EX-99.1 2 ex-991forcordilleraandrayc.htm EXHIBIT 99.1 Exhibit



Exhibit 99.1
ADJUSTED COMBINED SUPPLEMENTAL INFORMATION

Due to the effect that the 2019 television station acquisitions have on our Local Media segment, and to provide meaningful period over period comparisons, we are providing this supplemental non-GAAP (Generally Accepted Accounting Principles) information to present certain financial results on an adjusted combined basis. The adjusted combined financial results have been compiled by adding, as of the earliest period presented, the acquired Waco, Texas; Tallahassee, Florida; and Cordillera television stations’ historical revenue, employee compensation and benefits, programming and other expenses to Scripps’ historical revenue, employee compensation and benefits, programming and other expenses captions historically reported within our Local Media segment. These historical results are adjusted for certain intercompany adjustments and other impacts that would result from the companies operating under the ownership of Scripps.
 
Management uses the adjusted combined non-GAAP supplemental information for purposes of evaluating the performance of the Local Media segment. The company therefore believes that the non-GAAP measure presented provides useful information to investors by allowing them to view the company’s businesses through the eyes of management, facilitating comparison of Local Media results across historical periods and providing a focus on the underlying ongoing operating performance of the segment.
 
The company uses the adjusted combined non-GAAP supplemental information to supplement the financial information presented on Scripps GAAP historical basis. This non-GAAP supplemental information is not to be considered in isolation from, or as a substitute for, the related GAAP measures, and should be read only in conjunction with financial information presented on a GAAP basis.
 
The adjusted combined financial results contained in the following supplemental information is for informational purposes only. These results do not necessarily reflect what the historical results of Scripps would have been if the acquisitions of the Waco, Tallahassee and Cordillera broadcast operations had occurred on January 1, 2018. Nor is this information necessarily indicative of the future results of operations of the combined entities.

The adjusted combined financial information is not pro forma information prepared in accordance with Article 11 of SEC regulation S-X, and the preparation of information in accordance with Article 11 would result in a significantly different presentation.


1


Local Media segment Adjusted Combined segment profit
 
 
2019
 
2018
(in thousands)
 
Q1
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment operating revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Core advertising
 
$
136,662

 
$
143,022

 
$
148,188

 
$
133,521

 
$
141,914

 
$
566,645

Political
 
1,112

 
3,137

 
21,678

 
54,733

 
109,704

 
189,252

Retransmission
 
96,046

 
83,372

 
86,748

 
91,446

 
90,929

 
352,495

Other revenue
 
4,214

 
3,186

 
3,504

 
3,517

 
3,047

 
13,254

Total operating revenues
 
238,034

 
232,717

 
260,118

 
283,217

 
345,594

 
1,121,646

Segment costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Employee compensation and benefits
 
87,863

 
88,498

 
85,660

 
86,309

 
90,548

 
351,015

Programming
 
68,728

 
61,824

 
61,815

 
65,564

 
64,584

 
253,787

Impairment of programming assets
 
—

 
—

 
—

 
—

 
8,920

 
8,920

Other expenses
 
38,178

 
38,950

 
41,670

 
41,414

 
48,815

 
170,849

Total costs and expenses
 
194,769

 
189,272

 
189,145

 
193,287

 
212,867

 
784,571

Segment profit
 
$
43,265

 
$
43,445

 
$
70,973

 
$
89,930

 
$
132,727

 
$
337,075


Non-GAAP reconciliation

Below is a reconciliation of Scripps historical reported revenue and segment profit for its Local Media segment to the adjusted combined revenue and adjusted combined segment profit for the Local Media segment with the 2019 television station acquisitions.
 
 
2019
 
2018
(in thousands)
 
Q1
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
Local Media operating revenues, as reported
 
$
203,387

 
$
192,059

 
$
213,248

 
$
230,734

 
$
281,439

 
$
917,480

Waco/Tallahassee TV stations acquisition
 
—

 
6,068

 
6,174

 
6,190

 
6,805

 
25,237

Cordillera TV stations acquisition
 
35,480

 
35,166

 
41,283

 
46,884

 
57,942

 
181,275

Other revenue adjustments (1)
 
(833
)
 
(576
)
 
(587
)
 
(591
)
 
(592
)
 
(2,346
)
Local Media adjusted combined operating revenues
 
$
238,034

 
$
232,717

 
$
260,118

 
$
283,217

 
$
345,594

 
$
1,121,646


 
 
2019
 
2018
(in thousands)
 
Q1
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
Local Media segment profit, as reported
 
$
34,173

 
$
31,619

 
$
53,368

 
$
67,416

 
$
98,716

 
$
251,119

Waco/Tallahassee TV stations acquisition
 
—

 
1,770

 
1,905

 
1,893

 
2,265

 
7,833

Cordillera TV stations acquisition
 
7,925

 
8,632

 
14,287

 
19,212

 
30,338

 
72,469

Other revenue adjustments (1)
 
(833
)
 
(576
)
 
(587
)
 
(591
)
 
(592
)
 
(2,346
)
Acquisition synergies
 
2,000

 
2,000

 
2,000

 
2,000

 
2,000

 
8,000

Local Media adjusted combined segment profit
 
$
43,265

 
$
43,445

 
$
70,973

 
$
89,930

 
$
132,727

 
$
337,075


(1) Primarily reflects reduced retransmission revenue from CW affiliates under Scripps retransmission agreements in effect during each period.

2