NXST Nexstar Media

Joe Jaffoni Investor Relations
Perry Sook Chief Executive Officer
Tom Carter Chief Financial Officer
John Janedis Wolfe Research
Steven Cahall Wells Fargo
Zack Silver B. Riley
Aaron Watts Deutsche Bank
Bryan Kraft Deutsche Bank
Dan Kurnos Benchmark
Craig Huber Huber Research Partners
John Kornreich J.K. Media
Jim Goss Barrington Research
Call transcript
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Good day, and welcome to the Nexstar Media Group Second Quarter 2020 Results Call. Today's call is being recorded. I would now like to turn the conference over to Joe Jaffoni, Investor Relations. Please go ahead, sir.

Joe Jaffoni

Thank you, Anna, and welcome, everyone. read the harbor actual to we'll after want to get presentation. just the language, safe which I All statements may and Private conference statements call comments the Securities made by than for of of management Litigation statements Reform historical XXXX. of fact purposes be Act forward-looking other deemed the during this the are call. Nexstar results from materially to statements risks forward-looking made uncertainties the subject by during statements cautions that these that and differ those to forward-looking may actual reflected cause

or uncertainties, and December please Nexstar's For Nexstar's additional no the risks that, to details CEO, otherwise. update my revise pleasure any for President, call Nexstar and please ended these on conference now go With ahead. obligation of statements, report year subsequent Securities forward-looking as or XX-K events a undertakes XX, see Form Commission. it's turn whether the to Sook. Perry, and result Chairman, on annual and your Nexstar Exchange over Perry to host, future new filings information, the with XXXX,

Perry Sook

Joseph, good second joining record Thank to everyone. us and morning, you Nexstar's for results all review today. quarter you, Thank

work this we strong sheet And to viewers tireless to commitment results and intact. time. throughout other balance I get preparation, acknowledge essential to reflect Nexstar efforts team quarterly the to and and employee planning Nexstar challenges local that despite As team's services pandemic members say proud again our has employees, continuous frontline record recent commitment markets With I'm their unrest. to kept flexibility civil our the our want Nation provide roster our access with and and for and users the to started, and news by presented our

quarter cash reflects such resulted morning. of call as rise onset our business is expectations. above new of pandemic, metrics strategies year-over-year execution, Financial in our our the XX% in second programs always, revenue The as me and and with net scale quarter business at cost all of our and diversification, results this revenue of in industry-leading Officer, well flow Chief increase new-to-television growth distribution As television same solid containment record rapid year-over-year fee the on drove Nexstar's shares in adoption well markets as revenues. Carter, the Tom strong advertising XX% spending our political station in we our consensus a total increases in second with as

operating second flow, As flow disciplines despite and increase pressures related respectively, XX%, the adjusted and top-line cash such, XXX%, net resulted a to basis. in metrics year-over-year economic on a quarter and and broadcast pandemic, EBITDA free management XX% record growing and the income Nexstar's in those XX.X% cash expense growth net with

enterprise $XXX challenges the free business continues economic for of about focus and world every XX% net to by flow cash of on address wide and brought the model operations dollar strength our the pandemic, As us managing on enabled before the way cash to health approximately million bring the By we revenue to the of of a generated million generated line. free of flow transaction XXXX. of year-to-date cash has expenses. all comparison, period, flow free cash of Nexstar in total free flow In onetime $XXX

outstanding. repurchases growth to approximately benefit in count of million share remains QX, upcoming spending the our our the made strong reduced back year. political before have So of the momentum half we Reflecting XX.X even shares in

cash the flow quarter year-to-date $XX.XX per confident XXXX in flow remain And to significant this again year. in free again environment amounts we positioning our unique per about QX share current to generate cash share. So and free of in in this

pandemic. expected be our political to remember fee from revenue which to advertising by not approximately is that Speaking annual of of full is and revenue, the contractual it's expected XXXX, to year derived the be important XX% materially distribution impacted

hall subscribers Nexstar as has Nexstar multiyear of approximately new approximately and December delivering $XXX of XXXX in navigate pandemic core facility. retransmission of visibility leading evolving credit long-term regional critical as online. virus. this and serving contractual network to million agreements content viewers, $XXX consent affiliation operate, by information another balance stations of completed successfully the communities time, air our our XX well we the solid on year-end presented regard, and the the under where has same In continually with value representing terms on our meetings new XX% economics We NBC. town of our whether XXXX other million and responses distribution or state to in revolving at based through access as through news including as sheet, strong a we CBS, with addressing contracts produced cash challenges by an local Fox, separate June At Nexstar XX, Specifically, have to

information, of different over changed recent relations related local and the Additionally, and XX programs to Americans, media strength in habits that local while essential for local been Nexstar never the brands. pandemic in broadcast content With television, our leading it's showcase has generated more Nexstar's news civil consumption our communities. has inherent consumers' unrest race ways and

XXX% the April, April, television According and XX%, XXX% year-over-year with XXX%, monthly powerful remained their in billion as average million. states users of began and year-over-year weekly websites news in grew among XX% total May increases the to localities on turning X.X to the Nielsen second most trusted high, and are Similarly, and XX XX mobile the views adults in to voice June country, broadcast up into impressively stations' local viewership apps local As to than evening front, with in ever and Nexstar's respectively. in aged data, impressions digital quarter, newscasts people cumulative by more to reopen before. even XX page

strong to the weekday XX% page and XX%, with compared and local continue our June weekend to the year. prior across websites month We traffic generate respectively, quarter audiences view the throughout digital up during of

Nexstar's news and the by unique of June all we're XX ranked and the news, comScore. users, of terms digital in number in one number all XX in in in domestically number local as information site over properties Additionally, measured country

essential programming, users and news communities proprietary United local news is of content and across to provides producer largest unique relevant States. we Nexstar's local the information nation's serve the of viewers that the and each to As

on With local to ever, most resolves. and see politicians, Now as platforms broadcast rely advertisers about record to effective stay spending the economy viewers influential for and medium television allocate expect to everything digital and stations both of informed to our latest to market-leading local we increased reopening reach and brands more and the news broadcast being the election. the threat of than from continuing sites, developments, and the the upcoming pandemic national deep Nexstar's

