ATLANTA, Feb. 24, 2012 /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
"fourth quarter of 2011") and year ended December 31, 2011 as compared to the three-month
period (the "fourth quarter of 2010") and year ended December 31, 2010.
Highlights:
For the fourth quarter of 2011, our revenue, broadcast expense
and corporate and administrative expense were as follows:
|
Three Months
Ended December 31,
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
|
(in
thousands except for percentages)
|
|
Revenue (less agency
commissions)
|
$ 84,670
|
|
$ 114,595
|
|
(26)%
|
|
|
|
|
|
|
|
|
Operating expenses (before
depreciation,
|
|
|
|
|
|
|
amortization and gain on
disposals of assets):
|
|
|
|
|
|
|
Broadcast
|
$ 49,409
|
|
$ 52,898
|
|
(7)%
|
|
|
|
|
|
|
|
|
Corporate and
administrative
|
$ 3,644
|
|
$ 3,417
|
|
7 %
|
|
|
|
|
|
|
|
We are pleased with our operating results for the fourth quarter
of 2011. For the fourth quarter of 2011, our operating
results were consistent with or exceeded our estimates, which were
publicly disclosed on November 4,
2011. Our actual total revenue exceeded our estimates, our
actual broadcast expense was within our estimated range and our
actual corporate expense was below our estimated range.
Our total revenue decreased in the fourth quarter of 2011 when
compared to the fourth quarter of 2010 primarily due to a decrease
in political advertising revenue of $28.6
million. 2011 is an "off year" in the two-year
political election cycle and, as a result, we earned significantly
less political revenue in 2011. However, the $13.5 million of political advertising revenue we
earned in the year ended December 31,
2011 set a new "off year" record. The previous record of
$10.0 million dates to the year ended
December 31, 2009.
Comments on Results of Operations for the Three-Month Period
Ended December 31,
2011:
Revenue.
Total revenue decreased $29.9
million, or 26%, to $84.7
million for the fourth quarter of 2011 compared to the
fourth quarter of 2010 due primarily to decreased political
advertising revenue and consulting revenue, partially offset by
increased local, national 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, national and internet advertising revenue
increased due to increased spending by advertisers in an improving
economic environment. Retransmission consent revenue
increased due to an increase in the number of subscribers and
improved terms of our retransmission contracts in the fourth
quarter of 2011 compared to the fourth quarter of 2010. We
continued to earn base consulting revenue from our agreement with
Young Broadcasting, Inc. ("Young"); however, we did not record any
incentive consulting revenue during the fourth quarter of 2011.
The principal types of our revenue, and period over period
changes therein, were as follows:
Local advertising revenue increased $1.3
million, or 3%, to $50.8
million.
National advertising revenue increased $0.5 million, or 3%, to $16.1 million.
Internet advertising revenue increased $1.9 million, or 49%, to $5.8 million.
Political advertising revenue decreased $28.6 million, or 86%, to $4.6 million.
Retransmission consent revenue increased $0.2 million, or 3%, to $5.0 million.
Production and other revenue increased $0.1 million, or 8%, to $1.8 million.
Consulting revenue decreased $5.3
million, or 91%, to $0.6
million from our agreement with Young.
Our five largest local and national advertising categories on a
combined local and national basis by customer type for the fourth
quarter of 2011 demonstrated the following changes during the
period compared to the fourth quarter of 2010: automotive increased
17%; restaurant decreased less than 1%; medical increased 18%;
communications decreased 2%; and furniture and appliances increased
6%.
Operating expenses.
Broadcast expenses (before depreciation, amortization and gain
on disposal of assets) decreased $3.5
million, or 7%, to $49.4
million in the fourth quarter of 2011 compared to the fourth
quarter of 2010 due primarily to decreases in compensation expense
of $1.1 million and non-compensation
expense of $2.4 million.
Compensation expense decreased primarily due to decreased
payroll expense of $1.1 million,
partially offset by an increase in employee healthcare expenses of
less than $0.1 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 advertising revenue. As of December 31, 2011 and 2010, we employed 2,082 and
2,147 employees, respectively, in our broadcast operations.
