TEGNA Earnings 2020-09-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

tgna-20200930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________

FORM 10-Q

_______________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 1-6961

___________________________

TEGNA INC.

(Exact name of registrant as specified in its charter)

___________________________

Delaware

16-0442930

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

8350 Broad Street, Suite 2000,

Tysons,

Virginia

22102-5151

(Address of principal executive offices)

(Zip Code)

(703)

873-6600

(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock	TGNA	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒

The total number of shares of the registrant’s Common Stock, $1 par value, outstanding as of October 31, 2020 was 219,241,555.

INDEX TO TEGNA INC.

September 30, 2020 FORM 10-Q


Item No.		Page
	PART I. FINANCIAL INFORMATION

1.	Financial Statements

	Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019	3

	Consolidated Statements of Income for the Quarters and Nine Months Ended September 30, 2020 and 2019	5

	Consolidated Statements of Comprehensive Income for the Quarters and Nine Months Ended September 30, 2020 and 2019	6

	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2020 and 2019	7

	Consolidated Statements of Equity and Redeemable Noncontrolling Interests for the Quarters and Nine Months Ended September 30, 2020 and 2019	8

	Notes to Condensed Consolidated Financial Statements	10

2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

3.	Quantitative and Qualitative Disclosures about Market Risk	35

4.	Controls and Procedures	36

	PART II. OTHER INFORMATION

1.	Legal Proceedings	37

1A.	Risk Factors	37

2.	Unregistered Sales of Equity Securities and Use of Proceeds	37

3.	Defaults Upon Senior Securities	37

4.	Mine Safety Disclosures	37

5.	Other Information	37

6.	Exhibits	38

SIGNATURE		39

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

TEGNA Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

In thousands of dollars (Unaudited)


	Sept. 30, 2020		Dec. 31, 2019

ASSETS
Current assets
Cash and cash equivalents	$	164,586	$	29,404
Accounts receivable, net of allowances of $8,427 and $3,723, respectively	503,000		581,765
Other receivables	14,093		19,640
Syndicated programming rights	60,378		49,616
Prepaid expenses and other current assets	21,224		26,899
Total current assets	763,281		707,324
Property and equipment
Cost	1,011,744		997,736
Less accumulated depreciation	(541,197)		(512,015)
Net property and equipment	470,547		485,721
Intangible and other assets
Goodwill	2,968,693		2,950,587
Indefinite-lived and amortizable intangible assets, less accumulated amortization of $218,468 and $168,452, respectively	2,501,027		2,561,614
Right-of-use assets for operating leases	98,242		103,461
Investments and other assets	143,206		145,269
Total intangible and other assets	5,711,168		5,760,931
Total assets	$	6,944,996	$	6,953,976

The accompanying notes are an integral part of these condensed consolidated financial statements.

TEGNA Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

In thousands of dollars, except par value and share amounts (Unaudited)


	Sept. 30, 2020		Dec. 31, 2019

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
Current liabilities
Accounts payable	$	61,441	$	51,894
Accrued liabilities
Compensation	44,744		63,876
Interest	25,699		46,013
Contracts payable for programming rights	145,796		119,872
Other	98,438		60,983
Dividends payable	—		15,188
Income taxes payable	23,226		3,332

Total current liabilities	399,344		361,158
Noncurrent liabilities
Income taxes	7,671		7,490
Deferred income tax liability	524,974		515,621
Long-term debt	3,906,196		4,179,245
Pension liabilities	114,281		127,146
Operating lease liabilities	100,660		105,902
Other noncurrent liabilities	77,681		67,037
Total noncurrent liabilities	4,731,463		5,002,441
Total liabilities	5,130,807		5,363,599

Commitments and contingent liabilities (see Note 11)

Redeemable noncontrolling interest (see Note 11)	14,653		—

Shareholders’ equity
Common stock of $1 par value per share, 800,000,000 shares authorized, 324,418,632 shares issued	324,419		324,419
Additional paid-in capital	119,794		247,497
Retained earnings	6,846,554		6,655,088
Accumulated other comprehensive loss	(139,087)		(142,597)
Less treasury stock at cost, 105,271,009 shares and 106,955,082 shares, respectively	(5,352,144)		(5,494,030)
Total equity	1,799,536		1,590,377
Total liabilities, redeemable noncontrolling interest and equity	$	6,944,996	$	6,953,976

The accompanying notes are an integral part of these condensed consolidated financial statements.

