SSP - Earnings call transcript Q4 2019 | The E.W. Scripps Company

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Scripps Fourth Quarter Earnings Conference Call. [Operator Instructions]

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

Carolyn Micheli

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

You more can for visit scripps.com information.

week. to up be available listen disclose link can emails any an to there. up The audio and replay the sign financial can time a and will information this also afternoon for receive You call replay you to we of this

hear from Brian Knutson; National and We'll morning room then and Doug Local Adam Media Tomlin; as Lisa this Financial Officer, the Treasurer, CEO, Lyon. first Chief Laura also and Media Lawlor; from in Controller Symson, President, President EVP,

Now, here's Lisa.

Lisa Knutson

morning, everyone. Good

for XXXX, station all growth more at doubled businesses. and X, opportunities January with National a year Today, improved the enthusiasm the portfolio, see significantly our capturing the Scripps and we closes when Comcast began we our grew year. than successful books looking now industry our TV Media operating for very our On and we on of value performance are our time, from at position, this many first revenue the we households a

a first, expectations across provide the will combined XXXX and all X, on we though Lawlor Laura results which beat you again strong results, adjusted owned XXXX. as-reported find release, and reminder, as once of press since an of recently Brian today's can results our Tomlin both fourth board. I an had basis. the discuss will our basis In acquired our just I stations color moment, in highlights January on more review just but will quarter a financial And the

same-station our ad XXXX, million performance fourth revenue to of about basis, quarter from adjusted talk was when or Local combined revenue. our In $XXX in we let's Now, political million, $XXX XX% on division, an down Media XXXX. complete strong had

combined Local Expenses adjusted our in nearly on advertising up more million quarter. X%, down advertising guidance. million. Political were was $XX X% basis, was for $XXX with Media retransmission with fourth Core an about line than revenue the in

about fourth a rest surpassing an National all easily the million on results million the The strong $XXX Stitcher had very above Media Newsy, to $XXX Now, of Triton, revenue, the the to quarter, and division as-reported of guidance. hit our let's talk Company's well over-performance. contributed Katz, basis. mark

of Media million National revenue Media in the including than would bit Shared a expenses were $XX assets. to million. were of those some adjustments, Without expenses National under corporate reasons, $XX services pattern and to fourth programming for higher cost and just a in higher of have tied expected our quarter. adjustments amortization around come number the the profit the segment

or the works continuing nearly integration as share. for share. net $X.XX costs quarter million The Pretax of by well was included Company's $XX cost. of per current out restructuring income QX income million $X $X.XX one-time from nearly costs and related cost Those to as decreased million $X taxes. That operations per acquisition

$X.XX per exclude of item. of non-core share the reported the we So if income would have you impact

last local million $XX in million in notes July of broadcast million unsecured due of issuance of portfolio the is senior Interest expense fund compared was expansion. loan The our XXXX. to the increase fourth term quarter to B, to million and our $X $XXX $XXX May

to which we million year. million $XX by expect figure $XX expenditures quarter totaled for for reimbursed government. the The FCC fully fourth repack, $XX million the the for for capital full-year be federal and includes Our the

quarter and the $XX Turning payments full to million capital dividend allocation, for year. the Company in $X the made million in

was for new $XX debt million, $X.XX December On million. cash XX, a have We also while repurchase years $XXX total two authorization totaled share billion. and

the for on first Now, on I'd guidance adjusted revenue an like expense call, today's Media are combined quarter. through press Local and release this guidance providing and In to basis. we go our

quarter, first the we to to up revenue comparison Media Local of For low-teens be QX expect XXXX. percent in in the

Media teens Local up as be to expenses the low in well. expect We

However, expenses would increase be cost, the programming up excluding digits. in mid-single

National to and Media, million. of expect expenses Turning about million $XXX revenue and $XXX we $XXX between of million

of We first come expect The for expansion Media at compensation quarter, to and National shared in benefits continued due million expected corporate is in division services items. annual the $XX margin the the this year. line around cycle and to

return lower to quarter. rate run the a will in second It

the proprietary to due stations Finally, report replacing the That's system rest we yield in to we that expect the CapEx year. higher will to at Tribune are a in than software mainly of synergies. we quarter order first the former

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

Brian Lawlor

Lisa, everybody. good morning, Thanks, and

haven't both next yet, by much into Super or to even primary lost American well the people keep his horse XXXX with be months. We've up contested over a the have campaigning got Tuesday billionaire election. gained presidential we but parties. Well, a states, dark a with advertising eight the lot polls hit we're and Congress in The to a incumbent up way

