SSP - Earnings call transcript Q2 2020 | 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 2020 Earnings Conference Call. [Operator Instructions] As a reminder, today’s call is being recorded. I will turn the call now over to Ms. Carolyn Micheli, Senior Vice President, Corporate Communications and Investor Relations. Please go ahead.

Carolyn Micheli

John. Thanks, and us everyone of a for E.W. The thanks morning, for joining discussion Good results. financial Company’s Scripps

rapidly You for reminder filings. our visit we and cause replay do call conditions. XXXX can them scripps.com pandemic COVID-XX webcast actual enhances of to a and are Factors this this economic the The results Because about financial forward-looking operations and guidance. to link to of are statements may the call. we today. any our that forward-looking make forward-looking differ SEC A quarter include of that differ. conference we not more our statements not information changing climate, may third make statements and update uncertainty in issuing intend We outlined

and on this Symson; Lyons. Treasurer, is Lawlor; and Doug We morning Adam Knutson; Media President, President Vice the Also Executive Scripps’ from Laura President, CEO, Local hear Tomlin. call National Brian Lisa CFO, and will Controller Media

is Here Adam.

Adam Symson

Good thanks for us. morning, everybody and joining

hit the strategy value portfolio. a for our business. the for size launching Triton has Today, performing performance year been initiatives transformation to stations articulated of acquiring measurement TV, have cost-cutting, operating a our short-term while than focus and with Over an build term is shareholders. improving later last station years, this this the efficient over or for those a the continuing pandemic company was effective, has course, enterprise-wide We largest financial Katz double longer acquiring local create we before a last exiting X our performance All durable, ago. infrastructure in more higher restructuring to more it year, more Scripps the while, operating our greater television audio to X XX of straight Over local as and improving television strength of group leader, radio, few the quite Court high-quality by executed our broadcaster, our met fourth spring. exceeded strategy, a years, more and the important local networks guidance quarters and of local media digital and on pursuit including initiating buying than XX the

sale durability, well XXXX we with just businesses. crisis. from businesses that value streams investments, in durability has coming contrast continued recently, doing. unlock midst and a an over is our our a our are TV quarter’s our our earnings disruption the sudden than television. been seen, to alongside podcast future developing the call, media most exactly a We of The of sale to last to our return testament of media and look During stronger through done of taken our national told broadcast podcasting. on horizon ability in leader company this has where the of out several local affirmation chaos the and capture would in profound high we’ll the opportunity revenue to you of economic has Simultaneously, employees business seek and continue behalf total we’ve announced local positioned also growth that and we’ve came that’s we double create ever what Stitcher the of different In into This in believe Stitcher we transformation peers, our return of recognize our Scripps national more company Most diversified We into know approach. strength to pure-play as country rates landscape, dual-pronged our we us investment. strategy and to the the strategy navigate of on greater shareholders, to station paths. the

advertising the illustrate quarter at rates second peer the households XX% Our results, pay-TV the on held of Katz, our Media well challenging particular, performance consider that disruption, through our like our overall that affirmation renewed to I’d and of National performance time. of And core own investment an standout with marketplace. in successfully thesis. point. we Media for we its business Local turned We highlight during the outpaced in this depth results

viewing and fact, continued consumers X as video-on-demand, a In it full their years. value years saw platform-neutral investors of side-by-side expectations together viewing. were would They were TV TV with rely our being has the combining In we pulling linear Katz quickly experience. over-the-air television. of we to their study those At own and over-the-top outperformed and moving last bought XX network time, the over-the-air has cable, programming within that since over-the-top create ago. projected Nielsen over-the-air X Since high-quality, to many that U.S. consumers million to certainly households next recognized subscription nearly grow content-focused that year, viewing on to come then, custom bundles a in and free,

of customers. to was finished the in beyond QX wrongly it to DR crafting billion complements targeting. the measurable advertisers, and content one haven’t been And its Many & years. to estimated continue in billion Katz Despite at Johnson, has put their and State low direct during rate, Direct pandemic, report by people now as Katz the Procter brand’s Big outperform Katz action. the name Remember, Katz’ a low-quality than DR been viewing, direct Even watching, and has flexible, the a in through but associated way driven of pioneer dismiss portion Response the before We ad tremendous financial marketplace. future including strategies quarter recent last you $XX headwinds for COVID-XX. Farm advertisers their goes and market tremendously to that opportunity a is of well audience more their balance Gamble, with confidence. changed dollars ads, is advertising XX% value-creation the good up grown X-XXX now to industry revenue flat. case aside calls supports last Hut in dot-com spending and the for over-the-air & And DR. growth in largely and strength reach Johnson $XX efficient believe Pizza general category has year. broader response QX continued advertising. response COVID-XX, and That

So same Scripps, the can that levers at the things to of high-quality X in saying and Katz’ been are over-the-air audience growth growth At have fond true two advertising be the time. resilience marketplace. programming, national we

evolving is opportunities big capitalize as and consumers’ broadcast value we landscape, create And habits We in streams. the way on are media believers our Katz, diversified Scripps’ of TV changing the advantage National success of by fully investors. I view also at in Media television. ahead not take underscores the for we’ll example, strategy Today, local appreciated revenue the in believe

positioned through clear come become business has that will Scripps businesses. and succeed even thrive it well we As our and economic disruptions fallout the believe of to across more the to I from however, itself pandemic, all

Now is Lisa. here

Lisa Knutson

Good morning, everyone.

