News

Release – Gray Television Delivers Solid Second Quarter Operating Results

Media and Marketing
0 min read



Gray Television Delivers Solid Second Quarter Operating Results

Research, News, and Market Data on Gray Television

ATLANTA, Aug. 05, 2022 (GLOBE NEWSWIRE) — Gray
Television, Inc. (“Gray,” “we,” “us” or “our”) (NYSE: GTN) 
today announced its strong financial results for the second quarter ended June 30, 2022, including a 231% increase in net income attributable to common stockholders, compared to the second quarter of 2021. Overall, the second quarter of 2022 produced record results, including $868 million in total revenue, due to the combination of recent acquisitions, added scale, increasingly efficient integrated operations, and the “on-year” of the two-year political advertising cycle. We anticipate continued strong financial results for the remainder of the year, especially political advertising revenue. Based on our current forecasts, we now anticipate that our political advertising revenue for calendar year 2022 will match the $652 million of political advertising revenue that our current portfolio of stations recorded in 2020, a presidential election year.  

Gray’s strong cash flow in the second quarter of 2022 enabled us to return $125 million of capital to our shareholders during the second quarter by, paying down $54 million of outstanding debt; repurchasing $50 million of our common stock in the open market; and paying $21 million of cash dividends to our preferred and common shareholders. Even after these actions, Gray ended the quarter with $162 million of cash on hand. Strong operating results and political advertising revenue are expected to enable Gray to fund additional de-leveraging and cash dividend payments during the remainder of the year.

Due to the significant effect that material transactions have had on our results of our operations, we present the financial information herein consistent with both U.S. Generally Accepted Accounting Principles (“GAAP” or “As Reported Basis”) and on a Combined Historical Basis (“CHB”), which incorporates certain historical results of acquired businesses, less the historical results of divested businesses. We also furnish certain other detailed non-GAAP metrics to provide more meaningful period-over-period comparisons to assist the public in its analysis and valuation of the Company. This additional information includes a summary of incremental expenses that were specific to our acquisitions, divestitures, and related financing activities (“Transaction Related Expenses”), non-cash stock-based compensation expenses and certain non-GAAP terms common in our industry. Please refer to the detailed discussion of the foregoing terms and concepts included elsewhere herein.

Summary
of Second Quarter Operating Results

As Reported Basis (the respective 2021 periods reflect the “off-year” of the two-year political advertising cycle):

  • Total revenue was $868 million, an increase of 59% from the second quarter of 2021.
  • Net income attributable to common stockholders was $86 million, or $0.91 per fully diluted share, an increase of 231% from the second quarter of 2021.
  • Broadcast Cash Flow was $327 million, an increase of 79% from the second quarter of 2021.
  • Adjusted EBITDA was $309 million, an increase of 82% from the second quarter of 2021.

Combined Historical Basis (the respective 2021 periods reflect the “off-year” of the two year political advertising cycle):

  • Revenue was $868 million, an increase of 15% from the second quarter of 2021.
  • Core Advertising Revenue decreased less than 1% from the second quarter of 2021.
  • Broadcast Cash Flow was $330 million, an increase of 25% from the second quarter of 2021.

Other Key Metrics

  • As of June 30, 2022, our Total Leverage Ratio, Net of all Cash, was 5.16 times on a trailing eight-quarter basis, netting our total cash balance of $162 million and giving effect to all Transaction Related Expenses, which is calculated as set forth in our Senior Credit Facility.
  • During the three and six-months ended June 30, 2022 and 2021, we incurred Transaction Related Expenses on an As Reported Basis that included but were not limited to legal and professional fees, severance and incentive compensation and contract termination fees. In addition, we recorded certain non-cash stock-based compensation expenses. These expenses are summarized as follows:

 

Three
Months Ended

 

Six
Months Ended

 

June
30,

 

June
30,

 

2022

 

2021

 

2022

 

2021

 

(in millions)

Transaction Related Expenses:

 

 

 

 

 

 

 

Broadcasting

$

2

 

$

 

$

4

 

$

Corporate and administrative

 

7

 

1

 

8

Miscellaneous expense, net

 

7

 

 

7

Total Transaction Related Expenses

$

2

 

$

14

 

$

5

 

$

15

 

 

 

 

 

 

 

 

Total non-cash stock-based compensation

$

6

 

$

4

 

$

11

 

$

7

 

 

 

 

 

 

 

 

Taxes

  • During the six-months ended June 30, 2022 and 2021, we made income tax payments of $119 million and $38 million, respectively. During the remainder of 2022, based on our current forecasts, we anticipate making income tax payments (net of our expected $21 million refund) within a range of $70 million to $90 million.
  • As of June 30, 2022, we have an aggregate of $337 million of various state operating loss carryforwards, of which we expect that approximately half will be utilized.

FOX Network Affiliation Agreement Renewal

On August 4, 2022, we renewed the network affiliations for all of our FOX affiliated television stations across 27 markets, including Portland, Oregon; Cincinnati, Ohio; Greenville-Spartanburg, South Carolina; West Palm Beach, Florida; Las Vegas, Nevada; Birmingham, Alabama; and New Orleans, Louisiana.

Guidance
for the Three-Months Ending September 30, 2022

Based on our current forecasts for the quarter ending September 30, 2022, we anticipate the following key financial results, as outlined below in approximate ranges. We present revenue net of agency commissions. We exclude depreciation, amortization and gain/loss on disposal of assets from our estimates of operating expenses.

  • Revenue:
    • Core advertising revenue of $345 million to $355 million.
    • Retransmission revenue of $365 million to $370 million.
    • Political revenue of $193 million to $195 million.
    • Production company revenue of $20 million to $21 million.
    • Total revenue of $940 million to $959 million.
  • Operating Expenses:
    • Broadcasting expenses of $545 million to $550 million, including retransmission expense of approximately $225 million and transaction related expenses of approximately $1 million and non-cash stock-based compensation expense of approximately $1 million.
    • Production company expenses of approximately $17 million.
    • Corporate expenses of $30 million to $35 million, including transaction related expenses of approximately $1 million and non-cash stock-based compensation expense of approximately $5 million.

