Core Insights - Gabelli Funds will host its 17th Annual Media & Entertainment Symposium on June 5, 2025, at the Harvard Club in New York City, focusing on industry dynamics, current trends, and business fundamentals [1] - The symposium will include discussions on Sports Investing, Media & Telecom Regulatory issues, and Advertising Panels, providing a platform for attendees to engage with leading companies in the media ecosystem [1][3] - A webcast option will be available for those unable to attend in person, ensuring broader access to the discussions and insights shared during the event [1] Presenting Companies - Notable companies participating in one-on-one meetings include Atlanta Braves Holdings, AMC Networks, Lionsgate Studios, Churchill Downs, Nexstar Media Group, Genius Sports, Reservoir Media, Gray Television, Rogers Communications, Live Nation Entertainment, Sinclair Inc., Sportradar Group, TEGNA Inc., TKO Group, and The E.W. Scripps Company [2] Panel Discussions - The symposium will feature several panel discussions, including "Sports Investing: Ways to Play," a TV Bureau of Advertising (TVB) Panel, and a Media & Telecom Regulatory Expert Session led by former FCC Commissioner Rob McDowell [3]

Financial Performance - Total operating revenues for Q1 2025 were $524.4 million, a decrease of 6.6% compared to $561.5 million in Q1 2024[24]. - Advertising revenue decreased to $325.9 million, down 6.8% from $349.8 million in the same quarter last year[24]. - Operating income for Q1 2025 was $27.5 million, a decline of 36.7% from $43.4 million in Q1 2024[24]. - Net loss attributable to shareholders was $18.8 million, compared to a net loss of $12.8 million in Q1 2024, resulting in a net loss per share of $0.22[24]. - The E.W. Scripps Company reported a net loss of $3,455,000 for the three months ended March 31, 2025, compared to a net income of $1,626,000 for the same period in 2024[27]. - Cash flows from operating activities were negative at $(3,309,000) for Q1 2025, a significant decrease from $45,436,000 in Q1 2024[27]. - The company reported total revenues of $524.393 million for the three months ended March 31, 2025, compared to $561.464 million for the same period in 2024, reflecting a decrease of approximately 6.6%[105]. - Local Media segment revenues decreased by $27.4 million or 7.8% to $325.4 million, with core advertising down by $4.3 million or 3.1%[146]. - Scripps Networks revenues decreased by $11.3 million or 5.4% to $198.0 million, impacted by lower ratings in key demographics[152]. Assets and Liabilities - Total assets as of March 31, 2025, were $5.12 billion, down from $5.20 billion as of December 31, 2024[23]. - Current liabilities decreased to $439.7 million from $482.4 million at the end of 2024, reflecting improved cash management[23]. - The company reported a decrease in accounts receivable to $520.6 million, down from $568.2 million[23]. - The total outstanding principal of long-term debt as of March 31, 2025, was $2,626,404 thousand, with a net carrying value of $2,558,994 thousand[78]. - As of March 31, 2025, total other liabilities (less current portion) amounted to $436.854 million, a decrease from $464.574 million as of December 31, 2024[95]. Cash Flow and Financing Activities - The company experienced a net cash used in investing activities of $(9,890,000) in Q1 2025, compared to $(5,085,000) in Q1 2024[27]. - Net cash provided by financing activities was $13,306,000 in Q1 2025, contrasting with a net cash used of $(45,441,000) in Q1 2024[27]. - Cash and cash equivalents increased slightly to $24.0 million from $23.9 million at the end of the previous quarter[23]. - Cash used in operating activities was $3.3 million in 2025, a decrease from $45.4 million provided in 2024, driven by a $17.2 million decrease in segment profit[158]. - Cash provided by financing activities was $13.3 million in 2025, compared to cash used of $45.4 million in 2024, reflecting net debt proceeds of $25.0 million[160]. Restructuring and Costs - Restructuring costs for the first quarter of 2025 totaled $4.1 million, which included severance charges of $2.0 million and operating lease exit costs of $2.1 million[63]. - The company incurred restructuring costs of $5.0 million in the first quarter of 2024, indicating a decrease in restructuring expenses year-over-year[63]. - Selling, general and administrative expenses decreased by 5.8% to $137,239 in the first quarter of 2025, compared to $145,693 in the same period of 2024[128]. - Employee compensation and benefits in Local Media decreased by $1.6 million or 1.5% due to restructuring efforts[147]. Tax and Interest - The effective income tax rate for the three months ended March 31, 2025 was 79%, compared to 70% for the same period in 2024[69]. - Interest expense decreased by $11.2 million in the first three months of 2025 compared to the prior year quarter, attributed to lower interest rates on variable debt[134]. - The company reported interest paid of $57,867,000 for Q1 2025, a decrease from $67,347,000 in Q1 2024[27]. Debt and Credit Facilities - The company authorized a debt repurchase of up to $500 million, expiring on March 1, 2026[91]. - The company replaced its existing revolving credit facility with a new facility with aggregate commitments of up to $208 million due July 2027[94]. - The company has $545 million in new tranche B-2 term loans due 2028, with interest charged at SOFR plus a margin of 5.75%[166]. - The company has $340 million in new tranche B-3 term loans due 2029, with interest charged at SOFR plus a margin of 3.35%[166]. - The new credit agreement requires compliance with a maximum first lien net leverage ratio of 3.50 to 1.0 through September 30, 2026[93]. Dividends and Shareholder Returns - The company did not declare or provide payment for the first quarter 2025 preferred dividend, resulting in aggregated undeclared and unpaid cumulative dividends totaling $70.6 million[116]. - The company is prohibited from paying dividends on and repurchasing common shares until all preferred shares are redeemed[116]. - At March 31, 2025, aggregated undeclared and unpaid cumulative dividends on preferred shares totaled $70.6 million[169].