$XX.X Turning million some to of television XX.X% core back million, to revenue increased Total advertising second million. $XXX.X quarter political revenue advertising including and revenue highlights. $XXX.X of

performance to our rise television sequential first local basis. the million same-station new national over new both improvement second revenue of While core local the $XX.X month-over-month television with X.X% marketplace teams revenue, to new advertising continuing total, sales and quarter, to business period. sequential a second quarterly ad May, to in quarter July. media continue of April sales revenue generated In advertisers trend from a and XX.X% year-over-year over adapted plans on marking comparable rising rise and initiatives levels quarter generate in the their our this Nexstar's June, May challenges, saw to we during quarter, from Notwithstanding second and healthy XXXX

ability and in upcoming the locally. at our QX new by for bodes of Both very of of ongoing generated deployment proven levels healthy mentioned performance the $XX.X education quarter I with sharing of spend to despite strategies, in expectations well have focused XXXX both business revenue political recorded our sales candidates and fundraising, We practices As cancellation levels outset some political and spending political digital in effective primaries. combined ad early from share the call, of second best trajectory. our campaigns action which revenue of with broadcast training, our from exceeding initiatives presidential million, our our of recently committees record quarter capture

full renewals total year inclusion distribution of and in America in range expectation $XXX.X Recent I'm As net XXXX WGN political XX% million, the million unchanged. the of in representing revenue a to revenue. for distribution rise such, XX% a net remains second agreement low our nearly sorry, $XXX XX% revenue resulted quarter

our the realization quarter also of $XXX.X comparable in over quarter Second of inclusion by $X.X or in reflecting to period the approximately approximately XX%, half the substantially profitable XX% million consent rose up and distribution million Media year declined rose revenues, period. second higher-margin the on second synergies new operations second of revenue of up period fee our quarter prior digital ago focus revenue app total quarterly prior retransmission and Total XX.X% website acquired the XXXX engagement year-over-year reached in combined and year clauses XX% revenue and The digital WGN was year profitability of our XXXX noted, mobile our the as in as contracts after over digital the while comprised distribution and reflects revenue increase agreements America. related significantly. Tribune from

the balance of of December net and our through XXXX, over for retransmission completed With the and network this remain our are contracted agreements range, four to CBS, retrans seeing. and representing spending of big as December the mid-teens subscriber expectations renewed affiliations approximately be XXXX affiliations result, complement of unchanged our big will affiliation Our XXXX political XX, year over base Fox, our retrans with consent approximately a in growth significant the growth of net through of second base, growth that revenue successful XX% we're the percentage renewal in the reflecting NBC strong contracted XX% XXXX. XX% of with agreements for long-term and four XXXX our half in new are year, XX, XX%

affiliation new in and together, forecast. our retrans renewals, that contracts agreements, OTT levels Taken the also our sub line remain include with which

our net expectations clear growth revenue for XXXX retrans We have pretty beyond. visibility and in

market. onset commercial on our As call, immediate U.S. impact adapt last we on the the at took business we pandemic, the address the of to economic the advertising to action discussed

$XX of and second which excess quarter resulted in We have expense levels. a from implemented cost-cutting budgeted initiatives, corporate in savings operating range of million

continuing spending. by recovery economic footprint about strongest benefit optimistic July all continues across exceeded live to pandemic demographics. And And signs we're to employment and levels of continues pattern quarter, indicators, data of third political present, the return generate commercial expect ad encouraged levels our of same cautiously seeing increased improvement spending. and to of ahead all month-over-month as to key we're advertising, Overall, of the at our that sports the including and programming our the significantly viewership sports, from fact, impact across our while billing data political by of of QX. live station Looking in in and pacing news consumer we're

Nation, News product proceeding newscast the for XX very and will first impressions America's the which launch preparations and Additionally, September national on country of rehearsals one now are on across positive. in the We're of are households reach WGN schedule approximately primetime my million budget.

daily from local, interest News the newsrooms local leading Nation strong cost much X,XXX Americans unbiased, attracting points before news and there will reporting X:XX the seeking p.m. anchor across ever journalists will than fact regional, just higher that. would advertisers impactful, for correspondence of more announced already country. from during p.m. to the are per XXX air our were expertise We're and Broadcast that we're quarter, national the than and on confident America. And normal that live we and X-hour ET for at XX:XX is national deliver and Nexstar's that national based, draw teams and primetime WGN newscast.

News News Nation's to News through producers addition diversification. nightly which will live soon hours monetization to news Now, Nation's the will In and app, create day Nation a and be reporters team another XX for opportunity of launched online newscast, deliver revenue

provide to managing liquidity from cash flexibility and capital cost always, our to of financial the our remain shareholder enhance pandemic. As actively support we to committed capital, generating as the our we returns structure, and flow, our emerge business free position

cash million toward dividends. During opportunistic debt operations and the share first in allocated repurchases, investments reduction, $XXX cash approximately XXXX, from half and we of

maintain including with at to to $XXX continues June our as balance credit million strong mentioned in XX, I Additionally, revolving facility. hand Nexstar $XXX million cash on sheet, a before, under additional access

resiliency unrivaled Tom? In has while created to every and decline our be quarter are rates, expense building close these distributions, reduced local expect pandemic to model let our year's of control supporting an of free XX% declared Carter financial over LIBOR that cycle free to while flow presidential our of the most our Tom in our cash what which year-end. With call and fixed our continue Over $X.XX update. marketing leading the net returns dividend for cash On balance to low maintaining in in company's for the to business contractual we Nexstar's the at which for remain confident summary, and last in flow costs revenues, strengthened approximately of year-to-date positive times industry, four continue by share our quarterly presented and to have With level, is well disciplines our new areas capital and return history, every projected platform business have June, the our was the our election cash positioning to increasing the the said, distribution platforms challenges sheet. we be network local of front, growing, growing late shareholders. our payout. we interest fee ahead historically me XXXX, in our XXX% positioned and biggest the optimizing growth, time, turn per variable and food third and review top-line, leverage Nexstar's

Tom Carter

and Perry, morning, Thanks, good everybody.

