ATLANTA, Aug. 12 /PRNewswire-FirstCall/ -- Gray
Television, Inc. ("Gray," "we," "us" or "our") (NYSE: GTN)
today announced results from operations for the three-month period
(the "second quarter") and six-month period ended June 30, 2010 as compared to the three-month and
six-month periods ended June 30,
2009.
Highlights:
For the three-month and six-month periods ended June 30, 2010, our total net revenue, broadcast
expenses and corporate and administrative expenses were as
follows:
|
Three Months Ended June
30,
|
|
|
2010
|
|
2009
|
|
% Change
|
|
|
(in thousands except for
percentages)
|
|
Revenues (less agency
commissions)
|
$ 75,636
|
|
$ 65,057
|
|
16 %
|
|
|
|
|
|
|
|
|
Operating expenses (before
depreciation,
|
|
|
|
|
|
|
amortization and gain on
disposal of assets):
|
|
|
|
|
|
|
Broadcast
|
$ 46,092
|
|
$ 45,167
|
|
2 %
|
|
|
|
|
|
|
|
|
Corporate and administrative
expense
|
$ 3,837
|
|
$ 3,592
|
|
7 %
|
|
|
|
|
|
|
|
|
|
Six Months Ended June
30,
|
|
|
2010
|
|
2009
|
|
% Change
|
|
|
(in thousands except for
percentages)
|
|
Revenues (less agency
commissions)
|
$ 146,118
|
|
$ 126,411
|
|
16 %
|
|
|
|
|
|
|
|
|
Operating expenses (before
depreciation,
|
|
|
|
|
|
|
amortization and gain on
disposal of assets):
|
|
|
|
|
|
|
Broadcast
|
$ 93,659
|
|
$ 90,821
|
|
3 %
|
|
|
|
|
|
|
|
|
Corporate and administrative
expense
|
$ 6,759
|
|
$ 7,638
|
|
(12)%
|
|
|
|
|
|
|
|
Our operating results from the second quarter of 2010 exceeded
our initial forecasts. We experienced improvements in all
major revenue classifications, including local, national, and
political advertising revenue, in the second quarter of 2010
compared to the second quarter of 2009. We experienced
positive period over period results in the first quarter of 2010
and that trend continued in the second quarter of 2010. We believe
we are well positioned to benefit from further expected increases
in political advertising in 2010. While our revenues have
increased, we also continue to focus on controlling our operating
costs.
During 2010, we have taken a number of actions designed to
further strengthen our balance sheet. On March 31, 2010, we amended our senior credit
facility. This amendment modified our leverage ratio covenant
and certain other terms of our senior credit facility and allowed
for additional financial and covenant flexibility. In order
to obtain this amendment, we incurred loan issuance costs of
approximately $4.5 million, including
legal and professional fees. These fees were funded from our
existing cash balances. As a result of this amendment, we
recorded a loss from early extinguishment of debt of $0.3 million.
On April 29, 2010, we issued
$365.0 million of senior secured
second lien notes due 2015 (the "Notes") in a transaction exempt
from the registration requirements of the Securities Act of 1933.
We used the net proceeds from the issuance of the Notes to,
among other things, repay $300.0
million in principal outstanding under our senior credit
facility. Upon completion of these transactions, we have been
able to reduce the total cost of borrowings under our senior credit
facility from an effective interest rate of the London Interbank
Offered Rate ("LIBOR") plus 8.50% to an effective rate of LIBOR
plus 4.25%, achieve additional financial and covenant flexibility,
and eliminate certain fees thereunder. We were in compliance
with all financial covenants as of June 30,
2010.
Comments on Results of Operations for the Three-Month Period
Ended June 30,
2010:
Revenue.
