SSP - Earnings call transcript Q1 2019 | 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 Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. Instructions will be given at that time. [Operator Instructions] As a reminder, this conference is being recorded. to Investor conference Relations, like host, to now of VP Carolyn would turn over the our I Micheli. Please go ahead.

Carolyn Micheli

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

information. can visit more You for scripps.com

emails can and President, this Officer, Lyons. Doug listen is for Symson; audio up SVP, of this hear Local an Brian Financial sign We'll replay National room Media Controller morning Laura can You and Media and and Lisa Knutson; Chief CEO, Tomlin. Treasurer, to Lawlor, the call. Also President from Adam in

here's Now, Adam.

Adam Symson

thanks first behind and flying to seems joining closer. into the May for The drawing XXXX the month sit well us the be call. earnings quickly super here quarter everybody, of morning, us the Good and important promise year of by we as for with

course, new in year exceeding upside well. and E.W. in ended capitalize we We our pleased expectations and Company when XXXX from media local full for capturing election both retransmission will XXXX significant our Of Scripps begin Comcast value meeting start to the on the the in come presidential operating footprint XXXX, larger with revenue we were as divisions. way

the among we audiences. recognize impactful to moment company's to connection important produced is most Scripps' Journalism our products. our National results. expect Media I'd make integration and would repositioning, work take industry. by most this we with But those the Cordillera, the the television about financial we As to promise salient some the Raycom, near-term improvement talk I and like performance our Local like and are Today, soon delivering of and important It's stations, Nexstar-Tribune integrate same first, and divisions. strong journalism to a company's we of committed our

And to is to company. directly so, this of commitment tied our journalism the strength

midterm high stations intense make especially, rely journalism year's, of upon elections, last that the kind decisions. delivered voting objective Scripps informed During our community to members quality

investigations in many for work law so the for rate creating Journalists partnership investigative Award Professional series to into just of received far sold is the received produced journalists journalism, enterprise I'd such Scripps America. honored the last Walter debate, turn human our gun Excellence and economy about recognized important and us Cronkite Cleared, immigration, the not prestigious that our most by jobs pursue without body across the produce Journalism. to Investigative regional national our WKBW, that Reporters to in a context brought our portfolio continued been it issues work news to Our of as certainly cases to world. for impact, in Case examination a solving And the Buffalo, role control These the now election month of see work repositioning, welcome our the has of while has its and Award in awards, Political brands like Gracie TV healthcare, station by cover with was Archdiocese uncovering the our of In with to And sexual Headliner the the Newsy podcast few was Catholic recognized and better-informed company's And up successful year. honors motivates country clear enforcement awards reporting water by environmental District. National the X Society Stitcher toxic News this are of and and on Tennessee we cases a recognition in for ahead. School a in station by these in efforts series remaking division, was Nashville are local the play of for hide a honored abuse Editors its national its for Award priests. them. agencies trafficking the the Channel an how

past company. Over we the the initiatives rapidly year, have to executed on our reposition

three plan to TV grow were stations we different part groups last Our and of year a early recent decisions unveiled the value. acquire build to from company

just acquisitions, be operational we Now, our on these excellence continued the focus as as important as absorb assets. will

We our to expect year. will so stations or working over integrate this acquired those be smoothly the later we next to year acquire recently and

continue the impressive full successfully time, we synergies. growth the As a our past, the growth financial employee from fast free TV. to contribution transition this businesses Media example good supporting week's in in to done seeing We'll division. are we expect expect is, we keep the launch At our pace very A on Court realization these stages the to have of ultimate maximize cash flow seamless same we this division. formative, of focus of and National of of through this up their goal

flexibility. grow to XXXX. a the said important always maximizing with While become that when our know greatly flow have been we see of bottom We're investing around expect a to path will positioned an remains We've portfolio of use M&A, focused and in company powder cash we of be maintaining the emerging OTT delever shareholder company's audio today, the value ahead welcoming strong opportunistic to places continue the to Scripps leverage, this brands to quickly we employ to also clear as the growth to our value the quickly, committed Cordillera lot remake ethos. on we are to employees shareholder M&A and reducing sheet increased we in and see financial balance part these have about is station our We in reach of by be and contributor aided the you long Scripps portfolio. stations. plenty television debt sustainability, for market the be our and significant acquisitions Those the new line. a will pursue television. see and long of opportunity too network which we both of in of a before flexibility including the brand prudent financial because TV shareholder and the as smart for national at like such to while but Court by and company's won't value. that strong ability this the to digital, media We we're the durability marketplace. I'd opportunity again We're additions there's It thrilled accretive dry create of like TV ahead plenty morning our financial depth, portfolio in to conclude

Now, here's Lisa.