Selected
Operating Data on As Reported Basis (Unaudited)

 

 

 

 

 

Three
Months Ended June 30,

 

 

 

 

 

%
Change

 

 

 

 

%
Change

 

 

 

 

 

 

2022
to

 

 

 

 

2022
to

 

 

2022

 

2021

 

2021

 

 

2020

 

2020

 

 

(dollars in millions)

Revenue (less agency commissions):

 

 

 

 

 

 

 

 

 

 

 

Broadcasting

$

855

 

$

537

 

59

%

 

$

449

 

90

%

Production companies

13

 

10

 

30

%

 

2

 

550

%

Total revenue

$

868

 

$

547

 

59

%

 

$

451

 

92

%

 

 

 

 

 

 

 

 

 

 

 

 

Political advertising revenue

$

90

 

$

6

 

1400

%

 

$

21

 

329

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses (1):

 

 

 

 

 

 

 

 

 

 

 

Broadcasting

$

528

 

$

354

 

49

%

 

$

324

 

63

%

Production companies

$

14

 

$

9

 

56

%

 

$

5

 

180

%

Corporate and administrative

$

25

 

$

25

 

0

%

 

$

17

 

47

%

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

99

 

$

39

 

154

%

 

$

11

 

800

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP cash flow (2):

 

 

 

 

 

 

 

 

 

 

 

Broadcast Cash Flow

$

327

 

$

183

 

79

%

 

$

123

 

166

%

Broadcast Cash Flow Less

 

 

 

 

 

 

 

 

 

 

 

Cash Corporate Expenses

$

306

 

$

161

 

90

%

 

$

108

 

183

%

Free Cash Flow

$

38

 

$

34

 

12

%

 

$

35

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Six
Months Ended June 30,

 

 

 

 

 

%
Change

 

 

 

 

%
Change

 

 

 

 

 

 

2022
to

 

 

 

 

2022
to

 

 

2022

 

2021

 

2021

 

 

2020

 

2020

 

 

(dollars in millions)

Revenue (less agency commissions):

 

 

 

 

 

 

 

 

 

 

 

Broadcasting

$

1,659

 

$

1,067

 

55

%

 

$

964

 

72

%

Production companies

36

 

24

 

50

%

 

21

 

71

%

Total revenue

$

1,695

 

$

1,091

 

55

%

 

$

985

 

72

%

 

 

 

 

 

 

 

 

 

 

 

 

Political advertising revenue

$

116

 

$

15

 

673

%

 

$

57

 

104

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses (1):

 

 

 

 

 

 

 

 

 

 

 

Broadcasting

$

1,058

 

$

715

 

48

%

 

$

659

 

61

%

Production companies

$

40

 

$

26

 

54

%

 

$

24

 

67

%

Corporate and administrative

$

53

 

$

43

 

23

%

 

$

32

 

66

%

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

161

 

$

78

 

106

%

 

$

64

 

152

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP cash flow (2):

 

 

 

 

 

 

 

 

 

 

 

Broadcast Cash Flow

$

598

 

$

351

 

70

%

 

$

304

 

97

%

Broadcast Cash Flow Less

 

 

 

 

 

 

 

 

 

 

 

Cash Corporate Expenses

$

554

 

$

314

 

76

%

 

$

276

 

101

%

Free Cash Flow

$

177

 

$

112

 

58

%

 

$

120

 

48

%

(1)   Excludes depreciation, amortization and gain on disposal of assets.
(2)   See definition of non-GAAP terms and a reconciliation of the non-GAAP amounts to net income included elsewhere herein.

Selected
Operating Data on As Reported Basis (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three
Months Ended June 30,

 

2022

 

 

2021

 

 

Amount

 

Percent

 

 

 

 

Percent

 

 

 

 

Percent

 

 

Increase

 

Increase

 

 

Amount

 

of
Total

 

 

Amount

 

of
Total

 

 

(Decrease)

 

(Decrease)

 

 

(dollars
in millions)

Revenue (less agency commissions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core advertising

$

366

 

42

%

 

$

279

 

51

%

 

$

87

 

31

%

Political

90

 

10

%

 

6

 

1

%

 

84

 

1400

%

Retransmission consent

382

 

44

%

 

242

 

44

%

 

140

 

58

%

Production companies

13

 

1

%

 

10

 

2

%

 

3

 

30

%

Other

17

 

3

%

 

10

 

2

%

 

7

 

70

%

Total

$

868

 

100

%

 

$

547

 

100

%

 

$

321

 

59

%

 

Operating expenses (before

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

depreciation, amortization and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

gain on disposal of assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadcasting:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Station expenses

$

300

 

57

%

 

$

209

 

59

%

 

$

91

 

 

44

%

Retransmission expense

225

 

43

%

 

144

 

41

%

 

81

 

 

56

%

Transaction Related Expenses

2

 

0

%

 

 

0

%

 

2

 

 

100

%

Non-cash stock-based

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

compensation

1

 

0

%

 

1

 

0

%

 

 

 

0

%

Total broadcasting expense

$

528

 

100

%

 

$

354

 

100

%

 

$

174

 

 

49

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production companies expense

$

14

 

 

 

 

$

9

 

 

 

 

$

5

 

 

56

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses

$

20

 

80

%

 

$

15

 

60

%

 

$

5

 

 

33

%

Transaction Related Expenses

 

0

%

 

7

 

28

%

 

(7

)

 

(100

)%

Non-cash stock-based compensation

5

 

20

%

 

3

 

12

%

 

2

 

 

67

%

Total corporate and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative expense

$

25

 

100

%

 

$

25

 

100

%

 

$            –

 

 

0

%

 

Selected
Operating Data on As Reported Basis (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six
Months Ended June 30,

 

2022

 

 

2021

 

 

Amount

 

Percent

 

 

 

 

Percent

 

 

 

 

Percent

 

 

Increase

 

Increase

 

 

Amount

 

of
Total

 

 

Amount

 

of
Total

 

 

(Decrease)

 

(Decrease)

 

 

(dollars in millions)

Revenue (less agency commissions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core advertising

$

731

 

43

%

 

$

539

 

49

%

 

$

192

 

36

%

Political

116

 

7

%

 

15

 

1

%

 

