EX-99.3 4 tgna-2019919xex993.htm EXHIBIT 99.3 Exhibit


Combined Historical Financial Data

Due to the effect that the Recent Acquisitions1 have on our financial results, we are presenting historical financial data for revenues and Adjusted EBITDA on a combined basis to provide more meaningful period over period comparisons of our financial results. The following tables set forth a summary of historical financial data for the six months ended June 30, 2019 and for the twelve months ended December 31, 2018 and interim quarterly data within those periods for TEGNA Inc. (the “Company”) on a combined basis giving effect to the Recent Acquisitions as if they were all completed on January 1, 2018. These amounts are not necessarily indicative of what our results would have been had we completed the acquisitions on January 1, 2018, nor is it reflective of our expected results of operations for any future periods. For example, revenues and Adjusted EBITDA amounts do not include any adjustments for expected synergies. The acquisitions of the WTOL/KWES broadcast stations and the multicast networks Justice Network and Quest occurred on January 2, 2019 and June 18, 2019, respectively. The as reported revenues and Adjusted EBITDA amounts presented below include the results of these acquisitions subsequent to their acquisition dates.

The summary of unaudited combined historical financial data is derived from the addition of information for the fiscal year ended December 31, 2018 contained in the Company’s financial data combined with the financial data for the Recent Acquisitions acquired for the year ended December 31, 2018 and for the six months ended June 30, 2019. This information is only a summary and we assume no responsibility for the accuracy or completeness of the information provided with respect to the Nexstar/Tribune Stations, the Dispatch Stations, or the other companies and businesses acquired pursuant to the Recent Acquisitions for periods prior to the completion of the acquisition of such company or business. Furthermore, the historical financial data for Combined Revenues and Combined Adjusted EBITDA 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.

Combined Adjusted EBITDA, a non-GAAP measure, is defined as net income from continuing operations attributable to the Company on a combined basis giving effect to the Recent Acquisitions as if they were completed as of January 1, 2018, as applicable, before (1) provision for income taxes, (2) interest expense, (3) equity income (loss) in unconsolidated investments, net, (4) other non-operating items, net, (5) severance expense, (6) acquisition-related costs, (7) spectrum repacking reimbursement and other, (8) depreciation and (9) amortization. Management and the Company’s Board of Directors use the Adjusted EBITDA non-GAAP measure for purposes of evaluating the Company’s performance. Furthermore, the Leadership Development and Compensation Committee of our Board of Directors uses such measure to evaluate management’s performance. The Company, therefore, believes that the use of this non-GAAP measure provides useful information to investors and other stakeholders by allowing them to view our business through the eyes of management and our board of directors, facilitating comparisons of results across historical periods and focus on the underlying ongoing operating performance of our business.


















______________________________
1 WBNS TV, Inc., the owner of WBNS-TV, the CBS broadcast affiliate in Columbus, OH; VideoIndiana, Inc., the owner of WTHR, the NBC broadcast affiliate, and WALV-CD, the MeTV broadcast affiliate, each located in Indianapolis, IN; and RadiOhio Incorporated, the owner of radio broadcast stations WBNS (AM), WBNS-FM and the Ohio News Network (ONN), each located in Columbus, OH (collectively, the “Dispatch Stations”); WTIC / WCCT in Hartford-New Haven, CT, WPMT in Harrisburg-Lancaster-Lebanon-York, PA, WATN / WLMT in Memphis, TN, WNEP in Wilkes Barre-Scranton, PA, WOI / KCWI in Des Moines-Ames, IA, WZDX in Huntsville-Decatur-Florence, AL, WQAD in Davenport, IA-Rock Island-Moline, IL, KFSM in Ft. Smith-Fayetteville-Springdale-Rogers, AR (collectively, the “Nexstar/Tribune Stations”; broadcast stations WTOL in Toledo, Ohio and KWES in Midland Odessa, TX; and multicast networks Justice Network and Quest (such companies and businesses including Dispatch Stations and Nexstar/Tribune Stations being referred to collectively as the “Recent Acquisitions”).





TEGNA Inc.
 
 
 
 
 
 
 
 
 
 
Unaudited, in thousands of dollars
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Combined Revenues
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
2019
 
2019
 
 
 
 
 
 
Q1
 
Q2
 
YTD
 
 
 
 
Advertising & Marketing Services
 
$
316,283

 
$
343,999

 
$
660,282

 
 
 
 
Subscription
 
278,103

 
272,722

 
550,825

 
 
 
 
Political
 
2,969

 
4,820

 
7,789

 
 
 
 
Other
 
7,600

 
8,969

 
16,569

 
 
 
 
Total combined revenues
 
$
604,955

 
$
630,510

 
$
1,235,465

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
2019
 
2019
 
 
 
 
 
 
Q1
 
Q2
 
YTD
 
 
 
