SSP - Earnings call transcript Q1 2018 | The E.W. Scripps Company

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Scripps First Quarter Earnings Call.

For the conference all the participant lines are in a listen-only mode. There will be an opportunity for your questions, instructions will be given at that time. [Operator Instructions] As a reminder, today’s call is being recorded. I’ll turn the conference now over to Carolyn Micheli, Vice President for Corporate Communications and Investor Relations. ahead. go Please

Carolyn Micheli

webcast morning, to discussion Good quarter for us SEC that call joining results. results and Thanks, differ. filings. are may The everyone. outlined E. a Factors and conference our of reminder cause first forward-looking W. for statements, A actual them John. may that Thanks include differ Scripps XXXX our Company’s in

with release new visit for that an more and today’s financial scripps.com as as tables can last You investor posted such presentation information was month. well as information,

We’ll You Financial we Also to also replay Knutson; you to President, e-mails Lisa be for today can sign morning hear the first link close up then Media week. afternoon Laura Chief Symson. audio this Lawlor; replay is, the Brian to can and disclose receive Scripps’ Doug anytime Tomlin from this Adam of in an Media A with CEO, available up SVP, Lyons. and and financial National and Treasurer, call. room Controller and Local will this information, President and listen Officer, a

here’s Knutson. Now, CFO, Lisa

Lisa Knutson

Carolyn morning, and Thanks, everyone. good

first quarter strategic first our as quarter are But of results in first far second year this company our guidance. by quick our to then segments is results so we on our capital reporting highlights realize our through cash position second allocation segment. the reporting results. begin and and We across discuss this pleased execute and both end reminder, of touching new our financial strong a morning with this to presenting be our tangible plan start quarter I’ll quarter financial

revenue. but quarter so this tables provides Retrans QX X% for of quarters refund that to on X% of was Media was new Retransmission XXXX revenue mistakenly us several in and by bit advertising, to was core expectations million our reason. been an division be on revenue our due year by retransmission XXXX Local driven the comparisons to a as MVPD quarter. to was Our up a first overpaid clean network quarter increase the in our modest as have media retransmission a well nearly of increase last clear, This To specific short fees. largely market mostly that of out to X.X% expenses one-time programming have press release $X.X subscribers. meet first you remain year. impacted expectations growth in adjusted the up track And we revenue historical quarter compared to about full today basis, in were Local a higher

Turning our and Media Katz well includes a a to National podcast national of broadcast it results our reach. with businesses other few reminder national Media news the networks, as business the that network Midroll just division as Newsy

the fourth media revenue the the networks, by was million for million from completed $XX.X Midroll and quarter million, includes over from XXXX from $XX.X Katz First Newsy. national in $XX.X $XX network last primarily million of expenses quarter were that million Division of acquisition driven was the QX year. increase of Katz $X.X

$X national segment. this was First million quarter profit our profitability for consecutive media for was quarter second segment and of that

we the $X.X cost million ongoing quarter. first incurred effort, our to of Turning restructuring in

track continue in this of the to expect can from charge million we savings $XX realize speaking You being restructuring, QX the and $XX charges million with to the And in the restructuring year work on largest. throughout XXXX XXXX. the full this remain

employee incentive is totaled $XX payments because end from $XXX quarter $X.X On continuing our our operations loss down $X.XX the and million and year – $XXX XX, million first share made about the the was quarter, retirement plan million the including contributed this we per March or charges. cash impact during of plan. For net restructuring related our to from to million

