E.W. SCRIPPS Co
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 8, 2025
SSP$3.05+3.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0000832428-25-000026
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0000832428-25-000048
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 89 previous paragraphs and 83 current paragraphs.
48 unchanged; 24 reworded; 10 added; 16 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
On May 14, 2025, we announced a multi-year media rights agreement which allows us to produce and distribute all preseason, regular season and first-round playoff Tampa Bay Lightning games that are not allocated exclusively to national broadcasts. This agreement will begin with the 2025-2026 National Hockey League season, which will start with the preseason in late September 2025.
Current report
On June 13, 2025, we announced a new, multi-year agreement with the Women's National Basketball Association ("WNBA") to continue airing regular season Friday night matchups on ION as part of its WNBA Fright Night Spotlight series.
Current report
On July 7, 2025, we entered into agreements with Gray Media, Inc. (“Gray”), to swap television stations across five markets. Upon completion of the transactions, we will acquire Gray’s KKTV (CBS) in Colorado Springs, Colorado; KKCO (NBC) and low power station KJCT-LP (ABC) in Grand Junction, Colorado; and KMVT (CBS) and low power station KSVT-LD (Fox) in Twin Falls, Idaho. Gray will be acquiring WSYM (Fox) in Lansing, Michigan, and KATC (ABC) in Lafayette, Louisiana. The swap involves the even exchange of comparable assets. As a result, neither company will pay cash consideration to the other. The transaction, pending regulatory and other approvals, is expected to close in the fourth quarter of 2025.
Current report
On August 6, 2025, we issued $750 million of senior secured second lien notes (the "2030 Senior Notes"), which bear interest at a rate of 9.875% per annum and mature on August 15, 2030. The 2030 Senior Notes were priced at 99.509% of par value and interest is payable semi-annually on August 15 and February 15. The proceeds from the 2030 Senior Notes were used to repay the remaining $426 million principal amount of the 2027 Senior Notes, provide a $205 million principal prepayment toward the June 2028 term loan, pay $89.7 million toward outstanding borrowings under our revolving credit facilities and pay related issuance costs and prepayment premiums related to the transaction.
Current report
Operating revenues decreased $33.5 million or 5.8% in the second quarter of 2025 and $70.6 million or 6.2% in the first six months of 2025 when compared to prior periods. Core advertising revenue decreased $4.1 million and $15.3 million in the quarter-to-date and year-to-date periods, respectively. In this non-election year, political revenue decreased $26.4 million and $39.1 million in the quarter-to-date and year-to-date periods, respectively. Distribution revenue decreased $4.2 million and $17.8 million in the quarter-to-date and year-to-date periods, respectively.
Current report
On April 30, 2025, we completed the sale of our West Palm Beach television station building to 110 Banyan LLC for cash consideration of $40.0 million and recognized a pre-tax gain from disposition of $31.4 million.
Current report
Interest expense increased $6.5 million in the second quarter of 2025 and decreased $4.6 million in the first six months of 2025 when compared to prior periods. The year-to-date decrease in interest expense was due to lower year-over-year outstanding balances and interest rates on our variable debt borrowings. As part of the April 10, 2025 refinancing transactions, we paid off the remaining balances for our term loans that were due to mature in May 2026 and January 2028. In connection with the retirement of these term loans, we wrote-off $5.6 million of deferred financing costs to interest expense, which drove the quarter-to-date increase in interest expense. We also incurred a $3.0 million loss on the extinguishment of debt when we paid off the remaining balances for our term loans. Additionally, we incurred $38.1 million of non-capitalized transaction costs related to the debt refinancing. These costs are reflected in the caption "Other financing transaction costs" for the six months ended June 30, 2025.
Current report
Other expenses decreased $2.6 million or 5.5% in the second quarter of 2025 and $6.8 million or 7.0% in the first six months of 2025 when compared to prior periods. National sales commissions decreased $1.1 million and $2.5 million in the quarter-to-date and year-to-date periods, respectively. Facility costs decreased $1.6 million and $3.5 million in the quarter-to-date and year-to-date periods, respectively.
Current report
Programming expense decreased $9.6 million or 9.8% in the second quarter of 2025 and $22.4 million or 12% for the first six months of 2025 when compared to prior periods. Carriage affiliation fees decreased $3.7 million and $8.2 million in the quarter-to-date and year-to-date periods, respectively. Syndicated programming costs decreased $6.0 million and $14.1 million in the quarter-to-date and year-to-date periods, respectively.