Financial Data and Key Metrics Changes - The company reported a first quarter loss per share of $0.22, which is an improvement compared to the consensus EPS estimate, despite a preferred stock dividend impact of $0.18 [14] - Total debt at the end of the quarter was $2.6 billion, with a net leverage ratio of 4.9 times, which the company aims to reduce further this year [14][15] - The company completed refinancing transactions that increased the blended cost of debt by less than 1% and extended the maturity of up to $1.5 billion of debt [15] Business Line Data and Key Metrics Changes - Local Media division revenue decreased by 7.8% year-over-year, with core advertising revenue down 3% due to economic uncertainty [9][10] - Scripps Networks revenue was $198 million, down about 5% year-over-year, but Connected TV revenue increased by 42% [11][12] - Local Media segment profit was $35 million, down from $66 million in Q1 2024 [10] Market Data and Key Metrics Changes - Local distribution revenue was down 5% year-over-year, with expectations for high single-digit declines in Q2 [10][11] - The advertising categories of automotive and retail were the worst performers in Q1, while gambling advertising saw growth [46][48] Company Strategy and Development Direction - The company is focused on debt reduction and improving its balance sheet, with a commitment to using free cash flow for debt reduction [15][16] - There is an expectation of local broadcast industry consolidation that could drive growth and enhance shareholder value [20] - The company is leveraging its local news and sports programming to strengthen connections with audiences and advertisers [20][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from economic uncertainty but expressed confidence in the company's performance and strategic direction [7][19] - The company anticipates continued challenges in the advertising market but expects to benefit from strong demand for women's sports programming [54][92] Other Important Information - The company has received multiple prestigious journalism awards for its news programming, highlighting its commitment to quality journalism [21][22] - The company is exploring opportunities for regulatory relief to enhance its competitive position in the market [27] Q&A Session Summary Question: How is Scripps positioned to take advantage of regulatory changes? - Management believes that greater scale and market depth are necessary for performance and plans to leverage opportunities from potential regulatory changes [29][30] Question: What visibility does the company have for performance in the back half of the year? - Management indicated that visibility is strong, particularly due to the demand generated by sports programming [31][38] Question: How did employee compensation and benefits change in Scripps Networks? - Employee compensation was down 31% year-over-year, and management expects this lower cost base to continue [43][45] Question: What is the outlook for advertising categories? - Automotive and retail were the worst performers in Q1, but gambling advertising saw growth, particularly in markets with local sports [46][48] Question: What is the expected impact of political advertising in the upcoming year? - Management expects a typical off-cycle year for political advertising, with potential for earlier spending due to the current environment [91][93]