As Media the outlined legacy morning's and release, Tribune were acquired in on Nexstar from which XXXX. June actual stations, the and results six ended months September the XX, operations, three XX, this company's reflect XXXX, for results press

statement up total expense to sharp digital to from also reflecting Second and which, and core that, divested April a XXXX. period. to in agency Contribution decline was during results the food fee a month distributions station, a XX.X% On decline acquired also Same-station update advertising period second ownership the June quarter WGN actual trends start from down for in or anticipated and $XX company in an ended capital data, the in softer local forma while XX, XXXX. structure cash ending acquired quarters advertising revenue equity station balance our television distribution million pandemic subsequent on operating quarters, due the savings XX% flow points of investments. budgeted of XX%, onetime pandemic. the statement transaction X%, which basis Tribune transaction down With review revenue buying commercial and a operations June and and corporate approximately that Nexstar down revenue under levels the period revenues in in revenue. XXXX from quarter television guidance. website quarter month net quarter, incurred network income of due stake services same-station of to range the XX.X% on in month-over-month America implemented I'll the reflect June XX, of improvement was April excess six due and and the combined continuing in in approximately net is XXXX, The in from revenue of XX, core sheet May, the approximately on of was first three X% I'll in under the included Nexstar's both in comparable transaction equity offset and QX initiatives local income investments reflects after and revenue customer the legacy Tribune June. of is revenue statement distribution other investments pro XXXX, expenses were included to second COVID-XX from To cost-cutting in the from Nexstar's six All loss the same-station and the with income fee Nexstar related some advertising and impact provide full revenue in XX%, revenue, reflecting a growth to resulted May late impact of

the associated operations million operating of million, $XXX expense the full partial up a direct the revenue. reflecting growth Second distribution approximately $XXX Tribune were expense rising incremental year, primarily network the in our expenses of offset in affiliation from quarter with trade to quarter expenses prior station net as budgeted and

and to pandemic. expenses, over to expenses, $XX SG&A forma acquisition previously we initial $X.X million, When million, were $XX transaction expenses, XX% the the in Tribune expense the quarter By fixed provided was approximately comp related operating pro stock-based activities of the of Tribune were down of excluding year-over-year have comp the of million reduction and Corporate the in of due noncash came million been approximately station excluding synergies Second than million, of response $XXX recurring programming of expenses. Same-station which onetime had the from period approximately expenses inclusive quarter and million. realized. the expenses the call operations. in inclusive mentioned majority better the transaction $XX were Tribune onetime $XX.X of corporate synergies transaction guidance the end vast first approximately April,

Ongoing taxes operating a in paid approximately timing our be than $XX the guidance reimbursements $XX lower and to million. million $XX That million quarter QX. due the repack substantially $X $XX totaled Spectrum $XX of cash now Second transaction during $XX million capex variance capex $XX million million received were from will million totaled capex difference. quarter. approximately to FCC million of to and

reimbursed being As year. we over a reminder, fully the anticipate the of all course spectrum-related for capex

lower amounted compared obviously, debt quarter cash $XX up the last in to, was total $XX while interest expense due year, Second partially with to interest the increased associated million Tribune million, million increases XXXX, interest period the funding, $XX from rates. with same to million $XX expense offset in by

$XX expenses, free and reflect ownership synergies Second executed Food year our quarter and renewals deferred mentioned from broadcast related to network. taxes, distribution equity and cash approximately of million, of pre-transaction the before. agreement to second the exceeded transaction, adjusted in distributions tax million expectations Tribune cash I primarily consensus flow the XX% and EBITDA flow the flow of the TV $XXX as EBITDA of as realization half of $XXX million in $XXX free cash and million investments the in cash reflect growth-related Adjusted as well all

received the As recorded payment distributions year. quarterly a the reminder, with from during first a largest we Food on basis of each cash TV quarter

third quarter XXXX, anticipate distributions. of the Network recording in $XX million Food For we TV approximately

budgeted the savings expected the back with economy approximately QX cost brought million to environment. in and cost discretionary originally levels of to advertising the strengthening and online expect relative the prudently We are variable broadcasting $XX expenditures as

be run overhead exclusive meet third transaction the comp for be recurring $XX $XX to year. for corporate million $XXX of million will we full million and Noncash quarter is to will cash stock the the the decline rate project year. projected expenses year. for corporate For approximately cost will and for $X quarter we our Transaction remainder the overhead, comp entire and part approximately cash for the approximately $XX quarter, and million of guidance of easily the million approximately

cash taxes will are to operating entire million, be total. million cash $XXX and asset Nonoperating gains operating associated taxes now cash approximately the sales legal and year with in in quarter Third be will million. in $XXX taxes $XX now approximately approximately at settlements the on the come for estimated QX

on primetime expenditures should we're quarters, our be with capex proceeding come capital of one year. for America's can and approximately on million, expecting at prioritized related budget and national $XXX in We're maximum if Third the investment still maintain $XX environment, of WGN approximately until flexibility the quarter million late meaning News later entire required. the in the built current capex launch timing to newscast Nation September to certain

the $XXX in interest to million for rates. for expense million year, Nexstar's to expect quarter $XX savings full reflecting related third cash $XXX decline interest expense the million the and LIBOR we approximately to Finally,

June and notes, amount. with loans XX/XX/XXXX. debt March subordinated approximately at $X.X Total respectively. $X.X $XXX and Nexstar's XX XX at Turning million net at maturities at with series billion balance a billion million compared first Net term lien of limited approximated to senior $XXX sheet. two to at outstanding approximately billion billion one debt the at of $X.X XXXX and XXXX, $X.X for other XX, to is and was net debt billion net of $X.X purposes cash debt and consisted covenant the $X $X.X billion June of billion

year-end, was X.XX first which XX X.XX covenant lien lien X.XX is times. below compared approximately covenant at June to times well ratio first times Our our at of

lien reminder, approximately income As net a our first limits million. covenant cash $XXX

during prioritize retention Our immediate X.XX and return order was X.XX total In $XXX quarter pandemic, adopt the an to debt which million for the added business $XXX Nexstar current covenant, year-end. we June on compared through the to our approximately our debt. with to facility. a cash $XX to regard, we of the normalized covenant at cash as in this to At we position available lien aforementioned $XXX credit for environment under and to net XX, times same the operations. leverage million quarterly And dividend million at is is to shareholders the quarter, and second balance reminder, total X.XX preserve to onset $XX first actions cash million to only times continue of a success first our our long-term revolving Nexstar's end quarter cash our in took the times. company best At returned the liquidity million position as time, payments additional made approximately at

