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Scripps reports fourth-quarter 2020 results

2021-02-26 07:30 ET - News Release

CINCINNATI, Feb. 26, 2021 /PRNewswire/ -- The E.W. Scripps Company (NASDAQ: SSP) today reported operating results for the fourth quarter of 2020.

The sale of Scripps' Stitcher business closed on Oct. 16, 2020. The business was classified as discontinued operations in our consolidated financial statements. All periods have been adjusted to reflect this presentation.

Total revenue was $591 million compared to $423 million in the fourth-quarter 2019.

Income from continuing operations was $114 million or $1.35 per share. The current-year quarter included gains from the sale of WPIX totaling $6.5 million and $2.6 million of acquisition and related integration costs. These items increased income from continuing operations by $2.9 million, net of taxes, or 4 cents per share.  In the prior-year quarter, income from continuing operations was $12.9 million or 16 cents per share. Pre-tax costs for the prior-year quarter included $3.3 million of acquisition and related integration costs that decreased income from continuing operations by $2.5 million, net of taxes, or 3 cents per share.

Business highlights

  • On Jan. 7, Scripps closed on the acquisition of the ION national television network and has combined it with the five Katz networks and Newsy to create the Scripps Networks division. The new national networks business comes together to offer advertisers a large nationwide audience of media consumers who include free over-the-air television in their self-made viewing bundles. The new division features growing revenue streams supported by an efficient centralized cost structure to maximize financial performance.
  • National Media completed its last quarter as a division with record fourth-quarter revenue of $117 million, up 28%. A healthy direct-response advertising marketplace helped drive these results. Katz was up 18% in the quarter and Newsy was up 27%. National Media completed 2020 with 3 percentage points of margin expansion over 2019.
  • Local Media revenue was up 43% in the fourth quarter and up 22% (adjusted combined) for 2020. Scripps captured $265 million of political advertising (adjusted combined) during the presidential election year, which was record revenue on a same-station basis, and increased retransmission revenue by 31% (adjusted combined). Core advertising has made a solid return since Nov. 3, and its momentum has accelerated in the first quarter of 2021.
  • In addition to closing on the sale of Stitcher on Oct. 16, Scripps announced the sale of Triton on Feb. 17. iHeart Media is buying Triton for $230 million, representing 1.6 times cash-on-cash return for Scripps. Triton has been accretive to margins since Scripps acquired it in late 2018 for $150 million.

Commenting on recent business highlights, Scripps President and CEO Adam Symson said:

"Having completed the acquisition of ION in early January, Scripps is now a full-scale television company and the largest holder of broadcast spectrum in the country. Our new Scripps Networks division is made up of seven powerful TV networks that each reaches nearly every American, through free over-the-air television, over the top platforms and on cable and satellite, to deliver advertisers a large, sought-after audience they often can't find anywhere else.

"Our Local Media brands have deep, long-standing relationships with audiences and advertisers in their communities. This business has strong and durable revenue streams through core advertising, political advertising and retransmission revenue.

"Several years of work set us up for continued significant value creation – acquiring high-performing local television stations to double the scale of our portfolio; selling non-core assets including terrestrial radio, Stitcher and Triton, for high returns; investing in the national media marketplace; restructuring the company and taking considerable cost out of the enterprise.

"In 2020, we were able to deliver much higher free cash flow than we expected, due to our firm financial footing, with economically durable businesses that exceeded the expectations set before the pandemic began. Our expanded local station footprint helped us realize new value in retransmission rate resets as well as political advertising revenue opportunity, and our national businesses led their industries with double-digit revenue growth for the year and significant margin expansion for the division.

"We move forward now as a high-free-cash flow television company with two highly profitable operating divisions that position us to create significant value today and capture even greater value as a leader in the future of television."

Fourth-quarter operating results

Revenue was $591 million, an increase of 40% or $168 million from the prior-year quarter. Political revenue in the quarter was $140 million.