We to had we related federal capital repacking dividend and a expect government. expenditures process, shareholders repurchases. We also by reimbursed through returned cost SEC to share million the be that fully $X.X to $X.X million

well During enhance on program dividend return to per our our the quarter, this the capital repurchases. Scripps grow while as continued leads ability same which M&A was shareholders. commitment time time first This at for regular At a dividend, flexibility XX our ratio to Board March first opportunistic and returning the maintaining over years to capital the to marks share. dividend elected payout paid TV XX in us $X.XX quarterly as with share

allocate investors disciplined will takes capital, to to balancing growth combination in repurchase cash flow. appreciate long-term and approach how its acquisitions always capital. best share investment, returns our of a As business a and considering underlying Scripps hope We income,

debt XX – by able the our interest to end was the our of Finally, we were reduce the Loan XXXX. $XXX million of million Loan million. rate B $XXX quarter basis April X, repricing Term in completed B, which On at matures We first points. $XX the Term

on pay will based X%. We LIBOR a margin plus is interest

opportunistic continue Our total an LIBOR believe is well terms a as will have give Today we’re X.X%. and below plus net capital drop of as X.X us leverage also shareholders to we automatically once times M&A. to to X.XX% about interest pay debt liquidity down returning we rate execute sufficient incentive the to to company’s

well expect to also year clear the the below We in delever to come of have to year. by times this end cash X path the with a we

one about would guidance, to point to Now out turning quarter. item I just second like

not here’s proxy our Brian. services shared quarter. prior for shared little now, And is contest. Our includes X% and year higher a If line for than corporate be below rate costs the run would QX our these typical cost guidance it for services our because

Brian Lawlor

the of X.X. advertising what’s for about and Katz morning, everybody. more good & this Local and Media political I’ll I’ll Ben with the ahead progress start with segment Pickler results Lisa year, the Thanks our networks more year in outlook for talk this ATSC and

Olympics a the as moving with Super challenging quarter this in was a It as lot year’s well pieces advertising. Bowl to moving core NBC. from to first of Turning Winter CBS putting

NBC we business revenue from do just against But those it million events Olympics were certainly we X%. squeak some in the first that decline days. these benefited competing able from revenue. five growth Our core our at two out which the advertising stations up see for to XX totaled stations $X significant in under year-to-year Despite about was quarter,

and Our growth and candidate while several the Arizona. XXXX. election decline improvement political quarter came home services, special We digit from key several retail a range, first to double Indiana as XX% states as well including this in and the in showed from of spending with each key XX% a categories early kicked-off up auto year advertising Oklahoma were Tennessee,

In CBS quarter Our first was key quarter we one Tennessee, where five which our with number initiative primaries as race. in first positioned quarter midterm as in for have second of in political perennial XXXX, last performance Nashville well one ballot our well line is the performance station the states election year. early in was to that

our Looking in Ohio, look ahead, year. Indiana, the the and in political of of competitive. back also to We’ve Michigan be Arizona, and races the Florida races revenues half expected very in Arizona, Senate the Florida. Tennessee our bulk Governor’s Ohio,

spending reason believe it’s a year to we going political every So for strong be broadcast television. have to

to Turning transmission revenue.

for because year. was a for quarter that and first the mentioned, of off little track the reimbursement a Lisa overpayment are that an As on we

flow services. from see We in from to also revenue over-the-top their MVPDs to the beginning been virtual resulting pleased

really We our households has begun are those important XXX,XXX to traditional where year. loss now markets services points launch. two OTT last growth about mitigate us at MVPD households the in There’s That here. have some helped of

And First, when over last our XXXX declined additional for the additionally, we’ve MVPDs. subscriber just new you no traditional MVPD add year back that X% XXXX. OTT calendar from since traditional households losses from our sub September the the declines – counts seen sub losses

original markets for season. now more the Pickler TV our markets of daytime of new That compares On two. track we’re XX-plus-percent households XX our show about season second & this fund on cleared year. to U.S. means XXX for programming coverage goal than This has for Ben its

testament on progress a to by market a it’s strong the the Scripps is season, spring & daytime Award The ABC. to number show. and media Just Ben lit in landscape has turn distributed being Katz. of includes the local quality One note recently three Pickler I stations, nominations first clearly of received X.X. on very a is made up broadcast of signal The launch before now Emmy and Phoenix significant ATSC our development industry this which more

important Our as steps other promises year television, lessons now and new a revenue are moves industry streams audiences our with for broadcasters. of interactive in the lighting foundation the beyond. next-generation Phoenix will toward for relationship implementation and These full markets which more up be this

now of And me. four another for talk the to the the the each to report talk Media segment. audience-targeted about performance, over to allow resulting targets all advertisers division. and to And with on growth of general Katz performance revenue about the expand to networks footprint over then quarterly four which increases National more I’ll turn to for Their talk quarter. ratings the Katz Katz let’s the the now here’s turn gave deliver Now about strong first rest of national their reaching multicast a national with expanded Laura reach networks, of U.S. continue Laura XX% minute it segment, networks households. strong newly of rest market along from the to media its