Financial Data and Key Metrics Changes - The company reported a first-quarter loss per share of $0.22, which is an improvement compared to the consensus EPS estimate, despite a preferred stock dividend impact of $0.18 and a $4 million restructuring charge that increased the loss by $0.04 per share [13][14][24] - Total debt at the end of the quarter was $2.6 billion, with a net leverage ratio of 4.9 times, which the company expects to reduce throughout the year [13][14][24] Business Line Data and Key Metrics Changes - Local Media division revenue decreased by 7.8% year-over-year, with core advertising revenue down 3% due to hesitancy in advertising spending amid economic uncertainty [7][8] - Scripps Networks revenue was $198 million, down about 5% from the previous year, but Connected TV revenue increased by 42% [10][11] - Local Media segment profit was $35 million, down from $66 million in Q1 2024, while Scripps Networks segment profit rose to $64 million from $49.7 million year-over-year [8][12] Market Data and Key Metrics Changes - The company expects Local Media division revenue to decline in the high single-digit range for Q2, with core revenue down in the low single-digit range due to ongoing economic uncertainties [9][12] - Advertising categories such as automotive and retail were the worst performers in Q1, while gambling advertising saw growth tied to local sports deals [42][44][75] Company Strategy and Development Direction - The company is focused on debt reduction and improving its balance sheet, with a commitment to using free cash flow for debt repayment [14][15] - Management anticipates local broadcast industry consolidation, which could enhance growth and efficiency in local markets [17][18] - The company is leveraging its local news and sports programming to strengthen connections with audiences and advertisers, aiming to create shareholder value [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to navigate economic uncertainties and highlighted strong performance in Connected TV and disciplined expense management [6][16] - The company is preparing for potential regulatory changes that could allow for greater consolidation and operational leverage in local markets [24][60] Other Important Information - The company completed refinancing transactions that improved its debt maturity profile and only slightly increased its blended cost of debt [14][15] - The company has received multiple prestigious journalism awards, reinforcing its commitment to quality news reporting [19][20] Q&A Session Summary Question: How is Scripps positioned to take advantage of regulatory changes? - Management believes that greater scale and market depth are necessary for performance and plans to leverage opportunities from potential regulatory changes [26][27] Question: What visibility does the company have on performance in the back half of the year? - Management indicated that while there is excitement around women's sports, concrete details from upfronts will be clearer in the next earnings call [30][31] Question: How did advertising categories perform in Q1? - Automotive and retail were the worst performers, while gambling advertising saw growth due to local sports deals [42][44] Question: What is the outlook for retransmission revenues? - Management confirmed that retransmission subscribers were down mid-single digits year-over-year, consistent with previous trends [52][53] Question: What is the expected impact of deregulation on the ION side of the business? - Management anticipates that changes in ownership rules could allow for more local stations, improving margins for ION [69][70] Question: What is the expected cash balance post-refinancing? - The company had $25 million in cash at the end of the quarter, with expectations to reduce revolver balances by the end of the year [93][96]

Financial Performance - The E.W. Scripps Company reported Q1 2025 revenue of $524 million, a decrease of 6.6% or $37.1 million from the prior-year quarter[7]. - Loss attributable to shareholders was $18.8 million or 22 cents per share, compared to a loss of $12.8 million or 15 cents per share in the prior-year quarter[8]. - Total operating revenues decreased by 6.6% to $524,393,000 in Q1 2025 from $561,464,000 in Q1 2024[30]. - Net loss for the quarter was $3,455,000 compared to a net income of $1,626,000 in the same period last year[35]. - Adjusted EBITDA decreased to $75,606,000 from $91,844,000, reflecting a decline in operating performance[39]. Segment Performance - Local Media revenue was $325 million, down 7.8% from the prior-year quarter, while segment profit decreased to $34.9 million from $65.6 million[9][11]. - Scripps Networks revenue was $198 million, down 5.4% from the prior-year quarter, but segment profit increased to $64.1 million from $49.7 million[12][13]. - Core advertising revenue decreased by 3.1% to $132 million, while political revenue dropped to $3.3 million from $15.2 million in the prior-year quarter[17]. - Local Media segment revenues fell by 7.8% to $325,389,000, with core advertising down 3.1% and political advertising down 78.5%[31]. - Scripps Networks segment revenues decreased by 5.4% to $198,007,000, while segment profit increased by 29.1% to $64,093,000[31]. Debt and Financial Management - The company completed refinancing transactions, resulting in total debt of $2.6 billion and cash and cash equivalents of $24 million as of March 31[14][15]. - The company is prioritizing debt paydown, with net leverage at 4.9x at the end of Q1 2025, and aims to continue reducing its leverage ratio this year[6]. - Interest expense decreased to $43,750,000 from $54,917,000, indicating improved cost management[39]. Asset Management - Total current assets decreased to $598,148,000 from $630,015,000, with cash and cash equivalents slightly increasing to $23,959,000[33]. - Total assets decreased to $5,116,189,000 from $5,198,575,000, primarily due to a reduction in current liabilities[33]. - The company reported a total equity of $1,319,723,000, slightly up from $1,318,014,000[33]. Future Outlook - The company expects Local Media revenue to decline in the high single-digit percent range and Scripps Networks revenue to be about flat in Q2 2025[18]. - Capital expenditures significantly reduced to $1,854,000 from $17,897,000 in the previous year[40]. - Real estate sales from the West Palm Beach station building and five transmission towers generated $63 million[6].