Costs and expenses for segments, shared services and corporate were $388 million, up from $346 million in the year-ago quarter, reflecting the impact of higher network affiliate fees at our stations, contractual rate increases and an increase in programming costs.

Fourth-quarter 2020 results by segment compared to prior-period amounts were:

Local Media
Revenue from Local Media was $473 million, up 43% from the prior-year quarter.

Core advertising revenue decreased 8.9% to $181 million due to political advertising displacement and weakened economic conditions, reflecting the impact of the COVID-19 pandemic on advertiser spending.

Political revenue was $138 million, compared to $15.2 million in the prior-year quarter.

Retransmission revenue increased 36% to $150 million. Scripps renegotiated three large retransmission consent contracts in 2020 and received new rates on another beginning Dec. 31, 2019.

Total segment expenses increased 9.5% to $274 million, primarily driven by contractual rate increases in our network affiliation agreements.

Segment profit was $199 million, compared to $79.7 million in the year-ago quarter.

National Media
Revenue from National Media was $117 million, up from $91.7 million in the prior-year quarter.

Expenses for National Media were $94.7 million, up from $80 million in the prior-year quarter, reflecting cost increases directly attributed to revenue growth in our National Media businesses.

Segment profit was $22.7 million, compared to $11.8 million in the 2019 quarter.

Financial condition
On Dec. 31, cash and cash equivalents totaled $576 million, and cash restricted for the ION acquisition that closed on Jan. 7, 2021, totaled $1.1 billion, while total debt was $3 billion.

On Dec. 30, 2020, the company's wholly owned subsidiary, Scripps Escrow II, Inc, issued $550 million of senior secured notes and $500 million of senior unsecured notes. On Jan. 7, 2021, the company issued an $800 million term loan and received $600 million of financing from Berkshire Hathaway, Inc. in exchange for series A preferred shares. The proceeds from these transactions, in combination with cash on hand, provided the financing for the ION acquisition.

The company made dividend payments totaling $16.6 million during the year and had previously indicated it is not buying back shares. Under the terms of Berkshire Hathaway's preferred equity investment, Scripps will be prohibited from paying dividends and purchasing its shares until all preferred shares are redeemed.

On Jan. 31, cash and cash equivalents totaled $210 million, while total debt was $3.8 billion.

Year-to-date operating results
The following comparisons are for the period ending Dec. 31, 2020:

In 2020, revenue was $1.9 billion, which compares to revenue of $1.4 billion in 2019. The 2020 period includes a full year of revenue from the television stations acquired from Cordillera Communications on May 1, 2019, and from the Nexstar transaction with Tribune on Sept. 19, 2019. The incremental revenue increase from a full year of ownership for these stations totaled $267 million. Political revenue was $272 million during this election year, compared to $23 million in the prior year.

Costs and expenses for segments, shared services and corporate were $1.4 billion, up from $1.2 billion in the year-ago period, reflecting the impact of the acquisitions, higher network programming fees and the annualization of affiliate fees tied to distribution of Court TV.

Income from continuing operations was $154 million or $1.83 per share. The current-year period included $18.7 million of acquisition and related integration costs and gains from the sale of WPIX totaling $6.5 million. These items decreased income by $9.1 million, net of taxes, or 11 cents per share. In the prior-year period, the loss from continuing operations was $1.9 million or 2 cents per share. Pre-tax costs for the prior-year period included $26.3 million of acquisition and related integration costs and $3.4 million of restructuring charges that increased the loss from continuing operations by $22.3 million, net of taxes, or 28 cents per share.

In 2020, income from discontinued operations includes a $139 million gain from the sale of the Stitcher business. The gain reflects a $10 million fair-value estimate for the contingent earnout consideration.

Looking ahead
Beginning with the first quarter of 2021, the company will report the following segments: Local Media, Scripps Networks, and Other. Local Media will comprise our local broadcast stations and their related digital operations. Scripps Networks will include the recently acquired ION national television network, the Katz multicast networks and the Newsy national news network. 

