ATLANTA, Aug. 8, 2011 /PRNewswire/ -- Gray Television,
Inc. ("Gray," "we," "us" or "our") (NYSE: GTN and GTN.A) today
announced results from operations for the three-month period (the
"second quarter of 2011") and six-month period ended June 30, 2011 as compared to the three-month
period (the "second quarter of 2010") and six-month period ended
June 30, 2010.
Highlights:
For the second quarter of 2011, our revenue, broadcast expense
and corporate and administrative expense were as follows:
|
Three Months
Ended June 30,
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
|
(in
thousands except for percentages)
|
|
|
Revenue (less agency
commissions)
|
$ 76,201
|
|
$ 75,636
|
|
1 %
|
|
|
|
|
|
|
|
|
|
Operating expenses (before
depreciation,
|
|
|
|
|
|
|
|
amortization and gain on
disposal of assets):
|
|
|
|
|
|
|
|
Broadcast
|
$ 47,930
|
|
$ 46,092
|
|
4 %
|
|
|
|
|
|
|
|
|
|
Corporate and
administrative
|
$ 3,402
|
|
$ 3,837
|
|
(11)%
|
|
|
|
|
|
|
|
Results Exceed Estimates for the Second Quarter of
2011:
We are pleased with our operating results for the second quarter
of 2011. Our total revenue increased for the second quarter
of 2011 when compared to the second quarter of 2010 even though
2011 is an "off year" in the two-year political election cycle.
For the second quarter of 2011, our operating results exceeded
our initial estimates, which were publicly disclosed on
May 9, 2011. Our actual total revenue
exceeded our initial estimates, our actual broadcast expense was
below our initially estimated range and our actual corporate
expense was near the lower end of our initially estimated
range.
Financing Activities in 2010 Reduced Overall Cost of
Capital:
Interest expense decreased $2.1
million and Series D perpetual preferred stock dividends
decreased $4.7 million in the second
quarter of 2011 compared to the second quarter of 2010. The
decrease in interest expense was due to a decrease in the interest
rate on our outstanding debt and a decrease in our outstanding debt
balance. The decrease in our Series D perpetual preferred
stock dividend was due to the redemption of approximately
$60.7 million of our Series D
perpetual preferred stock on April 29,
2010, resulting in a decrease in the number of Series D
perpetual preferred stock shares outstanding, and a corresponding
decrease in dividend requirements.
Comments on Results of Operations for the Three-Month Period
Ended June 30,
2011:
Revenue.
Total revenue increased $0.6
million, or 1%, to $76.2
million for the second quarter of 2011 compared to the
second quarter of 2010 due primarily to increased local and
internet advertising and retransmission consent revenue, partially
offset by decreased national and political advertising revenue.
Local and internet advertising revenue increased due to
increased spending by advertisers in an improving economic
environment while national advertising revenue suffered somewhat
from decreased advertising spending by automotive and
financial/insurance customers. Political advertising revenue
decreased due to decreased advertising from political candidates
and special interest groups in the "off year" of the two-year
election cycle. Retransmission consent revenue increased due
to an increase in the number of subscribers in the second quarter
of 2011 compared to the second quarter of 2010. We continued to
earn base consulting revenue under our agreement with Young
Broadcasting, Inc. ("Young").
|
The principal components of our
revenue were as follows:
|
|
|
Local advertising revenue
increased $1.9 million, or 4%, to $47.8 million.
|
|
|
National advertising revenue
decreased $0.4 million, or 3%, to $13.4 million.
|
|
|
Internet advertising revenue
increased $1.7 million, or 56%, to $4.9 million.
|
|
|
Political advertising revenue
decreased $3.3 million, or 59%, to $2.3 million.
|
|
|
Retransmission consent revenue
increased $0.4 million, or 8%, to $5.1 million.
|
|
|
Production and other revenue
increased $0.2 million, or 9%, to $2.0 million.
|
|
|
Consulting revenue from our
agreement with Young remained at $0.6 million in the second quarter
of 2011.
|
|
|
Our five largest local and national advertising categories on a
combined basis by customer type for the second quarter of 2011,
demonstrated the following changes during the second quarter of
2011 compared to the second quarter of 2010: automotive decreased
1%; restaurant increased 7%; medical increased 16%; communications
increased 10%; and furniture and appliances increased 5%.