May, exercise sale industry unfolded we even than Media leader, early announced our our Stitcher, the National quarter division option on in we Since of earnings Local as second expected in better and expected York. last our call also The generally podcast our in the we’ve New Media WPIX and in businesses.

I remarks this satellite blackout a in in each currently retrans Dish. are we morning. addition, provider television my with discuss will of In events these

All adjusted are quarter period start comparisons of second the as with year Local an ago. of on financial though basis, treatment and continuing a results. the Media Let’s former in division Cordillera results we full own combined Nexstar-Tribune them stations, our our the

pandemic-related today’s Mets advertising in is release. down as-reported results press exclude that advertising the impact our You if of That can and slowdown. WPIX and station. find on number was revenue Media by core Yankees baseball driven XX%, of the you Local loss the XX%,

had see and May June. improvement to we to we As expected, May from April from

expect quarter. in advertising ad We now, expect year-over-year month-to-month Political continue factor PIX. down core impact through revenue million out right when third quarter, higher-than-expected a the quarter this of was to advertising $XX mid-teens came second see that end the on improve core in And you of the the basis to in year. we the key and revenue a in outlook. give political moment $XXX color will race Because our million on of and of presidential this of in now other pacings Brian ad bring north the advertising driven strong we context. more to political by number competitive revenue races, spending robust in

expectations to unwillingness still up was due to fair of and year the below retransmission to terms, revenue contract Dish ago. a agree XX% Our but reasonable from

old until our expired XX, provide at Our dark extensions we XX. on the we on July rates service Dish contract under continue and to February went

XX%. when you in expenses expense. of profit the final savings agreement X imposed year. that travel XXXX, have Segment new the new We we retroactively rate they and and Dish renewing $XX.X took now are XX% exclude expect a merit second had a cost decreased did for to capital Dish July of We included marketing. pay did programming initiatives Local the freezes, various The – than with extension sign Media X%, completed more that XX% period. the in reductions expenditure division and came accounts and quarter retrans larger below distributor slightly receive was million. effect this XX% for

Media division headwinds Stitcher second well division the the National no pandemic results. revenue is any Media results up division let’s Now period. held Stitcher the include discuss operations, National as Since discontinued quarter. longer for against reported in

an after direct decline response from of advertising, OTT the million, initial XXXX. of from pandemic. flat essentially early benefited particularly, second businesses, $XX the in delivered national quarter of The recovered quickly and days which total revenue division Our the

XXXX division Looking Media National $XX National ahead, with million expenses profit came National fourth year. to we in Media million, the growth million quarters. from third modest $XX last expect was $XX.X in compared the flat about revenue And in media segment and quarter. at

Our second expectations. about corporate quarter, services our down in million from and shared were the XX% pre-COVID $XX expenses

this In We expense for make $XX you plan and cash measures line told expect million proactive May, in to consistent remain about third we quarter. year. that control management the we to

year, made With increases, savings the $X.XX dividend has hiring on marketing. payments been million the realized Stitcher, in end. million merit those lower pay to reductions expenditures, and in includes executive $XX quarter. freeze, per come $XX from million travel by will expense XQ sale year was company-wide capital continuing a second pay savings and $XX reductions of operations about this about million $X company’s in a now expect total This about freeze general The another share. year-to-date cuts, We loss of including and we

were would discuss which XX. WPIX like Stitcher on July and briefly the I Now, sales, to announced

years. X into more leader, find its Stitcher, includes review year, details from Scripps earn-outs that with for last in press price day. After can sell began agreement You industry on transcript $XX entered podcast releases call that That the in $XXX and over SiriusXM investor million transactions an a those strategic to million.

Our represents price full Stitcher’s revenue. of X.Xx a sale multiple XXXX

Our millions were Stitcher’s than for periods it the company the history see transaction and a division years largest in and both going of annual deal return entered podcast previous of in EBITDA profit forward. investments in high podcasting losses teens since industry’s represents segment Media Scripps ago. adjusted more so improvement in and National the dollars, you should double reporting X

filing group Mission to Nexstar Media affiliate told to are Broadcasting. option in New purchase We time, this the that for and the it to the that the were Stitcher close we week sale exercising CW Mission same expect the quarter. City to transferred purchase mid-July clearance informed its in WPIX, option was Scripps had At Hart-Scott-Rodino York station. third