101

 

673

%

Retransmission consent

775

 

46

%

 

489

 

45

%

 

286

 

58

%

Production companies

36

 

2

%

 

24

 

2

%

 

12

 

50

%

Other

37

 

2

%

 

24

 

3

%

 

13

 

54

%

Total

$

1,695

 

100

%

 

$

1,091

 

100

%

 

$

604

 

55

%

 

Operating expenses (before

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

depreciation, amortization and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

gain on disposal of assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadcasting:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Station expenses

$

600

 

57

%

 

$

425

 

60

%

 

$

175

 

 

41

%

Retransmission expense

452

 

43

%

 

289

 

40

%

 

163

 

 

56

%

Transaction Related Expenses

4

 

0

%

 

 

0

%

 

4

 

 

100

%

Non-cash stock-based

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

compensation

2

 

0

%

 

1

 

0

%

 

1

 

 

100

%

Total broadcasting expense

$

1,058

 

100

%

 

$

715

 

100

%

 

$

343

 

 

48

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production companies expense

$

40

 

 

 

 

$

26

 

 

 

 

$

14

 

 

54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses

$

43

 

81

%

 

$

29

 

67

%

 

$

14

 

 

48

%

Transaction Related Expenses

1

 

2

%

 

8

 

19

%

 

(7

)

 

(88

)%

Non-cash stock-based

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

compensation

9

 

17

%

 

6

 

14

%

 

3

 

 

50

%

Total corporate and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative expense

$

53

 

100

%

 

$

43

 

100

%

 

$

10

 

 

23

%

 

Detail
Table of Operating Results on As Reported Basis (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three
Months Ended

 

Six
Months Ended

 

June
30,

 

June
30,

 

2022

 

2021

 

2022

 

2021

 

(in millions, except for per share information)

Revenue (less agency commissions):

 

 

 

 

 

 

 

 

 

 

 

Broadcasting

$

855

 

 

$

537

 

 

$

1,659

 

 

$

1,067

 

Production companies

13

 

 

10

 

 

36

 

 

24

 

Total revenue (less agency commissions)

868

 

 

547

 

 

1,695

 

 

1,091

 

Operating expenses before depreciation, amortization

 

 

 

 

 

 

 

 

 

 

 

and gain on disposal of assets, net:

 

 

 

 

 

 

 

 

 

 

 

Broadcasting

528

 

 

354

 

 

1,058

 

 

715

 

Production companies

14

 

 

9

 

 

40

 

 

26

 

Corporate and administrative

25

 

 

25

 

 

53

 

 

43

 

Depreciation

31

 

 

25

 

 

63

 

 

50

 

Amortization of intangible assets

52

 

 

27

 

 

104

 

 

53

 

Gain on disposal of assets, net

 

 

(1

)

 

(5

)

 

(5

)

Operating expenses

650

 

 

439

 

 

1,313

 

 

882

 

Operating income

218

 

 

108

 

 

382

 

 

209

 

Other expense:

 

 

 

 

 

 

 

 

 

 

 

Miscellaneous expense, net

 

 

(7

)

 

(2

)

 

(6

)

Interest expense

(81

)

 

(47

)

 

(160

)

 

(95

)

Income before income taxes

137

 

 

54

 

 

220

 

 

108

 

Income tax expense

38

 

 

15

 

 

59

 

 

30

 

Net income

99

 

 

39

 

 

161

 

 

78

 

Preferred stock dividends

13

 

 

13

 

 

26

 

 

26

 

Net income attributable to common stockholders

$

86

 

 

$

26

 

 

$

135

 

 

$

52

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic per share information:

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common stockholders

$

0.92

 

 

$

0.27

 

 

$

1.45

 

 

$

0.55

 

Weighted-average shares outstanding

93

 

 

95

 

 

93

 

 

94

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted per share information:

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common stockholders

$

0.91

 

 

$

0.27

 

 

$

1.44

 

 

$

0.55

 

Weighted-average shares outstanding

94

 

 

95

 

 

94

 

 

95

 

 

Selected
Operating Data on Combined Historical Basis (Unaudited)

 

 

 

 

 

Three
Months Ended June 30,

 

 

 

 

 

%
Change

 

 

 

 

%
Change

 

 

 

 

 

 

2022
to

 

 

 

 

2022
to

 

 

2022

 

2021

 

2021

 

 

2020

 

2020

 

 

(dollars in millions)

Revenue (less agency commissions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadcast

$

855

 

$

744

 

15

%

 

$

626

 

37

%

Production companies

13

 

10

 

30

%

 

$

2

 

550

%

Total

$

868

 

$

754

 

15

%

 

$

628

 

38

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses (1):

 

 

 

 

 

 

 

 

 

 

 

Broadcast

$

528

 

$

499

 

6

%

 

$

455

 

16

%

Production companies

$

14

 

$

9

 

56

%

 

$

5

 

180

%

Corporate and administrative

$

25

 

$

25

 

0

%

 

$

17

 

47

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP cash flow (2):

 

 

 

 

 

 

 

 

 

 

 

Broadcast Cash Flow

$

330

 

$

264

 

25

%

 

$

186

 

77

%

Broadcast Cash Flow Less Cash

 

 

 

 

 

 

 

 

 

 

 

Corporate Expenses

$

309

 

$

242

 

28

%

 

$

171

 

81

%

Operating Cash Flow as defined in

 

 

 

 

 

 

 

 

 

 

 

the 2019 Senior Credit Facility

$

310

 

$

249

 

24

%

 

$

171

 

81

%

Free Cash Flow

$

43

 

$

75

 

(43

)%

 

$

57

 

(25

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Six
Months Ended June 30,

 

 

 

 

 

%
Change

 

 

 

 

%
Change

 

 

 

 

 

 

2022
to

 

 

 

 

2022
to

 

 

2022

 

2021

 

2021

 

 

2020

 

2020

 

 

(dollars in millions)

Revenue (less agency commissions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadcast

$

1,659

 

$

1,483

 

12

%

 

$

1,351

 

23

%

Production companies

36

 

24

 

50

%

 

$

21

 

71

%

Total

$

1,695

 

$

1,507

 

12

%

 