Operating expenses.
Broadcast expenses (before depreciation, amortization and gain
on disposal of assets) increased $1.8
million, or 4%, to $47.9
million for the second quarter of 2011 compared to the
second quarter of 2010 due primarily to increases in compensation
expense of $1.5 million and
non-compensation expense of $0.3
million. Compensation expense increased primarily due
to increases in incentive compensation of $0.6 million, commissions of $0.2 million, salaries of $0.1 million and health care expense of
$0.3 million. Increase in incentive
compensation was due to an accrual of a portion of the currently
estimated annual incentive compensation. Commissions increased due
to increased local and internet advertising revenue sales.
Healthcare expenses increased due to increased claims
activity. As of June 30, 2011 and
2010, we employed 2,087 and 2,176 total employees, respectively, in
our broadcast operations.
Corporate and administrative expenses (before depreciation,
amortization and gain on disposal of assets) decreased $0.4 million, or 11%, to $3.4 million. The decrease was due primarily to a
decrease in compensation expense of $0.8
million partially offset by an increase in non-compensation
expense of $0.3 million.
Compensation expense decreased primarily due to a decrease in
bonus compensation expense. The decrease in bonus compensation
expense was due primarily to the payment of an aggregate of
$1.05 million in bonus compensation
to certain executive officers in the second quarter of 2010. No
bonus compensation payments were made to these executive officers
in the second quarter of 2011. We recorded non-cash stock-based
compensation expense during the second quarter of 2011 and the
second quarter of 2010 of $34,000 and
$62,000, respectively. Non-cash
stock-based compensation expense decreased primarily due to the
majority of our outstanding stock options becoming fully vested in
2010. We amortize the expense of our stock options over their
vesting period.
Comments on Results of Operations for the Six-Month Period
Ended June 30,
2011:
Revenue.
Total revenue decreased $0.2
million, or 0.1%, to $145.9
million for the six months ended June
30, 2011 compared to the six months ended June 30, 2010 due primarily to decreased
political and national advertising revenue, partially offset by
increased local and internet advertising revenue and retransmission
consent revenue. Political advertising revenue reflected decreased
advertising from political candidates during the "off year" of the
two-year political advertising cycle. Local and internet
advertising revenue increased due to increased spending by
advertisers in an improving economic environment. National
advertising revenue decreased primarily due to the change in the
broadcast network carrying the Super Bowl in 2011 to FOX from CBS
and the lack of Olympic Games coverage in 2011. These events did
not have as large a negative effect upon our local and internet
advertising revenue as they did on our national advertising revenue
and, as a result, we were able to grow our revenue in these two
advertising customer types. Net advertising revenue associated with
the broadcast of the 2011 Super Bowl on our one primary
FOX-affiliated channel and four secondary digital FOX-affiliated
channels approximated $0.2 million,
which was a decrease from our approximated $0.9 million earned in 2010 on our seventeen
CBS-affiliated channels. In addition, 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 channels. There was no corresponding
broadcast of Olympic Games during the six-month period ended
June 30, 2011. Retransmission consent
revenue increased due to an increase in subscribers and improved
terms in our retransmission contracts for the six-month period
ended June 30, 2011 compared to the
six-month period ended June 30, 2010.
We continued to earn base consulting revenue under our agreement
with Young in the six-month period ended June 30, 2011.
|
The principal components of our
revenue were as follows:
|
|
|
Local advertising revenue
increased $2.2 million, or 2%, to $91.6 million.
|
|
|
National advertising
revenue decreased $1.3 million, or 5%, to $26.4 million.
|
|
|
Internet advertising
revenue increased $2.9 million, or 47%, to $9.1 million.
|
|
|
Political advertising
revenue decreased $4.7 million, or 56%, to $3.7 million.
|
|
|
Retransmission consent
revenue increased $0.8 million, or 9%, to $10.1 million.
|
|
|
Production and other
revenue decreased $0.2 million, or 4%, to $3.6 million.
|
|
|
Consulting revenue from
our agreement with Young was $1.1 million in the six-month
period ended June 30, 2011.
|
|
|
Our five largest local and national advertising categories on a
combined basis by customer type for the six-month period ended
June 30, 2011, demonstrated the
following changes during the six-month period ended June 30, 2011 compared to the six-month period
ended June 30, 2010 were: automotive
increased 1%; medical increased 11%; restaurant increased 1%;
communications increased 4%; and furniture and appliances increased
6%.