Company Performance - E.W. Scripps reported a quarterly loss of $0.18 per share, better than the Zacks Consensus Estimate of a loss of $0.23, but worse than a loss of $0.10 per share a year ago, indicating an earnings surprise of 21.74% [1] - The company posted revenues of $524.39 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.94%, but down from $561.46 million in the same quarter last year [2] - Over the last four quarters, E.W. Scripps has surpassed consensus EPS estimates just once, while it has topped consensus revenue estimates three times [2] Stock Performance - E.W. Scripps shares have increased by approximately 8.1% since the beginning of the year, contrasting with the S&P 500's decline of 4.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $548.7 million, and for the current fiscal year, it is $0.07 on revenues of $2.2 billion [7] Industry Outlook - The Broadcast Radio and Television industry, to which E.W. Scripps belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Core Insights - The E.W. Scripps Company reported $524 million in revenue for Q1 2025, a decrease of 6.6% from the previous year, with a loss attributable to shareholders of $18.8 million or 22 cents per share [1][6][7] Financial Performance - Revenue for the Local Media segment was $325 million, down 7.8% year-over-year, while Scripps Networks revenue was $198 million, down 5.4% [10][12] - Total costs and expenses for the company were $454 million, reduced from $474 million in the prior-year quarter [6] - The company achieved a segment profit of $34.9 million for Local Media, a decline of 46.7%, while Scripps Networks saw a profit increase of 29.1% to $64.1 million [11][12] Operational Highlights - The Scripps Networks division achieved a margin of 32%, attributed to growth in connected TV revenue and effective cost management [9] - The company completed negotiations covering 25% of its pay TV households and closed refinancing transactions for its term loans and revolving credit facility [1][9] - New distribution agreements for live women's sports events are expected to enhance advertising revenue and audience engagement [4][6] Debt Management - The company prioritized debt paydown, with total debt standing at $2.6 billion and net leverage at 4.9x at the end of Q1 [13][14] - The refinancing included a new term loan due in 2028 with $545 million outstanding and a new revolving credit facility maturing in 2027 [14][15] Future Outlook - The company anticipates flat distribution revenue for the year despite subscriber declines, with a positive outlook for the Scripps Networks division due to the return of women's sports [9][17] - The local broadcast station sector may benefit from potential deregulation by the Federal Communications Commission [5]

Core Points - The E.W. Scripps Company has two local television stations that won Peabody Awards for impactful local investigations [1][4] - WTVF in Nashville won for its investigation "Confronting Hate," focusing on political extremism in Tennessee [1][2] - KNXV in Phoenix won for its video series "Policing Phoenix," which analyzed a U.S. Department of Justice report on the Phoenix Police Department [4][5] Summary by Category Awards and Recognition - WTVF has won its fourth Peabody Award and has received this honor for two consecutive years [3] - KNXV has achieved its fifth Peabody Award, with three of those in the last five years [6] Investigative Reporting - WTVF's investigation led to a criminal probe by the Tennessee Bureau of Investigation into local police misconduct [2] - KNXV's series transformed a 126-page DOJ report into a comprehensive video series, highlighting systemic failures in the Phoenix Police Department [4][5] Company Commitment - Dean Littleton, Scripps' executive vice president, emphasized the importance of local journalism in fostering transparency and integrity [7] - The Peabody Awards are awarded annually to recognize impactful stories that reflect pressing social issues [7]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for E.W. Scripps due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - E.W. Scripps is expected to report a quarterly loss of $0.23 per share, reflecting a year-over-year change of -130% [3]. - Revenues are projected to be $519.5 million, down 7.5% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 61.11% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of deviation from consensus estimates, with positive readings being more predictive of earnings beats [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have shown a nearly 70% success rate in delivering positive surprises [8]. Historical Performance - E.W. Scripps has not beaten consensus EPS estimates in the last four quarters, with the most recent quarter showing a surprise of -2.02% [12][13]. Conclusion - E.W. Scripps does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when evaluating the stock ahead of its earnings release [16].

Core Points - Scripps News, owned by The E.W. Scripps Company, received three National Headliner Awards and two Deadline Club finalist nominations, highlighting the significance of its impactful journalism [1][2] - The awards recognize excellence in various categories, including health science and environmental reporting, showcasing the dedication of the Scripps News team to uncover vital stories [3][4] Awards and Recognitions - Scripps News won a first-place National Headliner Award for the documentary "Darwin's War," which provided rare access to a Ukrainian FPV drone unit, illustrating modern combat in the Ukraine war [4][5] - The investigation "Fentanyl: The Silent Toll" also received a first-place National Headliner Award, focusing on the impact of fentanyl on young children across the U.S. through extensive interviews and data analysis [7][8] - The report "One Woman's Frontline" earned a second-place National Headliner Award, highlighting the experiences of women in the Ukraine war [10] Additional Projects - Scripps News was a finalist for a Deadline Club Award for the documentary series "In the Shadows with Jason Bellini," which offers a raw perspective on the Ukraine war through the lens of a soldier [11] - The report "Sex, Lies and Deepfakes" is a finalist for the Deadline Club's "Mosaic Award," focusing on the experiences of women affected by disinformation [13][14]