$

1,372

 

24

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses (1):

 

 

 

 

 

 

 

 

 

 

 

Broadcast

$

1,058

 

$

1,004

 

5

%

 

$

932

 

14

%

Production companies

$

40

 

$

26

 

54

%

 

$

24

 

67

%

Corporate and administrative

$

53

 

$

44

 

20

%

 

$

32

 

66

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP cash flow (2):

 

 

 

 

 

 

 

 

 

 

 

Broadcast Cash Flow

$

602

 

$

517

 

16

%

 

$

454

 

33

%

Broadcast Cash Flow Less Cash

 

 

 

 

 

 

 

 

 

 

 

Corporate Expenses

$

558

 

$

480

 

16

%

 

$

426

 

31

%

Operating Cash Flow as defined in

 

 

 

 

 

 

 

 

 

 

 

the 2019 Senior Credit Facility

$

561

 

$

488

 

15

%

 

$

426

 

32

%

Free Cash Flow

$

186

 

$

194

 

(4

)%

 

$

192

 

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

(1)   Excludes depreciation, amortization and gain on disposal of assets.
(2)   See definition of non-GAAP terms and a reconciliation of the non-GAAP amounts to net income included elsewhere herein.

Selected
Operating Data on Combined Historical Basis (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three
Months Ended June 30,

 

2022

 

 

2021

 

 

Amount

 

 

Percent

 

 

 

 

Percent

 

 

 

 

Percent

 

 

Increase

 

 

Increase

 

 

Amount

 

of
Total

 

 

Amount

 

of
Total

 

 

(Decrease)

 

 

(Decrease)

 

 

(dollars in millions)

Revenue (less agency commissions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core advertising

$

366

 

42

%

 

$

369

 

49

%

 

$

(3

)

 

(1

)%

Political

90

 

10

%

 

8

 

1

%

 

82

 

 

1025

%

Retransmission consent

382

 

44

%

 

351

 

47

%

 

31

 

 

9

%

Production companies

13

 

1

%

 

10

 

1

%

 

3

 

 

30

%

Other

17

 

3

%

 

16

 

2

%

 

1

 

 

6

%

Total

$

868

 

100

%

 

$

754

 

100

%

 

$

114

 

 

15

%

 

Operating expenses (before

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

depreciation, amortization and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

gain on disposal of assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadcasting:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Station expenses

$

300

 

57

%

 

$

291

 

58

%

 

$

9

 

 

3

%

Retransmission expense

225

 

43

%

 

207

 

42

%

 

18

 

 

9

%

Transaction Related Expenses

2

 

0

%

 

 

0

%

 

2

 

 

100

%

Non-cash stock-based

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

compensation

1

 

0

%

 

1

 

0

%

 

 

 

0

%

Total broadcasting expense

$

528

 

100

%

 

$

499

 

100

%

 

$

29

 

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production companies expense

$

14

 

 

 

 

$

9

 

 

 

 

$

5

 

 

56

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses

$

20

 

80

%

 

$

15

 

60

%

 

$

5

 

 

33

%

Transaction Related Expenses

 

0

%

 

7

 

28

%

 

(7

)

 

(100

)%

Non-cash stock-based

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

compensation

5

 

20

%

 

3

 

12

%

 

2

 

 

67

%

Total corporate and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative expense

$

25

 

100

%

 

$

25

 

100

%

 

$            –

 

 

0

%

 

Selected
Operating Data on Combined Historical Basis (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six
Months Ended June 30,

 

2022

 

 

2021

 

 

Amount

 

Percent

 

 

 

 

Percent

 

 

 

 

Percent

 

 

Increase

 

Increase

 

 

Amount

 

of
Total

 

 

Amount

 

of
Total

 

 

(Decrease)

 

(Decrease)

 

 

(dollars in millions)

Revenue (less agency commissions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core advertising

$

731

 

43

%

 

$

720

 

48

%

 

$

11

 

2

%

Political

116

 

7

%

 

21

 

1

%

 

95

 

452

%

Retransmission consent

775

 

46

%

 

707

 

47

%

 

68

 

10

%

Production companies

36

 

2

%

 

24

 

2

%

 

12

 

50

%

Other

37

 

2

%

 

35

 

2

%

 

2

 

6

%

Total

$

1,695

 

100

%

 

$

1,507

 

100

%

 

$

188

 

12

%

 

Operating expenses (before

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

depreciation, amortization and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

gain on disposal of assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadcasting:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Station expenses

$

601

 

57

%

 

$

586

 

58

%

 

$

15

 

 

3

%

Retransmission expense

451

 

43

%

 

416

 

42

%

 

35

 

 

8

%

Transaction Related Expenses

4

 

0

%

 

 

0

%

 

4

 

 

100

%

Non-cash stock-based compensation

2

 

0

%

 

2

 

0

%

 

 

 

0

%

Total broadcasting expense

$

1,058

 

100

%

 

$

1,004

 

100

%

 

$

54

 

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production companies expense

$

40

 

 

 

 

$

26

 

 

 

 

$

14

 

 

54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses

$

43

 

81

%

 

$

30

 

68

%

 

$

13

 

 

43

%

Transaction Related Expenses

1

 

2

%

 

8

 

18

%

 

(7

)

 

(88

)%

Non-cash stock-based compensation

9

 

17

%

 

6

 

14

%

 

3

 

 

50

%

Total corporate and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative expense

$

53

 

100

%

 

$

44

 

100

%

 

$

9

 

 

20

%

 

Other
Financial Data on As Reported Basis (Unaudited)

 

 

 

 

 

 

 

Six
Months Ended June 30,

 

2022

 

2021

 

(in millions)

 

 

 

 

 

 

Net cash provided by operating activities

$

330

 

 

$

238

 

Net cash used in investing activities

(201

)

 

(177

)

Net cash used in financing activities

(156

)

 

(49

)

Net (decrease) increase in cash

$

(27

)

 

$

12

 

 

 

 

 

 

 

 

As
of

 

June
30,

 

December
31,

 

2022

 

2021

 

(in millions)

 

 

 

 

 

 

Cash

$

162

 

 

$

189

 

Long-term debt, including current portion, less deferred

 

 

 

 

 

financing costs

$

6,705

 

 

$

6,755

 

Series A Perpetual Preferred Stock

$

650

 

 

$

650

 

Borrowing availability under Revolving Credit Facility

$

496

 

 

$

497

 

The Company

We are a multimedia company headquartered in Atlanta, Georgia. We are the nation’s largest owner of top-rated local television stations and digital assets in the United States. Our television stations serve 113 television markets that collectively reach approximately 36 percent of US television households.  This portfolio includes 80 markets with the top-rated television station and 100 markets with the first and/or second highest rated television station. We also own video program companies Raycom Sports, Tupelo Media Group (formerly Tupelo Honey), PowerNation Studios, as well as the studio production facilities Assembly Atlanta and Third Rail Studios.

