EW SCRIPPS Co

Previous wording

The E.W. Scripps Company (“Scripps”) is a diverse media enterprise that serves audiences and businesses through a portfolio of more than 60 local television stations in more than 40 markets and national news and entertainment networks. Our local stations have programming agreements with ABC, NBC, CBS, FOX and the CW. The Scripps Networks reach nearly every American through national news outlets Scripps News and Court TV and popular entertainment brands ION, Bounce, Grit, ION Mystery, ION Plus and Laff. Scripps News is our national news outlet that combines our 24/7 national news network, the Local Media national desk and our award-winning investigative reporting newsroom in Washington, D.C. into one coordinated organization. The combined operation more efficiently serves national audiences and our local television stations. We also serve as the longtime steward of one of the nation's largest, most successful and longest-running educational programs, the Scripps National Spelling Bee. Additionally, we provide a television viewing device called Tablo that allows households to watch and record dozens of free, over-the-air and streaming channels anywhere in their home without a subscription.

Current wording

The E.W. Scripps Company (“Scripps”) is a diverse media enterprise that serves audiences and businesses through a portfolio of more than 60 local television stations in more than 40 markets and national news and entertainment networks. Our local stations have programming agreements with ABC, NBC, CBS and FOX. The Scripps Networks reach nearly every American through national news outlets Scripps News and Court TV and popular entertainment brands ION, Bounce, Grit, ION Mystery, ION Plus and Laff. We also serve as the longtime steward of one of the nation's largest, most successful and longest-running educational programs, the Scripps National Spelling Bee. Additionally, we provide a television viewing device called Tablo that allows households to watch and record dozens of free, over-the-air and streaming channels anywhere in their home without a subscription.

Previous wording

Scripps is a leader in free, ad-supported television. All of our local stations and national networks reach consumers over the air, and all of our television brands can also be found on free streaming platforms. We have continued to expand in the fast-growing connected television marketplace, and we are leveraging our leadership position in the growing over-the-air marketplace. Currently, one in three non pay-TV homes is watching television over the air alongside their streaming subscription services, and as cord-cutting and streaming service price increases continue, over-the-air channels will be an important part of television viewers' choices. To that end, Scripps continues efforts to broaden antenna use even more, and is working with key partners in retail, manufacturing and antenna installation to help television owners understand the quality and quantity of programming available over the air and the ease of antenna use. During 2024, we will continue our efforts to build awareness, grow the broadcast marketplace and improve consumers over-the-air television experiences through our Tablo product.

Current wording

Scripps is a leader in free, ad-supported television. All of our local stations and national networks reach consumers over the air, and all of our television brands can also be found on free streaming platforms. We have continued to expand in the fast-growing connected television marketplace, and we are leveraging our leadership position in the growing over-the-air marketplace. Currently, one in three non pay-TV homes is watching television over the air alongside their streaming subscription services, and as cord-cutting and streaming service price increases continue, over-the-air channels will be an important part of television viewers' choices. To that end, Scripps continues efforts to broaden antenna use even more, and is working with key partners in retail, manufacturing and antenna installation to help television owners understand the quality and quantity of programming available over the air and the ease of antenna use. During 2024, we continue our efforts to build awareness, grow the broadcast marketplace and improve consumers over-the-air television experiences through our Tablo product.

Previous wording

In January 2023, we announced a strategic restructuring and reorganization of the Company to further leverage our strong position in the U.S. television ecosystem and propel our growth across new distribution platforms and emerging media marketplaces. Lisa Knutson was named chief operating officer, assuming responsibility for the Local Media and Scripps Networks operating divisions, and was tasked with leading the Company’s restructuring efforts. The restructuring created a leaner and more agile operating structure through the centralization of certain services and the consolidation of layers of management across our operating businesses and corporate office. The restructuring effort was substantially completed by the end of the 2024 second quarter and has resulted in more than $40 million in annual savings, of which $20 million of the annualized savings was achieved by the end of 2023.

Current wording

In January 2023, we announced a strategic restructuring and reorganization of the Company to further leverage our strong position in the U.S. television ecosystem and propel our growth across new distribution platforms and emerging media marketplaces. The strategic restructuring and reorganization created a leaner and more agile operating structure through the centralization of certain services and the consolidation of layers of management across our operating businesses and corporate office. The strategic reorganization effort was substantially completed by the end of the 2024 second quarter and has resulted in more than $40 million in annual savings, of which $20 million of the annualized savings was achieved by the end of 2023.