Operating expenses.
Broadcast expenses (before depreciation, amortization and gain
on disposal of assets) increased $2.5
million, or 3%, to $96.1
million. This increase was primarily due to an increase in
compensation expense of $2.6 million,
partially offset by a decrease in non-compensation expense of
$0.1 million. Compensation
expense increased primarily due to increases in incentive
compensation of $1.1 million,
commissions of $0.3 million, salaries
of $0.2 million and health care
expense of $0.5 million. Increase in
incentive compensation was due to an accrual of a portion of the
currently estimated annual employee incentive compensation.
Commissions increased due to increased local and internet
advertising revenue sales. Healthcare expenses increased due
to increased claims activity.
Corporate and administrative expenses (before depreciation,
amortization and gain on disposal of assets) decreased $0.3 million, or 5%, to $6.4 million. The decrease was due primarily to a
decrease in compensation expense of $0.6
million, partially offset by an increase in non-compensation
expense of $0.3 million.
Compensation expense decreased primarily due to a decrease in
bonus compensation expense. The decrease in bonus compensation
expense was due primarily to the payment of an aggregate of
$1.05 million in bonus compensation
to certain executive officers in the six-month period ended
June 30, 2010. No bonus
compensation payments were made to these executive officers in the
six-month period ended June 30, 2011.
We recorded non-cash stock-based compensation expense during
the six-month periods ended June 30,
2011 and 2010 of $68,000 and
$217,000, respectively. Non-cash
stock-based compensation expense decreased primarily due to the
majority of our outstanding stock options becoming fully vested in
2010. We amortize the expense of our stock options over their
vesting period.
Other Financial Data:
|
June 30,
2011
|
|
December 31,
2010
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
Cash
|
$
3,457
|
|
$
5,431
|
|
|
Long-term debt, including
current portion
|
$
824,969
|
|
$
826,704
|
|
|
Preferred stock (1)
|
$
37,418
|
|
$
37,181
|
|
|
Borrowing availability under our
senior credit facility
|
$
40,000
|
|
$
40,000
|
|
|
|
|
|
|
|
Six Months
Ended June 30,
|
|
|
2011
|
|
2010
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
$
17,262
|
|
$
13,961
|
|
|
Net cash used in investing
activities
|
(16,199)
|
|
(6,298)
|
|
|
Net cash used in financing
activities
|
(3,037)
|
|
(7,949)
|
|
|
Net decrease in cash
|
$
(1,974)
|
|
$
(286)
|
|
|
|
|
|
(1) As of June 30, 2011,
preferred stock does not include unaccreted original
issuance
costs
and accrued preferred stock dividends of $1.9
million and $17.5
million, respectively. As
of
December 31, 2010, preferred stock does not include
unaccreted original issuance costs and accrued
preferred stock dividends of $2.1 million
and $14.1 million,
respectively.
|
|
|
Detailed table of operating results:
|
Gray
Television, Inc.