TEGNA Inc.

CONSOLIDATED STATEMENTS OF INCOME

Unaudited, in thousands of dollars, except per share amounts


	Quarter ended Sept. 30,				Nine months ended Sept. 30,
	2020		2019		2020		2019

Revenues	$	738,389	$	551,857	$	2,000,205	$	1,605,542

Operating expenses:
Cost of revenues1	379,185		306,474		1,103,920		873,078
Business units - Selling, general and administrative expenses	89,943		78,439		267,919		223,845
Corporate - General and administrative expenses	11,263		29,792		61,289		60,363
Depreciation	16,086		15,381		49,697		44,831
Amortization of intangible assets	17,113		15,018		50,577		32,530
Spectrum repacking reimbursements and other, net	(2,902)		(80)		(10,533)		(11,399)
Total	510,688		445,024		1,522,869		1,223,248
Operating income	227,701		106,833		477,336		382,294

Non-operating income (expense):
Equity (loss) income in unconsolidated investments, net	(2,529)		(491)		8,407		10,922
Interest expense	(51,896)		(52,454)		(160,733)		(145,166)
Other non-operating items, net	961		(463)		(17,270)		6,962
Total	(53,464)		(53,408)		(169,596)		(127,282)

Income before income taxes	174,237		53,425		307,740		255,012
Provision for income taxes	41,967		5,079		69,699		52,732
Net Income	132,270		48,346		238,041		202,280
Net (income) loss attributable to redeemable noncontrolling interest	(51)		—		433		—
Net income attributable to TEGNA Inc.	$	132,219	$	48,346	$	238,474	$	202,280

Net income per share:
Basic	$	0.60	$	0.22	$	1.08	$	0.93
Diluted	$	0.60	$	0.22	$	1.08	$	0.93

Weighted average number of common shares outstanding:
Basic shares	219,579		217,315		218,997		217,040
Diluted shares	219,977		218,310		219,423		217,808

1 Cost of revenues exclude charges for depreciation and amortization expense, which are shown separately above.

The accompanying notes are an integral part of these condensed consolidated financial statements.

TEGNA Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Unaudited, in thousands of dollars


	Quarter ended Sept. 30,				Nine months ended Sept. 30,
	2020		2019		2020		2019

Net income	$	132,270	$	48,346	$	238,041	$	202,280
Other comprehensive income, before tax:
Foreign currency translation adjustments	(93)		(318)		37		(775)
Recognition of previously deferred post-retirement benefit plan costs	1,551		1,431		4,653		4,293
Pension lump-sum payment charges	—		—		—		686
Other comprehensive income, before tax	1,458		1,113		4,690		4,204
Income tax effect related to components of other comprehensive income	(366)		(278)		(1,180)		(1,052)
Other comprehensive income, net of tax	1,092		835		3,510		3,152
Comprehensive income	133,362		49,181		241,551		205,432
Comprehensive (income) loss attributable to redeemable noncontrolling interest	(51)		—		433		—
Comprehensive income attributable to TEGNA Inc.	$	133,311	$	49,181	$	241,984	$	205,432

The accompanying notes are an integral part of these condensed consolidated financial statements.

TEGNA Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited, in thousands of dollars


	Nine months ended Sept. 30,
	2020		2019

Cash flows from operating activities:
Net income	$	238,041	$	202,280
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation and amortization	100,274		77,361
Stock-based compensation	12,578		13,887
Company stock 401(k) contribution	13,023		6,486
Gains on sales of assets	—		(11,728)
Equity income from unconsolidated investments, net	(8,407)		(10,922)
Pension contributions, net of expense	(8,144)		(5,543)
Change in other assets and liabilities, net of acquisitions:
Decrease (increase) in trade receivables	73,838		(24,708)
Increase (decrease) in accounts payable	10,636		(15,950)
Increase (decrease) in interest and taxes payable	13,793		(1,815)
Increase in deferred revenue	27,706		1,027
Change in other assets and liabilities, net	42,413		(15,790)
Net cash flow from operating activities	515,751		214,585
Cash flows from investing activities:
Purchase of property and equipment	(30,583)		(51,231)
Reimbursements from spectrum repacking	12,670		13,975
Payments for acquisitions of businesses and other assets, net of cash acquired	(15,841)		(1,507,483)
Payments for investments	(709)		(4,041)
Proceeds from investments	5,028		4,020
Proceeds from sale of assets and businesses	5,023		21,733
Net cash flow used for investing activities	(24,412)		(1,523,027)
Cash flows from financing activities:
(Payments) proceeds under revolving credit facilities, net	(728,000)		223,000
Proceeds from borrowings	1,550,000		1,100,000
Debt repayments	(1,085,000)		(75,000)
Payments for debt issuance costs and early redemption fee	(36,896)		(20,276)
Proceeds from sale of minority ownership interest in Premion	14,000		—
Dividends paid	(61,110)		(45,451)

