had of like little

Tom Harty

I'll off the last, Yes, start Catherine. on

is grew I of think one News of that Apple main just the our licensing by your And to over is two Plus. business XX% them that. quarter. that point, in drivers And

significantly. that, with content then, we our So Walmart that's growing consistently, on royalty growing paid relationship been to continues relationship that's so kind seen and. that's we of time And premium in been and and this year-over-year. News Gardens nice Through with Better in have brand kind been our grow. environment a paid Homes we've through Apple, and the Apple the we've And the that XX% pandemic, get over in it's growth period and a of a up long-term of where

about Catherine ask again, detail about bit to advertising. and make I'll little comments. just the some digital more consumer area licensing, So, a get But it's not

of that's going Our of grow and revenues is consumer products to strategy on sell going of some be be area. is that going and services, you that that comments But some perspective deals. products forward. we growth in consumers, affiliate direct know of I a to any the area other digital see significant have that to we be to from Catherine some to licensing, if going a it's don't

Catherine Levene

happy any questions I right. answer I'm think that's well. other exactly as to

Dan Kurnos

incremental fine. Whether mind. guys. thanks Congrats you the the the that's quarter. I money it used clarity, sure color. appreciate No, in And bank. for the on the make put Anyway, the

Operator

the next Citi. Jason with question comes Bazinet Your from line of

Jason Bazinet

that $XX I ask million your on Can a just follow-up nominally growth. licensing

driven, out probably how how figure trying News this opposed thing sort growth of of be up growth, be bit as other I of to it down obviously tailwinds commerce bumpy like everyone's right, will versus of this commerce-related XX% like part is the that? think which much Apple that News holiday quarter? sort normal the and to of continue Is could versus that is how's is the sort Plus the like that a of secular something more the and season a will Apple

Tom Harty

related anything related long-term to with and News the about to to Plus. the what off related we Apple year-over-year ask the to performance - not content News I related we that. that if cut I escalators of the top deal don't see would I my it But We our This could have say have out a related we on Jason Jason dig was them Apple to is numbers that, really think, numbers. I'll deal, Plus, within have it's head. COVID. to escalators

time it's brands. really spent with our on So

see even of is kind a we this we grow anticipating growth and lot of go something, pre-COVID to forward. this as continuing that So were

have I can down. COVID. exact really we we So to don't not if numbers related the break know

Catherine Levene

of is our business, growing was business, high and we our that over affiliate I continuing. you the in past that quarter can and tell that's half business business which this that. is 'XXs said I that the That see e-commerce

the So in of commerce. down don't are affiliate we investing in that more area I Though, in fact near-term. that slowing see

Jason Bazinet

Even sequentially.

Catherine Levene

Year-over-year.

Jason Bazinet

Year-over-year.

what That's Okay. trying. we're

perfect. you. Okay, Thank

Catherine Levene

Yes, year-over-year.

Jason Frierott

about that, is associated as is of with Yes, some Amazon that's that been lot and obviously there talked that well. When happens Jason. activity there things a like seasonality has commerce with Prime Day - like

Jason Bazinet

you. Thank it. get totally Yes,

Operator

line Kyle the Stephens. of Evans from [Operator Instructions] with Your next question comes

Kyle Evans

Catherine, congratulations.

lot digital contribution national that on and over unit the video a What And side. talked volume of you settles about time? trends the do of digital? You in where is to the kind think

Catherine Levene

Yes.

small news The the portion good news video. is runway So video we bad lot a of in is is ways a revenue, total that video news. advertising fairly of have the some and still good which in

[PaceMate] leaning done in talked because in last we've COVID, we year expect able and fact, And the Chief year video, just into Officer, Content So invest hired that in millions all you're familiar she - each users of to in starting of reached heavily PaceMate. who a there. came think if we're in more to of is content new about of video. month We more, from We of weren't and video. this money hundreds Digital investments I be we head but we use with past to

bring into brought expertise So of but remain all to heavily across we her video. digital over just her editorial, to

