ATLANTA, Nov. 4, 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
"third quarter of 2011") and nine-month period ended September 30, 2011 as compared to the three-month
period (the "third quarter of 2010") and nine-month period ended
September 30, 2010.
Highlights:
For the third quarter of 2011, our revenue, broadcast expense
and corporate and administrative expense were as follows:
|
Three Months
Ended September 30,
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
|
(in
thousands except for percentages)
|
|
|
Revenue (less agency
commissions)
|
$
76,518
|
|
$
85,345
|
|
(10)%
|
|
|
|
|
|
|
|
|
|
Operating expenses (before
depreciation,
|
|
|
|
|
|
|
|
amortization and gain on
disposal of assets):
|
|
|
|
|
|
|
|
Broadcast
|
$
48,678
|
|
$
49,796
|
|
(2)%
|
|
|
|
|
|
|
|
|
|
Corporate and
administrative
|
$
4,089
|
|
$
3,369
|
|
21%
|
|
|
|
|
|
|
|
We are pleased with our operating results for the third quarter
of 2011. Our total revenue decreased in the third quarter of
2011 when compared to the third quarter of 2010 primarily due to a
decrease in political advertising revenue of $10.8 million. 2011 is an "off year" in the
two-year political election cycle and, as a result, we anticipate
significantly less political revenue in 2011.
For the third quarter of 2011, our operating results were
consistent with or exceeded our estimates, which were publicly
disclosed on August 8, 2011. Our
actual total revenue exceeded our estimates, our actual broadcast
expense was below our estimated range and our actual corporate
expense was within our estimated range.
Comments on Results of Operations for the Three-Month Period
Ended September 30,
2011:
Revenue.
Total revenue decreased $8.8
million, or 10%, to $76.5
million for the third quarter of 2011 compared to the third
quarter of 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 decreased due to decreased
advertising from political candidates and special interest groups
in the "off year" of the two-year election cycle. Local and
internet advertising revenue increased due to increased spending by
advertisers in a modestly improving economic environment while
national advertising revenue suffered somewhat from decreased
advertising spending by supermarket, financial/insurance and
entertainment customers. Retransmission consent revenue
increased due to an increase in the number of subscribers and
improved terms of our retransmission contracts in the third quarter
of 2011 compared to the third quarter of 2010. We continued to earn
base consulting revenue from our agreement with Young Broadcasting,
Inc. ("Young").
The principal types of our revenue, and period over period
changes therein, were as follows:
Local advertising revenue increased $0.4
million, or 1%, to $44.7
million.
National advertising revenue decreased $0.5 million, or 4%, to $13.8 million.
Internet advertising revenue increased $1.9 million, or 57%, to $5.2 million.
Political advertising revenue decreased $10.8 million, or 67%, to $5.2 million.
Retransmission consent revenue increased $0.5 million, or 11%, to $5.2 million.
Production and other revenue decreased $0.3 million, or 17%, to $1.7 million.
Consulting revenue from our agreement with Young remained at
$0.6 million.
Our five largest local and national advertising categories on a
combined local and national basis by customer type for the third
quarter of 2011 demonstrated the following changes during the
period compared to the third quarter of 2010: automotive increased
5%; restaurant increased 3%; medical increased 7%; communications
increased 7%; and furniture and appliances increased 9%.
Operating expenses.
Broadcast expenses (before depreciation, amortization and gain
on disposal of assets) decreased $1.1
million, or 2%, to $48.7
million in the third quarter of 2011 compared to the third
quarter of 2010 due primarily to decreases in compensation expense
of $0.5 million and non-compensation
expense of $0.6 million.
Compensation expense decreased primarily due to decreased
payroll expense of $1.3 million,
partially offset by an increase in employee healthcare expenses of
$0.6 million. The decrease in
payroll expense was due primarily to reduced incentive compensation
expense. Healthcare expenses increased due to increased claims
activity. Non-compensation expense decreased primarily due to
decreases in syndicated programming expense and national sales
commission expense related to the reduction in political and
national advertising revenue. As of September 30, 2011 and 2010, we employed 2,088
and 2,164 employees, respectively, in our broadcast operations.