due we Cares of that in the in $XX PIX claims the the to pay receive expected about interest. refund million, plus the for XXXX mentioned be on to would each The Pending available majority in is the cash tax $XX bill about year $X expect into our when we sale third that Separately, is balance sales, a price closes. to regulatory is end. quarter, consideration fourth in result Taking approval, with depending million ‘XX, $XX by deal cash expected we Act. expected quarter. of the the million is on gain QX the in these pre-agreed carry-back close million, be WPIX which of May to Our of

to about million. year, in this LIBOR our all items million this full paid is So about our cash on, plan year. interest savings current a pay on taxes off update year we for expect are outflow to liquidity $XX our decline reflects $XX of you and now see And The cash revolver. the to net a the forecast assuming gains few

expenditures June capital are in $XX at year XX, On come about billion and Our net full estimated million. our was debt cash to $X.X million. $XX totaled

in calculation per Our quarter end net the agreement. leverage at the the second our was of credit X.Xx

second the is every now in were here XXXX. Brian. and cash Finally, cash of free we for free quarter flow-positive expect flow-positive to And be quarter

Brian Lawlor

Local pandemic a And on our everybody. in advertising despite the morning, report year-over-year. the toll to Lisa. XX% expected, our second impact as that’s of in line we’re loss Thank quarter, you, results ABC core stations. down Good on the and happy many took the but Well, COVID-XX of with about peers, NBA finals without Media WPIX

largest improved quarter. second month-to-month categories Our in the

Our was in further continue recovery Home June, largest as category to was in and see services, flat we July. Improvement

ridesharing expect We up. category throughout performance Dealers cars, an been are of demand starting and account pandemic. initiated migrate the for as stations. new important used high reasons. strong aggressive reopen a new the car away in focused new and combated on inventory from engaged way auto executives sales seeing to business people improvement the manufacturing of and we contest in plants rest mid-March, already picks slowdown to transportation year, to are and all public across keep business the approach has advertising One In we our during have our health development the as local

Our $XX than in million $XX sellers leadership. and executives new In based important positive positive fundraising our deals million grow we advertising on business the hundreds for out hold continue component Political quarter the continue an new pandemic account And to closed figures local thousands ability best with the calls our and our events, quarter, the in the advertising resulting booked of made in second are in sales strong we year. to for this very advertisers TV businesses, ways, and to exceeding more as new also some full TV to was and spending These new in running have expectations. second brought limited a revenue a in-person story business. year. of outlook

political revenue whole our topped quarter. fact, second July already In our has

their Presidential in well Scripps in In our the today states pre-buys levels of on they amping elections XXXX. some Biden those beyond now, are footprint. focused different Here’s color has fundraising we seem Trump and on most advertising campaigns, the key significant laid seeing Right up and Trump fall. the are the race, already Senate, has both candidates against for running Both Michigan, Steve to Montana, Steve one Ohio Scripps well Nevada, are Colorado, Wisconsin. hotly X what term-limited Florida, Arizona, Kansas, Senate of Montana. the governor, in In markets in the races: U.S. closest stations Senate be and contested positioned and Arizona, In in the Daines race its Iowa, senator the in will Bullock, Michigan junior races country. in

sparked considered so markets U.S. addition, of campaigns Senate races, cycle. In pre-book more Texas as show just and has fundraising a at are Scripps President the packs House buys both We and risk. from we incumbents In in our spending are list competitive seats expected. in now stable. parties should the think bit the with battle shorter, cartels getting a spending in early and majority Trump’s Kentucky, for political Iowa unprecedented And that remain XX

We Montana, X markets, each amount we political capturing in the largest large also have in have state. in in the of an open spent that being Montana’s a where Scripps toss-up top-ranked station resulting dollars governor’s of race

a unfolding. of very expect our political is in spending, election revenue continues exceed we the good from percentage advertising experts fundraising to Finally, come a year issue forecast. to where all, All presidential high

rates dark our a to the old after Lisa the of very Turning blackout our with were with pay-TV as negotiating we extensions. booking July still on third months mentioned, to quarter, were retransmission X our have line, first second we revenue quarter. We with experienced beginning Then went in disappointed provider. in Dish XX, Dish

and in in providers of about recent done industry which strength a like period, in DR. the veteran year-to-date. driven building business itself on an me. X the XX. growth Dish just contract XX% of our blackout us. as reporting driven would other quarter. and successful ended and, of several December on direct flat conclude been to declined by to would while reports however, completed step prior has can’t by proposals new this strong networks, in know, And ongoing base the confident Katz many battles, delivered Because X they household market primarily prides March were the has have Network already They value down by I ending comments over saw the are appropriate year. is about retrans Scripps both X.X% from impressive TV revenue general including XX, that growth especially That’s nonstandard we negotiations, and a That this Court most when subscriber to market the the period we disadvantage Scripps deals and getting reporting terms, large revenue agree growth fact, advertising QX, Grit you As deals, rates. strong those response and Adam’s