the in near improvement the advertising Year-to-date, of focus this the and including preliminary debt financial first through flexibility we dividend order $XXX managed initiatives, we third million of our and enhancing to During while capital million business cost toward environment, we approximately have in the repurchase. cash in $XXX shareholder our $XX million economic returns. challenging while have to environment, $XX in capital our payments optimize reduction, we move share million support structure, allocated commercial time, in in value-creating XXXX, sequential quarter. trends, position ongoing shareholder In continue and liquidity preservation to suggests actively half as on data

impacted XXXX. visibility the continued distribution over to in expected materially revenue our related which not levels we presidential on of what be growth expect ahead, annual be revenue to have year-over-year Looking excellent upcoming are we in and spending double-digit do XX% election, with to the by robust coronavirus,

the quarters. to free in cash and fourth be flow expect we positive third such, As

our payments, our vast level dividend reduced to by target total enjoy position reduction and four Nexstar committed a progress In our we in and year-end under flow continuing our already additional cash times of made in plan, capacity net remain leverage our XXXX. to the revolver. level strong has significant allocating confident cash free majority of toward leverage leverage addition, reduction reaching to we the with for

addition, half In will expense expense interest favorable the well in serve reduction of rate the second operating and savings capital rates, prioritization LIBOR XXXX. in related our allocation the also to us

we're result, our these in the our service challenge the our pandemic, results. liquidity the not a through confident plans As generating scale, liquidity we position and despite synergy move anticipate and ability leadership, and covenant debt operation flexibility, are summary, as year. times or do issues unprecedented to of through realization, challenging In

capital from leverage. cost maturity, ability of capital, in shape Our quickly and address a great structure is to

our addition, service and and local been to local national In our communities never advertisers has stronger.

value financial call. the our as Our we remarks visibility and to our significant and results, the it enhance other growth of Perry That these in in turn confident well ability for disciplines side for some before the have and back over concludes to areas the remain near-term review shareholder as in Q&A. the consistency closing now driven I'll pandemic. to on

Perry Sook

record well strength that positioned and confident reinforce much, programs, distribution we very that business what In platform in diversified hope several of the is resilience environment and comments scaled the of our in digital political growth levels Tom. differentiated continued this our stream Nexstar's revenue the our broadcast model. of including to are I the due projected Nexstar's XXXX. and leading here Thanks remain summary, fact local spending withstand factors, and to today to sales be

active free our we and flow, us management shareholder with that provide capital value In combined cash will balance cost structure terms believe initiatives. our both sheet of our creation continue with supporting our to of flexibility the allocation, financial

value control time with well our maintaining to costs the As top-line, a fixed proven balance the participate strategies core optimizing remain we in the highly strategies building is and after our and the your We Day. positive long-term and where entire of Nexstar we sheet. report Board extend recovery, And the shareholder of another enabling Nation, positioned and you focus, operating near-term have behalf for management interest, fully terms look and This communities today. in our much Election challenges forward to up in catching confident support, to team, creation. serving continued variable on combined us joining growth our close operations for is with and Nexstar result, thank our and Nexstar overcome with just of of and record you the very

let's to areas specific now open Operator? call So Q&A to interest. of address the your


Instructions] John from Research. first question Janedis And Wolfe we'll take [Operator our with

John Janedis

dayparts two Or is Perry, call too there's local seeing you noticeable for impact from growth spoke to? pandemic? I of been that line news the And then, read-through have is, that soon and terms advertising ratings you you. to you viewership. lag? I guess, relative the What sub in levels to One the given in are talked with about news given expectations. in the and the the Is no demand

Perry Sook

advertisers XX% that's is the the putting demand relates product where prior into of up news, first frequency. audience indicates, months is are revenue the cumulative Well, that year, total local increasing and their local and right where which over obviously, advertising Obviously, totals, came money for now. with us the from the is, increasing and audience six as through to it of that's this year's news, our

that reported for revenue the our say into I year. through we numbers. quarter. forecast all new are news into projections use read budget And will on of to attrition budgeting our are so again, hopeful I settles sticky to the tuning hate local in age so are it when and term gains, in be to do process, retrans at and normal far, we and increasing in and the groups sub broadcast the when people them end counts that attrition retrans audience is. see through. obviously, we projections have this But analysis as whatever continued I will and in Those least of some at normal this we're factored this mean, And through our is, revenue our MVPDs our

So beyond we significant forecasted. no had decline have we what seen

its distribution as So business from standpoint. we usual a revenue think

John Janedis

you much. very Thank


Cahall Our will Steven from next question come Fargo. with Wells

Steven Cahall

moving a per reverse Peacock. you declines basis accelerating. And those compensation Thanks. that's a like bit tone talk I sub as wondering are All going also content you if I'm does sub from at basis programming agreements it And we from a you like sorry, direct-to-consumer and sub broadcast a about fixed per CBS relatedly, where changing about of all. could little your the wondering Access make have more was to if fee think can.

So about households that subscribing monetizing how be do you the may those traditional process? think not through

Perry Sook

are say Sure. of revenue. networks percentages I fixed current distribution fee and of relationships would a mix with the the

some there are continuing that to of interest the both are fungible are that So conversations are not. what's get that a in parties best done. others deal those And that and

at the ball So ability. there this and not there point, on as based They is is. are call most what to hedge our some to the preferable we're term ready negotiating

the larger stream As news it part service, part of relates this be. not point, local part not be But not reach we if and sure an And there and stream reception cable that to is are where participate satellite a we quote affiliate, a device or way, want Peacock, XXX-plus that's as streams to us that are than few pay called there paid we a universe that any CBS that the a you at have without over-the-air cable viewers who universe. eyeballs our broadcast thing those far much they and news our competitors over-the-air, are in if their All that. and for is are about a to pay world to available in in we're We're of aid already use wired already, the Access, do which good a yet offering, of wall, will offering. will. that local that of XX% affiliate of we than potentially universe

we again, in are So flux.

into. for year through companies center to agreements will next early and We what's that lot and We of that's up XXXX have and both be will best end do the where a some this have 'XX. around conversations type of those enter nailed year, our down agreement of

Steven Cahall

comfortable what terms four political. minute kind the that on the don't expect this we on one Trump any do in negative spending a be of feel us the time. head of campaign got But there's ago, not just when not political going then from any expected. take I think years you side? at last happen of that surprises to And to was Great. spending

Perry Sook

I'll I'm now. in raised right packs that interest camps those pretty raised and supporting make groups there'll down of as in be candidates no the surprise mean, There ballot this attendant comfortable both advertising. guarantee as business, close no but as the have well political money is, as special candidates. amount that look I at are have on negative as a that guarantees

Steven Cahall

good a Thank pretty It's guarantee. you.