Laura Tomlin

everyone. morning Good Brian. Thanks,

businesses. we performance saw addition expectational growth In across strong other national to our Katz

Newsy, about highly our national talking regarded by next-generation network. start Let’s news

deployed is largely Newsy of the revenue advertising the over-the-top-distribution and year-over-year these it’s of driven was most by on widely services. services tripling on

accelerated million year cable we into growth covering continue contracts be Newsy’s track on to and households cable by sign and to expansion XX end. will satellite it’s are by

offerings. As content widely are our program growing distributed we Newsy more becomes and

a we us support many This organization, These In of partnerships expand show. our audience. Newsy weekly sound breadth efficient, can They of Newsy addition our the mission topics our on-brand is and economically and daily informing, to produce to forming. offer allow PolitiFact, a with journalistically working not-for-profit fact-check formats are not partnerships influencing, of viewers. is one the that to coverage,

demand. grow the podcast research Research, the XX radio [indiscernible] strong from podcast industry leader monthly has XX% million saw Turning listening. quarter Edison We to nearly has market listeners. grown surpassed for to market Midroll. Podcast first our U.S. satellite by driven to now in revenue listening advertising According

service. partnership to greater Comics, inside and financial a the launch increased Midroll’s for seen this Premium that drawn advertisers, we has from just loyal base and has our strength Stitcher Wolverine have & of it’s groundbreaking name performance the reaffirmed this Microsoft, a few. other brand, fan medium. content. In ongoing podcast Procter March, Gamble premium in we report Marvel The followers, X-Men Haynes franchise with will pay and passionate Michelin, Gillett, demand us, premium and growing audience For Edison’s including

new a partnership Media significant this just Freakonomics popular Dubner division And fact, driven its number a show brand The podcast author solid subscriptions. had them start has Stephen few with Stitcher coproduce Freakonomics on announced Stitcher. the new In has long-running new a and back, with weeks National year. to the help to a expand of shows Midroll

that the We on. progress are the have pleased these made with trajectory we’re significant and processes

As these growing capture premium we’ll to businesses advertisers. in audiences you national invest and strategically to know, continue attractive

revenue Our And to produce goal and them. long-term now, growth of for is Adam. here profitability each is ultimate

Adam Symson

with Thanks, today reminder start Laura. Good morning, mission. this everybody. about company’s I’d to like a

journalism are We make credibility, our advertisers we our and and the a to audiences to our success. is company fundamental promise

rely for information. independent Our and source us on objective local national their audiences and and news as

from evolution, Scripps we though we business therefore the journalism. to all seriously. it. independent company’s We our And For our will XXX this and, taken this believe and reputation depends on waiver about has time role talk not years, change very commitment

to moving what mid-term the robust be will spending. out toward we we’re ahead, Looking election promising year believe

for Midroll the strategy. performance, and the solid to gain quarterly top We see in of continue backdrop launched on We steady with at with company’s Katz, plan our segment. over-the-top growth a base. television Against our in also we profitability the to subscribers continued, rapid expect the MVPD revenue combined of we significant expect Newsy August. transformation to momentum to And impressive subscriber our continue National certainly see growth our

our an In we’re missed believe as creating long-term. this that case to and shareholders We’re value we announced results, recently to point near out you for targets I’d see now plan. meaningful like tangible we in of outcome starting it, margin the and improvement

account levels from will largely from expect does increases grow the This and from XXXX. upside by expect cash yet our we we’ve strategy. revenue for driven XXXX We initiatives that XX% shared. restructuring buy-sell more flow continuing operations growth to television retransmission the be It not acquisition station swap than to would