Cautionary Statements for Purposes of the “Safe Harbor”
Provisions of the Private Securities Litigation Reform Act

This press release contains certain forward-looking statements that are based largely on our current expectations and reflect various estimates and assumptions by us. These statements are statements other than those of historical fact and may be identified by words such as “estimates,” “expect,” “anticipate,” “will,” “implied,” “assume” and similar expressions. Forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in such forward-looking statements. Such risks, trends and uncertainties, which in some instances are beyond our control, include our inability to achieve expected synergies from recent transactions on a timely basis or at all, the impact of recently completed transactions, estimates of future revenue, future expenses and other future events. We are subject to additional risks and uncertainties described in our quarterly and annual reports filed with the Securities and Exchange Commission from time to time, including in the “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections contained therein, which reports are made publicly available via our website, www.gray.tv. Any forward-looking statements in this press release should be evaluated in light of these important risk factors. This press release reflects management’s views as of the date hereof. Except to the extent required by applicable law, Gray undertakes no obligation to update or revise any information contained in this press release beyond the published date, whether as a result of new information, future events or otherwise. 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, 2021, and may be contained in reports subsequently filed with the U.S. Securities and Exchange Commission and available at www.sec.gov.

Conference Call Information

We will host a conference call to discuss our second quarter operating results on August 5, 2022. The call will begin at 11:00 AM Eastern Time. The live dial-in number is 1-800-289-0720 and the confirmation code is 7144937. 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 and the confirmation code is 7144937, until September 4, 2022.

Gray Contacts

Web site: www.gray.tv

Hilton H. Howell, Jr., Executive Chairman and Chief Executive Officer, (404) 266-5513

Pat LaPlatney, President and Co-Chief Executive Officer, (334) 206-1400

Jim Ryan, Executive Vice President and Chief Financial Officer, (404) 504-9828

Kevin P. Latek, Executive Vice President, Chief Legal and Development Officer, (404) 266-8333

Effects
of Acquisitions and Divestitures on Our Results of Operations
and Non-GAAP Terms

From January 1, 2020 through December 31, 2021, we completed several acquisition and divestiture transactions. As more fully described in our Form 10-Q to be filed with the Securities and Exchange Commission today and in our prior disclosures, these transactions materially affected our operations. We refer to all television stations acquired or divested from January 1, 2020 through December 31, 2021, as the “Acquisitions”.

Due to the significant effect that the Acquisitions have had on our results of operations, and in order to provide more meaningful period over period comparisons, we present herein certain financial information on a Combined Historical Basis (or “CHB”). Combined Historical Basis financial information does not include any adjustments for other events attributable to the Acquisitions unless otherwise described. Certain of the Combined Historical Basis financial information has been derived from, and adjusted based on unaudited, unreviewed financial information prepared by other entities, which Gray cannot independently verify. We cannot assure you that such financial information would not be materially different if such information were audited or reviewed and no assurances can be provided as to the accuracy of such information, or that our actual results would not differ materially from the Combined Historical Basis financial information if the Acquisitions had been completed at the stated date. In addition, the presentation of Combined Historical Basis may not comply with United Stated Generally Accepted Accounting Principles (“GAAP”) or the requirements for proforma financial information under Regulation S-X under the Securities Act.

From time to time, we supplement our financial results prepared in accordance with GAAP by disclosing the non-GAAP financial measures Broadcast Cash Flow, Broadcast Cash Flow Less Cash Corporate Expenses, Operating Cash Flow as defined in the Senior Credit Agreement, Free Cash Flow, Adjusted EBITDA and Total Leverage Ratio, Net of All Cash. These non-GAAP amounts are used by us to approximate amounts used to calculate key financial performance covenants contained in our debt agreements and are used with our GAAP data to evaluate our results and liquidity.

We define Broadcast Cash Flow as net income or loss plus loss on early extinguishment of debt, non-cash corporate and administrative expenses, non-cash stock-based compensation, depreciation and amortization (including amortization of intangible assets and program broadcast rights), any loss on disposal of assets, any miscellaneous expense, interest expense, any income tax expense, non-cash 401(k) expense, Broadcast Transactions Related Expenses and broadcast other adjustments less any gain on disposal of assets, any miscellaneous income, any income tax benefits and payments for program broadcast rights.

We define Broadcast Cash Flow Less Cash Corporate Expenses as net income or loss plus loss on early extinguishment of debt, non-cash stock-based compensation, depreciation and amortization (including amortization of intangible assets and program broadcast rights), any loss on disposal of assets, any miscellaneous expense, interest expense, any income tax expense, non-cash 401(k) expense, Transaction Related Expenses and other adjustments less any gain on disposal of assets, any miscellaneous income, any income tax benefits and payments for program broadcast rights.

We define Operating Cash Flow as defined in our Senior Credit Agreement as net income or loss plus loss on early extinguishment of debt, non-cash stock-based compensation, depreciation and amortization (including amortization of intangible assets and program broadcast rights), any loss on disposal of assets, any miscellaneous expense, interest expense, any income tax expense, non-cash 401(k) expense, Transaction Related Expenses, other adjustments, certain pension expenses, synergies and other adjustments less any gain on disposal of assets, any miscellaneous income, any income tax benefits, payments for program broadcast rights, pension income and contributions to pension plans.