Kyle Evans

Patrick. I'll switch over to

on estimate the heard year-over-year I Jason in negate If crowd-out decline nonpolitical almost political ads. Patrick. completely your TV neglected, would correctly, spot been You've

First and flattish the how Which is kind flattish that to off, of mean are was And getting mean, that would where I waylaid we pockets down massively, March we back of ex-political. then, in do - And that I core. was are did this business kind of get strength were hear right? that a there? us

Patrick McCreery

flattish. And did were ours stations No, heavy those correctly. for hear exactly Yes. that of you that's political, what we in not saw,

even growth sequential continued strong of auto. doubt There seeing a no are I growth restaurants quarter-over-quarter in I about improvement. quarter-over-quarter, level we but there, uncertainty challenged, we've really seen mean, think professional seen it. - retail But in we've is quarter-over-quarter are look, and services strong and still

right, - really, of I do also mean, out demand pent-up think there's that's frankly would that. I these to lot to there, a a need that grow for and So businesses way like

Tom Harty

- performance portfolio I'm piling market The Kyle, portfolio, we it's different different just with have on too. Patrick a And by not with to.

more been COVID that's affected Vegas the of markets and some Portland have by Las been we So have like in some and those markets. happening unrest political obviously that

to as we expect see what you get this that's some So through would recovery crisis.

Kyle Evans

the four asking the pressures us political what kind mean, you should are in second reverse March not over of about core of last displacement I'm the I think and we guide. that next of XX? ' trouble annualizing pandemic quarters? Patrick. - thinking the the having to how But half hit calendar kind I'm

Patrick McCreery

look. Yeah, well,

forward will and I March and got the a Super last nice Tournament think the And for CBS, to and that turning another - on which I've that are nice this year this that's - having not I'm provide bump. looking because secular quarter nice Bowl bump. a NCAA up that's then, April, against we're

know I'm to. not quarter-over-quarter the look there for going a So don't not plenty to But that guidance, see continue reasons now still continue you one I you probably to come seeing. been of And guidance. give I pacings you're think good core, trend. the quarter I'm looking advertise. that I this items and at that - seeing the that we're to think want we've you're as are improvement I that

Kyle Evans

title comparable and changes - strong the are to On because about we're the third-party you third Or the direct time, you subscription rolling you title we're I kind us all of negative well there? kind the that some just national rolling off some feel on with Could on at are? in of again the we're rolling looking as on you mail want stuff revenue I beat off still subscription, side, off side? as rolling where where response update talked off of you made. I bringing inherited feel don't very that like like we numbers but magazine of Time digital comparable this horse in

Patrick McCreery

say on Time the would third we just are the of Well, Kyle. is that acquisition in anniversary This celebrated Inc. I third actually I X. February the year. our we think, year

our I we're that digital because about the we're starting timing excited that the performance to the a this we're and to to in integration. two see thing those journey So, titles two-year that We seeing as most to was was the of sold. - set full year want be rid We didn't And we it about. talked was that years. got we integration the what is fruits going heavy And for lift was labor it the of on one platform. unified

current that up year. with, up obviously, quarter National which Media hit was up the those even profit we fiscal in adjusted The the the were is closed, of pandemic metrics - So half complete the and also in a we COVID Group, they first for that in are surprise And just operating same with in EBITDA year-over-year.

issue. kind of effects COVID off the we We were again, of really effect growth. have So finally start us performance. and where to what expected the that to the we COVID pay our - wish see we the return outstanding didn't labor But was to the this see going of year fruits