Lisa Knutson

areas. quarter where reporting Adam, Thanks, everyone. results financial we for in beat or good those and we're expectations Today met the morning, first

I the close. estimates TV consensus the to some timing in find of the In noise due think Cordillera you'll addition, station portfolio

acquisition happy May walk Xst. we'll numbers. So those I'm the Cordillera through report close on did we on to

we'll So the for two months Cordillera full second quarter. of report results

The saw revenue first XX% big Local meets moment. will just talk QX expected. We back division get driver up our our we was of as first, compared division, for a increased about up XXXX. to a over quarter increase, beats. the impact the Cordillera was Local to those a Media revenue X% of But guidance Media revenue X.X%, first Retransmission XX% beat. also Media in expected. let's National In the QX and Expenses and the quarter

higher in million the exceeding Media our expected, segment million $X $XX a quarter. tied First higher to The the mid-$XX profit quarter division to revenue. than in expected expenses was bit range. delivered for revenue revenue National million, came in low Division

compensation. For services higher our driven and over million corporate line, were claims was we shared benefit expectations. $X incentive performance by in health That about our higher

the quarter, the first cost restructuring work loss plan. costs attributed for For the operations to per from $X.XX $X.X million $XX was savings million included related our acquisitions recently $XXX,XXX announced quarter or $X.X share. to and Pre-tax continuing million of

continue restructuring these to to expect downward. charges trend We

items, the from have non-core impact operations been $X.XX continuing the share. Excluding would of these per loss

$X quarter capital million, for from FCC about totaled Our repack. about the expenditures the million $XX first including

expect reimbursed for the by our We be fully repack cost. federal to government

durability financing. capital an points. Cordillera at LIBOR with incremental took company We of debt acquisition, were On basis On And and XX, profile sheet take dividend be to Term the bit in bears of the about pleased to just reach to XX.X our and use Loan for $XXX the our to add the a terms by the conjunction at Nexstar-Tribune to $XXX March B ratio our loan X, issued obtained million million. expect allocation, we proceeds be upsize was will favorable debt-to-EBITDA used Scripps million. X for in Turning company. time we've the balance net quarter. toward closing loan to to the times. we At May more of pricing made plus million. of the XXX a the payments we'd demand improve little said advantage We interest The financing $XXX that our extremely this acquisition. of strong with The was $X opportunity Nexstar-Tribune than station advantage financial the transaction, and reminder, closes our

We for value. strategies bringing back company while share the at have on the growing prudent ratio enhancing the being. use we're all supports down, our source time our rates. leverage repurchase plan And concentrating suspending demonstrated capital with attractive ability to for this along of of our activity and shareholder And we're debt

in full Now the I'd for a like our to items guidance few cover and year. QX

Nexstar-Tribune for XXXX. update segment the of basis in that an $XXX range owning $XX for we for revenue all of our compared of million political about impact months. outlook and revenue $XXX low-single-digit revenue $XXX Raycom the eight adjusted combined XXXX million ad year, A for once on and as results profit revenue though an adjusted to on is Cordillera That adjusted basis. own Cordillera stations for Media which includes Media range the including to retransmission million be reminder, combined we Local quarter, QX the stations guidance close. the the second a provided of And to periods. had down quarter of full we expect We'll the again retrans First for Local combined million,

of first will week Cordillera quarters Next we quarter and results XXXX the releasing with for XXXX. of four adjusted be combined

the plans compared noted Scripps by through value. division quarter, XXXX acquisitions, key XXX. dividend beginning X% total through National The steadily XX S&P were Media XX% to the last this of over Station months shareholder first increase just our As from shareholder cost our the methodically new was has growth, cutting worked Adam to and return our And work. and to components

Now Media to discuss our Local results. here's Brian

Brian Lawlor

Thanks, Lisa. We new excitement two launched baby's be are Two of coverage took airwaves we charged the a it’s trials morning, multicast By XX% than more a alone area Atlanta the year the of provide death. high-profile only U.S. the network other on with to Good live their households our to We'll TV this ago, will year TV, new network. end, where of everybody. gavel-to-gavel Court reach trial remarkable and television in TV coverage over to come. great nationwide. days parents start many a Court to

cable In distribution We partners we over-the-air we Scripps and know TV. and months have stations, Xth XX soon. over platforms. Nexstar, are Katz The around as newly acquired the dozen distribution this our launch country well with include; as numerous a addition intend operators well reborn audiences not the the network to When TEGNA a to Court embrace Meredith ready we ago, did also