seizing on In points to We philosophies a the creating maximize Local XXXX. we’re new also about to operating meant deliver improvement XXXX Media expect division, this to margin focused of XXX through stronger plan basis from portfolio with the growth. the businesses. the the revenue and division, high habits opportunities of broadcast media of rewards see we’re and cash growth evolving National again reaping consumers we support these are Media flow In

to cash new shareholders regular returning We’re dividend. the via

This dividend decision greatest future. the the strategies alongside Board’s remains level of initiate acting our financial creation. a more with high state to reflects to urgency bring and energy in And low business this company. our We company’s to of create Our company flexibility. for board committed to and delivering its the the a maintaining in are higher stronger, management and a our performing near-term and have value debt confidence long-term finally, improvement to streamlined equal order enthusiasm

questions. And these plan and for operator, confident right we’re ability place ready in goals. We of execute our in we’re have to all on now the

Operator

Jefferies. the go [Operator Instructions] from first Janedis of ahead. John And with Please line

John Janedis

questions Thanks. morning. Couple Good of from me.

thanks the you Are to as specific I wondering, OTT path regional the market on flattish ahead? XXX,XXX was trending total any noting? see But look declines expectations? course, subs. a our how sub of to color the do to or does And for trends there First, you worth compare

Adam Symson

Yes.

answer Let that John. let me Brian

Brian Lawlor

Hey, Brian. John morning, is this good

you geographic We some to from see part was transition about asked MVPDs these ones. geographic. do don’t relative more virtual the necessarily think to see I first specific The we changes company. to traditional of changes

I we’re declines companies there’s greater think seeing And few so a that with.

their move see the traditional strategically of space. also some are virtual some looking We to MVPDs them of to

Do going to one we’re swap I of one? to geographic. So think get No. see even anything don’t an I to

this we’re them But OTT. about at that I traditional. traditional having haven’t losses – to of we I it’s early MVPD and right converted think XX% point yet of all had think still declines, the the captured in now, we

attract don’t of or may I to I for points another up. day think XX XX one the one. an at opportunity think it’ll a that has But end the be be

John Janedis

maybe then That’s with helpful, local. thanks. Okay. speaking And separately just

the can local on expense meaning what growth? second will extent media the to at you high in areas incremental talk expense the of On And guidance, the be to the about investments? they key quarter, single-digit continue

Brian Lawlor

noise inside moved little you corporate of there. where again. movement here it’s as is John, There people talked a of some stuff Brian spend that costs some bit line We of about the the some well. in

& quarter retrans. it in programming our investment the up terms of on largest X% expenses of our expenses, Ben. growing other we’ll up continue an every our fees, continue Obviously payouts network had is was total portion also We But to this we’ve which with track and Pickler quarter. affiliation – to about

things in that. it’s of advertising the Nielsen running our services, just coverage other The stuff music business, news investments, taxes, like terms licenses,

under So I think all control. of are those

would that think costs some the cost employee been have that’s But local moving in employee media. up inside line. total Our were we’re quarter. because X% again, down things I the off Had happened, corporate of our not

for a was visibility it you. there hopefully, So little

John Janedis

guys. Thanks That’s helpful.

Operator

from is ahead. Ryvicker Please question go Marci Fargo. next Our with Wells

Marci Ryvicker

I and a short-term a have one. long-term Thanks.

you secondly, kind it Brian, what low your quarter, incorporating achieve you. goals, Adam, type? growth noisy? Thank And kind about singles, anything the you’re the the on for of i.e., long-term I of just short-term your core what know first down seeing going in is If are So then talk second subject, is with GDP you goals, flat, ad is to which core quarter? weaken strengthen, can on from

Brian Lawlor

it’s Hey, Marci, Brian. Good morning.

at start say quarter the second steady about pretty I me and with would right Let now. just quarter. question look second

I influence little tracks core over, bit. of our tracking is of they as same well if nice in which And May, expected the working think actually, think our I think first coming got it. that of look balancing may But seeing QX we through performed And automotive. did we’re through political. some had kind second. a legs in minus core move lot like we’re kind very I categories XXXX. it with to it we’re Political as that trend a Obviously, it would quarter, it’s and way

for So would quarter. the that word I combination and second steady use the I political core, the would you of tell the

Adam Symson

To look we as to at at we’ve GDP, of sort question, we’ve Marci. second shared, strategies numbers those that relative models minus. core morning, GDP your our built really and the long-term when Good look we

Marci Ryvicker

you. Thank

Operator

Dan we Benchmark ahead. with to And Please next go go Kurnos Company.