Previous wording

On July 2, 2024, we announced a multi-year agreement with the National Hockey League's Florida Panthers ("Panthers"). Under the new agreement, we have the ability to televise all locally produced Panthers preseason, regular-season and round one games of the postseason with distribution on cable, satellite and over-the-air television.

Current wording

On July 2, 2024, we announced a multi-year agreement with the National Hockey League's Florida Panthers ("Panthers"), which begins with the 2024-2025 season. Under the new agreement, we have the ability to televise all locally produced Panthers preseason, regular-season and round one games of the postseason with distribution on cable, satellite and over-the-air television.

Previous wording

Preferred stock dividends declared and paid in the first six months of 2023 totaled $24.0 million. We did not declare or provide payment for either of the 2024 quarterly dividends. We currently have sufficient liquidity to pay the scheduled dividends on the preferred shares; however, this action provides us better flexibility for accelerating deleveraging and maximizing the paydown of our traditional bank debt. Under the terms of the preferred shares, we are prohibited from paying dividends on and repurchasing our common shares until all preferred shares are redeemed.

Current wording

Preferred stock dividends declared and paid in the first nine months of 2023 totaled $36.0 million. We did not declare or provide payment for any of the 2024 quarterly dividends. We currently have sufficient liquidity to pay the scheduled dividends on the preferred shares; however, this action provides us better flexibility for accelerating deleveraging and maximizing the paydown of our traditional bank debt. Under the terms of the preferred shares, we are prohibited from paying dividends on and repurchasing our common shares until all preferred shares are redeemed.

Previous wording

Operating revenues decreased $9.2 million or 1.6% in the second quarter of 2024 and increased $24.5 million or 2.2% in the first six months of 2024 when compared to prior periods. The quarter-to-date decrease was due to a $30.8 million decrease in core advertising revenue and a $1.3 million decrease in distribution revenue. These decreases were partially offset by an increase in political revenue of $25.6 million. The year-to-date increase was driven by a $38.1 million increase in political revenue and a $34.7 million increase in distribution revenue. These increases were partially offset by a $45.5 million decrease in core advertising revenue.

Current wording

Operating revenues increased $79.8 million or 14% in the third quarter of 2024 and $104 million or 6.2% in the first nine months of 2024 when compared to prior periods. The quarter-to-date increase was due to an increase in political revenue of $122 million partially offset by a $30.2 million decrease in core advertising revenue and a $12.1 million decrease in distribution revenue. The year-to-date increase was driven by an increase of $160 million in political revenue and a $22.6 million increase in distribution revenue that were partially offset by a $75.7 million decrease in core advertising revenue.

Previous wording

Cost of revenues, which is comprised of programming costs and costs associated with distributing our content, increased $10.3 million or 3.2% in the second quarter of 2024 and $30.4 million or 4.9% in the first six months of 2024 when compared to prior periods. Programming expense increased $10.7 million or 5.2% in the second quarter of 2024 and $24.7 million or 6.1% in the first six months of 2024 when compared to prior periods, driven by new sports rights fees associated with the airing of games for the Women's National Basketball Association, the National Women's Soccer League and the National Hockey League's Vegas Golden Knights and the former Arizona Coyotes. The sports rights fees for these contracts were $12.6 million in the second quarter of 2024 and $22.7 million in the first six months of 2024. Production costs increased cost of revenues by $1.7 million in the second quarter of 2024 and $5.4 million in the first six months of 2024 when compared to prior periods, driven by the television production costs associated with the airing of games under our sports agreements.

Current wording

Cost of revenues, which is comprised of programming costs and costs associated with distributing our content, decreased $3.7 million or 1.2% in the third quarter of 2024 and increased $26.6 million or 2.8% in the first nine months of 2024 when compared to prior periods. Programming expense decreased $2.2 million or 1.0% in the third quarter of 2024 and increased $22.5 million or 3.6% in the first nine months of 2024 when compared to prior periods. During 2023, we entered into sports rights contracts for the airing of games for the Women's National Basketball Association ("WNBA"), the National Women's Soccer League ("NWSL") and the Vegas Golden Knights and the Utah Hockey Club (formerly the Arizona Coyotes) in the National Hockey League ("NHL"). The NHL contracts began with the start of the 2023-2024 season in October 2023 and the NWSL contract began with the start of the 2024 season in March 2024. The sports rights fees for the contracts increased programming expense by $3.9 million in the third quarter of 2024 and $22.8 million in the first nine months of 2024 when compared to prior periods. For the quarter-to-date period, network programming decreased $5.8 million which more than offset the increase in sports rights fees. The year-to-date increase in cost of revenues was also due to a $6.1 million increase in production costs, driven by the television production costs associated with the airing of games under our sports agreements.