Current report
On April 10, 2025, we completed a series of previously announced refinancing transactions, which included replacing our $585 million revolving credit facility with a new $208 million revolving credit facility, maturing on July 7, 2027, and a new $70.0 million non-extended revolving credit facility, maturing on January 7, 2026. We also entered into an accounts receivable securitization facility, scheduled to terminate on April 10, 2028, with aggregate commitments of up to $450 million. The maximum availability allowed for the securitization facility is limited by our eligible accounts receivable balances.
Removed paragraphs (16)
Previous report
Operating revenues decreased $37.1 million or 6.6% in the first three months of 2025 when compared to the prior year quarter driven by decreases of $11.2 million in core advertising revenue, $12.7 million in political revenue and $13.6 million in distribution revenue.
Previous report
$8.5 million or 5.8% in the first three months of 2025 when compared to the prior year quarter. Employee compensation costs decreased $3.7 million due to savings achieved through our restructuring efforts. Additionally, advertising and promotions costs decreased $3.3 million and our national sales commissions decreased $2.6 million.
Previous report
Interest expense decreased $11.2 million in the first three months of 2025 when compared to the prior year quarter. The decrease in interest expense was due to lower year-over-year interest rates on our variable debt borrowings. Additionally, interest on the revolving credit facility decreased $6.2 million year-over-year as the amount drawn on our revolving credit facility during the first quarter of 2025 was significantly lower than the amount drawn during the first quarter of 2024.
Previous report
Other expenses decreased $4.2 million or 8.4% in the first three months of 2025 when compared to the prior year quarter. The year-over-year decrease was due to lower national sales commissions of $1.4 million and lower facility costs of $1.9 million.
Previous report
Programming expense decreased $12.8 million or 14% for the first three months of 2025 when compared to the prior year quarter, driven by a decrease in carriage affiliation fees of $4.5 million and a decrease in syndicated programming of $8.1 million.
Previous report
Debt Refinancing Transactions
Previous report
On April 10, 2025, we completed a series of previously announced refinancing transactions, where we:
Previous report
•Refinanced approximately $111 million aggregate principal amount of our then existing 2026 term loan with new tranche B-2 term loans due 2028, with the remaining 2026 term loan repaid in cash, including with proceeds from a new accounts receivable securitization facility, approximately $224 million of proceeds from new tranche B-2 term loans funded by certain participating lenders and cash on hand (including from drawings under our revolving credit facilities);
Previous report
•Refinanced approximately $540 million aggregate principal amount of our existing 2028 term loan with $200 million new tranche B-2 term loans due 2028 and $340 million new tranche B-3 term loans due 2029, with remaining 2028 term loan repaid in cash with cash on hand (including from drawings under our revolving credit facilities);
Previous report
In connection with the debt refinancing, we incurred transaction costs totaling approximately $70 million. We are currently evaluating the impact of these transaction fees to our financial statements.
Previous report
Following completion of the transactions:
Previous report
•The accounts receivable securitization facility is subject to interest charges, at the one-month term SOFR rate, subject to a 1.00% floor with a blended spread of 3.72% based on customary assumptions. On April 10, 2025, we drew approximately $362 million under the accounts receivable securitization facility and used the proceeds to repay a portion of the then existing 2026 term loan.
Previous report
•No amounts remain outstanding for our existing 2026 term loan, existing 2028 term loan or existing Revolving Credit Facility.
Previous report
•We have $545 million aggregate principal outstanding for a new tranche B-2 term loan due 2028, interest charged at the SOFR rate plus a margin of 5.75%, and $340 million aggregate principal outstanding for a new tranche B-3 term loan due 2029, interest charged at the SOFR rate plus a margin of 3.35%.
Previous report
•We will have total aggregate revolving commitments up to $278 million, which includes the new revolving credit facility and the new non-extended revolving credit facility. For the new $208 million revolving credit facility, interest is payable at the SOFR rate plus a margin of 5.50%. For the new non-extended revolving credit facility, interest is payable at the SOFR rate plus a margin based on our leverage ratio, ranging from 1.75% to 2.75%. On April 10, 2025, we had $177 million outstanding under these revolving commitments.
