ATLANTA, May 8, 2018 /PRNewswire/ -- Gray Television,
Inc. ("Gray," "we," "us" or "our") (NYSE: GTN and GTN.A) today
announces record results of operations for the three-months ended
March 31, 2018, including record
revenue, net income and Broadcast Cash Flow (a non-GAAP financial
measure, defined below). Our net income per diluted share for the
first quarter of 2018 was $0.22.
Financial Highlights and Selected Operating Data:
- Record First Quarter Revenue, Net Income and
Broadcast Cash Flow - Our revenue for the first quarter of 2018
was $226.3 million, increasing
$22.8 million, or 11%, from the first
quarter of 2017. Our net income was $19.9
million for the first quarter of 2018, increasing
$9.4 million, or 90% from the first
quarter of 2017. Our Broadcast Cash Flow was $77.7 million for the first quarter of 2018,
increasing $7.3 million, or 10%, from
the first quarter of 2017.
- Retransmission - We have now completed negotiations to
renew the retransmission consent agreements with multichannel video
programming distributors ("MVPDs") that expired at the end of 2017
and the beginning of 2018. We currently anticipate that gross
retransmission revenue for calendar year 2018 will be within a
range of approximately $350.0 million
to $353.0 million and retransmission
revenue, net of retransmission expense, will be within a range of
approximately $178.5 million to
$180.0 million.
- Stock Repurchases - During the first quarter of 2018, we
repurchased approximately 1.6 million shares of our common stock on
the open market at an average price of $12.64 per share, including commissions, for a
total cost of approximately $19.6
million.
- Total Leverage Ratio - As of March 31, 2018, our total leverage ratio, as
defined in our senior credit facility, was 4.23 times on a trailing
eight-quarter basis, netting our total cash balance of $443.4 million.
|
Three Months Ended
March 31,
|
|
|
|
|
|
%
Change
|
|
|
|
%
Change
|
|
|
|
|
|
2018
to
|
|
|
|
2018
to
|
|
2018
|
|
2017
|
|
2017
|
|
2016
|
|
2016
|
|
(dollars in
thousands)
|
Revenue (less agency
commissions):
|
|
|
|
|
|
|
|
|
|
Total
|
$
226,258
|
|
$
203,461
|
|
11 %
|
|
$
173,723
|
|
30 %
|
Political
|
$
5,775
|
|
$
1,321
|
|
337 %
|
|
$
9,655
|
|
(40)%
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
(1)(3):
|
|
|
|
|
|
|
|
|
|
Broadcast
|
$
149,654
|
|
$
133,556
|
|
12 %
|
|
$
108,536
|
|
38 %
|
Corporate and
administrative
|
$
8,260
|
|
$
7,710
|
|
7 %
|
|
$
15,670
|
|
(47)%
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
19,945
|
|
$
10,505
|
|
90 %
|
|
$
8,990
|
|
122 %
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Cash Flow
(2):
|
|
|
|
|
|
|
|
|
|
Broadcast Cash Flow
(3)
|
$
77,684
|
|
$
70,379
|
|
10 %
|
|
$
65,926
|
|
18 %
|
Broadcast Cash Flow
Less
|
|
|
|
|
|
|
|
|
|
Cash Corporate
Expenses (3)
|
$
70,373
|
|
$
63,643
|
|
11 %
|
|
$
51,226
|
|
37 %
|
Free Cash
Flow
|
$
49,298
|
|
$
36,593
|
|
35 %
|
|
$
24,215
|
|
104 %
|
|
(1)
|
Excludes
depreciation, amortization and (gain) loss on disposal of
assets.
|
(2)
|
See definition of
non-GAAP terms and a reconciliation of the non-GAAP amounts to net
income included elsewhere herein.
|
(3)
|
Amounts in 2017 and
2016 have been reclassified to give effect to the implementation of
Accounting Standards Update 2017-07, Compensation – Retirement
Benefits (Topic 715) – Improving the Presentation of Net
Periodic Pension Cost and Net Postretirement Benefit Cost ("ASU
2017-07").
|
Results of
Operations for the First Quarter of 2018
|
|
Revenue (less
agency commissions).
