SSP - Earnings call transcript Q2 2019 | The E.W. Scripps Company

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Scripps Second Quarter Earnings Call. At this point, all the participant lines are in a listen-only mode. [Operator Instructions] As a reminder, today’s call is being recorded.

I will turn the call now over to Ms. Carolyn Micheli, Head of Investor Relations. ahead. go Please

Carolyn Micheli

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

information. You can for visit more scripps.com

listen financial sign can emails to an information this and of up can disclose also You anytime call you receive to replay audio we there.

Media available Perschke. be Symson; The Also Tomlin. morning We'll a the Lawlor, Daniel Lisa from room Senior replay the link Media in National this Financial Chief to up is Vice will this hear President, Local Assistant Adam afternoon Controller, and Brian Knutson; for Laura President today Officer, CEO, and President, week. and

Adam. here's Now,

Adam Symson

ago, pleased Good solid will ahead moment. very then a is line will Lisa what’s when review Scripps on the operating company's back better morning, I’ll with ourselves look Nearly simultaneously de-consensus with laid positioning for an results management much Scripps and for Scripps. everybody. our well morning quarter long-term. the I’m you that to start in this estimates. is day quarter results, two guidance as at ahead second a to improve the team look reporting in with be years out the plan a aggressive strong performance financial third while as

Media financially collection Nexstar-Tribune executed more we households. stations. Scripps local a stations. the of handicraft reaching portfolio broadcaster independent close steadily the restructuring be on our then, cuts, than strategy more television and our disciplined U.S. XX% our will divestitures, the to largest of with acquisition fourth to divesting of and expense of have plan powerful Once pursuit we durable National of a That approach performing Since a of reorganization radio, growing a better television and included segment

We where quadrupled number and our number the and one operate markets two stations. we have stations doubled will two more than

our We further and footprint added expanded will political have already more markets. large attractive

XX the top and mix. stations, in stations affiliation we'll will With DMAs diversified have we our Nexstar-Tribune XX own the

say year, our comfortable by be last balance The this you've exactly sheet support the would we clear deliver, main heard our so important been long me what driven over path done. that that's to we has action factors. Now we've flexing had a urgency of to as three realignment,

local could been First broadcasters the number that have of was limited. acquired

active from have market. to we M&A more year's pleased So are last benefited

step-up including of with XX% Comcast way adding pleased of very the XXXX, finally we're time moved for subs was XX Scripps, to ourselves next year. the our positioned election for in the moment renewing renewals we're the company political Presidential footprint will this the months. still even MVPD capitalize a our through after in half first the in Second to XX% December on we XX, our households we reset course, is now bigger to on our have and another Comcast And best our of markets of position upcoming

in on office. for sales this will political million have cash $XXX The of will of in the the including our flow contribution cash XXXX, free increased be expect we impact Nexstar-Tribune $XXX with all significantly million. to and stations, company a Brian of more color advantages the the free our we is we give flow to generation opportunities moment range work have national advertising the profound of and about Scripps

Our and company this emerge durable. will stronger period of more from realignment, bigger,

debt. and a clear I when to path is this down pay so say And mean see deliver what I we

consumers exceeding spend on second in in While business, local an we’re quarter The National brands growing more platforms simultaneously performance turned their and broadcast new Media our resilience of the more the where of impressive expectations. we’re division the on capitalizing National and strength time. and Media emerging

million $XXX in neared time. revenue quarterly We division for the first

Another shared you. step to important on with the waypoint path we've our

on than maximize that's this a $XXX more of segment track revenue growth in be comes to growth. value. contribution the XXXX. developing deliver on And of ultimate and businesses to these for all fully disciplined our organic That million to clear, of result shareholder back as We’re to approach their

broadcasting strong and a Now generation television Court TV, viewers. rewards leading of in renaissance Katz launch the of Five new reaping of with Networks broadcast is a the over-the-air

remains the is in who market Stitcher riding the their Newsy younger objective more consumers audio of to expanding dedicated this focused quality share of journalism. out Likewise wave news a Triton even marketplace over-the-top opportunity. capture digital significant it seek of to as and leaders television in growth on are

a asking busy been two but everybody Scripps. what's It's us for years keeps next

and and are synergies, our priorities the providers their Pay TV content immediate quality smoothly full Our use higher flow pay to for financial our the realize debt. and just yield brands down free distribution of these integrate high to assets value cash with local capture to

and we critical this to results is Let year our We a strategies. to our executing crave our me equal XXXX, creation. energy in mission near-term this value and long-term the journalism, committed close as financial that move fully steadfast remain and objective and local the our to way national thought, we're need quality performance on demonstrates towards giving the team we're audiences of provide with in management focused