continued Mystery, with coverage also TV the country carried with on viewing Supreme as live viewing and at In and Distribution same community. just to audience hearings discover now Laff, due the TV movie Court free Court. in from to live TV have U.S. million May, programming over-the-air on Idaho. at time each and also examining networks. reaching on has special and increases begun week, the We the team this the X networks grow of the benefit to scale channel opportunity oral Trial, across unrest and strong to QX, and YouTube expand arguments in preliminary the Bounce, XX available Grit viewed TV, all up to strength it’s that broadcast Courts original by consumers special, and justice And quality Bounce the XX%. Black see more and the XX% protest first the carrying grown high-profile an from both its in U.S. reopen ongoing Katz’ network new of Court across TV got over-the-air and to June Katz there. social historic X% Doomsday Court well. with At as we Viewership continues Blue, saw of at continued is nearly people. audience the growing the continue the own The TV in Court early Katz an was more to the relationship reaching system’s to of the heightened, create was pandemic-related XX% and as large Grit amount debuts programming, viewing. now last year SiriusXM. black continue over

is Now Laura. here

Laura Tomlin

Good will Big given Brian. streaming the were We Newsy’s Newsy very spending. of brand seems shift Over-the-top demographic, saw ad continue our businesses viewing capitalize information Newsy Thanks, since around took year as the toll national and urgency record relevance, the messaging recast X orders higher U.S. unrest. this XX% viewership and of to stay-at-home quarter Ending by to quarter, Newsy, and in businesses, their across division’s Newsy quarter everyone. headwinds, during and coronavirus second during new justice across At later back messaging We has Americans Katz stayed quarter. early was and currency. viewers its with helped on other create flat social morning, to the pleased viewership us second the the on country. as pandemic younger messages during consumers by to year year. to networks the advertising unrest this brands the levels, we driven the resilience marketplace and source. saw in half the sought better remarkable the the and on March. as and prior social consumer Katz with the on Higher products, companies revenue the nearly the the the quarter bit economy than their a Overall, fared quickly we other ago build markets

domestic a The conversational and relatable launched its Journalism project, and the OTT. RFK Newsy the at more television style Broken women night top for abuse. have its has national recognition Prize Scripps first which centuries is newscast give also headlines in Trust. awarded day’s examined legal American to The new and documentary, loop received loopholes a of the week Newsy that audience. how joint and show vulnerable A Grand the exclusively to to Bureau the noteworthy biggest left designed look Washington was on to inequities prize Also, their native digitally savvy is straightforward for

scale to a in sales impact Our year-over-year the reasons podcasting audio with global both are if positive U.S. revenue product, NBC allowing outlook XX% see This in recently good investment. much And podcasting opportunity Triton informed Triton, series and actually many trustworthy ended of a as of and were the of digital robust more in large of of up make began In noncore Stitcher report, a is expanded business the had podcast to out us QX Triton’s third-party big performance company We second on we best quarter, ranker the for and Triton international new new measurement and capitalize terrestrial SaaS digital companies. early News and industry data, the scale. XXXX. decisions audio podcast entrants system advertisers needed, provides around one QX. the in to you announced business, as the reach of of that piece watching advertising, also space. helped factor them growth, larger to measurement pipeline to that QX, very NPR, pick deals speaking A new the podcasting, a our the company companies. with is selling and its with delivered sale radio we its grows publishers

us to we investors fostering ready the these on businesses businesses, focused As you ROI. questions. constantly growth to operator, can the we with for creation. value are of our Regardless now said, on And be achieve various Adam are paths as can in the path, disciplined Stitcher, for we evaluating count take were greatest we has

Operator

with [Operator line Kyle Evans Stephens, Instructions] the And of first please go to ahead.

Kyle Evans

outlook what’s mind have Brian, of year? for then the count X.X% – Hi. questions. some And I Thanks for call XQ, my sub your I follow-up you the the taking in decline would on questions. rest it

Brian Lawlor

Hey, Brian. it’s Kyle,

see improved starts, fourth like their associated seems typically look out we you, seen, canceling the we now, As are It counts with this we counts sub have just people that Like in more quarter. indicate those the seasonality MVPDs. have quarter a when sub week, the of again, next some And that of that ahead than including this positive maybe positive what we MVPDs work us, maybe saw. morning, would quarter. reporting they football

the bit of So line look how and – half. had we of was little we as we for kind with we improvement a X.X% in do modeled, have move to the back

Kyle Evans

looking Great. that. Those on Montana in Congrats Cordillera acquisition. stations are really good like a

Brian Lawlor

Thank you.