Riley. with our Zack now Silver B. next question We'll take from

Zack Silver

great. Thanks the taking question. for Okay,

narrative to July XXXX little one for streaming. improvement to first and and The growth TV the in sequential address Steven's in turn July? core or shift and been talk if play quantify is to out macro environment And just that related the The versus to to TV year-over-year in you so well you out? narrative broadly, more question. are total if ad bit about think a pro forma can XQ the has going does there accelerate from it's Can then is out streaming linear how even at change of I positioned has connected you dollars the that far

Perry Sook

in that, linear address that. if Tom, I but speak June Obviously, on to let saw to want Tom, you I'll only to to in entire don't quarter. how know any guidance. let versus get add but you improvement you July sequential details you I'll core ad want substantial not we the more trends

Tom Carter

Sure. better than second and a whole, the as of about than second July the better was month is, the substantially Well, I'll July quarter was say last think July I obviously, what quarter.

So things gotten have trend sequentially, QX. continues that better, into and early

Zack Silver

Got it.

Perry Sook

it content. to they've some they're it's at to all streaming about the become them As of sameness a services, and relates additional kind point,

that's have and It news If viewing to obviously that people want, you to consume through you to want the we're without an is or have demonstrated on. for. our through the that are pay that a public. people And or inferior willing be that's to service services, a you, is whether will offering pay streaming content service product they local over-the-air that a a find whether paid way

community. is It's it pay-TV by from about the a It's from transaction. universe, traditional nearly investor fragmenting the And the that. wire to taking sides at so at these a they a just virtual it the Is we're but streaming universe? And not lot think in be noisy just of level if noise both stand we'll perhaps investment universe level into I than it appears pay-TV less a that services. operating a so, are on that and

somewhat it. we're So about sanguine

We're that has time it test of XX the want. product the of It's country. last the of test news. we the local believe have called that in stand it for product time. as We years the largest will And a producer people

Zack Silver


that contemplate you does ratio in think more, any half? I one second resuming this the in And remind the could. us target the Does leverage for where repurchase buybacks makes And sense. Tom, I can I are for year if guess, program? we

Tom Carter

story way it won't think left about well. advertising just and of be Perry to future. it and being get I service of out rapidly strong, core We're that the as in We're Day, on probably not The honestly, was August is think will as Labor that's allocated doing Board. we political this anticipate that, transitioning there. fact we would and July a revenue not is stock during not-too-distant what's an does. say think the we how we buying revenue to happening very quite to authorization the pandemic mentioned, I way the repurchases. have from here stock, really about revisited but much starting It currently The

retransmission our stool going for and really October, perspective, political, the right that's the we budget quarter budget to strong, of stool actually is second the were the been November. then really around week other two here first mentioned, months hard were lit The year. of budget budget run from above to two on Perry and the quarter. distribution strong, Day for Labor legs September, the for We're third revenue second of as leg third get we're the the and regard continues leg for And on has the with revenues. for be to to that We're on candle we going is

of along and flow go the So from by the Day. nicely then cash cash will get continue political flow company turbocharged free free to beginning Labor around

to As yet, repaying and fully imagine We're other sometime attitude but I've right people, with not here I defense happens, see that from expect around there equation. I by capital million at to stock responsive, unnatural an would around sit the there then wouldn't looking what tell can you $XXX time, Day. that's repurchases, to our Tell playing offense Is playing on debt our cash when deploy is. change we actually of but from multi variable that and Labor said allocation I is We balance here what that and I'll a sheet. that me Zack? our stock appetite

Zack Silver

that's helpful. Yes,

Perry Sook

starting states. September We Tom's want folks in placing, Biden's one about just reading XX the morning those this comment of states. in woke I to add to Most operate he's operations XX about substantial XX on up that political. buy

first all of a results quarter good again, Day November. just political continue through what's that second above pretty Labor will of political the with think, that And out to will I So around on July point of crescendo yet that's reach being week to measure, for a come.

then story remain around And as our optionality that on Tom exercise balance currently exists the cash continues confident guidance. And think so political prove, I you'll that see our forward more in sheet. we to

Zack Silver

Thanks, Perry. it. Got


question our Aaron Watts now next We'll Deutsche Bank. with take from

Aaron Watts

in on related you terms ad have guys, there's fits affected of Hi you're given I behavior couple can questions the give And your of the on having What in that COVID on. for auto in category, first, starts what pockets the how months? the in markets us is thanks terms in been note, some auto that guess that? guess, and country. of of of I in just the of been up rebound me Couple and by terms categories, environment. of cases [Technical next anything importance expecting a shaping from Difficulty]

Perry Sook

seeing QX down. were shut market they But rebounded. did the We're has for cars, primarily think pacing on OEMs better based We're seeing that's better than Yes. will of the down that the I going sequentially and in auto the and most Auto left in will some of our it foreign core around QX dealers advertising. nameplates. be whole, move to certain when as on have market from results where money are of expectations affected forward we

our meant little know we're affected I markets. company a I you on you related or color didn't can the it to in how seeing both. COVID, if But As it what give

the they the XXX to the recovered. employees that since We We've only assigned. XX,XXX which XX% of are the out pandemic, have our of had confirmed the facility from of community. fully company beginning a About of had out and cases that workforce that people in person about that has working remarkably are are one in hospitalization, of

the XX% are XX% We And in have to crews their work. that reporting Reporters field use of things I with that meeting sort. that but work, remotely. facility. we to are another everybody Board another not example And working assignment that in have Topeka reporting necessarily and their is the in to the go first to our

of offices However, safe, there's because feel York and nobody mandate requirements, they our New certainly populating is don't transportation public the and that. to no do

and to on, that like going us with. of not than are have no big a restaurants been reopening. the I rolled category further that There of vice is every would keep driving that reopening. where stages some market kind sub-X% necessarily more country. in our some some all our tabs category spend advertising pauses We seeing to that's and that is tourism that. to proxy by markets various materially of have you're intrastate versa on ads so bars back, and and to we categories be are for see Oklahoma, in Arkansas to say a degree reopening not have some There And we're others. with Hospitality speak been But Texas begin for continues as us others and Texas California some come of Areas if of hospitality is of. top-line.