|
|
The table below presents our
revenue (less agency commissions) by type for the first quarter of
2018
and 2017 (dollars in thousands):
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|
|
|
|
Percent
|
|
|
|
Percent
|
|
Increase
|
|
Increase
|
|
|
Amount
|
|
of
Total
|
|
Amount
|
|
of
Total
|
|
(Decrease)
|
|
(Decrease)
|
Revenue (less
agency commissions):
|
|
|
|
|
|
|
|
|
|
|
|
|
Local (including
internet/digital/mobile)
|
|
$
105,469
|
|
46.6%
|
|
$
102,597
|
|
50.4%
|
|
$
2,872
|
|
3 %
|
National
|
|
24,512
|
|
10.8%
|
|
24,814
|
|
12.2%
|
|
(302)
|
|
(1)%
|
Political
|
|
5,775
|
|
2.6%
|
|
1,321
|
|
0.6%
|
|
4,454
|
|
337 %
|
Retransmission
consent
|
|
85,551
|
|
37.8%
|
|
67,573
|
|
33.2%
|
|
17,978
|
|
27 %
|
Other
|
|
4,951
|
|
2.2%
|
|
7,156
|
|
3.6%
|
|
(2,205)
|
|
(31)%
|
Total
|
|
$
226,258
|
|
100.0%
|
|
$
203,461
|
|
100.0%
|
|
$
22,797
|
|
11 %
|
We acquired three television stations between April 1, 2017 and March
31, 2018. Collectively, these three television stations
accounted for $9.6 million of the
increase in our total revenue for the first quarter of 2018.
Including the revenue attributable to these three stations, local
and national advertising revenue increased, in part, due to the
$2.3 million of revenue we earned
from the broadcast of the 2018 Super Bowl on our NBC-affiliated
stations, compared to $0.6 million
that we earned from the broadcast of the 2017 Super Bowl on
our FOX-affiliated stations. In addition, revenue from the
broadcast of the 2018 Winter Olympic Games on our NBC-affiliated
stations was approximately $5.5
million.
Broadcast Operating Expenses.
Broadcast operating expenses (before depreciation, amortization
and gain or loss on disposal of assets) increased $16.1 million, or 12%, to $149.7 million for the first quarter of 2018
compared to the first quarter of 2017.
The three television stations that we acquired between
April 1, 2017 and March 31, 2018, collectively, accounted for
$6.6 million of the increase in
broadcast operating expenses for the first quarter of 2018.
Including the broadcast operating expenses attributable to these
three stations, significant changes in our total broadcast
operating expenses included:
- Non-compensation expense increased $13.1
million, or 19%, in the first quarter of 2018 compared to
the first quarter of 2017. This increase was due largely to an
increase in retransmission expense of $9.4
million. The remaining increase was due primarily to
increases in programming expense, licensing fees and professional
fees.
- Compensation expense increased $2.9
million, or 4%, in the first quarter of 2018 when compared
to the first quarter of 2017. Non-cash stock based compensation
expenses were $1.2 million in the
first quarter of 2018, compared to $0.3
million in the first quarter of 2017.
Corporate and Administrative Expenses.
Corporate and administrative expenses (before depreciation,
amortization and gain or loss on disposal of assets) increased
$0.6 million, or 7%, to $8.3 million in the first quarter of 2018 as
compared to the first quarter of 2017. The increase reflects the
following:
- Non-compensation expense increased $0.3
million.
- Compensation expense increased $0.3
million, primarily due to routine increases in compensation.
Non-cash stock based compensation expenses were $0.9 million in the first quarter of 2018
compared to $1.0 million in the first
quarter of 2017.
Loss from Early Extinguishment of Debt.
In the first quarter of 2017, we recorded a loss from early
extinguishment of debt of approximately $2.5
million related to the amendment and restatement of our
senior credit facility.
Taxes.
During the first quarter of 2018, we made aggregate federal and
state income tax payments of approximately $8.5 million. During the remainder of 2018, we
anticipate making income tax payments (net of refunds) of
approximately $36.0 million.