Corporate and administrative expenses (before depreciation,
amortization and gain on disposal of assets) increased $0.7 million, or 21%, to $4.1 million in the third quarter of 2011
compared to the third quarter of 2010. The increase was due
primarily to an increase in non-compensation expense of
$1.0 million, partially offset by a
decrease in compensation expense of $0.3
million. Compensation expense decreased primarily due
to a decrease in bonus compensation expense. We recorded non-cash
stock-based compensation expense during the third quarter of 2011
and the third quarter of 2010 of $34,000 and $57,000, 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 Nine-Month Period
Ended September 30,
2011:
Revenue.
Total revenue decreased $9.0
million, or 4%, to $222.5
million for the nine months ended September 30, 2011 compared to the nine months
ended September 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
and special interest groups during the "off year" of the two-year
political advertising cycle. Local and internet advertising revenue
increased due to increased spending by advertisers in a modestly
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 local and internet advertising revenue.
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
approximately $0.9 million earned in
2010 on our seventeen CBS-affiliated channels. In addition,
results in the nine-month period ended September 30, 2010 benefited from approximately
$2.8 million of net revenue 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 nine-month period ended September 30, 2011. Retransmission consent
revenue increased due to an increase in subscribers and improved
terms in our retransmission contracts for the nine-month period
ended September 30, 2011 compared to
the nine-month period ended September 30,
2010. We continued to earn base consulting revenue from our
agreement with Young in the nine-month period ended September 30, 2011.
The principal types of our revenue, and period over period
changes therein, were as follows:
Local advertising revenue increased $2.6
million, or 2%, to $136.3
million.
National advertising revenue decreased $1.8 million, or 4%, to $40.2 million.
Internet advertising revenue increased $4.8 million, or 50%, to $14.3 million.
Political advertising revenue decreased $15.5 million, or 63%, to $8.9 million.
Retransmission consent revenue increased $1.3 million, or 9%, to $15.3 million.
Production and other revenue decreased $0.5 million, or 9%, to $5.3 million.
Consulting revenue from our agreement with Young remained at
$1.7 million.
Our five largest local and national advertising categories on a
combined local and national basis by customer type for the
nine-month period ended September 30,
2011 demonstrated the following changes during the period
compared to the nine-month period ended September 30, 2010: automotive increased 2%;
restaurant increased 2%; medical increased 9%; communications
increased 5%; and furniture and appliances increased 7%.
Operating expenses.
Broadcast expenses (before depreciation, amortization and gain
on disposal of assets) increased $1.3
million, or 1%, to $144.8
million. This increase was primarily due to an increase in
compensation expense of $2.0 million,
partially offset by a decrease in non-compensation expense of
$0.7 million. Compensation
expense increased primarily due to an increase in healthcare
expense of $1.0 million due to
increased claims activity. Non-compensation expense decreased
primarily due to decreases in syndicated programming expense and
national sales commission expense related to the reduction in
political and national advertising revenue.
Corporate and administrative expenses (before depreciation,
amortization and gain on disposal of assets) increased $0.4 million, or 4%, to $10.5 million. The increase was due primarily to
an increase in non-compensation expense of $1.3 million, partially offset by a decrease in
compensation expense of $0.9 million.
Compensation expense decreased primarily due to a decrease in
bonus compensation expense. The decrease in bonus compensation
expense was due primarily to $1.05
million in bonus compensation for certain executive officers
in the nine-month period ended September 30,
2010. We recorded non-cash stock-based compensation
expense during the nine-month periods ended September 30, 2011 and 2010 of $102,000 and $274,000, 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.