Other, net	(9,151)		(499)
Net cash flow (used for) provided by financing activities	(356,157)		1,181,774
Increase (decrease) in cash	135,182		(126,668)
Balance of cash, beginning of period	29,404		135,862
Balance of cash, end of period	$	164,586	$	9,194

Supplemental cash flow information:
Cash paid for income taxes, net of refunds	$	39,872	$	73,457
Cash paid for interest	$	174,575	$	117,913

The accompanying notes are an integral part of these condensed consolidated financial statements.

TEGNA Inc.

CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTEREST

Unaudited, in thousands of dollars, except per share data


Quarters Ended:	Redeemable noncontrolling interest		Common stock		Additional paid-in capital		Retained earnings		Accumulated other comprehensive loss		Treasury stock		Total Equity
Balance at June 30, 2020	$	14,373	$	324,419	$	140,255	$	6,729,896	$	(140,179)	$	(5,379,084)	$	1,675,307
Net income	51		—		—		132,219		—		—		132,219
Other comprehensive income, net of tax	—		—		—		—		1,092		—		1,092
Total comprehensive income													133,311
Dividends declared: $0.07 per share	—		—		—		(15,332)		—		—		(15,332)
Company stock 401(k) contribution	—		—		(21,886)		—		—		26,344		4,458
Stock-based awards activity	—		—		(652)		—		—		596		(56)
Stock-based compensation	—		—		5,010		—		—		—		5,010
Accretion of redeemable noncontrolling interest	280		—		—		(280)		—		—		(280)
Adjustment of redeemable noncontrolling interest to redemption value	(51)		—		—		51		—		—		51
Other activity	—		—		(2,933)		—		—		—		(2,933)
Balance at Sept. 30, 2020	$	14,653	$	324,419	$	119,794	$	6,846,554	$	(139,087)	$	(5,352,144)	$	1,799,536



	Redeemable noncontrolling interest		Common stock		Additional paid-in capital		Retained earnings		Accumulated other comprehensive loss		Treasury stock		Total
Balance at June 30, 2019	$	—	$	324,419	$	256,024	$	6,553,149	$	(134,194)	$	(5,519,656)	$	1,479,742
Net income	—		—		—		48,346		—		—		48,346
Other comprehensive income, net of tax	—		—		—		—		835		—		835
Total comprehensive income													49,181

Dividends declared: $0.07 per share	—		—		—		(15,174)		—		—		(15,174)
Company stock 401(k) contribution	—		—		(7,794)		—		—		11,036		3,242
Stock-based awards activity	—		—		(763)		—		—		711		(52)
Stock-based compensation	—		—		4,445		—		—		—		4,445
Other activity	—		—		312		—		—		—		312
Balance at Sept. 30, 2019	$	—	$	324,419	$	252,224	$	6,586,321	$	(133,359)	$	(5,507,909)	$	1,521,696


TEGNA Inc.
CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NON-CONTROLLING INTEREST
Unaudited, in thousands of dollars, except per share data

Nine Months Ended:	Redeemable noncontrolling interest		Common stock		Additional paid-in capital		Retained earnings		Accumulated other comprehensive loss		Treasury stock		Total
Balance at Dec. 31, 2019	$	—	$	324,419	$	247,497	$	6,655,088	$	(142,597)	$	(5,494,030)	$	1,590,377
Net income (loss)	(433)		—		—		238,474		—		—		238,474
Other comprehensive income, net of tax	—		—		—		—		3,510		—		3,510
Total comprehensive income													241,984
Dividends declared: $0.21 per share	—		—		—		(45,922)		—		—		(45,922)