Total revenue increased $10.6
million, or 16%, to $75.6
million for the three-month period ended June 30, 2010 compared to the three-month period
ended June 30, 2009 reflecting
increases in local, national, internet and political advertising
revenue, retransmission consent revenue, production and other
revenue and consulting revenue. Local, national and internet
advertising revenue increased due to increased spending by
advertisers in an improving economic environment. Political
advertising revenues increased due to increased advertising from
political candidates and special interest groups. Retransmission
revenue increased due to the improved terms of our retransmission
contracts compared to those in effect during the three-month period
ended June 30, 2009. We continued to
earn consulting revenue from our agreement with Young Broadcasting,
Inc.
The principal components of our revenue were as follows:
Local advertising revenue increased $2.6
million, or 6%, to $45.9
million.
National advertising revenue increased $1.4 million, or 11%, to $13.8 million.
Internet advertising revenue increased $0.4 million, or 15%, to $3.1 million.
Political advertising revenue increased $4.6 million, or 493%, to $5.6 million.
Retransmission consent revenue increased $0.7 million, or 18%, to $4.7 million.
Production and other revenue increased $0.2 million, or 14%, to $1.9 million.
Consulting revenue from our agreement with Young Broadcasting,
Inc. remained at $0.6 million in the
second quarter of 2010.
Advertising revenue categories by customer type, excluding
political advertising, demonstrating significant improvement during
the three-month period ended June 30,
2010 compared to the three-month period ended June 30, 2009 were: automotive, increasing 48%;
medical services, increasing 14%; financial and insurance services,
increasing 13%; and home improvement, increasing 12%. Revenue
categories reflecting period over period declines were:
communications, decreasing 19%; paid programming, decreasing 19%;
and restaurants, decreasing 11%.
Operating expenses.
Broadcast expenses (before depreciation, amortization and gain
on disposal of assets) increased $0.9
million, or 2%, to $46.1
million. The increase was due primarily to an increase in
compensation expense of $1.2 million
and national sales representation expense of $0.3 million, partially offset by a decrease in
bad debt expense of $0.4 million and
internet related expenses of $0.3
million. Compensation expense increased primarily due to
increases in sales incentive compensation of $0.6 million due to the increase in advertising
revenue discussed above and an increase in pension expense of
$0.4 million. As of
June 30, 2010 and 2009, we employed
2,176 and 2,216 employees, respectively, in our broadcast
operations. Since December 31,
2007, we have decreased the total number of employees in our
broadcast operations by 249 persons, a decrease of 10.3%. National
sales representation expense is equal to a certain percentage of
our national sales revenue (including certain political advertising
revenue) and increases as this revenue increases. Bad debt expense
decreased primarily due to an improvement in the quality of our
accounts receivable balances. We attribute this to an
improving economy and an increased focus on collections. Internet
related expenses decreased primarily due to the use of a new text
alert service provider at a lower cost.
Corporate and administrative expenses (before depreciation,
amortization and gain on disposal of assets) increased $0.2 million, or 7%, to $3.8 million. The increase was due primarily to
an increase in compensation expense of $0.7
million, partially offset by a decrease in consulting
expense of $0.2 million and a
decrease in legal expense of $0.2
million. The increase in compensation expense was due
primarily to the payment of bonuses to certain officers totaling
$1.05 million, partially offset by a
decrease in non-cash stock-based compensation expense of
$0.3 million. No similar bonuses were
paid in the comparable period of the prior year. We recorded
non-cash stock-based compensation expense during the three-month
periods ended June 30, 2010 and 2009
of $62,000 and $345,000, respectively. Non-cash stock based
compensation has decreased due to the majority of our outstanding
stock options becoming fully vested. Consulting expense decreased
due to the expiration, on December 31,
2009, of a consulting agreement with our former Chairman,
and reduced income tax consulting. Legal expense decreased
due to a decrease in the number of retransmission consent revenue
contracts being negotiated in the current period compared to the
comparable period of the prior year.
Comments on Results of Operations for the Six-Month Period
Ended June 30,
2010:
Revenue.