Lisa. Now here’s

Lisa Knutson

Good morning everyone.

in than second guidance. results pleased strong the of significantly segment a or that companies met are for reporting had to be expectations consensus higher our that EPS we in and We beat beat quarter, indicated including financial profit came

the start the from of that a X, we the through closed on acquisitions affiliate January far. NBC closed I'd have Nexstar-Tribune with Gray, That for on of the closed Cordillera complement we acquired we're stations April, divestiture. Since powerful small acquired to stations. independent go and our Raycom soon station closed We on from three Palm that closed the highlights West or Xst that close so to there. January a television the in like XX announced Beach We Communications stations acquiring stations reminder May the eight we in expect we've XX local divestitures quarter, I Xst. station in Before the will acquisition acquired

will presenting discuss growth since we of basis. Xst gives media find results release, them as local adjusted I this picture. an Raycom, We combined January stations apples-to-apples on clear and an you on adjusted on In hope owned though press Palm today's the reported the Cordillera a combined both basis presentation the basis had you can results West and as XXXX.

about talk performance. quarter our let's second strong Now

the retransmission was second an the political in million. we Keep local last mind of second Cavaliers local nearly had were year core $XX was we about the quarter quarter the flat, In in adjusted playing XXXX of from games million the $XX Expenses on Finals. the down XX% quarter basis that media media division, and XXXX. on during combined up revenue Cleveland of basis, advertising four adjusted X% was nearly for flat combined revenue quarter, revenue benefit the second NBA in had

Backing were out XXXX, a bit. up that we benefit in

million fact The million revenue coming in the delivered QX of a the as strong for despite that quarter of I'll $XXX our weakness, the the time. close results low the basis. division to seasonal reported Now an about showed first Media also second often National mid exceeded on $XX guidance our division rest quarter talk to

at than revenue bit expected came of the bit performance profit cost than a performance. million. a better $X.X expected million. revenue because were National corporate Shared more segment The tied services Expenses in about drove the to Media higher of and $XX

per For from share. the the $X.XX continuing loss or second quarter, was $XXX,XXX company's operations

to of moved earnings $X.X restructuring $X cost share, when million acquisition charges plan. $XX of exclude These non-core the of integration costs and you costs items. related to include million savings we $X.XX However impact per of and pre-tax our million

We to to wind expect these charges restructuring down. continue

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

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

we last capital expect to were in million out $X we during second company about $X the stay the we our mature On while million $X.X told you $XX issued quarter down the quarter, and unsecured quarter Turning No allocation, while second year-to-date. dividend to Scripps in Inc., the senior shares as Escrow, market repurchased totaled XX, was made million cash of XX, subsidiary debt in of billion. payments June XXXX. notes that on owned paying million debt. focus wholly $XXX July On total

were received rate with terms pleased in we the an and We X. receive demand, strong X, we the this to because were of X of offering interest able

credit million. from of will $XXX acquisition the down and our amount go financed be to proceeds the facility. Nexstar-Tribune pay-in or We $XXX million Most million of pay additional revolving the will stations $XXX also the to the used for increased

with we facility financing had As million closing for conjunction of an The We in incremental interest XXth, as and reminder with of a an rate this of rate And LIBOR of in we terms loan financing at obtain the credit just B X.X%. $XXX that the of on interest well. outstanding was is Cordillera XXX $XXX of acquisition, May plus revolving the were points. extremely issued there pleased Term an with Loan million. XX.X basis the June