Scripps has suspended issuing new guidance because of the economic uncertainty caused by the COVID-19 pandemic. However, in an effort to provide insights that reflect the current state of affairs and the company's financial outlook, its 10-K and its earnings call remarks include details about where the company stands operationally and financially. The 10-K, which will be filed today, includes disclosures related to the outbreak.

Conference call
The senior management of The E.W. Scripps Company will discuss the company's fourth-quarter results during a telephone conference call at 9:30 a.m. Eastern today. To access the live webcast, visit http://ir.scripps.com and find the link under "upcoming events."

To access the conference call by telephone, dial (844) 867-6169 (U.S.) or (409) 207-6975 (international) and give the access code 3859521 approximately five minutes before the start of the call. Investors and analysts will need the name of the call ("Scripps earnings call") to be granted access. The public is granted access to the conference call on a listen-only basis.

A replay line will be open from 12:30 p.m. Eastern timeFeb. 26 until midnight March 12. The domestic number to access the replay is (866) 207-1041 and the international number is (402) 970-0847. The access code for both numbers is 6145550.

A replay of the conference call will be archived and available online for an extended period of time following the call. To access the audio replay, visit http://ir.scripps.com/approximately four hours after the call, and the link can be found on that page under "audio/video links."

Forward-looking statements
This document contains certain forward-looking statements related to the company's businesses that are based on management's current expectations. Forward-looking statements are subject to certain risks, trends and uncertainties, including changes in advertising demand and other economic conditions that could cause actual results to differ materially from the expectations expressed in forward-looking statements. Such forward-looking statements are made as of the date of this document and should be evaluated with the understanding of their inherent uncertainty. A detailed discussion of principal risks and uncertainties, including those engendered by the COVID-19 pandemic, that may cause actual results and events to differ materially from such forward-looking statements is included in the company's Form 10-K and Form 10-Q, on file with the SEC, in the section titled "Risk Factors." The company undertakes no obligation to publicly update any forward-looking statements to reflect events or circumstances after the date such statements are made.

About Scripps
The E.W. Scripps Company (NASDAQ: SSP) is a diversified media company focused on creating a better-informed world. As the nation's fourth-largest local TV broadcaster, Scripps serves communities with quality, objective local journalism and operates a portfolio of 61 stations in 41 markets. Scripps' national networks reach nearly every American through the news outlets Court TV and Newsy and popular entertainment brands ION, Bounce, Grit, Laff and Court TV Mystery. Scripps is the nation's largest holder of broadcast spectrum. Scripps runs an award-winning investigative reporting newsroom in Washington, D.C., and is the longtime steward of the Scripps National Spelling Bee. Founded in 1878, Scripps has held for decades to the motto, "Give light and the people will find their own way."

 

THE E.W. SCRIPPS COMPANY

RESULTS OF OPERATIONS




Three Months Ended
December 31,


Years Ended December 31,

(in thousands, except per share data)


2020


2019


2020


2019










Operating revenues


$

591,110



$

423,055



$

1,857,478



$

1,351,399


Segment, shared services and corporate expenses


(388,468)



(346,332)



(1,427,496)



(1,151,714)


Acquisition and related integration costs


(2,619)



(3,300)



(18,678)



(26,304)


Restructuring costs




(1,448)





(3,370)


Depreciation and amortization of intangible assets


(26,309)



(26,145)



(107,155)



(84,344)


Gains (losses), net on disposal of property and equipment


67



1,998



(661)



1,692


Operating expenses


(417,329)



(375,227)



(1,553,990)



(1,264,040)


Operating income


173,781



47,828



303,488



87,359


Interest expense


(22,810)



(27,120)



(92,994)



(80,596)


Defined benefit pension plan expense


(1,075)



(1,746)



(4,388)



(6,953)


Miscellaneous, net


1,864



(417)



