TEGNA’s ( TGNA Quick Quote TGNA - Free Report) first-quarter 2022 non-GAAP earnings of 59 cents per share beat the Zacks Consensus Estimate by 3.51% and increased 13.5% on a year-over-year basis. Revenues increased 6.5% year over year to $774.3 million but missed the consensus mark by 0.51%. The year-over-year upside can be attributed to record first-quarter advertising and marketing services revenues and political revenues. In February, Tegna entered into a definitive agreement to be acquired by an affiliate of Standard General for $24 per share in cash and become a private company. The transaction, which the Tegna Board unanimously approved, has an equity value of around $5.4 billion and an enterprise value of $8.6 billion, including the assumption of debt. With the acquisition in place, Tegna will become the United States’ largest minority-owned broadcast group. The acquisition is currently on track and is expected to be completed in the second half of 2022, subject to closing conditions. Quarter in Detail
Subscription (50.6% of revenues) revenues inched up 1.3% year over year to $391.7 million due to rate increases.
Advertising and Marketing services (45.8% of revenues) revenues increased 9.9% year over year to $354.7 million, demonstrating significant broad-based strength across advertising categories. Political (2.3% of revenues) revenues amounted to $18 million, up 90.5% year over year Other revenues (1.3% of revenues) were $10 million, up 24.7% year over year. Non-GAAP adjusted EBITDA increased 8.2% year over year to $249.6 million. Adjusted EBITDA margin expanded to 32.2% from 31.7% in the year-ago quarter. Non-GAAP operating expenses (71.7% of revenues) of $554.8 million were up 5.1% year over year, driven by investments in growth initiatives such as Premion. Non-GAAP operating income increased 10.1% year over year to $219.3 million. The operating margin expanded to 28.3% from 27.4% in the year-ago quarter. Balance Sheet & Cash Flow
As of Mar 31, 2022, total cash was $43 million compared with $57 million as of Dec 31, 2021.
Total debt amounted to $3.1 billion and net leverage was 3.03 times as of Mar 31, 2021. Free cash flow in the first quarter was $182 million compared with $189 million reported in the previous quarter. The uptick can be attributed to growth in advertising and marketing services and political revenues. Zacks Rank & Stocks to Consider
TEGNA currently has a Zacks Rank #3 (Hold).
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