Our & audiences reporting. to provide purchase overwhelming. was market assemble great opportunity Laff. for this journalists assets expanding rating coverage and group feedback lawyers to We the meaningful given ahead then media viewers Bounce, see Escape But And courtroom a on tapes coverage Grit, the has the and be archival eager including growth were to and we been iconic of their and and new things advertisers and commentary from for fortunate of network. points to TV attracting path focused Court general talented

to company partner quality is think committed our system, perfect to journalism shepherd TV's transparency legal rebirth. a As the we Court and in Scripps

of nationwide Scripps Turning the recent operations, communities. addition how on I a each the station company with our footprint. these we're pleased They when closed deal how fold spent employees culture stations our very welcome to that their our they the of terrific months at time and I'm well-positioned Local May are are and in in well to to Xst. operate Media into Cordillera they truly impressed and

also network We Palm the a Florida West acquired DMA, in a WHDT. Beach small not have It affiliation. station did

later now Tribune Nexstar so a broadcasting TV And the stations network. it's year. forward adding look Court as for and to this We

nationwide. local television the With XX markets of reach. to Tampa operating powerful XX% stations York markets grow City, household will our that as with TV two Phoenix, and operate markets XX in close Detroit, Miami as New in different U.S. Scripps as in stations transaction well XX We'll brands such

two-thirds we than we Florida including of We advertising and increased and our stations the will of reaching and and Virginia second-ranked number own. enhance Texas, first footprint political more households entering greatly

All flow our and to our profile, improve our of operating strategies margin of new performance television advance these stations portfolio. broadcast cash

core first had our the year. of expected advertising see performance to level we very for dollars Turning were automated at now volume in the come to the to advertising quarter, the start we about pleased twice

Just a placing of and to automated used groups handle reminder broadcast local platform selling believe with as as in buying a broadcast We buys. advertising a near being tool of by agencies the very has potential the major inventory that advertising change buying future. and for the the aggregation it trajectory to national ad increasingly

big core saw advertising the after caused election also of return quarter displacements. We fourth spend

and core we the expect Bowl build throughout now year-over-year up impact the Laura. If XXXX you see this advertising X% to back year. here is core our saw Super stations, Olympics the and I about of Winter Scripps on advertising, And out

Laura Tomlin

Brian. this for their in by results see National sales us across focused capturing key levels Media The of our respective strong growth the at businesses. businesses the national the in opportunity and to really we marketplaces division our to execution continued delivered need four year, momentum revenue morning, underscores everyone. stay has Thanks, Good high upside. start The on

Let's the in each look at first grew these of quarter. take a businesses how

Friend. had nearly Stitcher execution from the Our industry XXXX leader, growth podcast new Dr. in shows benefit us podcast XX%, revenue Infinite found a listeners million That's growth from a new quarter allowed XX one to of and to position rate. and was the the recently a XX% show Dial in significant is to broader the grew for drove popular the U.S. the This and first O'Brien people monthly. the slate Phil that the audience usage now marketplace. bringing Needs as industry strong new our released now in in Conan year before. listen quarter. compared of show, sales A on commanding new success annual and audio first digital reaching The is was Blanks podcasts show receiving million audience Among Phil's increase report into media. Stitcher also ad high strong listeners them

Infinite and of international new wide our number XXXX is global XX% and with years over leader a grew Dial to Turning to infrastructure showed revenue its of strides more weekly audio QX Its Triton prior news closed expand ownership. path. a increase Triton, of meaningful we Study new in which XX%, recently seeing The are digital from audio an make footprint. to of deals our measurement for Triton's company. digital renewals has listening array growth great XX the than last media

in Triton value increases, it to capture to consumption audio digital is As technology publishers. offers unique a services the position

and over Newsy's well-positioned share the advertising OTT first cable start strong XXX%. XXXX. a the its quarter and viewer from saw distribution. year, also comes nearly in ecosystems revenue both take growing Newsy broad bulk Newsy The of to by is believe news to the still revenue We top in

are continues Becoming collaborations like-minded brand bolstered Chief Operator, ready of took Marshall among look in only was Newsy's organizations. Newsy's smart country impactful This with American immigration. be The in a important journalistic but now, for establishing our value. We release to kind an we partnership series are the XX-part Project. deeper for business at by And collaborations not This and journalism of news awareness questions. these Witnesses: with is important work also

Operator

question go Markets. of [Operator Kupinski Please Instructions] Noble ahead. Michael Our the from first comes with line Capital

Michael Kupinski

I have here. And couple of questions Thank a you.

to that performed had in you've issues your some your first a how for the provide expectations? or Any few months? now wondering, on color was I thoughts So company according changes can Triton you

Laura Tomlin

in Mike. They Hi, line right with expectations. Laura. It's performed

are year I think we we the last expect exactly shared be to low that in they to we their growth how expected. and mid-teens performing