Total revenue increased $19.7
million, or 16%, to $146.1
million for the six-months ended June
30, 2010 compared to the six-months ended June 30, 2009, reflecting increases in local,
national, internet and political advertising revenue and
retransmission consent revenue, production and other revenue and
consulting revenue. Local, national and internet advertising
revenue increased due to increased spending by advertisers in an
improving economic environment. Political advertising revenues
increased due to increased advertising from political candidates
and special interest groups. Net advertising revenue associated
with the broadcast of the 2010 Super Bowl on our seventeen
CBS-affiliated stations approximated $860,000 which was an increase from our
approximate $750,000 of Super Bowl
revenues earned in 2009 on our ten NBC-affiliated stations. In
addition, results in the six-month period ended June 30, 2010 benefited from approximately
$2.8 million of net revenues earned
from the broadcast of the 2010 Winter Olympic Games on our
NBC-affiliated stations. There was no corresponding broadcast of
Olympic Games during the six-month period ended June 30, 2009. Retransmission revenue
increased due to the improved terms of our retransmission contracts
compared to those in effect during the six-month period ended
June 30, 2009. We continued to earn
consulting revenue from our agreement with Young Broadcasting,
Inc.
The principal components of our revenue were as follows:
Local advertising revenue increased $6.8
million, or 8%, to $89.4
million.
National advertising revenue increased $2.5 million, or 10%, to $27.7 million.
Internet advertising revenue increased $0.9 million, or 17%, to $6.2 million.
Political advertising revenue increased $6.4 million, or 329%, to $8.4 million.
Retransmission consent revenue increased $1.7 million, or 23%, to $9.3 million.
Production and other revenue increased $0.3 million, or 9%, to $3.8 million.
Consulting revenue from our agreement with Young Broadcasting,
Inc. was $1.1 million in the
six-month period ended June 30,
2010.
Advertising revenue categories by customer type, excluding
political advertising, demonstrating significant improvement during
the six-month period ended June 30,
2010 compared to the six-month period ended June 30, 2009 were: automotive, increasing 45%;
financial and insurance services, increasing 18%; medical services,
increasing 15%; and home improvement, increasing 9%. Revenue
categories reflecting period over period declines were: paid
programming, decreasing 20%; communications, decreasing 18%; and
restaurants, decreasing 7%.
Operating expenses.
Broadcast expenses (before depreciation, amortization and gain
on disposal of assets) increased $2.8
million, or 3%, to $93.7
million. This increase was primarily due to increases in
compensation expense of $2.5 million
and national sales representation expense of $0.5 million, partially offset by decreases in
electricity expense of $0.4 million
and bad debt expense of $0.3 million.
Compensation expense increased primarily due to increases in
sales incentive compensation and pension expense partially offset
by a decrease in healthcare expense. Sales incentive
compensation increased $1.2 million
due to the increase in advertising revenue discussed above.
Pension expense increased $0.7
million. Healthcare expense decreased $0.4 million due to lower healthcare claims.
National sales representation expense is equal to a certain
percentage of our national sales revenue (including certain
political advertising revenue) and increases as this revenue
increases. Bad debt expense decreased primarily due to an
improvement in the quality of our accounts receivable balances.
We attribute this to an improving economy and an increased
focus on collections. Electricity expenses decreased due to the
discontinuance of our analog broadcasts.
Corporate and administrative expenses (before depreciation,
amortization and gain on disposal of assets) decreased $0.9 million, or 12%, to $6.8 million. The decrease was due primarily to a
decrease in consulting expense of $0.3
million and a decrease in legal expense of $0.5 million, partially offset by an increase in
compensation expense of $0.2 million.