Dan Kurnos

Thanks. and quick morning. on Good core QX your a follow-up – Brian, just missed I missed this. it thoughts. if I apologize,

up your them You don’t clean and have which that looks embedding now tailwind, pretty or are in the that you to guide, Are Celtics they Cavalier headwind to path up are I I guess, the the know. X-X, finals? especially X-X,

Brian Lawlor

here. all knows that in I cheering bucks million Cavs years, be about a money the will playing talked It’s a have we lord potential But our right year, in really prior the row we’re we’ve Cavs is and the more making projections. of capture in the this or with for as guess, No. finals. that Thankfully, well couple third the they’re to That now. not

the get see one to in next and through would fact, good if, game Cavs then through the get you more bump our projection. So series, a

Lisa Knutson

didn’t it jinx. Hopefully,

Brian Lawlor

not. Hopefully

Dan Kurnos

next Yes, – a much I think Celtics did round. I jinx don’t that’s there. play really of

Okay.

a you’re you more what gotten So it’s have, can on kind just environments little anticipated? then clarity strategy. environment, Adam, or at a reiterate you more on the bit your now than did maybe that elephant just in on room, in theoretically flow talk seeing the we anyway, Maybe on level, deal the and it’s M&A bit little whether about just tepid least of you some M&A robust the buy-sell-swap higher not or if

Brian Lawlor

clarity provided, has lines I regulatory are Dan, flow, having and it’s where that speak. I sort right think, this it’s peers. The helped expect some now. what exactly to I we think various of we case, I think the think needed much the frankly, our is at where self-generated. conversations with so into actually, Deal deal sort flow And deal in inform of are, Sinclair-Tribune the

in high better of our with ticking those emerge execute result as a remain for incredibly optimistic this plan, we’re a urgency in-market having synergy. to to it. performs some we’ll this clock a I be that it portfolio after strategy. with period but conversations of are of order to from I execute able Obviously, We a ability working our to buy-sell-swap that believe get there’s that level

Dan Kurnos

more in could segments. Great. one And just National the if I just on squeeze

Just kind obviously this. I right really was to you Laura, growth of high strong level, now. again, want But on turn know

mode that very rate scenario. you just or out, call still And like You’re much three five projections between little give of in either breakeven bit to you longer-term landgrab-type to it to balance What when if when, or growth trend much [indiscernible]? building of looks for sort years revenues kind it, how advertising a of maybe Can us and let’s for way? start spend, you on revenues? goes a continue versus do profits Adam, just have your runway example, Newsy, cable

Laura Tomlin

Dan, quarter. Thanks. with had it’s great we Look, like Laura. a I Newsy, think

for growth revenue the OTT. of just XXX%, north really by quarter Our driven was

year. starting this expand the in We’re to just cable

So about the getting find it’s really our signal us. live, having viewers

we’ll hard we project the would believe but future. the the that for years I I of strongly this back year. look come growth to It’s So to three to think great during say five revenue cable has that more business for half out,

already complementing in both great dual streams, our fees, business. and advertising carriage We have OTT revenue

years. this short long to to with we the profitable businesses last still both being returns, was And continue think new. margin we we’ll two great term. continue investment I but a our I expansion quite said, for grow. segment it’s say expect growth to the the That quarters, for the balance and So few these very as expect would continue

Dan Kurnos

Appreciate for Thanks color. the it. Got it.

Operator

Michael question Please ahead. NOBLE next Kupinski with go is Capital Our from Markets.