Previous report
Our term loans and notes do not have maintenance covenants. The Eighth Amendment to our Revolving Credit Facility, which matures in the first quarter of 2026, permits a maximum leverage through September 30, 2025 of 4.75 times the two-year average earnings before interest, taxes, depreciation and amortization (EBITDA) as defined by our credit agreement. The maximum leverage covenant steps down to 4.50 times thereafter. As of March 31, 2025, we were in compliance with our financial covenants.
Reworded paragraphs (24)
Previous wording
On March 13, 2025, we announced a multi-year agreement with the Las Vegas Aces, which will begin when the regular season begins in May 2025. Under the new agreement, we will televise all non-nationally exclusive Aces games with distribution on cable, satellite and over-the-air television. In addition to game broadcasts, the Aces and our local station Vegas 34 will partner to produce and air "In the Paint," an award-winning weekly 30-minute show featuring highlights, interviews and behind-the-scenes access to the 2025 Las Vegas Aces.
Current wording
On March 13, 2025, we announced a multi-year agreement with the Las Vegas Aces, which began in May 2025. Under the agreement, we televise all non-nationally exclusive Aces games with distribution on cable, satellite and over-the-air television. In addition to game broadcasts, the Aces and our local station Vegas 34 partnered to produce and air "In the Paint," an award-winning weekly 30-minute show featuring highlights, interviews and behind-the-scenes access to the 2025 Las Vegas Aces.
Previous wording
On April 10, 2025, we completed a series of previously announced refinancing transactions. Following the completion of the transactions, no amounts remain outstanding for our prior 2026 term loan, our prior 2028 term loan or our prior Revolving Credit Facility. Additionally, we now have $545 million aggregate principal outstanding for a new term loan due 2028 and $340 million aggregate principal outstanding for a new term loan due 2029. We also replaced the prior revolving credit facility with a new $208 million revolving credit facility, maturing on July 7, 2027, and a $70 million non-extended revolving credit facility, maturing on January 7, 2026. Finally, we also entered into a new three-year accounts receivable securitization facility with aggregate commitments of up to $450 million. Additional information about the refinancing transactions is presented in Note 7. Long-Term Debt.
Current wording
On April 10, 2025, we completed a series of previously announced refinancing transactions. Following the completion of the transactions, no amounts remain outstanding for our prior 2026 term loan, our prior 2028 term loan or our prior revolving credit facility. Additionally, we issued a $545 million tranche B-2 term loan that matures in June 2028 and a $340 million tranche B-3 term loan that matures in November 2029. We also replaced the prior revolving credit facility with a new $208 million revolving credit facility, maturing on July 7, 2027, and a $70.0 million non-extended revolving credit facility, maturing on January 7, 2026. Finally, we also entered into a new three-year accounts receivable securitization facility with aggregate commitments of up to $450 million that is scheduled to terminate on April 10, 2028. Additional information about the refinancing transactions is presented in Note 7. Long-Term Debt.
Previous wording
We did not declare or provide payment for the first quarter 2025 or any of the 2024 quarterly preferred dividends. The 9% per annum dividend rate on the preferred shares, which compounds quarterly, will be incurred at that rate for the remaining periods that the preferred shares are outstanding. Deferral of preferred stock dividend payments 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
We did not declare or provide payment for the preferred stock dividend in either quarter of 2025 or any of the 2024 quarters. The 9% per annum dividend rate on the preferred shares, which compounds quarterly, will be incurred at that rate for the remaining periods that the preferred shares are outstanding. At June 30, 2025, aggregated undeclared and unpaid cumulative dividends totaled $85.7 million and the redemption value of the preferred stock totaled $718 million. 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
Cost of revenues, which is comprised of programming costs and costs associated with distributing our content, decreased $11.4 million or 3.5% in the first three months of 2025 when compared to the prior year quarter. Programming expense decreased $3.8 million or 1.8% in the first three months of 2025 when compared to the prior year quarter. The programming expense decrease was driven by an $8.2 million decrease in syndicated programming costs and a $4.3 million decrease in network programming costs related to carriage affiliation fees. These decreases were partially offset by an increase of $9.0 million in sports rights fees. The year-over-year decrease in cost of revenues was also due to a $4.8 million decrease in employee compensation costs that reflects the impact of our restructuring initiatives.