Consulting expense decreased due to the expiration, on December 31, 2009, of a consulting agreement with
our former Chairman and reduced income tax consulting. Legal
expense decreased due to a decrease in the number of retransmission
consent revenue contracts being negotiated in the current period
compared to the comparable period of the prior year. The increase
in compensation expense was due to the payment of bonuses to
certain executive officers totaling $1.05
million, partially offset by a decrease in non-cash
stock-based compensation expense of $0.5
million and a decrease in severance expense of $0.1 million during the 2010 period. No similar
bonuses were paid in the comparable period of the prior year. We
recorded non-cash stock-based compensation expense during the
six-month periods ended June 30, 2010
and 2009 of $217,000 and $698,000, respectively. Non-cash stock based
compensation has decreased due to the majority of our outstanding
stock options becoming fully vested.
Internet Initiatives:
We have continued to expand our internet initiatives in each of
our markets. Our focus has been to expand local content to
attract additional traffic to our websites. Our website page view
data for the three-month and six-month periods ended June 30, 2010 compared to the three-month and
six-month periods ended June 30, 2009
is as follows:
Gray Websites - Aggregate Page
Views
|
|
|
|
|
|
|
|
|
|
Three Months Ended June
30,
|
|
|
2010
|
|
2009
|
|
% Change
|
|
|
(in millions, except
percentages)
|
|
|
|
|
|
|
|
|
Advertising impressions
generated
|
642.3
|
|
502.0
|
|
28 %
|
|
Total page views (including
mobile page views)
|
194.2
|
|
181.3
|
|
7 %
|
|
|
|
|
|
|
|
|
|
Six Months Ended June
30,
|
|
|
2010
|
|
2009
|
|
% Change
|
|
|
(in millions, except
percentages)
|
|
|
|
|
|
|
|
|
Advertising impressions
generated
|
1,291.0
|
|
1,103.0
|
|
17 %
|
|
Total page views (including
mobile page views)
|
424.6
|
|
366.8
|
|
16 %
|
|
|
|
|
|
|
|
We attribute the increase in our website traffic to increased
posting of local content and public awareness of our websites
resulting from our on-air promotion of our websites.
Our aggregate internet revenues are derived from two sources.
The first source is advertising or sponsorship opportunities
directly on our websites. We call this "direct internet
revenue." The other revenue source is television advertising
time purchased by our clients to directly promote their involvement
in our websites. We refer to this internet revenue source as
"internet-related commercial time sales."
Other Financial Data:
|
June 30, 2010
|
|
December 31, 2009
|
|
|
(in thousands)
|
|
|
|
|
|
|
Cash
|
$
15,714
|
|
$
16,000
|
|
Long-term debt, including
current portion
|
$
846,772
|
|
$
791,809
|
|
Long-term accrued facility
fee
|
$
26,139
|
|
$
18,307
|
|
Preferred stock (1)
|
$
36,945
|
|
$
93,386
|
|
Borrowing availability under our
senior credit facility
|
$
40,000
|
|
$
31,681
|
|
|
|
|
|
|
|
Six Months Ended June
30,
|
|
|
2010
|
|
2009
|
|
|
(in thousands)
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
$
13,961
|
|
$
377
|
|
Net cash used in investing
activities
|
(6,298)
|
|
(9,598)
|
|
Net cash used in financing
activities
|
(7,949)
|
|
(11,642)
|
|
Net (decrease) increase in
cash
|
$
(286)
|
|
$
(20,863)
|
|
|
|
|
|
|
(1) As of June 30, 2010,
preferred stock does not include unaccreted original issuance costs
and accrued preferred stock dividends of $2.4
million and $10.8
million, respectively. 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.
|
|
|
|
|
|
Detailed table of operating results:
Gray Television,
Inc.