Michael Kupinski

of including how of on course Okay. given of of influence things your the key but And along core and go quarter, of you on start just that bet the kind us auto? kind maybe of and should is that core new trends and would of how influx thoughts kind then that your this few moving think you improve can the into Brian certain categories on a categories give political balance the thoughts you as going to about through talk second year including core, are auto

Brian Lawlor

Good Yeah. Mike. morning

As reported, Super saw the kind of of we if we first the NBCs then about X%. and we had Bowl, quarter up core you out effect the five just Olympics back in right-sizing where

Overall I think year. in quarter with that core each up just a healthy XX% of million down first Olympics big on grow political had expect in in bit obviously that $XX think to was year got the to make and to quarter. the said a sponsor auto Much core this we and as with we we Bowl. you and of we've last of is expect around quarter continue Auto core. guided that We've previously Super right auto. second touched you the of do was to

that XX% surprising been of are about up that it the but struggle. services. lot not six but quarters, that down larger been of couple a have was we've So Services or now It's continues years than a there, strength automotive talking that categories to of a making fortunately for is bunch now. five other almost of like we category

of our growth, sub-categories. big banks, to strong, inside strong quarters very share due up really now estate a strong communications still. improvement been inside most by category. XX%, So nearly couple powerful very has really that was home and of those finance far for growth We see And double-digit it's autos declined insurance a real of category

for automotive. of they're So we get I making inside the think in up categories, shortfall other as

Michael Kupinski

in in and believe the Do term Gray. multicast number then revenue broadcasters networks other was TEGNA investing a growth I seem investment to changed there believe aggressive the multi-year distribution contracts. know that and I broadcasters that including for for year some And networks other risk at and gaining distribution longer you you. Katz all. be have of last Katz is of Got trajectory the

Adam Symson

of No each XX% reached know. and have a Nice networks I we with margins all are with that the don't. Escape, over-the-air grow. to marketplace distribution. guys out that than to good potential other great Look, what lot our more It's and a see of Grit figured continuing have Bounce, of U.S. established Laff growth

us will end be by fact its XX% talk reality in over with to year do up the is months the able of is heard six to that about due launch. that technology, we're the first Court a spectrum. our more You The which remarkable of lot compression

And might over-the-air is we and have The Mike, DOPXs. compression a stations their most years maybe business a this so reality are with started many ago DOPX. launching broadcast technology when couple think I DOPX now stations

be going biggest quickly sector. a Court who already and of other have distribution own nine the to move there's And we TV there room enough those We is XX to were but for XX Nielsen-rated. have think lot four large and a enough marketplace channels, launching of and is are largest the five nine the space, so the or these bigger into. in broadcasters in that channels We'll

distribution. So We lot to the expansion we don't in of see our any see space. risks a

Michael Kupinski

kind update on you the Got expectation distribution quarter. Newsy? us for trends an of Laura, now update and us And to you. just there. in give for really channel? Newsy have Are question on Last update advertisers the Can trajectory blocking to the the outperformed the seems an give Laura. -- my

Laura Tomlin

Sure.

revenue carriage of the of revenue. distribution do the cable that as streams as Newsy revenue well really another fees were now back So perspective. XX a Newsy quarter laying have for nice driven homes a We ad dual did of year OTT revenue from off million nearly have growth, great

every are platform nearly out We OTT fully distributed there. on

cord-cutters the are still or more consumers whether the finding have that So Newsy and cable. it's more folks

really audience monetization. through audience continuing to so on capitalize And the growth continue expect to and we growth

So our be expectations continue high. to

want continued journalism like see revenue that Newsy expect think think I kind need the this. I a at a of we're indication high and you rates. doing is to product this clear growth should consumers that And

Michael Kupinski

you. Got ask I'll Thank you. others questions. let

Operator

then of Kyle ahead. our And the next question line with comes from Please go Evans Stephens.

Kyle Evans

to want sure the but TV Brian intro-ed the that the group right? Hey. you make just does national sitting next I to go Katz in Court properties

Brian Lawlor

of They its but the That's distribution. run reports correct. business it international because

Kyle Evans

it. Got

are you just wanted Laura, I you revenue. that one make a strength your particular platforms? on any of of those distribution strong to couple on Newsy OTT I full the in Okay. front. times sure platforms, know in seeing mentioned streaming

Laura Tomlin

the really marketplace relationships obviously from do of coming Most and We OTT and on today. owns others with were Yeah. Roku some of Amazon deployed have Roku. performance almost the great all directly them. is

rates. You'll see our continuing to increase penetration Amazon

So while from a lot Roku of our the revenue comes platform.

