Ohio | 0-16914 | 31-1223339 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) |
312 Walnut Street Cincinnati, Ohio | 45202 | |||
(Address of principal executive offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item No. | Page | |
2.02 | Results of Operations and Financial Condition | 3 |
9.01 | Financial Statements and Exhibits | 3 |
Exhibit Number | Description of Item | |
99.1 | Press release dated May 5, 2017 |
THE E.W. SCRIPPS COMPANY | ||
BY: | /s/ Douglas F. Lyons | |
Douglas F. Lyons | ||
Vice President, Controller and Treasurer | ||
(Principal Accounting Officer) |
For immediate release | ||
May 5, 2017 |
• | The company has closed an offering of $400 million of new senior unsecured notes priced at 5.125 percent and scheduled to mature in 2025. Proceeds from the offering were used to repay the existing $391 million term loan B due in 2020, to pay related fees, and for general corporate purposes. |
• | Retransmission revenue increased 24 percent to $66 million in the first quarter. The increase was driven by the renewal at higher rates of two contracts covering 3 million subscribers during the fourth quarter of 2016. |
• | Digital revenue grew 25 percent in the first quarter, particularly driven by growth at our podcast industry-leading company Midroll. |
• | Scripps is launching a new daytime television lifestyle talk show featuring country music entertainer Kellie Pickler and Emmy Award-winning New York City journalist Ben Aaron. The show is a partnership with Grammy Award-winning country music artist Faith Hill. It will launch this fall in 20 Scripps TV station markets. |
• | Scripps received three prestigious Walter Cronkite Awards for Excellence in Television Political Journalism from the Norman Lear Center at University of Southern California. The awards recognized original reporting of the 2016 elections across the company’s 24 news-producing markets and at Newsy; its campaign fact-checking partnership with Politifact and including Newsy; and the work of its Denver station, KMGH, in covering a forgery scandal involving a U.S. Senate race. |
• | Local, down 3.3 percent to $78 million |
• | National, down 7.3 percent to $31 million |
• | Political, $1 million, compared to $9.3 million in 2016 |
Three Months Ended March 31, | ||||||||
(in thousands, except per share data) | 2017 | 2016 | ||||||
Operating revenues | $ | 211,001 | $ | 209,498 | ||||
Segment, shared services and corporate expenses | (194,701 | ) | (182,200 | ) | ||||
Acquisition and related integration costs | — | (578 | ) | |||||
Depreciation and amortization | (14,724 | ) | (14,411 | ) | ||||
(Losses) gains, net on disposal of property and equipment | (87 | ) | 4 | |||||
Operating expenses | (209,512 | ) | (197,185 | ) | ||||
Operating income | 1,489 | 12,313 | ||||||
Interest expense | (4,195 | ) | (4,579 | ) | ||||
Defined benefit pension plan expense | (3,467 | ) | (3,450 | ) | ||||
Miscellaneous, net | (879 | ) | (191 | ) | ||||
(Loss) income from operations before income taxes | (7,052 | ) | 4,093 | |||||
Benefit for income taxes | 5,113 | 795 | ||||||
Net (loss) income | $ | (1,939 | ) | $ | 4,888 | |||
Net (loss) income per basic share of common stock | $ | (0.02 | ) | $ | 0.06 | |||
Weighted average basic shares outstanding | 82,079 | 83,965 |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2017 | 2016 | Change | ||||||||
Segment operating revenues: | |||||||||||
Television | $ | 179,798 | $ | 179,904 | (0.1 | )% | |||||
Radio | 13,996 | 14,603 | (4.2 | )% | |||||||
Digital | 15,357 | 12,326 | 24.6 | % | |||||||
Syndication and other | 1,850 | 2,665 | (30.6 | )% | |||||||
Total operating revenues | $ | 211,001 | $ | 209,498 | 0.7 | % | |||||
Segment profit (loss): | |||||||||||
Television | $ | 34,715 | $ | 41,687 | (16.7 | )% | |||||
Radio | 1,608 | 2,143 | (25.0 | )% | |||||||
Digital | (6,177 | ) | (3,133 | ) | 97.2 | % | |||||
Syndication and other | 318 | 893 | (64.4 | )% | |||||||
Shared services and corporate | (14,164 | ) | (14,292 | ) | (0.9 | )% | |||||
Acquisition and related integration costs | — | (578 | ) | ||||||||