We've the an role positioned in for begun this highly doubling especially stations to messaging, gaining serve size one and after democratic already instrumental of to political is the ranked broadcasters best our more of process. this Scripps medium play in key as portfolio a markets.

swing the us Wisconsin. states, a XXXX. and we presence enter Nevada back in strong of Florida, states. fundraising races, as early these including well-financed number reasonably have expected The We'll Michigan, levels Arizona, has presidential half Scripps of a give

race cluster a receives states own we toss-up also the Arizona, five political three dollars. advertising where of high stations races, competitive stations Governor's Michigan. We a our And top Number with U.S. and Montana, Senate the percentage of X of in in most have Colorado

races our House XX Phoenix Virginia Richmond. Detroit, will and including New We our Norfolk competitive in host City, in stations U.S. York markets, two and

our strong at also stations. three We expect California issue spending

expect a to revenue $XXX efficiency record now cycle, we with of level combined ad election nearly strong million. Scripps' expertise of sales the start political political Given dedicated the office, the own XXXX at and

third travel up all finished through quarter. include continued core double fourth We categories digits. momentum the to up leisure, advertising, home quarter QX X%. and nearly Turning improvement Strong retail, services, our and

home XX%. growing up Our improvement rapidly category well was over

execution and our is drive businesses, trustworthy sales the to a must local Scripps all proud quality audiences economies Our partner of be to reach local the order and grow. who continue And strength. high to to in health

strong another we revenues, turn story Scripps, page as XXXX. Retransmission for to the

pay-TV we January X, of are on another first forward other As in and complete, now this look reset retransmission more have long-awaited we'll we half reset our several year. this rates year, then XX% than year. contracts revenue to next When Comcast of to the will we receiving renewing our the are from key will households XX% those of

revenue five Turning them. we the up Katz are extremely was to pleased we the the performance networks from the over XX% since Katz fourth with to quarterly of acquired Fourth networks, quarter XXXX, quarter best year. finish their excellent

up the revenue was XX%. Katz year, For full

Strong particular in the networks, another XXXX advertising and the ratings driven revenue. and great significant to growth year viewership is TV Bounce, for be growth across Court expected Katz in Grit have networks.

our that owned the beyond years been the first which just Weinstein with distribution will you, as the will big we've full TV and OJXX to The expectations. Katz Harvey marked and growth TV continue more on the starting events, fueled and quarter. business two telling which original fourth Court this week we've concluded larger series, exceed two audiences, quarter Court The trial, be by continues

Laura. now, And, here's

Laura Tomlin

morning Good Brian. Thanks everyone.

profit previous the have are expand division over revenue as for in further QX in us milestones, we well of year. also $XXX $XXX track the million and revenue exceed These delivered $XXX our are Those Media quarterly XXXX. We're million meaningful National on of margins proud in to million in nearly to guidance year. this

in four It XX%, that Stitcher XXXX, late an enterprise XX% annual our on businesses increasingly basis. fast Media Scripps' and All at big Katz apples-to-apples businesses which acquired at all XX% strong these growing is as four contributions They XX%, National Newsy improving behaviors. significant on to growth. Triton, we value, our capitalize of in of are media XXXX made at consumers' leaders marketplaces. at changing they are

the delivered was Let's start the advertiser sales on fourth increasing team due and with quarter shows of hit a performance Stitcher, This to quarter. effectiveness ever demand. sales its combination sales in largest where

most than XXX Over more in else the last ads year, Stitcher the has anyone podcasts. popular sold

variety in portfolio popular Stitcher its with fast that shows of is a genres in industry. including another our well with includes create popular marketplace. growing comedy podcasts This the expansive in addition of We crime. in performance, podcasting, advertising and most own, positioned hit a and its the and list portfolio combined sales we represent we extensive that end-to-end approach true competitive In to content of

on approach mentioned XX%-plus and app, advertising standard revenue course, opportunity sales as As is platforms, strategies. multiple connected the listening ad to we in continue the reach through path mobile audiences additional gold industry of platforms its assistants a smart to podcast data These range. Stitcher's cars. business holistic provide Stitcher's I us and it our the Stitcher's in an well listening as inform puts growth sales

to nation. news the national story Newsy the contextual Our audiences with resonate network its big facing because of continues approach to objective

the have said on year, we is crossing it track to as Newsy this later profitability was. just