Gray Television,
Inc.
|
Selected Operating
Data (Unaudited)
|
(in thousands except
for net income per share data)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2018
|
|
2017
|
|
|
|
|
Revenue (less agency
commissions)
|
$
226,258
|
|
$
203,461
|
Operating expenses
before depreciation,
|
|
|
|
amortization and
(gain) loss on disposal of assets, net:
|
|
|
|
Broadcast
(1)
|
149,654
|
|
133,556
|
Corporate and
administrative (1)
|
8,260
|
|
7,710
|
Depreciation
|
13,694
|
|
12,629
|
Amortization of
intangible assets
|
5,436
|
|
5,567
|
(Gain) loss on
disposal of assets, net
|
(821)
|
|
527
|
Operating
expenses
|
176,223
|
|
159,989
|
Operating
income
|
50,035
|
|
43,472
|
Other income
(expense):
|
|
|
|
Miscellaneous income,
net (1)
|
560
|
|
93
|
Interest
expense
|
(24,250)
|
|
(23,191)
|
Loss from early
extinguishment of debt
|
-
|
|
(2,540)
|
Income before income
taxes
|
26,345
|
|
17,834
|
Income tax
expense
|
6,400
|
|
7,329
|
Net income
|
$
19,945
|
|
$
10,505
|
|
|
|
|
Basic per share
information:
|
|
|
|
Net income
|
$
0.22
|
|
$
0.15
|
Weighted-average
shares outstanding
|
89,058
|
|
71,877
|
|
|
|
|
Diluted per share
information:
|
|
|
|
Net income
|
$
0.22
|
|
$
0.14
|
Weighted-average
shares outstanding
|
89,576
|
|
72,519
|
|
(1) Amounts in 2017 have
been reclassified to give effect to the implementation of ASU
2017-07.
|
Other Financial
Data:
|
|
|
As
of
|
|
March
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
(in
thousands)
|
|
|
|
|
Cash
|
$
443,425
|
|
$
462,399
|
Long-term debt,
including current portion
|
$
1,836,828
|
|
$
1,837,428
|
Borrowing
availability under our revolving credit facility
|
$
100,000
|
|
$
100,000
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
|
(in
thousands)
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
$
14,407
|
|
$
(483)
|
Net cash used in
investing activities
|
(7,817)
|
|
(293,393)
|
Net cash used in
financing activities
|
(25,564)
|
|
(7,772)
|
Net decrease in
cash
|
$
(18,974)
|
|
$
(301,648)
|
Guidance for the
Three-Months Ending June 30, 2018
|
|
Based on our current forecasts
for the quarter ending June 30, 2018 (the "second quarter of
2018"), we
anticipate the changes from the quarter ended June 30, 2017 (the
"second quarter of 2017") as outlined
below.
|
|
|
|
Three Months
Ending June 30,
|
|
|
Low
End
|
|
%
Change
|
|
High
End
|
|
%
Change
|
|
|
|
|
Guidance
|
|
From
|
|
Guidance
|
|
From
|
|
|
|
|
for
|
|
As-Reported
|
|
for
|
|
As-Reported
|
|
As-Reported
|
|
|
the
Second
|
|
Second
|
|
the
Second
|
|
Second
|
|
Second
|
|
|
Quarter
of
|
|
Quarter
of
|
|
Quarter
of
|
|
Quarter
of
|
|
Quarter
of
|
Selected operating
data:
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2017
|
|
|
(dollars in
thousands)
|
OPERATING
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
Revenue (less agency
commissions)
|
|
$248,000
|
|
9 %
|
|
$254,000
|
|
12 %
|
|
$
226,681
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
(1)
|
|
|
|
|
|
|
|
|
|
|
(before depreciation,
amortization and
|
|
|
|
|
|
|
|
|
|
|
gain or loss on
disposals of assets):
|
|
|
|
|
|
|
|
|
|
|
Broadcast
|
|
$149,000
|
|
11 %
|
|
$151,000
|
|
13 %
|
|
$
133,657
|
Corporate and
administrative
|
|
$
9,250
|
|
10 %
|
|
$
10,000
|
|
19 %
|
|
$
8,421
|
|
|
|
|
|
|
|
|
|
|
|
OTHER SELECTED
DATA:
|
|
|
|
|
|
|
|
|
|
|
Political advertising
revenue
|
|
|
|
|
|
|
|
|
|
|
(less agency
commissions)
|
|
$
13,000
|
|
251 %
|
|
$
15,000
|
|
305 %
|
|
$
3,708
|
|
(1) Amounts in 2017 have been
reclassified to give effect to the implementation of ASU
2017-07.
|
Comments on Second Quarter of 2018 Guidance:
Revenue.