Since December 31, 2007 we have
decreased the number of employees in our broadcast operations by
14.1%, or 343 positions.
Corporate and administrative expenses (before depreciation,
amortization and gain on disposal of assets) increased $0.2 million, or 7%, to $3.6 million in the fourth quarter of 2011
compared to the fourth quarter of 2010 due primarily to an increase
in payroll expense of $0.2 million.
We recorded non-cash stock-based compensation expense during
the fourth quarter of 2011 and the fourth quarter of 2010 of
$34,000 and $58,000, respectively. Non-cash stock-based
compensation expense decreased primarily due to 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 Year Ended
December 31, 2011:
Revenue.
Total revenue decreased $38.9
million, or 11%, to $307.1
million for the year ended December
31, 2011 compared to the year ended December 31, 2010 due primarily to decreased
political and national advertising revenue and consulting 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. However, the $13.5 million of political advertising revenue we
earned in the year ended December 31,
2011 set a new "off year" record. The previous record of
$10.0 million dates to the year ended
December 31, 2009. Local and internet
advertising revenue increased due to increased spending by
advertisers in an improving economic environment. Our
national advertising revenue also benefited from an improving
economy, but 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 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 year
ended December 31, 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 year ended December 31, 2011. Our national advertising
revenue also decreased in 2011, in part, due to natural disasters
affecting the operations of Japanese auto manufacturers.
Retransmission consent revenue increased due to an increase in
subscribers and improved terms in our retransmission contracts for
the year ended December 31, 2011
compared to the year ended December 31,
2010. We continued to earn base consulting revenue from our
agreement with Young; however, we did not record any incentive
consulting revenue during the year ended December 31, 2011.
The principal types of our revenue, and period over period
changes therein, were as follows:
Local advertising revenue increased $3.9
million, or 2%, to $187.0
million.
National advertising revenue decreased $1.3 million, or 2%, to $56.3 million.
Internet advertising revenue increased $6.7 million, or 50%, to $20.1 million.
Political advertising revenue decreased $44.1 million, or 77%, to $13.5 million; however, 2011 was a new "off year"
record.
Retransmission consent revenue increased $1.5 million, or 8%, to $20.2 million.
Production and other revenue decreased $0.4 million, or 5%, to $7.1 million.
Consulting revenue from our agreement with Young decreased
$5.3 million, or 71%, to $2.2 million.
Our five largest local and national advertising categories on a
combined local and national basis by customer type for the year
ended December 31, 2011 demonstrated
the following changes during the period compared to the year ended
December 31, 2010: automotive
increased 6%; restaurant increased 1%; medical increased 12%;
communications increased 3%; and furniture and appliances increased
7%.
Operating expenses.
Broadcast expenses (before depreciation, amortization and gain
on disposal of assets) decreased $2.2
million, or 1%, to $194.2
million. This decrease was primarily due to a decrease in
non-compensation expense of $3.1
million, partially offset by an increase in compensation
expense of $0.9 million.
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. Compensation expense increased primarily due
to an increase in healthcare expense of $1.1
million due to increased claims activity.
Corporate and administrative expenses (before depreciation,
amortization and gain on disposal of assets) increased $0.6 million, or 5%, to $14.2 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 $0.7 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 year ended December 31, 2010.