growth wayside. for was voice audiences our a important so said and to exactly Newsy's long the profit for We've what national And been fallen that's of develop competitors news and we've the contributor while Company. plan younger by the have many in landscape doing, an Newsy into

provides multiple XXXX. in Turning international the into insight revenue. Triton's East top use streaming Media to grow milestones ranker Africa, helping expand networks. achieve stations Europe, Middle to Triton, audio we National saw the and Metrics our to continues tool newest and Its business Triton's in performing

allow certification industry. the received has also the it measurement Triton the become Interactive for will Bureau, Advertising to that from standard podcast

podcast debuted year. fact Australia last for In Latin and report Triton ratings first America the

will release establish they the Netherlands. the U.S. foundation with Triton provide around to podcast streaming currency it in and Triton measurement In make has audio expectations, to This is need informed reports These reports continued the the the this the digital laid to our to digital capitalizes for growth the Triton in quarter, decisions will industry. measurement the as buyers on took in podcast audio trusted third-party leader worldwide. financial as advertising. exceed path itself measurement. Triton's have results become same podcast podcast

Now, Adam. here's

Adam Symson

Thank morning, and you, Laura, good everybody.

to of because two us year Those of is year XXXX setting looking in, we to free very we the strides some And been with the reposition time growth Company, make have work cash generation. is in flow really the the nicely. would now, been the for in and This up completed we months margin knew who XXXX. you at meaningful Company forward have we

From now a retransmission revenue our of on happily we step up. side Comcast perspective, are the other

XXXX. of expect new strong households. distribution by mid-year, rates Those a back move you we of will to us rate market creating our fully value our to capture to of signals into another as the up, fair half should XX% for Next pay-TV the move run

political up votes. to Brian brands shaping revenue ways before for Presidential candidates spent this ask they their earlier for before, us As build advertising also spending be said, broadly year. haven't is are and massive in to and they more

to One influence to reach television. hasn't Because though, tremendous that is cash their majority year thing for have outlook all, They XXXX start powerful by ad is most far way our changed in on strong increased to being we the we TV know expect broadcast Scripps' spent All the free for generation. money of the a the of revenue. and America. flow XXXX year, political be

from help in While have to the a political as also our put advertising PACs that during them recognize in sort use season. audiences their television their confusing to best confident the broadcast trust we and contentious politicians news facts what are promises platform, be in operations fiction Scripps' of

to sources are to high-quality dedication as our recognized proud because of coverage. among objective new best that news unrelenting newsrooms I'm Scripps say the

a social has understand audiences help to As Scripps a corporate news their responsibility world. organization,

first So Week. we news Literacy the to nonprofit, the News hold nonpartisan with annual partnered National recently project literacy

trustworthy to to of campaign between move work Americans sources disinformation. educational critical this for year, it's because our We'll important democracy. of through The public distinguish continue our awareness educate business to the was as and we sources designed news and

and XXXX plenty a take in when podcasting. a podcasting moment this we trying early certainly one, Now, to of explain Scripps were acquired in about Midroll we back let when was I We like we how in podcast and money. remember to calls conference talk were made me what

business. is podcasting All that more see I been a podcasting from podcasting in lost the attention have the building of juggernaut. operations we way, our investors. recognize growth to pleased the we're television lot in our now, scale gets a getting sometimes along local And

and riding me the moment the a several other become to let our So, has as on Laura last been describe just measurement ago, with XX% our remind that for standard high podcasting, revenue itself And consistent growth it execution high the podcast XX%. we've expansion heard you back is in of digital audio. as to of marketplace's positioned deliver as north and how, SaaS you business Triton the years,

and of emerging more fast-growing create marketplace. taking I'm has pleased this shareholder over-the-air Likewise, broadcasting more and couldn't in a value broadcasting Scripps ahead notice opportunity investors when to a then upon was building was folks from an Scripps to see a the for story. acquired been afford networks. in value pay-TV. totally different Whereas reserved time, over-the-air Today, a the in resurgence who Katz and it's expanded we once recognizing platform

MVPDs. perfect linear pairing on And options plugging old tuning growing services while and seen for alongside OTT. the is so They're into everyone antennas audiences and right over-the-air subscription new Internet the television. virtual variety year What's television TV, focused has free digital younger and of has to been by again the is broadcast in over as been

alongside executing XX% our to Katz last the over-the-air powered plans more again, five use our year. Americans OTA growth choosing networks growth Once networks, has to

recall is You'll rate expectations growth higher had that we for acquired business it. the we when the than