|
|
Selected Operating Data
(Unaudited)
|
|
(in thousands except for per
share data and percentages)
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 30,
|
|
|
|
|
|
|
%
|
|
|
2010
|
|
2009
|
|
Change
|
|
|
|
|
|
|
|
|
Revenues (less agency
commissions)
|
$ 75,636
|
|
$ 65,057
|
|
16 %
|
|
Operating expenses before
depreciation,
|
|
|
|
|
|
|
amortization and gain on
disposal of assets, net:
|
|
|
|
|
|
|
Broadcast
|
46,092
|
|
45,167
|
|
2 %
|
|
Corporate and
administrative
|
3,837
|
|
3,592
|
|
7 %
|
|
Depreciation
|
7,931
|
|
8,253
|
|
(4)%
|
|
Amortization of intangible
assets
|
120
|
|
145
|
|
(17)%
|
|
Gain on disposals of assets,
net
|
(480)
|
|
(1,098)
|
|
(56)%
|
|
|
57,500
|
|
56,059
|
|
3 %
|
|
Operating income
|
18,136
|
|
8,998
|
|
102 %
|
|
Other income
(expense):
|
|
|
|
|
|
|
Miscellaneous income,
net
|
19
|
|
1
|
|
1800 %
|
|
Interest expense
|
(17,431)
|
|
(20,007)
|
|
(13)%
|
|
(Loss) income before income
tax
|
724
|
|
(11,008)
|
|
|
|
Income tax expense
(benefit)
|
190
|
|
(4,360)
|
|
|
|
Net income (loss)
|
534
|
|
(6,648)
|
|
|
|
Preferred dividends (includes
accretion of issuance
|
|
|
|
|
|
|
cost of $3,952 and $301,
respectively)
|
6,453
|
|
4,051
|
|
59 %
|
|
Net loss available to common
stockholders
|
$ (5,919)
|
|
$ (10,699)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted per share
information:
|
|
|
|
|
|
|
Net loss available to common
stockholders
|
$ (0.11)
|
|
$
(0.22)
|
|
|
|
Weighted-average shares
outstanding
|
54,453
|
|
48,506
|
|
12 %
|
|
|
|
|
|
|
|
|
Political advertising revenue
(less agency commissions)
|
$ 5,588
|
|
$
942
|
|
493 %
|
|
|
|
|
|
|
|
Gray Television,
Inc.
|
|
Selected Operating Data
(Unaudited)
|
|
(in thousands except for per
share data and percentages)
|
|
|
|
|
|
Six Months Ended
|
|
|
June 30,
|
|
|
|
|
|
|
%
|
|
|
2010
|
|
2009
|
|
Change
|
|
|
|
|
|
|
|
|
Revenues (less agency
commissions)
|
$ 146,118
|
|
$ 126,411
|
|
16 %
|
|
Operating expenses before
depreciation,
|
|
|
|
|
|
|
amortization and gain on
disposal of assets, net:
|
|
|
|
|
|
|
Broadcast
|
93,659
|
|
90,821
|
|
3 %
|
|
Corporate and
administrative
|
6,759
|
|
7,638
|
|
(12)%
|
|
Depreciation
|
15,906
|
|
16,514
|
|
(4)%
|
|
Amortization of intangible
assets
|
242
|
|
294
|
|
(18)%
|
|
Gain on disposals of assets,
net
|
(524)
|
|
(2,620)
|
|
(80)%
|
|
|
116,042
|
|
112,647
|
|
3 %
|
|
Operating income
|
30,076
|
|
13,764
|
|
119 %
|
|
Other income
(expense):
|
|
|
|
|
|
|
Miscellaneous income,
net
|
58
|
|
13
|
|
346 %
|
|
Interest expense
|
(37,042)
|
|
(30,120)
|
|
23 %
|
|
Loss on early extinguishment of
debt
|
(349)
|
|
(8,352)
|
|
|
|
Loss before income tax
benefit
|
(7,257)
|
|
(24,695)
|
|
|
|
Income tax benefit
|
(3,048)
|
|
(9,127)
|
|
|
|
Net loss
|
(4,209)
|
|
(15,568)
|
|
|
|
Preferred dividends (includes
accretion of issuance
|
|
|
|
|
|
|
cost of $4,253 and $602,
respectively)
|
11,004
|
|
8,101
|
|
36 %
|
|
Net loss available to common
stockholders
|
$ (15,213)
|
|
$ (23,669)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted per share
information:
|
|
|
|
|
|
|
Net loss available to common
stockholders
|
$
(0.30)
|
|
$
(0.49)
|
|
|
|
Weighted-average shares
outstanding
|
51,525
|
|
48,498
|
|
6 %
|
|
|
|
|
|
|
|
|
Political advertising revenue
(less agency commissions)
|
$ 8,371
|
|
$ 1,951
|
|
329 %
|
|
|
|
|
|
|
|
Guidance for the Third Quarter of 2010
We currently anticipate that our broadcast results of operations
for the three-month period ending September
30, 2010 (the "third quarter of 2010") will approximate the
ranges presented in the table below.