looking with from platform with And just Amazon. a to trajectory consciously this we'll in sort start that more at on given expect that are we partnership We Amazon's capture revenue diversifying lot of that future. our near the

Adam Symson

Hey, it's Adam. Kyle;

platforms, also me Let major on as we're also network with is virtual works that TV MVPDs as in two bridge reiterate Court questions OTT soon all a hopefully the of and well. your launching the and multi-platform

And we've audience the as Brian we XX% the be described, right reaching reaching global TV be so U.S. Court over already the with and away we'll of are We households global reaching year audience. will the of to as lot bring we about to nationwide learned what over-the-top of that a and we've as well reach globally. our leveraged OTT as development well as Court large expertise audience business TV Newsy's while

Kyle Evans

I then some move Okay. see it, ad could on. One sell-through third-parties should spots a blank and bit more et directly and sell-through rates how Newsy talk versus about the I you you cetera? watch be of little I'll where

Lisa Knutson

You mean you you're watching OTT? see when – Newsy

Kyle Evans

ma'am. Yes,

Lisa Knutson

rates Yeah. at We – our great Newsy. sell-through are

nearly time the a of little is inventory. sold Roku demand allowed we're sell our high of So bit to out. all almost

We that sell to give that of a inventory So our goods that possible most but you're it's it, we of to could the portion Roku do be seeing. sell.

you're that So seeing. black be that the spots could

Kyle Evans

quarter? annuity-type in about higher-than-expected not you Okay. get highly high-level predictable How And few a talk this business. if the – retrans we as I'm do retrans questions,

Lisa Knutson

speak a So this to actually make We from out was so of Lisa. received good that is MVPD period. a Kyle,

that happens. that's So how

Adam Symson

truing happens have back There's money a up rights and back so audit And time-to-time lot do of outside that auditing, flows we we of quarter. and from a and forth. forth

Kyle Evans

where further any without be XXXX? Lisa you could calendar think Right. do M&A of the by end leverage year

Lisa Knutson

pretty next political the year up low-fours with of strong in we a to the step and be our to of Comcast, end clear see path next by expected Kyle somewhere year.

Kyle Evans

as And for updated cap the one definition? more Great. relates the FCC and Any the it Adam. DOJ on to thoughts and the DOJ market

Adam Symson

answer Actually, Kyle, let to I'm going Brian that.

Brian Lawlor

Hey, Kyle. It's Brian.

DOJ archaic. As And week think hearing current you marketplace. hosted know, to local a we've video rules the – that, long of that us the evaluation a evaluate last are market definition the said for we

brings I was not is or important five in our YouTube other It's the dollars light Hispanic to that's the marketplace think DOJ clarification the who and to just that have and testified television video moved local these stations, markets where by that players four of a and really the certainly and it's and Amazon Facebook four space that's people many advertising brought all new local stations. that and understands in marketplace.

of the beginning the active will what we timing and the a than this an I don't others believe year, admission there's but expect local the to to dialogue national ownership that. Related move broadcasters. still changes conversation at it an FCC. would actually we're ownership to to that this happen sooner don't ownership I cap, rules and local know be that for will know open with we hopeful expect hoping we if happens opportunity change and that think that we're evaluation looks So economists is hearing remains the cap later. it that like. there improved And the perhaps marketplace on. and We going up of

Kyle Evans

comments. Great. your Thanks for

Operator

Next ahead. question comes with from Ryvicker the Please line Wolfe go of Marci Research.

Marci Ryvicker

Thank you.

ways because meant give on the the leverage, guide? looking to first and think QX -- contribute of times your stock now, any there's what to And right confusion the beyond embedded asked I to think for initial at And you announced. at Adam, Is already there you're us quarter. few five your the expected is what parts. different the second the second is comments revenue Cordillera acquisitions thing people EBITDA had I then, guide above closing for parts quarter your getting is you've I'm at station even question and if more for in that Looking

Lisa Knutson

expectation with quarter. So, QX range for mid-$XX Cordillera full about XX%. margins million for in the Marci, it's revenue is the Lisa. That's Full

Adam Symson

Hey, It's Marci. for I stations leverage. Good very the the reducing morning. I announced, we guess Adam. focused in on we're the and would that say deals integrating near-term, our from

Lisa XX, after perhaps reasonable the be down XX, opportunistic described, in would to more I M&A think the to As continue level we'll a be in and low-fours intend station TV marketplace.