The and renaissance Scripps and company's position marketplace. the contributors the change look Triton, on take uniquely At to profit portfolio Stitcher of from Katz company, important our this stem consumer in and capitalize disruption. alongside Newsy, over-the-air five growth. we local media from our of and are to combination that Katz to opportunities networks our television advantage

strong value. revenue and its results, That's and you generation division organically that's shareholder today's new build way Scripps can creates margins, National businesses the from to As way is see enduring expense. surpasses our as the expanding

landscape commitment and audiences. our results reap year to this will Scripps repositioned we near-term itself our informing focus ever-evolving future. media benefits with mission has thrive our the and executing and Together of the the deployment well those prudent successfully to capital, of in entertaining through the of for into the our shareholders, on moves

now, we're And operator, ready for questions.

Operator

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

Dan Kurnos

Brian, couple. noise the been of the lately, Obviously, a some in space. Just - the I've is retrans lot net a focus probably on given

So maybe year can for to or expecting there change outlook is what of just and just some on the then you sub you're if to retrans. the that net this about front timing talk questions. any seeing extent kind And your

bit correct you and and I have also the benefit I the think step-up a CW QX it's of smaller think QX, occurs I from maybe dissynergies, QX bigger then the would magnitude get us, to half first remind if next be going little the helpful. right if year just in and of that's that into of some Thanks.

Brian Lawlor

You lot me a there. at threw

So let's start.

all, guidance the a it's a as we we renewal first our of the for subscribers subs. negotiating but of the of know half in those give process in the didn't little just, large we're of odd up retrans, are XX% I on year right of portion First and now that for said,

the us months us to best a guidance of or couple it's have what Give and more at shareholders' lot on lot So this best a insight a interest in think give looks frankly, quite of this like. point. interest we don't we'll our for

Lisa Knutson

that obviously, net then, retrans as would into well. also, And translate

Brian Lawlor

think of I more XX% more first you cadence up the in quarter. the asked in quarter. first in of just terms the is comes Yes,

negotiating And actively so, those we're now.

much very better. peers, week. a I seeing on all asked digits just to you also quarter softened think low sub and been is reporting in Fourth a what actually year-over-year. was we're think they've what net our with mid-single about counts and bit basis I line Down

XX% some the happening, in shift We for that declines virtuals the last see in but softening. do uptick still net QX. up so the maybe is think very year, saw virtuals there we we a over nice year, were And

Dan Kurnos

think, one I one yes, more just maybe just piece. - more

Just you I that benefit any of the also up? accurate think, frame is of just the CW guys some 'XX think to of Is dissynergies. into get to way remind us, that kind writing I going and there

Brian Lawlor

accurate. is That

give those to wait caught well. these up in will again, little we detail more as think I negotiations a are since

Operator

question from And ahead. Michael Capital. with Noble is go our Kupinski next Please

Michael Kupinski

at I a of to the wondering somehow in you TV Maybe contributed from of saw was and growth quarter trial? that up give and a Weinstein Court sense give some you significant maybe if growth if could you how can was just sense there the much qualify maybe just revenue Katz the us step in that Obviously, us that?

Brian Lawlor

York on the its launched, XX% Mike, I Court we on New Chicago. cable. Pluto as But country step-up and distribution, launched Tribune and that, another X. when Right TV, you Brian. May about XX% over-the-air October LA us, into XX, us live on TV. of with know, the meaningful we had was really think and we the stations on got that more came that's When went in after

think building I distribution quarter and So through moves ahead the typically, fourth of revenue. was Court distribution the the of

where revenue now, proud a was and grows the there. had interest. see visibility some more. bit of it. a of in every a right the uptick studio Weinstein lot had a as very We've branding right little I and So is result of great to our trial, courthouse. across we the would great We got from clearly you coverage. New it's We settling York of in Hopefully, got week, right growing thought it a

very high-profile think it to And event. establish Court through was so, I step another TV a

and So, should - is the really news we're through year a brand. it's beyond. credible would what becoming national, big we It's say, go Court on TV where hoped exactly excited I returning, is, we as potential a And big it to be. this

Michael Kupinski

increased Katz Brian, I And, you're but for know investments it? me - have just making since TV, you you that for tell can owned margins Court

Brian Lawlor

Mike. Yes, have. They

Michael Kupinski

first that political reflected How number? the sense can Local quarter then, much you a is Media me guide in of revenue? the give on And of

Brian Lawlor

to really of already Much we're a to - books booked It's is business we in business getting and some political have million having his first quarter. the look, good surpassed hard week-to-week. Tuesday still the $XX for We've Super quarter Bloomberg week-to-week. write.

soon weeks XX have we us, three primaries, are so As through of multiple expensive because after have as but for all states is we we big a then Florida, have are Tuesday, Ohio, Arizona, day big, in get that, two March XX, those big is where They Super March stations. Michigan we markets. there.