2,914



1,194


Income from continuing operations before income taxes


151,760



18,545



209,020



1,004


Provision for income taxes


(37,459)



(5,602)



(55,456)



(2,917)


Income (loss) from continuing operations, net of tax


114,301



12,943



153,564



(1,913)


Income (loss) from discontinued operations, net of tax


130,366



(2,378)



115,769



(16,465)


Net income (loss)


244,667



10,565



269,333



(18,378)


Loss attributable to noncontrolling interest




(166)






Net income (loss) attributable to the shareholders of The E.W. Scripps Company


$

244,667



$

10,731



$

269,333



$

(18,378)


Net income (loss) per diluted share of common stock attributable to the shareholders of The E.W. Scripps Company:









  Income (loss) from continuing operations


$

1.35



$

0.16



$

1.83



$

(0.02)


  Income (loss) from discontinued operations


1.55



(0.03)



1.39



(0.20)


Net income (loss) per diluted share of common stock attributable to the shareholders of The E.W. Scripps Company


$

2.89



$

(0.13)



$

3.21



$

(0.23)











Diluted weighted-average shares outstanding


82,467



81,322



81,831



80,826



See notes to results of operations.

The sum of net income (loss) per share from continuing and discontinued operations may not equal the reported total net income (loss) per share as each is calculated independently.

 


Notes to Results of Operations

1. SEGMENT INFORMATION

We determine our business segments based upon our management and internal reporting structure, as well as the basis that our chief operating decision maker makes resource allocation decisions. We report our financial performance based on the following segments: Local Media, National Media, Other.

Our Local Media segment includes our 61 local broadcast stations and their related digital operations. It is comprised of 18 ABC affiliates, 11 NBC affiliates, nine CBS affiliates and four FOX affiliates. We also have 12 CW affiliates - four on full power stations and eight on multicast; two MyNetwork affiliates; three independent stations and 10 additional low power stations. Our Local Media segment earns revenue primarily from the sale of advertising to local, national and political advertisers and retransmission fees received from cable operators, telecommunication companies and satellite carriers. We also receive retransmission fees from over-the-top virtual MVPDs such as Hulu, YouTubeTV and AT&T Now.

Our National Media segment includes our collection of national brands. Our national media brands include Katz, Newsy, Triton and other national brands. These operations earn revenue primarily through the sale of advertising.

We allocate a portion of certain corporate costs and expenses, including information technology, certain employee benefits and shared services, to our business segments. The allocations are generally amounts agreed upon by management, which may differ from an arms-length amount. 

Our chief operating decision maker evaluates the operating performance of our business segments and makes decisions about the allocation of resources to our business segments using a measure called segment profit. Segment profit excludes interest, defined benefit pension plan expense, income taxes, depreciation and amortization, impairment charges, divested operating units, restructuring activities, investment results and certain other items that are included in net income (loss) determined in accordance with accounting principles generally accepted in the United States of America.

Information regarding our business segments is as follows:



Three Months Ended
December 31,




Years Ended December 31,



(in thousands)


2020


2019


Change


2020


2019


Change














Segment operating revenues:













Local Media


$

473,072



$

330,311



43.2

%


$

1,475,392



$

1,022,805



44.2

%

National Media


117,383



91,737



28.0

%


378,218



323,674



16.9

%

Other


655



1,007



(35.0)

%


3,868



4,920



(21.4)

%

Total operating revenues


$

591,110



$

423,055



39.7

%


$

1,857,478



$

1,351,399



37.4

%














Segment profit (loss):













Local Media


$

198,600



$

79,705





$

431,398



$

217,885



98.0

%

National Media


22,659



11,752



92.8

%


62,538



43,166



44.9

%

Other


(1,564)



(769)





(3,196)



(3,957)



(19.2)

%

Shared services and corporate


(17,053)



(13,965)



22.1

%


(60,758)



(57,409)