Kyle Evans

that key other that number to Any at swing you you races annual point are that would could guys Street? that the floating

Brian Lawlor

are I heavy it’s we mean, can one race. you races. as think I X competitive see, Senate No. really and don’t very

talked huge. be about Montana just to Montana. is going You

House between falling there. place think That Gubernatorial the will there, cards very Presidential, biggest. we are strong All at the there. as a Senate the will Senate of race strong Michigan, couple our in be between of one be look and you races of race But I

We again, Colorado Presidential, well. a expect competitive Gardner – Arizona, the in race McSally as race Senate there. – competitive It’s very Senate

I last couple think have of out that a kind if it’s way. drop in So of our were we moved I few don’t race. one And extras have to one weeks, enough the think

that call, in the X were that’s on X. remember we of contested highly Senate, we talking moved the last were you the races, to in If now

things aggressive. are see has McConnell more in Cincinnati and you then that and getting Lexington Kentucky, become like we both – which So and

one there’s race risk. that particular think don’t us I actually, So puts at

a coverage the have I country. think lot across we entire of

Kyle Evans

speaking, as political of understanding you that Sticking XXXX and Presidential was an anomaly, a what percent total? do with account think roughly for that will

Brian Lawlor

all that’s XX%, XX% and when little bit which all and QX, our money more influence a done, and a north of than think there. Presidential to when XX% consider over off than XX%, It’s good maybe to are it’ll probably of so XXXX more was usually But it’s In XXXX, we the in political about it year. going you just was I spend. total start it, pack said be

Kyle Evans

now FCC. then regards And kind disputes? with Did no miss impression the that a there your of under blackouts Great. the Dish right to something I was no I were per

Brian Lawlor

parties asked heat the try in FCC X think Again, we are and had the the deal. beyond I all to pandemic, avoid months of blackouts. the

back extension. We it step a our approach business And thing and trying way. make seemed do like the have right lot was couldn’t done it of just extension different to a after and we to progress so for to

Kyle Evans

I understand.

Adam Symson

I just we that Hey, remind an additional were Kyle, able already, good the we during it’s to including depth Adam. two the that this cooperatively about felt in call year the would which also rates we done very the very, deals pandemic, of get one achieved.

think I So the this for just, course par unique of, given sort history. it’s probably is a circumstance. unfortunately, Dish, And with their

Kyle Evans

you then saw unit the and April in we there, maybe kind channels One that, of just related clear pattern. on kind update Newsy, And back? Yes, for how as bounced Laura, CPM or getting on troughed it’s what one an last engagement? which pricing you are your rate of Thanks. to consumer best

Laura Tomlin

Yes. Yes.

I and has to been article, the revenue most continued like be really, OTT. our of in pandemic, viewing, XX%. I yesterday think, was viewing So reading by during an CTV up driven

been It in growing month-over-month continue OTT. see QX. tremendously picking has improve we dip just Rates, sequentially on demand The our but month. did So have back viewers in we has April, each to up take been it been strong. a

the growth hope optimistic that about and to we QX. in are levels QX pretty we So see

Kyle Evans

mind within... Would down and maybe about you engagement channels talking into diving OTT

Laura Tomlin

Sure. Thanks.

a OTT almost portion is well, to viewers there. out today mean, we as lot so a Obviously, present significant making us I entrance there. viewing big of we – A every come on Amazon growing today are of our So platform are our from Roku.

on viewers lot Pluto a have of as We TV well.

there. say out from sure but are Roku, majority would great we job come platform distributed every So viewers on have CTV that of done I a we of the making those

Kyle Evans

Appreciate Great. it. Thank you.

Operator

Michael next Our with the question Kupinski line from Noble go Please of ahead. Capital Markets. is

Michael Kupinski

possible? you. I by month questions. declines in and advertising sequential, Thanks give the the you in Thank July for for taking the quarter guess, if can what I you core was wondering us saw

Brian Lawlor

In from we back Mike, were And June, big Mets May, it’s Yankees, down revenue down down out down April, and were XX%. Brian. when XX%. we a the July, XX%. baseball line, XX%. were it’s we In so for again, we you were PIX,

Michael Kupinski

them that Got you – maybe for first the with relatively MVPDs, for leverage these are of it. might kind to I dark what past, way And in then that of resolved? broadcasters regarding to be tend that asking a I them to quickly guess, thoughts they a on and get secondly, would how events – that I went while? [indiscernible] table. mean with resolution weak do schedule – And guess, the and I the to guess had this sports I negotiation think with bring upcoming usually you for all are able terms negotiations of sports in see am a your out back dragged

Brian Lawlor

hope continuing on certainly this We we and long, are right? doesn’t is Yes. I Championship. actively discussion now, to PGA that the these Look, sports exchange with out them. drag we got mean, weekend,

the got have NHL You playoffs.

playoffs. right NBA now. the got all You happening That’s

pretty the going now important lives think hope I is so And an part of darn to we that. our of continue the news with everything will this way, on. the right is sports and important by And viewers, understand

expecting a and time fact that audiences. we are all of in by college that a don’t there our the that little month, happens, we NFL start back And so not the our are certainly a are are we and serving are bit we for And viewers, but love football we hopeful we month. over to

Michael Kupinski

obviously, a acquisition skeptics were has with there that for acquisition. And lot proven know the a of to as this be you well. I good Katz

the launched QX, Court course, TV of I in third – performance year. was, in quarter indicated of and believe, the last that of TV and terms In Court you

If you can...

Brian Lawlor

was it in launched May. Yes,

Michael Kupinski

Got it.