|
|
2010
Guidance
Low
Range
|
|
%
Change
From
Actual
2009
|
|
2010
Guidance
High
Range
|
|
%
Change
From
Actual
2009
|
|
Actual
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected operating
data:
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
OPERATING REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (less agency
commissions)
|
|
$ 79,500
|
|
20 %
|
|
$ 80,500
|
|
21 %
|
|
$ 66,446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
(before depreciation,
amortization and
|
|
|
|
|
|
|
|
|
|
|
|
gain on disposal of
assets):
|
|
|
|
|
|
|
|
|
|
|
|
Broadcast
|
|
$ 47,200
|
|
2 %
|
|
$ 47,700
|
|
3 %
|
|
$ 46,173
|
|
Corporate and
administrative
|
|
$ 3,000
|
|
(9)%
|
|
$ 3,300
|
|
0 %
|
|
$ 3,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER SELECTED DATA:
|
|
|
|
|
|
|
|
|
|
|
|
Political advertising
revenues
|
|
|
|
|
|
|
|
|
|
|
|
(less agency
commissions)
|
|
$ 11,500
|
|
274 %
|
|
$ 12,000
|
|
291 %
|
|
$ 3,071
|
|
|
|
|
|
|
|
|
|
|
|
|
Comments on Guidance:
Revenue.
Based on our current forecasts, we currently believe our third
quarter of 2010 local revenue, excluding political revenue, will
increase from the three-month period ended September 30, 2009 (the "third quarter of 2009")
by approximately 6%. We currently believe our third quarter of 2010
national revenue, excluding political revenue, will increase from
the third quarter of 2009 by approximately 14%.
We anticipate our third quarter of 2010 internet revenue will
increase from the third quarter of 2009 by approximately 13%.
We anticipate our third quarter of 2010 political advertising
revenue will increase to approximately $11.8
million.
We anticipate that our retransmission consent revenues during
the third quarter of 2010 will increase approximately $0.2 million, to a total of approximately
$4.5 million, reflecting the
successful retransmission negotiations concluded in 2009 and 2010.
We estimate our consulting revenue will remain stable at
$0.6 million for the third quarter of
2010.
Broadcast Operating Expense (before depreciation,
amortization and gain/loss on disposal of assets).
The anticipated increase in broadcast operating expense for the
third quarter 2010 compared to the third quarter of 2009 is due
primarily to modest anticipated increases in base compensation
expense and commissions associated with higher anticipated
revenue.
Corporate and Administrative Expense (before depreciation,
amortization and gain/loss on disposal of assets).
Corporate expense for the third quarter of 2010 is anticipated
to be consistent or slightly less than that of the third quarter of
2009.