Operating Cash Flow as defined in our Senior Credit Agreement gives effect to the revenue and broadcast expenses of all completed acquisitions and divestitures as if they had been acquired or divested, respectively, on July 1, 2020. It also gives effect to certain operating synergies expected from the acquisitions and related financings and adds back professional fees incurred in completing the acquisitions. Certain of the financial information related to the acquisitions has been derived from, and adjusted based on, unaudited, un-reviewed financial information prepared by other entities, which Gray cannot independently verify. We cannot assure you that such financial information would not be materially different if such information were audited or reviewed and no assurances can be provided as to the accuracy of such information, or that our actual results would not differ materially from this financial information if the acquisitions had been completed on the stated date. In addition, the presentation of Operating Cash Flow as defined in the Senior Credit Agreement and the adjustments to such information, including expected synergies resulting from such transactions, may not comply with GAAP or the requirements for pro forma financial information under Regulation S-X under the Securities Act of 1933.

We define Free Cash Flow as net income or loss, plus loss on early extinguishment of debt, non-cash stock-based compensation, depreciation and amortization (including amortization of intangible assets and program broadcast rights), any loss on disposal of assets, any miscellaneous expense, any income tax expense, non-cash 401(k) expense, Transactions Related Expenses, broadcast other adjustments, certain pension expenses, synergies, other adjustments and amortization of deferred financing costs less any gain on disposal of assets, any miscellaneous income, any income tax benefits, payments for program broadcast rights, pension income, contributions to pension plans, preferred dividends, purchase of property and equipment (net of reimbursements and certain defined purchases) and income taxes paid (net of any refunds received and certain defined payments).

We define Adjusted EBITDA as net income or loss, plus loss on early extinguishment of debt, non-cash stock-based compensation, depreciation and amortization of intangible assets, any loss on disposal of assets, any miscellaneous expense, interest expense, any income tax expense, non-cash 401(k) expense, Transaction Related Expenses less any gain on disposal of assets, any miscellaneous income and any income tax benefits.

Our Total Leverage Ratio, Net of All Cash is determined by dividing our Adjusted Total Indebtedness, Net of All Cash, by our Operating Cash Flow as defined in our Senior Credit Agreement, divided by two. Our Adjusted Total Indebtedness, Net of All Cash, represents the total outstanding principal of our long-term debt, plus certain other obligations as defined in our Senior Credit Agreement, less all cash (excluding restricted cash). Our Operating Cash Flow, as defined in our Senior Credit Agreement, divided by two, represents our average annual Operating Cash Flow as defined in our Senior Credit Agreement for the preceding eight quarters.

We define Transaction Related Expenses as incremental expenses incurred specific to acquisitions and divestitures, including but not limited to legal and professional fees, severance and incentive compensation, and contract termination fees. We present certain line items from our selected operating data, net of Transaction Related Expenses, in order to present a more meaningful comparison between periods of our operating expenses and our results of operations.

These non-GAAP terms are not defined in GAAP and our definitions may differ from, and therefore may 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 and cash flows reported in accordance with GAAP.

Reconciliation
of Non-GAAP Terms on As Reported Basis:

 

 

Three
Months Ended June 30,

 

2022

 

2021

 

2020

 

(in millions)

 

 

 

 

 

 

 

 

 

Net income

$

            99

 

 

$

            39

 

 

$

         11

 

Adjustments to reconcile from net income to

 

 

 

 

 

 

 

 

  Free Cash Flow:

 

 

 

 

 

 

 

 

Depreciation

              31

 

 

              25

 

 

           21

 

Amortization of intangible assets

              52

 

 

              27

 

 

           26

 

Non-cash stock-based compensation

               6

 

 

               3

 

 

             3

 

Gain on disposal of assets, net

                –

 

 

              (1

)

 

           (7

)

Miscellaneous expense, net

                –

 

 

               7

 

 

             2

 

Interest expense

              81

 

 

              47

 

 

           46

 

Income tax expense

              38

 

 

              15

 

 

             6

 

Amortization of program broadcast rights

              12

 

 

               8

 

 

           10

 

Payments for program broadcast rights

            (13

)

 

              (9

)

 

          (10

)

Corporate and administrative expenses before

 

 

 

 

 

 

 

 

depreciation, amortization of intangible assets and

 

 

 

 

 

 

 

 

non-cash stock-based compensation

              21

 

 

              22

 

 

           15

 

Broadcast Cash Flow

          
327

 

 

          
183

 

 

        
123

 

Corporate and administrative expenses before

 

 

 

 

 

 

 

 

depreciation, amortization of intangible assets and

 

 

 

 

 

 

 

 

non-cash stock-based compensation

            (21

)

 

            (22

)

 

          (15

)

Broadcast Cash Flow Less Cash
Corporate Expenses

          
306

 

 

          
161

 

 

        
108

 

Pension benefit

              (1

)

 

                –

 

 

             –

 

Interest expense

            (81

)

 

            (47

)

 

          (46

)

Amortization of deferred financing costs

               4

 

 

               3

 

 

             3

 

Preferred stock dividends

            (13

)

 

            (13

)

 

          (13

)

Common stock dividends

              (8

)

 

              (7

)

 

             –

 

Purchases of property and equipment (1)

            (50

)

 

            (28

)

 

          (24

)

Reimbursements of property and equipment purchases

                –

 

 

               3

 

 

             8

 

Income taxes paid, net of refunds

          (119

)

 

            (38

)

 

           (1

)

Free Cash Flow

$

          
38

 

 

$

          
34

 

 

$

      
  35

 

(1)   Excludes approximately $62 million and $80 million related to the Assembly Atlanta project in 2022 and 2021, respectively.