Okay.

would other with did How it of strong. TV. expect lumped some that some And networks they be performed you just younger in that your and growth other pretty the more said Court so terms networks of kind – pretty relative kind would ones? on or I mature curious was the of your versus networks you of had Grit you how basis? outside of terms a together of Were in the performance their of the that much

Brian Lawlor

Yes.

said off the the year bit a part. on networks, the call, they ago, be pandemic considering and a about were outstanding we that well, for on with just that. a about Katz Grit performed I also performance the an quarter. thought terrific flat was will for As Mystery over Bounce very was their But they XX% little had where quarter, Laff

Michael Kupinski

Got it. I That’s Well, congratulations all on Thank that. you. have.

Operator

with Our Benchmark next Kurnos Company. go the ahead. line Dan The question of is from Please

Dan Kurnos

morning. Good Thanks.

or Just housekeeping guess, Lisa. Dish, on Brian I

I ran or prior what rate. X deal will a get you is on at you X the done, months, done? XQ months the you prior your the were that gets So when get When for extension true-up guess, – you deal

Brian Lawlor

That’s correct, Dan.

whatever get So but extension. final for X we we were the that is won’t get for we deal dark, that we to a our on were true-up paid will days months the

Dan Kurnos

no It of rhyme, And They how talked might it. revenue seems kind dollars. brought is extension also, especially know ahead And and sports political about mentioned Got think expectations just with Hearst. to and or are of reason we I if on Gray. up, terms you Brian, still a – for it college meaningful kind resolves second not? of what it season, last just have just They dark the remind kind the call, in NFL have back-to-school I – we that itself. strange. this any deal no is guess there impact of It’s I Cox. kind of but do you us will of but are on see just in ad there, ago, around impact the They with

Brian Lawlor

at this, range somewhere Yes. I yesterday. looking revenue. in ad about the X% Football of is of Dan, our just was

but So risk, overly of not significant. is it��s bit little there a

is another. back-to-school, open. state back-to-school of going most And kids terms have in or capacity one states every In

So we the not have on seen any yet impact business. back-to-school

Dan Kurnos

are it. seeing And political guidance, quarter? a of balance with in but just on Got And where how upcoming just us they of color crowd you are kind you performing? helpful. factor on not pacings expectations obviously, play might and given your, That’s July curious out if of, categories, could what are pacings give how then are the then sort

Brian Lawlor

I than mentioned was decline down significantly XX% the think June. July I XX%, that in better

August growth. than terms we sequentially seeing in better. pure improvement and month now will every on that based September and better get We believe, July of than to will better dollar So August be be are continues year-to-year do everything just

basically, of terms of off April. every category for off improved which categories of June, improved off July, May, In of improved which

still get June, And they – but in being continue to in flat other saw of continue so to to that I talked July July into flat about about improvement. every year-to-year, degree services closer and we some down saw Most services. improvement in up. are And category

Dan Kurnos

could like, in and marketing/messaging just an can one Super also just I Laura, reaching content. feels way sort kind even within in, of been – even sneak around issue it Brian, maybe around others with guys Katz DR, know, targeted messaging. maybe I can and – facing of in with there’s kind it. of shape And here, helpful. marketplace just don’t the Got you if And that are around I’m but of you challenges almost kind Newsy, really a more

those you’re influx figured of not, a don’t I into would just a some but if So ask? some stretch, of know I bit seeing could channels or actually be

Adam Symson

Actually, hey Yes. Adam. it’s Dan,

their market placement, place and I and think even on to with to think and nature, shape way demographic think of I demographics and us even DR gives that with benefit opportunity different And our Obviously, brands business gives our and messages DR younger well inherently got us access as Laff I Bounce, very agencies with does certainly the the at their business. with And Newsy general networks Grit. focus niches. we’ve agencies audiences that and differently. as different example, for brands

Dan Kurnos

really Got helpful. it. That’s

what you the the in Lisa, baseball QX? Sorry, do WPIX impact what’s know is

Lisa Knutson

about it’s million. Dan, Hey $XX

Brian Lawlor

million The out. was can have Lisa, to that. Sorry, was on back QX. QX $XX I get don’t you broken QX. We that

Lisa Knutson

Yes.

Sorry that. about

Dan Kurnos

worries. no Okay,

it offline the it. appreciate take all will anyway responses We but color that’s guys. thanks helpful I for

Operator

is of Our with Please Cahall go line Fargo. Steven question ahead. from next Wells the

Steven Cahall

trending expect about reverse has what morning, expense growth compensation kind talk of this Thanks. you this been year? maybe retrans and Maybe could first what you net from big for four

Lisa Knutson

it’s blackout. the Steven, the Dish in midst Obviously, Lisa. we’re of

until we retrans. commenting resolve net on So guidance not really are – or on really we that, giving