Detailed table of operating results:
|
Gray
Television, Inc.
|
|
|
Selected
Operating Data (Unaudited)
|
|
|
(in
thousands except for per share data)
|
|
|
|
|
|
Three Months
Ended
|
|
|
September
30,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Revenue (less agency
commissions)
|
$
76,518
|
|
$
85,345
|
|
|
Operating expenses before
depreciation,
|
|
|
|
|
|
amortization and gain on
disposal of assets, net:
|
|
|
|
|
|
Broadcast
|
48,678
|
|
49,796
|
|
|
Corporate and
administrative
|
4,089
|
|
3,369
|
|
|
Depreciation
|
6,530
|
|
7,495
|
|
|
Amortization of intangible
assets
|
29
|
|
120
|
|
|
Gain on disposals of assets,
net
|
(1,030)
|
|
(85)
|
|
|
58,296
|
|
60,695
|
|
|
Operating income
|
18,222
|
|
24,650
|
|
|
Other (expense)
income:
|
|
|
|
|
|
Miscellaneous expense,
net
|
-
|
|
(15)
|
|
|
Interest
expense
|
(15,165)
|
|
(16,671)
|
|
|
Income before income
tax
|
3,057
|
|
7,964
|
|
|
Income tax expense
|
1,073
|
|
2,456
|
|
|
Net income
|
1,984
|
|
5,508
|
|
|
Preferred stock dividends
(includes accretion of
|
|
|
|
|
|
issuance cost of $425 and
$118, respectively)
|
1,957
|
|
1,789
|
|
|
Net income available to common
stockholders
|
$
27
|
|
$
3,719
|
|
|
|
|
|
|
|
Basic per share
information:
|
|
|
|
|
|
Net income available to
common stockholders
|
$
-
|
|
$
0.07
|
|
|
Weighted-average shares
outstanding
|
57,118
|
|
57,071
|
|
|
|
|
|
|
|
Diluted per share
information:
|
|
|
|
|
|
Net income available to
common stockholders
|
$
-
|
|
$
0.07
|
|
|
Weighted-average shares
outstanding
|
57,118
|
|
57,072
|
|
|
|
|
|
|
|
Political advertising revenue
(less agency commissions)
|
$
5,243
|
|
$
16,042
|
|
|
|
|
|
|
Gray
Television, Inc.
|
|
|
Selected
Operating Data (Unaudited)
|
|
|
(in
thousands except for per share data)
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Revenue (less agency
commissions)
|
$
222,461
|
|
$
231,463
|
|
|
Operating expenses before
depreciation,
|
|
|
|
|
|
amortization and gain on
disposal of assets, net:
|
|
|
|
|
|
Broadcast
|
144,787
|
|
143,455
|
|
|
Corporate and
administrative
|
10,529
|
|
10,128
|
|
|
Depreciation
|
20,166
|
|
23,401
|
|
|
Amortization of intangible
assets
|
97
|
|
362
|
|
|
Gain on disposals of assets,
net
|
(1,874)
|
|
(609)
|
|
|
173,705
|
|
176,737
|
|
|
Operating income
|
48,756
|
|
54,726
|
|
|
Other income
(expense):
|
|
|
|
|
|
Miscellaneous income,
net
|
3
|
|
43
|
|
|
Interest
expense
|
(46,508)
|
|
(53,713)
|
|
|
Loss on early
extinguishment of debt
|
-
|
|
(349)
|
|
|
Income before income
taxes
|
2,251
|
|
707
|
|
|
Income tax expense
(benefit)
|
791
|
|
(592)
|
|
|
Net income
|
1,460
|
|
1,299
|
|
|
Preferred stock dividends
(includes accretion of
|
|
|
|
|
|
issuance cost of $661 and
$4,371, respectively)
|
5,534
|
|
12,793
|
|
|
Net loss available to common
stockholders
|
$
(4,074)
|
|
$
(11,494)
|
|
|
|
|
|
|
|
Basic and diluted per share
information:
|
|
|
|
|
|
Net loss available to
common stockholders
|
$
(0.07)
|
|
$
(0.22)
|
|
|
Weighted-average shares
outstanding
|
57,115
|
|
53,394
|
|
|
|
|
|
|
|
Political advertising revenue
(less agency commissions)
|
$
8,940
|
|
$
24,413
|
|
|
|
|
|
Internet Initiatives:
We continue to expand our internet initiatives in each of our
markets. 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
website page view data for the three-month and nine-month periods
ended September 30, 2011 compared to
the three-month and nine-month periods ended September 30, 2010 is as follows:
|
Gray
Websites - Aggregate Page Views
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
|
(in
millions, except percentages)
|
|
|
|
|
|
|
|
|
|
Advertising impressions
generated
|
918.3
|
|
613.8
|
|
50%
|
|
|
Total page views (including
mobile page views)
|
280.0
|
|
198.9
|
|
41%
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended September 30,
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
|
(in
millions, except percentages)
|
|
|
|
|
|
|
|
|
|
Advertising impressions
generated
|
2,445.7
|
|
1,904.9
|
|
28%
|
|
|
Total page views (including
mobile page views)
|
817.7
|
|
623.5
|
|
31%
|
|
|
|
|
|
|
|
Other Financial Data:
|
September
30, 2011
|
|
December 31,
2010
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
Cash
|
$
9,135
|
|
$
5,431
|
|
|
Long-term debt, including
current portion
|
$
824,101
|
|
$
826,704
|
|
|
Preferred stock (1)
|
$
31,330
|
|
$
37,181
|
|
|
Borrowing availability under our
senior credit facility
|
$
40,000
|
|
$
40,000
|
|
|
|
|
|
|
|
Nine Months
Ended September 30,
|
|
|
2011
|
|
2010
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
$
37,647
|
|
$
24,739
|
|
|
Net cash used in investing
activities
|
(20,080)
|
|
(10,916)
|
|
|
Net cash used in financing
activities
|
(13,863)
|
|
(9,653)
|
|
|
Net increase in cash
|
$
3,704
|
|
$
4,170
|
|
|
|
|
|
(1) As of September 30,
2011, preferred stock does not include unaccreted original
issuance costs and accrued preferred stock dividends of
$1.5 million and $16.0 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.
Guidance for the Fourth Quarter of
2011:
We anticipate that our revenue and certain operating expenses
for the three-month period ending December
31, 2011 (the "fourth 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)
|
|
$ 81,000
|
|
(29)%
|
|
$ 82,000
|
|
(28)%
|
|
$ 114,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
(before depreciation,
amortization and
|
|
|
|
|
|
|
|
|
|
|
|
|
gain on disposal of
assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
Broadcast
|
|
$ 49,300
|
|
(7)%
|
|
$ 49,800
|
|
(6)%
|
|
$ 52,898
|
|
|
Corporate and
administrative
|
|
$
3,700
|
|
8 %
|
|
$ 4,000
|
|
17 %
|
|
$
3,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER SELECTED DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
Political advertising
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
(less agency
commissions)
|
|
$
2,500
|
|
(92)%
|
|
$ 3,000
|
|
(91)%
|
|
$ 33,139
|
|
|
|
|
|
|
|
|
|
|
|
|
Comments on Guidance:
Revenue.
Based on our current forecasts, we believe that our combined
fourth quarter of 2011 local, national and internet revenue,
excluding political revenue, will increase from the three-month
period ended December 31, 2010 (the
"fourth quarter of 2010") by approximately 3% to 4%. The
anticipated changes by revenue type are as follows:
- We anticipate our fourth quarter of 2011 internet revenue will
increase from the fourth quarter of 2010 by approximately 45%, or
$1.8 million.
- We believe our fourth quarter of 2011 local revenue, excluding
political revenue, will increase from the fourth quarter of 2010 by
approximately 1%.
- We believe our fourth quarter of 2011 national revenue,
excluding political revenue, will increase from the fourth quarter
of 2010 by approximately 2%.
We anticipate that our retransmission consent revenue during the
fourth quarter of 2011 will be approximately $4.8 million.