Marci Ryvicker

on down came I corporate higher bit little bit in you because full-year higher? and the year, think QX and any more to then, I what then a in two have QX trend, is are And both of questions. guide a comment assuming Lisa, Great. for to first your retrans guide $XXX the little trends, flat million

Brian Lawlor

That's been question take us now. for I'll the trend Brian. a subs. It's on fairly Marci. stable Hey the retrans

and look go we last decline X.X% seen the only total if a our year a in half, about at paid and think we've I back subs.

the the So there and movement between the MVPDs virtuals, out point. pretty but day, to some starting is at end our the close it's itself of netting

it Maybe decline for So, the most accelerating. decline. part in of kind to remain the modeled again see think stable. it's range, but We same a X% we've we slight going don't very that in moderate

Lisa Knutson

Lisa. It's Marci. Hey,

what's or remarks, happening first my And quarter. in in heard in quarter... think you I understood So the second prepared

Marci Ryvicker

Yeah.

Lisa Knutson

Yeah.

to -- in to see the of our So second of really we're we're we're some effect the for stations line time, quarter, with last starting year. same adding some corporate also line. At

Cordillera and the -- and probably absorbing like, if get to we XQ that's to some headcount detail you'd additional but related that's is year-over-year acquisition. So XQ with into more flat, can

Marci Ryvicker

Okay.

forward should run last the we as last use rate? So same for we like look a second use we going the half QX from should should at or numbers year

Lisa Knutson

That's last use if you Yeah. ballpark the year. in

Marci Ryvicker

much. so you Thank Great.

Operator

of from And our line the comes next Dan question Kurnos.

moment One please. [Technical Just one technical having Difficulty] difficulties. moment, I'm

Adam Symson

I the feel like I space. fill should

Lisa Knutson

fill it Katie, Operator? in?

Operator

One moment please. Yes.

Lisa Knutson

you. Thank

Adam Symson

do Katie, on in to Dan go the want bring we'll next and later? question Yeah. to you

Operator

next The question Yes. Company. of moment have question. Kurnos Dan our Benchmark do for a One please from Please from Instructions] the We ahead. line [Operator go

Dan Kurnos

Can hear you guys me?

Adam Symson

can We hear you.

Lisa Knutson

Hey.

Dan Kurnos

to giving the up, rejoinder I you us opening call. witty broke And I all Awesome. comments. queued your Hey. by this a lift conference with give Adam, was

Adam Symson

say was anything. wondering if to anyway. has just but it like anybody was I is going It

Dan Kurnos

just to five commuted that to out. I was, know me about had -- before can was unmute minutes that I I Adam. Well, for Yeah. you for figure wait how to what timing, get them

to guys confidence it approval anyway just trying you you through, have but things. insight scrutiny guys information. continue Obviously, for could Obviously, go buy color the Adam, important to guys up bit you're know, two sounds then, stations. reached front? more little give process? more you like So that question. And to in-market you sense I to the I any you just scale. M&A us to under any give to that's know on think, have that makes following going since don't are a guess I can on It I divestiture more Nexstar been, out into just on

to addition of You both areas kind in did Court talk about assets. TV emerging

you the get leverage you in you can will, you think about do two spend if reflex -- balance the a that level just those reasonable back you buckets? is So once sheet, to of how think balance to

Adam Symson

together on continue return are question the second platforms digital consumers coming an to listening that that, more audio the and clear -- of you would television. with nicely. of in our both update a digital are or would -- -- to future or the to Obviously, platforms. businesses that continue enhance And we a that divestitures. I then segment's to national areas And, represent future. more that Those media in that margin expansion us margins two opportunity us and It's promise businesses you outsized to that consumer in Let grow, think, secularly lot emerging line. we've the to And really clear are we mean, we if I businesses those trends. would performing looking and accretive said it's exactly ecosystems Brian's follow all are going over-the-top, me over-the-air, the believer answer distribution of all those for for the audio clearly, first question see along OTT. the Pay-TV to via be to first are

balance and be use better we we I'd opportunistic in plans those already of think those depth we that expand have. television we also willing national what businesses do station But a committed highest we and be the globally. the or say we'd already capital to have from enhance marketplaces know an I see in-market think sheet even that if our adding us priority in would in businesses like accelerate and to to put I We'd remain We reach we best felt that. position those something group. with local saw as

of our see with think durability us opportunity scale a generation through of the flow M&A. television of lot I see the we station economies there. for opportunity cash to the We additional enhance

balance the where to we has tidier. get that of place though, after a to a sheet little is come, All

again, now, process? and right focused want much acquisitions. digesting about the you on, talk these so, Brian, And we're to more integrating

Brian Lawlor

Dan, it's Brian. Yeah. Hey,

did the big are voices through DOJ that CW active where all that we're have And we entire of good. of portion and context deal that current with to Look be our We going working both in overlap FCC DOJ. of We're conversations reviewed of in in adding HSR Phoenix that. I a but merger. this market. The -- of ABC, in are clean. termination to certainly force. be pretty plenty that Nexstar-Tribune to not combining filing, our is the only big is early there's any larger But, I the get so think, divestitures our continue think We was the

our think expeditiously. up shouldn't along certainly hang that moving we from anything this of portion So