local the be we in X.X And transaction, you is television financial there give significant broadcaster. ratio pro Adam don't higher growth know increase of nation's debt-to-EBITDA you, stations largest At level. an We leverage diversity, created was forma network our local to to and it immediate knowing we independent long. basis, horizon. embarked XX us than that closes as fourth time that Scripps position durability on value times with our Scripps and expect defensible for on on as this heard traditional the the flow tell Nexstar-Tribune we've a course plan cash economic We leave adjusted

flow we to $XXX million free in anticipate As million range company mentioned $XXX in Adam to XXXX. of cash the earlier, be

company out pay-down reliable reposition leverage plan because than context higher and the day we a we've executing have it's to the grow debt. laid and company while EBITDA So the of path our in normal, is to

revenue Now revenue let's guidance on and an ahead Palm local quarter all guidance. In combined for expense owned as Raycom, we look West Cordillera periods. stations provided to we media and though press today's release, and basis adjusted retransmission third

Nexstar-Tribune not stations The guidance. this are quarterly in included

on quarter, of an that media third of basis. comparison quarter political during $XX local revenue reminder to million XXXX. a expect mid low revenue we teens And third year, the last combined QX adjusted in down took For of in we to

about Media results. in shared expecting now revenue We come media in services at National line discuss expenses million. local $XX the here's of corporate the to million And and range to mid mid-$XX low expect to million. We're Brian $XX the and

Brian Lawlor

morning quarter. a few successful core Lisa. like I’d the our Good from everybody. performance start about comments Thanks to second with

Finals NBA of which deliver the strongest and be XXXX to five was backing home benefits our back pleased services strong XX% appearance. revenue development, we’re XX% accounts the improvement, categories in our to total for the business record Among a out able which ad up new were growth the some Cleveland top category On of of categories and quarter. year-to-year Cavaliers core

In automotive digits. single which quarter showed growth been Inside second auto mid improved addition including the the now single Dealer segment XXXX. growth quarters areas decline quarter. over The was the year-to-year seeing the category in percent Group of of recent we're the than it's second in the category, smaller in Domestic digit

Overall, advertising expect build the the see to we I through do move of as to year. back continue half core

XXXX opportunity around political While XXXX advertising corner. we’re initiatives, the we're executing for the our busy just that's preparing

of to one benefit started, broadcasters election to Presidential positioned come. ad just from the political is best believe we Scripps With of race wave local getting the the spending

close the the Nexstar-Tribune, country. stations markets we will across XX reaching With have in XX of

is go in in acquisitions most path that very states Presidential the Scripps all they'll states. the NBC in now markets. the two that wisdom there. are nearly through the of and nearly given right Lansing. us right is important Arizona, It's additional Conventional White positioned to swing four of in Arizona. Green in Michigan and Bay, and affiliates own And Phoenix in opportunity these and Scripps the our will advertising Our important We political Detroit, of critical footprint. we strong households will will the state's clear that Wisconsin, have House reach XX% stations three already own reach in Tucson two two stations combined soon have in Grand Michigan Milwaukee and Rapids well households

Florida be next year's important in election. will an also state

Florida. complement Fort and TV will the and Beach three of stations With in Tampa, of to Miami West reach Tallahassee acquisitions XX% Palm Myers, nearly all Scripps in households our

City. producing the we've New stations Colorado in addition, TV In Presidential and be news will expanded footprint in York in station as Utah well own first cycle in we'll and our that a Virginia Scripps Texas and as the XXXX,

we in but course from two as have including and to elections Missouri. Arizona races Virginia and expect In strong to tossup Montana and Ohio. political races important Senate competitive Montana. in of It XX elections discussed Utah races the Jersey, as we've tossup ABC Scripps And states in next in New have still we four Michigan, the early State year, And in U.S. stations benefit of is Colorado sales. stations seat very well we'll and Scripps and in related past, a the Governor's advantage Indiana often and open in Scripps

nearly sales working to local buys directly decade, without office efficiently our has their stations Scripps with through quickly For a maximize and political national advertising campaigns in a D.C. managed on Washington advertising own third-party. our