Current wording
Cost of revenues, which is comprised of programming costs and costs associated with distributing our content, decreased $13.4 million or 4.1% in the second quarter of 2025 and $24.8 million or 3.8% in the first six months of 2025 when compared to prior periods. Employee compensation costs decreased $4.2 million and $9.0 million in the quarter-to-date and year-to-date periods, respectively, reflecting the impact of our restructuring initiatives. Syndicated programming decreased $6.1 million and $14.3 million and in the quarter-to-date and year-to-date periods, respectively. Network programming decreased $2.7 million and $7.0 million in the quarter-to-date and year-to-date periods, respectively, mainly due to carriage affiliation fees. Additionally, news service coverage costs decreased $2.4 million and $4.5 million in the quarter-to-date and year-to-date periods, respectively, driven by the shut down of the over-the-air broadcast for Scripps News. These cost decreases were partially offset by an increase in sports rights fees of $5.3 million and $14.3 million in the quarter-to-date and year-to-date periods, respectively.
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
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 decreased $8.1 million or 5.4% in the second quarter of 2025 and $16.6 million or 5.6% in the first six months of 2025 when compared to prior periods. Employee compensation costs decreased $1.3 million and $5.0 million in the quarter-to-date and year-to-date periods, respectively, due to savings achieved through our restructuring efforts. Advertising and promotions costs decreased $2.7 million and $6.0 million in the quarter-to-date and year-to-date periods, respectively. Our national sales commissions decreased $1.4 million and $4.0 million in the quarter-to-date and year-to-date periods, respectively.
Previous wording
Restructuring costs in the first quarter of 2025 and 2024 totaled $4.1 million and $5.0 million, respectively. Restructuring costs in 2025 included severance charges of $2.0 million and operating lease exit costs of $2.1 million. Restructuring costs in 2024 included severance charges and outside consulting fees associated with our strategic reorganization efforts.
Current wording
Restructuring costs in the second quarter of 2025 and 2024 totaled $0.6 million and $1.0 million, respectively. Year-to-date restructuring costs totaled $4.8 million and $6.0 million in 2025 and 2024, respectively. Restructuring costs in 2025 included severance charges of $2.6 million and operating lease exit costs of $2.1 million. Restructuring costs in 2024 included severance charges and outside consulting fees associated with our strategic reorganization efforts.
Previous wording
Depreciation and amortization of intangible assets remained relatively flat in the first three months of 2025 when compared to the prior year quarter.
Current wording
Depreciation and amortization of intangible assets decreased $1.3 million or 3.3% in the second quarter of 2025 and $1.5 million or 1.9% in the first six months of 2025 when compared to prior periods.
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 three months ended March 31, 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 six months ended June 30, 2024.
Previous wording
The effective income tax rate was 79% and 70% for the three months ended March 31, 2025 and 2024, respectively. 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 ($1.9 million expense in 2025 and $3.1 million expense in 2024), state deferred rate changes ($0.7 million benefit in 2025 and $1.1 million expense in 2024) and state NOL valuation allowance changes.
Current wording
The effective income tax rate was 5.2% and 65% for the six months ended June 30, 2025 and 2024, respectively. 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 ($2.1 million expense in 2025 and $3.8 million expense in 2024), state deferred rate changes ($1.4 million expense in 2025 and $0.7 million expense in 2024) and state NOL valuation allowance changes.
Previous wording
Total Local Media revenues decreased $27.4 million or 7.8% in the first three months of 2025 when compared to the prior year quarter. During this non-election year, political revenues decreased $11.9 million in the first three months of 2025 when compared to the prior year quarter. Distribution revenues decreased $10.3 million or 5.2% in the first three months of 2025 when compared to the prior year quarter. Distribution revenues were unfavorably impacted by mid-single-digit subscriber declines. Local Media revenues were also impacted by a decrease in core advertising revenues of $4.3 million or 3.1% in the first three months of 2025 when compared to the prior year quarter.