that's if kind to follow-up. looking of know I'm but more answer you the for, happy don't any I Aaron, were flavor So specific

Aaron Watts

I appreciate That's for No. one the last One time and helpful. me, again.

pie. to revenue potential pie? college revenues spoke football the in to how If about that we're and football ad happen to do in or your of NFL to the doesn't thinking overall the the that potential local could we think it that and what come news about the important attached fall, delayed mean the You is revenue that maybe flow-through

Perry Sook

we Sure. And live. I'm is that, station comprises interesting It's the comprises XX%. sports of local asked All of glad you level, XX% revenue. where about which our that. NFL of the that at XX% advertising about

numbers, NFL say in just is of let's support that. that XX% real of our is revenue X% and of half ad revenue round So

talking we're about So three points of revenue.

view, promotional of of perspective, advertising outsized an And ability. sports sports not from effect people's material distributors not because our get all an of a It's financial that bottom-line. or and to pure that's local it's on very viewership. of live would from local. I national So sports because in in say not interested are contributor, local big But and that point advertising but the all limited avails know on on top the a that or drive televised on all psyche Obviously, viewership, sports obviously, live has news stations live they it morale. the of

Aaron Watts

stay for what well Okay, guys. looking perfect. I'm That's exactly

Perry Sook

Thank you.


next Kraft Bryan with question from Our be Bank. Deutsche will

Bryan Kraft

had I two Hi. questions.

they see give you're some your lift News industry. and you And advertising you to to terms incremental subscriber reception from color seeing on us distributor wondering compare of Nation? color any First, might expectations declines markets. could how overall Curious if And when Nation? in in for what any revenue some on News the

Perry Sook

about read you let GN. subscriber, the I'll How's and I'll Tom, talk then to that? that

Tom Carter

loss are but certainly mentioned, and are second the the the a obviously, all process and for line say we than expectation. that with basically the of rate for Perry subscribers experience our not our in and for with virtual subscribers had would still recouped, mentioned, we an that is MVPD, rate different as subscriber from we quarter is the factor that materially as and vMVPDs. in, Obviously, quarter for third MVPDs. an consistent recouped attrition our was in not budgeting the uplift process unit our so And revenue guidance somewhat that getting returns in traditional early virtual I MVPD Sure. by they

that the a feel economics that So into us I rate same specific the numbers,etc. but got it's different It's say little are see and that that not distributors getting just our because offset we expectations. helps thing subscriber would do. bit with that decline we've consistent our

Perry Sook

have in with year. team have to do primarily those relates have we renewals and America, legacy business her already we of it that's WGN America, Nexstar out which and the had been Dana As we every now Zimmer WGN also and presenting the and that do MVPD America and WGN not to with an opportunity WGN markets, end carry between and

no so that for cost And say systems, and from have agreement. the additional distributors particularly but the positive, contracts reception existing current been WGN of was there has that additional upside smaller would realize there's relationship, XXX,XXX who from where term no included there there. has is America, XXX,XXX add value-add during WGN those that are incremental These America. would relationship to approximately Nexstar a subs an have For Tribune again, could the going I

on are now. We AT&T distributed

MVPD is virtual only offering the As service that WGN America.

reception we're distribution distributed. as other positive that But to are distribution the the and WGN their in We from will value thereafter or the community product and to get will is a add investing because has a currently both launch community OTT been that businesses be efforting well. services, at America on not shortly advertising where add, value the

Bryan Kraft

thanks. Great,

Tom Carter


Bryan Kraft

Tom. Thanks,


Kurnos from We'll question next with take Benchmark. Dan our

Dan Kurnos

opportunity. about thinking self-funding. morning. strong it's and News on impact Is relative to sub Nation about or, itself know carriage for advertising of left I you're with think comment the questions. be guess know Thanks, all I'll you good kind ask I of to here way plans going to to your us and have pickings guess, Obviously, carriage. don't the follow-up to the ancillary sort prior, either We I color you're timing sort that after how the any Perry. expand it. But to Slim you on willing if prints of one good incremental there

your lot kind of cots, So world, noise of the on boy fun help separately, the sort been of stuff. ad of And that of then thoughts there's Twitter, just obviously, digital that opportunity? Facebook, a all any in framing magnitude lately

are guys largest. the You

guys network digital you You that yourselves. pretty bucket? think Is a the benefit strong in portfolio stays mostly big do have digital effect and guys? pretty accrued Or a you any to there

Perry Sook

week we impressed of what that names Rodham I in say, cost assembling excess and for Blue-chip WGN sales programming XX% alone. that America's are done of to standard I'm cost the I'm and the job per Dave points sorry, per I'll have greater America. have should of The excess in WGN speak advertisers his with first Premier News team very at that Nation. than in are generating was thousands

So primetime a very Nation to rework the that's some initial positive of offering. trying We're existing buys indication. the News into

and And think, more that impact XX of WGN of end of one year. the year, year. so at a be end four conditions, will reported, uplift potential million America Nielsen the I this that And expect impact it, to the incremental of end be we scope months the the really call low in X-figure this an X-figure so what be a size gross break. revenue And wouldn't these could deemed revenue do, a will now would again, base. been the subscriber uplift deals of of material. And to or operation, I the year. and scatter subscribers have even done quarter anticipate But do use XXXX of that let's But come majority you're we the in again, there. distribution already low given revenue million some to is launch we said, that of that talking the contribution between ad a an But felt mostly vast would say than million in upfront market in XXXX. fourth to incremental, X.XX will all on There WGN's

it's even of that we to own. is But is drive what that incremental. and out So assets incremental, that's do going incremental the all growth we're

Dan Kurnos

Facebook, of political, pick or core you if in to if as could relates Twitter either thoughts the then some that the digital on it that bucket stays up? And

Perry Sook

I the Listen, one-way to be certain and without is most direct rallies money platforms think And transfer Yes. that refusing provide fund, ads, political. cash fund television. those has to are to conventions If the could people somewhere. go in people of to to reach without

I think now. we're seeing an that right evidence of

the in think and probably all don't platforms. of revenue transfer. I performance decline would I boycotts direct So substantial that a be digital on you've seen all that, With the think those

in So taking and at a think get than outside best this regulated. transfer we'll point, knowledge, companies this the way minimal. the I the of financial with But is our symmetrically look at damage government to is the of more more how point, we're regulating and reputational financial, wants potentially these deep to then the see involved political,

Dan Kurnos

color. for Thanks helpful. Super next the the it. Got In quarter.