So, obviously, grow the expect to beyond we build million. and $XX

off that will we relates it look is it more maximize nice quarter, to has day, - start the but tandem. in And to quarter, are The at really it the Core to I think working the impact to on revenue. write, our maximize we'll is like a really the revenue. more of the end for what two our As job core. really the

I performance; core political think a performance. good very a good have we'll have we'll

Michael Kupinski

then, coming you accelerated sequential and advertising other sense And Newsy. on it in quarter. the there? give a saw you It is color from? that us the forth? or on so us just growth give distribution of cable from coming kind where growth Is just some Can Can

Laura Tomlin

Laura. and will build The it's we've and some it's growth We time revenue still is audience our as being see that's so the time. to audience said more really on consumers driven those over cable before, and OTT. going primary that grow more take to driver. at Mike, And by platforms, Newsy growth on

Michael Kupinski

will on run bit, but a to of a little second my like look as forward? quarter give expecting step year-over-year sense at you down us - question. we $XX or it's quarters give us growth and in subsequent you you XX% for sense then the can kind we're to The the rate And look - said going can shared last that of corporate the that a in going what is million, step services what

Lisa Knutson

Mike, it's Lisa.

and cycle larger expenses are due up as the our really QX mentioned, So, benefits to of some I of that happened. footprint

remaining but us up, You've QX a been long tends the around rate, that XX% time. run the to moderate pop over will quarters.

run forward. growth So be our won't that certainly going rate

Operator

Wells Please with to go ahead. Next, we'll go Fargo. Cahall Steven

Steven Cahall

renewal give try down to retrans you looks cycle on what color pin cadence to going of I'm reverse Can us first, as for you like retrans the year? or any on Maybe net bit your maybe well.

Lisa Knutson

Lisa. Steven, it's

will have typically in subs we disclosed retrans XXXX, outpace to net net our but our certainly on retrans, based said, peers. of Brian in large not percentage sellers As new rates resetting our our growth

Adam Symson

in. do talked this and note, have all not one Steve, And, cycle. other because networks any important renewal We about year. the with renewals you We're locked

Steven Cahall

authorization. buyback share so Adam, then, And the and leverage, announced you on

I - has sometime past stock think the you in even the the investors underperformed thought stock enough committed when weren't deleveraging. sometimes maybe to

just when that help look versus you the when us kind for debt? might for you to of the you look active to you So terms get market want of in in repurchasing about can think pay down waterline

Lisa Knutson

Steven, it's Lisa again.

expire current Our authorization to our - fact March X. was in set

in So we, new announced, put a authorization as place.

While it's that change. said focused back the instead place over we're we have to believe several really do the quarters. not currently authorization circumstances we've last an delevering, shares, We in buying event in prudent are on as

just begin as a delevering. buybacks, we hopefully So we've is will discussed priority really delevering, to that share I and the of point ours get again of think, as

Steven Cahall

drop missed prior it, about sounds guidance or million? upgraded the I a flow as to should $XXX through did if you flow you've because wondering you free And address think free cash that that prior so we to given guidance that your to gave, just political it that - $XXX your cash you guidance, like then, maybe but million

Lisa Knutson

Yes.

generation So cash we're in for flow confident free XXXX. feeling our

cash guide free to scenarios. previous Our some really a upside that $XXX account million. was of and million downside $XXX And range into flow took

our confident generation in said, cash I free as we're, XXXX. flow for So

Steven Cahall

your last else then, in one think from And multiples assets do realizing value just some the of I'll we've given about you let the and how transaction audio then somebody for peers? seen but me more talk,

Adam Symson

we've over believe within and talked unleashing we're growing has making mean, a yielding obviously, value. then into the modest our Company. - Company, of businesses, I focused the history years this and moment, for on investments the value, And it's transactions. oftentimes creating creating businesses businesses we're At are those that including Media long value shareholder shareholder about organically through National the our we audio that Steven, Adam. Yes, digital