|
|
|
Selected
Operating Data (Unaudited)
|
|
|
(in
thousands except for per share data)
|
|
|
|
|
|
Three Months
Ended
|
|
|
June
30,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Revenue (less agency
commissions)
|
$ 76,201
|
|
$ 75,636
|
|
|
Operating expenses before
depreciation,
|
|
|
|
|
|
amortization and gain on
disposal of assets, net:
|
|
|
|
|
|
Broadcast
|
47,930
|
|
46,092
|
|
|
Corporate and
administrative
|
3,402
|
|
3,837
|
|
|
Depreciation
|
6,638
|
|
7,931
|
|
|
Amortization of intangible
assets
|
34
|
|
120
|
|
|
Gain on disposals of assets,
net
|
(831)
|
|
(480)
|
|
|
57,173
|
|
57,500
|
|
|
Operating income
|
19,028
|
|
18,136
|
|
|
Other income
(expense):
|
|
|
|
|
|
Miscellaneous income,
net
|
3
|
|
19
|
|
|
Interest
expense
|
(15,343)
|
|
(17,431)
|
|
|
Income before income
tax
|
3,688
|
|
724
|
|
|
Income tax expense
|
1,129
|
|
190
|
|
|
Net income
|
2,559
|
|
534
|
|
|
Preferred dividends (includes
accretion of issuance
|
|
|
|
|
|
cost of $118 and $3,952,
respectively)
|
1,788
|
|
6,453
|
|
|
Net income (loss) available to
common stockholders
|
$
771
|
|
$ (5,919)
|
|
|
|
|
|
|
|
Basic per share
information:
|
|
|
|
|
|
Net income (loss)
available to common stockholders
|
$ 0.01
|
|
$ (0.11)
|
|
|
Weighted-average shares
outstanding
|
57,115
|
|
54,453
|
|
|
|
|
|
|
|
Diluted per share
information:
|
|
|
|
|
|
Net income (loss)
available to common stockholders
|
$ 0.01
|
|
$ (0.11)
|
|
|
Weighted-average shares
outstanding
|
57,116
|
|
54,453
|
|
|
|
|
|
|
|
Political advertising revenue
(less agency commissions)
|
$ 2,316
|
|
$ 5,588
|
|
|
|
|
|
|
Gray
Television, Inc.
|
|
|
Selected
Operating Data (Unaudited)
|
|
|
(in
thousands except for per share data)
|
|
|
|
|
|
Six Months
Ended
|
|
|
June
30,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Revenue (less agency
commissions)
|
$ 145,943
|
|
$ 146,118
|
|
|
Operating expenses before
depreciation,
|
|
|
|
|
|
amortization and gain on
disposal of assets, net:
|
|
|
|
|
|
Broadcast
|
96,109
|
|
93,659
|
|
|
Corporate and
administrative
|
6,440
|
|
6,759
|
|
|
Depreciation
|
13,636
|
|
15,906
|
|
|
Amortization of intangible
assets
|
68
|
|
242
|
|
|
Gain on disposals of assets,
net
|
(844)
|
|
(524)
|
|
|
115,409
|
|
116,042
|
|
|
Operating income
|
30,534
|
|
30,076
|
|
|
Other income
(expense):
|
|
|
|
|
|
Miscellaneous income,
net
|
3
|
|
58
|
|
|
Interest
expense
|
(31,343)
|
|
(37,042)
|
|
|
Loss on early
extinguishment of debt
|
-
|
|
(349)
|
|
|
Loss before income tax
benefit
|
(806)
|
|
(7,257)
|
|
|
Income tax benefit
|
(282)
|
|
(3,048)
|
|
|
Net loss
|
(524)
|
|
(4,209)
|
|
|
Preferred dividends (includes
accretion of issuance
|
|
|
|
|
|
cost of $236 and $4,253,
respectively)
|
3,577
|
|
11,004
|
|
|
Net loss available to common
stockholders
|
$ (4,101)
|
|
$ (15,213)
|
|
|
|
|
|
|
|
Basic and diluted per share
information:
|
|
|
|
|
|
Net loss available to
common stockholders
|
$
(0.07)
|
|
$
(0.30)
|
|
|
Weighted-average shares
outstanding
|
57,113
|
|
51,525
|
|
|
|
|
|
|
|
Political advertising revenue
(less agency commissions)
|
$ 3,697
|
|
$ 8,371
|
|
|
|
|
|
Internet Initiatives:
We continue 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, 2011 compared to the three-month and
six-month periods ended June 30, 2010
is as follows:
|
Gray
Websites - Aggregate Page Views
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30,
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
|
(in
millions, except percentages)
|
|
|
|
|
|
|
|
|
|
Advertising impressions
generated
|
878.6
|
|
642.3
|
|
37 %
|
|
|
Total page views (including
mobile page views)
|
267.0
|
|
194.2
|
|
37 %
|
|
|
|
|
|
|
|
|
|
Six Months
Ended June 30,
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
|
(in
millions, except percentages)
|
|
|
|
|
|
|
|
|
|
Advertising impressions
generated
|
1,527.4
|
|
1,291.0
|
|
18 %
|
|
|
Total page views (including
mobile page views)
|
537.7
|
|
424.6
|
|
27 %
|
|
|
|
|
|
|
|
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 revenue is 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."