Current wording
Total Local Media revenues decreased $30.2 million or 8.3% in the second quarter of 2025 and $57.6 million or 8.0% in the first six months of 2025 when compared to prior periods. During this non-election year, political revenues decreased $25.5 million in the second quarter of 2025 and $37.4 million in the first six months of 2025 when compared to prior periods. Distribution revenues decreased $1.6 million or 0.8% in the second quarter of 2025 and $11.9 million or 3.0% in the first six months of 2025 when compared to prior periods. Distribution revenues were unfavorably impacted by high-single-digit subscriber declines. These subscriber declines were partially offset by rate increases which favorably impacted distribution revenues by 7.8% and 5.7% in the quarter-to-date and year-to-date periods, respectively. During the second quarter of 2025, we completed renewal negotiations on distribution agreements covering approximately 25% of our subscriber households. These renewal rates were effective as of March 31, 2025. Local Media revenues were also impacted by a decrease in core advertising revenues of $2.6 million or 1.9% in the second quarter of 2025 and $6.9 million or 2.5% in the first six months of 2025 when compared to prior periods.
Previous wording
Employee compensation and benefits decreased $1.6 million or 1.5% in the first three months of 2025 when compared to the prior year quarter due to savings achieved through our restructuring efforts.
Current wording
Employee compensation and benefits decreased $1.3 million or 1.2% in the second quarter of 2025 and $2.8 million or 1.3% in the first six months of 2025 when compared to prior periods due to savings achieved through our restructuring efforts.
Previous wording
Programming expense increased $9.0 million or 6.8% in the first three months of 2025 when compared to the prior year quarter. During 2024, we entered into a sports rights contract for the airing of games for the National Hockey League's Florida Panthers ("Panthers"), which began with the 2024-2025 season in October 2024. Costs attributed to the Florida Panthers, Vegas Golden Knights and Utah Hockey Club (formerly the Arizona Coyotes) sports rights agreements increased programming expense by $8.8 million in the first quarter of 2025.
Current wording
Programming expense increased $6.0 million or 4.9% in the second quarter of 2025 and $15.0 million or 5.9% in the first six months of 2025 when compared to prior periods. During 2025, we entered into a sports rights contract for the airing of games for the Women's National Basketball Association's Las Vegas Aces ("Aces"), which began with the start of the regular season in May 2025. During 2024, we entered into a sports rights contract for the airing of games for the National Hockey
Previous wording
Scripps Networks revenues, which are primarily comprised of advertising revenues, decreased $11.3 million or 5.4% in the first three months of 2025 when compared to the prior year quarter. 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 7.2% year-over-year. Lower ratings were partially offset by an increase in connected TV revenue, which increased revenues 3.8% year-over-year.
Current wording
Scripps Networks revenues, which are primarily comprised of advertising revenues, decreased $3.0 million or 1.4% in the second quarter of 2025 and $14.2 million or 3.4% in the first six months of 2025 when compared to prior periods. 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 8.3% 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 increased revenues by 5.6% and 4.7% in the quarter-to-date and year-to-date periods, respectively. An increase in advertising spots sold increased revenues by 2.4% and 1.2% in the quarter-to-date and year-to-date periods, respectively.
Previous wording
Employee compensation and benefits decreased $9.1 million or 30% for the first three months of 2025 when compared to the prior year quarter. In the fourth quarter of 2024, we shut down the over-the-air broadcast for Scripps News. The savings achieved from this Scripps News action and other restructuring efforts were the primary contributor to the year-over-year decrease in employee compensation and benefits.
Current wording
Employee compensation and benefits decreased $7.8 million or 26% in the second quarter of 2025 and $16.9 million or 28% for the first six months of 2025 when compared to prior periods. In the fourth quarter of 2024, we shut down the over-the-air broadcast for Scripps News. The savings achieved from this Scripps News action and other restructuring efforts were the primary contributor to the year-over-year decrease in employee compensation and benefits.
Previous wording
Other expenses decreased $3.9 million or 10% for the first three months of 2025 when compared to the prior year quarter. The shut down of the over-the-air broadcast for Scripps News accounted for $1.2 million of the year-over-year decrease. Other expenses also decreased due to lower national sales commissions of $1.1 million and lower advertising and promotion costs of $0.8 million.
Current wording
Other expenses decreased $3.7 million or 8.6% in the second quarter of 2025 and $7.5 million or 9.1% for the first six months of 2025 when compared to prior periods. The shut down of the over-the-air broadcast for Scripps News accounted for $1.8 million and $3.0 million of the quarter-to-date and year-to-date decreases, respectively. Other expenses also decreased due to lower national sales commissions of $0.5 million and $1.6 million in the quarter-to-date and year-to-date periods, respectively.