Based on our current forecasts for the second quarter of 2018,
we anticipate the following changes from the second quarter of 2017
as outlined below:
- We believe our second quarter of 2018 local advertising revenue
(including internet/digital/mobile) will change to be within a
range of approximately $115.8 million
to $117.0 million, or -2% to -1%.
- We believe our second quarter of 2018 national advertising
revenue will change to be within a range of approximately
$28.8 million to $30.0 million, or -7% to -3%.
- We believe our second quarter of 2018 political revenue will be
within a range of approximately $13.0
million to $15.0 million.
- We have completed negotiations to renew the retransmission
consent agreements with MVPDs that expired at the end of 2017 and
the beginning of 2018. We currently anticipate that gross
retransmission revenue for calendar year 2018 will be within a
range of approximately $350.0 million
to $353.0 million and retransmission
revenue, net of retransmission expense, will be within a range of
approximately $178.5 million to
$180.0 million. We believe our second
quarter of 2018 retransmission consent revenue will be within a
range of approximately $87.0 million
to $88.0 million.
Broadcast Operating Expenses (before depreciation,
amortization and gain or loss on disposal of assets,
net).
For the second quarter of 2018, we anticipate our broadcast
operating expenses will increase from the second quarter of 2017,
reflecting increases in retransmission expense of approximately
$8.2 million, to total approximately
$42.5 million for the second quarter
of 2018.
Corporate and Administrative Operating Expenses (before
depreciation, amortization and gain or loss on disposal of
assets).
For the second quarter of 2018, we anticipate our corporate and
administrative operating expense will increase approximately
$1.2 million to approximately
$9.6 million, primarily due to
routine increases in compensation and professional service
fees.
The Company
We are a television broadcast company headquartered in
Atlanta, Georgia, that owns and
operates over 100 television stations across 57 television markets
that collectively broadcast over 200 program streams including over
100 channels affiliated with the CBS Network, the NBC Network, the
ABC Network and the FOX Network. Our portfolio includes the
number-one or number-two ranked television station for both overall
audience and news audience in all 57 of our 57 markets, which
collectively cover approximately 10.4 percent of total United States television households.
Cautionary Statements for Purposes of the "Safe Harbor"
Provisions of the Private Securities Litigation Reform Act
This press release contains statements that constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and the federal securities
laws. These "forward-looking statements" are not statements of
historical facts, and may include, among other things, statements
regarding our current expectations and beliefs of operating results
for the second quarter of 2018 or other periods, future income tax
payments and other future events. 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 the
date hereof. 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, 2017 and may
be contained in reports subsequently filed with the U.S. Securities
and Exchange Commission (the "SEC") and available at the SEC's
website at www.sec.gov.
Conference Call Information
We will host a conference call to discuss our first quarter
operating results on May 8, 2018. The
call will begin at 10:00 a.m. Eastern
Time. The live dial-in number is 1-888-516-2443 and the
confirmation code is 3100808. The call will be webcast live and
available for replay at www.gray.tv. The taped replay of the
conference call will be available at 1-888-203-1112, Confirmation
Code: 3100808 until June 7, 2018.
Web site: www.gray.tv
Effects of Acquisitions and Divestitures on Our Results of
Operations and Non-GAAP Terms
From January 1, 2016 (the
beginning of the earliest period presented) through March 31, 2018, we completed eight acquisition
transactions and one divestiture transaction. As more fully
described in our 2017 Form 10-K filed with the Securities and
Exchange Commission and in our other prior disclosures, these
transactions added a net total of 21 television stations to our
operations. We refer to these transactions, collectively, as the
"Acquisitions."
From time to time, Gray supplements its financial results
prepared in accordance with accounting principles generally
accepted in the United States of
America ("GAAP") by disclosing the non-GAAP financial
measures Broadcast Cash Flow, Broadcast Cash Flow Less Cash
Corporate Expenses, Free Cash Flow, Operating Cash Flow as defined
in the Senior Credit Agreement and Total Leverage Ratio, Net of All
Cash. These non-GAAP amounts are used by us to approximate amounts
used to calculate key financial performance covenants contained in
our debt agreements and are used with our GAAP data to evaluate our
results and liquidity.
We define Broadcast Cash Flow as net income plus loss from early
extinguishment of debt, corporate and administrative expenses,
broadcast non-cash stock based compensation, depreciation and
amortization (including amortization of intangible assets and
program broadcast rights), any loss on disposal of assets, any
miscellaneous expense, interest expense, any income tax expense,
non-cash 401(k) expense less any gain on disposal of assets, any
miscellaneous income, any income tax benefits and payments for
program broadcast obligations.