Operator

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

Kyle Evans

political 'XX Brian, all bit that? pacing core you you is underneath from your then wiggled seeing outlook and on from for well. out pacing of kind talk what's you're Can so auto in your is rest underneath of that subview what what's XQ pretty about guide the little on far, XXXX a

Brian Lawlor

in think, well. Well, core off core. top first now way We're Tuesday a fourth. all, of significant Kyle. off some The so industry of industry see I to a had in, political, displacement we in as mentioned the third, there had really top can good Nevada, is the good I There Sure, coming political it to some for core we're Obviously, you as is political. in the of quarter, was Super we start start states. and it's seeing the

we're to expecting of healthy. be half year the the So first for core very

the I expect happens selection as through year. are, we the who and depending think on be work the with some what we candidates that there'll displacement

or political that kind as seizing work I half through to But opportunity, be whether it's start, back core it and year. last was dollars we'll the managing good of a just off of dollars. we it as it's But the think is core

- still in about January, up write the got for core five - think Top February, our it's we in to X but - of I so points six we March, the again end were good our categories February, feel of so so, And as at well. strength some of

low-single quarter it and of the XXXX. year had year was of as way February we fourth dollars writing probably of it its best It it doesn't and been but still down we're came out appear concerned, was flat and as last be gate far in Auto digits. the to down entered March, quarter January, As the was

for down you, up comes factory the The to drill in dealer little to really actually were us. QX Just groups dollars. a bit down it for

down dealers and we combined dragging us, is and really so see foreign double-digits. it's bit. for domestic factory foreign The the entire up down a do the But That softening that were that category. little domestic individual is

up does to you not auto of be And appear this lot But year. and be be but tell displacement, that stable so, more to due to going probably - was a it a category. would going to I'm

Kyle Evans

of roughly the you parts million takes political on a on basis issuing number lots and pro the - the 'XX there. for a talk $XXX thanks Can a bit little Great. cycle? moving versus know forma puts Thanks. there's And about that, I 'XX and guide. cycle you

Brian Lawlor

'XX. Yes, anything look, it like doesn't look

forma pro you did. 'XX was just comparison. to a that I $XXX mentioned million give just Our we

already million So QX. had, it of $X million. $XX passed far, In we've in I QX XXXX, What... was we think,

Lisa Knutson

did we 'XX, $X million.

Brian Lawlor

We in have $X XXXX. million

have ahead we we also So part - six probably country is we drive of and competitive but going expect it, that. Senate Obviously, in on around presidential we're Colorado well of to there maybe things, have Senate, like pace as is three we looks races the handicap largest the it Arizona, and Michigan.

states, going we of to the so money are in. that and I have are lot the those in a I that's states have for stations and Senate around expensive will more move states think we're positioned probably markets up our we well think So that multiple wind PAC

in lot races, we're money. early I of Diego, seeing races San seeing know, XX that is across year. lead don't an We're as In spending I the the state. toss-ups Montana very and money then, is to going the gubernatorial side, seeing have we the XX. a to this already which House competitive be market mentioned, where maybe race. House And We're first I spending about going the open We've Republican we some got mentioned have are already be competitive.

comes think thing, it don't going to to all I So it's down one I just don't think be presidential.

of but the on states we presidential bit, the may of candidates, - I think at we a vary the for think little swing know have and where the I House day, a great where the much going a depending footprint have the is states to going portfolio. the that is we through good come come and is governor to going money money spread from, to we real Senate our the from be know feel of end

Kyle Evans

the amortization, Court to fees in licensing we I'm TV Lisa, can programming mentioned assuming an has jumped Is with launch, that switch to XQ. well. as and about the that? is number National you we think how any Maybe there we seasonality in should there in number business. that and also that but that phase it? XXXX jumped How do Great. The over maybe to should

Lisa Knutson

the So part piece. chime in may the question answer and XXXX your first I'll of Laura on

business our for make really amortization expected So the recognition, will that wanting obviously, just periodically, ensure the of things sure of reassess recognized the alignment programming of normal economics usage expense to and be to the of we course program. kinds

come So that you a that's what bumps through bit. quarter, that in first one-time - that that saw adjustment expense that

Laura Tomlin

the distribution the we've entire TV. continue the year side, in on investments footprint for investments Court in in And network. that further made make to Katz We'll last