5.8

%

Acquisition and related integration costs


(2,619)



(3,300)





(18,678)



(26,304)




Restructuring costs




(1,448)







(3,370)




Depreciation and amortization of intangible assets


(26,309)



(26,145)





(107,155)



(84,344)




Gains (losses), net on disposal of property and equipment


67



1,998





(661)



1,692




Interest expense


(22,810)



(27,120)





(92,994)



(80,596)




Defined benefit pension plan expense


(1,075)



(1,746)





(4,388)



(6,953)




Miscellaneous, net


1,864



(417)





2,914



1,194




Income from continuing operations before income taxes


$

151,760



$

18,545





$

209,020



$

1,004




Operating results for our Local Media segment were as follows:



Three Months Ended
December 31,




Years Ended December 31,



(in thousands)


2020


2019


Change


2020


2019


Change














Segment operating revenues:













Core advertising


$

180,778



$

198,519



(8.9)

%


$

609,537



$

599,870



1.6

%

Political


138,220



15,230





266,683



23,263




Retransmission


149,979



110,695



35.5

%


581,514



382,710



51.9

%

Other


4,095



5,867



(30.2)

%


17,658



16,962



4.1

%

Total operating revenues


473,072



330,311



43.2

%


1,475,392



1,022,805



44.2

%

Segment costs and expenses:













Employee compensation and benefits


121,598



114,133



6.5

%


447,669



363,801



23.1

%

Programming


102,090



83,960



21.6

%


405,604



276,784



46.5

%

Other expenses


50,784



52,513



(3.3)

%


190,721



164,335



16.1

%

Total costs and expenses


274,472



250,606



9.5

%


1,043,994



804,920



29.7

%

Segment profit


$

198,600



$

79,705





$

431,398



$

217,885



98.0

%

Operating results for National Media segment were as follows:



Three Months Ended
December 31,




Years Ended December 31,



(in thousands)


2020


2019


Change


2020


2019


Change














Segment operating revenues:













Katz


$

75,885



$

64,589



17.5

%


$

257,487



$

227,035



13.4

%

Newsy


16,834



13,307



26.5

%


51,461



43,025



19.6

%

Triton


13,398



10,670



25.6

%


45,617



41,065



11.1

%

Other


11,266



3,171





23,653



12,549



88.5

%

Total operating revenues


117,383



91,737



28.0

%


378,218



323,674



16.9

%

Segment costs and expenses:













Employee compensation and benefits


20,510



16,316



25.7

%


72,149



64,261



12.3

%

Programming


33,780



36,463



(7.4)

%


125,122



121,669



2.8

%

Other expenses


40,434



27,206



48.6

%


118,409



94,578



25.2

%

Total costs and expenses


94,724



79,985



18.4

%


315,680



280,508



12.5

%

Segment profit


$

22,659



$

11,752



92.8

%


$

62,538



$

43,166



44.9

%

 

2. CONDENSED CONSOLIDATED BALANCE SHEETS



As of December 31,

(in thousands)


2020


2019






ASSETS





Current assets:





Cash and cash equivalents


$

576,021



$

32,968


Cash restricted for pending acquisition


1,050,000




Other current assets


468,164



509,683


Assets of discontinued operations




101,266


Total current assets


2,094,185



643,917


Investments


14,404



8,375


Property and equipment


343,920



370,378


Operating lease right-of-use assets


51,471



128,192


Goodwill


1,203,212



1,224,679


Other intangible assets


975,444



1,060,675


Programming (less current portion)


138,701



96,256


Deferred income taxes




12,306


Miscellaneous


38,049



17,079


TOTAL ASSETS


$

4,859,386



$

3,561,857







LIABILITIES AND EQUITY





Current liabilities:





Accounts payable


$

68,139



$

28,441


Unearned revenue


14,101



10,704


Current portion of long-term debt


10,612



10,612


Accrued expenses and other current liabilities


265,604



239,548


Liabilities of discontinued operations




22,727


Total current liabilities


358,456



312,032


Long-term debt (less current portion)