We recorded non-cash stock-based compensation expense during
the years ended December 31, 2011 and
2010 of $136,000 and $332,000, respectively. Non-cash stock-based
compensation expense decreased primarily due to 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
|
|
|
December
31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Revenue (less agency
commissions)
|
$ 84,670
|
|
$ 114,595
|
|
Operating expenses before
depreciation,
|
|
|
|
|
amortization and gain on
disposal of assets, net:
|
|
|
|
|
Broadcast
|
49,409
|
|
52,898
|
|
Corporate and
administrative
|
3,644
|
|
3,417
|
|
Depreciation
|
6,017
|
|
7,229
|
|
Amortization of intangible
assets
|
28
|
|
117
|
|
Gain on disposals of assets,
net
|
(1,020)
|
|
(1,300)
|
|
Operating expenses
|
58,078
|
|
62,361
|
|
Operating income
|
26,592
|
|
52,234
|
|
Other income
(expense):
|
|
|
|
|
Miscellaneous income,
net
|
-
|
|
1
|
|
Interest
expense
|
(15,269)
|
|
(16,332)
|
|
Income before income
tax
|
11,323
|
|
35,903
|
|
Income tax expense
|
3,748
|
|
14,039
|
|
Net income
|
7,575
|
|
21,864
|
|
Preferred stock dividends
(includes accretion of
|
|
|
|
|
issuance cost of $384 and
$118, respectively)
|
1,706
|
|
1,789
|
|
Net income available to common
stockholders
|
$ 5,869
|
|
$ 20,075
|
|
|
|
|
|
|
Basic per share
information:
|
|
|
|
|
Net income available to
common stockholders
|
$ 0.10
|
|
$
0.35
|
|
Weighted-average shares
outstanding
|
57,121
|
|
57,075
|
|
|
|
|
|
|
Diluted per share
information:
|
|
|
|
|
Net income available to
common stockholders
|
$ 0.10
|
|
$
0.35
|
|
Weighted-average shares
outstanding
|
57,125
|
|
57,078
|
|
|
|
|
|
|
Political advertising revenue
(less agency commissions)
|
$ 4,551
|
|
$ 33,139
|
|
|
|
|
|
Gray
Television, Inc.
|
|
Selected
Operating Data (Unaudited)
|
|
(in
thousands except for per share data)
|
|
|
|
|
|
Year
Ended
|
|
|
December
31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Revenue (less agency
commissions)
|
$ 307,131
|
|
$ 346,058
|
|
Operating expenses before
depreciation,
|
|
|
|
|
amortization and gain on
disposals of assets, net:
|
|
|
|
|
Broadcast
|
194,196
|
|
196,353
|
|
Corporate and
administrative
|
14,173
|
|
13,545
|
|
Depreciation
|
26,183
|
|
30,630
|
|
Amortization of intangible
assets
|
125
|
|
479
|
|
Gain on disposals of assets,
net
|
(2,894)
|
|
(1,909)
|
|
Operating expenses
|
231,783
|
|
239,098
|
|
Operating income
|
75,348
|
|
106,960
|
|
Other income
(expense):
|
|
|
|
|
Miscellaneous income,
net
|
3
|
|
44
|
|
Interest
expense
|
(61,777)
|
|
(70,045)
|
|
Loss on early
extinguishment of debt
|
-
|
|
(349)
|
|
Income before income
taxes
|
13,574
|
|
36,610
|
|
Income tax expense
|
4,539
|
|
13,447
|
|
Net income
|
9,035
|
|
23,163
|
|
Preferred stock dividends
(includes accretion of
|
|
|
|
|
issuance cost of $1,045
and $4,489, respectively)
|
7,240
|
|
14,582
|
|
Net income available to common
stockholders
|
$ 1,795
|
|
$ 8,581
|
|
|
|
|
|
|
Basic per share
information:
|
|
|
|
|
Net income available to
common stockholders
|
$
0.03
|
|
$
0.16
|
|
Weighted-average shares
outstanding
|
57,117
|
|
54,322
|
|
|
|
|
|
|
Diluted per share
information:
|
|
|
|
|
Net income available to
common stockholders
|
$
0.03
|
|
$
0.16
|
|
Weighted-average shares
outstanding
|
57,118
|
|
54,324
|
|
|
|
|
|
|
Political advertising revenue
(less agency commissions)
|
$ 13,491
|
|
$ 57,552
|
|
|
|
|
|
Other Financial Data:
|
December 31,
2011
|
|
December 31,
2010
|
|
|
(in
thousands)
|
|
|
|
|
|
|
Cash
|
$
5,190
|
|
$
5,431
|
|
Long-term debt, including
current portion
|
$
832,233
|
|
$
826,704
|
|
Preferred stock (1)
|
$
24,841
|
|
$
37,181
|
|
Borrowing availability under our
senior credit facility
|
$
31,000
|
|
$
40,000
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
|
2011
|
|
2010
|
|
|
(in
thousands)
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
$
38,173
|
|
$
38,126
|
|
Net cash used in investing
activities
|
(21,869)
|
|
(19,506)
|
|
Net cash used in financing
activities
|
(16,545)
|
|
(29,189)
|
|
Net decrease in cash
|
$
(241)
|
|
$
(10,569)
|
|
|
|
|
|
(1) As of December 31,
2011, preferred stock does not include unaccreted original
issuance costs and accrued preferred stock dividends of
$1.1 million and $13.7 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.