Kyle Evans

Great, way while I've Any might terminal you that got the margin is business profitability. like? right tracking hazard, of look what might I Newsy on you guess, Laura, kind toward here,

Laura Tomlin

investment our margin we you to that a to we the the pursue is continue look if capture perspective. growing XX%. Look, think rates division I to metric disciplined at an but take a expansion division. margins as growth growing we from to of to at continue say in results in different important revenue these as to long most need in continue term, a track continue do I'd invest around are settle would fast these expect we marketplaces. Really for last each the approach businesses from and we year, revenue, to

Kyle Evans

first of XX% in know to And of at of those I too is half big because then talk characterize the that? ones, much the and of all two Thanks. it is ones, of XQ? of the Is Brian, renewals kind the negotiations, end out the you this process on but for of more some about want get year. of combo I'll could One don't you structure Are way. lots in you're that? kind it little renewals, the

Brian Lawlor

half Kyle, The it's more subs Brian. renewals, quarter. XX than of up first the end come of at the million

up XX%. I them are negotiations. small, important have, deals they're large that say, meaningful of We would None several and make so all the

Kyle Evans

But at half the XQ? of end

Brian Lawlor

half. than More

Operator

with Craig ahead. Please go we'll go Next, to Research Partners. Huber Huber

Craig Huber

of half for the please? to renewals What question Yes, you Just maybe us year, with should second the that? on start please. the follow we - update I'll on just phasing of just about about that, the think How sub heard. the

Brian Lawlor

in so of Craig. Yes, renewals half, first our all happen will the

So...

Craig Huber

second is saying? the in none There half, you're

Brian Lawlor

correct. That's

Craig Huber

what next for year, subs? if any there is have - phase that? just the year about retrans you just on for next Is that And how

Brian Lawlor

Yes.

subs our don't next up. of of We in are you XX% up that get exactly front me I have later. year. to when have We those come can

Craig Huber

Okay, good. very

television the what about is driving if network Maybe basis for driving broadcasting exactly first low-teens have What would will, for It's than piece, talk but guidance here on that? pro you the we is year-over-year cost quarter you that? higher up forma. can thought. a comp Your

Brian Lawlor

television is in usual the than really back A cost Lisa significant you still there. higher it bought. about so to network couple think mid singles, thing, rate. major called out made and run of stations of that out, it's just part some the And which if you is normal things mentioned, expand fact the of than we're Yes. one-time a that couple news is because up it higher we our obviously commitment We've I as a a of and of

morning there, New or some And just is as in York markets there Phoenix there just in acquired so a are as we're in a launching we newscast and - news and that there expanding brand news we're and an investment two there adding get station one well that as expansion newscast that all. new is we've weekend so news we're Miami adding to other well. onto up the we costs expanded So our running,

So count think It's communities what of most. Scripps' we us brand. think the part on local do news I for is

capture opportunity if the with we're political news costs so that. associated expanding of and in so news business, not You the the much compare you're as can't

expansion. this the merit, are beginning then associated so the the the at that the getting it's count year, year stations is seed of benefits HSA the money, that, head Beyond it's and with of we acquired first of beginning of other just some our news stations the normal and time Tribune seated addition

of that cost breaks the think QX. extra down I why So kind in

Craig Huber

Brian, aware Is is biggest affiliate significant comp. at the - or just I escalator for is what of clauses It contract contract jump renewals quarter? though, wasn't sounds going the mean, like, on first there year-end I more the it any network exactly accounted.

Brian Lawlor

same stations. for, renewed. or markets CBS year. half we acquired new we our at with a did on a quite of negotiated television the negotiate We mean year, contract so of for agreement the Tribune back four - we think, five ABC No, negotiated one renewal we last Cordillera I a of I few when contracts all yes, our time new the in We last had station from a FOXs

new year. and of that have would over time been incremental last all this So

Craig Huber

you're it But in - at was all done of so didn't... year-end, terms that suggesting,

Brian Lawlor

all the bit It in the done of it year - little quarter. a done was well, was probably the all half - and second fourth they in

Craig Huber

at sorry, your here year-over-year teens so guess, Forget so up up sequentially to much? low quarter? much I'm versus get then, is, the up it I'm are is TV I why why costs what fourth trying

Brian Lawlor

relative I investments what really news spoke to and think in gets it to Well, just back about the news expansion... I again,

Craig Huber

sorry, Those comp are you fourth quarter, jumped, the then is in quarter, guess, network comps message? I seeing first but I'm it network see Brian, jumped those - you that, that not in did the the