Previous wording

Selling, general and administrative expenses are primarily comprised of sales, marketing and advertising expenses, research costs and costs related to corporate administrative functions. Selling, general and administrative expenses decreased $2.7 million or 1.8% in the second quarter of 2024 and $3.9 million or 1.3% in the first six months of 2024 when compared to prior periods.

Current wording

Selling, general and administrative expenses are primarily comprised of sales, marketing and advertising expenses, research costs and costs related to corporate administrative functions. Selling, general and administrative expenses increased $6.9 million or 4.7% in the third quarter of 2024 and $3.0 million or 0.7% in the first nine months of 2024 when compared to prior periods. The quarter-to-date increase was primarily attributed to political sales activities.

Previous wording

Restructuring costs totaled $1.0 million and $8.0 million in the second quarter of 2024 and 2023, respectively. Year-to-date restructuring costs totaled $6.0 million and $24.5 million for the first six months of 2024 and 2023, respectively. Restructuring costs in 2024 include severance charges and outside consulting fees associated with the ongoing strategic reorganization of the Company. Year-to-date 2023 costs included a $13.6 million first quarter charge related to the write-down of certain programming assets in connection with the shutdown of the TrueReal network. Additionally, year-to-date 2023 restructuring costs also included employee severance related charges of $7.8 million, operating lease impairment charges of $0.8 million and other restructuring charges primarily attributed to strategic reorganization consulting fees.

Current wording

Restructuring costs totaled $12.7 million and $4.7 million in the third quarter of 2024 and 2023, respectively. Year-to-date restructuring costs totaled $18.7 million and $29.2 million for the first nine months of 2024 and 2023, respectively. In the third quarter of 2024, we incurred $10.9 million in severance charges related to the significant reduction of Scripps News' national news programming. Remaining restructuring costs in 2024 include severance charges and outside consulting fees associated with the strategic reorganization efforts. Year-to-date 2023 costs included a $13.6 million first quarter charge related to the write-down of certain programming assets in connection with the shutdown of the TrueReal network. Additionally, year-to-date 2023 restructuring costs also included employee severance related charges of $8.9 million, operating lease impairment charges of $1.1 million and other restructuring charges primarily attributed to strategic reorganization consulting fees.

Previous wording

Interest expense decreased $0.2 million in the second quarter of 2024 and increased $5.9 million in the first six months of 2024 when compared to prior periods. Year-to-date increase was primarily due to higher year-over-year interest rates on our variable debt borrowings.

Current wording

Interest expense decreased $2.5 million in the third quarter of 2024 and increased $3.5 million in the first nine months of 2024 when compared to prior periods. The quarter-to-date decrease in interest expense was primarily attributed to financing costs incurred during the third quarter of 2023 related to the amendment of our credit facility. The year-to-date increase in interest expense was primarily due to higher year-over-year interest rates on our variable debt borrowings.

Previous wording

On February 9, 2024, following the completed sale of Broadcast Music, Inc. ("BMI") to New Mountain Capital, we received $18.1 million in pre-tax cash proceeds for our equity ownership in BMI. We did not have any carrying value associated with our BMI investment. This gain was included in Miscellaneous, net for the six months ended June 30,2024.

Current wording

On February 9, 2024, following the completed sale of Broadcast Music, Inc. ("BMI") to New Mountain Capital, we received $18.1 million in pre-tax cash proceeds for our equity ownership in BMI. We did not have any carrying value associated with our BMI investment. This gain was included in Miscellaneous, net for the nine months ended September 30, 2024.