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 March 31, 2025, we had $24.0 million of cash on hand and $551 million of additional borrowing capacity under our revolving credit facility. As of March 31, 2025, we had $25.0 million outstanding under our credit facility. On April 10, 2025, we replaced the existing revolving credit facility with a new $208 million revolving credit facility, maturing on July 7, 2027, and a $70 million non-extended revolving credit facility, maturing on January 7, 2026. 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 facilities and securitization facility. Our primary source of cash is generated from our ongoing operations and can be affected by various risk and uncertainties. As of June 30, 2025, we had $31.7 million of cash on hand and $199 million of additional borrowing capacity under our revolving credit facilities and securitization facility. As of June 30, 2025, we had $70.0 million outstanding under our credit facilities and the maximum availability allowed and amount outstanding under the securitization facility was $366 million. Based on our current business plan, we believe our cash flow from operations and availability under the revolving credit facilities will provide sufficient liquidity to meet the Company’s operating needs for the next 12 months.
Previous wording
Cash used in operating activities in 2025 was $3.3 million compared to cash provided by operating activities in 2024 of $45.4 million. There was a year-over-year decrease in segment profit of $17.2 million and a $43.4 million decrease in cash provided by changes in certain working capital accounts, which were partially offset by a decrease of $9.5 million in cash interest paid. The decrease in cash provided by changes in working capital accounts was primarily driven by decreases in accounts payable, unearned revenue and accrued employee compensation and benefits.
Current wording
Cash used in operating activities in 2025 was $13.9 million compared to cash provided by operating activities in 2024 of $71.8 million. Cash used in operating activities reflects $38.1 million of debt refinancing transaction costs in 2025. Additionally, there was a year-over-year decrease in segment profit of $29.2 million and a $45.5 million increase in cash used by changes in certain working capital accounts, which were partially offset by a decrease of $19.3 million in cash interest paid and a decrease of $21.8 million in cash taxes paid. The increase in cash used by changes in working capital accounts was primarily driven by decreases in accounts payable and accrued employee compensation and benefits.
Previous wording
Cash used in investing activities was $9.9 million in 2025 compared to $5.1 million in 2024. Investing activities in 2025 reflect $6.8 million in cash used for investment purchases and $5.1 million in capital expenditures. 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 in 2024 was more than offset by $22.1 million of capital expenditures.
Current wording
Cash provided by investing activities was $16.5 million in 2025 compared to cash used in investing activities of $29.0 million in 2024. Investing activities in 2025 reflect $40.0 million of cash proceeds from the sale of our West Palm television station building, $6.9 million in cash used for investment purchases and $17.2 million in capital expenditures. 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 in 2024 was more than offset by $45.7 million of capital expenditures.
Previous wording
Cash provided by financing activities was $13.3 million in 2025 compared to cash used in financing activities of $45.4 million in 2024. During the first three months of 2025, we had net debt proceeds of $25.0 million, reflecting borrowings on our Revolving Credit Facility. These proceeds were partially offset by financing cost payments of $5.8 million. During the first three months of 2024, we had net debt payments of $40 million under our revolving credit facility.
Current wording
Cash provided by financing activities was $5.1 million in 2025 compared to cash used in financing activities of $51.5 million in 2024. During the first six months of 2025, we had net debt proceeds of $70.0 million under our revolving credit facilities and $885 million of proceeds from the issuance of new long-term debt under the April 10, 2025 credit agreement. During the first six months of 2025, we made payments on long-term debt of $1.3 billion to pay down our May 2026 and January 2028 term loans. On April 10, 2025, we also entered into a three-year accounts receivable securitization facility. During the first six months of 2025, proceeds received from the securitization facility were $423 million, while payments on the securitization facility totaled $57.1 million. In connection with the refinancing transactions, we paid $43.2 million in deferred financing costs and $2.8 million in debt extinguishment costs. During the first six months of 2024, we had net debt payments of $40 million under our revolving credit facility.
Previous wording
On July 31, 2023, we entered into the Eighth Amendment to the Third Amended Restated Credit Agreement ("Eighth Amendment"). Under the Eighth Amendment, we have a $585 million Revolving Credit Facility that matures on January 7, 2026. In connection with our credit agreement, we also have $1.3 billion of outstanding balance on our term loans as of March 31, 2025. The annual required principal payments on these term loans total $15.6 million.