from campaigns I for the to as our political more elections $XXX forward grow service of Scripps revenue. look about close As data Adam to footprint, providing midterm all way our we forma expand early too referenced, only XXXX pro can our our our tell and transactions you in political million. proprietary XXXX. revenue opportunity announced ad the Scripps expectations to It's to for revenue XXXX, was isn't But that And U.S. size-up this tool our across we

months, will subs all In into new step-up retransmission the Scripps next agreements. XX% XX of

business Now segment Katz National to I'd Multicast and like financials. in discuss Media appears me our reports which to the

brought X of received iconic TV's across the second country Katz one enthusiastic true-crime coverage TV May quarter, network has brands its back audiences Court trial During the and by been launch. since most

broad perspective, Court distribution. is and the new hallmark TV talent of its fresh of addition In a

the drama Fire of In the find any Amazon first XX% of stream Lovers apps its the over-the-air on XX% is far XX% fastest TV network households It's and end Web By months, this the more of TV on top two was site through U.S. year, its XXX,XXX from viewed Katz the TV cable multicast on delivered including reached channels. will Networks TV have Internet and channels, that broadcast Apple over Roku, TV. hours. and homes. mostly Court by can Court live of than is reach its in courtroom That TV distribution. mobile U.S. of

new more The had value digits. Katz mid key with the recent advertisers a Also here's number Laura. rose a sales advertising And of five good advertisers. overall and CPM then CPMs in converting creating networks response new with strong Networks to upfront, XX% sales Katz direct The single advertisers. buys now quarter by higher are existing and rose

Laura Tomlin

and these building marked Thanks and positioned scale the performance of reap Brian. more such strategically their morning are platforms market Good progress itself time rewards National platforms effort. The audio Consumers to see and spending of leading well as Media delivered consumer to segment fast strategy growing podcasting. as that on digital and on television to everyone. over-the-top Scripps beginning has each of as now businesses a terrific ourselves we over-the-air during the by establishing second of continued today growing quarter our value places. and

In several the in Business the National second quarter, we of earned Division. record revenue

That Katz, our million surpassed revenues segment all Our Newsy our Stitcher profit. beat division expectations. nice and the fueled in strong as neared revenue $XXX

we’re our third in expect year we to bit the to very moderate for ahead rates While the looking growth National strong to Media a finish segment. a the quarter,

and is quickly A content Today to our that's In Let's listen message expected. that report XX and along PepsiCo advertising who podcast market. name listen the a name start and previously brand average already They weekly now tend would the popularity. network and recent and is continued Farm, J.C. their space. the podcasting audio seven and to gain than others quarter, audio listen lot. the roster $X are sales many digital for about Early in listeners grow Stitcher million ever as go Stitcher podcast advertisers these month projected State Stitcher week. positioned saw following XXXX digital with IAB advertisers expanding an podcasts the industry business. and advertisers sharing These Scripps began from more demand medium a our those to including of well billion into distribution to podcast podcasting Penney. podcasts Brand saw every an realize to on with of in streaming podcast music businesses. opportunity Americans for effectiveness

report. in during Bonneville the U.S. that and signing survey Conan their this currency others. Africa clients quarter and begin second Rinker a new as measurement and The infrastructure second Australia's Triton published South establish is Among definitive shows audio the Stern listening the continued annual hit Dial which leader, as with expansion also Brazil will would well was in which country. rare downloaded Stitcher’s Edison was Triton franchise biggest Also podcast million announced included in audio expand the habits Howard times. during Research in Dial adding Australia introduced first Infinite global the Triton, they Infinite O'Brien quarter the digital company consumer interview the help in and measurement and of that X.X fall. industry's its quarter to podcast expanding a Triton

The are this builds reputation strong and business Triton efforts top on South Australia of base. opportunity U.S. important Africa as steps and international its

doubled second Newsy expectations Turning our to National XXXX. network, News to continue It in from quarter revenue second our the of its quarter. nearly performance exceed

younger distribution delivered services to cable a find everywhere TV has as can be you means multi-platform watching Newsy other over-the-top a that and strategy well audience employed as viewers. that attract Internet

rape It Emmy these Edward our highlights also Newsy’s motto we received for the stories of story into at such agencies but a audiences way Among burgeoning a are a for a From not teacher nationwide are national award out we operator, police journalism the our the attract we funding this only cases. unsolved protests recent national R. as prematurely our Murrow our research, organizations over about nomination news now movement influence. as and mission journalism not across level. closed brand seek with Impactful the states, viewers investigation awareness know helped these school inform joint country that for questions. objective and build large the Washington Bureau Scripps receiving ready was part