Guidance for the Third Quarter of 2011
We currently anticipate that our revenue and certain operating
expenses for the three-month period ending September 30, 2011 (the "third quarter of 2011")
will approximate the ranges presented in the table below.
|
|
2011
|
|
%
Change
|
|
2011
|
|
%
Change
|
|
|
|
|
|
Guidance
|
|
From
|
|
Guidance
|
|
From
|
|
|
|
|
|
Low
|
|
Actual
|
|
High
|
|
Actual
|
|
Actual
|
|
|
Selected operating
data:
|
|
Range
|
|
2010
|
|
Range
|
|
2010
|
|
2010
|
|
|
|
(dollars in
thousands)
|
|
|
OPERATING REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (less agency
commissions)
|
|
$ 73,500
|
|
(14)%
|
|
$ 74,500
|
|
(13)%
|
|
$ 85,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
(before depreciation,
amortization and
|
|
|
|
|
|
|
|
|
|
|
|
|
gain on disposal of
assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
Broadcast
|
|
$ 49,500
|
|
(1)%
|
|
$ 49,800
|
|
0 %
|
|
$ 49,796
|
|
|
Corporate and
administrative
|
|
$ 3,900
|
|
16 %
|
|
$ 4,100
|
|
22 %
|
|
$ 3,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER SELECTED DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
Political advertising
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
(less agency
commissions)
|
|
$ 3,600
|
|
(78)%
|
|
$ 3,900
|
|
(76)%
|
|
$ 16,042
|
|
|
|
|
|
|
|
|
|
|
|
|
Comments on Guidance:
Revenue.
Based on our current forecasts, we believe that our combined
third quarter of 2011 local, national and internet revenue,
excluding political revenue, will increase from the three-month
period ended September 30, 2010 (the
"third quarter of 2010") by approximately 2% to 3%. The components
of this anticipated increase are as follows:
- We anticipate our third quarter of 2011 internet revenue will
increase from the third quarter of 2010 by approximately 54% or
$1.8 million.
- We currently believe our third quarter of 2011 local revenue,
excluding political revenue, will increase from the third quarter
of 2010 by approximately 1%.
- We currently believe our third quarter of 2011 national
revenue, excluding political revenue, will decrease from the third
quarter of 2010 by approximately 5%.
We anticipate that our retransmission consent revenue during the
third quarter of 2011 will increase approximately $0.3 million, to a total of approximately
$4.9 million.
We estimate our base consulting revenue will remain at
$0.6 million for the third quarter of
2011. We do not anticipate recording any incentive consulting
revenue in the third quarter of 2011.
Operating expenses (before depreciation, amortization and
gain/loss on disposal of assets).
The anticipated decrease in broadcast operating expense for the
third quarter 2011 compared to the third quarter of 2010 is
expected to be due primarily to reduced commissions associated with
decreased anticipated political advertising revenue. For the full
year of 2011, we currently anticipate that total broadcast
operating expense will range between $194.7
million and $195.7 million in comparison to an actual amount
of $196.4 million for the full year
of 2010.
For the full year of 2011, we currently anticipate that
corporate and administrative operating expense will approximate
$13.8 million in comparison to an
actual amount of $13.6 million for
the full year of 2010.