We last little creates we made it's it consumer. make. need you we it and no guys. year on to with clean again, QX. are be on adjustments that - the as always first for your will we that When Family decision to some a make and lumpy, the quarter And we hard on This enter Circle adjustments question

we to a at obviously, basis the we've and take profits and an to advertising advertisers, of consumers of magazine looking rate revenues I'm more marketplace. from to We've long-term, talking get Media consumer always of able take advantage We to National over business consumer be more and sacrificed model. Group advertising-driven but robust profits higher the decades. are advantage optimized We copies

about them of rid consumer of you you change marketing, up that's less step obviously, value, going Over time. price, we see lifetime on the profitable get mentioned, somebody, that we comes down the last over model, that you can increase can And circulations, year can auto-renewals. where and into see demand that for happen changing when we ongoing price acquire the future, we got consumer, that get be to where demand think long-term because to and numbers will you advertising you we're in

it So about related agents. when the we decrease which accounting profitable we've we talked subs, publisher, revenue direct issue, more time. optimized takes circulation to can over that profit that, have And where long to are run

but answer, be going a the we profit the for in than to magazine is magazines. our did the sold special more business. before. So year long-winded Even opportunity copies Consumers up. where last subscription interest with We love pandemic, copies see year we

that we're So it's that model. always excited or going to something tweaking about and be optimizing

Operator

next question the comes with from Bank. Aaron of Your Watts line Deutsche

Aaron Watts

how balances be the cash? down to Everyone, operating the letting metrics. leverage priorities year, you healthy around that alongside that thank gross about bring enough a debt built net And you which balance reduction your perhaps pay me be and being at when down curious on. cash calendar appreciate your debt of debt use debt your backdrop built, thinking you've clearly and comments cash more a priority to helps your with the might I net for for overall leverage end I'm you're comfortable leverage?

Tom Harty

that. Great, of I'll ask Jason kind to take

Jason Frierott

make to of bit in that. that of little versus are being of terms want just us GDP, of that this us. kind in of guide look Tom absolutely consumer front we that of the of a We're of of of to been of at terms doing mean, advertising, those we've looking kind sure step for we're that thoughtful about thought for kind looking us. We're navigating in bit before. start doing sense calendar do key a the where are we we of in little in kind slow in how it, what the as Those unknowns timing through of timing a of and that. a we're metrics, kind way metrics a maybe and year, going whole as I give types into beginning pandemic a of of I has of terms terms said back. host of see methodical in things a And to a obviously, the working the of caution

course as So takes impact, those us. positive the and takes all the for vaccine trends are

evaluate and that we down are that positive move we taking consideration debt as I'd make off. that we're kind our will of forward, that determine take that sure and indicators. to And say to when pay as those So continue we into

Aaron Watts

could I ask understandably question. Consolidation took breather one And in other then TV bit a a in if space XXXX. of the

meaningful for the or FCC assets. potential broadly? Meredith of you. new the that be are should a take you about M&A on TV space thinking in? new are how As place the seller we year either participates activity And administration that we latest about to Thank embarked buyer upon a thoughts had, what a your in is thinking with how new And

Jason Frierott

listen. the at opportunities months, Obviously, one participated past priority the in Yes, number to is looking marketplace debt We acquire. always we our opportunities XX looking are in for reduction.

that. fantastic So we're on extraordinary or would to television We But make we stations record our operating Group obviously allowing of of super and we well the go threw be either our really a two believe that Media have more opportunities strategy, decision these always side really how as and and balance and forward debt a and cash, go give segments considering performance together forward. with National have something portfolio that look a as on Local on are performing we to cash at flexibility had lot us fits Media Group to the off and and us down side we that. sheet pay generating looking

of stand. kind So we that's where

Tom Harty

COVID we're just think to Well, I Meredith coming the like that crisis. one employees wraps want And up months for participating make comment into almost the just faced Thank pandemic all this I And obviously up to thrilled that them. were anniversary, where they to session. thank our a changed of I a a asked the of and we and move today. appreciate I'm and during obviously and the XX to you Q&A all all pivot from just performance them from forward with perspective their personal I to work and they've crisis, and from thank home, work things, lot perspective. done Meredith

close, I'd to participating. you for with you. that, very much So just thank Thank and like

Operator

this participating. you for Ladies today's and conference Thank gentlemen, call. concludes

disconnect. You may now

Hawkeye Acquisition (MDP) 4 Feb 212021 Q2 Earnings call transcript