Operator

first Dan ahead. with go [Operator Instructions] Kurnos Benchmark. of And from the line Please

Dan Kurnos

thanks. negotiated level going lot is with just on the guys XXXX. the been of going What's in for of into on market particularly re-trends though obviously, kind guys. of some interesting there's you've blackouts. Nice high rate already what's attention quarter Great, you Adam really the Comcast a

of from a trajectory finish you So you and for scale to given of you the where and rate sort the returns? net sort the of Comcast perspective sort how expect about hand year given future do think that negotiations of your have sort just in

Adam Symson

deliver Yes, well particular morning, of continued positioned I really in growth and Good the look so to and our importantly Dan. the fees in now of local product popularity are broadcast we companies given strength most the distribution Scripps consumers. position our think for

I an the force strategy. think we think we reach is the behind distribution that equilibrium viewing until ways driving fees have level I are where our to go for of appropriate and

Dan Kurnos

change know, you assumptions factoring sort part reverse I really provided in of also of a equation? know outlook you the haven't sort And to but just any your outlook on your re-trends of net the

Adam Symson

change no all. at No,

Dan Kurnos

in quarter. is like just the with struggles do simply point. to lot upside, maybe nice a revenue Nice national of you. obviously just just obviously faster due upside you're moving there. Okay. your some sort one even marketplace profit towards it competitors have intrinsic you you side, tailwinds incremental then How versus think I'm the some expenses and that the And I facing much curious of because on looks and the gains inflection in just Laura Newsy. the incredibly at Stitcher of was for strong are

that is or year thought accelerate happy now you're balance I there growth mean reinvesting to maybe So this kind of seeing? the with any to you're

Laura Tomlin

bit and really growth execution we're capitalizing I Stitcher in really at and exceptional year, we'll in little in happy had a we're marketplaces seasonality OTT expectations. just both expect I'd and of seeing we're the teams surpassed podcasting. certainly obviously we strong balance our but say with these to finish and on pleased we're with QX have Newsy both QX the an seeing

Dan Kurnos

guys. right, All thanks

Adam Symson

Thanks Dan.

Operator

go will ahead. go we Please Evans Kyle Next with to Stephens.

Kyle Evans

Hi, great. Thanks.

I to for of one think next Try line, I Nexstar-Tribune you target the year? not year-end do might hog every Lisa post have leverage you. by a have one

Lisa Knutson

year. low expect we Yes, mid-Xs the to by end be to in next the of

Kyle Evans

you Great. as kind you give Brian specific get sub-count? on could us a of And can

Brian Lawlor

Yes, like there. of a movement we're lot others not seeing

net I seeing think the we as which we decline about at last XX than better months, look modeled. we're a is X%

a again between So still fluctuation and products netting months it's little virtual X% about over decline. happening the XX of but there the is bit out that's traditional

Kyle Evans

you could Laura, the a sell-through, bit dive volume, pricing, Great. down CPM. effective into little unit Newsy

distribution you're what seeing give us household traditional the tell there maybe us cable in and Just satellite? update

Laura Tomlin

homes. Pay-TV in households and Yes million we’re nearly XX

broaden as that much We continue as to footprint possible.

OTT side, at anywhere see very OTT. sold not On our $XX, high. I rates to CPM ever sell-through all are if mean $XX the Well Newsy from we rarely on out

Adam Symson

positive of And Great. for that still one Does same? some of M&A there, hard kind Adam. then podcasts out Lot Stitcher are change to or outlook your of for it Thanks. negative understand.