Perry Sook



Huber Our Huber Research next from with will question come Craig Partners.

Craig Huber

X.X% year-over-year. down your you Yes, guys I quarter, good retrans morning. said conference X%, you. Last believe Thank your Few questions. call, subs were on

worse quarter on virtual Sinclair the you the you their I second may that the Should about before know, guys benefit that the X% right quarter first call in you reasonable? subs were down roughly for X%, on including Slightly As Is quarter? said were side. assume yourselves? down second the for guys about

Tom Carter

No. No.

Craig Huber

a it's So Or help I just that assume better little me you understand can your... than bit then?

Tom Carter

say consistent quarter. it's would more the I with second

Craig Huber

more consistent sorry, X.X%? quarter, it was with first I'm down quarter X%, you mean the second The

Tom Carter

exact it's announced, not say Craig, Oh, I'm wouldn't said closer the But first I'm to I quarter's give previous you're X% quarter. down down already the results. it's but no, not first sorry, with quarter, number. what It's I've X%. going we to the right, that.

Craig Huber

month I you there decline Can the your August, that advertising those say better TV of tracking you that what help than you the to be? turned rate Okay. your are better, that pacing's appreciate what core us that. July advertising would just tracking for for of out is

Tom Carter

a any I in very little few to it's I'm that. with too August thinking here. early making think comments we regard to it's days a little be have

Craig Huber

what or advertising of then in Okay. of help us just like... help us could for budgeting then Can quarter. third down the Can to you thinking you decline I'm be maybe rate core understand the that you're sort going maybe

Tom Carter

why giving right? to Craig, be not going we're I that's guidance, think It's down.

Craig Huber

us much down, would July Tell how if was would? what you July

Tom Carter

to And the every than told June I but to not again, was numbers, just it down going you, less XX% and if the we're July June was quarter less within going revenue. better, obviously, than down That's specific think I it's XX%. of give June. June. entire the give forward-looking of it kind was, then got was July was clearly, to down less extent If less second math. I'm guidance down specific relates quarter down month than advertising that the as was And

Craig Huber

Maybe this change going a question seen In core weeks, the may on in significant worse any in been several ask then. here this virus markets? the dramatically you the gotten in advertising Okay. have virus about? TV material there, that's talk Has I those where in another situation cases can the states that out there guys you change last have

Perry Sook

markets evidence be we in our one in our I substantially hearing in results in cases XXX from, say, in put we I numbers be second then to that state. to cases in, cases XX%, these reported don't at operate and which and again, up August where have July and would got we than performed So in into look and all all second context, those you mean, you've pacing and quarter. pacing across have to exited to look XXX I you're no. states but is you've right? just that better The September, in you our quarter Texas of a mean, to got could in And news might No. area that be be gone might

I is their just QSR, numbers, said mints to is So drive math, not don't down. any and continues this. but money Tom in Hospitality as lot get proof the from a making they're I We of just the it's have Auto unless seen restaurants through. and through think it's improving. we says, be

not and better our others, we This pausing being morning, have So we things at even kind we're improvements. worst-case than our markets. steadily seeing is don't that's open we're dealing And scenario in are that. opening of in with the they and reopen of those from are up New steady can and things, aftermath and some And those all, the more into storms are Virginia going Coast Pennsylvania, temporary disruptors Carolinas East than of into the and businesses the to flooding up to until and be York kinds of pandemic.

you've all themselves. states add to but country, than usual other results it got for and we business in things, speak deal together, as deal situational it's so there's nothing and and we think across is the the the with And XX way I

Craig Huber

a benefit third And may help us guys, trends front, bit your you you But here savings for there figure quarter? in XX%. the could budget quarter for cost down cost to about second I the forma that the my pro the just what more versus third last you little but about the the second on at your from not in that be a should quarter second? think quarter, a December know X. question, talked quarter we third the little us sort costs Can about cost give costs think you how bit you to of guys if in gave

Tom Carter

I of obviously, overperformed we those which costs obviously, as $XX to that, some is understand variable fact starts other to million those second number in third takeout's question as we had up. don't we really $XX costs the return, the on. That the the believe guided quarter go than quarter, million cost in advertising are which we same for

that we add are of Some in. them will discretionary back

have quarter we any in second did than quarter. the the than third we did. basically will more traveled travel We second couldn't We in less the quarter in

specifically, the have in, but you're offset will be in it relates looking costs But Tribune added occurred. discretionary will the the back advertising revenues get higher to of year-over-year, transaction of by out if taken some more majority second the So than as quarter. of the that synergies

of So that the the of QX expense won't you'll on pushes pulls change extent that's And the QX. coming materially over sequentially in, and but have some some expenses. QX, added back


our next with question take now Kornreich We'll John Media. J.K. from

John Kornreich

to you Tom, like lot a Having problems, that callable quickies. I be of Does people cold? were in hear not neighborhood. heard XX me. ago, likely two mean they're I think Internet two the I can and the hope bonds nothing. days

Tom Carter

flip in the the bit going near I we a switch a better obviously, on and XX days become another a John, allocation hopefully, feel XX little capital have the month to in be the we're be think that's start next Well, probably days, aggressive and able to actual days, on consistent again, take next we'll with will political think in obviously, our XXX in still the of term. aggressive making XX to to that core, to decisions in able but pretty message regard I more with to Day view coming conservative revenue the Labor last and that, same continue more with and

John Kornreich

forma. Secondly, did retrans that And year? correctly I this high Did mid-teens? I gross is guess mentioned net you're up pro on net hear XXs XXs, a for track retrans high you growth correctly gross mid-teens the that

Tom Carter

year, growth correct. exceeded that revenue is retrans this far has XX% our So

year. entire what exactly we We I is. have the the exceeded quarter XX% in growth have for first We in Well, budgeted mid-teens budgeted quarter. so But that. forget for far, yes. the retrans mid-teens second net for

John Kornreich


So year. are margins correct? a that down more for Is bit this net little retrans than

Tom Carter

say margin are of we've Tribune net little would our subscribers affiliates, of bit excess where we're is fair in that because retrans amount actually XX%. I included No. substantially a non-big a they're four that up

John Kornreich

Thank you very much.