Michael Kupinski

I Thank have a you. of here. questions couple

quarter first contracts the the quarter? and ABC in Regarding quarter the that were at in reflected the looking programming expenses, network full

Brian Lawlor

Yes, Mike they were.

Michael Kupinski

then expense would in program forth. an is – be there reduction Okay. strategies expected then by like that of your wouldn’t I expense in being driven of growth you Local growth have cost maybe the really your program Can the and license of that and acceleration so item? terms And rate in line because Media,

Lisa Knutson

Lisa. it’s Mike,

in will expense talked, Media TV beginning and were in in As at the year see we’ve XXXX. manifest the of end the of cost really charges Much of actual in also that National to themselves between the corporate hit the reductions line reductions you’ll the restructuring XXXX. and XXXX a and really later bit

Brian Lawlor

Brian. it’s Mike,

just provide little more me a Let bit clarity.

that we show, have a pretty do a obviously in are as that result our we up investment the good fees, of little of which a programming So is locally bit in expect costs the our really is affiliate Most produced network return on. teens.

our corporate Had look as that’s costs some you other have employee dollars outside of If at John local were were there. of costs, almost would several up to XX%. been X%. Outside programming, costs But that other been mentioned our we down case, earlier, to of to not employees the down expenses really all all I due and transfers. million programming

So we’ve very managing. really job done a of effective

about So X.X%. cost is down including our employee total is non-programing

So affects of a effective it’s feel programming and the that promised doing all. on expenses promise the I job you But like delivering the really the most. cutting very we that we’re

Michael Kupinski

on higher Thanks for line the National item? in Media was significantly Got line that color. with expected. What’s going the that In than item segment, other you.

Laura Tomlin

Laura. it’s Mike,

line item in larger So segment, this the too. just businesses. they a national includes some And others that great really like other of had our quarter businesses smaller

So just advertising smaller, and demand quarter. good they’re had they a but

grow that line as year this well. item expect to continue to We

Michael Kupinski

in you quarter? you investing and Midroll. it And in the But if contribution of Laura, money Newsy I segment, know you’ve been the from – if up lost Was Midroll the Midroll kind profit in the National back in profitable Katz that looks quarter.

Laura Tomlin

we’re pleased continue expect business out the the we’re we really with say to would But business. growth quarter, and each year. revenue profit that by for profitability I throughout we this Mike, breaking not delivered

Michael Kupinski

market advertising question, of final Brian, to Okay. And Katz? for percentage total was you tell general can the us advertising what

Brian Lawlor

we’ve think disclosed Again, I Mike. that, don’t

Carolyn Micheli

rough percentages. We have a

Brian Lawlor

there. What guided It’s line sorry. with market past trail I’d now. And the in they meaningful XX% say and the kind is not of back upfronts, upfront as very that advertising base. market successful They of networks. balance general year below one newer of DR. of grew general Every into and we’re in networks the – is the market? right in were general rest I’m change last roughly XX% The I’ve its kind season the For a are

So we’re incremental growth But anything dramatically think I we’ve making different the given that’s you don’t guidance there. there’s previously. than

Michael Kupinski

Thanks Okay, you. All color. the Thank great. right. for

Brian Lawlor

Mike. Thanks,

Operator

with Next we’ll Please Kyle go to Stephens. Evans go ahead.

Kyle Evans

Good morning. Brian, do you you might diving on down into dollars Where going? auto? are the those double-digit do decline think

Brian Lawlor

Kyle, a of there’s movement of auto. think I lot inside

factor of think Dodge. was a strategy kind I the biggest for us of change of

And So that out. those the they quarter. across got dollars off they robust the was than a changing It and million their quarter inside have most ad It of stations. booked books Dodge. of spend strategy pulled up was for our more all pulling wound first $X then of

domestic certainly looked dealers, think would the have auto. And auto stronger probably the not better. that think thing category. of are the probably much been I Individual one the that is I case, so changes of dramatically factory parts outlook But Dodge had the