Adam Symson

I a validates and for entertainment, it most important one look think Podcasting had mean for long not Yes, disciplined of lot we've seeing time. would our a very a the early to was going a approach. and journalism. The the with That's of platforms the say. thesis storytelling is business we lack future of of the we're company be approach take I discipline, but into I invest companies

that and happened in what's in see Newsy marketplace. even we've grown the the can way You

doing were but competitors way There the that's didn't on what a not we We're penny probably the so at getting have we're and massive that disciplined a there. Newsy operate. valuations operators, we were And look made other path I side important recent same recent just continue the I to continue and scale the that will in same But position. Scripps’s in validates that direction. think the be we marketplace events, that with push M&A exact Stitcher expect in way, to haven't

Adam Symson

questions. for Great, my thanks taking

Operator

Ryvicker Marci Research. go ahead. with from question next Wolfe Our Please

Marci Ryvicker

Thanks, have a I couple.

in that include can Nexstar-Tribune is then guide. XXXX what what your also clarify just you guide? talk can seeing for you stations free Does you're cash political first -- about the and flow The

Lisa Knutson

Marci, into the it of we Nexstar Tribune does any given components include but insight really haven't and that.

Marci Ryvicker

issue clear you a the starting Okay. as for I And when year cadence think had may we you exactly give beginning each QX of us have in our this a give that's more there some renewal because quarter and confusion. to just up little that us that because of don't next but that come subs year timing maybe percent can end is for a in know sub creating that I be you

Brian Lawlor

Hey Marcy it's Brian.

I think we most new importantly we're our XX as on re-trends as on track subs at next come just full-year look mentioned to the guidance of contracts hit I XX% months. and into then within

we then next the but the year. have the Comcast it of by will obviously middle end of big of opportunity happen with rest year So the at all the

I will say next all the of be all June those, figure year. but significant renew contracts by shouldn’t negotiated all So and most XX of

Marci Ryvicker

Okay.

So you for end? the only have is QX thing at Comcast the

Brian Lawlor

the before end this year. have renewals more we of no Yes,

Marci Ryvicker

That Thank was Okay, you. perfect. it.

Operator

Please go go Michael Noble we’ll Next to Markets. Kupinski ahead. with Capital

Michael Kupinski

increased Good of you plans these I to question their Are you. would content. want minute. a working in does just number sales necessarily their broadcasters have wondering competition you. some was for Thank quarter. the how distribution Evan's podcast this affect broadcasters to Kyle for seeing with to I expand increased are A with space? you And content of and go back

Laura Tomlin

Hey Laura. Mike, it’s

investing in and the a content. broadcasters, of there. for into of one been more these I space reiterate Adam strongest have what we the business and the period We've broadcasters think catalogs long getting radio of to are in time out of content said, some

listening We have the most shows, their obviously where distribute is podcast. people of some performing top platform a Stitcher

to a any and distributed. is take being adware platform, is in both having and the content that really of in marketplace So able listening advantage business we're

Adam Symson

are radio would for I side. podcasting. those that, continues also top expands add companies upside for also service us there's for as the Triton podcasting to on that the broadcasters marketplace to platform They in streaming on all often the Triton the are as of turning additional of

Michael Kupinski

the full-year And booked for of they've political this Presidential booked XXXX? any stated you Great. have on already being Are broadcasters Presidential number at the thoughts that Political. Political time and seeing

Brian Lawlor

Brian. Mike Hey it's

early got a booked for have Vegas. the there. out We've Las We some spending little early out primary bit

opportunity XXXX, for For set year an our due to revenue which State but both have out Legislature were and the and we Lafayette slightly Lexington be we we Ohio of they reported is obviously Bill elections. rest more going to than expecting of Energy think down in really quarter gubernatorial the I the ballot

So in toss-up now. in political XXXX it result of Lexington right XX% at than QX more race did as Governor a a

So mayor local some tracking. are Denver got that local races and we in in Nashville got also some strong We've Diego, races San Indianapolis.