2,923,359



1,904,418


Other liabilities (less current portion)


414,306



447,472


Total equity


1,163,265



897,935


TOTAL LIABILITIES AND EQUITY


$

4,859,386



$

3,561,857


 

3. EARNINGS PER SHARE ("EPS")

Unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as our RSUs, are considered participating securities for purposes of calculating EPS. Under the two-class method, we allocate a portion of net income to these participating securities and therefore exclude that income from the calculation of EPS for common stock. We do not allocate losses to the participating securities.

The following table presents information about basic and diluted weighted-average shares outstanding:



Three Months Ended
December 31,


Years Ended December 31,

(in thousands)


2020


2019


2020


2019










Numerator (for basic and diluted earnings per share)









Income (loss) from continuing operations, net of tax


$

114,301



$

12,943



$

153,564



$

(1,913)


Loss attributable to noncontrolling interest




166






Less income allocated to RSUs


(3,052)



(215)



(3,711)




Numerator for basic and diluted earnings per share from continuing operations attributable to the shareholders of The E.W. Scripps Company


$

111,249



$

12,894



$

149,853



$

(1,913)


Denominator









Basic weighted-average shares outstanding


81,650



80,927



81,418



80,826


Effective of dilutive securities:









Stock options and restricted stock units


817



395



413




Diluted weighted-average shares outstanding


82,467



81,322



81,831



80,826


 

ADJUSTED COMBINED SUPPLEMENTAL INFORMATION

Due to the effect that the ION acquisition and WPIX television station disposition has on our segment operating results, and to provide meaningful period over period comparisons, we are presenting supplemental non-GAAP (Generally Accepted Accounting Principles) information for 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 impact from the acquired ION 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 National Media segment. Similarly, WPIX's historical revenue, employee compensation and benefits, programming and other expenses have been subtracted, as of the earliest period presented, from 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 as of the earliest period presented.

Effective with the January 7, 2021 close of the ION acquisition, we also realigned the Company's internal reporting structure and changed the reporting of our businesses' operating results to reflect this new structure. Under the new structure, our operating results will be reported under Local Media, Scripps Networks and Other segment captions. The Scripps Networks segment is comprised of the ION national network, the Katz multicast networks and the Newsy national news network. Our Triton business and other national businesses that were previously reported in our National Media segment will be aggregated with our remaining business activities in the Other segment caption. 

Management uses the adjusted combined non-GAAP supplemental information for purposes of evaluating the Company's segment results. 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 and Scripps Networks results across historical periods and providing a focus on the underlying ongoing operating performance of our segments.

The company uses the adjusted combined non-GAAP supplemental information to supplement the financial information presented on a 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 acquisition of ION or sale of WPIX had occurred on January 1, 2019. 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.

Local Media adjusted combined segment profit



2020


2019

(in thousands)


Q1


Q2


Q3


Q4


Total


Total














Segment operating revenues:













Core advertising


$

148,712



$

108,981



$

141,201



$

169,731



$

568,625



$

683,076


Political


17,890



13,144



96,355



137,438



264,827



23,923


Retransmission and carriage fees


135,590



141,218



151,233



150,775



578,816



440,414


Other


3,585



3,150



2,650



2,937



12,322



19,045


Total operating revenues


305,777



266,493



391,439



460,881



1,424,590



1,166,458


Segment costs and expenses:













Employee compensation and benefits


103,113



95,080



103,435



112,994



414,622



409,019


Programming


99,403



98,380



97,160



99,441



394,384



320,650


Other expenses


46,683



36,457



41,773



46,142



171,055



185,675


Total costs and expenses


249,199



229,917



242,368



258,577



980,061



915,344


Segment profit


$

56,578



$

36,576



$

149,071



$

202,304



$

444,529



$

251,114


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 following the sale of WPIX.