Kyle Evans

get their especially kind of people high swap, light jackpot or to XXXX? on And stations something on your front up? you stations that swap to station expectations Are see political markets the Got hold if activity? the Does the their up you. down around Adam, the on buy-sell-swap, can holding political, does the footprint. for in you given think do potential on

Adam Symson

be, get done. mean, that belief Who or can is when our we close that I would announcements if Yes. think knows in XXXX thereafter. would shortly I

are political benefits of case, sale same sides this of speak. is to and both line in synergy, This I very expense a factor. don’t So the process, different so really a both think traditional the table Because top the is side. recognizing the than

take swap, And you’re to talking footprint, a to account take both station or so you TV market’s when account. into into but certainly sides a about have a have

So holding these I don’t going a that of really things back. be factor any to expect that’s in

Kyle Evans

or and little and on a sale. lastly update maybe – then detail more radio an update And the bit

As Cumulus the line iHeart out. restructuring that pushing and time

Brian Lawlor

the instead a of decision to Yes. pieces big of process sell one value to maximize several division order the The sale, made radio We’ve assets continues. the the in in bang.

think greatest shareholders. we I see that’s for for where value company and the the

little And a say, bit would singular transaction. so than I it’s if complicated, just a were more it just

Kyle Evans

think Is And that… last I just then X Great. times by one said below you year-end. one. Lisa, leverage

Lisa Knutson

Yes.

Kyle Evans

to Okay. you can when there Adam guess want Does projection – X.XX a get wage you that or or anybody would below magical on times?

Lisa Knutson

necessarily year when would year-end. haven’t Certainly, We said by we get. the throughout

I think would with the third delevering see fourth year-end. us in certainly by and political quarter, you advertising in, coming

Kyle Evans

Okay. Thank you.

Operator

Partners. Huber from Our Craig is ahead. with go question next Research Huber Please

Craig Huber

for Good morning. My I’m questions, ago, had growth curious a the it what revenues? you National Katz, first two for please, the on rate Media was year owned side. if

Brian Lawlor

than More digits, Craig. double

Craig Huber

XX. You say on can’t be it’s up little more tighter that when you that number? mean, I

Brian Lawlor

XX. not It’s

Adam Symson

you, tell will plus We in it was queue. the can XX. can get be It I it.

Craig Huber

on out that. you or Thank National other say, Media? the quarter Media in million like, the for then within was took $X that here, of National we And you guys Okay. what lose, line if million EBITDA Katz the pieces $X

Laura Tomlin

breaking not that. we’re Yes, out

minus reporting Year-over-year sorry. about the was Katz, We’re revenue the side. without XX% on Katz so from businesses other – loss growth not

Craig Huber

being that would, Okay. And double talked then, that down about please? high number teens? you mean exactly Brian, if that digits Was – was auto What to down before be you

Brian Lawlor

teens, Mid Craig.

Craig Huber

auto current that? than how it is a in then better quarter? the tracking Okay. further, And little meaningfully Is just

Brian Lawlor

It’s not better. meaningfully

quarter playing exist I that than first the quarter. out, in The think in better second be it’s bit the will are issues it themselves that. again – a Dodge hopefully,

first I to So that will big quarter pace we’re that in account second that’s us. auto. have the a very say pacing very the strong out would that other in enough a continue But balance to categories end, and similar on impact strong that quarter

Craig Huber

full what’s Okay. your for outlook, for the revenue year? your retrans And net then Brian, and retrans

Brian Lawlor

$XXX we’ve said the revenue is think annual million range. in I what expect we

Craig Huber

And then the change the net what at percent percent – about net retrans the year? for

Brian Lawlor

don’t disclosed we’ve think I that.

Craig Huber

first quarter. retail tracking would second then, to Brian, you what I’m the in similar quarter? Is TV the advertising – talk referring And that about just

Brian Lawlor

driven double us, had we was quarter. XXX%. of which was huge, probably up retail results retail. a up really was is was saw mid-teens. It Medicine inside and part April. Yes, of up up for first in drug biggest XX% It the nice Furniture, business the quarter positive And we digits.