and So I the not see Kentucky where probably we're so year, momentum because Louisiana a the think but we're they good we in expecting for do much Presidential have races. gubernatorial

we'll think I this continue to track year. well through

Michael Kupinski

and a bit the of of the because your continues distribution talk Katz, to kind about know bit But just like Katz thoughts growth margins can XXXX the little Katz? wondering on segment you you about forma a where then achieved a was and of about have Katz it growth you terms of impressed it when Can for with very And several margins some us flow well. actually thought networks expanded you little some I there. when know I I idea basis. revenue pro Katz of you and $XXX million for it that be us in it in in $XX Media give that talk also that gave perform like of you purchased revenue, performance I over if I in you. was And you million was National to in going Thank know looks cash looks

Brian Lawlor

the Katz last break to you they year again. touched going on which you not but revenues I started as quarter. having country, country. by and equation you're grew the it's see They're country, dead of Grit and the their XX% of really Bounce, margins launched We're Court at XX% XX% on Brian an this in Hey Distribution Mike, all Escape, of out in a terrific May the part are on unbelievable quarter. over of XX% is had Laff higher the than can at think

in a said my launch frankly be never remarks, over it seen up I network end the the as But of like distribution. we've year will that which by of kind with quite XX% that

a in but of think here. is I the TV So Court momentum interest there's lot amazing

I really some as is they're original good with show a programming on a what acquiring combination that its well television of creating as programs. really seeing it's Top XX they're Bounce think centers

well. you partnership then with original Simpson the a Series had on launching originals. had with with associated trial Kevin We We we're may that where created in we Hart XX-part have a announcements O.J. seen done And some couple Court. has very that other which

So trial each Menendez O.J. that and so a was of synopsis we and on that's week up in that brothers conjunction anniversary own the in event. then weeks that one-hour a going of library of trial, anniversary to coming that we XX were podcast the with XXth Simpson do we're the week creating

So we've and these content well original I really Court shows as think of programming. great it's as got for this great library

we well we're audiences to getting scatter advertisers convert big networks the and of and well space. combination the the I did in about year. that did strong combination market it's distribution, and talked the this more in fact it’s how course other We Of of and able buys. really so the upfront we're

hitting really they're cylinders. So on all

long-term that team growth have great management excited and there We of about company. really we're a the

Michael Kupinski

That’s I I the Thanks have. color, for Great. that. all appreciate

Operator

Partners. Please Huber with go ahead. Huber Craig to go we’ll Next

Craig Huber

little you is typically tracking advertising political TV about you number talk Good core stations is to revenue I year-over-year sort sort little a forma pay of up pro the your hi. bit, the ask would bit? flat a excluding since third just quarter for down the can of the Yes, Brian, morning. they're like

Brian Lawlor

quarter. in fact a strong five it's Craig, Brian. Hey started and our good very of six very August third categories, We're were July having strong. them of in equally top up looks July

want you So I'll but don't to give a I you. number tell

to quarter at is quarter a good for Third us this tracking point. be

Craig Huber

what second better The is than I vision it pro like? which bright the have forma, you flat far quarter mean sounds roughly in posted

Brian Lawlor

opportunity think exists. Yes, that I Yes.

Craig Huber

auto category the they're what seeing little can little quarter little or in you tracking bit third you then And worse? in to talk quarter, numbers similar the a Okay. just those about the you're bit further second for bitter a saw

Brian Lawlor

some which July has looks we the but write sequentially and to year. that good. third us in really improving best better been of for was our quarter tracking trend. continues they're auto got month Yes, Obviously, finished still points September August

Craig Huber

has be just Okay, the question clear. here. I for up know re-trends do to renewal but been asked contracts

for Just year, significant? the the the is the XXXX you full-year of about that first half, second anything can about go you what half through talked

Brian Lawlor

year. Almost year our a half all in percentage of There in in are of up in but small half the up is of first will meaningful the the XXXX. half come back that's that XXXX the the contracts the first of subs up most come

Craig Huber

on everything Nexstar-Tribune? including a a forma that's not assume comment pro for or just I or quarterly through

Brian Lawlor

forma. It’s pro

Craig Huber

percent you up What For too, can guess everything, if XXXX anything? I okay. for for is renewal, pro we so have think that forma about

Brian Lawlor

digits. Single

Craig Huber

year-over-year. pro those And revenue maybe forma us for Okay. And you the percent were separating you forma other growth if was think expenses we willing excluding time there the and two compensation were, last What employee with Triton to the also please? out guys costs this pro give I changes could. then over to could jump Triton

Lisa Knutson

acquisition we year Hey late meeting it’s really on Triton last Lisa. the the their performing and based announced expectation performance year-to-date. Craig, it's

we those to last gave So metrics that back fall.