Net Revenue By Category:
The table below presents our net revenue by type for the
three-month and six-month periods ended June
30, 2010 and 2009, respectively (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
Three Months Ended June
30,
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
Percent
|
|
|
|
Percent
|
|
|
|
Amount
|
|
of Total
|
|
Amount
|
|
of Total
|
|
Broadcasting net
revenues:
|
|
|
|
|
|
|
|
|
|
Local
|
|
$ 45,886
|
|
60.7%
|
|
$ 43,272
|
|
66.5%
|
|
National
|
|
13,791
|
|
18.2%
|
|
12,373
|
|
19.0%
|
|
Internet
|
|
3,124
|
|
4.1%
|
|
2,711
|
|
4.2%
|
|
Political
|
|
5,588
|
|
7.4%
|
|
942
|
|
1.4%
|
|
Retransmission
consent
|
|
4,670
|
|
6.2%
|
|
3,959
|
|
6.1%
|
|
Production and other
|
|
1,854
|
|
2.5%
|
|
1,628
|
|
2.5%
|
|
Network compensation
|
|
173
|
|
0.2%
|
|
172
|
|
0.3%
|
|
Consulting revenue
|
|
550
|
|
0.7%
|
|
-
|
|
0.0%
|
|
Total
|
|
$ 75,636
|
|
100.0%
|
|
$ 65,057
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June
30,
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
Percent
|
|
|
|
Percent
|
|
|
|
Amount
|
|
of Total
|
|
Amount
|
|
of Total
|
|
Broadcasting net
revenues:
|
|
|
|
|
|
|
|
|
|
Local
|
|
$ 89,397
|
|
61.2%
|
|
$ 82,558
|
|
65.3%
|
|
National
|
|
27,742
|
|
19.0%
|
|
25,248
|
|
20.0%
|
|
Internet
|
|
6,196
|
|
4.2%
|
|
5,275
|
|
4.2%
|
|
Political
|
|
8,371
|
|
5.7%
|
|
1,951
|
|
1.5%
|
|
Retransmission
consent
|
|
9,309
|
|
6.4%
|
|
7,599
|
|
6.0%
|
|
Production and other
|
|
3,786
|
|
2.6%
|
|
3,470
|
|
2.7%
|
|
Network compensation
|
|
217
|
|
0.1%
|
|
310
|
|
0.3%
|
|
Consulting revenue
|
|
1,100
|
|
0.8%
|
|
-
|
|
0.0%
|
|
Total
|
|
$ 146,118
|
|
100.0%
|
|
$ 126,411
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The aggregate internet revenues presented above are derived from
two sources: (i) direct internet revenue and (ii) internet related
commercial time sales.
Conference Call Information
We will host a conference call to discuss our second quarter
operating results on August 12, 2010.
The call will begin at 11:00 AM
Eastern Time. The live dial-in number is 1 (800)
311-0799 and the confirmation code is 6382604. 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: 6382604 until September 11, 2010.
Reconciliations:
Reconciliation of net income (loss) to the non-GAAP terms
(dollars in thousands):
|
|
|
|
As Reported
|
|
|
Three Months
Ended
|
|
|
June 30,
|
|
|
2010
|
|
2009
|
|
% Change
|
|
Net income (loss)
|
$
534
|
|
$
(6,648)
|
|
|
|
Adjustments to reconcile to
Broadcast Cash Flow Less
|
|
|
|
|
|
|
Cash Corporate
Expenses:
|
|
|
|
|
|
|
Depreciation
|
7,931
|
|
8,253
|
|
|
|
Amortization of intangible
assets
|
120
|
|
145
|
|
|
|
Amortization of non-cash stock
based compensation
|
62
|
|
345
|
|
|
|
Gain on disposals of assets,
net
|
(480)
|
|
(1,098)
|
|
|
|
Miscellaneous (income) expense,
net
|
(19)
|
|
(1)
|
|
|
|
Interest expense
|
17,431
|
|
20,007
|
|
|
|
Income tax expense
(benefit)
|
190
|
|
(4,360)
|
|
|
|
Amortization of program
broadcast rights
|
3,852
|
|
3,761
|
|
|
|
Common stock contributed to
401(k) plan
|
|
|
|
|
|
|
excluding corporate 401(k)
contributions
|
8
|
|
7
|
|
|
|
Network compensation revenue
recognized
|
(173)
|
|
(172)
|
|
|
|
Network compensation per network
affiliation agreement
|
(60)
|
|
(30)
|
|
|
|
Payments for program broadcast
rights
|
(3,853)
|
|
(3,801)
|
|
|
|
Broadcast Cash Flow Less Cash