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 period and year ended
December 31, 2011 compared to the
three-month period and year ended December
31, 2010 is as follows:
Gray
Websites - Aggregate Page Views
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
|
(in
millions, except percentages)
|
|
|
|
|
|
|
|
|
Advertising impressions
generated
|
880.5
|
|
735.1
|
|
20 %
|
|
Total page views (including
mobile page views)
|
288.2
|
|
223.7
|
|
29 %
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
|
(in
millions, except percentages)
|
|
|
|
|
|
|
|
|
Advertising impressions
generated
|
3,326.2
|
|
2,639.9
|
|
26 %
|
|
Total page views (including
mobile page views)
|
1,105.9
|
|
847.2
|
|
31 %
|
|
|
|
|
|
|
|
Guidance for the First Quarter of 2012:
We anticipate that our revenue and certain operating expenses
for the three-month period ending March 31,
2012 (the "first quarter of 2012") will approximate the
ranges presented in the table below.
|
|
2012
|
|
% Change
|
|
2012
|
|
% Change
|
|
|
|
|
|
Guidance
|
|
From
|
|
Guidance
|
|
From
|
|
|
|
|
|
Low
|
|
Actual
|
|
High
|
|
Actual
|
|
Actual
|
|
Selected operating
data:
|
|
Range
|
|
2011
|
|
Range
|
|
2011
|
|
2011
|
|
|
|
(dollars in
thousands)
|
|
OPERATING REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (less agency
commissions)
|
|
$ 76,750
|
|
10 %
|
|
$ 77,750
|
|
11 %
|
|
$ 69,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
(before depreciation,
amortization and
|
|
|
|
|
|
|
|
|
|
|
|
gain on disposal of
assets):
|
|
|
|
|
|
|
|
|
|
|
|
Broadcast
|
|
$ 50,500
|
|
5 %
|
|
$ 51,000
|
|
6 %
|
|
$ 48,179
|
|
Corporate and
administrative
|
|
$ 3,400
|
|
12 %
|
|
$ 3,500
|
|
15 %
|
|
$ 3,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER SELECTED DATA:
|
|
|
|
|
|
|
|
|
|
|
|
Political advertising
revenues
|
|
|
|
|
|
|
|
|
|
|
|
(less agency
commissions)
|
|
$ 3,500
|
|
153 %
|
|
$ 3,700
|
|
168 %
|
|
$ 1,381
|
|
|
|
|
|
|
|
|
|
|
|
|
Comments on Guidance:
Revenue.
Based on our current forecasts, we believe that our combined
first quarter of 2012 local, national and internet revenue,
excluding political revenue, will increase from the three-month
period ended March 31, 2011 (the
"first quarter of 2011") by approximately 4%. The anticipated
changes by revenue type are as follows:
- We anticipate our first quarter of 2012 internet revenue will
increase from the first quarter of 2011 by approximately 25% to
30%.
- We believe our first quarter of 2012 local revenue, excluding
political revenue, will increase from the first quarter of 2011 by
approximately 3% to 4%.
- We believe our first quarter of 2012 national revenue,
excluding political revenue, will be generally consistent with our
national revenue, excluding political revenue, earned in first
quarter of 2011.