And from now take Goss our Research. we'll question Jim next with Barrington

Jim Goss


there be Instructions] any happened the and there. that other goal of [Operator of increase, if seem heard? I During was proven terms. good of take usage tend broadcast that be in video in wondering a pandemic, early pretty I Not or the so sustainable I'm it. has in to didn't be But sure surge days will to or least and sampling at in didn't what or requested. categories Instructions] the might am a even otherwise [Operator sorry,

Tom Carter

Go Jim. ahead,

either the to trying record is or somebody think call. I exit

Jim Goss


any if wondering Sorry. role it has during any sustainable negotiations sampling your retrans period? dissipated? Did of usage proven play or in But anyway, that was the I of that increased and has a mostly

Perry Sook

up in half to year. the June it top comments of our we're April, report precious my in XX% I results the that did in XX in I XX the year. the the that We XXX%, would in first and was and retrans XX May, viewership, had highlighted XX% few Obviously, had on. pleased done say negotiations demographic. one over with earlier, prior We I

were month of page were prior the up X.X comparison, the billion That despite in up websites views, billion were XXX%. X.X our was digital year. excess the to Our local which compared in quarter of And XX% in for then April. June,

think, and is some increased to the content. also there and of local we there interest the COVID radio, in of local last is I coverage I news consider think and So ourselves fatigue, newspaper but diminution bastion be with news local

network in all Chicago, localism we but in the lead of So long think do Los every are dayparts, audience, this. producing The amazing doing of tail your own. kind in will you're local we're out that determine in how producing clay stickiness and large, to that Angeles generate in on numbers. and news is it's network execution and ranking to our to number dependent of that kinds on it much. independent newscast one turn And copious And continue that in record And people to WGN beating there just all But not you're to power by stations, results. O&Os lead particularly virtually by of gratified of your that those or newscast. speaks the amounts

Jim Goss

that, role you're be And news it so days. more original their to successful, The less of and to similar sort promotion maybe other the sustainable. was have something as a in I'm I the broaden fill about create think it be it's during yourself tended if of these some CNN you wondering occurred, the times. it way tend the like far. which the you tended you frame? when place it time position role partnered And seems efforts unbiased, if where newscast base coming to sort gather event where but Okay. for to And there's X-hour you wondering at this beyond the maybe something more to to one it that to Nation would last more to least normal for a proves gather go News targeting a also, little politically of visibility is era, And do that that an in thing. to would

Perry Sook

in Jim. I Well, CNN call. Obviously, anyone a started. there it do to There's thanks, and try this unpack. listening that here. best think don't with to lot I'll is how my

two had full-time that in about we in an that orations unconscious bias to We that I've in and discussions make on news CNN very networks. bias or the broadcast from reporting much a We rehearsals. as spirited top evening will and that news we've think opinion go doesn't but think for be is do of place staff staff and news based XX-minute in place the network nothing do that hole same check I even for unbiased our a news scripts today red a political writing, said we before, lean. have in

we For But have interest country newsrooms example, every police all their in in chief we've again, on the got place we've story divided to be in those got not to last zones, Colorado audience. did our else. a the exactly night And know is producers, and our see a job you'd we might national women up rehearsals, a into that's of Springs. first zones and what's story what in six and zone going those of on

as people think scenes in behind Los as seen all folks than the D.C., Miami, of we we've a the D.C. the view inside XXX New we the are Angeles, what's that and more for hired report exclusively also to addition well in America York, New perhaps the Chicago, correspondents Dallas, that production Beltway. In give can that based York, that network representative

acceptance now that, to So for And for now It's we think just on there's concept enthusiastic. and a a of us purpose there's has that very the been deliver. that. reason

the compete XXX the networks, power with, have As none annualized it's dedicated stations something to are later beginning television And promote value it across of you a able I this that relates harness Nation we basis, newscast approaching million. networks, $XXX of something secured to think, to and that Nexstar month. is basis the that date stations promotion, promotion be if the this look at the other to news will on day on specific a contributing

cable syndicated away on $XX only also media, for not outside of basis, We that change other expense, national to on we're to which younger app, are on networks point primarily a and at We're because an of the promotion radio. and on drive million annualized demographic in newscast. alternative investing social of layering top approximately goes but that an try because heavily just channel a advertising

are crawl, our nine And going fast in at of would best grow. want Obviously, in and will spending, so And promotion figure very contributions kind this that allow amount as drive our we're a successful, walk, to we company to counterprogramming of success for we run get this. as and for opportunity again, a it together, cash we to We will it us succeed we're are but effort. look taken asset success our to both much approach a dayparts, to and all the grow we there. another is taking other would right, if think hopefully primetime, do

strike alternative will product of reach and will I very resonate primetime So prospect programming opinion a and we'll introducing and continue. it core think advertiser at the that sports to I'd entertainment, the audience leave in but a and the that, an audience growth we're excited and with growth about

it in, September So tune launches X. on

Jim Goss

thank you. Okay,


that And Mr. conference today. to to session the for like does conclude our over I'd back turn question-and-answer

remarks. additional for or closing Sook any

Perry Sook

our very upon Again, progress, we're operator. we're WGN America financial will launch and you, and us position, of pleased the about all excited thank pleased strong the Well, our that before advent with call. spending our political we're of that season the and be next

your to for this all look we much morning. time forward joining very you of with reporting back after Thanks on efforts. you us. to And the shortly early thank Election for results Day those So


you conclude does that again, Once today's thank conference. for all you We participation.

disconnect. You now may