Dan Kurnos

both Got it. the having favor true-ups against sub ask favor And this heard the in Helpful. I'll a for and It guys. from everything in distributors a then, trends. little look, for some or mean you ton to maybe carrying I and to question There some audit reporting have we've just it. on broadcast not nine-month kind of differently a Brian even traditional of the swinging is like reporting lag your sounds signal year. vMVPDs bit been Kyle's

where way of Is are Do the have the subs of sort on been how the high-level in on gives outlook that you of kind get visibility year data for and you sub that confidence end trending? you of kind your what kind So, kind guys this? year? of that's

Brian Lawlor

quarterly numbers Look on reported get basis. a we

X.X% six don't we six-quarter so My And just -- decline thesis view. back a We've the conclusion a quarters. it's look individual at is be. last to about looked reach quarter we not and comment earlier is a an quarter honestly on what going about think

fairly video it's communities and the some of I XX that declining in have hold cable talked do fairly think a products virtual talking MVPD the relationship see cable it's small we MVPD literally households registration. again companies distribution have see about companies talked things more The up companies others But satellite the we're hundreds of than about to well. but situations. We that like that and we small are about true. operators intact those decline between ceasing top continue

last significant starts is on it fairly in year-and-a-half the and to view pivot based next So, of stable. something a history couple unless -- our quarters of remains couple

Dan Kurnos

Super guys this helpful. there multi-network benefit know Was just any in clear on in you be then I And May. launching to just quarter? are Katz

Brian Lawlor

this keep No, it a the big We're mind at in in investment. that looking long-term. is

networks many coverage about of We them XX% profitability stations move XX% of to we this the up at U.S. will about For take Tribune into start-up $XX year, we of will to as costs. the us the previously in pick said country. spend million year, operation that launched about it expect November other $XX and we'll have. will have and the million But quickly

on yet haven't ratings. We turned Nielsen the

think get And know product the distribution we perfect from our a the We on can in really will feel reaction we are based ringing, When when line. obviously also phones get the we direct their response. good happen in the market. next moving think six the to the for we've that's turn going Nielsen to We and that's catalyst the of time a that's into all general usually audience got on and months.

expect year, think us. big going this much I channel is be So, to expectations. certainly have for but very we We a successful really wouldn't this

Dan Kurnos

underlying seem I know there -- a that a I front Katz Katz had to strength you guys in conjunction to national been believe Yes, like know talking strong then outlook Brian it upside is if it. even have be with imply massive pretty it to because a And early. would needle actually ask term the longer I while obviously know certainly underlying it's I some want to want don't reason you modest which and about looks still quarter seem though maybe don't Court for people to the is comment necessarily in could that not mover, TV but too your book. on

Brian Lawlor

say it again. I'll

TV is brand going a to mega I us. think for Court be

it. going second first upside going good with That's quarter there's in that. first a I or best quarter right its be reflected owned our analysis to not since think to isn't of your think space in had of performing I multi-cap but one in the Katz lot is we've reflected quarter quarter, on. really our

Dan Kurnos

color all guys. Thanks right, All for the great.

Operator

Research the Partners. from line our with comes And Please of question Huber next ahead. Craig go Huber

Craig Huber

you if Thank I you. could. Brian, start with

for that is was seeing excluding acquisition, advertising Bowl, I'm Olympics so correct? X% number Super core adjusting you're in the quarter, core the the advertising small clear Just up that your first

Brian Lawlor

Craig. correct That's

Craig Huber

And pacing is X% up right well? second saying Okay. as you're now then about for the quarter,

Brian Lawlor

growth the second I quarter. in are but number expecting core in think the we growth -- year-to-year

Craig Huber

of range as help in you seen a acceleration you us or... sort that can X% X% bit to little But little of a X%, bit

Brian Lawlor

have first have reason at markets. it's that's quarter through, is that think think the don't I flow low look performance what and we half all the the singles. I for said, down the we color the as fact we -- optimism. with we up on based in I the clean categories But we think our local I that we our see gave The displacements of or think

Craig Huber

Low you. what lot OTT okay, talked that now retrans percent a your about single, portion And then the of roughly? thank for Brian you subs is

Brian Lawlor

that. We haven't disclosed

we've probably all you of giving think the said, I out. past hard to that hard figure kind wasn't in numbers we've are

that X over it's million I was the think XXX,XXX it we in subs had said virtual a past approaching now.