Depreciation and amortization | (14,724 | ) | (14,411 | ) | |||||||
(Losses) gains, net on disposal of property and equipment | (87 | ) | 4 | ||||||||
Interest expense | (4,195 | ) | (4,579 | ) | |||||||
Defined benefit pension plans | (3,467 | ) | (3,450 | ) | |||||||
Miscellaneous, net | (879 | ) | (191 | ) | |||||||
(Loss) income from operations before income taxes | $ | (7,052 | ) | $ | 4,093 |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2017 | 2016 | Change | ||||||||
Segment operating revenues: | |||||||||||
Local | $ | 77,571 | $ | 80,257 | (3.3 | )% | |||||
National | 31,016 | 33,445 | (7.3 | )% | |||||||
Political | 1,041 | 9,260 | |||||||||
Retransmission | 66,211 | 53,614 | 23.5 | % | |||||||
Other | 3,959 | 3,328 | 19.0 | % | |||||||
Total operating revenues | 179,798 | 179,904 | (0.1 | )% | |||||||
Segment costs and expenses: | |||||||||||
Employee compensation and benefits | 66,887 | 65,767 | 1.7 | % | |||||||
Programs and program licenses | 45,148 | 39,479 | 14.4 | % | |||||||
Other expenses | 33,048 | 32,971 | 0.2 | % | |||||||
Total costs and expenses | 145,083 | 138,217 | 5.0 | % | |||||||
Segment profit | $ | 34,715 | $ | 41,687 | (16.7 | )% |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2017 | 2016 | Change | ||||||||
Segment operating revenues: | |||||||||||
Advertising | $ | 13,460 | $ | 14,122 | (4.7 | )% | |||||
Other | 536 | 481 | 11.4 | % | |||||||
Total operating revenues | 13,996 | 14,603 | (4.2 | )% | |||||||
Segment costs and expenses: | |||||||||||
Employee compensation and benefits | 7,378 | 7,291 | 1.2 | % | |||||||
Programs | 1,223 | 1,089 | 12.3 | % | |||||||
Other expenses | 3,787 | 4,080 | (7.2 | )% | |||||||
Total costs and expenses | 12,388 | 12,460 | (0.6 | )% | |||||||
Segment profit | $ | 1,608 | $ | 2,143 | (25.0 | )% |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2017 | 2016 | Change | ||||||||
Total operating revenues | $ | 15,357 | $ | 12,326 | 24.6 | % | |||||
Segment costs and expenses: | |||||||||||
Employee compensation and benefits | 13,312 | 9,877 | 34.8 | % | |||||||
Other expenses | 8,222 | 5,582 | 47.3 | % | |||||||
Total costs and expenses | 21,534 | 15,459 | 39.3 | % | |||||||
Segment loss | $ | (6,177 | ) | $ | (3,133 | ) | 97.2 | % |
(in thousands) | As of March 31, 2017 | As of December 31, 2016 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 132,268 | $ | 134,352 | ||||
Other current assets | 209,531 | 211,543 | ||||||
Total current assets | 341,799 | 345,895 | ||||||
Investments | 14,499 | 14,221 | ||||||
Property and equipment | 256,070 | 260,731 | ||||||
Goodwill | 616,780 | 616,780 | ||||||
Other intangible assets | 462,161 | 467,896 | ||||||
Deferred income taxes | 9,575 | 9,075 | ||||||
Miscellaneous | 13,379 | 13,775 | ||||||
TOTAL ASSETS | $ | 1,714,263 | $ | 1,728,373 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 30,518 | $ | 26,670 | ||||
Customer deposits and unearned revenue | 6,292 | 7,122 | ||||||
Current portion of long-term debt | 2,656 | 6,571 | ||||||
Accrued expenses and other current liabilities | 51,455 | 63,768 | ||||||
Total current liabilities | 90,921 | 104,131 | ||||||
Long-term debt (less current portion) | 389,719 | 386,614 | ||||||
Other liabilities (less current portion) | 286,169 | 291,693 | ||||||
Total equity | 947,454 | 945,935 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 1,714,263 | $ | 1,728,373 |
Three Months Ended March 31, | ||||||||
(in thousands) | 2017 | 2016 | ||||||
Numerator (for basic and diluted earnings per share) | ||||||||
Net (loss) income | $ | (1,939 | ) | $ | 4,888 | |||
Less income allocated to RSUs | — | (53 | ) | |||||
Numerator for basic and diluted earnings per share | $ | (1,939 | ) | $ | 4,835 | |||
Denominator | ||||||||
Basic weighted-average shares outstanding | 82,079 | 83,965 | ||||||
Effective of dilutive securities: | ||||||||
Stock options held by employees and directors | — | 260 | ||||||
Diluted weighted-average shares outstanding | 82,079 | 84,225 |
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