Reconciliation
of Non-GAAP Terms on As Reported Basis:

 

 

Six
Months Ended June 30,

 

2022

 

2021

 

2020

 

(in millions)

 

 

 

 

 

 

 

 

 

Net income

$

161

 

 

$

78

 

 

$

64

 

Adjustments to reconcile from net income to

 

 

 

 

 

 

 

 

Free Cash Flow:

 

 

 

 

 

 

 

 

Depreciation

63

 

 

50

 

 

42

 

Amortization of intangible assets

104

 

 

53

 

 

52

 

Non-cash stock-based compensation

11

 

 

7

 

 

7

 

Non-cash 401(k) expense

 

 

1

 

 

 

Gain on disposal of assets, net

(5

)

 

(5

)

 

(13

)

Miscellaneous expense, net

2

 

 

6

 

 

3

 

Interest expense

160

 

 

95

 

 

98

 

Income tax expense

59

 

 

30

 

 

24

 

Amortization of program broadcast rights

25

 

 

17

 

 

19

 

Payments for program broadcast rights

(26

)

 

(18

)

 

(20

)

Corporate and administrative expenses before

 

 

 

 

 

 

 

 

depreciation, amortization of intangible assets and

 

 

 

 

 

 

 

 

non-cash stock-based compensation

44

 

 

37

 

 

28

 

Broadcast Cash Flow

          
598

 

 

        
351

 

 

            
304

 

Corporate and administrative expenses before

 

 

 

 

 

 

 

 

depreciation, amortization of intangible assets and

 

 

 

 

 

 

 

 

non-cash stock-based compensation

(44

)

 

(37

)

 

(28

)

Broadcast Cash Flow Less Cash
Corporate Expenses

          
554

 

 

    
    314

 

 

            
276

 

Pension benefit

(2

)

 

 

 

 

Interest expense

(160

)

 

(95

)

 

(98

)

Amortization of deferred financing costs

8

 

 

6

 

 

6

 

Preferred stock dividends

(26

)

 

(26

)

 

(26

)

Common stock dividends

(16

)

 

(15

)

 

 

Purchases of property and equipment (1)

(67

)

 

(41

)

 

(51

)

Reimbursements of property and equipment purchases

5

 

 

7

 

 

14

 

Income taxes paid, net of refunds

(119

)

 

(38

)

 

(1

)

Free Cash Flow

$

        
177

 

 

$

      
112

 

 

$

          
120

 

 

 

 

 

 

 

 

 

 

(1)   Excludes approximately $92 million and $80 million related to the Assembly Atlanta project in 2022 and 2021, respectively.

Reconciliation
of Non-GAAP Terms on Combined Historical Basis:

 

 

Three
Months Ended

 

June
30,

 

 2022

 

2021

 

2020

 

(in millions)

 

 

 

 

 

 

 

 

 

Net income

$

99

 

 

$

69

 

 

$

22

 

Adjustments to reconcile from net income to

 

 

 

 

 

 

 

 

Free Cash Flow:

 

 

 

 

 

 

 

 

Depreciation

31

 

 

32

 

 

30

 

Amortization of intangible assets

52

 

 

28

 

 

28

 

Non-cash stock-based compensation

6

 

 

4

 

 

4

 

Gain on disposals of assets, net

 

 

(3

)

 

(7

)

Miscellaneous expense, net

 

 

7

 

 

2

 

Interest expense

81

 

 

77

 

 

77

 

Income tax expense (benefit)

38

 

 

9

 

 

(2

)

Amortization of program broadcast rights

12

 

 

13

 

 

15

 

Payments for program broadcast rights

(13

)

 

(14

)

 

(15

)

Corporate and administrative expenses excluding

 

 

 

 

 

 

 

 

depreciation, amortization of intangible assets and

 

 

 

 

 

 

 

 

non-cash stock-based compensation

21

 

 

22

 

 

15

 

Broadcast Transaction Related Expenses

2

 

 

 

 

 

Broadcast other adjustments

1

 

 

20

 

 

17

 

Broadcast Cash Flow

          
330

 

 

          
264

 

 

          
186

 

Corporate and administrative expenses excluding

 

 

 

 

 

 

 

 

depreciation, amortization of intangible assets and

 

 

 

 

 

 

 

 

non-cash stock-based compensation

(21

)

 

(22

)

 

(15

)

Broadcast Cash Flow Less Cash
Corporate Expenses

          
309

 

 

          
242

 

 

          
171

 

Pension benefit

(1

)

 

 

 

 

Adjustments for unrestricted subsidiaries

2

 

 

 

 

 

Corporate Transaction Related Expenses

 

 

7

 

 

 

Operating Cash Flow as Defined in
Senior Credit Agreement

          
310

 

 

          
249

 

 

          
171

 

Interest expense

(81

)

 

(77

)

 

(77

)

Amortization of deferred financing costs

4

 

 

3

 

 

3

 

Preferred dividends

(13

)

 

(13

)

 

(13

)

Common stock dividends

(8

)

 

(7

)

 

 

Purchases of property and equipment (1)

(50

)

 

(32

)

 

(27

)

Reimbursements of property and equipment purchases

 

 

4

 

 

9

 

Income taxes paid, net of refunds

(119

)

 

(52

)

 

(9

)

Free Cash Flow

$

          
43

 

 

$

          
75

 

 

$

          
57

 

(1)   Excludes approximately $62 million and $80 million related to the Assembly Atlanta project in 2022 and 2021, respectively.

 

Reconciliation of Non-GAAP Terms on
Combined Historical Basis:

 

 

Six
Months Ended

 

June
30,

 

 2022

 

2021

 

2020

 

(in millions)

 

 

 

 

 

 

 

 

 

Net income

$

         161

 

 

$

         142

 

 

$

          91

 

Adjustments to reconcile from net income to

 

 

 

 

 

 

 

 

Free Cash Flow:

 

 

 

 

 

 

 

 

Depreciation

63

 

 

64

 

 

59

 

Amortization of intangible assets

104

 

 

56

 

 

57

 

Non-cash stock-based compensation

11

 

 

8

 

 

9

 

Non-cash 401(k) expense

 

 

1

 

 

 

Gain on disposals of assets, net

(5

)

 

(7

)

 

(16

)

Miscellaneous expense, net

2

 

 

6

 

 

25

 

Interest expense

160

 

 

155

 

 

155

 

Income tax expense

59

 

 

17

 

 

12

 

Amortization of program broadcast rights

25

 

 

27

 

 

29

 

Payments for program broadcast rights

(26

)

 

(29

)

 

(30

)

Corporate and administrative expenses excluding

 

 

 

 

 

 

 

 

depreciation, amortization of intangible assets and

 

 

 

 

 

 

 

 

non-cash stock-based compensation

44

 

 

37

 

 

28

 