Company stock 401(k) contribution	—		—		(57,606)		—		—		70,629		13,023
Stock-based awards activity	—		—		(80,408)		—		—		71,257		(9,151)
Stock-based compensation	—		—		12,578		—		—		—		12,578
Sale of minority ownership interest in Premion	14,000		—		—		—		—		—		—
Accretion of redeemable noncontrolling interest	653		—		—		(653)		—		—		(653)
Adjustment of redeemable noncontrolling interest to redemption value	433		—		—		(433)		—		—		(433)
Other activity	—		—		(2,267)		—		—		—		(2,267)
Balance at Sept. 30, 2020	$	14,653	$	324,419	$	119,794	$	6,846,554	$	(139,087)	$	(5,352,144)	$	1,799,536

	Redeemable noncontrolling interest		Common stock		Additional paid-in capital		Retained earnings		Accumulated other comprehensive loss		Treasury stock		Total
Balance at Dec. 31, 2018	$	—	$	324,419	$	301,352	$	6,429,512	$	(136,511)	$	(5,577,848)	$	1,340,924
Net income	—		—		—		202,280		—		—		202,280
Other comprehensive income, net of tax	—		—		—		—		3,152		—		3,152
Total comprehensive income													205,432

Dividends declared: $0.21 per share	—		—		—		(45,471)		—		—		(45,471)
Company stock 401(k) contribution	—		—		(15,053)		—		—		21,539		6,486
Stock-based awards activity	—		—		(48,899)		—		—		48,400		(499)
Stock-based compensation	—		—		13,887		—		—		—		13,887
Other activity	—		—		937		—		—		—		937
Balance at Sept. 30, 2019	$	—	$	324,419	$	252,224	$	6,586,321	$	(133,359)	$	(5,507,909)	$	1,521,696

The accompanying notes are an integral part of these condensed consolidated financial statements.

TEGNA Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – Accounting policies

Basis of presentation: Our accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial reporting, the instructions for Form 10-Q and Article 10 of the U.S. Securities and Exchange Commission (SEC) Regulation S-X. Accordingly, they do not include all information and footnotes which are normally included in the Form 10-K and annual report to shareholders. In our opinion, the condensed consolidated financial statements reflect all adjustments of a normal recurring nature necessary for a fair statement of the results for the interim periods presented. The condensed consolidated financial statements should be read in conjunction with our (or TEGNA’s) audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019.

The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. During the first quarter of 2020, a novel strain of coronavirus (COVID-19) believed to have been first identified in Wuhan, China, spread globally, including to every state in the United States. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and on March 13, 2020, the United States declared a national emergency with respect to COVID-19. The federal and state governments in the United States responded by instituting a wide variety of mitigating control measures, including, mandatory quarantines, closures of non-essential businesses and all other places of social interaction, while implementing “shelter in place” orders and travel restrictions in an effort to slow the spread of the virus. Such mitigating measures began negatively impacting our advertising and marketing services (AMS) revenue stream in mid-March as demand for non-political advertising softened. While some of these measures have been lifted or relaxed in certain state and local governments, other jurisdictions have seen increases in new COVID-19 cases resulting in restrictions being reinstated, or new restrictions imposed. Overall, demand improved for advertising during the second and third quarters as steps toward economic re-opening were implemented. There continues to be considerable uncertainty regarding how current and future health and safety measures implemented in response to the pandemic will impact our business.

Beginning in mid-March, as a result of the expected near-term impact on non-political advertising demand caused by the COVID-19 pandemic, we implemented cost saving measures to reduce operating expenses and discretionary capital expenditures. These measures included implementing temporary furloughs for one week during the second quarter for most personnel, reducing compensation for executives and our board of directors, and reducing non-critical discretionary spending. As is true of most businesses, the ultimate magnitude of the COVID-19 pandemic cannot be reasonably estimated at this time, but we do expect it to continue to have a dampening effect on our near-term AMS revenues.

While it is too early to predict the duration of the pandemic or the long term effects on our financial condition, results of operations, and liquidity, we use the best information available in developing significant estimates included in our financial statements. Actual results could differ from these estimates, and these differences resulting from changes in facts and circumstances could be material. Significant estimates include, but are not limited to, evaluation of goodwill and other intangible assets for impairment, business combinations, fair value measurements, post-retirement benefit plans, income taxes including deferred taxes, and contingencies. The condensed consolidated financial statements include the accounts of subsidiaries we control. We eliminate all intercompany balances, transactions, and profits in consolidation. Investments in entities over which we have significant influence, but do not have control, are accounted for under the equity method. Our share of net earnings and losses from these ventures is included in “Equity (loss) income in unconsolidated investments, net” in the Consolidated Statements of Income.

