ATLANTA, March 15 /PRNewswire-FirstCall/ -- Gray
Television, Inc. ("Gray," "we" or "us") (NYSE: GTN) today
announced results from operations that it expects to report for the
three-month period and year ended December
31, 2009.
While we continue to operate our business in a challenging
environment, the operating results we expect to report following
completion of the audit of our financial statements are better than
we had initially forecasted. We have seen some improvements in our
core local and national advertising revenue and believe we are well
positioned to benefit from expected increases in political
advertising in 2010. Our preliminary operating results for the
three-month period and the year ended December 31, 2009 include the following:
Highlights for the Three-Month Period Ended December 31, 2009 (Unaudited):
--------------------------------------------------------------------------
Three Months Ended December 31,
---------------------------------------
2009 2008 % Change
------------ ------------ -------------
(in thousands, except for percentages)
Revenues (less agency commissions) $77,517 $94,803 (18)%
Operating expenses (before
depreciation, amortization,
impairment and gain on disposal
of assets):
Broadcast expense $50,589 $51,189 (1)%
Corporate and administrative
expense $3,222 $4,082 (21)%
Revenue Highlights for the Three-Month Period Ended
December 31, 2009
(Unaudited):
Local advertising revenue increased $2.1
million, or 5%, to $47.1
million.
National advertising revenue decreased $0.2 million, or 1%, to $15.9 million.
Internet advertising revenue remained unchanged at $3.2 million.
Political advertising revenue decreased $22.4 million, or 82%, to $5.0 million.
Retransmission consent revenue increased $2.9 million, or 346%, to $3.7 million.
Production and other revenue decreased $0.2 million, or 10%, to $1.9 million.
Consulting revenue from the Young Broadcasting Agreement equaled
$0.6 million in the fourth quarter of
2009.
Highlights for the Year Ended December 31, 2009 (Unaudited):
------------------------------------------------------------
Year Ended December 31,
--------------------------------------
2009 2008 % Change
------------- ----------- ----------
(in thousands, except for percentages)
Revenues (less agency commissions) $270,374 $327,176 (17)%
Operating expenses (before
depreciation, amortization,
impairment and gain on disposal
of assets):
Broadcast expense $187,583 $199,572 (6)%
Corporate and administrative
expense $14,168 $14,097 1 %
Revenue Highlights for the Year Ended December 31, 2009 (Unaudited):
Local advertising revenue decreased $15.7
million, or 8%, to $170.8
million.
National advertising revenue decreased $14.5 million, or 21%, to $53.9 million.
Internet advertising revenue decreased $0.4 million, or 4%, to $11.4 million.
Political advertising revenue decreased $38.5 million, or 79%, to $10.0 million.
Retransmission consent revenue increased $12.6 million, or 414%, to $15.6 million.
Production and other revenue decreased $1.0 million, or 13%, to $7.1 million.
Consulting revenue resulting from the Young Broadcasting
Agreement equaled $0.9 million for
the year ended December 31, 2009.
Other Financial Data (Unaudited):
---------------------------------
December 31, 2009 December 31, 2008
----------------- -----------------
(in thousands)
Cash $16,000 $30,649
Long-term debt, including
current portion(1) $791,809 $800,380
Preferred stock(2) $93,386 $92,183
(1) As of December 31, 2009, long-term debt, including current portion,
does not include our accrued facility fee of $18.3 million.
(2) As of December 31, 2009, preferred stock does not include unaccreted
original issuance costs and accrued preferred stock dividends of $6.6
million and $18.9 million, respectively. As of December 31, 2008,
preferred stock does not include unaccreted original issuance costs and
accrued preferred stock dividends of $7.8 million and $3.0 million,
respectively.
Senior Credit Facility:
Our senior credit facility requires us to maintain compliance
with various financial covenants, including keeping our leverage
ratio below certain maximum amounts. The continuing general
economic recession, including the significant decline in
advertising by the automotive industry, has adversely impacted our
ability to generate cash from operations during 2009 and continuing
into the first quarter of 2010. Compliance with the leverage ratio
covenant on and after March 31, 2010,
when it reduces from 8.75 to 7.0, will depend on the
interrelationship of our ability to reduce outstanding debt and the
results of our operations during future periods. Based upon
our financial projections as of the date of this press release, we
do not expect to be in compliance with our leverage ratio as of
March 31, 2010. We have
commenced discussions with lenders under the senior credit facility
to seek certain modifications to the terms of that credit facility,
including the leverage ratio covenant. However, we can
provide no assurances that any amendment, or waiver of such
covenant provisions, would be obtained by us nor of its terms. If
we are unable to obtain any required amendment or waiver on
satisfactory terms to us, we would be in default under the senior
credit facility and any such default could have a material effect
on our liquidity and could allow the lenders that hold a majority
of the outstanding debt under our facility to demand an
acceleration of the repayment of all outstanding amounts under our
senior credit facility.
Reporting of Full Financial Results for 2009
We expect to report full financial results for 2009 following
completion of our discussions with our lenders, the completion of
the audit of our financial statements for 2009 and in connection
with the filing of our Annual Report on Form 10-K for the year
ended December 31, 2009.
Gray Television, Inc.
Gray Television, Inc. is a television broadcast company
headquartered in Atlanta, Georgia.
We currently operate 36 television stations serving 30
markets. Each of the stations are affiliated with either CBS
(17 stations), NBC (10 stations), ABC (8 stations) or FOX (1
station). In addition, we currently operate 39 digital second
channels including 1 ABC, 4 FOX, 7 CW, 18 MyNetworkTV, 2 Universal
Sports Network affiliates and 7 local news/weather channels in
certain of our existing markets.
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 year ending December 31, 2009 and 2010 or other periods,
internet strategies, future expenses 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 and its attachments is as of
March 15, 2010. 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, 2008 and in subsequently
filed quarterly reports on Form 10-Q, which are on file with the
SEC and available at the SEC's website at www.sec.gov.
Web site: www.gray.tv
SOURCE Gray Television, Inc.