So the well well. into I as quarter think it’s second tracking

Craig Huber

And a ask let’s cord and cutting, end. color a was year-over-year? little to second, the you much Cord that then want here my also, for in Brian, without quarter, that about just OTT, from I cutting down talk fourth with how more

Brian Lawlor

any in not – the additional since said sub losses. You fourth quarter, seen we September, have

Craig Huber

that X% – you to down, X% were what then? So is what,

Brian Lawlor

the full traditionals the gained down, if little were we of with the For we full year losses the down we over virtual offset a year. X% you were space, for in OTT what the

Craig Huber

the was then please? coming it that all… first And know some true-up quarter, I what there’s for

Brian Lawlor

we don’t Because lags really months, three it have it. Craig. about Yes,

Craig Huber

good. Thank Okay, very you.

Operator

next, Please And Instructions] & Gabelli with Company. to [Operator ahead. go we’ll go Lucas Barry

Barry Lucas

Thank If on morning. you, early with OTT address just, positive, and we’re good we subs you think I go the flat an gotten, which number everyone of back two you. could the say would issue? read for Brian, either most to you’ve economics, to that

Brian Lawlor

you’re asking, what Barry? Specifically,

Barry Lucas

equivalent the other on are MVPD? subs you Well, of any versus XXX,XXX – dollars net in are any positive terms

Brian Lawlor

Yes.

net that MVPDs. the negotiated, we couple the of we economics have than with traditional and a So have we’ve ourselves deals networks buy a with better would good even wound the up we as with that cases in

Barry Lucas

lit has area said X.X Great. And That’s for. up Phoenix you on I a basis. looking was what second

are business So looking for? What that milestones what’s to what going And be? you does the exactly mean?

Brian Lawlor

Yes.

to multiple really up So is market. X.X one worked have the where what the This where or market tower. that is a broadcasters together have markets is individual lit first one stations two signals There’s on consolidate signal. first means this been

have a Fox. got there have you you’ve you’ve you got So market TEGNA, Nexstar, where

result all a as so And of to working Univision and partner big – we’ve we’re is that, sharing signals. had a this, all together in

So onto tower. one signals we’re onboarding

offboarding that is Everyone coverage. We’re and people’s signals full other we signals have sharing. then so there distributing

this the at I is would is, So very and structure what the where you working is running think technical look well. up place first

one a place. can lighthouse work we everyone’s share where how bring validates broadcasters signals from so And everything how together, stick it working can and into

advertising is working. it test over opportunity got the business beginning of, those time. talked an Obviously, and us about look a kinds opportunity an be it’s got test to or all structural It’s able it’s to beyond to to begin But like now lit for casting, to various now place. out market ATSC – testing some tests. we this technical. do of other operational data structure signal. for the what advanced We’ve have with how whether that to So those gives kinds now connected we the off We’ve would It’s businesses work they models. those of can up, the of we’ve that those of car work businesses businesses in of

Barry Lucas

back in looked Okay, as one, kind what falling of year see what to next? core we would at course the – where move through, of savings of thank start – maybe Last item you. on we Lisa, some the the line needle

Lisa Knutson

latter And half think I think corporate I think in see or in move other A shared year line. the expenses. be the would combination cost you’ll Local start and certainly the the Media of between employee other and employee I to services. on line

two are areas. the those So

Barry Lucas

Thanks that. for

Operator

with further back in And no questions remarks. the turn it closing to I’ll any queue, for company

Adam Symson

strategic the of the performance Thanks, summarize, our plan company seeing position to John. for our tangible long-term impact growth. and we’re short-term improve To

cost We’re well underway with initiatives. our cutting

significantly National the opportunities, and we’re potential our Media exploring brands. We’re growing swap television station

great plans. a meaningful day. will much ability plan drive for improvement, cash flow and aggressive so our we’re Our you in and Thank Have joining to execute confident margin those us.

Operator

does gentlemen, for your participation. today. conclude and conference your Ladies for that you Thank

You disconnect. may now

The E.W. Scripps Company (SSP) 7 May 182018 Q1 Earnings call transcript