We operate one operating and reportable segment, which primarily consists of our 63 television stations and two radio stations operating in 51 markets, offering high-quality television programming and digital content. Our reportable segment determination is based on our management and internal reporting structure, the nature of products and services we offer, and the financial information that is evaluated regularly by our chief operating decision maker.

Accounting guidance adopted in 2020: In June 2016, the Financial Accounting Standards Board (FASB) issued new guidance related to the measurement of credit losses on financial instruments. The new guidance changed the way credit losses on accounts receivable are estimated. Under previous GAAP, credit losses on accounts receivable were recognized once it was probable that such losses will occur. Under the new guidance, we are required to estimate credit losses based on the expected amount of future collections which may result in earlier recognition of doubtful accounts. We adopted the new guidance on January 1, 2020 using a modified retrospective approach. Due to the short-term nature of our accounts receivable balance, there was no material change to our allowance for doubtful accounts as a result of adopting this new guidance.

In March 2019, the FASB issued new guidance related to the accounting for episodic television series. The most significant aspect of this new guidance that was applicable to us relates to the level at which our capitalized programming assets are monitored for impairment. Under the new guidance these assets are monitored at the film group level which is the lowest level at which independently identifiable cash flows are identifiable. We adopted the new guidance prospectively on January 1, 2020. There was no material impact on our consolidated financial statements and related disclosures as of the adoption date.

Programming assets are recorded at the gross amount of the related liability when the programs are available for telecasting. The related assets are recorded at the lower of cost or estimated net realizable value. Expense is recognized on a straight line basis which appropriately matches the cost of the programs with the revenues associated with them. During the first nine months of 2020 and 2019, we incurred programming expense of $53.6 million and $42.5 million; in the third quarter of 2020 and 2019, we incurred programming expense of $17.6 million and $15.5 million, respectively. Programming expense is included in the “Cost of revenues” line item of our Consolidated Statements of Income. As of September 30, 2020, $60.4 million of programming assets had been recorded, to be expensed within the next twelve months.

We evaluate the net realizable value of our program broadcasting contract assets when a triggering event occurs, such as a change in our intended usage, or sustained lower-than-expected ratings for the program. Impairment analyses are performed at the syndicated program level (across all stations that utilize the program). We determine the net realizable value based on a projection of the estimated revenues less projected direct costs associated with the syndicated program (which is classified as Level 3 in the fair value hierarchy). If the future direct costs exceed expected revenues, impairment of the program asset may be required. No impairment charges were recognized in 2020 or 2019.

New accounting guidance not yet adopted: In August 2018, the FASB issued new guidance that changed disclosures related to defined benefit pension and other postretirement benefit plans. The guidance removed disclosures that are no longer economically relevant, clarifies certain existing disclosure requirements and added some new disclosures. The most relevant elimination for us is the annual disclosure of the amount of gain/loss and prior service cost/credit amortization expected in the following year. Additions most relevant to us include annually disclosing narrative explanations of the drivers for significant changes in plan obligations or assets, and disclosure for cost of living adjustments for certain participants of our TEGNA retirement plan. We will include the new disclosures in our 2020 Annual Report on Form 10-K and will apply them on a retrospective basis.

There is currently no other pending accounting guidance that we expect to have a material impact on our consolidated financial statements or disclosures.

Trade receivables and allowances for doubtful accounts: Trade receivables are recorded at invoiced amounts and generally do not bear interest. The allowance for doubtful accounts reflects our estimate of credit exposure, determined principally on the basis of our collection experience, aging of our receivables and any specific reserves needed for certain customers based on their credit risk. Our allowance also takes into account expected future trends which may impact our customers’ ability to pay, such as economic growth, unemployment and demand for our products and services, including the impacts of the COVID-19 pandemic on these trends. We monitor the credit quality of our customers and their ability to pay through the use of analytics and communication with individual customers. As of September 30, 2020, our allowance for doubtful accounts was $8.4 million as compared to $3.7 million as of December 31, 2019.