 
Total revenues, as reported (GAAP basis)
 
$
516,753

 
$
536,932

 
$
1,053,685

 
 
 
 
Recent Acquisitions
 
88,202

 
93,578

 
181,780

 
 
 
 
Total combined revenue (non-GAAP basis)
 
$
604,955

 
$
630,510

 
$
1,235,465

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2018
 
2018
 
2018
 
2018
 
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Advertising & Marketing Services
 
$
335,696

 
$
340,023

 
$
321,834

 
$
338,944

 
$
1,336,497

Subscription
 
241,286

 
245,537

 
244,410

 
256,350

 
987,583

Political
 
9,840

 
33,204

 
72,519

 
165,207

 
280,770

Other
 
6,668

 
8,746

 
6,130

 
8,261

 
29,805

Total combined revenues
 
$
593,490

 
$
627,510

 
$
644,893

 
$
768,762

 
$
2,634,655

 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2018
 
2018
 
2018
 
2018
 
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Total revenues, as reported (GAAP basis)
 
$
502,090

 
$
524,080

 
$
538,976

 
$
642,136

 
$
2,207,282

Recent Acquisitions
 
91,400

 
103,430

 
105,917

 
126,626

 
427,373

Total combined revenue (non-GAAP basis)
 
$
593,490

 
$
627,510

 
$
644,893

 
$
768,762

 
$
2,634,655

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





TEGNA Inc.
 
 
 
 
 
 
 
 
 
 
Unaudited, in thousands of dollars
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Combined Adjusted EBITDA
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
2019
 
2019
 
 
 
 
 
 
Q1
 
Q2
 
YTD
 
 
 
 
The Company net income from continuing operations (GAAP basis)
 
$
73,979

 
$
79,955

 
$
153,934

 
 
 
 
Plus: Provision for income taxes
 
22,774

 
24,879

 
47,653

 
 
 
 
Plus: Interest expense
 
46,385

 
46,327

 
92,712

 
 
 
 
(Less) Plus: Equity (income) loss in unconsolidated investments, net
 
(12,028
)
 
615

 
(11,413
)
 
 
 
 
Plus (Less): Other non-operating items, net
 
1,539

 
(8,964
)
 
(7,425
)
 
 
 
 
The Company operating income (GAAP basis)
 
132,649

 
142,812

 
275,461

 
 
 
 
Plus: Severance expense
 

 
1,452

 
1,452

 
 
 
 
Plus: Acquisition-related costs
 
3,911

 
5,208

 
9,119

 
 
 
 
Less: Spectrum repacking reimbursements and other
 
(7,013
)
 
(4,306
)
 
(11,319
)
 
 
 
 
Plus: Depreciation
 
14,917

 
14,533

 
29,450

 
 
 
 
Plus: Amortization
 
8,689

 
8,823

 
17,512

 
 
 
 
The Company Adjusted EBITDA (non GAAP basis)
 
153,153

 
168,522

 
321,675

 
 
 
 
The Recent Acquisition Companies Adjusted EBITDA
 
22,913

 
27,913

 
50,826

 
 
 
 
Combined Adjusted EBITDA
 
$
176,066

 
$
196,435

 
$
372,501

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2018
 
2018
 
2018
 
2018
 
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
The Company net income from continuing operations (GAAP basis)
 
$
55,187

 
$
92,512

 
$
92,826

 
$
160,815

 
$
401,340

Plus: Provision for income taxes
 
20,385

 
27,755

 
13,789

 
45,438

 
107,367

Plus: Interest expense
 
47,725

 
49,104

 
48,226

 
47,010

 
192,065

(Less) Plus: Equity (income) loss in unconsolidated investments, net
 
1,238

 
(15,547
)
 
(771
)
 
1,288

 
(13,792
)
Plus (Less): Other non-operating items, net
 
12,480

 
311

 
214

 
(1,509
)
 
11,496

The Company operating income (GAAP basis)
 
137,015

 
154,135

 
154,284

 
253,042

 
698,476

Plus: Severance expense
 

 

 
7,287

 

 
7,287

Less: Spectrum repacking reimbursements and other
 

 
(6,326
)
 
(3,005
)
 
(2,370
)
 
(11,701
)
Plus: Depreciation
 
13,471

 
13,861

 
14,262

 
14,355

 
55,949

Plus: Amortization
 
6,782

 
7,962

 
8,047

 
8,047

 
30,838

The Company Adjusted EBITDA (non GAAP basis)
 
157,268

 
169,632

 
180,875

 
273,074

 
780,849

The Recent Acquisition Companies Adjusted EBITDA
 
22,183

 
35,163

 
35,669

 
52,085

 
145,100

Combined Adjusted EBITDA
 
$
179,451

 
$
204,795

 
$
216,544

 
$
325,159

 
$
925,949