Current wording
On April 10, 2025, we entered into a new credit agreement and completed a series of previously announced refinancing transactions. Under the new credit agreement, we have a revolving credit facility with aggregate commitments of up to $208 million due July 2027 and a non-extended revolving credit facility with aggregate commitments of up to $70.0 million due January 2026. In connection with the new credit agreement, we also have $883 million of outstanding balance on our term loans as of June 30, 2025. The annual required principal payments on these term loans total $8.9 million.
Previous wording
•Entered into a new three-year accounts receivable securitization facility with aggregate commitments of up to $450 million. The maximum availability allowed is limited by our eligible accounts receivable balances, as defined under the terms of the securitization facility.
Current wording
As part of the refinancing transactions, we entered into a new three-year accounts receivable securitization facility, scheduled to terminate April 10, 2028, with aggregate commitments of up to $450 million. The maximum availability allowed is limited by our eligible accounts receivable balances, as defined under the terms of the securitization facility. As of June 30, 2025, the maximum availability allowed and amount outstanding under the securitization facility was $366 million.
Previous wording
The new credit agreement we reached on April 10, 2025 contains covenants that, among other things, limit our ability to incur additional debt and provides for restrictions on certain payments (dividends and share repurchases). Additionally, we must be in compliance with certain leverage ratios in order to proceed with acquisitions. Our credit agreement also includes a provision that in certain circumstances we must use a portion of excess cash flow to repay debt. We granted the lenders pledges of our equity interests in our subsidiaries and security interests in substantially all other personal property including cash and equipment. The new credit agreement also contains covenants to comply with a maximum first lien net leverage ratio. For the new revolving credit facility, we must comply with a maximum first lien net leverage ratio of 3.50 to 1.0 through September 30, 2026, at which point it steps down to 3.25 times for the fiscal quarter ended December 31, 2026, and thereafter. For the non- extended revolving credit facility, we must comply with a maximum first lien net leverage ratio of 4.75 to 1.0 through September 30, 2025, at which point it steps down to 4.50 times for the fiscal quarter ending December 31, 2025, and thereafter.
Current wording
Our term loans and notes do not have maintenance covenants. The credit agreement contains covenants to comply with a maximum first lien net leverage ratio. For the new revolving credit facility, we must comply with a maximum first lien net leverage ratio of 3.50 to 1.0 through September 30, 2026, at which point it steps down to 3.25 times for the fiscal quarter ended December 31, 2026, and thereafter. For the non-extended revolving credit facility, we must comply with a maximum first lien net leverage ratio of 4.75 to 1.0 through September 30, 2025, at which point it steps down to 4.50 times for the fiscal quarter ending December 31, 2025, and thereafter. As of June 30, 2025, we were in compliance with our financial covenants.
Previous wording
On January 7, 2021 we issued 6,000 shares of series A preferred stock, having a face value of $100,000 per share. 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). We did not declare or provide payment for the first quarter of 2025 or any of the 2024 quarterly preferred dividends. Deferral of preferred stock dividend payments provides us better flexibility for accelerating deleveraging and maximizing the paydown of our traditional bank debt. At March 31, 2025, aggregated undeclared and unpaid cumulative dividends totaled $70.6 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
On January 7, 2021 we issued 6,000 shares of series A preferred stock, having a face value of $100,000 per share. 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). We did not declare or provide payment for the preferred stock dividend in either quarter of 2025 or any of the 2024 quarters. At June 30, 2025, aggregated undeclared and unpaid cumulative dividends totaled $85.7 million and the redemption value of the preferred stock totaled $718 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 2025, we anticipate contributing an additional $1.2 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 2025.
Current wording
During the remainder of 2025, we anticipate contributing an additional $1.0 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 2025.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
League's Florida Panthers ("Panthers"), which began with the 2024-2025 season in October 2024. Costs attributed to these sports rights agreements, as well as contractual rate increases for the Vegas Golden Knights and Utah Hockey Club (formerly the Arizona Coyotes) agreements increased programming expense by $4.8 million and $13.6 million in the quarter-to-date and year-to-date periods, respectively.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
•Replaced the existing revolving credit facility with a new revolving credit facility with aggregate commitments of up to $208 million due July 2027 and another new non-extended revolving credit facility with aggregate commitments of up to $70.0 million due January 2026; and