Craig Huber

from get payments least you retrans at the same that And payments? still I assume you or the can them as confirm, the traditional

Brian Lawlor

the to bottom economics, line yes. the The drop are inline, net

Craig Huber

then I versus Brian a is And news percent down sports that [indiscernible] now? right question for breaking had versus other? Okay. is latest what in How just primetime and quarter,

Brian Lawlor

by broken Yeah, quarter, I Craig. me don't have that in front out of

XX%, XX%, primetime; usually portfolio we've XX% daytime about in in As is that talked news; past, the XX% our across XX%, XX% area.

but the the the range out quarter haven't of for general I broken flows. that's market it latest So in how

Craig Huber

could you if break that out part? sports put you Would somehow

Brian Lawlor

less XX%, than XX%.

Craig Huber

digital to in if about in can done thoughts that update in digital, said your there key Any we could the revenue change various sub-sectors the you then when you've the your just your switchover past my for growth is And past in expectations on long-term I what properties? us you've question.

Laura Tomlin

growth past Newsy. and what the Laura. rates. businesses division to are Okay, expect have Craig. lot Stitcher It's we've National in the in said change these continue a great. significant I really Hi, any of will really in don't The Media high-growth businesses

that that the overtime overall low But we will grow sort much now mid-teens. nice be see should of Katz at and of and have you great expect the will whole the mentioned, continue to and in rates to the do Brian growth to in like continue and will Court TV a So as to growth great tied future. division try growth

Lisa Knutson

it's Craig, Lisa. Hey

I about be think have we organically we would that XXXX - $XXX that that also indicated by revenue yeah. would division over million in -- contributing

Craig Huber

thank Great, much. you very

Operator

David ahead. go comes Litespeed question from Next the line Steinhardt Partners. with of Please

David Steinhardt

Hey all.

million a sense So focus Media simplify as you really in vision so Media the together groups. far as like know Can of that broadcast two long-term over and to as and division to you've much what larger we've $XXX blend to do continuously Media is Local on the create the us look chosen if future? Scripps itself we assets And will you National division? give not going National that seen but organically television of the your grow for a it's what portfolio businesses

Adam Simpson

between sharing the Adam. content We Hey businesses. these work, of and together. morning. a National we think of lot logic businesses of a Local there lot it's lot the actually there's already Media Media a for see businesses No, Good industrial

all aligned Just division launch TV. We Media the well larger in distribution, of support brand both of as as Court as greater the revenue TV will properly. launch to to the we ultimately Local division lead we assets we an well as of this for part think that that think think our across that At contribution. as business company example, audience point, in that the our National think when Media about of a using Court greater is greater strength the its and we're

enhance expansion contribute continue a for they invested margin we to we're these And cash generation. pleased they separate about that talked will change But to the the creation or flow and generation the business, period for flow in to certainly as the Media National that of no platform supported company the we're continue maximises to mature focused Media going value past we're the their As perspective, to through configuration. a operating in our are businesses as as expect There at very profile cash that to a durability platform growth, whole. larger we Media creating Local larger full their on are potential. they and the in that that time, be grow long-term same expand National will division so of do we've a from the that and way and so in ensuring division plans the

David Steinhardt

Got it.

still Media Local so million. were last revenues $XX year And

this think I $XXX call million. to add million pro mean guiding would you be million, $XXX on forma and earlier you're would million Cordillera like I thought that $XXX $XXX $XX that million about

like understand us think growth? I the mean, that help just -- So I where

Lisa Knutson

owned that for talked -- look full quarter. of $XX second was So we million if Cordillera quarter David we as the combined unadjusted about

David Steinhardt

it. Got Okay.

the looking for can you so I at might give are year? going second us into the what that mean you quarter, look but And like full know insight any I forward, retrans

Lisa Knutson

Yeah.

$XXX owning doesn't months close. that retrans of there's And timing Nexstar-Tribune at eight for acquisition, that said year. the Cordillera have would the the for that be We uncertainty because include about million obviously

David Steinhardt

Got it. Thanks.

Operator

at further no There this questions are time.

Lisa Knutson

Thanks, Katie.

go get replay the now. can ahead You and

Operator

through XX today will and after Ladies this XX:XX replay conference Right. be at gentlemen May for available midnight.

again XXXXXX. dial You conclude XXXXXX. International conference our Those System at dialing for using by may and That Thank your does XXXX-XXX-XXXX XXX-XXX-XXXX access participation Executive entering for AT&T's time any participants Replay the Teleconference. Executive are code and XXXX-XXX-XXXX XXX-XXX-XXXX. access you the access AT&T numbers and code today.

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The E.W. Scripps Company (SSP) 10 May 192019 Q1 Earnings call transcript