ATLANTA, Nov. 8, 2016 /PRNewswire/ -- Gray
Television, Inc. ("Gray," "we," "us" or "our") (NYSE: GTN and
GTN.A) announced today that its Board of Directors has
authorized the Company to repurchase up to an additional
$75 million of its outstanding
common stock (GTN) prior to December 31,
2019.
This authorization is in addition to existing authorization for
the Company to repurchase up to an aggregate of 5,000,000 shares of
its common stock and Class A common stock at such times as
management deems appropriate, subject to any contractual or other
restrictions. As of November 4,
2016, the Company had authority to purchase 279,200 shares
of our common stock and Class A common stock under the previous
authorization, which did not have a termination date.
The Company previously has stated that its Board would closely
review its capital allocation throughout 2016 and would consider
modifications following the political election season and the
conclusion of the FCC's broadcast spectrum auction. The Board
decided to act at this time, however, based upon its determination
that current market prices undervalue the Company's long-term
value, which provides an opportunity for a return of capital to
stockholders.
Gray Chairman and CEO Hilton H. Howell,
Jr., explained, "Reducing our debt level remains a high
priority for Gray as we end this political season. But we
also see this as an opportunity to provide a return of capital to
our stockholders. We therefore intend to judiciously exercise
our new authority to repurchase stock while keeping a close eye on
our leverage. Simply put, we anticipate that the total
repurchases in any year would range between 10% and 20% of our free
cash flow."
The extent to which the Company repurchases its shares, the
number of shares and the timing of any repurchases will depend on
general market conditions, regulatory requirements, alternative
investment opportunities and other considerations. The
repurchase program does not require the Company to repurchase a
minimum number of shares, and it may be modified, suspended or
terminated at any time without prior notice. This new
authorization prohibits the Company from purchasing shares directly
from the Company's officers, directors, or the Gray Television,
Inc. Capital Accumulation Plan (401K plan).
As of November 4, 2016, Gray has
66,285,797 shares of common stock outstanding and 6,404,862 shares
of Class A common stock outstanding. Shares repurchased will
be held as treasury shares and may be used for general corporate
purposes including, but not limited to, satisfying obligations
under our employee benefit plans and long-term incentive plan.
About Gray Television:
Gray Television, Inc. (NYSE: GTN and GTN.A) is a television
broadcast company headquartered in Atlanta, Georgia, that owns and operates
television stations and leading digital assets in markets
throughout the United States. We currently own and/or operate
television stations across 51 television markets that collectively
broadcast over 190 program streams including 36 channels affiliated
with the CBS Network, 27 channels affiliated with the NBC Network,
19 channels affiliated with the ABC Network and 14 channels
affiliated with the FOX Network. We own and/or operate the
number-one or number-two ranked television station operations in
essentially all of our markets, which collectively cover
approximately 9.5 percent of total United
States television households.
Cautionary Statements Regarding Forward-Looking
Statements
This press release contains statements that constitute
"forward-looking statements" within the meaning of the federal
securities laws. These "forward-looking statements" are
statements other than statements of historical fact and may relate
to, among other things, the timing and amount of any stock
repurchases, and our liquidity position. Actual results are
subject to a number of risks and uncertainties and may differ
materially from the current expectations and beliefs discussed in
this press release. All information set forth in this release
is as of November 8, 2016. We
do not intend, and undertake no duty, to update this information to
reflect future events or circumstances. Information about
certain potential factors that could affect our business and
financial results and cause actual results to differ materially
from those expressed or implied in any forward-looking statements
are included under the captions "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations," in our Annual Report on Form 10-K for the year ended
December 31, 2015 and our Quarterly
Reports on Form 10-Q for the quarters ended March 31, 2016 and June
30, 2016, each of which is on file with the Securities and
Exchange Commission ("SEC") and available at the SEC's website at
www.sec.gov.
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SOURCE Gray Television, Inc.