We anticipate that our retransmission consent revenue during the
first quarter of 2012 will be approximately $8.4 million.
We estimate our base consulting revenue will remain at
$0.6 million for the first quarter of
2012. We have not included any incentive consulting revenue in our
estimate of revenue for the first quarter of 2012.
Operating expenses (before depreciation, amortization and
gain/loss on disposal of assets).
The anticipated increase in broadcast operating expense for the
first quarter 2012 compared to the first quarter of 2011 is
expected to be due primarily to increased employee pension and
healthcare expense. Our estimate of broadcast operating expense for
the first quarter of 2012 does not include any estimate for
possible increased expenses payable to NBC upon the anticipated
renewal of nine of our affiliation agreements in March 2012; at present we are unable to
reasonably estimate any such amount.
The anticipated increase in corporate operating expense for the
first quarter 2012 compared to the first quarter of 2011 is
expected to be due primarily to increased routine payroll and
related benefit expense and increased audience research
expense.
Net Revenue By Type:
The table below presents our net revenue by type for the
three-month periods and years ended December
31, 2011 and 2010, respectively (dollars in thousands):
|
|
Three Months
Ended December 31,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
Percent
|
|
|
|
Percent
|
|
|
|
Amount
|
|
of
Total
|
|
Amount
|
|
of
Total
|
|
Broadcasting net
revenues:
|
|
|
|
|
|
|
|
|
|
Local
|
|
$ 50,768
|
|
60.0%
|
|
$ 49,502
|
|
43.2%
|
|
National
|
|
16,146
|
|
19.1%
|
|
15,613
|
|
13.6%
|
|
Internet
|
|
5,756
|
|
6.8%
|
|
3,876
|
|
3.4%
|
|
Political
|
|
4,551
|
|
5.4%
|
|
33,139
|
|
28.9%
|
|
Retransmission
consent
|
|
4,963
|
|
5.9%
|
|
4,807
|
|
4.2%
|
|
Production and
other
|
|
1,762
|
|
2.1%
|
|
1,638
|
|
1.4%
|
|
Network
compensation
|
|
174
|
|
0.2%
|
|
173
|
|
0.2%
|
|
Consulting
|
|
550
|
|
0.5%
|
|
5,847
|
|
5.1%
|
|
Total
|
|
$ 84,670
|
|
100.0%
|
|
$ 114,595
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
Percent
|
|
|
|
Percent
|
|
|
|
Amount
|
|
of
Total
|
|
Amount
|
|
of
Total
|
|
Broadcasting net
revenues:
|
|
|
|
|
|
|
|
|
|
Local
|
|
$ 187,029
|
|
60.9%
|
|
$ 183,177
|
|
52.9%
|
|
National
|
|
56,335
|
|
18.3%
|
|
57,649
|
|
16.7%
|
|
Internet
|
|
20,081
|
|
6.5%
|
|
13,401
|
|
3.9%
|
|
Political
|
|
13,491
|
|
4.4%
|
|
57,552
|
|
16.6%
|
|
Retransmission
consent
|
|
20,227
|
|
6.6%
|
|
18,774
|
|
5.4%
|
|
Production and
other
|
|
7,070
|
|
2.3%
|
|
7,446
|
|
2.2%
|
|
Network
compensation
|
|
698
|
|
0.2%
|
|
562
|
|
0.2%
|
|
Consulting
|
|
2,200
|
|
0.8%
|
|
7,497
|
|
2.1%
|
|
Total
|
|
$ 307,131
|
|
100.0%
|
|
$ 346,058
|
|
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 fourth quarter
2011 operating results on February 24,
2012. The call will begin at 10:00 AM Eastern Time. The live dial-in
number is 1 (888) 437-9481 and the confirmation code is 9466368.
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: 9466368 until
March 23, 2012.