Corporate Expenses
|
25,543
|
|
16,408
|
|
56 %
|
|
Corporate and administrative
expenses excluding
|
|
|
|
|
|
|
amortization of non-cash
stock-based compensation
|
3,775
|
|
3,247
|
|
|
|
Broadcast Cash
Flow
|
$
29,318
|
|
$
19,655
|
|
49 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported
|
|
|
Six Months Ended
|
|
|
June 30,
|
|
|
2010
|
|
2009
|
|
% Change
|
|
Net loss
|
$
(4,209)
|
|
$ (15,568)
|
|
|
|
Adjustments to reconcile to
Broadcast Cash Flow Less
|
|
|
|
|
|
|
Cash Corporate
Expenses:
|
|
|
|
|
|
|
Depreciation
|
15,906
|
|
16,514
|
|
|
|
Amortization of intangible
assets
|
242
|
|
294
|
|
|
|
Amortization of non-cash stock
based compensation
|
217
|
|
698
|
|
|
|
Gain on disposals of assets,
net
|
(524)
|
|
(2,620)
|
|
|
|
Miscellaneous (income) expense,
net
|
(58)
|
|
(13)
|
|
|
|
Interest expense
|
37,042
|
|
30,120
|
|
|
|
Loss on early extinguishment of
debt
|
349
|
|
8,352
|
|
|
|
Income tax benefit
|
(3,048)
|
|
(9,127)
|
|
|
|
Amortization of program
broadcast rights
|
7,705
|
|
7,531
|
|
|
|
Common stock contributed to
401(k) plan
|
|
|
|
|
|
|
excluding corporate 401(k)
contributions
|
15
|
|
(34)
|
|
|
|
Network compensation revenue
recognized
|
(217)
|
|
(310)
|
|
|
|
Network compensation per network
affiliation agreement
|
(76)
|
|
-
|
|
|
|
Payments for program broadcast
rights
|
(7,728)
|
|
(7,656)
|
|
|
|
Broadcast Cash Flow Less Cash
Corporate Expenses
|
45,616
|
|
28,181
|
|
62 %
|
|
Corporate and administrative
expenses excluding
|
|
|
|
|
|
|
amortization of non-cash
stock-based compensation
|
6,542
|
|
6,940
|
|
|
|
Broadcast Cash
Flow
|
$
52,158
|
|
$
35,121
|
|
49 %
|
|
See the next page for the
definition of Non-GAAP terms.
|
|
|
|
|
|
|
|
Non-GAAP Terms
This press release includes the non-GAAP financial measures of
Broadcast Cash Flow and Broadcast Cash Flow Less Cash Corporate
Expenses. These non-GAAP amounts are used by us to
approximate the amount used to calculate a key financial
performance covenant contained in our senior credit facility.
Broadcast Cash Flow is defined as operating income plus
corporate expense, depreciation and amortization (including
amortization of program broadcast rights), impairment, non-cash
compensation and (gain) loss on disposal of assets and cash
payments received or receivable under network affiliation
agreements, less payments for program broadcast obligations and
less network compensation revenue, net of income taxes.
Corporate expenses (excluding depreciation, amortization and
non-cash stock-based compensation) are deducted from Broadcast Cash
Flow to calculate "Broadcast Cash Flow Less Cash Corporate
Expenses." 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 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 loss and cash flows reported in accordance with GAAP.
Gray Television, Inc.
Gray Television, Inc. is a television broadcast company
headquartered in Atlanta, GA.
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 third quarter of 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
August 12, 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 Quarterly Report on Form 10-Q for the period
ended March 31, 2010 and in
subsequently filed reports, which are filed with the U.S.
Securities and Exchange Commission (the "SEC") and available at the
SEC's website at www.sec.gov.
SOURCE Gray Television, Inc.
Copyright . 12 PR Newswire