We define Broadcast Cash Flow Less Cash Corporate Expenses as
net income plus loss from early extinguishment of debt, non-cash
stock based compensation, depreciation and amortization (including
amortization of intangible assets and program broadcast rights),
any loss on disposal of assets, any miscellaneous expense, interest
expense, any income tax expense, and non-cash 401(k) expense, less
any gain on disposal of assets, any miscellaneous income, any
income tax benefits, payments for program and broadcast
obligations.
We define Free Cash Flow as net income plus loss from early
extinguishment of debt, non-cash stock based compensation,
depreciation and amortization (including amortization of intangible
assets and program broadcast rights), any loss on disposal of
assets, any miscellaneous expense, amortization of deferred
financing costs, any income tax expense, non-cash 401(k) expense
and pension expense, less any gain on disposal of assets, any
miscellaneous income, any income tax benefits, payments for program
broadcast obligations, pension income, contributions to pension
plans, amortization of original issue premium on our debt,
purchases of property and equipment (net of any insurance proceeds)
and the payment of income taxes (net of any refunds received).
We define Operating Cash Flow as defined in our Senior Credit
Agreement as net income plus loss from early extinguishment of
debt, non-cash stock based compensation, depreciation and
amortization (including amortization of intangible assets and
program broadcast rights), any loss on disposal of assets, any
miscellaneous expense, interest expense, any income tax expense,
non-cash 401(k) expense, trade expense and pension expenses less
any gain on disposal of assets, any miscellaneous income, any
income tax benefits, payments for program broadcast obligations,
trade income, pension income and contributions to pension plans.
Operating Cash Flow as defined in our Senior Credit Agreement gives
effect to the revenue and broadcast expenses of the Acquisitions as
if they had been acquired or divested, respectively, on
January 1, 2016. It also gives effect
to certain operating synergies expected from the Acquisitions and
the financings and adds back professional fees incurred in
completing Acquisitions. Certain of the financial information
related to the Acquisitions has been derived from, and adjusted
based on, unaudited, un-reviewed financial information prepared by
other entities, which Gray cannot independently verify. We cannot
assure you that such financial information would not be materially
different if such information were audited or reviewed and no
assurances can be provided as to the accuracy of such information,
or that our actual results would not differ materially from this
financial information if the Acquisitions had been completed at the
stated date. In addition, the presentation of Operating Cash Flow
as Defined in the Senior Credit Agreement and the adjustments to
such information, including expected synergies resulting from such
transactions, may not comply with GAAP or the requirements for pro
forma financial information under Regulation S-X under the
Securities Act.
Our Total Leverage Ratio, Net of All Cash is determined by
dividing our Adjusted Total Indebtedness, Net of All Cash by our
Operating Cash Flow as defined in our Senior Credit Agreement,
divided by two. Our Adjusted Total Indebtedness, net of all cash
represents the total outstanding principal of our long-term debt,
plus certain other obligations as defined in our Senior Credit
Agreement, less all cash. Our Operating Cash Flow as defined in our
Senior Credit Agreement, divided by two represents our average
annual Operating Cash Flow as defined in our Senior Credit
Agreement for the preceding eight quarters.
These non-GAAP terms are not defined in GAAP and our definitions
may differ from, and therefore not be comparable to, similarly
titled measures used by other companies, thereby limiting their
usefulness. Such terms are used by management in addition to, and
in conjunction with, results presented in accordance with GAAP and
should be considered as supplements to, and not as substitutes for,
net income and cash flows reported in accordance with GAAP.