We estimate our base consulting revenue will remain at
$0.6 million for the fourth quarter
of 2011. We have not included any incentive consulting revenue in
our estimate of revenue for the fourth quarter of 2011.
Operating expenses (before depreciation, amortization and
gain/loss on disposal of assets).
The anticipated decrease in broadcast operating expense for the
fourth quarter 2011 compared to the fourth quarter of 2010 is
expected to be due primarily to reduced employee incentive
compensation, syndicated programming costs and national sales
commissions associated with anticipated decreased political
advertising revenue.
Net Revenue By Type:
The table below presents our net revenue by type for the
three-month and nine-month periods ended September 30, 2011 and 2010, respectively
(dollars in thousands):
|
|
Three Months
Ended September 30,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
Percent
|
|
|
|
Percent
|
|
|
|
Amount
|
|
of
Total
|
|
Amount
|
|
of
Total
|
|
|
Broadcasting net
revenues:
|
|
|
|
|
|
|
|
|
|
|
Local
|
|
$ 44,711
|
|
58.4%
|
|
$ 44,278
|
|
51.9%
|
|
|
National
|
|
13,786
|
|
18.0%
|
|
14,294
|
|
16.7%
|
|
|
Internet
|
|
5,213
|
|
6.8%
|
|
3,329
|
|
3.9%
|
|
|
Political
|
|
5,243
|
|
6.9%
|
|
16,042
|
|
18.8%
|
|
|
Retransmission
consent
|
|
5,162
|
|
6.7%
|
|
4,658
|
|
5.5%
|
|
|
Production and
other
|
|
1,680
|
|
2.2%
|
|
2,022
|
|
2.4%
|
|
|
Network
compensation
|
|
173
|
|
0.2%
|
|
172
|
|
0.2%
|
|
|
Consulting
revenue
|
|
550
|
|
0.8%
|
|
550
|
|
0.6%
|
|
|
Total
|
|
$ 76,518
|
|
100.0%
|
|
$ 85,345
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended September 30,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
Percent
|
|
|
|
Percent
|
|
|
|
Amount
|
|
of
Total
|
|
Amount
|
|
of
Total
|
|
|
Broadcasting net
revenues:
|
|
|
|
|
|
|
|
|
|
|
Local
|
|
$ 136,261
|
|
61.3%
|
|
$ 133,675
|
|
57.8%
|
|
|
National
|
|
40,189
|
|
18.1%
|
|
42,036
|
|
18.2%
|
|
|
Internet
|
|
14,325
|
|
6.4%
|
|
9,525
|
|
4.1%
|
|
|
Political
|
|
8,940
|
|
4.0%
|
|
24,413
|
|
10.5%
|
|
|
Retransmission
consent
|
|
15,264
|
|
6.9%
|
|
13,967
|
|
6.0%
|
|
|
Production and
other
|
|
5,308
|
|
2.4%
|
|
5,808
|
|
2.5%
|
|
|
Network
compensation
|
|
524
|
|
0.2%
|
|
389
|
|
0.2%
|
|
|
Consulting
revenue
|
|
1,650
|
|
0.7%
|
|
1,650
|
|
0.7%
|
|
|
Total
|
|
$ 222,461
|
|
100.0%
|
|
$ 231,463
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
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."
Conference Call Information
We will host a conference call to discuss our third quarter
operating results on November 4,
2011. The call will begin at 11:00 AM Eastern Time. The live dial-in
number is 1 (888) 466-4587 and the confirmation code is 6466406.
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: 6466406 until
December 4, 2011.