Net Revenue By Category:
The table below presents our net revenue by type for the
three-month and six-month periods ended June
30, 2011 and 2010, respectively (dollars in thousands):
|
Three Months
Ended June 30,
|
|
|
2011
|
|
2010
|
|
|
|
|
Percent
|
|
|
|
Percent
|
|
|
Amount
|
|
of
Total
|
|
Amount
|
|
of
Total
|
|
|
Broadcasting net
revenues:
|
|
|
|
|
|
|
|
|
|
Local
|
$
47,785
|
|
62.7%
|
|
$
45,886
|
|
60.7%
|
|
|
National
|
13,428
|
|
17.6%
|
|
13,791
|
|
18.2%
|
|
|
Internet
|
4,865
|
|
6.4%
|
|
3,124
|
|
4.1%
|
|
|
Political
|
2,316
|
|
3.0%
|
|
5,588
|
|
7.4%
|
|
|
Retransmission
consent
|
5,055
|
|
6.6%
|
|
4,670
|
|
6.2%
|
|
|
Production and
other
|
2,029
|
|
2.8%
|
|
1,854
|
|
2.5%
|
|
|
Network
compensation
|
173
|
|
0.2%
|
|
173
|
|
0.2%
|
|
|
Consulting
revenue
|
550
|
|
0.7%
|
|
550
|
|
0.7%
|
|
|
Total
|
$
76,201
|
|
100.0%
|
|
$
75,636
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended June 30,
|
|
|
2011
|
|
2010
|
|
|
|
|
Percent
|
|
|
|
Percent
|
|
|
Amount
|
|
of
Total
|
|
Amount
|
|
of
Total
|
|
|
Broadcasting net
revenues:
|
|
|
|
|
|
|
|
|
|
Local
|
$ 91,550
|
|
62.7%
|
|
$ 89,397
|
|
61.2%
|
|
|
National
|
26,403
|
|
18.1%
|
|
27,742
|
|
19.0%
|
|
|
Internet
|
9,112
|
|
6.2%
|
|
6,196
|
|
4.2%
|
|
|
Political
|
3,697
|
|
2.5%
|
|
8,371
|
|
5.7%
|
|
|
Retransmission
consent
|
10,102
|
|
6.9%
|
|
9,309
|
|
6.4%
|
|
|
Production and
other
|
3,628
|
|
2.6%
|
|
3,786
|
|
2.6%
|
|
|
Network
compensation
|
351
|
|
0.2%
|
|
217
|
|
0.1%
|
|
|
Consulting
revenue
|
1,100
|
|
0.8%
|
|
1,100
|
|
0.8%
|
|
|
Total
|
$ 145,943
|
|
100.0%
|
|
$ 146,118
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
The aggregate internet revenue presented above is 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 8, 2011.
The call will begin at 1:00 PM Eastern
Time. The live dial-in number is 1 (888) 500-6973 and
the confirmation code is 6086474. 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: 6086474 until September 7, 2011.
Reconciliations:
Reconciliation of net income (loss) to the non-GAAP terms
(dollars in thousands):
|
|
|
|
|
|
|
|
As
Reported
|
|
|
Three Months
Ended
|
|
|
June
30,
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
|
Net income (loss)
|
$
2,559
|
|
$
534
|
|
|
|
|
Adjustments to reconcile
to Broadcast Cash Flow Less
|
|
|
|
|
|
|
|
Cash Corporate
Expenses:
|
|
|
|
|
|
|
|
Depreciation
|
6,638
|
|
7,931
|
|
|
|
|
Amortization of intangible
assets
|
34
|
|
120
|
|
|
|
|
Amortization of non-cash
stock based compensation
|
34
|
|
62
|
|
|
|
|
Gain on disposals of
assets, net
|
(831)
|
|
(480)
|
|
|
|
|
Miscellaneous (income)
expense, net
|
(3)
|
|
(19)
|
|
|
|
|
Interest
expense
|
15,343
|
|
17,431
|
|
|
|
|
Income tax expense
(benefit)
|
1,129
|
|
190
|
|
|
|
|
Amortization of program
broadcast rights
|
3,581
|
|
3,852
|
|
|
|
|
Common stock contributed
to 401(k) plan
|
|
|
|
|
|
|
|
excluding corporate 401(k)
contributions
|
8
|
|
8
|
|
|
|
|
Network compensation
revenue recognized
|
(173)
|
|
(173)
|
|
|
|
|
Network compensation per
network affiliation agreement
|
(60)
|
|
(60)
|
|
|
|
|
Payments for program
broadcast rights
|
(4,944)
|
|
(3,853)
|
|
|
|
|
Broadcast Cash Flow Less Cash
Corporate Expenses
|
23,315
|
|
25,543
|
|
(9)%
|
|
|
Corporate and