Previous wording

The effective income tax rate was 65% and 2.6% for the six months ended June 30, 2024 and 2023, respectively. The comparability of our year-over-year effective tax rate is affected by the write-off of Scripps Networks goodwill in 2023, the majority of which was non-deductible. Differences between our effective income tax rate and the U.S. federal statutory rate are the impact of state taxes, foreign taxes, non-deductible expenses, changes in reserves for uncertain tax positions, excess tax benefits or expense from the exercise and vesting of share-based compensation awards ($3.8 million expense in 2024 and $1.3 million expense in 2023), state deferred rate changes ($0.7 million expense in 2024 and $6.7 million benefit in 2023) and state NOL valuation allowance changes. Additionally, in the second quarter of 2023, the income tax provision was impacted by a net discrete tax provision benefit of $16.9 million related to book impairment of tax deductible goodwill.

Current wording

The effective income tax rate was 34% and 2.4% for the nine months ended September 30, 2024 and 2023, respectively. The comparability of our year-over-year effective tax rate is affected by the write-off of Scripps Networks goodwill in 2023, the majority of which was non-deductible. Differences between our effective income tax rate and the U.S. federal statutory rate are the impact of state taxes, foreign taxes, non-deductible expenses, changes in reserves for uncertain tax positions, excess tax benefits or expense from the exercise and vesting of share-based compensation awards ($3.9 million expense in 2024 and $1.4 million expense in 2023), state deferred rate changes ($2.1 million expense in 2024 and $1.1 million benefit in 2023) and state NOL valuation allowance changes. Additionally, the 2023 year-to-date income tax provision was impacted by a net discrete tax provision benefit of $16.9 million related to book impairment of tax deductible goodwill recognized in the second quarter of 2023.

Previous wording

Local Media —Our Local Media segment includes more than 60 local television stations and their related digital operations. It is comprised of 18 ABC affiliates, 11 NBC affiliates, nine CBS affiliates and four FOX affiliates. We also have seven CW affiliates - four on full power stations and three on multicast; seven independent stations and 10 additional low power stations. Our Local Media segment earns revenue primarily from the sale of advertising to local, national and political advertisers and retransmission fees received from cable operators, telecommunications companies, satellite carriers and over-the-top virtual MVPDs.

Current wording

Local Media —Our Local Media segment includes more than 60 local television stations and their related digital operations. It is comprised of 18 ABC affiliates, 11 NBC affiliates, nine CBS affiliates and four FOX affiliates. We also have 11 independent stations and 10 additional low power stations. Our Local Media segment earns revenue primarily from the sale of advertising to local, national and political advertisers and retransmission fees received from cable operators, telecommunications companies, satellite carriers and over-the-top virtual MVPDs.

Previous wording

Total Local Media revenues increased $12.7 million or 3.6% in the second quarter of 2024 and $53.6 million or 8.1% in the first six months of 2024 when compared to prior periods. During this election year, political revenues increased $24.3 million in the second quarter of 2024 and $35.9 million for the first six months of 2024 when compared to prior periods. Distribution revenues decreased $1.1 million or 0.6% in the second quarter of 2024 and increased $33.0 million or 9.2% in the first six months of 2024 when compared to prior periods. During 2023, we completed renewal negotiations on distribution agreements covering about 75% of our subscriber households. Renewals on over 25% of subscriber households were completed at the end of the first quarter of 2023 and renewals on an additional 20% of subscriber households were completed throughout the second quarter of 2023. Rate increases favorably impacted distribution revenues by 7.5% and 17% in the quarter-to-date and year-to-date periods, respectively. Mid-single-digit subscriber declines experienced during the second quarter and year-to-date periods of 2024 compared to the respective prior year periods, unfavorably impacted distribution revenues. Local Media revenues were also impacted by a decrease in core advertising revenues of $10.3 million or 6.9% in the second quarter of 2024 and $15.2 million or 5.2% in the first six months of 2024 when compared to prior periods.