2020


2019

(in thousands)


Q1


Q2


Q3


Q4


Total


Total














Local Media operating revenues, as reported


$

321,804



$

276,747



$

403,769



$

473,072



$

1,475,392



$

1,022,805


WPIX disposition


(19,156)



(13,451)



(15,563)



(15,477)



(63,647)



(97,633)


Intersegment Katz carriage agreements revenue


3,129



3,197



3,233



3,286



12,845



10,229


Cordillera TV stations acquisition












47,841


Nexstar-Tribune stations acquisition












195,264


Other revenue adjustments (1)












(12,048)


Local Media adjusted combined operating revenues


$

305,777



$

266,493



$

391,439



$

460,881



$

1,424,590



$

1,166,458


 



2020


2019

(in thousands)


Q1


Q2


Q3


Q4


Total


Total














Local Media segment profit, as reported


$

55,977



$

32,260



$

144,561



$

198,600



$

431,398



$

217,885


WPIX disposition


(2,528)



1,119



1,277



418



286



(7,837)


Intersegment Katz carriage agreements revenue


3,129



3,197



3,233



3,286



12,845



10,229


Cordillera TV stations acquisition












10,643


Nexstar-Tribune stations acquisition












32,242


Other revenue adjustments (1)












(12,048)


Local Media adjusted combined segment profit


$

56,578



$

36,576



$

149,071



$

202,304



$

444,529



$

251,114




(1)

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

 

Scripps Networks adjusted combined segment profit




2020


2019

(in thousands)


Q1


Q2


Q3


Q4


Total


Total














Total operating revenues


$

221,968



$

193,376



$

192,280



$

239,624



$

847,248



$

856,961


Segment costs and expenses:













Employee compensation and benefits


25,679



24,317



24,517



34,571



109,084



100,927


Programming


68,581



64,039



67,473



69,758



269,851



272,241


Other expenses


35,255



34,047



36,658



42,140



148,100



139,863


Total costs and expenses


129,515



122,403



128,648



146,469



527,035



513,031


Segment profit


$

92,453



$

70,973



$

63,632



$

93,155



$

320,213



$

343,930


 

Non-GAAP reconciliation

Below is a reconciliation of Scripps historical reported revenue and segment profit for its National Media segment to the adjusted combined revenue and adjusted combined segment profit for the Scripps Networks segment following the acquisition of ION.



2020


2019

(in thousands)


Q1


Q2


Q3


Q4


Total


Total














National Media operating revenues as reported


$

90,919



$

80,503



$

89,413



$

117,383



$

378,218



$

323,674


ION acquisition


145,213



126,724



119,455



146,780



538,172



586,901


Triton business realigned to other segment


(10,347)



(10,455)



(11,417)



(13,398)



(45,617)



(41,065)


Other National Media businesses realigned to other segment


(3,817)



(3,396)



(5,171)



(11,141)



(23,525)



(12,549)


Scripps Networks adjusted combined operating revenues


$

221,968



$

193,376



$

192,280



$

239,624



$

847,248



$

856,961


 



2020


2019

(in thousands)


Q1


Q2


Q3


Q4


Total


Total














National Media segment profit as reported


$

17,459



$

10,282



$

12,138



$

22,659



$

62,538



$

43,166


ION acquisition


82,484



68,820



60,139



80,446



291,889



328,345


Historical National Media businesses realigned to other segment


(4,361)



(4,932)



(5,412)



(6,664)



(21,369)



(17,677)


Intersegment Katz carriage agreements


(3,129)



(3,197)



(3,233)



(3,286)



(12,845)



(9,904)


Scripps Networks adjusted combined segment profit


$

92,453



$

70,973



$

63,632



$

93,155



$

320,213



$

343,930


 

View original content to download multimedia:http://www.prnewswire.com/news-releases/scripps-reports-fourth-quarter-2020-results-301236323.html

SOURCE The E.W. Scripps Company

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