Craig Huber

think mid-teens, XX%? time you said Was that was Lisa up sort I last of

Lisa Knutson

be Triton announced, we we when Yes, growing indicated in the low-teens. would

year-to-date So perform it continues on to our based expectations.

Craig Huber

the the year-over-year? cost without compensation and track does lines, Okay, what about how other Triton, that

Lisa Knutson

segment? National the in talking you Are

Craig Huber

just yes. sorry just Thank you. National, Yes, in

Laura Tomlin

other expenses in that? the Yes, National is

Craig Huber

Triton, excluding well? also exactly as and National was within compensation Yes percent change excluding that line, employee Triton the

Lisa Knutson

wouldn’t think on We don’t as I break business about relates it that. Yes, by to side out the it expense that.

Craig Huber

just for in but you I’m Do excluding total acquisition. not Triton have that? the Triton sorry

Laura Tomlin

you. Craig, we'll to get it

I think to you're what want that I know I'm asking I but clear. sure make

So you're saying employee excluding compensation?

Craig Huber

was compensation other excluding No, yes change same the employee question percent National then the expenses and with National? in for Triton, for what

Laura Tomlin

yes for Okay, we'll to that have you. get

Craig Huber

Okay, all. that’s question, I more Brian. have do one

the number, forma what willing do give number, political was that? are guys XXXX You XXXX you pro to the have

Brian Lawlor

dig don't we of you. we in that have out front I for me. Yes, -- can will that Craig,

Craig Huber

Thank Thanks. great. you. Okay

Operator

And Wells next line go of Hebert Please Fargo. Instructions] the [Operator Davis from ahead. with

Davis Hebert

the Hi, Thanks taking questions. everyone. morning for good

should guidance of think a you Is we range? give taxes that as and cash more how on guidance. question that there. could I then dividends color about little if wonder First and part after us bit free it cash flow the CapEx

Lisa Knutson

dividend going after is be it cash really so don't much a taxpayer we and to expect Yes, of forward.

a on million So side, range. very million to $XX on acquisitions we CapEx would the and taxes in for all little pro forma basis $XX the somewhere be in

Davis Hebert

Thank you. helpful. And that's Okay, the just housekeeping. then

at Station Nexstar forma pro acquisition. being the X.X for times You mentioned

Comcast that confirm to the Just wanted step-up correct. includes

Lisa Knutson

Correct.

Davis Hebert

okay the what LAQ XXth pre-Nexstar? as June be of and your then, then you've completed acquisitions And with leverage would

Lisa Knutson

over X, would Yes, sure. X.X. like be It little

Davis Hebert

And Okay. and Gray with others? and that's Cordillera

Lisa Knutson

Yes.

Davis Hebert

And sorry, with the step-up? is Comcast that

Lisa Knutson

Yes.

Davis Hebert

you leverage you And would being the mid-fours move or then to Are you Okay. move see low comfortable that? there Xs end beyond there. that think the Got it. into we do by as you of XXXX. to like How about mentioned

Adam Symson

to to this I to We to after steady the intend like a direction is even think typically Adam. low XXXX. Hi in move would mid Xs, is state. continue be David, We in that

Davis Hebert

You said low. mid to

Adam Symson

Correct.

Davis Hebert

you. thank Great,

Operator

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

Carolyn Micheli

Thanks John.

Adam Symson

continue So down this doubling of to Thanks and expect million. we're confident path value again. shareholders. while I'm our right our growing from weekend. more We'll range businesses. on durable that cash station is also our for to television of Have on National debt we on We're to a we the be verge when plan the and great are Adam fast flow in million to create $XXX a to XXXX capitalizing $XXX paying summarize, XXXX, free the portfolio everybody. Media executing

Operator

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

disconnect. may You now

The E.W. Scripps Company (SSP) 9 Aug 192019 Q2 Earnings call transcript