Current wording

Total Local Media revenues increased $92.5 million or 26% in the third quarter of 2024 and $146 million or 14% in the first nine months of 2024 when compared to prior periods. During this election year, political revenues increased $116 million in the third quarter of 2024 and $152 million in the first nine months of 2024 when compared to prior periods. Distribution revenues decreased $11.4 million or 5.7% in the third quarter of 2024 and increased $21.6 million or 3.9% in the first nine months of 2024 when compared to prior periods. During the first nine months of 2023, we completed renewal negotiations on distribution agreements covering about 75% of our subscriber households. Renewals on over 25% of subscriber households were completed at the end of the first quarter of 2023, renewals on an additional 20% of subscriber households were completed throughout the second quarter of 2023 and the remainder of the renewals were completed throughout the third quarter of 2023. In the quarter-to-date period, year-over-year rates remained flat, but mid-single-digit subscriber declines unfavorably impacted distribution revenues. In the year-to-date period, distribution revenues were favorably impacted by rate increases of 11% which were partially offset by mid-single-digit subscriber declines. Local Media revenues were also impacted by decreases in core advertising revenues of $13.0 million or 9.2% in the third quarter of 2024 and $28.3 million or 6.5% in the first nine months of 2024 when compared to prior periods, due in part to displacement from political advertising.

Previous wording

Programming expense increased $3.3 million or 2.8% in the second quarter of 2024 and $16.0 million or 6.7% in the first six months of 2024 when compared to prior periods. Costs attributed to the new Vegas Golden Knights and the former Arizona Coyotes sports rights agreements increased programming expense by $2.1 million and $11.2 million in the quarter-to-date and year-to-date periods, respectively.

Current wording

Programming expense increased $1.8 million or 1.5% in the third quarter of 2024 and $17.9 million or 4.9% in the first nine months of 2024 when compared to prior periods. Costs attributed to the Vegas Golden Knights and the Utah Hockey Club (formerly the Arizona Coyotes) sports rights agreements increased programming expense by $0.8 million and $12.0 million in the quarter-to-date and year-to-date periods, respectively. The remaining year-to-date increase in programming expense was due to a $5.8 million increase in network affiliation fees.

Previous wording

Other expenses increased $7.2 million or 17% in the second quarter of 2024 and $14.7 million or 18% in the first six months of 2024 when compared to prior periods. Production costs increased $0.9 million and $5.0 million in the quarter-to-date and year-to-date periods, respectively, driven by the costs associated with airing of games under our sports agreements. Additionally, advertising and promotion costs increased $2.8 million and $3.6 million in the quarter-to-date and year-to-date periods, respectively.

Current wording

Other expenses increased $2.6 million or 5.8% in the third quarter of 2024 and $17.3 million or 13% in the first nine months of 2024 when compared to prior periods. Production costs increased $0.7 million and $5.7 million in the quarter-to-date and year-to-date periods, respectively, primarily driven by the costs associated with airing of games under our sports agreements. Additionally, professional services cost, primarily attributed to political sales activities, increased $2.3 million and $3.4 million in the quarter-to-date and year-to-date periods, respectively. The year-to-date increase was also due to higher advertising and promotion costs of $3.6 million.

Previous wording

Scripps Networks revenues, which are primarily comprised of advertising revenues, decreased $22.5 million or 9.7% in the second quarter of 2024 and $29.7 million or 6.6% in the first six months of 2024 when compared to prior periods. Excluding the impact of the low-margin programmatic product we began to sunset in the second quarter of 2023, Scripps Networks revenues decreased 7.3% and 4.1% in the quarter-to-date and year-to-date periods, respectively. The amount of advertising revenue we earn is a function of the pricing negotiated with advertisers, the number of advertising spots sold and the audience impressions delivered. Lower ratings in our key monetized demographics unfavorably impacted Scripps Networks revenues by 11% and 7.7% in the quarter-to-date and year-to-date periods, respectively. Lower ratings were partially offset by an increase in connected TV ("CTV") revenue and an increase in advertising spots sold. Higher CTV revenue, reflecting growth in the streaming services marketplace, increased revenues by approximately 1.0% in both the quarter-to-date and year-to-date periods. An increase in advertising spots sold increased revenues by 4.0% and 2.4% in the quarter-to-date and year-to-date periods, respectively.

Current wording

Scripps Networks revenues, which are primarily comprised of advertising revenues, decreased $13.7 million or 6.4% in the third quarter of 2024 and $43.4 million or 6.5% in the first nine months of 2024 when compared to prior periods. Excluding the impact of the low-margin programmatic product we began to sunset in the second quarter of 2023, Scripps Networks revenues decreased 5.3% and 4.5% in the quarter-to-date and year-to-date periods, respectively. The amount of advertising revenue we earn is a function of the pricing negotiated with advertisers, the number of advertising spots sold and the audience impressions delivered. Lower ratings in our key monetized demographics unfavorably impacted Scripps Networks revenues by 10% and 8.4% in the quarter-to-date and year-to-date periods, respectively. Lower ratings were partially offset by an increase in advertising spots sold which increased revenues by 1.7% and 2.2% in the quarter-to-date and year-to-date periods, respectively.