Steven Cahall

dropped another amount. million, like sequentially $XXX debt was down Okay. balance the by it by Maybe the maybe but think about then, one, Lisa, looks a cash also similar I

some if debt had So of cash And just divestiture out? net that realize I right, the quantify tax wondering you’ll could you you from that took that the divestitures? two

Lisa Knutson

Yes.

pay-down you the revolver, are So that. of terms saw you in of correct the so

$X tax That terms the tax not PIX, the about $XX that. whether from plus mentioned include the I get million will make about expect we doesn’t have In or that that. on you on of on we so earn-out. net million, of $XXX to Stitcher know, on then proceeds about which cash And we have million million million in as sale, $X of $XX proceeds, interest,

Steven Cahall

maybe Great. And Media. National to just switching gears then

like at continue percentage it back looks to the the expand might of with Media? margin guidance with Should the it of have pushed margins National So so couple that removal for to to up we maybe year. and Stitcher of growth from like in that QX points QX a modest half the expect

Lisa Knutson

go oh, Laura. ahead, it’s Yes,

Laura Tomlin

over line. the improvement at continue margin certainly Yes. I half see say from improvement the we’ll more year-to-date the expect the year-over-year year, would And a probably was perspective, say, on margin just back to modest of to standpoint. from revenue I looking there we going increase growth

Steven Cahall

like of and you have the – I all the visibility feel it political you it to is guide, of then or because Or on that like exceed know the just really that great one okay, last political, very so your And do bullish you’re on kind sales? on really revenue meet August by you XX? September that going November guidance? of for upgrade to will Is then And just are great. reason. an peers it seems When think

Brian Lawlor

the our do in dollars, you, many of coming mean, some the a my past, contested the dollars really There’s seen millions books. to and is we prebook prepared in feel laid about already I been remarks, I than the the We I out got has and have mentioned week on next seeing in tell got to good fall In now. Biden in we’re same. of putting this it press higher President we’re guidance a week much reports We’ve as states, think the ever of Steven, dollars. that there’s prebook lot that’s percentage I about already races Trump potentially. millions already of for

are we the We on have estimated. way our number well to

be to for we’re achieve. that to think change put going feel I able something guidance So to like we is have us that to dramatically going out, to not

Steven Cahall

thank great you. that’s Okay, color

Operator

Wolfe Our go from with Please of John next Janedis question is Research. the line ahead.

John Janedis

the second. to in think format look Thank is morning. room about you at the case talk five, good you demand but DR I follow-up then stick that to with as the to Maybe where a Hi, theme do negative? good, reach there and broadly traditional more you’re other think the more at to enough longer-term curious their auto growth maybe it I networks up? you. as format wanted mentioned expand as And the maybe on a tick you can DR quickly aftermarket seeing the And is business? side? on for then the the I’ll the category ask, And pent-up the relative portfolio? you ad there in How dynamics? is is Or understanding current linear here it more stays actually could what about

Adam Symson

will I to Adam. the always first on it’s on for questions will to John, take and we DR, Hey, opportunities commentary the Look, and us on Brian it pass assessed I Katz business. some then expand auto.

are very, think performance I right of with very Katz the we happy now.

another we in look for there’s to as expand, for additional opportunity road further so over-the-air to to distribution And broadcasting. bit that up open see little couldn’t options a nothing down beachhead open say additional that the we

use down respect to today, that’s we an And market during the this and the actually think have, cases, some currency, see used seen of period, the establish grow And DR to With ratings to lowest I rate. to we’ve in that help hybrid rates DR, rate. involves be frankly, advertising. which DR DR as general low always continuing opportunity. displaced DR DR, and hybrid

DR a spot, focus it’s to So the networks don’t We market Newsy maximizing in that highest or you The we has yield. the about Brian, and whether than really better, create we we to care to – rate really I DR that DR has strength spot strength want that spot. ability have manage maximize a think possible yield auto? I want overall that Katz our cushion general yield. on for think, talk nice otherwise. And that to having in us given helped

Brian Lawlor

Yes.

can. when expand at the – Let the second, a inventory response. really seeing that book just a week, I rates. me And in they’re higher to increases clients DR a they unit the that general are Based willing result as one more if we’re pandemic, response, viewing get good for on good meet on of the really getting

or keep a in said, rates Adam a seeing DR in rival market actually And as are many cases, DR we mind rating. Nielsen rates. we post to to surpass have so general that on And that rate, don’t

automotive. And so a response, really post. the Shifting a the there’s direct as in we for actually and we’re to success fact result us just have business over having to don’t rich of that

just of year is because the continue challenged lack automotive to to think going I inventory. be this of

demand very think is high. I

will waiting I up. as a gobbling think the production those of think the I there’s people through facilities, be get back vehicles, get distributed who country, list out finally, of

that category people to there’ll be lot is to get to lot of know there’s I’m not enough let And their they sure of hitting when dealers therefore, are going think do I I lots. think momentum. people the advertising push inventory But be trying as can positive. trying a inventory to if So the a – are

especially be auto. year new Now the year, of foundation move begins the to we remaining the the coming end Bronco you not for others branding out as may that actually sure if see that and that to with year, some I’m just rebound we lay the next may will a quarters, either as positive see we year. next two the and next expecting on displacement to strong get brands year, and very of Ford