Revenue recognition: Revenue is recognized upon the transfer of control of promised services to our customers in an amount that reflects the consideration we expect to receive in exchange for those services. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Amounts received from customers in advance of providing services to our customers are recorded as deferred revenue.

The primary sources of our revenues are: 1) advertising & marketing services revenues, which include local and national non-political television advertising, digital marketing services (including Premion), and advertising on the stations’ websites and tablet and mobile products; 2) subscription revenues, reflecting fees paid by satellite, cable, OTT (companies that deliver video content to consumers over the Internet) and telecommunications providers to carry our television signals on their systems; 3) political advertising revenues, which are driven by even year election cycles at the local and national level (e.g. 2020, 2018) and particularly in the second half of those years; and 4) other services, such as production of programming and advertising material.

Revenue earned by these sources in the third quarter and first nine months of 2020 and 2019 are shown below (amounts in thousands):


	Quarter ended Sept. 30,				Nine months ended Sept. 30,
	2020		2019		2020		2019

Advertising & Marketing Services	$	298,605	$	297,333	$	822,841	$	851,304
Subscription	316,677		240,735		972,954		718,472
Political	116,494		8,131		181,425		14,064
Other	6,613		5,658		22,985		21,702
Total revenues	$	738,389	$	551,857	$	2,000,205	$	1,605,542

NOTE 2 – Acquisitions

During 2019, we acquired the television stations listed in the table below, and a summary of each acquisition follows:


Market	Station	Affiliation	Seller
Indianapolis, IN	WTHR	NBC	Dispatch Broadcast Group
Columbus, OH	WBNS	CBS	Dispatch Broadcast Group
Hartford-New Haven, CT	WTIC/WCCT	FOX/CW	Nexstar Media Group
Harrisburg-Lancaster-Lebanon-York, PA	WPMT	FOX	Nexstar Media Group
Memphis, TN	WATN/WLMT	ABC/CW	Nexstar Media Group
Wilkes Barre-Scranton, PA	WNEP	ABC	Nexstar Media Group
Des Moines-Ames, IA	WOI/KCWI	ABC/CW	Nexstar Media Group
Huntsville-Decatur-Florence, AL	WZDX	FOX	Nexstar Media Group
Davenport, IA and Rock Island-Moline, IL	WQAD	ABC	Nexstar Media Group
Ft. Smith-Fayetteville-Springdale-Rogers, AR	KFSM	CBS	Nexstar Media Group
Toledo, OH	WTOL	CBS	Gray Television
Midland-Odessa, TX	KWES	NBC	Gray Television

Nexstar Stations

On September 19, 2019, we completed our acquisition of 11 local television stations in eight markets, including eight Big Four affiliates, from Nexstar Media Group (the Nexstar Stations). These stations were divested by Nexstar Media Group in connection with its acquisition of Tribune Media Company. The purchase price for the Nexstar Stations was $769.9 million which included a base purchase price of $740.0 million and working capital of $29.9 million.

Dispatch Stations

On August 8, 2019, we completed the acquisition of Dispatch Broadcast Group’s two top-rated television stations and two radio stations (the Dispatch Stations). The purchase price for the Dispatch Stations was $560.5 million which consisted of a base purchase price of $535.0 million and working capital and cash acquired of $25.5 million.

Justice and Quest Multicast Networks

On June 18, 2019, we completed the acquisition of the remaining approximately 85% interest that we did not previously own in the multicast networks Justice Network (recently rebranded as True Crime Network) and Quest from Cooper Media. Cash paid for this acquisition was $77.1 million (which included $4.6 million for working capital).

Gray Stations

On January 2, 2019, we completed our acquisition of WTOL and KWES from Gray Television, Inc. for $109.9 million in cash (which included $4.9 million for working capital paid at closing).