Reconciliations:
Reconciliation of net income to the non-GAAP terms (dollars in
thousands):
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
|
Net income
|
$ 1,984
|
|
$ 5,508
|
|
|
|
|
Adjustments to reconcile
to Broadcast Cash Flow Less
|
|
|
|
|
|
|
|
Cash Corporate
Expenses:
|
|
|
|
|
|
|
|
Depreciation
|
6,530
|
|
7,495
|
|
|
|
|
Amortization of intangible
assets
|
29
|
|
120
|
|
|
|
|
Amortization of non-cash
stock based compensation
|
34
|
|
57
|
|
|
|
|
Gain on disposals of
assets, net
|
(1,030)
|
|
(85)
|
|
|
|
|
Miscellaneous expense,
net
|
-
|
|
15
|
|
|
|
|
Interest
expense
|
15,165
|
|
16,671
|
|
|
|
|
Income tax
expense
|
1,073
|
|
2,456
|
|
|
|
|
Amortization of program
broadcast rights
|
3,274
|
|
3,733
|
|
|
|
|
Common stock contributed
to 401(k) plan
|
|
|
|
|
|
|
|
excluding corporate 401(k)
plan contributions
|
6
|
|
8
|
|
|
|
|
Network compensation
revenue recognized
|
(173)
|
|
(172)
|
|
|
|
|
Network compensation per
network affiliation agreement
|
(60)
|
|
(60)
|
|
|
|
|
Payments for program
broadcast rights
|
(3,714)
|
|
(3,862)
|
|
|
|
|
Broadcast Cash Flow Less Cash
Corporate Expenses
|
23,118
|
|
31,884
|
|
(27)%
|
|
|
Corporate and
administrative expenses excluding
|
|
|
|
|
|
|
|
amortization of non-cash
stock-based compensation
|
4,055
|
|
3,312
|
|
|
|
|
Broadcast Cash
Flow
|
$ 27,173
|
|
$ 35,196
|
|
(23)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
|
Net loss
|
$ 1,460
|
|
$ 1,299
|
|
|
|
|
Adjustments to reconcile
to Broadcast Cash Flow Less
|
|
|
|
|
|
|
|
Cash Corporate
Expenses:
|
|
|
|
|
|
|
|
Depreciation
|
20,166
|
|
23,401
|
|
|
|
|
Amortization of intangible
assets
|
97
|
|
362
|
|
|
|
|
Amortization of non-cash
stock based compensation
|
102
|
|
274
|
|
|
|
|
Gain on disposals of
assets, net
|
(1,874)
|
|
(609)
|
|
|
|
|
Miscellaneous income,
net
|
(3)
|
|
(43)
|
|
|
|
|
Interest
expense
|
46,508
|
|
53,713
|
|
|
|
|
Loss on early
extinguishment of debt
|
-
|
|
349
|
|
|
|
|
Income tax expense
(benefit)
|
791
|
|
(592)
|
|
|
|
|
Amortization of program
broadcast rights
|
10,688
|
|
11,438
|
|
|
|
|
Common stock contributed
to 401(k) plan
|
|
|
|
|
|
|
|
excluding corporate 401(k)
plan contributions
|
22
|
|
23
|
|
|
|
|
Network compensation
revenue recognized
|
(524)
|
|
(389)
|
|
|
|
|
Network compensation per
network affiliation agreement
|
(180)
|
|
(136)
|
|
|
|
|
Payments for program
broadcast rights
|
(12,452)
|
|
(11,590)
|
|
|
|
|
Broadcast Cash Flow Less Cash
Corporate Expenses
|
64,801
|
|
77,500
|
|
(16)%
|
|
|
Corporate and
administrative expenses excluding
|
|
|
|
|
|
|
|
amortization of non-cash
stock-based compensation
|
10,427
|
|
9,854
|
|
|
|
|
Broadcast Cash
Flow
|
$ 75,228
|
|
$ 87,354
|
|
(14)%
|
|
|
|
|
|
|
|
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, and expense of common stock contributed to our 401(k) plan,
less gain on disposal of assets, 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 (1 channels) and The Country
Network (1 channel) or are operated as local news/weather channels
(7 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 fact, and may include, among other things, statements
regarding our current expectations and beliefs of operating results
for the fourth 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 November 4, 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.
Web site: www.gray.tv
SOURCE Gray Television, Inc.