John Janedis

one also DR, Brian, there are on Meaning, DR ago? X players those months maybe broadening are quickly XX number you what than, say, it. you seeing just or to more Got the had of advertisers? a said, today backfill in

Brian Lawlor

big earlier pretty local and a would its to durability XX the be it’s in base to to the shocked than it represents which been we speaks I I comments, see list DR. clients you or in far know about his advertiser months more but really broad mentioned think markets. don’t X has X stable Adam during saw pandemic, a X long ago, but what

John Janedis

much. Thank you very

Operator

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

Craig Huber

year could. of I sports football, NFL few there, Thank is college your revenue. and you of the please? in questions, Brian, you typical total as A X% We’ll mentioned if What your ad ad start being revenue?

Brian Lawlor

It’s Craig. about XX%,

Craig Huber

news is now? right What

Brian Lawlor

last XX% increased on with to and with inventory. is the news we to has the that in demand the range, Well, but to it has XX% the lack of close of actually couple to do in XX% seen months. typically therefore, news of have the that audience, to of but do Part moved sports, part

Craig Huber

minutes much ago, strong I’m once however like talked on of your audience few curious, are this sort we about also you then through And extra of that to? a hopefully which could Can And ratings you thoughts hold Brian. for you’d just you virus, about to? what the get how quantify or

Brian Lawlor

X now and the or much an really interesting narrative so been interest in It X with months began now. down a of There bit. think protests the to on. the high XX% And up. settle little is XX% then from of happening. that’s political saw viewing level going we increased another really saw, anywhere as a Yes. it’s a of We to There’s interest. COVID-XX result Look, of surge level all I that audiences drove

that, X:XX continue early and are changing bit to as has people a viewership. real as later But up early. up staying bit. evening in X:XX a they late to little to been not rebound morning The especially spike a result also X:XX work. a are lifestyles result a a be has because The less the a in X:XX The So of little as a news, getting down. to to news little continues of see with commuting people we disrupted

a bump seen have we so news. And in the late

to it consistent. through growth that a would to remained with It’s the of across appear percentage the this double-digit the is going lifestyle of kind country of this So on and country, much continue rest operate year. basis has

to take going continue advantage we’re so And to that. of

Craig Huber

if select parse government And hard to cases states states in in is that a just your the you Or some up further. ad bit Brian, changes Have of it in a you’re you have virus gotten picked the In trends? control want that seen significant where apart too in will. revenue to things mind? of some the comments, little in from expand standpoint, your have advertising significantly, the tighter I any

Brian Lawlor

I other states, really – we Florida, mean, spikes. haven’t to Texas, seen change. clearly, places The much continue see

stores different. meaningful seeing precautions in a many even each states dealers in others. seeing seeing are open. in not and Car not everywhere. But distancing is ad Business a the change open than business. Texas how places, or Florida is Clearly, the are more Malls are that them states those we’re and of social material are are with of other versus Furniture open. their meaningfully for operates We’re open. lower change open numbers we

Craig Huber

I Brian, you to could. And I if cost a question, ask wanted

that, category looked Especially please? What Your in roughly about quarter, like drove was number? million. down XX% that the $XX year-over-year other expenses quarter, the lower XX%, in it

Brian Lawlor

could. shut possibly we Yes, down everything we

our have typically facilities, repairs, there, towers, So you supplies. in

less lot buildings. in people a our have We

repairing we’re less so And things.

been travel of of the our across a for did think last entertainment. need this We and all for employees you division. has couple months. halted We freeze of then the pay less has And year. supplies. ceased Entertainment have basically of increases for Travel

once to employee to them, we we we we in were possibly down and made But period, going commitment a through have, going line. expense also an this be this our that could. to of responsible and impact proud we started, incredibly we that we So and by were But every cost that. had stand are fiscally I employees think our locked

Craig Huber

that. Appreciate Okay.

that about in, represents I’m talked or now? you very what Let think you your about why have if of ask asking. past. Brian, entire right could the viewership So big-picture we U.S. I’m markets, do the about Over-the-air, question, I this a me household squeeze that’s this optimistic that, in you-want-to-just talk in percent

Adam Symson

considered it’s homes. Craig, mean tell in I around the were I of the to can I from or if at some for markets, survey right Yes. that be Nielsen, I think, the average be our look – XX% now, the markets as nationwide. our latest as XX% XX%, Nielsen can was It showed, Adam, over-the-air you can can survey high I latest

Craig Huber

you That’s very great, thank much guys.

Operator

back in will you. questions I Thank are There turn it the to queue. for further any no company comments. closing

Carolyn Micheli

John. everyone you, Thank us Have good to joining Thanks for day. a today.

Operator

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

may now You disconnect.

The E.W. Scripps Company (SSP) 8 Aug 202020 Q2 Earnings call transcript