Broadcast Transaction Related Expenses

4

 

 

 

 

 

Broadcast other adjustments

 

 

40

 

 

35

 

Broadcast Cash Flow

          
602

 

 

          
517

 

 

          
454

 

Corporate and administrative expenses excluding

 

 

 

 

 

 

 

 

depreciation, amortization of intangible assets and

 

 

 

 

 

 

 

 

non-cash stock-based compensation

(44

)

 

(37

)

 

(28

)

Broadcast Cash Flow Less Cash
Corporate Expenses

          
558

 

 

          
480

 

 

          
426

 

Pension benefit

(2

)

 

 

 

 

Adjustments for unrestricted subsidiaries

4

 

 

 

 

 

Corporate Transaction Related Expenses

1

 

 

8

 

 

 

Operating Cash Flow as defined in
Senior Credit Agreement

          
561

 

 

          
488

 

 

          
426

 

Interest expense

(160

)

 

(155

)

 

(155

)

Amortization of deferred financing costs

8

 

 

6

 

 

6

 

Preferred dividends

(26

)

 

(26

)

 

(26

)

Common stock dividends

(16

)

 

(15

)

 

 

Purchases of property and equipment (1)

(67

)

 

(47

)

 

(59

)

Reimbursements of property and equipment purchases

5

 

 

9

 

 

18

 

Income taxes paid, net of refunds

(119

)

 

(66

)

 

(18

)

Free Cash Flow

$

        
186

 

 

$

        
194

 

 

$

        
192

 

(1)   Excludes approximately $92 million and $80 million related to the Assembly Atlanta project in 2022 and 2021, respectively.

Reconciliation
of Net Income to Adjusted EBITDA and the Effect of Transaction Related
Expenses and Certain Non-Cash Expenses:

 

 

Three
Months Ended

 

Six
Months Ended

 

June
30,

 

June
30,

 

2022

 

2021

 

2022

 

2021

 

(in millions, except for per share information)

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

99

 

 

$

39

 

 

$

161

 

 

$

78

 

Adjustments to reconcile from net income to

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

Depreciation

31

 

 

25

 

 

63

 

 

50

 

Amortization of intangible assets

52

 

 

27

 

 

104

 

 

53

 

Non-cash stock-based compensation

6

 

 

4

 

 

11

 

 

7

 

Gain on disposal of assets, net

 

 

(1

)

 

(5

)

 

(5

)

Miscellaneous expense, net

 

 

7

 

 

2

 

 

6

 

Interest expense

81

 

 

47

 

 

160

 

 

95

 

Income tax expense

38

 

 

15

 

 

59

 

 

30

 

Total

307

 

 

163

 

 

555

 

 

314

 

Add: Transaction Related Expenses (1)

2

 

 

7

 

 

5

 

 

8

 

Adjusted EBITDA

$

       
309

 

 

$

      
170

 

 

$

      
560

 

 

$

      
322

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common stockholders

$

86

 

 

$

26

 

 

$

135

 

 

$

52

 

Add: Transaction Related Expenses and non-cash

 

 

 

 

 

 

 

 

 

 

 

stock-based compensation

8

 

 

18

 

 

16

 

 

22

 

Less: Income tax expense related to Transaction Related

 

 

 

 

 

 

 

 

 

 

 

Expenses and non-cash stock-based compensation

(2

)

 

(5

)

 

(4

)

 

(6

)

Net income attributable to common stockholders – excluding

 

 

 

 

 

 

 

 

 

 

 

Transaction Related Expenses and non-cash stock-based

 

 

 

 

 

 

 

 

 

 

 

compensation

$

92

 

 

$

39

 

 

$

147

 

 

$

68

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common stockholders common per share,

 

 

 

 

 

 

 

 

 

 

 

diluted – excluding Transaction Related Expenses and non-cash

 

 

 

 

 

 

 

 

 

 

 

stock-based compensation

$

0.98

 

 

$

0.41

 

 

$

1.56

 

 

$

0.72

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted-average common shares outstanding

94

 

 

95

 

 

94

 

 

95

 

(1)     Excludes $7 million of Transaction Related Expenses included in miscellaneous expense, net for the three and six-month periods ended June 30, 2021, respectively.

Reconciliation
of Total Leverage Ratio, Net of All Cash:

 

 

Eight
Quarters

 

Ended

 

June
30, 2022

 

(dollars in millions)

 

 

 

Net income

$

                      595

 

Adjustments to reconcile from net income to Operating Cash Flow as

 

 

  defined in our Senior Credit Agreement:

 

 

Depreciation

                        221

 

Amortization of intangible assets

                        274

 

Non-cash stock-based compensation

                          32

 

Gain on disposal of assets, net

                          21

 

Interest expense

                        457

 

Loss on early extinguishment of debt

                          12

 

Income tax expense

                        248

 

Amortization of program broadcast rights

                          81

 

Common stock contributed to 401(k) plan

                          15

 

Payments for program broadcast rights

                        (83

)

Pension benefit

                          (4

)

Contributions to pension plans

                          (7

)

Adjustments for unrestricted subsidiaries

                           8

 

Adjustments for stations acquired or divested, financings and expected

 

 

synergies during the eight quarter period

                        606

 

Transaction Related Expenses

                          87

 

Other

                           2

 

Operating Cash Flow as defined in our
Senior Credit Agreement

$

                 
2,565

 

Operating Cash Flow as defined in our
Senior Credit Agreement,

 

 

 divided by two

$

                 
1,283

 

 

 

 

 

June
30, 2022

 

Adjusted Total Indebtedness:

 

 

Total outstanding principal

$

                    6,778

 

Letters of credit outstanding

                           4

 

Cash

 

                      (162

)

Adjusted Total Indebtedness, Net of
All Cash

$

                 
6,620

 

 

 

 

Total Leverage Ratio, Net of All Cash

5.16

 

 


Share

Inbox Intel from Channelchek.

Informed investors make more money. And it’s all about timing. Get it when it happens.

By clicking submit you are agreeing to the Terms of Use and Privacy Policy
© 2018-2024 Noble Financial Group, Inc. All Rights Reserved. Channelchek is provided at no cost to be used for information purposes only and not as investment advisement.