Previous wording

Employee compensation and benefits decreased $4.9 million or 4.4% in the second quarter of 2024 and $3.9 million or 1.8% in the first six months of 2024 when compared to prior periods driven by the savings achieved through our restructuring efforts.

Current wording

Employee compensation and benefits increased $0.7 million or 2.4% in the third quarter of 2024 compared to the third quarter of 2023 due to an increase in bonus compensation. Employee compensation and benefits decreased $3.3 million or 3.5% for the first nine months of 2024 when compared to the prior period driven by the savings achieved through our restructuring efforts.

Previous wording

Programming expense increased $7.8 million or 8.6% in the second quarter of 2024 and $9.6 million or 5.4% for the first six months of 2024 when compared to prior periods. Costs attributed to the new sports rights agreements with the Women's National Basketball Association and the National Women's Soccer League increased programming expense by $10.5 million and $11.5 million in the quarter-to-date and year-to-date periods, respectively.

Current wording

Programming expense decreased $3.8 million or 4.1% in the third quarter of 2024 and increased $5.8 million or 2.1% for the first nine months of 2024 when compared to prior periods. Costs attributed to the sports rights agreements with the Women's National Basketball Association and the National Women's Soccer League increased programming expense by $3.1 million in the third quarter of 2024 and $10.8 million for the first nine months of 2024 when compared to prior periods. Network programming decreased $4.4 million in the third quarter of 2024 and $7.3 million for the first nine months of 2024 when compared to prior periods.

Previous wording

Other expenses decreased $3.9 million or 8.4% in the second quarter of 2024 and $10.8 million or 11% for the first six months of 2024 when compared to prior periods. Excluding the impact of the low-margin programmatic product we began to sunset in the second quarter of 2023, other expenses increased 2.7% in the second quarter of 2024 and decreased 1.6% for the first six months of 2024.

Current wording

Other expenses decreased $3.1 million or 7.1% in the third quarter of 2024 and $13.9 million or 10% for the first nine months of 2024 when compared to prior periods. Excluding the impact of the low-margin programmatic product we began to sunset in the second quarter of 2023, other expenses decreased 2.9% in the third quarter of 2024 and 2.0% for the first nine months of 2024, primarily driven by lower marketing and promotion costs.

Previous wording

Our primary source of liquidity is our available cash and borrowing capacity under our revolving credit facility. Our primary source of cash is generated from our ongoing operations and can be affected by various risk and uncertainties. At the end of June 30, 2024, we had $26.7 million of cash on hand and $288 million of additional borrowing capacity under our revolving credit facility. Based on our current business plan, we believe our cash flow from operations will provide sufficient liquidity to meet the Company’s operating needs for the next 12 months.

Current wording

Our primary source of liquidity is our available cash and borrowing capacity under our revolving credit facility. Our primary source of cash is generated from our ongoing operations and can be affected by various risk and uncertainties. At the end of September 30, 2024, we had $34.6 million of cash on hand and $403 million of additional borrowing capacity under our revolving credit facility. Based on our current business plan, we believe our cash flow from operations will provide sufficient liquidity to meet the Company’s operating needs for the next 12 months.

Previous wording

Cash provided by operating activities increased $46.9 million in 2024 compared to 2023 driven by a $38.0 million increase in cash provided by changes in certain working capital accounts and a cash outlay decrease of $30.8 million for programming investments in excess of programming amortization. These were partially offset by a $2.0 million year-over-year decrease in segment profit, a $21.7 million increase in income taxes paid and an increase of $7.3 million in cash interest paid.

Current wording

Cash provided by operating activities increased $163 million in 2024 compared to 2023 driven by a $74.6 million year-over-year increase in segment profit, an $111 million increase in cash provided by changes in certain working capital accounts and a cash outlay decrease of $34.1 million for programming investments in excess of programming amortization, which were partially offset by a $25.4 million increase in income taxes paid and an increase of $7.8 million in cash interest paid. The increase in cash provided by changes in working capital accounts was primarily driven by advertising for political campaigns, which are generally paid in advance.