administrative expenses excluding
|
|
|
|
|
|
|
|
amortization of non-cash
stock-based compensation
|
3,368
|
|
3,775
|
|
|
|
|
Broadcast Cash
Flow
|
$
26,683
|
|
$ 29,318
|
|
(9)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
|
Six Months
Ended
|
|
|
June
30,
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
|
Net loss
|
$
(524)
|
|
$ (4,209)
|
|
|
|
|
Adjustments to reconcile
to Broadcast Cash Flow Less
|
|
|
|
|
|
|
|
Cash Corporate
Expenses:
|
|
|
|
|
|
|
|
Depreciation
|
13,636
|
|
15,906
|
|
|
|
|
Amortization of intangible
assets
|
68
|
|
242
|
|
|
|
|
Amortization of non-cash
stock based compensation
|
68
|
|
217
|
|
|
|
|
Gain on disposals of
assets, net
|
(844)
|
|
(524)
|
|
|
|
|
Miscellaneous (income)
expense, net
|
(3)
|
|
(58)
|
|
|
|
|
Interest
expense
|
31,343
|
|
37,042
|
|
|
|
|
Loss on early
extinguishment of debt
|
-
|
|
349
|
|
|
|
|
Income tax
benefit
|
(282)
|
|
(3,048)
|
|
|
|
|
Amortization of program
broadcast rights
|
7,414
|
|
7,705
|
|
|
|
|
Common stock contributed
to 401(k) plan
|
|
|
|
|
|
|
|
excluding corporate 401(k)
contributions
|
16
|
|
15
|
|
|
|
|
Network compensation
revenue recognized
|
(351)
|
|
(217)
|
|
|
|
|
Network compensation per
network affiliation agreement
|
(120)
|
|
(76)
|
|
|
|
|
Payments for program
broadcast rights
|
(8,738)
|
|
(7,728)
|
|
|
|
|
Broadcast Cash Flow Less Cash
Corporate Expenses
|
41,683
|
|
45,616
|
|
(9)%
|
|
|
Corporate and
administrative expenses excluding
|
|
|
|
|
|
|
|
amortization of non-cash
stock-based compensation
|
6,372
|
|
6,542
|
|
|
|
|
Broadcast Cash
Flow
|
$
48,055
|
|
$ 52,158
|
|
(8)%
|
|
|
|
|
|
|
|
Non-GAAP Terms
This press release includes the non-GAAP financial measure 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), loss on disposal of
assets, miscellaneous expense, interest expense, loss on early
extinguishment of debt, income tax expense and expense of common
stock contributed to our 401(k) plan, less gain on disposal of
assets, miscellaneous income, income tax benefit, payments for
program broadcast obligations and less network compensation revenue
and network payments. 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
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 (loss) and
cash flows reported in accordance with GAAP.
Gray Television, Inc.
Gray Television, Inc. is a television broadcast company
headquartered in Atlanta, GA.
Gray currently operates 36 television stations serving 30
markets. We broadcast a primary channel from each of our
stations and also operate at least one digital second channel from
the majority of our stations. Each of our primary channels are
affiliated with either CBS (17 channels), NBC (10 channels), ABC (8
channels) or FOX (1 channel). In addition, we currently
operate 40 digital second channels that are affiliated with either
ABC (1 channel), FOX (4 channels), CW (8 channels), MyNetworkTV (18
channels), Universal Sports Network (2 channels) and The Country
Network (1 channel) or are operated as local news/weather channels
(6 channels).
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 2011 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 is as of August 8, 2011. 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, 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.