Reconciliations:
Reconciliation of net income to the non-GAAP terms (dollars in
thousands):
|
Three Months
Ended
|
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
Net income
|
$ 7,575
|
|
$ 21,864
|
|
|
|
Adjustments to reconcile
to Broadcast Cash Flow Less
|
|
|
|
|
|
|
Cash Corporate
Expenses:
|
|
|
|
|
|
|
Depreciation
|
6,017
|
|
7,229
|
|
|
|
Amortization of intangible
assets
|
28
|
|
117
|
|
|
|
Amortization of non-cash
stock based compensation
|
34
|
|
58
|
|
|
|
Gain on disposals of
assets, net
|
(1,020)
|
|
(1,300)
|
|
|
|
Miscellaneous income,
net
|
-
|
|
(1)
|
|
|
|
Interest
expense
|
15,269
|
|
16,332
|
|
|
|
Income tax
expense
|
3,748
|
|
14,039
|
|
|
|
Amortization of program
broadcast rights
|
2,796
|
|
3,972
|
|
|
|
Common stock contributed
to 401(k) plan
|
|
|
|
|
|
|
excluding corporate 401(k)
plan contributions
|
7
|
|
7
|
|
|
|
Network compensation
revenue recognized
|
(174)
|
|
(173)
|
|
|
|
Network compensation per
network affiliation agreement
|
(60)
|
|
(60)
|
|
|
|
Payments for program
broadcast rights
|
(3,463)
|
|
(3,883)
|
|
|
|
Broadcast Cash Flow Less Cash
Corporate Expenses
|
30,757
|
|
58,201
|
|
(47)%
|
|
Corporate and
administrative expenses excluding
|
|
|
|
|
|
|
amortization of non-cash
stock-based compensation
|
3,610
|
|
3,359
|
|
|
|
Broadcast Cash
Flow
|
$ 34,367
|
|
$ 61,560
|
|
(44)%
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
Net income
|
$ 9,035
|
|
$ 23,163
|
|
|
|
Adjustments to reconcile
to Broadcast Cash Flow Less
|
|
|
|
|
|
|
Cash Corporate
Expenses:
|
|
|
|
|
|
|
Depreciation
|
26,183
|
|
30,630
|
|
|
|
Amortization of intangible
assets
|
125
|
|
479
|
|
|
|
Amortization of non-cash
stock based compensation
|
136
|
|
332
|
|
|
|
Gain on disposals of
assets, net
|
(2,894)
|
|
(1,909)
|
|
|
|
Miscellaneous income,
net
|
(3)
|
|
(44)
|
|
|
|
Interest
expense
|
61,777
|
|
70,045
|
|
|
|
Loss on early
extinguishment of debt
|
-
|
|
349
|
|
|
|
Income tax
expense
|
4,539
|
|
13,447
|
|
|
|
Amortization of program
broadcast rights
|
13,484
|
|
15,410
|
|
|
|
Common stock contributed
to 401(k) plan
|
|
|
|
|
|
|
excluding corporate 401(k)
plan contributions
|
29
|
|
30
|
|
|
|
Network compensation
revenue recognized
|
(698)
|
|
(562)
|
|
|
|
Network compensation per
network affiliation agreement
|
(240)
|
|
(196)
|
|
|
|
Payments for program
broadcast rights
|
(15,915)
|
|
(15,473)
|
|
|
|
Broadcast Cash Flow Less Cash
Corporate Expenses
|
95,558
|
|
135,701
|
|
(30)%
|
|
Corporate and
administrative expenses excluding
|
|
|
|
|
|
|
amortization of non-cash
stock-based compensation
|
14,037
|
|
13,213
|
|
|
|
Broadcast Cash
Flow
|
$ 109,595
|
|
$ 148,914
|
|
(26)%
|
|
|
|
|
|
|
|
See the next page for the definition of Non-GAAP terms.
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 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 secondary 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 secondary channels that are affiliated with either ABC
(1 channel), FOX (4 channels), CW (8 channels), MyNetworkTV (18
channels), Untamed Sports Network (1 channel) 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 first quarter of 2012 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 February 24, 2012.
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.