Brian Lawlor

we I calendar that's of some on part new of our think a ABC portfolio. in saw quarter, it the stepped have would largest and fourth up Well, year plus

Adam Symson

expand that the all Craig, out, point are and that decided new investments we're all of that of and that the also Company. would news to stations investments strategy all I ROI-positive when get into were used of to investments the part for But on some markets in these capital key are making deploy of the stations these the all we we to second list investments

Craig Huber

cost you this of should for on it that of what given a topic, question like last sort statement? Is I moderate, through. year sounds went just just my the remaining guess, growth fair I probably guess, Right. part

Brian Lawlor

correct. That's

Craig Huber

that there, any from the at might or both unknowable core point, the Is an National TV then, all? impact and much hesitation this are thoughts it so at side side here well, is there I'm and it you you hearing quarter advertising sort on this people's where your just on of here there hit advertisers unknowable air just totally out as quite like advertising this out well, far going the National there, the is around as are? this pocket also issue well issue but Brian, And the curious on sounds coronavirus

Adam Symson

like I'll tell hearing. that. what anything not hearing you we're We're

think heard commitment local of potential information in journalism. another haven't to or particularly turn our audiences case an of for We air seriously, news any pockets. The information I example the the to mean, we outbreak Craig, need. why will so and US with stumbles us the of is they our our COVID-XX I in take for

And, going increasingly as fact, public our we service are to in the local us responsibilities. on what rely see officials to execute

and dedication our of to is commitment that professionalism the of think demand scenarios I discipline same these level us with on delivering key. that

especially the take steps already plans employees business and have maintaining reason all the to the ensure our safety and and we necessary in the obviously, place why across health It's will have continuity Company. of while

pause We that or execute anything respect just we're and heard results haven't seen to ready gives mission. or with guidance us to our

Brian Lawlor

going our our comes the retailers, advertising are way want our categories, local and I as don't is the all all from Obviously, impact affected. local are of just we're think recognize Brian, this it be travel adversely markets. watching companies, service is, it the Leisure, but see to market advertising add. relates at last so technology market airlines, Craig, their Two-thirds reacting that why of our days And, They're our I Those advertisers. others local and I those not in point. to not and businesses, to we to the it's it’s advertisers, local reacting couple

Operator

Please to go we'll with go Next, ahead. Midwood David Capital. Cohen

David Cohen

been everyone. my has Actually answered. quarter, you. Great Thank question

Adam Symson

David. Thanks,

Operator

And, Partners. we'll to David go go Steinhardt Lightspeed ahead. with Please

David Steinhardt

year. another congrats great on So

National the looks with along news, business it forward, Looking like revenue. grow Media the you're continuing to

get idea provide additional to where you're the through trying but I foster out? you if of base to curious where just growing. it that the terms might of leverage be be Just helpful might know - one to expense Just any content, understand would that in can are growth building expenses

Adam Symson

very we The there and Yes, we're obviously disciplined for the TV. continue The David, revenue to well on margin strategy are our business. We decision we you that give into focusing this the growth believe is to on perfect of positioned - launch kind is back to Adam. I'll throw expansion. continue example, expenses about a fast key Court its the

XX% and obviously expansion good growing business, a think growth we National Katz order revenue year, continued reinvested last the margin from We of organically example them our some it's fuel launch networks Court Even saw that, and look in the growth early expectations the and TV. for the revenue of to through to margins. the I way last with Media and took profit and year we

David Steinhardt

I your like - terms so million mean, the stress then, capital want you 'XX? $XXX authorization that of given normal to talk guys levels by in repurchase in And you just addition, levels that the think debt should can get I really to to we repurchase of end maybe about authorization how - you the allocation,

Lisa Knutson

previous the place David, authorization, prudent authorization What a times. announced in expiring believe because at have an all to was just new Lisa. authorization it's it's we was we and

impetus Based would our the we priority. XXXX times our for leverage current by expect end be and to really the that. around was on that that's So to view, of mid-X the

delever in get the if expected, So we and over course delevering we're hotter and in we a the focused area but as comes place months than to an back market, of delevering six we've at months, have authorization in as some may the on of and political ours. is time focus nine last said,

Operator

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

Carolyn Micheli

day. appreciate good today. you. Thank a us Have joining everyone We

Operator

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

disconnect. now may You

The E.W. Scripps Company (SSP) 28 Feb 202019 Q4 Earnings call transcript