Reconciliation of Non-GAAP
Terms, in thousands:
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2018
|
|
2017
|
|
2016
|
|
|
|
|
|
|
Net income
|
$
19,945
|
|
$
10,505
|
|
$
8,990
|
Adjustments to
reconcile from net income to Broadcast Cash
|
|
|
|
|
|
Flow Less Cash
Corporate Expenses:
|
|
|
|
|
|
Depreciation
|
13,694
|
|
12,629
|
|
11,126
|
Amortization of
intangible assets
|
5,436
|
|
5,567
|
|
3,888
|
Non-cash stock-based
compensation
|
2,157
|
|
1,338
|
|
1,284
|
(Gain) loss on
disposal of assets, net
|
(821)
|
|
527
|
|
(1,648)
|
Miscellaneous income,
net (1)
|
(560)
|
|
(93)
|
|
(529)
|
Interest
expense
|
24,250
|
|
23,191
|
|
21,275
|
Loss from early
extinguishment of debt
|
-
|
|
2,540
|
|
-
|
Income tax
expense
|
6,400
|
|
7,329
|
|
6,415
|
Amortization of
program broadcast rights
|
5,346
|
|
5,222
|
|
4,396
|
Payments for program
broadcast rights
|
(5,474)
|
|
(5,119)
|
|
(3,977)
|
Common stock
contributed to 401(k) plan
|
-
|
|
7
|
|
6
|
Corporate and
administrative expenses excluding
|
|
|
|
|
|
depreciation,
amortization of intangible assets and
|
|
|
|
|
|
non-cash stock-based
compensation (1)
|
7,311
|
|
6,736
|
|
14,700
|
Broadcast Cash
Flow
|
77,684
|
|
70,379
|
|
65,926
|
Corporate and
administrative expenses excluding
|
|
|
|
|
|
depreciation,
amortization of intangible assets and
|
|
|
|
|
|
non-cash stock-based
compensation (1)
|
(7,311)
|
|
(6,736)
|
|
(14,700)
|
Broadcast Cash
Flow Less Cash Corporate Expenses
|
$
70,373
|
|
$
63,643
|
|
$
51,226
|
Contributions to
pension plans
|
-
|
|
(624)
|
|
(520)
|
Interest
expense
|
(24,250)
|
|
(23,191)
|
|
(21,275)
|
Amortization of
deferred financing costs
|
1,157
|
|
1,151
|
|
1,071
|
Amortization of net
original issue premium on
|
|
|
|
|
|
5.875% senior notes
due 2026
|
(153)
|
|
(153)
|
|
(216)
|
Purchases of property
and equipment
|
(6,280)
|
|
(3,977)
|
|
(5,931)
|
Income taxes paid,
net of refunds
|
8,451
|
|
(256)
|
|
(140)
|
Free Cash
Flow
|
$
49,298
|
|
$
36,593
|
|
$
24,215
|
|
(1) Amounts in 2017 and
2016 have been reclassified to give effect to the implementation of
ASU 2017-07.
|
Reconciliation of
Total Leverage Ratio, Net of All Cash, in thousands except for
ratio:
|
|
|
|
Eight Quarters
Ended
|
|
|
March 31,
2018
|
Operating Cash
Flow as defined in our Senior Credit Agreement:
|
|
|
Net income
|
|
$
335,180
|
Depreciation
|
|
100,464
|
Amortization of
intangible assets
|
|
43,216
|
Non-cash stock-based
compensation
|
|
14,276
|
(Gain) loss on
disposal of assets, net
|
|
(73,044)
|
Miscellaneous
(income) expense, net
|
|
5
|
Interest
expense
|
|
195,470
|
Loss from early
extinguishment of debt
|
|
34,838
|
Income tax (benefit)
expense
|
|
(25,271)
|
Amortization of
program broadcast rights
|
|
40,984
|
Common stock
contributed to 401(k) plan
|
|
39
|
Payments for program
broadcast rights
|
|
(42,308)
|
Pension
expense
|
|
(631)
|
Contributions to
pension plans
|
|
(5,652)
|
Adjustments for
stations acquired or divested, financings and expected
|
|
|
synergies during the
eight quarter period
|
|
49,025
|
Professional fees
related to acquisitions and divestitures
|
|
3,031
|
Operating Cash
Flow as defined in our Senior Credit Agreement
|
|
$
669,622
|
Operating Cash
Flow as defined in our Senior Credit Agreement,
|
|
|
divided by
two
|
|
$
334,811
|
|
|
|
|
|
March 31,
2018
|
Adjusted Total
Indebtedness:
|
|
|
Total outstanding
principal, including current portion
|
|
$
1,858,630
|
Capital leases and
other debt
|
|
714
|
Cash
|
|
(443,425)
|
Adjusted Total
Indebtedness, Net of All Cash
|
|
$
1,415,919
|
Total Leverage
Ratio, Net of All Cash
|
|
4.23
|
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SOURCE Gray Television, Inc.