The following table summarizes the fair values of the assets acquired and liabilities assumed in connection with these acquisitions (in thousands):


	Nexstar Stations		Dispatch Stations		Justice & Quest		Gray Stations		Total

Cash	$	—	$	2,363	$	—	$	—	$	2,363
Accounts receivable	34,680		26,344		8,501		5,553		75,078
Prepaid and other current assets	3,776		6,092		6,987		987		17,842
Property and equipment	45,186		40,418		361		11,757		97,722
Goodwill	128,191		202,312		23,567		19,405		373,475
FCC licenses	374,269

Price	14.74	EPS	1
Shares	218	P/E	16
MCap	3,218	P/FCF	15
Net Debt	4,199	EBIT	400
TEV	7,417	TEV/EBIT	19
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-09-30	Filed 2020-11-09
10-Q	2020-06-30	Filed 2020-08-10
10-Q	2020-03-31	Filed 2020-05-11
10-K	2019-12-31	Filed 2020-03-02
10-Q	2019-09-30	Filed 2019-11-07
10-Q	2019-06-30	Filed 2019-08-06
10-Q	2019-03-31	Filed 2019-05-09
10-K	2018-12-31	Filed 2019-03-01
10-Q	2018-09-30	Filed 2018-11-08
10-Q	2018-06-30	Filed 2018-08-07
10-Q	2018-03-31	Filed 2018-05-08
10-K	2017-12-31	Filed 2018-03-01
10-Q	2017-09-30	Filed 2017-11-08
10-Q	2017-06-30	Filed 2017-08-07
10-Q	2017-03-31	Filed 2017-05-09
10-K	2016-12-31	Filed 2017-02-28
10-Q	2016-09-30	Filed 2016-11-09
10-Q	2016-06-30	Filed 2016-08-05
10-Q	2016-03-31	Filed 2016-05-04
10-K	2015-12-31	Filed 2016-02-29
10-Q	2015-09-27	Filed 2015-11-06
10-Q	2015-06-28	Filed 2015-08-05
10-Q	2015-03-29	Filed 2015-05-06
10-K	2014-12-28	Filed 2015-02-25
10-Q	2014-09-28	Filed 2014-11-05
10-Q	2014-06-29	Filed 2014-07-30
10-Q	2014-03-30	Filed 2014-05-07
10-K	2013-12-29	Filed 2014-02-27
10-Q	2013-09-29	Filed 2013-11-06
10-Q	2013-06-30	Filed 2013-08-07
10-Q	2013-03-31	Filed 2013-05-08
10-K	2012-12-30	Filed 2013-02-26
10-Q	2012-09-23	Filed 2012-10-31
10-Q	2012-06-24	Filed 2012-08-01
10-Q	2012-03-25	Filed 2012-05-02
10-K	2011-12-25	Filed 2012-02-22
10-Q	2011-09-25	Filed 2011-11-02
10-Q	2011-06-26	Filed 2011-08-03
10-Q	2011-03-27	Filed 2011-05-04
10-K	2010-12-26	Filed 2011-02-23
10-Q	2010-09-26	Filed 2010-11-01
10-Q	2010-06-27	Filed 2010-07-30
10-Q	2010-03-28	Filed 2010-05-04
10-K	2009-12-27	Filed 2010-02-24

8-K	2020-11-09
8-K	2020-10-15
8-K	2020-09-10
8-K	2020-09-08
8-K	2020-09-08
8-K	2020-08-10
8-K	2020-06-11
8-K	2020-05-07
8-K	2020-04-30
8-K	2020-04-20
8-K	2020-04-20
8-K	2020-02-19
8-K	2020-02-11
8-K	2020-01-09
8-K	2020-01-07
8-K	2020-01-07
8-K	2020-01-07
8-K	2019-12-03
8-K	2019-11-07
8-K	2019-09-19
8-K	2019-09-13
8-K	2019-09-11
8-K	2019-09-09
8-K	2019-09-09
8-K	2019-08-21
8-K	2019-08-15
8-K	2019-08-06
8-K	2019-06-10
8-K	2019-05-09
8-K	2019-04-25
8-K	2019-03-20
8-K	2019-03-01
8-K	2018-11-08
8-K	2018-10-08
8-K	2018-09-26
8-K	2018-09-04
8-K	2018-08-07
8-K	2018-07-24
8-K	2018-06-21
8-K	2018-05-08
8-K	2018-04-26
8-K	2018-03-01
8-K	2018-02-22
8-K	2018-01-10

EX-4.1	tgna-20200930xex4x1.htm
EX-31.1	tgna-20200930xex31x1.htm
EX-31.2	tgna-20200930xex31x2.htm
EX-32.1	tgna-20200930xex32x1.htm
EX-32.2	tgna-20200930xex32x2.htm

TGNA 10Q Quarterly Report

TEGNA Earnings 2020-09-30