Previous wording

Cash used in investing activities was $29.0 million in 2024 compared to $26.7 million in 2023. On February 9, 2024, following the completed sale of Broadcast Music, Inc. ("BMI") to New Mountain Capital, we received $18.1 million in pre-tax cash proceeds for our equity ownership in BMI. This increase in cash provided by investing activities was more than offset by $45.7 million of capital expenditures in 2024. Capital expenditures in 2023 were $25.8 million.

Current wording

Cash used in investing activities was $41.7 million in 2024 compared to $44.7 million in 2023. On February 9, 2024, following the completed sale of Broadcast Music, Inc. ("BMI") to New Mountain Capital, we received $18.1 million in pre-tax cash proceeds for our equity ownership in BMI. This increase in cash provided by investing activities was more than offset by $58.9 million of capital expenditures in 2024. Capital expenditures in 2023 were $43.8 million.

Previous wording

Cash used in financing activities was $51.5 million in 2024 compared to cash provided by financing activities of $23.1 million in 2023. As of June 30, 2024 and December 31, 2023, we had $290 million and $330 million, respectively, outstanding under the Revolving Credit Facility, resulting in net debt payments of $40.0 million during the first six months of 2024. During the first six months of 2023, we had net debt proceeds of $70 million, reflecting borrowings on our Revolving Credit Facility. Preferred stock dividends declared and paid were $24.0 million in the first six months of 2023.

Current wording

Cash used in financing activities was $171 million in 2024 compared to $6.6 million in 2023. As of September 30, 2024 and December 31, 2023, we had $175 million and $330 million, respectively, outstanding under the Revolving Credit Facility, resulting in net debt payments of $155 million during the first nine months of 2024. During the first nine months of 2023, we had net debt proceeds of $340 million, reflecting borrowings on our Revolving Credit Facility. On July 31, 2023, we borrowed $283 million on the Revolving Credit Facility to pay off the remaining principal balance of our term loan maturing in October 2024. Preferred stock dividends declared and paid were $36.0 million in the first nine months of 2023.

Previous wording

The preferred shares are perpetual and will be redeemable at the option of the Company beginning on the fifth anniversary of issuance, and redeemable at the option of the holders in the event of a Change of Control (as defined in the terms of the preferred shares), in each case at a redemption price of 105% of the face value, plus accrued and unpaid dividends (whether or not declared). Preferred stock dividends declared and paid in the first six months of 2023 totaled $24.0 million. We did not declare or provide payment for either of the 2024 quarterly dividends. We currently have sufficient liquidity to pay the scheduled dividends on the preferred shares; however, this action provides us better flexibility for accelerating deleveraging and maximizing the paydown of our traditional bank debt. At June 30, 2024, aggregated undeclared and unpaid cumulative dividends totaled $27.3 million. In connection with the issuance of the preferred shares, Berkshire Hathaway also received a warrant to purchase up to 23.1 million Class A shares, at an exercise price of $13 per share.

Current wording

The preferred shares are perpetual and will be redeemable at the option of the Company beginning on the fifth anniversary of issuance, and redeemable at the option of the holders in the event of a Change of Control (as defined in the terms of the preferred shares), in each case at a redemption price of 105% of the face value, plus accrued and unpaid dividends (whether or not declared). Preferred stock dividends declared and paid in the first nine months of 2023 totaled $36.0 million. We did not declare or provide payment for any of the 2024 quarterly dividends. We currently have sufficient liquidity to pay the scheduled dividends on the preferred shares; however, this action provides us better flexibility for accelerating deleveraging and maximizing the paydown of our traditional bank debt. At September 30, 2024, aggregated undeclared and unpaid cumulative dividends totaled $41.4 million. In connection with the issuance of the preferred shares, Berkshire Hathaway also received a warrant to purchase up to 23.1 million Class A shares, at an exercise price of $13 per share.

Previous wording

During the remainder of 2024, we anticipate contributing an additional $0.8 million to fund the SERPs' benefit payments. We have met regulatory funding requirements for our qualified benefit pension plan and do not have a mandatory contribution in 2024.

Current wording

During the remainder of 2024, we anticipate contributing an additional $0.5 million to fund the SERPs' benefit payments. We have met regulatory funding requirements for our qualified benefit pension plan and do not have a mandatory contribution in 2024.